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



[[Page i]]

          

          14


          Parts 200 to 1199

                         Revised as of January 1, 2008


          Aeronautics and Space
          



________________________

          Containing a codification of documents of general 
          applicability and future effect

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

[[Page ii]]

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                            Table of Contents



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

  Title 14:
          Chapter II--Office of the Secretary, Department of 
          Transportation (Aviation Proceedings)                      3
          Chapter III--Commercial Space Transportation, 
          Federal Aviation Administration, Department of 
          Transportation                                           485
  Finding Aids:
      Table of CFR Titles and Chapters........................     899
      Alphabetical List of Agencies Appearing in the CFR......     917
      List of CFR Sections Affected...........................     927

[[Page iv]]





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

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

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

[[Page v]]



                               EXPLANATION

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

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

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

LEGAL STATUS

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

HOW TO USE THE CODE OF FEDERAL REGULATIONS

    The Code of Federal Regulations is kept up to date by the individual 
issues of the Federal Register. These two publications must be used 
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    To determine whether a Code volume has been amended since its 
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EFFECTIVE AND EXPIRATION DATES

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OMB CONTROL NUMBERS

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

[[Page vi]]

Many agencies have begun publishing numerous OMB control numbers as 
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OBSOLETE PROVISIONS

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

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

[[Page vii]]


REPUBLICATION OF MATERIAL

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







[[Page ix]]



                               THIS TITLE

    Title 14--Aeronautics and Space is composed of five volumes. The 
parts in these volumes are arranged in the following order: parts 1-59, 
60-139, 140-199, 200-1199, and part 1200-End. The first three volumes 
containing parts 1-199 are comprised of chapter I--Federal Aviation 
Administration, Department of Transportation (DOT). The fourth volume 
containing parts 200-1199 is comprised of chapter II--Office of the 
Secretary, DOT (Aviation Proceedings) and chapter III--Commercial Space 
Transportation, Federal Aviation Administration, DOT. The fifth volume 
containing part 1200-End is comprised of chapter V--National Aeronautics 
and Space Administration and chapter VI--Air Transportation System 
Stabilization. The contents of these volumes represent all current 
regulations codified under this title of the CFR as of January 1, 2008.

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

[[Page 1]]



                     TITLE 14--AERONAUTICS AND SPACE




                 (This book contains parts 200 to 1199)

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

chapter ii--Office of the Secretary, Department of 
  Transportation (Aviation Proceedings).....................         200

chapter iii--Commercial Space Transportation, Federal 
  Aviation Administration, Department of Transportation.....         400

[[Page 3]]



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




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


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

                   SUBCHAPTER A--ECONOMIC REGULATIONS
Part                                                                Page
200             Definitions and instructions................           7
201             Air carrier authority under Subtitle VII of 
                    Title 49 of The United States Code--
                    [Amended]...............................           7
203             Waiver of Warsaw Convention liability limits 
                    and defenses............................           9
204             Data to support fitness determinations......          10
205             Aircraft accident liability insurance.......          17
206             Certificates of public convenience and 
                    necessity: Special authorizations and 
                    exemptions..............................          21
207             Charter trips by U.S. scheduled air carriers          23
208             Charter trips by U.S. charter air carriers..          23
211             Applications for permits to foreign air 
                    carriers................................          23
212             Charter rules for U.S. and foreign direct 
                    air carriers............................          29
213             Terms, conditions and limitations of foreign 
                    air carrier permits.....................          38
214             Terms, conditions, and limitations of 
                    foreign air carrier permits authorizing 
                    charter transportation only.............          41
215             Use and change of names of air carriers, 
                    foreign air carriers and commuter air 
                    carriers................................          41
216             Commingling of blind sector traffic by 
                    foreign air carriers....................          42
217             Reporting traffic statistics by foreign air 
                    carriers in civilian scheduled, charter, 
                    and nonscheduled services...............          44
218             Lease by foreign air carrier or other 
                    foreign person of aircraft with crew....          56

[[Page 4]]

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

[Reserved]

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

[[Page 5]]

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

[[Page 7]]



                    SUBCHAPTER A_ECONOMIC REGULATIONS





PART 200_DEFINITIONS AND INSTRUCTIONS--Table of Contents




Sec.
200.1 Terms and definitions.
200.2 Instructions.

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



Sec. 200.1  Terms and definitions.

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

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



Sec. 200.2  Instructions.

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

[Doc. No. 47939, 57 FR 40100, Sept. 2, 1992, as amended at 65 FR 6456, 
Feb. 9, 2000]



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




                    Subpart A_Application Procedures

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

        Subpart B_Certificate Terms, Conditions, and Limitations

201.6 Applicability.
201.7 General certificate conditions.

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

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



                    Subpart A_Application Procedures



Sec. 201.1  Formal requirements.

    (a) Applications for certificates of public convenience and 
necessity under section 41102 of the Statute and for interstate all-
cargo air transportation certificates under section 41103 of the Statute 
shall meet the requirements set forth in part 302 of this chapter as to 
general requirements, execution, number of copies, service, and formal 
specifications of papers.
    (b) Any person desiring to provide air transportation as a commuter 
air carrier must comply with the provisions of part 298 of this chapter 
and submit data to support a fitness determination in accordance with 
part 204 of this chapter. An executed original plus two (2) true copies 
of the fitness data shall be filed with DOT Dockets, PL-401, 400 7th 
Street, SW., Washington, DC 20590-0002. Requests for confidential 
treatment of documents should be filed in

[[Page 8]]

accordance with the requirements of part 302 of this chapter.

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

[Docket No. 47582, 57 FR 38765, Aug. 27, 1992, as amended at 60 FR 
43523, Aug. 22, 1995; 64 FR 3212, Jan. 21, 1999; 70 FR 25767, May 16, 
2005]



Sec. 201.2  Amendments.

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



Sec. 201.3  Incorporation by reference.

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



Sec. 201.4  General provisions concerning contents.

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

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

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



Sec. 201.5  Advertising and sales by applicants.

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

[[Page 9]]



        Subpart B_Certificate Terms, Conditions, and Limitations



Sec. 201.6  Applicability.

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

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



Sec. 201.7  General certificate conditions.

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

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



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




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

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

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



Sec. 203.1  Scope.

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

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



Sec. 203.2  Applicability.

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

[[Page 10]]

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



Sec. 203.3  Filing requirements for adherence to Montreal Agreement.

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

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



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

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

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

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



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

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

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



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




                      Subpart A_General Provisions

Sec.
204.1 Purpose.
204.2 Definitions.

                      Subpart B_Filing Requirements

204.3 Applicants for new certificate or commuter air carrier authority.
204.4 Carriers proposing to provide essential air service.

[[Page 11]]

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

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

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



                      Subpart A_General Provisions



Sec. 204.1  Purpose.

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

[72 FR 20036, Apr. 23, 2007]



Sec. 204.2  Definitions.

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

[[Page 12]]

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

[Docket No. 47582, 57 FR 38766, Aug. 27, 1992, as amended at 60 FR 
43523, Aug. 22, 1995; 64 FR 12085, Mar. 11, 1999; 72 FR 20036, Apr. 23, 
2007]



                      Subpart B_Filing Requirements



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

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

[[Page 13]]

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

[[Page 14]]

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

[[Page 15]]

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

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

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



Sec. 204.4  Carriers proposing to provide essential air service.

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

[[Page 16]]

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

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

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



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

    (a) A certificated or commuter air carrier proposing a substantial 
change in operations, ownership or management shall file the data set 
forth in Sec. 204.3. These data must be submitted in cases where:
    (1) The proposed change requires new or amended authority, or
    (2) The change substantially alters the factors upon which its 
latest fitness finding is based, even if no new authority is required.
    (b) Information which a carrier has previously formally filed with 
the Department, or with another Federal agency where they are available 
to the Department, which continues to reflect the current state of the 
carrier's fitness may be omitted. The carrier instead should identify 
the data and provide a citation for the date(s) and place(s) of filing. 
Prior to filing any data, the carrier may contact the Department (Air 
Carrier Fitness Division) to ascertain what data required by this 
section, if any, are already available to the Department or are not 
applicable to the substantial change in question and need not be 
included in the filing.
    (c) Information filings pursuant to this section made to support an 
application for new or amended certificate authority shall be filed with 
the application and addressed to Docket Operations, M-30, U.S. 
Department of Transportation, Washington, DC 20590, or by electronic 
submission at http://dms.dot.gov.
    (d) Information filed in support of a certificated or commuter air 
carrier's continuing fitness to operate under its existing authority in 
light of substantial changes in its operations, management, or 
ownership, including changes that may affect the air carrier's 
citizenship, shall be addressed to the Chief, Air Carrier Fitness 
Division, Office of

[[Page 17]]

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

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

[ Docket No. 47582, 57 FR 38766, Aug. 27, 1992, as amended at 72 FR 
20036, Apr. 23, 2007]



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

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



Sec. 204.7  Revocation for dormancy.

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

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



PART 205_AIRCRAFT ACCIDENT LIABILITY INSURANCE--Table of Contents




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

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

[[Page 18]]


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



Sec. 205.1  Purpose.

    This part contains the rules for aircraft accident liability 
insurance coverage needed by U.S. direct air carriers to obtain or to 
exercise authority from the Department to operate in interstate or 
foreign air transportation, and by foreign direct air carriers to 
operate under permit or other authority in foreign air transportation. 
It further requires a disclosure statement to shippers about cargo 
liability limits and insurance coverage for U.S. and foreign direct air 
carriers.

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



Sec. 205.2  Applicability.

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

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



Sec. 205.3  Basic requirements.

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

[[Page 19]]

    (3) Insurers licensed or approved by a foreign government.

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

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



Sec. 205.4  Filing of evidence of insurance.

    (a) A U.S. or foreign air carrier shall file a certificate of 
insurance or a complete plan for self-insurance with the Department. 
Each carrier shall ensure that the evidence of aircraft accident 
liability coverage filed with the Department is correct at all times. 
The Department will normally notify the carrier within 20 days of 
receipt if the certificate or plan does not meet the requirements of 
this part. Certificates of Insurance shall be filed on OST Form 6410 for 
U.S. air carriers, including commuter air carriers and air taxi 
operators, and OST Form 6411 for foreign air carriers, including 
Canadian air taxi operators. The Department may return the certificate 
or self-insurance plan to the carrier if it finds for good cause that 
such certificate or plan does not show adequate evidence of insurance 
coverage under this part. Forms may be obtained from and should be filed 
with the Department at the addresses specified in paragraph (c) of this 
section. Forms may also be obtained on the Internet at http://
ostpxweb.dot.gov.
    (b) If the coverage is by type or class of aircraft or by specific 
aircraft, endorsements that add previously unlisted aircraft or aircraft 
types or classes to coverage, or that delete listed aircraft, types, or 
classes from coverage, shall be filed with the Department at the 
addresses specified in paragraph (c) of this section not more than 30 
days after the effective date of the endorsements. Aircraft shall not be 
listed in the carrier's operations specifications with the FAA and shall 
not be operated unless liability insurance coverage is in force.
    (c) Certificates of insurance and endorsements required in 
paragraphs (a) and (b) of this section shall be submitted to the 
Department of Transportation, Federal Aviation Administration, Program 
Management Branch, AFS-260, 800 Independence Avenue, SW., Washington, DC 
20591. For those air carriers that have a mailing address in the State 
of Alaska, the forms shall be submitted to the Department of 
Transportation, Federal Aviation Administration, Alaskan Region 
Headquarters, AAL-230, 222 West 7th Avenue, Box 14, Anchorage, Alaska 
99513. For Canadian air taxis, the forms shall be submitted to the 
Department of Transportation, Special Authorities Division, X-46, 400 
7th Street, SW., Washington, DC 20590.

(Approved by the Office of Management and Budget under control number 
2106-0030)

[Docket No. 47939, 57 FR 40100, Sept. 2, 1992, as amended by Doc. No. 
OST-96-1269, 61 FR 19165, May 1, 1996; 70 FR 25767, May 16, 2005]



Sec. 205.5  Minimum coverage.

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

[[Page 20]]

paragraph (b)(1) of this section, maintain aircraft accident liability 
insurance coverage for bodily injury to or death of aircraft passengers, 
with minimum limits of $300,000 for any one passenger, and a total per 
involved aircraft for each occurrence of $300,000 times 75 percent of 
the number of passenger seats installed in the aircraft.
    (c) U.S. air taxi operators registered under part 298 shall maintain 
the following coverage:
    (1) Third-party aircraft accident liability coverage for bodily 
injury to or death of persons, including nonemployee cargo attendants, 
other than passengers, with minimum limits of:
    (i) $75,000 for any one person in any one occurrence, and a total of 
$300,000 per involved aircraft for each occurrence, and
    (ii) A limit of a least $100,000 for each occurrence for loss of or 
damage to property.
    (2) U.S. air taxi operators carrying passengers in air 
transportation shall, in addition to the coverage required in paragraph 
(c)(1) of this section, maintain aircraft accident liability insurance 
coverage for bodily injury to or death of aircraft passengers, with 
minimum limits of $75,000 for any one passenger, and a total per 
involved aircraft for each occurrence of $75,000 times 75 percent of the 
number of passenger seats installed in the aircraft.
    (d) Canadian charter air taxi operators registered under part 294 of 
this chapter shall maintain the following coverage:
    (1) Third-party aircraft accident liability coverage for bodily 
injury to or death of persons, including nonemployee cargo attendants, 
other than passengers, and for damage to property, with a minimum 
coverage of $75,000 for any one person in any one occurrence, and a 
total of $2,000,000 per involved aircraft for each occurrence, except 
that Canadian charter air taxi operators operating aircraft of more than 
30 seats or 7,500 pounds maximum cargo payload capacity, and a maximum 
authorized takeoff weight on wheels not greater than 35,000 pounds shall 
maintain coverage for those aircraft of $20,000,000 per involved 
aircraft for each occurrence.
    (2) Canadian charter air taxi operators engaging in passenger 
charter air service under part 294 of this chapter shall, in addition to 
the coverage required in paragraph (d)(1) of this section, maintain 
aircraft accident liability coverage for bodily injury to or death of 
aircraft passengers, with a minimum coverage of $75,000 for any one 
passenger and a total per involved aircraft for each occurrence of 
$75,000 times 75 percent of the total number of passenger seats 
installed in the aircraft.
    (e) Notwithstanding paragraphs (b), (c) and (d) of this section, the 
carrier may be insured for a combined single limit of liability for each 
occurrence. The combined single-limit coverage must be not less than the 
combined required minimums for bodily injury and property damage 
coverage plus, if the aircraft is used in passenger service, the 
required total passenger coverages stipulated in paragraph (b) of this 
section for U.S. and foreign direct air carriers and commuter carriers, 
paragraph (c) of this section for U.S. air taxi operators, or paragraph 
(d) of this section for Canadian charter air taxi operators.\1\ The 
single-limit liability policy for the required aircraft accident 
liability coverage may be provided by a single policy or by a 
combination of primary and excess policies.
---------------------------------------------------------------------------

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

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

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

[[Page 21]]



Sec. 205.6  Prohibited exclusions of coverage.

    (a) No warranty or exclusion in the policy or plan or in any 
endorsement or amendment to the policy or plan, nor any violation of the 
policy or plan by the carrier, shall remove the liability coverage 
required by this part, except as specifically approved by the 
Department. This requirement shall not limit the right of insurers to 
recover from the carrier for amounts paid.
    (b) A policy of insurance or a self-insurance plan required by this 
part shall not contain the following exclusions:
    (1) Violation of any safety-related requirement imposed by statute 
or by rule of a government agency.
    (2) Liability assumed by the carrier under an agreement to raise the 
liability limitations of the Warsaw Convention by signing a counterpart 
to the agreement of carriers (such as the Montreal Agreement, 18900, as 
approved by Board Order E-23680, May 13, 1966, agreeing to a limit on 
the carrier's liability for injury or death of passengers of $75,000 per 
passenger), or any amendment to such agreement that may be approved by 
the Department and to which the carrier becomes a party.

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



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

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

[Docket No. 47939, 57 FR 40100, 40101, Sept. 2, 1992, as amended at 70 
FR 25768, May 16, 2005]



Sec. 205.8  Cargo liability disclosure statement.

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

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



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




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


[[Page 22]]


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



Sec. 206.1  Emergency transportation.

    Notwithstanding the provisions of section 41101 of the Statute, and 
any term, condition or limitation attached to the exercise of the 
privileges of an air carrier certificate of public convenience and 
necessity which prohibits an air carrier from engaging in air 
transportation between any points on its route, the air carrier may 
carry between such points (a) any person or persons certified by a 
physician to be in need of immediate air transportation in order to 
secure emergency medical or surgical treatment together with any 
necessary attendant or attendants and (b) any medical supplies certified 
by a physician as requiring immediate air transportation for the 
protection of life. Air carriers offering to provide this emergency 
transportation shall file appropriate tariffs pursuant to Chapter 415 of 
the Statute.

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

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



Sec. 206.2  Exemption from schedule filing.

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

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



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

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

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



Sec. 206.4  Exemption of air carriers for military transportation.

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

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



Sec. 206.5  Small aircraft operations by certificated carriers.

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

[[Page 23]]

charges. If the carrier files a tariff for through service, it is not 
exempt from Chapter 415 or section 41310 of the Statute for that air 
transportation.

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



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




Sec.
207.1 Applicability.
207.2 Terms of service.

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

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



Sec. 207.1  Applicability.

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



Sec. 207.2  Terms of service.

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



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




Sec.
208.1 Applicability.
208.2 Terms of service.

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

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



Sec. 208.1  Applicability.

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



Sec. 208.2  Terms of service.

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



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




                            Subpart A_General

Sec.
211.1 Purpose.
211.2 Applicability.

                     Subpart B_General Requirements

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

                   Subpart C_Information Requirements

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

             Subpart D_Freely Associated State Air Carriers

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

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

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

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



                            Subpart A_General



Sec. 211.1  Purpose.

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

(Approved by the Office of Management and Budget under control number 
3024-0068)

[ER-1386, 49 FR 33439, Aug. 23, 1984, as amended by ER-1397, 49 FR 
50027, Dec. 26, 1984]

[[Page 24]]



Sec. 211.2  Applicability.

    (a) Except as provided in paragraph (b) of this section, this part 
applies to all foreign air carriers seeking initial foreign air carrier 
permits or the transfer, renewal, or amendment of an existing foreign 
air carrier permit.
    (b) Canadian charter air taxi operators, foreign indirect air 
carriers of property, and foreign charter operators are not required to 
submit applications under this part. Instead, Canadian charter air taxi 
operators shall register under part 294 of this chapter, foreign 
indirect air carriers of property shall register under part 297 of this 
chapter, and foreign charter operators shall register under subpart F of 
part 380 of this chapter.

(Approved by the Office of Management and Budget under control number 
3024-0068)

[ER-1386, 49 FR 33439, Aug. 23, 1984, as amended by ER-1397, 49 FR 
50027, Dec. 26, 1984]



                     Subpart B_General Requirements



Sec. 211.10  Filing specifications.

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

(Approved by the Office of Management and Budget under control number 
3024-0068)

[ER-1386, 49 FR 33439, Aug. 23, 1984, as amended by ER-1397, 49 FR 
50027, Dec. 26, 1984; 61 FR 34725, July 3, 1996]



Sec. 211.11  Verification.

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

(Approved by the Office of Management and Budget under control number 
3024-0068)

[ER-1386, 49 FR 33439, Aug. 23, 1984, as amended by ER-1397, 49 FR 
50027, Dec. 26, 1984]



Sec. 211.12  Filing and service.

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

(Approved by the Office of Management and Budget under control number 
3024-0068)

[ER-1386, 49 FR 33439, Aug. 23, 1984, as amended by ER-1397, 49 FR 
50027, Dec. 26, 1984; 65 FR 6456, Feb. 9, 2000]



Sec. 211.13  Amendments to applications.

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

(Approved by the Office of Management and Budget under control number 
3024-0068)

[ER-1386, 49 FR 33439, Aug. 23, 1984, as amended by ER-1397, 49 FR 
50027, Dec. 26, 1984]



Sec. 211.14  Incorporation by reference.

    Where two or more applications are filed by a single carrier, the 
applicant may incorporate lengthy exhibits, or

[[Page 25]]

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

(Approved by the Office of Management and Budget under control number 
3024-0068)

[ER-1386, 49 FR 33439, Aug. 23, 1984, as amended by ER-1397, 49 FR 
50027, Dec. 26, 1984]



Sec. 211.15  Statements of fact.

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

(Approved by the Office of Management and Budget under control number 
3024-0068)

[ER-1386, 49 FR 33439, Aug. 23, 1984, as amended by ER-1397, 49 FR 
50027, Dec. 26, 1984]



Sec. 211.16  Oral hearing.

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

(Approved by the Office of Management and Budget under control number 
3024-0068)

[ER-1386, 49 FR 33439, Aug. 23, 1984, as amended by ER-1397, 49 FR 
50027, Dec. 26, 1984]



                   Subpart C_Information Requirements



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

    A person applying for an initial foreign air carrier permit or the 
transfer of a permit shall submit the information listed below. The 
applicant must fully comply with this requirement. If the applicant is 
unable to respond to an item, the application shall contain an 
explanation, and include substitute information most closely 
approximating the information requested. The Department may require an 
applicant to provide additional information as necessary.
    (a) State the name and address of the applicant, the nature of its 
organization (individual, partnership, corporation, etc.), and, if other 
than an individual, the name of the country under the laws of which it 
is organized and the statutory citation of such laws, if any.
    (b) State the name and official address of the government air 
transport authority of applicant's country of citizenship having 
regulatory jurisdiction over applicant.
    (c) Supply the following information regarding the services 
proposed:
    (1) A complete statement of the authority sought; and
    (2) A description of the services proposed, specifying:
    (i) The point or points in the United States proposed to be served:
    (ii) The frequency of service planned at the start of operations, 
indicating any seasonal variations; whether the service proposed is to 
be scheduled, nonscheduled or charter; whether the service would be 
passenger, or property and mail, or a combination; and the type of 
equipment (and configuration) to be used; and
    (iii) A service schedule stating the manner in which the service 
will be operated (e.g., nonstop or multi-stop, and the identity of 
proposed intermediate traffic and nontraffic points).
    (d) Provide the names, addresses (both residence and business), and 
citizenship of all Directors, Officers and key management personnel, 
including the President, Vice Presidents, the Directors or Supervisors 
of Operations, Maintenance, and Finance, and the chief pilot and chief 
inspector. Indicate whether any of these persons are related by blood or 
marriage.
    (e) Provide the names and citizenship of all persons holding five 
percent (5%) or more of the capital stock or capital of the applicant. 
Also indicate the number and percentage of shares of stock or percentage 
of capital held by each. If five percent or more of the applicant's 
stock is held by a corporation or partnership, set forth the name and 
citizenship of each person holding five

[[Page 26]]

percent or more of the entire capital stock or capital of that 
corporation or partnership and the respective interest of each. If any 
shares are held for the benefit of another person, give the name and 
citizenship of that person.
    (f) If the applicant is not wholly owned by its homeland government, 
state whether the applicant (each officer, director, manager, or holder 
of five percent or more of the capital stock) holds any interest 
directly or indirectly (through brokers or holding companies) in any of 
the entities listed below. If no interest is held, so state.
    (1) Any U.S. carrier;
    (2) Any other foreign air carrier;
    (3) Any persons engaged in the business of aeronautics; and
    (4) Any common carrier, or any person whose principal business is 
the holding of stock in, or control of, any air carrier.
    (g) Indicate the relationship between the applicant and its homeland 
government. If the applicant is wholly owned or substantially owned by 
the government, indicate which governmental department has 
responsibility for managerial decisions.
    (h) State whether the applicant's insurance coverage meets or 
exceeds the liability limits of 14 CFR part 205. State the name(s) of 
its insurance carrier(s).
    (i) Supply certified evidence, in English, of the applicant's 
operating authority issued by its government that relates to the 
operations proposed. This evidence must include a description of the 
applicant's present authority, the expiration date of this authority, 
and the manner in which it is expected to be renewed.
    (j) Summarize the operating history of the applicant. Include the 
types of transportation services rendered, points served, etc., from the 
beginning of operations to the present. Also, if the applicant is a new 
airline (i.e., an airline that began direct air services within the past 
12 months), briefly summarize the business experience of each officer, 
director and key management personnel, emphasizing any air 
transportation experience.
    (k) Provide a list of the aircraft owned, leased and operated by the 
applicant. State each aircraft registration number and the country of 
registration. If leased, state the address and citizenship of each 
lessor. Describe any plans for the acquisition or lease of additional 
aircraft if the present permit application is granted as proposed. If 
any of the listed aircraft will not be used exclusively by the 
applicant, explain its proposed use. State whether any aircraft are or 
will be wet-leased.
    (l) State where and by whom the maintenance of the aircraft is or 
will be performed. State whether the applicant's maintenance program 
complies with the provisions of ICAO Pilots and Airmen Annexes 1, 6 
(Part 1) and 7. Also state whether the applicant's home country is a 
contracting State to the Convention on International Civil Aviation.
    (m) Briefly describe any agreements or cooperative working 
arrangements (e.g., block-space, wet-lease), both oral and written, 
entered with and between the applicant, or on behalf of the applicant, 
and any U.S. or foreign air carrier, affecting the proposed services to 
the United States that are not on file with the Department. If there are 
no such agreements, so state.
    (n) Supply financial data summaries, setting forth in U.S. dollars 
the applicant's profit and loss statements and balance sheets for the 2 
most recent available years (calendar or fiscal). These summaries must 
be accompanied by a statement from the applicant's official responsible 
for preparation of the summaries that the submissions are complete and 
accurate. These summaries must include the following data, but need not 
be more detailed than the financial data summaries published by ICAO:
    (1) The profit and loss summary shall identify:
    (i) Total air transport operating revenues (separated into three 
categories: passenger, cargo, and other transport revenues);
    (ii) Total air transport operating expenses;
    (iii) Operating result (difference between (i) and (ii));
    (iv) Non-operating items; and
    (v) Profit or loss after income taxes.
    (2) The balance sheet summary shall state and identify:
    (i) Current assets;

[[Page 27]]

    (ii) Flight equipment (after depreciation);
    (iii) Other assets;
    (iv) Total assets (sum of (i) through (iii));
    (v) Current liabilities;
    (vi) Other liabilities;
    (vii) Long-term debt;
    (viii) Capital stock;
    (ix) Retained earnings (balance including capital surplus); and
    (x) Total liabilities and equity (sum of (v) through (ix)).
    (o) Describe the amount, type and reason for financial assistance 
received or expected from the applicant's home government, if any.
    (p) Submit an estimate showing the total traffic and the financial 
results of the proposed services for the first full year of normal 
operations and the supporting data employed to calculate the financial 
forecast.
    (q) If the air transportation proposed is not covered by an air 
transport agreement, state in narrative form each of the elements of 
reciprocity or comity relied upon for the requested authority. If the 
authority requested is governed by an agreement, state whether the 
applicant has been formally designated by its homeland government, and, 
if so, cite the diplomatic note.
    (r) To the extent not described in paragraph (q), state the policy 
of the applicant's homeland government with respect to U.S. carriers' 
applications for scheduled and charter authority. Specifically state 
whether the homeland government grants Fifth Freedom traffic rights to 
U.S. carriers.
    (s) For the preceeding 5 years, state whether the applicant has been 
involved in any safety or tariff violations or any fatal accidents. If 
so, furnish details.
    (t) Submit 3 completed copies of OST Form 4523 (Waiver of liability 
limits under the Warsaw Convention).

(Approved by the Office of Management and Budget under control number 
3024-0068)

[ER-1386, 49 FR 33439, Aug. 23, 1984, as amended by ER-1397, 49 FR 
50027, Dec. 26, 1984; 61 FR 34725, July 3, 1996]



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

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

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



             Subpart D_Freely Associated State Air Carriers

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

[[Page 28]]


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



Sec. 211.30  Eligibility.

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



Sec. 211.31  Application.

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



Sec. 211.32  Issuance of permit.

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



Sec. 211.33  Interstate and interstate authority.

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

[[Page 29]]

or significantly increase compensation that may be required to maintain 
any such essential air transportation.
    (c) The Department may, at any time, subject to Presidential review 
under section 41307, suspend, modify, or revoke such interstate 
authority if it concludes that the requirements specified in paragraph 
(b) of this section are not then being met.

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



Sec. 211.34  Other permits.

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



Sec. 211.35  Termination of eligibility.

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

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



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




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

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

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

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



Sec. 212.1  Scope.

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



Sec. 212.2  Definitions.

    For the purposes of this part:
    Affinity (pro rata) charter means a charter arranged by an 
organization on behalf of its membership, and which meets the 
requirements of Sec. 212.5.
    Certificated air carrier means a U.S. direct air carrier holding a 
certificate issued under 49 U.S.C. 41102.
    Charter flight means a flight operated under the terms of a charter 
contract

[[Page 30]]

between a direct air carrier and its charterer or lessee. It does not 
include scheduled interstate air transportation, scheduled foreign air 
transportation, or nonscheduled cargo foreign air transportation, sold 
on an individually ticketed or individually waybilled basis.
    Charter operator means:
    (1) A ``Public Charter operator'' as defined in Sec. 380.2 of this 
chapter, or
    (2) An ``Overseas Military Personnel Charter operator'' as defined 
in Sec. 372.2 of this chapter.
    Direct air carrier means a certificated or foreign air carrier that 
directly engages in the operation of aircraft under a certificate, 
permit, or exemption issued by the Department.
    Fifth freedom charter means a charter flight carrying traffic that 
originates and terminates in countries other than the carrier's home 
country, regardless of whether the flight operates via the home country.
    Foreign air carrier means a direct air carrier which is not a 
citizen of the United States as defined in 49 U.S.C. 40102(a) that holds 
a foreign air carrier permit issued under 49 U.S.C. 41302 or an 
exemption issued under 49 U.S.C. 40109 authorizing direct foreign air 
transportation.
    Fourth freedom charter means a charter flight carrying traffic that 
terminates in the carrier's home country having originated in another 
country.
    Gambling junket charter means a charter arranged by a casino, hotel, 
cruise line, or its agents, the purpose of which is to transport 
passengers to the casino, hotel, or cruise ship where gambling 
facilities are available, and which meets the requirements of Sec. 
212.6.
    Long-term wet lease means a wet lease which either--
    (1) Lasts more than 60 days, or
    (2) Is part of a series of such leases that amounts to a continuing 
arrangement lasting more than 60 days.
    Mixed charter means a charter, the cost of which is borne partly by 
the charter participants and partly by the charterer, where all the 
passengers meet the eligibility requirements for ``affinity (pro rata)'' 
charters of Sec. 212.5.
    Part charter means flight carrying both charter and scheduled 
passenger traffic.
    Seventh-freedom charter means a charter flight carrying traffic that 
originates and terminates in a country other than the foreign air 
carrier's home country, where the flight does not have a prior, 
intermediate, or subsequent stop in the foreign air carrier's home 
country.
    Single entity charter means a charter the cost of which is borne by 
the charterer and not by individual passengers, directly or indirectly.
    Sixth-freedom charter means a charter flight carrying traffic that 
originates and terminates in a country other than the country of the 
foreign air carrier's home country, provided the flight operates via the 
home country of the foreign air carrier.
    Third freedom charter means a charter flight carrying traffic that 
originates in the carrier's home country and terminates in another 
country.
    Wet lease means a lease between direct air carriers by which the 
lessor provides all or part of the capacity of an aircraft, and its 
crew, including operations where the lessor is conducting services under 
a blocked space or code-sharing arrangement.

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



Sec. 212.3  General provisions.

    (a) Certificated and foreign air carriers may conduct charter 
flights as described in this part, and may carry charter passengers on 
scheduled flights, or charter cargo on scheduled or nonscheduled flights 
(or on the main deck or in the belly of passenger charter flights), 
subject to the requirements of this chapter and any orders of, or 
specific conditions imposed by, the Department.
    (b) Charter flights may be operated on a round-trip or one-way 
basis, with no minimum group, shipment, or contract size.
    (c) Contracts to perform charter flights must be in writing and 
signed by an authorized representative of the certificated or foreign 
air carrier and the charterer prior to the operation of the flights 
involved. The written agreement shall include:
    (i) The name and address of either the surety whose bond secures 
advance

[[Page 31]]

charter payments received by the carrier, or of the carrier's depository 
bank to which checks or money orders for the advance charter payments 
are to be made payable as escrow holder pending completion of the 
charter trip; and
    (2) A statement that unless the charterer files a claim with the 
carrier, or, if the carrier is unavailable, with the surety, within 60 
days after the cancellation of a charter trip with respect to which the 
charterer's advance payments are secured by the bond, the surety shall 
be released from all liability under the bond to such charterer for such 
trips.
    (d) A certificated or foreign air carrier must make a reasonable 
effort to verify that any charterer with which it contracts, and any 
charter it conducts, meets the applicable requirements of this chapter.
    (e) The certificated or foreign air carriers shall require full 
payment of the total charter price, including payment for the return 
portion of a round trip, or the posting of a satisfactory bond for full 
payment, prior to the commencement of any portion of the air 
transportation, provided, however, that in the case of a passenger 
charter for less than the entire of an aircraft, the carrier shall 
require full payment of the total charter price, including payment for 
the return portion of a round trip, from the charterers not less than 10 
days prior to the commencement of any portion of the transportation, and 
such payment shall not be refundable unless the charter is canceled by 
the carrier or unless the carrier accepts a substitute charterer for one 
which has canceled a charter, in which case the amount paid by the 
latter shall be refunded. For the purpose of this section, payment to 
the carrier's depository bank, as designated in the charter contract, 
shall be deemed payment to the carrier.
    (f) A certificated or foreign air carrier operating a U.S.-
originating passenger charter shall be responsible to return to his or 
her point of origin any passenger who purchased round trip 
transportation on that charter and who was transported by that carrier 
on his or her outbound flight; except that this provision shall not 
apply in cases where the return transportation is to be provided by 
another certificated or foreign air carrier.
    (g) A certificated or foreign air carrier may not perform any 
charter flight for which a statement of authorization is required under 
Sec. 212.9 until one has been granted by the Department. In addition, 
if a foreign air carrier is required to obtain a statement of 
authorization under paragraph (e) of that section, neither it, not any 
charter operator, or any other person shall advertise or sell any 
passenger charter services except those that have been specifically 
authorized by the Department.
    (h) A certificated air carrier may not operate charters where such 
operations would result in a substantial change in the scope of its 
operations within the meaning of part 204 of this chapter.
    (i) A certificated air carrier may not limit its baggage liability 
for interstate charter flights except as set forth in part 254 of this 
chapter.
    (j) A certificated air carrier may not, except as set forth in part 
121 of the Federal Aviation Regulations (14 CFR part 121), limit the 
availability, upon reasonable request, of air transportation and related 
services to a person who may require help from another person in 
expeditiously moving to an emergency exit for evacuation of an aircraft.
    (k) A certificated air carrier holding a certificate to conduct only 
cargo operations may not conduct passenger charters.
    (l) A certificated air carrier may not perform any charter in 
interstate commerce within the State of Alaska.
    (m) A foreign air carrier may operate charters in foreign air 
transportation only to the extent authorized by its foreign air carrier 
permit under 49 U.S.C. 41302 or exemption authority under 49 U.S.C. 
40109, and only to the extent to which such operations are consistent 
with the provisions of any applicable bilateral aviation undertaking.



Sec. 212.4  Authorized charter types.

    Certificated and foreign air carriers may conduct the following 
charter types, subject to the provisions of this part:
    (a) Affinity (pro rata) charters.

[[Page 32]]

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



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

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



Sec. 212.6  Operation of gambling junket charters.

    A gambling junket charter operated by a certificated or foreign air 
carrier must meet the following criteria:
    (a) The aircraft must be chartered by
    (1) A casino, hotel, or cruise line duly licensed by the government 
of any state, territory or possession of the United States, or by a 
foreign government, or
    (2) An agent of such a casino, or cruise line on behalf of that 
casino, hotel, or cruise line.
    (b) The casino, hotel, or cruise line or its agents, may not require 
a passenger to incur any expense in taking the trip, provided, that this 
provision shall not preclude the casino, hotel, or cruise line or its 
agents, from requiring prospective passengers to pay nominal reservation 
fees that are duly refundable by the casino, hotel, or cruise line 
before the flight, establish a minimum line-of-credit at the casino, 
hotel, or cruise line, bring (but not necessarily spend) a specified 
minimum amount of money, or meet other requirements that do not place 
them in financial

[[Page 33]]

jeopardy; nor does it preclude the casino, hotel, or cruise line, or its 
agents, from offering operational land packages for a fee.



Sec. 212.7  Direct sales.

    (a) Certificated and foreign air carriers may sell or offer for 
sale, and operate, as principal, Public Charter flights under part 380 
of this chapter directly to the public.
    (b) Each certificated or foreign air carrier operating a charter 
trip under this section shall comply with all the requirements of part 
380 of this chapter, except that:
    (1) Those provisions of part 380 relating to the existence of a 
contract between a charter operator and a direct air carrier do not 
apply;
    (2) A depository agreement shall comply with Sec. 380.34a (d) and 
(f);
    (3) A security agreement shall comply with Sec. 380.34 (c) and (d); 
and
    (i) If no depository agreement is used, protect charter participant 
payments (including those for ground accommodations and services) and 
assure the certificated or foreign air carrier's contractual and 
regulatory responsibilities to charter participants in an unlimited 
amount (except that the liability of the securer with respect to any 
charter participant may be limited to the charter price paid by or on 
behalf of such participant);
    (ii) If used in combination with a depository agreement, protect 
charter participant payments (including those for ground accommodations 
and services) and assure the certificated or foreign air carrier's 
contractual and regulatory responsibilities to charter participants in 
the amount of at least $10,000 times the number of flights, except that 
the amount need not be more than $200,000. The liability of the securer 
with respect to any charter participant may be limited to the charter 
price paid by or on behalf of such participant.
    (c) The Department reserves the right to limit or prohibit the 
operation of direct sales Public Charters by a foreign air carrier upon 
a finding that such action is necessary in the public interest.



Sec. 212.8  Protection of customers' payments.

    (a) Except as provided in paragraph (c) of this section, no 
certificated air carrier or foreign air carrier shall perform any 
charter trip (other than a cargo charter trip) originating in the United 
States or any Overseas Military Personnel Charter trip, as defined in 
part 372 of this chapter, nor shall such carrier accept any advance 
payment in connection with any such charter trip, unless there is on 
file with the Department a copy of a currently effective agreement made 
between said carrier and a designated bank, by the terms of which all 
sums payable in advance to the carrier by charterers, in connection with 
any such trip to be performed by said carrier, shall be deposited with 
and maintained by the bank, as escrow holder, the agreement to be 
subject to the following conditions:
    (1) The charterer (or its agent) shall pay the carrier either by 
check or money order made payable to the depository bank. Such check or 
money order and any cash received by the carrier from a charterer (or 
its agent) shall be deposited in, or mailed to, the bank no later than 
the close of the business day following the receipt of the check or 
money order or the cash, along with a statement showing the name and 
address of the charterer (or its agent); provided, however, that where 
the charter transportation to be performed by a carrier is sold through 
a travel agent, the agent may be authorized by the carrier to deduct its 
commission and remit the balance of the advance payment to the carrier 
either by check or money order made payable to the designated bank.
    (2) The bank shall pay over to the carrier escrowed funds with 
respect to a specific charter only after the carrier has certified in 
writing to the bank that such charter has been completed; provided, 
however, that the bank may be required by the terms of the agreement to 
pay over to the carrier a specified portion of such escrowed funds, as 
payment for the performance of the outbound segment of a round-trip 
charter upon the carrier's written certification that such segment has 
been so completed.

[[Page 34]]

    (3) Refunds to a charterer from sums in the escrow account shall be 
paid directly to such charterer its assigns. Upon written certification 
from the carrier that a charter has been canceled, the bank shall turn 
over directly to the charterer or its assigns all escrowed sums (less 
any cancellation penalties as provided in the charter contract) which 
the bank holds with respect to such canceled charter, provided however, 
that in the case of a split charter escrowed funds shall be turned over 
to a charterer or its assigns only if the carrier's written 
certification of cancellation of such charter includes a specific 
representation that either the charter has been canceled by the carrier 
or, if the charter has been canceled by the charterer, that the carrier 
has accepted a substitute charterer.
    (4) The bank shall maintain a separate accounting for each charter 
flight.
    (5) As used in this section the term ``bank'' means a bank insured 
by the Federal Deposit Insurance Corporation.
    (b) The escrow agreement required under paragraph (a) of this 
section shall not be effective until approved by the Department. Claims 
against the escrow may be made only with respect to the non-performance 
of air transportation.
    (c) The carrier may elect, in lieu of furnishing an escrow agreement 
pursuant to paragraph (a) of this section, to furnish and file with the 
Department a surety bond with guarantees to the United States Government 
the performance of all charter trips (other than cargo charter trips) 
originating in the United States and of all overseas military personnel 
charter trips, as defined in part 372 of this chapter, to be performed, 
in whole or in part, by such carrier pursuant to any contracts entered 
into by such carrier. The amount of such bond shall be unlimited.\1\ 
Claims under the bond may be made only with respect to the non-
performance of air transportation.
---------------------------------------------------------------------------

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

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



Sec. 212.9  Prior authorization requirements.

    (a) Certificated air carriers shall obtain a statement of 
authorization for

[[Page 35]]

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

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



Sec. 212.10  Application for statement of authorization.

    (a) Application for a statement of authorization shall be submitted 
on OST Form 4540 except that for part charters or long-term wet leases 
the application may be in letter form. An application for a long-term 
wet lease shall describe the purpose and terms of the wet lease 
agreement. Except for an application for a long-term wet lease involving 
a codeshare agreement, an original and two copies of an application 
shall be submitted to the Department of Transportation, Office of 
International Aviation, U.S. Air Carrier Licensing Division, X-44 (for 
an application by a certificated air carrier), or Foreign Air Carrier 
Licensing Division, X-45 (for an application by a foreign air carrier), 
400 7th Street, SW., Washington, DC 20590; an original and two copies of 
an application for a long-term wet lease involving a codeshare agreement 
shall be submitted to DOT Dockets, PL-401, 400 7th Street, SW., 
Washington, DC 20590, or by electronic submission to DOT Dockets 
according to procedures at the DOT Dockets website. Upon a showing of 
good cause, the application may be transmitted by facsimile (fax) or 
telegram, or may be made by telephone, provided, that in the case of a 
fax or telephone application, the applicant must confirm its request (by 
filing an original and two copies of its application as described above) 
within three business days.
    (b) A copy of each application for a long-term wet lease shall also 
be served on the Director of Flight Standards Service (AFS-1), Federal 
Aviation Administration, 800 Independence Avenue, SW., Washington, DC 
20591, and on each certificated air carrier that is authorized to serve 
the general area in which the proposed transportation is to be 
performed.
    (c)(1) Applicants for statements of authorization filed by foreign 
air carriers shall include documentation to establish the extent to 
which the country of the applicant's nationality deals with U.S. air 
carriers on the basis of reciprocity for similar flights, if such 
flights are not subject to a bilateral agreement, and
    (i) The Department has not established that the country accords 
reciprocity;
    (ii) The Department has found reciprocity defective in the most 
recent

[[Page 36]]

prior approval application involving the country; or
    (iii) Changes in reciprocity have occurred since the most recent 
Department finding for the country in question.
    (2) Applications filed by certificated or foreign air carriers to 
conduct long-term wet leases shall include, for the country of the 
lessee's nationality, the documentation specified in paragraph (c)(1) of 
this section.
    (d)(1) Applications shall be filed at least 5 business days before 
commencement of the proposed flight or flights, except as specified in 
paragraphs (d)(2), (d)(3), and (d)(4) of this section. Late applications 
may be considered upon a showing of good cause for the lateness.
    (2) Applications for a part charter or for a long-term wet lease 
shall be filed at least 45 calendar days before the date of the first 
proposed flight.
    (3) Applications specifically required under Sec. 212.9(d) shall be 
filed at least 30 calendar days before the proposed flight or flights 
(10 calendar days for cargo charters), unless otherwise specified by the 
Department.
    (4) Applications required by a Department order under Sec. 212.9(e) 
shall be filed at least 14 calendar days before the proposed flight or 
flights, unless otherwise specified by the Department.
    (5) Where an application is required by more than one provision of 
this part and/or order of the Department, only one application need be 
filed, but it must conform to the earliest applicable filing deadline.
    (6) The Department may require service of applications as it deems 
necessary.
    (e)(1) Any part in interest may file a memorandum supporting or 
opposing an application. Three copies of each memorandum shall be filed 
within 7 business days after service of the application or before the 
date of the proposed flight or flights, whichever is earlier. 
Memorandums will be considered to the extent practicable; the Department 
may act on an application without waiting for supporting or opposing 
memorandums to be filed.
    (2) Each memorandum shall set forth the reasons why the application 
should be granted or denied, accompanied by whatever data, including 
affidavits, the Department is requested to consider.
    (3) A copy of each memorandum shall be served on the certified or 
foreign air carrier applying for approval.
    (f)(1) Unless otherwise ordered by the Department, each application 
and memorandum filed in response will be available for public inspection 
at the Office of International Aviation immediately upon filing. Such 
information with respect to codeshare applications and responsive 
pleadings will be available for public inspection at DOT Dockets or at 
the DOT Dockets website. Notice of the filing of all applications shall 
be published in the Department's Weekly List of Applications Filed.
    (2) Any person objecting to public disclosure of any information in 
an application or memorandum must state the grounds for the objection in 
writing. If the Department finds that disclosure of all or part of the 
information would adversely affect the objecting person, and that the 
public interest does not require disclosure, it will order that the 
injurious information be withheld.

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



Sec. 212.11  Issuance of statement of authorization.

    (a) The Department will issue a statement of authorization if it 
finds that the proposed charter flight, part charter, or wet lease meets 
the requirements of this part and that it is in the public interest. 
Statements of authorization may be conditioned or limited.
    (b) In determining the public interest the Department will consider 
(but not be limited to) the following factors:
    (1) The extent to which the authority sought to covered by and 
consistent with bilateral agreements to which the United States is a 
party.
    (2) The extent to which an applicant foreign air carrier's home 
country (and, in the case of a long-term wet lease, the lessee's home 
country) deals with U.S. air carriers on the basis of substantial 
reciprocity.
    (3) Whether the applicant or its agent has previously violated the 
provisions of this part.

[[Page 37]]

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



Sec. 212.12  Waiver.

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



Sec. Appendix A to Part 212--Certificated or Foreign Air Carrier's 

   Surety Bond Under Part 212 of the Regulations of the Department of 
                    Transportation (14 CFR Part 212)

    Know all persons by these presents, that we -------------------- 
(Name of certificated or foreign air carrier) of --------------------, 
(City) -------------------- (State or Country) as Principal (hereinafter 
called Principal), and -------------------- (name of Surety) a 
corporation created and existing under the laws of the State of --------
-------- (State) as Surety (hereinafter called Surety) are held and 
firmly bound unto the United States of America in an unlimited amount, 
as required by 14 CFR 212.8, for which payment, well and truly to be 
made, we bind ourselves and our heirs, executors, administrators, 
successors, and assigns, jointly and severally, firmly by these 
presents.
    Whereas the principal, a certificated air carrier holding a 
certificate of public convenience and necessity issued under 49 U.S.C. 
41102, or a foreign air carrier holding a foreign air carrier permit 
issued under 49 U.S.C. 41302 or an exemption issued under 49 U.S.C. 
40109 authorizing that foreign air carrier to engage in charter trips in 
foreign air transportation, is subject to rules and regulations of the 
Department of Transportation relating to security for the protection of 
charterers of civil aircraft and has elected to file with the Department 
of Transportation such a bond as will guarantee to the United States 
Government the performance of all charter trips (other than cargo 
charter trips) originating in the United States and of all Overseas 
Military Personnel Charters, as defined in 14 CFR part 372, to be 
performed, in whole or in part, by such certificated or foreign air 
carrier pursuant to contracts entered into by such carrier after the 
execution date of this bond, and
    Whereas this bond is written to assure compliance by the Principal 
with rules and regulations of the Department of Transportation relating 
to security for the protection of charterer of civil aircraft for 
charter trips (other than cargo charters) originating in the United 
States or of Overseas Military Personnel Charter trips and shall inure 
to the benefit of any and all such charterers to whom the Principal may 
be held legally liable for any of the damages herein described.
    Now, therefore, the condition of this obligation is such that if the 
Principal shall pay or cause to be paid to such charterer any sum or 
sums for which the Principal may be held legally liable by reason of the 
Principal's failure faithfully to perform, fulfill, and carry out all 
contracts made by the Principal while this bond is in effect for the 
performance of charter trips (other than

[[Page 38]]

cargo charter trips) originating in the United States and of Overseas 
Military Personnel Charter trips, then this obligation shall be void, 
otherwise to remain in full force and effect.
    The liability of the Surety shall not be discharged by any payment 
or succession of payments hereunder in any specified amount. The surety 
agrees to furnish written notice to the Department of Transportation 
forthwith of all suits filed, judgments rendered, and payments made by 
said Surety under this bond.
    This bond is effective the ------ day of ----------------, --------, 
12:01 a.m., standard time at the address of the Principal as stated 
herein and shall continue in force until terminated as hereinafter 
provided. The Principal or the Surety may at any time terminate this 
bond by written notice to the Department of Transportation at its office 
in Washington, D.C., such termination to become effective thirty (30) 
days after actual receipt of said notice by the Department. The Surety 
shall not be liable hereunder for the payment of the damages 
hereinbefore described which arise as the result of any contracts for 
the performance of air transportation services made by the Principal 
after the termination of this bond becomes effective, as herein 
provided, but such termination shall not affect the liability of the 
Surety hereunder for the payment of any such damages arising as the 
result of contracts for the performance of air transportation services 
made by the Principal after the termination of this bond becomes 
effective. Liability of the Surety under this bond shall in all events 
be limited only to a charterer who shall within sixty (60) days after 
the cancellation of a charter trip with respect to which the charterer's 
advance payments are secured by this bond give written notice of claim 
to the certificated or foreign air carrier, or, if it is unavailable, to 
the Surety, and all liability on this bond for such charter trip shall 
automatically terminate sixty (60) days after the termination date 
thereof except for claims filed within the time provided herein.
    In witness whereof, the said Principal and Surety have executed this 
instrument on the ------ day of ----------------, --------.

                                Principal

Name____________________________________________________________________

By: Signature and title_________________________________________________

Witness_________________________________________________________________

                                 Surety

Name____________________________________________________________________

By: Signature and title_________________________________________________

Witness_________________________________________________________________

Bonding or surety company must be listed in Best's Insurance Reports 
(Fire and Casualty) with a general policyholders' rating of ``A'' or 
better or in the Department of the Treasury listing of companies holding 
certificates of authority as acceptable sureties on Federal bonds. In 
addition, the bonding or surety company shall be one legally authorized 
to issue bonds of that type in the State(s) in which the charter 
flight(s) originate. Agents must provide satisfactory proof that they 
have the requisite authority to issue this bond.



Sec. Appendix B to Part 212--Certification of Compliance

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

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



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




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

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

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

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



Sec. 213.1  Applicability.

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

[[Page 39]]

time to time be prescribed by the Department.

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



Sec. 213.2  Reports of traffic data.

    The Department may at any time require any foreign air carrier to 
file with the Department traffic data disclosing the nature and extent 
of such carrier's engagement in transportation between points in the 
United States and points outside thereof. The Department will specify 
the traffic data required in each such instance. Interested persons 
seeking reconsideration of a Department determination under this section 
may file a petition pursuant to Rule 14 of part 302 within 10 days after 
Department action.

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



Sec. 213.3  Filing and approval of schedules.

    (a) In the absence of provisions to the contrary in the permit and 
of Department action pursuant to this section, a foreign air carrier may 
determine the schedules (including type of equipment used) pursuant to 
which it engages in transportation between points in the United States 
and points outside thereof.
    (b) In the case of a foreign air carrier permit for scheduled air 
transportation which is not the subject of an air transport agreement 
between the United States and the government of the holder, the 
Department, if it finds that the public interest so requires, may with 
or without hearing order the foreign air carrier to file with it within 
7 days after service of such order, an original and three copies of any 
or all of its existing schedules of service between any point in the 
United States and any point outside thereof, and may require such 
carrier thereafter to file an original and three copies of any proposed 
schedules of service between such points at least 30 days prior to the 
date of inauguration of such service. Such schedules shall contain all 
schedules of aircraft which are or will be operated by such carrier 
between each pair of points set forth in the order, the type of 
equipment used or to be used, the time of arrival and departure at each 
point, the frequency of each schedule, and the effective date of any 
proposed schedule.
    (c) In the case of any foreign air carrier permit for scheduled air 
transportation which is the subject of an air transport agreement 
between the United States and the government of the holder, the 
Department may with or without hearing issue an order, similar to that 
provided for in paragraph (b) of this section, if it makes the findings 
provided for in that subsection and, in addition, finds that the 
government or aeronautical authorities of the government of the holder, 
over the objections of the U.S. Government, have: (1) Taken action which 
impairs, limits, terminates, or denies operating rights, or (2) 
otherwise denied or failed to prevent the denial of, in whole or in 
part, the fair and equal opportunity to exercise the operating rights, 
provided for in such air transport agreement, of any U.S. air carrier 
designated thereunder with respect to flight operations to, from, 
through, or over the territory of such foreign government.
    (d) The carrier may continue to operate existing schedules, and may 
inaugurate operations under proposed schedules 30 days after the filing 
of such schedules with the Department, unless the Department with or 
without hearing issues an order, subject to stay or disapproval by the 
President of the United States within 10 days after adoption, notifying 
the carrier that such operations, or any part of them, may be contrary 
to applicable law or may adversely affect the public interest. If the 
notification pertains to a proposed schedule, service under such 
schedule shall not be inaugurated; if the notification pertains to 
existing schedules, service under such schedules shall be discontinued 
on the date specified in the Department's order. Such date shall be not 
less than ten days after adoption of the Department's order unless 
affirmative Presidential approval is obtained at an earlier date.
    (e) No petitions for reconsideration may be filed with respect to 
Department orders issued pursuant to paragraph (b), (c), or (d) of this 
section. Nevertheless, if the Department serves

[[Page 40]]

a notification under paragraph (d) of this section, the carrier may make 
application to the Department for approval of any or all existing or 
proposed schedules, pursuant to the provisions of Sec. 213.5. The 
Department may with or without hearing withdraw, in whole or in part, 
its notification at any time and may permit existing or proposed 
schedules to be operated for such period or periods as the Department 
may determine.
    (f) The date of service on a foreign air carrier of orders and 
notifications pursuant to this section shall be the date of mailing 
thereof, by certified or registered mail, to the agent designated by the 
foreign air carrier pursuant to 49 U.S.C. 46103 or, if the foreign air 
carrier has failed to designate an agent, the date of mailing by 
registered air mail to the foreign air carrier's home office.

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



Sec. 213.4  [Reserved]



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

    (a) Number of copies and certificate of service. An original and 
three copies of each schedule, and an original and seven (7) copies of 
application for approval of schedules (Sec. 213.3(e)) shall be filed 
with the Department, each setting forth the names and addresses of the 
persons, if any, required to be served, and stating that service has 
been made on all such persons by personal service or by registered or 
certified mail (if the addressee is located within the United States, 
its territories and possessions) or by registered air mail (if the 
addressee is located outside the United States, its territories and 
possessions) and the date of such service. In the case of service by 
mail, the date of mailing shall be considered the date of service.
    (b) Pleadings by interested persons. Any interested person may file 
and serve upon the foreign air carrier a memorandum in opposition to, or 
in support of, schedules or an application for approval of schedules 
within 10 days of the filing opposed or supported. All memoranda shall 
set forth in detail the reasons for the position taken together with a 
statement of economic data and other matters which it is desired that 
the Department officially notice, and affidavits stating other facts 
relied upon. Memoranda shall contain a certificate of service as 
prescribed in paragraph (a) of this section. An executed original and 
seven (7) true copies shall be filed with the Department's Docket 
Facility. Unless otherwise provided by the Department, further pleadings 
will not be entertained.
    (c) Determination and petitions for reconsideration. The Department 
may make its determination upon the application and other pleadings or, 
in its discretion, after hearing. Interested persons seeking 
reconsideration of the Department's determination on an application 
approval of schedules may file a petition pursuant to Rule 14 of part 
302 of this chapter within 10 days of Department action. Any interested 
person may file an answer in opposition to, or in support of, the 
petition within 10 days after it is filed. An executed original and 19 
copies of such petition for reconsideration or memorandum shall be filed 
with the Docket Facility. All petitions for reconsideration shall 
contain a certificate of service in the form prescribed by paragraph (a) 
of this section. Unless ordered by the Department upon application or 
upon its own motion, further pleadings will not be entertained.

[ER-624, 35 FR 8881, June 9, 1970, as amended by ER-644, 35 FR 14382, 
Sept. 12, 1970; 61 FR 34725, July 3, 1996; 65 FR 6456, Feb. 9, 2000]



Sec. 213.6  Compliance.

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

[[Page 41]]

the Department may excuse the violation.

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



Sec. 213.7  Filing requirements for adherence to Montreal Agreement.

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

(Approved by the Office of Management and Budget under control number 
3024-0064)

[ER-1330, 48 FR 8050, Feb. 25, 1983, as amended by ER-1346, 48 FR 31014, 
July 6, 1983; 61 FR 34725, July 3, 1996]



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




Sec.
214.1 Applicability.
214.2 Terms of service.



Sec. 214.1  Applicability.

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

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

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



Sec. 214.2  Terms of service.

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

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

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



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




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

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

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



Sec. 215.1  Applicability.

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



Sec. 215.2  Purpose.

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



Sec. 215.3  Use of name.

    In holding out to the public and in performing air transportation 
services, a direct air carrier or foreign direct air carrier subject to 
this part shall use only the name in which its operating

[[Page 42]]

authorization is issued or trade name is registered, and shall not 
operate or hold out to the public in a name not acknowledged by the 
Department to be so registered. Minor variations in the use of this 
name, including abbreviations, contractions, initial letters, or other 
variations of the name that are identifiable with the authorized name, 
are permitted. Slogans and service marks shall not be considered names 
for the purpose of this part, and their use is not restricted.

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



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

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

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

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



Sec. 215.5  Procedure in case of similarity of names.

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



Sec. 215.6  Acknowledgment of registration.

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

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



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




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

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

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



Sec. 216.1  Definitions.

    (a) As used in this part, unless the context otherwise requires:

[[Page 43]]

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



Sec. 216.2  Applicability.

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



Sec. 216.3  Prohibition.

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



Sec. 216.4  Special authorizations.

    (a) Applications. Any foreign air carrier may apply to the Board for 
a Special Authorization, as required by this part, for the carriage of 
blind sector traffic on a particular flight, series of flights, or for a 
specified or indefinite period of time between specified points. 
Applications shall be submitted directly to the Board, addressed to the 
attention of the Director, Bureau of International Aviation. One 
original and two copies in conformity with the requirements of 
Sec. Sec. 302.3(b) and 302.4 (a) and (b) of this chapter shall be 
filed. The applications shall contain a proper identification of the 
applicant; the flight or flights upon which it is proposed to carry such 
blind sector traffic, including routing, nontraffic stops, and dates or 
duration of the authority sought; a full description of such traffic, 
and points between which such traffic will be carried; information or 
documentation as to whether the country of which the applicant is a 
national grants reciprocal privileges to U.S. carriers; and the reasons 
for requesting such authorization together with such additional 
information as will establish that the grant of such authority will 
otherwise be in the public interest. Such additional information as may 
be specifically requested by the Board shall also be furnished.
    (b) Service. Applications shall be served upon each direct U.S. air 
carrier certificated to engage in individually ticketed or waybilled 
foreign air transportation over any portion of the route to which the 
application pertains, and on such other persons as the Board may 
require, and proof of such service shall accompany the application as 
provided in Sec. 302.7 of this chapter. Notice of such applications 
shall also be published in the Board's Weekly List of Applications 
Filed.
    (c) Memoranda in support or opposition. Any interested person may 
file a memorandum in support of or in opposition to the grant of an 
application. Such memorandum shall set forth in detail the reasons why 
it is believed that the application should be granted or denied and 
shall be accompanied by such data, including affidavits, which it is 
desired that the Board consider. Copies of the memorandum shall be 
served upon the applicant. Nothing in this subparagraph shall be deemed 
to preclude the Board from granting or

[[Page 44]]

denying an application when the circumstances so warrant without 
awaiting the filing of memoranda in support of or in opposition to the 
application.
    (d) Time for filing. (1) Applications seeking authority to engage in 
blind sector operations for a period of 3 months or longer, shall be 
submitted at least 60 days in advance of the proposed commencement of 
such operations. Memoranda in response to such an application shall be 
submitted within 15 days after the date of filing thereof.
    (2) Applications seeking authority to engage in blind sector 
operations for a period less than three months shall be filed at least 
20 days in advance of the proposed commencement of such operations, and 
memoranda in response thereto within 7 days after the date of filing 
thereof: Provided, That the Board may consider late filed applications 
upon a showing of good cause for failure to adhere to this requirement.
    (e) General procedural requirements. Except as otherwise provided 
herein, the provisions of part 302, subpart A, of this chapter shall 
apply to the extent applicable.
    (f) Issuance of Special Authorization. A Special Authorization 
authorizing the carriage of blind sector traffic will be issued only if 
the Board finds that the proposed carriage is fully consistent with 
applicable law and this part, and that grant of such authority would be 
in the public interest. The application may be granted or denied in 
whole or in part without hearing, and a Special Authorization made 
subject to any conditions or limitations, to the extent that such action 
is deemed by the Board to be in the public interest. Special 
Authorizations are not transferable.
    (g) Nature of the privilege conferred. A Special Authorization 
issued pursuant to this section shall constitute a privilege conferred 
upon a carrier, which may be enjoyed only to the extent that its 
continued exercise remains in the interest of the public. Accordingly, 
any Special Authorization issued pursuant to this section may be 
revoked, suspended, amended or restricted without hearing.

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

[ER-525, 33 FR 692, Jan. 19, 1968, as amended by ER-910, 40 FR 23844, 
June 3, 1975; ER-1060, 43 FR 34117, Aug. 3, 1978; 65 FR 6456, Feb. 9, 
2000]



Sec. 216.5  Existing permits.

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



Sec. 216.6  Existing unauthorized operations.

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



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




Sec.
217.1 Definitions.
217.2 Applicability.

[[Page 45]]

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

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

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



Sec. 217.1  Definitions.

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

[[Page 46]]

one) or loyalty programs (for example, redemption of frequent flyer 
points);
    (2) Passengers traveling on vouchers or tickets issued as 
compensation for denied boarding or in response to consumer complaints 
or claims;
    (3) Passengers traveling at corporate discounts;
    (4) Passengers traveling on preferential fares (Government, seamen, 
military, youth, student, etc.);
    (5) Passengers traveling on barter tickets; and
    (6) Infants traveling on confirmed-space tickets.
    Statement of Authorization under this part means a statement of 
authorization from the Department, pursuant to 14 CFR part 207, 208, or 
212, as appropriate, that permits joint service transportation, such as 
blocked space agreements, part-charters, code-sharing or wet-leases, 
between two direct air carriers holding underlying economic authority 
from the Department.
    Wet-Lease Agreement means an agreement under which one carrier 
leases an aircraft with flight crew to another air carrier.

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



Sec. 217.2  Applicability.

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

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



Sec. 217.3  Reporting requirements.

    (a) Each foreign air carrier shall file BTS Form 41 Schedule T-
100(f) ``Foreign Air Carrier Traffic Data by Nonstop Segment and On-
flight Market.'' All traffic statistics shall be compiled in terms of 
each flight stage as actually performed.
    (b) The traffic statistics reported on Schedule T-100(f) shall be 
accumulated in accordance with the data elements prescribed in Sec. 
217.5 of this part, and these data elements are patterned after those in 
section 19-5 of part 241 of this chapter.
    (c) One set of Form 41 Schedule T-100(f) data shall be filed.
    (d) Schedule T-100(f) shall be submitted to the Department within 
thirty (30) days following the end of each reporting month.
    (e) Schedule T-100(f) shall be filed with the Bureau of 
Transportation Statistics at the address referenced in Sec. 217.10 and 
the Appendix to Sec. 217.10 of this part.

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



Sec. 217.4  Data collected (service classes).

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



Sec. 217.5  Data collected (data elements).

    (a) Within each of the service classifications prescribed in Sec. 
217.4, data shall be reported in applicable traffic elements.
    (b) The statistical data to be reported on Schedule T-100(f) are:
    (1) Air carrier. The name and code of the air carrier reporting the 
data. The carrier code is assigned by DOT. The Office of Airline 
Information (OAI'S) will confirm the assigned code upon request; OAI's 
address is in the Appendix to Sec. 217.10 of this part.
    (2) Reporting period date. The year and month to which the reported 
data are applicable.
    (3) Origin airport code. This code represents the industry 
designator as described in the Appendix to Sec. 217.10 of this part. A 
common private industry source of these industry designator codes is the 
Official Airline Guides

[[Page 47]]

(OAG). Where none exists, OAI will furnish a code upon request. OAI's 
address is in the Appendix to Sec. 217.10 of this part.
    (4) Destination airport code. This represents the industry 
designator, from the source described in Sec. 217.5(b)(3).
    (5) Service class code. For scheduled and other services, the 
applicable service class prescribed in Sec. 217.4 of this part shall be 
reported.
    (6) Aircraft type code. This code represents the aircraft type, as 
specified in the Appendix to Sec. 217.10 of this part. Where none 
exists, OAI will furnish a code upon request.
    (7) Revenue aircraft departures performed (Code 510). The number of 
revenue aircraft departures performed.
    (8) Revenue passengers transported (Code 130). The total number of 
revenue passengers on board over a flight stage, including those already 
on the aircraft from previous flight stages. Includes both local and 
through passengers on board the aircraft.
    (9) Revenue freight transported (kilograms) (Code 237). The volume, 
expressed in kilograms, of revenue freight that is transported. As used 
in this part, ``Freight'' means revenue cargo other than passengers or 
mail.
    (10) Total revenue passengers in market (Code 110). The total number 
of revenue passengers enplaned in a market, boarding the aircraft for 
the first time. While passengers may be transported over several flight 
stages in a multi-segment market, this data element (code 110) is an 
unduplicated count of passengers originating within the market.
    (11) Total revenue freight in market (kilograms) (Code 217). The 
amount of revenue freight cargo (kilograms) that is enplaned in a 
market, loaded on the aircraft for the first time.
    (12) Available capacity-payload (Code 270). The available capacity 
is collected in kilograms. This figure shall reflect the available load 
(see load, available in 14 CFR part 241 Section 03) or total available 
capacity for passengers, mail and freight applicable to the aircraft 
with which each flight stage is performed.
    (13) Available seats (Code 310). The number of seats available for 
sale. This figure reflects the actual number of seats available, 
excluding those blocked for safety or operational reasons. Report the 
total available seats in item 310.

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



Sec. 217.6  Extension of filing time.

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

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



Sec. 217.7  Certification.

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

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



Sec. 217.8  Reporting procedures.

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



Sec. 217.9  Waivers from reporting requirements.

    (a) A waiver from any reporting requirement contained in Schedule T-
100(f) may be granted by the Department upon its own initiative, or upon 
the submission of a written request of the air carrier to the Director, 
Office of Airline Information, when such a waiver is in the public 
interest.

[[Page 48]]

    (b) Each request for waiver must demonstrate that: Existing 
peculiarities or unusual circumstances warrant a departure from the 
prescribed procedure or technique; a specifically defined alternative 
procedure or technique will result in substantially equivalent or more 
accurate portrayal of the operations reported; and the application of 
such alternative procedure will not adversely affect the uniformity in 
reporting applicable to all air carriers.

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



Sec. 217.10  Instructions.

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

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

    (a) General instructions.
    (1) Description. Form 41 Schedule T-100(f) provides flight stage 
data covering both passenger/cargo and all cargo operations in scheduled 
and nonscheduled services. The schedule is used to report all flights 
which serve points in the United States or its territories as defined in 
this part.
    (2) Applicability. Each foreign air carrier holding a Sec. 41302 
permit or exemption authority shall file Schedule T-100(f).
    (3) Address for filing reports: Office of Airline Information, K-25, 
Room 4125, U.S. Department of Transportation, 400 Seventh St., SW., 
Washington, DC 20590.
    (4) Filing period. Form 41 Schedule T-100(f) shall be filed monthly 
and is due at the Department thirty (30) days following the end of the 
reporting month to which the data are applicable.
    (5) Number of copies. A single set of legible Form 41 Schedule T-
100(f) data and certification shall be submitted.
    (6) Foreign air carrier certification. Each foreign air carrier 
shall submit a certification statement (illustrated at the end of this 
Appendix) as an integral part of each monthly Schedule T-100(f), as 
prescribed in Sec. 217.5 of this part.
    (7) Alternative filing on Automatic Data Processing (ADP) media. 
Foreign air carriers are encouraged to use ADP equipment to reduce the 
manual effort of preparing Schedule T-100(f). Foreign air carriers may 
use the floppy disk medium. ADP submission requirements for floppy discs 
are prescribed in paragraph (f).
    (b) Preparation of Form 41 Schedule T-100(f):
    (1) Explanation of nonstop segments and on-flight markets. There are 
two basic categories of data, one pertaining to nonstop segments and the 
other pertaining to on-flight markets. For example, the routing (A-B-C-
D) consists of three nonstop segment records A-B, B-C, and C-D, and six 
on-flight market records A-B, A-C, A-D, B-C, B-D, and C-D.
    (2) Guidelines for reporting a nonstop segment. A nonstop segment is 
reported when one or both points are in the United States or its 
territories. These data shall be merged with that for all of the other 
reportable nonstop operations over the same segment. Nonstop segment 
data must be summarized by aircraft type, under paragraph (h)(1), and 
class of service, paragraph (g)(1)(v).
    (3) Rules for determining a reportable on-flight market. On-flight 
markets are reportable when one or both points are within the U.S., with 
the following exceptions: (i) Do not report third country to U.S. 
markets resulting from flight itineraries which serve a third country 
prior to a homeland point in flights passing through the homeland bound 
for the U.S.; and (ii) do not report U.S. to third country markets 
resulting from itineraries serving third country points subsequent to a 
homeland point in flights outbound from the U.S. and passing through the 
homeland. In reporting data pertaining to these two exceptions, the 
traffic moving to or from the U.S. relating to the applicable prior or 
subsequent third countries (referred to as ``behind'' or ``beyond'' 
traffic) is to be combined with the applicable foreign homeland gateway 
point, just as though the traffic were actually enplaned or deplaned at 
the homeland gateway, without disclosure of the actual prior or 
subsequent points. Applicable flights are illustrated in examples (6) 
and (7) under paragraph (c).
    (c) Examples of flights. Following are some typical flight 
itineraries that show the reportable nonstop segment and on-flight 
market entries. The carrier's homeland is the key factor in determining 
which on-flight markets are reportable.
    (1) SQ flight  11 LAX--NRT--SIN. This is an example of a 
flight with an intermediate foreign country. It is not necessary to 
report anything on the NRT--SIN leg.

SQ--Singapore Airlines

[[Page 49]]

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

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

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

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

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

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

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

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


[[Page 50]]

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

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

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

    (5) QF flight 25 SYD--BNE--CNS--HNL--YVR. This flight 
serves three homeland points, a U.S. point, and a subsequent third 
country. Nonstop segment information is required on the respective legs 
into and out of the United States. All on-flight market entries 
involving the U.S. point HNL are also required. Data are not required on 
the homeland to homeland markets, or the homeland--third country 
markets.

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

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

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

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

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


[[Page 51]]

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

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

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

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

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

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

    (d) Provisions to reduce paperwork:
    (1) Nonstop Segment Entries. The flight stage data applicable to 
nonstop segment entries must be summarized to create totals by aircraft 
equipment type, within service class, within pairs-of-points.
    (2) On-flight Market Entries. The applicable on-flight market 
entries shall be summarized to create totals by service class within 
pair-of-points.
    (e) Preparation of hard copy Schedule T-100(f):
    (1) Section A--Indicative and flight pattern information. A copy of 
Schedule T-100(f) is shown at the end of this Appendix. Section A 
defines the origin and destination points and the service class code to 
which the nonstop segment data in Section B and the on-flight market 
data in Section C are applicable. Section A information, along with the 
carrier code and report date, must be included on each schedule.
    (2) Section B--Nonstop segment information. Section B of the 
schedule is used for reporting nonstop segment information by aircraft 
type. To reduce the number of schedules reported, space is provided for 
including data on multiple different aircraft types. Similarly, the on-
flight market section has been included on a single Schedule T-100(f), 
along with the nonstop segment data, rather than on a separate schedule.
    (3) Section C--On-flight market information. Section C of the 
schedule is used for reporting on-flight market data. There will always 
be an on-flight market that corresponds to the nonstop segment. Because 
the on-flight market data are reported at the service class level rather 
than by aircraft type, a specific flight may produce more on-flight 
markets than nonstop segments, (see examples in paragraph (c) of this 
Appendix), resulting in data reported in sections A and C only.
    (f) ADP media reports:
    (1) ADP report format. A foreign air carrier may, in accordance with 
the following guidelines, use personal computers (and in some cases 
mainframe or minicomputers) to report Schedule T-100(f) data.

[[Page 52]]

    (i) Reporting medium. ADP data submission must be on IBM compatible 
disks. Carriers using mainframe or minicomputers shall download 
(transcribe) to the required IBM compatible disk. Carriers wishing to 
use a different ADP procedure or e-mail must obtain written approval to 
do so from the BTS Assistant Director--Airline Information under the 
waiver provisions in Sec. 217.9 of this part. Requests for approval to 
use alternative methods must disclose and describe in sufficient detail 
the proposed data transmission methodology.
    (ii) File characteristics. OAI files are reported in ASCII delimited 
format, sometimes called Data Interchange Format (DIF). This form of 
recording data provides for variable length fields (data elements) 
which, in the case of alphabetic data, are enclosed by quotation marks 
(``) and separated by a comma (,); numeric data elements are recorded 
without editing symbols and separated by a comma. The data is identified 
by its juxtaposition within a given record. Each record submitted by an 
air carrier shall contain the specified number of data elements all of 
which must be juxtapositionally correct.
    (iii) Schedule T-100(f) record layout. Each minidisk record shall 
consist of data fields for recording a maximum of eleven (11) elements. 
The order and description of the data fields are as follows:

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

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

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

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

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

    (3) Collating sequence, optional. If practical, the records should 
be sorted by origin and destination airport codes, service class, and 
aircraft type. However, the sequence is optional. Data may be submitted 
in any sequence including random.
    (4) Summarization. See summarization rules as specified in paragraph 
(d)(1).
    (g) Data element definitions:
    (1) Service pattern information.
    (i) Line A-1 Carrier code. Use the carrier code established by the 
Department. This code is provided to each carrier in the initial 
reporting letter from the Office of Airline Information (OAI). If there 
are any questions about these codes, contact the OAI Data Administration 
Division at the address in paragraph (a)(3) of this Appendix.

[[Page 53]]

    (ii) Line A-2 Report date. This is the year and month to which the 
data are applicable. For example, 200009 indicates the year 2000, and 
the month of September.
    (iii) Line A-3 Origin airport code. This is the departure airport, 
where an aircraft begins a flight segment, and where the passengers 
originate in an on-flight market. Use the 3-letter code from the City/
Airport Codes section of the Official Airline Guide Worldwide Edition. 
If no 3-letter code is available, OAI will assign one; the address is in 
paragraph (a)(3) of this Appendix.
    (iv) Line A-4 Destination airport code. This is the arrival airport, 
where an aircraft stops on a flight segment, and where passengers 
deplane (get off the flight) after reaching their destination in a 
market. Use the 3-letter code from the source described in paragraph 
(g)(1)(iii) of this Appendix.
    (v) Line A-5 Service class code. Select one of the following single 
letter codes which describes the type of service being reported on a 
given flight operation.

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

    (2) Nonstop segment information:
    (i) Line B-1 Aircraft type code. Use the four digit numeric code 
prescribed in paragraph (h)(1) of this Appendix. If no aircraft type 
code is available, OAI will assign one. The address is in paragraph 
(a)(3) of this Appendix.
    (ii) Line B-2 Aircraft departures performed. This is the total 
number of physical departures performed with a given aircraft type, 
within service class and pair-of-points.
    (iii) Line B-3 Revenue passengers transported. This is the total 
number of revenue passengers transported on a given nonstop segment. It 
represents the total number of revenue passengers on board over the 
segment without regard to their actual point of enplanement.
    (iv) Line B-4 Revenue freight transported. This item is the total 
weight in kilograms (kg) of the revenue freight transported on a given 
nonstop segment without regard to its actual point of enplanement.
    (3) On-flight market information:
    (i) Line C-1 Total revenue passengers in market. This item 
represents the total number of revenue passengers, within service class, 
that were enplaned at the origin airport and deplaned at the destination 
airport.
    (ii) Line C-2 Total revenue freight in market. This item represents 
the total weight in kilograms (kg) of revenue freight enplaned at the 
origin and deplaned at the destination airport.
    (h) [Reserved]
    (i) Joint Service.
    (1) The Department may authorize joint service operations between 
two direct air carriers. Examples of these joint service operations are:
    Blocked-space agreements;
    Part-charter agreements;
    Code-sharing agreements;
    Wet-lease agreements, and similar arrangements.
    (2) Joint-service operations shall be reported on BTS Form 41 
Schedules T-100 and T-100(f) by the air carrier in operational control 
of the flight, i.e., the air carrier that uses its flight crew to 
perform the operation. If there are questions about reporting a joint-
service operation, contact the BTS Assistant Director--Airline 
Information at the address in paragraph (a)(3) of this appendix.
    (j) Schedules.

[[Page 54]]

[GRAPHIC] [TIFF OMITTED] TC30SE91.000


[[Page 55]]


[GRAPHIC] [TIFF OMITTED] TC30SE91.001


[53 FR 46294, Nov. 16, 1988, as amended at 54 FR 7183, Feb. 17, 1989; 60 
FR 66722, Dec. 26, 1995; 67 FR 49223, July 30, 2002]



Sec. 217.11  Reporting compliance.

    (a) Failure to file reports required by this part will subject an 
air carrier to civil penalties prescribed in Title 49 United States Code 
section 46301.
    (b) Title 18 U.S.C. 1001, Crimes and Criminal Procedure, makes it a 
criminal offense subject to a maximum fine of $10,000 or imprisonment 
for not more than 5 years, or both, to knowingly and willfully make, or 
cause to be made, any false or fraudulent statements or representations 
in any matter within the jurisdiction of any agency of the United 
States.

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

[[Page 56]]



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




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

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

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



Sec. 218.1  Definitions.

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



Sec. 218.2  Applicability.

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

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



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

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

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



Sec. 218.4  Condition upon authority of lessee.

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



Sec. 218.5  Application for disclaimer of jurisdiction.

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

[[Page 57]]

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



Sec. 218.6  Issuance of order disclaiming jurisdiction.

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



Sec. 218.7  Presumption.

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



PART 221_TARIFFS--Table of Contents




                            Subpart A_General

Sec.
221.1 Applicability of this part.
221.2 Carrier's duty.
221.3 Definitions.
221.4 English language.
221.5 Unauthorized air transportation.

          Subpart B_Who Is Authorized To Issue and File Tariffs

221.10 Carrier.
221.11 Agent.

             Subpart C_Specifications of Tariff Publications

221.20 Specifications applicable to tariff publications.

                   Subpart D_Manner of Filing Tariffs

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

                      Subpart E_Contents of Tariff

221.40 Specific requirements.
221.41 Routing.

Subpart F_Requirements Applicable to all Statements of Fares and Charges

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

                       Subpart G_Governing Tariffs

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

[[Page 58]]

                     Subpart H_Amendment of Tariffs

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

         Subpart I_Suspension of Tariff Provisions by Department

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

          Subpart J_Filing Tariff Publications With Department

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

   Subpart K_Availability of Tariff Publications for Public Inspection

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

               Subpart L_Rejection of Tariff Publications

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

   Subpart M_Special Tariff Permission to File on Less Than Statutory 
                                 Notice

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

                 Subpart N_Waiver of Tariff Regulations

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

         Subpart O_Giving and Revoking Concurrences to Carriers

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

       Subpart P_Giving and Revoking Powers of Attorney to Agents

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

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

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

                 Subpart R_Electronically Filed Tariffs

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

[[Page 59]]

221.212 Special tariff permission.
221.300 Discontinuation of electronic tariff system.
221.400 Filing of paper tariffs required.
221.500 Transmission of electronic tariffs to subscribers.
221.550 Copies of tariffs made from filer's printer(s) located in 
          Department's public reference room.
221.600 Actions under assigned authority and petitions for review of 
          staff action.

    Authority: 49 U.S.C. 40101, 40109, 40113, 46101, 46102, chapter 411, 
chapter 413, chapter 415 and chapter 417, subchapter I.

    Source: 64 FR 40657, July 27, 1999, unless otherwise noted.



                            Subpart A_General



Sec. 221.1  Applicability of this part.

    All tariffs and amendments to tariffs of air carriers and foreign 
air carriers filed with the Department pursuant to chapter 415 of the 
statute shall be constructed, published, filed, posted and kept open for 
public inspection in accordance with the regulations in this part and 
orders of the Department.



Sec. 221.2  Carrier's duty.

    (a) Must file tariffs. (1) Except as provided in paragraph (d) of 
this section, every air carrier and every foreign air carrier shall file 
with the Department, and provide and keep open to public inspection, 
tariffs showing all fares, and charges for foreign air transportation 
between points served by it, and between points served by it and points 
served by any other air carrier or foreign air carrier, when through 
service and through rates shall have been established, and showing to 
the extent required by regulations and orders of the Department, all 
classifications, rules, regulations, practices, and services in 
connection with such foreign air transportation.
    (2) Tariffs shall be filed, and provided in such form and manner, 
and shall contain such information as the Department shall by regulation 
or order prescribe. Any tariff so filed which is not consistent with 
chapter 415 of the statute and such regulations and orders may be 
rejected. Any tariff so rejected shall be void, and may not be used.
    (b) Must observe tariffs. No air carrier or foreign air carrier 
shall charge or demand or collect or receive a greater or less or 
different compensation for foreign air transportation or for any service 
in connection therewith, than the fares and charges specified in its 
currently effective tariffs; and no air carrier or foreign air carrier 
shall, in any manner or by any device, directly or indirectly, or 
through any agent or broker, or otherwise, refund or remit any portion 
of the fares, or charges so specified, or extend to any person any 
privileges or facilities, with respect to matters required by the 
Department to be specified in such tariffs, except those specified in 
such tariffs.
    (c) No relief from violations. Nothing contained in this part shall 
be construed as relieving any air carrier or foreign air carrier from 
liability for violations of the statute, nor shall the filing of a 
tariff, or amendment thereto, relieve any air carrier or foreign air 
carrier from such violations or from violations of regulations issued 
under the statute.
    (d) Exemption authority. Air carriers and foreign air carriers, both 
direct and indirect, are exempted from the requirement of section 41504 
of the statute and any requirement of this chapter to file, and shall 
not file with the Department, tariffs for operations under the following 
provisions:
    (1) Part 291, Domestic Cargo Transportation;
    (2) Part 296, Indirect Air Transportation of Property;
    (3) Part 297, Foreign Air Freight Forwarders and Foreign Cooperative 
Shippers Association;
    (4) Part 298, Exemption for Air Taxi Operations, except to the 
extent noted in Sec. 298.11(b);
    (5) Part 380, Public Charters;
    (6) Part 207, Charter Trips and Special Services;
    (7) Part 208, Terms, Conditions, and Limitations of Certificates to 
Engage in Charter Air Transportation;
    (8) Part 212, Charter Trips by Foreign Air Carriers;
    (9) Part 292, International Cargo Transportation, except as provided 
in part 292.
    (10) Part 293 International Passenger Transportation, except as 
provided in part 293.

[[Page 60]]



Sec. 221.3  Definitions.

    As used in this part, terms shall be defined as follows:
    Add-on means an amount published for use only in combination with 
other fares for the construction of through fares. It is also referred 
to as ``proportional fare'' and ``arbitrary fare''.
    Add-on tariff means a tariff which contains add-on fares.
    Area No. 1 means all of the North and South American Continents and 
the islands adjacent thereto; Greenland; Bermuda; the West Indies and 
the islands of the Caribbean Sea; and the Hawaiian Islands (including 
Midway and Palmyra).
    Area No. 2 means all of Europe (including that part of the former 
Union of the Soviet Socialist Republics in Europe) and the islands 
adjacent thereto; Iceland; the Azores; all of Africa and the islands 
adjacent thereto; Ascension Island; and that part of Asia lying west of 
and including Iran.
    Area No. 3 means all of Asia and the islands adjacent thereto except 
that portion included in Area No. 2; all of the East Indies, Australia, 
New Zealand, and the islands adjacent thereto; and the islands of the 
Pacific Ocean except those included in Area No. 1.
    Bundled normal economy fare means the lowest one-way fare available 
for unrestricted, on-demand service in any city-pair market.
    CRT means a video display terminal that uses a cathode ray tube as 
the image medium.
    Capacity controlled fare means a fare for which a carrier limits the 
number of seats available for sale.
    Carrier means an air carrier or foreign air carrier subject to 
section 41504 of 49 U.S.C. subtitle VII.
    Charge means the amount charged for baggage, in excess of the free 
allowance, accompanying or checked by a passenger or for any other 
service ancillary to the passenger's carriage.
    Conditions of carriage means those rules of general applicability 
that define the rights and obligations of the carrier(s) and any other 
party to the contract of carriage with respect to the transportation 
services provided.
    Contract of carriage means those fares, rules, and other provisions 
applicable to the foreign air transportation of passengers or their 
baggage, as defined in the statute.
    Department means the Department of Transportation.
    Direct-service market means an international market where the 
carrier provides service either on a nonstop or single-flight-number 
basis, including change-of-gauge.
    Electronic tariff means an international passenger fares or rules 
tariff or a special tariff permission application transmitted to the 
Department by means of an electronic medium, and containing fares for 
the transportation of persons and their baggage, and including such 
associated data as arbitraries, footnotes, routings, and fare class 
explanations.
    Fare means the amount per passenger or group of persons stated in 
the applicable tariff for the air transportation thereof and includes 
baggage unless the context otherwise requires.
    Field means a specific area of a record used for a particular 
category of data.
    Filer means an air carrier, foreign air carrier, or tariff 
publishing agent of such a carrier filing tariffs on its behalf in 
conformity with this subpart.
    Item means a small subdivision of a tariff and identified by a 
number, a letter, or other definite method for the purpose of 
facilitating reference and amendment.
    Joint fare means a fare that applies to transportation over the 
joint lines or routes of two or more carriers and which is made and 
published by arrangement or agreement between such carriers evidenced by 
concurrence or power of attorney.
    Joint tariff means a tariff that contains joint fares.
    Local fare means a fare that applies to transportation over the 
lines or routes of one carrier only.
    Local tariff means a tariff that contains local fares.
    Machine-readable data means encoded computer data, normally in a 
binary format, which can be read electronically by another computer with 
the requisite software without any human interpretation.
    On-line tariff database means the remotely accessible, on-line 
version, maintained by the filer, of:

[[Page 61]]

    (1) The electronically filed tariff data submitted to the Department 
pursuant to this part and Department orders, and
    (2) The Departmental approvals, disapprovals, and other actions, as 
well as any Departmental notation concerning such approvals, 
disapprovals, or other actions, that subpart R of this part requires the 
filer to maintain in its database.
    Original tariff refers to the tariff as it was originally filed 
exclusive of any supplements, revised records or additional records.
    Passenger means any person who purchases, or who contacts a ticket 
office or travel agent for the purpose of purchasing, or considering the 
purchase of, foreign air transportation.
    Passenger tariff means a tariff containing fares, charges, or 
governing provisions applicable to the foreign air transportation of 
persons and their baggage.
    Publish means to display tariff material in either electronic or 
paper media.
    Record means an electronic tariff data set that contains information 
describing one (1) tariff price or charge, or information describing one 
(1) related element associated with that tariff price or charge.
    SFFL means the Standard Foreign Fare Level as established by the 
Department of Transportation under 49 U.S.C. 41509.
    Statute means subtitle VII of Title 49, United States Code.
    Statutory notice means the number of days required for tariff 
filings in Sec. 221.160(a).
    Tariff publication means a tariff, a supplement to a tariff, or an 
original or revised record of a tariff, including an index of tariffs 
and an adoption notice (Sec. 221.161).
    Through fare means the total fare from point of origin to 
destination. It may be a local fare, a joint fare, or combination of 
separately established fares.
    Ticket office means a station, office or other location where 
tickets are sold or similar documents are issued, that is under the 
charge of a person employed exclusively by the carrier, or by it jointly 
with another person.
    Unbundled normal economy fare means the lowest one-way fare 
available for on-demand service in any city-pair market which is 
restricted in some way, e.g., by limits set and/or charges imposed for 
enroute stopovers or transfers, exclusive of capacity control.
    United States means the several States, the District of Columbia, 
and the several Territories and possessions of the United States, 
including the Territorial waters and the overlying air space thereof.
    Warsaw Convention means the Convention for the Unification of 
Certain Rules Relating to International Transportation by Air, 49 Stat. 
3000.



Sec. 221.4  English language.

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



Sec. 221.5  Unauthorized air transportation.

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



          Subpart B_Who is Authorized To Issue and File Tariffs



Sec. 221.10  Carrier.

    (a) Local or joint tariffs. A carrier may issue and file, in its own 
name, tariff publications which contain:
    (1) Local fares of such carrier only, and provisions governing such 
local fares, and/or
    (2) Joint fares which apply jointly via such issuing carrier in 
connection with other carriers (participating in the tariff publications 
under authority of their concurrences given to the issuing

[[Page 62]]

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



Sec. 221.11  Agent.

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



             Subpart C_Specifications of Tariff Publications



Sec. 221.20  Specifications applicable to tariff publications.

    (a) Numerical order. All items in a tariff shall be arranged in 
numerical or alphabetical order. Each item shall bear a separate item 
designation and the same designation shall not be assigned to more than 
one item.
    (b) Carrier's name. Wherever the name of a carrier appears in a 
tariff publication, such name shall be shown in full exactly as it 
appears in the carrier's certificate of public convenience and 
necessity, foreign air carrier permit, letter of registration, or 
whatever other form of operating authority of the Department to engage 
in air transportation is held by the carrier, or such other name which 
has specifically been authorized by order of the Department. A carrier's 
name may be abbreviated, provided the abbreviation is explained in the 
tariff.
    (c) Agent's name and title. Wherever the name of an agent appears in 
tariff publications, such name shall be shown in full exactly as it 
appears in the powers of attorney given to such agent by the 
participating carriers and the title ``Agent'' or ``Alternate Agent'' 
(as the case may be) shall be shown immediately in connection with the 
name.
    (d) Statement of prices. All fares and charges shall be clearly and 
explicitly stated and shall be arranged in a simple and systematic 
manner. Complicated plans and ambiguous or indefinite terms shall not be 
used. So far as practicable, the fares and charges shall be subdivided 
into items or similar units, and an identifying number shall be assigned 
to each item or unit to facilitate reference thereto.
    (e) Statement of rules. The rules and regulations of each tariff 
shall be clear, explicit and definite, and except as otherwise provided 
in this part, shall contain:
    (1) Such explanatory statements regarding the fares, charges, rules 
or other provisions contained in the tariff as may be necessary to 
remove all doubt as to their application.
    (2) All of the terms, conditions, or other provisions which affect 
the fares or charges for air transportation named in the tariff.
    (3) All provisions and charges which in any way increase or decrease 
the amount to be paid by any passenger, or which in any way increase or 
decrease the value of the services rendered to the passenger.
    (f) Separate rules tariff. If desired, rules and regulations may be 
published

[[Page 63]]

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



                   Subpart D_Manner of Filing Tariffs



Sec. 221.30  Passenger fares and charges.

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



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

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



                      Subpart E_Contents of Tariff



Sec. 221.40  Specific requirements.

    (a) In addition to the general requirements in Sec. 221.20, the 
rules and regulations of each tariff shall contain:
    (1) Aircraft and seating. For individually ticketed passenger 
service, the name of each type of aircraft used in rendering such 
service by manufacturer model designation and a description of the 
seating configuration (or configurations if there are variations) of 
each type of aircraft. Where fares are provided for different classes or 
types of passenger service (that is, first class, coach, day coach, 
night coach, tourist, economy or whatever other class or type of service 
is provided

[[Page 64]]

under the tariff), the tariff shall specify the type of aircraft and the 
seating configuration used on such aircraft for each class or type of 
passenger service. When two or more classes or types of passenger 
service are performed in a single aircraft, the seating configuration 
for each type or class shall be stated and described.
    (2) Rule numbers. Each rule or regulation shall have a separate 
designation. The same designation shall not be assigned to more than one 
rule in the tariff.
    (3) Penalties. Where a rule provides a charge in the nature of a 
penalty, the rule shall state the exact conditions under which such 
charge will be imposed.
    (4) Vague or indefinite provisions. Rules and regulations shall not 
contain indefinite statements to the effect that traffic of any nature 
will be ``taken only by special arrangements'', or that services will be 
performed or penalties imposed ``at carrier's option'', or that the 
carrier ``reserves the right'' to act or to refrain from acting in a 
specified manner, or other provisions of like import; instead, the rules 
shall state definitely what the carrier will or will not do under the 
exact conditions stated in the rules.
    (5) Personal liability rules. Except as provided in this part, no 
provision of the Department's regulations issued under this part or 
elsewhere shall be construed to require the filing of any tariff rules 
stating any limitation on, or condition relating to, the carrier's 
liability for personal injury or death. No subsequent regulation issued 
by the Department shall be construed to supersede or modify this rule of 
construction except to the extent that such regulation shall do so in 
express terms.
    (6) Notice of limitation of liability for death or injury under the 
Warsaw Convention. Notwithstanding the provisions of paragraph (a)(5) of 
this section, each air carrier and foreign air carrier shall publish in 
its tariffs a provision stating whether it avails itself of the 
limitation on liability to passengers as provided in Article 22(1) of 
the Warsaw Convention or whether it has elected to agree to a higher 
limit of liability by a tariff provision. Unless the carrier elects to 
assume unlimited liability, its tariffs shall contain a statement as to 
the applicability and effect of the Warsaw Convention, including the 
amount of the liability limit in dollars. Where applicable, a statement 
advising passengers of the amount of any higher limit of liability 
assumed by the carrier shall be added.
    (7) Extension of credit. Air carriers and foreign air carriers shall 
not file tariffs that set forth charges, rules, regulations, or 
practices relating to the extension of credit for payment of charges 
applicable to air transportation.
    (8) Individual carrier provisions governing joint fares. Provisions 
governing joint fares may be published for account of an individual 
carrier participating in such joint fares provided that the tariff 
clearly indicates how such individual carrier's provisions apply to the 
through transportation over the applicable joint routes comprised of 
such carrier and other carriers who either do not maintain such 
provisions or who maintain different provisions on the same subject 
matter.
    (9) Passenger property which cannot lawfully be carried in the 
aircraft cabin. Each air carrier shall set forth in its tariffs 
governing the transportation of persons, including passengers' baggage, 
charges, rules, and regulations providing that such air carrier 
receiving as baggage any property of a person traveling in air 
transportation, which property cannot lawfully be carried by such person 
in the aircraft cabin by reason of any Federal law or regulation, shall 
assume liability to such person, at a reasonable charge and subject to 
reasonable terms and conditions, within the amount declared to the air 
carrier by such person, for the full actual loss or damage to such 
property caused by such air carrier.
    (b) [Reserved]



Sec. 221.41  Routing.

    (a) Required routing. The route or routes over which each fare 
applies shall be stated in the tariff in such manner that the following 
information can be definitely ascertained from the tariff:
    (1) The carrier or carriers performing the transportation,

[[Page 65]]

    (2) The point or points of interchange between carriers if the route 
is a joint route (via two or more carriers),
    (3) The intermediate points served on the carrier's or carriers' 
routes applicable between the origin and destination of the fare and the 
order in which such intermediate points are served.
    (b) Individually stated routings--Method of publication. The routing 
required by paragraph (a) of this section shall be shown directly in 
connection with each fare or charge for transportation, or in a routing 
portion of the tariff (following the fare portion of the tariff), or in 
a governing routing tariff. When shown in the routing portion of the 
tariff or in a governing routing tariff, the fare from each point of 
origin to each point of destination shall bear a routing number and the 
corresponding routing numbers with their respective explanations of the 
applicable routings shall be arranged in numerical order in the routing 
portion of the tariff or in the governing routing tariff.



Subpart F_Requirements Applicable to All Statements of Fares and Charges



Sec. 221.50  Currency.

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



Sec. 221.51  Territorial application.

    (a) Specific points of origin and destination. Except as otherwise 
provided in this part, the specific points of origin and destination 
from and to which the fares apply shall be specifically named directly 
in connection with the respective fares.
    (b) Directional application. A tariff shall specifically indicate 
directly in connection with the fares therein whether they apply 
``from'' and ``to'' or ``between'' the points named. Where the fares 
apply in one direction, the terms ``From'' and ``To'' shall be shown in 
connection with the point of origin and point of destination, 
respectively, and, where the fares apply in both directions between the 
points, the terms ``Between'' and ``And'' shall be shown in connection 
with the respective points.



Sec. 221.52  Airport to airport application, accessorial services.

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



Sec. 221.53  Proportional fares.

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

[[Page 66]]

    (c) Restrictions upon beyond points or connecting carriers. If an 
add-on fare is intended for use only on traffic originating at and/or 
destined to particular beyond points or is to apply only in connection 
with particular connecting carriers, such application shall be clearly 
and explicitly stated directly in connection with such add-on fare.



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

    (a) Fares for foreign air transportation of persons or property 
shall not be stated in the form of percentages, multiples, fractions, or 
other relationships to other fares except to the extent authorized in 
paragraphs (b), (c), and (d) of this section with respect to passenger 
fares and baggage charges.
    (b) A basis of fares for refund purposes may be stated, by rule, in 
the form of percentages of other fares.
    (c) Transportation rates for the portion of passengers' baggage in 
excess of the baggage allowance under the applicable fares may be 
stated, by rule, as percentages of fares.
    (d) Children's, infants' and senior citizen's fares, may be stated, 
by rule, as percentages of other fares published specifically in dollars 
and cents (hereinafter referred to as base fares): Provided, that:
    (1) Fares stated as percentages of base fares shall apply from and 
to the same points, via the same routes, and for the same class of 
service and same type of aircraft to which the applicable base fares 
apply, and shall apply to all such base fares in a fares tariff.
    (2) Fares shall not be stated as percentages of base fares for the 
purpose of establishing fares applying from and to points, or via 
routes, or on types of aircraft, or for classes of service different 
from the points, routes, types of aircraft, or classes of service to 
which the base fares are applicable.



Sec. 221.55  Conflicting or duplicating fares prohibited.

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



Sec. 221.56  Applicable fare when no through local or joint fares.

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



                       Subpart G_Governing Tariffs



Sec. 221.60  When reference to governing tariffs permitted.

    (a) Reference to other tariffs prohibited except as authorized. A 
tariff shall not refer to nor provide that it is governed by any other 
tariff, document, or publication, or any part thereof, except as 
specifically authorized by this part.
    (b) Reference by fare tariff to governing tariffs. A fare tariff may 
be made subject to a governing tariff or governing tariffs authorized by 
this subpart: Provided, that reference to such governing tariffs is 
published in the fare tariff in the manner required by Sec. 221.20(h).
    (c) Participation in governing tariffs. A fare tariff may refer to a 
separate governing tariff authorized by this subpart only when all 
carriers participating in such fare tariff are also shown as 
participating carriers in the governing tariff: Provided, that:
    (1) If such reference to a separate governing tariff does not apply 
for account of all participating carriers and is restricted to apply 
only in connection with local or joint fares applying over routes 
consisting of only particular carriers, only the carriers for whom such 
reference is published are required to be shown as participating 
carriers in the governing tariff to which such qualified reference is 
made.
    (2) [Reserved]
    (d) Maximum number of governing tariffs. A single fare tariff shall 
not make reference to conflicting governing tariffs.

[[Page 67]]



Sec. 221.61  Rules and regulations governing foreign air transportation.

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



Sec. 221.62  Explosives and other dangerous or restricted articles.

    Carriers may publish rules and regulations governing the 
transportation of explosives and other dangerous or restricted articles 
in separate governing tariffs, conforming to this subpart, instead of 
being included in the fares tariffs or in the governing rules tariff 
authorized by Sec. 221.61. This separate governing tariff shall contain 
no other rules or governing provisions.



Sec. 221.63  Other types of governing tariffs.

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



                     Subpart H_Amendment of Tariffs



Sec. 221.70  Who may amend tariffs.

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



Sec. 221.71  Requirement of clarity and specificity.

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



Sec. 221.72  Reinstating canceled or expired tariff provisions.

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



         Subpart I_Suspension of Tariff Provisions by Department



Sec. 221.80  Effect of suspension by Department.

    (a) Suspended matter not to be used. A fare, charge, or other tariff 
provision which is suspended by the Department, under authority of 
chapter 415 of the statute, shall not be used during the period of 
suspension specified by the Department's order.
    (b) Suspended matter not to be changed. A fare, charge, or other 
tariff provision which is suspended by the Department shall not be 
changed in any respect or withdrawn or the effective date thereof 
further deferred except by authority of an order or special tariff 
permission of the Department.
    (c) Suspension continues former matter in effect. If a tariff 
publication containing matter suspended by the Department directs the 
cancellation of a tariff or any portion thereof, which contains fares, 
charges, or other tariff provisions sought to be amended by the 
suspended matter, such cancellation is automatically suspended for the 
same period insofar as it purports to cancel any tariff provisions 
sought to be amended by the suspended matter.
    (d) Matter continued in effect not to be changed. A fare, charge, or 
other tariff provision which is continued in effect as a result of a 
suspension by the Department shall not be changed during the period of 
suspension unless the change is authorized by order or special tariff 
permission of the Department, except that such matter may be reissued 
without change during the period of suspension.



Sec. 221.81  Suspension supplement.

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

[[Page 68]]

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



Sec. 221.82  Reissue of matter continued in effect by suspension to be canceled upon termination of suspension.

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



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

    (a) When the Department vacates an order which suspended certain 
tariff matter in full or in part, such matter will not become effective 
until the termination of the suspension period unless the issuing agent 
or carrier amends the pertinent tariffs in the manner prescribed in this 
subpart (except as provided in paragraph (b) of this section).
    (b) If the Department vacates its suspension order prior to the 
original published effective date of the tariff provisions whose 
suspension is vacated, such provisions will become effective on their 
published effective date.



Sec. 221.84  Cancellation of suspended matter subsequent to date to which suspended.

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



          Subpart J_Filing Tariff Publications With Department



Sec. 221.90  Required notice.

    (a) Statutory notice required. Unless otherwise authorized by the 
Department or specified in a bilateral agreement between the United 
States and a foreign country, all tariff filings shall be made on the 
following schedule, whether or not they effect any changes:
    (1) At least 30 days before they are to become effective, for 
tariffs stating a passenger fare within the zone created by section 
41509(e) of the statute or

[[Page 69]]

stating a rule that affects only such a fare;
    (2) At least 25 days before they are to become effective, for 
matching tariffs that are to become effective on the same date as the 
tariff to be matched and that meet competition as described in Sec. 
221.94(c)(1)(v); and
    (3) At least 60 days before they are to become effective, for all 
other tariffs.
    (b) Computing number of days' notice. A tariff publication shall be 
deemed to be filed only upon its actual receipt by the Department, and 
the first day of any required period of notice shall be the day of 
actual receipt by the Department.
    (c) Issued date. All tariff publications must be received by the 
Department on or before the designated issued date.



Sec. 221.91  Delivering tariff publications to Department.

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



Sec. 221.92  Number of copies required.

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



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

    When a tariff is filed on behalf of a carrier participating therein 
under authority of its concurrence or power of attorney, such 
concurrence or power of attorney shall, if not previously filed with the 
Department, be transmitted at the same time such tariff is submitted for 
filing.



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

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

[[Page 70]]

or charges and/or increases the value of service so that the level of 
the fares or charges and the services provided will be substantially 
similar to the level of fares or charges and the services of a competing 
carrier or carriers.
    (B) New matter will be deemed to have been filed to meet competition 
only when it establishes or affects a fare or charge and a service which 
will be substantially similar to the fares or charges and the services 
of a competing carrier or carriers.
    (C) When new or changed matter is filed to meet competition over a 
portion of the filing air carrier's system and is simultaneously made 
applicable to the balance of the system, such matter, insofar as it 
applies over the balance of the system, will be deemed to be within the 
exception in this paragraph (c)(1)(iv) of this section only if such 
carrier submits an explanation as to the necessity of maintaining 
uniformity over its entire system with respect to such new or changed 
matter.
    (D) In any case where new or changed matter is filed to meet 
competition, the filing carrier or agent must supply, as part of the 
filing justification, the complete tariff references which will serve to 
identify the competing tariff matter which the tariff purports to meet. 
In such case the justification or attachment shall state whether the new 
or changed matter is identical to the competing tariff matter which it 
purports to meet or whether it approximates the competing tariff matter. 
If the new or changed matter is not identical, the transmittal letter or 
attachment shall contain a statement explaining, in reasonable detail, 
the basis for concluding that the tariff publication being filed is 
substantially similar to the competing tariff matter.
    (2) [Reserved]



   Subpart K_Availability of Tariff Publications for Public Inspection



Sec. 221.100  Public notice of tariff information.

    Carriers must make tariff information available to the general 
public, and in so doing must comply with either:
    (a) Sections 221.101, 221.102, 221.103, 221.104, 221.105, and 
221.106, or
    (b) Sections 221.105, 221.106 and 221.107 of this subpart.



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

    (a) Each carrier shall make available for public inspection at each 
of its stations, offices, or other locations at which tickets for 
passenger transportation are sold and which is in charge of a person 
employed exclusively by the carrier, or by it jointly with another 
person, all tariffs applicable to passenger traffic from or to the point 
where such station, office, or location is situated, including tariffs 
covering any terminal services, charges, or practices whatsoever, which 
apply to passenger traffic from or to such point.
    (b) A carrier will be deemed to have complied with the requirement 
that it ``post'' tariffs, if it maintains at each station, office, or 
location a file in complete form of all tariffs required to be posted; 
and in the case of tariffs involving passenger fares, rules, charges or 
practices, notice to the passenger as required in Sec. 221.105.
    (c) Tariffs shall be posted by each carrier party thereto no later 
than the filed date designated thereon except that in the case of 
carrier stations, offices or locations situated outside the United 
States, its territories and possessions, the time shall be not later 
than five days after the filed date, and except that a tariff which the 
Department has authorized to be filed on shorter notice shall be posted 
by the carrier on like notice as authorized for filing.



Sec. 221.102  Accessibility of tariffs to the public.

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



Sec. 221.103  Notice of tariff terms.

    Each carrier shall cause to be displayed continuously in a 
conspicuous

[[Page 71]]

public place at each station, office, or location at which tariffs are 
required to be posted, a notice printed in large type reading as 
follows:

                      Public Inspection of Tariffs

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



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

    (a)(1) In addition to the other requirements of this subpart, each 
air carrier and foreign air carrier which, to any extent, avails itself 
of the limitation on liability to passengers provided by the Warsaw 
Convention, shall, at the time of delivery of the ticket, furnish to 
each passenger whose transportation is governed by the Convention and 
whose place of departure or place of destination is in the United 
States, the following statement in writing:

     Advice to International Passengers on Limitations of Liability

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

    (2) Provided, however, That when the carrier elects to agree to a 
higher limit of liability to passengers than that provided in Article 
22(1) of the Warsaw Convention, such statement shall be modified to 
reflect the higher limit. The statement prescribed herein shall be 
printed in type at least as large as 10-point modern type and in ink 
contrasting with the stock on:
    (i) Each ticket;
    (ii) A piece of paper either placed in the ticket envelope with the 
ticket or attached to the ticket; or
    (iii) The ticket envelope.
    (b) Each air carrier and foreign air carrier which, to any extent, 
avails itself of the limitation on liability to passengers provided by 
the Warsaw Convention, shall also cause to be displayed continuously in 
a conspicuous public place at each desk, station, and position in the 
United States which is in the charge of a person employed exclusively by 
it or by it jointly with another person, or by any agent employed by 
such air carrier or foreign air carrier to sell tickets to passengers 
whose transportation may be governed by the Warsaw Convention and whose 
place of departure or destination may be in the United States, a sign 
which shall have printed thereon the statement prescribed in paragraph 
(a) of this section: Provided, however, That an air carrier, except an 
air taxi operator subject to part 298 of this subchapter, or foreign air 
carrier which provides a higher limitation of liability than that set 
forth in the Warsaw Convention and has signed a counterpart of the 
agreement among carriers providing for such higher limit, which 
agreement was approved by the Civil Aeronautics Board by Order E-23680, 
dated May 13, 1966 (31 FR 7302, May 19, 1966), may use the alternate 
form of notice set forth in the proviso to Sec. 221.106(a) of this 
chapter in full compliance with the posting requirements of this 
paragraph. And provided further, That an air taxi operator subject to 
part 298 of this subchapter, which provides a higher limitation of 
liability than that set forth in the Warsaw Convention and has signed a 
counterpart of the agreement among carriers providing for such higher 
limit, which agreement was approved by the Civil Aeronautics Board by 
Order E-

[[Page 72]]

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

      Advice to International Passengers on Limitation of Liability

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



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

    (a)(1) Each air carrier and foreign air carrier which, to any 
extent, avails itself of limitations on liability for loss of, damage 
to, or delay in delivery of baggage shall cause to be displayed 
continuously in a conspicuous public place at each desk, station, and 
position in the United States which is in the charge of a person 
employed exclusively by it or by it jointly with another person, or by 
any agent employed by such air carrier or foreign air carrier to sell 
tickets to persons or accept baggage for checking, a sign which shall 
have printed thereon the following statement:

                 Notice of Limited Liability for Baggage

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

    (2) Provided, however, That an air carrier or foreign air carrier 
which provides a higher limitation of liability for death or personal 
injury than that set forth in the Warsaw Convention and has signed a 
counterpart of the agreement approved by the Civil Aeronautics Board by 
Order E-23680, dated May 13, 1966 (31 FR 7302, May 19, 1966), may use 
the following notice in full compliance with the posting requirements of 
this paragraph and of Sec. 221.105(b):

            Advice to Passengers on Limitations of Liability

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

    (3) Provided, however, That carriers may include in the notice the 
parenthetical phrase ``($20.00 per kilo)'' after the phrase ``$9.07 per 
pound'' in referring to the baggage liability limitation for most 
international travel. Such statements shall be printed in bold-face type 
at least one-fourth of an inch high and shall be so located as to be 
clearly visible and clearly readable to the traveling public.
    (b)(1) Each air carrier and foreign air carrier which, to any 
extent, avails itself of limitations of liability for loss of, damage 
to, or delay in delivery of, baggage shall include on or with each 
ticket issued in the United States or in a foreign country by it or its 
authorized agent, the following notice printed in at least 10 point 
type:

                 Notice of Baggage Liability Limitations

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

    (2) Provided, however, That carriers may include in their ticket 
notice the parenthetical phrase ``($20.00 per kilo)'' after the phrase 
``$9.07 per pound'' in referring to the baggage liability limitation for 
most international travel.

[[Page 73]]

    (c) It shall be the responsibility of each carrier to insure that 
travel agents authorized to sell air transportation for such carrier 
comply with the notice provisions of paragraphs (a) and (b) of this 
section.
    (d) Any air carrier or foreign air carrier subject to the provisions 
of this section which wishes to use a notice of limited liability for 
baggage of its own wording, but containing the substance of the language 
prescribed in paragraphs (a) and (b) of this section may substitute a 
notice of its own wording upon approval by the Department.
    (e) The requirements as to time and method of delivery of the notice 
(including the size of type) specified in paragraphs (a) and (b) of this 
section and the requirement with respect to travel agents specified in 
paragraph (c) of this section may be waived by the Department upon 
application and showing by the carrier that special and unusual 
circumstances render the enforcement of the regulations impractical and 
unduly burdensome and that adequate alternative means of giving notice 
are employed.
    (f) Applications for relief under paragraphs (d) and (e) of this 
section shall be filed with the Department's Office of International 
Aviation not later than 15 days before the date on which such relief is 
requested to become effective.
    (g) Notwithstanding any other provisions of this section, no air 
taxi operator subject to part 298 of this subchapter shall be required 
to give the notices prescribed in this section, either in its capacity 
as an air carrier or in its capacity as an agent for an air carrier or 
foreign air carrier.



Sec. 221.107  Notice of contract terms.

    (a) Terms incorporated in the contract of carriage. (1) A ticket, or 
other written instrument that embodies the contract of carriage for 
foreign air transportation shall contain or be accompanied by notice to 
the passenger as required in paragraphs (b) and (d) of this section.
    (2) Each carrier shall make the full text of all terms that are 
incorporated in a contract of carriage readily available for public 
inspection at each airport or other ticket sales office of the carrier: 
Provided, That the medium, i.e., printed or electronic, in which the 
incorporated terms and conditions are made available to the consumer 
shall be at the discretion of the carrier.
    (3) Each carrier shall display continuously in a conspicuous public 
place at each airport or other ticket sales office of the carrier a 
notice printed in large type reading as follows:

                      Explanation of Contract Terms

    All passenger (and/or cargo as applicable) contract terms 
incorporated into the contract of carriage to which this company is a 
party are available in this office. These provisions may be inspected by 
any person upon request and for any reason. The employees of this office 
will lend assistance in securing information, and explaining any terms.
    In addition, a file of all tariffs of this company, with indexes 
thereof, from which incorporated contract terms may be obtained is 
maintained and kept available for public inspection at. (Here indicate 
the place or places where tariff files are maintained, including the 
street address and, where appropriate, the room number.)

    (4) Each carrier shall provide to the passenger a complete copy of 
the text of any/all terms and conditions applicable to the contract of 
carriage, free of charge, immediately, if feasible, or otherwise 
promptly by mail or other delivery service, upon request at any airport 
or other ticket sales office of the carrier. In addition, all other 
locations where the carrier's tickets may be issued shall have available 
at all times, free of charge, information sufficient to enable the 
passenger to request a copy of such term(s).
    (b) Notice of incorporated terms. Each carrier and ticket agent 
shall include on or with a ticket or other written instrument given to 
the passenger, that embodies the contract of carriage, a conspicuous 
notice that:
    (1) The contract of carriage may incorporate terms and conditions by 
reference; passengers may inspect the full text of each applicable 
incorporated term at any of the carrier's airport locations or other 
ticket sales offices of the carrier; and passengers, shippers and 
consignees have the right to receive, upon request at any airport or 
other ticket sales office of the carrier, a free copy of the full text 
of any/all such terms by mail or other delivery service;

[[Page 74]]

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



Sec. 221.108  Transmission of tariff filings to subscribers.

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



               Subpart L_Rejection of Tariff Publications



Sec. 221.110  Department's authority to reject.

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



Sec. 221.111  Notification of rejection.

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



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

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



   Subpart M_Special Tariff Permission To File on Less Than Statutory 
                                 Notice



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

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

[[Page 75]]

the statutory notice required by section 41505 of the statute.
    (b) Grounds for approval. The following facts and circumstances 
constitute some of the grounds for approving applications for Special 
Tariff Permission in the absence of other facts and circumstances 
warranting denial:
    (1) Clerical or typographical errors. Clerical or typographical 
errors in tariffs constitute grounds for approving applications for 
Special Tariff Permission to file on less than statutory notice the 
tariff changes necessary to correct such errors. Each application for 
Special Tariff Permission based on such grounds shall plainly specify 
the errors and contain a complete statement of all the attending facts 
and circumstances, and such application shall be presented to the 
Department with reasonable promptness after issuance of the defective 
tariff.
    (2) Rejection caused by clerical or typographical errors or 
unintelligibility. Rejection of a tariff caused by clerical or 
typographical errors constitute grounds for approving applications for 
Special Tariff Permission to file on less than statutory notice, 
effective not earlier than the original effective dates in the rejected 
tariff, all changes contained in the rejected tariff but with the errors 
corrected. Each application for the grant of Special Tariff Permission 
based on such grounds shall plainly specify the errors and contain a 
complete statement of all the attending facts and circumstances, and 
such application shall be filed with the Department within five days 
after receipt of the Department's notice of rejection.
    (3) Newly authorized transportation. The fact that the Department 
has newly authorized a carrier to perform foreign air transportation 
constitutes grounds for approving applications for Special Tariff 
Permission to file on less than statutory notice the fares, rates, and 
other tariff provisions covering such newly authorized transportation.
    (4) The fact that a passenger fare is within a statutory or 
Department-established zone of fare flexibility constitutes grounds for 
approving an application for Special Tariff Permission to file a tariff 
stating that fare and any rules affecting them exclusively, on less than 
statutory notice. The Department's policy on approving such applications 
is set forth in Sec. 399.35 of this chapter.
    (5) Lowered fares and charges. The prospective lowering of fares or 
charges to the traveling public constitutes grounds for approving an 
application for Special Tariff Permission to file on less than statutory 
notice a tariff stating the lowered fares or charges and any rules 
affecting them exclusively. However, the Department will not approve the 
application if the proposed tariff raises significant questions of 
lawfulness, as set forth in Sec. 399.35 of this chapter.
    (c) Filing notice required by formal order. When a formal order of 
the Department requires the filing of tariff matter on a stated number 
of days' notice, an application for Special Tariff Permission to file on 
less notice will not be approved. In any such instance a petition for 
modification of the order should be filed in the formal docket.



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

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

[[Page 76]]

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



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

    Each Special Tariff Permission to file fares, or other tariff 
provisions on less than statutory notice shall be used in its entirety 
as granted. If it is not desired to use the permission as granted, and 
lesser or more extensive or different permission is desired, a new 
application for Special Tariff Permission conforming with Sec. 221.121 
in all respects and referring to the previous permission shall be filed.



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

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



                 Subpart N_Waiver of Tariff Regulations



Sec. 221.130  Applications for waiver of tariff regulations.

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



Sec. 221.131  Form of application for waivers.

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



         Subpart O_Giving and Revoking Concurrences to Carriers



Sec. 221.140  Method of giving concurrence.

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

[[Page 77]]

it shall not be used as authority to file local fares or charges.
    (b) Number of copies. Each concurrence shall be prepared in 
triplicate. The original of each concurrence shall be filed with the 
Department, the duplicate thereof shall be given to the carrier in whose 
favor the concurrence is issued, and the third copy shall be retained by 
the carrier who issued the concurrence.
    (c) Conflicting authority to be avoided. Care should be taken to 
avoid giving authority to two or more carriers which, if used, would 
result in conflicting or duplicate tariff provisions.



Sec. 221.141  Method of revoking concurrence.

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



Sec. 221.142  Method of withdrawing portion of authority conferred by concurrence.

    If a carrier desires to issue a concurrence conferring less 
authority than a previous concurrence given to the same carrier, the new 
concurrence shall not direct the cancellation of such previous 
concurrence. In such circumstances, such previous concurrence shall be 
revoked by issuing and filing a Notice of Revocation of Concurrence in a 
form acceptable to the Office of International Aviation. Such revocation 
notice shall include reference to the new concurrence.



       Subpart P_Giving and Revoking Powers of Attorney to Agents



Sec. 221.150  Method of giving power of attorney.

    (a) Prescribed form of power of attorney. A power of attorney 
prepared in accordance with a form acceptable to the Office of 
International Aviation shall be used by a carrier to give authority to 
an agent and (in the case of the agent being an individual) such agent's 
alternate to issue and file with the Department tariffs which contain 
local or joint fares or charges, including provisions governing such 
fares or charges, applicable via and for account of such carrier. Agents 
may be only natural persons or corporations (other than incorporated 
associations of air carriers). The authority conferred in a power of 
attorney may not be delegated to any other person.
    (b) Designation of tariff issuing person by corporate agent. When a 
corporation has been appointed as agent it shall forward to the 
Department a certified excerpt of the minutes of the meeting of its 
Board of Directors designating by name and title the person responsible 
for issuing tariffs and filing them with the Department. Only one such 
person may be designated by a corporate agent, and the title of such 
designee shall not contain the word ``Agent''. When such a designee is 
replaced the Department shall be immediately notified in like manner of 
his successor. An officer or employee of an incorporated tariff-
publishing agent may not be authorized to act as tariff agent in his/her 
individual capacity. Every tariff issued

[[Page 78]]

by a corporate agent shall be issued in its name as agent.
    (c) Number of copies. Each power of attorney shall be prepared in 
triplicate. The original of each power of attorney shall be filed with 
the Department, the duplicate thereof shall be given to the agent in 
whose favor the power of attorney is issued, and the third copy shall be 
retained by the carrier who issued the power of attorney.
    (d) Conflicting authority prohibited. In giving powers of attorney, 
carriers shall not give authority to two or more agents which, if used, 
would result in conflicting or duplicate tariff provisions.



Sec. 221.151  Method of revoking power of attorney.

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



Sec. 221.152  Method of withdrawing portion of authority conferred by power of attorney.

    If a carrier desires to issue a power of attorney conferring less 
authority than a previous power of attorney issued in favor of the same 
agent, the new power of attorney shall not direct the cancellation of 
such previous power of attorney. In such circumstances, such previous 
power of attorney shall be revoked by issuing and filing a Notice of 
Revocation of Power of Attorney in a form acceptable to the Office of 
International Aviation. Such revocation notice shall include reference 
to the new power of attorney.



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



Sec. 221.160  Adoption notice.

    (a) When the name of a carrier is changed or when its operating 
control is transferred to another carrier (including another company 
which has not previously been a carrier), the carrier which will 
thereafter operate the properties shall immediately issue, file with the 
Department, and post for public inspection, an adoption notice in a form 
and containing such information as is approved by the Office of 
International Aviation. (The carrier under its former name or the 
carrier from whom the operating control is transferred shall be referred 
to in this subpart as the ``former carrier'', and the carrier under its 
new name or the carrier, company, or fiduciary to whom the operating 
control is transferred shall be referred to in this subpart as the 
``adopting carrier''.)
    (b) The adoption notice shall be prepared, filed, and posted as a 
tariff. The adoption notice shall be issued and filed by the adopting 
carrier and not by an agent.
    (c) Copies to be sent to agents and other carriers. At the same time 
that the adoption notice is transmitted to the

[[Page 79]]

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



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

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



Sec. 221.162  Receiver shall file adoption notices.

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



Sec. 221.163  Agents' and other carriers' tariffs shall reflect adoption.

    If the former carrier is shown as a participating carrier under 
concurrence in tariffs issued by other carriers or is shown as a 
participating carrier under power of attorney in tariffs issued by 
agents, the issuing carriers and agents of such tariffs shall, upon 
receipt of the adoption notice, promptly file on statutory notice the 
following amendments to their respective tariffs:
    (a) Cancel the name of the former carrier from the list of 
participating carriers.
    (b) Add the adopting carrier (in alphabetical order) to the list of 
participating carriers. If the adopting carrier already participates in 
such tariff, reference to the substitution notice shall be added in 
connection with such carrier's name in the list of participating 
carriers.



Sec. 221.164  Concurrences or powers of attorney to be reissued.

    (a) Adopting carrier shall reissue adopted concurrences and powers 
of attorney. Within a period of 120 days after the date on which the 
change in name or transfer of operating control occurs, the adopting 
carrier shall reissue all effective powers of attorney and concurrences 
of the former carrier by issuing and filing new powers of attorney and 
concurrences, in the adopting carrier's name, which shall direct the 
cancellation of the respective powers of attorney and concurrences of 
the former carrier. The adopting carrier shall consecutively number its 
powers of attorney and concurrences in its own series of power of 
attorney numbers and concurrence numbers (commencing with No. 1 in each 
series if it had not previously filed any such instruments with the 
Department), except that a receiver or other fiduciary shall 
consecutively number its powers of attorney or concurrences in the 
series of the former carrier. The cancellation reference shall show that 
the canceled power of attorney or concurrence was issued by the former 
carrier.
    (b) If such new powers of attorney or concurrences confer less 
authority than the powers of attorney or concurrences which they are to 
supersede, the new issues shall not direct the cancellation of the 
former issues; in such instances, the provisions of Sec. Sec. 221.142 
and 221.152 shall be observed. Concurrences and powers of attorney which 
will not be replaced by new issues shall be revoked in the form and 
manner and upon the notice required by Sec. Sec. 221.141 and 221.151.
    (c) Reissue of other carriers' concurrences issued in favor of 
former carrier. Each carrier which has given a concurrence to a carrier 
whose tariffs are subsequently adopted shall reissue the concurrence in 
favor of the adopting carrier. If the carrier which issued the 
concurrence to the former carrier desires to revoke it or desires to 
replace it with a concurrence conferring less authority, the provisions 
of Sec. Sec. 221.141 and 221.142 shall be observed.



Sec. 221.165  Cessation of operations without successor.

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

[[Page 80]]

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



                 Subpart R_Electronically Filed Tariffs



Sec. 221.170  Applicability of the subpart.

    (a) Every air carrier and foreign air carrier shall file its 
international passenger fares tariffs consistent with the provisions of 
this subpart, and part 221 generally. Additionally, any air carrier and 
any foreign air carrier may file its international passenger rules 
tariffs electronically in machine-readable form as an alternative to the 
filing of printed paper tariffs as provided for elsewhere in part 221. 
This subpart applies to all carriers and tariff publishing agents and 
may be used by either if the carrier or agent complies with the 
provisions of subpart R. Any carrier or agent that files electronically 
under this subpart must transmit to the Department the remainder of the 
tariff in a form consistent with part 221, Subparts A through Q, on the 
same day that the electronic tariff would be deemed received under Sec. 
221.190(b).
    (b) To the extent that subpart R is inconsistent with the remainder 
of part 221, subpart R shall govern the filing of electronic tariffs. In 
all other respects, part 221 remains in full force and effect.



Sec. 221.180  Requirements for electronic filing of tariffs.

    (a) No carrier or filing agent shall file an electronic tariff 
unless, prior to filing, it has signed a maintenance agreement or 
agreements, furnished by the Department of Transportation, for the 
maintenance and security of the on-line tariff database.
    (b) No carrier or agent shall file an electronic tariff unless, 
prior to filing, it has submitted to the Department's Office of 
International Aviation, Pricing and Multilateral Affairs Division, and 
received approval of, an application containing the following 
commitments:
    (1) The filer shall file tariffs electronically only in such format 
as shall be agreed to by the filer and the Department. (The filer shall 
include with its application a proposed format of tariff. The filer 
shall also submit to the Department all information necessary for the 
Department to determine that the proposed format will accommodate the 
data elements set forth in Sec. 221.202.)
    (2) The filer shall provide, maintain and install in the Public 
Reference Room at the Department (as may be required from time to time) 
one or more CRT devices and printers connected to its on-line tariff 
database. The filer shall be responsible for the transportation, 
installation, and maintenance of this equipment and shall agree to 
indemnify and hold harmless the Department and the U.S. Government from 
any claims or liabilities resulting from defects in the equipment, its 
installation or maintenance.
    (3) The filer shall provide public access to its on-line tariff 
database, at Departmental headquarters, during normal business hours.
    (4) The access required at Departmental headquarters by this subpart 
shall be provided at no cost to the public or the Department.
    (5) The filer shall provide the Department access to its on-line 
tariff database 24 hours a day, 7 days a week, except, that the filer 
may bring its computer down between 6:00 a.m. and 6:00 p.m. Eastern 
Standard Time or Eastern Daylight Saving Time, as the case may be, on 
Sundays, when necessary, for maintenance or for operational reasons.
    (6) The filer shall ensure that the Department shall have the sole 
ability to approve or disapprove electronically any tariff filed with 
the Department and the ability to note, record and retain electronically 
the reasons for approval or disapproval. The carrier or agent shall not 
make any changes in data or delete data after it has been transmitted 
electronically, regardless of whether it is approved, disapproved, or 
withdrawn. The filer shall be required to make data fields available to 
the Department in any record which is part of the on-line tariff 
database.
    (7) The filer shall maintain all fares and rules filed with the 
Department and all Departmental approvals, disapprovals and other 
actions, as well as all Departmental notations concerning such 
approvals, disapprovals or other actions, in the on-line tariff database

[[Page 81]]

for a period of two (2) years after the fare or rule becomes inactive. 
After this period of time, the carrier or agent shall provide the 
Department, free of charge, with a copy of the inactive data on a 
machine-readable tape or other mutually acceptable electronic medium.
    (8) The filer shall ensure that its on-line tariff database is 
secure against destruction or alteration (except as authorized by the 
Department), and against tampering.
    (9) Should the filer terminate its business or cease filing tariffs, 
it shall provide to the Department on a machine-readable tape or any 
other mutually acceptable electronic medium, contemporaneously with the 
cessation of such business, a complete copy of its on-line tariff 
database.
    (10) The filer shall furnish to the Department, on a daily basis, on 
a machine-readable tape or any other mutually acceptable electronic 
medium, all transactions made to its on-line tariff database.
    (11) The filer shall afford any authorized Departmental official 
full, free, and uninhibited access to its facilities, databases, 
documentation, records, and application programs, including support 
functions, environmental security, and accounting data, for the purpose 
of ensuring continued effectiveness of safeguards against threats and 
hazards to the security or integrity of its electronic tariffs, as 
defined in this subpart.
    (12) The filer must provide a field in the Government Filing File 
for the signature of the approving U.S. Government Official through the 
use of a Personal Identification Number (PIN).
    (13) The filer shall provide a leased dedicated data conditioned 
circuit with sufficient capacity (not less than 28.8K baud rate) to 
handle electronic data transmissions to the Department. Further, the 
filer must provide for a secondary or a redundancy circuit in the event 
of the failure of the dedicated circuit. The secondary or redundancy 
circuit must be equal to or greater than 14.4K baud rate. In the event 
of a failure of the primary circuit the filer must notify the Chief of 
the Pricing and Multilateral Affairs Division of the Department's Office 
of International Aviation, as soon as possible, after the failure of the 
primary circuit, but not later than two hours after failure, and must 
provide the name of the contact person at the telephone company who has 
the responsibility for dealing with the problem.
    (c) Each time a filer's on-line tariff database is accessed by any 
user during the sign-on function the following statement shall appear:

    The information contained in this system is for informational 
purposes only, and is a representation of tariff data that has been 
formally submitted to the Department of Transportation in accordance 
with applicable law or a bilateral treaty to which the U.S. Government 
is a party.



Sec. 221.190  Time for filing and computation of time periods.

    (a) A tariff, or revision thereto, or a special tariff permission 
application may be electronically filed with the Department immediately 
upon compliance with Sec. 221.180, and anytime thereafter, subject to 
Sec. 221.400. The actual date and time of filing shall be noted with 
each filing.
    (b) For the purpose of determining the date that a tariff, or 
revision thereto, filed pursuant to this subpart, shall be deemed 
received by the Department:
    (1) For all electronic tariffs, or revisions thereto, filed before 
5:30 p.m. local time in Washington, DC, on Federal business days, such 
date shall be the actual date of filing.
    (2) For all electronic tariffs, or revisions thereto, filed after 
5:30 p.m. local time in Washington, DC, on Federal business days, and 
for all electronic tariffs, or revisions thereto, filed on days that are 
not Federal business days, such date shall be the next Federal business 
day.



Sec. 221.195  Requirement for filing printed material.

    (a) Any tariff, or revision thereto, filed in paper format which 
accompanies, governs, or otherwise affects, a tariff filed 
electronically, must be received by the Department on the same date that 
a tariff or revision thereto, is filed electronically with the 
Department under Sec. 221.190(b). Further, such paper tariff, or 
revision thereto, shall

[[Page 82]]

be filed in accordance with the requirements of subparts A through Q of 
part 221. No tariff or revision thereto, filed electronically under this 
subpart, shall contain an effective date which is at variance with the 
effective date of the supporting paper tariff, except as authorized by 
the Department.
    (b) Any printed justifications, or other information accompanying a 
tariff, or revision thereto, filed electronically under this subpart, 
must be received by the Department on the same date as any tariff, or 
revision thereto, filed electronically.
    (c) If a filer submits a filing which fails to comply with paragraph 
(a) of this section, or if the filer fails to submit the information in 
conformity with paragraph (b) of this section, the filing will be 
subject to rejection, denial, or disapproval, as applicable.



Sec. 221.200  Content and explanation of abbreviations, reference marks and symbols.

    (a) Content. The format to be used for any electronic tariff must be 
that agreed to in advance as provided for in Sec. 221.180, and must 
include those data elements set forth in Sec. 221.202. Those portions 
that are filed in paper form shall comply in all respects with part 221, 
subparts A through Q.
    (b) Explanation of abbreviations, reference marks and symbols. 
Abbreviations, reference marks and symbols which are used in the tariff 
shall be explained in each tariff.
    (1) The following symbols shall be used:

R--Reduction
I--Increase
N--New Matter
X--Canceled Matter
C--Change in Footnotes, Routings, Rules or Zones
E--Denotes change in Effective Date only.

    (2) Other symbols may be used only when an explanation is provided 
in each tariff and such symbols are consistent throughout all the 
electronically filed tariffs from that time forward.



Sec. 221.201  Statement of filing with foreign governments to be shown in air carrier's tariff filings.

    (a) Every electronic tariff filed by or on behalf of an air carrier 
that contains fares which, by international convention or agreement 
entered into between any other country and the United States, are 
required to be filed with that country, shall include the following 
statement:

    The rates, fares, charges, classifications, rules, regulations, 
practices, and services provided herein have been filed in each country 
in which filing is required by treaty, convention, or agreement entered 
into between that country and the United States, in accordance with the 
provisions of the applicable treaty, convention, or agreement.

    (b) The statement referenced in Sec. 221.201(a) may be included 
with each filing advice by the inclusion of a symbol which is properly 
explained.
    (c) The required symbol may be omitted from an electronic tariff or 
portion thereof if the tariff publication that has been filed with any 
other country pursuant to its tariff regulations bears a tariff filing 
designation of that country in addition to the D.O.T. number appearing 
on the tariff.



Sec. 221.202  The filing of tariffs and amendments to tariffs.

    All electronic tariffs and amendments filed under this subpart, 
including those for which authority is sought to effect changes on less 
than bilateral/statutory notice under Sec. 221.212, shall contain the 
following data elements:
    (a) A Filing Advice Status File--which shall include:
    (1) Filing date and time;
    (2) Filing advice number;
    (3) Reference to carrier;
    (4) Reference to geographic area;
    (5) Effective date of amendment or tariff;
    (6) A place for government action to be recorded; and
    (7) Reference to the Special Tariff Permission when applicable.
    (b) A Government Filing File--which shall include:
    (1) Filing advice number;
    (2) Carrier reference;
    (3) Filing date and time;
    (4) Proposed effective date;

[[Page 83]]

    (5) Justification text; reference to geographic area and affected 
tariff number;
    (6) Reference to the Special Tariff Permission when applicable;
    (7) Government control data, including places for:
    (i) Name of the government analyst, except that this data shall not 
be made public, notwithstanding any other provision in this or any other 
subpart;
    (ii) Action taken and reasons therefor.
    (iii) Remarks, except that internal Departmental data shall not be 
made public, notwithstanding any other provision in this or any other 
subpart;
    (iv) Date action is taken; and
    (v) Personal Identification Number; and
    (8) Fares tariff, or proposed changes to the fares tariffs, 
including:
    (i) Market;
    (ii) Fare code;
    (iii) One-way/roundtrip (O/R);
    (iv) Fare Amount;
    (v) Currency;
    (vi) Footnote (FN);
    (vii) Rule Number, provided that, if the rule number is in a tariff, 
reference shall be made to that tariff containing the rule;
    (viii) Routing (RG) Number(s), provided that the abbreviation MPM 
(Maximum Permissible Routing) shall be considered a number for the 
purpose of this file;
    (ix) Effective date and discontinue date if the record has been 
superseded;
    (x) Percent of change from previous fares; and
    (xi) Expiration date.
    (9) Rules tariff, or proposed changes to the rules tariffs.
    (i) Rules tariffs shall include:
    (A) Title: General description of fare rule type and geographic area 
under the rule;
    (B) Application: Specific description of fare class, geographic 
area, type of transportation (one way, round-trip, etc.);
    (C) Period of Validity: Specific description of permissible travel 
dates and any restrictions on when travel is not permitted;
    (D) Reservations/ticketing: Specific description of reservation and 
ticketing provisions, including any advance reservation/ticketing 
requirements, provisions for payment (including prepaid tickets), and 
charges for any changes;
    (E) Capacity Control: Specific description of any limitation on the 
number of passengers, available seats, or tickets;
    (F) Combinations: Specific description of permitted/restricted fare 
combinations;
    (G) Length of Stay: Specific description of minimum/maximum number 
of days before the passenger may/must begin return travel;
    (H) Stopovers: Specific description of permissible conditions, 
restrictions, or charges on stopovers;
    (I) Routing: Specific description of routing provisions, including 
transfer provisions, whether on-line or inter-line;
    (J) Discounts: Specific description of any limitations, special 
conditions, and discounts on status fares, e.g. children or infants, 
senior citizens, tour conductors, or travel agents, and any other 
discounts;
    (K) Cancellation and Refunds: Specific description of any special 
conditions, charges, or credits due for cancellation or changes to 
reservations, or for request for refund of purchased tickets;
    (L) Group Requirements: Specific description of group size, travel 
conditions, group eligibility, and documentation;
    (M) Tour Requirements: Specific description of tour requirements, 
including minimum price, and any stay or accommodation provisions;
    (N) Sales Restrictions: Specific description of any restrictions on 
the sale of tickets;
    (O) Rerouting: Specific description of rerouting provisions, whether 
on-line or inter-line, including any applicable charges; and
    (P) Miscellaneous provisions: Any other applicable conditions.
    (ii) Rules tariffs shall not contain the phrase ``intentionally left 
blank''.
    (10) Any material accepted by the Department for informational 
purposes only shall be clearly identified as ``for informational 
purposes only, not part of official tariff'', in a manner acceptable to 
the Department.

[[Page 84]]

    (c) A Historical File--which shall include:
    (1) Market;
    (2) Fare code;
    (3) One-way/roundtrip (O/R);
    (4) Fare amount;
    (5) Currency;
    (6) Footnote (FN);
    (7) Rule Number, provided that, if the rule number is in a tariff 
other than the fare tariff, reference shall be made to that tariff 
containing the rule;
    (8) Rule text applicable to each fare at the time that the fare was 
in effect.
    (9) Routing (RG) Number(s), provided that the abbreviation MPM 
(Maximum Permissible Routing) shall be considered a number for the 
purpose of this file;
    (10) Effective Date;
    (11) Discontinue Date;
    (12) Government Action;
    (13) Carrier;
    (14) All inactive fares (two years);
    (15) Any other fare data which is essential; and
    (16) Any necessary cross reference to the Government Filing File for 
research or other purposes.



Sec. 221.203  Unique rule numbers required.

    (a) Each ``bundled'' and ``unbundled'' normal economy fare 
applicable to foreign air transportation shall bear a unique rule 
number.
    (b) The unique rule numbers for the fares specified in this section 
shall be set by mutual agreement between the filer and the Department 
prior to the implementation of any electronic filing system.



Sec. 221.204  Adoption of provisions of one carrier by another carrier.

    When one carrier adopts the tariffs of another carrier, the 
effective and prospective fares of the adopted carrier shall be changed 
to reflect the name of the adopting carrier and the effective date of 
the adoption. Further, each adopted fare shall bear a notation which 
shall reflect the name of the adopted carrier and the effective date of 
the adoption, provided that any subsequent revision of an adopted fare 
may omit the notation.



Sec. 221.205  Justification and explanation for certain fares.

    Any carrier or its agent must provide, as to any new or increased 
bundled or unbundled (whichever is lower) on-demand economy fare in a 
direct-service market, a comparison between, on the one hand, that 
proposed fare and, on the other hand, the ceiling fare allowed in that 
market based on the SFFL.



Sec. 221.206  Statement of fares.

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



Sec. 221.210  Suspension of tariffs.

    (a) A fare, charge, rule or other tariff provision that is suspended 
by the Department pursuant to section 41509 of the statute shall be 
noted by the Department in the Government Filing File and the Historical 
File.
    (b) When the Department vacates a tariff suspension, in full or in 
part, and after notification of the carrier by the Department, such 
event shall be noted by the carrier in the Government Filing File and 
the Historical File.
    (c) When a tariff suspension is vacated or when the tariff becomes 
effective upon termination of the suspension period, the carrier or its 
agent shall refile the tariff showing the effective date.



Sec. 221.211  Cancellation of suspended matter.

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



Sec. 221.212  Special tariff permission.

    (a) When a filer submits an electronic tariff or an amendment to an 
electronic tariff for which authority is sought to effect changes on 
less than bilateral/statutory notice, and no related tariff material is 
involved, the submission shall bear a sequential filing advice number. 
The submission shall appear in the Government Filing File and the Filing 
Advice Status File, and shall be referenced in such a manner to clearly 
indicate that such

[[Page 85]]

changes are sought to be made on less than bilateral/statutory notice.
    (b) When a filer submits an electronic tariff or an amendment to the 
electronic tariff for which authority is sought to effect changes on 
less than bilateral/statutory notice, and it contains related paper 
under Sec. 221.195, the paper submission must bear the same filing 
advice number as that used for the electronic submission. Such paper 
submission shall be in the form of a revised tariff page rather than as 
a separate request for Special Tariff Permission. All material being 
submitted on a paper tariff page as part of an electronic submission 
will clearly indicate the portion(s) of such tariff page that is being 
filed pursuant to, and in conjunction with, the electronic submission on 
less than bilateral/statutory notice.
    (c) Departmental action on the Special Tariff Permission request 
shall be noted by the Department in the Government Filing File and the 
Filing Advice Status File.
    (d) When the paper portion of a Special Tariff Permission that has 
been filed with the Department pursuant to paragraph (b) of this section 
is disapproved or other action is taken by the Department, such 
disapproval or other action will be reflected on the next consecutive 
revision of the affected tariff page(s) in the following manner:
    (1) Example of disapproval statement:

The portion(s) of ---- Revised Page ---- filed under EFA No. ---- was/
were disapproved by DOT.

    (2) Example of other action:

The portion(s) ---- Revised Page ---- filed under EFA No. ---- was/were 
required to be amended by DOT.

    (e) When the Department disapproves in whole or in part or otherwise 
takes an action against any submission filed under this part, the filer 
must take corrective action within two business days following the 
disapproval or notice of other action.
    (f) All submissions under this section shall comply with the 
requirements of Sec. 221.202.



Sec. 221.300  Discontinuation of electronic tariff system.

    In the event that the electronic tariff system is discontinued, or 
the source of the data is changed, or a filer discontinues its business, 
all electronic data records prior to such date shall be provided 
immediately to the Department, free of charge, on a machine-readable 
tape or other mutually acceptable electronic medium.



Sec. 221.400  Filing of paper tariffs required.

    (a) After approval of any application filed under Sec. 221.180 of 
this subpart to allow a filer to file tariffs electronically, the filer 
in addition to filing electronically must continue to file printed 
tariffs as required by subparts A through Q of part 221 for a period of 
90 days, or until such time as the Department shall deem such filing no 
longer to be necessary: Provided that during the period specified by 
this section the filed printed tariff shall continue to be the official 
tariff.
    (b) Upon notification to the filer that it may commence to file its 
tariffs solely in an electronic mode, concurrently with the 
implementation of filing electronically the filer shall:
    (1) Furnish the Department with a copy of all the existing effective 
and prospective records on a machine-readable tape or other mutually 
acceptable electronic medium accompanied by an affidavit attesting to 
the accuracy of such records; and
    (2) Simultaneously cancel such records from the paper tariff in the 
manner prescribed by subparts A through Q of part 221.



Sec. 221.500  Transmission of electronic tariffs to subscribers.

    (a) Each filer that files an electronic tariff under this subpart 
shall make available to any person so requesting, a subscription service 
meeting the terms of paragraph (b) of this section.
    (b) Under the required subscription service, remote access shall be 
allowed to any subscriber to the on-line tariff database, including 
access to the justification required by Sec. 221.205. The subscription 
service shall not preclude the offering of additional services by the 
filer or its agent.

[[Page 86]]

    (c) The filer at its option may establish a charge for providing the 
required subscription service to subscribers: Provided that the charge 
may not exceed a reasonable estimate of the added cost of providing the 
service.
    (d) Each filer shall provide to any person upon request, a copy of 
the machine-readable data (raw tariff data) of all daily transactions 
made to its on-line tariff database. The terms and prices for such 
value-added service may be set by the filer: Provided that such terms 
and prices shall be non-discriminatory, i.e., that they shall be 
substantially equivalent for all similarly-situated persons.



Sec. 221.550  Copies of tariffs made from filer's printer(s) located in Department's public reference room.

    Copies of information contained in a filer's on-line tariff database 
may be obtained by any user at Departmental Headquarters from the 
printer or printers placed in Tariff Public Reference Room by the filer. 
The filer may assess a fee for copying, provided it is reasonable and 
that no administrative burden is placed on the Department to require the 
collection of the fee or to provide any service in connection therewith.



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

    (a) When an electronically filed record which has been submitted to 
the Department under this subpart, is disapproved (rejected), or a 
special tariff permission is approved or denied, under authority 
assigned by the Department of Transportation's Regulations, 14 CFR 
385.13, such actions shall be understood to include the following 
provisions:
    (1) Applicable to a record or records which is/are disapproved 
(rejected). The record(s) disapproved (rejected) is/are void, without 
force or effect, and must not be used.
    (2) Applicable to a record or records which is/are disapproved 
(rejected), and to special tariff permissions which are approved or 
denied. This action is taken under authority assigned by the Department 
of Transportation in its Organization Regulations, 14 CFR 385.13. 
Persons entitled to petition for review of this action pursuant to the 
Department's Regulations, 14 CFR 385.50, may file such petitions within 
seven days after the date of this action. This action shall become 
effective immediately, and the filing of a petition for review shall not 
preclude its effectiveness.
    (b) [Reserved]



PART 222_INTERMODAL CARGO SERVICES BY FOREIGN AIR CARRIERS--Table of Contents




Sec.
222.1 Applicability.
222.2 Scope of permissible intermodal cargo services.
222.3 Application for Statement of Authorization.
222.4 Procedure on receipt of application for Statement of 
          Authorization.
222.5 Cancellation or conditioning of a Statement of Authorization.

Appendix A to Part 222--CAB Form 222

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

    Source: ER-1228, 46 FR 32556, June 24, 1981, unless otherwise noted.



Sec. 222.1  Applicability.

    This part applies to all air transportation of property that 
includes both air movement by a direct foreign air carrier and surface 
transportation to or from any point within the United States (hereafter 
referred to as ``intermodal cargo services'').



Sec. 222.2  Scope of permissible intermodal cargo services.

    (a) Under its foreign air carrier permit, a direct foreign air 
carrier may provide or control the surface portion of intermodal cargo 
services within a zone extending 35 miles from the boundary of the 
airport or city it is authorized to serve. A direct foreign air carrier 
shall not provide or control the surface portion of intermodal cargo 
services outside of this 35-mile zone unless authorized to do so by the 
Board in accordance with Sec. Sec. 222.3, 222.4 and 222.5.
    (b) A direct foreign air carrier shall be considered to control the 
surface portion of intermodal cargo services if it has or publicly 
represents that it has any responsibility for or control over

[[Page 87]]

the movement of, or has any ownership, controlling or exclusive dealing 
relationship with, the carrier actually providing the surface 
transportation.
    (c) Except as provided in paragraphs (a) and (b) of this section 
with respect to control by a direct foreign air carrier, any U.S. or 
foreign indirect air carrier, surface carrier or surface freight 
forwarder may provide the surface portion of intermodal cargo services 
without limitation as to geographic area within the United States.
    (d) The Board may withdraw the authority of an indirect foreign air 
carrier to provide the surface portion of intermodal cargo services, or 
the authority of a direct foreign air carrier to offer intermodal cargo 
services pursuant to joint fares with other carriers providing the 
surface transportation, at any time, with or without hearing, if the 
Board finds it in the public interest.



Sec. 222.3  Application for Statement of Authorization.

    (a) Application for a Statement of Authorization shall be filed with 
the Board's Regulatory Affairs Division, Bureau of International 
Aviation, in duplicate, on CAB Form 222 (obtainable from the Civil 
Aeronautics Board, Publications Services Division, Washington, D.C. 
20428), attached as Appendix A. In most cases the Board will act upon 
applications for Statements of Authorization within 60 days.
    (b) Persons objecting to an application for a Statement of 
Authorization shall file their objections with the Regulatory Affairs 
Division, Bureau of International Aviation, within 28 days of the filing 
date of the application. The Board will list the names and nationalities 
of all persons applying for Statements of Authorization in its Weekly 
Summary of Filings.
    (c) An application shall include a copy of any bilateral agreement, 
memorandum of consultations, or diplomatic note or letter, in support of 
the authority requested. Documents that appear in official U.S. 
publications may be incorporated by reference.

(Approved by the Office of Management and Budget under control number 
3024-0045)

[ER-1228, 46 FR 32556, June 24, 1981, as amended by ER-1348, 48 FR 
31635, July 11, 1983]



Sec. 222.4  Procedure on receipt of application for Statement of Authorization.

    (a) After review of an application form filed under Sec. 222.3, the 
Board will take one or more of the following actions:
    (1) Indicate by stamp on CAB Form 222 the effective date of the 
Statement of Authorization, and return to the carrier the duplicate copy 
of Form 222 as evidence of approval under this part;
    (2) Request additional information from the applicant;
    (3) Set the application for notice and hearing procedures;
    (4) Disapprove the application or approve it subject to such terms, 
conditions, or limitations as may be required by the public interest; or
    (5) Reject the application on the grounds that there is no agreement 
by the United States authorizing the proposed services.
    (b) An order disapproving an application or subjecting it to 
conditions or limitations shall be transmitted to the President for stay 
or disapproval. If the President does not stay or disapprove the Board's 
order, it shall become effective on the 31st day after transmittal to 
the President, or within any longer time period established in the 
order.



Sec. 222.5  Cancellation or conditioning of a Statement of Authorization.

    A Statement of Authorization may be canceled or made subject to 
additional terms, conditions, or limitations, at any time, with or 
without hearing, if the Board finds that it is in the public interest to 
do so. An order canceling or conditioning a Statement of Authorization 
shall be submitted to the President for stay or disapproval and shall 
become effective on the 31st day after transmittal or within any longer 
time period established by the Board.

[[Page 88]]



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

[GRAPHIC] [TIFF OMITTED] TC30SE91.005


[[Page 89]]


[GRAPHIC] [TIFF OMITTED] TC30SE91.006


[[Page 90]]





PART 223_FREE AND REDUCED-RATE TRANSPORTATION--Table of Contents




                      Subpart A_General Provisions

Sec.
223.1 Definitions.
223.2 Exemption from section 401 of the Act.
223.3 Mandatory free transportation.
223.4 Transferability of passes.
223.5 Responsibility of agencies.
223.6 Carrier's rules.

                        Subpart B_Domestic Travel

223.11 Free and reduced-rate transportation permitted.

                     Subpart C_International Travel

223.21 Free and reduced-rate transportation authorized by statute or 
          regulation.
223.22 Other persons to whom free and reduced-rate transportation may be 
          furnished.
223.23 Applications for authority to carry other persons.
223.24 Transportation of empty mail bags.
223.25 List of affiliates.

    Authority: Secs. 204, 403, 404, 405(j), 407, 416, Pub. L. 85-726, as 
amended, 72 Stat. 743, 758, 760, 766, 771, 49 U.S.C. 1325, 1373, 1374, 
1375, 1377, 1386, sec. 2 of the Postal Reorganization Act, 84 Stat. 767, 
39 U.S.C. 5007.

    Source: ER-1371, 48 FR 57118, Dec. 28, 1983, unless otherwise noted.



                      Subpart A_General Provisions



Sec. 223.1  Definitions.

    As used in this part, unless the context otherwise requires:
    An affiliate of a carrier means a person:
    (a) Who controls that carrier, or is controlled by that carrier or 
by another person who controls or is controlled by that carrier; and
    (b) Whose principal business in purpose or in fact is:
    (1) The holding of stock in one or more carriers;
    (2) Transportation by air or the sale of tickets therefor;
    (3) The operation of one or more airports, one or more of which are 
used by that carrier or by another carrier who controls or is controlled 
by that carrier or that is under common control with that carrier by 
another person; or
    (4) Activities related to the transportation by air conducted by 
that carrier or by another carrier that controls or is controlled by 
that carrier or which is under common control with that carrier by 
another person.
    Air carrier means the holder of a certificate of public convenience 
and necessity issued by the Board under section 401 of the Act 
authorizing the carriage of persons.
    Attendant means any person required by a handicapped person in order 
to travel, whether or not that person's services are required while the 
handicapped passenger is in an aircraft.
    Carrier means:
    (a) An air carrier;
    (b) An all-cargo air carrier operating under section 401 or section 
418 of the Act;
    (c) A foreign air carrier;
    (d) An intrastate carrier;
    (e) An air taxi (including a commuter air carrier) operating under 
parts 294 or 298 of this chapter; and
    (f) Any person operating as a common carrier by air, or in the 
carriage of mail by air, or conducting transportation by air, in a 
foreign country.
    Control, as used in this section, means the beneficial ownership of 
more than 40 percent of outstanding capital stock unless, ownership of 
more than 40 percent of outstanding capital stock unless, in a specific 
case, the Board determines under section 408 of the Act that control 
does not exist. Control may be direct or by or through one or more 
intermediate subsidiaries likewise controlled or controlling through 
beneficial ownership of more than 40 percent of outstanding voting 
capital stock.
    Delivery flight means a flight from a point in the United States 
where a carrier has taken delivery of a newly manufactured aircraft to 
any point or points on its route system.
    Foreign air carrier means the holder of a permit issued by the Board 
under section 402 of the Act authorizing the carriage of persons.
    Free transportation means the carriage by an air carrier or foreign 
air carrier of any person or property (other than property owned by that 
carrier) in air transportation without compensation therefor.
    Handicapped passenger means any person who has a physical or mental

[[Page 91]]

impairment (other than drug addiction or alcoholism), that substantially 
limits one or more major life activities.
    Inaugural flight means a flight on an aircraft type being introduced 
by a carrier for the first time on a route, even if that aircraft type 
has been used by that carrier on other routes or on that route by other 
carriers.
    Pass means a written authorization, other than actual ticket stock, 
issued by a carrier for free or reduced-rate transportation of persons 
or property.
    Reduced-rate transportation means the carriage by an air carrier or 
foreign air carrier of any person or property (other than property owned 
by such carrier) in air transportation for a compensation less than that 
specified in the tariffs of that carrier on file with the Board and 
otherwise applicable to such carriage.
    Retired means:
    (a) With respect to carrier directors, officers, and employees, 
persons receiving retirement benefits from any carrier;
    (b) With respect to the general public, persons not regularly 
working at a full-time paying job, and not intending to do so in the 
future.



Sec. 223.2  Exemption from section 401 of the Act.

    (a) Any all-cargo carrier is exempted from section 401 of the Act to 
the extent necessary to carry, for purposes of in-flight observation, 
technical representatives of companies that have been engaged in the 
manufacture, development, or testing of aircraft or aircraft equipment.
    (b) Every carrier providing transportation under this section shall 
also comply with the applicable regulations of the Federal Aviation 
Administration such as regulations pertaining to admission of persons to 
the aircraft flight deck.



Sec. 223.3  Mandatory free transportation.

    Every air carrier shall carry, without charge, on any aircraft that 
it operates, the following persons:
    (a) Security guards who have been assigned to the duty of guarding 
such aircraft against unlawful seizure, sabotage or other unlawful 
interference, upon the exhibition of such credentials as may be 
prescribed by the Administrator of the Federal Aviation Administration;
    (b) Safety inspectors of the National Transportation Safety Board or 
of the Federal Aviation Administration who have been assigned to the 
duty of inspecting during flight such aircraft or its equipment, route 
facilities, operational procedures, or airman competency upon the 
exhibition of credentials or a certificate from the agency involved in 
authorizing such transportation; and
    (c) Postal employees on duty in charge of the mails or traveling to 
or from such duty, upon the exhibition of the credentials issued by the 
Postmaster General.



Sec. 223.4  Transferability of passes.

    Any pass authorizing free or reduced-rate transportation issued by a 
carrier may be made transferable to the extent specified by the granting 
carrier.



Sec. 223.5  Responsibility of agencies.

    The Federal Aviation Administration, National Transportation Safety 
Board, National Weather Service, and the Postal Service shall be 
responsible for the following:
    (a) The issuance of any credentials or certificates to their 
personnel eligible for free or reduced-rate transportation under this 
part; and
    (b) The promulgation of any internal rules that are necessary to 
obtain compliance by such personnel with this part.



Sec. 223.6  Carrier's rules.

    (a) Each air carrier and foreign air carrier shall maintain at its 
principal office either a copy or all instructions to its employees and 
of all company rules governing its practice in connection with the 
issuance and interchange of free and reduced-rate transportation passes 
or a statement describing those practices.
    (b) The rules or statement required by this section shall, at a 
minimum, include the following:
    (1) The titles of its officials upon whose authorizations passes may 
be issued;
    (2) The titles of other officials who are authorized by these 
officials to

[[Page 92]]

countersign passes on their behalf, and the extent of the authority 
granted to them; and
    (3) The titles of persons who are authorized to request passes from 
other carriers.
    (c) The rules, instructions, or statement required by this section 
shall be furnished to the Board upon request or to a member of the 
public upon payment of a reasonable charge for this service.

(Approved by the Office of Management and Budget under control number 
3024-0002)



                        Subpart B_Domestic Travel



Sec. 223.11  Free and reduced-rate transportation permitted.

    Air carriers may charge any rate or fare for interstate and overseas 
air transportation.



                     Subpart C_International Travel



Sec. 223.21  Free and reduced-rate transportation authorized by statute or regulation.

    (a) Any air carrier or foreign air carrier may provide free or 
reduced-rate foreign air transportation to any classes of persons 
specifically named in section 403(b) of the Act or free transportation 
to those named in Sec. 375.35 of this chapter.
    (b) Air carriers and foreign air carriers may offer reduced fares 
for foreign air transportation to ministers of religion, the elderly, 
retired, and handicapped passengers, and to attendants required by 
handicapped passengers, but shall file tariffs for such fares. Carriers 
may establish reasonable tariff rules to assist in identifying those who 
qualify for reduced fares.



Sec. 223.22  Other persons to whom free and reduced-rate transportation may be furnished.

    Air carriers and foreign air carriers are exempted from sections 403 
and 404(b) of the Act and part 221 of this chapter to the extent 
necessary to provide free or reduced-rate foreign air transportation, 
including passes, to the following:
    (a) Directors, officers, employees, and retirees and members of 
their immediate families, of any carrier or of any affiliate of such 
carrier, subject to the requirements of Sec. 223.25.
    (b) Persons to whom the carrier is required to furnish such 
transportation by law or government directive or by a contract or 
agreement between the carrier and the government of any country served 
by the carrier. The Board may, without prior notice, direct the carrier 
to file a tariff covering such transportation if it finds that the law 
or government directive in question requires the provision of such 
transportation. This transportation may be provided only if:
    (1) The contract or agreement is filed with the Board, and it is not 
disapproved by the Board; and
    (2) The law or government directive does not require the furnishing 
of such transportation to the general public or any segment thereof.
    (c) Technical representatives of companies that have been engaged in 
the manufacture, development or testing of a particular type of aircraft 
or aircraft equipment, when the transportation is provided for the 
purposes of in-flight observation, and subject to applicable regulations 
of the Federal Aviation Administration such as regulations pertaining to 
admission of persons to the aircraft flight deck.
    (d) Any person in return for goods or services provided by such 
person whether the transportation is used by that person or any designee 
of such person;
    (e) Persons engaged in promoting transportation and their immediate 
families, when such transportation is undertaken for a promotional 
purpose;
    (f) Persons being transported on an inaugural flight or delivery 
flight of the carrier except that, in the case of delivery flights, this 
exemption extends only to free, and not reduced-rate, transportation;
    (g) Any law-enforcement official, including any person who has the 
duty of guarding government officials traveling on official business 
against unlawful interference;
    (h) As compensation to persons that file a complaint or claim 
against the carrier;
    (i) Charitable organizations; and
    (j) Any person in an aviation-related occupation when the 
transportation is

[[Page 93]]

provided for the purpose of technical in-flight observation.



Sec. 223.23  Applications for authority to carry other persons.

    (a) Any air carrier or foreign air carrier desiring special 
authorization to provide free or reduced-rate foreign air transportation 
to persons to whom the carrier would not otherwise be authorized to 
furnish such transportation under the previous provisions of this part 
may apply to the Board, by letter or other writing, for such 
authorization.
    (b) The application shall include the following information:
    (1) The identity of the persons to whom the transportation is to be 
furnished;
    (2) The points between which the transportation is to be furnished;
    (3) The approximate time of departure; and
    (4) The carrier's reasons for desiring to furnish such 
transportation.
    (c) No transportation for which approval is required shall be 
furnished by the carrier until that approval is received by the carrier.

(Approved by the Office of Management and Budget under control number 
3024-0002)



Sec. 223.24  Transportation of empty mail bags.

    Any carrier authorized to engage in foreign air transportation may 
transport in foreign air transportation empty air mail bags from any 
country to the country of origin of such bags, free of charge, on a 
voluntary space-available basis.



Sec. 223.25  List of affiliates.

    (a) Each carrier shall maintain at its principal office a list 
containing all of that carrier's affiliates, showing the exact 
relationship of each affiliate to the carrier.
    (b) No pass may be issued under Sec. 223.22(a) to a director, 
officer, employee, or members of their immediate family, of any 
affiliate, unless that affiliate is on the list required by paragraph 
(a) of this section.
    (c) The list required by paragraph (a) of this section shall be 
furnished to the Board upon request.

(Approved by the Office of Management and Budget under control number 
3024-0002)



PART 232_TRANSPORTATION OF MAIL, REVIEW OF ORDERS OF POSTMASTER GENERAL--Table of Contents




Sec.
232.1 Applications for review.
232.2 Answers to applications for review.
232.3 Replies to answers to applications for review.
232.4 Applications to postpone the effective date of an order of the 
          Postmaster General; answers thereto.
232.5 Filing and service of applications, answers, and replies.

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

    Source: 41 FR 49479, Nov. 9, 1976, unless otherwise noted.



Sec. 232.1  Applications for review.

    (a) Any person who would be aggrieved by an order of the Postmaster 
General issued under and within the meaning of section 41902 of the 
Statute may, within not more than 10 days after the issuance of such 
order, apply to the Department for a review thereof.
    (b) An application for review filed under this part shall be made in 
writing and shall be conspicuously entitled Application for Review of 
Order of the Postmaster General under section 41902 of the Statute. 
Except as otherwise provided in paragraph (c) of this section, such 
application for review shall specify:
    (1) The schedule affected and identity of the order complained of;
    (2) The manner in which the applicant is or would be aggrieved by 
the order;
    (3) The relief sought;
    (4) The facts relied upon to establish that the public convenience 
and necessity require that such order be amended, revised, suspended, or 
canceled by the Department;
    (5) An estimate of the total economic impact (including nonmail 
revenues) on the carrier of complying with the Postmaster General's 
order;
    (6) A history of the flight or flights in question and any 
predecessor flights cooperated in the market at or about

[[Page 94]]

the same hours, including when they were first operated and whether they 
have been operated continuously since that time: Provided, That this 
history need not extend beyond the last three years;
    (7) A detailed statement of the reasons for the schedule change, 
including copies of any economic data considered by carrier management 
in reaching that determination;
    (8) Any other schedule changes in the affected market which 
accompany the schedule change in question, or a statement to the effect 
that there are no such changes;
    (9) Monthly load-factor data on the flight or flights in question 
for the most recent twelve-month period;
    (10) Profit and loss data for the flight or flights in question for 
the most recent twelve-month period, provided that the data be submitted 
on a fully allocated cost by functional account number or by some other 
method in which costs are determined on a fully allocated basis and 
which is explained in complete detail; and
    (11) A statement indicating whether the carrier is willing to 
seatload sack mail on the flight or flights in question.
    (c) Where the application is for review of an order which does not 
involve disapproval, alteration, or amendment of a change or changes 
which a carrier sought to make in its own schedule(s), the application 
need not include items 6 through 11, inclusive, specified in paragraph 
(b) of this section.

[41 FR 49479, Nov. 9, 1976, as amended by Docket No. 47939, 57 FR 40102, 
Sept. 2, 1992; 60 FR 43524, Aug. 22, 1995]



Sec. 232.2  Answers to applications for review.

    (a) Any interested person may, within not more than ten days after 
the filing of an application for review, serve and file with the 
Department an answer in opposition to, or in support of, such 
applications. Such answer shall set forth the economic data and other 
facts upon which it is based.
    (b) An answer of the Postmaster General or U.S. Postal Service shall 
contain the following particular information, where applicable:
    (1) The Postal Service's critical time frame for the movement of the 
mail in question together with a detailed explanation of the operational 
factors which support that estimate;
    (2) The alternate air and surface services (including air taxi 
service) available in the market in question together with a statement 
of the costs of using such alternate services and, where appropriate, an 
explanation of why such services are unacceptable;
    (3) An estimate of the average amount and expected actual density of 
mail which will be tendered to the carrier if the order in question is 
upheld;
    (4) An estimate of the amount and type of containers which will be 
tendered to the carrier if the order in question is upheld;
    (5) The volume (including density of mail, amount and types of 
containers) of mail historically carried on the flight or flights in 
question;
    (6) An estimate of the volume (including density of mail, amount and 
types of containers) of mail historically carried on the flight or 
flights in question which could be accommodated on other flights serving 
the market without significant impairment of service under the mail 
delivery time standards of the Postal Service, together with an 
explanation of how that estimate was computed; and
    (7) An estimate of the impact of the flight or flights in question 
on mail delivery time standards of the Postal Service, together with an 
explanation of how that estimate was computed.

[41 FR 49479, Nov. 9, 1976, as amended by Docket No. 47939, 57 FR 40102, 
Sept. 2, 1992]



Sec. 232.3  Replies to answers to applications for review.

    Any interested person may, within not more than seven days after the 
filing of an answer to an application for review, serve and file with 
the Department a reply in opposition to, or in support of, such answer.

[41 FR 49479, Nov. 9, 1976, as amended by Docket No. 47939, 57 FR 40102, 
Sept. 2, 1992]



Sec. 232.4  Applications to postpone the effective date of an order of the Postmaster General; answers thereto.

    (a) Any person who would be aggrieved by an order of the Postmaster

[[Page 95]]

General within the meaning of section 41902 of the Statute may, within 
not more than four calendar days after the issuance of such order, apply 
to the Department for a postponement of the effective date of that order 
pending review: Provided, That if the final day of the four day period 
is a Saturday, Sunday, or holiday for the Department, the application 
may be filed with the Department no later than the end of the next day 
which is neither a Saturday, Sunday, or holiday.
    (b) An application for postponement of the effective date filed 
under this part may be made in writing or by telegram, and shall be 
conspicuously entitled Application for Postponement of the Effective 
Date of Order of the Postmaster General Pending Review Under section 
41902 of the Statute. Such application for postponement shall specify:
    (1) The schedule affected and identity of the order complained of;
    (2) The manner in which the applicant is or would be aggrieved by 
the order;
    (3) The relief which will be sought;
    (4) That the applicant intends to file a timely application for 
review of the order under Sec. 232.1; and
    (5) A summary of the justification and facts relied upon to 
establish that the stay should be granted.
    (c) Any interested person may, within not more than four calendar 
days after the service of an application for postponement of the 
effective date, serve and file with the Department an answer in 
opposition to, or in support of, the application: Provided, That if the 
final day of the four day period is a Saturday, Sunday, or holiday for 
the Department, the application may be filed with the Department no 
later than the end of the next day which is neither a Saturday, Sunday, 
or holiday: Provided further, however, That the Department need not 
consider any answer filed later than eight calendar days after issuance 
of the Postmaster General's order.

[41 FR 49479, Nov. 9, 1976, as amended by Docket No. 47939, 57 FR 40102, 
Sept. 2, 1992; 60 FR 43524, Aug. 22, 1995]



Sec. 232.5  Filing and service of applications, answers, and replies.

    (a) An application, answer or reply filed hereunder shall be deemed 
to have been filed on the date on which it is actually received by the 
Department at its offices in Washington, D.C.
    (b) At the time a written or telegraphic application, answer, or 
reply is filed under this part, a copy thereof shall be served by 
personal service, registered mail, or telegraph upon the Postmaster 
General and upon the air carrier operating or ordered to operate the 
mail service in question. Except in the case of telegraphic delivery 
each copy so served shall be accompanied by a letter of transmittal 
stating that such service is being made pursuant to this section. In the 
case of telegraphic delivery the copy shall be accompanied by a 
telegraphic statement that service is being made pursuant to this 
section.
    (c) The execution, number of copies, and verification of a written 
application, answer, or reply filed under this part, and the formal 
specifications of papers included in such application, answer, or reply 
shall be in accordance with the requirements of the Rules of Practice 
relating to applications generally (see part 302 of this chapter).

[41 FR 49479, Nov. 9, 1976, as amended by Docket No. 47939, 57 FR 40102, 
Sept. 2, 1992]



PART 234_AIRLINE SERVICE QUALITY PERFORMANCE REPORTS--Table of Contents




Sec.
234.1 Purpose.
234.2 Definitions.
234.3 Applicability.
234.4 Reporting of on-time performance.
234.5 Form of reports.
234.6 Baggage-handling statistics.
234.7 Voluntary reporting.
234.8 Calculation of on-time performance codes.
234.9 Reporting of on-time performance codes.
234.10 Voluntary disclosure of on-time performance codes.
234.11 Disclosure to consumers.
234.12 Waivers.
234.13 Reports by air carriers on incidents involving animals during air 
          transport.

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

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

[[Page 96]]

    Note: The reporting requirements contained in this part have been 
approved by the Office of Management and Budget under control number 
2138-0041.



Sec. 234.1  Purpose.

    The purpose of this part is to set forth required data that certain 
air carriers must submit to the Department and to computer reservations 
system vendors in computerized form, except as otherwise provided, so 
that information on air carriers' quality of service can be made 
available to consumers of air transportation. This part also requires 
that service quality data be disclosed directly to consumers.



Sec. 234.2  Definitions.

    For the purpose of this part:
    Cancelled flight means a flight operation that was not operated, but 
was listed in a carrier's computer reservation system within seven 
calendar days of the scheduled departure.
    Discontinued flight means a flight dropped from a carrier's computer 
reservation system more than seven calendar days before its scheduled 
departure.
    Diverted flight means a flight which is operated from the scheduled 
origin point to a point other than the scheduled destination point in 
the carrier's published schedule. For example, a carrier has a published 
schedule for a flight from A to B to C. If the carrier were to actually 
fly an A to C operation, the A to B segment is a diverted flight, and 
the B to C segment is a cancelled flight.
    Extra-section flight means a flight conducted as an integral part of 
scheduled passenger service, that has not been provided for in published 
schedules and is required for transportation of traffic that cannot be 
accommodated on the regularly scheduled flight.
    Flight means any nonstop scheduled passenger flight segment with a 
specific flight number scheduled to be operated pursuant to a published 
schedule within a specific origin-destination city pair, other than 
transborder or foreign air transportation. In the case of reporting to 
computer reservations system vendors, flight also means one-stop or 
multi-stop single plane scheduled operations that include any flight 
segments for which performance is reported pursuant to this part.
    Late or late flight means a flight that arrives at the gate 15 
minutes or more after its published arrival time.
    Mishandled-baggage report means a report filed with a carrier by or 
on behalf of a passenger that claims loss, delay, damage or pilferage of 
baggage.
    New flight means a flight added to a carrier's schedule to operate 
in a specific origin-destination city pair and not scheduled to depart 
within 30 minutes of any discontinued flight that was contained in the 
carrier's published schedules for the same city pair during the previous 
month.
    On-time means a flight that arrives less than 15 mintues after its 
published arrival time.
    On-time performance means the percentage of scheduled operations of 
a specific flight that an air carrier operates on-time during a month.
    On-time performance code means a single character determined in 
accordance with the provisions of this part that reflects the monthly 
on-time performance of certain nonstop flights and single plane one-stop 
or multi-stop flights, the schedule and availability of which are listed 
in a computer reservation system (CRS) regulated by 14 CFR part 255.
    Reportable flight means any nonstop flight, including a mechanically 
delayed flight, to or from any airport within the contiguous 48 states 
that accounts for at least 1 percent of domestic scheduled-passenger 
enplanements in the previous calendar year, as reported to the 
Department pursuant to part 241 of this title. Qualifying airports will 
be specified periodically in accounting and reporting directives issued 
by the Office of Airline Information.
    Reporting carrier means an air carrier certificated under 49 U.S.C. 
41102 that accounted for at least 1 percent of domestic scheduled-
passenger revenues in the 12 months ending March 31 of each year, as 
reported to the Department pursuant to part 241 of this title. Reporting 
carriers will be identified periodically in accounting and reporting 
directives issued by the Office of Airline Information.

[[Page 97]]

    Wet-leased flight means a flight operated with a leased aircraft and 
crew.

[Amdt. 234-1, 52 FR 34071, Sept. 9, 1987, as amended by Docket No. 
48524, 59 FR 49797, Sept. 30, 1994; 60 FR 66722, Dec. 26, 1995]



Sec. 234.3  Applicability.

    This part applies to certain domestic scheduled passenger flights 
that are held out to the public by certificated air carriers that 
account for at least 1 percent of domestic scheduled passenger revenues. 
Certain provisions also apply to voluntary reporting to on-time 
performance by carriers.



Sec. 234.4  Reporting of on-time performance.

    (a) Each reporting carrier shall file BTS Form 234 ``On-Time Flight 
Performance Report'' with the Office of Airline Information on a monthly 
basis, setting forth the information for each of its reportable flights 
held out in the Official Airline Guide (OAG), in the computer 
reservations systems (CRS), or in other schedule publications. The 
reportable flights include, but are not limited to, cancelled flights, 
mechanically cancelled flights, diverted flights, new flights and wet-
leased flights. The report shall be made in the form and manner set 
forth in accounting and reporting directives issued by the Director, 
Office of Airline Statistics, and shall contain the following 
information:
    (1) Carrier and flight number.
    (2) Aircraft tail number.
    (3) Origin and Destination airport codes.
    (4) Published OAG departure and arrival times for each scheduled 
operation of the flight.
    (5) CRS scheduled arrival and departure time for each scheduled 
operation of the flight.
    (6) Actual departure and arrival time for each operation of the 
flight.
    (7) Difference in minutes between OAG and CRS scheduled arrival 
times.
    (8) Difference in minutes between OAG and CRS scheduled departure 
times.
    (9) Actual wheels-off and wheels-on times for each operation of the 
flight.
    (10) Date and day of week of scheduled flight operation.
    (11) Scheduled elapsed time, according to CRS schedule.
    (12) Actual elapsed time.
    (13) Amount of departure delay, if any.
    (14) Amount of arrival delay, if any.
    (15) Amount of elapsed time difference, if any.
    (16) Causal code for cancellation, if any.
    (17) Minutes of delay attributed to the air carrier, if any.
    (18) Minutes of delay attributed to extreme weather, if any.
    (19) Minutes of delay attributed to the national aviation system, if 
any.
    (20) Minutes of delay attributed to security, if any.
    (21) Minutes of delay attributed to a previous late arriving 
aircraft, if any.
    (b) When reporting the information specified in paragraph (a) of 
this section for a diverted flight, a reporting carrier shall use the 
original scheduled flight number and the original scheduled origin and 
destination airport codes. Carriers are not required to report causal 
information for diverted flights.
    (c) A reporting carrier shall report the information specified in 
paragraph (a) of this section for a new flight beginning with the first 
day of the new scheduled operation.
    (d) A reporting carrier shall not report the information specified 
in paragraph (a) of this section for any discontinued or extra-section 
flight.
    (e) Actual arrival, departure and elapsed times shall be measured by 
the times at which the aircraft arrived at and departed from the gate or 
passenger loading area.
    (f) The published arrival time and departure time of a flight shall 
be, respectively, the scheduled arrival and departure times in effect on 
the date of the scheduled operation of the flight, as shown in the most 
recent Official Airline Guide, and in computer reservations systems. 
Each carrier shall designate a single computer reservations system in 
addition to the Official Airline Guide as the sources of scheduled 
arrival time and departure time data in its reports to the Department 
and shall report the scheduled arrival times and departure times listed 
in those sources for each flight. Scheduled elapsed

[[Page 98]]

times, amount of departure and/or arrival delay, and elapsed time 
difference shall be calculated using the scheduled times shown in the 
designated CRS source.
    (g) Reporting carriers should use the following codes to identify 
causes for cancelled flights:

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

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

CAUSE
Air Carrier
Extreme weather
NAS
Security
Late arriving aircraft

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

[Amdt. 234-1, 52 FR 34071, Sept. 9, 1987, as amended by Docket No. 
48524, 59 FR 49797, Sept. 30, 1994; 60 FR 66722, Dec. 26, 1995; 67 FR 
70544, Nov. 25, 2002]



Sec. 234.5  Form of reports.

    Except where otherwise noted, all reports required by this part 
shall be filed within 15 days of the end of the month for which data are 
reported. The reports must be submitted to the Office of Airline 
Information in a format specified in accounting and reporting directives 
issued by the Bureau of Transportation Statistics' Assistant Director 
for Airline Information.

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



Sec. 234.6  Baggage-handling statistics.

    Each reporting carrier shall report monthly to the Department on a 
domestic system basis, excluding charter flights, the total number of 
passengers enplaned systemwide, and the total number of mishandled-
baggage reports filed with the carrier. The information

[[Page 99]]

shall be submitted to the Department within 15 days of the end of the 
month to which the information applies and must be submitted with the 
transmittal letter accompanying the data for on-time performance in the 
form and manner set forth in accounting and reporting directives issued 
by the Director, Office of Airline Information.

[Docket No. 48524, 59 FR 49798, Sept. 30, 1994, as amended at 60 FR 
66722, Dec. 26, 1995]



Sec. 234.7  Voluntary reporting.

    (a) In addition to the data for each reportable flight required to 
be reported by this part, a reporting carrier may report to DOT for 
every other nonstop domestic flight that it schedules, the reportable 
flight data specified in this part.
    (b) Any air carrier that is not a reporting carrier may file the 
data specified in this part for every reportable flight that it 
schedules, or for every nonstop domestic flight that it schedules.
    (c) Voluntary reports containing information not required to be 
filed (1) must be submitted in the same form and manner, and at the same 
time, as reports containing data required to be filed, and (2) must be 
accompanied by a written statement describing in detail the information 
that is being voluntarily submitted. A carrier that files a voluntary 
report must continue to do so for a period of not less than 12 
consecutive months.



Sec. 234.8  Calculation of on-time performance codes.

    (a) Each reporting carrier shall calculate an on-time performance 
code in accordance with this section and as provided in more detail in 
accounting and reporting directives issued by the Director, Office of 
Airline Information. The calculations shall be performed for each 
reportable flight, except those scheduled to operate three times or less 
during a month. In addition, each reporting carrier shall assign an on-
time performance code to each of its single plane one-stop or multi-stop 
flights, or portion thereof, that the carrier holds out to the public 
through a CRS, the last segment of which is a reportable flight.
    (b) The on-time performance code shall be calculated as follows:
    (1) Based on reportable flight data provided to the Department, 
calculate the percentage of on-time arrivals of each nonstop flight. 
Calculations shall not include discontinued or extra-section flights for 
which data are not reported to the Department.
    (2) Based upon the on-time performance percentage calculated in 
paragraph (b)(1) of this section, assign a single digit code to each 
flight that reflects the percentile of on-time performance achieved by 
the flight, as set forth in the following table:

                           On Time Performance
------------------------------------------------------------------------
                          Code:                             Percentage
------------------------------------------------------------------------
        9...............................................          90-100
        8...............................................         80-89.9
        7...............................................         70-79.9
        6...............................................         60-69.9
        5...............................................         50-59.9
        4...............................................         40-49.9
        3...............................................         30-39.9
        2...............................................         20-29.9
        1...............................................         10-19.9
        0...............................................           0-9.9
------------------------------------------------------------------------

    (3) For a one-stop or multi-stop flight, or portion thereof, listed 
in a CRS, the performance code for the nonstop flight segment arriving 
at the destination listed in the CRS shall be used.
    (4) In the case of a new flight, carriers shall assign a performance 
code consisting of the letter ``N.'' A flight that is not a new flight 
shall be assigned the performance code calculated for the flight that it 
replaces, even if the two flights do not have the same flight number. In 
the case of a flight scheduled to operate three times or less during a 
month, carriers shall assign a performance code consisting of the letter 
``U.''
    (c) Carriers shall calculate on-time performance percentages and 
assign on-time performance codes on a monthly basis. This process shall 
be completed no later than the 15th day of each month, when the reports 
required by this part are due to the Department,

[[Page 100]]

and the codes shall reflect the previous month's operations.

[Amdt. No. 234-1, 52 FR 34071, Sept. 9, 1987, as amended by Amdt. No. 
234-3, 52 FR 48397, Dec. 22, 1987; 53 FR 27677, July 22, 1988; Docket 
No. 48524, 59 FR 49798, Sept. 30, 1994; 60 FR 66722, Dec. 26, 1995]



Sec. 234.9  Reporting of on-time performance codes.

    No later than the 15th day of each month, each reporting carrier 
shall deliver, or arrange to have delivered, to each system vendor, as 
defined in 14 CFR part 255, the on-time performance codes required to be 
determined above. Carriers may report the codes by insuring that they 
are included in basic schedule tapes provided to CRS vendors or by 
providing a separate tape that will permit the CRS vendors to match the 
performance codes with basic schedule tapes.



Sec. 234.10  Voluntary disclosure of on-time performance codes.

    (a) Any air carrier may determine, in accordance with the provisions 
of Sec. 234.8 of this part, the on-time performance codes for the 
flights for which it voluntarily provides flight information to the 
Department pursuant to Sec. 234.7 of this part.
    (b) A carrier may supply these additional on-time performance codes 
to system vendors at the same time and in the same manner as the 
required disclosures are made to system vendors, provided that voluntary 
disclosures must continue for a period of not less than 12 consecutive 
months, and must be supplied either
    (1) For each of the carrier's reportable flights and each of its 
single plane one-stop or multi-stop flights, or portions thereof, that 
it holds out to the public through a CRS, the last segment of which is a 
reportable flight or
    (2) For each of the carrier's domestic flights.



Sec. 234.11  Disclosure to consumers.

    During the course of reservations or ticketing discussions or 
transactions, or inquiries about flights, between a carrier's employees 
and the public, the carrier shall disclose upon reasonable request the 
on-time performance code for any flight that has been assigned a code 
pursuant to this part.



Sec. 234.12  Waivers.

    Any carrier may request a waiver from the reporting requirements of 
this part. Such a request, at the discretion of the Director, Bureau of 
Transportation Statistics may be granted for good cause shown. The 
requesting party shall state the basis for such a waiver.

[Docket No. 48524, 59 FR 49798, Sept. 30, 1994, as amended at 60 FR 
66722, Dec. 26, 1995]



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

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

[[Page 101]]

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

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



PART 240_INSPECTION OF ACCOUNTS AND PROPERTY--Table of Contents




Sec.
240.1 Interpretation.
240.2 Obligation of air carriers, foreign air carriers, and ticket 
          agents.



Sec. 240.1  Interpretation.

    (a) In the exercise of the authority granted by section 407(e) of 
the Act, the authority of any special agent or auditor to inspect and 
examine lands, buildings, equipment, accounts, records, memorandums, 
papers or correspondence shall include the authority to make such notes 
and copies thereof as he deems appropriate.
    (b) The term ``special agent'' and ``auditor'' are construed to mean 
any employee of the Bureau of Enforcement and any other employee of the 
Board specifically designated by it or by the Director, Office of 
Facilities and Operations.
    (c) The issuance in the form set forth below of an identification 
card and credentials to any such employee shall be construed to be an 
order and direction of the Board to such individual to inspect and 
examine lands, buildings, equipment, accounts, records, and memorandums 
in accordance with the authority conferred on the Board by the Act.

   United States of America, Civil Aeronautics Board, Washington, D.C.

Number__________________________________________________________________
Expires_________________________________________________________________

                                 [photo]

                                Signature

This is to certify that------------, whose signature and photograph 
appear hereon is a duly designated______________________________________

of the Civil Aeronautics Board and is authorized and directed to perform 
the duties of said office in accordance with the laws of the United 
States and regulations thereunder, and his authority will be respected 
accordingly.
By authority of the Civil Aeronautics Board.

                                Secretary

                         Civil Aeronautics Board

Name____________________________________________________________________
Date Issued_____________________________________________________________
Number__________________________________________________________________
Height__________________________________________________________________
Weight__________________________________________________________________
Hair____________________________________________________________________
Eyes____________________________________________________________________
Date of Birth___________________________________________________________
    The holder hereof is authorized to investigate violations of the 
Federal Aviation Act, as amended, collect evidence in cases in which the 
regulatory authority of the Civil Aeronautics Board is or may be 
involved and perform other duties imposed upon him by law.
    Under the Federal Aviation Act and part 240 of the Economic 
Regulations of the Civil Aeronautics Board (14 CFR part 240), the duly 
accredited special agents and auditors of the Board are empowered at all 
times to obtain access to all lands, buildings and equipment of any air 
carrier or foreign air carrier and to inspect, examine, and make notes 
and copies of all accounts, records, memorandums, documents, papers and 
correspondence kept or required to be kept by any air carrier, foreign 
air carrier or ticket agent.
    The issuance of these credentials to the holder hereof constitutes 
an order and direction on the part of the Civil Aeronautics Board to 
such individual to carry out these duties as aforesaid and as more fully 
described in part 240 of the Board's Economic Regulations.

[[Page 102]]

    Failure to honor these credentials will result in penalties as 
provided by law.
                                               United States of America,
                                                Civil Aeronautics Board,
                                                        Washington, D.C.

(Secs. 204, 407, 701, 72 Stat. 743; 49 U.S.C. 1324, 1377, 1441)

[ER-822, 38 FR 26601, Sept. 24, 1973, as amended by ER-914, 40 FR 27017, 
June 26, 1975; ER-941, 40 FR 58850, Dec. 19, 1975]



Sec. 240.2  Obligation of air carriers, foreign air carriers, and ticket agents.

    Upon the demand of a special agent or auditor of the Board, and upon 
the presentation of the identification card and credentials issued to 
him in accordance with this part: (a) Any air carrier or foreign air 
carrier shall forthwith permit such special agent or auditor to inspect 
and examine all lands, buildings and equipment; (b) any air carrier, 
foreign air carrier or ticket agent shall forthwith permit such special 
agent or auditor to inspect and examine all accounts, records, 
memorandums, documents, papers and correspondence now or hereafter 
existing, and kept or required to be kept by the air carrier, foreign 
air carrier, or ticket agent, and shall permit such special agent or 
auditor to make such notes and copies thereof as he deems appropriate.

(Sec. 204(a), Federal Aviation Act of 1958, as amended, 72 Stat. 743; 
(49 U.S.C. 1324))

[ER-914, 40 FR 27017, June 26, 1975]



PART 241_UNIFORM SYSTEM OF ACCOUNTS AND REPORTS FOR LARGE CERTIFICATED AIR CARRIERS--Table of Contents




Sec.
01 Authority Under Which Accounting and Reporting Rules and Regulations 
          Are Prescribed and Administered.
02 [Reserved]
03 Definitions for Purposes of This System of Accounts and Reports.
04 Air Carrier Groupings.

                      General Accounting Provisions

1 Introduction to System of Accounts and Reports.
1-1 Applicability of system of accounts and reports.
1-2 Waivers from this system of accounts and reports.
1-3 General description of system of accounts and reports.
1-4 System of accounts coding.
1-5 Records.
1-6 Accounting entities.
1-7 Interpretation of accounts.
1-8 Address for reports and correspondence.
2 General Accounting Policies.
2-1 Generally accepted accounting principles.
2-2 Basis of allocation between entities.
2-3 Distribution of revenues and expenses within entities.
2-4 Accounting period.
2-5 Revenue and accounting practices.

                      Balance Sheet Classifications

3 Chart of Balance Sheet Accounts.
4 General.
5 [Reserved]
6 Objective Classification of Balance Sheet Elements.

                     Profit and Loss Classification

7 Chart of Profit and Loss Accounts.
8 General.
9 Functional Classification--Operating Revenues.
10 Functional Classification--Operating Expenses of Group I Air 
          Carriers.
11 Functional Classification--Operating Expenses of Group II and Group 
          III Air Carriers.
12 Objective Classification--Operating Revenues and Expenses.
14 Objective Classification--Nonoperating Income and Expense.
15 Objective Classification--Income Taxes for Current Period.
16 Objective Classification--Discontinued Operations.
17 Objective Classification--Extraordinary Items.
18 Objective Classification--Cumulative Effect of Changes in Accounting 
          Principles.

                  Operating Statistics Classifications

19 Uniform Classification of Operating Statistics.
19-1 Applicability.
19-2 Maintenance of data.
19-3 Accessibility and transmittal of data.
19-4 Service classes.
19-5 Air transport traffic and capacity elements.
19-6 Public disclosure of traffic data.
19-7 Passenger origin-destination survey.

      General Reporting Provisions--Large Certificated Air Carriers

21 Introduction to System of Reports.
22 General Reporting Instructions.

                    Financial Reporting Requirements

23 Certification and Balance Sheet Elements.

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24 Profit and Loss Elements.

                     Traffic Reporting Requirements

25 Traffic and Capacity Elements.

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

    Source: ER-755, 37 FR 19726, Sept. 21, 1972, unless otherwise noted.



Section 01  Authority Under Which Accounting and Reporting Rules and Regulations are Prescribed and Administered

    This Uniform System of Accounts and Reports for Large Certificated 
Air Carriers is issued, prescribed and administered under the following 
provisions of the Federal Aviation Act of 1958, as amended (72 Stat. 
731, 49 U.S.C. 1301):

                             General Powers

    Sec. 204. (a) The Board is empowered to perform such acts, to 
conduct such investigations, to issue and amend such orders, and to make 
and amend such general or special rules, regulations, and procedure, 
pursuant to and consistent with the provisions of this Act, as it shall 
deem necessary to carry out the provisions of, and to exercise and 
perform its powers and duties under, this Act.

                            filing of reports

    Sec. 407. (a) The Board is empowered to require annual, monthly, 
periodical, and special reports from any air carrier; to prescribe the 
manner and form in which such reports shall be made; and to require from 
any air carrier specific answers to all questions upon which the Board 
may deem information to be necessary. Such reports shall be under oath 
whenever the Board so requires. The Board may also require any air 
carrier to file with it a true copy of each or any contract, agreement, 
understanding, or arrangement, between such air carrier and any other 
carrier or person, in relation to any traffic affected by the provisions 
of this Act.

                      Disclosure of Stock Ownership

    Sec. 407. (b) Each air carrier shall submit annually, and at such 
other times as the Board shall require, a list showing the names of each 
of its stockholders or members holding more than 5 per centum of the 
entire capital stock or capital, as the case may be, of such air 
carrier, together with the name of any person for whose account, if 
other than the holder, such stock is held; and a report setting forth a 
description of the shares of stock, or other interest, held by such air 
carrier, or for its account, in persons other than itself.

                            Form of Accounts

    Sec. 407. (d) The Board shall prescribe the forms of any and all 
accounts, records, and memoranda to be kept by air carriers, including 
the accounts, records, and memoranda of the movement of traffic, as well 
as of the receipts and expenditures of money, and the length of time 
such accounts, records, and memoranda shall be preserved; and it shall 
be unlawful for air carriers to keep any accounts, records, or memoranda 
other than those prescribed or approved by the Board: Provided, That any 
air carrier may keep additional accounts, records, or memoranda if they 
do not impair the integrity of the accounts, records, or memoranda 
prescribed or approved by the Board and do not constitute an undue 
financial burden on such air carrier.

                   Inspection of Accounts and Property

    Sec. 407. (e) The Board shall at all times have access to all lands, 
buildings, and equipment of any carrier and to all accounts, records, 
and memoranda, including all documents, papers, and correspondence, now 
or hereafter existing, and kept or required to be kept by air carriers; 
and it may employ special agents or auditors, who shall have authority 
under the orders of the Board to inspect and examine any and all such 
lands, buildings, equipment, accounts, records, and memoranda. The 
provisions of this section shall apply, to the extent found by the Board 
to be reasonably necessary for the administration of this Act, to 
persons having control over any air carrier, or affiliated with any air 
carrier within the meaning of section 5(8) of the Interstate Commerce 
Act, as amended.

                             Classification

    Sec. 416. (a) The Board may from time to time establish such just 
and reasonable classifications or groups of air carriers for the 
purposes of this title as the nature of the services performed by such 
air carriers shall require; and such just and reasonable rules and 
regulations, pursuant to and consistent with the provisions of this 
title, to be observed by each such class or group, as the Board finds 
necessary in the public interest.

                  Safety, Economic and Postal Offenses

    Sec. 901. (a)(1) Any person who violates (A) any provision of Title 
III, IV, V, VI, VII, or XII of this Act, or any rule, regulation, or 
order issued thereunder, or under section 1002(i), or any term, 
condition or limitation of any permit or certificate issued under Title 
IV, or (B) any rule or regulation issued by the Postmaster General under 
this Act, shall be subject to a civil penalty of not to exceed $1,000 
for each such violation. If such violation is a continuing one, each day 
of

[[Page 104]]

such violation shall constitute a separate offense: Provided, That this 
subsection shall not apply to members of the Armed Forces of the United 
States, or those civilian employees of the Department of Defense who are 
subject to the provisions of the Uniform Code of Military Justice, while 
engaged in the performance of their official duties; and the appropriate 
military authorities shall be responsible for taking any necessary 
disciplinary action with respect thereto and for making to the 
Administrator or Board, as appropriate, a timely report of any such 
action taken.
    (2) Any such civil penalty may be compromised by the Administrator 
in the case of violations of Titles III, V, VI, or XII, or any rule, 
regulation, or order issued thereunder, or by the Board in the case of 
violations of Titles IV or VII, or any rule, regulation or order issued 
thereunder, or under section 1002(i), or any term, condition, or 
limitation of any permit or certificate issued under Title IV, or by the 
Postmaster General in the case of regulations issued by him. The amount 
of such penalty, when finally determined, or the amount agreed upon in 
compromise, may be deducted from any sums owing by the United States to 
the person charged.

            Failure To File Reports; Falsification of Records

    Sec. 902. (e) Any air carrier, or any officer, agent, employee, or 
representative thereof, who shall, knowingly and willfully, fail or 
refuse to make a report to the Board or Administrator as required by 
this Act, or to keep or preserve accounts, records, and memoranda in the 
form and manner prescribed or approved by the Board or Administrator, or 
shall, knowingly and willfully, falsify, mutilate, or alter any such 
report, account, record, or memorandum, or shall knowingly and willfully 
file any false report, account, record, or memorandum, shall be deemed 
guilty of a misdemeanor and, upon conviction thereof, be subject for 
each offense to a fine of not less than $100 and not more than $5,000.

                           Refusal To Testify

    Sec. 902. (g) Any person who shall neglect or refuse to attend and 
testify, or to answer any lawful inquiry, or to produce books, papers, 
or documents, if in his power to do so, in obedience to the subpena or 
lawful requirement of the Board or Administrator, shall be guilty of a 
misdemeanor and, upon conviction thereof, shall be subject to a fine of 
not less than $100 nor more than $5,000, or imprisonment for not more 
than one year, or both.

                     Filing of Complaints Authorized

    Sec. 1002. (a) Any person may file with the Administrator or the 
Board, as to matters within their respective jurisdictions, a complaint 
in writing with respect to anything done or omitted to be done by any 
person in contravention of any provisions of this Act, or of any 
requirement established pursuant thereto. If the person complained 
against shall not satisfy the complaint and there shall appear to be any 
reasonable ground for investigating the complaint, it shall be the duty 
of the Administrator or the Board to investigate the matters complained 
of. Whenever the Administrator or the Board is of the opinion that any 
complaint does not state facts which warrant an investigation or action, 
such complaint may be dismissed without hearing. In the case of 
complaints against a member of the Armed Forces of the United States 
acting in the performance of his official duties, the Administrator or 
the Board, as the case may be, shall refer the complaint to the 
Secretary of the department concerned for action. The Secretary shall, 
within ninety days after receiving such a complaint, inform the 
Administrator or the Board of his disposition of the complaint, 
including a report as to any corrective or disciplinary actions taken.

         Investigations on Initiative of Administrator or Board

    Sec. 1002. (b) The Administrator or Board, with respect to matters 
within their respective jurisdictions, is empowered at any time to 
institute an investigation, on their own initiative, in any case and as 
to any matter or thing within their respective jurisdictions, concerning 
which complaint is authorized to be made to or before the Administrator 
or Board by any provision of this Act, or concerning which any question 
may arise under any of the provisions of this Act, or relating to the 
enforcement of any of the provisions of this Act. The Administrator or 
the Board shall have the same power to proceed with any investigation 
instituted on their own motion as though it had been appealed to by 
complaint.

                 Entry or Orders for Compliance With Act

    Sec. 1002. (c) If the Administrator or the Board finds, after notice 
and hearing, in any investigation instituted upon complaint or upon 
their own initiative, with respect to matters within their jurisdiction, 
that any person has failed to comply with any provision of this Act or 
any requirement established pursuant thereto, the Administrator or the 
Board shall issue an appropriate order to compel such person to comply 
therewith.

[ER-755, 37 FR 19726, Sept. 21, 1972, as amended by ER-1400, 50 FR 11, 
Jan. 2, 1985]

[[Page 105]]



Section 02  [Reserved]



Section 03  Definitions for Purposes of This System of Accounts and Reports

    Account, clearing. An account used as a medium for the temporary 
accumulation of costs that are redistributed to appropriate applicable 
accounts.
    Acquisition, date of. The date on which the title to owned property 
or equipment (or the right to use or control the reassignment of leased 
property or equipment) passes to the air carrier.
    Act. The Federal Aviation Act of 1958, as amended.
    Addition, property. Additional equipment, land, structures, and 
other tangible property; extensions of fuel, water, and oil distribution 
equipment; additions to buildings and other structures; and additional 
safety devices applied to equipment not previously thus equipped. (See 
also Modification.)
    Affiliated group. A combination of companies comprised of the air 
carrier, any person controlling the air carrier or under common control 
with the air carrier, and organizational divisions (as defined in 
sections 1-6) of and persons controlled by the air carrier.
    Agency, cargo. Any person (other than the air carrier preforming the 
direct air transportation or one of its bona fide regular employees or 
an indirect air carrier lawfully engaged in air transportation under 
authority conferred by any applicable part of the Economic Regulations 
of the Department) who for compensation or profit: (1) Solicits, 
obtains, receives or furnishes directly or indirectly property or 
consolidated shipments of property for transportation upon the aircraft 
of an air carrier subject to this part, or (2) procures or arranges for 
air transportation of property upon aircraft of an air carrier subject 
to this part by charter, lease, or any other arrangement.
    Agent, ticket. Any person (other than the air carrier performing the 
direct air transportation or one of its bona fide regular employees, or 
an air carrier which subcontracts the performance of charter air 
transportation which it has contracted to perform) who for compensation 
or profit: (1) Solicits, obtains, receives, or furnishes directly or 
indirectly passengers or groups of passengers for transportation upon 
the aircraft of an air carrier subject to this part, or (2) procures or 
arranges for air transportation of passengers or groups of passengers 
upon aircraft of an air carrier subject to this part by charter, lease, 
or any other arrangement.
    Agreement. Any oral or written agreement, contract, understanding, 
or arrangement, and any amendment, revision, modification, renewal, 
extension, cancellation or termination thereof.
    Air carrier. Any citizen of the United States who undertakes, 
whether directly or indirectly or by a lease or any other arrangement, 
to engage in air transportation.
    Air carrier, charter. An air carrier holding a certificate issued 
under 49 U.S.C. 41102(a)(3).
    Air carrier, large certificated. An air carrier holding a 
certificate issued under 49 U.S.C. 41102, as amended, that: (1) Operates 
aircraft designed to have a maximum passenger capacity of more than 60 
seats or a maximum payload capacity of more than 18,000 pounds; or (2) 
conducts operations where one or both terminals of a flight stage are 
outside the 50 states of the United States, the District of Columbia, 
the Commonwealth of Puerto Rico and the U.S. Virgin Islands.
    Air carrier, surviving. An entity (air carrier) which, as the result 
of a business combination, has acquired the net assets, and carries on 
the operations of, one or more predecessor air carriers, and which may 
be newly organized at the time of the combination or may be one of the 
predecessor air carriers.
    Aircraft. Any contrivance now known or hereafter invented, used or 
designed for navigation of or flight in the air.
    Aircraft days assigned to service-carrier's equipment means the 
number of days that aircraft owned or acquired through rental or lease 
are in the possession of the reporting air carrier and are available for 
service on the reporting carrier's routes plus the number of days such 
aircraft are in service on routes of others under wet-lease agreements. 
Includes days in overhaul, or temporarily out of service due to schedule 
cancellations. Excludes days that newly acquired aircraft are on hand 
but not available for productive use, days dry-leased or rented to 
others, and days in possession but formally withdrawn from air 
transportation service.
    Aircraft day assigned to service-carrier routes--same as aircraft 
days assigned to service carrier's equipment but excluding the number of 
days owned or rented equipment are in the possession of others under 
interchange agreements and including the number of days aircraft of 
others are in the possession of the air carrier under interchange 
agreements.
    Aircraft, leased (rented). Aircraft obtained from (or furnished to) 
others under lease or rental arrangements. Leased and rented aircraft do 
not include those used under interchange agreements designed to provide 
oneplane service over the routes of the air carriers involved.
    Aircraft type. A distinctive model as designated by the 
manufacturer.
    Airport. A landing area regularly used by aircraft for receiving or 
discharging passengers or cargo.
    Airport, alternate. An approved airport to which a flight may 
proceed if a landing at the airport to which the flight was dispatched 
becomes inadvisable.

[[Page 106]]

    Airport-to-airport distance. The great circle distance between 
airports, measured in statute miles in accordance with part 247 of this 
chapter.
    Air transportation. The carriage by aircraft of persons, property, 
or mail.
    Air transportation, charter. Air transportation authorized pursuant 
to section 401(d)(3).
    Airworthiness (or Airworthy). When applied to a particular aircraft 
or component part, it denotes the ability of such aircraft or component 
part to perform its function satisfactorily through a range of 
operations determined by the Federal Aviation Administration.
    Allocate. To assign an item or group of items of investment, 
revenue, or cost to an object, activity, process, or operation, in 
accordance with cost responsibilities, benefits received, or other 
measure of apportionment.
    Allocation, bases of. Bases of distribution whereby revenues, 
expenses, and/or costs are equitably apportioned among revenue, expense, 
property and equipment, and other accounts.
    Amortization. The gradual extinguishment of an amount in an account 
by distributing such amount over a fixed period, over the life of the 
asset or liability to which it applies or over the period during which 
it is anticipated the benefit will be realized.
    Asset, contingent. An asset the existence, value, or ownership of 
which depend upon the occurrence or nonoccurrence of a specific event or 
upon the performance or nonperformance of a specified act.
    Associated company. A company in which the accounting air carrier 
holds 5 percent or more of the outstanding proprietary interest; or a 
company which holds 5 percent or more of the outstanding proprietary 
interest of the accounting air carrier; or a company that, directly or 
through one or more intermediaries, controls or is controlled by, or is 
under common control with the accounting air carrier. Companies owned or 
controlled jointly with other air carriers shall be regarded as 
associated companies for purposes of this system of accounts. (See also 
Control.)
    Betterment. Any improvement to property or equipment through the 
substitution of superior parts for inferior parts retired, the object of 
which is to make such property more useful or of greater capacity than 
at the time of acquisition or installation. (See also Modification.)
    BTS. The Bureau of Transportation Statistics.
    Cargo. All traffic other than passengers.
    Cargo transported. Cargo on board each flight stage.
    Certificated point. A city, place or population center authorized to 
receive scheduled air service under a Certificate of Public Convenience 
and Necessity or under an exemption issued to an air carrier.
    Certificate of Public Convenience and Necessity. A certificate 
issued to an air carrier under 49 U.S.C. 41102, by the Department of 
Transportation authorizing the carrier to engage in air transportation.
    Company, predecessor. An air carrier whose net assets and operations 
have been taken over by one or more other air carriers.
    Compensation (of personnel). Remuneration to air carrier employees 
for personal services. Includes salaries, wages, overtime pay, cost-of-
living differentials, bonuses, etc., as distinguished from per diem 
allowances or reimbursement for expenses incurred by personnel for the 
benefit of the air carrier.
    Continental United States. The 48 contiguous States and the District 
of Columbia.
    Control (including the terms Controlling, Controlled by, and Under 
common control). The possession, directly or indirectly, of the power 
positively to direct, or cause the direction of or negate the direction 
of, the management and policies of a company, whether such power is 
through one or more intermediary companies or alone or in conjunction 
with or pursuant to an agreement, and whether such power is established 
through a majority or minority ownership or voting of securities, common 
directors, officers, or stockholders, voting trusts, holding trusts, 
associated companies, contract, or any other direct or indirect means.
    Controlling person. (See Person Controlling an air carrier)
    Cost. The amount of cash (or its equivalent) actually paid for 
property, materials and supplies, and services, including that amount 
paid to put the property or materials and supplies in readiness for use. 
It includes such items as transportation charges, installation charges, 
and customs duties, less any cash or other discounts.
    Cost, book. The amount at which an asset is recorded in an account 
without the deduction of amounts in related allowances or other 
accounts.
    Cost, depreciated. The cost of property and equipment less the 
related allowances for depreciation.
    Cost, removal. The cost of demolishing, dismantling, tearing down, 
or otherwise removing property and equipment, including the cost of 
related transportation and handling.
    Debt, expense on. Expenses incurred by or for the air carrier in 
connection with the issuance and sale of evidences of debt (exclusive of 
the sale of reacquired securities), such as fees for drafting mortgages 
and trust deeds; fees and taxes for issuing or recording evidences of 
debt; cost of engraving and printing bonds, certificates of 
indebtedness, and other commercial paper; specific costs of obtaining 
governmental authority for issuance and filing notices thereunder; fees 
for legal services; fees and commissions paid

[[Page 107]]

underwriters, brokers, and salesmen for marketing such evidences of 
debt; fees and expenses of listing on exchanges; and other like costs.
    Deferred taxes. Tax effects which are deferred for allocation to 
income tax expense of future periods.
    Department. Department of Transportation.
    Departures completed, percent scheduled. The percent of scheduled 
departures that were performed.
    Departures completed, scheduled. The number of takeoffs performed at 
each airport pursuant to published schedules, exclusive of extra 
sections to scheduled departures.
    Departure performed. A takeoff made at an airport.
    Departure, scheduled. A takeoff scheduled at an airport, as set 
forth in published schedules.
    Depreciation (of depreciable property and equipment). The loss in 
service value, not restored by current maintenance, incurred in the 
course of service from causes known to be in current operation, against 
which the carrier is not protected by insurance, and the effect of which 
can be forecast with reasonable accuracy. The causes of depreciation 
include wear and tear, decay, action of the elements, inadequacy, 
obsolescence, changes in the art, changes in demand, and requirements of 
public authorities.
    Discount (of securities issued or assumed by the air carrier). The 
excess of (1) the par or stated value of securities over (2) the then 
current money value of the consideration received from their sale less 
the amount included for dividends or for interest accrued.
    DOT. Department of Transportation.
    Equipment. Tangible property other than land, structures, and 
improvements.
    Equity security. Any instrument representing ownership shares (for 
example, common, preferred, and other capital stock), or the right to 
acquire (for example, warrants, rights, and call options) or dispose of 
(for example, put options) ownership shares in an enterprise at fixed or 
determinable prices. The term does not encompass preferred stock that by 
its terms either must be redeemed by the issuing enterprise or is 
redeemable at the option of the investor, nor does it include treasury 
stock or convertible bonds.
    Equivalent unit. A new unit substituted for an existing unit that is 
worn out, is damaged beyond repair, or has become inadequate in service, 
the substituted unit having substantially no greater capacity than the 
unit for which substituted.
    Estimated economic life of leased property. The estimated remaining 
period during which the property is expected to be economically usable 
by one or more users, with normal repairs and maintenance, for the 
purpose for which it was intended at the inception of the lease, without 
limitation by the lease term.
    Expense, capital stock. Expenses incurred by or for the air carrier 
in connection with the initial issuance and sale of capital stock 
(exclusive of the sale of reacquired capital stock), such as fees and 
commissions paid to promoters, underwriters, brokers, and salesmen; fees 
for legal services; cost of soliciting subscriptions for capital stock; 
including fees, commissions, and advertising; specific costs of 
obtaining governmental authority for issuance and filing notices 
thereunder; fees and taxes for issuance of capital stock and listing on 
exchanges; and the cost of preparing, engraving, printing, issuing, and 
distributing prospectuses and stock certificates.
    Flight, developmental. A flight for (1) the development of a new 
route either prior or subsequent to certification by the Department of 
Transportation; (2) the extension of an existing route; or (3) the 
integration of a new type of aircraft or service.
    Flight, extra section. A flight, conducted as an integral part of 
scheduled service, that has not been provided for in published schedules 
and is required for transportation of traffic that cannot be 
accommodated on a regularly scheduled flight. Flights made in ferrying 
aircraft to meet schedules, or for similar operational reasons, are not 
extra sections and are classified as nonrevenue flights even if an 
occasional shipment, as a matter of special accommodation, is on board.
    Flight, ferry. A flight for the purpose of returning an aircraft to 
base, equipment equalization, or moving an aircraft to and from a 
maintenance base.
    Flight, paid positioning. A flight for the purpose of positioning an 
empty aircraft in connection with a charter flight for which a specific 
charge is set forth in a tariff or contract for application directly to 
the positioning miles operated. Such flights are considered revenue 
flights for Form 41 reporting purposes.
    Flight, personnel training. A flight for the purpose of obtaining 
flying time for flight personnel or a flight in connection with a 
personnel training program.
    Flight stage. The operation of an aircraft from takeoff to landing. 
For purposes of classifying flight stages as between ``domestic'', 
``territorial'', and ``international'', technical stops are disregarded. 
(See Stops, technical.)
    Freight. Property, other than mail, transported by air.
    Generally accepted accounting principles (GAAP). The body of 
authoritative accounting knowledge governing the recording, presenting 
and disclosing of financial transactions, as incorporated in the 
pronouncements of the Financial Accounting Standards Board.

[[Page 108]]

    Group basis (in depreciation accounting). A plan under which (1) 
depreciation is based upon the application of a single depreciation rate 
to the total book cost of all property included in a given depreciable 
property and equipment account or class, despite differences in service 
life of individual items of property and equipment, (2) the full 
original cost, less any salvage realized, of an item of depreciable 
property or equipment retired is charged to the allowance for 
depreciation regardless of the age of the item, and (3) no gain or loss 
is recognized on the retirement of individual items of property or 
equipment.
    Horsepower, maximum continuous for reciprocating engines. The brake 
horsepower developed in standard atmosphere at a specified altitude and 
under the maximum conditions of crankshaft rotational speed and engine 
manifold pressure, and approved for use during periods of unrestricted 
duration.
    Horsepower, maximum continuous for turbine engines. The brake 
horsepower developed at specified altitudes, atmospheric temperatures, 
and flight speeds and under the maximum conditions of rotor shaft 
rotational speed and gas temperature, and approved for use during 
periods of unrestricted duration.
    Thrust, maximum continuous for turbine engines. The jet thrust 
developed at specified altitudes, atmospheric temperatures, and flight 
speeds and under the maximum conditions of rotor shaft rotational speed 
and gas temperature, and approved for use during periods of unrestricted 
duration.
    Hours, aircraft. The airborne hours of aircraft computed from the 
moment an aircraft leaves the ground until it touches the ground at the 
end of a flight.
    Hours flown, revenue aircraft. The aircraft hours of flights 
performed in revenue service.
    Hours in capitalized projects, aircraft. Aircraft hours applicable 
to ferrying newly acquired aircraft from the factory, to capitalized 
extension and development preoperating projects and to other costs which 
have been capitalized.
    Hours per aircraft per day--carrier's equipment, revenue. Average 
hours of productive use per day in revenue service of reporting 
carrier's equipment determined by dividing (1) Aircraft days assigned to 
service--carrier's equipment into (2) Revenue aircraft hours minus 
Revenue hours on other carrier's interchange equipment plus Total hours 
by others on the carrier's interchange equipment.
    Hours per aircraft per day--carrier's routes, revenue. Average hours 
of productive use per day in revenue service on reporting carrier's 
routes determined by dividing (1) Aircraft days assigned to service-
carrier's routes into (2) Revenue aircraft hours.
    Hours, ramp-to-ramp. The aircraft hours computed from the moment the 
aircraft first moves under it own power for purposes of flight, until it 
comes to rest at the next point of landing.
    Improvement. An addition or alteration to land, a building, or a 
unit of equipment that results in a better piece of property, in the 
sense of greater durability, or in increased productivity or efficiency. 
(See also Modification.)
    Income tax expense. The amount of income taxes (whether or not 
currently payable or refundable) allocable to a period in the 
determination of net income.
    Income taxes. Taxes based on income determined under provisions of 
the United States Internal Revenue Code and foreign, State, and other 
taxes (including franchise taxes) based on income.
    Insurance, self. The assumption by an air carrier of a risk of loss 
or liability arising from an accident or other contingent event.
    Interchange agreement. An agreement under which aircraft of one air 
carrier are utilized to provide one-plane service over its own routes 
and the routes of other air carriers.
    Interperiod tax allocation. The process of apportioning income taxes 
among periods.
    Inventory, perpetual. A book inventory kept in continuous agreement 
with stock on hand by means of a detailed record.
    Investor controlled company (for purposes of applying the equity 
method of accounting). Any business entity in which the accounting air 
carrier is able to exercise significant influence over operating and 
financial policies of the issuing company. Significant influence will be 
presumed, unless established to the contrary by waiver request, with 
ownership of 20 percent or more of the outstanding voting capital stock. 
Ability to exercise influence may be indicated in several ways, such as 
representation on the Board of Directors, participation in policy-making 
processes, material intercompany transactions, interchange of managerial 
personnel, or technological dependency. Investor controlled companies 
shall also be regarded as associated companies for purposes of this 
system of accounts (see also Associated company).
    Item, delayed. An item relating to transactions that occurred during 
a prior accounting period and that requires further accounting treatment 
for a true statement of financial condition or operating results. It 
includes adjustments of errors in the operating revenue, operating 
expense, and other income accounts for prior periods.
    Liability, contingent. A possible source of obligation of an air 
carrier dependent upon the fulfillment of conditions regarded as 
uncertain.
    Load, available. Represents the maximum salable load. It is the 
allowable gross weight less the empty weight, less all justifiable 
aircraft equipment, and less the operating load (consisting of minimum 
fuel load, oil, flight crew, steward's supplies, etc.). For passenger 
aircraft, the available load must not exceed

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the weight of the maximum number of passengers who can be accommodated 
in the seats installed in the aircraft plus the weight of the traffic 
that can be accommodated in the cargo space.
    Load, average revenue. The average total revenue tons carried in 
revenue services, determined by dividing total revenue ton-miles by 
aircraft miles flown in revenue services.
    Load, average revenue passenger. Average number of revenue 
passengers carried in passenger services, determined by dividing revenue 
passenger-miles by aircraft miles flown in revenue passenger services.
    Load factor, over-all revenue. The percent that total revenue ton-
miles (passenger plus nonpassenger) are of available ton-miles in 
revenue services.
    Load factor, revenue passenger. The percent that revenue passenger-
miles are of available seat-miles in revenue passenger services.
    Load, minimum fuel. The minimum quantity of fuel with which an 
aircraft may be dispatched in accordance with the safety operating needs 
of the air carrier.
    Load, salable. (See Load, available.)
    Mail, nonpriority. All mail for which transportation by air is 
provided on a space available basis.
    Mail, priority. All mail for which transportation by air is provided 
on a priority basis.
    Mile. A statute mile (5,280 feet).
    Miles completed, percent scheduled aircraft. The percent of 
scheduled aircraft miles which were performed.
    Miles completed, scheduled aircraft. The aircraft miles performed on 
scheduled flights computed between only those scheduled points actually 
served.
    Miles flown, aircraft. The miles (computed in airport-to-airport 
distances) for each flight stage actually completed, whether or not 
performed in accordance with the scheduled pattern. For this purpose, 
operation to a flag stop is a stage completed even though a landing is 
not actually made. In cases where the interairport distances are 
inapplicable, aircraft miles flown are determined by multiplying the 
normal crusing speed for the aircraft type by the airborne hours.
    Miles flown, nonrevenue aircraft. The aircraft miles flown on 
nonrevenue flights, such as ferry (including empty backhauls to MAC one-
way charters), personnel training, extension and development, and 
abortive revenue flights.
    Miles, revenue aircraft. The aircraft miles flown in revenue 
service.
    Miles, scheduled aircraft. The sum of the airport-to-airport 
distances of all flights scheduled to be performed over the air 
carrier's certificated routes pursuant to published flight schedules. 
Flights listed in the published schedules for operation only as extra 
sections, when traffic warrants, are excluded.
    Modification. An alteration in a structure or unit of equipment that 
changes its design and is made to correct an error, increase production, 
improve efficiency of operation, or for some other reason.
    Obsolescence. The process of becoming out of date due to progress of 
the arts and sciences, changed economic conditions, legislation, etc., 
which ultimately results in the retirement or other disposition of 
property.
    Off-Line. Installations maintained or facilities used for other than 
scheduled certificated air services.
    On-Line. Installations maintained or facilities used in conducting 
scheduled certificated air services.
    Domestic. Flight stages with both terminals within the 50 States of 
the United States and the District of Columbia.
    Territorial. Flight stages with both terminals within territory 
under U.S. jurisdiction where at least one of the terminals is not 
within a State or the District of Columbia.
    International. Flight stages with one or both terminals outside of 
territory under U.S. jurisdiction.
    Operations, systems. The over-all operations of an air carrier 
including all of the operating entities of an air carrier having 
multiple operations.
    Passenger-mile. One passenger transported 1 mile. Passenger-miles 
are computed by multiplying the aircraft miles flown on each flight 
stage by the number of passengers transported on that stage.
    Passenger-mile, nonrevenue. One nonrevenue passenger transported one 
mile.
    Passenger-mile, revenue. One revenue passenger transported one mile.
    Passenger, nonrevenue. A person traveling free or under token 
charges, except those expressly named in the definition of revenue 
passenger; a person traveling at a fare or discount available only to 
employees or authorized persons of air carriers or their agents or only 
for travel on the business of the carriers; and an infant who does not 
occupy a seat. (This definition is for 14 CFR part 241 traffic reporting 
purposes and may differ from the definitions used in other parts by the 
Federal Aviation Administration and the Transportation Security 
Administration for the collection of Passenger Facility Charges and 
Security Fees.)
    The definition includes, but is not limited to following examples of 
passengers when traveling free or pursuant to token charges:
    (1) Directors, officers, employees, and others authorized by the air 
carrier operating the aircraft;
    (2) Directors, officers, employees, and others authorized by the air 
carrier or another carrier traveling pursuant to a pass interchange 
agreement;
    (3) Travel agents being transported for the purpose of familiarizing 
themselves with the carrier's services;

[[Page 110]]

    (4) Witnesses and attorneys attending any legal investigation in 
which such carrier is involved;
    (5) Persons injured in aircraft accidents, and physicians, nurses, 
and others attending such persons;
    (6) Any persons transported with the object of providing relief in 
cases of general epidemic, natural disaster, or other catastrophe;
    (7) Any law enforcement official, including any person who has the 
duty of guarding government officials who are traveling on official 
business or traveling to or from such duty;
    (8) Guests of an air carrier on an inaugural flight or delivery 
flights of newly-acquired or renovated aircraft;
    (9) Security guards who have been assigned the duty to guard such 
aircraft against unlawful seizure, sabotage, or other unlawful 
interference;
    (10) Safety inspectors of the National Transportation Safety Board 
or the FAA in their official duties or traveling to or from such duty;
    (11) Postal employees on duty in charge of the mails or traveling to 
or from such duty;
    (12) Technical representatives of companies that have been engaged 
in the manufacture, development or testing of a particular type of 
aircraft or aircraft equipment, when the transportation is provided for 
the purpose of in-flight observation and subject to applicable FAA 
regulations;
    (13) Persons engaged in promoting air transportation;
    (14) Air marshals and other Transportation Security officials acting 
in their official capacities and while traveling to and from their 
official duties; and
    (15) Other authorized persons, when such transportation is 
undertaken for promotional purpose.
    Passenger, revenue. A passenger for whose transportation an air 
carrier receives commercial remuneration. (This definition is for 14 CFR 
part 241 traffic reporting purposes and may differ from the definitions 
used in other parts by the Federal Aviation Administration and the 
Transportation Security Administration for the collection of Passenger 
Facility Charges and Security Fees.) This includes, but is not limited 
to, the following examples:
    (1) Passengers traveling under publicly available tickets including 
promotional offers (for example two-for-one) or loyalty programs (for 
example, redemption of frequent flyer points);
    (2) Passengers traveling on vouchers or tickets issued as 
compensation for denied boarding or in response to consumer complaints 
or claims;
    (3) Passengers traveling at corporate discounts;
    (4) Passengers traveling on preferential fares (Government, seamen, 
military, youth, student, etc.);
    (5) Passengers traveling on barter tickets; and
    (6) Infants traveling on confirmed-space tickets.
    Passengers transported. Passengers on board each flight stage.
    Person controlling an air carrier. Any person, as defined in 49 
U.S.C. 40102, whom the Department has found, in any proceeding, to 
control an air carrier, or who holds, directly or indirectly, the legal 
or beneficial ownership of more than 50 percent of the outstanding 
voting capital stock or capital of an air carrier, and who does not make 
a proper showing to the Department that he or she does not control the 
carrier despite such stock ownership, shall be deemed to be a person 
controlling the carrier for the purpose of this part. A brokerage firm 
which holds record ownership of securities merely for the convenience of 
the customer beneficially owning the stock shall not be deemed a person 
controlling an air carrier.
    Premium (as applied to securities issued or assumed by the air 
carrier). The excess of (1) the then current money value of the 
consideration received from their sale, less the amount included therein 
for dividends or interest accrued, over (2) their par or stated value.
    Pretax accounting income. Income or loss for a period exclusive of 
related income tax expense.
    Property (as applied to traffic). (See Cargo.)
    Replacement. Substitution of new for existing facilities that are 
worn out, damaged beyond repair, or have become inadequate in service.
    Reporting carrier for T-100 purposes means the air carrier in 
operational control of the flight, i.e., the carrier that uses its 
flight crew under its own FAA operating authority.
    Residual value. The predetermined portion of the cost of a unit of 
property or equipment excluded from depreciation. It shall represent a 
fair and reasonable estimate of recoverable value as at the end of the 
service life over which the property or equipment is depreciated and 
shall give due consideration to the proceeds anticipated from 
disposition of the property or equipment and the extent to which costs 
attaching to property or equipment are otherwise recoverable through 
charges against income.
    Retirement. The permanent withdrawal of assets from services of the 
corporate entity through sale, abandonment, demolition, or other 
disposal.
    Retirement, date of. The date on which property or equipment is 
permanently withdrawn from services of the corporate entity.
    Route, certificated. The route(s) over which an air carrier is 
authorized to provide air transportation by a Certificate of Public

[[Page 111]]

Convenience and Necessity issued by the Department of Transportation 
pursuant to section 401(d) (1) or (2) of the Act.
    Salvage value. The amount received for property retired, less the 
expenses incurred in connection with the sale or in the preparation of 
the property for sale; or, if retained, the amount at which the material 
recovered is charged to materials and supplies or other appropriate 
account.
    Seats available. Installed seats in an aircraft (including seats in 
lounges) exclusive of any seats not offered for sale to the public by 
the carrier; provided that in no instance shall any seat sold be 
excluded from the count of available seats.
    Seats, average available. The average number of seats available for 
passengers, determined by dividing available seat-miles by revenue 
aircraft miles flown in passenger service.
    Seat-miles available, revenue. The aircraft miles flown on each 
flight stage multiplied by the number of seats available for revenue use 
on that stage.
    Section 41103 cargo operations. The carriage, pursuant to 49 U.S.C. 
41103, by aircraft of property and/or mail as a common carrier for 
compensation or hire in commerce between a place in any State of the 
United States, or the District of Columbia, or Puerto Rico, or the U.S. 
Virgin Islands, and a place in any other of those entities, or between 
places in the same State or other entity through the air-space over any 
place outside thereof, or between places within the District of 
Columbia, Puerto Rico, or the U.S. Virgin Islands. This includes 
commerce moving partly by aircraft and partly by other forms of 
transportation, as well as commerce moving wholly by aircraft.
    Segment, service. A pair of points served or scheduled to be served 
by a single stage of at least one flight within any given time period.
    Service, charter. Nonscheduled air transport service in which the 
party receiving transportation obtains exclusive use of an agreed upon 
portion of the total capacity of an aircraft with the remuneration paid 
by the party receiving transportation accruing directly to, and the 
responsibility for providing transportation is that of, the accounting 
air carrier.
    Service, coach (tourist). Transport service specifically established 
for the carriage of passengers at special reduced passenger fares that 
are predicated on both the operation of specifically designated aircraft 
space and a reduction in the quality of service regularly and ordinarily 
provided.
    Service, first class. Transport service established for the carriage 
of passengers moving at either standard fares or premium fares, or at 
reduced fares not predicated upon the operation of specifically 
allocated aircraft space, and for whom standard or premium quality 
services are provided.
    Service life. The period between the date of installation of 
property or equipment and its date of retirement.
    Service, mixed. Transport service for the carriage of both first-
class and coach passengers on the same aircraft.
    Service, nonpassenger. Transport service established for the 
carriage of traffic other than passengers.
    Service, nonscheduled. Includes transport service between points not 
covered by Certificates of Public Convenience and Necessity issued by 
the Department of Transportation to the air carrier; services pursuant 
to the charter or hiring of aircraft; other revenue services not 
constituting an integral part of the services performed pursuant to 
published schedules; and related nonrevenue flights.
    Service, passenger-cargo. Transport service established for the 
carriage of passengers which may also be used jointly for the 
transportation of cargo.
    Service, scheduled. Transport service operated pursuant to published 
flight schedules, including extra sections and related nonrevenue 
flights.
    Service, transport. The operation of facilities for the carriage of 
traffic by air.
    Services, all. The total of scheduled and nonscheduled transport 
services.
    Stop, flag. A point on an air carrier's operating system that is 
scheduled to be served only when traffic is to be picked up or 
discharged.
    Stops, technical. Aircraft landing made for purposes other than 
enplaning or deplaning traffic. For purposes of identifying reporting 
entities, landings made for stopover passengers are regarded as 
technical stops.
    Tariff, published. A publication containing fares and rates 
applicable to the transportation of persons or cargo and rules relating 
to or affecting such fares or rates of transportation, filed with the 
Department of Transportation.
    Taxable income. The excess of revenues over deductions or the excess 
of deductions over revenues to be reported for income tax purposes for a 
period.
    Tax effects. Differentials in income taxes of a period attributable 
to (1) revenue or expense transactions which enter into the 
determination of pretax accounting income in one period and into the 
determination of taxable income in another period, (2) deductions or 
credits that may be carried backward or forward for income tax purposes, 
and (3) adjustments of prior periods (or of the opening balance of 
retained earnings) and direct entries to other stockholders' equity 
accounts which enter into the determination of taxable income in a 
period but which do not enter into the determination of pretax 
accounting income of that period. A permanent

[[Page 112]]

difference does not result in a ``tax effect'' as the term is used in 
this System of Accounts and Reports.
    Ton. A short ton (2,000 pounds).
    Ton-mile. One ton transported 1 mile. Ton-miles are computed by 
multiplying the aircraft miles flown on each flight stage by the number 
of tons transported on that stage.
    Ton-mile, nonrevenue. One ton of nonrevenue traffic transported 1 
mile.
    Ton-mile, passenger. One ton of passenger weight (including all 
baggage) transported 1 mile. (See also Weight, passenger.)
    Ton-mile, revenue. One ton of revenue traffic transported 1 mile.
    Ton-miles available, revenue. The aircraft miles flown on each 
flight stage multiplied by the ton capacity available for use on that 
stage.
    Traffic, deplaned. A count of the number of passengers getting off 
and tons of cargo unloaded from an aircraft. For this purpose, 
passengers and cargo on aircraft leaving a carrier's system on 
interchange flights are considered as deplaning and the interchange 
point; and passengers and cargo moving from one operation to another 
operation of the same carrier, for which separate reports are required 
by the Department of Transportation, are considered as deplaning at the 
junction point.
    Traffic, enplaned. A count of the number of passengers boarding and 
tons of cargo loaded on an aircraft. For this purpose, passengers and 
cargo on aircraft entering a carrier's system on interchange flights are 
considered as enplaning at the interchange point; and passengers and 
cargo moving from one operation to another operation of the same 
carrier, for which separate reports are required by the Department of 
Transportation, are considered as enplaning at the junction point.
    Traffic, nonrevenue. Passengers and cargo transported by air for 
which no remuneration or token service charges are received by the air 
carrier. Airline employees, officers and directors, or other persons, 
except for ministers of religion, who are traveling under reduced-rate 
transportation authorized by 49 U.S.C. 41511(a) and 14 CFR part 223, as 
well as travel agents, cargo agents, and tour conductors traveling at 
reduced fares are also considered nonrevenue traffic.
    Traffic office. A facility where air transportation is sold, and 
related processes of documentation and reservation confirmation are 
performed.
    Traffic, revenue. Passengers and cargo transported by air for which 
remuneration is received by the air carrier. Airline employees, officers 
and directors, or other persons, except for ministers of religion, who 
are traveling under reduced-rate transportation authorized by 49 U.S.C. 
41511(a) and 14 CFR part 223, travel agents, cargo agents, and tour 
conductors traveling at reduced fares, and other passengers and cargo 
carried for token service charges, are not considered as revenue 
traffic.
    Transportation, free. The carriage of any person or cargo (other 
than cargo owned by the air carrier) without compensation.
    Unit basis (in depreciation accounting). A plan under which 
depreciation expenses is accrued upon the basis of the book cost of the 
individual item of property in relation to the service life and salvage 
value of the particular item.
    Value, service. The difference between the book cost and the 
residual value of property and equipment.
    Weight, allowable gross. The maximum gross weight (of the aircraft 
and its contents) which an aircraft is licensed to carry into the air on 
each flight stage.
    Weight, average available. The average capacity available for 
revenue traffic, determined by dividing available ton-miles by aircraft 
miles in revenue service.
    Weight, empty. The weight of the airframe, engines, propellers, and 
fixed equipment of an aircraft. Empty weight excludes the weight of the 
crew and payload, but includes the weight of all fixed ballast, unusable 
fuel supply, undrainable oil, total quantity of engine coolant, and 
total quantity of hydraulic fluid.
    Weight, passenger. For the purposes of this part, a standard weight 
of 200 pounds per passenger (including all baggage) is used for all 
civil operations and classes of service. Other weights may be prescribed 
in specific instances upon the initiative of the Department of 
Transportation or upon a factually supported request by an air carrier.
    Wet-Lease Agreement means an agreement under which one carrier 
leases an aircraft with flight crew to another air carrier.

[ER-755, 37 FR 19726, Sept. 21, 1972, as amended by Amdt. 241-58, 54 FR 
5590, Feb. 89, 1989]

    Editorial Note: For Federal Register citations affecting Section 03, 
see the List of CFR Sections Affected, which appears in the Finding Aids 
section of the printed volume and on GPO Access.



Section 04  Air Carrier Groupings

    (a) All large certificated air carriers are placed into three basic 
air carrier groupings based upon their level of operations and the 
nature of these operations. In order to determine the level of 
operations, total operating revenues for a twelve-month period are used. 
The following operating revenue ranges are used to establish air carrier 
groupings:

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


[[Page 113]]

    For reporting purposes, Group I air carriers are further divided 
into two subgroups: (1) Air carriers with total annual operating 
revenues from $20,000,000 to $100,000,000 and (2) Air carriers with 
total annual operating revenues below $20,000,000.
    (b) Both the criteria for establishing air carrier groupings and the 
assignment of each air carrier to a specific group of carriers will be 
reviewed periodically by the Director, Office of Airline Information, to 
assure the maintenance of appropriate standards for the grouping of 
carriers. When an air carrier's level of operations passes the upper or 
lower limit of its currently assigned carrier grouping, the carrier is 
not automatically transferred to a different group and a new level of 
reporting. The Office of Airline Statistics will issue an updated 
listing of the carrier groups on an annual basis. A carrier may petition 
for reconsideration of its assigned carrier grouping or request a waiver 
from the accounting and reporting requirements that are applicable to a 
particular group under the provisions of section 1-2 of this Uniform 
System of Accounts and Reports.

[Amdt. 241-60, 56 FR 12658, Mar. 27, 1991, as amended at 60 FR 66723, 
Dec. 26, 1995]

                      General Accounting Provisions



Section 1  Introduction to System of Accounts and Reports



Sec. 1-1  Applicability of system of accounts and reports.

    Each large certificated air carrier shall keep its books of account, 
records and memoranda and make reports to the BTS in accordance with 
this system of accounts and reports. The BTS reserves the right, 
however, under the provisions of sections 49 U.S.C. 41701 and 41708, to 
expand or otherwise modify the classes of carriers subject to this 
system of accounts and reports.

[ER-1400, 50 FR 11, Jan. 2, 1985, as amended at 60 FR 66723, Dec. 26, 
1995]



Sec. 1-2  Waivers from this system of accounts and reports.

    A waiver from any provision of this system of accounts or reports 
may be made by the BTS upon its own initiative or upon the submission of 
written request therefor from any air carrier, or group of air carriers, 
provided that such a waiver is in the public interest and each request 
for waiver expressly demonstrates that: existing peculiarities or 
unusual circumstances warrant a departure from a prescribed procedure or 
technique; a specifically defined alternative procedure or technique 
will result in a substantially equivalent or more accurate portrayal of 
operating results or financial condition, consistent with the principles 
embodied in the provisions of this system of accounts and reports; and 
the application of such alternative procedure will maintain or improve 
uniformity in substantive results as between air carriers.

[ER-755, 37 FR 19726, Sept. 21, 1972, as amended at 60 FR 66723, Dec. 
26, 1995]



Sec. 1-3  General description of system of accounts and reports.

    (a) This system of accounts and reports is designed to permit 
limited contraction or expansion to reflect the varying needs and 
capacities of different air carriers without impairing basic accounting 
comparability as between air carriers. In its administration three air 
carrier groups, designated Group I, Group II, and Group III, 
respectively (see section 04), are established by the BTS. This grouping 
will be reviewed from time to time upon petition of individual air 
carriers or by initiative of the BTS with the view of a possible 
regrouping of the air carriers.
    (b) Under the system of accounts prescribed, balance sheet elements 
are accounted for by all air carrier groups within a fixed uniform 
pattern of specific accounts. All profit and loss elements are accounted 
for within specific objective accounts established for each air carrier 
group resulting from dual classifications, designated for each air 
carrier group, which are descriptive of both basic areas of financial 
activity, or functional operation, and objective served. The profit and 
loss elements of the three air carrier groups can be reduced to broad 
objectives and general or functional classifications which are 
comparable for all air carrier groups. Both balance sheet and profit and 
loss accounts and account groupings are designed, in general, to embrace 
all activities, both air transport and other than air transport, in 
which the air carrier engages and provide for the separation of elements 
identifiable exclusively with other than air transport activities. 
Profit and loss elements which

[[Page 114]]

are recorded during the current accounting year are subclassified as 
between (1) those which relate to the current accounting year and 
adjustments of a recurrent nature applicable to prior accounting years, 
and (2) extraordinary items of material magnitude.
    (c) In order to afford air carriers as much flexibility and freedom 
as possible in establishing ledger and subsidiary accounts to meet their 
individual needs, a minimum number of account subdivisions have been 
prescribed in this Uniform System of Accounts. It is intended, however, 
that each air carrier, in maintaining its accounting records, will 
provide subaccount and subsidiary account segregations of accounting 
elements which differ in nature of accounting characteristics, in a 
manner which will render individual elements readily discernible and 
traceable throughout the accounting system, and will provide for 
relating profit and loss elements to applicable balance sheet 
counterparts.

[ER-755, 37 FR 19726, Sept. 21, 1972, as amended at 60 FR 66723, Dec. 
26, 1995]



Sec. 1-4  System of accounts coding.

    (a) A four digit control number is assigned for each balance sheet 
and profit and loss account. Each balance sheet account is numbered 
sequentially, within blocks, designating basic balance sheet 
classifications. The first two digits of the four digit code assigned to 
each profit and loss account denote a detailed area of financial 
activity or functional operation. The first two digits, thus assigned to 
each profit and loss account, are numbered sequentially within blocks, 
designating more general classifications of financial activity and 
functional operation. The second two digits assigned to profit and loss 
accounts denote objective classifications.
    (b) A fifth digit, appended as a decimal, has been assigned for 
internal control by the BTS of prescribed subdivisions of the primary 
objective balance sheet and profit and loss classifications. A different 
fifth digit code number from that assigned by the BTS may be adopted for 
internal recordkeeping by the air carrier provided the prescribed 
subclassification of objective accounts is not impaired and the code 
number assigned by the BTS is employed in reporting to the BTS on Form 
41 Reports.

[ER-755, 37 FR 19726, Sept. 21, 1972, as amended at 60 FR 66723, Dec. 
26, 1995]



Sec. 1-5  Records.

    (a) The general books of account and all books, records, and 
memoranda which support in any way the entries therein shall be kept in 
such manner as to provide at any time full information relating to any 
account. The entries in each account shall be supported by such detailed 
information as will render certain the identification of all facts 
essential to a verification of the nature and character of each entry 
and its proper classification under the prescribed Uniform System of 
Accounts. Registers, or other appropriate records, shall be maintained 
of the history and nature of each note receivable and each note payable.
    (b) The books and records referred to herein include not only 
accounting records in a limited technical sense, but all other records 
such as organization tables and charts, internal accounting manuals and 
revisions thereto, minute books, stock books, reports, cost 
distributions and other accounting work sheets, correspondence, 
memoranda, etc., which may constitute necessary links in developing the 
history of, or facts regarding, any accounting or financial transaction.
    (c) All books, records and memoranda shall be preserved and filed in 
such manner as to readily permit the audit and examination thereof by 
representatives of the DOT. All books, records, and memoranda shall be 
housed or stored in such manner as to afford protection from loss, 
theft, or damage by fire, flood or otherwise and no such books and 
records shall be destroyed or otherwise disposed of, except in 
conformance with 14 CFR part 249 for the preservation of records.

[ER-755, 37 FR 19726, Sept. 21, 1972, as amended at 60 FR 66723, Dec. 
26, 1995]



Sec. 1-6  Accounting entities.

    (a) Separate accounting records shall be maintained for each air 
transport entity for which separate reports to the BTS are required to 
be made by

[[Page 115]]

sections 21(g) and for each separate corporate or organizational 
division of the air carrier. For purposes of this Uniform System of 
Accounts and Reports, each nontransport entity conducting an activity 
which is not related to the air carrier's transport activities and each 
transport-related activity or group of activities qualifying as a 
nontransport venture pursuant to paragraph (b) of this section, whether 
or not formally organized within a distinct organizational unit, shall 
be treated as a separately operated organizational division; except that 
provisions of this paragraph and paragraph (b) shall not apply to 
leasing activities.
    (b) As a general rule, any activity or group of activities 
comprising a transport-related service provided for in transport-related 
revenue and expense accounts 09 through 18 shall be considered a 
separate nontransport venture under circumstances in which either: (1) A 
separate corporate or legal entity has been established to perform such 
services, (2) the aggregate annual revenue rate, as determined in 
section 2-1(d), during either of the prior two years exceeds the greater 
of $1 million per annum or one percent of the air carrier's total annual 
transport revenues, or (3) the aggregate annual expense rate, as 
determined in section 2-1(d), during either of the prior two years 
exceeds the greater of $1 million or one percent of the carrier's total 
annual operating expenses: Provided, That revenues and expenses from in-
flight sales, and interchange sales shall be considered related to air 
transportation and accounted for accordingly, regardless of the revenue 
or expense standard set forth above.
    (c) The records for each required accounting entity shall be 
maintained with sufficient particularity to permit a determination that 
the requirements of section 2-1 have been complied with.

[ER-755, 37 FR 19726, Sept. 21, 1972, as amended by ER-841, 39 FR 11994, 
Apr. 2, 1974; ER-1022, 42 FR 46495, Sept. 15, 1977; ER-1027, 42 FR 
60127, Nov. 25, 1977; 60 FR 66723, Dec. 26, 1995]



Sec. 1-7  Interpretation of accounts.

    To the end that uniform accounting may be maintained, questions 
involving matters of accounting significance which are not clearly 
provided for should be submitted to the Director, Office of Airline 
Information, K-25, Bureau of Transportation Statistics, for explanation, 
interpretation, or resolution.

[Amdt. 241-58, 54 FR 5591, Feb. 6, 1989, as amended at 60 FR 66723, Dec. 
26, 1995]



Sec. 1-8  Address for reports and correspondence.

    All reports required under this part and related correspondence 
shall be addressed to: Office of Airline Information, K-25, Room 4125, 
U.S. Department of Transportation, 400 Seventh St., SW., Washington, DC 
20590.

[[Amdt. 241-58, 54 FR 5592, Feb. 6, 1989, as amended at 60 FR 66723, 
Dec. 26, 1995]



Section 2  General Accounting Policies



Sec. 2.1  Generally accepted accounting principles.

    (a) The accounting provisions contained in this part are based on 
generally accepted accounting principles (GAAP). Persons subject to this 
part are authorized to implement, as prescribed by the Financial 
Accounting Standards Board, newly issued GAAP pronouncements until and 
unless the Director, Office of Airline Information (OAI), issues an 
Accounting Directive making an initial determination that implementation 
of a new pronouncement would adversely affect the Department's programs.
    (b) The Director, OAI, shall review each newly issued GAAP 
pronouncement to determine its affect on the Department's regulatory 
programs. If adopting a specific change in GAAP would adversely affect 
the Department's programs, the Director will issue the results of the 
review in the form of an Accounting Directive. The directive will state 
the reasons why the particular change should not be incorporated in the 
uniform system of accounts and contain accounting guidance for 
maintaining the integrity of the Department's air carrier accounting 
provisions.
    (c) Objections and comments relating to the Department's decision 
not to implement a change in generally accepted principles may be 
addressed to Director, Office of Airline Information,

[[Page 116]]

K-25, Room 4125, U.S. Department of Transportation, 400 Seventh St., 
SW., Washington, DC 20590. If significant objections are raised urging 
adoption of a particular GAAP pronouncement, the Department will 
institute a rulemaking.

[[Amdt. 241-58, 54 FR 5592, Feb. 6, 1989, as amended at 60 FR 66723, 
Dec. 26, 1995]



Sec. 2-2  Basis of allocation between entities.

    (a) The provisions of this section shall apply to each person 
controlling an air carrier, each person controlled by the air carrier, 
as well as each transport entity and organizational division of the air 
carrier for which separate records must be maintained pursuant to 
section 1-6.
    (b) Each transaction shall be recorded and placed initially under 
accounting controls of the particular air transport entity or 
organizational division of the air carrier or member of an affiliated 
group to which directly traceable. If applicable to two or more 
accounting entities, a proration shall be made from the entity of 
original recording to other participating entities on such basis that 
the statements of financial condition and operating results of each 
entity are comparable to those of distinct legal entities. The 
allocations involved shall include all debits and credits associated 
with each entity.
    (c) For purposes of this section, investments by the air carrier in 
resources or facilities used in common by the regulated air carrier and 
those transport-related revenue services defined as separate 
nontransport ventures under section 1-6(b) shall not be allocated 
between such entities but shall be reflected in total in the appropriate 
accounts of the entity which predominately uses those investments. Where 
the entity of predominate use is a nontransport venture, the air carrier 
shall reflect the investment in account 1510.3, Advances to Associated 
Companies.
    (d) For purposes of this Uniform System of Accounts and Reports, all 
revenues shall be assigned to or apportioned between accounting entities 
on bases which will fully recognize the services provided by each 
entity, and expenses, or costs, shall be apportioned between accounting 
entities on such bases as will result: (1) With respect to transport-
related services, in the assignment thereto of proportionate direct 
overheads, as well as direct labor and materials, of the applicable 
expense functions prescribed by this system of accounts and reports, and 
(2) with respect to separate ventures, in the assignment thereto of 
proportional general and administrative overheads as well as the direct 
overheads, labor, and materials.

[ER-755, 37 FR 19726, Sept. 21, 1972, as amended by ER-841, 39 FR 11994, 
Apr. 2, 1974; ER-1401, 50 FR 238, Jan. 3, 1985. Redesignated and further 
amended by Amdt. 241-58, 54 FR 5592, Feb. 6, 1989]



Sec. 2-3  Distribution of revenues and expenses within entities.

    (a) Revenues and expenses attributable to a single natural objective 
account or functional classification shall be assigned accordingly.
    (b) Revenue and expense items which are common to two or more 
natural objective accounts shall be recorded in the objective accounts 
to which they predominantly relate.
    (c) Expense items contributing to more than one function shall be 
charged to the general overhead functions to which applicable except 
that where only incidental contribution is made to more than a single 
function an item may be included in the function to which primarily 
related, provided such function is not distorted by including an 
aggregation of amounts applicable to other functions. When assignment of 
expense items on the basis of the primary activity to which related does 
not in the aggregate result in a fair presentation of the expenses 
applicable to each function, apportionment shall be made between 
functions based upon a study of the contribution to each function during 
a representative period.

[ER-755, 37 FR 19726, Sept. 21, 1972. Redesignated by Amdt. 241-58, 54 
FR 5592, Feb. 6, 1989]



Sec. 2-4  Accounting period.

    (a) The accounting year of each air carrier subject to this Uniform 
System

[[Page 117]]

of Accounts shall be the calendar year unless otherwise approved by the 
BTS.
    (b) Each air carrier shall keep its financial accounts and records 
on a full accrual basis for each quarter so that all transactions, as 
nearly as may reasonably be ascertained, shall be fully reflected in the 
air carrier's books for the quarter in which revenues have been earned 
and the costs attaching to the revenues so earned in each quarter have 
been incurred independently of the incidence of sales or purchases and 
settlement with debtors or creditors.
    (c) Expenditures incurred during the current accounting year which 
demonstrably benefit operations to be performed during subsequent 
accounting years to a significant extent shall be deferred and amortized 
to the period in which the related operations are performed when of 
sufficient magnitude to distort the accounting results of the year in 
which incurred.
    (d) Expenditures charged directly or amortized to operations within 
one accounting year shall not be reversed in a subsequent accounting 
year and reamortized or charged directly against operations of 
subsequent years except that retroactive adjustments are permitted where 
necessary to conform with adjustments required by the DOT for ratemaking 
purposes.

[ER-755, 37 FR 19726, Sept. 21, 1972, as amended by ER-1027, 42 FR 
60127, Nov. 25, 1977; ER-1188, 45 FR 48870, July 22, 1980; 60 FR 66723, 
66725, Dec. 26, 1995]



Sec. 2-5  Revenue and accounting practices.

    (a) Revenue accounting practices shall conform to the provisions of 
account 2160, Air Traffic Liability.
    (b) Each route air carrier shall physically verify the reliability 
of its passenger revenue accounting practice at least once each 
accounting year.
    (c) For those carriers who use the yield or average-fare method to 
determine earned revenue, the analysis supporting the verification shall 
include:
    (1) The cutoff date for the liability to be verified; such cutoff 
date shall be at the end of a calendar month.
    (2) The number of months after the cutoff date during which 
documents were examined to verify the liability; the number of months 
after the cutoff date during which documents are examined shall not 
exceed the maximums set forth below:

------------------------------------------------------------------------
                                                                Maximum
                      Class of carrier                        months \1\
------------------------------------------------------------------------
TWA.........................................................          18
Trunks (except TWA).........................................          12
All other route air carriers................................           6
------------------------------------------------------------------------
\1\ Applies only to carriers on a yield or average-fare basis.

    (3) The nature of the documents which were examined for purposes of 
the verification.
    (4) The totals for each of the various types of documents examined, 
on actual or sampling basis.
    (5) A description of the sampling technique and conversion to 
totals, if sampling was employed.
    (6) The amount and basis for all estimates employed in the 
verification.
    (7) The amount of resulting adjustments and the quarter in which 
such adjustments were, or are to be, made in the accounts.
    (d) For those carriers who use the sales-lift match method to 
determine earned revenue, the analysis supporting the physical inventory 
verification shall include:
    (1) The cutoff date for the liability to be verified; such cutoff 
date shall be at the end of a calendar month.
    (2) A trial balance as of the cutoff date of all subaccounts 
supporting the Air Traffic Liability control account; the subsidiary 
trial balance must agree with the Air Traffic Liability control account 
or a reconciliation statement furnished.
    (3) A statement to the effect that a sales listing of the value of 
all unmatched auditor coupons has been compiled and compared to the 
general ledger control figure; the statement required by this 
subparagraph shall indicate whether or not the value of the unmatched 
coupons is in agreement with the general ledger. If the sales listing is 
not in agreement with the Air Traffic Liability control account, the 
amount of such difference shall be shown on such statement.

[ER-948, 41 FR 12290, Mar. 25, 1976, as amended by ER-1401, 50 FR 238, 
Jan. 3, 1985. Redesignated at Amdt. 241-58, 54 FR 5592, Feb. 6, 1989; 60 
FR 66725, Dec. 26, 1995]

[[Page 118]]

                      Balance Sheet Classifications



Section 3  Chart of Balance Sheet Accounts

                     [See footnotes at end of table]
------------------------------------------------------------------------
                                                General classification
               Name of account               ---------------------------
 
------------------------------------------------------------------------
Current assets:
  Cash......................................  ............        1010
  Short-term investments....................  ............        1100
  Notes receivable..........................  ............        1200
  Accounts receivable.......................  ............        1270
  Allowance for uncollectible accounts......  ............        1290
  Spare parts and supplies..................  ............        1300
  Allowance for obsolescence--Spare parts     ............        1311
   and supplies.............................
  Prepaid items.............................  ............        1410
  Other current assets......................  ............        1420
Investments and special funds:
  Investments in associated companies.......  ............        1510
  Investments in investor controlled          ............        1510.1
   companies................................
  Investments in other associated companies.  ............        1510.2
  Advances to associated companies..........  ............        1510.3
  Other investments and receivables.........  ............        1530
  Special funds.............................  ............        1550
Property and equipment......................  ............   1600-1700
                                             ---------------------------
                                               Operating    Nonoperat-
                                              ............         ing
                                             ---------------------------
Airframes...................................        1601          1701
  Airframes.................................        1601.1        1701.1
  Unamortized airframe overhauls............        1601.2        1701.2
Aircraft engines............................        1602          1702
  Aircraft engines..........................        1602.1        1702.1
  Unamortized aircraft engine overhauls.....        1602.2        1702.2
Improvements to leased flight equipment.....        1607          1707
Flight equipment rotable parts and                  1608          1708
 assemblies.................................
  Airframe parts and assemblies.............    \1\ 1608.1    \1\ 1708.1
  Aircraft engine parts and assemblies......    \1\ 1608.5    \1\ 1708.5
  Other parts and assemblies................    \1\ 1608.9    \1\ 1708.9
Flight equipment............................        1609          1709
Allowance for depreciation:
  Airframes.................................        1611          1711
  Aircraft engines..........................        1612          1712
  Improvements to leased flight equipment...        1617          1717
  Flight equipment rotable parts and                1618          1718
   assemblies...............................
Flight equipment airworthiness allowance....    \2\ 1629      \2\ 1729
Equipment...................................        1630          1730
Furniture, fixtures and office equipment....        1636          1736
Improvements to leased buildings and                1639          1739
 equipment..................................
                                             ---------------------------
                                                General classification
                                             ---------------------------
Buildings...................................        1640          1740
  Maintenance buildings and improvements....        1640.1        1740.1
  Other buildings and improvements..........        1640.9        1740.9
Ground property and equipment...............        1649          1749
Allowance for depreciation:
  Equipment.................................        1650          1750
  Improvements to leased buildings and              1654          1754
   equipment................................
  Furniture, fixtures, and office equipment.        1656          1756
  Buildings.................................        1660          1760
    Maintenance buildings and improvements..        1660.1        1760.1
    Other buildings and improvements........        1660.9        1760.9
Allowance for depreciation of flight                1668          1768
 equipment and ground property and
 equipment, and amortization of overhaul and
 airworthiness costs........................
Land........................................        1679          1779
Equipment purchase deposits and advance             1685          1785
 payments...................................
Construction work in progress...............        1689          1789
Leased property under capital leases........        1695          1795
  Capital leases--flight equipment..........        1695.1        1795.1
  Capital leases--other property and                1695.2        1795.2
   equipment................................
Leased property under capital leases,               1696          1796
 accumulated amortization...................
  Accumulated amortization--capitalized             1696.1        1796.1
   flight equipment.........................
  Accumulated amortization--capitalized             1696.2        1796.2
   other property and equipment.............
Property on operating-type lease to others    ............        1797
 and property held for lease................
Property on operating-type lease to others    ............        1798
 and property held for lease, accumulated
 depreciation...............................
Other assets:
  Long-term prepayments.....................  ............        1820
  Unamortized developmental and preoperating  ............        1830
   costs....................................
  Other assets and deferred charges.........  ............        1890
Current liabilities:
  Current maturities of long-term debt......  ............        2000
  Notes payable:
    Banks...................................  ............        2005
    Other...................................  ............        2015
  Trade accounts payable....................  ............        2021
  Accounts payable--other...................  ............        2025
  Current obligations under capital leases..  ............        2080
  Accrued salaries, wages...................  ............        2110
  Accrued vacation liability................  ............        2120
  Accrued interest..........................  ............        2125

[[Page 119]]

 
  Accrued taxes.............................  ............        2130
  Dividends declared........................  ............        2140
  Air traffic liability.....................  ............        2160
  Other current liabilities.................  ............        2190
Noncurrent liabilities:
  Long-term debt............................  ............        2210
  Advances from associated companies........  ............        2240
  Pension liability.........................  ............        2250
  Noncurrent obligations under capital        ............        2280
   leases...................................
  Other noncurrent liabilities..............  ............        2290
Deferred credits:
  Deferred income taxes.....................  ............        2340
  Deferred investment tax credits...........  ............        2345
  Other deferred credits....................  ............        2390
Stockholders' equity:
  Preferred stock...........................  ............        2820
  Common stock..............................  ............        2840
  Additional capital invested...............  ............        2890
  Premium on capital stock..................  ............        2890.1
  Discount on capital stock.................  ............        2890.2
  Other capital stock transactions..........  ............        2890.3
  Retained earnings.........................  ............        2900
  Subscribed and unissued stock.............        2860
  Treasury stock............................  ............        2990
------------------------------------------------------------------------
\1\ Prescribed for group II and group III air carriers only.
\2\ At the option of the air carrier, these accounts may be assigned
  Nos. 2629 and 2729, respectively, for accounting purposes.
 
Note: Digits to right of decimals and italicized codes established for
  BTS control purposes only.


[ER-1401, 50 FR 239, Jan. 3, 1985, as amended by Amdt. 248-58, 54 FR 
5592, Feb. 6, 1989; 60 FR 66723, Dec. 26, 1995]



Section 4  General

    (a) The balance sheet accounts are designed to show the financial 
condition of the air carrier as at a given date, reflecting the asset 
and liability balances carried forward subsequent to the closing or 
constructive closing of the air carrier's books of account.
    (b) The balance sheet accounts prescribed in this system of accounts 
for each air carrier group are set forth in Section 3, Chart of Balance 
Sheet Accounts. The balance sheet elements to be included in each 
account are presented in section 6.

[ER-755, 37 FR 19726, Sept. 21, 1972, as amended by Amdt. 241-58, 54 FR 
5592, Feb. 6, 1989]



Section 5  [Reserved]



Section 6  Objective Classification of Balance Sheet Elements

    Source: ER-980, 42 FR 29, Jan. 3, 1977, unless otherwise noted.

                             Current Assets

1010 Cash.
    (a) Record here all general and working funds available on demand as 
of the date of the balance sheet which are not formally restricted or 
earmarked for specific objectives. Funds deposited for special purposes 
which are to be satisfied within one year shall be included in account 
1100 Short-term Investments and funds restricted as to general 
availability, which are not offset by current liabilities, shall be 
included in account 1550 Special Funds.
    (b) Each air carrier shall subdivide this account in such manner 
that the balance can be readily segregated as between balances in United 
States currency and the balances in each foreign currency.
1100 Short-term Investments.
    (a) Record here the cost of short-term investments such as special 
deposits and United States Government securities, any other temporary 
cash investments, and the allowance for unrealized gain or loss on 
current marketable equity securities.
    (b) Special deposits for more than one year, not offset by current 
liabilities, shall not be included in this account but in account 1550 
Special Funds.
    (c) This account should be charged or credited for discount or 
premium on United States Government securities or other securities which 
should be amortized to profit and loss account 80 Interest Income.
1200 Notes Receivable.
    (a) Record here current notes receivable including those from 
associated companies, company personnel, and all other sources.
    (b) Balances of notes payable to associated companies shall not be 
offset against amounts carried in this account. Balances with associated 
companies which are not normally settled

[[Page 120]]

currently shall not be included in this account but in balance sheet 
account 1510.3 Advances to Associated Companies.

[ER-980, 42 FR 29, Jan. 3, 1977, as amended by ER-1401, 50 FR 241, Jan. 
3, 1985]
1270 Accounts Receivable.
    (a) Record here current accounts receivable including those due from 
the United States Government, foreign governments, associated companies, 
company personnel, and other amounts due for the performance of air 
transportation.
    (b) Amounts due from the United States Government shall be 
maintained in such fashion as will clearly and separately identify 
service mail pay receivables, subsidy receivables and other than mail 
transportation receivables.
    (c) Amounts due for the performance of air transportation shall 
include gross amounts due whether settled through airline clearing 
houses or with individual carriers. Amounts payable collected as agent 
shall not be credited to this account, but should be included in account 
2190 Other Current Liabilities.
    (d) Balances payable to associated companies shall not be offset 
against amounts carried in this account. Balances with associated 
companies which are not normally settled currently shall not be included 
in this account but in balance sheet account 1510.3 Advances to 
Associated Companies.

[ER-980, 42 FR 29, Jan. 3, 1977, as amended by ER-1401, 50 FR 241, Jan. 
3, 1985]
1290 Allowance for Uncollectible Accounts.
    (a) Record here accruals for estimated losses from uncollectible 
accounts.
    (b) All accounts against which allowances have been established 
shall be examined quarterly for the purpose of redetermining the basis 
of accruals to be applied to subsequent accounting periods and the 
reasonableness of allowances already provided.
1300 Spare parts and supplies.
    (a) Record here the cost of:
    (1) Flight equipment replacement parts of a type which ordinarily 
would be recurrently expended and replaced rather than repaired and 
reused;
    (2) Unissued fuel inventories for use in the overall or system 
operations of the carrier. Adjustments of inventories for aircraft fuel 
due to retroactive price increases and decreases shall not be entered in 
this account but in profit and loss account 45, Aircraft Fuels and Oils; 
and
    (3) Unissued and unapplied materials and supplies held in stock such 
as unissued shop materials, expendable tools, stationery and office 
supplies, passenger service supplies, and restaurant and food service 
supplies.
    (b) Costs paid by the air carrier such as transportation charges and 
customs duties; excise, sales, use and other taxes; special insurance; 
and other charges applicable to the cost of spare parts and supplies 
shall be charged to this account when they can be definitely allocated 
to specific items or units of property. If such costs cannot be so 
allocated, or if of minor significance in relation to the cost of such 
property, such amounts may be charged to balance sheet account 1890 
Other Assets and Deferred Charges and cleared either by a suitable 
``loading charge'' as the parts are used or by current charges to 
appropriate expense or property accounts; so long as the method of 
application does not cause material distortion in operating expenses 
from one accounting period to another.
    (c) Reusable spare parts and supplies recovered in connection with 
construction, maintenance, or retirement of property and equipment shall 
be included in this account at fair and reasonable values but in no case 
shall such values exceed original cost. Recoveries of normally reparable 
and reusable parts of a type for which losses in value may be covered on 
a practical basis through valuation allowance provisions shall be 
included in this account on an original cost basis. Scrap and nonusable 
parts, expensed from this account and recovered, shall be included at 
net amounts realizable therefrom with contra credit to the expense 
accounts initially charged.
    (d) The cost of rotable parts and assemblies of material value 
included in

[[Page 121]]

this account which ordinarily are repaired and reused and possess a 
service life approximating that of the primary property types to which 
related shall not be recorded in this account but in balance sheet 
account 1608 Flight Equipment Rotable Parts and Assemblies. For purposes 
of identifying rotable parts and assemblies of insignificant unit value 
which may be included in this account, a reasonable maximum unit value 
limitation may be established.
    (e) Any losses sustained or gains realized upon the abandonment or 
other disposition of flight equipment expendable parts shall be taken up 
as capital gains or losses in the periods in which sustained or 
realized. (See balance sheet account 1311.)
    (f) Items in this account shall be charged to appropriate expense 
accounts as issued for use. Profit and loss on sales of inventory items 
as a routine service to others shall be included in profit and loss 
accounts 14 General Service Sales--Associated Companies, or 16 General 
Service Sales--Outside, and the parts sold shall be removed from this 
accounts at full cost.
    (g) Materials and supplies held in small supply and purchased 
currently may be charged to appropriate expense accounts when purchased.
    (h) An allowance for inventory adjustment applicable to materials 
and supplies is prohibited. Items in this account shall be charged to 
appropriate expense accounts as issued for use.
    (i) Subaccounts shall be established within this account for the 
separate recording of each class or type of spare parts and supplies.

[ER-980, 42 FR 29, Jan. 3, 1977, as amended by ER-1401, 50 FR 241, Jan. 
3, 1985]
1311 Allowance for Obsolescence--Spare Parts and Supplies.
    (a) Accruals shall be made to this account when allowances are 
established for losses in the value of expendable parts. The accruals to 
this account shall be made by charges to profit and loss account 73 
Provisions for Obsolescence and Deterioration--Expendable Parts. Records 
shall be maintained with sufficient detail to permit association of the 
allowances with each class or type of expendable parts.
    (b) The accruals to this account shall be based upon a 
predetermination by the air carrier of that portion of the total 
inventory of each class and type of expendable parts against which an 
allowance for loss is to be accrued. Expendable parts issued for use in 
operations shall be charged to operating expenses as issued and shall 
not be charged to this account. If at the end of any calendar year the 
amount of the allowance exceeds the product of the applicable inventory 
for the year determined consistently on a year-end or average basis, and 
the sum of the standard percentage accrual rates for all prior years 
including the current, the allowance shall be adjusted downward by the 
amount of the excess. Such adjustments shall be charged to this account 
and credited to profit and loss account 73 Provisions for Obsolescence 
and Deterioration--Expendable Parts.
    (c) Where changing conditions necessitate a revision or adjustment 
in rates of accrual, such revision or adjustment shall be made 
applicable to current and subsequent accounting periods and shall not be 
applied retroactively to prior accounting periods. Following retirement 
of airframe or aircraft engine types to which related, any balance 
remaining in this account shall be offset against related balances 
carried in balance sheet account 1300 Spare Parts and Supplies and the 
net cleared to profit and loss accounts 88.5 Capital Gains and Losses--
Operating Property or 88.6 Capital Gains and Losses--Other.

[ER-980, 42 FR 29, Jan. 3, 1977, as amended by ER-1401, 50 FR 241, Jan. 
3, 1985]
1410 Prepaid Items.
    Record here prepayments of obligations which if not paid in advance 
would require the expenditure of working capital within one year, such 
as prepaid rent, insurance, taxes, interest, etc. Unexpired insurance 
and miscellaneous prepayments applicable to periods extending beyond one 
year where significant in amount shall be charged to balance sheet 
account 1820 Long-Term Prepayments.

[[Page 122]]

1420 Other Current Assets.
    Record here current assets not provided for in balance sheet 
accounts 1010 to 1410, inclusive.

                      Investments and Special Funds

1510 Investments in Associated Companies.
    (a) Record here net investments in associated companies.
    (b) [Reserved]
    (c) This account shall be subdivided by all air carrier groups as 
follows:

[ER-980, 42 FR 29, Jan. 3, 1977, as amended by ER-1027, 42 FR 60128, 
Nov. 25, 1977; ER-1188, 45 FR 48870, July 22, 1980]

          1510.1 Investments in Investor Controlled Companies.

    Record here the cost of investments in investor controlled companies 
except that permanent impairment in the value of securities may be 
reflected through charges to profit and loss classification 8100, 
Nonoperating Income or Expense--Net. This account shall also include the 
equity in undistributed earnings or losses since acquisition. In the 
event dividends are declared by such companies, the air carrier shall 
credit this account for its share in dividends declared and debit 
balance sheet account 1270 Accounts Receivable. This account shall 
separately state: (a) The cost of such investments at date of 
acquisition and (b) the equity in undistributed earnings or losses since 
acquisition.

[Amdt. 241-58, 54 FR 5592, Feb. 6, 1989]

            1510.2 Investments in Other Associated Companies.

    Record here the cost of investments in associated companies other 
than investor controlled companies. Cost shall represent the amount paid 
at the date of acquisition without regard to subsequent changes in the 
net assets through earnings or losses of such associated companies. 
However, permanent impairment in the value of securities may be 
reflected through charges to profit and loss classification 8100, 
Nonoperating Income or Expense--Net.

[Amdt. 241-58, 54 FR 5592, Feb. 6, 1989]

                1510.3 Advances to Associated Companies.

    (a) Record here advances, loans, and other amounts not settled 
currently with investor controlled and other associated companies and 
nontransport divisions. Balances receivable from and payable to 
different associated companies and different nontransport divisions 
shall not be offset.
    (b) In the case of nontransport divisions three subaccounts shall be 
maintained:
    (1) Net investment;
    (2) current net profit or loss; and
    (3) current accounts receivable or payable between the air carrier 
and the nontransport division.
    (c) Each nontransport division shall be accounted for separately in 
net amounts receivable which shall be included in this account or net 
amounts payable which shall be included in balance sheet account 2240 
Advances from Associated Companies.

[ER-980, 42 FR 29, Jan. 3, 1977. Redesignated by ER-1401, 50 FR 241, 
Jan. 3, 1985]
1530 Other Investments and Receivables.
    Record here notes and accounts receivable not due within one year, 
investments in securities issued by others, investments in leveraged 
leases, the noncurrent net investment in direct financing and sales-type 
leases, and the allowance for unrealized gain or loss on noncurrent 
marketable equity securities. Securities held as temporary cash 
investments shall not be included in this account but in balance sheet 
account 1100 Short-Term Investments. Investments in and receivables from 
associated companies which are not settled currently shall be included 
in balance sheet account 1510 Investments in Associated Companies.

[Amdt. 241-58, 54 FR 5592, Feb. 6, 1989]
1550 Special Funds.
    Record here special funds not of a current nature and restricted as 
to general availability. Include items such as sinking funds, cash and 
securities posted with courts of law, employee's funds for purchase of 
capital stock, pension funds under the control of the air carrier and 
equipment purchase funds.

                    Operating Property and Equipment

    ``Operating Property and Equipment'' shall encompass items used in 
air transportation services and services related thereto.
1601 Airframes.
    (a) Record here the total cost to the air carrier of airframes of 
all types and classes together with the full complement of instruments, 
appurtenances and fixtures comprising complete airframes including 
accessories necessary

[[Page 123]]

to the installation of engines and flight control and transmission 
systems, except as specifically provided otherwise in accounts 1602 and 
1607. Also record here in separate subaccounts the costs of airframes 
overhauls accounted for on a deferral and amortization basis.
    (b) Airframes designed to permit multiple payload configurations 
shall be recorded in this account at the total cost of the maximum 
complement of instruments, appurtenances, and fixtures used in the air 
carrier's operations.
    (c) This account shall be subdivided as follows by all air carriers:

                            1601.1 Airframes.

                 1601.2 Unamortized Airframe Overhauls.

[ER-980, 42 FR 29, Jan. 3, 1977, as amended by Amdt. 241-58, 54 FR 5593, 
Feb. 6, 1989]
1602 Aircraft Engines.
    (a) Record here the total cost to the air carrier of complete units 
of aircraft engines of all types and classes together with a full 
complement of accessories, appurtenances, parts and fixtures comprising 
fully assembled engines as delivered by the engine manufacturer ready 
for operation in test but without the accessories necessary to its 
installation in airframes. Also record here in separate subaccounts the 
costs of aircraft engine overhauls accounted for on a deferral and 
amortization basis.
    (b) This account shall be subdivided as follows by all air carriers:

                        1602.1 Aircraft Engines.

              1602.2 Unamortized Aircraft Engine Overhauls.

[ER-980, 42 FR 29, Jan. 3, 1977, as amended by Amdt. 241-58, 54 FR 5593, 
Feb. 6, 1989]
1607 Improvements to Leased Flight Equipment.
    Record here the total cost incurred by the air carrier for 
modification, conversion or other improvements to leased flight 
equipment. Also record here, in separate subaccounts, the costs of 
airframe and aircraft engine overhauls of leased aircraft accounted for 
on a deferral and amortization basis.

[Amdt. 241-58, 54 FR 5593, Feb. 6, 1989]
1608 Flight Equipment Rotable Parts and Assemblies.
    (a) Record here the total cost to the air carrier of all spare 
instruments, parts, appurtenances and subassemblies related to the 
primary components of flight equipment units provided for in balance 
sheet accounts 1601 through 1607, inclusive. This account shall include 
all parts and assemblies of material value which are rotable in nature, 
are generally reserviced or repaired, are used repeatedly and possess a 
service life approximating that of the property type to which they 
relate. Items of an expendable nature which generally may not be 
repaired and reused, shall not be recorded in this account but in 
account 1300 Spare Parts and Supplies. Except for recurrent service 
sales, flight equipment parts recorded in this account shall not be 
charged to operating expenses as retired. Profit or loss on sales of 
parts as a routine service to others shall be included in profit and 
loss account 14 General Service Sales, and parts sold shall be removed 
from this account at full cost irrespective of any allowance for 
depreciation which has been provided.
    (b) This account shall be subdivided as follows by Group II and 
Group III air carriers:

                  1608.1 Airframe Parts and Assemblies.

              1608.5 Aircraft Engine Parts and Assemblies.

                   1608.9 Other Parts and Assemblies.

[ER-980, 42 FR 29, Jan. 3. 1977, as amended by Amdt. 241-58, 54 FR 5593, 
Feb. 6, 1989]
1609 Flight Equipment.
    This classification is established only for purposes of control by 
the BTS and shall reflect the total cost of property and equipment of 
all types and classes used in the in-flight operations of aircraft.

[ER-980, 42 FR 29, Jan. 3, 1977, as amended at 60 FR 66723, Dec. 26, 
1995]
1629 Flight Equipment Airworthiness Allowances.
    (a) Record here accumulated provisions for overhauls of flight 
equipment.
    (b) Separate subaccounts shall be established for recording 
accumulated

[[Page 124]]

provisions related to each type of airframe and aircraft engine, 
respectively.

    Note: At the option of the air carrier, the number ``2629'' may be 
assigned to this account for accounting purposes. However, for purposes 
of reporting on BTS Form 41, the balance in this account shall be 
reported under account ``1629.''

[ER-980, 42 FR 29, Jan. 3, 1977, as amended by Amdt. 241-58, 54 FR 5593, 
Feb. 6, 1989; 60 FR 66723, Dec. 26, 1995]
1630 Equipment.
    Record here the total cost to the air carrier of ground equipment to 
include the following:
    (a) Equipment assigned to aircraft or active line operations as 
opposed to items held in stock for servicing passengers such as 
broilers, bottleware, dishes, food boxes, thermos jugs, blankets, first 
aid kits, etc. Spare items shall be carried in balance sheet account 
1300 Spare Parts and Supplies and shall be charged directly to expense 
upon withdrawal from stock for replacing original complements.
    (b) Equipment used in restaurants and kitchens.
    (c) Equipment of all types and classes used in enplaning and 
handling traffic and in handling aircraft while on ramps, including 
motorized vehicles used in ramp service. Classes of equipment used 
interchangeably between handling aircraft on ramps and in maintaining 
aircraft may be classified in accordance with normal predominant use.
    (d) Nonairborne equipment of all types and classes used in 
meteorological and communication services which is not a part of 
buildings.
    (e) Equipment of all types and classes including motorized vehicles 
used in engineering and drafting services and in maintaining, 
overhauling, repairing and testing other classes of property and 
equipment.
    (f) Property and equipment of all types and classes used in ground 
and marine transportation services.
    (g) Property and equipment of all types and classes used in storing 
and distributing fuel, oil and water, such as fueling trucks, tanks, 
pipelines, etc.
    (h) All other ground equipment of all types and classes such as 
medical, photographic, employees' training equipment, and airport and 
airway lighting equipment.

[ER-980, 42 FR 29, Jan. 3, 1977, as amended by Amdt. 241-58, 54 FR 5593, 
Feb. 6, 1989]
1636 Furniture, Fixtures, and Office Equipment.
    Record here the total cost to the air carrier of furniture, fixtures 
and office equipment of all types and classes wherever used or located.

[Amdt. 241-58, 54 FR 5593, Feb. 6, 1989]
1639 Improvements to Leased Buildings and Equipment.
    Record here the total cost to the air carrier incurred in connection 
with modification, conversion, or other improvements to leased buildings 
and equipment.
1640 Buildings.
    Record here the total cost to the air carrier of owned buildings, 
structures and equipment and related improvements. Each air carrier 
shall maintain the following subaccounts in which the values fairly 
assignable to maintenance and other operations shall be separately 
recorded:

                1640.9 Other Buildings and Improvements.

             1640.1 Maintenance Buildings and Improvements.

[Amdt. 241-58, 54 FR 5593, Feb. 6, 1989]
1649 Ground Property and Equipment.
    This classification is established only for purposes of control by 
the BTS and shall reflect the total cost of property and equipment of 
all types and classes other than flight equipment, equipment purchase 
deposits and advance payments, land, and work in progress.

[ER-980, 42 FR 29, Jan. 3, 1977, as amended at 60 FR 66723, Dec. 26, 
1995]
1668 Allowance for Depreciation of Flight Equipment and Ground Property 
and Equipment and Amortization of Overhaul and Airworthiness Costs.
    (a) Record in accounts 1611 and 1618, inclusive, and 1650 through 
1660, inclusive, accruals for depreciation of flight equipment and 
ground property and equipment.

[[Page 125]]

    (b) As set forth in section 3, Chart of Balance Sheet Accounts, 
separate accounts shall be established for depreciation allowances to 
parallel balance sheet accounts 1601 through 1608 established for 
recording the cost of flight equipment and accounts 1630 through 1640 
established for recording the cost of ground property and equipment.
    (c) This account shall be used as a control account and shall 
reflect the total amounts recorded in balance sheet accounts 1611 
through 1618 and 1650 through 1660 in addition to account 1629 Flight 
Equipment Airworthiness Allowance.
1679 Land.
    Record here the initial cost and the cost of improving land.

[Amdt. 241-58, 54 FR 5593, Feb. 6, 1989]
1685 Equipment Purchase Deposits and Advance Payments.
    Record here the amount of purchase deposits and advance payments 
made to acquire operating property and equipment under outstanding 
purchase commitments. Funds set aside but not deposited or used as 
advance payments should not be included in this account but in Account 
1550 Special Funds.
1689 Construction Work in Progress.
    (a) Record here all direct and indirect costs of the air carrier 
that are expended for constructing and readying property and equipment 
of all types and classes for installation in operations. The amount 
reported shall reflect all such expenses that are accumulated to the 
balance sheet date. Where properly includable in the property and 
equipment classification, record here also the accumulated costs for 
uncompleted overhauls of airframes, aircraft engines, or other material 
units of property.
    (b) At the option of the air carrier this account may be used as a 
clearing account for recording the cost of property and equipment 
acquisitions prior to a distribution thereof to the appropriate property 
accounts, whether or not conditioning or modification is necessary 
before placing in service.

[ER-980, 42 FR 29, Jan. 3, 1977, as amended by Amdt. 241-58, 54 FR 5594, 
Feb. 6, 1989]
1695 Leased Property Under Capital Leases.
    (a) Record here the total costs to the air carrier for all property 
obtained under capital leases.
    (b) This account shall be subdivided by all air carrier groups as 
follows:

                1695.1 Capital Leases--Flight Equipment.

          1696.2 Capital Leases--Other Property and Equipment.

[ER-1401, 50 FR 241, Jan. 3, 1985, as amended by Amdt. 241-58, 54 FR 
5594, Feb. 6, 1989]
1696 Leased Property Under Capital Leases--Accumulated Amortization.
    (a) Record here accruals for amortization of leased property 
obtained under capital leases.
    (b) This account shall be subdivided by all air carrier groups as 
follows:

     1696.1 Accumulated Amortization--Capitalized Flight Equipment.

    1696.2 Accumulated Amortization--Capitalized Other Property and 
                               Equipment.

[ER-1401, 50 FR 241, Jan. 3, 1985, as amended by Amdt. 241-58, 54 FR 
5594,]

                  Non-operating Property and Equipment

    ``Nonoperating Property and Equipment'' includes investments in 
property and equipment not separately accounted for within a 
nontransport division but assigned to other than air transportation and 
transport-related services, and property and equipment held for future 
use.
1700 Non-operating Property and Equipment.
    The total cost to the air carrier of nonoperating property and 
equipment and related allowances for depreciation shall be recorded in 
balance sheet accounts 1701 through 1796 which, as set forth in section 
3, Chart of Balance Sheet Accounts, parallel balance sheet accounts 1601 
through 1689, for recording the cost of operating property and 
equipment. In addition to these accounts, Account 1797 has been 
established for recording the cost of property on operating-type leases 
to others and property held for lease; any accumulated depreciation 
applicable to the

[[Page 126]]

assets contained in Account 1797 shall be recorded in Account 1798.

[ER-1013, 42 FR 37515, July 21, 1977]
1797 Property on Operating-type Lease to Others and Property Held for 
Lease.
    Record here the total cost to the air carrier of property on 
operating-type lease to others and property held for lease.

[Amdt. 241-58, 54 FR 5594, Feb. 6, 1989]
1798 Property on Operating-type Lease to Others and Property Held for 
Lease--Accumulated Depreciation.
    Record here accruals for depreciation of property on operating-type 
leases to others and property held for lease.

[Amdt. 241-58, 54 FR 5594, Feb. 6, 1989]

                              Other Assets

1820 Long-Term Prepayments.
    Record here prepayments of obligations applicable to periods 
extending beyond one year such as payments on leased property and 
equipment and other payments and advances for rents, rights, or other 
privileges.
1830 Unamortized Developmental and Preoperating Costs.
    (a) Record here costs accumulated and deferred by the air carrier 
pertaining to the development of new routes or extension of existing 
routes, preparation for operation of new routes subsequent to 
certification by the DOT, the integration of new types of aircraft or 
services, and other preparations for substantial alterations in 
operational characteristics.
    (b) Costs chargeable to this account shall include items directly 
related to each specific developmental or preoperating project, such as 
travel and incidental expenses, legal expenses, flight crew training 
expenses, and regulatory proceedings expenses. Expenses which would be 
otherwise incurred in the normal air transport operations conducted by 
the air carrier during the current accounting period shall not be 
allocated to developmental or preoperating projects and charged to this 
account. Nor shall this account be credited for revenues from aircraft 
flights of a developmental or preoperating character the operating costs 
of which are charged to this account. Any such revenues shall be 
included in the profit and loss account for the respective type of 
revenue. This account shall include charges for only those costs 
associated with projects directed at obtaining new operating authority 
or expanding the physical capacity of the air carrier and shall not 
include costs incurred for the purpose of generating revenues through 
rate adjustment. Accordingly, costs associated with regulatory 
proceedings involving route awards or amendments, whether successful or 
unsuccessful to the carrier, shall be included in this account whereas 
costs associated with regulatory proceedings involving rate or other 
revenue generation matters shall be charged to appropriate expense 
accounts.
    (c) Records shall be established for new routes or extensions of 
existing routes to record separately: (1) Costs incurred in acquiring or 
applying for the routes, including all costs incurred prior to 
certification by the DOT and inauguration of service by the air carrier, 
and (2) costs incurred after revenue operations begin over the new 
routes or extensions.
    (d) Subclassifications shall be established to record for each 
developmental project the period covered and the purpose of each item of 
expense. Each air carrier shall classify the costs of all projects 
included in this account between: (1) Those related and contributing to 
the normal air transportation services currently conducted by the air 
carrier; (2) those related to services conducted by the air carrier 
which are extraneous to or are not otherwise related to the air 
transportation services currently conducted; and (3) those held in 
suspense pending status determination in terms of possible contribution 
to the air transportation services and inauguration of the service or 
operation to which related.
    (e) Amounts included in this account which contribute to or protect 
the position of the normal air transportation services currently 
conducted by the carrier shall be amortized to profit and loss account 
74 Amortization, unless

[[Page 127]]

otherwise approved or directed by the DOT. Other amounts included in 
this account shall be amortized or charged to profit and loss account 
89.9 Other Miscellaneous Nonoperating Debits.

[ER-980, 42 FR 29, Jan. 3, 1977, as amended at 60 FR 66723, Dec. 26, 
1995]
1890 Other Assets and Deferred Charges.
    (a) Record here other assets and deferred charges not provided for 
elsewhere.
    (b) Record here debits, the proper final disposition of which cannot 
be determined until additional information has been received. This 
account shall include the accumulated cost of labor, materials and 
outside services used in the process of manufacturing flight equipment 
expendable parts and materials and supplies for stock, the accumulated 
cost of jobs in process for others, projects to be charged to expense 
upon completion. This account shall also include unamortized debt 
expense, property acquisition adjustments and intangible assets.
    (c) This account shall be charged with property loss and other costs 
related to casualties and credited with recoveries from purchased 
insurance and salvage. A debit or credit balance in this account related 
to property retired as a result of a casualty shall be recorded in 
profit and loss account 88.5 Capital Gains and Losses--Operating 
Property or 88.6 Capital Gains and Losses--Other; however, any balances 
related to property not retired or to other casualties shall be recorded 
in profit and loss account 58 Injuries, Loss and Damage. Proceeds from 
purchased insurance for property damage, received prior to repair of 
such damage, shall not be credited to this account but to balance sheet 
account 2390 Other Deferred Credits pending repair. The records for each 
major casualty shall be kept in such manner as to clearly disclose 
insurance recoveries and the total costs, which shall include charges 
for the depreciated cost of property damaged or destroyed, costs for 
clearing wrecks and damaged property and equipment, including salaries 
and wages for the repair thereof, and payments for damages to property 
of others. The cost of casualties shall not be charged directly against 
retained earnings or appropriations thereof, but shall be cleared 
through the applicable profit and loss accounts in accordance with the 
foregoing.
    (d) Record here the unamortized debt expense related to the 
assumption by the air carrier of debt of all types and classes. Amounts 
recorded shall be amortized to profit and loss account 84 Amortization 
of Debt Discount, Premium and Expense.
    (e) Unamortized debt expense shall not include the excess of the par 
value of debt securities over the cash value of consideration received. 
Instead, discounts shall be recorded in a subaccount of the related 
liability.
    (f) Record here the cost of patents, copyrights and other intangible 
properties, rights and privileges acquired as a part of a business from 
other air carriers and other intangibles not provided for elsewhere. 
This account shall be subdivided to reflect the nature of each 
intangible asset included in this account.
    (g) Record here the difference between the purchase price to the air 
carrier of property and equipment acquired as a part of a business from 
another air carrier through consolidation, merger, or reorganization, 
pursuant to a plan approved by the DOT, and the depreciated cost to the 
predecessor company at date of acquisition. Record here also such 
differences relating to purchases of property and equipment from 
associated companies unless other treatment is approved by the BTS. 
Separate subaccounts shall be established to record the amounts 
applicable to each such acquisition.
    (h) Balances in this account relating to property acquisition 
adjustments shall be amortized by charges to profit and loss account 
89.9 Other Miscellaneous Nonoperating Debits unless otherwise directed 
or approved by the BTS.

[ER-1401, 50 FR 242, Jan. 3, 1985, as amended at 60 FR 66723, Dec. 26, 
1995]

                           Current Liabilities

2000 Current Maturities of Long-term Debt.
    Record here the face value or principal amount of debt securities 
issued

[[Page 128]]

or assumed by the air carrier which is payable within 12 months of the 
balance sheet date unless such debt is to refinance, or where payment is 
to be made from assets of a type not properly classifiable as current.
2005 Notes Payable--Banks.
    Record here the face value of all notes, drafts, acceptances, or 
other similar evidences of indebtedness payable on demand or within one 
year to a bank or another financial institution with the exception of 
current maturities of long-term debt which should be included in account 
2000.
2015 Notes Payable--Other.
    Record here the face value of all notes, drafts, acceptances, or 
other similar evidences of indebtedness payable on demand or within one 
year to an associated company or party other than a financial 
institution.
2021 Trade Accounts Payable.
    Record here all accounts payable within one year which accrued from 
generally recognized trade practices.
2025 Accounts Payable--Other.
    Record here all accounts payable within one year which are not 
provided for in accounts 2000 to 2021, inclusive.
2080 Current Obligations Under Capital Leases.
    Record here the total current liability applicable to property 
obtained under capital leases.

[ER-1013, 42 FR 37515, July 21, 1977; 42 FR 38555, July 29, 1977; Amdt. 
241-58, 54 FR 5594, Feb. 6, 1989]
2110 Accrued Salaries, Wages.
    Record here amounts accrued for unpaid compensation to personnel, 
which have been charged to profit and loss or capitalized, as 
compensation for the period in which accrued.
2120 Accrued Vacation Liability.
    (a) Record here accruals of liabilities for personnel vacations. All 
vacation policies, plans, or agreements whether oral or written shall be 
accounted for on an accrual basis whenever a lag exists between 
vacations earned and vacations taken, thereby resulting in a liability 
against the carrier under the applicable policy, plan or agreement.
    (b) This account shall be credited and the applicable personnel 
compensation expense account concurrently charged with the cost of any 
lag between vacations accrued and vacations taken. Accruals may be based 
upon standard rates of lag, if such standard rates are verified by 
physical inventory and adjusted accordingly at least once each calendar 
year. Adjustments of balances in this account shall be cleared to 
applicable compensation expense accounts.

[ER-980, 42 FR 29, Jan. 3, 1977, as amended by ER-1027, 42 FR 60128, 
Nov. 25, 1977; ER-1188, 45 FR 48870, July 22, 1980; Amdt. 241-58, 54 FR 
5594, Feb. 6, 1989]
2125 Accrued Interest.
    Record here interest payable within one year for all outstanding 
obligations.
2130 Accrued Taxes.
    (a) Record here accruals for currently payable income and other 
forms of taxes which constitute a charge borne by the air carrier as 
opposed to those collected as an agent for others.
    (b) Each air carrier shall disclose in the footnotes of its BTS Form 
41 for each calendar quarter whether utilized credits are accounted for 
by the flow-through method or the deferred method. The method selected 
shall be consistently followed by the carrier.

[Amdt. 241-58, 54 FR 5594, Feb. 6, 1989, as amended at 60 FR 66723, Dec. 
26, 1995]
2140 Dividends Declared.
    Record here in separate subdivisions for each class and series of 
capital stock, all dividends declared but unpaid on capital stock.
2160 Air Traffic Liability.
    (a) Record here balances representing the value of unused 
transportation sold. Transportation sold includes both sales for 
transportation to be provided by the air carrier and transportation to 
be provided by another air carrier.
    (b) Earned revenue, determined by the yield or average fare method 
or by the sales-lift-match method, shall be

[[Page 129]]

consistently and periodically cleared by debit to this account, and by 
credit to the appropriate profit and loss revenue account. Amounts 
receivable for transportation to be provided by the air carrier shall be 
debited to balance sheet account 1270 Accounts Receivable.
    (c) Carriers who determine earned revenue on a yield or average fare 
method may not accrue income during the accounting year in anticipation 
of a favorable annual physical inventory determination, nor for unused 
or unpresented tickets.
    (d) Subaccounts to this account shall be established to record 
balances pertaining to passenger and cargo transportation sold, 
respectively, and separately to sales in scheduled and non-scheduled 
services.

[ER-980, 42 FR 29, Jan. 3, 1977, as amended by ER-1401, 50 FR 242, Jan. 
3, 1985]
2190 Other Current Liabilities.
    Record here current and accrued liabilities, including amounts 
payable collected as an agent, not provided for in accounts 2110 to 
2160, inclusive.

                         Non-current Liabilities

2210 Long-Term Debt.
    (a) Record here the face value of principal amount of debt 
securities issued or assumed by the air carrier and held by other than 
associated companies, which has not been retired or cancelled and is not 
payable within 12 months of the balance sheet date.
    (b) In cases where debt coming due within 12 months is to be 
refunded, or where payment is to be made from assets of a type not 
properly classifiable as current, the amount payable shall not be 
removed from this account. In addition, this account shall include 
short-term debt obligations when both the intent to refinance the short-
term obligations on a long-term basis is established and the ability to 
consummate this refinancing can be demonstrated.

[Amdt. 241-58, 54 FR 5594, Feb. 6, 1989]
2240 Advances from Associated Companies.
    Record here net amounts due associated companies and nontransport 
divisions for notes, loans and advances which are not settled currently. 
Balances payable to and receivable from different associated companies 
shall not be offset.
2250 Pension Liability.
    Record here the liability of the air carrier under employee pension 
plans, to which either or both employees and the air carrier contribute, 
if the plan is administered by the air carrier.
2280 Noncurrent Obligations under Capital Leases.
    Record here the total noncurrent liability applicable to property 
obtained under capital leases.

[ER-1013, 42 FR 37515, July 21, 1977, as amended by Amdt. 241-58, 54 FR 
5594, Feb. 6, 1989]
2290 Other Noncurrent Liabilities.
    Record here noncurrent liabilities not provided for in balance sheet 
accounts 2210 to 2280, inclusive, such as the liability for installments 
received on capital stock from company personnel who are not bound by 
legally enforceable subscription contracts, accruals for personnel 
dismissal liability, and accruals of other demonstrable miscellaneous 
noncurrent liabilities.

[ER-1401, 50 FR 242, Jan. 3, 1985]

                            Deferred Credits

2340 Deferred Income Taxes.
    Record here credits and debits representing the net tax effect of 
material timing differences originating and reversing in the current 
accounting period, giving appropriate recognition to the portion of 
investment tax credits which would have been allowed if taxes were based 
on pretax accounting income by a reduction of the deferred tax 
provision.

[Amdt. 241-58, 54 FR 5594, Feb. 6, 1989]
2345 Deferred Investment Tax Credits.
    Record here investment tax credits utilized as reduction of tax 
liabilities, when the carrier exercises the option

[[Page 130]]

to defer such credits for amortization over the service life of the 
related equipment.

[Amdt. 241-58, 54 FR 5594, Feb. 6, 1989]
2390 Other Deferred Credits.
    Record here credits, not provided for elsewhere, the proper final 
disposition of which cannot be effected until additional information has 
been received.

                          Stockholders' Equity

2820 Preferred Stock.
    Record here in separate subdivisions for each class and series, the 
par or stated value of preferred capital stock issued or in the case of 
no-par stock without stated value, the full consideration received.
2840 Common Stock.
    Record here in separate subdivisions for each class and series, the 
par or stated value of common stock issued or in case of no-par stock 
without stated value, the full consideration received.
2860 Subscribed and Unissued Stock.
    Record here in separate subdivisions for each class and series, the 
par or stated value, or the subscription price in the case of stock 
without par or stated value, of legally enforceable subscriptions to the 
capital stock of the air carrier.
2890 Additional Capital Invested.
    (a) Record herein separate subdivisions for each class and series, 
the difference between the price at which capital stock is sold and the 
par or stated value of the stock; gains or losses arising from the 
reacquisition and the resale or retirement of each class and series of 
capital stock; donations; the excess of retained earnings capitalized 
over par or stated value of capital stock issued; adjustments in capital 
resulting from reorganization or recapitalization; and proceeds 
attributable to detachable stock purchase warrants related to debt 
issues. This account shall also include balances of contributions to the 
business enterprise of individual proprietors or partners.
    (b) Each air carrier shall maintain the following subaccounts:
    2890.1 Premium on capital stock. Record here in separate 
subdivisions for each class and series of capital stock issued the 
excess of the cash value of consideration received over the par or 
stated value and accrued dividends of stock issued together with 
assessments against stockholders representing payments required in 
excess of par or stated value.
    2890.2 Discount on capital stock. Record here in separate 
subdivisions for each class and series of capital stock issued, the 
excess of the par or stated value over the cash value of consideration 
received, less accrued dividends. Discounts applicable to a particular 
class and series of capital stock may be offset against premiums from 
the same class and series of capital stock. Discounts and premiums on 
different classes and series of capital stock shall not be offset. The 
air carrier may, at its option, record in this subaccount commissions 
and expenses incurred in the issuance of capital stock and may charge 
balance sheet account 2900 Retained Earnings to the extent capital stock 
expense may exceed any existing balance of paid-in capital over the par 
or stated value of capital stock.
    2890.3 Other Capital Stock Transactions. Record here in separate 
subdivisions for each class and series, the balance of credits arising 
from the reacquisition and resale or cancellation of capital stock, 
credits arising from a reduction in the par or stated value of capital 
stock or the net balance of credits or debits resulting from other paid-
in capital transactions such as proceeds attributable to detachable 
stock purchase warrants related to debt issues, not provided for 
elsewhere, which is identified with a particular class and series of 
capital stock.
2900 Retained Earnings.
    (a) Record here the net income or loss from operations of the air 
carrier and dividends declared on capital stock.
    (b) This account shall not be charged with dividends on treasury 
stock. If a dividend is not payable in cash, the values entered in this 
account shall be completely described.
    (c) Delayed credits or charges to income shall not be entered in 
this account directly but in appropriate profit and loss accounts.
    (d) Net income or loss accounted for during the current fiscal year 
shall not be entered in this account until the close of the fiscal year. 
Individual proprietorships or partnerships may clear net income or loss 
accounted for during the year directly to balance sheet account 2890 
Additional Capital Invested,

[[Page 131]]

or optionally, to this account for subsequent transfer to balance sheet 
account 2890 Additional Capital Invested.
    (e) A separate subaccount to this account shall be maintained to 
record changes in the valuation of marketable equity securities included 
in noncurrent assets. Such changes shall be reflected in this subaccount 
to the extent the balance in this subaccount represents a net unrealized 
loss as of the current balance sheet date.

[ER-980, 42 FR 29, Jan. 3, 1977, as amended by ER-1401, 50 FR 242, Jan. 
3, 1985]
2990 Treasury Stock.
    (a) Record here the cost of capital stock issued by the air carrier 
reacquired by it and not retired or canceled.
    (b) Separate records shall be established for each class and series 
of capital stock held in this account.

[ER-980, 42 FR 29, Jan. 3, 1977, as amended by Amdt. 241-58, 54 FR 5594, 
Feb. 6, 1989]

                     Profit and Loss Classification



Section 7  Chart of Profit and Loss Accounts

----------------------------------------------------------------------------------------------------------------
                                               Functional or financial activity to which applicable (00)
  Objective classification of profit  --------------------------------------------------------------------------
          and loss elements                Group I carriers        Group II carriers        Group III carriers
----------------------------------------------------------------------------------------------------------------
   operating revenues and expenses
 
Transport revenues:
 
01 Passenger:
  01.1 Passenger--first class........  31, 32.................  31, 32.................  31, 32.
  01.2 Passenger--coach..............  31, 32.................  31, 32.................  31, 32.
05 Mail:
  05.1 Priority......................  31, 32.................  31, 32.................  31, 32.
  05.2 Nonpriority...................  31, 32.................  31, 32.................  31, 32.
  05.3 Foreign.......................  31, 32.................  31, 32.................  31, 32.
06 Property:
  06.1 Freight.......................  31, 32.................  31, 32.................  31, 32.
  06.2 Excess passenger baggage......  31, 32.................  31, 32.................  31, 32.
07 Charter:
  07.1 Passenger.....................  32.....................  32.....................  32.
  07.2 Property......................  32.....................  32.....................  32.
19 Air transport--other:
  19.1 Reservation cancellation fees.  31, 32.................  31, 32.................  31, 32.
  19.2 Miscellaneous operating         31, 32.................  31, 32.................  31, 32.
   revenues.
08 Public service revenues (subsidy).  48.....................  48.....................  48.
 
Transport-related revenues and
 expenses:
 
09 In-flight sales:
  09.1 Liquor and food--gross          48.....................  48.....................  48.
   revenues.
  09.2 Movies and stereo--gross        48.....................  48.....................  48.
   revenues.
  09.3 Other--gross revenues.........  48.....................  48.....................  48.
  09.4 Liquor and food--depreciation   71.....................  71.....................  71.
   expense.
  09.5 Liquor and food--other expense  71.....................  71.....................  71.
  09.6 Movies and stereo--             71.....................  71.....................  71.
   depreciation expense.
  09.7 Movies and stereo--other        71.....................  71.....................  71.
   expense.
  09.8 Other--depreciation expense...  71.....................  71.....................  71.
  09.9 Other--expense................  71.....................  71.....................  71.
10 Restaurant and food service
 (ground):
  10.1 Gross revenues................  48.....................  48.....................  48.
  10.2 Depreciation expense..........  71.....................  71.....................  71.
  10.3 Other expenses................  71.....................  71.....................  71.
11 Rents:
  11.1 Gross revenues................  48.....................  48.....................  48.
  11.2 Depreciation expense..........  71.....................  71.....................  71.
  11.3 Other expenses................  71.....................  71.....................  71.
12 Limousine service:
  12.1 Gross revenues................  48.....................  48.....................  48.
  12.2 Depreciation expense..........  71.....................  71.....................  71.
  12.3 Other expenses................  71.....................  71.....................  71.
13 Interchange sales:
  13.1 Associated companies--gross     48.....................  48.....................  48.
   revenues.
  13.2 Outside--gross revenues.......  48.....................  48.....................  48.
  13.3 Associated companies--          71.....................  71.....................  71.
   depreciation expense.
  13.4 Associated companies--other     71.....................  71.....................  71.
   expense.
  13.5 Outside--depreciation expense.  71.....................  71.....................  71.
  13.6 Outside--other expense........  71.....................  71.....................  71.

[[Page 132]]

 
14 General service sales:
  14.1 Associated companies--gross     48.....................  48.....................  48.
   revenues.
  14.2 Outside--gross revenues.......  48.....................  48.....................  48.
  14.3 Associated companies--          71.....................  71.....................  71.
   depreciation expense.
  14.4 Associated companies--other     71.....................  71.....................  71.
   expense.
  14.5 Outside--depreciation expense.  71.....................  71.....................  71.
  14.6 Outside--other expense........  71.....................  71.....................  71.
16 Substitute (replacement) service:
  16.1 Gross revenues................  48.....................  48.....................  48.
  16.2 Expense.......................  71.....................  71.....................  71.
17 Air cargo service:
  17.1 Gross revenues................  48.....................  48.....................  48.
  17.2 Depreciation expense..........  71.....................  71.....................  71.
  17.3 Other expense.................  71.....................  71.....................  71.
18 Other transport related items:
  18.1 Gross revenues................  48.....................  48.....................  48.
  18.2 Depreciation expense..........  71.....................  71.....................  71.
  18.3 Other expense.................  71.....................  71.....................  71.
19 Other operating revenues:
  19.1 Reservations cancellation fees  31, 32.................  31, 32.................  31, 32.
  19.9 Miscellaneous operating         31, 32, 41.............  31, 32, 41.............  31, 32, 41.
   revenues.
 
Transport expenses:
 
21 General management personnel......  53, 69.................  53, 55, 64, 67, 68.....  53, 55, 61, 62, 63, 65,
                                                                                          66, 68.
23 Pilots and copilots...............  51.....................  51.....................  51.
24 Other flight personnel............  51, 69.................  51, 55.................  51, 55.
25 Maintenance labor:
  25.1 Labor--airframes and other      .......................  52.....................  52.
   flight equipment.
  25.2 Labor--aircraft engines.......  .......................  52.....................  52.
  25.6 Labor--flight equipment.......  52.....................  .......................  .......................
  25.9 Labor--ground property and      52, 53.................  52, 53.................  52, 53.
   equipment.
26 Aircraft and traffic handling       69.....................  .......................  .......................
 personnel.
  26.1 General aircraft and traffic    .......................  64, 67.................  61, 62, 63, 65.
   handling personnel.
  26.2 Aircraft control personnel....  .......................  64.....................  61.
  26.3 Passenger handling personnel..  .......................  64, 67.................  62, 65.
  26.4 Cargo handling personnel......  .......................  64, 67.................  62, 65.
28 Trainees, instructors and
 unallocated shop labor:
  28.1 Trainees and instructors......  51, 53, 69.............  51, 53, 55, 64,67, 68..  51, 53, 55, 61, 62, 63,
                                                                                          65, 66, 68.
  28.2 Unallocated shop labor........  53.....................  53.....................  53.
30 Communications personnel..........  53, 69.................  53, 55, 64, 67, 68.....  53, 55, 61, 62, 63, 65,
                                                                                          66, 68.
31 Recordkeeping and statistical       53, 69.................  53, 55, 64, 67, 68.....  53, 55, 61, 62, 63, 65,
 personnel.                                                                               66, 68.
32 Lawyers and law clerks............  69.....................  68.....................  68.
33 Traffic solicitors................  69.....................  67.....................  65.
34 Purchasing personnel..............  53, 69.................  53, 68.................  53, 68.
35 Other personnel...................  53, 69.................  53, 55, 64, 67, 68.....  53, 55, 61, 62, 63, 65,
                                                                                          66, 68.
36 Personnel expenses................  51, 53, 69.............  51, 53, 55, 64, 67, 68.  51, 53, 55, 61, 62, 63,
                                                                                          65, 66, 68.
37 Communications purchased..........  53, 69.................  53, 55, 64, 67, 68.....  53, 55, 61, 62, 63, 65,
                                                                                          66, 68.
38 Light, heat, power, and water.....  53, 69.................  53, 55, 64, 67, 68.....  53, 55, 61, 62, 63, 65,
                                                                                          66, 68.
39 Traffic commissions...............  69.....................  .......................  .......................
  39.1 Commissions--passenger........  .......................  67.....................  65.
  39.2 Commissions--property.........  .......................  67.....................  65.
40 Legal fees and expenses...........  69.....................  68.....................  68.
41 Professional and technical fees     51, 53, 69.............  51, 53, 55, 64, 67, 68.  51, 53, 55, 61, 62, 63,
 and expenses.                                                                            65, 66, 68
43 General services purchased:
  43.1 Airframe and other flight       .......................  52.....................  52
   equipment repairs.
  43.2 Aircraft engine repairs.......  52.....................  52.....................  .......................
  43.6 Flight equipment repairs......  52.....................  .......................  .......................
  43.7 Aircraft interchange charges..  51, 52.................  51, 52.................  51, 52
  43.8 General interchange service     52, 69.................  52, 55, 64, 67, 68.....  52, 55, 61, 62, 63, 65,
   charges.                                                                               66, 68
  43.9 Other services................  52, 53, 69.............  52, 53, 55, 64, 67, 68.  52, 53, 55, 61, 62, 63,
                                                                                          65, 66, 68

[[Page 133]]

 
44 Landing fees......................  69.....................  64.....................  61.
45 Aircraft fuels and oils...........  51.....................  .......................  .......................
  45.1 Aircraft fuels................  .......................  51.....................  51.
  45.2 Aircraft oils.................  .......................  51.....................  51.
46 Maintenance materials:
  46.1 Airframes and other flight      .......................  52.....................  52
   equipment.
  46.2 Aircraft engines..............  .......................  52.....................  52.
  46.6 Flight equipment..............  52.....................  .......................  .......................
  46.9 Ground property and equipment.  52, 53.................  52, 53.................  52, 53.
47 Rentals...........................  51, 53, 69.............  51, 53, 55, 64, 67, 68.  51, 53, 55, 61, 62, 63,
                                                                                          65, 66, 68.
49 Shop and servicing supplies.......  53, 69.................  53, 64.................  53, 61.
50 Stationery, printing, and office    53, 69.................  53, 55, 64, 67, 68.....  53, 55, 61, 62, 63, 65,
 supplies.                                                                                66, 68.
51 Passenger food expense............  69.....................  55.....................  55.
53 Other supplies....................  51, 53, 69.............  51, 53, 55, 64, 67, 68.  51, 53, 55, 61, 62, 63,
                                                                                          65, 66, 68.
54 Inventory adjustments.............  53, 69.................  53, 55.................  53, 55.
55 Insurance--general................  51, 53, 69.............  51, 53, 68.............  51, 53, 68.
56 Insurance--traffic liability......  69.....................  55, 64.................  55, 62.
57 Employee benefits and pensions....  51, 53, 69.............  51, 53, 55, 64, 67, 68.  51, 53, 55, 61, 62, 63,
                                                                                          65, 66, 68.
58 Injuries, loss and damage.........  51, 53, 69.............  51, 53, 55, 64, 67, 68.  51, 53, 55, 61, 62, 63,
                                                                                          65, 66, 68.
59 Schedules and timetables..........  69.....................  67.....................  65, 66.
60 Advertising.......................  69.....................  67.....................  66.
61 Foreign exchange gains and losses.  69.....................  68.....................  68.
62 Other promotional and publicity     69.....................  67.....................  66.
 expenses.
63 Interrupted trips expense.........  69.....................  55.....................  55.
64 Memberships.......................  53, 69.................  53, 55, 64, 67, 68.....  53, 55, 61, 62, 63, 65,
                                                                                          66, 68.
65 Corporate and fiscal expenses.....  69.....................  68.....................  68.
66 Uncollectible accounts............  69.....................  68.....................  68.
67 Clearance, customs and duties.....  69.....................  64.....................  61, 62.
68 Taxes--payroll....................  51, 53, 69.............  51, 53, 55, 64, 67, 68.  51, 53, 55, 61, 62, 63,
                                                                                          65, 66, 68.
69 Taxes--other than payroll.........  51, 69.................  51, 68.................  51, 68.
71 Other expenses....................  51, 53, 69.............  51, 53, 55, 64, 67, 68.  51, 53, 55, 61, 62, 63,
                                                                                          65, 66 68.
72 Aircraft overhauls................  52, 53.................  52, 53.................  52, 53.
  72.1 Airworthiness allowance         52, 53.................  52, 53.................  52, 53.
   provisions--airframes.
  72.3 Airframe overhauls deferred...  52, 53.................  52, 53.................  52, 53.
  72.6 Airworthiness allowance         52, 53.................  52, 53.................  52, 53.
   provisions--aircraft engines.
  72.8 Aircraft engine overhauls       52, 53.................  52, 53.................  52, 53.
   deferred.
73 Provisions for obsolescence and
 deterioration--expendable parts:
  73.1 Current provisions............  70.....................  70.....................  70.
  73.2 Inventory decline credits.....  70.....................  70.....................  70.
74 Amortizations:
  74.1 Developmental and preoperating  70.....................  70.....................  70.
   expenses.
  74.2 Other intangibles.............  70.....................  70.....................  70.
75 Depreciation:
  75.1 Airframes.....................  70.....................  70.....................  70.
  75.2 Aircraft engines..............  70.....................  70.....................  70.
  75.3 Airframe parts................  70.....................  70.....................  70.
  75.4 Aircraft engine parts.........  70.....................  70.....................  70.
  75.5 Other flight equipment........  70.....................  70.....................  70.
  75.6 Flight equipment..............  70.....................  70.....................  70.
  75.8 Maintenance equipment and       70.....................  70.....................  70.
   hangars.
  75.9 General ground property.......  70.....................  70.....................  70.
76 Amortization expense, capital
 leases:
  76.1 Amortization--capitalized       70.....................  70.....................  70
   flight equipment.
  76.2 Amortization--capitalized       70.....................  70.....................  70
   other property and equipment.
77 Uncleared expense credits:
  77.8 Uncleared interchange expense   53, 69.................  53, 55, 64, 67, 68.....  53, 55, 61, 62, 63, 65,
   credits.                                                                               66, 68.
  77.9 Other uncleared expense         53, 69.................  53, 55, 64, 67, 68.....  53, 55, 61, 62, 63, 65,
   credits.                                                                               66, 68.
78 Direct maintenance--flight          52.....................  52.....................  52.
 equipment.
79 Applied burden Dr/Cr:
  79.6 Flight equipment..............  52 Dr, 53 Cr...........  52 Dr, 53 Cr...........  52 Dr, 53 Cr.

[[Page 134]]

 
  79.8 General ground property.......  52 Dr, 53 Cr...........  52 Dr, 53 Cr...........  52 Dr, 53 Cr.
 
   nonoperating income and expense
 
81 Interest on long-term debt and
 capital leases:
  81.1 Interest expense, long-term     81.....................  81.....................  81
   debt.
  81.2 Interest expense, capital       81.....................  81.....................  81
   leases.
82 Other interest:
  82.1 Interest expense, short-term    81.....................  81.....................  81
   debt.
  83.1 Imputed interest capitalized--  81.....................  81.....................  81
   credit.
  83.2 Imputed interest deferred--     81.....................  81.....................  81
   debit.
  83.3 Imputed interest deferred--     81.....................  81.....................  81
   credit.
  83.4 Interest capitalized--credit..  81.....................  81.....................  81
  84.1 Amortization of discount and    81.....................  81.....................  81
   expense on debt.
  84.2 Amortization of premium on      81.....................  81.....................  81
   debt.
85 Foreign exchange gains and losse..  81.....................  81.....................  81
89 Other nonoperating income and
 expense-net:
  80.0 Interest income...............  81.....................  81.....................  81
  86.0 Income from nontransport        81.....................  81.....................  81
   ventures.
  87.0 Equity in income of investor    81.....................  81.....................  81
   controlled companies.
  88.1 Intercompany transaction        81.....................  81.....................  81
   adjustment-credit.
  88.2 Dividend income...............  81.....................  81.....................  81
  88.3 Net unrealized gain or loss on  81.....................  81.....................  81.
   marketable equity securities.
  88.4 Net realized gain or loss on    81.....................  81.....................  81.
   marketable equity securities.
  88.5 Capital gains and losses--      81.....................  81.....................  81.
   operating property.
  88.6 Capital gains and losses--      81.....................  81.....................  81.
   other.
  88.7 Unapplied cash discounts......  81.....................  81.....................  81.
  88.9 Other miscellaneous             81.....................  81.....................  81.
   nonoperating credits.
  89.1 Intercompany transaction        81.....................  81.....................  81.
   adjustment--debit.
  89.9 Other miscellaneous             81.....................  81.....................  81.
   nonoperating debits.
 
             income taxes
 
91 Provision for income taxes:
  91.1 Income taxes before investment  91.....................  91.....................  91.
   tax credits.
  91.2 Investment tax credits          91.....................  91.....................  91.
   utilized.
92 Provisions for deferred income
 taxes:
  92.1 Current provisions for          91.....................  91.....................  91.
   deferred taxes.
  92.2 Application of deferred taxes.  91.....................  91.....................  91.
  92.3 Adjustment of deferred taxes..  91.....................  91.....................  91.
93 Investment tax credits deferred
 and amortized:
  93.1 Investment tax credits          91.....................  91.....................  91.
   deferred.
  93.2 Amortization of deferred        91.....................  91.....................  91.
   investment tax credits.
94 Excess profits taxes..............  91.....................  91.....................  91.
 
       discontinued operations
 
95 Discontinued operations:
  95.1 Income from discontinued        96.....................  96.....................  96.
   operations.
  95.2 Loss on disposal of             96.....................  96.....................  96.
   discontinued operations.
 
         extraordinary items
 
96 Extraordinary items...............  97.....................  97.....................  97.
97 Income taxes applicable to          97.....................  97.....................  97.
 extraordinary items.
 
   changes in accounting principles
 
98 Cumulative effects of change in     98.....................  98.....................  98.
 accounting principles.
----------------------------------------------------------------------------------------------------------------


[ER-755, 37 FR 19726, Sept. 21, 1972, as amended by ER-781, 37 FR 25223, 
Nov. 29, 1972; 37 FR 28277, Dec. 22, 1972; ER-797, 38 FR 10926, May 3, 
1973; ER-841, 39 FR 11995, Apr. 2, 1974; ER-948, 41 FR 12295, Mar. 25, 
1976; ER-980, 42 FR 35, Jan. 3, 1977; ER-1013, 42 FR 37515, July 21, 
1977; ER-1401, 50 FR 242, Jan. 3, 1985; Amdt. 241-56, 52 FR 9129, Mar. 
23, 1987; Amdt. 241-58, 54 FR 5594, Feb. 6, 1989]



Section 8  General

    (a) The profit and loss accounts are designed to reflect, through 
natural groupings, the elements entering into the derivation of income 
or loss accruing to the proprietary interests during each accounting 
period.
    (b) The prescribed system of accounts provides for the co-ordinate 
grouping of all revenues and expenses in terms of

[[Page 135]]

both major natural objectives and functional activities and for 
subdivision of both to provide varying degrees of detail for air 
carriers of differing accounting capacities and/or requirements.
    (c) The detailed objective accounts established for each air carrier 
group, by the dual subdivision of profit and loss elements in terms of 
both natural objectives and functional activities, are set forth in 
section 7, Chart of Profit and Loss Accounts.
    (d) The prescribed system of accounts provides generally that profit 
and loss elements shall be grouped in accordance with their inherent 
characteristics within the following primary classifications:
    (1) Operating revenues. (i) This primary classification shall 
include revenues of a character usually and ordinarily derived from the 
performance of air transportation and air transportation-related 
services, which relate to services performed during the current 
accounting year, and adjustments of a recurrent nature applicable to 
services performed in prior accounting years.
    (ii) Operating revenues shall be subclassified in terms of 
functional activities as provided in section 9.
    (2) Operating expenses. (i) This primary classification shall 
include expenses of a character usually and ordinarily incurred in the 
performance of air transportation and air transportation-related 
services, which relate to services performed during the current 
accounting year, and adjustments of a recurring nature attributable to 
services performed in prior accounting years.
    (ii) Operating expenses shall be subclassified in terms of 
functional activities as provided in sections 10 and 11.
    (3) Nonoperating income and expense--net. This primary 
classification (8100) shall include income and loss incident to 
commercial ventures not inherently related to the performance of the 
common carrier air transport services of the accounting entity; other 
revenues and expenses attributable to financing or other activities 
which are extraneous to and not an integral part of air transportation 
or its incidental services; and special recurrent items of a nonperiod 
nature.
    (4) Income taxes for current period. This primary classification 
(9100) shall include provisions for Federal, state, local, and foreign 
taxes which are based upon the net income of the air carrier for the 
current period together with refunds for excess profits credits or 
carryback of losses and increases or reductions of income taxes of prior 
years of a magnitude which will not distort net income of the current 
accounting year. Income taxes applicable to special income credits or 
debits recorded in profit and loss classification 9700 Extraordinary 
Items, and other material income tax items not allocable to income of 
the current accounting year, shall not be included in this 
classification but in profit and loss classification 9700 Extraordinary 
Items.
    (5) Discontinued operations. This primary classification (9600) 
shall include earnings and losses of discontinued nontransport 
operations and gains or losses from the disposal of nontransport 
operations the result of which are customarily accounted for through 
profit and loss objective accounts 86, 87 and 88.2.
    (6) Extraordinary items. This primary classification (9700) shall 
include material items characterized by their unusual nature and 
infrequent occurrence.
    (7) Cumulative effect of changes in accounting principles. This 
primary classification (9800) shall include the cumulative effect of 
material changes in accounting principles.

[ER-755, 37 FR 19726, Sept. 21, 1972, as amended by ER-841, 39 FR 11997, 
Apr. 2, 1974; ER-980, 42 FR 36, Jan. 3, 1977, Amdt. 241-58, 54 FR 5594, 
Feb. 6, 1989]



Section 9  Functional Classification--Operating Revenues

3900 Transport Revenues.
    This classification is prescribed for all air carrier groups and 
shall include all revenues from the air transportation of traffic of all 
classes. It shall consist of the following subclassifications:

[[Page 136]]

                        3100 Scheduled Services.

    This subclassification shall include revenues from the 
transportation by air of individual passengers or cargo shipments (as 
opposed to charter flights) pursuant to published schedules, including 
extra sections and other flights performed as an integral part of 
published flight schedules.

                       3200 Nonscheduled Services.

    This subclassification shall include revenues from the 
transportation by air of traffic applicable to the performance of 
aircraft charters, and other air transportation services not part of 
services performed pursuant to published flight schedules (but shall not 
include data applicable to flights performed as extra sections to 
published flight schedules, which shall be reported in the 
subclassification 3100 Scheduled Services).

[ER-755, 37 FR 19726, Sept. 21, 1972, as amended by ER-1401, 50 FR 243, 
Jan. 3, 1985]
4800 Transport-Related Revenues.
    (a) This classification is prescribed for all air carrier groups and 
shall include all revenues from the United States Government as direct 
grants or aids for providing air transportation facilities and all 
revenues from services which grow from and are incidental to the air 
transportation services performed by the air carrier.
    (b) Revenues related to services of a magnitude or scope beyond an 
incidental adjunct to air transportation services shall not be included 
in this classification (see section 1-6(b)). Revenues applicable to such 
services shall be included in profit and loss classification 8100, 
Nonoperating Income and Expense-Net, and the accounting modified to 
conform with that of a nontransport division whether or not the service 
is organized as a nontransport division.

[ER-841, 39 FR 11997, Apr. 2, 1974]



Section 10  Functional Classification--Operating Expenses of Group I Air Carriers

5100 Flying Operations.
    (a) This function shall include expenses incurred directly in the 
in-flight operation of aircraft and expenses attaching to the holding of 
aircraft and aircraft operational personnel in readiness for assignment 
to an in-flight status.
    (b) This function shall not include expenses incurred in repairing, 
servicing or storing aircraft, expenses incurred on the ground in 
protecting and controlling the inflight movement of aircraft, or the 
compensation of ground personnel and other expenses incurred in 
scheduling or preparing aircraft or aircraft operational personnel for 
flight assignment. Such expenses shall be included in function 5400 
Maintenance or function 6900 General Services and Administration.
5400 Maintenance.
    (a) This function shall include all expenses, both direct and 
indirect, specifically identifiable with the repair and upkeep of 
property and equipment as may be required to meet operating and safety 
standards; in inspecting or checking property and equipment in 
accordance with prescribed operational standards; and in polishing or 
cleaning property and equipment when such polishing or cleaning is not 
an incidental routine in connection with the normal productive use of 
property and equipment.
    (b) This function shall include the cost of direct labor, materials, 
and outside services and maintenances overhead or other costs 
specifically associated with maintenance operations regardless of the 
location at which incurred.
    (c) This function shall not include costs incurred in the 
construction, improvement, or modification of property and equipment 
even when necessitated to meet new or changed operating or safety 
standards. Such costs shall be charged to appropriate property and 
equipment accounts.
    (d) Costs incurred by aircraft handling personnel in visual 
inspection, minor check and servicing of aircraft, while in line 
service, shall not be included in this function when performed as an 
incidental routine during the normal productive use of aircraft but 
shall be included in function 6900 General Services and Administration.
    (e) Each Group I air carrier shall maintain the following 
subfunctions:

[[Page 137]]

                        5200 Direct Maintenance.

    a. This subfunction shall include the costs of labor, materials and 
outside services consumed directly in periodic maintenance operations 
and the maintenance and repair of property and equipment, of all types 
and classes, regardless of the location at which incurred, exclusive of 
costs specifically identified with maintenance property and equipment 
expenses in balance sheet accounts 1630 Equipment, 1639 Improvements to 
Leased Buildings and Equipment, and 1640.1 Maintenance Buildings and 
Improvements which shall be included in subfunction 5300 Maintenance 
Burden.
    b. The cost of direct labor, materials and supplies, as well as 
outside repairs, used in the maintenance and repair of property and 
equipment shall be recorded on running job orders or tickets covering 
repairs and periodic inspections except servicing. Where a number of 
like items are maintained on a group basis, it will be necessary to 
maintain only one job order for each group.
    c. When supervisory personnel such as crew chiefs, inspectors and 
foremen are engaged in direct labor in connection with equipment 
maintenance, a proportionate part of their salaries and wages shall be 
charged to the appropriate direct labor accounts. The cost of 
transporting property to and from shops for repair and maintenance shall 
be included as a part of the cost of the materials and supplies used in 
the repair or maintenance of such property and equipment. Transportation 
charges, customs and duties, etc.; shall be included in the cost of 
repairs and maintenance operations when made by outside parties.

                        5300 Maintenance Burden.

    a. This subfunction shall include all overhead or general expenses 
which are specifically identified with activities involved in periodic 
maintenance operations and the maintenance and repair of property and 
equipment of all types and classes, including the cost of direct labor, 
materials and outside services identified with the maintenance and 
repair of maintenance property and equipment included in balance sheet 
accounts 1630 Equipment, 1639 Improvements to Leased Buildings and 
Equipment, and 1604.1 Maintenance Buildings and Improvements. It shall 
include expenses specifically related to the administration of 
maintenance stocks and stores, the keeping of pertinent maintenance 
operations records, and the scheduling, controlling, planning and 
supervision of maintenance operations.
    b. This subfunction shall not include expenses related to financial 
accounting, purchasing or other overhead activities which are of general 
applicability to all operating functions. Such expenses shall be 
included in function 6900 General Services and Administration.
    c. This subfunction shall include only those expenses attributable 
to the current air transport operations of the air carrier. Maintenance 
burden associated with capital projects of the air carrier, other than 
overhauls of airframes and aircraft engines shall be allocated to such 
projects. Maintenance burden incurred in common with services to other 
companies and operating entities shall be allocated to such services on 
a pro rata basis unless the services are so infrequent in performance or 
small in volume as to result in no appreciable demands upon the air 
carrier's maintenance facilities. When overhauls of airframes or 
aircraft engines are as a consistent practice accounted for on an 
accrual basis instead of being expensed directly, maintenance burden 
shall be allocated to such overhauls on a pro rata basis. Standard 
burden rates may be employed for quarterly allocations of maintenance 
burden provided the rates are reviewed at the close of each calendar 
year. When the actual burden rate for the year differs materially from 
the standard burden rate applied, adjustment shall be made to reflect 
the actual cost incurred for the full accounting year. Allocations of 
maintenance burden to capital projects, and service sales to others 
shall be made through the individual maintenance burden objective 
accounts, except that the air carrier may make such allocations by 
credits to profit and loss account 77 Uncleared Expense Credits provided 
that use of that account will not undermine the significance of the 
individual maintenance burden objective accounts in terms of the expense 
levels associated with the air carrier's air transport services. 
Maintenance burden allocated to overhauls shall be credited to profit 
and loss subaccounts 5372.1 or 5372.6 Airworthiness Allowance 
Provisions.

[ER-755, 37 FR 19726, Sept. 21, 1972, as amended by ER-980, 42 FR 36, 
Jan. 3, 1977; ER-1027, 42 FR 60128, Nov. 25, 1977; ER-1188, 45 FR 48870, 
July 22, 1980; Amdt. 241-58, 54 FR 5595, Feb. 6, 1989]
6900 General Services and Administration.
    This function shall include expenses incurred on the ground in 
controlling and protecting the in-flight movement of aircraft; landing, 
handling, or servicing aircraft on the ground; selling transportation; 
servicing and handling traffic of all classes; promoting the development 
of traffic; administering operations generally; and all other expenses 
not otherwise provided for in functions 5100 Flying Operations, 5400

[[Page 138]]

Maintenance and 7000 Depreciation and Amortization.
7000 Depreciation and Amortization.
    This function shall include all charges to expense to record losses 
suffered through current exhaustion of the serviceability of property 
and equipment due to wear and tear from use and the action of time and 
the elements, which are not replaced by current repairs, as well as 
losses in serviceability caused by obsolescence, supersession, 
discoveries, change in demand or actions by public authority. It shall 
also include charges for the amortization of capitalized developmental 
and preoperating costs, leased property under capital leases and other 
intangible assets applicable to the performance of air transportation. 
(See sections 6-1696, 1830 and 1890.)

[Amdt. 241-58, 54 FR 5595, Feb. 6, 1989]
7100 Transport-Related Expenses.
    (a) This function shall include all expense items applicable to the 
generation of transport-related revenues included in section 9, Function 
4800.
    (b) Such expense related to services of a magnitude or scope beyond 
an incidental adjunct to air transportation services shall not be 
included in this function (see section 1-6(b)). Expenses applicable to 
the generation of such revenues shall be included in profit and loss 
classification 8100, Nonoperating Income and Expense-Net, and the 
accounting modified to conform with that of a nontransport division 
whether or not the service is organized as a nontransport division.
    (c) This function shall also include expenses representing increases 
in costs incurred in common with the air transport service, to the 
extent such increases result from the added transport-related services, 
as well as a pro rata share of the costs incurred by the air carrier in 
operating facilities which are used jointly with others. As a general 
rule, this function shall not include those expenses, other than joint 
facilities costs, which would remain as an essential part of the air 
transport services if the transport-related services were terminated.

[ER-841, 39 FR 11997, Apr. 2, 1974, as amended by ER-1401, 50 FR 243, 
Jan. 3, 1985]



Section 11  Functional Classification--Operating Expenses of Group II and Group III Air Carriers

5100 Flying Operations.
    (a) This function shall include expenses incurred directly in the 
in-flight operation of aircraft and expenses attaching to the holding of 
aircraft and aircraft operational personnel in readiness for assignment 
to an in-flight status.
    (b) This function shall not include expenses incurred in repairing, 
servicing or storing aircraft, expenses incurred on the ground in 
protecting and controlling the in-flight movement of aircraft, or 
compensation of ground personnel and other expenses incurred in 
scheduling or preparing aircraft or aircraft operational personnel for 
flight assignment. Such expenses shall be included in function 5400 
Maintenance, or function 6400 Aircraft and Traffic Servicing.
5400 Maintenance.
    (a) This function shall include all expenses, both direct and 
indirect, incurred in the repair and upkeep of property and equipment as 
may be required to meet operating and safety standards; in inspecting or 
checking property and equipment in accordance with prescribed 
operational standards; and in polishing or cleaning property and 
equipment when such polishing or cleaning is not an incidental routine 
in connection with the normal productive use of property and equipment.
    (b) This function shall include the cost of direct labor, materials, 
and outside services and maintenance overhead or other costs associated 
with maintenance operations regardless of the location at which 
incurred.
    (c) This function shall not include costs incurred in the 
construction, improvement, or modification of property and equipment 
even when necessitated to meet new or changed operating or safety 
standards. Such costs shall be charged to appropriate property and 
equipment accounts.

[[Page 139]]

    (d) Costs incurred by aircraft handling personnel in visual 
inspection, minor check and servicing of aircraft, while in line 
service, shall not be included in this function when performed as an 
incidental routine during the normal productive use of aircraft but 
shall be included in function 6400 Aircraft and Tariff Servicing.
    (e) Both Group II air carriers and Group III air carriers shall 
maintain the following subfunctions:

                        5200 Direct Maintenance.

    a. This subfunction shall include the costs of labor, materials and 
outside services consumed directly in periodic maintenance operations 
and the maintenance and repair of property and equipment of all types 
and classes, regardless of the location at which incurred, exclusive of 
maintenance property and equipment included in balance sheet accounts 
1630 Equipment, 1639 Improvements to Leased Buildings and Equipment, and 
1640.1 Maintenance Buildings and Improvements, which shall be included 
in subfunction 5300 Maintenance Burden.
    b. The cost of direct labor, materials and supplies, as well as 
outside repairs, used in the maintenance and repair of property and 
equipment shall be recorded on running job orders or tickets covering 
repairs and periodic inspections except servicing. Where a number of 
like items are maintained on a group basis, it will be necessary to 
maintain only one job order for each group.
    c. When supervisory personnel such as crew chiefs, inspectors and 
foremen are engaged in direct labor in connection with equipment 
maintenance, a proportionate part of their salaries and wages shall be 
charged to the appropriate direct labor accounts. The cost of 
transporting property to and from shops for repair and maintenance shall 
be included as a part of the cost of the materials and supplies used in 
the repair or maintenance of such property and equipment. Transportation 
charges, customs and duties, etc., shall be included in the cost of 
repairs and maintenance operations when made by outside parties.

                        5300 Maintenance Burden.

    a. This subfunction shall include all overhead or general expenses 
used directly in the activities involved in periodic maintenance 
operations and the maintenance and repair of property and equipment of 
all types and classes, including the cost of direct labor, materials and 
outside services used in the maintenance and repair of maintenance 
property and equipment included in balance sheet accounts 1630 
Equipment, 1639 Improvements to Leased Buildings and Equipment, and 
1640.1 Maintenance Buildings and Improvements. It shall include expenses 
related to the administration of maintenance stocks and stores, the 
keeping of pertinent maintenance operation records, and the scheduling, 
controlling, planning and supervision of maintenance operations.
    b. This subfunction shall not include expenses related to financial 
accounting, purchasing or other overhead activities which are of general 
applicability to all operating functions. Such expenses shall be 
included in function 6800 General and Administrative.
    c. This subfunction shall include only those expenses attributable 
to the current air transport operations of the air carrier. Maintenance 
burden associated with capital projects of the air carrier, other than 
overhauls of airframes and aircraft engines, shall be allocated to such 
projects. Maintenance burden incurred in common with services to other 
companies and operating entities shall be allocated to such services on 
a pro rata basis unless the services are so infrequent in performance or 
small in volume as to result in no appreciable demands upon the air 
carrier's maintenance facilities. When overhauls of airframes or 
aircraft engines are as a consistent practice accounted for on an 
accrual basis instead of being expensed directly, maintenance burden 
shall be allocated to such overhauls on a pro rata basis. Standard 
burden rates may be employed for quarterly allocations of maintenance 
burden provided the rates are reviewed at the close of each calendar 
year. When the actual burden rate for the year differs materially from 
the standard burden rate applied, adjustment shall be made to reflect 
the actual costs incurred for the full accounting year. Allocations of 
maintenance burden to capital projects, and service sales to others 
shall be made through the individual maintenance burden objective 
accounts, except that the air carrier may make such allocations by 
credits to profit and loss account 77 Uncleared Expense Credits under 
such circumstances in which the use of that account will not undermine 
the significance of the individual maintenance burden objective accounts 
in terms of the expense levels associated with the air carrier's air 
transport services. Maintenance burden allocated to overhauls shall be 
credited to profit and loss subaccounts 5372.1 or 5372.6 Airworthiness 
Allowance Provisions.

[ER-755, 37 FR 19726, Sept. 21, 1972, as amended by ER-980, 42 FR 36, 
Jan. 3, 1977; ER-1401, 50 FR 244, Jan. 3, 1985; Amdt. 241-58, 54 FR 
5595, Feb. 6, 1989]
5500 Passenger Service.
    This function shall include all expenses chargeable directly to 
activities contributing to the comfort, safety and convenience of 
passengers while in

[[Page 140]]

flight and when flights are interrupted. It shall not include expenses 
incurred in enplaning or deplaning passengers, or in securing and 
selling passenger transportation and caring for passengers prior to 
entering a flight status. Such expenses shall be included in functions 
6400 Aircraft and Traffic Servicing and 6700 Promotion and Sales, 
respectively.
6400 Aircraft and Traffic Servicing.
    (a) This function shall include the compensation of ground personnel 
and other expenses incurred on the ground incident to the protection and 
control of the in-flight movement of aircraft, scheduling and preparing 
aircraft operational crews for flight assignment, handling and servicing 
aircraft while in line operation, servicing and handling traffic on the 
ground, subsequent to the issuance of documents establishing the air 
carrier's responsibility to provide air transportation, and in-flight 
expenses of handling and protecting all nonpassenger traffic including 
passenger baggage.
    (b) This function shall include only those aircraft servicing and 
cleaning expenses which are incurred as an incidental routine during the 
normal productive use of aircraft in line operations. It shall not 
include expenses incurred in the repair and maintenance of property and 
equipment, or in checking or inspecting property and equipment in 
accordance with prescribed operational standards when such activities 
are not an incidental routine during the normal productive use of 
aircraft. Such expenses shall be included in function 5400 Maintenance.
    (c) This function shall not include expenses incurred in securing 
traffic, arranging aircraft space for traffic sold or in issuing 
documents confirming traffic sales and establishing the air carrier's 
responsibilities to provide air transportation. Such expenses shall be 
included in function 6700 Promotion and Sales. However, for purposes of 
this system of accounts, expenses attributable to the operation of 
airport traffic offices, excluding reservation centers, shall be 
included in this function. Expenses attributable to the operation of 
reservation or aircraft space control centers shall be included in 
function 6700 Promotion and Sales regardless of the location at which 
incurred.
    (d) Group III air carriers shall further subdivide this function as 
follows:

                        6100 Aircraft Servicing.

    a. This subfunction shall include the compensation of ground 
personnel and other expenses incurred on the ground incident to the 
protection and control of the in-flight movement of aircraft; scheduling 
or preparing aircraft operational crews for flight assignment; landing 
and parking aircraft; visual inspection, routine checking, servicing and 
fueling of aircraft; and other expenses incurred on the ground incident 
to readying for arrival and takeoff of aircraft.

                         6200 Traffic Servicing.

    a. This subfunction shall include the compensation of ground 
personnel and other expenses incurred on the ground incident to handling 
traffic of all types and classes on the ground subsequent to the 
issuance of documents establishing the air carrier's responsibility to 
provide air transportation. Expenses attributable to the operation of 
airport traffic offices shall also be included in this subfunction; 
expenses attributable to reservations centers shall be excluded. It 
shall include expenses incurred in both enplaning and deplaning traffic 
as well as expenses incurred in preparation for enplanement and all 
expenses subsequent to deplane ment.
    b. This subfunction shall also include costs incurred in handling 
and protecting all nonpassenger traffic while in flight. It shall not 
include expenses incurred in contributing to the comfort, safety and 
convenience of passengers while in flight or when flights are 
interrupted. Such expenses shall be included in function 5500 Passenger 
Service.

                     6300 Servicing Administration.

    a. This subfunction shall include expenses of a general nature 
incurred in performing supervisory or administrative activities relating 
solely and in common to subfunctions 6100 Aircraft Servicing and 6200 
Traffic Servicing.
    b. This subfunction shall not include supervisory or administrative 
expenses which can be charged directly to subfunction 6100 Aircraft 
Servicing or subfunction 6200 Traffic Servicing. Nor shall this 
subfunction include expenses of a general administrative character and 
of significant amount regularly contributing to operating functions 
generally. Such expenses shall be included in function 6800 General and 
Administrative.
    c. The expenses in this subfunction shall be recorded separately for 
each geographic location at which incurred.

[[Page 141]]

6700 Promotion and Sales.
    (a) This function shall include expenses incurred in creating public 
preference for the air carrier and its services; stimulating the 
development of the air transport market; and promoting the air carrier 
or developing air transportation generally.
    (b) It shall also include the compensation of personnel and other 
expenses incident to documenting sales; expenses incident to controlling 
and arranging or confirming aircraft space for traffic sold; expenses 
incurred in direct sales solicitation and selling of aircraft space; and 
expenses incurred in developing tariffs and schedules for publication.
    (c) This function shall not include expenses incurred in handling 
traffic subsequent to the issuance of documents establishing the air 
carrier's responsibility to provide air transportation which shall be 
included in functions 5500 Passenger Service and 6400 Aircraft and 
Traffic Servicing. However, for purposes of this system of accounts, 
expenses attributable to the operation of airport traffic offices, 
excluding reservation centers, shall be included in function 6400 
Aircraft and Traffic Servicing. Expenses attributable to the operation 
of reservation or aircraft space control centers shall be included in 
function 6700 Promotion and Sales regardless of the location at which 
incurred.
    (d) Group III air carriers shall subdivide this function as follows:

                      6500 Reservations and Sales.

    This subfunction shall include expenses incident to direct sales 
solicitation, documenting sales, controlling and arranging or confirming 
aircraft space sold, and in developing tariffs and schedules for 
publication. It shall also include expenses attributable to the 
operation of city traffic offices. Expenses incurred in stimulating 
traffic and promoting the air carrier or air transportation generally 
shall not be included in this subfunction but in subfunction 6600 
Advertising and Publicity.

                     6600 Advertising and Publicity.

    a. This subfunction shall include expenses incurred in creating 
public preference for the air carrier and its services; stimulating 
development of the air transport market; and promoting the air carrier 
or developing air transportation generally.
    b. This subfunction shall not include expenses incurred in direct 
sales solicitation and selling of aircraft space. Such costs shall be 
included in subfunction 6500 Reservations and Sales.
6800 General and Administrative.
    (a) This function shall include expenses of a general corporate 
nature and expenses incurred in performing activities which contribute 
to more than a single operating function such as general financial 
accounting activities, purchasing activities, representation at law, and 
other general operational administration, which are not directly 
applicable to a particular function.
    (b) This function shall not include expenses incurred directly in 
promoting traffic or in promoting relations of the air carrier generally 
with the public which shall be included in function 6700 Promotion and 
Sales. Nor shall this function include expenses, regularly applicable in 
large part to a specific function, which contribute only incidentally, 
or in small amount, to various other functions. Such expenses when of 
such size as will not distort the function to which predominantly 
related, shall be included in the specific function to which regularly 
related. However, expenses of a general administrative character and of 
significant amount regularly contributing to operating functions 
generally shall be included in this function.
7000 Depreciation and Amortization.
    This function shall include all charges to expense to record losses 
suffered through current exhaustion of the serviceability of property 
and equipment due to wear and tear from use and the action of time and 
the elements, which are not replaced by current repairs, as well as 
losses in serviceability occasioned by obsolescence, supersession, 
discoveries, change in popular demand or action by public authority. It 
shall also include charges for the amortization of capitalized 
developmental and preoperating costs, leased property under capital 
leases, and other intangible assets applicable

[[Page 142]]

to the performance of air transportation. (See sections 6-1696, 1830 and 
1890.)

[Amdt. 241-58, 54 FR 5595, Feb. 6, 1989]
7100 Transport-Related Expenses.
    (a) This function shall include all expense items applicable to the 
generation of transport-related revenues included in section 9, Function 
4800.
    (b) Such expense related to services of a magnitude or scope beyond 
an incidental adjunct to air transportation services shall not be 
included in this function (see section 1-6(b)). Expenses applicable to 
the generation of such revenues shall be included in profit and loss 
classification 8100, Nonoperating Income and Expense-Net, and the 
accounting modified to conform with that of a nontransport division 
whether or not the service is organized as a nontransport division.
    (c) This function shall also include expenses representing increases 
in costs incurred in common with the air transport service, to the 
extent such increases result from the added transport-related services, 
as well as a pro rata share of the costs incurred by the air carrier in 
operating facilities which are used jointly with others. As a general 
rule, this function shall not include those expenses, other than joint 
facilities, costs, which would remain as an essential part of the air 
transport services if the transport-related services were terminated.

[ER-841, 39 FR 11997, Apr. 2, 1974, as amended by ER-1401, 50 FR 244, 
Jan. 3, 1985]



Section 12  Objective Classification--Operating Revenues and Expenses

00 General Instructions.
    (a) Basic objective accounts, applicable to all air carrier groups, 
are established for recording all revenue and expense elements. These 
basic accounts are in certain areas subdivided to provide greater detail 
for indicated air carrier groups.
    (b) Each air carrier shall credit the gross revenues accruing from 
services ordinarily associated with air transportation and 
transportation-related services to the appropriate account established 
for each revenue source. Expenses incident to transport and transport-
related services shall be charged to the accounts established in this 
section in accordance with the objectives served by each expenditure. 
However, direct costs of forwarding traffic as a result of interrupted 
trips, and refunds of sales, shall be charged to the applicable revenue 
account.
    (c) To the end that the integrity of the prescribed objective 
accounts shall not be impaired, each air carrier shall:
    (1) Charge the appropriate account prescribed for each service 
purchased or expense element incurred expressly for the benefit of the 
air carrier regardless of whether incurred directly by the air carrier 
or through an agent or other intermediary, and (2) except as provided in 
objective account 77, Uncleared Expense Credits, credit or charge, as 
appropriate, the account prescribed for each expense element which may 
be involved in distributions of expenses between (i) separate operating 
entities of the air carrier, (ii) transport-related services and 
transport services, or transport functions, (iii) balance sheet and 
profit and loss elements, and (iv) the air carrier and others, when the 
expenses are incurred initially by or for the benefit of the air 
carrier. At the option of the air carrier, standard rates applicable to 
each objective account comprising a particular pool of expenses subject 
to assignment between two or more activities, may be established for 
proration purposes, provided the rates established are predicated upon 
the experience of the air carrier and are reviewed and modified as 
appropriate at least once each year.

                           Transport Revenues

01 Passenger.
    (a) Record here revenue from the transportation of passengers by 
air, including infants transported at reduced fares, berth charges, 
surcharges for premium services and other similar charges. Revenue from 
airline employees, officers and directors, or other persons, except for 
ministers of religion, who are traveling under reduced-rate 
transportation authorized by 49 U.S.C. 41511(a) and 14 CFR part 223, as 
well as revenue from travel agents, cargo agents and tour conductors 
traveling at reduced fares, and revenues from

[[Page 143]]

service charges for passengers traveling on a nonrevenue basis shall be 
recorded in objective account 19 Air Transport--Other.
    (b) This account shall be subdivided as follows by all air carrier 
groups:

                      01.1 Passenger--First Class.

    Record here revenue from the air transportation of passengers moving 
at either standard fares or premium fares, or at reduced fares not 
predicated upon the use of aircraft space specifically separated from 
first class, and for whom standard or premium quality services are 
provided.

                         01.2 Passenger--Coach.

    Record here revenue from the air transportation of passengers moving 
at special fares reduced from the first class or premium fares which are 
predicated upon both the operation of specifically designated aircraft 
space and a reduction in the quality of service regularly and ordinarily 
provided.

[ER-755, 37 FR 19726, Sept. 21, 1972, as amended by ER-980, 42 FR 36, 
Jan. 3, 1977; 60 FR 66723, Dec. 26, 1995]
05 Mail.
    (a) Record here revenue from the transportation by air of both 
United States and foreign mail.
    (b) Fines and penalties imposed by the United States Government and 
foreign governments in connection with the carriage of mail shall not be 
charged to this account but to profit and loss account 89.9 Other 
Miscellaneous Nonoperating Debits.
    (c) This account shall be subdivided as follows by all air carrier 
groups:

                             05.1 Priority.

    Record here revenue from United States mail for which transportation 
by air is provided on a priority basis.

                            05.2 Nonpriority.

    Record here revenue from United States mail for which transportation 
by air is provided on a space available basis.

                              05.3 Foreign.

    Record here revenue from the transportation by air of mail other 
than United States mail.

[ER-980, 42 FR 36, Jan. 3, 1977, as amended by Amdt. 241-58, 54 FR 5595, 
Feb. 6, 1989]
06 Property.
    (a) Record here revenue from the transportation by air of property 
including excess passenger baggage.
    (b) Revenues resulting from services incidental to the 
transportation services such as collection of shipper's interest 
insurance premiums and charges and fees for service such as pick-up and 
delivery, assembly and distribution, storage and handling, and C.O.D. 
collection shall not be credited to this account but to profit and loss 
account 17 Air Cargo Services.
    (c) This account shall be subdivided as follows by all air carrier 
groups:

                              06.1 Freight.

    Record here revenue from the transportation by air of property other 
than passenger baggage.

                     06.2 Excess Passenger Baggage.

    Record here revenue from the transportation by air of passener 
baggage in excess of fixed free allowance.

[ER-755, 37 FR 19726, Sept. 21, 1972, as amended by ER-1401, 50 FR 244, 
Jan. 3, 1985]
07 Charter.
    (a) Record here the revenue from nonscheduled air transport services 
(except as otherwise required by profit and loss Account 86 Income from 
Nontransport Ventures) where the party receiving the transportation 
obtains exclusive use of an aircraft at either published tariff or other 
contractual rates and the remuneration paid by the party receiving 
transportation accrues directly to, and the responsibility for providing 
transportation is that of, the accounting air carrier. This account 
shall also include revenues from air transport services other than 
inter-airport services, whether scheduled or nonscheduled, where each 
passenger or shipment receiving transportation is individually 
documented and does not obtain exclusive use of an aircraft.
    (b) This account shall not include revenues or fees received from 
other air carriers for flight facilities furnished or operated by the 
accounting air carrier where the remuneration paid by the party 
receiving transportation accrues directly to, and the responsibility for 
providing transportation is that of other air carriers.

[[Page 144]]

Such revenues and related expenses shall be included in profit and loss 
accounts 11, Rents; 13, Interchange Sales; or 18, Other Transport-
Related Revenues and Expenses.
    (c) This account shall be subdivided as follows by all air carrier 
groups:

                             07.1 Passenger.

    Record here revenue from the transportation of passengers and their 
personal baggage.

                             07.2 Property.

    Record here revenue from the transportation of property.

[ER-755, 37 FR 19726, Sept. 21, 1972, as amended by ER-980, 42 FR 37, 
Jan. 3, 1977; ER-1401, 50 FR 244, Jan. 3, 1985]

                 Transport Related Revenues and Expenses

08 Public Service Revenues (Subsidy).
    Record here amounts of compensation received pursuant to the 
provisions of 49 U.S.C. 41733 under rates established by the Department 
of Transportation for the provision of essential air service to small 
communities.

[Amdt. 241-58, 54 FR 5595, Feb. 6, 1989, as amended at 60 FR 66723, Dec. 
26, 1995]
09 In-Flight Sales.
    (a) Record here revenues from and expenses related to transport-
related services performed while in flight.
    (b) This account shall be subdivided as follows by all air carrier 
groups:

                  09.1 Liquor and food--gross revenues.

                 09.2 Movies and stereo--gross revenues.

                       09.3 Other--gross revenues.

               09.4 Liquor and food--depreciation expense.

                  09.5 Liquor and food--other expense.

              09.6 Movies and stereo--depreciation expense.

                 09.7 Movies and stereo--other expense.

                    09.8 Other--depreciation expense.

                          09.9 Other--expense.

10 Restaurant and Food Service (Ground).
    (a) Record here revenues from and expenses related to the operation 
of restaurants and similar facilities, and from sales of food. (See 
section 12-51.)
    (b) This account shall be subdivided as follows by all air carrier 
groups.

                          10.1 Gross revenues.

                       10.2 Depreciation expense.

                           10.3 Other expense.

11 Rents.
    (a) Record here revenues from and expenses related to property and 
equipment owned or leased which has been rented or subleased to others 
exclusive of associated companies. This account shall not include fees 
from the use by others of air carrier aircraft under aircraft 
interchange agreements.
    (b) This account shall be subdivided as follows by all air carrier 
groups:

                          11.1 Gross Revenues.

                       11.2 Depreciation Expense.

                          11.3 Other Expenses.

12 Limousine Service.
    (a) Record here revenues from and expenses related to the operation 
of passenger limousine surface transportation services.
    (b) This account shall be subdivided as follows by all air carrier 
groups:

                          12.1 Gross Revenues.

                       12.2 Depreciation Expense.

                          12.3 Other Expenses.

13 Interchange Sales.
    (a) Record here the revenues or fees from and the expenses related 
to services provided associated companies and other than associated 
companies by the air carrier under aircraft interchange agreements. This 
account shall be charged and the applicable operating expense objective 
accounts shall be credited, except as provided in operating expense 
objective account 77, Uncleared Expense Credits, with the expenses 
attaching to services provided all companies under aircraft interchange 
agreements.
    (b) This account shall not include revenues or expenses related to 
air transportation services performed in the name of and for the account 
of the accounting air carrier. Such revenues

[[Page 145]]

shall be included in applicable transport revenue and operating expense 
objective accounts.
    (c) This account shall be subdivided as follows by all air carrier 
groups:

               13.1 Associated companies--gross revenues.

                      13.2 Outside--gross revenues.

            13.3 Associated companies--depreciation expense.

                13.4 Associated companies--other expense.

                   13.5 Outside--depreciation expense.

                      13.6 Outside--other expense.

14 General Service Sales.
    (a) Record here the revenues, commissions or fees from and expenses 
related to other than air transportation and aircraft interchange 
services provided to associated and outside companies by the air 
carrier. This account shall include the contractual fees or other 
revenues from and expenses related to services provided to associated 
and other companies in the operation of facilities which are used 
jointly with associated and other companies as well as revenues from and 
the costs related to the sale of supplies, parts and repairs sold 
directly or furnished as a part of services to associated and other 
companies.
    (b) This account shall not include consideration received from sales 
of property, equipment, materials or supplies when disposed of as a part 
of a program involving retirement of property and equipment as opposed 
to routine sales and services to associated and other companies unless 
such disposition is conducted as a normal part of the incidental sales 
activity. Such retirement gain or loss shall be included in capital 
gains and losses accounts. Maintenance parts, materials or supplies sold 
as a service to others shall be charged to this account at cost without 
adjustment of related obsolescence or depreciation allowances.
    (c) This account shall be subdivided as follows by all air carrier 
groups:

               14.1 Associated companies--gross revenues.

                      14.2 Outside--gross revenues.

            14.3 Associated companies--depreciation expense.

                14.4 Associated companies--other expense.

                   14.5 Outside--depreciation expense.

                      14.6 Outside--other expense.

[ER-755, 37 FR 19726, Sept. 21, 1972, as amended by ER-980, 42 FR 37, 
Jan. 3, 1977]
16 Substitute (replacement) Service.
    (a) Record here revenues from and expenses related to substitute 
service. This account shall include as revenues all monies received from 
substitute carriers and as expense all monies paid to substitute 
carriers.
    (b) This account shall be subdivided as follows by all air carrier 
groups:

                           16.1 Gross revenue.

                              16.2 Expense.

17 Air Cargo Services.
    (a) Record here fees and other revenues from and expenses related to 
incidental services performed in connection with cargo shipments such as 
pickup and delivery fees, shipper's interest insurance charges, storage 
and handling fees, etc.
    (b) This account shall be subdivided as follows by all air carrier 
groups:

                          17.1 Gross Revenues.

                       17.2 Depreciation Expense.

                          17.3 Other Expenses.

18 Other Transport-Related Revenues and Expenses.
    (a) Record here revenues from and expenses related to transport-
related services not provided for in profit and loss accounts 10 through 
17, inclusive, such as revenues and expenses incident to the operation 
of flight facilities by the accounting air carrier, except those 
operated under aircraft interchange agreements, where the remuneration 
paid by the party receiving transportation accrues directly to, and the 
responsibility for providing transportation is that of, other air 
carriers; and the revenues and expenses incident to

[[Page 146]]

vending machines, parcel rooms, storage facilities, etc.
    (b) [Reserved]
    (c) Revenues from the renting or leasing of property and equipment 
to others shall not be included in this account but in profit and loss 
account 11 Rents.
    (d) This account shall be subdivided as follows by all air carrier 
groups:

                          18.1 Gross Revenues.

                       18.2 Depreciation Expense.

                          18.3 Other Expenses.

19 Air Transport--Other.
    (a) Record here revenues associated with air transportation 
conducted by the air carrier, not provided for in profit and loss 
accounts 01 through 09, inclusive, such as revenue from (1) airline 
employees, officers and directors, or other persons, except for 
ministers of religion, who are traveling under reduced-rate 
transportation authorized by 49 U.S.C. 41511(a) and 14 CFR part 223, as 
well as travel agents, cargo agents and tour conductors traveling at 
reduced fares, (2) service charges for failure to cancel or for late 
cancellation of air transportation reservations, and (3) 
nontransportation service charges collected on both revenue and 
nonrevenue flights.
    (b) Revenues derived from sightseeing, aerial photography, 
advertising, or other special flights shall not be included in this 
account but in account 07 Charter.
    (c) This account shall be subdivided as follows by all air carrier 
groups:

                  19.1 Reservations Cancellation Fees.

                  19.9 Miscellaneous Operating Revenue.

[ER-755, 37 FR 19726, Sept. 21, 1972, as amended by ER-820, 38 FR 24352, 
Sept. 7, 1973; ER-841, 39 FR 11997, Apr. 2, 1974; ER-980, 42 FR 37, Jan. 
3, 1977; 60 FR 66723, Dec. 26, 1995]

                           Transport Expenses

20 General Instructions.
    (a) Each element of expense ordinarily associated with air 
transportation services shall be charged to the accounts established in 
this section in accordance with the objectives served by each 
expenditure. Basic objective accounts, applicable to all air carrier 
groups, are established for recording all expense elements. These basic 
accounts are in certain areas subdivided to provide greater detail for 
indicated air carrier groups.
    (b) To the end that the integrity of the prescribed objective 
accounts shall not be impaired, each air carrier shall:
    (1) Charge the appropriate account prescribed for each service 
purchased or expense element incurred expressly for the benefit of the 
air carrier regardless of whether incurred directly by the air carrier 
or through an agent or other intermediary, and (2) except as provided in 
objective account 77 Uncleared Expense Credits, credit or charge, as 
appropriate, the account prescribed for each expense element which may 
be involved in distributions of expenses between (i) separate operating 
entities of the air carrier, (ii) incidental and transport services or 
transport functions, (iii) balance sheet and profit and loss elements 
and (iv) the air carrier and others, when the expenses are incurred 
initially by or for the benefit of the air carrier. At the option of the 
air carrier, standard rates applicable to each objective account 
comprising a particular pool of expenses subject to assignment between 
two or more activities, may be established for proration purposes, 
provided the rates established are predicated upon the experience of the 
air carrier and are reviewed and modified as appropriate at least once 
each year.
21 General Management Personnel.
    Record here the compensation, including vacation and sick leave pay, 
of general officers and supervisors, and immediate assistants regardless 
of locality at which based, responsible for an activity not provided for 
in profit and loss accounts 25 through 35, inclusive, or an activity 
involving two or more such accounts.
23 Pilots and Copilots.
    Record here the compensation, including vacation and sick leave pay, 
of pilots and copilots assigned or held inactive awaiting assignment to 
flight duty.

[[Page 147]]

24 Other Flight Personnel.
    Record here the compensation, including vacation and sick leave pay, 
of other flight personnel assigned or held inactive awaiting assignment 
to flight status, not responsible for the in-flight management of 
aircraft, such as engineers, navigation officers and cabin attendants.
25 Maintenance Labor.
    (a) Record here the compensation for time of personnel spent 
directly on specific property and equipment maintenance projects. (See 
sections 10 and 11-5200.) Vacation and sick leave pay shall be charged 
to profit and loss account 28 Trainees, Instructors and Unallocated Shop 
Labor.
    (b) This account shall be subdivided as follows:

                   Group II and Group III Air Carriers

            25.1 Labor--Airframes and Other Flight Equipment.

    Record here the direct labor expended upon airframes, spare parts 
related to airframes, and other flight equipment (Other than aircraft 
engines and spare parts related to aircraft engines). Other flight 
equipment shall include instruments, which encompass all gauges, meters, 
measuring devices, and indicators, together with appurtenances thereto 
for installation in aircraft and aircraft engines which are maintaned 
separately from airframes and aircraft engines.

                      25.2 Labor--Aircraft Engines.

    Record here the direct labor expended upon aircraft engines and 
spare parts related to aircraft engines.

                          Group I Air Carriers

                      25.6 Labor--Flight Equipment.

    Record here the direct labor expended upon flight equipment of all 
types and classes.

                         All Air Carrier Groups

               25.9 Labor--Ground Property and Equipment.

    Record here the direct labor expended upon ground property and 
equipment of all types and classes. Direct labor expended upon general 
ground properties shall be charged to subfunction 5200 Direct 
Maintenance; and direct labor expended upon maintenance buildings and 
equipment shall be charged to subfunction 5300 Maintenance Burden.

[ER-755, 37 FR 19726, Sept. 21, 1972, as amended by ER-1401, 50 FR 244, 
Jan. 3, 1985]
26 Aircraft and Traffic Handling Personnel.
    (a) Record here the compensation, including vacation and sick leave 
pay, of personnel of all types and classes, including direct supervisory 
personnel, assigned to ground activities, engaged directly in protecting 
and controlling aircraft in flight, scheduling and preparing flight 
crews for flight assignment, parking and servicing aircraft incidental 
to line operations, and of personnel of all types and classes engaged in 
servicing and handling traffic of all types and classes on the ground.
    (b) This account shall be subdivided as follows by Group II and 
Group III air carriers:

          26.1 General Aircraft and Traffic Handling Personnel.

    Record here compensation of personnel handling or controlling 
aircraft and generally servicing or handling traffic of all types and 
classes whose activities are not identifiable with the particular 
activities provided for in subaccounts 26.2, 26.3, or 26.4, inclusive.

                    26.2 Aircraft Control Personnel.

    Record here compensation of personnel whose activities are 
identifiable with the protection and control of aircraft in flight and 
in scheduling or preparing flight crews for flight assignment.

                   26.3 Passenger Handling Personnel.

    Record here compensation of personnel whose activities are 
identifiable with the handling of passengers.

                     26.4 Cargo Handling Personnel.

    Record here compensation of personnel whose activities are 
identifiable with the handling of passenger baggage, mail, express, or 
freight.
28 Trainees, Instructors, and Unallocated Shop Labor.
    (a) Record here the compensation, including vacation and sick leave 
pay, of instructors and personnel in an off-the-job training status; 
direct maintenance personnel compensation not assigned to specific 
projects; and vacation or sick leave pay of direct maintenance 
personnel.
    (b) This account shall be subdivided as follows by all air carrier 
groups:

[[Page 148]]

                     28.1 Trainees and Instructors.

    Record here the compensation of instructors and personnel in a 
training status.

                      28.2 Unallocated Shop Labor.

    Record here the pay of direct maintenance personnel which has not 
been assigned to profit and loss account 25 Maintenance Labor for time 
spent on specific maintenance projects, and vacation or sick leave pay 
of direct maintenance personnel.
30 Communications Personnel.
    Record here the compensation, including vacation and sick leave pay, 
of personnel of all types and classes, including direct supervisory 
personnel, engaged in local, interstation, or groundair communication 
activities. This account shall include compensation of personnel such as 
radio operators, telephone operators, switchboard operators, teletype 
operators, messengers, etc.
31 Recordkeeping and Statistical Personnel.
    Record here the compensation, including vacation and sick leave pay, 
of personnel including supervisory personnel, whose primary duties 
relate to maintaining records or conducting economic or other analyses 
required for general management controls, such as accountants, 
economists, statisticians, maintenance record clerks, stores record 
clerks, stores receiving and issuing clerks and file clerks. The account 
shall not include personnel engaged in documentation or other activities 
constituting an integral part of activities encompassed by other 
objective accounts.
32 Lawyers and Law Clerks.
    Record here the compensation, including vacation and sick leave pay, 
of air carrier personnel engaged in law research or representing the air 
carrier in matters of law.
33 Traffic Solicitors.
    Record here the compensation, including vacation and sick leave pay, 
of personnel engaged directly in solicitation of traffic of all types 
and classes. This account shall not include compensation of traffic 
office personel engaged in soliciting activities incidental to the 
documenting of sales and assigning aircraft space which shall be 
included in profit and loss account 26 Aircraft and Traffic Handling 
Personnel.
34 Purchasing Personnel.
    (a) Record here the compensation, including vacation and sick leave 
pay, of personnel, including direct supervisory personnel, engaged in 
purchasing activities.
    (b) This account shall include compensation of personnel engaged in 
maintaining purchasing records but shall not include compensation of 
personnel responsible for the control of inventories or stores which 
shall be included in objective account 31 Record Keeping and Statistical 
Personnel. In cases where the responsibility for maintaining purchasing 
and stores records are inseparable, the related compensation may be 
accounted for in accordance with dominant responsibilities.
35 Other Personnel.
    Record here the compensation, including vacation and sick leave pay, 
of personnel whose activities are not identifiable with activities 
provided for in profit and loss accounts 21 through 34, inclusive.
36 Personnel Expenses.
    (a) Record here expenses incurred by officers, executives, directors 
and other personnel, whether for the benefit of the air carrier or for 
the private benefit of such persons, which are directly or indirectly 
borne by the air carrier.
    (b) This account shall include allowances in lieu of expenses as 
well as expenses incurred for travel, lodgings, meals, entertainment of 
individuals or groups of individuals, and membership fees and dues in 
professional or social clubs and associations.
    (c) Records shall be maintained in a conveniently accessible form 
which will separately and clearly document each charge to this account 
in terms of its natural characteristics and contribution to the 
performance of the air carrier's transport operations. The records shall 
be maintained in such manner as will identify specifically the persons 
incurring the cost. Costs for

[[Page 149]]

standby hotel or other facilities maintained for the air carrier's 
personnel generally need not be allocated among the individuals using 
such facilities; however, sufficiently detailed records are required to 
identify the use made of such facilities by each individual.

[ER-755, 37 FR 19726, Sept. 21, 1972, as amended by ER-948, 41 FR 12295, 
Mar. 25, 1976]
37 Communications Purchased.
    Record here expenses, including related taxes, incurred for rental 
of communication services and for communication services of all types 
and classes not provided by personnel of the air carrier, such as 
telegraph, telephone, teletype, private line services, and charges for 
communication services from organizations operated jointly with 
associated companies or others.
38 Light, Heat, Power and Water.
    Record here charges related to the provision of light, heat, power 
and water including related taxes.
39 Traffic Commissions.
    (a) Record here charges by others, including associated companies, 
for commissions arising from sales of transportation. Commissions, fees 
or other charges incurred for general agency services, as opposed to 
commissions arising from sales of transportation, shall not be included 
in this account but in profit and loss account 43 General Services 
Purchased.
    (b) This account shall be subdivided as follows by Group II and 
Group III air carriers.

                      39.1 Commissions--Passenger.

    Record here charges for commissions arising from sales of passenger 
transportation.

                       39.2 Commissions--Property.

    Record here charges for commissions arising from sales of 
nonpassenger transportation.
40 Legal Fees and Expenses.
    Record here expenditures incurred for legal services by counsel 
retained on a fee basis and related expenses reimbursed or borne 
directly by the air carrier and other expenses incurred directly by the 
air carrier for legal supplies not obtainable from the air carrier's 
general stationery stock. This account shall not be charged with legal 
fees or expenses incurred in connection with claims occasioned by 
accidents or other casualties. Such charges shall be accumulated in 
balance sheet account 1890 Other Assets and cleared to profit and loss 
account 58 Injuries, Loss and Damage upon settlement of insurance 
claims. Nor should this account include fees or expenses related to 
developmental projects. Such expenses shall be included, as appropriate, 
in profit and loss account 89.9 Other Miscellaneous Nonoperating Debits 
or balance sheet account 1830 Unamortized Developmental and Preoperating 
Costs.

[ER-980, 42 FR 37, Jan. 3, 1977]
41 Professional and Technical Fees and Expenses.
    Record here fees and expenses, other than legal fees and expenses, 
incurred for outside professional and technical services which are 
reimbursed or borne directly by the air carrier. This account shall not 
include fees or expenses related to developmental projects. Such 
expenses shall be included, as appropriate, in profit and loss account 
89.9 Other Miscellaneous Nonoperating Debits or balance sheet account 
1830 Unamortized Developmental and Preoperating Costs.

[ER-980, 42 FR 37, Jan. 3, 1977]
43 General Services Purchased.
    (a) Record here charges for services performed for the air carrier 
by outside and associated companies which are not identifiable with 
services provided for in profit and loss accounts 37 through 41, 
inclusive, or which are not expressly identified with other objective 
expense accounts.
    (b) Charges from outside and associated companies for services 
provided the air carrier under aircraft interchange agreements or other 
agreements embracing a complete activity or service, such as the 
operating of jointly used ground facilities, shall be included in this 
account for each operating function to which the services contribute. 
Charges for providing aircraft capacity, including charges for 
depreciation and interest on the capital related to the flight equipment

[[Page 150]]

provided, shall be included in function 5100 Flying Operations.
    (c) This account shall be subdivided by each air carrier group, as 
follows:

                   Group II and Group III Air Carriers

            43.1 Airframe and Other Flight Equipment Repairs.

    Record here charges for maintenance or repair of airframes and spare 
parts related to airframes owned or leased by the air carrier. Charges 
for maintenance or repair of other flight equipment (including 
instruments) owned or leased by the air carrier, excluding aircraft 
engines and spare parts related to aircraft engines, shall also be 
recorded here. Instruments shall include all gauges, meters, measuring 
devices, and indicators, together with appurtenances thereto for 
installation in aircraft and aircraft engines, which are maintained 
separately from airframes and aircraft engines. Charges by outside and 
associated companies for maintenance of flight equipment provided under 
aircraft interchange agreements shall not be included in this subaccount 
but in subaccount 43.7 Aircraft Interchange Charges.

                      43.2 Aircraft Engine Repairs.

    Record here charges for maintenance of repair or aircraft engines, 
including spare parts related to aircraft engines owned or leased by the 
air carrier. Charges by outside and associated companies for maintenance 
of aircraft engines provided under aircraft interchange agreements shall 
not be included in this subaccount but in subaccount 43.7 Aircraft 
Interchange Charges.

                          Group I Air Carriers

                     43.6 Flight Equipment Repairs.

    Record here charges for maintenance or repair of flight equipment of 
all types and classes owned or leased by the air carrier. Charges by 
outside and associated companies for maintenance of flight equipment 
provided under aircraft interchange agreements shall not be included in 
this subaccount but in subaccount 43.7 Aircraft Interchange Charges.

                         All Air Carrier Groups

                   43.7 Aircraft Interchange Charges.

    Record here charges by outside and associated companies for 
providing aircraft capacity or services related to the direct operation 
or maintenance of flight equipment under aircraft interchange 
agreements.

                43.8 General Interchange Service Charges.

    Record here charges by outside and associated companies for services 
provided the air carrier under aircraft interchange agreements, other 
than charges related to the direct operation or maintenance of flight 
equipment, including all charges for maintenance and repair of group 
properties, as well as fees or charges for traffic solicitation and 
sales, or supervision and administration covered by the aircraft 
interchange agreements. Charges for depreciation or interest on capital 
related to flight equipment provided under interchange agreements shall 
not be included in this subaccount but in subaccount 43.7 Aircraft 
Interchange Charges.

                          43.9 Other Services.

    Record here charges for maintenance and repair of ground property 
and equipment of all types and classes and other charges for services 
performed by outside and associated companies not provided for 
elsewhere. This subaccount shall include only those charges for services 
not provided for elsewhere in profit and loss accounts 37 to 41, 
inclusive, and subaccounts 43.1 to 43.8, inclusive, embracing a complete 
activity or service provided by outside and associated companies such as 
the operation of traffic offices or other facilities used jointly with 
the air carrier which do not represent reimbursement of specific expense 
elements incurred expressly for the benefit of the air carrier. 
Reimbursement of expenses incurred expressly for the benefit of the air 
carrier shall be entered in appropriate personnel compensation or other 
objective expense accounts. The cost of services received in the repair 
of general ground properties shall be charged to subfunction 5200 Direct 
Maintenance; and services received in the repair of maintenance 
buildings and equipment shall be charged to subfunction 5300 Maintenance 
Burden.

[Amdt. 241-56, 52 FR 9129, Mar. 23, 1987]
44 Landing Fees.
    Record here the charges and fees incurred for landing of aircraft 
while in line operation.
45 Aircraft Fuels and Oils.
    (a) Record here the cost of fuels and oils issued from stocks of the 
air carrier, or delivery directly by others, to aircraft for use in 
flight operations. Adjustments of inventories of aircraft fuel and oil 
shall also be entered in this account. The cost of fuels and oils used 
in repairs and maintenance services and nonrefundable fuel and oil taxes 
shall not be included in this account but in profit and loss accounts 49 
Shop and Servicing Supplies and 69 Taxes--Other than Payroll, 
respectively.

[[Page 151]]

    (b) This account shall be subdivided as follows by Group II and 
Group III air carriers:

                          45.1 Aircraft Fuels.

    Record here the cost of fuels used in flight operations.

                           45.2 Aircraft Oils.

    Record here the cost of oils used in flight operations.
46 Maintenance Materials.
    (a) Record here the cost of materials and supplies consumed directly 
in specific property and equipment maintenance projects.
    (b) This account shall be subdivided as follows:

                   Group II and Group III Air Carriers

          46.1 Materials--Airframes and Other Flight Equipment.

    Record here the cost of materials and supplies consumed directly in 
maintenance of airframes and spare parts related to airframes. Other 
flight equipment (including instruments), excluding aircraft engines and 
spare parts related to aircraft engines, shall also be recorded here. 
Instruments shall include all gauges, meters, measuring devices, and 
indicators, together with appurtenances thereto for installation in 
aircraft and aircraft engines, which are maintained separately from 
airframes and aircraft engines.

                    46.2 Materials--Aircraft Engines.

    Record here the cost of materials and supplies consumed directly in 
maintenance of aircraft engines and spare parts related to aircraft 
engines.

                          Group I Air Carriers

                    46.6 Materials--Flight Equipment.

    Record here the cost of materials and supplies consumed directly in 
the maintenance of flight equipment of all types and classes.

                         All Air Carrier Groups

             46.9 Materials--Ground Property and Equipment.

    Record here the cost of materials and supplies consumed directly in 
the maintenance of ground property and equipment of all types and 
classes. The cost of materials and supplies consumed in the repair of 
general ground properties shall be charged to subfunction 5200 Direct 
Maintenance and materials and supplies consumed in the repair of 
maintenance buildings and equipment shall be charged to subfunction 5300 
Maintenance Burden.

[ER-755, 37 FR 19726, Sept. 21, 1972, as amended by ER-1401, 50 FR 245, 
Jan. 3, 1985]
47 Rentals.
    Record here rentals, fee, or charges incurred in the use of property 
and equipment provided by others. When a lease arrangement provides that 
the amounts paid include charges for maintenance, insurance, or taxes, 
the amounts related thereto shall not be recorded in this account but in 
the appropriate expense account to which related.
49 Shop and Servicing Supplies.
    Record here the cost of supplies and expendable small tools and 
equipment used in maintaining, servicing and cleaning property or 
equipment the cost of which cannot be directly assigned to a specific 
job or type of work.
50 Stationery, Printing and Office Supplies.
    Record here the cost of stationery and forms used by the air carrier 
including the cost of engineering and shipping supplies.
51 Passenger Food Expense.
    (a) Record here the cost of food and refreshments served passengers 
except food costs arising from interrupted trips.
    (b) If the air carrier prepares its own food, the initial cost and 
expenses incurred in the preparation thereof shall be accumulated in a 
clearly identified clearing account through which the cost of food shall 
be cleared to this account, to profit and loss account 36 Personnel 
Expenses, and to profit and loss account 10 Hotel, Restaurant and Food 
Service on bases which appropriately allocate the cost of food served 
passengers, the cost of food provided employees without charge and the 
cost of food sold.
53 Other Supplies.
    Record here the cost of supplies consumed and not provided for 
otherwise.
54 Inventory Adjustments.
    Record here adjustments for overage, shortage or shrinkage of 
inventories

[[Page 152]]

carried in balance sheet account 1300 Spare Parts and Supplies. 
Adjustment of aircraft fuel and oil inventories due to retroactive price 
increases and decreases shall not be included in this account but in 
profit and loss account 45 Aircraft Fuels and Oils. Gains or losses from 
retirements of materials and supplies shall not be recorded in this 
account but in profit and loss account 88.5 Capital Gains and Losses--
Operating Property.

[ER-980, 42 FR 37, Jan. 3, 1977]
55 Insurance--General.
    Record here the cost of public liability and property damage 
insurance and all other general insurance except insurance covering 
liability for injuries, loss, and damage to passengers and cargo, and 
insurance carried for the protection or welfare of employees.

[ER-948, 41 FR 12295, Mar. 25, 1976]
56 Insurance--Traffic Liability.
    Record here the cost of purchased insurance covering liability for 
injuries, loss and damage to passengers and cargo.

[ER-980, 42 FR 37, Jan. 3, 1977]
57 Employee Benefits and Pensions.
    (a) Record here all costs for the benefit or protection of employees 
including all pension expenses whether for payments to or on behalf of 
retired employees or for accruals or annuity payments to provide for 
pensions; and all expenses for accident, sickness, hospital, and death 
benefits to employees or the cost of insurance to provide these 
benefits. Include, also, expenses incurred in medical, educational, or 
recreational activities for the benefit of employees. Do not include 
vacation and sick leave pay, or salaries of doctors, nurses, trainees, 
or instructors, which shall be recorded in the regular salary accounts.
    (b) [Reserved]

[ER-755, 37 FR 19726, Sept. 21, 1972, as amended by ER-980, 42 FR 37, 
Jan. 3, 1977; ER-1188, 45 FR 48871, July 22, 1980]
58 Injuries, Loss and Damage.
    Record here the remainder of gains, losses or costs resulting from 
accidents, casualties or mishandlings, after offsetting insurance 
recoveries, as accumulated until finally determined in balance sheet 
account 1890 Other Assets and Deferred Charges. This account shall not 
include gains or losses from retirement of property and equipment 
resulting from casualties. Such gains or losses shall be recorded in 
appropriate capital gains or losses accounts.

[Amdt. 241-58, 54 FR 5596, Feb. 6, 1989]
59 Schedules and Timetables.
    Record here the production and distribution cost, excluding 
compensation of air carrier personnel, of all operating schedules, 
timetables, circulars and related quick reference charts.

[ER-1401, 50 FR 245, Jan. 3, 1985]
60 Advertising.
    Record here the cost, excluding compensation of air carrier 
personnel, of all space, direct mail, spot and other advertising for the 
purpose of increasing air travel, disseminating air travel information 
and publicizing services offered by the air carrier.
61 Foreign Exchange Gains and Losses.
    Record here gains or losses from transactions involving currency 
translations resulting from normal, routine, current fluctuations in 
rates of foreign exchange. Gains or losses of a nonroutine abnormal 
character and gains or losses which arise from long-term debt principal 
and interest transactions shall not be entered in this account but in 
profit and loss account 85, Foreign Exchange Gains and Losses.

[Amdt. 241-58, 54 FR 5596, Feb. 6, 1989]
62 Other Promotional and Publicity Expenses.
    Record here the costs, excluding compensation of air carrier 
personnel, of producing and distributing publicity releases and other 
expenses, not chargeable to profit and loss accounts 59 and 60, incurred 
for the purpose of publicizing or improving the public relations of the 
air carrier generally.

[[Page 153]]

63 Interrupted Trips Expense.
    Record here expenses allowed or paid for the care and serving of 
passengers because of unscheduled interruptions in passenger journeys. 
Transportation refunds and the cost of forwarding traffic by surface 
common carrier or otherwise as a result of such interruptions shall not 
be charged to this account but to the appropriate operating revenue 
account.
64 Memberships.
    Record here the cost of membership dues in trade associations, 
chambers of commerce, or other business associations and organizations 
together with special assessments related thereto.
65 Corporate and Fiscal Expenses.
    Record here corporate and fiscal fees and expenses of the air 
carrier and all expenses in connection with exchange and transfer of 
capital stock excluding expenses in connection with original issuance of 
capital stock.
66 Uncollectible Accounts.
    Record here losses from uncollectible accounts and allowance 
provisions and adjustments thereto, for such losses. When allowances for 
uncollectible accounts are established, losses as realized shall be 
charged against such allowances and shall not be charged to this 
account.

[ER-980, 42 FR 37, Jan. 3, 1977]
67 Clearance, Customs and Duties.
    Record here clearance, customs, duties and brokerage fees and 
charges applicable to clearing aircraft and traffic.
68 Taxes--Payroll.
    Record here all taxes levied against the air carrier based upon or 
directly relating to compensation of personnel.
69 Taxes--Other Than Payroll.
    (a) Record here all taxes levied against the air carrier not 
otherwise provided for including nonrefundable aircraft fuel and oil 
taxes. Interest and penalties on delinquent taxes shall not be charged 
to this account but to profit and loss accounts 82 Other Interest and 
89.9 Other Miscellaneous Nonoperating Debits, respectively.
    (b) Entries to this account shall clearly reveal each kind of tax 
and the governmental agency to which paid or payable.

[ER-755, 37 FR 19726, Sept. 21, 1972, as amended by ER-980, 42 FR 37, 
Jan. 3, 1977]
71 Other Expenses.
    Record here all expenses ordinarily associated with air 
transportation and its incidental services not provided for otherwise.
72 Aircraft Overhauls.
    (a) Record here airframe and aircraft engine overhauls of the 
current period which are transferred to balance sheet subaccounts 1601.2 
Unamortized Airframe Overhauls or 1602.2 Unamortized Aircraft Engine 
Overhauls. This account shall also include the amount of deferred 
overhauls costs being amortized for the current period. For carriers 
which elect to continue accruing for aircraft overhauls for aircraft 
types acquired before January 1, 1976, as well as for other aircraft of 
the same type acquired after January 1, 1976, the related provisions and 
charges shall be recorded in the appropriate subaccounts of this 
account.
    (b) This account shall be subdivided as follows by all carrier 
groups:

           72.1 Airworthiness Allowance Provisions--Airframes.

    Record here current provisions for effecting an equitable 
distribution of airframe overhaul costs between different accounting 
periods. Record here also credits for airframe overhaul costs incurred 
in the current period which have been charged against related 
airworthiness allowances.

                    72.3 Airframe Overhauls Deferred.

    Record here airframe overhauls of the current period transferred to 
subaccount 1601.2, Unamortized Airframe Overhauls, and the amount of 
deferred airframe overhaul costs amortized for the current period.

       72.6 Airworthiness Allowance Provisions--Aircraft Engines.

    Record here current provisions for effecting an equitable 
distribution of aircraft engine overhauls costs between different 
accounting periods. Record here also credits for aircraft engine 
overhaul costs incurred in the current period which have been charged 
against related airworthiness allowances.

[[Page 154]]

                72.8 Aircraft Engine Overhauls Deferred.

    Record here airframe overhauls of the current period transferred to 
subaccount 1602.2, Unamortized Aircraft Engine Overhauls, and the amount 
of deferred aircraft engine overhaul costs amortized for the current 
period.

[ER-948, 41 FR 12295, Mar. 25, 1976, as amended by ER-1401, 50 FR 245, 
Jan. 3, 1985]
73 Provisions for Obsolescence and Deterioration--Expendable Parts.
    (a) Where allowances for loss in value of flight equipment 
expendable parts are established, provisions for accruals to such 
allowances shall be charged to this account and credited to balance 
sheet account 1311 Allowance for Obsolescence in accordance with the 
provisions of that account.
    (b) This account shall be subdivided as follows by all air carrier 
groups:

                        73.1 Current provisions.

    Record here provisions during the current period for losses in value 
of expendable parts.

                     73.2 Inventory decline credits.

    Record here credits applicable to the current period for any 
adjustments for excess inventory allowance levels determined pursuant to 
section 6-1311.

[ER-980, 42 FR 37, Jan. 3, 1977]
74 Amortization.
    (a) Record here amortization of deferred changes attaching to the 
air transportation services conducted by the air carrier which are not 
prepayments of recurrent expenses ordinarily requiring expenditures of 
working capital within one year.
    (b) This account shall be subdivided as follows by all air carrier 
groups:

              74.1 Developmental and Preoperating Expenses

    Record here amortization of the cost of projects carried in balance 
sheet account 1830 Unamortized Developmental and Preoperating Costs.

                         74.2 Other Intangibles.

    Record here mortization of the cost of intangibles not provided for 
otherwise.

[ER-755, 37 FR 19726, Sept. 21, 1972, as amended by ER-980, 42 FR 38, 
Jan. 3, 1977; Amdt. 241-58, 54 FR 5596, Feb. 6, 1989]
75 Depreciation.
    (a) Record here provisions for depreciation of property and 
equipment carried in balance sheet accounts 1601 through 1640, 
inclusive.
    (b) This account shall be subdivided as follows:

                         All Air Carrier Groups

                      75.1 Depreciation--Airframes.

    Record here provisions for depreciation of property and equipment 
carried in balance subaccount 1601.1 Airframes.

                  75.2 Depreciation--Aircraft Engines.

    Record here provisions for depreciation of property and equipment 
carried in balance sheet subaccount 1602.1 Aircraft Engines.

                   Group II and Group III Air Carriers

                   75.3 Depreciation--Airframe Parts.

    Record here provisions for depreciation of spare airframe 
instruments and parts carried in balance sheet subaccount 1608.1 
Airframe Parts and Assemblies.

                75.4 Depreciation--Aircraft Engine Parts.

    Record here provisions for depreciation of spare aircraft engine 
instruments and parts carried in balance sheet subaccount 1608.5 
Aircraft Engine Parts and Assemblies.

                         All Air Carrier Groups

               75.5 Depreciation--Other Flight Equipment.

    Record here provisions for depreciation of property and equipment 
carried in balance sheet account 1607 Improvements to Leased Flight 
Equipment (exclusive of capitalized overhauls accounted for on a 
deferral and amortization basis) and balance sheet subaccount 1608.9 
Other Parts and Assemblies. Group I air carriers shall also include in 
this subaccount provisions for depreciation of property carried in 
balance sheet account 1608 Flight Equipment Rotable Parts and 
Assemblies.

                  75.6 Depreciation--Flight Equipment.

    This classification is established only for purposes of control by 
the BTS and shall include all charges to operating expenses for 
depreciation of flight equipment of all types and classes.

          75.8 Depreciation--Maintenance Equipment and Hangars.

    Record here provisions for depreciation of maintenance property and 
equipment included in balance sheet accounts 1630 Equipment, 1639 
Improvements to Leased Buildings and Equipment, and 1640.1 Maintenance 
Buildings and Improvements.

[[Page 155]]

               75.9 Depreciation--General Ground Property.

    Record here provisions for depreciation of property and equipment 
included in balance of property and equipment included in balance sheet 
accounts 1630 through 1640, exclusive of provision for depreciation of 
maintenance property and equipment included in account 75.8.

[ER-755, 37 FR 19726, Sept. 21, 1972, as amended by ER-948, 41 FR 12296, 
Mar. 25, 1976; ER-980, 42 FR 38, Jan. 3, 1977; 60 FR 66723, Dec. 26, 
1995]
76 Amortization Expense--Capital Leases.
    (a) Record here amortization charges applicable to assets recorded 
under capital leases in Account 1695--Leased Property under Capital 
Leases.
    (b) This account shall be subdivided as follows by all air carrier 
groups:

            76.1 Amortization--Capitalized Flight Equipment.

    Record here amortization charges applicable to flight equipment 
acquired under capital leases.

      76.2 Amortization--Capitalized Other Property and Equipment.

    Record here the amortization charges applicable to property and 
equipment, other than flight equipment, acquired under capital leases.

[ER-1401, 50 FR 245, Jan. 3, 1985]
77 Uncleared Expense Credits.
    (a) Record here credits to operating expenses, which have not been 
cleared to the objective accounts to which applicable.
    (b) Each air carrier shall credit, or charge as appropriate, the 
objective account prescribed for each expense element which may be 
involved in distribution of expenses between separate reporting entities 
or nontransport divisions of the air carrier. At the option of the air 
carrier, either the individual applicable objective accounts or this 
account may be credited with amounts capitalized, charged against 
incidental services, or otherwise assigned to other than separate 
operating entities of the air carrier provided the aggregate credits to 
this account in each function do not, for any accounting year, distort 
the individual objective accounts of the function to which related and 
all expense credits applicable to complete individual transactions are 
consistently credited either to this account or the individual objective 
accounts to which related. Each air carrier using this account shall 
establish such standard practices as may be prescribed by the BTS or, in 
the absence of such action by the Civil Aeronautics Board, such standard 
practices as will prevent credits to this account from significantly 
distorting the individual objective accounts of each function to which 
related.
    (c) This account shall not be credited with amounts applicable to 
objective accounts of the Flying Operations, Depreciation, and Direct 
Maintenance functions. Credits applicable to such functions shall be 
carried to the individual objective accounts to which applicable.
    (d) This account shall be subdivided as follows by all air carrier 
groups:

               77.8 Uncleared Interchange Expense Credits.

    Record here credits to operating expenses, from operations performed 
for others under aircraft interchange agreements, which have not been 
cleared to the objective accounts to which applicable.

                  77.9 Other Uncleared Expense Credits.

    Record here credits to operating expenses, from other than 
operations under aircraft interchange agreements, which have not been 
cleared to the objective accounts to which applicable.

[ER-755, 37 FR 19726, Sept. 21, 1972, as amended at 60 FR 66723, Dec. 
26, 1995]
78 Direct Maintenance--Flight Equipment.
    This classification is established for purposes of control by the 
BTS and shall include all charges to operating expenses for maintenance 
of flight equipment of all types and classes.

[ER-755, 37 FR 19726, Sept. 21, 1972, as amended at 60 FR 66723, Dec. 
26, 1995]
79 Applied Burden Debit/Credit.
    (a) This classification is established only for purposes of control 
by the BTS and reporting on Form 41 by air carriers, and shall reflect 
all maintenance burden applied in accordance with the provisions of 
section 24, schedule P-5 of this system of accounts and reports.

[[Page 156]]

    (b) This classification shall be subdivided as follows by all air 
carrier groups:

                 79.6 Applied Burden--Flight Equipment.

              79.8 Applied Burden--General Ground Property.

[ER-755, 37 FR 19726, Sept. 21, 1972, as amended by ER-979, 38 FR 10926, 
May 3, 1973; 60 FR 66723, Dec. 26, 1995]



Section 14  Objective Classification--Nonoperating Income and Expense

80 Interest Income.
    Included under account 89 Other Nonoperating Income and Expense--
Net.

[ER-1401, 50 FR 245, Jan. 3, 1985]
81 Interest on Long-term Debt and Capital Leases.
    (a) Record here interest expense applicable to long-term debt and 
capitalized leases.
    (b) This account shall be subdivided as follows by all air carrier 
groups:

                 81.1 Interest expense--long-term debt.

    Record here interest on all classes of long-term debt. This includes 
interest expense applicable to all portions of long-term debt which are 
classified as either current (Account 2000) or long-term (Account 2210) 
for balance sheet classification purposes.

                 81.2 Interest expense--capital leases.

    Record here for all capitalized leases, that portion of each lease 
payment which represents interest expense.

[ER-1013, 42 FR 37516, July 21, 1977]
82 Other Interest.
    (a) This account shall be subdivided as follows by all air carrier 
groups:

                 82.1 Interest Expense--Short-Term Debt.

    Record here interest on all classes of short-term debt.

               83.1 Imputed Interest Capitalized--Credit.

    Record here credits related to imputed interest capitalized and 
recorded in asset accounts.

                 83.2 Imputed Interest Deferred--Debit.

    Record here debits related to imputed interest deferred in balance 
sheet account 2390, Other deferred credits.

                 83.3 Imputed Interest Deferred--Credit.

    Record here periodic credits for imputed interest, cleared to this 
account as the amount of such interest in the asset accounts is 
amortized.

                   83.4 Interest Capitalized--Credit.

    Record here interest which is capitalized and recorded in asset 
accounts.

           84.1 Amortization of discount and expense on debt.

    Record here for all classes of debt the amortizations of discount 
and expense on short-term and long-term obligations.

                  84.2 Amortization of premium on debt.

    Record here for all classes of debt the amortizations of premium on 
short-term and long-term obligations.
    (b) [Reserved]

[ER-1401, 50 FR 245, Jan. 3, 1985, as amended by Amdt. 241-58, 54 FR 
5596, Feb. 6, 1989]
83 Capitalized Interest.
    Included under account 82 Other Interest.

[ER-1401, 50 FR 245, Jan. 3, 1985]
84 Amortization of Debt Discount, Premium and Expense.
    Included under account 82 Other Interest.

[ER-1401, 50 FR 245, Jan. 3, 1985]
85 Foreign exchange gains and losses.
    Record here gains and losses from transactions involving currency 
translations resulting from nonroutine abnormal changes in rates of 
foreign exchange and gains or losses which arise from translations of 
long-term debt principal and interest transactions.

[Amdt. 241-58, 54 FR 5596, Feb. 6, 1989]
86 Income from Nontransport Ventures.
    Included under account 89 Other Non-Operating Income and Expense--
Net.

[ER-980, 42 FR 38, Jan. 3, 1977]
87 Equity in Income of Investor Controlled Companies.
    Included under account 89 Other Nonoperating Income and Expense--
Net.

[ER-1401, 50 FR 245, Jan. 3, 1985]

[[Page 157]]

89 Other Nonoperating Income and Expense--Net.
    (a) Record here all debits and credits of a nonoperating character 
which are not otherwise provided for in this section.
    (b) This account shall be subdivided as follows by all air carrier 
groups:

                          80.0 Interest Income.

    (a) Record here interest income from all sources. This account shall 
include as an increase or reduction of interest received the 
proportionate amortization of any discount or premium on the purchase 
price of securities of others held by the air carrier.
    (b) This account shall not include interest on securities issued or 
assumed by the air carrier and subsequently reacquired.

                 86.0 Income from Nontransport Ventures.

    (a) Record here the gross revenues and expenses applicable to 
operations not reasonably considered as incidental to the commercial air 
transport services of the accounting entity; rents from nonoperating 
properties used by others; income or loss from nontransport divisions; 
and other income or loss from activities of the air carrier which are 
extraneous to the air transport and incidental services of the 
accounting entity.
    (b) This account shall include revenues and expenses applicable to 
nonscheduled transport services performed for the defense establishment 
when separate reports for such services are required in accordance with 
section 21 ``Introduction to System of Reports.'' Where the foregoing 
transport services are not required to be separately reported, gross 
revenues from such services shall be included in profit and loss account 
07 Charter, or other appropriate revenue account, and gross expenses 
shall be included in the appropriate operating expense functions.

         87.0 Equity in Income of Investor Controlled Companies.

    Record here the equity in the current earnings or losses of investor 
controlled companies. Dividends declared on the stock of such companies 
shall not be included in this account as income but shall be entered in 
balance sheet subaccount 1510.1 Investments in Investor Controlled 
Companies as a return on investment.

            88.1 Intercompany Transaction Adjustment--Credit.

    Record here all intercompany credits for any differences between 
amounts at which transactions between the air carrier and its 
nontransport divisions or associated companies are initially recorded 
and are to be settled.

                          88.2 Dividend income.

    Record here income from dividends declared on stocks of other than 
investor controlled companies. Dividends declared on stock of investor 
controlled companies shall not be included in this account but shall be 
entered in balance sheet subaccount 1510.1 Investments in Investor 
Controlled Companies.

    88.3 Net Unrealized Gain or Loss on Marketable Equity Securities.

    Record here the net unrealized gain or loss on the valuation of 
marketable equity securities.

     88.4 Net Realized Gain or Loss on Marketable Equity Securities.

    Record here the net realized gain or loss on the valuation of 
marketable equity securities.

           88.5 Capital gains and losses--operating property.

    Record here gains or losses on retirements of operating property and 
equipment, flight equipment expendable parts, or miscellaneous materials 
and supplies sold or otherwise retired in connection with a general 
retirement program as opposed to incidental sales performed as a service 
to others.

                  88.6 Capital gains and losses--other.

    Record here gains or losses not required to be reported in accounts 
88.3, 88.4 and 88.5 such as gains or losses on retirement of 
nonoperating property and equipment, investments in other than 
marketable equity securities, and the transfer of assets in a troubled 
debt restructuring.

                     88.7 Unapplied cash discounts.

    Record here cash discounts on routine purchases of materials, repair 
parts or supplies. Cash discounts on classes of assets included in 
property and equipment accounts shall not be recorded in this account 
but shall be applied as a reduction of the cost of such accounts.

             88.9 Other miscellaneous nonoperating credits.

    Record here all credits of a nonoperating character not provided for 
otherwise, such as royalties from patents, gains from reacquisition and 
retirement or resale of debt securities issued by the air carrier, and 
gains resulting from troubled debt restructurings.

            89.1 Intercompany Transaction Adjustment--Debit.

    Record here all intercompany debits for any differences between 
amounts at which transactions between the air carrier and its

[[Page 158]]

nontransport divisions or associated companies are initially recorded 
and are to be settled.

              89.9 Other Miscellaneous Nonoperating Debits.

    Record here all debits of a nonoperating character not provided for 
otherwise, such as the following:
    (a) Fines or penalties imposes by governmental authorities;
    (b) Costs associated with employment discrimination that include the 
following:
    (1) Fines or penalties paid by the carrier as a result of a judicial 
or administrative decree; or the amount paid to the complainant in 
settling or securing a consent decree;
    (2) Back pay awards as a result of a judicial or administrative 
decree or a compromise settlement regardless of admission of guilt;
    (3) Attorneys' fees or court costs awarded to the complainant by a 
judicial or administrative decree or as a result of a compromise 
settlement regardless of admission of guilt;
    (4) The fees of outside legal counsel or of experts retained in the 
unsuccessful defense of a discrimination suit or in securing a 
compromise settlement or consent decree, unless the amounts attributable 
to the discrimination are not reasonably identifiable; or
    (5) Any other expenses, such as employee salaries, resulting from 
employment practices that were found to be discriminatory or that were 
the subject of a compromise settlement or consent decree where the 
amounts attributable to discrimination are reasonably identifiable.
    (c) Amortization expense attributable to capital leases recorded in 
balance sheet Account 1795, Leased Property under Capital Leases;
    (d) Costs related to property held for future use;
    (e) Donations for charitable, social or community welfare purposes;
    (f) Losses on reacquired and retired or resold debt securities of 
the air carrier;
    (g) Losses resulting from troubled debt restructurings;
    (h) Losses on uncollectible nonoperating receivables; or
    (i) Accruals to allowance for uncollectible nonoperating 
receivables.

(Secs. 204, 404, 407, and 1002 of the Federal Aviation Act of 1958, as 
amended, 72 Stat. 743, 760, 766, 788, (49 U.S.C. 1324, 1374, 1377, 
1482))

[ER-980, 42 FR 38, Jan. 3, 1977, as amended by ER-1013, 42 FR 37516, 
July 21, 1977; ER-1027, 42 FR 60128, Nov. 25, 1977; ER-1076, 43 FR 
46296, Oct. 6, 1978; ER-1401, 50 FR 245, Jan. 3, 1985; Amdt. 241-58, 54 
FR 5596, Feb. 6, 1989]



Section 15  Objective Classification--Income Taxes for Current Period

91 Provision for Income Taxes.
    (a) Record here quarterly provisions for accruals of Federal, State, 
local, and foreign taxes based upon net income, computed at the normal 
tax and surtax rates in effect during the current accounting year. In 
general, this account shall reflect provisions within each period for 
currently accruing tax liabilities as actually or constructively 
computed on tax returns, and any subsequent adjustments. This account 
shall include credits for refund claims arising from the carryback of 
losses in the year in which the loss occurs, credits for the carry-
forward of losses in the year to which the loss is carried, and 
investment tax credits in the year in which each credit is utilized to 
reduce the liability for income taxes.
    (b) Income taxes shall be allocated among the transport entities of 
the air carrier, its nontransport divisions, and members of an 
affiliated group. Under circumstances in which income taxes are 
determined on a consolidated basis by an air carrier and other members 
of an affiliated group, the income tax expense to be recorded by the air 
carrier shall be the same as would result if determined for the air 
carrier separately for all time periods, except that the tax effect of 
carryback and carryforward operating losses, investment tax credits, or 
other tax credits generated by operations of the air carrier shall be 
recorded by the air carrier during the period in which applied in 
settlement of the taxes otherwise attributable to any member, or 
combination of members, of the affiliated group. Any difference between 
the income tax so recorded and the amount at which settlement is to be 
made shall be recorded in subaccount 88.1 Intercompany Transaction 
Adjustment--Credit or in subaccount 89.1 Intercompany Transaction 
Adjustment--Debit, as is appropriate.
    (c) This account shall be subdivided as follows by all carrier 
groups:

            91.1 Income Taxes Before Investment Tax Credits.

    Record here accruals of income taxes based upon taxable income of 
the period.

[[Page 159]]

                  91.2 Investment Tax Credits Utilized.

    Record here investment tax credits utilized to reduce the accrued 
liability for income taxes.

[Amdt. 241-58, 54 FR 5596, Feb. 6, 1989]
92 Provisions for Deferred Income Taxes.
    (a) Record here income tax debits and credits deferred in accordance 
with the provisions of balance sheet account 2340 Deferred Income Taxes 
for all material timing differences.
    (b) This account shall be subdivided as follows by all air carrier 
groups:

               92.1 Current Provisions for Deferred Taxes.

                   92.2 Application of Taxes Deferred.

                   92.3 Adjustments of Deferred Taxes.

[ER-948, 41 FR 12296, Mar. 25, 1976]
93 Investment Tax Credits Deferred and Amortized.
    (a) Record here investment tax credits of the current period which 
are transferred to balance sheet account 2345 Deferred Investment Tax 
Credits in accordance with the provisions of balance sheet account 2130 
Accrued Taxes. This account shall also include amounts for previously 
deferred investment tax credits amortized during the current period.
    (b) This account shall be subdivided as follows by all carrier 
groups:

                  93.1 Investment Tax Credits Deferred.

          93.2 Amortization of Deferred Investment Tax Credits.

[ER-755, 37 FR 19726, Sept. 21, 1972, as amended by ER-980, 42 FR 39, 
Jan. 3, 1977]



Section 16  Objective Classification--Discontinued Operations

95 Discontinued Operations.
    (a) Record here the earnings (losses) of discontinued nontransport 
operations. For the purposes of this system of accounts and reports 
discontinued operations shall refer to the disposal of investor 
controlled companies and nontransport ventures whether sold, abandoned, 
spun off, or otherwise disposed of. This account shall not include 
earnings or losses from discontinued transport or transport-related 
operations.
    (b) This account shall be subdivided as follows by all air carrier 
groups:

                95.1 Income from Discontinued Operations.

    Record here the results of operations of the discontinued 
operations.

            95.2 Loss of Disposal of Discontinued Operations.

    Record here the gain or loss on the disposal of an operation. If 
loss is anticipated it should be provided for at the measurement date. 
If gain is anticipated it should be recognized when realized.

[ER-948, 41 FR 12296, Mar. 25, 1976]



Section 17  Objective Classification--Extraordinary Items

96 Extraordinary Items.
    Record here material items characterized by their unusual nature and 
infrequent occurrence. Events or transactions which are material and 
either unusual or nonrecurring, but not both, shall be recorded in the 
profit and loss accounts to which they relate and disclosed on BTS Form 
41 Schedule P-2 with identification as to their nature and financial 
effects.

[Amdt. 241-58, 54 FR 5596, Feb. 6, 1989, as amended at 60 FR 66723, Dec. 
26, 1995]
97 Income Taxes Applicable to Extraordinary Items.
    Record here income taxes allocable to items of income included in 
profit and loss account 96 Extraordinary Items and income tax 
assessments that do not constitute ordinary adjustments of a recurrent 
nature. Records supporting entries to this account shall be maintained 
with sufficient particularity to identify the nature and gross amount of 
each extraordinary credit and each extraordinary debit.

[ER-948, 41 FR 12296, Mar. 25, 1976]



Section 18  Objective Classification--Cumulative Effect of Changes in Accounting Principles

98 Cumulative Effect of Changes in Accounting Principles.
    Record here the difference between the amount of retained earnings 
at the beginning of the period of a change in accounting principle and 
the amount of retained earnings that would have been

[[Page 160]]

reported at that date if the new accounting principle had been applied 
retroactively for all periods which would have been affected and by 
recognizing only the direct effects of a change and the related income 
tax effect.

[ER-948, 41 FR 12296, Mar. 25, 1976]

                  Operating Statistics Classifications



Section 19  Uniform Classification of Operating Statistics



Sec. 19-1  Applicability.

    (a) United States air carrier. Each large certificated U.S. air 
carrier shall file with the Department, on a monthly basis, Form 41 
Schedule T-100 ``U.S. Air Carrier Traffic and Capacity Data By Nonstop 
Segment and On-flight Market,'' and summary data as prescribed in this 
section and in sections 22 and 25 of this part.
    (b) Foreign (non-U.S.) air carrier: Each foreign air carrier as 
required by part 217 of this chapter shall file Form 41 Schedule T-
100(f) ``Foreign Air Carrier Traffic Data by Nonstop Segment and On-
flight Market.'' The ``Instructions to Foreign Air Carriers for 
Reporting Traffic Data on Form 41 Schedule T-100(f),'' (Instructions-
Foreign Air Carriers) are included in the Appendix to Sec. 217.10 of 
this chapter.
    (c) Each U.S. air carrier shall use magnetic computer tape or IBM 
compatible disk for transmitting the prescribed data to the Department. 
Upon good cause shown, OAI may approve the request of a U.S. air 
carrier, under section 1-2 of this part, to use hardcopy data input 
forms or submit data via e-mail.
    (d) On-flight market and nonstop segment detail data by carrier 
shall be made public only as provided in section 19-6.

[53 FR 46305, Nov. 16, 1988; 53 FR 52404, Dec. 28, 1988, as amended at 
60 FR 66723, Dec. 26, 1995; 67 FR 49223, July 30, 2002]



Sec. 19-2  Maintenance of data.

    (a) Each air carrier required to file Form 41 Schedule T-100 data 
shall maintain its operating statistics, covering the movement of 
traffic in accordance with the uniform classifications prescribed. Codes 
are prescribed for each operating element and service class. All traffic 
statistics shall be compiled in terms of each flight stage as actually 
performed.
    (b) Each carrier shall maintain data applicable to the specified 
traffic and capacity elements prescribed in section 19-5 and section 25, 
and by general service classes prescribed in section 19-4 of this part.
    (c) Operating statistics shall be maintained in accordance with the 
type of record, either nonstop segment or on-flight market.



Sec. 19-3  Accessibility and transmittal of data.

    (a) Each reporting air carrier shall maintain its prescribed 
operating statistics in a manner and at such locations as will permit 
ready accessability for examination by representatives of the 
Department. The record retention requirements are prescribed in part 249 
of this chapter.
    (b) [Reserved]
    (c) Form 41 Schedule T-100 reports shall be transmitted in 
accordance with the standard practices established by the Department, 
and must be received by the Department within 30 days following the end 
of each reporting month.

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



Sec. 19-4  Service classes.

    The statistical classifications are designed to reflect the 
operating elements attributable to each distinctive class of service 
offered. The operating elements shall be grouped in accordance with 
their inherent characteristics as follows:
    (a) Scheduled services. Scheduled services shall include traffic and 
capacity elements applicable to air transportation provided pursuant to 
published schedules and extra sections to scheduled flights. Scheduled 
Passenger/Cargo (Service Class F) is a composite of first class, coach, 
and mixed passenger/cargo service. The following classifications shall 
be reported, as applicable:

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

[[Page 161]]

 G--Scheduled All-Cargo
Foreign Air Carriers:
 F--Scheduled Passenger/Cargo
 G--Scheduled All-Cargo

    (b) Nonscheduled services. Nonscheduled services shall include all 
traffic and capacity elements applicable to the performance of 
nonscheduled aircraft charters, and other air transportation services 
not constituting an integral part of services performed pursuant to 
published flight schedules. The following classifications shall be 
reported, as applicable:

U.S. Air Carriers:
 V--Nonscheduled Services (L+N+P+R)
 L--Nonscheduled Civilian Passenger/Cargo
 P--Nonscheduled Civilian Cargo
 N--Nonscheduled Military Passenger/Cargo
 R--Nonscheduled Military Cargo
Foreign Air Carriers:
 L--Nonscheduled Civilian Passenger Cargo
 P--Nonscheduled Civilian All-Cargo Charters
 Q--Nonscheduled Services (Other than Charter)

    (c) All Services. This classification shall reflect, for the 
applicable elements, the aggregate amounts for all services performed by 
the operating entity:

U.S. Air Carriers:
 Z--All Services (V+K)



Sec. 19-5  Air transport traffic and capacity elements.

    (a) Within each of the service classifications prescribed in section 
19-4, data shall be reported as applicable to specified air transport 
traffic and capacity elements.
    (b) These reported items are as follows:

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

    (c) These reported items are further described as follows:
    (1) Reporting period date. The year and month or quarter to which 
the reported data are applicable.
    (2) Carrier, Carrier entity code. Each foreign air carrier shall 
report its name and code (assigned by DOT). Each U.S. air carrier shall 
report its name and entity code (a five digit code assigned by DOT that 
identifies both the carrier and its entity) for its particular 
operations. The Office of Airline Information (OAI) will assign or 
confirm codes

[[Page 162]]

upon request; OAI's address is in the Appendix to section 25 of this 
part and the Appendix to Sec. 217.10 of this chapter.
    (3) Service class code. The service class codes are prescribed in 
section 19-4 of this part. In general, classes are divided into two 
broad categories, either K (scheduled) or V (nonscheduled), where K=F+G 
for all carriers and V=L+N+P+R for U.S. air carriers and comprises L+P 
and Q for foreign air carriers. Refer to section 19-4 for the more 
information on service class codes F, G, L, N, P, R and Q.
    (4) Record type code. This code indicates whether the data pertain 
to nonstop segment (record type S) or on-flight market (record type M).
    (5) Aircraft type code. This code represents the aircraft types, as 
described in the Appendix to section 25 of this part.
    (6) Origin, Destination airport code(s). These codes represent the 
industry designators described in the Appendix to section 25 of this 
part. A common private industry source of these industry designator 
codes is the Official Airline Guides (OAG). OAI will assign codes upon 
request if not listed in the OAG.
    (7) 110 Revenue passengers enplaned. The total number of revenue 
passengers enplaned at the origin point of a flight, boarding the flight 
for the first time; an unduplicated count of passengers in a market. 
Under the T-100 system of reporting, these enplaned passengers are the 
sum of the passengers in the individual on-flight markets. Report only 
the total revenue passengers enplaned in item 110. For all air carriers 
and all entities, item 110 revenue passengers enplaned is reported on 
Form 41 Schedule T-100 in column C-1, as follows:

------------------------------------------------------------------------
                                               All carrier groups and
                                Col.                  entities
------------------------------------------------------------------------
C-1....................  110..............  Revenue passengers enplaned.
------------------------------------------------------------------------

    (8) 130 Revenue passengers transported. The total number of revenue 
passengers transported over single flight stage, including those already 
on board the aircraft from a previous flight stage. Report only the 
total revenue passengers transported in item 130. For all air carriers 
and all entities, item 130 revenue passengers transported is reported on 
Form 41 Schedule T-100 in Column B-7, as follows:

------------------------------------------------------------------------
                                               All carrier groups and
                                Col.                  entities
------------------------------------------------------------------------
B-7....................  130..............  Revenue passengers
                                             transported.
------------------------------------------------------------------------

    (9) 140 Revenue passenger-miles. Computed by multiplying the 
interairport distance of each flight stage by the number of passengers 
transported on that flight stage.
    (10) 210 Revenue cargo tons enplaned. The total number of cargo tons 
enplaned. This data element is a sum of the individual on-flight market 
figures for each of the following categories: 217 Freight and 219 mail. 
This element represents an unduplicated count of the revenue traffic in 
a market.
    (11) 230 Revenue tons transported. The number of tons of revenue 
traffic transported. This element is the sum of the following elements: 
231 Passengers transported-total, 237 Freight, and 239 Mail.
    (12) 240 Revenue ton-miles--total. Ton-miles are computed by 
multiplying the revenue aircraft miles flown (410) on each flight stage 
by the number of tons transported on that stage. This element is the sum 
of 241 through 249.
    (13) 241 Revenue ton-miles--passenger. Equals the number of 
passengers times 200, times interairport distance, divided by 2000. A 
standard weight of 200 pounds per passenger, including baggage, is used 
for all operations and service classes.
    (14) 247 Revenue ton-miles--freight. Equals the volume of freight in 
whole tons times the interairport distance.
    (15) 249 Revenue ton-miles--mail. Equals the volume of mail in whole 
tons times the interairport distance.
    (16) 270 Available capacity-payload. The available capacity is 
collected in pounds. This figure shall reflect the payload or total 
available capacity for passengers, mail and freight applicable to the 
aircraft with which each flight stage is performed.
    (17) 280 Available ton-miles. The aircraft miles flown on each 
flight stage multiplied by the available capacity on the aircraft in 
tons.
    (18) 310 Available seats. The number of seats available for sale. 
This figure reflects the actual number of seats available, excluding 
those blocked for safety

[[Page 163]]

or operational reasons. Report the total available seats in item 310. 
For all air carriers and all entities, item 310 available seats, total 
is reported on Form 41 Schedule T-100 in column B-4, as follows.

------------------------------------------------------------------------
                                               All carrier groups and
                                Col.                  entities
------------------------------------------------------------------------
B-4....................  310..............  Available seats, total.
------------------------------------------------------------------------

    (19) 320 Available seat-miles. The aircraft miles flown on each 
flight stage multiplied by the seat capacity available for sale.
    (20) 410 Revenue aircraft miles flown. Revenue aircraft miles flown 
are computed in accordance with the airport pairs between which service 
is actually performed; miles are generated from the data for scheduled 
aircraft departures (Code 520) times the interairport distances (Code 
501).
    (21) 430 Revenue aircraft miles scheduled. The number of revenue 
aircraft miles scheduled. All such data shall be maintained in 
conformity with the airport pairs between which service is scheduled, 
whether or not in accordance with actual performance.
    (22) 501 Interairport distance. The great circle distance, in 
official statute miles as prescribed in part 247 of this chapter, 
between airports served by each flight stage. Official interairport 
mileage may be obtained from the Office of Airline Information at the 
address included in section 25 of this part.
    (23) Revenue aircraft departures performed. The number of revenue 
aircraft departures performed.
    (24) 520 Revenue aircraft departures scheduled. The number of 
revenue aircraft departures scheduled, whether or not actually 
performed.
    (25) 610 Revenue aircraft hours (airborne). The elapsed time, 
computed from the moment the aircraft leaves the ground until its next 
landing.
    (26) 630 Aircraft hours (ramp-to-ramp). The elapsed time, computed 
from the moment the aircraft first moves under its own power from the 
boarding ramp at one airport to the time it comes to rest at the ramp 
for the next point of landing. This data element is also referred to as 
``block'' and block-to-block aircraft hours.
    (27) 650 Total aircraft hours (airborne). The elapsed time, computed 
from the moment the aircraft leaves the ground until it touches down at 
the next landing. This includes flight training, testing, and ferry 
flights.
    (28) 810 Aircraft days assigned to service--carrier's equipment. The 
number of days that aircraft owned or acquired through rental or lease 
(but not interchange) are in the possession of the reporting air carrier 
and are available for service on the reporting carrier's routes plus the 
number of days such aircraft are in service on routes of others under 
interchange agreements. Includes days in overhaul, or temporarily out of 
service due to schedule cancellations. Excludes days that newly acquired 
aircraft are on hand, but not available for productive use, days rented 
or leased to others (for other than interchange) and days in possession 
but formally withdrawn from air transportation service.
    (29) 820 Aircraft days assigned to service--carrier's routes. The 
same as ``aircraft days assigned to service--carrier's equipment,'' but 
excluding the number of days that the reporting carrier's owned or 
rented equipment are in the possession of others under interchange 
agreements and including the number of days aircraft of others are in 
the possession of the reporting air carrier under interchange 
agreements.
    (30) 921 Aircraft fuels issued (gallons). The amount of aircraft 
fuels issued, in U.S. gallons, during the reporting period for both 
revenue and nonrevenue flights.

[ER-755, 37 FR 19726, Sept. 21, 1972, as amended by Amdt. 241-58, 54 FR 
7184, Feb. 17, 1989; 60 FR 66723, Dec. 26, 1995; 62 FR 6718, Feb. 13, 
1997; 67 FR 49224, July 30, 2002]



Section 19-6  Public disclosure of traffic data.

    (a) Detailed domestic on-flight market data and nonstop segment data 
except military data shall be made publicly available after processing. 
Domestic data are defined as data from air transportation operations 
from a place in any State of the United States, the District of 
Columbia, the Commonwealth of Puerto Rico and the Virgin Islands, or a 
U.S. territory or possession to a place in any State of the United 
States, the District of Columbia, the Commonwealth of Puerto Rico

[[Page 164]]

and the Virgin Islands, or a U.S. territory or possession. Domestic 
military operations are reported under service codes N or R.
    (b) Detailed international on-flight market and nonstop segment data 
in Schedule T-100 and Schedule T-100(f) reports, except military data, 
shall be publicly available immediately following the Department's 
determination that the database is complete, but no earlier than six 
months after the date of the data. Military operations are reported 
under service codes N or R. Data for on-flight markets and nonstop 
segments involving no U.S. point shall not be made publicly available 
for three years. Industry and carrier summary data may be made public 
before the end of six months or the end of three years, as applicable, 
provided there are three or more carriers in the summary data disclosed. 
The Department may, at any time, publish international summary 
statistics without carrier detail. Further, the Department may release 
nonstop segment and on-flight market detail data by carrier before the 
end of the confidentiality period as follows:
    (1) To foreign governments as provided in reciprocal arrangements 
between the foreign country and U.S. Government for exchange of on-
flight market and/or nonstop segment data submitted by air carriers of 
that foreign country and U.S. carriers serving that foreign country;
    (2) To parties to any proceeding before the Department under Title 
IV of the Federal Aviation Act of 1958, as amended, as required by the 
Administrative Law Judge or other decisionmaker of the Department. 
Parties may designate agents or consultants to receive the data in their 
behalf, provided the agents or consultants agree to abide by the 
disclosure restrictions. Any data to which access is granted pursuant to 
this provision may be introduced into evidence, subject to the normal 
rules of admissibility of evidence.
    (3) To agencies and other components of the U.S. Government for 
their internal use only.

[Amdt. 241-59, 56 FR 2845, Jan 25, 1991, as amended at 62 FR 6719, Feb. 
13, 1997; 67 FR 49224, July 30, 2002]



Sec. 19-7  Passenger origin-destination survey.

    (a) All U.S. large certificated air carriers conducting scheduled 
passenger operations (except helicopter carriers) shall participate in a 
Passenger Origin-Destination ( O & D) Survey covering domestic and 
international operations, as described in the instructions manual 
entitled, Instructions to Air Carriers for Collecting and Reporting 
Passenger Origin-Destination Survey Statistics (Appendix A to this 
section), and in Passenger Origin-Destination Directives issued by the 
Department's Bureau of Transportation Statistics (BTS), Office of 
Airline Information (OAI). Copies of these Instructions and Directives 
are provided to each large carrier participating in the Survey. Copies 
are also available from the Office of Airline Information, K-25, Room 
4125, U.S. Department of Transportation, 400 Seventh St., SW., 
Washington, DC 20590.
    (b) Those participating air carriers that have access to automatic 
data processing (ADP) services shall utilize magnetic tape, cartridge, 
floppy diskette or other ADP media for transmitting the prescribed data. 
Those carriers without ADP capability should contact the Office of 
Airline Information for further instructions ((202) 366-4373).
    (c) A statistically valid sample of light coupons shall be selected 
for reporting purposes. The sample shall consist of at least 1 percent 
of the total lifted ticket flight coupons for all large domestic markets 
listed in the Instructions and 10 percent for all others--including 
domestic and international markets. The sample shall be selected and 
reported in accordance with the requirements of paragraph (a) of their 
section, except that the participating O & D carriers with nonstandard 
ticketing procedures, or other special operating characteristics, may 
propose alternative procedures. Such departures from standard O & D 
Survey practices shall not be authorized unless approved in writing by 
the Director, Office of Airline Information under the procedures in Sec. 
1-2 of 14 CFR part 241. The data to be recorded and reported from 
selected lifted ticket flight coupons, as stipulated in the Instructions 
and Directives shall include the

[[Page 165]]

following data elements: Point of origin, carrier on each flight-coupon 
stage, fare-basis code for each flight-coupon stage, points of stopover 
or connection (interline and intraline), point of destination, number of 
passengers, and total dollar value of ticket (fare plus tax).
    (d) Data covering the operations of foreign air carriers that are 
similar to the information collected in the Passenger Origin-Destination 
Survey are generally not available to the Department, the U.S. carriers, 
or U.S. interests. Therefore, because of the damaging competitive impact 
on U.S. carriers and the adverse effect upon the public interest that 
would result from unilateral disclosure of the U.S. survey data, the 
Department has determined its policy to be that the international data 
in the Passenger Origin-Destination Survey shall be disclosed only as 
follows:
    (1) To an air carrier directly participating in and contributing 
input data to the Survey or to a legal or consulting firm designated by 
an air carrier to use on its behalf O & D data in connection with a 
specific assignment by such carrier.
    (2) To parties to any proceeding before the Department to the extent 
that such data are relevant and material to the issues in the proceeding 
upon a determination to this effect by the Administrative Law Judge or 
by the Department's decision-maker. Any data to which access is granted 
pursuant to this section may be introduced into evidence subject to the 
normal rules of admissability of evidence.
    (3) To agencies and other components of the U.S. Government.
    (4) To other persons upon a showing that the release of the data 
will serve specifically identified needs of U.S. users which are 
consistent with U.S. interests.
    (5) To foreign governments and foreign users as provided in formal 
reciprocal arrangements between the foreign and U.S. governments for the 
exchange of comparable O & D data.
    (e) The Department reserves the right to make such other disclosures 
of the O & D data as is consistent with its regulatory functions and 
responsibilities.

Appendix A to Sec. 19-7--Instructions to Air Carriers for Collecting and 
        Reporting Passenger Origin-Destination Survey Statistics

    All questions, comments, extension and waiver requests should be 
addressed to:

Office of Airline Information, K-25, Room 4125, U.S. Department of 
Transportation, 400 Seventh St., SW., Washington, DC 20590, Telephone 
(202) 366-9059.

[[Page 166]]

[GRAPHIC] [TIFF OMITTED] TC30SE91.007

                        B. Narrative Description

    A single O&D Survey is conducted continuously by the large U.S. 
certificated air carriers. Foreign air carriers do not directly 
participate in the Survey, although some of their data are captured in 
the Survey, since passengers who share a ticketed itinerary between a 
U.S. carrier and a foreign carrier may be sampled by the U.S. carrier. 
The authority for these instructions is found in 14 CFR part 241, 
section 19-7, and in the CAB Sunset Act of 1984 (Pub. L. 94-443).
    The Survey samples revenue passenger trips moving in whole or in 
part on domestic and/or international scheduled services of the carriers 
participating in the Survey. In general, these requirements do not apply 
to small certificated, all-cargo and all charter carriers.
    The source documents for the Survey data are passenger tickets. 
These data are collected from the ``lifted'' flight coupons of tickets 
(a portion of a multi-part ticket booklet of three \1\ or more coupons, 
including one for each stage of the passenger's trip itinerary which is 
lifted by the carrier as the passenger boards a particular flight 
segment).
---------------------------------------------------------------------------

    \1\ Each ticket booklet is comprised of one or more flight coupons 
for passenger travel in a city-pair market, plus a passenger coupon (the 
traveler's receipt) and the auditor coupon (for the carrier's internal 
controls).
---------------------------------------------------------------------------

    The Survey data are taken from the coupon that is lifted by a 
participating carrier, unless it is apparent from the lifted coupon that 
another participating carrier has already recorded and reported the 
data, in which instance the ticket coupon is non-reportable for the 
second honoring/participating carrier. The complete passenger itinerary, 
and related data on type of fare and dollar value of the ticket, is 
recorded as

[[Page 167]]

one entry from the sampled, reportable flight coupon.
    The recording of data from the sampled flight coupon normally 
consists of transcribing the information exactly as indicated on the 
ticket. The detail recorded for each trip shows the complete routing 
from the origin city (airport code) to the destination city (airport 
code) including, in sequence from the origin, each point of transfer and 
stopover (intraline and interline), the summarized fare-basis code shown 
for each flight coupon stage of the itinerary, and the total dollar 
value of the fare and tax for the entire ticket.
    Prior to 1987, the Survey was generally based on a 10-percent sample 
of passenger tickets. Beginning July 1, 1987, the Survey is collected 
primarily on the basis of a stratified, scientific sample of at least 1 
percent of tickets in domestic major markets and 10 percent of tickets 
in all other domestic and in all international city-pair markets. The 
Survey data are taken from the selected flight coupons of the tickets 
sampled: single-coupon or double-coupon round trips in domestic major 
markets where the ticket serial number ends in double zero (00) and all 
other ticket coupons ending in zero (0). This procedure yields a ``two-
tiered'' stratified sample.
    Group tickets are included on the basis of a 10-percent sample when 
the number of passengers on such a group ticket is 10 or less. Group 
tickets with more than 10 passengers on each ticket are included on the 
basis of a 100 percent census, i.e., all such tickets are sampled, 
regardless of serial number, and the total data listed are conformed to 
a 10 percent sample for inclusion in the O&D Survey.
    Following the selection of reportable flight coupons and the 
recording of data, each participating carrier shall edit and summarize 
\2\ the data into a quarterly report to the Department.
---------------------------------------------------------------------------

    \2\ These summarization procedures include showing two or more 
passengers with the same itinerary as one O&D record and compressing 
extremely lengthy itineraries (such as around-the-world tickets) into a 
standard trip stage length limit (which may be either seven or twenty-
three stages, at the carrier's option), as explained in Section V.D.
---------------------------------------------------------------------------

                   II. Effective Date of Instructions

    These data collection and reporting instructions are effective on 
and after July 1, 1987 and apply to all flight coupons lifted on or 
after July 1, 1987.

                  III. Carriers Participating in Survey

    A. Participating carriers. As defined in section 19-7 of the 
Department's Economic Regulations (14 CFR part 241), the participants in 
the O&D Survey include all large certificated air carriers conducting 
scheduled passenger services (except helicopter carriers). These 
participating carriers collect and report data in accordance with these 
Instructions, and supplemental Passenger Origin-Destination Directives 
that may be issued periodically. The list of participating carriers will 
be issued by reporting directive under the authority in 14 CFR 
385.27(b).
    B. Amendments to list of participating carriers. As new carriers 
begin service, they will be required to file O&D Survey Data. These 
carriers will not be added to the participating carrier list 
automatically, but will be added when the next annual review is made.

                        IV. Submission of Reports

    A. Period covered by reports. Reports are to be filed for each 
calendar quarter of the year as shown below:

------------------------------------------------------------------------
               Report                         Time period covered
------------------------------------------------------------------------
1st quarter.........................  Jan. 1 through Mar. 31.
2nd quarter.........................  Apr. 1 through June 30.
3rd quarter.........................  July 1 through Sept. 30.
4th quarter.........................  Oct. 1 through Dec. 31.
------------------------------------------------------------------------

    B. Filing date for reports. Reports are to be filed with the 
Department on or before the dates listed below. The mailing address is 
on the inside cover to these instructions.

------------------------------------------------------------------------
                  Report                            Due date \1\
------------------------------------------------------------------------
1st quarter..............................  May 15
2nd quarter..............................  Aug. 15
3rd quarter..............................  Nov. 15
4th quarter..............................  Feb. 15
------------------------------------------------------------------------
\1\ Due dates falling on Saturday, Sunday or national holiday will
  become effective the first following work day.

    C. Format of report. The report may be submitted in any one of the 
following formats:
    (1) ADP media including magnetic tapes and floppy discs.\3\
---------------------------------------------------------------------------

    \3\ Magnetic tapes, floppy discs and similar media will be returned 
to the carriers, upon request, following completion of the processing 
cycle by the Department.
---------------------------------------------------------------------------

    (2) Hard copy BTS Form 2787, in typewritten form, for carriers that 
lack computer capability. Sample formats of the required data appear in 
Sections IX and XII. Supplies of blank Form 2787 are available, upon 
request, from the Director, Office of Airline Information (address on 
inside cover). Any reasonable facsimile of Form 2787 will be acceptable 
in lieu of Form 2787, if approved in advance by the Director.
    D. Number of copies of report to be filed. A participating carrier 
shall file with the Department a single copy of its quarterly O&D data 
report. When ADP submissions are transmitted, the package is to contain 
a transmittal letter describing the contents, and stating the overall 
record and passenger

[[Page 168]]

counts included in the submission. Each submission is to be labeled 
externally as to submitting carrier and time period of the O&D Survey 
data.
    E. Address for filing reports. Reports should be submitted to the 
Director, Office of Airline Information (address on inside cover).

            V. Selection of Sample and Recording of Data.\4\
---------------------------------------------------------------------------

    \4\ Upon approval of the Director, Office of Airline Information, 
carriers may continue current reporting procedures (up to twenty-three 
stages of a passenger flight) and may report a uniform 10 percent sample 
of tickets lifted (each zero ending lifted coupon) without reducing the 
sample size from 10 percent to 1 percent for domestic major markets. 
Note that the domestic major markets will be reviewed each year at June 
30, based on the prior 12 months O&D data, and the list amended as 
necessary. The list could remain static for more than a year, although 
it will be reviewed annually. Necessary amendments will be effective on 
January 1 of the following year.
---------------------------------------------------------------------------

    A. Sampling Basis. Each participating carrier in this O&D Survey 
shall search all listed flight coupons, whether the coupons are its own 
ticket stock or on the ticket stock of another U.S. or foreign carrier 
(either standard IATA and ARC ticket stock or nonstandard ticket stock), 
and is to select for reporting purposes the following flight coupons:
    (1) Major domestic markets. All single-passenger flight coupons that 
are either a single flight coupon ticket or part of a round trip, two 
coupon ticket where the ticket serial number ends in the digits double-
zero (00). Note.--The list of major domestic markets will be issued by 
reporting directive under the authority in 14 CFR 385.27(b).
    (2) International markets and all other domestic markets. (a) All 
single-passenger flight coupons with ticket serial numbers ending with 
the digit zero (0);
    (b) Those group-ticket flight coupons with 10 or fewer passengers 
with ticket serial numbers ending with the digit zero (0);
    (c) Those group-ticket flight coupons with 11 or more passengers 
without regard to serial number; and
    (d) Itineraries in major domestic markets that comprise more than 
two coupons are sampled on a uniform 10 percent basis, by selecting all 
ticket serial numbers ending with the digit zero (0).
    B. Selection of Reportable Flight Coupons. The flight coupons 
identified above are to be examined to isolate the reportable flight 
coupons, i.e. coupons from which data are to be recorded. Flight coupon 
data are reported only by the first honoring and participating carrier 
(operating carrier). Such carriers shall report the required data for 
the entire ticketed itinerary.
    If a participating carrier has preceded an examining carrier on any 
stage in the trip itinerary, including any stage in a conjunction 
itinerary and any stage in a reissued ticket (either before or after 
reissue) that coupon is not reportable.
    For conjunction tickets, the ticket number for the first ticket 
booklet determines if the conjunction tickets should be reported in the 
Survey. Otherwise, conjunction tickets do not require special treatment 
and are governed by the rules for regular tickets.
    No adjustment is made in the Survey for alterations or changes in 
the trip itinerary subsequent to the stage covered by the reportable 
coupon.
    C. Optional Use of Other Sampling Procedures.
    (1) Alternative sampling procedures or alternative O&D data systems 
may be proposed by participating carriers with nonstandard ticketing 
procedures, or other special operating characteristics. Data reported 
under proposed alternative procedures must approximate the usefulness 
and statistical validity of the O&D Survey.
    (2) Such departures from the prescribed O&D Survey practices shall 
not be authorized unless approved in writing by the Director, Office of 
Airline Information (address inside front cover). The proposed 
alternative O&D Survey procedures must be described in detail in the 
letter requesting the waiver.
    D. Recording of Data from Reportable Flight Coupons. (1) The 
following items are to be reported from the reportable flight coupons:
    (a) Point of origin,
    (b) Operating carrier on each flight stage (if unknown, identify 
ticketed carrier),
    (c) Ticketed carrier on each flight stage,
    (d) Fare-basis on each flight coupon, C, D, F, G, X or Y,
    (e) Points of stopover or connection (interline and intraline),
    (f) Point of destination,
    (g) Number of passengers, and
    (h) Total dollar value of ticket (fare plus tax and other charges, 
such as Passenger Facility Charges).
    (2) The individual items are to be recorded in the sequence of 
occurrence in the itinerary as follows:
    (a) All entries for points (airport codes \5\) in an itinerary are 
to be recorded in three-letter airport code data to fit into the stage-
length limitation (seven or twenty-three stages at the carrier's 
option), all airport codes are to be reported, including data on

[[Page 169]]

commuter, foreign, intra-state and other carriers' portions of 
itineraries. Normally codes are recorded as they appear on the ticket. 
However, if a code is obviously incorrect, record the correct code. For 
instance, if a ticket is coded DCA-NYC or Washington/National to New 
York when the flight stage actually operated from Washington, Dulles to 
Newark (EWR), record the correct airport code. When only name spellings 
of a city appear on the ticket for multi-airport cities (such as 
Washington, New York, San Francisco, or Los Angeles), record the 
specific three letter airport code. In cases where two airport codes are 
shown on the ticket for a point, such as when the passenger arrives at 
an airport such as San Francisco and departs from another local airport 
such as Oakland, record the code for the arrival airport, enter a 
surface segment indicator (--) to the departure airport, and record the 
departure airport code. (When the surface portion is at the beginning or 
end of an itinerary, the surface indicator is to be omitted). For 
example:
---------------------------------------------------------------------------

    \5\ Codes to be used are those appearing in the Official Airline 
Guide at the time the data are being recorded. If a code is not found in 
the OAG, contact the Director, Office of Airline Information (address 
inside front cover).

----------------------------------------------------------------------------------------------------------------
 000001      UCA         YV            UA             Y           JFK           TW           TW           X
----------------------------------------------------------------------------------------------------------------
Passenge  Utica     Mesa          United        Fare Code     New York     TWA          TWA          Fare Code
 r(s)               Operating     Ticketed                    Kennedy      Operating    Ticketed
                    Carrier       Carrier                     Airport      Carrier      Carrier
----------------------------------------------------------------------------------------------------------------


                                             Surface Transportation
----------------------------------------------------------------------------------------------------------------
            SFO                                                                                  (Blank space)
----------------------------------------------------------------------------------------------------------------
San Francisco                Operating Carrier                    Ticketed Carrier             Fare Code
----------------------------------------------------------------------------------------------------------------


----------------------------------------------------------------------------------------------------------------
   OAK          UA             UA             G             LAX              DL            DL             F
----------------------------------------------------------------------------------------------------------------
Oakland   United         United         Fare          Los Angeles      Delta          Delta         Fare Code
          Operating      Ticketed                                      Operating      Operating
          Carrier        Carrier                                       Carrier        Carrier
----------------------------------------------------------------------------------------------------------------


----------------------------------------------------------------------------------------------------------------
  SLC         NW            NW             D          PHX          AA           AA           C           LAX
----------------------------------------------------------------------------------------------------------------
Salt     Northwest     Northwest     Fare Code     Phoenix    American     American     Fare Code    Los Angeles
 Lake    Operating     Ticketed                               Operating    Ticketed
 City    Carrier       Carrier                                Carrier      Carrier
----------------------------------------------------------------------------------------------------------------


----------------------------------------------------------------------------------------------------------------
           JL                      JL                    C                  NRT                   04596
----------------------------------------------------------------------------------------------------------------
Japan Air Lines           Japan Air Lines       Fare Code            Tokyo Narita       Dollars of Fare + Tax
Operating                 Ticketed
Carrier                   Carrier
----------------------------------------------------------------------------------------------------------------

    In the above example, the passenger trip stages or segments are 
compressed into the maximum of 7 stages so that several intermediate 
city-pairs (Los Angeles to Seattle to Anchorage, or LAX--SEA--Anc) and 
the related carriers have not been recorded, as prescribed below in this 
Section V.D.(3)(e). In addition, after the fourth city-pair (Los 
Angeles-Salt Lake City), the passenger trip itinerary moves from the 
initial four-part ticket booklet onto another ``conjunction'' ticket, 
and the summary fare code data are not recorded beyond the initial four-
part ticket.
    (b) All entries for operating and ticketed carriers for a coupon 
stage of an itinerary are to be recorded using two character IATA-
assigned or DOT codes, as in the above example. Note that the fare code 
summary was properly inserted after the ticketed carrier's code, i.e., 
UA for United Air Lines and Y for unrestricted coach class service. When 
a two-character carrier code is shown on the ticket, record that code 
for the ticketed carrier. However, if a code is obviously incorrect, 
record the correct carrier code. If the reporting carrier does not know 
the operating carrier on a downline code-share segment, it would use the 
ticketed carrier's code for both the operating and ticketed carriers. 
The reporting carrier is not responsible for knowing the operating 
carrier of a downline code-share where it is not a party to the code-
share segment. Except for the infrequent compression of data to fit into 
the stage-length limitation (7 or 23 stages at the carrier's option), 
all carrier codes are to be recorded, including data on air taxis, 
commuters, intra-state, and other carrier portions of itineraries. On 
tickets involving interchange service or other cooperative carrier 
arrangements, the juncture point(s) where the passenger moves from one 
carrier

[[Page 170]]

system to another is to be recorded as an intermediate point in the 
itinerary, even when not shown on the ticket and even though the flight 
may overfly the juncture point.
    (c) Entries for fare-basis codes are to be taken from the ``fare 
basis'' and ``fare description'' portions of the ticket and simplified 
into the appropriate category, as shown below. No attempt shall be made 
to determine and record fare-basis codes for that portion of a 
conjunction ticket appearing in the ticket. Fare-basis codes are to be 
recorded in one-character alphabetic codes. The fare-basis codes are 
recorded as follows:

C--Unrestricted Business Class
D--Restricted Business Class
F--Unrestricted First Class
G--Restricted First Class
X--Restricted Coach/Economy Class
Y--Unrestricted Coach/Economy Class
U--Unknown (This fare category is used when none is shown on a ticket 
coupon, or when a fare category is not discernible, or when two or more 
carrier fare codes are compressed into a single stage of a passenger 
trip).

    (d) In recording the number of passengers, each single-passenger 
ticket is to be recorded as one passenger. Tickets for infants under two 
years of age not occupying a seat are not to be counted. A revenue 
passenger is defined in Section X.
    For group tickets of 10 or fewer passengers per ticket record the 
actual number of passengers on each ticket, i.e., either 2, 3, 4, 5, 6, 
7, 8, 9 or 10. For group tickets with 11 or more passengers (those 
sampled at a 100-percent rate) record the actual number of passengers 
traveling on each ticket, but keep these entries separate from the group 
ticket records with 10 or fewer passengers and from the single-passenger 
ticket records. Group tickets with 11 or more passengers are to be 
sorted and summarized to combine all passengers for all itineraries 
which are identical in every respect, i.e., points, carriers, fare basis 
codes, and average dollar value (as defined in paragraph (e), below). 
The total number of passengers on each summarized record is to be 
divided by 10, rounding to the nearest whole passenger. If the quotient 
ends in 0.5 or more, raise to the next whole passenger. If the quotient 
ends in less than 0.5, drop the fraction. These large group-ticket 
records, after division by 10 for compatibility with the other data, are 
to be merged with the single-passenger records and with the group-ticket 
entries from tickets of 10 or fewer passengers for the quarterly O&D 
Survey report.
    (e) The total dollar value shall be taken from the ``Total'' box on 
each ticket and shall be the sum of the fare plus tax for the entire 
ticket. Record this amount in whole U.S. dollars, with the cents 
dropped. Do not round cents to nearest whole dollar.
    Amounts on tickets stated in foreign currency are to be converted to 
U.S. dollar equivalents. For all group tickets, the dollar value to be 
recorded shall be the average amount per passenger, determined by 
dividing the total dollar value for the entire group by the number of 
passengers on the group ticket, dropping cents in the average amount.
    (3) The length of the itineraries to be recorded is limited to a 
maximum of seven stages or twenty-three stages, at the carrier's option. 
This recognizes that the vast majority of tickets sampled have seven 
stages or fewer and that the rare occurrences of extremely lengthy 
itineraries do not impact the overall Survey results enough to justify 
their reporting burden. Therefore, trips longer than these limits are 
compressed to fall within the stated maximums. The ticketed origin and 
destination are retained, but the intermediate routing is compressed by 
applying the following rules, in sequence:
    (a) Combine any contiguous open, unknown carrier, or surface stages 
eliminating the connecting point, and ignoring the fare-basis codes, if 
different:
    (b) Combine any contiguous stages via the same non-U.S. carrier, 
eliminating the connecting point, and ignoring the fare-basis codes, if 
different;
    (c) Combine any contiguous stages via different non-U.S. carrier, 
making the carrier ``UK'', eliminating the connecting point, and 
ignoring fare-basis codes, if different:
    (d) Combine any contiguous stages via the same U.S. carrier, 
eliminating the connecting point, and ignoring the fare-basis codes, if 
different, and;
    (e) If the trip, after applying the four steps above, is still too 
long, record the compressed routing through to the stage length 
limitation city (seventh or twenty-third city), enter UK as the final 
carrier, and then record the ticketed destination as the next (the 8th 
or 24th) city.

                   VI. Summarization of Recorded Data

    A. General. Prior to the submission of each quarterly report to the 
Department, each carrier is to summarize the data in accordance with the 
rules in Section VI.B. In special hardship cases, carriers may submit a 
waiver request (with justification under Section 1-2 of 14 CFR part 241) 
requesting permission to report their flight coupon records exactly as 
represented on their lifted tickets. Waiver requests must provide the 
documentation described in Section VI.C. so that the Department can 
develop the necessary procedures and edit routines to ensure the 
accuracy and reliability of the overall O&D Survey results. The granting 
of such waivers will depend upon the availability of resources for the 
Department to assume this

[[Page 171]]

additional burden, which can only be determined on a case by case basis, 
after evaluating each carrier's need.
    B. Rules for Summarization. Sort the recorded entries into sequence 
by the entire record (excluding the passenger field), i.e., by origin, 
complete routing (including fare-basis codes), tickets destination, and 
dollars value of ticket. All identical records are then to be combined 
into one summary record. The number of passengers on the summary record 
is to be the sum of the passenger amounts of all the individual records 
combined. Passengers are only summarized where records are identical in 
all respects except in number of passengers including dollar value of 
ticket. NOTE: DO NOT SUMMARIZE DOLLARS OVER IDENTICAL RECORDS. This 
summarization is to include the entries from group tickets, but only 
after the entries for group tickets with 11 or more passengers have been 
summarized and divided by 10, as stated in Section V.D.(2)(d). Carriers 
submitting quarterly O&D Survey reports on magnetic tapes or similar 
formats such as ``floppy discs'' will follow the ADP INSTRUCTIONS in 
Section IX. Carriers filing reports on hardcopy BTS Forms 2787 are to 
enter, on the last page of the report, the overall total of the number 
of passengers in the report.
    C. Waiver Requests. Requests for permission to depart from the 
required O&D Survey procedures should include a procedural statement 
describing the process the carrier proposed to employ in examining, 
selecting and editing the data from reportable flight coupons for the 
O&D Survey, as well as a flow chart diagramming the proposed procedures.
    D. Quantity and Quality Controls. Carriers are expected to establish 
and maintain continuous quantity and quality controls on the flow of all 
lifted flight coupons through their system processes to determine the 
total number of coupons handled and the number of reportable coupons 
selected. Such data controls and tests have not been specified by the 
Department, and necessarily must be developed by each carrier. Each 
participating carrier shall develop and use on a continuous basis such 
control tests as are necessary to ensure that all reportable coupons are 
being selected, recorded and reported as intended by these O&D Survey 
Instructions. Such controls should extend over all ADP processing, both 
in-house and that from external service bureaus.

                      VII. Editing of Recorded Data

    A. City and Airport Codes. Prior to submission of O&D Survey 
reports, each carrier is to edit the recorded data to validate city and 
airport codes. This edit is to verify that the codes recorded are valid 
official codes, and it is independent of whether or not the carriers 
shown actually operated into or out of the airport shown. Any questions 
about airport codes should be addressed to the Director, Office of 
Airline Information (see inside of cover).
    B. Edit Responsibility of Carriers. Each carrier is responsible for 
developing edit procedures and internal controls over its data entry and 
processing procedures so that valid and reliable data are captured in 
the O&D Survey inputs and are properly summarized in the outputs. Since 
the carriers have many different statistical systems, it is not 
practicable for the Department of Transportation to prescribe specific 
controls in this area, and each carrier is responsible for developing 
the appropriate internal control procedures to edit the O&D Survey data 
and ensure the integrity of these data. The Department will control the 
accuracy of its processing of the sampled data upon receipt from the 
carriers.
    C. System Documentation of Edits. Carriers are required to maintain 
written O&D Survey procedural statements and flow charts. As provided in 
Section VIII, these must be established, or re-certified as of July 1, 
1987, and thereafter when significant procedural revisions occur.

          VIII. Control of Sample Selection and Data Recording

    A. Sample Accuracy and Reliability. In order to maximize the 
accuracy and reliability of the sample selection and data recording, 
each carrier is to:
    (1) Develop a written statement describing the procedures it will 
employ in examining and selecting reportable flight coupons and in 
recording, summarizing, editing, and testing the Survey data.
    (2) Submit any proposed changes in the above procedures to the 
Department's Office of Airline Information, prior to implementation of 
such changes.
    (3) Establish continuous quantity controls on the flow of all lifted 
flight coupons through the carrier's accounting processing to determine 
the total number of coupons handled, and the number of reportable 
coupons selected. Tests are to be made continuously to assure that all 
reportable coupons are being selected and the data recorded. Such tests 
should be completed while the ``lifted'' flight coupons (representing 
earned passenger revenues for flight segments operated) remain in the 
possession of the carrier. Establish such other internal control 
procedures as are necessary for supervising and monitoring the accuracy 
of the recording of data from reportable flight coupons.
    B. Staff Review. The OAI staff will review the carrier procedures 
and practices and may request modifications or the use of special 
procedures necessary to improve the sample or to bolster the controls 
for accuracy and reliability.

[[Page 172]]

                          IX. ADP Instructions

    Each carrier electing to submit its Survey reports in machine 
listing form or magnetic media in lieu of hardcopy BTS Form 2787 is to 
be governed by the following instructions:

        A. Instructions for Submitting Records on Magnetic Media

    (1) Identification record. This identification record is to include 
the reporting carrier and the reporting period. It is designed to fall 
at the beginning of each file when sorted on columns 7 through 200. The 
record is to be in the format shown as follows:\6\
---------------------------------------------------------------------------

    \6\ Each reel of tape will be returned to the individual carrier 
upon request.

------------------------------------------------------------------------
                                         Tape
                                      positions
                Field                   (from-      Tape record layout
                                         to)
------------------------------------------------------------------------
Passenger Count.....................        1-6  1. Passenger field must
                                                  contain leading zeros,
                                                  and no blanks.
1st City Code.......................        7-9
1ST Operating Carrier...............      10-11
1ST Ticketed Carrier................      12-13  2. City field contains
                                                  the 3-letter alpha
                                                  code for the airport
                                                  in the first 3
                                                  positions.
Fare Basis Code.....................         14
2ND City Code.......................      15-17
2nd Operating Carrier...............      18-19
2nd Ticketed Carrier................      20-21
Fare Basis Code.....................         22
3rd City Code.......................      23-25
3rd Operating Carrier...............      26-27
3rd Ticketed Carrier................      28-29
Fare Basis Code.....................         30
4th City Code.......................      31-33  3. Ticketed and
                                                  operating carrier
                                                  fields are to contain
                                                  the 2 character air
                                                  carrier code. An
                                                  unknown carrier is to
                                                  be coded ``UK'' and
                                                  surface carrier is to
                                                  be coded ``-- --''
                                                  (dash dash).
4th Operating Carrier...............      34-35
4th Ticketed Carrier................      36-37
Fare Basis Code.....................         38
5th City Code.......................      39-41
5th Operating Carrier...............      42-43
5th Ticketed Carrier................      44-45
Fare Basis Code.....................         46
6th City Code.......................      47-49  4. Fare basis code is a
                                                  one position alpha
                                                  code.
6th Operating Carrier...............      50-51
6th Ticketed Carrier................      52-53
Fare Basis Code.....................         54  5. Portion of record
                                                  for sorting,
                                                  summarizing, and
                                                  sequencing includes
                                                  columns 7 through 200.
7th City Code.......................      55-57
7th Operating Carrier...............      58-59
7th Ticketed Carrier................      60-61
Fare Basis Code.....................         62
8th City Code.......................      63-65  6. Dollar amount in
                                                  positions 196-200 is
                                                  right justified.
8th Operating Carrier...............      66-67
8th Ticketed Carrier................      68-69
Fare Basis Code.....................         70  7. Positions 66-193 are
                                                  used only by those
                                                  carriers who want to
                                                  report more data, and
                                                  are not compressing to
                                                  7 stages (see Sec.
                                                  V.D. (3) for
                                                  compressing rules.
9th City Code.......................      71-73
9th Operating Carrier...............      74-75
9th Ticketed Carrier................      76-77
Fare Basis Code.....................         78
10th City Code......................      79-81
10th Operating Carrier..............      82-83
10th Ticketed Carrier...............      84-85
Fare Basis Code.....................         86
11th City Code......................      87-89
11th Operating Carrier..............      90-91
11th Ticketed Carrier...............      92-93
Fare Basis Code.....................         94
12th City Code......................      95-97
12th Operating Carrier..............      98-99
12th Ticketed Carrier...............    100-101
Fare Basis Code.....................        102
13th City Code......................    103-105
13th Operating Carrier..............    106-107
13th Ticketed Carrier...............    108-109
Fare Basis Code.....................        110
14th City Code......................    111-113
14th Operating Carrier..............    114-115
14th Ticketed Carrier...............    116-117
Fare Basis Code.....................        118
15th City Code......................    119-121
15th Operating Carrier..............    122-123
15TH Ticketed Carrier...............    124-125
Fare Basis Code.....................        126
16th City Code......................    127-129
16th Operating Carrier..............    130-131
16th Ticketed Carrier...............    132-133
Fare Basis Code.....................        134
17th City Code......................    135-137
17th Operating Carrier..............    138-139
17th Ticketed Carrier...............    140-141
Fare Basis Code.....................        142
18th City Code......................    143-145
18th Operating Carrier..............    146-147
18th Ticketed Carrier...............    148-149
Fare Basis Code.....................        150
19th City Code......................    151-153
19th Operating Carrier..............    154-155
19th Ticketed Carrier...............    156-157
Fare Basis Code.....................        158
20th City Code......................    159-161
20th Operating Carrier..............    162-163
20th Ticketed Carrier...............    164-165
Fare Basis Code.....................        166
21st City Code......................    167-169
21st Operating Carrier..............    170-171
21st Ticketed Carrier...............    172-173
Fare Basis Code.....................        174
22nd City Code......................    175-177
22nd Operating Carrier..............    178-179
22nd Ticketed Carrier...............    180-181
Fare Basis Code.....................        182
23rd City Code......................    183-185
23rd Operating Carrier..............    186-187
23rd Ticketed Carrier...............    188-189
Fare Basis Code.....................        190
24th City Code......................    191-193
Blank...............................    194-195

[[Page 173]]

 
US Value of Ticket in $.............    196-200
------------------------------------------------------------------------


------------------------------------------------------------------------
                Field                   Columns          Remarks
------------------------------------------------------------------------
Reporting carrier....................       1-2  Alpha code.
Reporting period:
  Year...............................       3-4  Tens and units
                                                  position.
  Quarter............................         5  1, 2, 3, or 4.
Blanks...............................     6-200  .......................
------------------------------------------------------------------------

    (2) Detail record. (a) All records are to be summarized on the 
complete itinerary \7\ (columns 7 through 200) and the summary record 
only for each itinerary is to be submitted. The tape file, including the 
identification record, is to be in sequence by complete itinerary.
---------------------------------------------------------------------------

    \7\ Itinerary includes total dollar value of ticket.
---------------------------------------------------------------------------

    (b) The tape record layout is shown on the following page.
    (3) Magnetic Tape Instructions: (a) All tapes are to be written 
using the standard IBM extended binary coded decimal interchange code 
(EBCDIC).
    (b) The recording density can be either 6250 or 1600 B.P.I.
    (c) All tape will contain standard IBM volume header, and trailer 
records.
    (d) External labels will contain the carrier, name, the report date, 
file identification, and an address for returning the tapes.
    (4) Transmittal letter. The tape shall be accompanied by a 
transmittal letter which shows the number of records reported and the 
total number of passengers contained in the report.
    B. Editing of Tape Records. Prior to submission of data, each 
carrier is requested to edit and correct its data so that its O&D Survey 
report may be as error-free as is reasonably practicable. The methods to 
be used in editing are left to the carriers' discretion, but with 
assistance available upon request from the Department's Office of 
Airline Information (OAI). To aid the carriers in maintaining a current 
file of editing criteria, OAI will re-issue, as needed, the city/
airport-carrier file to each participating carrier. There will be a 
five-position field to denote the city/airport-carrier. The first three 
positions denotes the airport and the last two positions denotes the air 
carrier.
    C. Standard Formats for Floppy Disk or Cartridge Submissions. 
Carriers should use the 200 position format with the standard length 
fields prescribed for magnetic media submissions. The record layout is 
detailed in subsection A(1) of this section. However, to simplify the PC 
submissions, the submitter may report the dollar value of the ticket in 
the field immediately after the last reported city code, rather than in 
positions 196-200. Submitters may separate fields by using commas or 
tabs (comma delimited ASCII or tab delimited ASCII format).

                          X. Glossary of Terms

    Selected terms used in the foregoing instructions are here defined 
and explained in the context of the O&D Survey.
    ADP. An abbreviation for automated data processing, which is the 
term applied to all forms of machine processed data.
    Carrier. Any scheduled air carrier, U.S. or foreign, that appears on 
a coupon stage in a ticketed itinerary, including helicopter, air taxi, 
commuter, intra-Alaska carriers, and intra-state carriers.
    City or origin. (See origin.)
    Conjunction ticket. Two or more tickets concurrently issued to a 
passenger and which together constitute a single contract of carriage.
    Connecting point. An intermediate point in an itinerary at which the 
passenger deplanes from one flight and boards another flight, either on 
the same carrier or from the flight of one carrier to a flight of 
another carrier, for continuation of the journey.
    Coupon stage. (See flight-coupon stage.)
    Destination. The last point in the itinerary and the last point at 
which the passenger is to deplane at the completion of the journey. (In 
roundtrip itineraries, the destination and the origin are the same.)
    Dollar value of ticket. (See total dollar value of ticket.)
    Domestic. Itineraries within or between the 50 U.S. States and the 
District of Columbia are considered domestic for this Survey.
    Fare basis code. The alphabetic code(s) or combination of alphabetic 
and numeric codes appearing in the ``Fare basis'' box on the flight 
coupon which describe the applicable service and discount to which the 
passenger is entitled. All fare basis codes are summarized into basic 
categories; namely C--Unrestricted Business Class, D--Restricted 
Business Class, F--Unrestricted First Class, G--Restricted First Class, 
X--Restricted Coach/Economy Class, Y--Unrestricted Coach/Economy Class, 
and U--Unknown (This fare category is used when none is shown on a 
ticket coupon, or when a fare category is not discernible, or when two 
or more carrier fare codes are compressed into a single stage of a 
passenger trip).
    Fare ladder. The ``For-issuing-office-only'' box of a ticket.
    Flight-coupon stage. The portion of an itinerary which lies between 
two contiguous points in the itinerary and between which points the 
passenger is to travel on a single flight.
    Group ticket. A single ticket valid for the transportation of two or 
more passengers over the same itinerary.

[[Page 174]]

    Interline transfer. An occurrence at an intermediate point in an 
itinerary where a passenger changes from one carrier to another carrier, 
with or without a stopover.
    Intermediate point. Any point in an itinerary, other than the origin 
or destination, at which the passenger makes an interline or intraline 
connection or stopover.
    International. The world area outside the 50 U.S. States and the 
District of Columbia. Itineraries between points outside the 50 States 
are considered as international for this Survey, as well as itineraries 
between the 50 States and U.S. possessions, and between or within U.S. 
possessions.
    Intraline transfer. An occurrence at an intermediate point in an 
itinerary where a passenger changes from a flight of one carrier to 
another flight of that same carrier, with or without stopover, or where 
the passenger changes from one class of service to another class of 
service on the same flight.
    Itinerary. All points in the passenger journey, beginning with the 
origin, followed by the routing, and ending with the destination, in the 
sequence shown on the ticket.
    Operating air carrier. Under a code-share arrangement, the air 
carrier whose aircraft and flight crew are used to perform a flight 
segment.
    Origin. The first point in the itinerary and the point where the 
passenger first boards a carrier at the beginning of the itinerary.
    Participating carrier. A carrier which is governed by the Survey 
data collection and reporting instructions contained herein and which is 
required to file Survey reports with the Department of Transportation.
    Point. A city or airport (always identified by its airport code).
    Reissued ticket. A ticket issued in exchange for all or part of the 
unused portion of a previously issued ticket.
    Reportable flight coupon. A flight coupon in an itinerary in which 
the carrier examining the coupon is the first participating carrier to 
lift a flight coupon in the itinerary and from which coupon the 
examining carrier records the Survey data.
    Reporting carrier. The carrier in a given itinerary which has lifted 
the reportable flight coupon in that itinerary and which carrier is 
required to record the Survey data for that itinerary for the report to 
the Department.
    Routing. The carrier on each flight-coupon stage in an itinerary and 
the intermediate points of routing stopover or connection (interline or 
intraline) in the sequence of occurrence in the movement of the 
passenger from origin to destination. The routing also includes fare-
basis summary codes on each flight-coupon stage, to the extent these are 
available from the ticket.
    Scheduled service. Transport service operated on a certificated 
large air carrier's routes pursuant to published flight schedules, 
including extra sections of scheduled flights.
    Stage. (See flight-coupon stage.)
    Ticketed air carrier. Under a code-share arrangement, the air 
carrier whose two-character air carrier code is used for a flight 
segment, whether or not it actually operates the flight segment.
    Total dollar value of ticket. The sum of the fare plus tax for the 
entire ticketed itinerary, in whole U.S. dollars with cents dropped. For 
a group ticket, the amount is the average per passenger. For fares 
stated in foreign currency, it is the equivalent in U.S. dollars.
    Transfer. (See interline transfer and intraline transfer.)

[[Page 175]]

[GRAPHIC] [TIFF OMITTED] TC30SE91.011


[Amdt. No. 241-55, 52 FR 6529, Mar. 5, 1987, as amended at 60 FR 66723, 
66724, Dec. 26, 1995; 62 FR 43280, Aug. 13, 1997; 67 FR 58690, Sept. 18, 
2002]

      General Reporting Provisions--Large Certificated Air Carriers



Section 21  Introduction to System of Reports

    (a) Each large certificated air carrier subject to the Federal 
Aviation Act of 1958, as amended, shall file with the BTS, monthly, 
quarterly, semiannually, and annually BTS Form 41 Reports of financial 
and operating statistics as prescribed herein unless waiver has been 
made by the Civil Aeronautics Board.
    (b) The system prescribed provides for the submission by each air 
carrier of four classes of financial and operating statistics, on 
individual schedules of the BTS Form 41 Report, grouped as follows:

A. Certification.
B. Balance Sheet Elements.
P. Profit and Loss Elements.
T. Traffic and Capacity Elements.


[[Page 176]]


    (c) The prescribed system of reports provides that the frequency of 
reporting shall be monthly for some schedules, quarterly for some, 
semiannually for some and annually for others. It also provides in some 
areas for the classification of large certificated air carriers into 
Group I, Group II, and Group III with the form and content 
differentiated as between groups.
    (d) Each schedule of the prescribed BTS Form 41 Report has been 
assigned a specific code. The prefix alphabetical codes A, B, P and T, 
respectively, have been employed to denote certification, balance sheet, 
profit and loss, and traffic and capacity. The digits immediately 
following the alphabetical prefix designate the particular schedule.
    (e) Upon approval by the Director, Office of Airline Information, a 
carrier may:
    (1) Supply its own computer prepared formats provided each schedule 
conforms with the size and format of the forms prescribed in this part.
    (2) Use telefacsmile, or fax, equipment to submit the forms 
prescribed by this part; however, forms transmitted by fax must conform 
to an 8\1/2\ x 14 inch size. With prior approval, larger forms may be 
reduced in size of 8\1/2\ x 14 for transmission to the Department.
    (f) In submitting each schedule prescribed by this part to the 
Department, each reporting air carrier shall adhere to the following 
guidelines:
    (1) A good quality black ribbon shall be used in preparing the 
original copy of each schedule.
    (2) In no event shall any information be typed on the reverse side 
of copies submitted to the Department.
    (3) Except as provided for in paragraph (e) of this section, no 
photocopy or similar process shall be used.
    (g) Four separate air carrier entities shall be established for 
large certificated air carriers conducting scheduled service for the 
purpose of submitting the prescribed reports. They are as follows: (1) 
Domestic operations; (2) operations via the Atlantic Ocean; (3) 
operations via the Pacific Ocean; and (4) operations in Latin American 
areas. With respect to the first classification, the domestic entity 
shall embrace all operations within and between the 50 States of the 
United States, the District of Columbia, the Commonwealth of Puerto Rico 
and the U.S. Virgin Islands, and shall also include Canadian transborder 
operations. The reports to be submitted by each entity shall be 
comparable to those required of a distinct legal entity whether the 
reporting entity constitutes such an entity, a semiautonomous physically 
separated operating division of the carrier, or an entity established 
for reporting purposes only.
    (h) Two separate entities shall be established for large 
certificated air carriers predominantly engaged in conducting charter 
activities for the purpose of submitting the prescribed reports: (1) 
Domestic operations; and (2) international operations. The domestic 
entity includes all operations within and between the 50 States of the 
United States, the District of Columbia, the Commonwealth of Puerto 
Rico, and the U.S. Virgin Islands. All other operations will be in the 
international entity.
    (i) The entities for which separate reports shall be made by the 
different route and charter air carriers will be set semiannually by the 
Office of Airline Information.
    (j) As a general rule separate reports shall be filed for the air 
carrier and for each associated company air carriers as defined in 
section 03 which is an air carrier. However, transactions of associated 
companies in which 100 percent equity control resides in the reporting 
air carrier shall be consolidated with transactions of the reporting air 
carrier when such associated companies perform services related to the 
transport operations of the reporting air carrier almost exclusively and 
are not engaged in air transportation for their own account.
    (k) Generally, route air carriers' nonscheduled services shall be 
treated as an integral part of the reporting entity to which most 
closely related without regard to the geographic area in which such 
nonscheduled services may actually be performed. However, supplemental 
reports shall be made of nonscheduled services (including service for 
the Department of Defense) in areas not encompassed by the prescribed 
reporting entity in any month in which

[[Page 177]]

the available ton-miles of such nonscheduled services exceed 5 percent 
of the available ton-miles of the reporting entity. Such supplemental 
reports shall continue until waived by the BTS upon a showing that such 
nonscheduled operations will not in the subsequent 12-month period 
exceed the 5-percent limit. The supplemental reports to be filed each 
month or calendar quarter, as applicable, shall be comprised of report 
Schedules P-5, T-1, and T-2. Transport and nontransport revenues 
pertaining to such separately reported nonscheduled services shall be 
reported on Schedule P-2 each quarter.
    (l) When and as required in the national interest, any air carrier 
which performs nonscheduled transport services for the Department of 
Defense shall, when directed by the Department, make separate reports 
for such services as if they were conducted by a physically separate 
transport entity, such reports shall consist of Schedules P-1 through P-
7, T-1, and T-2. The letter ``D'' shall be inserted on such reports, 
following the schedule number of each P and T schedule. When a carrier 
has more than one reporting entity, nonscheduled transport and 
nonscheduled Defense services shall be assigned to the reporting entity 
to which more closely related.

[ER-1027, 42 FR 60128, Nov. 25, 1977, as amended by ER-1073, 43 FR 
40453, Sept. 12, 1978; ER-1073, 44 FR 1970, Jan. 9, 1979; ER-1188, 45 FR 
48871, July 22, 1980; ER-1297, 47 FR 32919, July 30, 1982; ER-1400, 50 
FR 12, Jan. 2, 1985; ER-1401, 50 FR 247, Jan. 3, 1985; Amdt. No. 241-56, 
52 FR 9130, Mar. 23, 1987; Amdt. 241-60, 56 FR 12658, Mar. 27, 1991; 60 
FR 66724, Dec. 26, 1995]



Section 22  General Reporting Instructions

    (a) One copy of each schedule in the BTS Form 41 report shall be 
filed with the BTS and shall be received on or before the due date 
indicated for each such schedule in the list titled ``Due Dates of 
Schedules in BTS Form 41 Report.''

                 List of Schedules in BTS Form 41 Report
                     [See footnotes at end of table]
------------------------------------------------------------------------
                                                Applicability by carrier
                                      Filing              group
  Schedule No.         Title        frequency  -------------------------
                                                   I        II      III
------------------------------------------------------------------------
A..............  Certification...  Q            (1)      X        X
B-1............  Balance sheet...  Q            (1)      X        X
B-1.1..........  Balance sheet...  SA           (2)      NA       NA
B-7............  Airframe and      Q            NA       X        X
                  aircraft engine
                  acquisitions
                  and retirements.
B-12...........  Statement of      Q            (1)      X        X
                  changes in
                  financial
                  position.
B-43...........  Inventory of      A            X        X        X
                  airframes and
                  aircraft
                  engines.
P-1.1..........  Statement of      SA           (2)      NA       NA
                  operations.
P-1.2..........  Statement of      Q            (1)      X        X
                  operations.
P-1(a).........  Interim           M            X        X        X
                  operations
                  report.
P-2............  Notes to RSPA     Q            (1)      X        X
                  Form 41 report.
P-5.1..........  Aircraft          Q(1), SA(2)  X        NA       NA
                  operating
                  expenses.
P-5.2..........  Aircraft          Q            NA       X        X
                  operating
                  expenses.
P-6............  Operating         Q            (1)      X        X
                  expenses by
                  objective
                  groupings.
P-7............  Operating         Q            NA       NA       X
                  expenses by
                  functional
                  groupings--Grou
                  p III air
                  carriers.
P-10...........  Employment        A            (1)      X        X
                  statistics by
                  labor category.
P-12(a)........  Fuel consumption  M            (1)      X        X
                  by type of
                  service and
                  entity.
T-100..........  U.S. air carrier  M            X        X        X
                  traffic and
                  capacity data
                  by nonstop
                  segment and on-
                  flight market.
T-100(f).......  Foreign air       M
                  carrier traffic
                  data by nonstop
                  segment and on-
                  flight market.
                        (see 14 CFR 217)
T-8............  Report of all-    A            (3)      (3)      (3)
                  cargo
                  operations.
------------------------------------------------------------------------
M=Monthly, Q=Quarterly, SA=Semiannually, A=Annually, NA=Not Applicable,
  X=All Carriers.
(1) Applicable to Group I Air Carriers with annual operating revenues of
  $20 million or more.
(2) Appilcable to Group I Air Carriers with annual operating revenues
  below $20 million.
(3) Applicable to Air Carriers conducting 49 U.S.C. 41103 all-cargo
  operations.


[[Page 178]]


              Due Dates of Schedules in BTS Form 41 Report
------------------------------------------------------------------------
                            Financial data on     Traffic and capacity
      Due dates \1\           schedule No.        data on schedule No.
------------------------------------------------------------------------
January 20..............  P-12(a)
January 30..............  P-1(a)                T-100, T-100(f)
February 10 \2\.........  A, B-1, B-1.1, B-7,
                           B-12, P-1.1, P-1.2,
                           P-2, P-5.1, P-5.2,
                           P-6, P-7, P-10.
February 20.............  P-12(a)
March 1.................  P-1(a)                T-100, T-100(f),
March 20................  P-12(a)
March 30................  B-43, P-1(a).         T-100, T-100(f), T-8
April 20................  P-12(a)
April 30................  P-1(a)                T-100, T-100(f)
May 10..................  A, B-1, B-7, B-12, P-
                           1.2, P-2, P-5.1, P-
                           5.2, P-6, P-7.
May 20..................  P-12(a)
May 30..................  P-1(a)                T-100, T-100(f)
June 20.................  P-12(a)
June 30.................  P-1(a)                T-100, T-100(f)
July 20.................  P-12(a)
July 30.................  P-1(a)                T-100, T-100(f)
August 10...............  A, B-1, B-1.1, B-7,
                           B-12, P-1.1, P-1.2,
                           P-2, P-5.1, P-5.2,
                           P-6, P-7.
August 20...............  P-12(a)
August 30...............  P-1(a)                T-100, T-100(f)
September 20............  P-12(a)
September 30............  P-1(a)                T-100, T-100(f)
October 20..............  P-12(a)
October 30..............  P-1(a)                T-100, T-100(f)
November 10.............  A, B-1, B-7, B-12, P-
                           1.2, P-2, P-5.1, P-
                           5.2, P-6, P-7.
November 20.............  P-12(a)
November 30.............  P-1(a)                T-100, T-100(f)
December 20.............  P-12(a)
December 30.............  P-1(a)                T-100, T-100(f)
------------------------------------------------------------------------
\1\ Due dates falling on a Saturday, Sunday or national holiday will
  become effective the first following work day.
\2\ Reporting due dates on Form 41 Schedules B and P are extended to
  March 30 if preliminary schedules are filed at the Department by
  February 10

    (b) Each large certificated air carrier shall file the applicable 
schedules of the BTS Form 41 Report with the BTS in accordance with the 
above instructions with the following exceptions:
    (1) The time for filing B and P report schedules for the final 
quarter or semiannual period of each calendar year may be extended to 
the following March 30 if the preliminary Schedules B-1 or B-1.1 and P-
1.1 or P-1.2 are submitted, as applicable, and are received on or before 
their respective due dates.
    (2) For the third month of any calendar quarter, Schedule P-1(a) 
need not be filed if Schedule P-1.1 or P-1.2 for the quarter or 
semiannual period, as applicable, is received on the due date prescribed 
for Schedule P-1(a).
    (3) Income and expense data on Schedule P-1(a) for each month will 
be withheld by the BTS from public disclosure, until such time as (i) 
the semiannual or quarterly financial reports are due, (ii) the 
semiannual or quarterly financial reports are filed, or (iii) 
information covered by monthly reports is publicly released by the 
carrier concerned, whichever occurs first. Before that time, income and 
expense data reported on Schedule P-1(a) will be disclosed to parties to 
any proceeding before the DOT to the extent that such data are relevant 
and material to the issues in the proceeding upon a determination to 
this effect by the administrative law judge assigned to the case or by 
the DOT. Any data to which access is granted may be introduced into 
evidence, subject to the normal rules of admissibility of evidence. The 
DOT will make other disclosure of these data upon its own motion or upon 
application of any interested person, when the DOT finds the public 
interest so requires. The BTS may, from time to time, publish summary 
information compiled from Schedule P-1(a) in a form which will not 
identify the individual carrier. At the request of an air carrier, and 
upon a showing by such air carriers that public disclosure of its 
preliminary year-end report would adversely affect its interests and 
would not be in the public interest, the BTS will withhold such 
preliminary year-end report from public disclosure until such time as 
(i) the final report is filed, (ii) the final report is due, or (iii) 
information covered by the preliminary report is publicly released by 
the carrier concerned, whichever occurs first.
    (c) If circumstances prevent the filing of a report on or before the 
prescribed due date, consideration will be given to the granting of an 
extension

[[Page 179]]

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

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

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

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

                    Financial Reporting Requirements



Section 23  Certification and Balance Sheet Elements

                        Schedule A--Certification

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

[[Page 180]]

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

                       Schedule B-1 Balance Sheet

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

                      Schedule B-1.1--Balance Sheet

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

[[Page 181]]

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

 Schedule B-7 Airframe and Aircraft Engine Acquisitions and Retirements

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

[[Page 182]]

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

                 Schedule B-12--Statement of Cash Flows

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

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

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

[[Page 183]]

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

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

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



Section 24  Profit and Loss Elements

                 Schedule P-1.1--Statement of Operations

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

[[Page 184]]

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

                 Schedule P-1.2--Statement of Operations

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

[[Page 185]]

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

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

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

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

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

               Schedule P-5.1--Aircraft Operating Expenses

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

[[Page 186]]

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

[[Page 187]]

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

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

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

         Schedule P-6--Operating Expenses by Objective Groupings

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

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

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

         Schedule P-10--Employment Statistics by Labor Category

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

[[Page 188]]

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

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

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

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

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

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

[[Page 189]]

                     Traffic Reporting Requirements



Section 25  Traffic and Capacity Elements

    General Instructions. (a) All prescribed reporting for traffic and 
capacity elements shall conform with the data compilation standards set 
forth in section 19--Uniform Classification of Operating Statistics.
    (b) Carriers submitting Schedule T-100 shall use magnetic computer 
tape or IBM compatible disk for transmitting the prescribed data to the 
Department. Upon good cause shown, OAI may approve the request of a U.S. 
air carrier, under section 1-2 of this part, to use hardcopy data input 
forms or submit data via e-mail.

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

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

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

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

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

    (a) This Schedule T-100(f) collects detail on-flight market and 
nonstop segment data. This schedule shall be filed monthly by each 
foreign (non-U.S.) air carrier conducting operations to or from the 
United States with large aircraft pursuant to Section 41302 permits or 
exemption authority. Reported traffic data shall include all services 
affecting the United States, as prescribed in this part.
    (b) Guidelines for reporting the monthly Schedule T-100(f) are 
included in the Appendix to Sec. 217.10 of this chapter. Copies of 
these instructions are provided to each foreign air carrier submitting 
the traffic data. Copies are also available from the Office of Airline 
Information, K-25, Room 4125, U.S. Department of Transportation, 400 
Seventh St., SW., Washington, DC 20590.
    (c) The reported data shall be compiled as aggregates of the basic 
data elements and service classes prescribed in sections 19-4 and 19-5 
of this part.

[[Page 190]]

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

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

Volume label
Header label
Data records
Trailer label

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

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

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

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

[[Page 191]]

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

    (2) On-flight market record layout:

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

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

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

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

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

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

[[Page 192]]


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



PART 243_PASSENGER MANIFEST INFORMATION--Table of Contents




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

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

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



Sec. 243.1  Purpose.

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



Sec. 243.3  Definitions.

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



Sec. 243.5  Applicability.

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

[[Page 193]]



Sec. 243.7  Information collection requirements.

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



Sec. 243.9  Procedures for collecting and maintaining the information.

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



Sec. 243.11  Transmission of information after an aviation disaster.

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



Sec. 243.13  Filing requirements.

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

[[Page 194]]



Sec. 243.15  Conflict with foreign laws.

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

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



Sec. 243.17  Enforcement.

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



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




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

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



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

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

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



PART 248_SUBMISSION OF AUDIT REPORTS--Table of Contents




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

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

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



Sec. 248.1  Applicability.

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

[[Page 195]]



Sec. 248.2  Filing of audit reports.

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

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

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



Sec. 248.4  Time for filing reports.

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

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



Sec. 248.5  Withholding from public disclosure.

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

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



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




                     Subpart A_General Instructions

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

              Subpart B_Preservation of Records by Carrier

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

       Subpart C_Regulations Relating to the Truth-in-Lending Act

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

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

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



                     Subpart A_General Instructions



Sec. 249.1  Applicability.

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

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



Sec. 249.2  Definitions.

    For the purposes of this part:

[[Page 196]]

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

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



Sec. 249.3  Preservation of records.

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

[[Page 197]]

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

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



Sec. 249.4  Photographic copies.

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

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



Sec. 249.5  Storage of records.

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



Sec. 249.6  Destruction of records.

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



Sec. 249.7  Restrictions on record destruction.

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

[[Page 198]]

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

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



Sec. 249.8  Premature loss or destruction of records.

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

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



Sec. 249.9  Carriers going out of business.

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

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



Sec. 249.10  Waiver of requirements.

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

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



              Subpart B_Preservation of Records by Carrier



Sec. 249.20  Preservation of records by certificated air carriers.

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

[[Page 199]]



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

[[Page 200]]

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


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



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

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

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



       Subpart C_Regulations Relating to the Truth-in-Lending Act



Sec. 249.30  Applicability.

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

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



Sec. 249.31  Preservation and inspection of evidence of compliance.

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

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



PART 250_OVERSALES--Table of Contents




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

[[Page 201]]

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

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

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



Sec. 250.1  Definitions.

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

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



Sec. 250.2  Applicability.

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

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



Sec. 250.2a  Policy regarding denied boarding.

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



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

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

[[Page 202]]

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

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



Sec. 250.3  Boarding priority rules.

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

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



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

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

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



Sec. 250.6  Exceptions to eligibility for denied boarding compensation.

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

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

[[Page 203]]



Sec. 250.7  [Reserved]



Sec. 250.8  Denied boarding compensation.

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

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



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

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

                    Compensation For Denied Boarding

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

                   Volunteers and Boarding Priorities

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

               Compensation of Involuntary Denied Boarding

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

                 Amount of Denied Boarding Compensation

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

[[Page 204]]

                            Method of Payment

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

                           Passenger's Options

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

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

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



Sec. 250.10  Report of passengers denied confirmed space.

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

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

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



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

    (a) Every carrier shall cause to be displayed continuously in a 
conspicuous public place at each desk, station, and position in the 
United States which is in the charge of a person employed exclusively by 
it, or by it jointly with another person, or by any agent employed by 
such air carrier or foreign air carrier to sell tickets to passengers, a 
sign located so as to be clearly visible and clearly readable to the 
traveling public, which shall have printed thereon the following 
statement in boldface type at least one-fourth of an inch high:

                     Notice--Overbooking of Flights

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

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

[[Page 205]]

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

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

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



PART 252_SMOKING ABOARD AIRCRAFT--Table of Contents




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

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

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

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



Sec. 252.1  Purpose.

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

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



Sec. 252.2  Applicability.

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



Sec. 252.3  Smoking ban: air carriers.

    Air carriers shall prohibit smoking on all scheduled passenger 
flights.



Sec. 252.5  Smoking ban: foreign air carriers.

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



Sec. 252.7  No-smoking sections.

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

[[Page 206]]

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



Sec. 252.8  Extent of smoking restrictions.

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



Sec. 252.9  Ventilation systems.

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



Sec. 252.11  Aircraft on the ground.

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



Sec. 252.13  Small aircraft.

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

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



Sec. 252.15  Cigars and pipes.

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



Sec. 252.17  Enforcement.

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



Sec. 252.19  Single-entity charters.

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



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




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

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

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



Sec. 253.1  Purpose.

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



Sec. 253.2  Applicability.

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

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

[[Page 207]]



Sec. 253.3  Definitions.

    Large aircraft means any aircraft designed to have a maximum 
passenger capacity of more than 60 seats.
    Passenger means any person who purchases, or who contacts a ticket 
office or travel agent for the purpose of purchasing, or considering the 
purchase of, air transportation.
    Ticket office means station, office, or other location where tickets 
are sold that is under the charge of a person employed exclusively by 
the carrier, or by it jointly with another person.



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

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

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

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



Sec. 253.5  Notice of incorporated terms.

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

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

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

[[Page 208]]



Sec. 253.6  Explanation of incorporated terms.

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

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

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



Sec. 253.7  Direct notice of certain terms.

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

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

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



Sec. 253.8  Qualifications to notice requirements.

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

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



PART 254_DOMESTIC BAGGAGE LIABILITY--Table of Contents




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

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

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



Sec. 254.1  Purpose.

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

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



Sec. 254.2  Applicability.

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

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



Sec. 254.3  Definitions.

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



Sec. 254.4  Carrier liability.

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

[[Page 209]]

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

[72 FR 3943, Jan. 29, 2007]



Sec. 254.5  Notice requirement.

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

[72 FR 3943, Jan. 29, 2007]



Sec. 254.6  Periodic adjustments.

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


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

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

[64 FR 70575, Dec. 17, 1999]



PART 255_AIRLINE COMPUTER RESERVATIONS SYSTEMS--Table of Contents




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

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

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



Sec. 255.1.  Purpose.

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



Sec. 255.2  Applicability.

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



Sec. 255.3  Definitions.

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

[[Page 210]]

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



Sec. 255.4  Display of information.

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

[[Page 211]]

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



Sec. 255.5  Contracts with participating carriers.

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



Sec. 255.6  Exceptions.

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



Sec. 255.7  Prohibition against Carrier Bias.

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



Sec. 255.8  Sunset Date.

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

                           PART 256 [RESERVED]

[[Page 212]]



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




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

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

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



Sec. 257.1  Purpose.

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



Sec. 257.2  Applicability.

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



Sec. 257.3  Definitions.

    As used in this part:
    (a) Air transportation means foreign air transportation or 
interstate air transportation as defined in 49 U.S.C. 40102 (a)(23) and 
(25) respectively.
    (b) Carrier means any air carrier or foreign air carrier as defined 
in 49 U.S.C. 40102(2) or 49 U.S.C. 40102(21), respectively, that is 
engaged directly in scheduled passenger air transportation, including by 
wet lease.
    (c) Code-sharing arrangement means an arrangement whereby a 
carrier's designator code is used to identify a flight operated by 
another carrier.
    (d) Designator code means the airline designations originally 
allotted and administered pursuant to Agreements CAB 24606 and 26056.
    (e) Long-term wet lease means a lease by which the lessor provides 
both an aircraft and crew dedicated to a particular route(s), and which 
either:
    (1) Lasts more than 60 days; or
    (2) Is part of a series of such leases that amounts to a continuing 
arrangement lasting more than 60 days.
    (f) Ticket agent has the meaning ascribed to it in 49 U.S.C. 
40102(40).
    (g) Transporting carrier means the carrier that is operating the 
aircraft in a code-sharing arrangement or long-term wet lease.



Sec. 257.4  Unfair and deceptive practice.

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



Sec. 257.5  Notice requirement.

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

[[Page 213]]

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

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

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

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

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

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



Sec. 257.6  Effective and compliance dates.

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

[[Page 214]]

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

[64 FR 46821, Aug. 27, 1999]



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




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

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

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



Sec. 258.1  Purpose.

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



Sec. 258.2  Applicability.

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



Sec. 258.3  Definitions.

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



Sec. 258.4  Unfair and deceptive practice.

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



Sec. 258.5  Notice requirement.

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

[[Page 215]]

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

                   Notice: Change of Aircraft Required

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



Sec. 258.6  Effective and compliance dates.

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

[64 FR 46821, Aug. 27, 1999]



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




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

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

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



Sec. 271.1  Purpose.

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

[60 FR 43524, Aug. 22, 1995]



Sec. 271.2  Definitions.

    As used in this part:
    Eligible place means a place in the United States that--
    (1) Was an eligible point under section 419 of the Federal Aviation 
Act of 1958 as in effect before October 1, 1988;
    (2) Received scheduled air transportation at any time between 
January 1, 1990, and November 4, 1990; and
    (3) Is not listed in Department of Transportation Orders 89-9-37 and 
89-12-52 as a place ineligible for compensation under Subchapter II of 
Chapter 417 of the Statute.
    Essential air service is that air transportation which the 
Department has found to be essential under Subchapter II of Chapter 417 
of the Statute.

[60 FR 43524, Aug. 22, 1995]



Sec. 271.3  Carrier subsidy need.

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

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



Sec. 271.4  Carrier costs.

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

[[Page 216]]

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

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



Sec. 271.5  Carrier revenues.

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

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



Sec. 271.6  Profit element.

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

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



Sec. 271.7  Subsidy payout formula.

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

[[Page 217]]

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

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



Sec. 271.8  Rate period.

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

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



Sec. 271.9  Discrimination prohibited.

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

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



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




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

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

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



Sec. 272.1  Purpose.

    Paragraph 5 of Article IX of the Federal Programs and Services 
Agreement implementing section 221(a)(5) of the Compact of Free 
Association between the United States and the Governments of the 
Federated States of Micronesia, the Marshall Islands and

[[Page 218]]

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

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



Sec. 272.2  Applicability.

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

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



Sec. 272.3  Places eligible for guaranteed essential air service.

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

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



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

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

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



Sec. 272.5  Determination of essential air service.

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

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



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

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

[[Page 219]]

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

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



Sec. 272.7  Notice of discontinuance of service.

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

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



Sec. 272.8  Obligation to continue service.

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

[[Page 220]]

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

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



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

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

[[Page 221]]

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

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



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

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

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



Sec. 272.11  Effective date of provisions.

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



Sec. 272.12  Termination.

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

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



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




                            Subpart A_General

Sec.
291.1 Applicability.
291.2 Definitions.

           Subpart B_All-Cargo Air Transportation Certificates

291.10 Applications.

[[Page 222]]

        Subpart C_General Rules for All-Cargo Air Transportation

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

      Subpart D_Exemptions for Cargo Operations in Interstate Air 
                             Transportation

291.30 General.
291.31 Exemptions from the Statute.

                        Subpart E_Reporting Rules

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

                          Subpart F_Enforcement

291.50 Enforcement.

                   Subpart G_Public Disclosure of Data

291.60 Public disclosure of data.

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

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



                            Subpart A_General



Sec. 291.1  Applicability.

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

[60 FR 43525, Aug. 22, 1995]



Sec. 291.2  Definitions.

    All-cargo air transportation means the transportation by aircraft in 
interstate air transportation of only property or only mail, or both.
    Interstate air transportation means the transportation of passengers 
or property by aircraft as a common carrier for compensation, or the 
transportation of mail by aircraft--
    (1) Between a place in--
    (i) A State, territory, or possession of the United States and a 
place in the District of Columbia or another State, territory, or 
possession of the United States;
    (ii) Hawaii and another place in Hawaii through the airspace over a 
place outside Hawaii;
    (iii) The District of Columbia and another place in the District of 
Columbia; or
    (iv) A territory or possession of the United States and another 
place in the same territory or possession; and
    (2) When any part of the transportation is by aircraft.
    Reporting carrier for Schedule T-100 purposes means the air carrier 
in operational control of the aircraft, i.e., the carrier that uses its 
flight crew under its own FAA operating authority.
    Section 41102 carrier means an air carrier certificated under 
section 41102 of the Statute to transport persons, property and mail or 
property and mail only.
    Section 41103 carrier means an air carrier holding a certificate 
issued under section 41103 of the Statute to provide all-cargo air 
transportation.
    Service, scheduled cargo means transport service operated pursuant 
to published flight schedules including extra sections. There is no 
requirement on the number of weekly flights nor is there a requirement 
that the schedule be published in the Official Airline Guide.
    Wet-Lease Agreement means an agreement under which one carrier 
leases an aircraft with flight crew to another air carrier.

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



           Subpart B_All-Cargo Air Transportation Certificates



Sec. 291.10  Applications.

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

[[Page 223]]

part 204 of this chapter with regard to evidentiary requirements.

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

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



        Subpart C_General Rules for All-Cargo Air Transportation



Sec. 291.20  Applicability.

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

[60 FR 43526, Aug. 22, 1995]



Sec. 291.22  Aircraft accident liability insurance requirement.

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

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



Sec. 291.23  Record retention.

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

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

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



Sec. 291.24  Waiver of Department Economic Regulations.

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

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



      Subpart D_Exemptions for Cargo Operations in Interstate Air 
                             Transportation



Sec. 291.30  General.

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

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

[[Page 224]]



Sec. 291.31  Exemptions from the Statute.

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

[60 FR 43526, Aug. 22, 1995]



                        Subpart E_Reporting Rules



Sec. 291.40  [Reserved]



Sec. 291.41  Financial and statistical reporting--general.

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

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



Sec. 291.42  Section 41103 financial and traffic reporting.

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

[[Page 225]]

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

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



Sec. 291.43  Statement of operation for section 41103 operations.

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

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



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

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

[[Page 226]]

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

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



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

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

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

[[Page 227]]

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

    (2) Scheduled services include traffic and capacity elements 
applicable to air transportation provided pursuant to published 
schedules and extra sections of scheduled flights. Scheduled Passenger/
Cargo (Service Class F) is a composite of first-class, coach, and mixed 
passenger/cargo service.
    (3) Nonscheduled services include all traffic and capacity elements 
applicable to the performance of nonscheduled aircraft charters, and 
other air transportation services not constituting an integral part of 
services performed pursuant to published flight schedules.
    (d) Air transport traffic and capacity elements. Within each of the 
service classifications, carriers shall report air transport traffic and 
capacity elements. The elements are reported on segment and/or market 
records as follows:

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

    (e) These reported items are further described as follows:
    (1) Reporting period date. The year and month to which the reported 
data are applicable.
    (2) Carrier, Carrier entity code. Each air carrier shall report its 
name and entity code (a five digit code assigned by BTS that identifies 
both the carrier and its entity) for its particular operations. The 
Office of Airline Information (OAI) will assign or confirm codes upon 
request. OAI's address is Office of Airline Information, Bureau of 
Transportation Statistics, DOT, Room 4125, K-14, 400 Seventh Street, 
SW., Washington, DC 20590-0001.
    (3) Service class code. The service class codes are prescribed in 
section 298.45(c). In general, classes are divided into two broad 
categories, either scheduled or nonscheduled, where scheduled = F + G 
and nonscheduled = L + N + P + R.
    (4) Record type code. This code indicates whether the data pertain 
to non-stop segment (record type S) or on-flight market (record type M).
    (5) Aircraft type code. This code represents the aircraft types, as 
described in the BTS' Accounting and Reporting Directives.
    (6) Origin, Destination airport code(s). These codes represent the 
industry designators. An industry source of these industry designator 
codes is the Official Airline Guide (OAG). OAI assigns codes, upon 
request, if not listed in the OAG.
    (7) 110 Revenue passengers enplaned. The total number of revenue 
passengers enplaned at the origin point of a flight, boarding the flight 
for the first time; an unduplicated count of passengers in a market.
    (8) 130 Revenue passengers transported. The total number of revenue 
passengers transported over a single flight stage, including those 
already on the aircraft from a previous flight stage.
    (9) 140 Revenue passenger-miles. Computed by multiplying the inter-
airport distance of each flight stage by the number of passengers 
transported on that flight stage.
    (10) 210 Revenue cargo tons enplaned. The total number of cargo tons 
enplaned. This data element is a sum of the individual on-flight market 
figures for each of the following categories: 217

[[Page 228]]

Freight and 219 Mail. This element represents an unduplicated count of 
the revenue traffic in a market.
    (11) 217 Enplaned freight. The total weight of revenue freight 
enplaned at the origin point of a flight, loaded onto the flight for the 
first time; an unduplicated count of freight in a market.
    (12) 219 Enplaned mail. The total weight of mail enplaned at the 
origin point of a flight, loaded onto the flight for the first time; an 
unduplicated count of mail in a market.
    (13) 230 Revenue tons transported. The number of tons of revenue 
traffic transported. This element is the sum of the following elements: 
231 Passengers transported-total, 237 Freight, and 239 Mail.
    (14) 237 Transported freight. The total weight of freight 
transported over a single flight stage, including freight already on the 
aircraft from a previous flight stage.
    (15) 239 Transported mail. The total weight of mail transported over 
a single flight stage, including mail already on the aircraft from a 
previous flight stage.
    (16) 240 Revenue ton-miles--total. Ton-miles are computed by 
multiplying the revenue aircraft miles flown (410) on each flight stage 
by the number of tons transported on that stage. This element is the sum 
of 241 through 249.
    (17) 241 Revenue ton-miles--passenger. Equals the number of 
passengers times 200, times inter-airport distance, divided by 2000. A 
standard weight of 200 pounds per passenger, including baggage, is used 
for all operations and service classes.
    (18) 247 Revenue ton-miles--freight. Equals the volume of freight in 
whole tons times the inter-airport distance.
    (19) 249 Revenue ton-miles--mail. Equals the volume of mail in whole 
tons times the inter-airport distance.
    (20) 270 Available capacity-payload. The available capacity is 
collected in pounds. This figure shall reflect the payload or total 
available capacity for passengers, mail and freight applicable to the 
aircraft with which each flight stage is performed.
    (21) 280 Available ton-miles. The aircraft miles flown on each 
flight stage multiplied by the available capacity on the aircraft in 
tons.
    (22) 310 Available seats. The number of seats available for sale. 
This figure reflects the actual number of seats available, excluding 
those blocked for safety or operational reasons. In the domestic entity, 
report the total available seats in item 130. Scheduled and nonscheduled 
available seats are reported in item 130.
    (23) 320 Available seat-miles. The aircraft miles flown on each 
flight stage multiplied by the seat capacity available for sale.
    (24) 410 Revenue aircraft miles flown. Revenue aircraft miles flown 
are computed based on the airport pairs between which service is 
actually performed; miles are generated from the data for scheduled 
aircraft departures (Code 520) times the inter-airport distances (Code 
501).
    (25) 430 Revenue aircraft miles scheduled. The number of revenue 
aircraft miles scheduled. All such data shall be maintained in 
conformity with the airport pairs between which service is scheduled, 
whether or not in accordance with actual performance.
    (26) 501 Inter-airport distance. The great circle distance, in 
official statute miles as prescribed in part 247 of this chapter, 
between airports served by each flight stage. Official inter-airport 
mileage may be obtained from the Office of Airline Information.
    (27) 510 Revenue aircraft departures performed. The number of 
revenue aircraft departures performed.
    (28) 520 Revenue aircraft departures scheduled. The number of 
revenue aircraft departures scheduled, whether or not actually 
performed.
    (29) 610 Revenue aircraft hours (airborne). The elapsed time, 
computed from the moment the aircraft leaves the ground until its next 
landing.
    (30) 630 Aircraft hours (ramp-to-ramp). The elapsed time, computed 
from the moment the aircraft first moves under its own power from the 
boarding ramp at one airport to the time it comes to rest at the ramp 
for the next point of landing. This data element is also referred to as 
`block' and `block-to-block' aircraft hours.
    (31) 650 Total aircraft hours (airborne). The elapsed time, computed 
from the

[[Page 229]]

moment the aircraft leaves the ground until it touches down at the next 
landing. This includes flight training, testing, and ferry flights.
    (f) Public availability of Schedule T-100 data. Detailed domestic 
on-flight market and nonstop segment data in Schedule T-100, except 
military data, shall be publicly available after processing. Domestic 
data are defined as data from air transportation operations from a place 
in any State of the United States, the District of Columbia, the 
Commonwealth of Puerto Rico and the Virgin Islands, or a U.S. territory 
or possession to a place in any State of the United States, the District 
of Columbia, the Commonwealth of Puerto Rico and the Virgin Islands, or 
a U.S. territory or possession.

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

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

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

[[Page 230]]

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

    (2) On-flight market record layout.

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

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

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



                          Subpart F_Enforcement



Sec. 291.50  Enforcement.

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

[60 FR 43526, Aug. 22, 1995]



                   Subpart G_Public Disclosure of Data



Sec. 291.60  Public disclosure of data.

    (a) Detailed domestic on-flight market data and nonstop segment 
data, except military data, shall be made publicly available after 
processing. Domestic data are defined as data from air transportation 
operations from a place in any State of the United States, the District 
of Columbia, the Commonwealth of Puerto Rico and the Virgin Islands, or 
a U.S. territory or possession to a place in any State of the United 
States, the District of Columbia, the Commonwealth of Puerto Rico and 
the Virgin Islands, or a U.S. territory or possession. Domestic military 
operations are reported under service codes N or R.
    (b) Detailed international on-flight market and nonstop segment data 
in Schedule T-100 and Schedule T-100(f) reports, except military data, 
shall be publicly available immediately following the Department's 
determination that the database is complete, but no earlier than six 
months after the date of the data. Military operations are reported 
under service codes N or R. Data for on-flight markets and nonstop 
segments involving no U.S. points shall not be made publicly available 
for three years. Industry and carrier summary data may be made public 
before the end of six months or the end of three years, as applicable, 
provided there are three or more carriers in the

[[Page 231]]

summary data disclosed. The Department may, at any time, publish 
international summary statistics without carrier detail. Further, the 
Department may release nonstop segment and on-flight market detail data 
by carrier before the end of the confidentiality period as follows:
    (1) To foreign governments as provided in reciprocal arrangements 
between the foreign country and the U.S. Government for exchange of on-
flight market and/or nonstop segment data submitted by air carriers of 
that foreign country and U.S. carriers serving that foreign country.
    (2) To parties to any proceeding before the Department under Title 
IV of the Federal Aviation Act of 1958, as amended, as required by an 
Administrative Law Judge or other decision-maker of the Department. 
Parties may designate agents or consultants to receive the data in their 
behalf, provided the agents or consultants agree to abide by the 
disclosure restrictions. Any data to which access is granted pursuant to 
this provision may be introduced into evidence, subject to the normal 
rules of admissibility.
    (3) To agencies or other components of the U.S. Government for their 
internal use only.

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



PART 292_INTERNATIONAL CARGO TRANSPORTATION--Table of Contents




                            Subpart A_General

Sec.
292.1 Applicability.
292.2 Definitions.

                 Subpart B_Exemption From Filing Tariffs

292.10 Exemption.
292.11 Revocation of exemption.

                      Subpart C_Effect of Exemption

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

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

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



                            Subpart A_General



Sec. 292.1  Applicability.

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



Sec. 292.2  Definitions.

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



                 Subpart B_Exemption From Filing Tariffs



Sec. 292.10  Exemption.

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



Sec. 292.11  Revocation of exemption.

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

[[Page 232]]

filed, unless otherwise specified by Department order.



                      Subpart C_Effect of Exemption



Sec. 292.20  Rule of construction.

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



Sec. 292.21  Incorporation of contract terms by reference.

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



Sec. 292.22  Effectiveness of tariffs on file.

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



PART 293_INTERNATIONAL PASSENGER TRANSPORTATION--Table of Contents




                            Subpart A_General

Sec.
293.1 Applicability.
293.2 Definitions.

               Subpart B_Exemption From Filing of Tariffs

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

                      Subpart C_Effect of Exemption

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

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

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

[[Page 233]]



                            Subpart A_General



Sec. 293.1  Applicability.

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



Sec. 293.2  Definitions.

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



                 Subpart B_Exemption From Filing Tariffs



Sec. 293.10  Exemption.

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



Sec. 293.11  Required statement.

    Each governing rules tariff shall include the following statements:

[[Page 234]]

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



Sec. 293.12  Revocation of exemption.

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



                      Subpart C_Effect of Exemption



Sec. 293.20  Rule of construction.

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



Sec. 293.21  Incorporation of contract terms by reference.

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



Sec. 293.22  Effectiveness of tariffs on file.

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



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




                            Subpart A_General

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

                           Subpart B_Exemption

294.10 Exemption authority.

                  Subpart C_Registration for Exemption

294.20 Applying for registration.

[[Page 235]]

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

                 Subpart D_General Rules for Registrants

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

                    Subpart E_Insurance Requirements

294.40 Aircraft accident liability insurance requirements.

     Subpart F_Cancellation of Registration and Presidential Review

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

                  Subpart G_Authorizations and Waivers

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

                          Subpart H_Violations

294.70 Enforcement.

        Subpart I_Terms, Conditions, and Limitations of This Part

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

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

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



                            Subpart A_General



Sec. 294.1  Applicability and purpose.

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

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



Sec. 294.2  Definitions.

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

[[Page 236]]

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

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



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

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

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

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



                           Subpart B_Exemption



Sec. 294.10  Exemption authority.

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

[[Page 237]]

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

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



                  Subpart C_Registration for Exemption



Sec. 294.20  Applying for registration.

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

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

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



Sec. 294.21  Procedure on receipt of registration form.

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

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



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

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

[[Page 238]]

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

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

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



                 Subpart D_General Rules for Registrants



Sec. 294.30  Scope of service and equipment authorized.

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

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



Sec. 294.31  Use of business name.

    (a) A Canadian charter air taxi operator, in holding out charter air 
service to the public and performing its charter operations, shall do so 
only in the names in which its registration is issued under this part. 
The Department may require a Canadian charter air taxi operator to 
change such names where they appear to be inconsistent with the public 
interest.
    (b) [Reserved]



Sec. 294.32  Security arrangements for operating Public Charters.

    When a Canadian charter air taxi operator performs a Public Charter 
under part 380 of this chapter, either:
    (a) The Canadian charter air taxi operator shall meet the bonding or 
escrow requirements applicable to foreign air carriers as set forth in 
Sec. 212.8 of this chapter.
    (b) The Canadian charter air taxi operator shall ensure that it does 
not receive any payments for the charter until after the charter has 
been completed. In this case, its contracts with the charter operator 
and the charter operator's depository bank, if any,

[[Page 239]]

shall state that the charter operator or bank, as applicable, shall 
retain control of and responsibility for all participant funds intended 
for payment for charter air service until after the charter has been 
completed, notwithstanding any provision of part 380.

[ER-1257, 46 FR 52591, Oct. 27, 1981, as amended by Doc. No. 2006-25691, 
71 FR 49347, Aug. 23, 2006]



Sec. 294.33  Compliance with the regulations of the Federal Aviation Administration.

    (a) Registrants under this part shall obtain FAA operations 
specifications required under part 129 or other applicable rules of the 
Federal Aviation Regulations prior to beginning operations into the 
United States. Registrants should write to the FAA office at one of the 
following addresses to obtain instructions on how to apply for FAA 
authority.
    (b) If the registrant's business address is located on or east of 76 
degrees West Longitude (in or east of Ottawa, Ontario) it should write 
to: Federal Aviation Administration, General Aviation District Office 
No. 1, Albany County Airport, Albany, New York 12211.
    (c) If the registrant's business address is located on or east of 
100 degrees West Longitude (in or east of Winnipeg, Manitoba) and west 
of 76 degrees West Longitude (west of, but not including, Ottawa, 
Ontario) it should write to: Federal Aviation Administration, Flight 
Standards District Office, 1 Airport Way, Rochester, New York 14624.
    (d) If the registrant's business address is west of Winnipeg, 
Manitoba, it should write to: Federal Aviation Administration, General 
Aviation District Office, 1601 Lind Avenue, SW., Renton, Washington 
98055.

[ER-1257, 46 FR 52591, Oct. 27, 1981, as amended by Docket No. 47939, 57 
FR 40102, Sept. 2, 1992]



Sec. 294.34  Advance approval by the Department.

    The Department, by order or regulation and without hearing, may 
require advance approval of individual charter trips conducted by the 
registrant under the authority granted by this part, if it finds such 
action to be consistent with the public interest.



                    Subpart E_Insurance Requirements



Sec. 294.40  Aircraft accident liability insurance requirements.

    No Canadian charter air taxi operator shall engage in charter air 
service unless such carrier has and maintains in effect aircraft 
accident liability coverage that meets the requirements of part 205 of 
this chapter. Evidence of such insurance coverage, in the form of a 
certificate of insurance, as required in part 205 of this chapter, shall 
be maintained on file with the Department's Office of International 
Aviation, Special Authorities Division, at all times.

(Approved by the Office of Management and Budget under control number 
3024-0050)

[ER-1257, 46 FR 52591, Oct. 27, 1981, as amended by ER-1342, 48 FR 
31015, July 6, 1983; Docket No. 47939, 57 FR 40102, Sept. 2, 1992; 60 FR 
43526, Aug. 22, 1995; 71 FR 49347, Aug. 23, 2006]



     Subpart F_Cancellation of Registration and Presidential Review



Sec. 294.50  Cancellation, revocation, or suspension of registration.

    The registration of a carrier subject to this part may be revoked, 
canceled, suspended, modified, or otherwise subjected to additional 
terms and conditions by the Department if:
    (a) The carrier files with the Department a written notice that it 
is discontinuing operations;
    (b) The carrier is the holder of a section 41302 permit to perform 
large aircraft charters under the Agreement;
    (c) Substantial ownership or effective control is acquired by 
persons who are not (1) citizens of Canada, (2) the Government of 
Canada, or (3) a combination of both;
    (d) The Government of Canada terminates or suspends authority it 
granted to the registrant to conduct charter air service between the 
United States and Canada.
    (e) The Agreement between the two countries is terminated;

[[Page 240]]

    (f) The registrant fails to have proper insurance coverage, or fails 
to file or keep a current insurance certificate on file with the 
Department;
    (g) The registrant fails to comply with the terms, conditions, or 
limitations of this part;
    (h) The carrier's operations specifications issued by the FAA are 
suspended or terminated;
    (i) The Department finds that it is in the public interest to do so.

[ER-1257, 46 FR 52591, Oct. 27, 1981, as amended at 60 FR 43526, Aug. 
22, 1995; 71 FR 49347, Aug. 23, 2006]



Sec. 294.51  Presidential review.

    A Department order under Sec. 294.50 (e), (g) or (i) shall be 
subject to stay or disapproval by the President within 60 days.



                  Subpart G_Authorizations and Waivers



Sec. 294.60  Applications for authorization to conduct individual operations or programs not otherwise permitted by this part.

    (a) Where the terms, conditions, or limitations of this part, 
particularly Sec. 294.81, require prior approval of individual flights 
or charter programs, the registrant shall apply for such approval by 
filing three copies of OST Form 4540 with the Office of International 
Aviation, Foreign Air Carrier Licensing Division. OST Form 4540 may be 
obtained from the Foreign Air Carrier Licensing Division.
    (b) Action on the application for authorization filed under 
paragraph (a) of this section will normally be taken within 30 days 
after the application is filed. The Department will consider requests 
for faster action that include a full explanation of the need for 
expedited action.

[ER-1257, 46 FR 52591, Oct. 27, 1981, as amended by Docket No. 47939, 57 
FR 40103, Sept. 2, 1992; 71 FR 49347, Aug. 23, 2006]



Sec. 294.61  Waivers.

    The Department upon application or on its own initiative may waive 
any of the provisions of this part if it finds such action to be in the 
public interest.



                          Subpart H_Violations



Sec. 294.70  Enforcement.

    In case of any violation of any of the provisions of the Statute, or 
this part, or any other rule, regulation, or order issued under the 
Statute, the violator may be subject to a proceeding under section 46101 
of the Statute before the Department, or sections 46106 through 46108 of 
the Statute before a U.S. District Court, as the case may be, to compel 
compliance; or to impose civil penalties under the provisions of section 
46301 of the Statute; or in the case of a willful violation, to impose 
criminal penalties under the provisions of section 46316 of the Statute; 
or to impose other lawful sanctions, including revocation of 
registration.

[ER-1257, 46 FR 52591, Oct. 27, 1981, as amended at 60 FR 43527, Aug. 
22, 1995]



        Subpart I_Terms, Conditions, and Limitations of This Part



Sec. 294.80  Waiver of sovereign immunity.

    By accepting an approved registration under this part, a registrant 
waives any right it may possess to assert any defense of sovereign 
immunity in any action or proceeding instituted against it in any court 
or other tribunal in the United States based upon any claim arising out 
of its operations under this part.



Sec. 294.81  Local traffic prohibited.

    (a) Except as set forth in paragraph (b) of this section or Sec. 
294.60, a registrant shall not carry passengers, cargo, or mail between 
two or more United States points for compensation or hire.
    (b) A registrant may grant stopover privileges at any point or 
points in the United States to passengers and their accompanied baggage 
as part of a single continuous operation to or from Canada.

[ER-1257, 46 FR 52591, Oct. 27, 1981, as amended by Doc. No. 2006-25691, 
71 FR 49347, Aug. 23, 2006]



Sec. 294.83  Compliance with certain international agreements.

    A registrant shall not operate any aircraft under this part unless 
it:

[[Page 241]]

    (a) Complies with operational safety requirements at least 
equivalent to Annex 6 of the Chicago Convention;
    (b) Complies with all applicable provisions of the Agreement; and
    (c) Complies with all applicable provisions of any treaty, 
convention, or agreement affecting international air transportation to 
which the United States and Canada are parties.



Sec. 294.84  Air competency requirements.

    Registrants shall conform to the airworthiness and airman competency 
requirements prescribed by the Government of Canada for Canadian 
international air service.



Sec. 294.85  Charterworthiness standards.

    (a) Registrants may perform U.S.-originating charters authorized 
under Annex B (III)(A) of the Agreement as follows: Commercial air 
transportation of passengers and their accompanied baggage, and of 
property, on a time, mileage, or trip basis, where the entire planeload 
capacity of one or more aircraft has been engaged by a person for his 
own use or by a person for the transportation of a group of persons and/
or their property, as agent or representative of such group, or other 
small aircraft operations as may be authorized under any amendments, 
supplements, reservations, or supersessions of the Agreement.
    (b) Registrants may perform Canadian-originating charters authorized 
by Annex B (III)(B) of the Agreement and any amendments, supplements, 
reservations or supersessions of it. Such charters may be performed only 
to the extent authorized by the Air Carrier Regulations of the Canadian 
Transport Commission applicable to operations by small aircraft.



Sec. 294.86  Industrial/agricultural/other nontransport air operations prohibited.

    A registrant shall not engage in flights for the purpose of 
industrial or agricultural operations (e.g., crop dusting, pest control, 
pipeline patrol, mapping, surveying, banner towing, skywriting, aerial 
photography) within the United States unless it has obtained a permit 
from the Department under part 375 of this chapter.



Sec. 294.87  Compliance with Canadian licenses.

    A registrant shall not, in the performance of operations authorized 
by this part, use any aircraft or conduct any operations except in 
accordance with the authority and conditions contained in the 
registrant's applicable Canadian licenses.



PART 296_INDIRECT AIR TRANSPORTATION OF PROPERTY--Table of Contents




                            Subpart A_General

Sec.
296.1 Purpose.
296.2 Applicability.
296.3 Indirect cargo air carrier.
296.4 Joint loading.
296.5 Agency relationships.
296.6 Public disclosure of cargo liability limits and insurance.

     Subpart B_Exemption for Indirect Air Transportation of Property

296.10 Exemption from the Statute.

                          Subpart C_Violations

296.20 Enforcement.

    Authority: 49 U.S.C. Chapters 401, 417.

    Source: ER-1261, 46 FR 54727, Nov. 4, 1981, unless otherwise noted.



                            Subpart A_General



Sec. 296.1  Purpose.

    This part establishes rules for the indirect air transportation of 
property. It creates a class of air carriers to provide this air 
transportation and grants exemptions from certain provisions of the 
Subtitle VII of Title 49 of the United States Code (Transportation).

[ER-1257, 46 FR 52591, Oct. 27, 1981, as amended at 60 FR 43527, Aug. 
22, 1995]



Sec. 296.2  Applicability.

    This part applies to air transportation of property by indirect 
cargo air carriers, and to persons entering into control relationships 
with indirect cargo air carriers.



Sec. 296.3  Indirect cargo air carrier.

    An indirect cargo air carrier is any U.S. citizen who undertakes to 
engage indirectly in air transportation of

[[Page 242]]

property, and uses for the whole or any part of such transportation the 
services of an air carrier or a foreign air carrier that directly 
engages in the operation of aircraft under a certificate, regulation, 
order, or permit issued by the Department of Transportation or the Civil 
Aeronautics Board, or the services of its agent, or of another indirect 
cargo air carrier.

[ER-1261, 46 FR 54727, Nov. 4, 1981, as amended by Docket No. 47939, 57 
FR 40103, Sept. 2, 1992]



Sec. 296.4  Joint loading.

    Nothing in this part shall preclude joint loading, meaning the 
pooling of shipments and their delivery to a direct air carrier for 
transportation as one shipment, under an agreement between two or more 
indirect air carriers or foreign indirect air carriers.



Sec. 296.5  Agency relationships.

    An indirect cargo air carrier may act as agent of a shipper, or of a 
direct air carrier that has authorized such agency, rather than as an 
air carrier, if it expressly reserves the option to do so when the 
shipment is accepted.



Sec. 296.6  Public disclosure of cargo liability limits and insurance.

    Every indirect cargo air carrier shall give notice in writing to the 
shipper, when any shipment is accepted, of the existence or absence of 
cargo liability accident insurance, and of the limits on the extent of 
its liability, if any. The notice shall be clear and conspicuously 
included on or attached to all of its rate sheets and airwaybills.



     Subpart B_Exemption for Indirect Air Transportation of Property



Sec. 296.10  Exemption from the Statute.

    (a) Indirect cargo air carriers are exempted from the provisions of 
the Statute only if and so long as they comply with the provisions of 
this part and its conditions, and to the extent necessary to permit them 
to organize and arrange their air freight shipments to provide indirect 
air transportation, except for the following sections:
    (1) Section 41510(b) (solicitation of rebates). However, indirect 
cargo air carriers are exempt from section 41510(b) to the extent 
necessary to permit them to solicit, accept, or receive fees from direct 
air carriers.
    (2) Section 41702 to the extent required to provide safe service, 
equipment, and facilities in connection with air transportation.
    (3) Section 41310 (nondiscrimination) with respect to foreign air 
transportation.
    (4) Section 41708 (accounts, records, and reports) and section 41709 
(inspection of accounts and property);
    (5) Section 41712 (unfair or deceptive practices or method of 
competition);
    (6) Section 40102(b) (form of control); and
    (7) Section 41711 (inquiry into air carrier management).
    (b)-(c) [Reserved]
    (d) Direct air carriers are exempted from Chapter 415 of the Statute 
to the extent necessary to permit them to pay, directly or indirectly, 
fees to indirect cargo air carriers.

[ER-1261, 46 FR 54727, Nov. 4, 1981, as amended by ER-1335, 48 FR 22705, 
May 20, 1983; ER-1381, 49 FR 25226, June 20, 1984, 50 FR 31142, July 31, 
1985; 60 FR 43527, Aug. 22, 1995]



                          Subpart C_Violations



Sec. 296.20  Enforcement.

    In case of any violation of any of the provisions of the Statute, or 
of this part, or any other rule, regulation, or order issued under the 
Statute, the violator may be subject to a proceeding under section 46101 
of the Statute before the Department, or sections 46106 through 46108 of 
the Statute before a U.S. District Court, as the case may be, to compel 
compliance. The violator may also be subject to civil penalties under 
the provisions of section 46301 of the Statute, or other lawful 
sanctions.

[ER-1261, 46 FR 54727, Nov. 4, 1981, as amended by Docket No. 47939, 57 
FR 40103, Sept. 2, 1992; 60 FR 43527, Aug. 22, 1995]

[[Page 243]]



PART 297_FOREIGN AIR FREIGHT FORWARDERS AND FOREIGN COOPERATIVE SHIPPERS ASSOCIATIONS--Table of Contents




                            Subpart A_General

Sec.
297.1 Purpose.
297.2 Applicability.
297.3 Definitions.
297.4 Joint loading.
297.5 Foreign air freight forwarder as agent.
297.6 Foreign cooperative shippers association as agent.

 Subpart B_Exemption for Foreign Indirect Air Transportation of Property

297.10 Exemption from the Statute.
297.11 Disclaimer of jurisdiction.
297.12 General requirements.

 Subpart C_Registration for Foreign Air Freight Forwarders and Foreign 
                    Cooperative Shippers Associations

297.20 Filing for registration.
297.21 Objections to registration application.
297.22 Procedure on receipt of registration application.
297.23 Waiver of sovereign immunity.
297.24 Notification to the Department of change of operations.
297.25 Cancellation or conditioning of registration.

        Subpart D_General Rules for Foreign Indirect Air Carriers

297.30 Public disclosure of cargo liability insurance.
297.31 Preparation of airwaybills and manifests.

Subpart E [Reserved]

                          Subpart F_Violations

297.50 Enforcement.

    Authority: 49 U.S.C. Chapters 401, 417.

    Source: ER-1159, 44 FR 69635, Dec. 4, 1979, unless otherwise noted.



                            Subpart A_General



Sec. 297.1  Purpose.

    This part establishes registration procedures and operating rules 
for foreign air carriers that engage indirectly in interstate or foreign 
air transportation of property. It relieves these carriers from certain 
provisions of Subtitle VII of Title 49 of the United States Code 
(Transportation), and establishes simplified reports for them.

[ER-1294, 47 FR 19684, May 7, 1982, as amended at 60 FR 43527, Aug. 22, 
1995]



Sec. 297.2  Applicability.

    This part applies to interstate air transportation of property and 
to foreign air transportation of property outbound from the United 
States by foreign indirect air carriers. It also applies to applications 
for registration as a foreign indirect air carrier of property.

[ER-1294, 47 FR 19684, May 7, 1982, as amended at 60 FR 43527, Aug. 22, 
1995]



Sec. 297.3  Definitions.

    For purpose of this part:
    (a) Foreign air freight forwarder means a foreign indirect air 
carrier that is responsible for the transportation of property from the 
point of receipt to point of destination, and utilizes for the whole or 
any part of such transportation the services of a direct air carrier or 
its agent, of another foreign indirect cargo air carrier as defined in 
part 296 of this chapter.
    (b) Foreign cooperative shippers association means a bona fide 
asociation of shippers operating as a foreign indirect air carrier on a 
nonprofit basis that undertakes to ship property by air for the account 
of such association or its members, and utilizes for the whole or any 
part of such transportation the services of a direct air carrier or its 
agent, of a foreign indirect cargo air carrier as defined in part 296 of 
this chapter.
    (c) Direct air carrier means an air carrier or foreign air carrier 
directly engaged in the operation of aircraft under a certificate, 
regulation, order, or permit issued by the Department of Transportation 
or the Civil Aeronautics Board.
    (d) Foreign indirect air carrier means any person, not a citizen of 
the United States, who undertakes indirectly to engage in the air 
transportation of property.

[ER-1159, 44 FR 69635, Dec. 4, 1979, as amended by ER-1294, 47 FR 19684, 
May 7, 1982; Docket No. 47939, 57 FR 40103, Sept. 2, 1992]

[[Page 244]]



Sec. 297.4  Joint loading.

    Nothing in this part shall preclude joint loading, meaning the 
pooling of shipments and their delivery to a direct air carrier for 
transportation as one shipment, under an agreement between two or more 
indirect air carriers or foreign indirect air carriers.



Sec. 297.5  Foreign air freight forwarder as agent.

    A foreign air freight forwarder may act as agent of a shipper, or of 
a direct air carrier that has authorized such agency, if it expressly 
reserves the option to do so when the shipment is accepted. A foreign 
air freight forwarder shall not act as the agent of any direct air 
carrier with respect to shipments accepted for forwarding.



Sec. 297.6  Foreign cooperative shippers association as agent.

    A foreign cooperative shippers association may act as agent of a 
shipper, or of a direct air carrier that has authorized such agency, if 
it expressly reserves the option to do so when the shipment is accepted. 
A cooperative shippers association shall not act as an agent of any 
direct air carrier with respect to shipments accepted in its capacity as 
an indirect air carrier.

[ER-1235, 46 FR 38496, July 28, 1981]



 Subpart B_Exemption for Foreign Indirect Air Transportation of Property



Sec. 297.10  Exemption from the Statute.

    (a) Foreign indirect air carriers with an effective registration 
under this part are exempted from the following provisions of the 
Statute only if and so long as they comply with the provisions of this 
part and the conditions imposed herein, and to the extent necessary to 
permit them to arrange their air freight shipments:
    (1) Section 41302 (Permits);
    (2) Sections 41504 and 41510(a) (Tariffs);
    (3) Section 41510(b) (Solicitation of rebates) to the extent 
necessary to permit them to solicit, accept, or receive fees from direct 
air carriers;
    (4) Section 41501 (Carrier's duty to establish just and reasonable 
rates, etc.); and
    (5) If awarded interstate air transportation operating rights, any 
other provision of the Statute that would otherwise prohibit them from 
engaging in the interstate indirect air transportation of property.
    (6) Section 41310 (nondiscrimination) with respect to interstate and 
overseas air transportation.
    (b) Direct air carriers are exempted from Chapter 415 of the Statute 
to the extent necessary to permit them to pay, directly or indirectly, 
fees to foreign air freight forwarders and foreign cooperative shippers 
associations on consolidated shipments.

[ER-1336, 48 FR 22705, May 20, 1983, as amended by ER-1382, 49 FR 25226, 
June 20, 1984; Docket No. 47939, 57 FR 40103, Sept. 2, 1992; 60 FR 
43527, Aug. 22, 1995]



Sec. 297.11  Disclaimer of jurisdiction.

    The Department declines to exercise its jurisdiction over foreign 
indirect air carriers of property with respect to shipments that 
originate in a foreign country. The Department reserves the right to 
exercise its jurisdiction over any foreign indirect air carrier of 
property at any time it finds that such action is in the public 
interest.



Sec. 297.12  General requirements.

    (a) The direct air transportation provided must be performed by 
direct air carriers that hold authority under section 41102, 41103, 
41302, or 41701 of the Statute or are operating under part 298 of this 
chapter;
    (b) Only U.S. citizen direct air carriers may provide direct air 
transportation operations in interstate air transportation.
    (c) Foreign indirect air carriers that hold authority to engage in 
foreign air transportation must apply additionally for permission to 
consolidate freight in interstate air transportation.

[ER-1294, 47 FR 19684, May 7, 1982, as amended at 60 FR 43527, Aug. 22, 
1995]

[[Page 245]]



 Subpart C_Registration for Foreign Air Freight Forwarders and Foreign 
                    Cooperative Shippers Associations



Sec. 297.20  Filing for registration.

    (a) Not later than 60 days before the start of operations as a 
foreign indirect air carrier, every foreign air freight forwarder and 
foreign cooperative shippers association shall apply for registration 
with the Department, unless upon a showing of good cause, the Director, 
Office of Aviation Analysis, allows application at a later time.
    (b) Application shall consist of filing with the Department's Office 
of Aviation Analysis, Special Authorities Division, two copies of 
completed OST Form 4506, which may be obtained from the Department of 
Transportation, Special Authorities Division.

[ER-1159, 44 FR 69635, Dec. 4, 1979, as amended by ER-1265, 46 FR 56602, 
Nov. 18, 1981; Docket No. 47939, 57 FR 40103, Sept. 2, 1992; 60 FR 
43527, Aug. 22, 1995]



Sec. 297.21  Objections to registration application.

    Persons objecting to registration by a foreign air freight forwarder 
or foreign cooperative shippers association shall file their objections 
with the Office of Aviation Analysis, Special Authorities Division, 
within 28 days of the filing date of the registration forms. The 
Department will list the names and nationality of all persons applying 
for registration in its Weekly Summary of Filings.

[ER-1159, 44 FR 69635, Dec. 4, 1979, as amended by Docket No. 47939, 57 
FR 40103, Sept. 2, 1992; 60 FR 43527, Aug. 22, 1995]



Sec. 297.22  Procedure on receipt of registration application.

    After review of a registration form filed under Sec. 297.20, the 
Department will take one or more of the following actions:
    (a) Indicate by stamp on OST Form 4506 the effective date of 
registration, and return to the carrier the duplicate copy of OST Form 
4506 as evidence of registration with the Department under this part;
    (b) Reject an application for registration for failure to comply 
with this part, for reasons relating to the failure of effective 
reciprocity, or if the Department finds that it is in the public 
interest to do so.
    (c) Request additional information from the applicant;
    (d) Issue an order subjecting a carrier's exercise of authority 
under this part to such terms, conditions, or limitations as may be 
required by the public interest; or
    (e) Institute a proceeding under section 41302 of the Statute.

[ER-1159, 44 FR 69635, Dec. 4, 1979, as amended by ER-1294, 47 FR 19685, 
May 7, 1982; Docket No. 47939, 57 FR 40103, Sept. 2, 1992; 60 FR 43527, 
Aug. 22, 1995]



Sec. 297.23  Waiver of sovereign immunity.

    By accepting an approval registration form under this part, a 
carrier waives any right it may possess to assert any defense of 
sovereign immunity from suit in any action or proceeding instituted 
against the carrier in any court or other tribunal in the United States 
based upon any claim arising out of operations by the carrier under this 
part.



Sec. 297.24  Notification to the Department of change of operations.

    (a) Not later than 30 days before any change in its name or address 
or any temporary or permanent cessation of operations, each foreign 
indirect air carrier shall notify the Department's Office of Aviation 
Analysis, Special Authorities Division, of the change by resubmitting 
OST Form 4506.
    (b) The registrant shall apply for an amendment of its registration 
not later than 30 days after any person listed on its existing 
registration as owning or holding beneficial ownership of 10 percent or 
more of the registrant's stock no longer has an interest of 10 percent 
or more, or after any person not so listed becomes an owner or holder of 
10 percent or more. Application for amendment shall be made by 
resubmitting OST Form 4506, but the existing registration shall remain 
valid pending Department action on the amendment.

[ER-1159, 44 FR 69635, Dec. 4, 1979, as amended by Docket No. 47939, 57 
FR 40103, Sept. 2, 1992; 60 FR 43527, Aug. 22, 1995]

[[Page 246]]



Sec. 297.25  Cancellation or conditioning of registration.

    The registration of a foreign indirect air carrier may be canceled 
or subjected to additional terms, conditions or limitations if:
    (a) It files with the Department a written notice that it is 
discontinuing foreign indirect air carrier activities;
    (b) It fails to perform air transportation services as authorized;
    (c) It fails to file the reports required by this part;
    (d) A substantial ownership or control interest is acquired by 
persons who are not citizens of the country of citizenship of the 
registrant;
    (e) There is a failure of effective reciprocity; or
    (f) The Department finds that it is in the public interest to do so.

[ER-1159, 44 FR 69635, Dec. 4, 1979, as amended by ER-1294, 47 FR 19685, 
May 7, 1982]



        Subpart D_General Rules for Foreign Indirect Air Carriers



Sec. 297.30  Public disclosure of cargo liability insurance.

    Every foreign air freight forwarder shall give notice in writing to 
the shipper, when any shipment is accepted, of the limits of its cargo 
liability insurance, or of the absence of such insurance, and the limits 
of its liability, if any. The notice shall be included clearly and 
conspicuously on all of its rate sheets and airwaybills, and on any 
other documentation that is given to a shipper at the time of acceptance 
of the shipment.



Sec. 297.31  Preparation of airwaybills and manifests.

    (a) Each registered foreign indirect air carrier shall prepare an 
accurate airwaybill describing completely all services rendered to or on 
behalf of the shipper, including the conditions under which the contract 
will be completed, in its capacity as a foreign indirect air carrier. A 
copy of the airwaybill shall be given to the consignor and to the 
consignee.
    (b) Each registered foreign indirect air carrier shall prepare an 
accurate manifest showing every individual shipment included in each 
shipment consigned for transportation to a direct air carrier.
    (c) A waiver of paragraph (a) of this section may be granted by the 
Department upon a written application by the foreign indirect air 
carrier not less than 30 days before the shipment to which it relates is 
transported, if the waiver is in the public interest, and is warranted 
by special or unusual circumstances.

Subpart E [Reserved]



                          Subpart F_Violations



Sec. 297.50  Enforcement.

    In case of any violation of any of the provisions of the Statute, or 
this part, or any other rule, regulation or order issued under the 
Statute, the violator may be subject to a proceeding under section 46101 
of the Statute before the Department, or sections 46106 through 46108 of 
the Statute before a U.S. District Court, as the case may be, to compel 
to compliance; or to civil penalties under the provisions of section 
46301 of the Statute; or in the case of willful violation, to criminal 
penalties under the provisions of section 46316 of the Statute; or other 
lawful sanctions including cancellation of registration.

[ER-1159, 44 FR 69635, Dec. 4, 1979, as amended at 60 FR 43527, Aug. 22, 
1995]



PART 298_EXEMPTIONS FOR AIR TAXI AND COMMUTER AIR CARRIER OPERATIONS--Table of Contents




                            Subpart A_General

Sec.
298.1 Applicability of part.
298.2 Definitions.
298.3 Classification.
298.4 Requests for statement of authority.

                          Subpart B_Exemptions

298.11 Exemption authority.
298.12 Duration of exemption.

       Subpart C_Registration for Exemption by Air Taxi Operators

298.21 Filing for registration by air taxi operators.
298.22 Processing by the Department.
298.23 Notifications to the Department of change in operations.

[[Page 247]]

298.24 Cancellation of the registration.

    Subpart D_Limitations and Conditions on Exemptions and Operations

298.30 Public disclosure of policy on consumer protection.
298.31 Scope of service and equipment authorized.
298.32 Limitations on operations to eligible places.
298.33 Security requirements
298.34 [Reserved]
298.35 Limitations on carriage of mail.
298.36 Limitations on use of business name.
298.37 Prohibition of services not covered by insurance.
298.38 Financial security arrangements for operating Public Charters.

              Subpart E_Commuter Air Carrier Authorizations

298.50 Applications.
298.51 Processing by the Department.
298.52 Air taxi operations by commuter air carriers.
298.53 Suspension or revocation of authority.

                    Subpart F_Reporting Requirements

298.60 General reporting instructions.
298.61 Reporting of traffic statistics.
298.62 Reporting of financial data.
298.63 Reporting of aircraft operating expenses and related statistics 
          by small certificated air carriers.
298.65 Requests for extensions of time within which to file reports or 
          for waivers from reporting requirements.
298.66 Reporting exemption for State collection of data.

                   Subpart G_Public Disclosure of Data

298.70 Public disclosure of data.

                          Subpart H_Violations

298.80 Enforcement.

    Authority: 49 U.S.C. 329 and chapters 401, 411, 417.

    Source: ER-929, 40 FR 42855, Sept. 17, 1975, unless otherwise noted. 
Subparts A through E were revised at 70 FR 25768, May 16, 2005.



                            Subpart A_General



Sec. 298.1  Applicability of part.

    This part establishes classifications of air carriers known as ``air 
taxi operators'' and ``commuter air carriers,'' provides certain 
exemptions to them from some of the economic regulatory provisions of 
Subtitle VII of Title 49 of the United States Code (Transportation), 
specifies procedures by which such air carriers may obtain authority to 
conduct operations, and establishes rules applicable to their operations 
in interstate and/or foreign air transportation in all States, 
Territories and possessions of the United States. This part also 
establishes reporting requirements for commuter air carriers and small 
certificated air carriers.



Sec. 298.2  Definitions.

    As used in this part:
    Air taxi operator means an air carrier as established by Sec. 
298.3(a).
    Air transportation means interstate air transportation, foreign air 
transportation, or the transportation of mail by aircraft as defined by 
the Statute.\1\
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    \1\ Interstate air transportation is defined in section 40102(a)(25) 
as the transportation of passengers or property by aircraft as a common 
carrier for compensation, or the transportation of mail by aircraft (1) 
between a place in (i) a State, territory, or possession of the United 
States and a place in the District of Columbia or another State, 
territory, or possession of the United States; (ii) Hawaii and another 
place in Hawaii through the airspace over a place outside Hawaii; (iii) 
the District of Columbia and another place in the District of Columbia; 
or (iv) a territory or possession of the United States and another place 
in the same territory or possession; and (2) when any part of the 
transportation is by aircraft. Note: Operations wholly within the 
geographic limits of a single State are not considered interstate air 
transportation if in those operations the carrier transports no more 
than a de minimus volume of passengers or property moving as part of a 
continuous journey to or from a point outside the State.
    Foreign air transportation is defined in section 40102(a)(23) of the 
Statute as the transportation of passengers or property by aircraft as a 
common carrier for compensation, or the transportation of mail by 
aircraft, between a place in the United States and a place outside the 
United States when any part of the transportation is by aircraft.
    Air transportation also is defined to include the transportation of 
mail by aircraft. Section 5402 of the Postal Reorganization Act, 39 
U.S.C. 5402, authorizes the carriage of mail by air taxi operators and 
commuter air carriers in some circumstances under contract with the U.S. 
Postal Service.

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[[Page 248]]

    Aircraft-hours means the airborne hours of aircraft computed from 
the moment an aircraft leaves the ground until it touches the ground at 
the end of a flight stage.
    Aircraft miles means the miles (computed in airport-to-airport 
distances) for each flight stage actually completed, whether or not 
performed in accordance with the scheduled pattern.
    Certificated air carrier means an air carrier holding a certificate 
issued under section 41102 of the Statute.
    Citizen of the United States means:
    (1) An individual who is a citizen of the United States;
    (2) A partnership each of whose partners is an individual who is a 
citizen of the United States; or
    (3) A corporation or association organized under the laws of the 
United States or a state, the District of Columbia, or a territory or 
possession of the United States, of which the president and at least 
two-thirds of the board of directors and other managing officers are 
citizens of the United States, which is under the actual control of 
citizens of the United States, and in which at least 75 percent of the 
voting interest is owned or controlled by persons that are citizens of 
the United States.
    Commuter air carrier means an air carrier as established by Sec. 
298.3(b) 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.
    Departure means takeoff from an airport.
    Eligible place means a place in the United States that--
    (1)(i) Was an eligible point under section 419 of the Federal 
Aviation Act of 1958 as in effect before October 1, 1988;
    (ii) Received scheduled air transportation at any time after January 
1, 1990; and
    (iii) 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; or
    (2) Was determined, on or after October 1, 1988, and before the date 
of the enactment of the Wendell H. Ford Aviation Investment and Reform 
Act for the 21st Century, by the Department to be eligible to receive 
subsidized small community air service under section 41736(a) of the 
Statute.
    Flight stage means the operation of an aircraft from takeoff to 
landing.
    Large aircraft means any aircraft originally designed to have a 
maximum passenger capacity of more than 60 seats or a maximum payload 
capacity of more than 18,000 pounds.
    Maximum certificated takeoff weight means the maximum takeoff weight 
authorized by the terms of the aircraft airworthiness certificate.\2\
---------------------------------------------------------------------------

    \2\ This weight may be found in the airplane operating record or in 
the airplane flight manual, which is incorporated by regulation into the 
airworthiness certificate.
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    Maximum passenger capacity means the maximum number of passenger 
seats for which an aircraft is configured.
    Maximum payload capacity means: (1) The maximum certificated take-
off weight of an aircraft, less the empty weight,\3\ less all 
justifiable aircraft equipment, and less the operating load (consisting 
of minimum fuel load, oil, flight crew, steward's supplies, etc.). For 
purposes of this part, the allowance for the weight of the crew, oil, 
and fuel is as follows:
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    \3\ Empty weight is defined in section 03 of part 241 as follows: 
the weight of the airframe, engines, propellers, and fixed equipment. 
Empty weight excludes the weight of the crew and payload, but includes 
the weight of all fixed ballast, unusable fuel supply, undrainable oil, 
total quantity of engine coolant, and total quantity of hydraulic fluid.
---------------------------------------------------------------------------

    (i) Crew--200 pounds per crew member required under FAA regulations,
    (ii) Oil--350 pounds,
    (iii) Fuel--the minimum weight of fuel required under FAA 
regulations for a flight between domestic points 200 miles apart,\4\
---------------------------------------------------------------------------

    \4\ Assumes VFR weather conditions and flights not involving 
extended overwater operations.
---------------------------------------------------------------------------

    (2) Provided, however, That in the case of aircraft for which a 
maximum zero fuel weight is prescribed by the FAA,\5\

[[Page 249]]

maximum payload capacity means the maximum zero fuel weight, less the 
caempty weight, less all justifiable aircraft equipment, and less the 
operating load (consisting of minimum flight crew, steward's supplies, 
etc., but not including disposable fuel or oil).
---------------------------------------------------------------------------

    \5\ The maximum zero fuel weight is the maximum permissible weight 
of an airplane with no disposable fuel or oil. The zero fuel weight 
figure may be found in the FAA's type certificate data sheets, and/or in 
FAA-approved flight manuals.
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    Mile means a statute mile, i.e., 5,280 feet.
    Nonrevenue passenger means a person traveling free or under token 
charges, except those expressly named in the definition of revenue 
passenger; a person traveling at a fare or discount available only to 
employees or authorized persons of air carriers or their agents or only 
for travel on the business of the carriers; and an infant who does not 
occupy a seat. (This definition is for 14 CFR part 298 traffic-reporting 
purposes and may differ from the definitions used in other parts by the 
Federal Aviation Administration and the Transportation Security 
Administration for the collection of Passenger Facility Charges and 
Security Fees.) The definition includes, but is not limited to, the 
following examples of passengers when traveling free or pursuant to 
token charges:
    (1) Directors, officers, employees, and others authorized by the air 
carrier operating the aircraft;
    (2) Directors, officers, employees, and others authorized by the air 
carrier or another carrier traveling pursuant to a pass interchange 
agreement;
    (3) Travel agents being transported for the purpose of familiarizing 
themselves with the carrier's services;
    (4) Witnesses and attorneys attending any legal investigation in 
which such carrier is involved;
    (5) Persons injured in aircraft accidents, and physicians, nurses, 
and others attending such persons;
    (6) Any persons transported with the object of providing relief in 
cases of general epidemic, natural disaster, or other catastrophe;
    (7) Any law enforcement official, including any person who has the 
duty of guarding government officials who are traveling on official 
business or traveling to or from such duty;
    (8) Guests of an air carrier on an inaugural flight or delivery 
flights of newly-acquired or renovated aircraft;
    (9) Security guards who have been assigned the duty to guard such 
aircraft against unlawful seizure, sabotage, or other unlawful 
interference;
    (10) Safety inspectors of the National Transportation Safety Board 
or the FAA in their official duties or traveling to or from such duty;
    (11) Postal employees on duty in charge of the mails or traveling to 
or from such duty;
    (12) Technical representatives of companies that have been engaged 
in the manufacture, development or testing of a particular type of 
aircraft or aircraft equipment, when the transportation is provided for 
the purpose of in-flight observation and subject to applicable FAA 
regulations;
    (13) Persons engaged in promoting air transportation;
    (14) Air marshals and other Transportation Security officials acting 
in their official capacities and while traveling to and from their 
official duties; and
    (15) Other authorized persons, when such transportation is 
undertaken for promotional purpose.
    Passengers carried means passengers on board each flight stage.
    Point when used in connection with any territory or possession of 
the United States, or the States of Alaska and Hawaii, means any airport 
or place where aircraft may be landed or taken off, including the area 
within a 25-mile radius of such airport or place; when used in 
connection with the continental United States, except Alaska, it shall 
have the same meaning except be limited to the area within a 3-mile 
radius of such airport or place: Provided, That for the purposes of this 
part, West 30th Street Heliport and Pan Am Building Heliport, both 
located in New York City, shall be regarded as separate points.
    Reporting carrier for Schedule T-100 purposes means the air carrier 
in operational control of the flight, i.e., the carrier that uses its 
flight crews under its own FAA operating authority.
    Revenue passenger means a passenger for whose transportation an air 
carrier receives commercial remuneration. (This definition is for 14 CFR 
part 298

[[Page 250]]

traffic-reporting purposes and may differ from the definitions used in 
other parts by the Federal Aviation Administration and the 
Transportation Security Administration for the collection of Passenger 
Facility Charges and Security Fees.) This includes, but is not limited 
to, the following examples:
    (1) Passengers traveling under publicly available tickets including 
promotional offers (for example two-for-one) or loyalty programs (for 
example, redemption of frequent flyer points);
    (2) Passengers traveling on vouchers or tickets issued as 
compensation for denied boarding or in response to consumer complaints 
or claims;
    (3) Passengers traveling at corporate discounts;
    (4) Passengers traveling on preferential fares (Government, seamen, 
military, youth, student, etc.);
    (5) Passengers traveling on barter tickets; and
    (6) Infants traveling on confirmed-space tickets.
    Revenue passenger-mile means one revenue passenger transported one 
mile. Revenue passenger-miles are computed by multiplying the aircraft 
miles flown on each flight stage by the number of revenue passengers 
carried on that flight stage.
    Revenue seat-miles available means the aircraft-miles flown on each 
flight stage multiplied by the number of seats available for sale on 
that flight stage.
    Revenue ton-mile means one ton of revenue traffic transported one 
mile. Revenue ton-miles are computed by multiplying the aircraft-miles 
flown on each flight stage by the number of pounds of revenue traffic 
carried on that flight stage and converted to ton-miles by dividing 
total revenue pound-miles by 2,000 pounds.
    Revenue ton-miles available means the aircraft-miles flown on each 
flight stage multiplied by the number of pounds of aircraft capacity 
available for use on that stage and converted to ton-miles by dividing 
total pound-miles available by 2,000 pounds.
    Scheduled service means transport service operated over routes 
pursuant to published flight schedules or pursuant to mail contracts 
with the U.S. Postal Service.
    Small aircraft means any aircraft originally designed to have a 
maximum passenger capacity of 60 seats or less or a maximum payload 
capacity of 18,000 pounds or less.
    Small certificated air carrier means an air carrier holding a 
certificate issued under section 41102 of the Statute that provides 
scheduled passenger air service within and between only the 50 States of 
the United States, the District of Columbia, the Commonwealth of Puerto 
Rico, and the U.S. Virgin Islands with small aircraft as defined in this 
section.
    Statute means Subtitle VII of Title 49 of the United States Code 
(Transportation).
    Ton means a short ton, i.e., 2,000 pounds.
    Wet-Lease Agreement means an agreement under which one carrier 
leases an aircraft with flight crew to another air carrier.



Sec. 298.3  Classification.

    (a) There is hereby established a classification of air carriers, 
designated as ``air taxi operators,'' which directly engage in the air 
transportation of persons or property or mail or in any combination of 
such transportation and which:
    (1) Do not directly or indirectly utilize large aircraft in air 
transportation;
    (2) Do not hold a certificate of public convenience and necessity 
and do not engage in scheduled passenger operations as specified in 
paragraph (b) of this section;
    (3) Have and maintain in effect liability insurance coverage in 
compliance with the requirements set forth in part 205 of this chapter 
and have and maintain a current certificate of insurance evidencing such 
coverage on file with the Department;
    (4) If operating in foreign air transportation or participating in 
an interline agreement, subscribe to Agreement 18900 (OST Form 4523 or 
OST Form 4507) and comply with all other requirements of part 203 of 
this chapter; and
    (5) Have registered with the Department in accordance with subpart C 
of this part.
    (b) There is hereby established a classification of air carriers, 
designated as

[[Page 251]]

``commuter air carriers,'' which directly engage in the air 
transportation of persons, property or mail, and which:
    (1) Do not directly or indirectly utilize large aircraft in air 
transportation;
    (2) Do not hold a certificate of public convenience and necessity;
    (3) Carry 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;
    (4) Have and maintain in effect liability insurance coverage in 
compliance with the requirements set forth in part 205 of this chapter 
and have and maintain a current certificate of insurance evidencing such 
coverage on file with the Department;
    (5) Have and maintain in effect and on file with the Department a 
signed counterpart of Agreement 18900 (OST Form 4523) and comply with 
all other requirements of part 203 of this chapter; and
    (6) Hold a Commuter Air Carrier Authorization issued in accordance 
with subpart E of this part.
    (c) A person who does not observe the conditions set forth in 
paragraph (a) or (b) of this section shall not be an air taxi operator 
or commuter air carrier within the meaning of this part with respect to 
any operations conducted while such conditions are not being observed, 
and during such periods is not entitled to any of the exemptions set 
forth in this part.



Sec. 298.4  Requests for statement of authority.

    In any instance where an air taxi operator or commuter air carrier 
is required by a foreign government to produce evidence of its authority 
to engage in foreign air transportation under the laws of the United 
States, the Director, Office of Aviation Analysis (X-50), Office of the 
Secretary, 400 7th Street, SW, Washington, DC 20590, will, upon request, 
furnish the carrier with a written statement, outlining its general 
operating privileges under this part for presentation to the proper 
authorities of the foreign government.



                          Subpart B_Exemptions



Sec. 298.11  Exemption authority.

    Air taxi operators and commuter air carriers are hereby relieved 
from the following provisions of the Statute only if and so long as they 
comply with the provisions of this part and the conditions imposed 
herein, and to the extent necessary to permit them to conduct air taxi 
or commuter air carrier operations:
    (a) Section 41101;
    (b) Section 41504; except that the requirements of that section 
shall apply to:
    (1) Tariffs for through rates, fares, and charges filed jointly by 
air taxi operators or commuter air carriers with air carriers or with 
foreign air carriers subject to the tariff-filing requirements of 
Chapter 415; and
    (2) Tariffs required to be filed by air taxi operators or commuter 
air carriers which embody the provisions of the counterpart to Agreement 
18900 as specified in part 203 of this chapter;
    (c) Section 41702, except for the requirements that air taxi 
operators and commuter air carriers shall:
    (1) Provide safe service, equipment, and facilities in connection 
with air transportation;
    (2) Provide adequate service insofar as that requires them to comply 
with parts 252 and 382 of this chapter;
    (3) Observe and enforce just and reasonable joint rates, fares, and 
charges, and just and reasonable classifications, rules, regulations and 
practices as provided in tariffs filed jointly by air taxi operators or 
commuter air carriers with certificated air carriers or with foreign air 
carriers; and
    (4) Establish just, reasonable, and equitable divisions of such 
joint rates, fares, and charges as between air carriers participating 
therein which shall not unduly prefer or prejudice any of such 
participating air carriers;
    (d) Section 41310, except that the requirements of that subsection 
shall apply to through service provided pursuant to tariffs filed 
jointly by air taxi operators or commuter air carriers with certificated 
air carriers or with foreign air carriers and to transportation of the 
handicapped to the extent

[[Page 252]]

that that is required by part 382 of this chapter;
    (e) Section 41902;
    (f) Section 41708.



Sec. 298.12  Duration of exemption.

    The exemption from any provision of the Statute provided by this 
part shall continue in effect only until such time as the Department 
shall find that enforcement of that provision would be in the public 
interest, at which time the exemption shall terminate or be conditioned 
with respect to the person, class of persons, or service (e.g., limited-
entry foreign air transportation market) subject to the finding.



       Subpart C_Registration for Exemption by Air Taxi Operators



Sec. 298.21  Filing for registration by air taxi operators.

    (a) Every air taxi operator who plans to commence operations under 
this part shall register with the Department not later than 30 days 
prior to the commencement of such operations, unless, upon a showing of 
good cause satisfactory to the Manager, Program Management Branch (AFS-
260), Federal Aviation Administration, registration within a lesser 
period of time is allowed.
    (b) The registration of an air taxi operator shall remain in effect 
until it is amended by the carrier or canceled by the Department.
    (c) Registration by all air taxi operators shall be accomplished by 
filing with the Department at the address specified in paragraph (d) of 
this section the following:
    (1) Air Taxi Registration (OST Form 4507), executed in duplicate.\6\ 
This form shall be certified by a responsible official and shall include 
the following information:
---------------------------------------------------------------------------

    \6\ OST Form 4507 can be obtained from the Manager, Program 
Management Branch, Federal Aviation Administration, AFS-260, or on the 
World Wide Web at http://www.faa.gov/avr/afs/afs200/afs260/Part298.cfm.
---------------------------------------------------------------------------

    (i) The name of the carrier and its mailing address;
    (ii) The carrier's principal place of business, if different from 
its mailing address, and its telephone number and fax number;
    (iii) The carrier's FAA certificate number, if any, and the address 
and telephone number of the carrier's local FAA office;
    (iv) The type of service the carrier will offer (scheduled 
passenger,\7\ scheduled cargo, mail under a U.S. Postal Service 
contract, on-demand passenger, on-demand cargo, or other service such as 
air ambulance operations, firefighting or seasonal operations);
---------------------------------------------------------------------------

    \7\ Companies proposing to provide scheduled passenger service at 
the level established by this Part for commuter air carriers are not 
permitted to conduct such operations under their air taxi registration; 
such companies must first be found fit, willing and able to operate and 
be issued a Commuter Air Carrier Authorization by the Department.
---------------------------------------------------------------------------

    (v) A list of the aircraft that the carrier proposes to operate, or, 
in the case of an amendment to the registration, the aircraft that it is 
currently operating in its air taxi operations, and the aircraft type, 
FAA registration number and passenger capacity of each aircraft;
    (vi) For initial registration, the proposed date of commencement of 
air taxi operations;
    (vii) For amendments, whether the carrier has carried passengers in 
foreign air transportation during the previous 12 months;
    (viii) Whether the carrier is a citizen of the United States; and
    (ix) A certification that the registration is complete and accurate 
and that, if the carrier is engaged in foreign air transportation, or 
participating in an interline agreement, it subscribes to the terms of 
Agreement 18900 (see OST Form 4523).
    (2) A certificate of insurance (OST Form 6410) which is currently 
effective (or in case of initial registration, is to become effective), 
as defined in part 205 of this chapter;
    (3) An 8 dollar ($8) registration filing fee in the form of a check, 
draft, or postal money order payable to the Department of 
Transportation.
    (d) Registrations required in paragraph (c) of this section shall be 
submitted to the Department of Transportation, Federal Aviation 
Administration, Program Management Branch

[[Page 253]]

(AFS-260), 800 Independence Avenue, SW., Washington, DC 20591. For those 
air taxi operators that have a mailing address in the State of Alaska, 
the registrations shall be filed with the Department of Transportation, 
Federal Aviation Administration, Alaskan Region Headquarters (AAL-230), 
222 West 7th Avenue, Box 14, Anchorage, Alaska 99513.



Sec. 298.22  Processing by the Department.

    After examination of the OST Form 4507 submitted by the carrier, the 
Department will stamp the effective date of the registration on the form 
and return the duplicate copy to the carrier to confirm that it has 
registered with the Department as required by this part. The effective 
date of the registration shall not be earlier than the effective date of 
the insurance policy or policies named in the certificate of insurance 
filed by the carrier under Sec. 298.21(c)(2).



Sec. 298.23  Notifications to the Department of change in operations.

    (a) If any of the information contained on its registration changes, 
an air taxi operator shall submit an amendment reflecting the updated 
information. This amendment shall be filed no later than 30 days after 
the change occurs. There is no filing fee for submitting an amendment.
    (b) An amendment shall be made by resubmitting OST Form 4507 to the 
Department of Transportation, Federal Aviation Administration, Program 
Management Branch (AFS-260), 800 Independence Avenue, SW., Washington, 
DC 20591. If the air taxi operator has a mailing address in the State of 
Alaska, the form shall be mailed to the Department of Transportation, 
Federal Aviation Administration, Alaskan Region Headquarters (AAL-230), 
222 West 7th Avenue, Box 14, Anchorage, Alaska 99513.



Sec. 298.24  Cancellation of the registration.

    The registration of an air taxi operator may be canceled by the 
Department if any of the following occur:
    (a) The operator ceases its operations;
    (b) The operator's insurance coverage changes or lapses;
    (c) The operator fails to file an amended registration when required 
by Sec. 298.23;
    (d) The operator's Air Carrier Certificate and/or Operations 
Specifications is revoked by the Federal Aviation Administration;
    (e) The operator fails to qualify as a citizen of the United States;
    (f) The Department determines that it is otherwise in the public 
interest to do so.



    Subpart D_Limitations and Conditions on Exemptions and Operations



Sec. 298.30  Public disclosure of policy on consumer protection.

    (a) Every air taxi and commuter air carrier shall cause to be 
displayed continuously in a conspicuous public place at each desk, 
station and position in the United States that is in charge of a person 
employed exclusively by it, or by it jointly with another person, or by 
any agent employed by it to sell tickets to passengers, a sign located 
so as to be clearly visible and readable to the traveling public, 
containing a statement setting forth the air taxi and commuter air 
carrier's policy on baggage liability and denied boarding compensation.
    (b) An air taxi or commuter air carrier shall provide a written 
notice on or with a passenger's ticket concerning baggage liability as 
provided in Sec. 254.5 of this chapter. These ticket notices are 
required only for passengers whose ticket includes a flight segment that 
uses large aircraft (more than 60 seats).
    (c) If the substantive terms of the counter sign and ticket notice 
required by this section differ, the terms contained in the required 
ticket notice govern.



Sec. 298.31  Scope of service and equipment authorized.

    Nothing in this part shall be construed as authorizing the operation 
of large aircraft in air transportation, and the exemption provided by 
this part to air taxi operators and commuter air carriers that register 
with

[[Page 254]]

the Department extends only to the direct operation in air 
transportation in accordance with the limitations and conditions of this 
part of aircraft originally designed to have a maximum passenger 
capacity of 60 seats or less or a maximum payload capacity of 18,000 
pounds or less.



Sec. 298.32  Limitations on operations to eligible places.

    No person shall provide scheduled passenger service as a commuter 
air carrier at an eligible place unless it has been found by the 
Department to be fit, willing, and able to conduct such service and 
issued a Commuter Air Carrier Authorization as provided in subpart E of 
this part.



Sec. 298.33  Security requirements.

    In conducting operations under this part, an air taxi operator or a 
commuter air carrier is required to adhere to all security requirements 
established by the Department of Transportation and the Department of 
Homeland Security applicable to such operations.



Sec. 298.34  [Reserved]



Sec. 298.35  Limitations on carriage of mail.

    An air taxi operator or commuter air carrier is not authorized to 
carry mail except pursuant to contract with the U.S. Postal Service 
entered into pursuant to section 5402 of the Postal Reorganization Act 
(39 U.S.C. 5402).



Sec. 298.36  Limitations on use of business name.

    (a) An air taxi operator or commuter air carrier in holding out to 
the public and in performing its services in air transportation shall do 
so only in the name or names in which its air carrier certificate is 
issued pursuant to section 44702 of the Statute by the Federal Aviation 
Administration, and in which it is registered with the Department under 
this part, or in which its Commuter Air Carrier Authorization is issued 
or other trade name is registered.
    (b) Slogans shall not be considered names for the purposes of this 
section, and their use is not restricted hereby.
    (c) Commuter air carriers are subject to the provisions of part 215 
of this chapter with regard to the use and change of air carrier names.
    (d) Neither the provisions of this section nor the grant of a 
permission hereunder shall preclude Department intervention or 
enforcement action should there be evidence of a significant potential 
for, or of actual, public confusion.



Sec. 298.37  Prohibition of services not covered by insurance.

    An air taxi operator or commuter air carrier shall not operate in 
air transportation or provide or offer to provide air transportation 
unless there is in effect liability insurance which covers such 
transportation and which is evidenced by a current certificate of 
insurance on file with the Department as required by part 205 of this 
chapter.



Sec. 298.38  Financial security arrangements for operating Public Charters.

    When an air taxi operator or commuter air carrier performs a Public 
Charter under part 380 of this chapter, either:
    (a) The air taxi operator or commuter air carrier shall meet the 
bonding or escrow requirements applicable to certificated air carriers 
as set forth in Sec. 212.8 of this chapter; or
    (b) The air taxi operator or commuter air carrier shall ensure that 
it does not receive any payments for the charter until after the charter 
has been completed. In this case, its contracts with the charter 
operator and the charter operator's depository bank, if any, shall state 
that the charter operator or bank, as applicable, shall retain control 
of and responsibility for all participant funds intended for payment for 
air transportation until after the charter has been completed, 
notwithstanding any provision of part 380 of this chapter.



              Subpart E_Commuter Air Carrier Authorizations



Sec. 298.50  Application.

    (a) Any person desiring to provide air transportation as a commuter 
air carrier must first obtain a Commuter Air

[[Page 255]]

Carrier Authorization. This shall be accomplished by filing with the 
Department--
    (1) An application in accordance with the requirements of parts 201 
and 302 of this chapter;
    (2) Data in accordance with part 204 of this chapter to support a 
determination by the Department that the person is ``fit, willing, and 
able'' to operate the proposed commuter service; and
    (3) A $670 filing fee in the form of a check, draft, or postal money 
order payable to the Department of Transportation.
    (b) An executed original and two true copies of an application for a 
Commuter Air Carrier Authorization shall be filed with Department of 
Transportation Dockets, 400 7th Street SW, PL-401, Washington, DC 20590.



Sec. 298.51  Processing by the Department.

    In processing applications filed in accordance with Sec. 298.50, 
the Department will generally follow the procedures set forth in 
Sec. Sec. 302.207 through 302.211 of this chapter.



Sec. 298.52  Air taxi operations by commuter air carriers.

    (a) A commuter air carrier that holds an effective Commuter Air 
Carrier Authorization and otherwise meets the requirements of this part 
is also authorized to conduct air taxi operations (e.g., scheduled 
cargo, mail under a U.S. Postal Service contract, on-demand passenger, 
on-demand cargo, or other service such as air ambulance operations, 
firefighting or seasonal operations) without having to meet the 
registration requirements of subpart C of this part, except as provided 
in paragraph (b) of this section.
    (b) Should a commuter air carrier cease conducting all scheduled 
passenger operations and its Commuter Air Carrier Authorization is 
suspended pursuant to Sec. Sec. 298.53 and/or 204.7 of this chapter, it 
may continue to conduct air taxi operations provided that the carrier 
maintains in effect liability insurance coverage as required for such 
operations by part 205 of this chapter and, within 10 days of the 
cessation of scheduled passenger operations, registers as an air taxi 
operator in accordance with subpart C of this part; and provided further 
that the carrier continues to hold authority from the Federal Aviation 
Administration to conduct such air taxi operations.



Sec. 298.53  Suspension or revocation of authority.

    A Commuter Air Carrier Authorization may be suspended or revoked if 
any of the following occur:
    (a) The operator fails to maintain insurance coverage as required by 
part 205 of this chapter for commuter operations;
    (b) The scheduled passenger authority under the operator's Air 
Carrier Certificate is suspended or revoked by the Federal Aviation 
Administration;
    (c) The operator does not commence operations for which it has been 
found fit, or the operator ceases those operations as provided in Sec. 
204.7 of this chapter;
    (d) The Department finds that the carrier is not fit, willing, and 
able to conduct scheduled service or fails to qualify as a citizen of 
the United States; or
    (e) The Department determines that it is otherwise in the public 
interest to do so.



                    Subpart F_Reporting Requirements



Sec. 298.60  General reporting instructions.

    (a) Each commuter air carrier and each small certificated air 
carrier shall file with the Department's Bureau of Transportation 
Statistics (BTS) the applicable schedules of BTS Form 298-C, A Report of 
Financial and Operating Statistics for Small Aircraft Operators' and 
Schedule T-100, AU.S. Air Carrier Traffic and Capacity Data by Nonstop 
Segment and On-Flight Market'' as required by this section.
    (b) A single copy of the BTS Form 298-C report shall be filed 
quarterly with the Office of Airline Information (OAI) for the periods 
ended March 31, June 30, September 30 and December 31 of each year to be 
received on or before May 10, August 10, November 10, and February 10, 
respectively. An electronic filing of the monthly Schedule T-100 is due 
at OAI within 30 days after

[[Page 256]]

the end of each month. Due dates falling on a Saturday, Sunday or 
Federal holiday will become effective on the next work day.
    (c) All reports should be addressed as follows: Office of Airline 
Information, K-25, Room 4125, U.S. Department of Transportation, 400 
Seventh St., SW., Washington, DC 20590.
    (d) All information included in BTS Form 298-C schedules shall be 
typed or neatly printed.
    (e) BTS Form 298-C schedules can be obtained from the above address 
or by telephone (202) 366-9059.

[ER-1399, 50 FR 19, Jan. 2, 1985, as amended by Docket No. 47939, 57 FR 
40104, Sept. 2, 1992; 60 FR 66726, Dec. 26, 1995; 67 FR 49231, July 30, 
2002]



Sec. 298.61  Reporting of traffic statistics.

    (a) Each commuter air carrier and small certificated air carrier 
shall file Schedule T-100, AU.S. Air Carrier Traffic and Capacity Data 
by Nonstop Segment and On-Flight Market.''
    (b) Schedule T-100 shall be filed monthly as set forth in ``298.60.
    (1) Schedule T-100 collects summarized flight stage data and on-
flight market data from revenue flights. All traffic statistics shall be 
compiled in terms of each flight stage as actually performed. The detail 
T-100 data shall be maintained in such a manner as to permit monthly 
summarization and organization into two basic groupings. The first 
grouping, the nonstop segment information, is to be summarized by 
equipment type, within class of service, within pair-of-points, without 
regard to individual flight number. The second grouping requires that 
the enplanement/deplanement information be broken out into separate 
units called on-flight market records, which shall be summarized by 
class of service, within pair-of-points, without regard for equipment 
type or flight number.
    (2) Joint-service operations. The Department may authorize joint 
service operations between two direct air carriers. Examples of these 
joint-service operations are: blocked-space agreements; part-charter 
agreements; code-sharing agreements; wet-lease agreements, and similar 
arrangements.
    (i) Joint-service operations are reported by the carrier in 
operational control of the flight, i.e., the carrier that uses its 
flight crews under its own FAA operating authority. The traffic moving 
under these agreements is reported on Schedule T-100 the same way as any 
other traffic on the aircraft.
    (ii) If there are questions about reporting a joint-service 
operation, contact the BTS Assistant Director--Airline Information (fax 
no. 202 366-3383, telephone no. 202 366-4373). Joint-service operations 
are reported in Schedule T-100 in accordance with this paragraph (b).
    (iii) Operational control. The air carrier in operational control of 
the aircraft (the carrier that uses its flight crews under its own FAA 
operating authority) must report joint-service operations.
    (c) Service classes. (1) The statistical classifications are 
designed to reflect the operating characteristics attributable to each 
distinctive type of service offered. The combination of scheduled and 
nonscheduled operations with passenger, all-cargo, and military services 
are placed into service classes as follows:

------------------------------------------------------------------------
               Code                           Type of Service
------------------------------------------------------------------------
F................................  Scheduled Passenger/Cargo
G................................  Scheduled All-Cargo
L................................  Nonscheduled Civilian Passenger/Cargo
P................................  Nonscheduled Civilian Cargo
N................................  Nonscheduled Military Passenger/Cargo
R................................  Nonscheduled Military Cargo
------------------------------------------------------------------------

    (2) Scheduled services include traffic and capacity elements 
applicable to air transportation provided pursuant to published 
schedules and extra sections of scheduled flights. Scheduled Passenger/
Cargo (Service Class F) is a composite of first class, coach, and mixed 
passenger/cargo service.
    (3) Nonscheduled services include all traffic and capacity elements 
applicable to the performance of nonscheduled aircraft charters, and 
other air transportation services not constituting an integral part of 
services performed pursuant to published flight schedules.
    (d) Air transport traffic and capacity elements. (1) Within each of 
the service classifications, carriers shall report air transport traffic 
and capacity elements. The elements are reported on segment or market 
records as follows:

[[Page 257]]



------------------------------------------------------------------------
                                                             Computed by
   Code         Description         Segment       Market         DOT
------------------------------------------------------------------------
           Carrier, carrier      S             M
            entity code.
           Reporting period      S             M
            date.
           Origin airport code.  S             M
           Destination airport   S             M
            code.
           Service class code..  S             M
           Aircraft type code..  S
110......  Revenue passengers                  M
            enplaned.
130......  Revenue passengers    S
            transported.
140......  Revenue passenger-                               CFD*
            miles.
210......  Revenue cargo tons                               CFD*
            enplaned.
217......  Enplaned freight....                M
219......  Enplaned mail.......                M
230......  Revenue tons                                     CFD*
            transported.
237......  Transported freight.  S
239......  Transported mail....  S
240......  Revenue ton-miles...                             CFD*
241......  Revenue ton-miles                                CFD*
            passenger.
247......  Revenue ton-miles                                CFD*
            freight.
249......  Revenue ton-miles                                CFD*
            mail.
270......  Available capacity    S
            payload.
280......  Available ton-miles.                             CFD*
310......  Available seats,      S
            total.
320......  Available seat-miles                             CFD*
410......  Revenue aircraft                                 CFD*
            miles flown.
430......  Revenue aircraft                                 CFD*
            miles scheduled.
501......  Inter-airport                                    CFD*
            distance.
510......  Revenue aircraft      S
            departures
            performed.
520......  Revenue aircraft      S
            departures
            scheduled.
610......  Revenue aircraft      S
            hours (airborne).
630......  Aircraft hours (ramp- S
            to-ramp).
650......  Total aircraft hours  S
            (airborne).
------------------------------------------------------------------------
*CFD = Computed by DOT from detail Schedule T-100 and T-100(f) data.

    (2) [Reserved]
    (e) These reported items are further described as follows:
    (1) Reporting period date. The year and month to which the reported 
data are applicable.
    (2) Carrier, Carrier entity code. Each air carrier shall report its 
name and entity code (a five digit code assigned by BTS that identifies 
both the carrier and its entity) for its particular operations. The 
Office of Airline Information (OAI) will assign or confirm codes upon 
request; OAI's address is Office of Airline Information, BTS, DOT Room 
4125, K-14, 400 Seventh Street, SW., Washington, DC 20590-0001.
    (3) Service class code. The service class codes are prescribed in 
section 298.61(c). In general, classes are divided into two broad 
categories, either scheduled or nonscheduled, where scheduled = F + G 
and nonscheduled = L + N + P + R.
    (4) Record type code. This code indicates whether the data pertain 
to non-stop segment (record type S) or on-flight market (record type M).
    (5) Aircraft type code. This code represents the aircraft types, as 
described in the BTS' Accounting and Reporting Directives.
    (6) Origin, Destination airport code(s). These codes represent the 
industry designators. An industry source of these industry designator 
codes is the Official Airline Guide (OAG). OAI assigns codes upon 
request if not listed in the OAG.
    (7) 110 Revenue passengers enplaned. The total number of revenue 
passengers enplaned at the origin point of a flight, boarding the flight 
for the first time; an unduplicated count of passengers in a market. 
Under the T-100 system of reporting, these enplaned passengers are the 
sum of the passengers in the individual on-flight markets. In the 
domestic entity, report only the total revenue passengers enplaned in 
item 110.
    (8) 130 Revenue passengers transported. The total number of revenue 
passengers transported over a single flight stage, including those 
already on the aircraft from a previous flight stage. In the domestic 
entity, report only the total revenue passengers transported in item 
130.
    (9) 140 Revenue passenger-miles. Computed by multiplying the inter-
airport distance of each flight stage by the number of passengers 
transported on that flight stage.
    (10) 210 Revenue cargo tons enplaned. The total number of cargo tons 
enplaned. This data element is a sum of the individual on-flight market 
figures for each of the following categories: 217 Freight and 219 Mail. 
This element represents an unduplicated count of the revenue traffic in 
a market.
    (11) 217 Enplaned freight. The total weight of revenue freight 
enplaned at the origin point of a flight, loaded onto the flight for the 
first time; an unduplicated count of freight in a market.
    (12) 219 Enplaned mail. The total weight of mail enplaned at the 
origin point of a flight, loaded onto the flight for the first time; an 
unduplicated count of mail in a market.

[[Page 258]]

    (13) 230 Revenue tons transported. The number of tons of revenue 
traffic transported. This element is the sum of the following elements: 
231 Passengers transported-total, 237 Freight, and 239 Mail.
    (14) 237 Transported freight. The total weight of freight 
transported over a single flight stage, including freight already on the 
aircraft from a previous flight stage.
    (15) 239 Transported mail. The total weight of mail transported over 
a single flight stage, including mail already on the aircraft from a 
previous flight stage.
    (16) 240 Revenue ton-miles--total. Ton-miles are computed by 
multiplying the revenue aircraft miles flown (410) on each flight stage 
by the number of tons transported on that stage. This element is the sum 
of 241 through 249.
    (17) 241 Revenue ton-miles--passenger. Equals the number of 
passengers times 200, times inter-airport distance, divided by 2000. A 
standard weight of 200 pounds per passenger, including baggage, is used 
for all operations and service classes.
    (18) 247 Revenue ton-miles--freight. Equals the volume of freight in 
whole tons times the inter-airport distance.
    (19) 249 Revenue ton-miles--mail. Equals the volume of mail in whole 
tons times the inter-airport distance.
    (20) 270 Available capacity-payload. The available capacity is 
collected in pounds. This figure shall reflect the payload or total 
available capacity for passengers, mail, and freight applicable to the 
aircraft with which each flight stage is performed.
    (21) 280 Available ton-miles. The aircraft miles flown on each 
flight stage multiplied by the available capacity on the aircraft in 
tons.
    (22) 310 Available seats. The number of seats available for sale. 
This figure reflects the actual number of seats available, excluding 
those blocked for safety or operational reasons. In the domestic entity, 
report the total available seats in item 130. Scheduled and nonscheduled 
available seats are reported in item 130.
    (23) 320 Available seat-miles. The aircraft miles flown on each 
flight stage multiplied by the seat capacity available for sale.
    (24) 410 Revenue aircraft miles flown. Revenue aircraft miles flown 
are computed based on the airport pairs between which service is 
actually performed; miles are generated from the data for scheduled 
aircraft departures (Code 520) times the inter-airport distances (Code 
501).
    (25) 430 Revenue aircraft miles scheduled. The number of revenue 
aircraft miles scheduled. All such data shall be maintained in 
conformity with the airport pairs between which service is scheduled, 
whether or not in accordance with actual performance.
    (26) 501 Inter-airport distance. The great circle distance, in 
official statute miles as prescribed in part 247 of this chapter, 
between airports served by each flight stage. Official inter-airport 
mileage may be obtained from the Office of Airline Information.
    (27) 510 Revenue aircraft departures performed. The number of 
revenue aircraft departures performed.
    (28) 520 Revenue aircraft departures scheduled. The number of 
revenue aircraft departures scheduled, whether or not actually 
performed.
    (29) 610 Revenue aircraft hours (airborne). The elapsed time, 
computed from the moment the aircraft leaves the ground until its next 
landing.
    (30) 630 Aircraft hours (ramp-to-ramp). The elapsed time, computed 
from the moment the aircraft first moves under its own power from the 
boarding ramp at one airport to the time it comes to rest at the ramp 
for the next point of landing. This data element is also referred to as 
`block' and `block-to-block' aircraft hours.
    (31) 650 Total aircraft hours (airborne). The elapsed time, computed 
from the moment the aircraft leaves the ground until it touches down at 
the next landing. This includes flight training, testing, and ferry 
flights.
    (f) Public availability of Schedule T-100 data. Detailed domestic 
on-flight market and nonstop segment data in Schedule T-100, except 
military data, shall be publicly available after processing. Domestic 
data are defined as data from air transportation operations from a place 
in any State of the United States, the District of Columbia, the 
Commonwealth of Puerto Rico

[[Page 259]]

and the Virgin Islands, or a U.S. territory or possession to a place in 
any State of the United States, the District of Columbia, the 
Commonwealth of Puerto Rico and the Virgin Islands, or a U.S. territory 
or possession.

    Appendix to Sec. 298.61--Instructions to U.S. Air Carriers for 
          Reporting Traffic and Capacity Data on Schedule T-100

    (a) Format of reports--(1) Automatic Data Processing (ADP) magnetic 
tape. Refer to paragraph (f) of this appendix for instructions 
pertaining to mainframe and minicomputer reporting. The Department will 
issue ``Accounting and Reporting Directives'' to make necessary 
technical changes to these T-100 instructions. Technical changes which 
are minor in nature do not require public notice and comment.
    (2) Microcomputer diskette.--(i) Optional specification. If an air 
carrier desires to use its personal computers (PC's), rather than 
mainframe or minicomputers to prepare its data submissions, the 
following specifications for filing data on diskette media apply.
    (ii) Reporting medium. Microcomputer ADP data submission of T-100 
information must be on IBM compatible disks. Carriers wishing to use a 
different ADP procedure must obtain written approval to do so from the 
BTS Assistant Director--Airline Information. Requests for approval to 
use alternate methods must disclose and describe the proposed data 
transmission methodology. Refer to paragraph (k) of this appendix for 
microcomputer record layouts.
    (iii) Microcomputer file characteristics. The files will be created 
in ASCII delimited format, sometimes called Data Interchange Format 
(DIF). This form of recording data provides for variable length fields 
(data elements) which, in the case of alphabetic data, are enclosed by 
quotation marks (``) and separated by a comma (,) or tab. Numeric data 
elements that are recorded without editing symbols are also separated by 
a comma (,) or tab. The data are identified by their juxtaposition 
within a given record. Therefore, each record must contain the exact 
number of data elements, all of which must be juxtapositionally correct. 
Personal computer software including most spreadsheets, data base 
management programs, and BASIC are capable of producing files in this 
format.
    (b)-(c) [Reserved]
    (d) Filing date for reports. The reports must be received at BTS 
within 30 days following the end of each reporting period.
    (e) Address for filing. Data Administration Division, K-14, Room 
4125, Office of Airline Information, Bureau of Transportation 
Statistics, U.S. Department of Transportation, 400 Seventh Street SW., 
Washington, DC 20590-0001.
    (f) ADP format for magnetic tape--(1) Magnetic tape specifications. 
IBM compatible 9-track EBCDIC recording. Recording density of 6250 or 
1600 bpi. The order of recorded information is:
    (i) Volume label.
    (ii) Header label.
    (iii) Data records.
    (iv) Trailer label.
    (g) External tape label information. (1) Carrier name.
    (2) Report date.
    (3) File identification.
    (4) Carrier address for return of tape reel.
    (h) Standards. It is the policy of the Department to be consistent 
with the American National Standards Institute and the Federal Standards 
Activity in all data processing and telecommunications matters. It is 
our intention that all specifications in this application are in 
compliance with standards promulgated by these organizations.
    (i) Volume, header, and trailer label formats--(1) Use standard IBM 
label formats. The file identifier field of the header labels should be 
``T-100.SYSTEM''.
    (2) [Reserved]
    (j) Magnetic tape record layouts for T-100--(1) Nonstop segment 
record layout.

------------------------------------------------------------------------
    Field No.     Positions        Mode               Description
------------------------------------------------------------------------
1...............         1   1T.............  Record type code (S =
                                               nonstop segment).
2...............       2-6   5T.............  Carrier entity code.
3...............      7-12   6T.............  Report date (YYYYMM).
4...............     13-15   3T.............  Origin airport code.
5...............     16-18   3T.............  Destination airport code.
6...............        19   1T.............  Service class code (F, G,
                                               L, N, P or R).
7...............     20-23   4T.............  Aircraft type code.
8...............     24-28   5N.............  Revenue departures
                                               performed (F, G, L, N, P,
                                               R510).
9...............     29-38   10N............  Available capacity payload
                                               (lbs) (F, G, L, N, P,
                                               R270).
10..............     39-45   7N.............  Available seats (F, L,
                                               N310).
11..............     46-52   7N.............  Passengers transported (F,
                                               L, N130).
12..............     53-62   10N............  Rev freight transported
                                               (F, G, L, N, P, R237)(in
                                               lbs).
13..............     63-72   10N............  Revenue mail transported
                                               (F, G, L, N, P, R239) (in
                                               lbs).
14..............     73-77   5N.............  Revenue aircraft
                                               departures scheduled (F,
                                               G520).
15..............     78-87   10N............  Rev hrs, ramp-to-ramp (F,
                                               G, L, N, P, R630) (in
                                               minutes).
16..............     88-97   10N............  Rev hrs, airborne (F, G,
                                               L, N, P, R610) (in
                                               minutes).
------------------------------------------------------------------------
T=Text.
N=Numeric.

    (2) On-flight market record layout.

------------------------------------------------------------------------
    Field No.     Positions        Mode               Description
------------------------------------------------------------------------
1...............         1   1T.............  Record type: M = on-flight
                                               market record.
2...............       2-6   5T.............  Carrier entity code.
3...............      7-12   6T.............  Report date (YYYYMM).
4...............     13-15   3T.............  Origin airport code.
5...............     16-18   3T.............  Destination airport code.

[[Page 260]]

 
6...............        19   1T.............  Service class code (F, G,
                                               L, N, P or R).
7...............     20-26   7N.............  Total passengers in market
                                               (F, L, N110).
8...............     27-36   10N............  Rev freight in market (F,
                                               G, L, N, P, R217) (in
                                               lbs).
9...............     37-46   10N............  Revenue mail in market (F,
                                               G, L, N, P, R219) (in
                                               lbs).
------------------------------------------------------------------------
T=Text.
N=Numeric.

    (k) Record layouts for microcomputer diskettes. The record layouts 
for diskette are generally identical to those shown for magnetic tape, 
with the exception that delimiters (quotation marks and commas) are used 
to separate fields. It is necessary that the order of fields be 
maintained in all records.
    (1) File characteristics. The files will be created in ASCII 
delimited format, sometimes called Data Interchange Format (DIF). This 
form of recording data provides for variable length fields (data 
elements) which, in the case of alphabetic data, are enclosed by 
quotation marks (``) and separated by a comma (,) or tab. Numeric data 
elements that are recorded without editing symbols are also separated by 
a comma (,) or tab. The data are identified by their juxtaposition 
within a given record. Therefore, it is critical that each record 
contain the exact number of data elements, all of which must be 
juxtapositionally correct. PC software including most spreadsheets, data 
base management programs, and BASIC produce minidisks files in this 
format.
    (2) File naming conventions for diskettes. For microcomputer 
reports, each record type should be contained in a separate DOS file on 
the same physical diskette. The following DOS naming conventions shall 
be followed:
    (i) Record type S = SEGMENT.DAT
    (ii) Record type M = MARKET.DAT

[Doc. No. OST 98-4043, 67 FR 49231, July 30, 2002]



Sec. 298.62  Reporting of financial data.

    (a) Each commuter air carrier and each small certificated air 
carrier shall file BTS Form 298-C, Schedule F-1 ``Report of Financial 
Data.'' This report shall be filed quarterly as set forth in Sec. 
298.60 of this part.
    (b) Each carrier shall indicate in the space provided, its full 
corporate name and the quarter for which the report is filed.
    (c) This schedule shall be used to report financial data for the 
overall or system operations of the carrier. At the option of the 
carrier, the data may be reported in whole dollars by dropping the 
cents. Financial data shall be reported in the following categories:
    (1) Line 1 ``Total Operating Revenues'' shall include gross revenues 
accruing from services ordinarily associated with air transportation and 
air transportation-related services. This category shall include revenue 
derived from scheduled service operations, revenue derived from 
nonscheduled service operations, amounts of compensation paid to the 
carrier under section 41732 of the Statute and other transport-related 
revenue such as in-flight sales, restaurant and food service (ground), 
rental of property or equipment, limousine service, cargo pick-up and 
delivery charges, and fixed-base operations involving the selling or 
servicing of aircraft, flying instructions, charter flights, etc.
    (2) Line 2 ``Total Operating Expenses'' shall include expenses of a 
character usually and ordinarily incurred in the performance of air 
transporation and air transportation services. This category shall 
include expenses incurred: directly in the in-flight operation of 
aircraft; in the holding of aircraft and aircraft personnel in readiness 
for assignment to an in-flight status; on the ground in controlling and 
protecting the in-flight movement of aircraft; landing, handling or 
servicing aircraft on the ground; selling transportation; servicing and 
handling traffic; promoting the development of traffic; and 
administering operations generally. This category shall also include 
expenses which are specifically identifiable with the repair and upkeep 
of property and equipment used in the performance of air transportation, 
all depreciation and amortization expenses applicable to property and 
equipment used in providing air transportation services, all expenses 
associated with the transport-related revenues included on line 1 of 
this schedule, and all other expenses not specifically mentioned which 
are related to transport operations. Interest expense and other 
nonoperating expenses attributable to financing or other activities 
which are extraneous to and not an integral part of air transportation 
or its incidental services shall not be included in this category.

[[Page 261]]

    (3) Line 3 ``Net Income or (Loss)'' shall reflect all operating and 
nonoperating items of profit and loss recognized during the period 
except for prior period adjustments.
    (4) Line 4 ``Passenger Revenues-Scheduled Service'' shall include 
revenue generated from the transportation of passengers between pairs of 
points which are served on a regularly scheduled basis.
    (d) Data reported on this schedule shall be withheld from public 
release for a period of 3 years after the close of the calendar quarter 
to which the report relates.

[ER-1399, 50 FR 20, Jan. 2, 1985, as amended by 53 FR 48528, Dec. 1, 
1988; 60 FR 43528, Aug. 22, 1995; 60 FR 66726, Dec. 26, 1995; 67 FR 
49234, July 30, 2002]



Sec. 298.63  Reporting of aircraft operating expenses and related statistics by small certificated air carriers.

    (a) Each small certificated air carrier shall file BTS Form 298-C, 
Schedule F-2 ``Report of Aircraft Operating Expenses and Related 
Statistics.'' This schedule shall be filed quarterly as prescribed in 
Sec. 298.60. Data reported on this report shall be for the overall or 
system operations of the air carrier.
    (b) Each carrier shall indicate in the space provided its full 
corporate name and the quarter for which the report is filed.
    (c) This schedule shall show the direct and indirect expenses 
incurred in aircraft operations. Direct expense data applicable to each 
aircraft type operated by the carrier shall be reported in separate 
columns of this schedule. Each aircraft type reported shall be 
identified at the head of each column in the space provided for 
``Aircraft Type.'' ``Aircraft Type'' refers to aircraft models such as 
Beech-18, Piper PA-32, etc. Aircraft Type designations are prescribed in 
the Accounting and Reporting Directives, which is available from the 
BTS' Office of Airline Information. In the space provided for ``Aircraft 
Code'' carriers shall insert the three digit code prescribed in the 
Accounting and Reporting Directives for the reported aircraft type. 
(Note: Aircraft of the same type but different cabin configuration may 
be grouped into a single classification; therefore, carriers are not 
required to report the fourth digit of an aircraft code indicating cabin 
configuration.)
    (d) Line 1 Direct aircraft operating expenses shall be reported in 
the following categories:
    (1) Line 2 ``Flying Operations (Less Rental)'' shall be subdivided 
as follows:
    (i) Line 3 ``Pilot and Copilot'' expense shall include pilots' and 
copilots' salaries, and related employee benefits, pensions, payroll 
taxes and personnel expenses.
    (ii) Line 4 ``Aircraft Fuel and Oil'' expense shall include the cost 
of fuel and oil used in flight operations and nonrefundable aircraft 
fuel and oil taxes.
    (iii) Line 5 ``Other'' expenses shall include general (hull) 
insurance, and all other expenses incurred in the in-flight operation of 
aircraft and holding of aircraft and aircraft operational personnel in 
readiness for assignment to an in-flight status, which are not provided 
for otherwise on this schedule.
    (2) Line 6 ``Total Flying Operations (Less Rentals)'' shall equal 
the sum of lines 3, 4 and 5.
    (3) Line 7 ``Maintenance-Flight Equipment'' shall include the cost 
of labor, material and related overhead expended by the carrier to 
maintain flight equipment, general services purchased for flight 
equipment maintenance from associated or other outside companies, and 
provisions for flight equipment overhauls.
    (4) Line 8 ``Depreciation and Rental-Flight Equipment'' expense 
shall include depreciation of flight equipment, amortization of 
capitalized leases for flight equipment, provision for obsolescence and 
deterioration of spare parts, and rental expense of flight equipment.
    (5) Line 9 ``Total Direct Expense'' shall equal the sum of lines 6, 
7 and 8.
    (e) Line 10 Indirect aircraft operating expenses shall be reported 
only in total for all aircraft types and shall be segregated according 
to the following categories:
    (1) Line 11 ``Flight Attendant Expense'' shall include flight 
attendants' salaries, and related employee benefits, pensions, payroll 
taxes and personnel expenses.
    (2) Line 12 ``Traffic Related Expense'' shall include traffic 
solicitor salaries,

[[Page 262]]

traffic commissions, passenger food expense, traffic liability 
insurance, advertising and other promotion and publicity expenses, and 
the fringe benefit expenses related to all salaries in this 
classification.
    (3) Line 13 ``Departure Related (Station) Expense'' shall include 
aircraft and traffic handling salaries, landing fees, clearance, customs 
and duties, related fringe benefit expenses and maintenance and 
depreciation on ground property and equipment.
    (4) Line 14 ``Capacity Related Expense'' shall include salaries and 
fringe benefits for general management personnel, recordkeeping and 
statistical personnel, lawyers and law clerks, and purchasing personnel; 
legal fees and expenses; stationery; printing; uncollectible accounts; 
insurance purchased-general; memberships; corporate and fiscal expenses; 
and all other expenses which cannot be identified or allocated to some 
other specifically identified indirect cost category.
    (f) Line 15 ``Total Indirect Expense'' shall equal the sum of lines 
11, 12, 13 and 14.
    (g) Line 16 ``Total Operating Expense'' shall equal the sum of lines 
9 and 15.
    (h) Line 17 ``Total Gallons of Fuel Issued'' shall include the 
gallons of fuel used in flight operations related to fuel cost reported 
in total and by aircraft type on Line 4.

[ER-1399, 50 FR 20, Jan. 2, 1985, as amended by Docket No. 47939, 57 FR 
40104, Sept. 2, 1992; 60 FR 66726, Dec. 26, 1995; 67 FR 49234, July 30, 
2002]



Sec. 298.65  Requests for extensions of time within which to file reports or for waivers from reporting requirements.

    (a) If circumstances prevent the filing of BTS Form 298-C on or 
before the due date, a written request for an extension may be 
submitted. Except in cases of emergency, the request must be delivered 
to the BTS's Office of Airline Information in writing at least three 
days in advance of the due date. The request must state good and 
sufficient reason to justify the granting of the extension and the date 
when the reports can be filed. If the request is denied, the air carrier 
remains subject to the filing requirements to the same extent as if no 
request for extension of time had been made.
    (b) The Office of Airline Information may waive any reporting 
requirements contained in Sec. 298.61, Sec. 298.62, Sec. 298.63 and 
Sec. 298.64 of this part, upon its own initiative or upon written 
request from any air carrier if the waiver is in the public interest and 
the request demonstrates that:
    (1) Unusual circumstances warrant such a departure;
    (2) A specifically defined alternative procedure or technique will 
result in a substantially equivalent or more accurate portrayal; and
    (3) The application of the alternative procedure will maintain or 
improve uniformity in reporting between air carriers.

[ER-1399, 50 FR 21, Jan. 2, 1985, as amended by Docket No. 47939, 57 FR 
40104, Sept. 2, 1992; 60 FR 66726, Dec. 26, 1995]



Sec. 298.66  Reporting exemption for State collection of data.

    (a) The Office of Airline Information may exempt a commuter air 
carrier from the reporting requirements of Sec. 298.61 of this part if 
a State government collects the information specified in that section 
and provides it to the Department by the dates specified. The data 
provided to the Department in this manner must be at least as reliable 
as if they were collected by the Department directly.
    (b) The Office of Airline Information will provide assistance to any 
State agency interested in participating in this exemption program.

[ER-1399, 50 FR 21, Jan. 2, 1985, as amended by Docket No. 47939, 57 FR 
40104, Sept. 2, 1992; 60 FR 66726, Dec. 26, 1995]



                   Subpart G_Public Disclosure of Data



Sec. 298.70  Public disclosure of data.

    (a) Detailed domestic on-flight market data and nonstop segment data 
except military data shall be made publicly available after processing. 
Domestic data are defined as data from air transportation operations 
from a place in any State of the United States, the

[[Page 263]]

District of Columbia, the Commonwealth of Puerto Rico and the Virgin 
Islands, or a U.S. territory or possession to a place in any State of 
the United States, the District of Columbia, the Commonwealth of Puerto 
Rico and the Virgin Islands, or a U.S. territory or possession. Domestic 
military operations are reported under service codes N or R.
    (b) Detailed international on-flight market and nonstop segment data 
in Schedule T-100 and Schedule T-100(f) reports, except military data, 
shall be publicly available immediately following the Department's 
determination that the database is complete, but no earlier than six 
months after the date of the data. Military operations are reported 
under service codes N or R. Data for on-flight markets and nonstop 
segments involving no U.S. points shall not be made publicly available 
for three years. Industry and carrier summary data may be made public 
before the end of six months or the end of three years, as applicable, 
provided there are three or more carriers in the summary data disclosed. 
The Department may, at any time, publish international summary 
statistics without carrier detail.
    (c) Schedule F-1 ``Report of Financial Data'' shall be withheld from 
public release for a period of 3 years after the close of the calendar 
quarter to which the report relates.
    (d) The Department may release nonstop segment and on-flight market 
detail data by carrier or individual Schedule F-1 ``Report of Financial 
Data'' before the end of the confidentiality period as follows:
    (1) To foreign governments as provided in reciprocal arrangements 
between the foreign country and the U.S. Government for exchange of on-
flight market and/or nonstop segment data submitted by air carriers of 
that foreign country and U.S. carriers serving that foreign country.
    (2) To parties to any proceeding before the Department under Title 
IV of the Federal Aviation Act of 1958, as amended, as required by an 
Administrative Law Judge or other decision-maker of the Department. 
Parties may designate agents or consultants to receive the data in their 
behalf, provided the agents or consultants agree to abide by the 
disclosure restrictions. Any data to which access is granted pursuant to 
this provision may be introduced into evidence, subject to the normal 
rules of admissibility.
    (3) To agencies or other components of the U.S. Government for their 
internal use only.

[Doc. No. OST 98-4043, 67 FR 49234, July 30, 2002]



                          Subpart H_Violations



Sec. 298.80  Enforcement.

    In case of any violation of the provisions of the Statute, or this 
part, or any other rule, regulation, or order issued under the Statute, 
the violator may be subject to a proceeding pursuant to section 46101 of 
the Statute before the Department, or sections 46106 through 46108 of 
the Statute before a U.S. District Court, as the case may be, to compel 
compliance therewith; or to civil penalties pursuant to the provisions 
of section 46301 of the Statute; or, in the case of a willful violation, 
to criminal penalties pursuant to the provisions of section 46316 of the 
Statute; or other lawful sanctions including revocation of operating 
authority.

[ER-929, 40 FR 42855, Sept. 17, 1975, as amended at 60 FR 43528, Aug. 
22, 1995]

[[Page 264]]



                   SUBCHAPTER B_PROCEDURAL REGULATIONS





PART 300_RULES OF CONDUCT IN DOT PROCEEDINGS UNDER THIS CHAPTER--Table of Contents




Sec.
300.0 Applicability.
300.0a Applicability of 49 CFR part 99.
300.1 Judicial standards of practice.
300.2 Prohibited communications.
300.3 Reporting of communications.
300.4 Separation of functions in hearing cases.
300.5 Prohibited conduct.
300.6 Practitioners' standards of conduct.
300.7 Conciseness.
300.8 Gifts and hospitality and other conduct affecting DOT employees.
300.9 Permanent disqualification of employees from matters in which they 
          personally participated before joining DOT or the Civil 
          Aeronautics Board.
300.10 Temporary disqualification of employees from matters in which 
          they had official responsibility before joining DOT.
300.10a Permanent and temporary disqualification of DOT employees.
300.11 Disqualification of Government officers and employees.
300.12 Practice of special Government employees permitted.
300.13 Permanent disqualification of former Civil Aeronautics Board 
          members and employees and DOT employees from matters in which 
          they personally participated.
300.14 Temporary disqualification of former DOT employees from matters 
          formerly under their official responsibility.
300.15 Opinions or rulings by the General Counsel.
300.16 Waivers.
300.17 Disqualification of partners of DOT employees.
300.18 Motions to disqualify DOT employee in review of hearing matters.
300.19 Use of confidential information.
300.20 Violations.

    Authority: 49 U.S.C. subtitle I and chapters 401, 411, 413, 415, 
417, 419, 421, 449, 461, 463, and 465.

    Source: Docket No. 82, 50 FR 2380, Jan. 16, 1985, unless otherwise 
noted.



Sec. 300.0  Applicability.

    The rules of conduct set forth in this part except as otherwise 
provided in this or any other DOT regulation shall govern the conduct of 
the parties and their representatives, and the relationships between the 
Office of the Secretary of Transportation, the Office of the Assistant 
Secretary for Aviation and International Affairs, and the Office of the 
General Counsel, including regular personnel, and officials, special 
Government employees, consultants, or experts under contract to the 
Department of Transportation (DOT) and administrative law judges 
(hereinafter referred to as ``DOT employee(s)'') and all other persons 
in all DOT matters involving aviation economic and enforcement 
proceedings.

[Docket No. 82, 50 FR 2380, Jan. 16, 1985, as amended by Amdt. 1-261, 59 
FR 10061, Mar. 3, 1994; 60 FR 43528, Aug. 22, 1995]



Sec. 300.0a  Applicability of 49 CFR part 99.

    (a) Except as provided in paragraph (b) of this section, each DOT 
employee involved in matters covered by this chapter shall comply with 
the rules on ``Employee Responsibilities and Conduct'' in 49 CFR part 
99.
    (b) The rules in this part shall be construed as being consistent 
with those in 49 CFR part 99. If a rule in this part is more restrictive 
than a rule in 49 CFR part 99, the more restrictive rule shall apply.



Sec. 300.1  Judicial standards of practice.

    Certain of DOT's functions involving aviation economic and 
enforcement proceedings are similar to those of a court, and parties to 
cases before DOT and those who represent such parties are expected--in 
fact and in appearance--to conduct themselves with honor and dignity as 
they would before a court. By the same token, any DOT employee or 
administrative law judge carrying out DOT's quasi-judicial functions and 
any DOT employee making recommendations or advising them are expected to 
conduct themselves with the same fidelity to appropriate standards of 
propriety that characterize a court and its staff. The standing and 
effectiveness of DOT in carrying out its quasi-judicial functions are in 
direct relation to the observance by DOT,

[[Page 265]]

DOT employees, and the parties and attorneys appearing before DOT of the 
highest standards of judicial and professional ethics. The rules of 
conduct set forth in this part are to be interpreted in light of those 
standards.

[Docket No. 82, 50 FR 2380, Jan. 16, 1985, as amended at 60 FR 43528, 
Aug. 22, 1995]



Sec. 300.2  Prohibited communications.

    (a) Basic requirement. Except as provided in paragraphs (c), (d) and 
(e) there shall be no substantive communication in either direction 
between any concerned DOT employee and any interested person outside 
DOT, concerning a public proceeding, until after final disposition of 
the proceeding, other than as provided by Federal statute or published 
DOT rule or order.
    (b) Definitions. For purposes of this part:
    (1) A ``substantive communication'' is any written or oral 
communication relevant to the merits of the proceeding.
    (2) The ``DOT decisionmaker'' is defined in 14 CFR 302.2 and 302.18.
    (3) A ``concerned DOT employee'' is a DOT employee who is or may 
reasonably be expected to be directly involved in a decision which is 
subject to a public proceeding.
    (4) A ``public proceeding'' is one of the following:
    (i) A hearing proceeding (i.e., proceeding conducted on-the record 
after notice and opportunity for an oral evidentiary hearing as provided 
in Sec. Sec. 302.17- 302.38)
    (ii) A rulemaking proceeding involving a hearing as described in 
paragraph (b)(4)(i) of this section or an exemption proceeding covered 
by this chapter. (Other rulemaking proceedings are covered by the ex 
parte communication policies of DOT Order 2100.2.)
    (iii) A tariff filing after DOT has ordered an investigation or a 
complaint has been filed or docketed.
    (iv) A proceeding initiated by DOT show-cause order, after the 
filing in the docket of an identifiable written opposition to the 
order's tentative findings.
    (v) Any other proceeding initiated by a docket filing, other than a 
petition for generally applicable rulemaking, after the filing in the 
docket of an identifiable written opposition to the initiating document.
    (c) General exceptions. Paragraph (a) of this section shall not 
apply to the following:
    (1) Informal communications between legal counsel, including 
discussions about stipulations and other communications considered 
proper in Federal court proceedings.
    (2) Information given to a DOT employee who is participating in a 
hearing case on behalf of an office that is a party, to another DOT 
employee who is reviewing that work, or to his or her supervisors within 
that office.
    (3) Communications made in the course of an investigation to 
determine whether formal enforcement action should be begun.
    (4) Settlement discussions and mediation efforts.
    (5) Information given at the request of a DOT employee acting upon a 
specific direction of DOT, in a case other than a hearing proceeding as 
described in paragraphs (b)(4) (i) and (ii) (a ``nonhearing case''), 
where DOT has decided that emergency conditions exist and this rule 
would otherwise prevent the obtaining of needed information in a timely 
manner.
    (6) Information given at the request of a DOT employee in a tariff 
matter after a complaint is filed but before an investigation is 
ordered.
    (7) Nonhearing cases that are to be decided within 30 days after the 
filing of the initiating document.
    (8) Nonhearing cases arising under 49 U.S.C. 41731-42.
    (9) In nonhearing cases, communications with other Federal agencies 
not exempted by paragraph (e) of this section, provided the agencies 
have not participated as parties in the proceeding by making filings on-
the-record.
    (10) Information given at the request of a DOT career employee in 
the course of investigating or clarifying information filed, or pursuant 
to a waiver granted to an applicant or other interested person, in 
docketed proceedings involving determinations of fitness and/or U.S. 
citizenship only, for that portion of the proceeding that precedes the 
issuance of a show-cause order or

[[Page 266]]

an order instituting a formal proceeding. Motions for such waivers and 
any answers shall be filed in the applicable docket in accordance with 
Sec. 302.11 of the Department's Procedural Regulations (14 CFR 302.11) 
and served upon all parties to the proceeding.
    (d) Status and expedition requests. Paragraph (a) of this section 
shall not apply to oral or written communications asking about the 
status, or requesting expeditious treatment, of a public proceeding. 
However, any request for expeditious treatment should be made in 
accordance with the Rules of Practice, particularly Rule 11, Sec. 
302.11 of this chapter.
    (e) National defense and foreign policy. In nonhearing cases, 
paragraph (a) of this section shall not apply to communications 
concerning national defense or foreign policy matters, including 
international aviation matters. In hearing cases, any communications on 
those subjects that would be barred by paragraph (a) of this section are 
permitted if the communicator's position with respect thereto cannot 
otherwise be fairly presented, but such communications shall not be 
included as part of the record on which decisions must be made.
    (f) Communications not considered. A communication in violation of 
this section shall not be considered part of a record, or included as 
available material, for decision in any proceeding.

[Docket No. 82, 50 FR 2380, Jan. 16, 1985, as amended by Amdt. No. 300-
7, 52 FR 18904, May 20, 1987; 60 FR 10312, Feb. 24, 1995; 60 FR 43528, 
Aug. 22, 1995; 60 FR 43528, Aug. 22, 1995; 65 FR 6456, Feb. 9, 2000]



Sec. 300.3  Reporting of communications.

    (a) General. The following types of substantive communication shall 
be reported as specified in paragraph (b) of this section:
    (1) Any communication in violation of Sec. 300.2(a) of this 
chapter.
    (2) Information given upon determination of an emergency under Sec. 
300.2(c)(5) of this chapter.
    (3) Information given at the request of a DOT employee in a tariff 
matter under Sec. 300.2(c)(6) of this chapter.
    (4) Communications in nonhearing cases to be decided within 30 days 
under Sec. 300.2(c)(7) of this chapter.
    (5) Communications in nonhearing cases arising under 49 U.S.C. 
41731-42, made under Sec. 300.2(c)(8).
    (b) Public filing. (1) A written communication shall be placed onto 
the electronic docket management system (DMS) in the file of the docket 
number corresponding to the proceeding, which shall be available for 
inspection and copying during business hours in Office of Docket 
Operations and Media Management.
    (2) An oral communication shall be summarized by the DOT employee 
receiving it. One copy shall be put into a public file as described in 
paragraph (b) (1) of this section, and another copy shall be mailed to 
the communicator.
    (3) Electronic copies of written communications and oral summaries 
shall be posted to the DOT's electronic docket. Such docketed materials 
may be searched, viewed, and downloaded through the Internet at http://
dms.dot.gov.
    (4) Copies of all filings under this part dealing with 
discontinuances or reductions of air transportation shall be mailed to 
the directly affected local communities, State agencies, and airport 
managers.
    (c) Status and expedition requests. A DOT decisionmaker who receives 
a communication asking about the status or requesting expeditious 
treatment of a public proceeding, other than a communication concerning 
national defense or foreign policy (including international aviation), 
shall either:
    (1) Refer the communicator to Office of Docket Operations and Media 
Management.
    (2) If the DOT decisionmaker responds by advising on the status, put 
a memorandum describing the exchange in the public file as described in 
paragraph (b)(1) of this section.

[Docket No. 82, 50 FR 2380, Jan. 16, 1985, as amended at 60 FR 43528, 
Aug. 22, 1995; Doc. No. OST-2002-12200, 67 FR 30325, May 6, 2002]



Sec. 300.4  Separation of functions in hearing cases.

    (a) This section applies after the initiation of a hearing or 
enforcement case by the Department.
    (b) A DOT employee who is participating in a hearing case on behalf 
of an

[[Page 267]]

office that is a party, another DOT employee who is in fact reviewing 
the position taken, or who has participated in developing the position 
taken in that case, or, in cases involving accusatory or disciplinary 
issues (including all enforcement cases) such employees' supervisors 
within that office, shall have no substantive communication with any DOT 
decisionmaker, administrative law judge in the case, or other DOT 
employee advising them, with respect to that or any factually related 
hearing case, except in accordance with a published DOT rule or order. 
In addition, each bureau or office supervisor of a DOT employee who is 
participating in a hearing case on behalf of that office when it is a 
party shall have no substantive communication with any administrative 
law judge in the case, or DOT employee advising the judge, in that or 
any factually related hearing case, except in accordance with a 
published DOT rule or order. For each hearing case, bureau or office 
heads shall maintain a publicly available record of those employees who 
are participating or are in fact reviewing the position taken, or who 
have participated in developing the position taken in that case.
    (c) In hearing cases involving fares or rates, or applications for a 
certificate or permit under 49 U.S.C. 41102 and 41302, or applications 
by a holder for a change in a certificate or permit, a supervisor who 
would not be permitted to advise the DOT decisionmaker under paragraph 
(a) may advise the DOT decisionmaker in the following manner: The 
supervisor's advice must either be made orally in an open DOT meeting or 
by a memorandum placed in the docket or other public file of such 
matter. Oral advice must be summarized in writing by the supervisor and 
placed in the docket or file of the matter. A copy of such written 
memorandum or summary of oral advice must be served on each party to the 
proceeding within 3 business days after such advice is given to the 
concerned DOT decisionmaker. Each of the parties may comment in writing 
on such advice within 5 business days after service or the summary. In 
no event, however, may a supervisor advise the DOT decisionmaker if he 
or she acted as the office's counsel or witness in the matter.
    (d) In enforcement cases, the Office of the Assistant General 
Counsel for Aviation Enforcement and Proceedings, under the supervision 
of the Deputy General Counsel, will conduct all enforcement proceedings 
and related investigative functions, while the General Counsel will 
advise the DOT decisionmaker in the course of the decisional process. 
The Office of the Assistant General Counsel for Aviation Enforcement and 
Proceedings will report to the Deputy General Counsel. To ensure the 
independence of these functions, this Office and the Deputy General 
Counsel, for the purpose of this section, shall be considered an 
``office'' as that term is used in paragraph (a), separate from the 
General Counsel and the rest of the Office of the General Counsel.

[Docket No. 82, 50 FR 2380, Jan. 16, 1985, as amended at 60 FR 43528, 
Aug. 22, 1995]



Sec. 300.5  Prohibited conduct.

    No person shall: (a) Attempt to influence the judgment of a 
concerned DOT employee by any unlawful means such as deception or the 
payment of money or other consideration; or
    (b) Disrupt or interfere with the fair and orderly disposition of a 
DOT proceeding.



Sec. 300.6  Practitioners' standards of conduct.

    Every person representing a client in matters before DOT in all 
contacts with DOT employees, should:
    (a) Strictly observe the standards of professional conduct;
    (b) Refrain from statements or other actions designed to mislead DOT 
or to cause unwarranted delay;
    (c) Avoid offensive or intemperate behavior;
    (d) Advise all clients to avoid improprieties and to obey the law as 
the attorney believes it to be; and
    (e) Terminate the professional relationship with any client who 
persists in improprieties in proceedings before DOT.



Sec. 300.7  Conciseness.

    Every oral or written statement made in a DOT proceding shall be as

[[Page 268]]

concise as possible. Verbose or redundant presentations may be rejected.



Sec. 300.8  Gifts and hospitality and other conduct affecting DOT employees.

    (a) No person, otherwise than as provided by law for the proper 
discharge of official duty, shall directly or indirectly give, offer, or 
promise anything of value to any DOT employee for or because of any 
official act performed or to be performed by such DOT employee (18 
U.S.C. 201).
    (b) Subject to 49 CFR part 99, it is improper for persons interested 
in the business of DOT to provide hospitality, gifts, entertainment, or 
favors to any DOT employee.
    (c) Persons interested in the business of DOT should familiarize 
themselves with (49 CFR part 99), in order that they shall not encourage 
or cause any violation of the provisions of that part by any DOT 
employee.



Sec. 300.9  Permanent disqualification of employees from matters in which they personally participated before joining DOT or the Civil Aeronautics Board.

    Any DOT employee shall permanently disqualify himself or herself 
from participation in every matter before the Department in which he or 
she previously personally and substantially participated for an 
interested person or entity, including other agencies of the United 
States Government, before joining the DOT or the Civil Aeronautics 
Board. Such disqualification shall be applicable also if a person is 
closely related to is a DOT employee as partner, associate, employer, or 
the like, personally and substantially participated in a matter before 
DOT prior to the employee's employment by the Department or the Civil 
Aeronautics Board and the circumstances were such that the DOT 
employee's subsequent participation in the matter as a DOT employee 
could fairly be said to create the appearance that his or her 
participation would be affected by his or her prior relationship. 
Notwithstanding the foregoing, the disqualification of any DOT employee, 
including any member of a DOT employee's personal staff or a special 
Government employee, whose prior personal and substantial participation 
in a DOT or Civil Aeronautics Board proceeding or whose relationship to 
one who so participated occurred on behalf of another agency of the 
United States Government shall only be applicable with respect to issues 
on which the prior governmental employer took a position in the 
proceeding unless participation could fairly be said to create the 
appearance that his or her participation would be affected by his or her 
prior relationship.



Sec. 300.10  Temporary disqualification of employees from matters in which they had official responsibility before joining DOT.

    Any DOT employee shall temporarily disqualify himself or herself 
from participation in any matter before DOT if he or she represented, 
was associated with or was employed by an interested person or entity 
including other agencies of the United States Government before joining 
DOT, and, although he or she did not personally and substantially 
participate in the matter, the matter was within his or her ``official 
responsibility,'' as that term is defined in Sec. 300.14 of this 
chapter except that the action referred to therein shall be private 
action as well as ``Government'' action. Such disqualification shall be 
applicable also if a person closely related to the DOT employee as 
partner, associate, employer, or the like, who, while not personally and 
substantially participating in the matter, had it within his or her 
``official responsibility'' as that term is defined in Sec. 300.14 of 
this chapter, and modified above, and the circumstances are such that 
the DOT employee's subsequent participation in the matter as a DOT 
employee could fairly be said to create the appearance that his or her 
participation would be affected by his or her prior relationship. 
Notwithstanding the foregoing, the disqualification of any DOT employee 
whose prior ``official responsibility'' or relationship to one with such 
responsibility occurred on behalf of another agency of the United States 
Government shall only be applicable with respect to issues on which the 
prior governmental employer took a position in the proceeding. The 
temporary disqualification shall run for a period of one year

[[Page 269]]

from the date of the termination of the representation, association, or 
employment with the interested person or entity.

[Docket No. 82, 50 FR 2380, Jan. 16, 1985, as amended at 60 FR 43528, 
Aug. 22, 1995]



Sec. 300.10a  Permanent and temporary disqualification of DOT employees.

    The terms of Sec. Sec. 300.9 and 300.10 shall not be construed to 
apply to DOT employees who previously personally and substantially 
participated in matters before the Board, which have become the subject 
of DOT proceedings.

[Docket No. 82, 50 FR 2380, Jan. 16, 1985, as amended at 60 FR 43528, 
Aug. 22, 1995]



Sec. 300.11  Disqualification of Government officers and employees.

    No officer or employee of the Federal Government, other than a 
``special Government employee'' as defined in 18 U.S.C. 202, shall 
represent anyone, otherwise than in the proper discharge of his or her 
official duties, in any DOT proceeding or matter in which the United 
States is a party or has a direct and substantial interest.

(18 U.S.C. 205)



Sec. 300.12  Practice of special Government employees permitted.

    A special Government employee, who qualifies as such under the 
provisions of 18 U.S.C. 202(a), may participate in DOT proceedings only 
to the extent and in the manner specified in 18 U.S.C. 205.



Sec. 300.13  Permanent disqualification of former Civil Aeronautics Board members and employees and DOT employees from matters in which they personally 
          participated.

    No former Board member or employee or DOT employee shall act as 
agent or attorney before DOT for anyone other than the United States in 
connection with any proceeding, application, request for a ruling or 
other determination, contract, claim, controversy, charge, accusation, 
or other particular matter, involving a specific party or parties, in 
which the United States is a party or has a direct and substantial 
interest and in which he or she participated personally and 
substantially through decision, approval, disapproval, recommendation, 
rendering of advice, investigation, or otherwise as a Board member or 
employee or DOT employee.

(18 U.S.C. 207(a))



Sec. 300.14  Temporary disqualification of former DOT employees from matters formerly under their official responsibility.

    Within one year after termination of employment with DOT, no former 
DOT employee shall appear personally before DOT on behalf of any person 
other than the United States in any DOT proceeding or matter in which 
the United States is a party or has a direct and substantial interest 
and which was under his or her official responsibility at any time 
within one year preceding termination of such responsibility. The term 
``official responsibility'' means the direct administrative or operating 
authority, whether intermediate or final, and either exercisable alone 
or with others, and either personally or through subordinates, to 
approve, disapprove, or otherwise direct Government action.

(18 U.S.C. 202(b), 207(b))

[Docket No. 82, 50 FR 2380, Jan. 16, 1985, as amended at 60 FR 43528, 
Aug. 22, 1995]



Sec. 300.15  Opinions or rulings by the General Counsel.

    (a) The General Counsel is authorized to render opinions or rulings 
to the public on the application of the provisions of this part. When 
written request is made for such opinions and rulings, they shall be 
transmitted to DOT and shall be available to the public in the 
Documentary Services Division after any appeal to or review by the 
Secretary has been completed or after the time for review has expired. 
Identifying details shall normally be stricken from copies available to 
the public unless the public interest requires disclosure of such 
details.
    (b) If any person is disqualified from a particular proceeding under 
the provisions of Sec. Sec. 300.9, 300.10, 300.13, 300.14, and 300.17 
of this chapter by a ruling of the General Counsel, or by such person's 
own action, such disqualification shall be memorialized in a writing 
filed

[[Page 270]]

in the appropriate file of the matter by the General Counsel or such 
person.



Sec. 300.16  Waivers.

    (a) A former Board member, Board employee or DOT employee with 
outstanding scientific or technological qualifications who is 
disqualified from acting in a representative capacity under the 
provisions of Sec. 300.13 or Sec. 300.14 of this chapter may 
nevertheless participate in a proceeding in a scientific or 
technological field pursuant to the terms of a certificate issued in 
compliance with the proviso following 18 U.S.C. 207 (a) and (b).
    (b) An employee who believes his or her prior employment 
relationships will not affect the integrity of his or her services may 
request that the prohibition of Sec. 300.9 or Sec. 300.10 of this 
chapter be waived by the appropriate Ethics Counselor under 49 CFR 
99.735-71.



Sec. 300.17  Disqualification of partners of DOT employees.

    No partner of a DOT employee shall act as agent or attorney for 
anyone other than the United States in any DOT proceeding or matter in 
which such employee participates or has participated personally and 
substantially through decision, approval, disapproval, recommendation, 
rendering advice, investigation, or otherwise, or which is the subject 
of his or her official responsibility.



Sec. 300.18  Motions to disqualify DOT employee in review of hearing matters.

    In cases to be determined on an evidentiary record, a party desiring 
that a concerned DOT employee disqualify himself or herself from 
participating in a DOT decision shall file a motion supported by an 
affidavit setting forth the grounds for such disqualification in the 
form and within the periods prescribed in Sec. 302.11 of this chapter. 
Where review of the administrative law judge's decision can be obtained 
only upon the filing of a petition for discretionary review, such 
motions must be filed on or before the date answers are due pursuant to 
Sec. 302.32. In cases where exceptions are filed to recommended, 
initial, or tentative decisions or where the DOT decisionmaker orders 
review of an initial or recommended decision on his or her own 
initiative, such motions must be filed on or before the date briefs are 
due pursuant to Sec. 302.35 or Sec. 302.218, as applicable. Failure to 
file a timely motion will be deemed a waiver of disqualification. 
Applications for leave to file an untimely motion seeking 
disqualification of a concerned DOT employee must be accompanied by an 
affidavit setting forth in detail why the facts relied upon as grounds 
for disqualification were not known and could not have been discovered 
with reasonable diligence within the prescribed time.

[Doc. No. OST-97-2090, 65 FR 6456, Feb. 9, 2000]



Sec. 300.19  Use of confidential information.

    No former CAB member or employee or DOT employee, or any person 
associated with him or her, shall ever use or undertake to use in any 
DOT proceeding or matter any confidential facts or information which 
came into the possession of such Member or employee or to his or her 
attention by reason of his or her employment with the CAB or DOT without 
first applying for and obtaining the consent of the appropriate ethics 
counselor for the use of such facts or information.



Sec. 300.20  Violations.

    (a) DOT may disqualify, and deny temporarily or permanently the 
privilege of appearing or practicing before it in any way to, any person 
who is found by DOT after written notice of charges and hearing to have 
engaged in unethical or improper professional conduct. Any violation of 
this part shall be deemed to be such conduct.
    (b) When appropriate in the public interest, DOT may deny any 
application or other request of a party in a proceeding subject to this 
part where DOT finds after hearing that such party has, in connection 
with any DOT proceeding, violated any of the provisions of this part or 
any of the provisions of Chapter 11 of Title 18 of the United States 
Code. DOT may also condition its further consideration of such party's 
application or other request or the effectiveness of any order granting 
such application or other request upon

[[Page 271]]

such party's first taking such action as DOT may deem necessary or 
appropriate to remedy the violation of this part or Chapter 11 of Title 
18 of the United States Code to prevent or deter any repetition of such 
violation. DOT may in addition issue a cease and desist order against 
any repetition of such or similar misconduct.
    (c) The actions authorized by this section may take place within the 
framework of the matter during or concerning which the violations occur 
or in a separate matter, as the DOT decisionmaker or the presiding 
administrative law judge may direct. A complaint alleging that a 
violation has occurred in the course of a matter shall be filed in the 
docket or appropriate public file of such matter unless such complaint 
is made after DOT's decision of the matter has become final, in which 
event such complaint may be filed pursuant to part 302, subpart D of the 
rules of practice. A violation in the course of a matter which may be 
attributable to or affect the fitness of a party will ordinarily either 
be disposed of within the framework of such matter or be considered 
within the context of any subsequent matter involving the interests of 
such party. Other violations will ordinarily be disposed of in a 
separate proceeding.
    (d) In the case of any violation of the provisions of this part, the 
violator may be subject to civil penalties under the provisions of 49 
U.S.C. 46301. The violator may also be subject to a proceeding brought 
under 49 U.S.C. 46101 before the Department, or sections 46106 through 
46108 of the Statute before a U.S. District Court, as the case may be, 
to compel compliance with civil penalties which have been imposed.

[Docket No. 82, 50 FR 2380, Jan. 16, 1985, as amended at 60 FR 43528, 
Aug. 22, 1995; 65 FR 6456, Feb. 9, 2000]



PART 302_RULES OF PRACTICE IN PROCEEDINGS--Table of Contents




Sec.
302.1 Applicability and description of part.
302.2 Definitions.

                Subpart A_Rules of General Applicability

302.3 Filing of documents.
302.4 General requirements as to documents.
302.5 Amendment of documents.
302.6 Responsive documents.
302.7 Service of documents.
302.8 Computation of time.
302.9 Continuances and extensions of time.
302.10 Parties.
302.11 Motions.
302.12 Objections to public disclosure of information.
302.13 Consolidation of proceedings.
302.14 Petitions for reconsideration.

                         Non-Hearing Proceedings

302.15 Non-hearing procedures.

                         Rulemaking Proceedings

302.16 Petitions for rulemaking.

                  Oral Evidentiary Hearing Proceedings

302.17 Administrative law judges.
302.18 DOT decisionmaker.
302.19 Participation by persons not parties.
302.20 Formal intervention.
302.21 Appearances.
302.22 Prehearing conference.
302.23 Hearing.
302.24 Evidence.
302.25 Subpoenas.
302.26 Depositions.
302.27 Rights of witnesses; attendance fees and mileage.
302.28 Transcripts of hearings.
302.29 Argument before the administrative law judge.
302.30 Briefs to the administrative law judge.
302.31 Initial and recommended decisions; certification of the record.
302.32 Petitions for discretionary review of initial or recommended 
          decisions; review proceedings.
302.33 Tentative decision of the DOT decisionmaker.
302.34 Exceptions to tentative decisions of the DOT decisionmaker.
302.35 Briefs to the DOT decisionmaker.
302.36 Oral argument before the DOT decisionmaker.
302.37 Waiver of procedural steps after hearing.
302.38 Final decision of the DOT decisionmaker.

 Subpart B_Rules Applicable to U.S. Air Carrier Certificate and Foreign 
                Air Carrier Permit Licensing Proceedings

302.201 Applicability.
302.202 Contents of applications.
302.203 Service of documents.
302.204 Responsive documents.
302.205 Economic data and other facts.
302.206 Verification.

[[Page 272]]

                       Disposition of Applications

302.207 Cases to be decided on written submissions.
302.208 Petitions for oral presentation or judge's decision.
302.209 Procedures for deferral of applications.
302.210 Disposition of applications; orders establishing further 
          procedures.
302.211 Procedures in certificate cases involving initial or continuing 
          fitness.
302.212 Procedures in certificate cases involving international routes.
302.213 Procedures in foreign air carrier permit cases.
302.214 Oral evidentiary hearing.
302.215 Briefs to the administrative law judge.
302.216 Administrative law judge's initial or recommended decision.
302.217 Exceptions to administrative law judge's initial or recommended 
          decision.
302.218 Briefs to the DOT decisionmaker.
302.219 Oral argument before the DOT decisionmaker.
302.220 Final decision of the Department.

  Subpart C_Rules Applicable to Exemption and Certain Other Proceedings

302.301 Applicability.
302.302 Filing of applications.
302.303 Contents of applications.
302.304 Service of documents.
302.305 Posting of applications.
302.306 Dismissal or rejection of incomplete applications.
302.307 Answers to applications.
302.308 Replies to answers.
302.309 Requests for hearing.
302.310 Exemptions on the Department's initiative.
302.311 Emergency exemptions.

          Subpart D_Rules Applicable to Enforcement Proceedings

302.401 Applicability.
302.402 Definitions.
302.403 Informal complaints.
302.404 Formal complaints.
302.405 Responsive documents.
302.406 Procedure for responding to formal complaints.
302.407 Commencement of enforcement proceeding.
302.408 Answers and replies.
302.409 Default.
302.410 Consolidation of proceedings.
302.411 Motions to dismiss and for summary judgment.
302.412 Admissions as to facts and documents.
302.413 Evidence of previous violations.
302.414 Prehearing conference.
302.415 Hearing.
302.416 Appearances by persons not parties.
302.417 Settlement of proceedings.
302.418 Motions for immediate suspension of operating authority pendente 
          lite.
302.419 Modification or dissolution of enforcement actions.
302.420 Saving clause.

 Subpart E_Rules Applicable to Proceedings With Respect to Rates, Fares 
               and Charges for Foreign Air Transportation

302.501 Applicability.
302.502 Institution of proceedings.
302.503 Contents and service of petition or complaint.
302.504 Dismissal of petition or complaint.
302.505 Order of investigation.
302.506 Complaints requesting suspension of tariffs; answers to such 
          complaints.
302.507 Computing time for filing complaints.

    Subpart F_Rules Applicable to Proceedings Concerning Airport Fees

302.601 Applicability.
302.602 Complaint by a carrier; request for determination by an airport 
          owner or operator.
302.603 Contents of complaint or request for determination.
302.604 Answers to a complaint or request for determination.
302.605 Replies.
302.606 Review of complaints or requests for determination.
302.607 Decision by administrative law judge.
302.608 Petitions for discretionary review.
302.609 Completion of proceedings.
302.610 Final order.

 Subpart G_Rules Applicable to Mail Rate Proceedings and Mail Contracts

302.701 Applicability.

                       Final Mail Rate Proceedings

302.702 Institution of proceedings.
302.703 Order to show cause or instituting a hearing.
302.704 Objections and answers to order to show cause.
302.705 Further procedures.
302.706 Hearing.

                      Provision for Temporary Rate

302.707 Procedure for fixing temporary mail rates.

                 Informal Mail Rate Conference Procedure

302.708 Invocation of procedure.
302.709 Scope of conferences.
302.710 Participants in conferences.

[[Page 273]]

302.711 Conditions upon participation.
302.712 Information to be requested from an air carrier.
302.713 DOT analysis of data for submission of answers thereto.
302.714 Availability of data to the U.S. Postal Service.
302.715 Post-conference procedure.
302.716 Effect of conference agreements.
302.717 Waiver of participant conditions.

      Processing Contracts for the Carriage of Mail in Foreign Air 
                             Transportation

302.718 Filing.
302.719 Explanation and data supporting the contract.
302.720 Service.
302.721 Complaints.
302.722 Answers to complaints.
302.723 Further procedures.
302.724 Petitions for reconsideration.

Appendix A to Part 302--Index to Rules of Practice

    Authority: 39 U.S.C. 5402; 42 U.S.C., 4321, 49 U.S.C. Subtitle I and 
Chapters 401, 411, 413, 415, 417, 419, 461, 463, 471.

    Source: Docket No. OST-97-2090, 65 FR 6457, Feb. 9, 2000, unless 
otherwise noted.



Sec. 302.1  Applicability and description of part.

    (a) Applicability. This part governs the conduct of all aviation 
economic proceedings before the Department whether instituted by order 
of the Department or by the filing with the Department of an 
application, complaint, petition, motion, or other authorized or 
required document. This part also contains delegations to administrative 
law judges and to the DOT decisionmaker of the Department's function to 
render the agency decision in certain cases and the procedures for 
review of those decisions. This part applies unless otherwise specified 
by order of the Department.
    (b) Description. Subpart A of this part sets forth general rules 
applicable to all types of proceedings. Each of the other subparts of 
this part sets forth special rules applicable to the type of proceedings 
described in the title of the subpart. Therefore, for information as to 
applicable rules, reference should be made to subpart A and to the rules 
in the subpart relating to the particular type of proceeding, if any. In 
addition, reference should be made to Subtitle VII of Title 49 of the 
United States Code (Transportation) (``the Statute''), and to the 
substantive rules, regulations and orders of the Department relating to 
the proceeding. Wherever there is any conflict between one of the 
general rules in subpart A and a special rule in another subpart 
applicable to a particular type of proceeding, the special rule will 
govern.
    (c) Reference to part and method of citing rules. This part may be 
referred to as the ``Rules of Practice''. Each section, and any 
paragraph or subparagraph thereof, may be referred to as a ``Rule''. The 
number of each rule need include only the numbers and letters at the 
right of the decimal point. For example, ``302.7 Service of documents'', 
may be referred to as ``Rule 7''.



Sec. 302.2  Definitions.

    Administrative law judge as used in this part means an 
administrative law judge appointed pursuant to 5 U.S.C. 3105.
    DOT Decisionmaker as used in this part is the official authorized to 
issue final decisions of the Department as set forth in Sec. 302.18. 
This includes the Assistant Secretary for Aviation and International 
Affairs, the senior career official in the Office of the Assistant 
Secretary for Aviation and International Affairs, the Deputy Secretary, 
and the Secretary.
    Hearing case or oral hearing case means any proceeding that the 
Department has determined will be conducted on the record using oral 
evidentiary procedures subject to 5 U.S.C. 556 and 557.
    Non-hearing case means any proceeding not involving oral evidentiary 
procedures.
    Party as used in this part includes the person initiating a 
proceeding, such as an applicant, complainant, or petitioner; any person 
filing an answer to such filing; and any other persons as set forth in 
Sec. 302.10.
    Statute when used in this chapter means Subtitle VII of Title 49 of 
the United States Code (Transportation).



                Subpart A_Rules of General Applicability



Sec. 302.3  Filing of documents.

    (a) Filing address, date of filing, hours. (1) Documents required by 
any section

[[Page 274]]

of this part to be filed with the Department must be filed with 
Department of Transportation Dockets at the Department's offices in 
Washington, DC. Documents may be filed either on paper or by electronic 
means using the process set at the DOT Dockets Management System (DMS) 
internet website.
    (2) Such documents will be deemed to be filed on the date on which 
they are actually received by the Department. Documents must be filed 
between the hours of 9:00 a.m. and 5:00 p.m., eastern standard or 
daylight savings time, whichever is in effect in the District of 
Columbia at the time, Monday to Friday, inclusive, except on legal 
holidays. Electronic filings may be made at any time under the process 
set by the Department. Electronic filings that are received after the 
specified Dockets Facility hours shall be deemed to be constructively 
received on the next Dockets Facility business day.
    (b) Formal specifications of documents. (1) Documents filed under 
this part must be on white paper not larger than 8\1/2\ by 11 inches, 
including any tables, charts and other documents that may be included. 
Ink must be black to provide substantial contrast for scanning and 
photographic reproduction. Text must be double-spaced (except for 
footnotes and long quotations which may be single-spaced) using type not 
smaller than 12 point. The left margin must be at least 1\1/2\ inches; 
all other margins must be at least 1 inch. The title page and first page 
must bear a clear date and all subsequent pages must bear a page number 
and abbreviated heading. In order to facilitate automated processing in 
document sheet feeders, documents of more than one page should be held 
together with removable metal clips or similar retainers. Original 
documents may not be bound in any form or include tabs, except in cases 
assigned by order to an Administrative Law Judge for hearing, in which 
case the filing requirements will be set by order. Section 302.35 
contains additional requirements as to the contents and style of briefs.
    (2) Papers may be reproduced by any duplicating process, provided 
all copies are clear and legible. Appropriate notes or other indications 
must be used, so that the existence of any matters shown in color on the 
original will be accurately indicated on all copies.
    (c) Number of copies. Unless otherwise specified, an executed 
original, along with the number of true copies set forth below for each 
type of proceeding, must be filed with Department of Transportation 
Dockets. The copies filed need not be signed, but the name of the person 
signing the original document, as distinguished from the firm or 
organization he or she represents, must also be typed or printed on all 
copies below the space provided for signature. Electronic filers need 
only submit one copy of the document, which must conform to the 
submission requirements given in the electronic filing instructions at 
the specified DOT DMS internet website and in this part, as applicable.

------------------------------------------------------------------------
                                                                 Number
                                                               of copies
------------------------------------------------------------------------
Airport Fees.................................................          9
Agreements:
    International Air Transport Association (IATA)...........          6
    Other (under 49 U.S.C. 41309)............................          9
Complaints:
    Enforcement..............................................          5
    Mail Contracts...........................................          4
    Rates, Fares and Charges in Foreign Air Transportation...          6
    Unfair Practices in Foreign Air Transportation...........          7
Employee Protection Program (14 CFR 314).....................          7
Exemptions:
    Computer Reservations Systems (14 CFR 255)...............          8
    Slot Exemptions (under 49 U.S.C. 41714)..................          7
    Tariffs (under 49 U.S.C. Chapter 415 or 14 CFR 221)......          5
    Other (under 49 U.S.C. 40109)............................          7
Foreign Air Carrier Permits/Exemptions.......................          7
International Authority for U.S. Air Carriers (certificates,           7
 exemptions, allocation of limited frequencies, designations,
 or charters)................................................
Mail Rate Proceedings........................................          4
Name Change/Trade Name Registrations.........................          4
Suspension of Service (14 CFR 323)...........................          4
Tariff Justifications to exceed Standard International Fare            6
 Level.......................................................
U.S. Air Carrier Certificates (involving Initial or                    6
 Continuing Fitness).........................................
Other matters................................................          3
------------------------------------------------------------------------

    (d) Prohibition and dismissal of certain documents. (1) No document 
that is subject to the general requirements of this subpart concerning 
form, filing, subscription, service or similar matters will be accepted 
for filing by the Department, and will not be physically incorporated in 
the docket of the proceeding, unless:

[[Page 275]]

    (i) Such document and its filing by the person submitting it have 
been expressly authorized or required in the Statute, any other law, 
this part, other Department regulations, or any order, notice or other 
document issued by the DOT decisionmaker, the Chief Administrative Law 
Judge or an administrative law judge assigned to the proceeding, and
    (ii) Such document complies with each of the requirements of this 
paragraph and 302.7, and for those electronically filed, the 
requirements specified at the DOT DMS internet website, and is submitted 
as a formal application, complaint, petition, motion, answer, pleading, 
or similar paper rather than as a letter, telegram, or other informal 
written communication; Provided, however, That for good cause shown, 
pleadings of any public body or civic organization or comments 
concerning tariff agreements that have not been docketed, may be 
submitted in the form of a letter.
    (2) If any document initiating, or filed in, a proceeding is not in 
substantial conformity with the applicable rules or regulations of the 
Department as to the contents thereof, or is otherwise insufficient, the 
Department, on its own initiative, or on motion of any party, may 
reject, strike or dismiss such document, or require its amendment.
    (e) Official docket copy. With respect to all documents filed under 
this part, the electronic record produced by the Department shall 
thereafter be the official docket copy of the document and any 
subsequent copies generated by the Department's electronic records 
system will be usable for admission as record copies in any proceeding 
before the Department.
    (f) Retention of documents by the Department. All documents filed 
with or presented to the Department Dockets will be retained in the 
permanent docket of the Department of Transportation.



Sec. 302.4  General requirements as to documents.

    (a) Contents. (1) In case there is no rule, regulation, or order of 
the Department that prescribes the contents of a formal application, 
petition, complaint, motion or other authorized or required document, 
such document shall contain a proper identification of the parties 
concerned, a concise but complete statement of the facts relied upon and 
the relief sought, and, where required, such document shall be 
accompanied by an Energy Statement, in conformity with the provisions of 
part 313 of this chapter.
    (2)(i) Each document must include with or provide on its first page:
    (A) The docket title and subject;
    (B) The relevant operating administration before which the 
application or request is filed;
    (C) The identity of the filer and its filing agent, if applicable;
    (D) The name and mailing address of the designated agent for service 
of any documents filed in the proceeding, along with the telephone and 
facsimile numbers and, if available, electronic mail address of that 
person; and
    (E) The title of the specific action being requested.
    (ii) Department of Transportation Dockets has an Expedited 
Processing Sheet that filers can use to assist in preparing this index 
for submission of paper documents, and an electronic registration for 
electronic filing at the DOT DMS internet website.
    (3) All documents filed under this part consisting of twenty (20) or 
more pages must contain a subject index of the matter in such document, 
with page references.
    (b) Verification: The following certification shall be included with 
every pleading filed under this part: ``Pursuant to Title 18 United 
States Code Section 1001, I [the individual signing the pleading, who 
shall be a principal owner, senior officer, or internal counsel of the 
pleader], in my individual capacity and as the authorized representative 
of the pleader, have not in any manner knowingly and willfully 
falsified, concealed or failed to disclose 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 pleading. I understand that an 
individual who is found to have violated the provisions of 18 U.S.C. 
section 1001 shall be fined or imprisoned not more than five

[[Page 276]]

years, or both.'' In addition, electronic subscription requirements 
shall be those specified at the DOT DMS internet website.



Sec. 302.5  Amendment of documents.

    (a) An application may be amended prior to the filing of answers 
thereto, or, if no answer is filed, prior to the issuance of an order 
establishing further procedures, disposing of the application, or 
setting the case for hearing. Thereafter, applications may be amended 
only if leave is granted pursuant to the procedures set forth in Sec. 
302.11.
    (b) Except as otherwise provided, if properly amended, a document 
and any statutory deadline shall be made effective as of the date of 
original filing but the time prescribed for the filing of an answer or 
any further responsive document directed towards the amended document 
shall be computed from the date of the filing of the amendment.



Sec. 302.6  Responsive documents.

    (a) Answers. Answers to applications, complaints, petitions, motions 
or other documents or orders instituting proceedings may be filed by any 
person. In hearing cases, answers may be filed by any party to such 
proceedings or any person who has a petition for intervention pending. 
Except as otherwise provided, answers are not required.
    (b) Further responsive documents. Except as otherwise provided, a 
reply to an answer, reply to a reply, or any further responsive document 
is not authorized.
    (c) Motions for leave to file otherwise unauthorized documents. (1) 
The Department will accept otherwise unauthorized documents for filing 
only if leave has been obtained from the DOT decisionmaker or, if 
applicable, the administrative law judge, on written motion and for good 
cause shown.
    (2) Such motions shall contain a concise statement of the matters 
relied upon as good cause and shall be attached to the pleading or other 
document for which leave to file is sought, or the written motion may be 
incorporated into the otherwise unauthorized document for which 
admission is sought. In such event, the document filed shall be titled 
to describe both the motion and the underlying documents.
    (3) Where unauthorized responsive documents are not permitted, all 
new matter contained in an answer filed pursuant to paragraph (a) of 
this section shall be deemed controverted.
    (d) Time for filing. Except as otherwise provided, an answer, 
motion, or other further responsive document shall be filed within seven 
(7) days after service of any document, order, or ruling to which the 
proposed filing is responsive and must be served on all parties to the 
proceeding.



Sec. 302.7  Service of documents.

    (a) Who makes service--(1) The Department. Formal complaints, 
notices, orders, and similar documents issued by the Department will be 
served by the Department upon all parties to the proceeding.
    (2) The parties. Answers, petitions, motions, briefs, exceptions, 
notices, protests, or memoranda, or any other documents filed by any 
party or other person with the Department shall be served by such party 
or other person upon all parties to the proceeding in which it is filed; 
including, where applicable, all persons who have petitioned for 
intervention in, or consolidation of applications with, such proceeding. 
Proof of service shall accompany all documents when they are filed. The 
Department may require additional service of any document(s).
    (b) How service may be made. Service may be made by first class 
mail, express mail, priority mail, registered or certified mail, 
facsimile transmission, personal delivery, or by electronic mail. The 
Department may prescribe other means of service by order or notice. The 
means of service selected must be done in such manner so as to have the 
same attributes as section 46103 of the Statute, which provides for 
service of notices and processes in a proceeding by personal service or 
registered or certified mail.
    (c) Who may be served. Service upon a party or person may be made 
upon an individual, or upon a member of a partnership or firm to be 
served, or upon the president or other officer of the corporation, 
company, firm, or association to be served, or upon the assignee

[[Page 277]]

or legal successor of any of the foregoing, or upon any attorney of 
record for the party, or upon the agent designated by an air carrier or 
foreign air carrier under section 46103 of the Statute, but it shall be 
served upon a person designated by a party to receive service of 
documents in a particular proceeding in accordance with Sec. 
302.4(a)(2)(iv) once a proceeding has been commenced.
    (d) Where service may be made. Service shall be made at the 
principal place of business of the party to be served, or at his or her 
usual residence if he or she is an individual, or at the office of the 
party's attorney of record, or at the office or usual residence of the 
agent designated by an air carrier or foreign air carrier under section 
46103 of the Statute, or at the post office or electronic address or 
facsimile number stated for a person designated to receive service 
pursuant to Sec. 302.4(a)(2)(iv).
    (e) Proof of service. Proof of service of any document shall consist 
of one of the following:
    (1) A certificate of mailing executed by the person mailing the 
document.
    (2) A certificate of successful transmission executed by the person 
transmitting the document by facsimile or electronic mail, listing the 
facsimile numbers or electronic mail address to which the document was 
sent, and stating that no indication was received that any transmission 
had failed. In the event of an electronic transmission failure, any 
other authorized means of service may be substituted and the appropriate 
proof of service provided.
    (f) Date of service. The date of service by post office or 
electronic mail is the date of mailing. Whenever proof of service by 
personal delivery or facsimile transmission is made, the date of such 
delivery or facsimile transmission shall be the date of service.
    (g) Freely Associated State Proceedings. In any proceeding directly 
involving air transportation to the Federated States of Micronesia, the 
Marshall Islands, or Palau, the Department and any party or participant 
in the proceeding shall serve all documents on the President and the 
designated authorities of the government(s) involved. This requirement 
shall apply to all proceedings where service is otherwise required, and 
shall be in addition to any other service required by this chapter.



Sec. 302.8  Computation of time.

    In computing any period of time prescribed or allowed by this part, 
by notice, order or regulation or by any applicable statute, the day of 
the act, event, or default after which the designated period of time 
begins to run is not to be included. The last day of the period so 
computed is to be included, unless it is a Saturday, Sunday, or legal 
holiday for the Department, in which event the period runs until the end 
of the next day that is neither a Saturday, Sunday, nor holiday. When 
the period of time prescribed is seven (7) days or fewer, intermediate 
Saturdays, Sundays, and holidays shall be excluded in the computation, 
unless otherwise specified by the DOT decisionmaker or the 
administrative law judge assigned to the proceeding, as the case may be.



Sec. 302.9  Continuances and extensions of time.

    (a) Whenever a party has the right or obligation to take action 
within a period prescribed by this part, by a notice given thereunder, 
or by an order or regulation, the DOT decisionmaker or the 
administrative law judge assigned to the proceeding, as appropriate, 
may:
    (1) Before the expiration of the prescribed period, with or without 
notice, extend such period, or
    (2) Upon motion, permit the act to be done after the expiration of 
the specified period, where good cause for the failure to act on time is 
clearly shown.
    (b) Except where an administrative law judge has been assigned to a 
proceeding, requests for continuance or extensions of time, as described 
in paragraph (a) of this section, shall be directed to the DOT 
decisionmaker. Requests for continuances and extensions of time may be 
directed to the Chief Administrative Law Judge in the absence of the 
administrative law judge assigned to the proceeding.



Sec. 302.10  Parties.

    (a) In addition to the persons set forth in Sec. 302.2, in hearing 
cases, parties

[[Page 278]]

shall include Department staff designated to participate in the 
proceeding and any persons authorized to intervene or granted permission 
to participate in accordance with Sec. Sec. 302.19 and 302.20. In any 
proceeding directly involving air transportation to the Federated States 
of Micronesia, the Marshall Islands or Palau, these governments or their 
designated authorities shall be a party.
    (b) Upon motion and for good cause shown, the Department may order a 
substitution of parties, except that in case of the death of a party, 
substitution may be ordered without the filing of a motion.
    (c) An association composed entirely or in part of air carriers may 
participate in any proceedings of the Department to which the 
Department's procedural regulations apply if the association represents 
members that are identified in any documents filed with the Department, 
and that have specifically authorized the positions taken by the 
association in that proceeding. The specific authorizations may be 
informal and evidence of them shall be provided only upon request of the 
Department. Upon motion of any interested person or upon its own 
initiative, the Department may issue an order requiring an association 
to withdraw from a case on the grounds of significant divergence of 
interest or position within the association.



Sec. 302.11  Motions.

    (a) Generally. An application to the DOT decisionmaker or an 
administrative law judge for an order or ruling not otherwise 
specifically provided for in this part shall be by motion. If an 
administrative law judge is assigned to a proceeding and before the 
issuance of a recommended or initial decision or the certification of 
the record to the DOT decisionmaker, all motions shall be addressed to 
the administrative law judge. At all other times, motions shall be 
addressed to the DOT decisionmaker. All motions shall be made at an 
appropriate time depending upon the nature thereof and the relief 
requested therein. This paragraph should not be construed as authorizing 
motions in the nature of petitions for reconsideration.
    (b) Form and contents. Unless made during a hearing, motions shall 
be made in writing in conformity with Sec. Sec. 302.3 and 302.4, shall 
state their grounds and the relief or order sought, and shall be 
accompanied by any affidavits or other evidence desired to be relied 
upon. Motions made during hearings, answers to them, and rulings on 
them, may be made orally on the record unless the administrative law 
judge directs otherwise. Written motions shall be filed as separate 
documents, and shall not be incorporated in any other documents, except 
where incorporation of a motion in another document is specifically 
authorized by the Department, or where a document is filed that requests 
alternative forms of relief and one of these alternative requests is 
properly to be made by motion. In these instances the document filed 
shall be appropriately titled and identified to indicate that it 
incorporates a motion; otherwise, the motion will be disregarded.
    (c) Answers to motions. Within seven (7) days after a motion is 
served, or such other period as the DOT decisionmaker or the 
administrative law judge may fix, any party to the proceeding may file 
an answer in support of or in opposition to the motion, accompanied by 
such affidavits or other evidence as it desires to rely upon. Except as 
otherwise provided, no reply to an answer, reply to a reply, or any 
further responsive document shall be filed.
    (d) Oral arguments; briefs. No oral argument will be heard on 
motions unless the DOT decisionmaker or the administrative law judge 
otherwise directs. Written memoranda or briefs may be filed with motions 
or answers to motions, stating the points and authorities relied upon in 
support of the position taken.
    (e) Requests for expedition. Any interested person may by motion 
request expedition of any proceeding or file an answer in support of or 
in opposition to such motions.
    (f) Effect of pendency of motions. The filing or pendency of a 
motion shall not automatically alter or extend the time to take action 
fixed by this part or by any order of the Department or of an 
administrative law judge (or any extension granted thereunder).

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    (g) Disposition of motions. The DOT decisionmaker shall pass upon 
all motions properly submitted to him or her for decision. The 
administrative law judge shall pass upon all motions properly addressed 
to him or her, except that, if the administrative law judge finds that a 
prompt decision by the DOT decisionmaker on a motion is essential to the 
proper conduct of the proceeding, the administrative law judge may refer 
such motion to the DOT decisionmaker for decision.
    (h) Appeals to the DOT decisionmaker from rulings of administrative 
law judges. Rulings of administrative law judges on motions may not be 
appealed to the DOT decisionmaker prior to his or her consideration of 
the entire proceeding except in extraordinary circumstances and with the 
consent of the administrative law judge. An appeal shall be disallowed 
unless the administrative law judge finds, either on the record or in 
writing, that the allowance of such an appeal is necessary to prevent 
substantial detriment to the public interest or undue prejudice to any 
party. If an appeal is allowed, any party may file a brief with the DOT 
decisionmaker within such period as the administrative law judge 
directs. No oral argument will be heard unless the DOT decisionmaker 
directs otherwise. The rulings of the administrative law judge on a 
motion may be reviewed by the DOT decisionmaker in connection with his 
or her final action in the proceeding or at any other appropriate time 
irrespective of the filing of an appeal or any action taken on it.



Sec. 302.12  Objections to public disclosure of information.

    (a) Generally. Part 7 of the Office of the Secretary regulations, 
Public Availability of Information, governs the availability of records 
and documents of the Department to the public. (49 CFR 7.1 et seq.)
    (b) Information contained in written documents. Any person who 
objects to the public disclosure of any information filed in any 
proceeding, or pursuant to the provisions of the Statute, or any 
Department rule, regulation, or order, shall segregate, or request the 
segregation of, such information into a separate submission and shall 
file it separately in a sealed envelope, bearing the caption of the 
enclosed submission, and the notation ``Confidential Treatment Requested 
Under Sec. 302.12.'' At the time of filing such submission (or, when 
the objection is made by a person who is not the filer, within five (5) 
days after the filing of such submission), the objecting party shall 
file a motion to withhold the information from public disclosure, in 
accordance with the procedure outlined in paragraph (d) or (f) of this 
section, as appropriate. Notwithstanding any other provision of this 
section, copies of the filed submission and of the motion need not be 
served upon any other party unless so ordered by the Department.
    (c) Information contained in oral testimony. Any person who objects 
to the public disclosure of any information sought to be elicited from a 
witness or deponent on oral examination shall, before such information 
is disclosed, make his or her objection known. Upon such objection duly 
made, the witness or deponent shall be compelled to disclose such 
information only in the presence of the administrative law judge or the 
person before whom the deposition is being taken, as the case may be, 
the official stenographer and such attorneys for and representative of 
each party as the administrative law judge or the person before whom the 
deposition is being taken shall designate, and after all present have 
been sworn to secrecy. The transcript of testimony containing such 
information shall be segregated and filed in a sealed envelope, bearing 
the title and docket number of the proceeding, and the notation 
``Confidential Treatment Requested Under Sec. 302.12 Testimony Given by 
(name of witness or deponent).'' Within five (5) days after such 
testimony is given, the objecting person shall file a motion in 
accordance with the procedure outlined in paragraph (d) of this section, 
to withhold the information from public disclosure. Notwithstanding any 
other provision of this section, copies of the segregated portion of the 
transcript and of the motion need not be served upon any other party 
unless so ordered by the Department.

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    (d) Form of motion. Motions to withhold from public disclosure 
information covered by paragraphs (b) and (c) of this section shall be 
filed with the Department in accordance with the following procedure:
    (1) The motion shall include:
    (i) An index listing the information or document sought to be 
withheld by an identifying number, and including its title, description 
and number of pages, and, if relevant, the specific location within a 
document;
    (ii) A statement explaining how and why the information falls within 
one or more of the exemptions from the Freedom of Information Act (5 
U.S.C. 552(b)(1)-(9)); and
    (iii) A statement explaining how and why public disclosure of the 
information would adversely affect the interests of the objecting 
persons and is not required in the interest of the public.
    (2) Such motion shall be filed with the person conducting the 
proceeding, or with the person with whom said application, report, or 
submission is required to be filed. Such motion will be denied when the 
complete justification required by this paragraph is not provided.
    (3) During the pendency of such motion, the ruling official may, by 
notice or order, allow limited disclosure to parties' representatives, 
for purposes of participating in the proceeding, upon submission by them 
of affidavits swearing to protect the confidentiality of the documents 
at issue.
    (e) Conditions of disclosure. The order, notice or other action of 
the Department containing its ruling upon each such motion will specify 
the extent to which, and the conditions upon which, the information may 
be disclosed to the parties and to the public, which ruling shall become 
effective upon the date stated therein, unless, within five (5) days 
after the date of the entry of the Department's order with respect 
thereto, a petition is filed by the objecting person requesting 
reconsideration by the Department, or a written statement is filed 
indicating that the objecting person in good faith intends to seek 
judicial review of the Department's order.
    (f) Objection by Government departments or representative thereof. 
In the case of objection to the public disclosure of any information 
filed by or elicited from any United States Government department or 
agency, or representative thereof, under paragraph (b) or (c) of this 
section, the department or agency making such objection shall be 
exempted from the provisions of paragraphs (b), (c), and (d) of this 
section insofar as said paragraphs require the filing of a written 
objection to such disclosure. However, any department, agency, or 
representative thereof may, if it so desires, file a memorandum setting 
forth the reasons why it is claimed that a public disclosure of the 
information should not be made. If such a memorandum is submitted, it 
shall be filed and handled as is provided by this section in the case of 
a motion to withhold information from public disclosure.



Sec. 302.13  Consolidation of proceedings.

    (a) Initiation of consolidations. The Department, upon its own 
initiative or upon motion, may consolidate for hearing or for other 
purposes or may contemporaneously consider two or more proceedings that 
involve substantially the same parties, or issues that are the same or 
closely related, if it finds that such consolidation or contemporaneous 
consideration will be conducive to the proper dispatch of its business 
and to the ends of justice and will not unduly delay the proceedings. 
Although the Department may, in any particular case, consolidate or 
contemporaneously consider two or more proceedings on its own motion, 
the burden of seeking consolidation or contemporaneous consideration of 
a particular application shall rest upon the applicant and the 
Department will not undertake to search its docket for all applications 
that might be consolidated or contemporaneously considered.
    (b) Time for filing. Unless the Department has provided otherwise in 
a particular proceeding, a motion to consolidate or contemporaneously 
consider an application with any other application shall be filed within 
21 days of the original application in the case of international route 
awards under section 41102 of the Statute (see Sec. 302.212), or, where 
a proceeding has

[[Page 281]]

been set for hearing before an administrative law judge, not later than 
the prehearing conference in the proceeding with which consolidation or 
contemporaneous consideration is requested. If made at such conference, 
the motion may be oral. All motions for consolidation or consideration 
of issues that enlarge, expand, or otherwise change the nature of the 
proceeding shall be addressed to the DOT decisionmaker, unless made 
orally at the prehearing conference, in which event the presiding 
administrative law judge shall present such motion to the DOT 
decisionmaker for his or her decision. A motion that is not timely 
filed, or that does not relate to an application pending at such time, 
shall be dismissed unless the movant shall clearly show good cause for 
failure to file such motion or application on time.
    (c) Answer. If a motion to consolidate two or more proceedings is 
filed with the Department, any party to any of such proceedings, or any 
person who has a petition for intervention pending, may file an answer 
to such motion within such period as the DOT decisionmaker may permit. 
The administrative law judge may require that answers to such motions be 
stated orally at the prehearing conference in the proceeding with which 
the consolidation is proposed.



Sec. 302.14  Petitions for reconsideration.

    (a) Department orders subject to reconsideration; time for filing. 
(1) Unless an order or a rule of the Department specifically provides 
otherwise:
    (i) Any interested person may file a petition for reconsideration of 
any interlocutory order issued by the Department that institutes a 
proceeding; and
    (ii) Any party to a proceeding may file a petition for 
reconsideration, rehearing, or reargument of final orders issued by the 
Department (See Sec. 302.38), or an interlocutory order that defines 
the scope and issues of a proceeding or suspends a provision of a tariff 
on file with the Department.
    (2) Unless otherwise provided, petitions for reconsideration shall 
be filed, in the case of a final order, within twenty (20) days after 
service thereof, and, in the case of an interlocutory order, within ten 
(10) days after service. However, neither the filing nor the granting of 
such a petition shall operate as a stay of such final or interlocutory 
order unless specifically so ordered by the DOT decisionmaker. Within 
ten (10) days after a petition for reconsideration, rehearing, or 
reargument is filed, any party to the proceeding may file an answer in 
support of or in opposition. Motions for extension of time to file a 
petition or answer, and for leave to file a petition or answer after the 
time for the filing has expired, will not be granted except on a showing 
of unusual and exceptional circumstances, constituting good cause for 
the movant's inability to meet the established procedural dates.
    (b) Contents of petition. A petition for reconsideration, rehearing, 
or reargument shall state, briefly and specifically, the matters of 
record alleged to have been erroneously decided, the ground relied upon, 
and the relief sought. If a decision by the Secretary or Deputy 
Secretary is requested, the petition should describe in detail the 
reasons for such request and specify any important national 
transportation policy issues that are presented. If the petition is 
based, in whole or in part, on allegations as to the consequences that 
would result from the final order, the basis of such allegations shall 
be set forth. If the petition is based, in whole or in part, on new 
matter, such new matter shall be set forth, accompanied by a statement 
to the effect that petitioner, with due diligence, could not have known 
or discovered such new matter prior to the date the case was submitted 
for decision. Unless otherwise directed by the DOT decisionmaker upon a 
showing of unusual or exceptional circumstances, petitions for 
reconsideration, rehearing or reargument or answers thereto that exceed 
twenty-five (25) pages (including appendices) in length shall not be 
accepted for filing by Department of Transportation Dockets.
    (c) Successive petitions. A successive petition for rehearing, 
reargument, reconsideration filed by the same party or person, and upon 
substantially the same ground as a former petition that has been 
considered or denied will not be entertained.

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                         Non-Hearing Proceedings



Sec. 302.15  Non-hearing procedures.

    In cases where oral evidentiary hearing procedures will not be used, 
Sec. 302.17 through Sec. 302.37, relating to hearing procedures, shall 
not be applicable except to the extent that the DOT decisionmaker shall 
determine that the application of some or all of such rules in the 
particular case will be conducive to the proper dispatch of its business 
and to the public interest. References in these and other sections of 
this part to powers or actions by administrative law judges shall not 
apply.

                         Rulemaking Proceedings



Sec. 302.16  Petitions for rulemaking.

    Any interested person may petition the Department for the issuance, 
amendment, modification, or repeal of any regulation, subject to the 
provisions of part 5, Rulemaking Procedures, of the Office of the 
Secretary regulations (49 CFR 5.1 et seq.).

                  Oral Evidentiary Hearing Proceedings



Sec. 302.17  Administrative law judges.

    (a) Powers and delegation of authority. (1) An administrative law 
judge shall have the following powers, in addition to any others 
specified in this part:
    (i) To give notice concerning and to hold hearings;
    (ii) To administer oaths and affirmations;
    (iii) To examine witnesses;
    (iv) To issue subpoenas and to take or cause depositions to be 
taken;
    (v) To rule upon offers of proof and to receive relevant evidence;
    (vi) To regulate the course and conduct of the hearing;
    (vii) To hold conferences before or during the hearing for the 
settlement or simplification of issues;
    (viii) To rule on motions and to dispose of procedural requests or 
similar matters;
    (ix) To make initial or recommended decisions as provided in Sec. 
302.31;
    (x) To take any other action authorized by this part or by the 
Statute.
    (2) The administrative law judge shall have the power to take any 
other action authorized by part 385 of this chapter or by the 
Administrative Procedure Act.
    (3) The administrative law judge assigned to a particular case is 
delegated the DOT decisionmaker's function of making the agency decision 
on the substantive and procedural issues remaining for disposition at 
the close of the hearing in such case, except that this delegation does 
not apply in cases where the record is certified to the DOT 
decisionmaker, with or without an initial or recommended decision by the 
administrative law judge, or in cases requiring Presidential approval 
under section 41307 of the Statute. This delegation does not apply to 
the review of rulings by the administrative law judge on interlocutory 
matters that have been appealed to the DOT decisionmaker in accordance 
with the requirements of Sec. 302.11.
    (4) The administrative law judge's authority in each case will 
terminate either upon the certification of the record in the proceeding 
to the DOT decisionmaker, or upon the issuance of an initial or 
recommended decision, or when he or she shall have withdrawn from the 
case upon considering himself or herself disqualified.
    (b) Disqualification. An administrative law judge shall withdraw 
from the case if at any time he or she deems himself or herself 
disqualified. If, prior to the initial or recommended decision in the 
case, there is filed with the administrative law judge, in good faith, 
an affidavit of personal bias or disqualification with substantiating 
facts and the administrative law judge does not withdraw, the DOT 
decisionmaker shall determine the matter, if properly presented by 
exception or brief, as a part of the record and decision in the case. 
The DOT decisionmaker shall not otherwise consider any claim of bias or 
disqualification. The DOT decisionmaker, in his or her discretion, may 
order a hearing on a charge of bias or disqualification.



Sec. 302.18  DOT decisionmaker.

    (a) Assistant Secretary for Aviation and International Affairs. 
Except as provided in paragraphs (b) and (c) of this section, the 
Assistant Secretary for Aviation and International Affairs is the

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DOT decisionmaker. The Assistant Secretary shall have all of the powers 
set forth in Sec. 302.17(a)(1) and those additional powers delegated by 
the Secretary. The Assistant Secretary may delegate this authority in 
appropriate non-hearing cases to subordinate officials.
    (b) Oral hearing cases assigned to the senior career official. 
Carrier selection proceedings for international route authority that are 
set for oral hearing and such other oral hearing cases as the Secretary 
deems appropriate will be assigned to the senior career official in the 
Office of the Assistant Secretary for Aviation and International 
Affairs, who will serve as the DOT decisionmaker. In all such cases, the 
administrative law judge shall render a recommended decision to the 
senior career official, who shall have all of the powers set forth in 
Sec. 302.17(a)(1) and those additional powers delegated by the 
Secretary.
    (1) Decisions of the senior career official are subject to review 
by, and at the discretion of, the Assistant Secretary for Aviation and 
International Affairs. Petitions for discretionary review of decisions 
of the senior career official will not be entertained. A notice of 
review by the Assistant Secretary will establish the procedures for 
review. Unless a notice of review is issued, the decision of the senior 
career official will be issued as a final decision of the Department and 
will be served fourteen (14) days after it is adopted by the senior 
career official.
    (2) Final decisions of the senior career official may be reviewed 
upon a petition for reconsideration filed pursuant to Sec. 302.14. Such 
a petition shall state clearly the basis for requesting reconsideration 
and shall specify any questions of national transportation policy that 
may be involved. The Assistant Secretary will either grant or deny the 
petition.
    (3) Upon review or reconsideration, the Assistant Secretary may 
either affirm the decision or remand the decision to the senior career 
official for further action consistent with such order of remand.
    (4) Subject to the provisions of paragraphs (b)(1) through (3) of 
this section, final decisions of the senior career official will be 
transmitted to the President of the United States when required under 49 
U.S.C. 41307.
    (c) Secretary and Deputy Secretary. The Secretary or Deputy 
Secretary may exercise any authority of the Assistant Secretary whenever 
he or she believes a decision involves important questions of national 
transportation policy.



Sec. 302.19  Participation by persons not parties.

    Any person, including any State, subdivision thereof, State aviation 
commission, or other public body, may appear at any hearing, other than 
in an enforcement proceeding, and present any evidence that is relevant 
to the issues. With the consent of the administrative law judge or the 
DOT decisionmaker, such person may also cross-examine witnesses 
directly. Such persons may also present to the administrative law judge 
a written statement on the issues involved in the proceeding. Such 
written statements shall be filed and served on all parties prior to the 
close of the hearing.



Sec. 302.20  Formal intervention.

    (a) Who may intervene. Any person who has a statutory right to be 
made a party to an oral evidentiary hearing proceeding shall be 
permitted to intervene. Any person whose intervention will be conducive 
to the public interest and will not unduly delay the conduct of such 
proceeding may be permitted to intervene.
    (b) Considerations relevant to determination of petition to 
intervene. In passing upon a petition to intervene, the following 
factors, among other things, will be considered and will be liberally 
interpreted to facilitate the effective participation by members of the 
public in Department proceedings:
    (1) The nature of the petitioner's right under the statute to be 
made a party to the proceeding;
    (2) The nature and extent of the property, financial or other 
interest of the petitioner;
    (3) The effect of the order that may be entered in the proceeding on 
petitioner's interest;

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    (4) The availability of other means whereby the petitioner's 
interest may be protected;
    (5) The extent to which petitioner's interest will be represented by 
existing parties;
    (6) The extent to which petitioner's participation may reasonably be 
expected to assist in the development of a sound record; and
    (7) The extent to which participation of the petitioner will broaden 
the issues or delay the proceeding.
    (c) Petition to intervene--(1) Contents. Any person desiring to 
intervene in a proceeding shall file a petition in conformity with this 
part setting forth the facts and reasons why he or she thinks he or she 
should be permitted to intervene. The petition should make specific 
reference to the factors set forth in paragraph (b) of this section.
    (2) Time for filing. Unless otherwise ordered by the Department:
    (i) A petition to intervene shall be filed with the Department prior 
to the first prehearing conference, or, in the event that no such 
conference is to be held, not later than fifteen (15) days prior to the 
hearing.
    (ii) A petition to intervene filed by a city, other public body, or 
a chamber of commerce shall be filed with the Department not later than 
the last day prior to the beginning of the hearing.
    (iii) A petition to intervene that is not timely filed shall be 
dismissed unless the petitioner shall clearly show good cause for his or 
her failure to file such petition on time.
    (3) Answer. Any party to a proceeding may file an answer to a 
petition to intervene, making specific reference to the factors set 
forth in paragraph (b) of this section, within seven (7) days after the 
petition is filed.
    (4) Disposition. The decision granting, denying or otherwise ruling 
on any petition to intervene may be issued without receiving testimony 
or oral argument either from the petitioner or other parties to the 
proceeding.
    (d) Effect of granting intervention. A person permitted to intervene 
in a proceeding thereby becomes a party to the proceeding. However, 
interventions provided for in this section are for administrative 
purposes only, and no decision granting leave to intervene shall be 
deemed to constitute an expression by the Department that the 
intervening party has such a substantial interest in the order that is 
to be entered in the proceeding as will entitle it to judicial review of 
such order.



Sec. 302.21  Appearances.

    (a) Any party to a proceeding may appear and be heard in person or 
by a designated representative.
    (b) No register of persons who may practice before the Department is 
maintained and no application for admission to practice is required.
    (c) Any person practicing or desiring to practice before the 
Department may, upon hearing and good cause shown, be suspended or 
barred from practicing.



Sec. 302.22  Prehearing conference.

    (a) Purpose and scope of conference. At the discretion of the 
administrative law judge, a prehearing conference may be called prior to 
any hearing. Written notice of the prehearing conference shall be sent 
by the administrative law judge to all parties to a proceeding and to 
other persons who appear to have an interest in such proceeding. The 
purpose of such a conference is to define the issues and the scope of 
the proceeding, to secure statements of the positions of the parties and 
amendments to the pleadings, to schedule the exchange of exhibits before 
the date set for hearing, and to arrive at such agreements as will aid 
in the conduct and disposition of the proceeding. For example, 
consideration will be given to:
    (1) Matters that the DOT decisionmaker can consider without the 
necessity of proof;
    (2) Admissions of fact and of the genuineness of documents;
    (3) Requests for documents;
    (4) Admissibility of evidence;
    (5) Limitation of the number of witnesses;
    (6) Reducing of oral testimony to exhibit form;
    (7) Procedure at the hearing; and
    (8) Use of electronic media as a basis for exchange of briefs, 
hearing transcripts and exhibits, etc., in addition to the official 
record copy.

[[Page 285]]

    (b) Actions during prehearing conference. The administrative law 
judge may require a further conference, or responsive pleadings, or 
both. If a party refuses to produce documents requested by another party 
at the conference, the administrative law judge may compel the 
production of such documents prior to a hearing by subpoena issued in 
accordance with the provisions of Sec. 302.25 as though at a hearing. 
Applications for the production prior to hearing of documents in the 
Department's possession shall be addressed to the administrative law 
judge, in accordance with the provisions of Sec. 302.25(g), in the same 
manner as provided therein for production of documents at a hearing. The 
administrative law judge may also, on his or her own initiative or on 
motion of any party, direct any party to the proceeding (air carrier or 
non-air carrier) to prepare and submit exhibits setting forth studies, 
forecasts, or estimates on matters relevant to the issues in the 
proceeding.
    (c) Report of prehearing conference. The administrative law judge 
shall issue a report of prehearing conference, defining the issues, 
giving an account of the results of the conference, specifying a 
schedule for the exchange of exhibits and rebuttal exhibits, the date of 
hearing, and specifying a time for the filing of objections to such 
report. The report shall be served upon all parties to the proceeding 
and any person who appeared at the conference. Objections to the report 
may be filed by any interested person within the time specified therein. 
The administrative law judge may revise his or her report in the light 
of the objections presented. The revised report, if any, shall be served 
upon the same persons as was the original report. Exceptions may be 
taken on the basis of any timely written objection that has not been met 
by a revision of the report if the exceptions are filed within the time 
specified in the revised report. Such report shall constitute the 
official account of the conference and shall control the subsequent 
course of the proceeding, but it may be reconsidered and modified at any 
time to protect the public interest or to prevent injustice.



Sec. 302.23  Hearing.

    The administrative law judge to whom the case is assigned or the DOT 
decisionmaker shall give the parties reasonable notice of a hearing or 
of the change in the date and place of a hearing and the nature of such 
hearing.



Sec. 302.24  Evidence.

    (a) Presenting evidence. Presenting evidence at the hearing shall be 
limited to material evidence relevant to the issues as drawn by the 
pleadings or as defined in the report of prehearing conference, subject 
to such later modifications of the issues as may be necessary to protect 
the public interest or to prevent injustice, and shall not be unduly 
repetitious. Evidence shall be presented in such form by all parties as 
the administrative law judge may direct.
    (b) Objections to evidence. Objections to the admission or exclusion 
of evidence shall be in short form, stating the grounds of objections 
relied upon, and the transcript shall not include argument or debate 
except as ordered by the administrative law judge. Rulings on such 
objections shall be a part of the transcript.
    (c) Exhibits. When exhibits are offered in evidence, one copy must 
be furnished to each of the parties at the hearing, and two copies to 
the administrative law judge, unless the parties previously have been 
furnished with copies or the administrative law judge directs otherwise. 
If the administrative law judge has not fixed a time for the exchange of 
exhibits, the parties shall exchange copies of exhibits at the earliest 
practicable time, preferably before the hearing or, at the latest, at 
the commencement of the hearing. Copies of exhibits may, at the 
discretion of the administrative law judge or the DOT decisionmaker, be 
furnished by use of electronic media in lieu of or in addition to a 
paper record copy.
    (d) Substitution of copies for original exhibits. In his or her 
discretion, the administrative law judge may permit a party to withdraw 
original documents offered in evidence and substitute true copies in 
lieu thereof.

[[Page 286]]

    (e) Designation of parts of documents. When relevant and material 
matter offered in evidence by any party is embraced in a book, paper, or 
document containing other matter not material or relevant, the party 
offering the same shall plainly designate the matter so offered. The 
immaterial and irrelevant parts shall be excluded and shall be 
segregated insofar as practicable. If the volume of immaterial or 
irrelevant matter would unduly encumber the record, such submission will 
not be received in evidence, but may be marked for identification, and, 
if properly authenticated, the relevant or material matter may be read 
into the record, or, if the administrative law judge so directs, a true 
copy of such matter, in proper form, shall be received as an exhibit, 
and like copies delivered by the party offering the same to opposing 
parties or their attorneys appearing at the hearing, who shall be 
afforded an opportunity to examine the submission, and to offer in 
evidence in like manner other portions of the exhibit.
    (f) Records in other proceedings. In case any portion of the record 
in any other proceeding or civil or criminal action is offered in 
evidence, a true copy of such portion shall be presented for the record 
in the form of an exhibit unless:
    (1) The portion is specified with particularity in such manner as to 
be readily identified;
    (2) The party offering the same agrees unconditionally to supply 
such copies later, or when required by the DOT decisionmaker;
    (3) The parties represented at the hearing stipulate upon the record 
that such portion may be incorporated by reference, and that any portion 
offered by any other party may be incorporated by like reference upon 
compliance with paragraphs (f)(1) and (2) of this section; and
    (4) The administrative law judge directs such incorporation or 
waives the requirement in paragraph (f)(3) of this section with the 
consent of the parties.
    (g) Official notice of facts contained in certain documents. (1) 
Without limiting, in any manner or to any extent, the discretionary 
powers of the DOT decisionmaker and the administrative law judge to 
notice other matters or documents properly the subject of official 
notice, facts contained in any document within the categories enumerated 
in this subdivision are officially noticed in all formal economic 
proceedings except those subject to subpart D of this part. Each such 
category shall include any document antedating the final Department 
decision in the proceeding where such notice is taken. The matters 
officially noticed under the provisions of this paragraph are:
    (i) Air carrier certificates or applications therefor, together with 
any requests for amendment, and pleadings responding to applications 
when properly filed.
    (ii) All Form 41 reports required to be filed by air carriers with 
the Department.
    (iii) Reports of Traffic and Financial Data of all U.S. Air Carriers 
issued by the Civil Aeronautics Board (CAB) or the Department.
    (iv) Airline Traffic Surveys and Passenger Origin-Destination 
Surveys, Domestic and International, compiled by the CAB or the 
Department and published and/or made available either to the public or 
to parties in proceedings.
    (v) Compilations of data relating to competition in the airline 
industry and made available to the public by the CAB or the Department, 
such as the 1990 Airline Competition Study.
    (vi) Passenger, mail, express, and freight data submitted to the CAB 
or the Department as part of ER-586 Service Segment Data by U.S. 
carriers, or similar data submitted to the Department by U.S. air 
carriers (T-100) or by foreign air carriers (T-100F) that is not 
confidential.
    (vii) All tariffs, including the electronic versions, and amendments 
thereof, of all air carriers, on file with the Department.
    (viii) Service Mail Pay and Subsidy for U.S. Certificated Air 
Carriers published by the CAB and any supplemental data and subsequent 
issues published by the CAB or the Department.
    (ix) Airport Activity Statistics of Certificated Air Carriers 
compiled and published by the Federal Aviation Administration (FAA) or 
the Department.
    (x) Air Traffic Activity Data issued by the FAA.

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    (xi) National Plan of Integrated Airport Systems (NPIAS) issued by 
the FAA.
    (xii) Airport Facilities Directory, Form 5010, issued by the FAA.
    (xiii) The Airman's Information Manual issued by the FAA.
    (xiv) ICAO Statistical Summary, Preliminary Issues and Nos. 1 
through 14, and Digest of Statistics, Nos. 15 through 71, prepared by 
ICAO, Montreal, Canada, with all changes and additions.
    (xv) Monthly, quarterly and annual reports of the Immigration and 
Naturalization Service, U.S. Department of Justice.
    (xvi) All forms and reports required by the U.S. Postal Service to 
be filed by air carriers authorized to transport mail.
    (xvii) All orders of the Postmaster General designating schedules 
for the transportation of mail.
    (xviii) Publications of the Bureau of the Census of the U.S. 
Department of Commerce (DOC) relating, but not necessarily limited, to 
population, manufacturing, business, statistics, and any yearbooks, 
abstracts, or similar publications published by DOC.
    (xix) ABC World Airways Guide and all Official Airline Guides, 
including the North American, Worldwide, All-Cargo and quick reference 
editions, including electronic versions.
    (xx) Official Guide of the Railways and Russell's Official National 
Motor Coach Guide.
    (xxi) The Rand McNally Commercial Atlas and Marketing Guide, and the 
Rand McNally Road Atlas, United States, Canada, and Mexico.
    (xxii) Survey of Buying Power published by Sales Management 
Magazine.
    (2) Any fact contained in a document belonging to a category 
enumerated in paragraph (g)(1) of this section shall be deemed to have 
been physically incorporated into and made part of the record in such 
proceedings. However, such taking of official notice shall be subject to 
the rights granted to any party or intervener to the proceeding under 
section 7(d) of the Administrative Procedure Act (5 U.S.C. 557(d)).
    (3) The decisions of the Department and its administrative law 
judges may officially notice any appropriate matter without regard to 
whether or not such items are contained in a document belonging to the 
categories enumerated in paragraph (g)(1) of this section. However, 
where the decision rests on official notice of a material fact or facts, 
it will set forth such items with sufficient particularity to advise 
interested persons of the matters that have been noticed.
    (h) Receipt of documents after hearing. No document or other 
writings shall be accepted for the record after the close of the hearing 
except in accordance with an agreement of the parties and the consent of 
the administrative law judge or the DOT decisionmaker.
    (i) Exceptions. Formal exceptions to the rulings of the 
administrative law judge made during the course of the hearing are 
unnecessary. For all purposes for which an exception otherwise would be 
taken, it is sufficient that a party, at the time the ruling of the 
administrative law judge is made or sought, makes known the action he or 
she desires the administrative law judge to take or his or her objection 
to an action taken, and his or her grounds therefor.
    (j) Offers of proof. Any offer of proof made in connection with an 
objection taken to any ruling of the administrative law judge rejecting 
or excluding proffered oral testimony shall consist of a statement of 
the substance of the evidence that counsel contends would be adduced by 
such testimony, and if the excluded evidence consists of evidence in 
documentary or written form or of reference to documents or records, a 
copy of such evidence shall be marked for identification and shall 
constitute the offer of proof.



Sec. 302.25  Subpoenas.

    (a) An application for a subpoena requiring the attendance of a 
witness at a hearing or the production of documentary evidence may be 
made without notice by any party to the administrative law judge or, in 
the event that an administrative law judge has not been assigned to a 
proceeding or is not available, to the DOT decisionmaker or the Chief 
Administrative Law Judge, for action.
    (b) An application for a subpoena shall be in duplicate except that 
if it is

[[Page 288]]

made during the course of a hearing, it may be made orally on the record 
with the consent of the administrative law judge.
    (c) All such applications, whether written or oral, shall contain a 
statement or showing of general relevance and reasonable scope of the 
evidence sought, and shall be accompanied by two copies of a draft of 
the subpoena sought that, in the case of evidence, shall describe the 
documentary or tangible evidence to be subpoenaed with as much 
particularity as is feasible, or, in the case of a witness, the name of 
the witness and a general description of the matters concerning which 
the witness will be asked to testify.
    (d) The administrative law judge or DOT decisionmaker considering 
any application for a subpoena shall issue the subpoena requested if the 
application complies with this section. No attempt shall be made to 
determine the admissibility of evidence in passing upon an application 
for a subpoena, and no detailed or burdensome showing shall be required 
as a condition to the issuance of a subpoena.
    (e) Where it appears during the course of a proceeding that the 
testimony of a witness or documentary evidence is relevant to the issues 
in a proceeding, the administrative law judge, Chief Administrative Law 
Judge or DOT decisionmaker may issue on his or her own initiative a 
subpoena requiring such witness to attend and testify or requiring the 
production of such documentary evidence.
    (f) Subpoenas issued under this section shall be served upon the 
person to whom directed in accordance with Sec. 302.7(b). Any person 
upon whom a subpoena is served may within seven (7) days after service 
or at any time prior to the return date thereof, whichever is earlier, 
file a motion to quash or modify the subpoena with the administrative 
law judge or, in the event an administrative law judge has not been 
assigned to a proceeding or is not available, to the DOT decisionmaker 
or the Chief Administrative Law Judge for action. If the person to whom 
the motion to modify or quash the subpoena has been addressed or 
directed, has not acted upon such a motion by the return date, such date 
shall be stayed pending his or her final action thereon. The DOT 
decisionmaker may at any time review, upon his or her own initiative, 
the ruling of an administrative law judge or the Chief Administrative 
Law Judge denying a motion to quash a subpoena. In such cases, the DOT 
decisionmaker may order that the return date of a subpoena be stayed 
pending action thereon.
    (g) The provisions of this section are not applicable to the 
attendance of DOT employees or the production of documentary evidence in 
the custody thereof at a hearing. The attendance of DOT employees and 
the production of documentary evidence in their custody are governed by 
49 CFR Parts 9 and 7, respectively.



Sec. 302.26  Depositions.

    (a) For good cause shown, the DOT decisionmaker or administrative 
law judge assigned to a proceeding may order that the testimony of a 
witness be taken by deposition and that the witness produce documentary 
evidence in connection with such testimony. Ordinarily an order to take 
the deposition of a witness will be entered only if:
    (1) The person whose deposition is to be taken would be unavailable 
at the hearing,
    (2) The deposition is deemed necessary to perpetuate the testimony 
of the witness, or
    (3) The taking of the deposition is necessary to prevent undue and 
excessive expense to a party and will not result in an undue burden to 
other parties or in undue delay.
    (b) Any party desiring to take the deposition of a witness shall 
make application therefor in duplicate to the administrative law judge 
or, in the event that an administrative law judge has not been assigned 
to a proceeding or is not available, to the DOT decisionmaker or Chief 
Administrative Law Judge, setting forth the reasons why such deposition 
should be taken, the name and residence of the witness, the time and 
place proposed for the taking of the deposition, and a general 
description of the matters concerning

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which the witness will be asked to testify. If good cause be shown, the 
administrative law judge, the DOT decisionmaker, or the Chief 
Administrative Law Judge, as the case may be, may, in his or her 
discretion, issue an order authorizing such deposition and specifying 
the witness whose deposition is to be taken, the general scope of the 
testimony to be taken, the time when, the place where, the designated 
officer (authorized to take oaths) before whom the witness is to 
testify, and the number of copies of the deposition to be supplied. Such 
order shall be served upon all parties by the person proposing to take 
the deposition a reasonable period in advance of the time fixed for 
taking testimony.
    (c) Witnesses whose testimony is taken by deposition shall be sworn 
or shall affirm before any questions are put to them. Each question 
shall be recorded and the answers shall be taken down in the words of 
the witness.
    (d) Objections to questions or evidence shall be in short form, 
stating the grounds of objection relied upon, but no transcript filed by 
the designated officer shall include argument or debate. Objections to 
questions or evidence shall be noted by the designated officer upon the 
deposition, but he or she shall not have power to decide on the 
competency or materiality or relevance of evidence, and he or she shall 
record the evidence subject to objection. Objections to questions or 
evidence not made before the designated officer shall not be deemed 
waived unless the ground of the objection is one that might have been 
obviated or removed if presented at that time.
    (e) The testimony shall be reduced to writing by the designated 
officer, or under his or her direction, after which the deposition shall 
be signed by the witness unless the parties by stipulation waive the 
signing or the witness is ill or cannot be found or refuses to sign, and 
certified in usual form by the designated officer. If the deposition is 
not signed by the witness, the designated officer shall state on the 
record this fact and the reason therefor. The original deposition and 
exhibits shall be forwarded to Department of Transportation Dockets and 
shall be filed in the proceedings.
    (f) Depositions may also be taken and submitted on written 
interrogatories in substantially the same manner as depositions taken by 
oral examination. Ordinarily such procedure will be authorized only if 
necessary to achieve the purposes of an oral deposition and to serve the 
balance of convenience of the parties. The interrogatories shall be 
filed in quadruplicate with two copies of the application and a copy of 
each shall be served on each party. Within seven (7) days after service 
any party may file with the person to whom application was made two 
copies of his or her objections, if any, to such interrogatories and may 
file such cross-interrogatories as he or she desires to submit. Cross-
interrogatories shall be filed in quadruplicate, and a copy thereof 
together with a copy of any objections to interrogatories, shall be 
served on each party, who shall have five (5) days thereafter to file 
and serve his or her objections, if any, to such cross-interrogatories. 
Objections to interrogatories or cross-interrogatories, shall be served 
on the DOT decisionmaker or the administrative law judge considering the 
application. Objections to interrogatories shall be made before the 
order for taking the deposition issues and if not so made shall be 
deemed waived. When a deposition is taken upon written interrogatories, 
and cross-interrogatories, no party shall be present or represented, and 
no person other than the witness, a reporter, and the designated officer 
shall be present at the examination of the witness, which fact shall be 
certified by the designated officer, who shall ask the interrogatories 
and cross-interrogatories to the witness in their order and reduce the 
testimony to writing in the witness's own words. The provisions of 
paragraph (e) of this section shall be applicable to depositions taken 
in accordance with this paragraph.
    (g) All depositions shall conform to the specifications of Sec. 
302.3 except that the filing of three copies thereof shall be 
sufficient. Any fees of a witness, the reporter, or the officer 
designated to take the deposition shall be paid by the person at whose 
instance the deposition is taken.

[[Page 290]]

    (h) The fact that a deposition is taken and filed in a proceeding as 
provided in this section does not constitute a determination that it is 
admissible in evidence or that it may be used in the proceeding. Only 
such part or the whole of a deposition as is received in evidence shall 
constitute a part of the record in such proceeding upon which a decision 
may be based.



Sec. 302.27  Rights of witnesses; attendance fees and mileage.

    (a) Any person appearing as a witness in any proceeding governed by 
this part, whether in response to a subpoena or by request or permission 
of the Department, may be accompanied, represented, and advised by 
counsel and may be examined by that counsel after other questioning.
    (b) Any person who submits data or evidence in a proceeding governed 
by this part, whether in response to a subpoena or by request or 
permission of the Department, may retain, or, on payment of lawfully 
prescribed costs, procure, a copy of any document so submitted or a copy 
of any transcript made of such testimony.
    (c) No person whose attendance at a hearing or whose deposition is 
to be taken shall be obliged to respond to a subpoena unless upon a 
service of the subpoena he or she is tendered attendance fees and 
mileage by the party at whose instance he or she is called in accordance 
with the requirements of paragraphs (c)(1) and (2) of this section; 
Provided, That a witness summoned at the instance of the Department or 
one of its employees, or a salaried employee of the United States 
summoned to testify as to matters related to his or her public 
employment, need not be tendered such fees or mileage at that time.
    (1) Witnesses who are not salaried employees of the United States, 
or such employees summoned to testify on matters not related to their 
public employment, shall be paid the same per diem, subsistence, and 
mileage fees paid to witnesses for like service in the courts of the 
United States that are in effect at the time of travel; Provided, That 
no employee, officer, or attorney of an air carrier who travels under 
the free or reduced rate provisions of section 41511 of the Statute 
shall be entitled to any fees or mileage; And provided further, That 
such fees and mileage shall not be applicable for witnesses summoned to 
testify in Alaska, and that, in Alaska, where permitted by section 41511 
of the Statute, the witness may, at his or her option, accept a pass for 
travel by air. Such witnesses shall be furnished appropriate forms and 
instructions for the submission of claims for attendance fees, 
subsistence, and mileage from the Government before the close of the 
proceedings that they are required to attend. Only persons summoned by 
subpoena shall be entitled to claim attendance fees, subsistence, or 
mileage from the Government.
    (2) Witnesses who are salaried employees of the United States and 
who are summoned to testify on matters relating to their public 
employment, irrespective of at whose instance they are summoned, shall 
be paid in accordance with applicable Government regulations.



Sec. 302.28  Transcripts of hearings.

    (a) Hearings shall be recorded and transcribed under supervision of 
the administrative law judge, by a reporting firm under contract with 
the Department. Copies of the transcript that may, at the discretion of 
the administrative law judge, be furnished by use of electronic media in 
addition to the official copy, shall be supplied to the parties to the 
proceeding by said reporting firm, at the contract price for copies.
    (b) The administrative law judge shall determine whether ``ordinary 
transcript'' or ``daily transcript'' (as those terms are defined in the 
contract) will be necessary and required for the proper conduct of the 
proceeding and the Department will pay the reporting firm the cost of 
reporting its proceedings at the contract price for such type of 
transcript. If the administrative law judge has determined that ordinary 
transcript is adequate, and has notified the parties of such 
determination (in the notice of hearings, or otherwise), then any party 
may request reconsideration of such determination and that daily 
transcript be

[[Page 291]]

required. In determining what is necessary and required for the proper 
conduct of the proceeding, the administrative law judge shall consider, 
among other things:
    (1) The nature of the proceeding itself;
    (2) The DOT decisionmaker's needs as well as the reasonable needs of 
the parties;
    (3) The cost to the Department; and
    (4) The requirements of a fair hearing.
    (c) If the administrative law judge has determined that ordinary 
transcript is adequate, or, upon reconsideration, has adhered to such 
determination, then any party may request the reporting firm to provide 
daily transcript. In that case, pursuant to its contract with the 
Department, the reporting firm will be obligated to furnish to the 
Department daily transcript upon the agreement by the requesting party 
to pay to the reporting firm an amount equal to the difference between 
the contract prices for ordinary transcript and daily transcript, 
provided that the requesting party makes such agreement with the 
reporting firm at least twenty-four (24) hours in advance of the date 
for which such transcript is requested.
    (d) Any party may obtain from the Office of the Assistant Secretary 
for Administration, the name and address of the private reporting 
company with which the Department currently has a contract for 
transcripts and copies, as well as the contract prices then in effect 
for such services.
    (e) Copies of transcripts ordered by parties other than the 
Department shall be prepared for delivery to the requesting person at 
the reporting firm's place of business, within the stated time for the 
type of transcript ordered. The requesting party and the reporting firm 
may agree upon some other form or means of delivery (mail, messenger, 
electronic media, etc.) and the reporting firm may charge for such 
special service, provided that such charge shall not exceed the 
reasonable cost of such service.
    (f) Changes in the official transcript may be made only when they 
involve errors affecting substance. A motion to correct a transcript 
shall be filed with Department of Transportation Dockets, within ten 
(10) days after receipt of the completed transcript by the Department. 
If no objections to the motion are filed within ten (10) days 
thereafter, the transcript may, upon the approval of the administrative 
law judge, be changed to reflect such corrections. If objections are 
received, the motion and objections shall be submitted to the official 
reporter by the administrative law judge together with a request for a 
comparison of the transcript with the reporter's record of the hearing. 
After receipt of the report of the official reporter an order shall be 
entered by the administrative law judge settling the record and ruling 
on the motion.



Sec. 302.29  Argument before the administrative law judge.

    (a) The administrative law judge shall give the parties to the 
proceeding adequate opportunity during the course of the hearing for the 
presentation of arguments in support of or in opposition to motions, and 
objections and exceptions to rulings of the administrative law judge.
    (b) When, in the opinion of the administrative law judge, the volume 
of the evidence or the importance or complexity of the issues involved 
warrants, he or she may, either on his or her own motion or at the 
request of a party, permit the presentation of oral argument, and may 
impose such time limits on the argument as he or she may determine 
appropriate. Such argument shall be transcribed and bound with the 
transcript of testimony and will be available to the Department 
decisionmaker for consideration in deciding the case.



Sec. 302.30  Briefs to the administrative law judge.

    Within such limited time after the close of the reception of 
evidence fixed by the administrative law judge, any party may, upon 
request and under such conditions as the administrative law judge may 
prescribe, file for his or her consideration briefs which may include 
proposed findings of fact and conclusions of law that shall contain 
exact references to the record and authorities relied upon.

[[Page 292]]



Sec. 302.31  Initial and recommended decisions; certification of the record.

    (a) Action by administrative law judge after hearing. Except where 
the DOT decisionmaker directs otherwise, after the taking of evidence 
and the receipt of briefs which may include proposed findings of fact 
and conclusions of law, if any, the administrative law judge shall take 
the following action:
    (1) Initial decision. If the proceeding does not involve foreign air 
transportation, the administrative law judge shall render an ``initial 
decision.'' Such decision shall encompass the administrative law judge's 
decision on the merits of the proceeding and on all ancillary procedural 
issues remaining for disposition at the close of the hearing.
    (2) Recommended decision. In cases where the action of the 
Department involves foreign air transportation and is subject to review 
by the President of the United States pursuant to section 41307 of the 
Statute, the administrative law judge shall render a ``recommended 
decision.'' Such decision shall encompass the administrative law judge's 
decision on the merits of the proceeding and on all ancillary procedural 
issues remaining for disposition at the close of the hearing.
    (b) Certification to the DOT decisionmaker for decision. At any time 
prior to the close of the hearing, the DOT decisionmaker may direct the 
administrative law judge to certify any question or the entire record in 
the proceeding to the DOT decisionmaker for decision. In cases where the 
record is thus certified, the administrative law judge shall not render 
a decision but shall make a recommendation to the DOT decisionmaker as 
required by section 8(a) of the Administrative Procedure Act (5 U.S.C. 
558(a)) unless advised by the DOT decisionmaker that he or she intends 
to issue a tentative decision.
    (c) Every initial or recommended decision issued shall state the 
names of the persons who are to be served with copies of it, the time 
within which exceptions to, or petitions for review of, such decision 
may be filed, and the time within which briefs in support of the 
exceptions may be filed. In addition, every such decision shall recite 
that it is made under delegated authority, and contain notice of the 
provisions of paragraph (d) of this section. In the event the 
administrative law judge certifies the record to the DOT decisionmaker 
without an initial or recommended decision, he or she shall notify the 
parties of the time within which to file with the DOT decisionmaker 
briefs which may include proposed findings of fact and conclusions of 
law.
    (d) Unless a petition for discretionary review is filed pursuant to 
Sec. 302.32, exceptions are filed pursuant to Sec. 302.217, or the DOT 
decisionmaker issues an order to review upon his or her own initiative, 
the initial decision shall become effective as the final order of the 
Department thirty (30) days after service thereof; in the case of a 
recommended decision, that decision shall be transmitted to the 
President of the United States under 49 U.S.C. 41307. If a petition for 
discretionary review or exceptions are timely filed or action to review 
is taken by the DOT decisionmaker upon his or her own initiative, the 
effectiveness of the initial decision or the transmission of the 
recommended decision is stayed until the further order of the DOT 
decisionmaker.



Sec. 302.32  Petitions for discretionary review of initial or recommended decisions; review proceedings.

    (a) Petitions for discretionary review. (1) Review by the DOT 
decisionmaker pursuant to this section is not a matter of right but is 
at the sole discretion of the DOT decisionmaker. Any party may file and 
serve a petition for discretionary review by the DOT decisionmaker of an 
initial decision or recommended decision within twenty-one (21) days 
after service thereof, unless the DOT decisionmaker sets a different 
period for filing.
    (2) Petitions for discretionary review shall be filed only upon one 
or more of the following grounds:
    (i) A finding of a material fact is erroneous;
    (ii) A necessary legal conclusion is without governing precedent or 
is a departure from or contrary to law, the Department's rules, or 
precedent;
    (iii) A substantial and important question of law, policy or 
discretion is involved; or

[[Page 293]]

    (iv) A prejudicial procedural error has occurred.
    (3) Each issue shall be separately numbered and plainly and 
concisely stated. Petitioners shall not restate the same point in 
repetitive discussions of an issue. Each issue shall be supported by 
detailed citations of the record when objections are based on the 
record, and by statutes, regulations or principal authorities relied 
upon. Any matters of fact or law not argued before the administrative 
law judge, but that the petitioner proposes to argue on brief to the DOT 
decisionmaker, shall be stated.
    (4) Petitions for discretionary review shall be self-contained and 
shall not incorporate by reference any part of another document. Except 
by permission of the DOT decisionmaker, petitions shall not exceed 
twenty (20) pages including appendices and other papers physically 
attached to the petition.
    (5) Requests for oral argument on petitions for discretionary review 
will not be entertained by the DOT decisionmaker.
    (b) Answers. Within fifteen (15) days after service of a petition 
for discretionary review, any party may file and serve an answer of not 
more than fifteen (15) pages in support of or in opposition to the 
petition. If any party desires to answer more than one petition for 
discretionary review in the same proceeding, he or she shall do so in a 
single document of not more than twenty (20) pages.
    (c) Orders declining review. The DOT decisionmaker's order declining 
to exercise the discretionary right of review will specify the date upon 
which the administrative law judge's decision shall become effective as 
the final decision of the Department. A petition for reconsideration of 
a Department order declining review will be entertained only when the 
order exercises, in part, the DOT decisionmaker's discretionary right of 
review, and such petition shall be limited to the single question of 
whether any issue designated for review and any issue not so designated 
are so inseparably interrelated that the former cannot be reviewed 
independently or that the latter cannot be made effective before the 
final decision of the Department in the review proceeding.
    (d) Review proceedings. (1) The DOT decisionmaker may take review of 
an initial or recommended decision upon petition or on his or her own 
initiative or both. The DOT decisionmaker will issue a final order upon 
such review without further proceedings on any or all the issues where 
he or she finds that matters raised do not warrant further proceedings.
    (2) Where the DOT decisionmaker desires further proceedings, he or 
she will issue an order for review that will:
    (i) Specify the issues to which review will be limited. Only those 
issues specified in the order shall be argued on brief to the DOT 
decisionmaker, pursuant to Sec. 302.35, and considered by the DOT 
decisionmaker;
    (ii) Specify the portions of the administrative law judge's 
decision, if any, that are to be stayed as well as the effective date of 
the remaining portions thereof; and
    (iii) Designate the parties to the review proceeding.



Sec. 302.33  Tentative decision of the DOT decisionmaker.

    (a) Except as provided in paragraph (b) of this section, whenever 
the administrative law judge certifies the record in a proceeding 
directly to the DOT decisionmaker without issuing an initial or 
recommended decision in the matter, the DOT decisionmaker shall, after 
consideration of any briefs submitted by the parties, prepare a 
tentative decision and serve it upon the parties. Every tentative 
decision of the DOT decisionmaker shall state the names of the persons 
who are to receive copies of it, the time within which exceptions to 
such decision and briefs, if any, in support of or in opposition to the 
exceptions may be filed, and the date when such decision will become 
final in the absence of exceptions thereto. If no exceptions are filed 
to the tentative decision of the DOT decisionmaker within the period 
fixed, it shall become final at the expiration of such period unless the 
DOT decisionmaker orders otherwise.
    (b) The DOT decisionmaker may, in his or her discretion, omit a 
tentative decision in proceedings under subpart

[[Page 294]]

B. Final decisions of the DOT decisionmaker are subject to review as 
provided in Sec. 302.18.



Sec. 302.34  Exceptions to tentative decisions of the DOT decisionmaker.

    (a) Time for filing. Within ten (10) days after service of any 
tentative decision of the DOT decisionmaker, any party to a proceeding 
may file exceptions to such decision with the DOT decisionmaker.
    (b) Form and contents of exceptions. Each exception shall be 
separately numbered and shall be stated as a separate point, and 
appellants shall not restate the same point in several exceptions. Each 
exception shall state, sufficiently identify, and be limited to, an 
ultimate conclusion in the decision to which exception is taken (such 
as, selection of one carrier rather than another to serve any point or 
points; points included in or excluded from a new route; imposition or 
failure to impose a given restriction; determination of a rate at a 
given amount rather than another). No specific exception shall be taken 
with respect to underlying findings or statements, but exceptions to an 
ultimate conclusion shall be deemed to include exceptions to all 
underlying findings and statements pertaining thereto; Provided, 
however, That exceptions shall specify any matters of law, fact, or 
policy that were not argued before the administrative law judge but will 
be set forth for the first time on brief to the DOT decisionmaker.
    (c) Effect of failure to file timely and adequate exceptions. No 
objection may be made on brief or at a later time to an ultimate 
conclusion that is not expressly made the subject of an exception in 
compliance with the provisions of this section; Provided, however, That 
any party may file a brief in support of the decision and in opposition 
to the exceptions filed by any other party.



Sec. 302.35  Briefs to the DOT decisionmaker.

    (a) Time for filing. Within such period after the date of service of 
any tentative decision by the DOT decisionmaker as may be fixed therein, 
any party may file a brief addressed to the DOT decisionmaker in support 
of his or her exceptions to such decision or in opposition to the 
exceptions filed by any other party. Briefs to the DOT decisionmaker on 
initial or recommended decisions of administrative law judges shall be 
filed only in those cases where the DOT decisionmaker grants 
discretionary review and orders further proceedings, pursuant to Sec. 
302.32(d)(2), and only upon those issues specified in the order. Such 
briefs shall be filed within thirty (30) days after date of service of 
the order granting discretionary review unless otherwise specified in 
the order. In cases where, because of the limited number of parties and 
the nature of the issues, the filing of opening, answering, and reply 
briefs will not unduly delay the proceeding and will assist in its 
proper disposition, the DOT decisionmaker may direct that the parties 
file briefs at different times rather than at the same time.
    (b) Effect of failure to restate objections in briefs. In 
determining the merits of an appeal, the DOT decisionmaker will not 
consider the exceptions or the petition for discretionary review but 
will consider only the brief. Each objection contained in the exceptions 
or each issue specified in the DOT decisionmaker's order exercising 
discretionary review must be restated and supported by a statement and 
adequate discussion of all matters relied upon, in a brief filed 
pursuant to and in compliance with the requirements of this section.
    (c) Formal specifications of briefs--(1) Contents. Each brief shall 
discuss every point of law, fact, or precedent that the party submitting 
it is entitled to raise and that it wishes the DOT decisionmaker to 
consider. Each brief shall include a summary of the argument not to 
exceed five (5) pages. Support and justification for every point raised 
shall include itemized references to the pages of the transcript of 
hearing, exhibit or other matter of record, and citations of the 
statutes, regulations, or principal authorities relied upon. If a brief 
or any point discussed in the brief is not in substantial conformity 
with the requirement for such support and justification, no motion to 
strike or dismiss such document shall be made but the DOT decisionmaker 
may disregard the points involved. Copies of

[[Page 295]]

briefs may be furnished by use of electronic media in a format 
acceptable to the Department and the parties.
    (2) Incorporation by reference. Briefs to the DOT decisionmaker 
shall be completely self-contained and shall not incorporate by 
reference any portion of any other brief or pleading; Provided, however, 
That instead of submitting a brief to the DOT decisionmaker a party may 
adopt by reference specifically identified pages or the whole of his or 
her prior brief to the administrative law judge if the latter complies 
with all requirements of this section. In such cases, the party shall 
file with Department of Transportation Dockets a letter exercising this 
privilege and serve all parties in the same manner as a brief to the DOT 
decisionmaker.
    (3) Length. Except by permission or direction of the DOT 
decisionmaker, briefs shall not exceed fifty (50) pages including pages 
contained in any appendix, table, chart, or other document physically 
attached to the brief, but excluding maps and the summary of the 
argument. In this case ``map'' means only those pictorial 
representations of routes, flight paths, mileage, and similar ancillary 
data that are superimposed on geographic drawings and contain only such 
text as is needed to explain the pictorial representation.



Sec. 302.36  Oral argument before the DOT decisionmaker.

    (a) If any party desires to argue a case orally before the DOT 
decisionmaker, he or she shall request leave to make such argument in 
his or her exceptions or brief. Such request shall be filed no later 
than the date when briefs before the DOT decisionmaker are due in the 
proceeding. The DOT decisionmaker will rule on such request, and, if 
oral argument is to be allowed, all parties to the proceeding will be 
advised of the date and hour set for such argument and the amount of 
time allowed to each party. Requests for oral argument on petitions for 
discretionary review will not be entertained.
    (b) Pamphlets, charts, and other written data may be offered to the 
DOT decisionmaker at oral argument only in accordance with the following 
rules: All such material shall be limited to facts in the record of the 
case being argued and shall be served on all parties to the proceeding 
with four (4) copies transmitted to Department of Transportation Dockets 
at least five (5) calendar days in advance of the argument.



Sec. 302.37  Waiver of procedural steps after hearing.

    The parties to any proceeding may agree to waive any one or more of 
the procedural steps provided in Sec. 302.29 through Sec. 302.36.



Sec. 302.38  Final decision of the DOT Decisionmaker.

    When a case stands submitted to the DOT decisionmaker for final 
decision on the merits, he or she will dispose of the issues presented 
by entering an appropriate order that will include a statement of the 
reasons for his or her findings and conclusions. Such orders shall be 
deemed ``final orders'' within the purview of Sec. 302.14(a), in the 
manner provided by Sec. 302.18.



 Subpart B_Rules Applicable to U.S. Air Carrier Certificate and Foreign 
                Air Carrier Permit Licensing Proceedings



Sec. 302.201  Applicability.

    (a) This subpart sets forth the specific rules applicable to 
proceedings on:
    (1) U.S. air carrier certificates of public convenience and 
necessity and U.S. all-cargo air service certificates under Chapter 411 
of the Statute, including renewals, amendments, modifications, 
suspensions and transfers of such certificates.
    (2) Foreign air carrier permits under Chapter 413 of the Statute, 
including renewals, amendments, modifications, suspensions, and 
transfers of such permits.
    (b) Except as modified by this subpart, the provisions of subpart A 
of this part apply.



Sec. 302.202  Contents of applications.

    (a) Certificate applications filed under this subpart shall contain 
the information required by part 201 of this chapter and, where 
applicable, part 204 of this chapter, and foreign air carrier permit 
applications shall contain the information required by part 211 of this

[[Page 296]]

chapter, along with any other information that the applicant desires the 
Department to notice officially.
    (b) Applications shall include a notice on the cover page stating 
that any person may support or oppose the application by filing an 
answer and serving a copy of the answer on all persons served with the 
application. The notice shall also state the due date for answers. 
Amendments to applications will be considered new applications for the 
purpose of calculating the time limitations of this subsection.
    (c) Applications shall include a list of the names and addresses of 
all persons who have been served in accordance with Sec. 302.203.
    (d) Where required, each application shall be accompanied by an 
Energy Statement in conformity with part 313 of this chapter.



Sec. 302.203  Service of documents.

    (a) General requirements. (1) Applicants shall serve on the persons 
listed in paragraph (b) of this section a notice that an application has 
been filed, and upon request shall promptly provide those persons with 
copies of the application and supporting documents. The notice must 
clearly state the authority sought and the due date for other pleadings.
    (2) Applicants shall serve a complete copy of the application on the 
Manager of the FAA Flight Standards District Office responsible for 
processing the application for any FAA authority needed to conduct the 
proposed operations.
    (3) After an order under Sec. 302.210 has been issued, parties need 
only serve documents on those persons listed in the service list 
accompanying the order.
    (4) In the case of an application sought to be consolidated, the 
applicant shall serve the notice required in paragraph (a)(1) of this 
section on all persons served by the original applicant.
    (b) Persons to be served--(1) U.S. air carriers. (i) In certificate 
proceedings, except for those proceedings that involve charter-only 
authority under section 41102(a)(3) of the Statute:
    (A) Applicants for certificates to engage in interstate air 
transportation and other persons who file a pleading in the docket shall 
serve:
    (1) The airport authority of each airport that the applicant 
initially proposes to serve, and
    (2) Any other person who has filed a pleading in the docket.
    (B) Applicants for certificates to engage in foreign air 
transportation and other persons who file a pleading in the docket shall 
serve:
    (1) All U.S. air carriers (including commuter air carriers) that 
publish schedules in the Official Airline Guide or in the Air Cargo 
Guide for the country-pair market(s) specified in the application,
    (2) The airport authority of each U.S. airport that the applicant 
initially proposes to serve, and
    (3) Any other person who has filed a pleading in the docket.
    (ii) In certificate proceedings involving charter-only authority 
under 41102(a)(3) of the Statute, applicants and other persons who file 
a pleading in the docket shall serve any other person who has filed a 
pleading in the docket.
    (2) Foreign air carriers. (i) In permit proceedings, except for 
those proceedings involving charter-only authority, applicants and other 
persons who have filed a pleading in the docket shall serve:
    (A) All U.S. air carriers (including commuter air carriers) that 
publish schedules in the Official Airline Guide or the Air Cargo Guide 
for the country-pair market(s) specified in the application,
    (B) The U.S. Department of State,
    (C) The airport authority of each U.S. airport that the applicant 
initially proposes to serve, and
    (D) Any other person who has filed a pleading in the docket.
    (ii) In foreign air carrier permit proceedings for charter-only 
authority, applicants and other persons who file a pleading in the 
docket shall serve the U.S. Department of State and any other person who 
has filed a pleading in the docket.
    (c) Additional service. The Department may, at its discretion, order 
additional service upon such persons as the facts of the situation 
warrant. Where only

[[Page 297]]

notices are required, parties are encouraged to serve copies of their 
actual pleadings where feasible. In any proceeding directly involving 
air transportation to the Federated States of Micronesia, the Marshall 
Islands or Palau, the Department and any party or participant in the 
proceeding shall serve all documents on the President and the designated 
authorities of the government(s) involved.



Sec. 302.204  Responsive documents.

    (a) Any person may file an answer in support of or in opposition to 
any application. Answers shall set forth the basis for the position 
taken, including any economic data or other facts relied on. Except as 
otherwise provided in Sec. 302.212(d), answers shall be filed within 
twenty one (21) days of the original or amended application and shall be 
served in accordance with Sec. 302.203.
    (b) Replies to answers shall be filed within fourteen (14) days 
after the filing of the answer.
    (c) Persons having common interests shall, to the extent 
practicable, arrange for the joint preparation of pleadings.



Sec. 302.205  Economic data and other facts.

    Whenever economic data and other facts are provided in any pleading, 
such information shall include enough detail so that final results can 
be obtained without further clarification. Sources, bases, and 
methodology used in constructing exhibits, including any estimates or 
judgments, shall be provided.



Sec. 302.206  Verification.

    Any pleading filed under this subpart shall include a certification 
as provided in Sec. 302.4(b).

                       Disposition of Applications



Sec. 302.207  Cases to be decided on written submissions.

    (a) Applications under this subpart will be decided on the basis of 
written submissions unless the DOT decisionmaker, on petition as 
provided in Sec. 302.208 or on his or her own initiative, determines 
that an oral presentation or an administrative law judge's decision is 
required because:
    (1) Use of written procedures will prejudice a party;
    (2) Material issues of decisional fact cannot adequately be resolved 
without oral evidentiary hearing procedures; or
    (3) Assignment of an application for oral evidentiary hearing 
procedures or an initial or recommended decision by an administrative 
law judge is otherwise required by the public interest.
    (b) The standards employed in deciding cases under Sec. 
302.210(a)(1) or (5) shall be the same as the standards applied in cases 
decided under Sec. 302.210(a)(4). These are the standards set forth in 
the Statute as interpreted and expanded upon under that Statute.



Sec. 302.208  Petitions for oral presentation or judge's decision.

    (a) Any person may file a petition for oral evidentiary hearing, 
oral argument, an initial or recommended decision, or any combination of 
these. Petitions shall demonstrate that one or more of the criteria set 
forth in Sec. 302.207 are applicable to the issues for which an oral 
presentation or judge's decision is requested. Such petitions shall be 
supported by a detailed explanation of the following:
    (1) Why the evidence or argument to be presented cannot be submitted 
in the form of written evidence or briefs;
    (2) Which issues should be examined by an administrative law judge 
and why such issues should not be presented directly to the DOT 
decisionmaker for decision;
    (3) An estimate of the time required for the oral presentation and 
the number of witnesses whom the petitioner would present; and
    (4) If cross-examination of any witness is desired, the name of the 
witness, if known, the subject matter of the desired cross-examination 
or the title or number of the exhibit to be cross-examined, what the 
petitioner expects to establish by the cross-examination, and an 
estimate of the time needed for it.
    (b) Petitions for an oral hearing, oral argument, or an 
administrative law judge's decision shall be filed no later than the due 
date for answers in proceedings governed by Sec. 302.211, Sec. 302.212

[[Page 298]]

and Sec. 302.213, and be accompanied with the information specified in 
paragraphs (a)(1) and (a)(2) of this section. Filing of the information 
required in paragraphs (a)(3) and (a)(4) of this section may be deferred 
until the DOT decisionmaker has decided to hold a formal proceeding.
    (c) Where a stipulation of disputed facts would eliminate the need 
for an oral presentation or an administrative law judge's decision, 
parties shall include in their petitions an offer to withdraw the 
request should the stipulation be made.



Sec. 302.209  Procedures for deferral of applications.

    Within twenty-eight (28) days after the filing of an application 
under this subpart, the DOT decisionmaker may defer further processing 
of the application until all of the information necessary to process 
that application is submitted. The time periods contained in this 
subpart with respect to the disposition of the application shall not 
begin to run until the application is complete. In addition, the DOT 
decisionmaker may defer action on a foreign air carrier permit 
application for foreign policy reasons.



Sec. 302.210  Disposition of applications; orders establishing further procedures.

    (a) General requirements. The DOT decisionmaker will take one of the 
following actions with respect to all or any portion of each 
application:
    (1) Issue an Order to Show Cause why the application should not be 
granted, denied or dismissed, in whole or in part.
    (2) Issue a Final Order granting the application if the DOT 
decisionmaker determines that there are no material issues of fact that 
warrant further procedures for their resolution.
    (3) Issue a Final Order dismissing or rejecting the application for 
lack of prosecution or if the application does not comply with this 
subpart or is otherwise materially deficient.
    (4) Issue an order setting the application for oral evidentiary 
hearing. The order will establish the scope of the issues to be 
considered and the procedures to be employed, and will indicate whether 
one or more attorneys from the Office of the Assistant General Counsel 
for Aviation Enforcement and Proceedings will participate as a party. 
All of the procedures set forth in Sec. 302.214 through Sec. 302.218 
will apply unless the DOT decisionmaker decides otherwise.
    (5) Begin to make a determination with respect to the application 
under simplified procedures without oral evidentiary hearing. In this 
event, the DOT decisionmaker may indicate which, if any, of the 
procedural steps set forth in Sec. 302.215 through Sec. 302.219 will 
be employed. The DOT decisionmaker may also indicate that other non-oral 
evidentiary hearing procedures will be employed.
    (b) Additional evidence. An order establishing further procedures 
under paragraph (a)(1), (4) or (5) of this section may provide for the 
filing of additional evidence.
    (c) Petitions for reconsideration. Petitions for reconsideration of 
an order issued under this section will not be entertained except to the 
extent that the order dismissed or rejected all or part of an 
application. If a petition for reconsideration results in the 
reinstatement of all or part of an application, the deadline for final 
Department decision established in Sec. 302.220 will be calculated from 
the date of the order reinstating the application.



Sec. 302.211  Procedures in certificate cases involving initial or continuing fitness.

    (a) Applicability. This section applies to cases involving 
certificate authority under sections 41102 and 41103 of the Statute, 
including applications for new authority, renewals, amendments, 
modifications, suspensions, and transfers of such certificates, where 
the issues involve a determination of the applicant's fitness to 
operate. Where such applications propose the operation of scheduled 
service in limited entry international markets, the provisions of Sec. 
302.212 also apply.
    (b) Order establishing further procedures. Within 90 days after a 
complete application is filed, the DOT decisionmaker will take action as 
provided in Sec. 302.210.

[[Page 299]]



Sec. 302.212  Procedures in certificate cases involving international routes.

    (a) Applicability. This section applies to cases involving 
certificates under section 41102 of the Statute that involve 
international routes, including applications to obtain, renew, amend, 
transfer, or remove restrictions in such certificates.
    (b) Answers to applications. Answers shall be filed within twenty 
one (21) days after the filing of the original application.
    (c) Conforming applications or motions to modify scope. Any person 
may file an application for the same authority as sought in an 
application to obtain, renew, or amend a certificate filed under 
paragraph (a) of this section. Requests to modify the issues to be 
decided and to consolidate applications filed in other dockets shall be 
filed as a ``motion to modify scope.'' Motions and applications under 
this section shall include economic data, other facts, and any argument 
in support of the person's position and must be filed within twenty one 
(21) days after the original application is filed. Later-filed competing 
applications shall conform to the base and forecast years used by the 
original applicant and need not contain traffic and financial data for 
markets for which data have already been submitted by another person.
    (d) Answers to conforming applications or motions to modify scope. 
Answers to conforming applications and motions to modify scope filed in 
accordance with paragraph (b) of this section shall be filed within 
fourteen (14) days after the filing of the conforming application or 
motion. Answers may argue that an application should be dismissed. 
Answers may also seek to consolidate an application filed in another 
docket if that application conforms to the scope of the proceeding 
proposed in the motion to modify scope and includes the information 
prescribed in Sec. 302.202. Answers and applications shall not, 
however, propose the consideration of additional markets.
    (e) Order establishing further procedures. Within 90 days after a 
complete application is filed, the DOT decisionmaker will issue an order 
as provided in Sec. 302.210.



Sec. 302.213  Procedures in foreign air carrier permit cases.

    (a) Applicability. This section applies to cases involving foreign 
air carrier permits under section 41302 of the Statute, including 
applications for new authority, renewals, amendments, modifications, 
suspensions, and transfers of such permits.
    (b) Executive departments. In addition to the standards set forth in 
Sec. 302.207(b), the views of other executive agencies, such as the 
Department of State, and the Federal Aviation Administration's 
evaluation of the applicant's operational fitness, may be sought in 
determining the appropriate action on applications filed under this 
section.
    (c) Order establishing further procedures. As soon as possible after 
the date that answers are due and all information needed to reach a 
decision is filed, the DOT decisionmaker will issue an order as provided 
in Sec. 302.210.



Sec. 302.214  Oral evidentiary hearing.

    If the DOT decisionmaker determines under Sec. 302.210(a)(4) that 
an oral evidentiary hearing should be held, the application or 
applications will be set for oral hearing before an administrative law 
judge. The issues will be those set forth in the order establishing 
further procedures. The procedures in Sec. 302.17 to Sec. 302.38 
governing the conduct of oral evidentiary hearings will apply.



Sec. 302.215  Briefs to the administrative law judge.

    Briefs to the administrative law judge shall be filed within the 
following periods, as applicable:
    (a) Fourteen (14) days after the close of the oral evidentiary 
hearing, unless the administrative law judge determines that, under the 
circumstances of the case, briefs are not necessary or that the parties 
will require more time to prepare briefs; or
    (b) Fourteen (14) days after the filing of additional evidence 
called for in the order establishing further procedures if no oral 
evidentiary hearing is called for, unless the DOT decisionmaker 
determines that some other period should be allowed.

[[Page 300]]



Sec. 302.216  Administrative law judge's initial or recommended decision.

    (a) In a case that has been set for oral evidentiary hearing under 
Sec. 302.210(a)(4), the administrative law judge shall adopt and serve 
an initial or recommended decision within one hundred thirty-six (136) 
days after the issuance of the order establishing further procedures 
unless:
    (1) The DOT decisionmaker, having found extraordinary circumstances, 
has by order delayed the initial or recommended decision by a period of 
not more than thirty (30) days; or
    (2) An applicant has failed to meet the procedural schedule adopted 
by the judge or the DOT decisionmaker. In this case, the administrative 
law judge may, by notice, extend the due date for the issuance of an 
initial or recommended decision for a period not to exceed the period of 
delay caused by the applicant.
    (b) In a case in which some of the issues have not been set for oral 
hearing under Sec. 302.210(a)(4), the administrative law judge shall 
adopt and serve an initial or recommended decision within the time 
established by the DOT decisionmaker in the order establishing further 
procedures, except that that due date may be extended in accordance with 
paragraph (a)(2) of this section.
    (c) The initial or recommended decision shall be issued by the 
administrative law judge fourteen (14) days after it is served. Unless 
exceptions are filed under Sec. 302.217 or the DOT decisionmaker issues 
an order to review on his or her own initiative, an initial decision 
shall become effective as the final order of the Department the day it 
is issued. Where exceptions are timely filed or the DOT decisionmaker 
takes action to review on his or her own initiative, the effectiveness 
of the initial decision is stayed until further order of the DOT 
decisionmaker.
    (d) In all other respects, the provisions of Sec. 302.31 shall 
apply.



Sec. 302.217  Exceptions to administrative law judge's initial or recommended decision.

    (a) Within seven (7) days after service of any initial or 
recommended decision of an administrative law judge, any party may file 
exceptions to the decision with the DOT decisionmaker.
    (b) If timely and adequate exceptions are filed, review of the 
initial or recommended decision is automatic.
    (c) In all other respects, the provisions of Sec. 302.34 shall 
apply.



Sec. 302.218  Briefs to the DOT decisionmaker.

    (a) In a case in which an initial or recommended decision has been 
served and exceptions have been filed, any party may file a brief in 
support of or in opposition to any exceptions. Such briefs shall be 
filed within fourteen (14) days after service of the initial or 
recommended decision.
    (b) In a case in which no exceptions have been filed, briefs shall 
not be filed unless the DOT decisionmaker has taken review of the 
initial or recommended decision on his or her own initiative and has 
specifically provided for the filing of such briefs.
    (c) In all other respect, the provisions of Sec. 302.35 shall 
apply.



Sec. 302.219  Oral argument before the DOT decisionmaker.

    If the order establishing further procedures provides for an oral 
argument, or if the DOT decisionmaker otherwise decides to hear oral 
argument, all parties will be notified of the date and hour set for that 
argument and the amount of time allowed each party. The provisions of 
Sec. 302.36(b) shall also apply.



Sec. 302.220  Final decision of the Department.

    In addition to the provisions of Sec. 302.38, the following 
provisions shall apply:
    (a) In the case of a certificate application that has been set for 
oral evidentiary hearing under Sec. 302.210(a)(4), the Department will 
issue its final order within ninety (90) days after the initial or 
recommended decision is issued. If an application has failed to meet the 
procedural schedule established by the Department, the DOT decisionmaker 
may, by notice, extend the date for a final decision for a period equal 
to the period of delay caused by the applicant.

[[Page 301]]

    (b) If the DOT decisionmaker does not act in the time period 
established in paragraph (a) of this section:
    (1) in the case of an application for a certificate to engage in 
foreign air transportation, the recommended decision shall be 
transmitted to the President of the United States under 49 U.S.C. 41307; 
or
    (2) in the case of an application not subject to review by the 
President of the United States, the initial decision shall become 
effective as the final order of the Department.
    (c) In the case of a certificate application that has been processed 
under Sec. 302.210(a)(1) or (5), the Department will issue its final 
order within one hundred eighty (180) days after the order establishing 
further procedures. If an applicant has failed to meet the procedural 
schedule established by the Department, the DOT decisionmaker may, by 
notice, extend the due date for a final decision for a period equal to 
the period of delay caused by the applicant.



  Subpart C_Rules Applicable to Exemption and Certain Other Proceedings



Sec. 302.301  Applicability.

    (a) This subpart sets forth the specific rules applicable to 
proceedings for exemptions under sections 40109 and 41714 of the 
Statute, including the granting of emergency exemptions, as well as 
applications for frequency allocations and other limited authority under 
international agreements. Except as modified by this subpart, the 
provisions of subpart A of this part apply.
    (b) Proceedings for the issuance of exemptions by regulation are 
subject to the provisions governing rulemaking.



Sec. 302.302  Filing of applications.

    (a) Except as provided in paragraphs (b) and (c) of this section, 
applications for exemption shall conform to the requirements of 
Sec. Sec. 302.3 and 302.4.
    (b) Applications for exemption from section 41101 or 41301 of the 
Statute (including those that incorporate an exemption from section 
41504) that involve ten (10) or fewer flights may be submitted to the 
U.S. Air Carrier Licensing Division or the Foreign Air Carrier Licensing 
Division (as appropriate), Office of International Aviation, on OST Form 
4536. However, that form may not be used for:
    (1) Applications filed under section 40109(g) of the Statute;
    (2) Applications by persons who do not have either:
    (i) An effective air carrier certificate or foreign air carrier 
permit from the Department, or
    (ii) A properly completed application for such a certificate or 
permit, and an effective exemption from the Department for operations 
similar to those proposed;
    (3) Successive applications for the same or similar authority that 
would total more than ten (10) flights; or
    (4) Any other application for which the Department decides the 
requirements of Sec. Sec. 302.3 and 302.4 are more appropriate. Upon a 
showing of good cause, an application may be filed by cablegram, 
telegram, facsimile, electronic mail (when available), or telephone; all 
such telephonic requests must be confirmed by written application within 
three (3) business days of the original request.
    (c) Applications for exemption from Chapter 415 of the Statute, from 
tariffs (except for waivers filed under subpart Q of part 221 of this 
chapter), or from Department regulations concerning tariffs may be 
submitted by letter. Three copies of such applications shall be sent to 
Department of Transportation Dockets. Upon a showing of good cause, the 
application may also be filed by cablegram, telegram, facsimile, 
electronic mail (when available), or telephone; all such requests must 
be confirmed by written application within three (3) business days of 
the original request.
    (d) Applications filed under paragraph (a) of this section shall be 
docketed and any additional documents filed shall be identified by the 
assigned docket number.
    (e) Applications filed under paragraph (b) or (c) of this section 
will normally not be docketed. The Department may require such 
applications to

[[Page 302]]

be docketed if appropriate. The Department will publish a notice of such 
applications in its Weekly List of Applications Filed.



Sec. 302.303  Contents of applications.

    (a) Title. An application filed under Sec. 302.302(a) shall be 
entitled ``Application for . . .'' (followed by the type of authority 
request, e.g., exemption, frequency allocation) and, where applicable, 
shall state if the application involves renewal and/or amendment of 
existing exemption authority.
    (b) Factual statement. Each application shall state:
    (1) The section(s) of the Statute or the rule, regulation, term, 
condition, or limitation from which the exemption is requested;
    (2) The proposed effective date and duration of the exemption;
    (3) A description of how the applicant proposes to exercise the 
authority (for example, applications for exemption from section 41101 or 
41301 of the Statute should include at least: places to be served; 
equipment types, capacity and source; type and frequency or service; and 
other operations that the proposed service will connect with or 
support); and
    (4) Any other facts the applicant relies upon to establish that the 
proposed service will be consistent with the public interest.
    (c) Supporting evidence. (1) Each application shall be accompanied 
by:
    (i) A statement of economic data, or other matters or information 
that the applicant desires the Department to officially notice;
    (ii) Affidavits, or statements under penalty of 18 U.S.C. 1001, 
establishing any other facts the applicant wants the Department to rely 
upon; and
    (iii) Information showing the applicant is qualified to perform the 
proposed services.
    (2) In addition to the information required by paragraph (c)(1) of 
this section, an application for exemption from section 41101 or 41301 
of the Statute (except exemptions under section 40109(g)) shall state 
whether the authority sought is governed by a bilateral agreement or by 
principles of comity and reciprocity. Applications by foreign carriers 
shall state whether the applicant's homeland government grants U.S. 
carriers authority similar to that requested. If so, the application 
shall state whether the fact of reciprocity has been established by the 
Department and cite the pertinent finding. If the fact of reciprocity 
has not been established by the Department, the application shall 
include documentation to establish such reciprocity.
    (d) Emergency cabotage. Applications under section 40109(g) of the 
Statute shall, in addition to the information required in paragraphs (b) 
and (c) of this section, contain evidence showing that:
    (1) Because of an emergency created by unusual circumstances not 
arising in the normal course of business, traffic in the markets 
requested cannot be accommodated by air carriers holding certificates 
under section 41102 of the Statute;
    (2) All possible efforts have been made to accommodate the traffic 
by using the resources of such air carriers (including, for example, the 
use of foreign aircraft, or sections of foreign aircraft, under lease or 
charter to such air carriers, and the use of such air carriers' 
reservation systems to the extent practicable);
    (3) The authority requested is necessary to avoid unreasonable 
hardship for the traffic in the market that cannot be accommodated by 
air carriers; and
    (4) In any case where an inability to accommodate traffic in a 
market results from a labor dispute, the grant of the requested 
exemption will not result in an unreasonable advantage to any party in 
the dispute.
    (e) Renewal applications. An application requesting renewal of an 
exemption or other limited authority under this subpart that is intended 
to invoke the automatic extension provisions of 5 U.S.C. 558(c) shall 
comply with, and contain the statements and information required by part 
377 of this chapter.
    (f) Record of service. An application shall list the parties served 
as required by Sec. 302.304.

[[Page 303]]



Sec. 302.304  Service of documents.

    (a) General requirements. (1) An application for exemption and 
responsive pleadings shall be served as provided by Sec. 302.7.
    (2) Applicants shall serve on the persons listed in paragraph (b) of 
this section a complete copy of the application and any supporting 
documents. Responsive pleadings shall be served on the same persons as 
applications.
    (b) Persons to be served. (1) Applicants for scheduled interstate 
air transportation authority shall serve:
    (i) All U.S. air carriers (including commuter air carriers) that 
publish schedules in the Official Airline Guide or the Air Cargo Guide 
for the city-pair market(s) specified in the application,
    (ii) The airport authority of each U.S. airport that the applicant 
proposes to serve, and
    (iii) Any other person who has filed a pleading in a related 
proceeding under section 41102, 41302, or 40109 of the Statute.
    (2) Applicants for scheduled foreign air transportation authority 
shall serve:
    (i) All U.S. air carriers (including commuter air carriers) that 
publish schedules in the Official Airline Guide or in the Air Cargo 
Guide for the country-pair market(s) specified in the application,
    (ii)The airport authority of each U.S. airport that the applicant 
proposes to serve, and
    (iii) Any other person who has filed a pleading in a related 
proceeding under section 41102, 41302, or 40109 of the Statute.
    (3) Applicants for charter-only or nonscheduled-only authority shall 
serve any person who has filed a pleading in a related proceeding under 
section 41102, 41302, or 40109 of the Statute. However, applicants that 
file fewer than sixteen (16) days prior to the proposed start of service 
must also serve:
    (i) Those U.S. carriers (including commuter carriers) that are known 
to be operating in the general market(s) at issue and
    (ii) Those persons who may be presumed to have an interest in the 
subject matter of the application.
    (4) Applicants for slot exemptions under section 41714 of the 
Statute shall serve:
    (i) All U.S. air carriers (including commuter air carriers) that 
publish schedules in the Official Airline Guide or the Air Cargo Guide 
for the airport(s) specified in the application,
    (ii) The manager of each of the affected airports,
    (iii) The mayor of the city that each affected airport serves,
    (iv) The Governor of the State in which each affected airport is 
located, and
    (v) Any other person who has filed a pleading in a related 
proceeding under section 41714 of the Statute.
    (5) Additional service. The Department may, in its discretion, order 
additional service upon any other person.

[Doc. No. OST-97-2090, 65 FR 6457, Feb. 9, 2000; 65 FR 7418, Feb. 14, 
2000]



Sec. 302.305  Posting of applications.

    A copy of every docketed application for exemption shall be posted 
in Department of Transportation Dockets and listed in the Department's 
Weekly List of Applications Filed. A copy of every undocketed 
application shall be posted in the Licensing Division's lobby of the 
Office of International Aviation.



Sec. 302.306  Dismissal or rejection of incomplete applications.

    (a) Dismissal or rejection. The Department may dismiss or reject any 
application for exemption that does not comply with the requirements of 
this part.
    (b) Additional data. The Department may require the filing of 
additional data with respect to any application for exemption, answer, 
or reply.



Sec. 302.307  Answers to applications.

    Within fifteen (15) days after the filing of an application for 
exemption, any person may file an answer in support of or in opposition 
to the grant of a requested exemption. Such answer shall set forth in 
detail the reasons why the exemption should be granted or denied. An 
answer shall include a statement of economic data or other matters the 
Department is requested

[[Page 304]]

to officially notice, and shall be accompanied by affidavits 
establishing any other facts relied upon.



Sec. 302.308  Replies to answers.

    Within seven (7) days after the last day for filing an answer, any 
interested party may file a reply to one or more answers.



Sec. 302.309  Requests for hearing.

    The Department will not normally conduct oral evidentiary hearings 
concerning applications for exemption. However, the Department may, in 
its discretion, order such a hearing on an application. Any applicant, 
or any person opposing an application, may request an oral evidentiary 
hearing. Such a request shall set forth in detail the reasons why the 
filing of affidavits or other written evidence will not permit the fair 
and expeditious disposition of the application. A request relying on 
factual assertions shall be accompanied by affidavits establishing such 
facts. If the Department orders an oral evidentiary hearing, the 
procedures in subpart A of this part shall apply.



Sec. 302.310  Exemptions on the Department's initiative.

    The Department may grant exemptions on its own initiative when it 
finds that such exemptions are required by the circumstances and 
consistent with the public interest.



Sec. 302.311  Emergency exemptions.

    (a) Shortened procedures. When required by the circumstances and 
consistent with the public interest, the Department may take action, 
without notice, on exemption applications prior to the expiration of the 
normal period for filing answers and replies. When required in a 
particular proceeding, the Department may specify a lesser time for the 
filing of answers and replies, and notify interested persons of this 
time period.
    (b)(1) Applications. Applications for emergency exemption need not 
conform to the requirements of this subpart or of subpart A of this part 
(except as provided in this section and in Sec. 302.303(d) concerning 
emergency cabotage requests). However, an application for emergency 
exemption must normally be in writing and must state in detail the facts 
and evidence that support the application, the grounds for the 
exemption, and the public interest basis for the authority sought. In 
addition, the application shall state specific reasons that justify 
departure from the normal exemption application procedures. The 
application shall also identify those persons notified as required by 
paragraph (c) of this section. The Department may require additional 
information from any applicant before acting on an application.
    (2) Oral requests. The Department will consider oral requests, 
including telephone requests, for emergency exemption authority under 
this section in circumstances that do not permit the immediate filing of 
a written application. All oral requests must, however, provide the 
information required in paragraph (b)(1) of this section, except that 
actual evidence in support of the application need not be tendered when 
the request is made. All oral requests must be confirmed by written 
application, together with all supporting evidence, within three (3) 
business days of the original request.
    (c) Notice. Except when the Department decides that no notice need 
be given, applicants for emergency exemption shall notify, as 
appropriate, those persons specified in Sec. 302.304(b) of this 
subpart. Such notification shall be made in the same manner, contain the 
same information, and be dispatched at the same time, as the application 
made to the Department.



          Subpart D_Rules Applicable to Enforcement Proceedings



Sec. 302.401  Applicability.

    This subpart contains the specific rules that apply to Department 
proceedings to enforce the provisions of Subtitle VII of the Statute, 
and the rules, regulations, orders and other requirements issued by the 
Department, as well as the filing of informal and formal complaints. 
Except as modified by this subpart, the provisions of subpart A of this 
part apply.



Sec. 302.402  Definitions.

    Assistant General Counsel, when used in this subpart, refers to the 
Assistant

[[Page 305]]

General Counsel for Aviation Enforcement and Proceedings.
    Complainant refers to the person filing a complaint.
    Parties, when used in this subpart, include the Office of the 
Assistant General Counsel, the respondent, the complainant, and any 
other person permitted to intervene under Sec. 302.20.
    Respondent refers to the person against whom a complaint is filed.



Sec. 302.403  Informal complaints.

    Any person may submit in writing to the Assistant General Counsel an 
informal complaint with respect to anything done or omitted to be done 
by any person in contravention of any provision of the Statute or any 
requirement established thereunder. Such informal complaints need not 
otherwise comply with the provisions of this part. Matters so presented 
may, if their nature warrants, be handled by correspondence or 
conference with the appropriate persons. Any matter not disposed of 
informally may be made the subject of an enforcement proceeding pursuant 
to this subpart. The filing of an informal complaint shall not bar the 
subsequent filing of a formal complaint.



Sec. 302.404  Formal complaints.

    (a) Filing. Any person may make a formal complaint to the Assistant 
General Counsel about any violation of the economic regulatory 
provisions of the Statute or of the Department's rules, regulations, 
orders, or other requirements. Every formal complaint shall conform to 
the requirements of Sec. 302.3 and Sec. 302.4, concerning the form and 
filing of documents. The filing of a complaint shall result in the 
institution of an enforcement proceeding only if the Assistant General 
Counsel issues a notice instituting such a proceeding as to all or part 
of the complaint under Sec. 302.406(a) or the Deputy General Counsel 
does so under Sec. 302.406(c).
    (b) Amendment. A formal complaint may be amended at any time before 
service of an answer to the complaint. After service of an answer but 
before institution of an enforcement proceeding, the complaint may be 
amended with the permission of the Assistant General Counsel. After 
institution of an enforcement proceeding, the complaint may be amended 
only on grant of a motion filed under Sec. 302.11.
    (c) Insufficiency of formal complaint. In any case where the 
Assistant General Counsel is of the opinion that a complaint does not 
sufficiently set forth matters required by any applicable rule, 
regulation or order of the Department, or is otherwise insufficient, he 
or she may advise the complainant of the deficiency and require that any 
additional information be supplied by amendment.
    (d) Joinder of complaints or complainants. Two or more grounds of 
complaints involving substantially the same purposes, subject or state 
of facts may be included in one complaint even though they involve more 
than one respondent. Two or more complainants may join in one complaint 
if their respective causes of complaint are against the same party or 
parties and involve substantially the same purposes, subject or state of 
facts. The Assistant General Counsel may separate or split complaints if 
he or she finds that the joinder of complaints, complainants, or 
respondents will not be conducive to the proper dispatch of the 
Department's business or the ends of justice.
    (e) Service. A formal complaint, and any amendments thereto, shall 
be served by the person filing such documents upon each party complained 
of, upon the Deputy General Counsel, and upon the Assistant General 
Counsel.



Sec. 302.405  Responsive documents.

    (a) Answers. Within fifteen (15) days after the date of service of a 
formal complaint, each respondent shall file an answer in conformance 
with and subject to the requirements of Sec. 302.408(b). Extensions of 
time for filing an answer may be granted by the Assistant General 
Counsel for good cause shown.
    (b) Offers to satisfy. A respondent in a formal complaint may offer 
to satisfy the complaint through submission of facts, offer of 
settlement or proposal of adjustment. Such offer shall be in writing and 
shall be served, within fifteen (15) days after service of the 
complaint, upon the same persons and in the same manner as an answer. 
The submittal of

[[Page 306]]

an offer to satisfy the complaint shall not excuse the filing of an 
answer.
    (c) Motions to dismiss. Motions to dismiss a formal complaint shall 
not be filed prior to the filing of a notice instituting an enforcement 
proceeding with respect to such complaint or a portion thereof.



Sec. 302.406  Procedure for responding to formal complaints.

    (a) Within a reasonable time after an answer to a formal complaint 
is filed, the Assistant General Counsel shall either:
    (1) Issue a notice instituting a formal enforcement proceeding in 
accordance with Sec. 302.407 or
    (2) Issue an order dismissing the complaint in whole or in part, 
stating the reasons for such dismissal.
    (b) An order dismissing a complaint issued pursuant to paragraph 
(a)(2) of this section shall become effective as a final order of the 
Department thirty (30) days after service thereof.
    (c) Whenever the Assistant General Counsel has failed to act on a 
formal complaint within a reasonable time after an answer is due, the 
following motions may be addressed to the Deputy General Counsel:
    (1) By the complainant to institute an enforcement proceeding by 
docketing the complaint upon a showing that it is in the public interest 
to do so; and
    (2) By the respondent to dismiss the complaint upon a showing that 
it is in the public interest to do so.
    (d) The Deputy General Counsel may grant, deny, or defer any of the 
motions, in whole or in part, and take appropriate action to carry out 
his or her decision.



Sec. 302.407  Commencement of enforcement proceeding.

    (a) Whenever in the opinion of the Assistant General Counsel there 
are reasonable grounds to believe that any economic regulatory provision 
of the Statute, or any rule, regulation, order, limitation, condition, 
or other requirement established pursuant thereto, has been or is being 
violated, that efforts to satisfy a complaint as provided by Sec. 
302.405 have failed, and that the investigation of any or all of the 
alleged violations is in the public interest, the Assistant General 
Counsel may issue a notice instituting an enforcement proceeding before 
an administrative law judge.
    (b) The notice shall incorporate by reference the formal complaint 
submitted pursuant to Sec. 302.404 or shall be accompanied by a 
complaint by an attorney from the Office of the Assistant General 
Counsel. The notice and accompanying complaint, if any, shall be 
formally served upon each respondent and each complainant.
    (c) The proceedings thus instituted shall be processed in regular 
course in accordance with this part. However, nothing in this part shall 
be construed to limit the authority of the Department to institute or 
conduct any investigation or inquiry within its jurisdiction in any 
other manner or according to any other procedures that it may deem 
necessary or proper.
    (d) Whenever the Assistant General Counsel seeks an assessment of 
civil penalties in an enforcement proceeding, he or she shall serve on 
all parties to the proceeding a notice of the violations alleged and the 
amount of penalties for which the respondent may be liable. The notice 
may be included in the notice instituting a formal enforcement 
proceeding or in a separate document.
    (e) In any proceeding in which civil penalties are sought, any 
decisions issued by the Department shall state the amount of any civil 
penalties assessed upon a finding of violation, and the time and manner 
in which payment shall be made to the United States.



Sec. 302.408  Answers and replies.

    (a) Within fifteen (15) days after the date of service of a notice 
issued pursuant to Sec. 302.407, the respondent shall file an answer to 
the complaint attached thereto or incorporated therein unless an answer 
has already been filed in accordance with Sec. 302.405. Any requests 
for extension of time for filing of an answer to such complaint shall be 
filed in accordance with Sec. 302.11.
    (b) All answers shall be served in accordance with Sec. 302.7 and 
shall fully and completely advise the parties and the

[[Page 307]]

Department as to the nature of the defense and shall admit or deny 
specifically and in detail each allegation of the complaint unless the 
respondent is without knowledge, in which case, his or her answer shall 
so state and the statement shall operate as a denial. Allegations of 
fact not denied or controverted shall be deemed admitted. Matters 
alleged as affirmative defenses shall be separately stated and numbered 
and shall, in the absence of a reply, be deemed to be controverted. Any 
answer to a complaint, or response to a notice, proposing the assessment 
of civil penalties shall specifically present any matters that the 
respondent intends to rely upon in opposition to, or in mitigation of, 
such civil penalties.
    (c) The DOT decisionmaker or the administrative law judge may, in 
his or her discretion, require or permit the filing of a reply in 
appropriate cases; otherwise, no reply may be filed.



Sec. 302.409  Default.

    Failure of a respondent to file and serve an answer within the time 
and in the manner prescribed by Sec. 302.408 shall be deemed to 
authorize the DOT decisionmaker or administrative law judge, as a matter 
of discretion, to find the facts alleged in the complaint incorporated 
in or accompanying the notice instituting a formal enforcement 
proceeding to be true and to enter such orders as may be appropriate 
without notice or hearing, or, as a matter of discretion, to proceed to 
take proof, without notice, of the allegations or charges set forth in 
the complaint or order; Provided, that the DOT decisionmaker or 
administrative law judge may permit late filing of an answer for good 
cause shown.



Sec. 302.410  Consolidation of proceedings.

    The DOT decisionmaker or Chief Administrative Law Judge may, upon 
his or her own initiative, or upon motion of any party, consolidate for 
hearing or for other purposes, or may contemporaneously consider, two or 
more enforcement proceedings that involve substantially the same parties 
or issues that are the same or closely related, if he or she finds that 
such consolidation or contemporaneous hearing will be conducive to the 
dispatch of business and to the ends of justice and will not unduly 
delay the proceedings.



Sec. 302.411  Motions to dismiss and for summary judgment.

    (a) At any time after an answer has been filed, any party may file 
with the DOT decisionmaker or the administrative law judge a motion to 
dismiss or a motion for summary judgment, including supporting 
affidavits. The procedure on such motions shall be in accordance with 
the Federal Rules of Civil Procedure (28 U.S.C.), particularly Rules 
6(d), 7(b), 12, and 56, except that answers and supporting papers to a 
motion to dismiss or for summary judgment shall be filed within seven 
(7) days after service of the motion.
    (b) Parties may petition the DOT decisionmaker to review any action 
by the administrative law judge granting summary judgment or dismissing 
an enforcement proceeding under the procedure established for review of 
an initial decision in Sec. 302.32.



Sec. 302.412  Admissions as to facts and documents.

    (a) At any time after an answer has been filed, any party may file 
with the DOT decisionmaker or administrative law judge and serve upon 
the opposing side a written request for the admission of the genuineness 
and authenticity of any relevant documents described in and exhibited 
with the request or for the admission of the truth of any relevant 
matters of fact stated in the request with respect to such documents.
    (b) Each of the matters of which an admission is requested shall be 
deemed admitted unless within a period designated in the request, not 
less than ten (10) days after service thereof, or within such further 
time as the DOT decisionmaker or the administrative law judge may allow 
upon motion and notice, the party to whom the request is directed serves 
upon the requesting party a sworn statement either denying specifically 
the matters of which an admission is requested or setting forth in 
detail the reasons why he or she cannot truthfully either admit or deny 
such matters.

[[Page 308]]

    (c) Service of such request and answering statement shall be made as 
provided in Sec. 302.7. Any admission made by a party pursuant to such 
request is only for the purposes of the pending proceeding, or any 
proceeding or action instituted for the enforcement of any order entered 
therein, and shall not constitute an admission by him or her for any 
other purpose or be used against him or her in any other proceeding or 
action.



Sec. 302.413  Evidence of previous violations.

    Evidence of previous violations by any person or of any provision of 
the Statute or any requirement thereunder found by the Department or a 
court in any other proceeding or criminal or civil action may, if 
relevant and material, be admitted in any enforcement proceeding 
involving such person.



Sec. 302.414  Prehearing conference.

    A prehearing conference may be held in an enforcement proceeding 
whenever the administrative law judge believes that the fair and 
expeditious disposition of the proceeding requires one. If a prehearing 
conference is held, it shall be conducted in accordance with Sec. 
302.22.



Sec. 302.415  Hearing.

    After the issues have been formulated, whether by the pleadings or 
otherwise, the administrative law judge shall give the parties 
reasonable written notice of the time and place of the hearings. Except 
as may be modified by the provisions of this subpart, the procedures in 
Sec. 302.17 to Sec. 302.38 governing the conduct of oral evidentiary 
hearings will apply.



Sec. 302.416  Appearances by persons not parties.

    With consent of the administrative law judge, appearances may be 
entered without request for or grant of permission to intervene by 
interested persons who are not parties to the proceeding. Such persons 
may, with the consent of the administrative law judge, cross-examine a 
particular witness or suggest to any party or counsel therefor questions 
or interrogations to be asked witnesses called by any party, but may not 
otherwise examine witnesses and may not introduce evidence or otherwise 
participate in the proceeding. However, such persons may present to both 
the administrative law judge and the DOT decisionmaker an oral or 
written statement of their position on the issues involved in the 
proceeding.



Sec. 302.417  Settlement of proceedings.

    (a) The Deputy General Counsel and the respondent may agree to 
settle all or some of the issues in an enforcement proceeding at any 
time before a final decision is issued by the DOT decisionmaker. The 
Deputy General Counsel shall serve a copy of any proposed settlement on 
each party and shall submit the proposed settlement to the 
administrative law judge for approval. The submission of a proposed 
settlement shall not automatically delay the proceeding.
    (b) Any party to the proceeding may submit written comments 
supporting or opposing the proposed settlement within ten (10) days from 
the date of service.
    (c) The administrative law judge shall approve the proposed 
settlement, as submitted, if it appears to be in the public interest, or 
otherwise shall disapprove it.
    (d) Information relating to settlement offers and negotiations will 
be withheld from public disclosure if the Deputy General Counsel 
determines that disclosure would interfere with the likelihood of 
settlement of an enforcement proceeding.



Sec. 302.418  Motions for immediate suspension of operating authority pendente lite.

    All motions for the suspension of the economic operating authority 
of an air carrier during the pendency of proceedings to revoke such 
authority shall be filed with, and decided by, the DOT decisionmaker. 
Proceedings on the motion shall be in accordance with Sec. 302.11. In 
addition, the DOT decisionmaker shall afford the parties an opportunity 
for oral argument on such motion.

[[Page 309]]



Sec. 302.419  Modification or dissolution of enforcement actions.

    Whenever any party to a proceeding, in which an order of the 
Department has been issued pursuant to section 46101 of the Statute or 
an injunction or other form of enforcement action has been issued by a 
court of competent jurisdiction pursuant to section 46106 of the 
Statute, believes that changed conditions of fact or law or the public 
interest require that said order or judicial action be modified or set 
aside, in whole or in part, such party may file with the Department a 
motion requesting that the Department take such administrative action or 
join in applying to the appropriate court for such judicial action, as 
the case may be. The motion shall state the changes desired and the 
changed circumstances warranting such action, and shall include the 
materials and argument in support thereof. The motion shall be served on 
each party to the proceeding in which the enforcement action was taken. 
Within thirty (30) days after the service of such motion, any party so 
served may file an answer thereto. The Department shall dispose of the 
motion by such procedure as it deems appropriate.



Sec. 302.420  Saving clause.

    Repeal, revision or amendment of any of the economic regulatory 
provisions of the Statute or of the Department's rules, regulations, 
orders, or other requirements shall not affect any pending enforcement 
proceeding or any enforcement proceeding initiated thereafter with 
respect to causes arising or acts committed prior to said repeal, 
revision or amendment, unless the act of repeal, revision or amendment 
specifically so provides.



 Subpart E_Rules Applicable to Proceedings With Respect to Rates, Fares 
               and Charges for Foreign Air Transportation



Sec. 302.501  Applicability.

    This subpart sets forth the special rules applicable to proceedings 
with respect to rates, fares and charges in foreign air transportation 
under Chapter 415 of the Statute. Except as modified by this subpart, 
the provisions of subpart A apply.



Sec. 302.502  Institution of proceedings.

    A proceeding to determine the lawfulness of rates, fares, or charges 
for the foreign air transportation of persons or property by aircraft, 
or the lawfulness of any classification, rule, regulation, or practice 
affecting such rates, fares or charges, may be instituted by the filing 
of a petition or complaint by any person, or by the issuance of an order 
by the Department.



Sec. 302.503  Contents and service of petition or complaint.

    (a) If a petition or complaint is filed it shall state the reasons 
why the rates, fares, or charges, or the classification, rule, 
regulation, or practice complained of are unlawful and shall support 
such reasons with a full factual analysis.
    (b) A petition or complaint shall be served by the petitioner or 
complainant upon the air carrier against whose tariff provision the 
petition or complaint is filed.
    (c) Answers to complaints, other than those filed under Sec. 
302.506, shall be filed within seven (7) working days after the 
complaint is filed.



Sec. 302.504  Dismissal of petition or complaint.

    If the Department is of the opinion that a petition or complaint 
does not state facts that warrant an investigation or action on its 
part, it may dismiss such petition or complaint without hearing.



Sec. 302.505  Order of investigation.

    The Department, on its own initiative, or if it is of the opinion 
that the facts stated in a petition or complaint warrant it, may issue 
an order instituting an investigation of the lawfulness of any present 
or proposed rates, fares, or charges for the foreign air transportation 
of persons or property by aircraft or the lawfulness of any 
classification, rule, regulation, or practice affecting such rates, 
fares, or charges, and may assign the proceeding for hearing before an 
administrative law judge. If a hearing is held, except

[[Page 310]]

as modified by this subpart, the provisions of Sec. 302.17 through 
Sec. 302.38 of this part shall apply.



Sec. 302.506  Complaints requesting suspension of tariffs; answers to such complaints.

    (a) Formal complaints seeking suspension of tariffs pursuant to 
section 41509 of the Statute shall fully identify the tariff and include 
reference to:
    (1) The issued or posting date,
    (2) The effective date,
    (3) The name of the publishing carrier or agent,
    (4) The Department number, and
    (5) Specific items or particular provisions protested or complained 
against. The complaint should indicate in what respect the tariff is 
considered to be unlawful, and state what complainant suggests by way of 
substitution.
    (b) A complaint requesting suspension of a tariff ordinarily will 
not be considered unless made in conformity with this section and filed 
no more than ten (10) days after the issued date contained within such 
tariff.
    (c) A complaint requesting suspension, pursuant to section 41509 of 
the Statute, of an existing tariff for foreign air transportation may be 
filed at any time. However, such a complaint must be accompanied by a 
statement setting forth compelling reasons for not having requested 
suspension within the time limitations provided in paragraph (b) of this 
section.
    (d) In an emergency satisfactorily shown by the complainant, and 
within the time limits herein provided, a complaint may be sent by 
facsimile, telegram, or electronic mail (when available) to the 
Department and to the carrier against whose tariff provision the 
complaint is made. Such complaint shall state the grounds relied upon, 
and must be confirmed in writing within three (3) business days and 
filed and served in accordance with this part.
    (e) Answers to complaints shall be filed within six (6) working days 
after the complaint is filed.



Sec. 302.507  Computing time for filing complaints.

    In computing the time for filing formal complaints pursuant to Sec. 
302.506, with respect to tariffs that do not contain a posting date, the 
first day preceding the effective date of the tariff shall be the first 
day counted, and the last day so counted shall be the last day for 
filing unless such day is a Saturday, Sunday, or legal holiday for the 
Department, in which event the period for filing shall be extended to 
the next successive day that is not a Saturday, Sunday, or holiday. The 
computation of the time for filing complaints as to tariffs containing a 
posting date shall be governed by Sec. 302.8.



    Subpart F_Rules Applicable to Proceedings Concerning Airport Fees



Sec. 302.601  Applicability.

    (a) This subpart contains the specific rules that apply to a 
complaint filed by one or more air carriers or foreign air carriers 
(``carriers''), pursuant to 49 U.S.C. 47129(a), for a determination of 
the reasonableness of a fee increase or a newly established fee for 
aeronautical uses that is imposed upon the carrier by the owner or 
operator of an airport. This subpart also applies to requests by the 
owner or operator of an airport for such a determination. An airport 
owner or operator is considered to have imposed a fee on a carrier when 
it has taken all steps necessary under its procedures to establish the 
fee, whether or not the fee is being collected or carriers are currently 
required to pay it.
    (b) This subpart does not apply to--
    (1) A fee imposed pursuant to a written agreement with a carrier 
using the facilities of an airport;
    (2) A fee imposed pursuant to a financing agreement or covenant 
entered into prior to August 23, 1994, or
    (3) Any other existing fee not in dispute as of August 23, 1994.
    (c) Except as modified by this subpart, the provisions of subpart A 
of this part apply.



Sec. 302.602  Complaint by a carrier; request for determination by an airport owner or operator.

    (a) Any carrier may file a complaint with the Secretary for a 
determination as to the reasonableness of any fee imposed on the carrier 
by the owner or operator of an airport. Any airport

[[Page 311]]

owner or operator may also request such a determination with respect to 
a fee it has imposed on one or more carriers. The complaint or request 
for determination shall conform to the requirements of this subpart and 
Sec. Sec. 302.3 and 302.4 concerning the form and filing of documents.
    (b) If a carrier has previously filed a complaint with respect to 
the same airport fee or fees, any complaint by another carrier and any 
airport request for determination shall be filed no later than seven (7) 
calendar days following the initial complaint. In addition, all 
complaints or requests for determination must be filed on or before the 
sixtieth (60th) day after the carrier receives written notice of the 
imposition of the new fee or the imposition of the increase in the fee.
    (c) To ensure an orderly disposition of the matter, all complaints 
and any request for determination filed with respect to the same airport 
fee or fees will be considered in a consolidated proceeding, as provided 
in Sec. 302.606.



Sec. 302.603  Contents of complaint or request for determination.

    (a) The complaint or request for determination shall set forth the 
entire grounds for requesting a determination of the reasonableness of 
the airport fee. The complaint or request shall include a copy of the 
airport owner or operator's written notice to the carrier of the 
imposition of the fee, a statement of position with a brief, and all 
supporting testimony and exhibits on which the filing party intends to 
rely. In lieu of submitting duplicative exhibits or testimony, the 
filing party may incorporate by reference testimony and exhibits already 
filed in the same proceeding.
    (b) All exhibits and briefs prepared on electronic spreadsheet or 
word processing programs should be accompanied by standard-format 
computer diskettes containing those submissions. The disk submission 
must be in one of the following formats, in the latest two versions, or 
in such other format as may be specified by notice in the Federal 
Register: Microsoft Word (or RTF), Word Perfect, Ami Pro, Microsoft 
Excel, Lotus 123, Quattro Pro, or ASCII tab-delineated files. Parties 
should submit three copies of each diskette to Department of 
Transportation Dockets: one copy for the docket, one copy for the Office 
of Hearings, and one copy for the Office of Aviation Analysis. Filers 
should ensure that files on the diskettes are unalterably locked.
    (c) When a carrier files a complaint, it must also certify:
    (1) That it has served on the airport owner or operator and all 
other carriers serving the airport the complaint, brief, and all 
supporting testimony and exhibits, and that those parties have received 
or will receive these documents no later than the date the complaint is 
filed. Such service shall be by hand, by electronic transmission, or by 
overnight express delivery. (Unless a carrier has informed the 
complaining carrier that a different person should be served, service 
may be made on the person responsible for communicating with the airport 
on behalf of the carrier about airport fees.);
    (2) That the carrier has previously attempted to resolve the dispute 
directly with the airport owner or operator;
    (3) That when there is information on which the carrier intends to 
rely that is not included with the brief, exhibits, or testimony, the 
information has been omitted because the airport owner or operator has 
not made that information available to the carrier. The certification 
shall specify the date and form of the carrier's request for information 
from the airport owner or operator; and
    (4) That any submission on computer diskette is a true copy of the 
data file used to prepare the printed versions of the exhibits or 
briefs.
    (d) When an airport owner or operator files a request for 
determination, it must also certify:
    (1) That it has served on all carriers serving the airport the 
request, brief, and all supporting testimony and exhibits, and that 
those parties have received or will receive these documents no later 
than the date the request is filed. Such service shall be in the same 
manner as provided in Sec. 302.603(c)(1).

[[Page 312]]

    (2) That the airport owner or operator has previously attempted to 
resolve the dispute directly with the carriers; and
    (3) That any submission on computer diskette is a true copy of the 
data file used to prepare the printed versions of the exhibits or 
briefs.



Sec. 302.604  Answers to a complaint or request for determination.

    (a)(1) When a carrier files a complaint under this subpart, the 
owner or operator of the airport and any other carrier serving the 
airport may file an answer to the complaint as provided in paragraphs 
(b) and (c) of this section.
    (2) When the owner or operator of an airport files a request for 
determination of the reasonableness of a fee it has imposed, any carrier 
serving the airport may file an answer to the request.
    (b) The answer to a complaint or request for determination shall set 
forth the answering party's entire response. When one or more additional 
complaints or a request for determination has been filed pursuant to 
Sec. 302.602(b) with respect to the same airport's fee or fees, the 
answer shall set forth the answering party's entire response to all 
complaints and any such request for determination. The answer shall 
include a statement of position with a brief and any supporting 
testimony and exhibits on which the answering party intends to rely. In 
lieu of submitting duplicative exhibits or testimony, the answering 
party may incorporate by reference testimony and exhibits already filed 
in the same proceeding.
    (c) Answers to a complaint shall be filed no later than fourteen 
(14) calendar days after the filing date of the first complaint with 
respect to the fee or fees in dispute at a particular airport. Answers 
to a request for determination shall be filed no later than fourteen 
(14) calendar days after the filing date of the request.
    (d) All exhibits and briefs prepared on electronic spreadsheet or 
word processing programs should be accompanied by standard-format 
computer diskettes containing those submissions as provided in Sec. 
302.603(b).
    (e) The answering party must also certify that:
    (1) it has served the answer, brief, and all supporting testimony 
and exhibits by hand, by electronic transmission, or by overnight 
express delivery on the carrier filing the complaint or the airport 
owner or operator requesting the determination, and that those parties 
have received or will receive these documents no later than the date the 
answer is filed; and
    (2) that any submission on computer diskette is a true copy of the 
data file used to prepare the printed versions of the exhibits or 
briefs.



Sec. 302.605  Replies.

    (a) The carrier submitting a complaint may file a reply to any or 
all of the answers to the complaint. The airport owner or operator 
submitting a request for determination may file a reply to any or all of 
the answers to the request for determination.
    (b) The reply shall be limited to new matters raised in the answers. 
It shall constitute the replying party's entire response to the answers. 
It shall be in the form of a reply brief and may include supporting 
testimony and exhibits responsive to new matters raised in the answers. 
In lieu of submitting duplicative exhibits or testimony, the replying 
party may incorporate by reference testimony and exhibits already filed 
in the same proceeding.
    (c) The reply shall be filed no later than two (2) calendar days 
after answers are filed.
    (d) All exhibits and briefs prepared on electronic spreadsheet or 
word processing programs should be accompanied by standard-format 
computer diskettes containing those submissions as provided in Sec. 
302.603(b).
    (e) The carrier or airport owner or operator submitting the reply 
must certify that it has served the reply and all supporting testimony 
and exhibits on the party or parties submitting the answer to which the 
reply is directed, and that those parties have received or will receive 
these documents no later than the date the reply is filed, and that any 
submission on computer diskette is a true copy of the data file used to 
prepare the printed versions of the exhibits or briefs.

[[Page 313]]



Sec. 302.606  Review of complaints or requests for determination.

    (a) Within thirty (30) days after a complaint or request for 
determination is filed under this subpart, the Secretary will determine 
whether the complaint or request meets the procedural requirements of 
this subpart and whether a significant dispute exists, and take 
appropriate action pursuant to paragraph (b), (c), or (d) of this 
section. When both a complaint and a request for determination have been 
filed with respect to the same airport fee or fees, the Secretary will 
issue a determination as to whether the complaint, the request, or both 
meet the procedural requirements of this subpart and whether a 
significant dispute exists within thirty (30) days after the complaint 
is filed.
    (b) If the Secretary determines that a significant dispute exists, 
he or she will issue an instituting order assigning the complaint or 
request for hearing before an administrative law judge. The instituting 
order will--
    (1) Establish the scope of the issues to be considered and the 
procedures to be employed;
    (2) Indicate the parties to participate in the hearing;
    (3) Consolidate into a single proceeding all complaints and any 
request for determination with respect to the fee or fees in dispute; 
and
    (4) Include any special provisions for exchange or disclosure of 
information by the parties.
    (c) If the Secretary determines that the complaint or request does 
not meet the procedural requirements of this subpart, the complaint or 
request for determination will be dismissed without prejudice to filing 
a new complaint. The order of the Secretary will set forth the terms and 
conditions under which a revised complaint or request may be filed.
    (d) If the Secretary finds that no significant dispute exists--
    (1) If the proceeding was instituted by a complaint, the Secretary 
will issue an order dismissing the complaint, which will contain a 
concise explanation of the reasons for the determination that the 
dispute is not significant.
    (2) If the proceeding was instituted by a request for determination, 
the Secretary will either issue a final order as provided in Sec. 
302.610 or set forth the schedule for any additional procedures required 
to complete the proceeding.



Sec. 302.607  Decision by administrative law judge.

    The administrative law judge shall issue a decision recommending a 
disposition of a complaint or request for determination within sixty 
(60) days after the date of the instituting order, unless a shorter 
period is specified by the Secretary.



Sec. 302.608  Petitions for discretionary review.

    (a) Within five (5) calendar days after service of a decision by an 
administrative law judge, any party may file with the Secretary a 
petition for discretionary review of the administrative law judge's 
decision.
    (b) Petitions for discretionary review shall comply with Sec. 
302.32(a). The petitioner must also certify that it has served the 
petition by hand, by electronic transmission, or by overnight express 
delivery on all parties to the proceeding and that those parties have 
received or will receive the petition no later than the date it is 
filed.
    (c) Any party may file an answer in support of or in opposition to 
any petition for discretionary review. The answer shall be filed within 
four (4) calendar days after service of the petition for discretionary 
review. The answer shall comply with the page limits specified in Sec. 
302.32(b).



Sec. 302.609  Completion of proceedings.

    (a) When a complaint or a request for determination with respect to 
an airport fee or fees has been filed under this subpart and has not 
been dismissed, the Secretary will issue a determination as to whether 
the fee is reasonable within 120 days after the complaint or request is 
filed.
    (b) When both a complaint and a request for determination have been 
filed with respect to the same airport fee or fees and have not been 
dismissed, the Secretary will issue a determination as to whether the 
fee is reasonable within 120 days after the complaint is filed.

[[Page 314]]



Sec. 302.610  Final order.

    (a) When a complaint or request for determination stands submitted 
to the Secretary for final decision on the merits, he or she may dispose 
of the issues presented by entering an appropriate order, which will 
include a statement of the reasons for his or her findings and 
conclusions. Such an order shall be deemed a final order of the 
Secretary.
    (b) The final order of the Secretary shall include, where necessary, 
directions regarding an appropriate refund or credit of the fee increase 
or newly established fee which is the subject of the complaint or 
request for determination.
    (c) If the Secretary has not issued a final order within 120 days 
after the filing of a complaint by an air carrier or foreign air 
carrier, the decision of the administrative law judge shall be deemed to 
be the final order of the Secretary.



 Subpart G_Rules Applicable to Mail Rate Proceedings and Mail Contracts



Sec. 302.701  Applicability.

    (a) This subpart sets forth the special rules applicable to 
proceedings for the establishment of mail rates by the Department for 
foreign air transportation and air transportation between points in 
Alaska, and certain contractual arrangements between the U.S. Postal 
Service and certificated air carriers for the carriage of mail in 
foreign air transportation entered into pursuant to 39 U.S.C. 5402(a), 
84 Stat. 772.
    (b) Such contracts must be for the transportation of at least 750 
pounds of mail per flight, and no more than five (5) percent, based on 
weight, of the international mail transported under any such contract 
may consist of letter mail.

                       Final Mail Rate Proceedings



Sec. 302.702  Institution of proceedings.

    (a) Proceedings for the determination of rates of compensation for 
the transportation of mail may be commenced by the filing of a petition 
by an air carrier whose rate is to be fixed, or the U.S. Postal Service, 
or upon the issuance of an order by the DOT decisionmaker.
    (b) The petition shall set forth the rate or rates sought to be 
established, a statement that they are believed to be fair and 
reasonable, the reasons supporting the request for a change in rates, 
and a detailed economic justification sufficient to establish the 
reasonableness of the rate or rates proposed.
    (c) In any case where an air carrier is operating under a final mail 
rate uniformly applicable to an entire rate-making unit as established 
by the DOT decisionmaker, a petition must clearly and unequivocally 
challenge the rate for such entire rate-making unit and not only a part 
of such unit.
    (d) All petitions, amended petitions, and documents relating thereto 
shall be served upon the U.S. Postal Service by sending a copy to the 
Assistant General Counsel, Transportation Division, Washington, DC 
20260-1124, by registered or certified mail, postpaid, prior to the 
filing thereof with the Department. Proof of service on the U.S. Postal 
Service shall consist of a statement in the document that the person 
filing it has served a copy as required by this section.
    (e) Answers to petitions shall be filed within twenty (20) days 
after service of the petition.



Sec. 302.703  Order to show cause or instituting a hearing.

    Whether the proceeding is commenced by the filing of a petition or 
upon the Department's own initiative, the DOT decisionmaker may issue an 
order directing the respondent to show cause why it should not adopt 
such findings and conclusions and such final rates as may be specified 
in the order to show cause, or may issue an order setting the matter for 
hearing before an administrative law judge.



Sec. 302.704  Objections and answers to order to show cause.

    (a) Where an order to show cause is issued, any person having 
objections to the rates specified in such order shall file with the DOT 
decisionmaker an answer within forty-five (45) days after the date of 
service of such order or

[[Page 315]]

within such other period as the order may specify.
    (b) An answer to an order to show cause shall contain specific 
objections, and shall set forth the findings and conclusions, the rates, 
and the supporting exhibits that would be substituted for the 
corresponding items in the findings and conclusions of the show cause 
order, if such objections were found valid.
    (c) An answer filed by a person who is neither a party nor a person 
ultimately permitted to intervene in an oral evidentiary hearing if such 
proceeding is established shall be treated as a memorandum filed under 
Sec. 302.706.



Sec. 302.705  Further procedures.

    (a) If no answer is filed within the designated time, or if a timely 
filed answer raises no material issue of fact, the DOT decisionmaker 
may, upon the basis of the record in the proceeding, enter a final order 
fixing the rate or rates.
    (b) If an answer raising a material issue of fact is filed within 
the time designated in the Department's order, the DOT decisionmaker may 
then issue an order authorizing additional pleadings and/or establishing 
further procedural steps, including setting the matter for oral 
evidentiary hearing before an administrative law judge.



Sec. 302.706  Hearing.

    (a) If a hearing is ordered under Sec. 302.705, the issues at such 
hearing shall be formulated in accordance with the instituting order, 
except that at a prehearing conference, the administrative law judge may 
permit the parties to raise such additional issues as he or she deems 
necessary to make a full determination of a fair and reasonable rate.
    (b)(1) The parties to the proceeding shall be the air carrier or 
carriers for whom rates are to be fixed, the U.S. Postal Service, the 
Office of the Assistant General Counsel for Aviation Enforcement and 
Proceedings and any other person whom the DOT decisionmaker or 
administrative law judge permits to intervene in accordance with Sec. 
302.20.
    (2) In addition to participation in hearings in accordance with 
Sec. 302.19, persons other than parties may, within the time fixed for 
filing an answer to an order to show cause as provided in Sec. 302.704, 
submit a memorandum of opposition to, or in support of, the position 
taken in the petition or order. Such memorandum shall not be received as 
evidence in the proceeding.
    (c) All direct evidence shall be in writing and shall be filed in 
exhibit form within the times specified by the DOT decisionmaker or by 
the administrative law judge.
    (d) Except as modified by this subpart, the provisions of Sec. 
302.17 through Sec. 302.38 of this part shall apply.

                      Provision for Temporary Rate



Sec. 302.707  Procedure for fixing temporary mail rates.

    At any time during the pendency of a proceeding for the 
determination of final mail rates, the DOT decisionmaker, upon his or 
her own initiative, or on petition by the air carrier whose rates are in 
issue or by the U.S. Postal Service, may fix temporary rates of 
compensation for the transportation of mail subject to downward or 
upward adjustment upon the determination of final mail rates.

                 Informal Mail Rate Conference Procedure



Sec. 302.708  Invocation of procedure.

    (a) Conferences between DOT employees, representatives of air 
carriers, the U.S. Postal Service and other interested persons may be 
called by DOT employees for the purpose of considering and clarifying 
issues and factual material in pending proceedings for the establishment 
of rates for the transportation of mail.
    (b) At the commencement of an informal mail rate conference pursuant 
to this section, the authorized DOT employees conducting such conference 
shall issue to each person present at such conference a written 
statement to the effect that such conference is being conducted pursuant 
to this section and stating the time of commencement of such conference; 
and at the termination of such conference the DOT employees conducting 
such conference shall note in writing on such statement

[[Page 316]]

the time of termination of such conference.



Sec. 302.709  Scope of conferences.

    The mail rate conferences shall be limited to the discussion of, and 
possible agreement on, particular issues and related factual material in 
accordance with sound rate-making principles. The duties and powers of 
DOT employees in rate conferences essentially will not be different, 
therefore, from the duties and powers they have in the processing of 
rate cases not involving a rate conference. The employees' function in 
both instances is to present clearly to the DOT decisionmaker the issues 
and the related material facts, together with recommendations. The DOT 
decisionmaker will make an independent determination of the soundness of 
the employees's analyses and recommendations.



Sec. 302.710  Participants in conferences.

    The persons entitled to be present in mail rate conferences will be 
the representatives of the carrier whose rates are in issue, the staff 
of the U.S. Postal Service, and the authorized DOT employees. No other 
person will attend unless the DOT employees deem his or her presence 
necessary in the interest of one or more purposes to be accomplished, 
and in such case his or her participation will be limited to such 
specific purposes. No person, however, shall have the duty to attend 
merely by reason of invitation by the authorized DOT employees.



Sec. 302.711  Conditions upon participation.

    (a) Nondisclosure of information. As a condition to participation, 
every participant, during the period of the conference and for ninety 
(90) days after its termination, or until the Department takes public 
action with respect to the facts and issues covered in the conference, 
whichever is earlier:
    (1) Shall, except for necessary disclosures in the course of 
employment in connection with conference business, hold the information 
obtained in conference in absolute confidence and trust;
    (2) Shall not deal, directly or indirectly, for the account of 
himself or herself, his or her immediate family, members of his or her 
firm or company, or as a trustee, in securities of the air carrier 
involved in the rate conference except that under exceptional 
circumstances special permission may be obtained in advance from the DOT 
decisionmaker; and
    (3) Shall adopt effective controls for the confidential handling of 
such information and shall instruct personnel under his or her 
supervision, who by reason of their employment come into possession of 
information obtained at the conference, that such information is 
confidential and must not be disclosed to anyone except to the extent 
absolutely necessary in the course of employment, and must not be 
misused. (The term ``information'', as used in this section, shall refer 
only to information obtained at the conference regarding the future 
course of action or position of the Department or its employees with 
respect to the facts or issues discussed at the conference.)
    (b) Signed statement required. Every representative of an air 
carrier actually present at any conference shall sign a statement that 
he or she has read this entire instruction and promises to abide by it 
and advise any other participant to whom he or she discloses any 
confidential information of the restrictions imposed above. Every 
representative of the U.S. Postal Service actually present at any 
conference shall, on his or her own behalf, sign a statement to the same 
effect.
    (c) Presumption of having conference information. A director of any 
air carrier that has had a representative at the conference, who deals 
either directly or indirectly for himself or herself, his or her 
immediate family, members of his or her firm or company, or as a 
trustee, in securities of the air carrier involved in the conference, 
during the restricted period set forth above, shall be presumed to have 
come into possession of information obtained at the conference knowing 
that such information was subject to the restrictions imposed above; but 
such presumption can be rebutted.
    (d) Compliance report required. Within ten (10) days after the 
expiration of the time specified for keeping conference

[[Page 317]]

matters confidential, every participant, as defined in paragraph (e) of 
this section, shall file a verified compliance report with Department of 
Transportation Dockets stating that he or she has complied in every 
respect with the conditions of this section, or if he or she has not so 
complied, stating in detail in what respects he or she has failed to 
comply.
    (e) Persons subject to the provisions of this section. For the 
purposes of this section, participants shall include:
    (1) Any representative of any air carrier and any representative of 
the U.S. Postal Service actually present at the conference;
    (2) The directors and the officers of any air carrier that had a 
representative at the conference;
    (3) The members of any firm of attorneys or consultants that had a 
representative at the conference; and
    (4) The members of the U.S. Postal Service staff who come into 
possession of information obtained at the conference, knowing that such 
information is subject to the restrictions imposed in this section.



Sec. 302.712  Information to be requested from an air carrier.

    When an air carrier is requested to submit detailed estimates as to 
traffic, revenues and expenses by appropriate periods and the investment 
that will be required to perform the operations for a future period, 
full and adequate support shall be presented for all estimates, 
particularly where such estimates deviate materially from the air 
carrier's experience. With respect to the rate for a past period, 
essentially the same procedure shall be followed. Other information or 
data likewise may be requested by the DOT employees. All data submitted 
by the air carrier shall be certified by a responsible officer.



Sec. 302.713  DOT analysis of data for submission of answers thereto.

    After a careful analysis of these data, the DOT employees will, in 
most cases, send the air carrier a statement of exceptions showing areas 
of differences. Where practicable, the air carrier may submit an answer 
to these exceptions. Conferences will then be scheduled to resolve the 
issues and facts in accordance with sound ratemaking principles.



Sec. 302.714  Availability of data to the U.S. Postal Service.

    The representatives of the U.S. Postal Service shall have access to 
all conference data and, insofar as practicable, shall be furnished 
copies of all pertinent data prepared by the DOT employees and the air 
carrier, and a reasonable time shall be allowed to review the facts and 
issues and to make any presentation deemed necessary; Provided, That in 
cases other than those involving an issue as to the service mail rates 
payable by the U.S. Postal Service pursuant to section 41901 of the 
Statute, representatives of the U.S. Postal Service shall be furnished 
with copies of data under this provision only upon their written 
request.



Sec. 302.715  Post-conference procedure.

    No briefs, argument, or any formal steps will be entertained by the 
DOT decisionmaker after the rate conferences. The form, content and time 
of the staff's presentation to the DOT decisionmaker are entirely 
matters of internal procedure. Any party to the mail rate proceeding 
may, through an authorized DOT employee, request the opportunity to 
submit a written or oral statement to the DOT decisionmaker on any 
unresolved issue. The DOT decisionmaker will grant such requests 
whenever he or she deems such action desirable in the interest of 
further clarification and understanding of the issues. The granting of 
an opportunity for such further presentation shall not, however, impair 
the rights that any party might otherwise have under the Statute and 
this part.



Sec. 302.716  Effect of conference agreements.

    No agreements or understandings reached in rate conferences as to 
facts or issues shall in any respect be binding on the Department or any 
participant. Any party to mail rate proceedings will have the same 
rights to file an answer and take other procedural steps as though no 
rate conference had been held. The fact, however, that a rate conference 
was held

[[Page 318]]

and certain agreements or understandings may have been reached on 
certain facts and issues renders it proper to provide that, upon the 
filing of an answer by any party to the rate proceeding, all issues 
going to the establishment of a rate shall be open, except insofar as 
limited in prehearing conference in accordance with Sec. 302.22.



Sec. 302.717  Waiver of participant conditions.

    After the termination of a mail rate conference hereunder, the air 
carrier whose rates were in issue may petition the DOT decisionmaker for 
a release from the obligations imposed upon it and all other persons by 
Sec. 302.711. The DOT decisionmaker will grant such petition only after 
a detailed and convincing showing is made in the petition and supporting 
exhibits and documents that there is no reasonable possibility that any 
of the abuses sought to be prevented will occur or that the Department's 
processes will in any way be prejudiced. There will be no hearing or 
oral argument on the petition and the DOT decisionmaker will grant or 
deny the request without being required to assign reasons therefor.

      Processing Contracts for the Carriage of Mail in Foreign Air 
                             Transportation



Sec. 302.718  Filing.

    Any air carrier that is a party to a contract to which this subpart 
is applicable shall file three (3) copies of the contract in the Office 
of Aviation Analysis, X-50, Department of Transportation, Washington, DC 
20590, not later than ninety (90) days before the effective date of the 
contract. A copy of such contract shall be served upon the persons 
specified in Sec. 302.720 and the certificate of service shall specify 
the persons upon whom service has been made. One copy of each contract 
filed shall bear the certification of the secretary or other duly 
authorized officer of the filing air carrier to the effect that such 
copy is a true and complete copy of the original written instrument 
executed by the parties.



Sec. 302.719  Explanation and data supporting the contract.

    Each contract filed pursuant to this subpart shall be accompanied by 
economic data and such other information in support of the contract upon 
which the filing air carrier intends that the Department rely, 
including, in cases where pertinent, estimates of the annual volume of 
contract mail (weight and ton-miles) under the proposed contract, the 
nature of such mail (letter mail, parcel post, third class, etc.), 
together with a statement as to the extent to which this traffic is new 
or diverted from existing classes of air and surface mail services and 
the priority assigned to this class of mail.



Sec. 302.720  Service.

    A copy of each contract filed pursuant to Sec. 302.718, and a copy 
of all material and data filed pursuant to Sec. 302.719, shall be 
served upon each of the following persons:
    (a) Each certificated and commuter (as defined in Sec. 298.2 of 
this chapter) air carrier, other than the contracting carrier, that is 
actually providing scheduled mail services between any pair of points 
between which mail is to be transported pursuant to the contract; and
    (b) The Assistant General Counsel, Transportation Division, U.S. 
Postal Service, Washington, DC 20260-1124.



Sec. 302.721  Complaints.

    Within fifteen (15) days of the filing of a contract, any interested 
person may file with the Office of Aviation Analysis, X-50, Department 
of Transportation, Washington, DC 20590, a complaint with respect to the 
contract setting forth the basis for such complaint and all pertinent 
information in support of same. A copy of the complaint shall be served 
upon the air carrier filing the contract and upon each of the persons 
served with such contract pursuant to Sec. 302.720.



Sec. 302.722  Answers to complaints.

    Answers to the complaint may be filed within ten (10) days of the 
filing of the complaint, with service being made as provided in Sec. 
302.720.

[[Page 319]]



Sec. 302.723  Further procedures.

    (a) In any case where a complaint is filed, the DOT decisionmaker 
shall issue an order dismissing the complaint, disapproving the 
contract, or taking such other action as may be appropriate. Any such 
order shall be issued not later than ten (10) days prior to the 
effective date of the contract.
    (b) In cases where no complaint is filed, the DOT decisionmaker may 
issue a letter of notification to all persons upon whom the contract was 
served indicating that the Department does not intend to disapprove the 
contract.
    (c) Unless the DOT decisionmaker disapproves the contract not later 
than ten (10) days prior to its effective date, the contract 
automatically becomes effective.



Sec. 302.724  Petitions for reconsideration.

    Except in the case of a Department determination to disapprove a 
contract, no petitions for reconsideration of any Department 
determination pursuant to this subpart shall be entertained.



Sec. Appendix A to Part 302--Index to Rules of Practice

    Appendix A shows the subjects covered by part 302 and the section 
numbers used before and after the final rule revising part 302, 
published in the Federal Register on February 9, 2000 and became 
effective on March 10, 2000.

------------------------------------------------------------------------
             Subject                   Old rule            New rule
------------------------------------------------------------------------
ADMINISTRATIVE LAW JUDGES:
    Actions after hearings......    Sec.  302.27(b)    Sec.  302.31(a)
    Actions during prehearing       Sec.  302.23(a)    Sec.  302.22(b)
     conference.................
    Arguments before............       Sec.  302.25       Sec.  302.29
    Briefs......................       Sec.  302.26       Sec.  302.30
        Licensing cases.........     Sec.  302.1752      Sec.  302.215
    Certification for decision..    Sec.  302.22(d)    Sec.  302.31(b)
    Definition..................    Sec.  302.22(a)        Sec.  302.2
    Delegation of authority.....    Sec.  302.27(a)                Sec.
                                                            307.17(a)(3)
        Exceptions..............    Sec.  302.27(a)                Sec.
                                                            307.17(a)(3)
        Interlocutory matters...    Sec.  302.27(a)                Sec.
                                                            307.17(a)(3)
    Disqualification............    Sec.  302.22(b)    Sec.  302.17(b)
    Exceptions..................    Sec.  302.24(e)    Sec.  302.24(i)
        Licensing cases.........     Sec.  302.1754      Sec.  302.217
        Hearings before.........       Sec.  302.24       Sec.  302.23
        Initial decision (see
         Initial Decision)......
        Powers..................    Sec.  302.22(c)    Sec.  302.17(a)
        Prehearing conference       Sec.  302.23(b)    Sec.  302.22(c)
         report.................
        Recommended decision
         (see Recommended
         Decision)..............
        Termination of authority    Sec.  302.22(c)                Sec.
                                                            307.17(a)(4)
ADMISSIONS:
    Enforcement proceeding......      Sec.  302.212      Sec.  302.412
    Limitation on use...........      Sec.  302.212   Sec.  302.412(c)
AIRPORT FEES:
    Administrative law judge          Sec.  302.615      Sec.  302.607
     decision...................
    Complaints by U.S. or          Sec.  302.603(a)   Sec.  302.602(a)
     foreign air carriers.......
        Answers.................      Sec.  302.607      Sec.  302.604
        Additional complaints...   Sec.  302.603(b)   Sec.  302.602(b)
        Contents................      Sec.  302.605      Sec.  302.603
        Format of exhibits and     Sec.  302.605(b)   Sec.  302.603(b)
         briefs.................
        Service.................                Sec.               Sec.
                                       302.605(c)(1)       302.603(c)(1)
        Replies.................      Sec.  302.609      Sec.  302.605
    Consolidation of proceedings   Sec.  302.603(c)   Sec.  302.602(c)
    Dismissal...................          Sec. Sec.         Sec. Sec.
                                     302.611(c), (d)     302.606(c), (d)
    Final order.................      Sec.  302.621      Sec.  302.610
        Timing..................      Sec.  302.619      Sec.  302.609
    Instituting order...........   Sec.  302.611(b)   Sec.  302.606(b)
    Petitions for discretionary       Sec.  302.617      Sec.  302.608
     review.....................
        Answers.................   Sec.  302.617(c)   Sec.  302.608(c)
    Request for determination by   Sec.  302.603(a)   Sec.  302.602(a)
     airport owner/operator.....
        Answers.................      Sec.  302.607      Sec.  302.604
        Contents................      Sec.  302.605      Sec.  302.603
        Format of exhibits and     Sec.  302.605(b)   Sec.  302.603(b)
         briefs.................
        Service.................                Sec.               Sec.
                                       302.605(d)(1)       302.603(d)(1)
        Replies.................      Sec.  302.609      Sec.  302.605
    Review procedures...........      Sec.  302.611      Sec.  302.606
    Significant dispute            Sec.  302.611(b)   Sec.  302.606(b)
     determination..............
AMENDMENTS OF DOCUMENTS (see
 Documents)
ANSWERS (see also Replies):

[[Page 320]]

 
    Airport fees................      Sec.  302.607      Sec.  302.604
    Certificate applications:
        Initial fitness.........  Sec.  302.1730(c)      Sec.  302.204
        International route
         awards
            Conforming            Sec.  302.1720(d)   Sec.  302.212(d)
             applications.......
            Motions to modify     Sec.  302.1720(e)   Sec.  302.212(d)
             scope..............
            New authority.......  Sec.  302.1720(d)   Sec.  302.212(b)
    Complaints
        Air mail contracts......     Sec.  302.1506      Sec.  302.722
        Airport fees............      Sec.  302.607      Sec.  302.604
        Enforcement matters.....   Sec.  302.204(b)      Sec.  302.405
        Suspension of tariffs...      Sec.  302.505      Sec.  302.506
    Consolidation of proceedings    Sec.  302.12(c)    Sec.  302.13(c)
    Enforcement proceeding,           Sec.  302.207      Sec.  302.408
     notice instituting.........
    Exemption applications......      Sec.  302.406      Sec.  302.307
    Foreign air carrier permit    Sec.  302.1740(c)      Sec.  302.204
     applications...............
    Generally...................        Sec.  302.6        Sec.  302.6
    Mail rate proceedings show        Sec.  302.305      Sec.  302.704
     cause orders...............
    Motions, generally..........    Sec.  302.18(c)    Sec.  302.11(c)
    Motions to consolidate......    Sec.  302.12(c)    Sec.  302.13(c)
    Motions to dismiss and for        Sec.  302.212      Sec.  302.411
     summary judgment...........
    Motions for modification/         Sec.  302.218      Sec.  302.419
     dissolution of enforcement
     proceedings................
    Petitions for discretionary     Sec.  302.28(b)    Sec.  302.32(b)
     review.....................
    Petitions for final mail          Sec.  302.303   Sec.  302.702(e)
     rates......................
    Petitions for intervention..                Sec.               Sec.
                                        302.15(c)(3)        302.20(c)(3)
    Petitions for                     Sec.  302.37a       Sec.  302.14
     reconsideration............
    Requests for determination        Sec.  302.607      Sec.  302.607
     of airport fees............
APPEALS:
    Administrative Law Judge's      Sec.  302.18(f)    Sec.  302.11(h)
     ruling.....................
    Enforcement complaints......   Sec.  302.206(b)   Sec.  302.406(c)
APPEARANCES:
    Generally...................       Sec.  302.11       Sec.  302.21
        Application for             Sec.  302.11(a)    Sec.  302.21(b)
         admission to practice
         unnecessary............
        Copy of transcript......    Sec.  302.11(c)    Sec.  302.27(b)
        Retention of counsel....    Sec.  302.11(b)    Sec.  302.27(a)
    Enforcement proceedings.....      Sec.  302.214      Sec.  302.416
APPLICATIONS:
    Admission to practice           Sec.  302.11(a)    Sec.  302.21(b)
     unnecessary................
        Suspension from             Sec.  302.11(a)    Sec.  302.21(c)
         practicing before DOT..
    Amendment...................        Sec.  302.5        Sec.  302.5
    Certificates for                      Sec. Sec.         Sec. Sec.
     international route awards.      302.1701-1713,         302.201-206
                                                1720
        Conforming applications.  Sec.  302.1720(c)   Sec.  302.212(c)
    Certificates involving                Sec. Sec.         Sec. Sec.
     initial fitness............      302.1701-1713,         302.201-206
                                                1730
    Consolidation...............       Sec.  302.12       Sec.  302.13
    Exemptions..................          Sec. Sec.         Sec. Sec.
                                         302.401-405         302.302-304
    Exemptions, emergency.......          Sec. Sec.     Sec.  302.311
                                     302.410(b), (c)
    Foreign Air Carrier Permits.          Sec. Sec.         Sec. Sec.
                                      302.1701-1713,         302.201-206
                                                1740
    Licensing cases.............   Sec. Sec.  Sec. Sec.  302.201-206
                                       302.1701-1790
ARGUMENT:
    Before Administrative Law          Sec.  302.25       Sec.  302.29
     Judge......................
    Oral (see Oral Arguments)
ATTENDANCE FEES AND MILEAGE.....       Sec.  302.21    Sec.  302.27(c)
BRIEFS:
    Accompanying motions or         Sec.  302.18(d)    Sec.  302.11(d)
     answers....................
    Failure to restate              Sec.  302.31(b)    Sec.  302.35(b)
     objections.................
    Filing time.................    Sec.  302.31(a)    Sec.  302.35(a)
    Formal specifications.......    Sec.  302.31(c)    Sec.  302.35(c)
    Incorporation by reference..    Sec.  302.31(b)                Sec.
                                                            302.35(c)(2)
    Licensing cases.............          Sec. Sec.         Sec. Sec.
                                  302.302.1752, 1755        302.215, 218
    To Administrative Law Judge.       Sec.  302.26       Sec.  302.30
        Licensing cases.........     Sec.  302.1752      Sec.  302.215
    To DOT decisionmaker........       Sec.  302.31       Sec.  302.35
        Licensing cases.........     Sec.  302.1755      Sec.  302.218
CERTIFICATE CASES FOR U.S. AIR
 CARRIERS:
    Application:
        Answers to..............          Sec. Sec.  Sec.  302.204(a)
                                         302.1720(d)
                                             1730(d)
        Contents of.............     Sec.  302.1704      Sec.  302.202
        Incomplete..............     Sec.  302.1713      Sec.  302.209
        Replies to answers......  ..................   Sec.  302.204(b)

[[Page 321]]

 
        Service of..............     Sec.  302.1705      Sec.  302.203
        Supporting evidence.....     Sec.  302.1710          Sec. Sec.
                                                         302.202(a), 205
        Verification............     Sec.  302.1707      Sec.  302.206
    Continuing Fitness..........     Sec.  302.1730      Sec.  302.211
    Non-hearing procedures......  Sec.  302.1712(a)      Sec.  302.207
    Generally...................          Sec. Sec.         Sec. Sec.
                                       302.1701-1790         302.201-220
    Initial Fitness.............     Sec.  302.1730      Sec.  302.211
    International Route Awards..     Sec.  302.1720      Sec.  302.212
    Oral evidentiary hearing              Sec. Sec.         Sec. Sec.
     proceedings................       302.1751-1757         302.214-220
        Petition for............  Sec.  302.1712(b)      Sec.  302.208
CERTIFICATION:
    Documents...................     Sec.  302.4(b)     Sec.  302.4(b)
    Record......................          Sec. Sec.   Sec.  302.31(b)
                                   302.22(d), 27, 29
CHARGES (see Rates, Fairs, and
 Charges; Airport Fees)
CITATION OF RULES...............        Sec.  302.2     Sec.  302.1(c)
CIVIL PENALTIES.................   Sec.  302.206(a)          Sec. Sec.
                                                         302.407(d), (e)
COMPLAINANTS, JOINDER...........       Sec.  302.13   Sec.  302.404(d)
COMPLAINTS:
    Airport fees................          Sec. Sec.         Sec. Sec.
                                         302.603-605         302.602-603
    Contracts for transportation          Sec. Sec.     Sec.  302.721
     of mail....................       302.1505-1507
    Enforcement proceedings.....          Sec. Sec.         Sec. Sec.
                                         302.200-204         302.403-404
    Joinder.....................       Sec.  302.13   Sec.  302.404(d)
    Rates, fares, and charges...          Sec. Sec.         Sec. Sec.
                                         302.501-508         302.501-507
    Suspension of tariffs.......          Sec. Sec.     Sec.  302.506
                                         302.505-508
COMPUTATION OF TIME (see also          Sec.  302.16        Sec.  302.8
 Time)..........................
    CONSOLIDATION OF PROCEEDINGS       Sec.  302.12       Sec.  302.13
    Airport fees................   Sec.  302.603(c)   Sec.  302.602(c)
    Answer to motion for........    Sec.  302.12(c)    Sec.  302.13(c)
    Enforcement proceedings.....   Sec.  302.210(a)      Sec.  302.410
    Filing time.................    Sec.  302.12(b)    Sec.  302.13(b)
    Initiation of...............    Sec.  302.12(a)    Sec.  302.13(a)
CONTINUING FITNESS CERTIFICATE      Sec.  302.1701-      Sec.  302.212
 CASES..........................                1713
CONTRACTS (see Mail Contracts)
DECISIONS:
    Final.......................       Sec.  302.36          Sec. Sec.
                                                             302.38, 220
    Initial (see Administrative
     Law Judges)
    Recommended (see
     Administrative Law Judges)
    Tentative...................       Sec.  302.29       Sec.  302.33
        Exceptions to...........       Sec.  302.30       Sec.  302.34
DEFINITIONS.....................                  NA          Sec. Sec.
                                                              302.2, 402
DELEGATION OF AUTHORITY.........       Sec.  302.27          Sec. Sec.
                                                        302.17(a), 18(a)
DEPOSITIONS:
    Application by party for....    Sec.  302.20(b)    Sec.  302.26(b)
    Criteria for order to issue.    Sec.  302.20(a)    Sec.  302.26(a)
    Evidential status...........          Sec. Sec.   Sec.  302.26(h)
                                           302.20(h)
    Objections to questions or       Sec.  302.2(d)    Sec.  302.26(d)
     evidence...................
    Specifications..............    Sec.  302.20(g)    Sec.  302.26(g)
    Subscription by witness.....    Sec.  302.20(e)    Sec.  302.26(e)
    Written interrogatories.....    Sec.  302.20(f)    Sec.  302.26(f)
DISCRETIONARY REVIEW:
    Initial and Recommended            Sec.  302.28       Sec.  302.32
     decisions..................
        Answers in opposition or    Sec.  302.28(b)    Sec.  302.32(b)
         support................
        Formal requirements.....                Sec.         Sec. Sec.
                                        302.28(a)(3)   302.32(a)(3), (4)
        Grounds for.............                Sec.               Sec.
                                        302.28(a)(2)        302.32(a)(2)
        Orders declining review.    Sec.  302.28(c)    Sec.  302.32(c)
        Oral arguments..........                Sec.               Sec.
                                        302.28(a)(5)        302.32(a)(5)
        Petitions for...........                Sec.               Sec.
                                        302.28(a)(1)        302.32(a)(1)
        Review proceedings......    Sec.  302.28(d)    Sec.  302.32(d)
DISSOLUTION OF ENFORCEMENT            Sec.  302.218      Sec.  302.419
 ACTION.........................
DOCUMENTS:
    Amendments..................        Sec.  302.5        Sec.  302.5
        Leave of Department.....        Sec.  302.5     Sec.  302.5(a)
        Timing of...............        Sec.  302.5     Sec.  302.5(b)
    Answers (see Answers)
    Briefs (see Briefs)
    Dismissal...................        Sec.  302.5     Sec.  302.3(d)
    Electronic filing...........                  NA     Sec.  302.3(c)
    Exhibits....................          Sec. Sec.   Sec.  302.24(c)
                                           302.24(g)
    Filing......................        Sec.  302.3        Sec.  302.3
        Address.................     Sec.  302.3(a)     Sec.  302.3(a)
        Date....................     Sec.  302.3(a)     Sec.  302.3(a)
        Improper filing.........       Sec.  302.4e     Sec.  302.3(d)
    Formal specifications.......     Sec.  302.3(b)     Sec.  302.3(b)

[[Page 322]]

 
    General requirements........        Sec.  302.4        Sec.  302.4
        Contents................     Sec.  302.4(a)  Sec.  302.4(a)(2)
        Designation of person to     Sec.  302.4(c)     Sec.  302.4(a)
         receive service........
        Subscription............     Sec.  302.4(b)     Sec.  302.4(b)
    Memoranda of opposition or       Sec.  302.6(c)                Sec.
     support....................                           302.706(b)(2)
    Number of copies............     Sec.  302.3(c)     Sec.  302.3(c)
    Objections to public            Sec.  302.39(b)       Sec.  302.12
     disclosure.................
    Official Notice of facts....    Sec.  302.24(n)    Sec.  302.24(g)
    Partial relevance of........    Sec.  302.24(I)    Sec.  302.24(e)
    Presented at oral argument..    Sec.  302.32(b)    Sec.  302.36(b)
    Receipt after hearing.......    Sec.  302.24(k)    Sec.  302.24(h)
    Responsive..................        Sec.  302.6        Sec.  302.6
    Retention...................        Sec.  302.7     Sec.  302.3(f)
    Service (see Service)
    Table of contents/Index.....     Sec.  302.3(d)  Sec.  302.4(a)(3)
    Unauthorized................     Sec.  302.4(f)     Sec.  302.6(c)
DOT DECISIONMAKER:
    Briefs to...................       Sec.  302.31       Sec.  302.35
        Licensing cases.........     Sec.  302.1755      Sec.  302.218
    Certification of record to..    Sec.  302.22(d)    Sec.  302.31(b)
    Definition..................      Sec.  302.22a          Sec. Sec.
                                                               302.2, 18
    Final decision..............       Sec.  302.36       Sec.  302.38
        Licensing cases.........     Sec.  302.1757      Sec.  302.220
    Oral argument...............       Sec.  302.32       Sec.  302.36
        Licensing cases.........     Sec.  302.1756      Sec.  302.219
    Petitions for                      Sec.  302.37       Sec.  302.14
     reconsideration............
    Review of Administrative Law       Sec.  302.38       Sec.  302.32
     Judge decision.............
    Tentative decision..........       Sec.  302.29       Sec.  302.33
        Exceptions..............       Sec.  302.30       Sec.  302.34
ENFORCEMENT PROCEEDINGS:
    Admissions as to facts and        Sec.  302.212      Sec.  302.412
     documents..................
    Complaints:
        Formal..................      Sec.  302.201      Sec.  302.404
        Informal................      Sec.  302.200      Sec.  302.403
        Insufficiency of........      Sec.  302.203   Sec.  302.404(c)
    Consolidation of proceedings     Sec.  302.210a      Sec.  302.410
    Evidence of previous              Sec.  302.216      Sec.  302.413
     violations.................
    Generally...................          Sec. Sec.         Sec. Sec.
                                         302.200-217         302.401-420
    Hearings....................      Sec.  302.213      Sec.  302.415
    Modification or dissolution       Sec.  302.218      Sec.  302.419
     of enforcement action......
    Motions to dismiss..........      Sec.  302.212      Sec.  302.411
    Motions for summary judgment      Sec.  302.212      Sec.  302.402
    Settlement proceedings......      Sec.  302.215      Sec.  302.417
EVIDENCE:
    Exhibits....................          Sec. Sec.         Sec. Sec.
                                      302.24(g), (h)      302.24(c), (d)
    Generally...................    Sec.  302.24(c)    Sec.  302.24(a)
    Objections to...............    Sec.  302.24(d)    Sec.  302.24(b)
    Offers of proof.............    Sec.  302.24(f)    Sec.  302.24(j)
    Official notice of facts in     Sec.  302.24(n)    Sec.  302.24(g)
     certain documents..........
    Partial relevance of........    Sec.  302.24(I)    Sec.  302.24(e)
    Previous violations.........      Sec.  302.216      Sec.  302.413
    Records in other proceedings    Sec.  302.24(j)    Sec.  302.24(f)
EXAMINERS (see Administrative
 Law Judges)
EXCEPTIONS:
    Administrative Law Judge's      Sec.  302.24(e)    Sec.  302.24(i)
     rulings....................
    Initial decisions...........       Sec.  302.30    Sec.  302.31(c)
    Licensing cases.............     Sec.  302.1754      Sec.  302.217
    Recommended decisions.......       Sec.  302.30    Sec.  302.31(c)
    Request for oral argument...       Sec.  302.32       Sec.  302.36
    Tentative decisions.........       Sec.  302.30       Sec.  302.34
    Waiver......................       Sec.  302.33       Sec.  302.37
EXEMPTION PROCEEDINGS:
    Application:
        Answers to..............      Sec.  302.406      Sec.  302.307
        Contents of.............      Sec.  302.402      Sec.  302.303
        Filing of...............      Sec.  302.401      Sec.  302.302
        Incomplete..............      Sec.  302.405      Sec.  302.306
        Posting of..............      Sec.  302.404      Sec.  302.305
        Service of..............      Sec.  302.403      Sec.  302.304
        Reply to answer.........      Sec.  302.407      Sec.  302.308
        Supporting evidence.....   Sec.  302.402(c)   Sec.  302.302(c)
    DOT's initiative............      Sec.  302.409      Sec.  302.310
    Emergencies.................      Sec.  302.410      Sec.  302.311
        Cabotage................   Sec.  302.402(d)   Sec.  302.303(d)

[[Page 323]]

 
    Hearing request.............      Sec.  302.408      Sec.  302.309
EXHIBITS (see also Evidence):
    Generally...................    Sec.  302.24(g)          Sec. Sec.
                                                          302.24(c), (d)
FARES (see Rates, Fares, and
 Charges)
FEE (see Airport Fees)
FINAL MAIL RATE PROCEEDINGS (see
 Mail Rate Proceedings)
FINAL ORDERS (see Orders)
FITNESS CASES (see Certificate
 Cases)
FOREIGN AIR CARRIER PERMIT
 CASES:
    Application:
        Answers to..............  Sec.  302.1740(c)   Sec.  302.204(a)
        Contents of.............     Sec.  302.1704      Sec.  302.202
        Incomplete..............     Sec.  302.1713      Sec.  302.209
        Replies to answers......  ..................   Sec.  302.204(b)
        Service of..............     Sec.  302.1705      Sec.  302.203
        Supporting evidence.....     Sec.  302.1710          Sec. Sec.
                                                         302.202(a), 205
        Verification............     Sec.  302.1707      Sec.  302.206
    Non-hearing procedures......  Sec.  302.1712(a)      Sec.  302.207
    Generally...................          Sec. Sec.         Sec. Sec.
                                      302.1701-1713,         302.201-220
                                           1740-1790
    Oral evidentiary hearing        Sec.  302.1751-          Sec. Sec.
     proceedings................                1757         302.214-220
        Petition for............  Sec.  302.1712(b)      Sec.  302.208
HEARINGS:
    Airport fee dispute            Sec.  302.611(b)   Sec.  302.606(b)
     proceedings................
    Argument before                    Sec.  302.25       Sec.  302.29
     Administrative Law Judge...
    Change in rates, fares, or        Sec.  302.506      Sec.  302.706
     charges....................
    Consolidated (see
     Consolidation of
     Proceedings)
    Documents of partial            Sec.  302.24(i)    Sec.  302.24(e)
     relevance..................
    Enforcement proceedings.....      Sec.  302.213      Sec.  302.415
    Evidence (see Evidence)
    Expedition of...............    Sec.  302.14(a)    Sec.  302.11(e)
    Generally...................       Sec.  302.24       Sec.  302.23
    Intervention................       Sec.  302.15       Sec.  302.20
    Licensing cases.............     Sec.  302.1751      Sec.  302.214
    Notice......................    Sec.  302.24(b)       Sec.  302.23
    Offers of proof.............    Sec.  302.24(f)    Sec.  302.24(j)
    Official notice of facts in     Sec.  302.24(n)    Sec.  302.24(g)
     certain documents..........
    Participation by non parties    Sec.  302.14(b)       Sec.  302.19
    Receipt of documents after      Sec.  302.24(k)    Sec.  302.24(h)
     hearing....................
    Records in other proceedings    Sec.  302.24(j)    Sec.  302.24(f)
    Request for, on application       Sec.  302.408      Sec.  302.309
     for exemption..............
    Shortened procedure.........       Sec.  302.35       Sec.  302.15
    Transcripts.................          Sec. Sec.      Sec.  302.28
                                      302.24(l), (m)
INITIAL DECISION:
    Answer in support or            Sec.  302.28(b)    Sec.  302.32(b)
     opposition.................
    Contents....................    Sec.  302.27(b)    Sec.  302.31(c)
    Effect of...................    Sec.  302.27(c)    Sec.  302.31(d)
    Licensing cases.............     Sec.  302.1753      Sec.  302.216
        Exceptions to...........     Sec.  302.1754      Sec.  302.217
    Oral arguments..............                Sec.               Sec.
                                        302.28(a)(5)        302.32(a)(5)
    Orders declining review.....    Sec.  302.28(c)    Sec.  302.32(c)
    Petitions for discretionary        Sec.  302.28       Sec.  302.32
     review.....................
    Service.....................    Sec.  302.27(b)    Sec.  302.31(c)
    Scope.......................    Sec.  302.27(a)                Sec.
                                                            302.31(a)(1)
INITIAL FITNESS CERTIFICATE
 CASES (see Certificate Cases)
INSTITUTING ORDERS (see Orders)
INTERROGATORIES (see
 Depositions)
INTERVENTION:
    Generally...................       Sec.  302.15       Sec.  302.20
JOINDER OF COMPLAINTS OR               Sec.  302.13   Sec.  302.404(d)
 COMPLAINANTS...................
JOINT PLEADINGS:
    Enforcement cases...........       Sec.  302.13   Sec.  302.404(d)
    Licensing cases.............     Sec.  302.1708   Sec.  302.204(c)
LAW JUDGE (see Administrative
 Law Judges)
LICENSING CASES (see Certificate
 Cases; Foreign Air Carrier
 Permit Cases
MAIL CONTRACTS:
    Complaint against contract..          Sec. Sec.         Sec. Sec.
                                       302.1505-1507         302.721-723
    Data supporting contract....     Sec.  302.1503      Sec.  302.719
    Explanation of contract.....     Sec.  302.1503      Sec.  302.719
    Filing of contract..........     Sec.  302.1502      Sec.  302.718
    Petition for reconsideration     Sec.  302.1508      Sec.  302.724
    Service of contract.........     Sec.  302.1504      Sec.  302.720
MAIL RATE CONFERENCES:
    Availability of data to           Sec.  302.317      Sec.  302.714
     Postal Service.............

[[Page 324]]

 
    Conditions upon                   Sec.  302.314      Sec.  302.711
     participation..............
        Compliance report.......   Sec.  302.314(d)   Sec.  302.711(d)
        Non-disclosure of          Sec.  302.314(a)   Sec.  302.711(a)
         information............
        Signed statement           Sec.  302.314(b)   Sec.  302.711(b)
         required...............
    DOT analysis of data for          Sec.  302.316      Sec.  302.713
     submission of answers......
    Effect of conference              Sec.  302.319      Sec.  302.716
     agreements.................
    Information to be requested       Sec.  302.315      Sec.  302.712
     from carrier...............
    Participants in conferences.      Sec.  302.313      Sec.  302.710
    Post conference procedure...      Sec.  302.318      Sec.  302.715
    Scope of conferences........      Sec.  302.312      Sec.  302.709
    Time of commencing and            Sec.  302.321   Sec.  302.708(b)
     terminating conference.....
    Waiver of participant             Sec.  302.320      Sec.  302.717
     conditions.................
MAIL RATE PROCEEDINGS:
    Evidence....................      Sec.  302.308   Sec.  302.706(c)
    Further procedures..........     Sec.  302.306,      Sec.  302.705
                                                 307
    Hearing.....................      Sec.  302.309      Sec.  302.706
    Institution of proceedings..      Sec.  302.302      Sec.  302.702
    Objections and answers to         Sec.  302.305      Sec.  302.704
     show cause order...........
    Order to show cause.........      Sec.  302.303      Sec.  302.703
    Parties and persons other        Sec.  302.301,   Sec.  302.706(b)
     than parties...............                 302
MILEAGE FEES....................       Sec.  302.21    Sec.  302.27(c)
MODIFICATION OF ENFORCEMENT           Sec.  302.218      Sec.  302.419
 ACTION.........................
MOTIONS (see also Petitions):
    Answers to..................    Sec.  302.18(c)    Sec.  302.11(c)
    Appeals from rulings of         Sec.  302.18(f)    Sec.  302.11(h)
     Administrative Law Judges..
    Briefs......................    Sec.  302.18(d)    Sec.  302.11(d)
    Consolidation of proceedings       Sec.  302.12       Sec.  302.13
        Enforcement cases.......     Sec.  302.210a      Sec.  302.410
    Continuances and extension         Sec.  302.17        Sec.  302.9
     of time....................
    Disposition of..............    Sec.  302.18(e)    Sec.  302.11(g)
    Effect of pendency..........    Sec.  302.18(g)    Sec.  302.11(f)
    Expedition of case..........    Sec.  302.14(a)    Sec.  302.11(e)
    For suspension of operating       Sec.  302.217      Sec.  302.418
     authority pendente lite....
    For modification or               Sec.  302.218      Sec.  302.419
     dissolution of orders......
    Form and contents...........    Sec.  302.18(b)    Sec.  302.11(b)
    Generally...................       Sec.  302.18    Sec.  302.11(a)
    Oral arguments..............    Sec.  302.18(d)    Sec.  302.11(d)
    Substitution of parties.....       Sec.  302.10    Sec.  302.10(b)
    To correct transcripts......    Sec.  302.24(m)    Sec.  302.28(f)
    To dismiss and for summary        Sec.  302.212      Sec.  302.411
     judgment...................
    To dismiss formal complaint.      Sec.  302.204   Sec.  302.405(c)
    To file unauthorized             Sec.  302.4(f)     Sec.  302.6(c)
     documents..................
    To modify scope in Licensing  Sec.  302.1720(c)   Sec.  302.212(b)
     cases......................
    To quash or modify subpoena.    Sec.  302.19(f)    Sec.  302.25(f)
    To whom motions addressed...    Sec.  302.18(a)    Sec.  302.11(a)
    To withhold information from          Sec. Sec.         Sec. Sec.
     public disclosure..........     302.39(b), (e),      302.12(d), (e)
                                                 (f)
NON-HEARING PROCEDURES..........       Sec.  302.35       Sec.  302.15
        Licensing cases.........  Sec.  302.1712(a)      Sec.  302.207
OBJECTIONS (see also Answers):
    To Public Disclosure of            Sec.  302.39       Sec.  302.12
     Information................
OFFERS OF PROOF.................    Sec.  302.24(f)    Sec.  302.24(j)
OFFICIAL NOTICE.................    Sec.  302.24(n)    Sec.  302.24(g)
ORAL ARGUMENTS:
    Before DOT decisionmakers...       Sec.  302.32       Sec.  302.36
        Request for leave.......    Sec.  302.32(a)    Sec.  302.36(a)
        Rules on documentary        Sec.  302.32(b)    Sec.  302.36(b)
         evidence...............
    Before Administrative Law          Sec.  302.25       Sec.  302.29
     Judges.....................
    Discretionary review........                Sec.               Sec.
                                        302.28(a)(5)        302.32(a)(5)
    Licensing cases.............     Sec.  302.1756      Sec.  302.219
    Waivers.....................       Sec.  302.33       Sec.  302.37
ORAL EVIDENTIARY HEARINGS (see
 Hearings)
ORDERS:
    Declining review of initial     Sec.  302.28(c)    Sec.  302.32(c)
     decisions..................
    Dismissal:
        Airport fee dispute               Sec. Sec.         Sec. Sec.
         proceedings............     302.611(c), (d)     302.606(c), (d)
        Enforcement complaints..      Sec.  302.205      Sec.  302.406
        Licensing cases.........                Sec.               Sec.
                                      302.1750(a)(2)       302.210(a)(3)
    Establishing further             Sec.  302.1750      Sec.  302.210
     procedures (Licensing
     cases).....................
    Final.......................       Sec.  302.36       Sec.  302.38
        Airport fee dispute           Sec.  302.621      Sec.  302.610
         proceedings............
        Licensing cases.........     Sec.  302.1750      Sec.  302.210
        Mail contracts..........  Sec.  302.1507(a)   Sec.  302.723(a)
        Mail rate proceedings...      Sec.  302.306      Sec.  302.705
    Instituting oral evidentiary
     hearing:
        Airport fee dispute        Sec.  302.611(b)   Sec.  302.606(b)
         proceedings............

[[Page 325]]

 
        Licensing cases.........                Sec.               Sec.
                                      302.1750(a)(1)       302.210(a)(4)
        Mail rate proceedings...          Sec. Sec.         Sec. Sec.
                                        302.307, 309     302.703, 705(b)
    Instituting investigation of      Sec.  302.504      Sec.  302.505
     rates, fares, and charges..
    Show cause:
        Licensing cases.........  Sec.  302.1730(d)                Sec.
                                                           302.210(a)(1)
        Mail rate proceedings...      Sec.  302.304      Sec.  302.703
PARTIES:
    Appearances of..............       Sec.  302.11    Sec.  302.21(a)
    Defined.....................        Sec.  302.9       Sec.  302.2,
                                                                   10(a)
    Enforcement proceedings.....      Sec.  302.210      Sec.  302.402
    Licensing cases.............     Sec.  302.1709                Sec.
                                                           302.210(a)(4)
    Mail rate proceedings.......      Sec.  302.301   Sec.  302.706(b)
    Participation by Air Carrier    Sec.  302.10(a)    Sec.  302.10(c)
     Associations...............
    Persons other than parties..       Sec.  302.14       Sec.  302.19
    Substitution of.............       Sec.  302.10    Sec.  302.10(b)
PETITIONS:
    Determination of rates,        Sec.  302.502(a)  Sec.  302.502-503
     fares, or charges..........
    Discretionary review (see
     Discretionary Review)
    Filing Time.................    Sec.  302.37(a)    Sec.  302.14(a)
    Institution of mail rate          Sec.  302.303      Sec.  302.302
     proceedings................
    Intervention................    Sec.  302.15(c)       Sec.  302.20
    Orders subject to               Sec.  302.37(a)    Sec.  302.14(a)
     reconsideration............
    Repetitive..................    Sec.  302.37(c)    Sec.  302.14(c)
    Reconsideration.............       Sec.  302.37       Sec.  302.14
    Rulemaking..................       Sec.  302.38       Sec.  302.16
PREHEARING CONFERENCE...........       Sec.  302.23       Sec.  302.22
    Actions during..............    Sec.  302.23(a)    Sec.  302.22(b)
    Enforcement proceeding......      Sec.  302.211      Sec.  302.414
    Purposed Sec.  302.23(a)...    Sec.  302.23(a)    Sec.  302.22(a)
    Report of...................    Sec.  302.23(b)    Sec.  302.22(c)
    Scope.......................    Sec.  302.23(a)    Sec.  302.22(a)
PROCEEEDINGS:
    Airport fee dispute                   Sec. Sec.         Sec. Sec.
     proceedings................         302.601-621         302.601-610
    Consolidation of (see
     Consolidation)
    Contemporaneous
     consideration (see
     Consolidation)
    Enforcement.................          Sec. Sec. Sec.  302.401-420
                                         302.200-217
    Exemption...................          Sec. Sec. Sec.  302.301-311
                                         302.400-410
    Licensing cases.............          Sec. Sec. Sec.  302.201-220
                                       302.1701-1790
    Mail rate...................          Sec. Sec. Sec.  302.701-717
                                         302.300-321
    Rates, fares, and charges...          Sec. Sec. Sec.  302.501-507
                                         302.500-508
PUBLIC DISCLOSURE OF
 INFORMATION:
    Documents...................    Sec.  302.39(b)    Sec.  302.12(b)
    Generally...................    Sec.  302.39(a)    Sec.  302.12(a)
    Objection to by government..    Sec.  302.39(d)    Sec.  302.12(f)
    Oral testimony..............    Sec.  302.39(c)    Sec.  302.12(c)
RATES, FARES, AND CHARGES--
 PROCEEDINGS (see also Mail Rate
 Proceedings; Airport Fees):
    Institution of..............      Sec.  302.501      Sec.  302.502
    Order of investigation......      Sec.  302.504      Sec.  302.505
    Petition....................      Sec.  302.501      Sec.  302.503
        Contents................   Sec.  302.502(a)   Sec.  302.503(a)
        Dismissed...............         Sec.  Sec.     Sec.  302.504
                                             302.503
        Service.................   Sec.  302.502(b)   Sec.  302.503(b)
    Suspension of tariffs.......      Sec.  302.505      Sec.  302.506
        Answers.................      Sec.  302.505   Sec.  302.506(e)
        Complaints..............      Sec.  302.505      Sec.  302.506
        Time for filing               Sec.  302.508      Sec.  302.507
         complaint..............
RECOMMENDED DECISIONS (see
 Decisions)
    Answer in support or            Sec.  302.28(b)    Sec.  302.32(b)
     opposition.................
    Contents....................    Sec.  302.27(b)    Sec.  302.31(c)
    Effect of...................    Sec.  302.27(c)    Sec.  302.31(d)
    Licensing cases.............     Sec.  302.1753      Sec.  302.216
    Exceptions to...............     Sec.  302.1754      Sec.  302.217
    Oral arguments..............                Sec.               Sec.
                                        302.28(a)(5)        302.32(a)(5)
    Orders declining review.....    Sec.  302.28(c)    Sec.  302.32(c)
    Petitions for discretionary        Sec.  302.28       Sec.  302.32
     review.....................
    Service.....................    Sec.  302.27(b)    Sec.  302.31(c)
    Scope.......................    Sec.  302.27(a)                Sec.
                                                            302.31(a)(2)
RECONSIDERATION, REHEARING,
 REARGUMENT (see Petitions for
 Reconsideration):
RECORD, CERTIFICATION...........          Sec. Sec.   Sec.  302.31(b)
                                   302.22(d), 27(a),
                                               29(a)
REPLIES:
    Airport fee dispute               Sec.  302.609      Sec.  302.605
     proceedings................

[[Page 326]]

 
    Exemption cases.............      Sec.  302.407      Sec.  302.308
    Generally...................     Sec.  302.6(b)     Sec.  302.6(b)
    Licensing cases.............  ..................   Sec.  302.204(b)
    Motions.....................    Sec.  302.18(c)    Sec.  302.11(c)
    Enforcement proceedings.....      Sec.  302.209      Sec.  302.408
RESPONSIVE DOCUMENTS (see
 Answers; Replies):
REVIEW (see Discretionary
 Review):
ROUTE PROCEEDINGS (see also
 Certificate Cases):
    International route awards..          Sec. Sec. Sec.  302.201-220
                                       302.1701-1790
RULEMAKING PETITIONS............       Sec.  302.38       Sec.  302.16
SERVICE:
    Airport fee dispute                   Sec. Sec.         Sec. Sec.
     proceedings................      302.605(c)(1),      302.603(c)(1),
                                              (d)(1)              (d)(1)
    By the Department...........  Sec.  302.8(a)(1)  Sec.  302.7(a)(1)
    Date of.....................     Sec.  302.8(f)     Sec.  302.7(f)
    Enforcement complaints......   Sec.  302.204(a)   Sec.  302.404(e)
    Exemption cases.............      Sec.  302.403      Sec.  302.304
    Generally...................        Sec.  302.8        Sec.  302.7
    Licensing cases.............     Sec.  302.1705      Sec.  302.203
    Mail rate petitions.........   Sec.  302.303(c)   Sec.  302.702(d)
    Persons eligible for service     Sec.  302.8(c)    Sec.  302.7(c),
                                                                (g), (h)
    Procedures..................     Sec.  302.8(b)     Sec.  302.7(b)
    Proof of....................     Sec.  302.8(e)     Sec.  302.7(e)
    Rates, fares, and charges      Sec.  302.502(b)   Sec.  302.503(b)
     complaints.................
    Where to be made............     Sec.  302.8(d)     Sec.  302.7(d)
SETTLEMENT OFFERS:
    Enforcement proceedings.....      Sec.  302.215      Sec.  302.417
    Public disclosure...........   Sec.  302.215(d)   Sec.  302.417(d)
SHORTENED PROCEDURE.............       Sec.  302.35       Sec.  302.15
SHOW CAUSE ORDERS (see Orders):
SUBPOENAS.......................       Sec.  302.19       Sec.  302.25
SUSPENSION OF PRACTICE BEFORE       Sec.  302.11(a)    Sec.  302.25(f)
 DOT............................
TARIFFS:
    Complaints requesting             Sec.  302.505      Sec.  302.506
     suspension.................
TEMPORARY RATE PROCEEDINGS......      Sec.  302.310      Sec.  302.707
TENTATIVE DECISIONS (see
 Decisions):
TESTIMONY (see Witnesses):
TIME:
    Computation of..............       Sec.  302.16        Sec.  302.8
    Continuances of.............       Sec.  302.17        Sec.  302.9
    Extensions of...............       Sec.  302.17        Sec.  302.9
    Licensing cases.............          Sec. Sec.     Sec.  302.209
                                      302.1706, 1711
TRANSCRIPTS OF HEARINGS.........    Sec.  302.24(l)       Sec.  302.28
U.S. AIR CARRIER CERTIFICATION
 (see Certificate Cases):
VERIFICATION:
    Licensing cases.............     Sec.  302.1707      Sec.  302.206
WAIVERS OF PROCEDURAL STEPS.....       Sec.  302.33       Sec.  302.37
WITNESSES:
    Attendance fees and mileage.       Sec.  302.21    Sec.  302.27(c)
    Cross-examination by            Sec.  302.14(b)       Sec.  302.19
     nonparties.................
    Depositions.................       Sec.  302.20       Sec.  302.26
    Objections to public            Sec.  302.39(c)    Sec.  302.12(c)
     disclosure of testimony....
    Represented by counsel......    Sec.  302.11(a)    Sec.  302.27(a)
    Subpoenas...................       Sec.  302.19       Sec.  302.25
VIOLATIONS--EVIDENTIAL STATUS IN      Sec.  302.216      Sec.  302.413
 ENFORCEMENT PROCEEDINGS........
------------------------------------------------------------------------



PART 303_REVIEW OF AIR CARRIER AGREEMENTS--Table of Contents




                      Subpart A_General Provisions

Sec.
303.01 Purpose.
303.02 Definitions.
303.03 Requirement to file application.
303.04 General rules governing application content, procedure and 
          conditions of approval.
303.05 Applications requesting antitrust immunity.
303.06 Review of antitrust immunity.
303.07 Transitional rule.

Subpart B [Reserved]

303.10-303.19 [Reserved]

Subpart C [Reserved]

303.20-303.24 [Reserved]

[[Page 327]]

                   Subpart D_Section 412 Applications

303.30 General provisions concerning contents of applications.
303.31 Justification for the application.
303.32 Service of the application.
303.33 Modifications and cancellations.

             Subpart E_Procedures Upon Application or Review

303.40 Determination of compliance.
303.41 Notice.
303.42 Comments on application.
303.43 Action following the comment period.
303.44 Show cause proceedings.
303.45 Evidentiary hearings.
303.46 Decision by the Assistant Secretary.

    Authority: 49 U.S.C. chapters 401, 413, 417.

    Source: 50 FR 31142, July 31, 1985, unless otherwise noted.



                      Subpart A_General Provisions



Sec. 303.01  Purpose.

    These regulations set forth the procedures by which applications may 
be made to the Department of Transportation under sections 412 and 414 
of the Federal Aviation Act, as amended (49 U.S.C. 1382 and 1384) and 
procedures governing proceedings to enforce these provisions.

[Amdt. 303-2, 54 FR 33499, Aug. 15, 1989]



Sec. 303.02  Definitions.

    (a) The term Act refers to the Federal Aviation Act of 1958, as 
amended. (49 U.S.C. 1301 et seq.)
    (b) The term Assistant Secretary means the Assistant Secretary for 
Aviation and International Affairs, or as delegated. As provided in 49 
CFR 1.43, the Secretary or Deputy Secretary may exercise any authority 
in lieu of the Assistant Secretary under the provisions of this part.
    (c) The term documents means (1) all written, recorded, transcribed 
or graphic matter including letters, telegrams, memoranda, reports, 
studies, forecasts, lists, directives, tabulations, logs, or minutes and 
records of meetings, conferences, telephone or other conversations or 
communications; and (2) all information contained in data processing 
equipment or materials. The term does not include daily or weekly 
statistical reports in whose place an annual or monthly summary is 
submitted.
    (d) The term Documentary Services Division means the Documentary 
Services Division of the Office of the Assistant General Counsel for 
Regulation and Enforcement.
    (e) The term hearing means either a show cause proceeding as 
provided in Sec. 303.44 of this part or a full evidentiary hearing as 
provided in Sec. 303.45 of this part, whichever is determined by the 
Assistant Secretary to be appropriate.
    (f)-(g) [Reserved]
    (h) The term Section 412 transaction means any contract, agreement 
or discussion of a cooperative working arrangement within the scope of 
section 412 of the Act. (49 U.S.C. 1382).
    (i) [Reserved]

[50 FR 31142, July 31, 1985, as amended by Amdt. 303-2, 54 FR 33499, 
Aug. 15, 1989; Amdt. 1-261, 59 FR 10061, Mar. 3, 1994]



Sec. 303.03  Requirement to file application.

    A person who seeks approval of a section 412 transaction must file 
with the Documentary Services Division an application that conforms to 
the requirements set forth in Sec. Sec. 303.04 and 303.05 of this part.

[Amdt. 303-2, 54 FR 33499, Aug. 15, 1989]



Sec. 303.04  General rules governing application content, procedure and conditions of approval.

    (a) Unless specifically exempted by these regulations or by an order 
of the Assistant Secretary, a person filing an application pursuant to 
Sec. 303.03 of this part shall prepare and file the application in the 
manner specified in this section. The application shall also contain the 
information required by subpart D of this part. An application may be 
deemed incomplete if it is not in substantial compliance with these 
requirements.
    (b) The parties to the transaction may file either separate 
applications or one joint application so long as all the information 
required herein is submitted for each party to the transaction. The 
Assistant Secretary or Administrative Law Judge, if the matter has been 
assigned to a judge, upon his or her initiative or upon application, may 
order the target company or other

[[Page 328]]

persons to submit some or all of the information required by this 
subpart, or other information under 14 CFR 302.25.
    (c) Each page of the application and each document submitted with 
the application shall be marked with the name, initials, or some other 
identifying symbol of the applicant. The application shall also indicate 
the date of preparation and the name and corporate position of the 
preparer.
    (d) Where the required information is in data processing equipment, 
on microfilm, or is otherwise not eye-readable, the applicant shall 
provide such information in eye-readable form.
    (e) The information provided by the applicant shall be updated in a 
timely fashion throughout the period of consideration of the 
application.
    (f) If any information or documents required by the applicable 
subpart are not available, the applicants shall file an affidavit 
executed by the individual responsible for the search explaining why 
they cannot be produced.
    (g) The Assistant Secretary or the Administrative Law Judge may 
order any applicant to submit information in addition to that required 
by the applicable subpart.
    (h) An applicant may withhold a document required by this part on 
the grounds that it is privileged, but each document so withheld shall 
be identified and the applicant shall supply a brief description of the 
nature of the document, a written statement indicating the basis of the 
privilege claimed, and the names of the preparers and recipients of the 
document. If any interested party contests the assertion of privilege, 
the document shall be promptly submitted to the Assistant Secretary, or 
the Administrative Law Judge, if the matter has been assigned to a 
Judge. Where appropriate, an in camera inspection may be ordered.
    (i) The person submitting the application to the Department shall 
send a complete copy of the application to the Chief, Transportation 
Section, Antitrust Division of the Department of Justice, at the same 
time as it is filed with the Documentary Services Division.
    (j) The applicant shall, if requested, be responsible for 
expeditiously providing the application to any interested person, 
whether or not a party.
    (k) Unless otherwise specified in this subpart, all applications 
shall conform generally to the requirements set forth in 14 CFR part 
302, subpart A.
    (l) In exceptional circumstances, the Assistant Secretary may waive 
or alter the procedural requirements of this part to permit a 
transaction to proceed on an expedited basis.

[50 FR 31142, July 31, 1985, as amended by Amdt. 302-2, 54 FR 33499, 
Aug. 15, 1989; 65 FR 6456, Feb. 9, 2000]



Sec. 303.05  Applications requesting antitrust immunity.

    (a) Each application must state explicitly whether or not the 
applicant seeks antitrust immunity under the provisions of section 414 
of the Act. If antitrust immunity is requested, the application should 
specify whether the applicant seeks full immunity or immunity only from 
the provisions of sections 4, 4a and 4c of the Clayton Act, 15 U.S.C. 
15, 15a, 15c. Each application seeking antitrust immunity shall contain 
a statement explaining why the applicant believes immunity is in the 
public interest and necessary in order for the transaction to proceed.
    (b) [Reserved]
    (c) Any material misrepresentation of fact in such an application 
shall be grounds for rescission nunc pro tunc of any antitrust immunity 
granted as a result of the misrepresentation.
    (d) A request for renewal of any immunity granted does not operate 
under section 558 of Administrative Procedure Act, 5 U.S.C. 558(c), to 
extend the period of immunity conferred.

[50 FR 31142, July 31, 1985, as amended by Amdt. 303-2, 54 FR 33499, 
Aug. 15, 1989]



Sec. 303.06  Review of antitrust immunity.

    The Assistant Secretary may initiate a proceeding to review any 
antitrust immunity previously conferred by the Civil Aeronautics Board 
or the Department in any section 412 transaction. The Assistant 
Secretary may terminate or modify such immunity if the Assistant 
Secretary finds after notice and hearing that the previously conferred 
immunity is not consistent with the provisions of section 414. In any 
proceeding to review such immunity,

[[Page 329]]

the proponents of the immunity will have the burden of justifying the 
continuation of previously conferred immunity under the provisions of 
section 414.

[Amdt. 303-2, 54 FR 33499, Aug. 15, 1989]



Sec. 303.07  Transitional rule.

    If a section 412 application or a request for antitrust immunity 
under section 414 is pending on the date this part is amended, such 
application or request shall be deemed made pursuant to the provisions 
of this part, as amended.

[Amdt. 303-2, 54 FR 33499, Aug. 15, 1989]

Subpart B [Reserved]



Sec. Sec. 303.10-303.19  [Reserved]

Subpart C [Reserved]



Sec. Sec. 303.20-303.24  [Reserved]



                   Subpart D_Section 412 Applications



Sec. 303.30  General provisions concerning contents of applications.

    A Section 412 application shall contain the following general 
information:
    (a) The name, mailing address and primary line of business of each 
party to the contract, agreement or request for authority to discuss a 
possible cooperative working arrangement.
    (b) If the contract or agreement for which approval is sought is not 
evidenced by a resolution of an air carrier association, the application 
shall contain a copy of the contract or agreement that is certified to 
be true and complete by each party to the contract of agreement. If the 
contract or agreement is set forth in an exchange of correspondence, 
copies of all such correspondence must be submitted and must be 
certified as true and complete by all parties to the contract or 
agreement. If the contract or agreement is oral, a memorandum fully 
describing the agreement must be submitted and must be certified as true 
and complete by all parties to the contract or agreement. If approval is 
sought for a request for authority to discuss a possible cooperative 
working arrangement, the application shall contain a complete 
description of the possible cooperative working arrangement and all 
matters to be discussed. The description shall be certified to be true 
and complete by each party to the proposed discussion.
    (c) If the contract, agreement or request for authority to discuss a 
cooperative working arrangement is evidenced by a resolution or other 
action of an air carrier association, the application shall contain the 
resolution or other action and a certification by an authorized employee 
of the association that the resolution or other action was duly adopted 
on a certain date. The authorized employee shall also specify in such 
certification the name of each air carrier that concurred in such 
resolution or other action and the name of each air carrier member that 
did not concur. Contracts, agreements and requests for authority to 
discuss cooperative working arrangements may be filed in this manner 
only if the Association has complied with 14 CFR part 263.



Sec. 303.31  Justification for the application.

    A section 412 application shall explain the nature and purpose of 
the contract, agreement or request to discuss a cooperative working 
arrangement and describe how it changes any price, rule or practice 
existing under a previously-approved application. The application also, 
consistent with Department of Transportation and CAB precedent, shall 
contain factual material, documentation and argument in support of the 
application. Economic analyses, when required, shall include full 
explanatory details, including data sources and allocation methods. If 
the applicants intend to rely on public benefits to justify approval 
they shall describe these benefits, including foreign policy and comity 
considerations.



Sec. 303.32  Service of the application.

    (a) Except as provided in paragraph (b) of this section, a section 
412 application described in Sec. 303.30(c) of this subpart and any 
related pleadings shall be served on any person or organization that has 
previously advised the air carrier association of its desire for

[[Page 330]]

service of such agreements. Each application shall contain the names and 
addresses of all persons served and a notice that any party in interest 
may within 21 days of the date of the application file comments with the 
Assistant Secretary in support or opposition to the application.
    (b) Service of IATA Traffic Conference agreements and amendments 
thereto upon any person or organization that previously has advised IATA 
of its desire for service of agreements may be accomplished by sending a 
summary notice specifying the filing date; the IATA memorandum number; 
the particular Conferences involved; the subject matter (e.g. cargo/
passenger, tariffs/agency matters/ procedures); the proposed effective 
date(s); the markets or Conference areas affected; the names of the 
carriers participating in the agreement; the names of all persons 
served; and a notice that any party in interest may within 21 days of 
the date of filing of the application file comments with the Assistant 
Secretary in support of or opposition to the application. A request for 
a complete copy of the application can be made under the provisions of 
Sec. 303.04(j).



Sec. 303.33  Modifications and cancellations.

    This subpart also applies to all modifications or cancellations of 
contracts or agreements or requests for authority to discuss a possible 
cooperative working arrangement.



             Subpart E_Procedures Upon Application or Review



Sec. 303.40  Determination of compliance.

    (a) Within 10 days after an application is filed pursuant to Sec. 
303.03, the Assistant Secretary will determine whether the application 
complies with the requirements of Sec. Sec. 303.04 and 303.05.
    (b) If the Assistant Secretary determines that the application is 
incomplete, he or she may issue a notice dismissing the application 
without prejudice. If the application is dismissed, and statutory time 
period for completion of proceedings will not begin to run until a 
completed application is filed.



Sec. 303.41  Notice.

    (a) The Documentary Service Division shall compile a weekly list of 
all applications filed under Sec. Sec. 303.04 and 303.05. The list 
shall include a description of the application, the docket number, date 
of filing, state that it may be reviewed in the Documentary Services 
Division, and indicate that interested parties may comment on the 
application or request a hearing within 21 days of the date of filling 
or other period as specified. The weekly list will normally be prepared 
on the following Monday, or as soon as possible, and will be posted on a 
public bulletin board in the Documentary Services Division. The list 
also shall be submitted for publication in the Federal Register.
    (b) In appropriate case, particularly when an application concerns a 
matter of broad public significance, the Assistant Secretary may cause a 
notice of an application and request for public comment to be published 
separately in the Federal Register.



Sec. 303.42  Comments on application.

    (a) Unless a different comment period is specified in the weekly 
list, or in a notice of filing published in the Federal Register, any 
person may file comments, responses to the application, and/or a request 
for a hearing within 21 days of the filing of an application.
    (b) Comments supporting or opposing an application or proposing 
conditions and responses thereto shall state with particularity the 
factual basis on which the person commenting relies, and provide 
affidavits or other material in support of the factual basis, if 
appropriate.
    (c) Requests for a formal oral evidentiary hearing must set out with 
specificity the material issues of fact in dispute that cannot be 
resolved without such a hearing. Vague, unsupported allegations will not 
suffice.



Sec. 303.43  Action following the comment period.

    (a) [Reserved]
    (b) Section 412 applications. After the period for which comments, 
requests for a hearing or responses to an order

[[Page 331]]

to show cause are due concerning a section 412 application, the 
Assistant Secretary may proceed by order requesting further information 
or justification or by order of approval or disapproval or, in 
appropriate cases, may proceed by order to show cause or by order 
instituting a full evidentiary hearing.
    (c) Notice to the public of any full evidentiary hearing or order to 
show cause concerning an application shall be made by publication in the 
Federal Register.

[50 FR 31142, July 31, 1985, as amended by Amdt. 303-2, 54 FR 33500, 
Aug. 15, 1989]



Sec. 303.44  Show cause proceedings.

    If the Assistant Secretary determines that an application, or review 
of a previously granted application, will be considered in a show cause 
proceeding, a tentative decision shall be issued inviting interested 
persons to show cause why the tentative decision should not be made 
final. Interested persons may respond to the order within the time 
specified in the order. Replies to such responses shall be permitted 
within the time specified in the order. Persons wishing to introduce 
additional facts into the record should incorporate such information in 
their responses or replies by affidavit. In the case of applications, 
show cause orders may be issued after the receipt of initial comments on 
the application.



Sec. 303.45  Evidentiary hearings.

    (a) If the Assistant Secretary determines that an application, or 
review of a previous granted application, should be the subject of a 
full evidentiary hearing, he or she shall issue an order so stating. The 
term ``full evidentiary hearing'' includes any hybrid format set out in 
the instituting order. This order shall set forth the issues that are to 
be considered in such hearing.
    (b) After the issuance of an order for a full evidentiary hearing, 
the Chief Administrative Law Judge shall promptly appoint an 
Administrative Law Judge to conduct such hearing in accordance with 
section 7 of the Administrative Procedure Act, 5 U.S.C. 556, and the 
Rules of Practice in part 302 of this chapter.
    (c) The applicants and the Assistant General Counsel for Aviation 
Enforcement and Proceedings shall be parties in any full evidentiary 
hearing held under these regulations. The Assistant Attorney General, 
Antitrust, shall be a party upon notice filed with the Administrative 
Law Judge. Other persons may intervene as parties as provided by Sec. 
302.20 of this chapter.
    (d) Within the time specified in the order instituting the full 
evidentiary hearing, the Administrative Law Judge shall recommend to the 
Assistant Secretary that the application be approved or denied or that 
the previously granted exemption approval or immunity should be 
terminated or continued in accordance with the standards of the Act. The 
recommendation shall be in writing, shall be based solely on the hearing 
record, and shall include a statement of the Administrative Law Judge's 
findings and conclusions, and the reasons or basis therefore, or all 
material issues of fact, law or discretion presented on the record. 
Copies of the recommendation shall be served on each party.
    (e) Within 10 days after the date the Administrative Law Judge 
serves his or her recommendation, any party may file written exceptions 
to the recommendation for consideration by the Assistant Secretary. 
Within 21 days after the service date of the judge's recommendation, any 
party may file a brief in support of or in opposition to any exceptions. 
This period may be altered by order of the Assistant Secretary, who may 
also authorize the filing of reply briefs.

[50 FR 31142, July 31, 1985, as amended at 65 FR 6456, Feb. 9, 2000]



Sec. 303.46  Decision by the Assistant Secretary.

    The Assistant Secretary shall decide, on the basis of the record and 
in accordance with the procedures prescribed in part 302 of this 
chapter, whether to grant or deny, in whole or in part, the application. 
A copy of the Assistant Secretary's final decision shall be served on 
all parties.

[[Page 332]]



PART 305_RULES OF PRACTICE IN INFORMAL NONPUBLIC INVESTIGATIONS--Table of Contents




Sec.
305.1 Applicability.
305.2 Definition.
305.3-305.4 [Reserved]
305.5 Initiation of investigation.
305.6 Appearance of witnesses.
305.7 Issuance of investigation subpenas.
305.8 [Reserved]
305.9 Rights of witnesses.
305.10 Nonpublic character of proceedings.
305.11 Procedures after investigation.
305.12 Motions to quash or modify an investigation subpena.

    Authority: 49 U.S.C. chapters 401, 417, 461; 5 U.S.C. 555, 556.

    Source: Docket No. 82, 50 FR 2421, Jan. 16, 1985, unless otherwise 
noted.



Sec. 305.1  Applicability.

    The provisions of this part shall govern informal nonpublic 
investigations, as distinguished from formal investigations and 
adjudicatory proceedings, undertaken by the Office of the Assistant 
General Counsel for Aviation Enforcement and Proceedings with a view to 
obtaining information from any person. While the Department seeks and 
encourages voluntary cooperation and believes that it is in the best 
interest of all parties concerned, it will utilize the procedures 
provided by this part to compel the disclosure of information by any 
person where DOT wishes to determine whether such person, or any other 
person, has been or is violating any provisions of Title IV or sections 
101(3), 1002, 1003, or 1108(b) of the Act, or any rule, regulation, 
order, certificate, permit, or letter or registration issued pursuant 
thereto by DOT and when the information appears to be relevant to the 
matter under investigation. This part shall not apply to employees or 
records of other agencies of the U.S. Government, the District of 
Columbia, or the several States and their political subdivisions.



Sec. 305.2  Definition.

    For the purpose of, and as used in this part, the term investigation 
means a non-adjudicatory, informal nonpublic investigation for the 
purpose of determining whether formal enforcement action should be 
instituted with respect to alleged violations of law.



Sec. Sec. 305.3-305.4  [Reserved]



Sec. 305.5  Initiation of investigation.

    An investigation may be initiated by order of the Department. 
Attorneys of the Office of the Assistant General Counsel for Aviation 
Enforcement and Proceedings shall conduct such investigations pursuant 
to the provisions of this part and they shall be designated 
Investigation Attorneys. Investigation Attorneys, administrative law 
judges and the DOT decisionmaker are hereby authorized to exercise and 
perform their duties and functions under this part in accordance with 
the provisions of the Act and the rules and regulations of the 
Department.



Sec. 305.6  Appearance of witnesses.

    Witnesses may be required to appear before any administrative law 
judge for the purpose of receiving their testimony or receiving from 
them documents or other data relating to any subject under 
investigation. Such testimony shall be mechanically or stenographically 
recorded, and a transcript thereof shall be made and incorporated in the 
record of the investigation.



Sec. 305.7  Issuance of investigation subpenas.

    (a) The Deputy General Counsel, the DOT decisionmaker, the chief 
administrative law judge or the administrative law judge designated to 
preside at the reception of evidence, may issue a subpena directing the 
person named therein to appear before a designated administrative law 
judge at a designated time and place to testify or to produce 
documentary evidence relating to any matter under investigation, or 
both. Each such subpena shall briefly advise the person required to 
testify or submit documentary evidence of the purpose and scope of the 
investigation, and a copy of the order initiating the investigation 
shall be attached to the subpena.
    (b) Witnesses subpenaed to appear shall be paid the fees and mileage 
prescribed in Sec. 302.7 of the Rules of Practice (14 CFR 302.7). 
Service of such subpenas shall be made in accordance with

[[Page 333]]

the provisions of Sec. 302.27(c) of the Rules of Practice (14 CFR 
302.27(c)).

[Docket No. 82, 50 FR 2421, Jan. 16, 1985, as amended at 65 FR 6456, 
Feb. 9, 2000]



Sec. 305.8  [Reserved]



Sec. 305.9  Rights of witnesses.

    Any person required to testify or to submit documentary evidence 
shall be entitled to procure, on payment of lawfully prescribed costs, a 
copy of any document produced by such person and of his or her own 
testimony as stenographically reported. Any person compelled to testify 
or to produce documentary evidence may be accompanied, represented, and 
advised by counsel.



Sec. 305.10  Nonpublic character of proceedings.

    Investigations shall be attended only by the witnesses and their 
counsel, the administrative law judge, the Investigation Attorney, other 
DOT personnel concerned with the conduct of the proceeding and the 
official stenographer. All orders initiating investigations, motions to 
quash or modify investigation subpenas, orders disposing of such 
motions, documents, and transcripts of testimony shall be part of the 
record in the investigation. Unless DOT determines otherwise, all orders 
initiating investigations which do not disclose the identity of the 
particular persons of firms under investigation shall be published in 
the Federal Register. Except as otherwise required by law, the remainder 
of the record of such proceedings shall constitute internal DOT 
documents which shall not be available to the general public. The use of 
such records in DOT proceedings subject to part 302 of the Rules of 
Practice shall be governed by Sec. Sec. 302.25(g) and 302.12 and by the 
law of evidence applicable to DOT proceedings.

[Docket No. 82, 50 FR 2421, Jan. 16, 1985, as amended at 65 FR 6456, 
Feb. 9, 2000]



Sec. 305.11  Procedures after investigation.

    Upon completion of the investigation, where the Deputy General 
Counsel, determines that no corrective action is warranted, the 
investigation will be closed, and any documentary evidence obtained in 
the investigation will be returned to the persons who produced it. Where 
remedial action is indicated by the investigation, the Deputy General 
Counsel will proceed pursuant to subpart D of part 302 of the Rules of 
Practice or will take such other action as may be appropriate.

[Docket No. 82, 50 FR 2421, Jan. 16, 1985, as amended at 65 FR 6456, 
Feb. 9, 2000]



Sec. 305.12  Motions to quash or modify an investigation subpena.

    Any person upon whom an investigation subpena is served may, within 
seven (7) days after such service or at any time prior to the return 
date thereof, whichever is earlier, file a motion to quash or modify 
such subpena with the administrative law judge who issued such subpena, 
or in the event the administrative law judge is not available, with the 
chief administrative law judge for action by himself or herself or by 
the DOT decisionmaker. Such motions shall be made in writing in 
conformity with Rules 3 and 4 of the Rules of Practice (part 302 of this 
subchapter); shall state with particularity the grounds therefor and the 
relief sought; shall be accompanied by the evidence relied upon and all 
such factual matter shall be verified in accordance with the provisions 
of Rule 4(b) of the aforesaid Rules of Practice. Written memoranda or 
briefs may be filed with the motions, stating the points and authorities 
relied upon. No oral argument will be heard on such motions unless the 
chief administrative law judge, the administrative law judge or the DOT 
decisionmaker directs otherwise. A subpena will be quashed or modified 
if the evidence whose production is required is not reasonably relevant 
to the matter under investigation, or the demand made does not describe 
with sufficient particularity the information sought, or the subpena is 
unlawful or unduly burdensome. The filing of a motion to quash or modify 
an investigation subpena shall stay the return date of such subpena 
until such motion is granted or denied. The DOT decisionmaker may at any 
time review, upon his or her own initiative, the ruling of an 
administrative law judge or the chief administrative law

[[Page 334]]

judge denying a motion to quash a subpena. In such cases, the DOT 
decisionmaker may order that the return date of a subpena which he or 
she has elected to review be stayed pending DOT action thereon.

[Docket No. 82, 50 FR 2421, Jan. 16, 1985, as amended at 65 FR 6457, 
Feb. 9, 2000]



PART 313_IMPLEMENTATION OF THE ENERGY POLICY AND CONSERVATION ACT--Table of Contents




Sec.
313.1 Purpose, scope, and authority.
313.2 Policy.
313.3 Definitions.
313.4 Major regulatory actions.
313.5 Energy information.
313.6 Energy statements.
313.7 Integration with environmental procedures.

    Authority: 42 U.S.C. 6362(b), 49 U.S.C. Chapter 401.

    Source: Docket No. 82, 50 FR 2425, Jan. 16, 1985, unless otherwise 
noted.



Sec. 313.1  Purpose, scope, and authority.

    (a) Chapter 77 (Energy Conservation) of Title 42 (The Public Health 
and Welfare), authorizes and directs certain actions to conserve energy 
supplies through energy conservation programs and where necessary, the 
regulation of certain energy uses, and to provide for improved energy 
efficiency of motor vehicles, major appliances, and certain other 
consumer products. In furtherance of these purposes, 42 U.S.C. 6362 
requires several transportation regulatory agencies, including DOT, to 
submit a number of reports to the Congress with respect to energy 
conservation and efficiency, and where practicable and consistent with 
the exercise of DOT's authority under other law, to include in any major 
regulatory action a statement of its probable impact on energy 
efficiency and energy conservation. 42 U.S.C. 6362(b) directs DOT to 
define the term ``major regulatory action'' by rule.
    (b) Section 40113 of Subtitle VII of Title 49 of the United States 
Code (Transportation)(``the Statute''), authorizes DOT to establish such 
rules, regulations, and procedures as are necessary to the exercise of 
its functions and are consistent with the purposes of the Statute.
    (c) The purpose of these regulations is to establish procedures and 
guidelines for the implementation of DOT's responsibility under 42 
U.S.C. 6362 to include in any major regulatory action taken by DOT a 
statement of the probable impact on energy efficiency and energy 
conservation.
    (d) These regulations apply to all proceedings before DOT, as 
provided herein.

[Docket No. 82, 50 FR 2425, Jan. 16, 1985, as amended at 60 FR 43528, 
43529, Aug. 22, 1995]



Sec. 313.2  Policy.

    (a) General. It is the policy of DOT to view the conservation of 
energy and the energy efficiency improvement goals of Chapter 77 of 
Title 42 as part of DOT's overall mandate, to be considered along with 
the several public interest and public convenience and necessity factors 
enumerated in section 40101 of the Statute. To the extent practicable 
and consistent with DOT's authority under the Statute and other law, 
energy conservation and efficiency are to be weighed in the 
decisionmaking process just as are DOT's traditional policies and 
missions.
    (b) Implementation. Implementation of this policy is through the 
integration of energy findings and conclusions into decisions, opinions, 
or orders in proceedings involving a major regulatory action, as defined 
in this part.
    (c) Proceedings in progress. The provisions of this part are 
intended primarily for prospective application. Proceedings in progress 
on the effective date of this part, in which an application has been 
docketed but no final decision made public, shall adhere to Sec. 
313.6(a) of this part, provided that the fair, efficient, and timely 
administration of DOT's regulatory activities is not compromised 
thereby. Nothing herein shall imply a requirement for new or additional 
hearings, a reopening of the record, or any other procedures which would 
tend to delay a timely decision in proceedings in progress.
    (d) Hearings. Public hearings will not normally be held for the 
purpose of implementing 42 U.S.C. 6362, particularly in connection with 
proposed actions

[[Page 335]]

which do not require notice and hearing as a prerequisite to decision 
under the Statute. Hearings may be ordered in exceptional circumstances 
where the proposed action is of great magnitude or widespread public 
interest and, in addition, presents complex issues peculiarly subject to 
resolution through evidentiary hearings and the process of cross-
examination.

[Docket No. 82, 50 FR 2425, Jan. 16, 1985, as amended at 60 FR 43528, 
43529, Aug. 22, 1995]



Sec. 313.3  Definitions.

    As used in this part:
    (a) Energy efficiency means the ratio of the useful output of 
services in air transportation to the energy consumption of such 
services.
    (b) Energy statement is a statement of the probable impact of a 
major regulatory action on energy efficiency and energy conservation, 
contained in a decision, opinion, order, or rule.
    (c) Major regulatory action is any decision by the DOT decisionmaker 
or administrative law judge requiring an energy statement pursuant to 
Sec. 313.4 of this part.
    (d) NEPA means the National Environmental Policy Act of 1969.
    (e) Statute means Subtitle VII of Title 49 of the United States Code 
(Transportation).

[Docket No. 82, 50 FR 2425, Jan. 16, 1985, as amended at 60 FR 43529, 
Aug. 22, 1995]



Sec. 313.4  Major regulatory actions.

    (a) Any initial, recommended, tentative or final decision, opinion, 
order, or final rule is a major regulatory action requiring an energy 
statement, if it:
    (1) May cause a near-term net annual change in aircraft fuel 
consumption of 10 million (10,000,000) gallons or more, compared to the 
probable consumption of fuel were the action not to be taken; or
    (2) Is specifically so designated by DOT because of its precedential 
value, substantial controversy with respect to energy conservation and 
efficiency, or other unusual circumstances.
    (b) Notwithstanding paragraph (a)(1) of this section, the following 
types of actions shall not be deemed as major regulatory actions 
requiring an energy statement:
    (1) Tariff suspension orders under section 41509 of the Statute, 
emergency exemptions or temporary exemptions not exceeding 24 months 
under section 40109 of the Statute and other proceedings in which timely 
action is of the essence;
    (2) Orders instituting or declining to institute investigations or 
rulemaking, setting or declining to set applications for hearing, on 
reconsideration, or on requests for stay;
    (3) Other procedural or interlocutory orders;
    (4) Actions taken under delegated authority; and
    (5) Issuance of a certificate where no determination of public 
convenience and necessity is required.
    (c) Notwithstanding paragraph (a)(1) of this section, DOT may 
provide that an energy statement shall not be prepared in a proceeding 
which may result in a major regulatory action, if it finds that:
    (1) The inclusion of an energy statement is not consistent with the 
exercise of DOT's authority under the Statute or other law;
    (2) The inclusion of an energy statement is not practicable because 
of time constraints, lack of information, or other unusual 
circumstances; or
    (3) The action is taken under laws designed to protect the public 
health or safety.

[Docket No. 82, 50 FR 2425, Jan. 16, 1985, as amended at 60 FR 43529, 
Aug. 22, 1995]



Sec. 313.5  Energy information.

    (a) It shall be the responsibility of applicants and other parties 
or participants to a proceeding which may involve a major regulatory 
action to submit sufficient information about the energy consumption and 
energy efficiency consequences of their proposals or positions in the 
proceeding to enable the administrative law judge or the DOT 
decisionmaker, as the case may be, to determine whether the proceeding 
will in fact involve a major regulatory action for purposes of this 
part, and if so, to consider the relevant energy factors in the decision 
and prepare the energy statement.

[[Page 336]]

    (b) In proceedings involving evidentiary hearings, the energy 
information shall be submitted at such hearings pursuant to DOT's usual 
procedural regulations and practices, under control of the 
administrative law judge or other hearing officer.
    (c) In proceedings not involving evidentiary hearings, the energy 
information shall be submitted at such time as other materials in 
justification of an application are submitted. Where an application 
itself is intended as justification for DOT action, the energy 
information shall be submitted with the application. In rulemakings not 
involving hearings, the energy information shall normally be submitted 
along with comments on the notice of proposed rulemaking, or as directed 
in any such notice or any advance notice.



Sec. 313.6  Energy statements.

    (a) Each major regulatory action shall include, to the extent 
practicable, consideration of the probable impact of the action taken or 
to be taken upon energy efficiency and conservation. The administrative 
law judge or the DOT decisionmaker, as the case may be, shall normally 
make findings and conclusions about:
    (1) The net change in energy consumption;
    (2) The net change in energy efficiency; and
    (3) The balance struck between energy factors and other public 
interest and public convenience and necessity factors in the decision.
    (b) Energy findings and conclusions contained in any initial or 
recommended decision are a part of that decision and thus subject to 
discretionary review by DOT.
    (c) In the case of orders to show cause initiated by DOT, energy 
findings and conclusions may be omitted if adequate information is not 
available. In such instances, the energy statement shall be integrated 
into the final decision.



Sec. 313.7  Integration with environmental procedures.

    (a) In proceedings in which an environmental impact statement or a 
finding of no significant impact is prepared by a responsible official 
pursuant to DOT's procedures implementing the National Environmental 
Policy Act of 1969 (NEPA), the energy information called for by this 
part may be included in that statement or declaration in order to yield 
a single, comprehensive document. In such instances, the DOT's NEPA 
procedures shall govern the submission of the energy information. 
However, it shall remain the responsibility of the administrative law 
judge or the DOT decisionmaker, as the case may be, to make the findings 
and conclusions required by Sec. 313.6(a) of this part.
    (b) A determination that a major regulatory action within the 
meaning of 42 U.S.C. 6362 and this part may be involved in a proceeding 
is independent from any determination that the proceeding is a ``major 
Federal action significantly affecting the quality of the human 
environment'' within the meaning of NEPA, and vice versa.

[Docket No. 82, 50 FR 2425, Jan. 16, 1985, as amended at 60 FR 43528, 
43529, Aug. 22, 1995]



PART 314_EMPLOYEE PROTECTION PROGRAM--Table of Contents




                            Subpart A_General

Sec.
314.1 Applicability.
314.2 Definitions.
314.3 Conformity with subpart A of part 302.
314.4 Information requirements.
314.5 Major contractions.
314.6 Qualifying dislocation.

            Subpart B_Determination of Qualifying Dislocation

314.10 Beginning of proceeding.
314.11 Applications.
314.12 Answers.
314.13 Disposition of applications.
314.14 Show-cause order.
314.15 Oral proceedings.
314.16 Final determination.

                      Subpart C_Major Contractions

314.20 Regular monthly computation.
314.21 Advance determinations.
314.22 Notice of major contraction.

    Authority: Secs. 204, 407, Pub. L. 85-726, as amended, 72 Stat. 743, 
766, 49 U.S.C. 1324, 1377; sec. 43, Pub. L. 95-504, 92 Stat. 1750 (49 
U.S.C. 1552).

    Source: Docket No. 82, 50 FR 2426, Jan. 16, 1985, unless otherwise 
noted.

[[Page 337]]


    Editorial Note: The reporting requirements contained in part 314 
have been approved by the Office of Management and Budget under control 
number 3024-0053.



                            Subpart A_General



Sec. 314.1  Applicability.

    Section 43 of the Airline Deregulation Act of 1978, Pub. L. 95-504, 
establishes an employee protection program. After a determination by DOT 
that an air carrier has undergone a qualifying dislocation, the 
Secretary of Labor gives financial assistance to certain employees of 
the carrier. This part sets out procedures for the Department to 
determine whether a qualifying dislocation has occurred.



Sec. 314.2  Definitions.

    As used in this part:
    Bankruptcy means an adjudication of bankruptcy under Title 11 of the 
U.S. Code.
    Carrier means an air carrier that on October 24, 1978, held a 
certificate issued under section 401 of the Federal Aviation Act of 
1958.



Sec. 314.3  Conformity with subpart A of part 302.

    Except where they are inconsistent with this part, the provisions of 
subpart A of part 302 of this chapter shall apply to proceedings under 
this part.



Sec. 314.4  Information requirements.

    The Department may require any carrier to submit any information 
that it considers necessary to carry out its functions under this part.



Sec. 314.5  Major contractions.

    A major contraction is a reduction by at least 7\1/2\ percent of the 
total number of full-time employees of an air carrier within a 12-month 
period, and includes an advance determination of major contraction as 
set forth in Sec. 314.21. The method by which DOT determines whether a 
carrier has undergone a major contraction is set forth in subpart C.



Sec. 314.6  Qualifying dislocation.

    A qualifying dislocation is a bankruptcy or major contraction of a 
carrier, the major cause of which is the change in regulatory structure 
provided by the Airline Deregulation Act of 1978.



            Subpart B_Determination of Qualifying Dislocation



Sec. 314.10  Beginning of proceeding.

    A proceeding to determine whether a bankruptcy or major contraction 
is a qualifying dislocation begins either with an application filed with 
the Department or an investigation on DOT's own initiative. Proceedings 
that begin with an application are governed by Sec. Sec. 314.11 through 
314.16. DOT-initiated proceedings are governed by Sec. Sec. 314.14 
through 314.16.



Sec. 314.11  Applications.

    (a) Who may file. An application may be filed by an employee who has 
been deprived of employment or adversely affected with respect to 
compensation, or by a representative of one or more such employees.
    (b) Title and contents. Applications shall be titled ``Application 
for Determination of Qualifying Dislocation,'' and shall contain, with 
respect to at least one employee:
    (1) Name and address of the employee;
    (2) Number of years employed by carrier as of October 24, 1978;
    (3) Name and address of the applicant, if different from paragraph 
(b)(1);
    (4) Name of carrier-employer;
    (5) Position held by employee immediately before being deprived of 
employment or adversely affected with respect to compensation;
    (6) Date on which employee was deprived of employment or adversely 
affected with respect to compensation; and
    (7) An explanation of the applicant's basis for claiming that a 
qualifying dislocation has occurred, including all supporting evidence 
available to the applicant.
    (c) Service. The Department will serve a copy of each application on 
the affected carrier, the collective bargaining representatives of that 
carrier's employees, the Secretary of Labor, and any State agencies that 
are acting as agents of the Secretary of

[[Page 338]]

Labor to administer the Employee Protection Program.

(Approved by the Office of Management and Budget under control number 
3024-0053)



Sec. 314.12  Answers.

    Any person may file an answer to an application within 15 days after 
the application is served.



Sec. 314.13  Disposition of applications.

    (a) After the due date for answers, the Department will dismiss the 
application or begin an investigation to determine whether a qualifying 
dislocation has occurred.
    (b) The Department will dismiss an application if it does not name 
an employee who, on October 24, 1978, had been employed by a carrier for 
at least 4 years.
    (c) The Department will dismiss an application if the carrier has 
neither become bankrupt nor undergone a major contraction.
    (d) The Department will dismiss an application even though the 
carrier has become bankrupt or undergone a major contraction, if it 
finds that the bankruptcy or major contraction clearly did not have as 
its major cause the change in regulatory structure provided by the 
Airline Deregulation Act.
    (e) A DOT order dismissing an application will announce the reasons 
for the dismissal.



Sec. 314.14  Show-cause order.

    When the Department makes a preliminary determination of whether the 
major cause of the bankruptcy or major contraction was the change in 
regulatory structure provided by the Airline Deregulation Act of 1978, 
it will issue an order announcing a tentative decision that a qualifying 
dislocation has, or has not, occurred. The order will direct all 
interested persons to show cause why the tentative decision should not 
be made final, and will allow 30 days for objections to be filed. The 
Department will publish a summary of the order in the Federal Register 
and serve a copy of the order on each of the following:
    (a) The applicant and the applicant's representative, if any;
    (b) The affected carrier;
    (c) The collective bargaining representatives of the carrier's 
employees; and
    (d) The Secretary of Labor;
    (e) State agencies that are acting as agents of the Secretary of 
Labor to administer the Employee Protection Program.



Sec. 314.15  Oral proceedings.

    The Department will provide for an oral evidentiary hearing, with 
notice published in the Federal Register and served on the persons 
listed in Sec. 314.14, if there are material issues of decisional fact 
that cannot otherwise be adequately resolved. The DOT decisionmaker may 
in his or her discretion hear oral argument before making a final 
determination.



Sec. 314.16  Final determination.

    The Department will publish in the Federal Register a summary of an 
order announcing its final determination and, within 3 business days 
after the determination, serve a copy of the order on the persons listed 
in Sec. 314.14.



                      Subpart C_Major Contractions



Sec. 314.20  Regular monthly computation.

    (a) The Department will monitor the number of full-time employees of 
each carrier, including employees deprived of employment because of a 
strike, as reported monthly by carriers in accordance with part 241 of 
this chapter.
    (b) The DOT does not require monthly reporting of the number of 
positions that are vacant as a result of terminations for cause and, 
except as set forth in paragraph (c)(3) of this section, will not 
account for those positions in computing major contractions. In the 
cases set forth in paragraphs (c)(1) and (c)(2) of this section, the DOT 
presumes that the number of employment positions vacant as a result of 
terminations for cause is small enough that accounting for them would 
not change the result.
    (c) Each month, with respect to each carrier:
    (1) If the carrier's current reported full-time employment level is 
92 percent or less of any of the carrier's preceding 12 monthly levels, 
DOT will find

[[Page 339]]

that the carrier has undergone a major contraction.
    (2) If the current reported level is 93 percent or more of each of 
the carrier's preceding 12 monthly levels, the Department will not find 
that the carrier has undergone a major contraction.
    (3) If neither of the conditions described in paragraphs (c)(1) and 
(c)(2) of this section is present, the Department will ascertain by 
special report from the carrier, and add to the reported employment 
levels, the number of positions that were vacant in each of the relevant 
months as a result of terminations for cause. If the resulting figure 
for the current month is 92.5 percent or less of the resulting figure 
for any of the preceding 12 months, the Department will find that the 
carrier has undergone a major contraction. Otherwise, the Department 
will not make such a finding.



Sec. 314.21  Advance determinations.

    (a) If circumstances indicate that a major contraction will occur, 
the Department may make an advance determination of a major contraction 
without waiting for the regular monthly computation set forth in Sec. 
314.20. The Department will consider whether to make an advance 
determination either on its own initiative or upon receipt of an 
application from an employee who has been deprived of employment or 
adversely affected with respect to compensation, or a representative of 
one or more such employees.
    (b) An application under this section shall be titled ``Application 
for Advance Determination of Major Contraction.'' It shall contain the 
information set forth in Sec. 314.11 (b)(1) through (b)(6) and an 
explanation of the applicant's basis for claiming that a major 
contraction will occur, including all supporting evidence available to 
the applicant. A person may consolidate an application under this 
section with an application under Sec. 314.11 for determination of a 
qualifying dislocation.
    (c) The Department will terminate an advance determination of major 
contraction whenever it finds that the predicted major contraction has 
not occurred or will not occur.



Sec. 314.22  Notice of major contraction.

    Upon finding a major contraction under Sec. 314.20, or making or 
terminating an advance determination under Sec. 314.21, the Department 
will publish the finding in the Federal Register and send written notice 
of it to the persons listed in Sec. 314.14.



PART 323_TERMINATIONS, SUSPENSIONS, AND REDUCTIONS OF SERVICE--Table of Contents




Sec.
323.1 Applicability.
323.2 Definitions.
323.3 Who shall file notices.
323.4 Contents of notices.
323.5 Time for filing notices.
323.6 General requirements for notices.
323.7 Service of notices.
323.8 Exemptions.
323.9 Objections to notices.
323.10 Time for filing objections.
323.11 Answers to objections.
323.12 General requirements for objections and answers.
323.13 DOT actions.
323.14 Temporary suspension authority for involuntary interruption of 
          service.
323.15 Report to be filed after strikes.
323.16 Listings in schedule publications.
323.17 Delays in discontinuing service.
323.18 Carriers' obligations when terminating, suspending, or reducing 
          air service.
323.19 Withdrawal notice by exemption carriers in certain limited-entry 
          markets.

    Authority: 49 U.S.C. Chapters 401, 411, 417.

    Source: Docket No. 82, 50 FR 2430, Jan. 16, 1985, unless otherwise 
noted.



Sec. 323.1  Applicability.

    This part applies to certificated air carriers who terminate or 
suspend service to a point, or in a market, and to all air carriers who 
terminate, suspend, or reduce service below the level of essential air 
service under 49 U.S.C. 41731-41742.

[Docket No. 82, 50 FR 2430, Jan. 16, 1985, as amended by Doc. No. OST-
96-1269, 61 FR 19165, May 1, 1996]



Sec. 323.2  Definitions.

    As used in this part:
    Certificated carrier means a direct air carrier holding authority to 
provide air transportation granted by the Department of Transportation 
(``DOT'') or the

[[Page 340]]

former Civil Aeronautics Board (``CAB'') in the form of a certificate of 
public convenience and necessity under section 41102 of the Title 49 of 
the United States Code (Transportation) (``the Statute'') or an all-
cargo air transportation certificate to perform all-cargo air 
transportation under section 41103 of the Statute.
    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. (For availability of Department of 
Transportation Orders, see 49 CFR part 7, subpart E and appendix A.)
    Essential air service is that air transportation which the 
Department has found to be essential under Subchapter II of Chapter 417 
of the Statute.
    FAA means the Federal Aviation Administration, U.S. Department of 
Transportation.
    FAA-designated hub means any airport serving a small, medium, or 
large air traffic hub listed in the Department of Transportation 
publication, Airport Activity Statistics of Certificated Route Carriers.
    Statute means Subtitle VII of Title 49 of the United States Code 
(Transportation).
    United States includes the several States, the District of Columbia, 
and the several territories and possessions of the United States. State 
includes any of the individual entities comprising the United States.

[Docket No. 82, 50 FR 2430, Jan. 16, 1985, as amended by Doc. No. OST-
96-1269, 61 FR 19165, May 1, 1996]



Sec. 323.3  Who shall file notices.

    (a) Terminations, suspensions, or reductions by certificated 
carriers. The notice described in Sec. 323.4(a) shall be filed by any 
certificated carrier that intends to:
    (1) Terminate or suspend all passenger air transportation that it is 
providing to any eligible place in the United States when that 
termination or suspension will leave no certificated carriers serving 
that place. Service shall be considered to be terminated or suspended 
whenever it is operated less than 5 days per week, with three or more 
intermediate stops, or in one direction only between the two places;
    (2) Reduce passenger air transportation so that any eligible place 
receives less than the level of essential air service determined by DOT;
    (3) Terminate or suspend all passenger air transportation that it is 
providing to any eligible place in the United States for which DOT has 
not issued an essential air service determination under either Sec. 
325.5 or Sec. 325.7 of this chapter, when that termination or 
suspension will leave only one certificated carrier serving that place. 
Service shall be considered to be terminated or suspended whenever it is 
operated less than 5 days per week, with three or more intermediate 
stops, or in one direction only between the two places;
    (4) Reduce passenger air transportation to any eligible place in 
Alaska for which DOT has not determined the level of essential air 
service so that the service between that place and every other place 
served by a certificated carrier is either:
    (i) Less than two round trip flights per week, or
    (ii) Less than the average weekly number of round trip flights 
actually provided during calendar year 1976, or
    (iii) Less than the number of flights specified under an agreement 
between DOT and the State of Alaska; or
    (5) Terminate, suspend, or reduce passenger air transportation at an 
eligible place for which DOT has issued, or is required to issue, an 
essential air service determination under section 41731 or section 41733 
of the Statute so that the total available seats of all the carriers 
linking that place to FAA-designated hubs will be reduced by 33 percent 
or more during a 90-day period. Service to a hub shall be considered to 
be terminated or suspended whenever it is operated less than 5 days per 
week, with three or more intermediate stops, or in one direction only 
between two places.

[[Page 341]]

    (b) [Reserved]
    (c) Uncertificated carriers. The notice described in Sec. 323.4(a) 
shall be filed by any uncertificated carrier that intends to terminate, 
suspend, or reduce:
    (1) Air transportation so that any eligible place receives less than 
the level of essential air service determined by the DOT;
    (2) Passenger air transportation to any eligible place for which DOT 
has not determined the level of essential air service, other than a 
place in Alaska, so that there is no FAA-designated hub from which the 
place receives at least two round trip flights per day, 5 days per week; 
or
    (3) Passenger air transportation to any eligible place in Alaska, 
for which DOT has not determined the level of essential air service, so 
that the service between that place and every other place served by a 
certificated carrier is either:
    (i) Less than two round trip flights per week, or
    (ii) Less than the average number of weekly round trip flights 
actually provided during calendar year 1976, or
    (iii) Less than the number of flights specified under an agreement 
between DOT and the State of Alaska.
    (d) For the purpose of this section, in ascertaining the level of 
air transportation being provided to a place or between two places, air 
transportation that has been the subject of a notice filed under this 
section shall be considered not in operation for the duration of the 
notice period.
    (e) If a certificated carrier was, before October 24, 1978, granted 
authority to suspend air transportation, and that authority ends on a 
stated date, the carrier shall comply with the requirements of this part 
before continuing the suspension beyond that date.
    (f) If a certificated carrier was, before October 24, 1978, granted 
authority to terminate or suspend air transportation, but has not 
suspended service, the carrier shall comply with the requirements of 
this part before terminating or suspending service.

[Docket No. 82, 50 FR 2430, Jan. 16, 1985, as amended by Doc. No. OST-
96-1269, 61 FR 19165, 19166, May 1, 1996]



Sec. 323.4  Contents of notices.

    (a) The notice required under Sec. 323.3 (a) and (c) shall contain:
    (1) Identification of the carrier, including address and telephone 
number.
    (2) Statement whether the carrier is a certificated carrier or an 
uncertificated carrier.
    (3) Names of all other air carriers serving the point at the time of 
filing.
    (4) Description of the service to be terminated, suspended, or 
reduced, including:
    (i) Arrival and departure times at the affected points of the 
flights to be discontinued,
    (ii) Aircraft type used,
    (iii) Routes of the flights to be discontinued, and a statement of 
which routes, if any, will be left without nonstop or single-plane 
service from a certificated carrier by the intended change, and
    (iv) Date of intended termination, suspension, or reduction of 
service.
    (5) A statement whether DOT has determined the level of essential 
air service for the point, and
    (i) If such a determination has been made, a statement whether the 
intended termination, suspension, or reduction will reduce air 
transportation to the place below the essential level; or
    (ii) If such a determination has not been made, and the place is an 
eligible place, a statement whether the intended termination, 
suspension, or reduction reasonably appears to deprive the place of 
essential air service, and an explanation.
    (6) If the place is an eligible place, the calendar date when 
objections are due under Sec. 323.10.
    (7) Proof of service upon all persons specified in Sec. 323.7(a). 
The proof of service shall include the names of all carriers served and 
the names and addresses of all other persons served.
    (b) [Reserved]
    (c) DOT may require any carrier filing notice to supply additional 
information.

(Approved by the Office of Management and Budget under control number 
3024-0030)

[Docket No. 82, 50 FR 2430, Jan. 16, 1985, as amended by Doc. No. OST-
96-1269, 61 FR 19165, 19166, May 1, 1996]

[[Page 342]]



Sec. 323.5  Time for filing notices.

    (a) Except as specified by paragraph (b) of this section, a notice 
required by Sec. 323.3 shall be filed at least:
    (1) 90 days before the intended termination, suspension, or 
reduction, if it is filed by a certificated carrier or by an 
uncertificated carrier receiving compensation under 49 U.S.C. 41731-
41742 for service to the place;
    (2) 30 days before the intended termination, suspension, or 
reduction, if it is filed by an uncertificated carrier not receiving 
compensation under section 419 of the Act for service to the place.
    (b) The notice required by Sec. 323.3(a)(3) shall be filed at least 
30 days, and the notice required by Sec. 323.3(a)(1) shall be filed at 
least 60 days, before the intended termination or suspension.

[Docket No. 82, 50 FR 2430, Jan. 16, 1985, as amended by Doc. No. OST-
96-1269, 61 FR 19165, 19166, May 1, 1996]



Sec. 323.6  General requirements for notices.

    (a) Each notice filed under this part shall, unless otherwise 
specified, conform to the procedural rules of general applicability in 
subpart A of part 302 of this chapter.
    (b) Each notice filed under this part shall be titled to indicate 
the place(s) involved, and to indicate whether it is a 30-, 60-, or 90-
day notice and whether it involves a termination, a suspension, or a 
reduction of air transportation.

[Docket No. 82, 50 FR 2430, Jan. 16, 1985, as amended by Doc. No. OST-
96-1269, 61 FR 19166, May 1, 1996]



Sec. 323.7  Service of notices.

    (a) A copy of each notice required by Sec. 323.3 shall be served 
upon:
    (1) The chief executive of the principal city or other unit of local 
government at the affected place. The principal city is the one named, 
or previously named, in the section 41102 certificate by virtue of which 
the place qualifies as an eligible place. For places in Alaska or Hawaii 
that are designated as eligible places without having been listed on a 
section 41102 certificate, the principal city is the most populous 
municipality at the place.
    (2) [Reserved]
    (3) The State agency with jurisdiction over transportation by air in 
the State containing any community required to be served under paragraph 
(a)(1) of this section. If there is no such State agency, the notice 
shall be sent to the governor of that State.
    (4) The manager of, or other individual with direct supervision over 
and responsibility for, the airport at any community required to be 
served under paragraph (a)(1) of this section.
    (5) The Postmaster General (marked for the attention of the 
Assistant General Counsel, Transportation), if the carrier filing the 
notice is authorized to transport United States mail to or from any 
community required to be served under paragraph (a)(1) of this section.
    (6) Each air carrier providing scheduled service to a non-hub or 
FAA-designated small hub that is directly affected by the notice.
    (7) The DOT Regional Office for the region in which the affected 
point is located.
    (8) Any other person designated by DOT.
    (b) [Reserved]
    (c) Local communities, State agencies, and airport managers shall be 
served personally or by registered or certificated mail. All other 
persons may be served by ordinary mail.

[Docket No. 82, 50 FR 2430, Jan. 16, 1985, as amended by Doc. No. OST-
96-1269, 61 FR 19166, May 1, 1996]



Sec. 323.8  Exemptions.

    Carriers are exempted from paragraphs (a)(1), (a)(3), and (a)(5) of 
Sec. 323.3 to the extent that those provisions require them to file a 
notice when terminating or suspending the domestic leg of an 
international flight (fill-up service).

[Doc. No. OST-96-1269, 61 FR 19166, May 1, 1996]



Sec. 323.9  Objections to notices.

    (a) Any person may file an objection requesting DOT to prohibit any 
termination, suspension, or reduction of air transportation to an 
eligible place that is the subject of a notice filed under this part.
    (b) Objections shall contain:

[[Page 343]]

    (1) Identification of the objector, including address and telephone 
number.
    (2) A statement of DOT action requested.
    (3) The schedules, routes, carriers, and aircraft types for all air 
transportation to the affected place other than that proposed to be 
terminated, suspended, or reduced.
    (4) A suggested reasonable level of essential air service to the 
affected place.
    (5) [Reserved]
    (6) A justification of the suggested level of essential air service.
    (7) Proof of service on the carrier filing the notice objected to, 
on all airport managers and State and local governments on whom the 
notice was filed, and any other person designated by DOT. The proof of 
service shall include the names of all carriers served and the names and 
addresses of all other persons served.
    (c) Objectors are strongly urged to include in their objections 
facts to support the suggested level of essential air service (e.g., 
traffic and enplanement data, other market studies, facts descriptive of 
the place's isolation or dependence on air transportation).

(Approved by the Office of Management and Budget under control number 
3024-0030)

[Docket No. 82, 50 FR 2430, Jan. 16, 1985, as amended by Doc. No. OST-
96-1269, 61 FR 19165, 19166, May 1, 1996]



Sec. 323.10  Time for filing objections.

    (a) Objections shall be filed not later than:
    (1) 12 days from the date of filing of a 30-day notice;
    (2) 15 days from the date of filing of a 60-day notice; or
    (3) 20 days from the date of filing of a 90-day notice.
    (b) The Department may accept late-filed objections, upon motion, 
for good cause shown.
    (c) Whenever a notice has been filed earlier than required under 
Sec. 323.5, the Department may extend the time for filing an objection 
to that notice.



Sec. 323.11  Answers to objections.

    (a) Any person may file an answer to an objection filed under this 
part.
    (b) An answer must be filed not later than 7 business days after the 
filing of the objection to which it responds. Late-filed answers may be 
allowed, and extensions of filing time granted, by the Department for 
the same reasons as for objections.
    (c) An answer may contain the same type of facts and discussion 
permitted for objections under this part, and must contain:
    (1) Proof of service on the objector, on all persons on whom the 
objection was required to be served, and on any other person designated 
by the Department. The proof of service shall include the names and 
addresses of all persons served.
    (2) Identification of the answering party, including address and 
telephone number.

(Approved by the Office of Management and Budget under control number 
3024-0030)



Sec. 323.12  General requirements for objections and answers.

    (a) Each objection and answer filed under this part shall, unless 
otherwise specified, conform to the procedural rules of general 
applicability in subpart A of part 302 of this chapter.
    (b) Each objection shall be titled ``Objection to Termination, 
Suspension, or Reduction of Air Service,'' and shall identify the notice 
to which it responds. Each answer shall be titled ``Answer to Objection 
to Termination, Suspension, or Reduction of Air Service,'' and shall 
identify the objection to which it responds.



Sec. 323.13  DOT actions.

    (a) If an objection has been filed under this part, DOT will dispose 
of the objection by order.
    (b) If no objection has been filed within the time allowed by Sec. 
323.10(a), DOT may:
    (1) By order prohibit a termination, suspension, or reduction that 
reasonably appears to deprive any eligible place of essential air 
transportation;
    (2) Issue a notice or a final order that it will take no action on a 
notice filed under Sec. 323.3; or
    (3) Take no action.

[Docket No. 82, 50 FR 2430, Jan. 16, 1985, as amended by Doc. No. OST-
96-1269, 61 FR 19166, May 1, 1996]

[[Page 344]]



Sec. 323.14  Temporary suspension authority for involuntary interruption of service.

    (a) Any air carrier may temporarily suspend service without filing a 
notice under Sec. 323.3 for any interruption of service that the 
carrier cannot reasonably be expected to foresee or control, such as 
rules, standards, or other action, or inaction, of the Administrator of 
the Federal Aviation Administration or of a foreign government, 
emergency measures, strikes, weather conditions, construction work on 
airports, or disasters. However, the provisions of this paragraph shall 
apply to interruptions due to airport inadequacies only if the carrier 
is unable to serve the place through any airport convenient to the place 
with the type of equipment last regularly used to serve the place.
    (b) In the case of an interruption of service caused by a strike, 
the carrier shall give immediate notice of the interruption to DOT. 
Suspension authority under this section due to a strike shall expire 90 
days after employees return to work.
    (c) If service to a place is interrupted for more than 3 consecutive 
days for reasons beyond the carrier's control other than a strike, the 
holder shall give notice to DOT within 3 days following the date of 
first interruption, setting forth the date of first interruption and a 
full statement of the reasons for the interruption.
    (d) The notice required by paragraph (b) or (c) of this section 
shall be marked for the attention of the Director, Office of Aviation 
Analysis.

(Approved by the Office of Management and Budget under control number 
3024-0030)

[Docket No. 82, 50 FR 2430, Jan. 16, 1985, as amended by Doc. No. OST-
96-1269, 61 FR 19166, May 1, 1996]



Sec. 323.15  Report to be filed after strikes.

    (a) Within 15 days following resumption of service after a strike, 
an air carrier shall file a report with DOT containing a list of all 
flights that were canceled, the date they were canceled, and the date 
service was resumed.
    (b) The report shall be marked for the attention of the Director, 
Office of Aviation Analysis.

(Approved by the Office of Management and Budget under control number 
3024-0030)

[Docket No. 82, 50 FR 2430, Jan. 16, 1985, as amended by Doc. No. OST-
96-1269, 61 FR 19166, May 1, 1996]



Sec. 323.16  Listings in schedule publications.

    Each air carrier filing a notice under Sec. 323.3 (a)(2), (a)(4), 
(a)(5), or (c) shall continue to list the affected flights in all 
generally-distributed schedule publications in which the flight was 
listed before the notice. The listings shall continue until DOT permits 
the flights to be discontinued. The listings may include a notice 
stating that the flights are ``to be discontinued as of (date) subject 
to government approval.''



Sec. 323.17  Delays in discontinuing service.

    If transportation that is the subject of a notice under this part is 
not discontinued within 90 days of the intended date stated in the 
notice, a new notice must be filed before the service may be 
discontinued. However, if DOT requires the carrier to provide service 
beyond the stated date, the carrier need not file a new notice if it 
discontinues the service within 90 days after DOT permits it to do so.



Sec. 323.18  Carriers' obligations when terminating, suspending, or reducing air service.

    Any air carrier that terminates, suspends, or reduces air service, 
whether or not subject to the notice requirements of this part, shall 
make reasonable efforts to contact all passengers holding reservations 
on the affected flights to inform them of the flights' cancellation.



Sec. 323.19  Withdrawal notice by exemption carriers in certain limited-entry markets.

    As a condition on the exemption, an air carrier operating under 
exemption authority in an international market which is the subject of a 
carrier selection proceeding shall file a notice with the Department at 
least ninety days

[[Page 345]]

before it terminates service in that market. Once such a notice has been 
filed, the carrier may not terminate service in that market during the 
notice period unless the air carrier chosen in the selection proceeding 
enters the market and the Department grants the operating carrier 
permission to do so. The Department may allow earlier termination for 
good cause when in the public interest.

[Doc. No. 43403, 51 FR 43188, Dec. 1, 1986]



PART 325_ESSENTIAL AIR SERVICE PROCEDURES--Table of Contents




Sec.
325.1 Purpose.
325.2 Applicability.
325.3 Definitions.
325.4 State and local participation.
325.5 Determinations and designations.
325.6 Periodic reviews.
325.7-325.9 [Reserved]
325.10 Modification of the designated level of essential air service.
325.11 Form of documents.
325.12 Service of documents.
325.13 Environmental evaluations and energy information not required.
325.14 Conformity with subpart A of part 302.

    Authority: 49 U.S.C. Chapters 401, 417.

    Source: Docket No. 82, 50 FR 2434, Jan. 16, 1985, unless otherwise 
noted.



Sec. 325.1  Purpose.

    The purpose of this part is to establish procedures to be followed 
in designating eligible points and in determining essential air 
transportation levels for eligible points, and in the appeals and 
periodic reviews of these determinations, under section 419 of the Act.



Sec. 325.2  Applicability.

    This part applies to essential air service determinations for 
communities designated as eligible under section 419(a) of the Act and 
to eligible point designations and essential air service determinations 
for communities that qualify under section 419(b) of the Act. It applies 
to the gathering of data by the Department, and to the participation of 
State, local, and other officials and other interested persons in the 
designation and determination processes.
    Note: Criteria for designating eligible points under section 419(b) 
are contained in part 270 of this chapter. Guidelines for deciding 
essential air service levels are contained in part 398 of this chapter.



Sec. 325.3  Definitions.

    As used in this part, eligible point means:
    (a) Any point in the United States, the District of Columbia, and 
the several territories and possessions of the United States to which 
any direct air carrier was authorized, under a certificate issued by CAB 
under section 401 of the Act, to provide air service on October 24, 
1978, whether or not such service was actually provided;
    (b) Any point in the United States and the several territories and 
possessions of the United States that was deleted from a section 401 
certificate between July 1, 1968 and October 24, 1978, inclusive, and 
that has been designated as an eligible point under the Act; or
    (c) Any other point in Alaska or Hawaii that has been designated as 
an eligible point under the Act.



Sec. 325.4  State and local participation.

    (a) DOT, on a periodic basis, will send a questionnaire to each 
eligible point that is served by not more than one certificated air 
carrier, or is designated as an eligible point under section 419(b) of 
the Act, or for which DOT is reviewing its essential air service needs. 
The questionnaire will be addressed to:
    (1) The chief executive of the principal city, or other unit of 
local government at the affected point, that is named or has been 
previously named in a qualifying section 401 certificate. For points in 
Alaska or Hawaii that are named DOT as eligible points without having 
been listed on a section 401 certificate, the principal city is the most 
populous municipality at the point;
    (2) The individual or entity with direct supervision over and 
responsibility for the airport at the eligible point; and
    (3) The State agency with jurisdiction over air transportation in 
the State containing the eligible point. If there is no such State 
agency, the

[[Page 346]]

questionnaire will be sent to the governor of that State.
    (b) Within 60 days after receipt of the questionnaire, five copies 
of the response shall be filed in the Documentary Services Division, 
unless the Department specifies another date. If no response is received 
within the period, essential air service for that eligible point may 
temporarily be set at the minimum level prescribed in section 419(f) of 
the Act.
    (c) Any other interested person may, during the 60-day response 
period, submit information relevant to the essential air service level 
of that eligible point by filing in the Documentary Services Division, 
five copies of a document titled with the name of the point involved.
    (d) As necessary, the DOT may request additional information to 
supplement the questionnaire.

(Approved by the Office of Management and Budget under control number 
3024-0037)



Sec. 325.5  Determinations and designations.

    (a) Not later than October 24, 1979, after reviewing all information 
submitted, CAB issued determinations of the essential level of air 
service for eligible points that, on October 24, 1978, were served by 
not more than one direct air carrier holding a certificate under section 
401 of the Act for scheduled service to the point.
    (b) DOT will issue a determination of the essential level of air 
service for a point within 6 months after each of the following events:
    (1) A notice is received that service to an eligible point will be 
reduced to only one carrier that holds a section 401 certificate;
    (2) A point is designated as an eligible point under section 419(b) 
of the Act and either paragraph (c) of this section, paragraph (d) of 
this section, or Sec. 325.7(e); or
    (3) A review was conducted of essential air service of that point 
under Sec. 325.6.
    (c) Not later than January 1, 1982, CAB designated the communities 
described in Sec. 270.2(a) and (b) as eligible points or as ineligible.
    (d) After January 1, 1982, DOT may designate communities in Alaska 
or Hawaii as eligible points if they apply for such designation.



Sec. 325.6  Periodic reviews.

    (a) The Department will start a periodic review of essential air 
service within 1 year of the date of the previous determination of 
essential air service for eligible points receiving subsidized service, 
within 2 years of the date of the previous determination for eligible 
points in Alaska, and within 3 years of the date of the previous 
determination for eligible points without subsidized air service.
    (b) The review shall be conducted in accordance with the procedures 
in Sec. Sec. 325.4, 325.5 and 325.7.
    (c) The Department may review the designation under section 419(b) 
of a community as an eligible point to determine whether that point 
continues to meet the criteria in part 270 of this chapter.



Sec. Sec. 325.7-325.9  [Reserved]



Sec. 325.10  Modification of the designated level of essential air service.

    (a) Any person may file with DOT a petition titled ``Petition for 
Modification of Essential Air Service Level,'' asking to modify the 
essential air service level at a point.
    (b) The petition shall identify the point affected, and specifically 
state the reasons why the petitioner believes the designated essential 
level is inadequate. It should contain any facts and arguments that 
support its requests, and describe the level of essential air service 
that should be substituted.
    (c) Any person may, within 30 days after the filing of a petition 
for modification, file an answer to that petition titled ``Answer to 
Petition for Modification.''
    (d) After review, the Department may seek more information and the 
procedures of Sec. Sec. 325.5 and 325.7 will be followed.

(Approved by the Office of Management and Budget under control number 
3024-0037)



Sec. 325.11  Form of documents.

    All documents filed under this part shall be filed in the 
Documentary Services Division, U.S. Department of Transportation, 400 
Seventh Street,

[[Page 347]]

S.W., Washington, D.C. 20590, and on their front page state:
    (a) The title of the document;
    (b) The name of the affected community;
    (c) The name, address, and telephone number of a person who can be 
contacted for further information concerning the subject of the 
document; and
    (d) In the case of a responsive document, the docket number of the 
document to which it responds.



Sec. 325.12  Service of documents.

    Any person, except one filing individually as a consumer, who files 
a document under this part, including responses to the questionnaire, 
shall serve that document upon those listed in Sec. 325.4(a) of this 
part and upon the following:
    (a) The governor of the State in which the eligible point is 
located;
    (b) Each air carrier providing scheduled service to the affected 
eligible point;
    (c) In the case of a responsive document, the one who filed the 
document to which it responds; and
    (d) The U.S. Postal Service, Assistant General Counsel, 
Transportation Division, Law Department, Washington, D.C. 20260.



Sec. 325.13  Environmental evaluations and energy information not required.

    Notwithstanding any provision of part 312 or part 313 of this 
chapter, a person filing a petition or appeal under this part is not 
required to file an environmental evaluation or energy information with 
the application.



Sec. 325.14  Conformity with subpart A of part 302.

    Except where they are inconsistent, the provisions of subpart A of 
part 302 of this chapter shall apply to proceedings under this part.



PART 330_PROCEDURES FOR COMPENSATION OF AIR CARRIERS--Table of Contents




                      Subpart A_General Provisions

Sec.
330.1 What is the purpose of this part?
330.3 What do the terms used in this part mean?
330.5 What funds will the Department distribute under this part?
330.7 [Reserved]
330.9 What are the limits on compensation to air carriers?
330.11 Which carriers are eligible to apply for compensation under this 
          part?
330.13 If an air carrier received compensation under the Act previously, 
          does it have to submit a third-round application?
330.15-330.17 [Reserved]

                    Subpart B_Application Procedures

330.21 [Reserved]
330.23 To what address must air carriers send their applications?
330.25 What are the components of an air carrier's application for 
          compensation?
330.27 What information must certificated and commuter air carriers 
          submit?
330.29 What information must air taxi operators submit on Form 330 
          (Final) and Form 330-C?
330.31 What data must air carriers submit concerning ASMs or RTMs?
330.33 Must carriers certify the truth and accuracy of data they submit?
330.35 What records must carriers retain?
330.37 Are carriers which participate in this program subject to audit?
330.39 What are examples of types of losses that the Department does not 
          allow?

                Subpart C_Set-Aside for Certain Carriers

3330.41 What funds is the Department setting aside for eligible classes 
          of air carriers?
330.43 What classes of air carriers are eligible under the set-aside?
330.45 What is the basis on which air carriers will be compensated under 
          the set-aside?

Appendix A to Part 330--Forms for All Carriers
Appendix B to Part 330 [Reserved]
Appendix C to Part 330--Forms for Air Taxi Operators

    Authority: Pub. L. 107-42, 115 Stat. 230 (49 U.S.C. 40101 note); 
sec. 124(d), Pub. L. 107-71, 115 Stat. 631 (49 U.S.C. 40101 note).

    Source: Docket No. OST-2001-10885, 67 FR 54066, Aug. 20, 2002, 
unless otherwise noted.



                      Subpart A_General Provisions



Sec. 330.1  What is the purpose of this part?

    The purpose of this part is to establish procedures to implement 
section 101(a)(2) of the Air Transportation

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Safety and System Stabilization Act (``the Act''), Public Law 107-42, 
115 Stat. 230 (49 U.S.C. 40101 note). This statutory provision is 
intended to compensate air carriers for direct losses incurred as a 
result of the Federal ground stop order issued by the Secretary of 
Transportation, and any subsequent orders, following the terrorist 
attacks of September 11, 2001, and incremental losses incurred from 
September 11 through December 31, 2001, as the result of those attacks.



Sec. 330.3  What do the terms used in this part mean?

    The following terms apply to this part:
    Air carrier means any U.S. air carrier, as defined in 49 U.S.C. 
40102.
    Air taxi operator means an air carrier, other than a commuter air 
carrier, that holds authority issued under 14 CFR part 298 and 14 CFR 
part 121 or part 135.
    Available seat-miles (ASMs) means the aircraft miles flown on each 
flight stage by an air carrier multiplied by the number of seats 
available for revenue use on that stage.
    Certificated air carrier means an air carrier holding a certificate 
issued under 49 U.S.C. 41102 or 41103.
    Commuter air carrier means an air carrier as defined in 14 CFR 
298.2(e) that holds a commuter air carrier authorization issued under 49 
U.S.C. 41738.
    Incremental loss means a loss incurred by an air carrier in the 
period of September 11, 2001-December 31, 2001, as a result of the 
terrorist attacks on the United States of September 11, 2001. It does 
not include any loss that would have been incurred if the terrorist 
attacks on the United States of September 11, 2001, had not occurred.
    Regional air carrier means an air carrier that operates at least one 
large aircraft and has annual operating revenues of less than $100 
million.
    Revenue ton-miles (RTMs) means the aircraft miles flown on each 
flight stage by the air carrier multiplied by the number of tons of 
revenue cargo transported on that stage. For purposes of this part, RTMs 
include only those resulting from all-cargo flights.



Sec. 330.5  What funds will the Department distribute under this part?

    Under this part, the Department will distribute up to the full 
amount of the compensation it determines is payable to air carriers 
under section 103(b) of the Act, and up to the full amount of the set-
aside provided for in subpart C of this part to air carriers eligible 
for it. The Department may require additional information to support 
payments to individual carriers in connection with this final payment.



Sec. 330.7  [Reserved]



Sec. 330.9  What are the limits on compensation to air carriers?

    (a) You are eligible to receive compensation equaling the lesser of 
your direct and incremental losses or the amount calculated by the 
formula set forth in section 103(b)(2) of the Act.
    (b) If at any time we determine that a carrier has been compensated 
in an amount that exceeds the amount to which it is entitled under 
section 103(b) of the Act or the subpart C set-aside program, the 
Department will notify the carrier of the basis for the determination, 
the amount that must be repaid, and the procedures to follow for making 
a repayment. We will follow collection procedures under the Federal 
Claims Collection Act of 1966 (31 U.S.C. 3701 et seq.,) to the extent 
required by law, in recovering such overpayments. This process will also 
apply to collection of overpayments by the Department as a result of an 
audit by representatives of the Department, including the Office of the 
Inspector General, or the Comptroller General under section 103 of the 
Act, which may be the subject of a separate collection action.



Sec. 330.11  Which carriers are eligible to apply for compensation under this part?

    (a) If you are a certificated air carrier, a commuter air carrier, 
an air taxi, or an indirect air carrier, you are eligible to apply for 
compensation under Subpart B of this part.
    (b) [Reserved]

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    (c) If you are a foreign air carrier, commercial operator, flying 
club, fractional owner, general aviation operator, fixed base operator, 
flight school, or ticket agent, you are not eligible to apply for 
compensation under this part.



Sec. 330.13  If an air carrier received compensation under the Act previously, does it have to submit a third-round application?

    Yes, if, as an air carrier, you previously received compensation 
under section 101(a)(2) of the Act, you must, in all cases, submit a 
complete Form 330 (Final) and other documents required under this part. 
You must do so even if you are not seeking additional compensation.



Sec. Sec. 330.15-330.17  [Reserved]



                    Subpart B_Application Procedures



Sec. 330.21  [Reserved]



Sec. 330.23  To what address must air carriers send their applications?

    (a) You must submit your application, and all required supporting 
information, in hard copy (not by fax or electronic means) to the 
following address:

U.S. Department of Transportation, Aviation Relief Desk (X-50), 400 7th 
Street, SW., Room 6401, Washington, DC 20590.

    (b) If your complete application is not sent to the address in 
paragraph (a) of this section as required in this section, the 
Department will not accept it.



Sec. 330.25  What are the components of an air carrier's application for compensation?

    As an air carrier applying for compensation under this part, you 
must provide to the Department all materials described in Sec. Sec. 
330.27-330.33. The Department will not accept your application if it 
does not comply fully with the requirements of this subpart.



Sec. 330.27  What information must certificated and commuter air carriers submit?

    (a) You must submit Form 330 (Final), found in Appendix A to this 
part. Data supplied on Form 330 (Final) in Appendix A to this part must 
be tied only to the airline portion of their businesses and must exclude 
non-air transportation related expenses.
    (b) [Reserved]
    (c) Air carriers that operate both passenger/combination aircraft 
and all-cargo aircraft and routinely report to the Department ASMs and 
RTMs separately for both types of flights must submit two versions of 
Form 330 (Final) in Appendix A to this part to seek compensation on both 
an ASM and RTM basis. Financial and operational data (both actual and 
forecasted) must be disaggregated and correlate exclusively to one or 
the other type of operation.
    (d) You must include the following financial information on Form 330 
(Final) for the period September 11, 2001 through December 31, 2001:
    (1) Your pre-September 11, 2001, profit/loss forecast for the period 
beginning September 11, 2001, and ending December 31, 2001. This 
forecast must reflect seasonal reductions in capacity and the cost 
savings associated with such reductions. Documentation verifying that 
the pre-September 11, 2001, forecast was, in fact, completed before that 
date must also be submitted with your application.
    (2) Your actual results for that same period reflecting any losses 
that were a direct result of the terrorist attacks of September 11, 
2001. These actual results must incorporate all cost reductions 
associated with capacity reductions and furloughs you made due to the 
reduced demand for air service after the September 11th attacks (e.g., 
employee pay adjustments and furloughs, changes in aircraft fleet in 
service, schedule and capacity changes, etc.).
    (3) The difference between your forecast profits/losses and actual 
results for that period (i.e., the difference between the figures in 
paragraphs (d) (1) and (2) of this section).
    (4) The actual losses you report must be net losses, before taxes, 
taking into

[[Page 350]]

account savings from such items as reductions in passenger and cargo 
handling costs, fuel consumption, landing fees, revenue/traffic-related 
expenses (e.g., commissions, food and beverage, booking fees, credit 
card fees), and savings of other costs due to the ground stop and 
subsequent schedule/capacity/staff reductions (including savings from 
layoffs of employees, adjusted for severance payments), as well as 
proceeds from business recovery insurance or other insurance payments. 
You must not report as losses insurance premium increases that have been 
or will be compensated by the Government under the Act, or other losses 
that have been or will be compensated by other subsidies or assistance 
provided by Federal, state, or local governments.



Sec. 330.29  What information must air taxi operators submit on Form 330 (Final) and Form 330-C?

    As an air taxi operator, you must complete Form 330 (Final) in 
accordance with the requirements in Sec. 330.27. You must also complete 
pages 2, 5, and 6 (certifying pages 2 and 5) of Form 330-C as shown in 
Appendix C to this part. Explanatory notes are included on that Form.



Sec. 330.31  What data must air carriers submit concerning ASMs or RTMs?

    (a) Except as provided in paragraph (d) of this section, if you are 
applying for compensation as a passenger or combination passenger/cargo 
carrier, you must have submitted your August 2001 total completed ASM 
report to the Department for your system-wide air service (e.g., 
scheduled, non-scheduled, foreign, and domestic).
    (b) Except as provided in paragraph (d) of this section, if you are 
applying for compensation as an all-cargo carrier, you must have 
submitted your RTM reports to the Department for the second calendar 
quarter of 2001.
    (c) In calculating and submitting ASMs and RTMs under paragraphs (a) 
and (b) of this section, there are certain things you must not do:
    (1) Except at the direction of the Department, or to correct an 
error that you document to the Department, you must not alter the ASM or 
RTM reports you earlier submitted to the Department. Your ASMs or RTMs 
for purposes of this part are as you have reported them to the 
Department according to existing standards, requirements, and 
methodologies established by the Office of Airline Information (Bureau 
of Transportation Statistics).
    (2) You must not include ASMs or RTMs resulting from operations by 
your code-sharing or alliance partners.
    (d) If you have not previously reported ASMs or RTMs as provided in 
paragraphs (a) and (b) of this section for a given operation or 
operations, you may submit your calculation of ASMs or RTMs to the 
Department with your application. You must certify the accuracy of this 
calculation and submit with your application the data and assumptions on 
which the calculation is based. After reviewing your submission, the 
Department may modify or reject your calculation.
    (1) If you are a direct air carrier that has operated your aircraft 
for a lessee (i.e., a wet lease, or aircraft, crew, maintenance, and 
insurance (ACMI) operation), you may submit your calculation of ASMs or 
RTMs for these flights. Your submission must include the following 
elements:
    (i) Documentation that you otherwise qualify as an air carrier;
    (ii) Documentation that you are a wet lessor, and an explanation of 
why you did not previously report ASMs or RTMs for the operations in 
question;
    (iii) Documentation of the identify of the wet lessees involved in 
these operations; and
    (iv) Accurate and auditable records of ASMs or RTMs actually flown 
during the relevant time period for these operations.
    (2) If you are an indirect air carrier, you may submit your 
calculation of ASMs or RTMs for flights that direct air carriers have 
operated for you under contract or other arrangement. Your submission 
must include the following elements:
    (i) Documentation that you otherwise qualify as an air carrier;
    (ii) Documentation that you are an indirect air carrier, and an 
explanation of why you did not previously report ASMs or RTMs for the 
operations in question;

[[Page 351]]

    (iii) Documentation of the identify of the direct air carriers 
involved in these operations; and
    (iv) Accurate and auditable records of ASMs or RTMs actually flown 
during the relevant time period for these operations.



Sec. 330.33  Must carriers certify the truth and accuracy of data they submit?

    Yes, with respect to all information submitted or retained under 
Sec. Sec. 330.27-330.31 and 330.35, your Chief Executive Officer (CEO), 
Chief Financial Officer (CFO), or Chief Operating Officer (COO) or, if 
those titles are not used, the equivalent officer, must certify that the 
submitted information was prepared under his or her supervision and is 
true and accurate, under penalty of law.



Sec. 330.35  What records must carriers retain?

    As an air carrier that applies for compensation under this part, you 
must retain records as follows:
    (a) You must retain all books, records, and other source and summary 
documentation supporting your claims for compensation of direct and 
incremental losses pursuant to Sections 101, 103, and 106 of the Act. 
This requirement includes, but is not limited to, the following:
    (1) You must retain supporting evidence and documentation 
demonstrating the validity of the data you provide under Sec. Sec. 
330.27-330.31.
    (2) You must retain documentation verifying that your pre-September 
11, 2001, forecast was the most recent forecast available to that date.
    (3) You must also retain documentation outlining the assumptions 
made for all forecasts and the source of the data and other inputs used 
in making the forecasts.
    (4) You must agree to have your independent public accountant retain 
all reports, working papers, and supporting documentation pertaining to 
the agreed-upon procedures engagement conducted by your independent 
public accountant under the requirements of this part for a period of 
five years. The accountant must make this information available for 
audit and examination by representatives of the Department of 
Transportation (including the Office of the Inspector General), the 
Comptroller General of the United States, or other Federal agencies.
    (b) You must preserve and maintain this documentation in a manner 
that readily permits its audit and examination by representatives of the 
Department of Transportation (including the Office of the Inspector 
General), the Comptroller General of the United States, or other Federal 
agencies.
    (c) You must retain this documentation for five years.
    (d) You must make all requested data available within one week from 
a request by the Department of Transportation (including the Office of 
the Inspector General), the Comptroller General of the United States, or 
other Federal agencies.



Sec. 330.37  Are carriers which participate in this program subject to audit?

    (a) All payments you receive from the Department of Transportation 
under this program are subject to audit. All information you submit with 
your applications and all records and documentation that you retain are 
also subject to audit.
    (b) Except as provided in paragraph (d) of this section, before you 
are eligible to receive payment from the final installment of 
compensation under the Act, there must be an independent public 
accountant's report based on the performance of procedures agreed upon 
by the Department of Transportation with respect to the carrier's 
forecasts and actual results. The independent public accountant's 
engagement must be performed in accordance with generally accepted 
professional standards applicable to agreed-upon procedures engagements. 
You must submit the results of the agreed-upon procedures engagement to 
the Department with your application for payment of the final 
installment.
    (c) The following are the core requirements for the independent 
public accountant's review:
    (1) Determine that the earnings forecast presented to the Department 
was inclusive of the entity's full operations

[[Page 352]]

as an air carrier and was the most current forecast prepared prior to 
September 11, 2001;
    (2) Determine that, if forecasts presented to the Department for 
prior periods had material variances from actual results, the carrier 
provided explanations to account for such variances;
    (3) Determine that the methodology for allocating revenue and 
expenses to the periods September 1-10 and September 11-30, from the 
forecasted and actual September results, was in accordance with air 
carrier records and analyses;
    (4) Determine that the actual expenses and revenues presented to the 
Department are in accordance with the official accounting records of the 
carrier or the financial statements included in the carrier's Securities 
and Exchange Commission Form 10-Q (for availability, see 17 CFR 249.0-
1(b)), and consistent with Generally Accepted Accounting Principles 
(GAAP), except to the extent that GAAP would require or allow treatment 
that would be inconsistent with the Act or this part;
    (5) Verify that the carrier provided explanations supporting the 
allocation methodology used if the forecasted and/or actual results for 
the September 11-30 period was different from allocating 66.7 percent of 
the total amounts for September;
    (6) Determine that the carrier provided full explanations for all 
material differences between forecast and actual results for the 
September 11-30, 2001 period and the October 1--December 31, 2001 
period;
    (7) Determine that the amounts included in management's explanations 
for such material differences were in accordance with the carrier's 
analysis of such fluctuations, and the amounts and explanations were 
traceable to supporting general ledger accounting records or analyses 
prepared by the carrier;
    (8) Determine that the amounts presented to the Department in Form 
330 (Final), pages 2-3, in appendix A to this part that the carrier 
identified as adjustments to the difference between the pre-September 11 
forecast and actual results for the period September 11 through December 
31, 2001, were in accordance with the official accounting records of the 
carrier or the financial statements included in the carrier's Securities 
and Exchange Commission Form 10-Q, and consistent with GAAP, except to 
the extent that GAAP would require or allow treatment that would be 
inconsistent with the Act or this part;
    (9) Determine that the insurance recoveries and government payments 
reported by the air carrier and offsetting income were in accordance 
with the air carrier's general ledger accounting records;
    (10) Determine that the information presented in the air carrier's 
Supplemental Certification were in accordance with the air carrier's 
general ledger accounting records;
    (11) Include in the auditor's report full documentation for each 
exception taken by the auditor; and
    (12) Identify air carrier reports and records utilized in performing 
the procedures in paragraphs (c)(1) through (11) of this section.
    (d) If you are a carrier that reported fewer than 10 million ASMs 
for the month of August 2001 or fewer than two million RTMs for the 
quarter ending June 30, 2001, you are not required to report to the 
Department on the basis of an agreed-upon procedures engagement by an 
independent public accountant. Instead, you may report on the basis of 
simplified procedures approved by the Department.



Sec. 330.39  What are examples of types of losses that the Department does not allow?

    (a)(1) The Department generally does not allow air carriers to 
include in their calculations aircraft impairment charges, charges or 
expenses attributable to lease buyouts, or other losses that are not 
actually and fully realized in the period between September 11, 2001 and 
December 31, 2001.
    (2) The Department will consider requests to accept adjustments for 
extraordinary or non-recurring expenses or revenues on a case-by-case 
basis. If, as a carrier, you make such a request, you must demonstrate 
the following to the satisfaction of the Department:
    (i) That the expense or revenue was (or was not, as appropriate) the 
direct

[[Page 353]]

result of the terrorist attacks of September 11, 2001;
    (ii) That the revenue or expense was reported in accordance with 
Generally Accepted Accounting Principles (GAAP), except to the extent 
that the GAAP would require or allow treatment that would be 
inconsistent with the Act or this part;
    (iii) That an expense was fully borne within the September 11--
December 31, 2001, period and is permanent; and
    (iv) That the resulting additional compensation would not be 
duplicative of other allowances for compensation.
    (b) The Department generally does not accept claims by air carriers 
that cost savings should be excluded from the calculation of incurred 
losses. Consequently, the Department will generally not allow such 
claims to be used in a way that has the effect of increasing the 
compensation for which an air carrier is eligible.



                Subpart C_Set-Aside for Certain Carriers



Sec. 330.41  What funds is the Department setting aside for eligible classes of air carriers?

    The Department is setting aside a sum of up to $35 million to 
compensate eligible classes of air carriers, for which application of a 
distribution formula containing ASMs as a factor, as set forth in 
section 103(b)(2) of the Act, would inadequately reflect their share of 
direct and incremental losses.



Sec. 330.43  What classes of air carriers are eligible under the set-aside?

    There are two classes of eligible air carriers:
    (a) You are a Class I air carrier if you are an air taxi, regional, 
commuter or indirect air carrier and you reported 75,000 or fewer ASMs 
to the Department for the month of August, 2001.
    (b) You are a Class II air carrier if you are an air taxi, regional, 
commuter or indirect air carrier and you reported between 75,001 and 10 
million ASMs to the Department for the month of August 2001.

[Docket No. OST-2001-10885, 67 FR 54066, Aug. 20, 2002, as amended at 68 
FR 44458, July 29, 2003]



Sec. 330.45  What is the basis on which air carriers will be compensated under the set-aside?

    (a) Except as provided in paragraph (c) of this section, as an air 
carrier eligible for compensation through the set-aside, you will be 
compensated for an amount calculated as provided in paragraph (b) of 
this section.
    (b)(1) As a Class I carrier, your compensation will be calculated 
using a fixed ASM rate equivalent to the mean losses per ASM for all 
Class I carriers applying for compensation.
    (2) As a Class II carrier, your compensation will be calculated 
using a graduated ASM rate equivalent to--
    (i) The mean loss per ASM for all Class I carriers applying for 
compensation, for each of the first 75,000 ASMs reported; and
    (ii) The mean remaining loss per ASM for all Class II carriers 
applying for compensation for each ASM in excess of 75,000.
    (3) For purposes of this paragraph (b), ASMs are those verified by 
the Department for August 2001.
    (4) Any compensation payments previously made to air carriers 
eligible for the set-aside will be deducted from the amount calculated 
as the carrier's total compensation under the set-aside formula.
    (c) If you are an air carrier whose compensation is calculated using 
an ASM rate as provided in paragraph (b) of this section, your 
compensation will not be less than an amount equivalent to 25 percent of 
the direct and incremental transportation-related losses you have 
demonstrated to the satisfaction of the Department were incurred as a 
direct result of the terrorist attacks of September 11, 2001. Your 
compensation will not be more than an amount equivalent to the mean 
percentage of compensation for losses received by passenger and 
combination air carriers that are not eligible for the set-aside funds, 
unless you would have been compensated for more than that percentage of 
losses under the formula set forth in section 103(b)(2) of the Act, in 
which case you will be compensated under that formula.

[Docket No. OST-2001-10885, 67 FR 54066, Aug. 20, 2002, as amended at 68 
FR 44458, July 29, 2003]

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Sec. Appendix A to Part 330--Forms for All Carriers

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Sec. Appendix B to Part 330 [Reserved]

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Sec. Appendix C to Part 330--Forms for Air Taxi Operators

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PART 331_PROCEDURES FOR REIMBURSEMENT OF GENERAL AVIATION OPERATORS AND SERVICE PROVIDERS IN THE WASHINGTON, DC AREA--Table of Contents




                      Subpart A_General Provisions

Sec.
331.1 What is the purpose of this part?
331.3 What do the terms used in this part mean?
331.5 Who may apply for reimbursement under this part?
331.7 What losses will be reimbursed?
331.9 What funds will the Department distribute under this part?
331.11 What are the limits on reimbursement to operators or providers?
331.13 What is the eligible reimbursement period under this part?
331.15 How will other grants, subsidies, or incentives be treated by the 
          Department?
331.17 How will the Department verify and audit claims under this part?
331.19 Who is the final decision maker on eligibility for, and amounts 
          of reimbursement?

                    Subpart B_Application Procedures

331.21 What information must operators or providers submit in their 
          applications for reimbursement?
331.23 In what format must applications be submitted?
331.25 To what address must operators or providers send their 
          applications?
331.27 When are applications due under this part?

   Subpart C_Set-Aside for Operators and Providers at Certain Airports

331.31 What funds are available to applicants under this subpart?
331.33 Which operators and providers are eligible for the set-aside 
          under this subpart?
331.35 What is the basis upon which operators and providers will be 
          reimbursed through the set-aside under this subpart?
331.37 What will happen to any remaining funds if operators and 
          providers at the three Maryland airports make reimbursable 
          claims totaling less than $5 million?

Appendix to Part 331--Application Form for Reimbursement Under Section 
          185 of Public Law 109-115

    Authority: 49 U.S.C. 322(a).

    Source: 72 FR 17387, Apr. 9, 2007, unless otherwise noted.



                      Subpart A_General Provisions



Sec. 331.1  What is the purpose of this part?

    The purpose of this part is to establish procedures to implement 
section 185 of the Transportation, Treasury, Housing and Urban 
Development, the Judiciary, the District of Columbia, and Independent 
Agencies Appropriation Act, 2006 (``the Act'' or ``the 2006 
Appropriation Act''), Public Law 109-115, 119 Stat. 2396. Section 185 is 
intended to reimburse certain fixed-base general aviation operators or 
providers of general aviation ground support services at five airports 
in the Washington, DC metropolitan area for direct and incremental 
losses due to the actions of the Federal government to close airports to 
general aviation operations following the terrorist attacks of September 
11, 2001.



Sec. 331.3  What do the terms used in this part mean?

    The following terms apply to this part:
    Airport means Ronald Reagan Washington National Airport; College 
Park Airport in College Park, Maryland; Potomac Airfield in Fort 
Washington, Maryland; Washington Executive/Hyde Field in Clinton, 
Maryland; or Washington South Capitol Street Heliport in Washington, DC.
    Closed or closure means the period of time until the first general 
aviation operations were generally permitted at Ronald Reagan Washington 
National Airport; until November 30, 2005 at Washington South Capitol 
Street Heliport; or the earliest that transient traffic was generally 
permitted to return to the three Maryland airports.
    Department means the U.S. Department of Transportation and all its 
components, including the Office of the Secretary (OST) and the Federal 
Aviation Administration (FAA).
    Direct and incremental losses means losses incurred by a fixed-base 
general aviation operator or a provider of general aviation ground 
support services as a result of the Federal government's closure of an 
airport following the terrorist attacks against the United States on 
September 11, 2001. These losses do not include any losses that

[[Page 368]]

would have been incurred had the terrorist attacks on the United States 
of September 11, 2001 not occurred.
    Fixed-base general aviation operator means an entity based at a 
particular airport that provides services to and support for general 
aviation activities, including the provision of fuel and oil, aircraft 
storage and tie-down, airframe and engine maintenance, avionics repair, 
baggage handling, deicing, and the provision of air charter services. 
The term does not include an entity that exclusively provides products 
for general aviation activities (e.g. a parts supplier).
    Forecast or forecast data means a projection of revenue and expenses 
during the eligible reimbursement period had the attacks of September 
11, 2001 not occurred.
    Incurred means to become liable or subject to (as in ``to incur a 
debt'').
    Loss means something that is gone and cannot be recovered.
    Provider of general aviation ground support services means an entity 
that does not qualify as a fixed-base general aviation operator but 
operates at a particular airport and supplies services, either 
exclusively or predominantly, to support general aviation activities, 
including flight schools or security services. The term does not include 
an entity that exclusively provides products for general aviation 
activities (e.g. a parts or equipment supplier).
    You means fixed-base general aviation operators or providers of 
general aviation ground support services.



Sec. 331.5  Who may apply for reimbursement under this part?

    If you are or were an eligible fixed-base general aviation operator 
or provider of general aviation ground support services (collectively 
``operators or providers'') at an eligible airport or airports in the 
Washington, DC area, and incurred direct or incremental losses during 
the applicable reimbursement periods stated at Sec. 331.13 that were 
solely due to the actions of the Federal government following the 
terrorist attacks on the United States on September 11, 2001, you may 
apply for reimbursement under this part. If you are applying for 
reimbursement based on losses at more than one airport, then you must 
submit separate applications for each airport. For example, if you are a 
provider of general aviation ground support services at Ronald Reagan 
Washington National Airport and Potomac Airfield in Fort Washington, 
Maryland, you must submit two separate applications.



Sec. 331.7  What losses will be reimbursed?

    (a) You may be reimbursed an amount up to the difference between the 
adjusted income you actually or reasonably forecasted for the eligible 
reimbursement period and the actual adjusted income you earned during 
the eligible reimbursement period. If you did not forecast for the 
eligible reimbursement period or any part of the eligible reimbursement 
period, you may be reimbursed for the difference between what you can 
show you would have reasonably expected to earn as adjusted income 
during that period had the airport at which you are or were an operator 
or provider not been closed as the result of Federal government actions, 
and the actual adjusted income you earned during the eligible 
reimbursement period. Adjusted income is calculated on a pretax basis. 
It is the total of Operating Profit or Loss (i.e., Total Operating 
Revenues minus Total Operating Expenses) and Nonoperating Income (Loss); 
however, it excludes certain expenses, including lobbying expenses that 
were incurred to promote reimbursement for losses after the terrorist 
attacks or enact what became Section 185 of Pub. L. 109-115. 
Extraordinary, non-recurring, or unusual adjustments, and capital losses 
are normally ineligible for reimbursement. If you wish to claim for such 
an adjustment or loss, you must demonstrate that such adjustments were 
solely attributable to the Federal government's closure of the five 
Washington-area airports, are in conformity with Generally Accepted 
Accounting Principles, were fully borne within the statutory 
reimbursement period, that the loss was not discretionary in nature, and 
that reimbursement would not be duplicative of other relief.
    (b) A temporary loss that you recovered after the attacks of 
September 11, 2001, or that you expect to recover, is

[[Page 369]]

not eligible for reimbursement under this part. You will not be 
reimbursed for those losses incurred through your own fault, negligence, 
or violation of law, or because of the actions of a third party (e.g. an 
airport).
    (c) If you engaged in any non-aviation income-producing activities 
after September 11, 2001, such income must be reported under question 
number 5 in the appendix to this part.
    (d) So called ``cost savings'' claims (i.e. increasing the claimed 
amount of reimbursement by reducing actual expenses to ``adjust'' for 
savings in expense categories asserted not to have been affected by the 
terrorist attacks) are not eligible for reimbursement.
    (e) You cannot claim reimbursement for the lost time value of money 
(i.e. interest on lost profits for the period of time the funds were not 
available for your use).
    (f) Lobbying fees and attorneys' fees incurred to promote 
reimbursement for losses after the terrorist attacks or enact Section 
185 of Pub. L. 109-115 are not eligible for reimbursement.
    (g) Your calculation of revenues, expenses and income must be based 
on financial documents maintained in the ordinary course of business 
that were prepared for the eligible reimbursement period, such as income 
statements, statements of operations, profit-and-loss statements, 
operating forecasts, budget documents or other similar documents.



Sec. 331.9  What funds will the Department distribute under this part?

    The Department will distribute the full amount of reimbursement it 
determines is payable to you under section 185 of the Act. Payment may 
be made in one or more installments.



Sec. 331.11  What are the limits on reimbursement to operators or providers?

    (a) You are eligible to receive reimbursement subject to the set-
aside (subpart C of this part) for eligible operators or providers at 
College Park Airport in College Park, Maryland; Potomac Airfield in Fort 
Washington, Maryland; and Washington Executive/Hyde Field in Clinton, 
Maryland. The amount available to you as reimbursement may be reduced to 
cover the cost of independent verification and auditing, as set forth in 
Sec. 331.17.
    (b) If you receive more reimbursement than the amount to which you 
are entitled under section 185 of the Act or the subpart C set-aside, 
the Department will notify you of the basis for the determination and 
the amount that you must repay to the Department. The Department will 
follow collection procedures under the Federal Claims Collection Act of 
1966 (31 U.S.C. 3701 et seq.) to the extent required by law, in 
recovering such overpayments.
    (c) Payment will not be made to you until you have agreed to release 
the United States Government for all claims for financial losses 
resulting from the closure of the five airports in the Washington, DC 
area. The Department will provide a release form to applicants that must 
be completed before any payment is made under Section 185 of the Act.



Sec. 331.13  What is the eligible reimbursement period under this part?

    The eligible reimbursement period for direct and incremental losses 
differs by airport:
    (a) For Ronald Reagan Washington National Airport the eligibility 
period for reimbursement is from September 11, 2001 until October 18, 
2005.
    (b) For College Park Airport in College Park, Maryland, the 
eligibility period for reimbursement is from September 11, 2001 until 
February 13, 2005.
    (c) For Potomac Airfield in Fort Washington, Maryland, the 
eligibility period for reimbursement is from September 11, 2001 until 
February 13, 2005.
    (d) For the Washington South Capitol Street Heliport in Washington, 
DC, the eligibility period for reimbursement is from September 11, 2001 
to November 30, 2005.
    (e) For Washington Executive/Hyde Field in Clinton, Maryland, there 
are two eligibility periods for reimbursement. The first period is from 
September 11, 2001 until May 16, 2002. The second period is from 
September 29, 2002 until February 13, 2005.

[[Page 370]]



Sec. 331.15  How will other grants, subsidies, or incentives be treated by the Department?

    Grants, subsidies, or incentives that you have received during the 
eligible reimbursement period, either directly or indirectly, from 
Federal, State, and local entities, to reimburse you for the cost of 
operations and capital improvements associated with implementing 
security programs, or maintaining or providing general aviation services 
and facilities, will be considered revenues and should be reported as 
such on your application.



Sec. 331.17  How will the Department verify and audit claims under this part?

    Departmental staff will initially review each claim in detail, and 
contact you should questions arise. If they are unable to satisfactorily 
resolve the matter following consultation with you, your claim will be 
forwarded to the Office of the Inspector General, or another independent 
auditor, for verification and, if necessary, an audit. In addition, the 
Department may consult with, or make referrals to, other government 
agencies, including the Department of Justice. If an audit is necessary, 
a ceiling amount reached, and the audit does not support the claimed 
amount, your reimbursement may be reduced to cover one-third the cost of 
the audit.



Sec. 331.19  Who is the final decision maker on eligibility for, and amounts of reimbursement?

    The Assistant Secretary of Aviation and International Affairs will 
make a final determination of your eligibility and the amount of 
reimbursement you will receive.



                    Subpart B_Application Procedures



Sec. 331.21  What information must operators or providers submit in their applications for reimbursement?

    (a) You must submit the Application Form for Reimbursement under 
Section 185 of Public Law 109-115 (``Application Form''), located in the 
appendix to this part, along with the profit and loss statements, 
forecasts, or other financial documents (collectively ``supporting 
financial documents'') generated as a routine matter for the purposes of 
managing your business, and relied upon in completing your application.
    (b) To the extent that your calculation of revenues, expenses and 
incomes are based on monthly records, you must adjust your calculation, 
on a pro-rata basis, to conform to the eligibility period. For example, 
if you utilize a monthly financial record to prepare a calculation of 
your September 2001 revenues, you should apportion your results for the 
period between September 11 and September 30, 2001.
    (c) If multiple forecasts were prepared for the same period, you 
must utilize the one most recently approved, prior to September 11, 
2001, so long as it is otherwise objective and reliable.
    (d) If you provided information to the Department as part of its 
study entitled Estimated Financial Losses to Selected General Aviation 
Entities in the Washington, DC Area (Oct. 2005) (``2005 General Aviation 
Study''), you should not simply reiterate the same data provided to the 
Department at that time; you must provide the most current information 
that is available to you. If you do reiterate that same data provided to 
the Department for the 2005 General Aviation Study, the basis for your 
estimates must be verifiable from the supporting financial documents 
that you submit with your application.
    (e) Failure to include all required information will delay 
consideration of your application by the Department and may result in a 
rejection. You have the burden to document and substantiate your claim; 
the Department will provide reimbursement only if it is satisfied that 
payment is fully supported.
    (f) If, prior to September 11, 2001, you did not prepare a forecast 
covering the entire eligible reimbursement period, or if the forecast 
you completed is not relevant to the information required by this part, 
you may submit an ``after-the-fact'' estimate of the amount that you 
would have reasonably expected to accrue as adjusted income had the 
airport at which you are or were an operator or provider not closed. 
``After-the-fact'' estimates must consider items particular to your 
business, including

[[Page 371]]

labor agreements and the terms of contracts in place at the time of the 
eligible reimbursement period, short-term or long-term budget documents, 
documents submitted in support of applications for loans or lines-of-
credit, and other similar documents. You must explain the methodology 
that you used when preparing your reconstructed forecast.
    (g) You must certify that the information on the application in the 
appendix to this part and all of the supporting financial documents that 
you are submitting is true and accurate under penalty of law and that 
you acknowledge that falsification of information may result in 
prosecution and the imposition of a fine and/or imprisonment.
    (h) You must retain all materials you relied upon to establish your 
claim for losses.
    (i) You must provide mitigating expenses, lobbying expenses incurred 
to promote reimbursement for losses after the terrorist attacks or enact 
Section 185 of the Act, and special expenses, as well as extraordinary 
adjustments, as instructed in the appendix to this part.
    (j) If you need professional accounting services to assist in the 
preparation of your application, you may claim reimbursement for 80% of 
the actual amount you paid for such services, up to a maximum 
reimbursement of $2,000. You may claim reimbursement only for 
professional services; your own time in applying for reimbursement is 
not reimbursable. Any claim for professional accounting services must be 
accompanied with appropriate documentation as to the nature and extent 
of services performed, the amount billed, and payment. Employment or use 
of such professional services does not relieve you of the responsibility 
for the accuracy and completeness of the application.
    (k) If you believe that the release of financial information 
provided to the Department in support of your application would cause 
you substantial harm if released by the Department to the public upon an 
appropriately made request, you may request that the Department hold 
portions of your application as confidential. Your request must specify 
the portions of your application that should be held by the Department 
as confidential, and you must provide an explanation as to how the 
release of such information would cause you substantial harm.



Sec. 331.23  In what format must applications be submitted?

    (a) The Application Form, located in the appendix to this part, must 
be submitted in hardcopy format and, if possible, in electronic format. 
The Department has made available an electronic version of this form at 
the following Web site: http://ostpxweb.dot.gov/aviation/index.html. 
(Click on ``Programs'' and scroll to ``General Aviation Operator and 
Service Provider Reimbursement.''
    (b) All supporting financial documents must be submitted in hard 
copy. In addition, you may submit financial and accounting tabular data 
in Excel spreadsheet format, utilizing a 3.5[sec] floppy disk, compact 
disk, or flash memory device, and doing so may expedite the processing 
of your claim.
    (c) Faxed and e-mailed applications are not acceptable and will not 
be considered.



Sec. 331.25  To what address must operators or providers send their applications?

    (a) You must submit your application and all required supporting 
information, to the following address: U.S. Department of 
Transportation, Office of Aviation Analysis (X-50)Aviation Relief Desk, 
Room 6401, 400 7th Street, SW., Washington, DC 20590.
    (b) Your application must be submitted via courier or an express 
package service, such as registered U.S. Postal Service, Federal 
Express, UPS, or DHL.
    (c) If complete applications are not submitted to the address in 
paragraph (a) of this section, they will not be accepted by the 
Department.



Sec. 331.27  When are applications due under this part?

    You must submit your application by June 8, 2007.

[[Page 372]]



   Subpart C_Set-Aside for Operators or Providers at Certain Airports



Sec. 331.31  What funds are available to applicants under this subpart?

    The Department is setting aside a sum of $5 million to reimburse 
eligible operators or providers, as set forth in section 185 of the Act.



Sec. 331.33  Which operators and providers are eligible for the set-aside under this subpart?

    Operators or providers at the following three airports during the 
eligible reimbursement periods are eligible for the set-aside:
    (a) College Park Airport in College Park, Maryland;
    (b) Potomac Airfield in Fort Washington, Maryland; and
    (c) Washington Executive/Hyde Field in Clinton, Maryland.



Sec. 331.35  What is the basis upon which operators or providers will be reimbursed through the set-aside under this subpart?

    Operators or providers eligible under this subpart will be 
reimbursed pursuant to the same procedures set forth in subpart B of 
this part. If total losses for all eligible claims at the three airports 
set forth in Sec. 331.31 of this part are less than $5 million, then 
such claims will be paid in full. If the total losses for all eligible 
claims at the three airports set forth in Sec. 331.31 of this part 
exceed $5 million, then the total losses will be divided on a pro rata 
basis, and a proportionate amount for each claim will be distributed to 
applicants.



Sec. 331.37  What will happen to any remaining funds if operators and providers at the three Maryland airports make reimbursable claims totaling less than $5 
          million?

    If the operators and providers who are eligible for the $5 million 
set-aside do not exhaust the funds designated under the set-aside, then 
any remaining money from the set-aside will be made available for other 
valid claims made under this part.



                                  Sec. 

 Appendix to Part 331--Application Form for Reimbursement Under Section 
                        185 of Public Law 109-115

    1. Applicant name: ----------------------

    2. Applicant address:
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

    3. At which of the following airports did the applicant operate as a 
fixed-base operator or provider of general aviation ground support 
services during the eligible period for reimbursement?

 
 
 
 Ronald Reagan           .............................
 Washington National Airport
 College Park Airport    .............................
 in College Park, Maryland
 Potomac Airfield in     .............................
 Fort Washington, Maryland
 Washington Executive/   .............................
 Hyde Field in Clinton, Maryland
 Washington South        .............................
 Capitol St. Heliport, Washington, DC
 

    4. Briefly describe the nature of the applicant's operations as a 
fixed-base general aviation operator or a provider of general aviation 
ground support services at each airport during the eligible period for 
reimbursement.
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

    5. Did the applicant or any part of it conduct non-fixed-base 
general aviation activities or provide non-aviation ground support 
services during the 2001 through 2005 period?

 Yes. Briefly describe the non-fixed-base general aviation activities 
          and non-aviation ground support services.
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

 No.
    6. Briefly describe how the events of September 11, 2001 affected 
the applicant's operations as a fixed-base general aviation operator or 
a provider of general aviation ground support services.
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

    7. In response to the events of September 11, 2001, did the 
applicant take any action to lessen or offset the impact of those 
events?

 Yes. Briefly describe those actions and the effect they had on the 
          applicant.
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

 No.


[[Page 373]]


    8. Has the applicant filed income taxes for any period between 1999 
and 2005?

 Yes. Specify the filing status under which the applicant filed 
          (corporation, partnership, sole proprietorship, etc.)
________________________________________________________________________
________________________________________________________________________

 No.

    9. Baseline Financial Data and Forecasts. Attach to this Appendix 
copies of your profit and loss statements, or such financial records as 
you generated as a routine matter for the use of management, for the 
periods 1999 through 2005, that show your actual financial results. 
Similarly, attach copies of any actual forecasts that you prepared for 
both these baseline periods and for any part of the reimbursement 
periods that were prepared prior to September 11, 2001.
    10. The requested amount of reimbursement claimed below must be 
based on a comparison of actual operating results (revenues, expenses 
and profits or losses), adjusted as indicated, with a similarly adjusted 
company forecast/budget of operating results that existed prior to 
September 11, 2001 if such a forecast/budget was actually prepared. If 
the applicant did not prepare any such pre-September 11 forecasts, or 
prepared them for less than the full reimbursement period, an after-the-
fact estimate of what the applicant can document can reasonably be 
expected to earn during the remaining eligible period may be submitted. 
If such an after-the-fact estimate is used, describe below the period 
for which it applies and the methodology that was used to determine it.
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

    11. Reimbursement Claim

----------------------------------------------------------------------------------------------------------------
                                                 Financial Data
-----------------------------------------------------------------------------------------------------------------
                                                          Column A             Column B            Column C
----------------------------------------------------------------------------------------------------------------
                                                    Pre 9-11-01          Actual results for   Column A minus
                                                     Forecast or after-   the eligible         Column B
                                                     the-fact estimate    period*.
                                                     for the eligible
                                                     period*.
----------------------------------------------------------------------------------------------------------------
Line 1--Total Operating Revenues
----------------------------------------------------------------------------------------------------------------
Line 2--Total Operating Expenses
----------------------------------------------------------------------------------------------------------------
Line 3--Operating Profit or (Loss)
----------------------------------------------------------------------------------------------------------------
Line 4--Nonoperating Revenue
----------------------------------------------------------------------------------------------------------------
Line 5--Nonoperating Expenses.....................
----------------------------------------------------------------------------------------------------------------
Line 6--Nonoperating income (loss) before taxes...
----------------------------------------------------------------------------------------------------------------
Line 7--Professional Application Fee (@80%, max.
 $2000).
----------------------------------------------------------------------------------------------------------------
    Total--Adjusted Income Line 3 plus line 6 and
     line 7 in the last column.
----------------------------------------------------------------------------------------------------------------

    The table above applies to the period 9-11-01 through 2-13-05 for 
the three Maryland airports, including Washington Executive/Hyde Field. 
However, for Hyde Field please prepare separate claims for the periods 
before, during and after the ineligible period, 5-17-02 through 9-28-02. 
For Ronald Reagan Washington National Airport, the eligible period is 
from 9-11-02 through 10-18-05 and for Washington South Capitol Street 
Heliport, the period is from 9-11-01 through 11-30-05.
    Lobbying expenses incurred to promote reimbursement for losses after 
the terrorist attacks or enact Section 185 of Public Law 109-115 are to 
be excluded from both Columns A and B.
    12. Has the applicant or any of its subsidiaries or affiliates 
received grants, subsidies, incentives or similar payments from local, 
state, or Federal governmental entities in support of the security, 
maintenance and provision of general aviation services and facilities 
furnished in response to the events of September 11, 2001? (This 
includes payments under the Aviation Transportation Security Act (ATSA) 
Public Law 107-71 November 19, 2001, and the Airport Improvement Program 
(AIP)).

 Yes. Enter amount = $------------ .

 No.

    13. Has the applicant or any of its subsidiaries or affiliates 
incurred lobbying expenses, mitigating expenses, or special expenses (as 
described in the section captioned

[[Page 374]]

``What information must operators or providers submit in their 
applications for reimbursement?''), or extraordinary, non-recurring, or 
unusual adjustments?

 Yes. Briefly describe these expenses and the amount of each, and state 
          if they have been included in or excluded from the totals in 
          the table at item number 11.
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

 No.

    14. Certification. I certify the above information and all attached 
documents as true and accurate under penalty of law, and acknowledge 
that falsification of information may result in prosecution and 
imposition of a fine and/or imprisonment.
________________________________________________________________________
Signature of Company Official (must be President, CEO, COO, or CFO)

________________________________________________________________________
Printed Name of Company Official

________________________________________________________________________
Position (President, CEO, COO, or CFO) of Company Official

Phone Number of Company Official:
 (voice)________________________________________________________________
 (fax)__________________________________________________________________
 Date___________________________________________________________________

________________________________________________________________________
Name of Contact Person (if different from above)

________________________________________________________________________
Position of Contact Person (if different from above)

Phone Number of Contact Person:
 (voice)________________________________________________________________
 (fax)__________________________________________________________________
E-mail Address of Contact Person:

________________________________________________________________________

  Instructions for Completing Application Form for Reimbursement Under 
                    Section 185 of Public Law 109-115

    1. Applicant name.
    This is the person or legal entity who undertakes to act as a fixed-
base general aviation operator or who provides general aviation ground 
support services, directly or by a lease or any other arrangement.
    2. Applicant address.
    The applicant address is that location within the local tax 
authority jurisdiction that is held out to the public as the business or 
airport address.
    3. Airport of operation on September 11, 2001.
    This question asks the applicant to identify those airports in the 
Washington, DC area where it provided either fixed-base general aviation 
services or general aviation ground support services on September 11, 
2001. Check as many airports as you served on September 11, 2001.
    4. Briefly describe the nature of the applicant's operations as a 
fixed-base general aviation operator or a provider of general aviation 
ground support services at each airport during the eligible period for 
reimbursement.
    You should describe the specific fixed-base general aviation 
services or general aviation ground support services that you provided 
at each of the airports.
    5. Did the applicant or any part of it conduct non-fixed-base 
general aviation activities or provide non-aviation ground support 
services during the 2001 through 2005 period?
    Check ``Yes'' if you conducted any non-fixed-base general aviation 
activities or provided non-aviation ground support services during the 
2001 through 2005 period. Describe the activities that you undertook 
during this period that did not directly support general aviation at the 
airport.
    6. Briefly describe how the events of September 11, 2001 affected 
the applicant's operations as a fixed-base general aviation operator or 
a provider of general aviation ground support services.
    You should describe how the level and conduct of your operations as 
a fixed-base general aviation operator or your operations as a provider 
of general aviation ground support services were changed as a result of 
September 11, 2001 and the ensuing security restrictions that were 
imposed by the Federal government.
    7. Did the applicant undertake any actions to lessen or offset the 
impact of the Federal government's closure of airports in the 
Washington, DC area following the attacks of September 11, 2001?
    Check ``Yes'' if you attempted to minimize the impact that the 
terrorist attacks of September 11, 2001 had on your business. Briefly 
describe your actions and the effect that they had on you. Include any 
activities or services undertaken after September 11, 2001 that did not 
provide support for general aviation but that did provide revenues to 
sustain your business.
    8. Has the applicant filed income taxes for any period between 1999 
and 2005?
    Check ``Yes'' if you filed income taxes during this period, and 
indicate the filing status under which you filed your income tax 
returns.
    9. Baseline Financial Data and Forecasts. Attach to this Appendix 
copies of your profit and loss statements, or such financial records as 
you generated as a routine matter for the use of management, for the 
periods 1999 through 2005, that show your actual financial results. 
Similarly, attach copies of any actual forecasts that you prepared for 
both these baseline periods and for any part of the reimbursement 
periods that were prepared prior to September 11, 2001.

[[Page 375]]

    This question directs applicants to provide the Department with 
certain financial documents in order to verify and substantiate their 
claims. Documents that you have already prepared should be sufficient. 
When necessary, you should supplement these documents with footnotes or 
explanations that are pertinent to your reimbursement claim. The 
financial data may include such documents as income statements, 
statements of operations, forecasts of operating results, income 
projections, pro forma budget projections, budget documents, tax 
preparation support material, information presented in investment 
perspectives and registrations, or other similar information that in 
whole or in part cover the period from 1999 through 2005.
    10. The requested amount of reimbursement claimed below must be 
based on a comparison of actual operating results (revenues, expenses 
and profits or losses) (adjusted as shown), with a similarly adjusted 
company forecast of operating results that existed prior to September 
11, 2001 if such a forecast was actually prepared. If the applicant did 
not prepare any such pre-September 11 forecasts, or prepared them for 
less than the full reimbursement period, an after-the-fact estimate of 
what the applicant can document that it reasonably expected to earn 
during the remaining eligible period may be submitted. If such an after-
the-fact estimate is used, describe below the period for which it 
applies and the methodology that was used to determine it.
    Indicate here whether an ``after-the-fact'' forecast was prepared, 
and briefly describe the methodology used in preparing the forecast. 
Your methodology must take into account items relevant to your 
businesses, such as the terms of existing contracts, short-term or long-
term budget documents, documents submitted in support of applications 
for loans or lines-of-credit, existing labor agreements and leasing 
agreements, and other similar types of documents.
    In preparing your ``after-the-fact'' forecast, you may wish to 
consult a July 2001 report prepared for the FAA, entitled Forecasting 
Aviation Activity by Airport. This report was prepared by GRA, 
Incorporated (GRA), for the FAA's Office of Aviation Policy Plans 
Statistical and Forecast Branch (APO-110). While the Department 
recognizes that fixed-base general aviation operators and providers of 
general aviation ground support services are different entities than 
larger airports at which scheduled service is provided, the Department 
believes that this document offers relevant guidance to applicants who 
do not prepare forecasts as part of regular business operations. This 
July 2001 report may be accessed at: http://www.faa.gov/data--
statistics/aviation--data--statistics/forecasting/media/AF1.doc.
    The July 2001 report explains the basic steps usually utilized in 
preparing forecasts, including: Identifying parameters and measures to 
forecast; collecting forecast information of expected revenues or 
expenses, including budgets; gathering and evaluating data; selecting a 
forecast method (such as regression and trend analysis, share analysis, 
or exponential smoothing); applying methods and evaluating results; and 
summarizing and documenting the results.
    Additionally, data sources to assist you in making adjustments to 
your forecast are available from the Department's Web site at http://
ostpxweb.dot.gov/aviation/index.html (Click on ``Programs'' and scroll 
down to ``General Aviation Operator and Service Provider 
Reimbursement''). The Department notes that, while it can answer 
questions for applicants that might arise while applicants develop 
forecasts, the Department is not in a position to propose or develop 
projections for applicants.
    11. Reimbursement Claim.
    For purposes of completing the information in the reimbursement 
claim table, total operating revenues (line 1) include the inflow of 
funds to the applicant resulting from the sale of goods and services 
related to the activities of a fixed-base operator or a provider of 
general aviation services. Examples include, but are not limited to, 
monetary amounts or value received for providing: aircraft fuel or oil; 
delivery of aircraft fuel or oil; transient and long-term storing, tie 
down parking and sheltering of aircraft; maintenance, inspection, 
checking, upgrading of aircraft and aircraft related equipment and for 
polishing and cleaning property and equipment; providing flight 
instruction services and materials; and miscellaneous items for purchase 
such as maps, books, flight clothing, sectional charts, devices and 
parts for aircraft, food services, hospitality services, auto rentals, 
aircraft custodial and sanitation services, assistance grants from state 
and Federal government agencies, insurance payments, and revenues 
derived from the business activities conducted at alternative airports 
to those that were closed.
    Total operating expenses (line 2) include the cost to the applicant 
of providing the goods and services related to the activities of a 
fixed-base operator or a provider of general aviation services. Examples 
include, but are not limited to: Labor costs for all categories of 
employees (including compensation, vacation and sick leave pay, medical 
benefits, workmen's compensation contributions, accruals or annuity 
payments to pension funds, training reimbursements, professional fees, 
licensing fees, educational or recreational activities for the benefit 
of the employee, stock incentives, etc.); the cost of fuel and oil 
including nonrefundable aircraft fuel and oil taxes; insurance; flight 
and ground equipment parts; general services purchased for flight or 
ground equipment maintenance; depreciation of flight and ground 
equipment;

[[Page 376]]

amortization of capitalized leases for flight and ground equipment; 
provisions for obsolescence and deterioration of spare parts; insurance 
premiums; and rental expenses of flight and ground equipment expenses 
associated with business activities conducted at alternative airports to 
those that were closed. Advertising, promotion and publicity expenses, 
landing fees, clearance, customs and duties, utilities, bookkeeping, 
accounting, recordkeeping and legal services are also part of the total 
operating expenses.
    Operating profit or loss is calculated by subtracting the total 
operating expenses from the total operating revenues. If the total 
operating revenues exceed the total operating expenses, the calculation 
results in an operating profit. If the total operating expenses exceed 
the total operating revenues, the calculation results in an operating 
loss.
    Nonoperating income and expenses include: income and loss incident 
to commercial ventures not inherently related to the direct provision of 
fixed-base operator services or general aviation ground support 
services; other revenues and expenses attributable to financing or other 
activities that are extraneous to and not an integral part of general 
aviation services; and special recurrent items of a nonperiod nature.
    Examples of non-operating income include, but are not limited to: 
Interest income; foreign exchange gains; equity investment in an 
investor controlled company; intercompany transactions; dividend income; 
and net unrealized gains on marketable equity securities.
    Examples of non-operating expenses include, but are not limited to: 
Interest on long-term debt and capital leases; interest on short-term 
debt; imputed interest capitalized; amortization of discount and expense 
on debt; foreign exchange losses; fines or penalties imposed by 
governmental authorities; costs related to property held for future use; 
donations to charities, social and community welfare purposes; losses on 
reacquired and retired or resold debt securities; and losses on 
uncollectible non-operating receivables.
    For reasons set forth elsewhere in Sec. 331.7 of this part, you may 
not include lobbying expenses that were incurred to promote 
reimbursement for losses after the terrorist attacks or enact Section 
185 of Pub. L. 109-115. Non-operating income is the result of 
subtracting the non-operating expenses from the non-operating revenues. 
Professional application fees provide for reimbursement of 80 percent of 
the cost of professional accounting services required in the preparation 
and submission of the application. Adjusted Income for each of the 
Columns A and B is the sum of the Operating profit (or loss) (line 3) 
plus line 6, Non-operating income (loss). Each line of Column C is the 
result of subtracting Column B from Column A, except on line 7, 
Professional Application Fees, where the claimant may enter 80 percent 
of professional application fees (up to a maximum of $2,000). The 
Adjusted Income figure on the Total line of Column C represents the 
amount claimed as total reimbursement; it may of course be adjusted as 
the result of Department review. All Adjusted Income figures do not 
reflect taxes due in the current period, as a consequence, 
reimbursements will be pre-tax and income taxes may be due on reimbursed 
funds.
    The difference between column A and B is the basis for column C. 
This constitutes the total amount of your claim for reimbursement. As 
the eligibility periods, for the most part, begin and end on days other 
than the first or last days of the month, quarter or year, data from 
already existing financial statements must be adjusted, on a pro rata 
basis, to reflect the eligibility periods. For example, the period of 
eligibility for all applicants begins on September 11, 2001 and 
therefore, the only time period during the month of September that is 
eligible for reimbursement is September 11 through September 30, a 
period of 20 days. Applicants should be prepared to show both how they 
apportioned such financial data into the reimbursement periods, and why 
they chose the apportionment approach used. Applicants can then use 
these estimates for the specified periods at the beginning and end of 
the eligible period to add to the financial amounts for 2002, 2003, and 
2004 to calculate the total amounts sought in Appendix A.
    12. Has the applicant or any of its subsidiaries or affiliates 
received grants, subsidies, incentives or similar payments from local, 
state, or Federal governmental entities in support of the security, 
maintenance and provision of general aviation services and facilities 
furnished in response to the events of September 11, 2001? (This 
includes payments under the Aviation and Transportation Security Act of 
2001 (Public Law 107-38) and the Airport Improvement Program under the 
Airport and Airway Improvement Act of 1982 (Public Law 97-248).)
    This question requires that you disclose all grants, subsidies, or 
incentives that you received during the eligible reimbursement period, 
either directly or indirectly, from Federal, State, and local entities, 
to reimburse you for the cost of operations and capital improvements 
associated with implementing security programs, or maintaining or 
providing general aviation services and facilities.
    13. Has the applicant or any of its subsidiaries or affiliates 
incurred lobbying expenses, mitigating expenses, or special expenses (as 
described in the section captioned ``What information must operators or 
providers submit in their applications for reimbursement?''), or 
extraordinary adjustments?
    Check ``Yes'' if you incurred any such expenses or experienced any 
such adjustments.

[[Page 377]]

You must briefly describe the nature of such expenses and adjustments, 
including the amounts. Additionally, you must indicate whether or not 
such expenses or adjustments have been included in or excluded from the 
totals in the table at item number 11.
    Lobbying includes any amount paid to any person for influencing or 
attempting to influence an officer or employee of any agency, a Member 
of Congress, an officer or employee of Congress, or an employee of a 
Member of Congress.
    Mitigating expenses include the utilization of property, the 
provision of services and the sale of goods that were undertaken to 
mitigate losses arising from the Federal government's closure of 
airports attendant to the September 11, 2001 attack. These could include 
expenses incurred for the provision of services and sale of goods moved 
from restricted airports to unrestricted airports or compensation for 
non-aviation oriented goods and services provided at restricted 
airports. Mitigating expenses may also include operating expenses for 
aviation-related fixed assets or capital utilized outside of the 
restricted airport.
    Special expenses include, but are not limited to, moving expenses, 
additional security equipment and facilities, and loss on sales of 
assets that arose from the direct imposition of restrictions during the 
period September 11, 2001 through the applicable eligible date. Any item 
reported under Special Expenses shall not also be expensed in other 
expense categories that are reflected in the calculation of the 
reimbursement claim. Details regarding special expenses should be noted 
in footnotes.
    Extraordinary adjustments are events or transactions that are 
material to your business and unusual in nature and infrequent in 
occurrence.
    14. Certification.
    You must certify that all information contained on the Background 
and Eligibility Form and the documents submitted in support of your 
application (e.g., profit and loss statements, actual forecasts, after-
the-fact forecasts, etc.) are accurate. This certification is made under 
penalty of law. Falsification may be grounds for monetary and/or 
criminal sanctions. This certification must be made by a company 
President, CEO, COO, or CFO.



                         SUBCHAPTER C [RESERVED]



[[Page 378]]



                    SUBCHAPTER D_SPECIAL REGULATIONS





PART 372_OVERSEAS MILITARY PERSONNEL CHARTERS--Table of Contents




                      Subpart A_General Provisions

Sec.
372.1 Applicability.
372.2 Definitions.
372.3 Waiver.
372.4 Enforcement.
372.5 Suspension of revocation of authority.

                           Subpart B_Exemption

372.10 Exemption.

                  Subpart C_Conditions and Limitations

372.20 Requirement of operating authorization.
372.21 Solicitation.
372.22 Discrimination.
372.23 Methods of competition.
372.24 Surety bond, depository agreement, escrow agreement.
372.25 Tariffs to be filed for charter trips.
372.26 [Reserved]
372.27 Name of operator.
372.28 Record retention.

                    Subpart D_Operating Authorization

372.30 Application.
372.31 Issuance.
372.32 Effective period.
372.33 Nontransferability.

Appendix A to Part 372--Overseas Military Personnel Charter Operator's 
          Surety Bond Under Part 372 of the Special Regulations of the 
          Department of Transportation (14 CFR Part 372)

    Authority: 49 U.S.C. Chapters 401, 411, 413, 417.

    Source: SPR-54, 37 FR 11163, June 3, 1972, unless otherwise noted.



                      Subpart A_General Provisions



Sec. 372.1  Applicability.

    This part establishes the terms and conditions governing the 
furnishing of overseas military personnel charters in air transportation 
by direct air carriers or foreign air carriers and by overseas military 
charter operators. This part also relieves charter operators from the 
provisions of section 41102 of Title 49 of the United States Code (``the 
Statute''), for the purpose of enabling them to provide overseas 
military personnel charters utilizing aircraft chartered from such 
direct air carriers or foreign air carriers. Nothing contained in this 
part shall be construed as repealing or amending any provisions of any 
of the Department's regulations, unless the context so requires.

[SPR-60, 37 FR 19122, Sept. 19, 1972, as amended at 60 FR 43529, Aug. 
22, 1995]



Sec. 372.2  Definitions.

    As used in this part, unless the context otherwise requires:
    Charter means overseas military personnel charter.
    Charter operator means overseas military personnel charter operator.
    Charter participant means a member of the overseas military 
personnel charter group.
    Charter price means the total amount of money paid by the charter 
participant to the charter operator for air transportation.
    Immediate family means only the following persons: the spouse, 
children, parents, parents of the spouse, children of the parents, and 
children of the parents of the spouse of (1) military personnel on 
active duty with the United States Armed Forces (including Coast Guard) 
stationed outside the contiguous states of the United States and the 
District of Columbia, and (2) civilian employees of the Department of 
Defense who are citizens of the United States and are stationed in a 
foreign country, or in a U.S. territory or possession, where U.S. 
military personnel are stationed.
    Overseas military personnel charter means a charter, either one-way 
or round-trip, limited to military personnel on active duty with the 
U.S. Armed Forces (including the Coast Guard), stationed outside the 48 
contiguous States of the United States and the District of Columbia, 
and/or civilian employees of the Department of Defense who are citizens 
of the United States and are stationed in a foreign

[[Page 379]]

country, or in a U.S. territory or possession, where such U.S. military 
personnel are stationed, and/or the immediate families of the foregoing 
persons, where the following conditions are met: (a) All military 
personnel and civilian employees of the Department of Defense 
participating in the charter are on official furlough, leave, pass, or 
other authorized absence from duty, and (b) the transportation is 
between a place in the 48 contiguous States of the United States or the 
District of Columbia and a place in Alaska, Hawaii, or a territory or 
possession of the United States, or a foreign country in which military 
personnel of the United States are stationed: Provided, however, That 
nothing contained herein shall preclude an overseas military personnel 
charter operator from utilizing any unused space on an aircraft 
chartered by it pursuant to this part for the transportation, on a free 
or reduced-rate basis, of such charter operator's employees, directors, 
and officers, and the parents and immediate families of such persons, 
subject to the provisions of part 223 of this chapter.
    Overseas military personnel charter operator means any citizen of 
the United States, as defined in section 40102(a)(15) of the Statute 
authorized hereunder to engage in the formation of overseas military 
personnel charter groups and who complies with the provisions of this 
part.
    Person means any individual, firm, association, partnership, or 
corporation.
    Statute when used in this chapter means Subtitle VII of Title 49 of 
the United States Code (Transportation).

[SPR-54, 37 FR 11163, June 3, 1972, as amended by SPR-69, 38 FR 14164, 
May 30, 1973; SPR-109, 41 FR 35158, Aug. 20, 1976; 60 FR 43529, Aug. 22, 
1995]



Sec. 372.3  Waiver.

    A waiver of any of the provisions of this regulation may be granted 
by the Department upon its own initiative, or upon the submission by a 
charter operator of a written request therefor: Provided, That such a 
waiver is in the public interest and it appears to the Department that 
special or unusual circumstances warrant a departure from the provisions 
set forth herein.



Sec. 372.4  Enforcement.

    In case of any violation of the provisions of the Statute, or this 
part, or any other rule, regulation, or order issued under the Statute, 
the violator may be subject to a proceeding pursuant to section 46101 of 
the Statute before the Department, or sections 46106 through 46108 of 
the Statute before a U.S. district court, as the case may be, to compel 
compliance therewith, to civil penalties pursuant to the provisions of 
section 46301 of the Statute, or in the case of willful violation, to 
criminal penalties pursuant to the provisions of section 46316 of the 
Statute; or other lawful sanctions.

[SPR-54, 37 FR 11163, June 3, 1972, as amended at 60 FR 43529, Aug. 22, 
1995]



Sec. 372.5  Suspension or revocation of authority.

    The Department reserves the power to suspend the authority of any 
charter operator, without hearing, if it finds that such action is 
necessary in order to protect the rights of the traveling public, or to 
revoke such authority for cause.



                           Subpart B_Exemption



Sec. 372.10  Exemption.

    Charter operators are hereby relieved from the provisions of section 
41102 of the Statute only if and so long as they comply with the 
provisions of this part and the conditions imposed herein, and to the 
extent necessary to permit them to organize and arrange overseas 
military personnel charters.

[SPR-176, 46 FR 43960, Sept. 2, 1981, as amended at 60 FR 43529, Aug. 
22, 1995]



                  Subpart C_Conditions and Limitations



Sec. 372.20  Requirement of operating authorization.

    No person shall engage in air transportation as an overseas military 
personnel charter operator by organizing, providing, selling, or 
offering to sell, soliciting, or advertising an overseas military 
personnel charter or charters unless there is in force an operating 
authorization issued pursuant to

[[Page 380]]

Sec. 372.31 authorizing such person to engage in such transportation.

[Docket No. 47939, 57 FR 40105, Sept. 2, 1992]



Sec. 372.21  Solicitation.

    Solicitation of charter participants through advertising by charter 
operators shall be restricted to the following:
    (a) Radio and television stations operated by the U.S. Armed Forces;
    (b) Newspapers, periodicals, or other printed media disseminated and 
distributed primarily among military personnel or civilian employees of 
the Department of Defense: Provided, however, That any printed 
advertisement of a charter operator shall include a statement explaining 
that eligibility for participation in such charters is limited to 
military servicemen who are stationed outside of the 48 contiguous 
States and the District of Columbia, and/or U.S. citizen civilian DOD 
employees who are stationed in a foreign country, or a U.S. territory or 
possession, where U.S. military personnel are stationed, and their 
respective immediate families.



Sec. 372.22  Discrimination.

    No charter operator shall make, give, or cause any undue or 
unreasonable preference or advantage to any particular person, port, 
locality, or description of traffic in air transportation in any respect 
whatsoever or subject any particular person, port, locality, or 
description of traffic in air transportation to any unjust 
discrimination or any undue or unreasonable prejudice or disadvantage in 
any respect whatsoever.



Sec. 372.23  Methods of competition.

    No charter operator shall engage in unfair or deceptive practices or 
unfair methods of competition in air transportation or the sale thereof.



Sec. 372.24  Surety bond, depository agreement, escrow agreement.

    (a) Before selling or offering to sell, soliciting or advertising 
any charter flight, a charter operator shall comply with one of the 
three following requirements:
    (1) The charter operator shall furnish a surety bond in an amount 
not less than the maximum fare held out for charter flights proposed to 
be operated during each calendar month multiplied by 90 percent of the 
number of available seats on such flights: Provided, however, That the 
liability of the surety to any charter participant shall not exceed the 
charter operator's applicable tariff fare. Such bond shall be filed with 
the Department not less than 45 days prior to the commencement of the 
calendar month covered by the bond together with a list of flights 
proposed to be operated during the month showing charter price, 
departure dates, equipment to be used for each flight and the seating 
capacity: Provided, however, That the amount of the bond shall be 
increased if additional charter flights are proposed or may be reduced 
if proposed charter flights are canceled, in which event a substitute 
bond and amended list of proposed flights shall be filed with the 
Department within 10 days of the date that the charter operator adds 
flights or cancels flights previously proposed, but in no event later 
than 2 days prior to the operation of any such additional charter 
flights; or
    (2) The charter operator shall:
    (i) Furnish and file with the Department a surety bond in the amount 
of $100,000 for the protection of the charter participants: Provided, 
however, That the liability of the surety to any charter participant 
shall not exceed the charter operator's applicable tariff fare; and
    (ii) Enter into an agreement with a bank, the terms of which shall 
include the following:
    (a) Each participant shall pay for his deposit and subsequent 
payments comprising the charter participant's tariff fare only by check 
or money order payable to such bank which shall maintain a separate 
accounting for each flight: Provided, however, That if the participant 
makes a cash deposit, the charter operator who receives such cash 
deposit shall forthwith remit to the designated bank a check for the 
full amount of the deposit;
    (b) The bank shall not pay the air carrier or foreign air carrier 
the charter price for the transportation earlier

[[Page 381]]

than 60 days (including day of departure) prior to the scheduled day of 
departure of the originating or returning flight, upon certification of 
the departure date and price by the charter operator;
    (c) The bank shall reimburse the charter operator for refunds made 
by the latter to the participants upon written notification from the 
charter operator;
    (d) If the charter operator notifies the bank that a flight has been 
canceled, the bank shall make the applicable refunds directly to the 
participants;
    (e) Except as provided in paragraph (a)(2)(ii)(c) of this section, 
the bank shall not pay any funds from the account to the charter 
operator prior to 2 banking days after completion of each flight when 
the balance in the account shall be paid to the charter operator upon 
certification of the completion date by the charter operator and direct 
air carrier;
    (f) Notwithstanding any provisions above, the amount of total cash 
deposits required to be maintained in the depository account of the bank 
may be reduced by one or both of the following: The amount of surety 
bond in the form prescribed herein in excess of the minimum bond 
required by paragraph (a)(2)(i) of this section; an escrow with the 
designated bank of Federal, State, or municipal bonds or other 
securities, consisting of certificates of deposit issued by banks having 
a stated policy of redeeming such certificates before maturity at the 
request of the holder (subject only to such interest penalties or other 
conditions as may be required by law), or negotiable securities which 
are publicly traded on a securities exchange, all such securities to be 
made payable to the escrow account: Provided, That such other securities 
shall be substituted in an amount no greater than 80 percent of the 
total market value of the escrow account at the time of such 
substitution: And provided, further, That should the market value of 
such other securities subsequently decrease, from time to time, then 
additional cash or securities qualified for investment hereunder shall 
promptly be added to the escrow account, in an amount equal to the 
amount of such decreased value; or
    (3) The charter operator shall:
    (i) Furnish and file with the Department a surety bond in the amount 
of $100,000 for the protection of the charter participants: Provided, 
however, That the liability of the surety to any charter participant 
shall not exceed the charter operator's applicable tariff fare; and
    (ii) Enter into an agreement with a bank, the terms of which shall 
include the following:
    (a) Whenever the gross amount of customers' deposits exceeds 25 
percent of the charter operator's net worth, as computed under generally 
accepted accounting principles, the charter operator shall, on or before 
the 30th day of the succeeding month, place in escrow or in trust with 
the bank cash in an amount at least equal to the amount by which such 
deposits exceed 25 percent of its net worth: Provided, That negotiable 
securities may be substituted for cash, but the market value thereof 
shall at all times be not less than the amount of cash for which they 
are substituted;
    (b) The escrow agreement or the trust agreement between the bank and 
the operator shall not be effective until approved by the Department. 
Claims against the escrow or trust may be made only with respect to the 
nonperformance of air transportation.
    (b) As used in this section, the term bank means a bank insured by 
the Federal Deposit Insurance Corporation.
    (c) Any bond furnished under this section shall insure the financial 
responsibility of the charter operator and the supplying of the air 
transportation in accordance with the contract between the charter 
operator and the charter participants, and 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 charter originates or in which the charter operator is 
incorporated. For purposes of this

[[Page 382]]

section, the term ``State'' includes any territory or possession of the 
United States, or the District of Columbia. The bond shall be 
specifically identified by the issuing surety with a company bond 
numbering system so that the Department may identify the bond with the 
specific charter or charters to which it relates: Provided, however, 
That these data may be set forth in an addendum attached to the bond 
which addendum must be signed by the charter operator and the surety 
company. It shall be effective on or before the date the operating 
authorization becomes effective. If the bond does not comply with the 
requirements of this section, or for any reason fails to provide 
satisfactory or adequate protection for the public, the Department will 
notify the direct air carrier and the charter operator, by registered or 
certified mail, stating the deficiencies of the bond. Unless such 
deficiencies are corrected within the time set forth in such 
notification, the subject charters shall in no event be operated.
    (d) Any bond furnished under this section shall provide that unless 
the charter participant files a claim with the charter operator, or, if 
he is unavailable, with the surety, within sixty (60) days after 
termination of the charter, the surety shall be released from all 
liability under the bond to such charter participant. The contract 
between the charter operator and the charter participants shall contain 
notice of this provision.

(Secs. 101(3), 204(a), 401, and 402 of the Federal Aviation Act of 1958, 
as amended, 72 Stat. 737, 743, 754, and 757, as amended, 49 U.S.C. 1301, 
1324, 1371 and 1372)

[SPR-54, 37 FR 11163, June 3, 1972, as amended by SPR-60, 37 FR 19122, 
Sept. 19, 1972; SPR-63, 37 FR 22849, Oct. 26, 1972; SPR-95, 40 FR 52355, 
Nov. 10, 1975; Docket No. 47939, 57 FR 40105, Sept. 2, 1992]



Sec. 372.25  Tariffs to be filed for charter trips.

    Effective October 1, 1972, a charter operator shall not operate or 
sell or offer to sell, solicit or advertise, any charter trips unless 
such operator shall have on file with the Department a currently 
effective tariff showing all rates, fares, and charges for such charter 
trips and showing the rules, regulations, practices, and services in 
connection with such transportation.



Sec. 372.26  [Reserved]



Sec. 372.27  Name of operator.

    It shall be an express condition upon the exercise of the exemption 
herein granted and the operating authorizations issued hereunder, that 
the charter operator concerned, in holding out to the public and 
performing air transportation services, shall do so only in a name the 
use of which is authorized under the provisions of part 215 of this 
chapter.



Sec. 372.28  Record retention. \1\
---------------------------------------------------------------------------

    \1\ 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 of 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. sec. 1001.
---------------------------------------------------------------------------

    (a) Every charter operator conducting a charter pursuant to this 
part shall retain for 2 years after completion of the charter or series 
of charters true copies of the following documents at its principal or 
general office in the United States:
    (1) All documents which evidence or reflect deposits made by, and 
refunds made to, each charter participant;
    (2) All statements, invoices, bills, and receipts from suppliers or 
furnishers of goods and services in connection with the charter or 
series of charters.
    (b) Every charter operator shall make the documents listed in this 
section available upon request by an authorized representative of the 
Department and shall permit such representative to make such notes and 
copies thereof as he deems appropriate.

[SPR-54, 37 FR 11163, June 3, 1972, as amended by Docket No. 47939, 57 
FR 40105, Sept. 2, 1992]

[[Page 383]]



                    Subpart D_Operating Authorization



Sec. 372.30  Application.

    (a) Application. Any person desiring to operate as an overseas 
military personnel charter operator may apply to the Department for an 
appropriate operating authorization. Contact the Office of Aviation 
Analysis, Special Authorities Division, for filing instructions. The 
application shall be certified by a responsible official of such person 
and shall contain the following information:
    (1) Date;
    (2) Name of applicant, trade names, and name in which authorization 
is to be issued;
    (3) Address of principal office and mailing address;
    (4) Form of organization (i.e., corporation, partnership, etc.), 
State under whose laws company is authorized to operate and date company 
was formed;
    (5) A list containing the names of each officer, director, partner, 
owner, or member of applicant, and holder of more than 5 percent of 
outstanding stock if a corporation, or owner of more than a 5-percent 
interest if other than a corporation; an indication as to whether or not 
75 percent or more of the voting interest is owned or controlled by 
citizens of the United States or one of its possessions; if more than 5 
percent of applicant's stock is held by a corporation, an indication 
must be made as to whether or not 75 percent or more of the voting 
interest in such corporation is owned or controlled by citizens of the 
United States or one of its possessions;
    (6) A description of current business activities and of former 
business experience in, or related to, the transportation field;
    (7) Description of operating authority granted applicant by agencies 
of the U.S. Government (such as customs broker, surface or air freight 
forwarder, motor carrier, ocean freight forwarder, etc.), and, if 
applicable, reasons for revocation or other termination;
    (8) List of names of the officers, owners, etc., of applicants who 
have at any time applied for any type of authority or registration from 
the Civil Aeronautics Board or the Department of Transportation and, if 
applicable, reasons for revocation or other termination;
    (9) List of officers, owners, etc., of applicant who have at any 
time been employed by or associated with any air carrier authorized to 
operate by the Civil Aeronautics Board or the Department of 
Transportation indicating dates of employment and capacity in which 
employed;
    (10) Any additional information in support of application;
    (11) Balance sheet as of a date not more than 3 months prior to 
application and profit and loss statement for the full year ending as of 
date of balance sheet;
    (12) Brief account of any arrangement by which applicant will have 
available financial sources and facilities of other companies or 
individuals;
    (13) The charter operator's surety bond and, where applicable, a 
copy of the depository, escrow or trust agreement with a bank as 
provided in Sec. 372.24. \2\
---------------------------------------------------------------------------

    \2\ The surety bond and, where applicable, a copy of the depository 
escrow, or trust agreement with the bank should not be filed with the 
Department until the applicant is notified by the Department to do so.
---------------------------------------------------------------------------

    (b) Additional information. The applicant shall also submit such 
other additional information pertinent to its proposed activities as may 
be requested by the Department with respect to any individual 
application.

[SPR-54, 37 FR 11163, June 3, 1972, as amended by Docket No. 47939, 57 
FR 40105, Sept. 2, 1992; 60 FR 43529, Aug. 22, 1995]



Sec. 372.31  Issuance.

    (a) If, after the filing of an application for an operating 
authorization, it appears that the applicant is capable of performing 
the air transportation authorized by this part as an overseas military 
personnel charter operator and of conforming to the provisions of the 
Act and all rules and requirements thereunder, and that the conduct of 
such operations by the applicant will not be inconsistent with the 
public interest, the applicant will be notified by letter. Such 
notification will advise

[[Page 384]]

the applicant that, upon the filing of a valid tariff pursuant to Sec. 
372.25, an operating authorization will be issued to the applicant.
    (b) If, after the filing of an application for an operating 
authorization, it appears that the applicant has not made a due showing 
of capability or that the conduct of operations by the applicant might 
otherwise be inconsistent with the public interest, the Department shall 
by letter notify the applicant of its findings to that effect. The 
Department may dismiss any such application unless within 30 days of the 
date of the mailing of such letter, the applicant has in writing 
requested reconsideration and submitted such additional information as 
it believes will make the necessary showing, or requested that the 
application be assigned for hearing, in which case the applicant shall 
outline the evidence to be presented at such hearing and shall show the 
need for hearing in order properly to present its case.
    (c) In the event that reconsideration or hearing is requested, the 
Department may, without notice or hearing, enter an order of approval or 
of disapproval in accordance without notice or hearing, enter an order 
of approval or of disapproval in accordance with its determination of 
the public interest upon the showing made, or on its own initiative may 
assign the application for hearing.



Sec. 372.32  Effective period.

    Each operating authorization shall be effective upon the date 
specified therein, and shall continue in effect, unless sooner suspended 
or revoked, during such period as the authority provided by this part 
shall remain in effect, or if issued for a limited period of time, shall 
continue in effect until the expiration thereof unless sooner suspended 
or revoked.



Sec. 372.33  Nontransferability.

    (a) An operating authorization shall be nontransferable and shall be 
effective only with respect to the person named therein or his successor 
by operation of law, subject to the provisions of this section. The 
following persons may temporarily continue operations under an operating 
authorization issued in the name of another person, for a maximum period 
of 6 months from the effective date of succession, by giving written 
notice of such succession to the Department within 60 days after the 
succession:
    (1) Administrators or executors of deceased persons;
    (2) Guardians of incapacitated persons;
    (3) Surviving partner or partners collectively of dissolved 
partnerships; and
    (4) Trustees, receivers, conservators, assignees, or other such 
persons who are authorized by law to collect and preserve the property 
of financially disabled persons.
    (b) All operations by successors, as above authorized, shall be 
performed in the name or names of the prior holder of the operating 
authorization and the name of the successor, whose capacity shall also 
be designated. Any successor desiring to continue operations after the 
expiration of the 6-month period above authorized must file an 
application for a new operating authorization within 120 days after such 
succession. If a timely application is filed, such successor may 
continue operations until final disposition of the application by the 
Department.



Sec. Appendix A to Part 372--Overseas Military Personnel Charter 

Operator's Surety Bond Under Part 372 of the Special Regulations of the 
             Department of Transportation (14 CFR Part 372)

    Know all men by these presents, that we ---------------- (name of 
charter operator) of ---------------- (address) 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 the sum of ----------
------ (see Sec. 372.24(a), 14 CFR Part 372) 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 Principal is an overseas military personnel charter operator 
pursuant to the provisions of Part 372 of the Department's

[[Page 385]]

Special Regulations and other rules and regulations of the Department 
relating to security for the protection of charter participants, and has 
elected to file with the Department of Transportation such a bond as 
will insure financial responsibility with respect to all monies received 
from charter participants for services in connection with overseas 
military personnel charters to be operated subject to Part 372 of the 
Department's Special Regulations in accordance with contracts, 
agreements, or arrangements therefor, and
    Whereas this bond is written to assure compliance by Principal as an 
authorized charter operator with Part 372 of the Department's Special 
Regulations, and other rules and regulations of the Department relating 
to security for the protection of charter participants, and shall inure 
to the benefit of any and all charter participants to whom Principal may 
be held legally liable for any damages herein described.
    Now, therefore, the condition of this obligation is such that if 
Principal shall pay or cause to be paid to charter participants any sum 
or sums for which Principal may be held legally liable by reason of 
Principal's failure faithfully to perform, fulfill and carry out all 
contracts, agreements, and arrangements made by Principal while this 
bond is in effect with respect to the receipt of moneys from charter 
participants, and proper disbursement thereof pursuant to and in 
accordance with the provisions of Part 372 of the Department's Special 
Regulations, then this obligation shall be void, otherwise to remain in 
full force and effect.
    The liability of Surety with respect to any charter participant 
shall not exceed the charter price paid by or on behalf of such 
participant.
    The liability of Surety shall not be discharged by any payment or 
succession of payments hereunder, unless and until such payment or 
payments shall amount in the aggregate to the penalty (face amount) of 
the bond, but in no event shall Surety's obligation hereunder exceed the 
amount of said penalty.
    Surety agrees to furnish written notice to the Office of Aviation 
Analysis, Department of Transportation, forthwith of all suits or claims 
made and judgments rendered, and payments made by Surety under this 
bond.
    This bond shall cover the following Charters: \1\
---------------------------------------------------------------------------

    \1\ These data may be supplied in an addendum attached to the bond; 
however, all pages are to bear the Surety's seal.
---------------------------------------------------------------------------

Surety company's bond No._______________________________________________
Date of flight departure________________________________________________
Place of flight departure_______________________________________________
    This bond is effective on the ------ day of ----------, 199--, 12:01 
a.m., standard time at the address of Principal as stated herein and as 
hereinafter provided. Principal or Surety may at any time terminate this 
bond by written notice to: Special Authorities Division (X-57), Office 
of Aviation Analysis, U.S. Department of Transportation, Washington, DC 
20590, such termination to become effective thirty (30) days after the 
actual receipt of said notice by the Department. Surety shall not be 
liable hereunder for the payment of any damages hereinbefore described 
which arise as a result of any contracts, agreements, undertakings, or 
arrangements for the supplying of transportation and other services made 
by Principal after the termination of this bond as herein provided, but 
such termination shall not affect the liability of the bond hereunder 
for the payment of any damages arising as a result of contracts, 
agreements, or arrangements for the supplying of transportation and 
other services made by Principal prior to the date that such termination 
becomes effective. Liability of Surety under this bond shall in all 
events be limited only to a charter participant or charter participants 
who shall within sixty (60) days after the termination of the particular 
charter described herein give written notice of claim to the charter 
operator or, if it is unavailable, to Surety, and all liability on this 
bond shall automatically terminate sixty (60) days after the termination 
date of each particular charter covered by this bond except for claims 
made in the time provided herein.
    In witness whereof, the said Principal and Surety have executed this 
instrument on the ------ day of ----------, 199--.

                                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. 372.24(c) of Part 372.

[Docket No. 47939, 57 FR 40105, Sept. 2, 1992, as amended at 60 FR 
43529, Aug. 22, 1995]



PART 374_IMPLEMENTATION OF THE CONSUMER CREDIT PROTECTION ACT WITH RESPECT TO AIR CARRIERS AND FOREIGN AIR CARRIERS--Table of Contents




Sec.
374.1 Purpose.
374.2 Applicability.

[[Page 386]]

374.3 Compliance with the Consumer Credit Protection Act and 
          regulations.
374.4 Enforcement procedure.

    Authority: 15 U.S.C. 1601-1693r; 49 U.S.C. Subtitle VII; and 12 CFR 
parts 202 and 226.

    Source: SPR-175, 46 FR 43960, Sept. 2, 1981, unless otherwise noted.



Sec. 374.1  Purpose.

    The purpose of this part is to state the Department of 
Transportation's responsibility to enforce air carrier and foreign air 
carrier compliance with Subchapters I, III, IV, V and VI of the Consumer 
Credit Protection Act and Regulations B and Z of the Board of Governors 
of the Federal Reserve System.

[62 FR 25841, May 12, 1997]



Sec. 374.2  Applicability.

    This part is applicable to all air carriers and foreign air carriers 
engaging in consumer credit transactions.



Sec. 374.3  Compliance with the Consumer Credit Protection Act and regulations.

    (a) Each air carrier and foreign air carrier shall comply with the 
requirements of the Consumer Credit Protection Act, 15 U.S.C. 1601-
1693r. Any violation of the following requirements of that Act will be a 
violation of 49 U.S.C. Subtitle VII, enforceable by the Department of 
Transportation:
    (1) The Truth in Lending Act, as supplemented by the Fair Credit 
Billing Act, 15 U.S.C. 1601-1667, requiring disclosure of credit terms 
to the consumer and prohibiting inaccurate or unfair credit billing and 
credit card practices.
    (2) The Fair Credit Reporting Act, 15 U.S.C. 1681-1681 setting forth 
requirements to be met by consumer credit reporting agencies and persons 
who use consumer credit reports.
    (b) Each air carrier and foreign air carrier shall comply with the 
requirements of Regulation B, 12 CFR part 202, and Regulation Z, 12 CFR 
part 226, of the Board of Governors of the Federal Reserve Board. Any 
violation of the requirements of those regulations will be a violation 
of 49 U.S.C. Subtitle VII, enforceable by the Department of 
Transportation.

[62 FR 25841, May 12, 1997]



Sec. 374.4  Enforcement procedure.

    The statutes and regulations referred to in Sec. 374.3 may be 
enforced by an enforcement procedure as set forth in part 302 of this 
chapter or by the assessment of civil penalties under 49 U.S.C. 46301.

[62 FR 25842, May 12, 1997]



PART 374a_EXTENSION OF CREDIT BY AIRLINES TO FEDERAL POLITICAL CANDIDATES--Table of Contents




Sec.
374a.1 Purpose.
374a.2 Applicability.
374a.3 Definitions.
374a.4 Conditions governing extension of unsecured credit.
374a.5 Exemption authority.
374a.6 Reporting requirements.
374a.7 Record retention requirements.
374a.8 Prospective application of part.

    Authority: 49 U.S.C. chapters 401, 411, 415, 417.

    Source: SPR-53, 37 FR 9388, May 10, 1972, unless otherwise noted.



Sec. 374a.1  Purpose.

    Section 401 of the Federal Election Campaign Act of 1971 (Pub. L. 
92-225, 86 Stat. 19, 2 U.S.C. 451, enacted February 7, 1972, and 
hereafter referred to as the ``Election Campaign Act'') directs the 
Civil Aeronautics Board to promulgate, within 90 days after enactment, 
regulations with respect to the extension of unsecured credit by any 
person regulated by the Board to any candidate for Federal office, or to 
any person on behalf of such a candidate, for goods furnished or 
services rendered in connection with the campaign of such candidate for 
nomination for election, or election, to such office. The purpose of 
this part is to issue rules pursuant to said section 401 of the Election 
Campaign Act in accordance with the Civil Aeronautics Board's 
responsibility thereunder.



Sec. 374a.2  Applicability.

    This regulation shall be applicable to all air carriers as defined 
herein.

[[Page 387]]



Sec. 374a.3  Definitions.

    Adequate security means (a) a bond, issued by a surety meeting the 
standards prescribed for sureties in part 380 of this chapter, in an 
amount not less than one hundred and fifty percent (150%) of the credit 
limit established by the air carrier for the candidate, or the person 
acting on behalf of the candidate, as the case may be, by the terms of 
which bond the surety undertakes to pay to the air carrier any and all 
amounts (not exceeding the face amount of the bond) for which the 
assured candidate or the assured person acting on behalf of a candidate, 
as the case may be, is or may become legally liable to the air carrier 
for transportation, as defined in this part; or (b) collateral with a 
market value equal to one hundred and fifty percent (150%) of the 
established credit limit for such account, which collateral must be 
deposited in escrow and must consist of Federal, State, or municipal 
bonds or other negotiable securities which are publicly traded on a 
securities exchange.
    Air carrier means any air carrier holding a certificate of public 
convenience and necessity issued under section 401 of the Federal 
Aviation Act of 1958, as amended.
    Candidate means an individual who seeks nomination for election, or 
election, to Federal office, whether or not such individual is elected. 
For purposes of this part, an individual shall be deemed to seek 
nomination for election, or election, if he has (a) taken the action 
necessary under the law of a State to qualify himself for nomination for 
election, or election, to Federal office; or (b) received contributions 
or made expenditures, or given his consent for any other person to 
receive contributions or make expenditures, with a view to bringing 
about his nomination for election, or election, to such office.
    Election shall have reference to (a) a general, special, primary, or 
runoff election; (b) a convention or caucus of a political party held to 
nominate a candidate; (c) a primary election held for the selection of 
delegates to a national nominating convention of a political party; or 
(d) a primary election held for the expression of a preference for the 
nomination of persons for election to Federal office.
    Established credit limit means the dollar limit of credit 
established by the carrier extending credit.
    Federal office means the office of President or Vice President of 
the United States, or of Senator or Representative in, or Delegate or 
Resident Commissioner to, the Congress of the United States.
    Person acting on behalf of a candidate means (a) a political 
committee acting on behalf of, or a person employed by such candidate or 
by such political committee to act on behalf of, such candidate in 
connection with such candidate's campaign for nomination for election, 
or election, to Federal office; (b) a person acting under a contract 
with, or as an agent of, such candidate or political committee to engage 
in activities in connection with such candidate's campaign for 
nomination for election, or election, to Federal office; or (c) a person 
for whom such candidate or political committee pays, directly or 
indirectly, for services purchased by such person. The term includes 
persons acting on behalf of more than one candidate.
    Payment in advance means payment by cash, check, money order, or by 
credit card (if the issuer of such card is not an air carrier or a 
subsidiary, parent, or affiliate thereof) prior to performance of such 
transportation by an air carrier.
    Political committee means any committee, association, corporation, 
or organization which accepts contributions, or makes expenditures, for 
the purpose of supporting a candidate or candidates for nomination for 
election, or election, to Federal office.
    Transportation means (a) the carriage of persons or property 
(including services connected therewith) for compensation or hire to or 
from any place in the United States, or (b) the lease or rental of 
aircraft, with or without crew.

[SPR-53, 37 FR 9388, May 10, 1972, as amended by SPR-173, 45 FR 80099, 
Dec. 3, 1980]



Sec. 374a.4  Conditions governing extension of unsecured credit.

    (a) Unless adequate security is posted, or full payment in advance 
is made,

[[Page 388]]

no air carrier shall provide transportation to any person it knows, or 
has reasons to know, is a candidate or a person acting on behalf of such 
candidate, in connection with the campaign of such candidate, except in 
accordance with, and subject to, the following conditions:
    (1) At least once a month the air carrier shall submit to each such 
candidate or person a statement covering all unsecured credit extended 
to such candidate or person, as the case may be (whether in connection 
with the campaign of such candidate or otherwise.)
    (2) Such statements shall be mailed no later than the second 
business day following the last day of the billing period, covered by 
the statement.
    (3) The amount of indebtedness shown on each such statement shall be 
payable in full no later than 25 days after the last day of the billing 
period, after which time the indebtedness shall be overdue.
    (4)(i) Unsecured credit shall not be extended by an air carrier to a 
candidate, or to any person acting on his behalf in connection with the 
campaign of such candidate, so long as any overdue indebtedness of such 
candidate to such air carrier shall remain unpaid, in whole or in part, 
or so long as such air carrier shall know that any overdue indebtedness 
of such candidate to any other air carrier remains unpaid, in whole or 
in part.
    (ii) Unsecured credit shall not be extended by an air carrier to a 
person acting on behalf of a candidate, for transportation in connection 
with the campaign of such candidate, so long as any overdue indebtedness 
of such person to such carrier shall remain unpaid, in whole or in part, 
or so long as such air carrier shall know that any overdue indebtedness 
of such person to any other air carrier remains unpaid, in whole or in 
part.
    (5)(i) With respect to transportation in connection with the 
campaign of any candidate to be performed after June 1, 1972, unsecured 
credit shall not be extended by an air carrier to any person acting on 
behalf of such candidate unless the carrier is authorized in writing by 
such candidate to extend such credit. The foregoing sentence shall not 
be construed as requiring the candidate to assume liability to the 
carrier for credit so extended.
    (ii) Within 7 days after indebtedness becomes overdue for any 
unsecured credit extended by an air carrier to a person acting on behalf 
of a candidate in accordance with paragraph (a)(5)(i) of this section, 
the carrier shall notify the candidate in writing of the amount of the 
overdue indebtedness, and, unless paid in full within 25 days after the 
date of such notice, the overdue indebtedness shall be deemed to be the 
overdue indebtedness of the candidate, for the purposes of paragraph 
(b)(4)(i) of this section.
    (b) It shall be presumed that a candidate or person acting on behalf 
of a candidate intends to use transportation in connection with the 
campaign of such candidate for nomination for election, or election, to 
Federal office.

(Secs. 204, 407 of the Federal Aviation Act of 1958, as amended, 72 
Stat. 743, 766; 49 U.S.C. 1324, 1377. Sec. 401 of the Federal Election 
Campaign Act of 1971, 86 Stat. 19, 2 U.S.C. 451)

[SPR-53, 37 FR 9388, May 10, 1972, as amended by SPR-169, 45 FR 25796, 
Apr. 16, 1980; SPR-172, 45 FR 53454, Aug. 12, 1980]



Sec. 374a.5  Exemption authority.

    Air carriers are exempt from the following provisions of Title IV of 
the Federal Aviation Act of 1958, as amended: (a) Section 403, (b) 
section 404(b), and any and all other provisions of Title IV of the 
Federal Aviation Act of 1958, as amended, to the extent necessary to 
enable air carriers to comply with the provisions of this part.



Sec. 374a.6  Reporting requirements.

    (a) Air carriers shall make monthly reports to the Bureau of 
Transportation Statistics with respect to the credit for transportation 
furnished to candidates, or persons acting on behalf of candidates, 
during the period from 6 months before nomination, if any, or from 6 
months before election, until the date of election. After that 6-month 
period, air carriers shall file such a report with the Bureau of 
Transportation Statistics not later than the 20th day following the end 
of the calendar month in which the election or nomination takes place, 
and thereafter

[[Page 389]]

when any change occurs in that report, until a negative report is filed 
showing that no debt for such extension of credit is owed to the 
carrier.
    (b)(1) A separate report shall be filed for each candidate with an 
aggregate indebtedness balance of over $5,000 on the last day of the 
month to which the report pertains. The report shall cover all debts 
incurred by the candidate, whether or not incurred in connection with 
his campaign, and all debts incurred by persons acting on his behalf in 
connection with such campaign. The indebtedness accounts reported shall 
be those which the air carrier knows, or has reason to know, have been 
incurred by or on behalf of a candidate; and it shall be presumed that 
the transportation for which the indebtedness has been incurred is 
intended to be used in connection with the campaign of such candidate 
for nomination for election, or election, to Federal office.
    (2) The reports required by this paragraph (b) shall be filed with 
the Office of Airline Information not later than the 20th day following 
the end of the calendar month to which the report pertains. They shall 
include the following data: (i) Name of account; (ii) the credit limit 
established for such account; (iii) the balance, if any, of the amount 
payable for transportation not paid for in advance; (iv) any unpaid 
balance of the charges for such transportation as of the last day of the 
month covered by the report, and the length of time that such balance 
has remained unpaid; and (v) a description of the type and value of any 
bond, collateral, or other security securing such unpaid balance.
    (3) The report required by this paragraph (b) shall be in the form 
attached hereto as Appendix A. \1\
---------------------------------------------------------------------------

    \1\ Filed as part of the original document.
---------------------------------------------------------------------------

    (c) A separate report shall be filed for each person acting on 
behalf of any candidate, if the aggregate indebtedness balance of such 
person to the reporting air carrier (including all debts incurred by 
such person, whether or not incurred in connection with the campaign of 
a candidate, as defined in this part) is over $5,000 on the last day of 
the month to which the report pertains. The report shall be filed with 
the Office of Airline Information not later than the 20th day following 
the end of the calendar month to which the report pertains and shall 
include (1) the credit limitation established for such person; (2) the 
balance, if any, of the amount payable for transportation not paid for 
in advance; (3) any unpaid balance of the charges for such 
transportation as of the last day of the month covered by the report, 
and the length of time that such balance has remained unpaid; and (4) a 
description of the type and value of any bond, collateral, or other 
security securing such unpaid balance.

[SPR-53, 37 FR 9388, May 10, 1972, as amended by SPR-190, 47 FR 32414, 
July 27, 1982; 60 FR 66726, Dec. 26, 1995]



Sec. 374a.7  Record retention requirements.

    (a) Every air carrier subject to the part shall retain for 2 years 
after a Federal election true copies of the following documents at its 
principal or general office in the United States:
    (1) All documents which evidence or reflect the furnishing of 
transportation to a candidate for political office or a person acting on 
his behalf;
    (2) All statements, invoices, bills, and receipts with respect to 
the furnishing of such transportation referred to in paragraph (a)(1) of 
this section.
    (b) Every air carrier shall make the documents listed in this 
section available in the United States upon request by an authorized 
representative of the DOT and shall permit such representative to make 
such notes and copies thereof as he deems appropriate.

[SPR-53, 37 FR 9388, May 10, 1972, as amended at 60 FR 66726, Dec. 26, 
1995]



Sec. 374a.8  Prospective application of part.

    The provisions of this part shall apply only to the extension of 
credit by an air carrier to a candidate, or to a person acting on his 
behalf, which is made subsequent to the effective date of this part, and 
shall not be applicable to debts incurred prior to such date but which 
are unpaid as of the effective date of this part. The provisions of this 
part will be applicable, however, to all credit transactions which occur 
subsequent to the effective date of the part even though the credit 
account in

[[Page 390]]

which the transaction takes place was opened prior to the effective date 
of the part.



PART 375_NAVIGATION OF FOREIGN CIVIL AIRCRAFT WITHIN THE UNITED STATES--Table of Contents




                            Subpart A_General

Sec.
375.1 Definitions.
375.2 Applicability.
375.3 [Reserved]

                         Subpart B_Authorization

375.10 Certain foreign civil aircraft registered in ICAO member states.
375.11 Other foreign civil aircraft.

                  Subpart C_Rules Generally Applicable

375.19 Nature of privilege conferred.
375.20 Airworthiness and registration certificates.
375.21 Airmen.
375.22 Flight operations.
375.23 Maximum allowable weights.
375.24 Entry and clearance.
375.25 Unauthorized operations.
375.26 Waiver of sovereign immunity.

                     Subpart D_Authorized Operations

375.30 Operations other than commercial air operations.
375.31 Demonstration flights of foreign aircraft.
375.32 Flights incidental to agricultural and industrial operations 
          outside the United States.
375.33 Transit flights, irregular operations.
375.34 Indoctrination training.
375.35 Free transportation.
375.36 Lease of foreign civil aircraft without crew.
375.37 Certain business aviation activities using U.S.-registered 
          foreign civil aircraft.

   Subpart E_Operations Requiring Specific Preflight Authorization of 
                                 Filing

375.40 Permits for commercial air operations.
375.41 Agricultural and industrial operations within the United States.
375.42 Transport operations--occasional planeload charters.
375.43 Application for foreign aircraft permit.
375.44 Issuance of permit.
375.45 Records and reports of occasional planeload charters.

                       Subpart F_Transit Flights.

375.50 Transit flights; scheduled international air service operations.

                           Subpart G_Penalties

375.60 Penalties.

                     Subpart H_Special Authorization

375.70 Special authorization.

Appendix A to Part 375--Form 4509

    Authority: 49 U.S.C. 40102, 40103, and 41703.

    Source: OST Docket No. 42547, 51 FR 7254, Mar. 3, 1986, unless 
otherwise noted.



                            Subpart A_General



Sec. 375.1  Definitions.

    As used in this part:
    Act means the Federal Aviation Act of 1958, as amended;
    Air transportation means the carriage by aircraft of persons or 
property as a common carrier for compensation or hire or the carriage of 
mail by aircraft in interstate, overseas, or foreign commerce (see 
section 101 (10) and (23) of the Federal Aviation Act, 49 U.S.C. 1301);
    Category shall indicate a classification of aircraft such as 
airplane, helicopter, glider, etc.;
    Commercial air operations shall mean operations by foreign civil 
aircraft engaged in flights for the purpose of crop dusting, pest 
control, pipeline patrol, mapping, surveying, banner towing, skywriting, 
or similar agricultural and industrial operations performed in the 
United States, and any operations for remuneration or hire to, from or 
within the United States including air carriage involving the 
discharging or taking on of passengers or cargo at one or more points in 
the United States, including carriage of cargo for the operator's own 
account if the cargo is to be resold or otherwise used in the 
furtherance of a business other than the business of providing carriage 
by aircraft, but excluding operations pursuant to foreign air carrier 
permits issued under 49 U.S.C. 41301, exemptions, and all other 
operations in air transportation.
    Exemption means an exemption granted, under section 416(b) of the 
Act, authorizing air transportation by a foreign air carrier;

[[Page 391]]

    Foreign air carrier permit means a permit authorizing foreign air 
transportation by a foreign air carrier pursuant to section 402 of the 
Act;
    Foreign aircraft permit means a permit authorizing navigation of 
foreign civil aircraft in the United States pursuant to section 1108(b) 
of the Act and this part;
    Foreign civil aircraft means (a) an aircraft of foreign registry 
that is not part of the armed forces of a foreign nation, or (b) a U.S.-
registered aircraft owned, controlled or operated by persons who are not 
citizens or permanent residents of the United States;
    Stop for non-traffic purposes means a landing for any purpose other 
than taking on or discharging passengers, cargo or mail, and does not 
include landings for embarking or disembarking stopover passengers or 
transshipped cargo or mail, or for other than strictly operational 
purposes.
    Type means all aircraft of the same basic design including all 
modifications thereto except those modifications that result in a change 
in handling or flight characteristics.

[OST Docket No. 42547, 51 FR 7254, Mar. 3, 1986, as amended at 71 FR 
15328, Mar. 28, 2006]



Sec. 375.2  Applicability.

    The provisions of this part regulate the admission to, and 
navigation in, the United States of foreign civil aircraft other than 
aircraft operated under authority contained in a foreign air carrier 
permit or exemption. This part also contains provisions that specify the 
extent to which certain classes of flight operations by foreign civil 
aircraft may be conducted, and the terms and conditions applicable to 
such operations. Nothing in this part shall authorize any foreign civil 
aircraft to engage in air transportation nor be deemed to provide for 
such authorization by the Department.



Sec. 375.3  [Reserved]



                         Subpart B_Authorization



Sec. 375.10  Certain foreign civil aircraft registered in ICAO member states.

    Subject to the observance of the applicable rules, conditions, and 
limitations set forth in this part:
    (a) Foreign civil aircraft manufactured in a State that at the time 
of manufacture was a member of the International Civil Aviation 
Organization (ICAO), and registered in a State that at the time of 
flight is a member of ICAO, may be navigated in the United States;
    (b) Foreign civil aircraft manufactured in a State that at the time 
of manufacture was not a member of ICAO, and registered in a State that 
at the time of flight is a member of ICAO, may be navigated in the 
United States,
    (1) If the State of registry has notified ICAO that the requirements 
under which it issues or renders valid certificates of airworthiness are 
equal to or above the minimum standards established pursuant to the 
Chicago Convention, or
    (2) If such notification has not been made to ICAO at the time of 
flight, there is on file with the Department a statement by the State of 
registry that, with regard to aircraft of the type that is proposed to 
be operated hereunder, the requirements under which certificates of 
airworthiness are issued or rendered valid are equal to or above the 
minimum standards established pursuant to the Chicago Convention.



Sec. 375.11  Other foreign civil aircraft.

    A foreign civil aircraft other than those referred to in Sec. 
375.10 may be navigated in the United States only when (a) the operation 
is authorized by the Department under the provisions of this part, and 
(b) the aircraft complies with any applicable airworthiness standards of 
the Federal Aviation Administration for its operation.



                  Subpart C_Rules Generally Applicable



Sec. 375.19  Nature of privilege conferred.

    The provisions of this part, and of any permit issued hereunder, 
together with section 1108(b) of the Act, are designed, among other 
purposes, to carry out the international undertakings of the United 
States in the Chicago Convention, in particular Article 5. That article 
gives foreign aircraft the privilege of ``taking on or discharging 
passengers, cargo or mail'' subject to the

[[Page 392]]

right of the State where such embarkation or discharge takes place to 
impose such regulations, conditions or limitations as it may consider 
desirable. The U.S. Congress by the 1953 amendment to section 6 of the 
Air Commerce Act of 1926, now designated as section 1108(b) of the Act, 
authorizes the Department to permit such operations only where 
conditions of reciprocity and the interest of the public in the United 
States are met. Thus, the operator of any foreign registered aircraft is 
not entitled as a matter of right to the issuance, renewal or freedom 
from modification or change in a permit issuable pursuant to this 
authority. Accordingly, any authority conferred by this part may be 
withheld, revoked, amended, modified, restricted, suspended, withdrawn, 
or canceled by the Department in the interest of the public of the 
United States, without notice or hearing.



Sec. 375.20  Airworthiness and registration certificates.

    Foreign civil aircraft shall carry currently effective certificates 
of registration and airworthiness issued or rendered valid by the 
country of registry and shall display the nationality and registration 
markings of that country. However, a foreign civil aircraft may carry, 
in lieu of such certificate of airworthiness, an effective special 
flight authorization issued by the Federal Aviation Administration for 
the operations being performed.



Sec. 375.21  Airmen.

    Members of the flight crew of a foreign civil aircraft shall have in 
their personal possession valid airman certificates or licenses 
authorizing them to perform their assigned functions in the aircraft and 
for the operation involved issued or rendered valid by the country of 
registry of the aircraft or by the United States. No such flight crew 
members shall perform any flight duty within the United States that they 
are not currently authorized to perform in the country issuing or 
validating the certificate.



Sec. 375.22  Flight operations.

    Flights of foreign civil aircraft in the United States shall be 
conducted in accordance with the currently applicable rules of the 
Federal Aviation Administration.



Sec. 375.23  Maximum allowable weights.

    Foreign civil aircraft that are permitted to navigate in the United 
States on the basis of foreign airworthiness certificates must conform 
to the limitations on maximum certificated weights prescribed or 
authorized for the particular variation of the aircraft type, and for 
the particular category of use, by the country of manufacture of the 
aircraft type involved.



Sec. 375.24  Entry and clearance.

    All U.S. entry and clearance requirements for aircraft, passengers, 
crews, baggage and cargo shall be followed.



Sec. 375.25  Unauthorized operations.

    No foreign civil aircraft shall be navigated in the United States 
unless authorized by this part. Commercial air operations (other than 
those authorized by Sec. 375.36) shall not be undertaken without a 
permit issued by the Department.



Sec. 375.26  Waiver of sovereign immunity.

    Owners and operators of aircraft operated under this part that are 
engaged in proprietary of commercial activities waive any defense of 
sovereign immunity from suit in any action or proceeding instituted 
against any of them in any court or other tribunal in the United States 
for any claim relating to that operation.



                     Subpart D_Authorized Operations



Sec. 375.30  Operations other than commercial air operations.

    Foreign civil aircraft that are not engaged in commercial air 
operations into, out of, or within the United States may be operated in 
the United States and may carry non-revenue traffic to, from or between 
points in the United States.



Sec. 375.31  Demonstration flights of foreign aircraft.

    Flights of foreign civil aircraft within the United States may be 
made for the purpose of demonstration of the

[[Page 393]]

aircraft or any component thereof (including demonstrations at 
airshows), provided no persons, cargo or mail are carried for 
remuneration or hire.



Sec. 375.32  Flights incidental to agricultural and industrial operations outside the United States.

    Foreign civil aircraft that are engaged in agricultural or 
industrial operations to be performed wholly outside the United States 
may be navigated into, out of, and within the United States in 
connection with those operations provided that the aircraft is not at 
the time engaged in the carriage of passengers, cargo, or mail for 
remuneration or hire.



Sec. 375.33  Transit flights, irregular operations.

    Foreign civil aircraft carrying passengers, property or mail for 
remuneration or hire, but not engaged in scheduled international air 
services, are authorized to navigate nonstop across the territory of the 
United States and to make stops for non-traffic purposes. The navigation 
of foreign civil aircraft in the United States is not authorized under 
this section when the elapsed time between landing and takeoff at a stop 
in the United States exceeds 24 hours and passengers are permitted to 
leave the airport or when passengers, property or mail are transferred 
to another aircraft. Flights involving stops under such circumstances 
may, however, be performed in the case of emergency relating to the 
safey of the aircraft, passengers, cargo or crew.



Sec. 375.34  Indoctrination training.

    Foreign civil aircraft may be operated in the United States for the 
purpose of giving indoctrination training in the operation of the 
aircraft concerned to a buyer or a buyer's employees or designees. This 
section does not, however, authorize foreign civil aircraft to be used 
within the United States for the purpose of flight instruction for 
remuneration or hire.



Sec. 375.35  Free transportation.

    (a) Foreign civil aircraft may be navigated in the United States by 
a foreign air carrier for the transportation of persons and property 
specified in paragraph (b) of this section over the following non-
traffic segments provided such transportation is not for compensation or 
hire:
    (1) Between two or more points in the United States;
    (2) Between a point in the United States named in the carrier's 
section 402 permit or exemption, and a point outside the United States 
not so named, when authorized in accordance with the provisions of part 
216 of this chapter to carry blind sector traffic to or from such 
unnamed foreign point; and
    (3) Between a point in the United States and a point outside thereof 
when the carrier lands at the United States point for non-traffic 
purposes in exercise of the privilege granted under the International 
Air Services Transit Agreement.
    (b) Free transportation may be provided under this section for the 
following categories of persons and property:
    (1) Directors, officers and employees, and their parents and 
immediate families, of the foreign air carrier operating the aircraft;
    (2) Directors, officers and employees, and their parents and 
immediate families, of an air carrier or another foreign air carrier 
traveling pursuant to a pass interchange arrangement;
    (3) Travel agents being transported for the purpose of familiarizing 
themselves with the carrier's services, if the agents are under no 
obligation to sell the transporting carrier's services;
    (4) Witnesses and attorneys attending any legal investigation in 
which any such foreign air carrier is involved;
    (5) Persons injured in aircraft accidents and physicians and nurses 
attending such persons;
    (6) Any persons or property with the object of providing relief in 
cases of general epidemic, natural disaster or other catastrophe;
    (7) Any person who has the duty of guarding foreign government 
officials travelling on official business; and
    (8) Guests of a foreign air carrier (including members of the press) 
on delivery flights of newly-acquired or newly-renovated aircraft.

[[Page 394]]

    (c) A charge reasonably related to the value of meals and beverages 
furnished enroute shall not be deemed to constitute compensation or hire 
for purposes of this section.



Sec. 375.36  Lease of foreign civil aircraft without crew.

    Foreign civil aircraft that are leased without crew to an air 
carrier or citizen or permanent resident of the United States, and used 
by the lessee in otherwise authorized air transportation or commercial 
air operations, may be operated into, out of, and within the United 
States in accordance with any applicable regulations prescribed by the 
Federal Aviation Administration.



Sec. 375.37  Certain business aviation activities using U.S.-registered foreign civil aircraft.

    For purposes of this section, ``company'' is defined as a person 
that operates civil aircraft in furtherance of a business other than air 
transportation. U.S.-registered foreign civil aircraft that are not 
otherwise engaged in commercial air operations, or foreign air 
transportation, and which are operated by a company in the furtherance 
of a business other than transportation by air, when the carriage is 
within the scope of, and incidental to, the business of the company 
(other than transportation by air), may be operated to, from, and within 
the United States as follows:
    (a) Intra-company operations. A company operating a U.S.-registered 
foreign civil aircraft may conduct operations for a subsidiary or parent 
or a subsidiary of its parent on a fully-allocated cost reimbursable 
basis; provided, that the operator of the U.S.-registered foreign civil 
aircraft must hold majority ownership in, be majority owned by, or have 
a common parent with, the company for which it provides operations;
    (b) Interchange operations. A company may lease a U.S.-registered 
foreign civil aircraft to another company in exchange for equal time 
when needed on the other company's U.S. registered aircraft, where no 
charge, assessment, or fee is made, except that a charge may be made not 
to exceed the difference between the cost of owning, operating, and 
maintaining the two aircraft;
    (c) Joint ownership operations. A company that jointly owns a U.S.-
registered foreign civil aircraft and furnishes the flight crew for that 
aircraft may collect from the other joint owners of that aircraft a 
share of the actual costs involved in the operation of the aircraft; and
    (d) Time-sharing operations. A company may lease a U.S.-registered 
foreign civil aircraft, with crew, to another company; provided, that 
the operator may collect no charge for the operation of the aircraft 
except reimbursement for:

    (1) Fuel, oil, lubricants, and other additives.
    (2) Travel expenses of the crew, including food, lodging, and ground 
transportation.
    (3) Hanger and tie-down costs away from the aircraft's base of 
operations.
    (4) Insurance obtained for the specific flight.
    (5) Landing fees, airport taxes, and similar assessments.
    (6) Customs, foreign permit, and similar fees directly related to 
the flight.
    (7) In flight food and beverages.
    (8) Passenger ground transportation.
    (9) Flight planning and weather contract services.
    (10) An additional charge equal to 100 percent of the expenses for 
fuel, oil, lubricants, and other additives.

[Doc. No. OST-2003-15511, 71 FR 15328, Mar. 28, 2006]



   Subpart E_Operations Requiring Specific Preflight Authorization of 
                                 Filing



Sec. 375.40  Permits for commercial air operations.

    (a) Permit required. Except for aircraft being operated under a 
foreign air carrier permit, an exemption, or as otherwise provided in 
Subpart D or H of this part, foreign civil aircraft may engage in 
commercial air operations only if there is carried on board the aircraft 
a permit issued by the Department in accordance with this subpart 
authorizing the operations involved.

[[Page 395]]

    (b) Aircraft are not authorized to engage in air transportation 
under this section. Where an operation involves the carriage of persons, 
property or mail for compensation or hire, the Department will determine 
whether particular flights for which a permit is sought will be in 
common carriage, and therefore in air transportation, based on all the 
facts and circumstances surrounding the applicant's entire operations. 
The burden rests upon the applicant in each instance to demonstrate by 
an appropriate factual showing that the contemplated operation will not 
constitute common carriage from, to or within the United States. In 
general, an applicant that holds itself out to the public, or to a 
particular class or segment, as willing to furnish transportation for 
hire is a common carrier.



Sec. 375.41  Agricultural and industrial operations within the United States.

    Foreign civil aircraft shall not be used for such commercial air 
operations as crop dusting, pest control, pipeline patrol, mapping, 
surveying, banner towing, skywriting or similar agricultural or 
industrial operations within the United States, including its 
territorial waters and overlying airspace, unless a permit has been 
issued by the Department and the operation is conducted in accordance 
with all applicable State and local laws and regulations as well as the 
applicable provisions of this part.



Sec. 375.42  Transport operations--occasional planeload charters.

    Occasional planeload charters may be authorized where, because of 
their limited nature and extent, special equipment or facilities 
utilized, or other circumstances pertaining to them, it appears that 
they are not within the scope of the applicant's normal holding out of 
transportation services to the general public. Such charters are 
normally limited to those in which the entire capacity of the aircraft 
is engaged by a single charterer, and since they are occasional in 
nature, should not exceed for any one applicant more than six flights 
during a calendar year. This part does not authorize operations that 
involve solicitation of the general public such as is usually involved 
in the transportation of individually-ticketed passengers or 
individually-waybilled cargo, or in which the charterer is a travel 
agent, a charter operator, a broker, an air freight forwarder or any 
other organization that holds itself out to the general public to 
provide transportation services. Carriage of cargo for the operator's 
own account is governed by the provisions of this section if the cargo 
is to be resold or otherwise used in the furtherance of a business other 
than the business of providing carriage by aircraft.



Sec. 375.43  Application for foreign aircraft permit.

    (a) Applications for foreign aircraft permits shall be submitted on 
OST Form 4509, (Appendix A), in duplicate, addressed to the Chief, 
Discrete Operations Branch, Licensing Division, P-45, Office of Aviation 
Operations. Upon a showing of good cause, applications may be made by 
telegram or by telephone.
    (b) Applications shall contain a proper identification (including 
citizenship) of the applicant (the operator of the aircraft concerned) 
and of the owner thereof (if different from the applicant), a 
description of the aircraft by make, model, and registration marks; and 
a full description of the operations for which authority is desired, 
indicating type and dates of operations and number of flights, and 
routing. In the case of cargo flights, the names of all contractors, 
agents, if any, and the beneficial owner of the cargo, and a description 
of the cargo and of the proposed operations shall be provided. In the 
case of passenger flights, a full identification and description of the 
group chartering the aircraft, and identification of the travel agent, 
if any, shall be provided. Applications shall also contain a statement 
as to whether the applicant's homeland allows operators of U.S.-
registered aircraft to conduct similar operations.
    (c) Applications shall be filed at least 15 days in advance of the 
proposed commencement date of the operations. The Department may direct 
the applicant to serve copies of its application on additional persons. 
Late applications

[[Page 396]]

may be considered by the Department upon a showing of good cause.
    (d)(1) Any party in interest may file a memorandum supporting or 
opposing an application. Two copies of each memorandum shall be filed 
within 7 business days after the application is filed but no later than 
the proposed commencement date of the operations. Memoranda will be 
considered to the extent practicable; the Department 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 Department is asked to consider.
    (3) A copy of each memorandum shall be served on the applicant.
    (e)(1) Unless otherwise ordered by the Department, each application 
and memorandum filed in response shall be available for public 
inspection at the Licensing Division of the Office of Aviation 
Operations immediately upon filing. Notice of the filing of all 
applications shall be published in the Department's Weekly List of 
Applications Filed.
    (2) Any person objecting to public disclosure of any information in 
an application or memorandum must state the grounds for the objection in 
writing. If the Department finds that disclosure of all or part of the 
information should be withheld under applicable provisions of law, and 
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 
2106-0002)



Sec. 375.44  Issuance of permit.

    (a) The Department will issue a foreign aircraft permit if it finds 
that the proposed operations meet the requirements of this part and are 
in the public interest. Foreign aircraft permits may be conditioned or 
limited by the Department. Permits must be carried aboard the 
applicant's aircraft during flight over U.S. territory, and are not 
transferable.
    (b) In determining whether to grant a particular application, the 
Department will consider, among other factors, the extent to which the 
country of the applicant's nationality deals with U.S. civil aircraft 
operators on the basis of substantial reciprocity, and whether the 
operation is otherwise in the public interest.



Sec. 375.45  Records and reports of occasional planeload charters.

    (a) Cargo documents. The holder of a permit for cargo operations 
shall issue a manifest or shipping document to its shipper with respect 
to each shipment.
    (b) [Reserved]
    (c) Contents of documents for passenger flights. The holder of a 
permit for passenger charters originating or terminating in the United 
States shall require each charterer to file with it prior to flight a 
list of names and addresses of all passengers to be transported on each 
flight.
    (d) Reports of unused authority. All foreign operators of occasional 
planeload charters for which authority is granted must notify the 
Department, in writing, not later than 15 days after the expiration of 
their permits, or their failure to use this authority. The unused 
authority shall otherwise be deemed to have been exercised.



                        Subpart F_Transit Flights



Sec. 375.50  Transit flights; scheduled international air service operations.

    (a) Requirement of notice. Scheduled international air services 
proposed to be operated pursuant to the International Air Services 
Transit Agreement in transit across the United States may not be 
undertaken by foreign civil aircraft unless the operator of such 
aircraft, and (if other than the operator) the carrier offering such 
service to the public, has, not less than 30 days prior to the date of 
commencement of such service, filed a Notice of Proposed Transit Flights 
Pursuant to the International Air Services Transit Agreement in 
accordance with the provisions of paragraphs (b) and (c) of this 
section.
    (b) Filing of the notice. An original and two copies of the Notice 
shall be filed with the Chief, Discrete Operations Branch, Licensing 
Division, P-

[[Page 397]]

45, Office of Aviation Operations. Copies of the Notice shall be served 
upon the Department of State and the Administrator of the Federal 
Aviation Administration. The filing date shall be the date of actual 
receipt by the Department.
    (c) Content of notice. A ``Notice of Proposed Transit Flights 
Pursuant to the International Air Services Transit Agreement'' shall be 
clearly labeled as such, and as a minimum shall set forth, with whatever 
detail may be necessary, the following information:
    (1) The name, country or organization, and citizenship of the 
operator, and, if other than the operator, of the carrier offering the 
services to the public. If any interest (direct or indirect) in the 
operator or offeror of services is held by nationals of a country other 
than the country of organization or citizenship, the nature and extent 
of such interest must be fully disclosed. If any officer or director of 
the operator or carrier offering the services is a national of a country 
other than the country of organization or citizenship, the position of 
duties of such officer or director, and the officer and director's 
relevant position in relation to other officers and directors must 
similarly be fully disclosed. If the information required in this 
subsection has been previously supplied to the Department, the applicant 
may incorporate it by reference.
    (2) The State of registration of the aircraft proposed to be 
operated.
    (3) A full description of the proposed operations including the type 
of operations (passenger, property, mail, or combination), date of 
commencement, duration and frequency of flights, and routing (including 
each terminal and intermediate point to be served).
    (4) A statement as to whether or not any advertisement or 
publication of the proposed operations has been made in the United 
States. If there has been any advertisement or publication of the 
operations in the United States, copies of all such advertisements or 
publications shall be included.
    (5) Any change with respect to these matters (minor changes in 
schedules or routing excepted) shall also be filed with the Department.
    (d) Authorized operations. If the operator and the carrier offering 
services to the public (if different from the operator) have filed a 
``Notice of Proposed Transit Flights Pursuant to the International Air 
Services Transit Agreement,'' at least 30 days before the date of 
commencement of the proposed operations in accordance with paragraphs 
(a), (b), and (c) of this section, the described operations may be 
commenced and performed without further authorization from the 
Department, unless and until the Department issues an order notifying 
the operator and/or the carrier offering the services to the public 
that, considering the matters submitted in the Notice, the Department is 
of the view that a question may exist as to whether:
    (1) The proposed services are authorized pursuant to the terms of 
the International Air Services Transit Agreement;
    (2) Substantial ownership and effective control are vested in 
nationals of a State party to the International Air Services Transit 
Agreement;
    (3) The proposed operations will be in compliance with the laws of 
the United States, the Department's rules, or the provisions of this 
section; or
    (4) The operator or its government have performed their obligations 
under the International Air Services Transit Agreement.
    (e) Prohibited operations. If the Department issues an order of 
notification as described in paragraph (d) of this section, neither the 
operator, nor the carrier offering the services to the public, shall 
commence the proposed operations, or, except as may be otherwise 
specified in the order, operate any flights subsequent to receipt of the 
order, unless and until the Department issues a foreign aircraft permit 
pursuant to the provisions of section 1108(b) of the Act and this part 
specifically authorizing such operations.
    (f) Foreign aircraft permit--application and procedures. If the 
Department issues an Order of Notification as described in paragraph (d) 
of this section, the carrier's Notice of Proposed Transit Flights 
Pursuant to the International Air Services Transit Agreement shall be 
treated as an application

[[Page 398]]

for the required foreign aircraft permit, and further procedures on such 
application shall be as directed by the Department.
    (g) Short notice filing. Nothing in this section shall be construed 
as precluding the filing of an application for a foreign aircraft permit 
to perform transit operations pursuant to the International Air Services 
Transit Agreement less than 30 days in advance of the proposed 
operation. No such flights shall be operated, however, unless or until a 
specific foreign aircraft permit has been issued by the Department.
    (h) Nature of privilege conferred. Air transportation is not 
authorized under this section, and the burden rests upon each operator 
and carrier to show that the proposed operations will not constitute air 
transportation within the meaning of the Federal Aviation Act. In 
addition, each operator and carrier has the burden of demonstrating that 
the proposed operations are authorized by the International Air Services 
Transit Agreement, and that the appropriate authorization should not be 
withheld pursuant to section 5 of Article I thereof. Stopovers for the 
convenience or pleasure of the passengers are not authorized under this 
section and stops other than for strictly operational reasons shall not 
be made. The consolidation on the same aircraft of an operation under 
this section with a service authorized under section 402 or 416(b) of 
the Act is not authorized by this section. Any authorization or permit 
granted under this section is nontransferable, and may be withheld, 
revoked, suspended, withdrawn, or cancelled by the Department, without 
notice or hearing, if required by the public interest. Operators of 
aircraft registered in countries not parties to the International Air 
Services Transit Agreement shall make special application to the 
Department under Sec. 375.70.



                           Subpart G_Penalties



Sec. 375.60  Penalties.

    The operation of a foreign aircraft within the United States or over 
adjacent territorial waters in violation of the provisions of this part 
constitutes a violation of the Federal Aviation Act and of this chapter, 
and may, in addition, constitute a violation of the rules of the Federal 
Aviation Administration. Such operation makes the person or persons 
responsible for the violation or violations subject to a civil penalty 
as provided in section 901 of the Act, and to the alteration, amendment, 
modification, suspension or revocation of any permit issued under this 
part and of any U.S. certificate involved as provided in section 609 of 
the Act. Engaging in air transportation as defined in the Act by a 
foreign aircraft without a foreign air carrier permit issued pursuant to 
section 402 of the Act or an exemption, or in violation of the terms of 
such authority constitutes not only a violation of this part but of 
title IV of the Act as well, which entails a criminal penalty as set 
forth in section 902 of the Act.



                     Subpart H_Special Authorization



Sec. 375.70  Special authorization.

    Any person desiring to navigate a foreign civil aircraft within the 
United States other than as specifically provided in this part may 
petition the Department for a special authorization to conduct the 
particular flight or series of flights. Such authorization may be issued 
only if the Department finds that the proposed operation is fully 
consistent with the applicable law, that the applicant's homeland grants 
a similar privilege with respect to operators of U.S.-registered 
aircraft, and that the proposed operation is in the interest of the 
public of the United States.

[[Page 399]]



Sec. Appendix A to Part 375--Form 4509

[GRAPHIC] [TIFF OMITTED] TC30SE91.018


[[Page 400]]


[GRAPHIC] [TIFF OMITTED] TC30SE91.019


[[Page 401]]





PART 377_CONTINUANCE OF EXPIRED AUTHORIZATIONS BY OPERATION OF LAW PENDING FINAL DETERMINATION OF APPLICATIONS FOR RENEWAL THEREOF--Table of Contents




                      Subpart A_General Provisions

Sec.
377.1 Definitions.
377.2 Applicability of part.
377.3 Authorizations not covered by 5 U.S.C. 558(c).
377.4 Certain authorizations with alternative termination dates.
377.5 Procedure to obtain Board interpretation.

          Subpart B_Renewal Applications and Procedure Thereon

377.10 Requirements for, and effect of, renewal applications.
377.11 Processing of defective renewal applications.

    Authority: 49 U.S.C. Chapters 401, 461; 5 U.S.C. 558, 559.



                      Subpart A_General Provisions



Sec. 377.1  Definitions.

    As used in this part:
    Authorization means any agency certificate, approval, statutory 
exemption or other form of permission granted pursuant to sections 
101(3), 401, 402, 408, 409, 412 and 416 of the Federal Aviation Act of 
1958, as amended. Where any operating authorization creates more than 
one separate route, each of these shall be deemed a separate 
authorization for the purposes of this part.
    Renewal application means any application filed in conformity with 
the requirements of this part which requests either a renewal or a new 
license and is intended to invoke the provisions of the last sentence of 
5 U.S.C. 558(c).
    Route means an authorization which permits an air carrier to render 
unlimited regularly scheduled service between a specifically designated 
pair of terminal points and intermediate points, if any.

[SPR-84, 40 FR 24998, June 12, 1975, as amended by SPR-184, 47 FR 7212, 
Feb. 18, 1982]



Sec. 377.2  Applicability of part.

    (a) This part implements the last sentence of 5 U.S.C. 558(c) with 
regard to temporary authorizations granted by the Board.
    Note: The last sentence of 5 U.S.C. 558(c) provides: ``When the 
licensee has made timely and sufficient application for a renewal or a 
new license in accordance with agency rules, a license with reference to 
an activity of a continuing nature does not expire until the application 
has been finally determined by the agency.''
    (b) Nothing in this part prevents the Board from terminating at any 
time, in accordance with law, any authorization or any extension of an 
authorization.
    (c) Nothing in this part constitutes a determination that any given 
authorization is a ``license with reference to an activity of a 
continuing nature'' within the meaning of 5 U.S.C. 558(c).

[SPR-184, 47 FR 7212, Feb. 18, 1982]



Sec. 377.3  Authorizations not covered by 5 U.S.C. 558(c).

    The Board hereby determines that the following authorizations are 
not licenses ``with reference to an activity of a continuing nature'' 
within the meaning of 5 U.S.C. 558(c):
    (a) Authorizations granted for a specified period of 180 days or 
less; and
    (b) Authorizations, other than those granted under section 401 of 
the Act, that by their terms are subject to termination at an uncertain 
date upon the happening of an event, including fulfillment of a 
condition subsequent or occurrence of a contingency.

[SPR-184, 47 FR 7212, Feb. 18, 1982]



Sec. 377.4  Certain authorizations with alternative termination dates.

    Unless granted under section 401 of the Act, an authorization that 
by its terms is subject to termination alternatively, either at an 
uncertain date upon the happening of an event or upon the arrival of a 
specified date:
    (a) Will not be considered a ``license with reference to an activity 
of a continuing nature'' within the meaning of 5 U.S.C. 558(c), if the 
event occurs before the specified date; and
    (b) Ordinarily (subject to Board interpretation under Sec. 377.5) 
will be considered such a license, if the event does not occur before 
the specified date and

[[Page 402]]

that date is more than 180 days after the effective date of the 
authorization.

[SPR-184, 47 FR 7212, Feb. 18, 1982]



Sec. 377.5  Procedure to obtain Board interpretation.

    (a) The Board will determine upon written request by the holder of a 
temporary authorization or by any competitively affected air carrier or 
foreign air carrier, or upon its own initiative, whether the temporary 
authorization is a ``license with reference to an activity of a 
continuing nature'' within the meaning of 5 U.S.C. 558(c).
    (b) A written request for such a Board determination shall be filed 
at least 60 days before the deadline set forth in Sec. 377.10 for a 
timely renewal application.
    (c) The filing of such a written request shall not affect the 
timeliness requirements for renewal applications that are set forth in 
Sec. 377.10 or any other applicable Board rule or order.

[SPR-184, 47 FR 7212, Feb. 18, 1982]



          Subpart B_Renewal Applications and Procedure Thereon



Sec. 377.10  Requirements for, and effect of, renewal applications.

    (a) Identification of authorization covered by renewal application. 
Each renewal application shall identify the authorization or 
authorizations to which it is intended to relate. The application shall 
indicate the applicant's intention to rely upon 5 U.S.C. 558(c) as 
implemented by this part. In case of applications for renewal of an 
authorization for route service, the renewal application shall 
specifically identify the separate routes which the applicant proposes 
to continue serving pursuant to the expiring authorization, pending 
final determination of the renewal application.
    (b) Contents of renewal application. The application must contain 
all the information required by law and the Board's regulations, and 
meet the requirements thereof as to form. The new authorization sought 
need not be of the same duration as the expiring authorization. If the 
application relates to renewal of route authority, it must contain, as a 
minimum, a request for renewed authority to render route service between 
the terminals named in each separate route for which renewal is 
requested.
    (c) Timeliness. The application must be filed and served in 
compliance with applicable law and the Board's regulations at least 60 
days before the expiration date of the outstanding temporary 
authorization, except that:
    (1) For certificates issued under section 401 of the Act with a 
specified expiration date, the deadline is 180 days before the 
expiration date;
    (2) For certificates issued under section 401 of the Act that 
terminate by their terms upon the happening of an event that could not 
be foreseen, the deadline is 30 days after the time that the carrier has 
notice that the event will occur or has occurred;
    (3) For foreign air carrier permits issued under section 402 of the 
Act and exemptions issued under section 416 to non-U.S. citizens, the 
deadline is the expiration date itself;
    (4) For renewal by substantially equivalent certificate authority of 
fixed term route authorizations granted by exemption and for interim 
extension of the exemption, pursuant to Sec. 399.18 of this chapter, 
the deadline is 90 days before the expiration date; and
    (5) Nothing in this part supersedes a requirement for earlier filing 
contained in any law, Board rule or order, or temporary authorization.
    (d) Effect. In the case of authorizations which constitute licenses 
with reference to activities of a continuing nature within the meaning 
of 5 U.S.C. 558(c), the filing of an application complying in all 
respects with the requirements of paragraphs (a) through (c) of this 
section shall extend the authorization to which it relates as then 
outstanding in its entirety, together with all applicable terms, 
conditions and limitations, until the application has been finally 
determined by the Board. In the case of routes granted under section 401 
of the Act, the duty to render adequate service continues to attach to 
every point as provided in the expired authorization which is extended 
pursuant to this provision. The date of final determination of the 
application shall be the date when the final order determining the 
application takes effect, or

[[Page 403]]

when the applicable period for filing of petitions for rehearing, 
reargument or reconsideration expires, or when a timely filed petition 
therefor is denied, whichever occurs latest.

[SPR-84, 40 FR 24998, June 12, 1975, as amended by SPR-184, 47 FR 7212, 
Feb. 18, 1982; 65 FR 6457, Feb. 9, 2000]



Sec. 377.11  Processing of defective renewal applications.

    When the Board determines that a renewal application does not comply 
with the requirements of this part, or that it does not relate to a 
license with reference to an activity of a continuing nature, it will so 
notify the applicant. The applicant may amend his application to cure 
the deficiency as a matter of right at any time prior to the date when 
the application was due pursuant to Sec. 377.10(c).

[SPR-84, 40 FR 24998, June 12, 1975]



PART 380_PUBLIC CHARTERS--Table of Contents




                      Subpart A_General Provisions

Sec.
380.1 Applicability.
380.2 Definitions.
380.3 General provisions.
380.4 Enforcement.

                  Subpart B_Conditions and Limitations

380.10 Public Charter requirements.
380.11 Payment to direct air carrier(s).
380.12 Cancellation by charter operator and notice to participants.
380.13 Prohibition on sale of round trips with open returns.
380.14 Unused space.
380.15 Substitution for charter participants.
380.17 Charters conducted by educational institutions.

         Subpart C_Requirements Applicable to Charter Operators

380.20 Relief from the Statute.
380.21-380.23 [Reserved]
380.24 Suspension of exemption authority.
380.25 Prospectus filing and related requirements.
380.26 Discrimination.
380.27 Methods of competition.
380.28 Charter prospectus.
380.29 Charter contract.
380.30 Solicitation materials.
380.31 General requirements for operator-participant contracts.
380.32 Specific requirements for operator-participant contracts.
380.33 Major changes in itinerary or price; refunds.
380.33a Operator's option plan.
380.34 Security and depository agreements.
380.34a Substitution of direct air carrier's security or depository 
          agreement.
380.35 Disbursements from depository account.
380.36 Record retention.

        Subpart D_Requirements Applicable to Direct Air Carriers

380.40 Charter not to be performed unless in compliance with this part 
          380.
380.41-380.42 [Reserved]
380.43 Cancellations by direct air carriers.
380.45 Suspension of exemption authority.
380.46 Charter trip reporting.

           Subpart E_Registration of Foreign Charter Operators

380.60 Purpose.
380.61 Operation by foreign charter operators.
380.62 Registration applications.
380.63 Objections to registration applications.
380.64 Department action on a registration application.
380.65 Notification of change of operations or ownership.
380.66 Cancellation or conditioning of the registration.
380.67 Waiver of sovereign immunity.

Appendix A to Part 380--Public Charter Operator's Surety Bond Under Part 
          380 of the Special Regulations of the Department of 
          Transportation (14 CFR Part 380)
Appendix B to Part 380--Public Charter Surety Trust Agreement

    Authority: 49 U.S.C. 40101, 40102, 40109, 40113, 41101, 41103, 
41301, 41504, 41702, 41708, 41712, 46101.

    Source: Docket No. OST-97-2356, 63 FR 28241, May 22, 1998, unless 
otherwise noted.



                      Subpart A_General Provisions



Sec. 380.1  Applicability.

    This part applies to Public Charter air transportation of passengers 
in interstate or foreign air transportation, whether furnished by direct 
air carriers or Public Charter operators. This part also relieves such 
charter operators from various provisions of subtitle VII of Title 49 of 
the United States Code (statute), formerly Title IV of the Federal 
Aviation Act of 1958,

[[Page 404]]

as amended, for the purpose of enabling them to provide Public Charters 
utilizing aircraft chartered from such direct air carriers. It also 
declines jurisdiction over foreign Public Charter operators operating 
foreign-originating Public Charters.



Sec. 380.2  Definitions.

    For the purposes of this part:
    Certificated air carrier means a U.S. direct air carrier holding a 
certificate issued under the statute.
    Charter flight means a flight operated under the terms of a charter 
contract between a direct air carrier and its customer. It does not 
include scheduled air transportation, scheduled foreign air 
transportation, or nonscheduled cargo air transportation, sold on an 
individually ticketed or individually waybilled basis.
    Direct air carrier means a certificated commuter or foreign air 
carrier, or an air taxi operator registered under part 298 of this 
chapter, or a Canadian charter air taxi operator registered under part 
294 of this chapter, that directly engages in the operation of aircraft 
under a certificate, authorization, permit or exemption issued by the 
Department.
    Educational institution means a school that is operated as such on a 
year-round basis and is empowered to grant academic degrees or secondary 
school diplomas by any government in the United States or by a foreign 
government.
    Foreign air carrier means a direct air carrier that holds a foreign 
air carrier permit issued under the statute or an exemption issued under 
the statute authorizing direct foreign air transportation.
    Foreign Public Charter opertor means an indirect air carrier which 
is not a citizen of the United States as defined in the statute, that is 
authorized to engage in the formation of groups for transportation on 
Public Charters in accordance with this part.
    Indirect air carrier means any person who undertakes to engage 
indirectly in air transportation operations and who uses for such 
transportation the services of a direct air carrier.
    Public Charter means a one-way or round-trip charter flight to be 
performed by one or more direct air carriers that is arranged and 
sponsored by a charter operator.
    Public Charter operator means a U.S. or foreign Public Charter 
operator.
    Security agreement means:
    (1) A surety bond issued by a company--
    (i) That is listed in the Best's Insurance Reports (Fire and 
Casualty) with a general policyholders' rating of ``A'' or better, or
    (ii) That is listed in the U.S. Department of Treasury's notice 
listing companies holding Certificates of Authority as acceptable 
sureties on Federal bonds and as acceptable reinsuring companies, 
published in the Federal Register in the first week in July; or
    (2) A Surety trust agreement or a letter-of-credit, issued by a 
Federal Deposit Insurance Corporation-insured financial institution, 
which provides substantially equivalent protection.
    Statute means Subtitle VII of Title 49 of the United States Code 
(Transportation).
    Sub-operator means a Public Charter operator that has contracted for 
its charter seats from a Public Charter operator that has contracted 
from one or more direct air carriers. A sub-operator is itself an 
indirect air carrier, not an agent of the Public Charter operator from 
which it has obtained its seat.
    U.S. Public Charter operator means an indirect air carrier that is a 
citizen of the United States as defined in 49 U.S.C. 40102(a) and that 
is authorized to engage in the formation of groups for transportation on 
Public Charters in accordance with this part.

[Docket No. OST-97-2356, 63 FR 28241, May 22, 1998, as amended at 70 FR 
25773, May 16, 2005]



Sec. 380.3  General provisions.

    (a) Public Charters may be operated on a one-way or round-trip 
basis, with no minimum group or contract size. Public Charters may be 
sold on an air-only basis, or with mandatory or optional land 
arrangements.
    (b) A U.S. Public Charter operator operating a Public Charter which 
originates in a foreign country shall not be subject to the requirements 
of Sec. Sec. 380.25, 380.28, 380.30 and 380.35.
    (c) The Department declines to exercise jurisdiction over a foreign 
Public

[[Page 405]]

Charter operator which operates a Public Charter originating in a 
foreign country, but reserves the right to exercise its jurisdiction 
over any foreign Public Charter operator at any time its finds that such 
action is in the public interest.
    (d)(1) An educational institution operating a Public Charter need 
not comply with the financial security requirements of Sec. 380.34 if 
each student participant in the charter is enrolled in a formal academic 
course of study outside the United States, sponsored by or in 
conjunction with that institution, that is of at least four weeks' 
duration.
    (2) The spouse, children, and parents of a student participant may 
accompany the participant on a charter operated under this section.
    (e) The Department, upon application or on its own initiative, may 
waive any of the provision of this part if it finds such action to be in 
the public interest.



Sec. 380.4  Enforcement.

    In the case of any violation of the provision of the Statute or of 
this part, or any other rule, regulations, or order issued under the 
Statute, the violator may be subject to a proceeding pursuant to the 
Statute before the Department or a U.S district court, as the case may 
be, to compel compliance therewith; to civil penalties pursuant to the 
provisions of the Statute, or to criminal penalties pursuant to the 
provisions of the Statute, or other lawful sanctions.



                  Subpart B_Conditions and Limitations



Sec. 380.10  Public Charter requirements.

    Public Charters under this part shall meet the following 
requirements:
    (a)-(b) [Reserved]
    (c) If the charter is on a round-trip basis, the departing flight 
and returning need not be performed by the same direct air carrier.
    (d) The air transportation portion of the charter must be performed 
by direct air carriers that hold authority under Chapter 411 and 413 of 
the Statute, or are operating under 14 CFR part 298, except that only 
U.S. citizen direct air carriers may provide air transportation for 
operations in interstate air transportation.



Sec. 380.11  Payment to direct air carrier(s).

    Except for air taxi operators and commuter air carriers (which are 
governed by 14 CFR 298.38) and Canadian charter air taxi operators 
(which are governed by 14 CFR 294.32), the direct air carrier(s) shall 
be paid in full for the cost of the charter transportation (for both 
legs, if a round-trip charter) prior to the scheduled date of flight 
departure, as provided for in the basic charter regulations applicable 
to the direct air carrier(s) under part 212 of this chapter.



Sec. 380.12  Cancellation by charter operator and notice to participants.

    (a) The charter operator may not cancel a charter for any reason 
(including insufficient participation), except for circumstances that 
make it physically impossible to perform the charter trip, less than 10 
days before the scheduled date of departure of the outbound trip.
    (b) If the charter operator cancels 10 or more days before the 
scheduled date of departure, the operator must so notify each 
participant in writing within 7 days after the cancellation but in any 
event not less than 10 days before the scheduled departure date of the 
outbound trip. If a charter is canceled less than 10 days before 
scheduled departure (i.e., for circumstances that make it physically 
impossible to perform the charter trip), the operator must get the 
message to each participant as soon as possible.



Sec. 380.13  Prohibition on sale of round trips with open returns.

    The charter operator shall not accept any participant's payment for 
return transportation unless the participant has specified a particular 
return flight.



Sec. 380.14  Unused space.

    Noting contained in this part shall preclude a charter operator from 
utilizing any unused space on an aircraft by it for a Public Charter for 
the transportation, on a free or reduced basis, of

[[Page 406]]

such charter operator's employees, directors, and officers, and parents 
and immediate families of such persons.



Sec. 380.15  Substitution for charter participants.

    Subsititues may be arranged for charter participants at any time 
preceding departure. Participants who provide the charter operator or 
its sales agent with a substitute participant, or who are substituted 
for by a participant found by the operator, shall receive a refund of 
all moneys paid to the operator, except that the operator may reserve 
the right to retain an administrative fee not to exceed $25 for 
effecting the substitution.



Sec. 380.17  Charters conducted by educational institutions.

    (a) This section shall apply only to charters conducted by 
educational institutions for charter groups comprised of bona fide 
participants in a formal academic course of study abroad which is of at 
least 4 weeks duration. The charter group may also include a student 
participant's immediate family (spouse, children, and parents). Except 
as modified in this section, all terms and conditions of this part 
applicable to the operation of Public Charters shall apply to charters 
conducted by educational institutions.
    (b) An educational institution conducting such a charter shall 
submit to the Office of Aviation Analysis, Special Authorities Division, 
a statement, signed by its president, certifying that it meets the 
definition of ``educational institution'' set forth in Sec. 380.2.
    (c) An educational institution conducting such a charter need not 
comply with the requirements of Sec. Sec. 380.25, 380.28, 380.34, and 
380.35.



         Subpart C_Requirements Applicable to Charter Operators



Sec. 380.20  Relief from the Statute.

    (a) To the extent necessary to permit them to organize and arrange 
public charters, charter operators and foreign charter operators are 
hereby relieved from the following provisions of Subtitle VII of Title 
49 of the U.S. Code, only if and so long as they comply with the 
provisions and the conditions imposed by this part:
    (1) Chapter 411.
    (2) Chapter 413.
    (3) Chapter 415.
    (4) Chapter 419.
    (5) If foreign charter operators receive interstate air 
transportation rights, any other provision of the statute that would 
otherwise prohibit them from organizing and arranging Public Charters in 
interstate air transportation.
    (b) A charter operator who is a citizen of the United States shall 
not be subject to the following requirements with respect to Public 
Charters that originate in a foreign country: Sec. Sec. 380.25, 380.28, 
and 380.30 through 380.35.



Sec. Sec. 380.21-380.23  [Reserved]



Sec. 380.24  Suspension of exemption authority.

    The Department reserves the power to deny the exemption authority of 
any charter operator, without hearing, if it finds that such action is 
necessary in the public interest or is otherwise necessary in order to 
protect the rights of the traveling public.



Sec. 380.25  Prospectus filing and related requirements.

    A charter operator may organize and operate a Public Charter only in 
accordance with this part, and subject to the following conditions:
    (a) No charter operator shall operate, sell, receive money from any 
prospective participant for, or offer to sell or otherwise advertise a 
charter or series of charters until the Office of Aviation Analysis, 
Special Authorities Division, has accepted a Public Charter prospectus 
as described in Sec. 380.28.
    (b) If within 10 days after the filing the Department notifies the 
charter operator that it has rejected the prospectus for noncompliance 
with this part, the prohibitions set forth in paragraph (a) of this 
section shall continue until the Department advises that it has accepted 
the prospectus.
    (c) The following amendments to a filed prospectus may be made:
    (1) The addition or cancellation of any flight;
    (2) A change in any flight, date, origin city or destination city; 
and

[[Page 407]]

    (3) A change in or addition of any direct air carrier, securer, or 
depository bank.
    (d) The charter operator shall amend the prospectus to reflect any 
change described in paragraph (c) of this section. The amendment shall 
be filed in the manner and form used for the original prospectus. It 
shall become effective upon filing unless the operator is otherwise 
notified.
    (e) The charter operator shall notify the depository bank (if any) 
and the securer of any change described in paragraph (c) of this section 
not later than when filing a prospectus amendment to reflect the change. 
If the securer is unable to adjust the security agreement as required by 
the change, the Office of Aviation Analysis, Special Authorities 
Division shall be advised of this fact within 2 business days.

(Approved by the Office of Management and Budget under Control Number 
2106-0005)



Sec. 380.26  Discrimination.

    No charter operator shall make, give, or cause any undue or 
unreasonable preference or advantage to any particular person, port, 
locality, or description of traffic in air transportation in any respect 
whatsoever, or subject any particular person, port, locality, or 
description of traffic in air transportation to any unjust 
discrimination or any undue or unreasonable prejudice or disadvantage in 
any respect whatsoever.



Sec. 380.27  Methods of competition.

    No charter operator shall engage in unfair or deceptive practices or 
unfair methods of competition in air transportation or the sale thereof.



Sec. 380.28  Charter prospectus.

    (a) The charter prospectus shall include an original and two copies 
of the following:
    (1) From the charter operator and the direct air carrier:
    (i) The proposed flight schedule, listing the origin and destination 
cities, dates, type of aircraft, number of seats, and charter price for 
each flight;
    (ii) The tour itinerary (if any) including hotels (name and length 
of stay at each), and other ground accommodations and services; and
    (iii) A statement that they have entered into a charter contract 
that covers the proposed flight schedule, that the contract complies 
with all applicable Department regulations, and that a copy of the 
schedule has been sent to the depository bank (if any) and the 
operator's securer. The schedule shall be identified with a number 
assigned by the charter operator that does not duplicate any schedule 
numbers assigned by the operator to other proposed flight schedules. The 
proposed flight schedule, tour itinerary (if any), and statement shall 
be filed on OST Form 4532.
    (2)(i) From the charter operator and the securer, a statement:
    (A) That they have entered into a security agreement covering the 
proposed flight schedule that complies with Sec. 380.34, including the 
amount of the coverage, the number assigned to it by the securer, and 
the amount of any outstanding claims against it, and
    (B) That the securer has received a copy of the proposed flight 
schedule. The statement shall identify the proposed flight schedule by 
the schedule number assigned by the charter operator in accordance with 
paragraph (a) of this section. If there are any outstanding claims 
against the agreement, the charter operator and securer shall also state 
that they have executed a rider or amendment increasing the coverage by 
the amount of the claims, or that the securer will separately pay any 
claims for which it may be liable without impairing the agreement or 
reducing the amount of its coverage.
    (ii) These statements shall be filed an OST Form 4533.
    (3) If a depository agreement is used, a statement from the charter 
operator, the direct air carrier, and the depository bank:
    (i) That they have entered into a depository agreement covering the 
proposed flight schedule that complies with Sec. 380.34, and
    (ii) That the bank has received a copy of the proposed flight 
schedule by the schedule number assigned by the charter operator in 
accordance with paragraph (a)(1) of this section. This statement shall 
be filed on OST Form 4534.

[[Page 408]]

    (b) Each of the statements described in paragraph (a) of this 
section shall also include the names and addresses of the parties to it, 
and the originals shall be signed by those parties.
    (c) The prospectus may cover a series of charters performed by one 
charter operator if the departure of the last charter is not more than 
one year after the departure of the first.
    (d) If the prospectus covers a series of charters and the air 
transportation will be performed by more than one direct air carrier, 
the prospectus shall include separate statements in accordance with 
paragraphs (a)(1) and (a)(3) of this section to cover the flights that 
will be performed by each direct carrier.

(Approved by the Office of Management and Budget under Control Number 
2106-0005)



Sec. 380.29  Charter contract.

    The charter contract between the charter operator or foreign charter 
operator and the direct air carrier shall evidence a binding commitment 
on the part of the carrier to furnish the air transportation required 
for the trip or trips covered by the contract.



Sec. 380.30  Solicitation materials.

    (a) All solicitation materials for a Public Charter shall include 
the name of the charter operator and the name of the direct air carrier.
    (b) Any solicitation material that states a price per passenger 
shall also include one of the following:
    (1) A statement referring to the operator-participant contract for 
further information about conditions applicable to the charter; or
    (2) The full text of the operator-participant contract.
    (c) Except as set forth in Sec. 380.33a for operator's option plan 
contracts, if the charter prospectus names alternative dates or cities, 
any solicitation material that states a price per passenger shall also 
state that the actual dates or cities have not yet been selected, if 
that is the case.
    (d) Any solicitation material that names a hotel but does not name 
every hotel named in the operator-participant contract shall also state 
that substitutions may be made.
    (e) In any solicitation material from a direct air carrier, indirect 
air carrier, or an agent of either, for a charter, charter tour (i.e., a 
combination of air transportation and ground accommodations), or a 
charter tour component (e.g., a hotel stay), any price stated for such 
charter, tour, or component shall be the entire price to be paid by the 
participants to the air carrier, or agent, for such charter, tour, or 
component.



Sec. 380.31  General requirements for operator-participant contracts.

    (a) Except for telephone sales for which payment is made by credit 
card as described in paragraph (b) of this section, the charter operator 
shall not accept payment from or on behalf of a prospective participant 
unless the participant has agreed to the conditions of the charter by 
signing an operator-participant contract as described in Sec. 380.32. 
If a member of a group that will travel together pays for the group, 
that member may sign the contract on behalf of the group.
    (b) For telephone sales only, the charter operator may accept 
payment by credit card without the participant having first signed an 
operator-participant contract provided that the charter operator first 
advises the customer:
    (1) That he or she has the right to receive the operator-participant 
contract before making a booking;
    (2) That the operator-participant contract will be mailed to the 
participant within 24 hours of accepting payment by credit card; and
    (3) That the operator-participant contract must be signed, and the 
signed portion returned to the operator, before travel.
    (4) A full refund must be made of any amounts charged to a credit 
card for any participant who cancels before the operator-participant 
contract is signed.
    (c) The contract form may include a space that participants may 
check to authorize the charter operator to retain their money while 
attempting to make other arrangements for them if there is no space 
available on the flight or on specific alternative flights they have 
requested.
    (d) If there is no space available on the flight or specific 
alternative flights

[[Page 409]]

requested by the participant the operator shall return all the 
participant's money within 7 days after receiving it unless the 
participant, in accordance with paragraph (c) of this section, has 
authorized the operator to retain the payments while the operator 
attempts to make other arrangements for the participant. If the operator 
retains the payments while attempting to make other arrangements for the 
participant, it shall notify the participant of the fact within 7 days 
after receiving the payments, but in no event later than the departure. 
For the purpose of the time periods in this paragraph, receipt of money 
by a travel agent on behalf of a charter operator will not be considered 
as receipt by the operator.
    (e) Except as set forth in Sec. 380.33a for operator's option plan 
contracts, the operator-participant contract shall not specify 
alternative dates for the outbound or return flights, or alternative 
origin or destination cities for any flight leg.
    (f) The contract form shall be printed in 7-point or larger type. 
The statements required by paragraph (a), (f), (h), (l), (r), (s), and 
(x) of Sec. 380.32 shall be printed so as to contrast with the rest of 
the contract by the use of bold-faced type, capital letters, or a type 
size that is at least 50 percent larger than that used for the rest of 
the contract.
    (g) The contract form shall include a space that participants may 
check to indicate that they wish to be furnished details of trip 
cancellation, health, and accident insurance.
    (h) The contract form shall be designed so as to enable participants 
to retain a copy of the general terms and conditions after signing it. 
The specific information supplied by participants (such as choices of 
dates, cities, or other options) need not be retainable.



Sec. 380.32  Specific requirements for operator-participant contracts.

    Contracts between charter operators and charter participants shall 
state:
    (a) The name and complete mailing address of the charter operator;
    (b) The name of the direct air carrier, the dollar amounts of that 
carrier's liability limitations for participant's baggage, the type and 
capacity of the aircraft to be used for the flight, and the conditions 
governing aircraft-equipment substitutions;
    (c) The dates of the outbound and return flights;
    (d) The origin and destination cities of each flight leg;
    (e) The amount and schedule of payments;
    (f) If a depository agreement as provided in Sec. 380.34(b) is 
used: That all checks, money orders, and credit card drafts must be made 
payable to the escrow account at the depository bank (identifying bank) 
\1\ or, when the charter is sold to the participant by a retail travel 
agent, checks and money orders may be made payable to the agent, who 
must in turn make his check payable to the escrow account at the 
depository bank;
---------------------------------------------------------------------------

    \1\ If the credit card merchant account is separate from the 
depository account, it must be used solely as a conduit, i.e., all 
credit card payments toward Public Charter trips must be immediately 
remitted to the depository account in full, without holdback, or 
retention of any portion of the participant's payment. If the depository 
bank is not the credit card merchant bank, the Department must be 
satisfied that there are adequate procedural safeguards for the 
protection of participants' payments.
---------------------------------------------------------------------------

    (g) The tour itinerary, if any, including the name and location of 
the hotels, length of stay at each, and other ground accommodations and 
services that are part of the tour;
    (h) That the charter operator may not cancel the charter less than 
10 days before the scheduled departure date, except for circumstances 
that make it physically impossible to perform the charter tip;
    (i) That if a charter is canceled 10 or more days before the 
scheduled departure date, the operator will notify the participant in 
writing within 7 days after the cancellation, but in any event at least 
10 days before the scheduled departure;
    (j) That is a charter is canceled less than 10 days before departure 
(i.e., for circumstances that make it physically impossible to perform 
the charter trip), the operator will get the message to the participant 
as soon as possible;

[[Page 410]]

    (k) That if the charter is canceled, a refund will be made to the 
participant within 14 days after the cancellation;
    (l) The right to refunds if the participant changes plans is 
limited;
    (m) The right to refunds if the participant changes plans, including
    (1) The right to a full refund, for sales made by credit card, until 
an operator-participant contract is signed; and
    (2) That any participant who wishes to cancel will receive a full 
refund (less any applicable administrative fee, not to exceed $25) upon 
providing a substitute participant to the charter operator or its sales 
agent, or upon being substituted for by a participant found by the 
charter operator;
    (n) The procedure for obtaining the refunds described in paragraph 
(m) of this section, including that they will be made within 14 days 
after the cancellation or substitution;
    (o) The meaning of ``major change'', as set forth in Sec. 
380.33(a);
    (p) That if the charter operator knows of a major change 10 or more 
days before scheduled departure, the operator will notify the 
participant of the change within 7 days after first knowing of it, but 
in any event at least 10 days before scheduled departure;
    (q) That is the operator first knows of a major change less than 10 
days before scheduled departure, the operator will get the message to 
the participant as soon as possible;
    (r) That within 7 days after receiving a pre-departure notification 
of a major change but in no event later than departure, the participant 
may cancel, and that a full refund will be made to the participant 
within 14 days after canceling;
    (s) That upon a post-departure notification of a major change, the 
participant may reject the substituted hotel or the changed date, 
origin, or destination of a flight leg and be sent, within 14 days after 
the return date named in the contract, a refund of the portion of his 
payment allocable to the hotel accommodations or air transportation not 
provided;
    (t) That the participants rights and remedies set forth in the 
contract, including the procedures for major changes, shall be in 
addition to any other rights or remedies available under applicable law, 
although the operator may condition a refund on the participant's waiver 
of additional remedies;
    (u) That trip cancellation, health, and accident insurance is 
available and that the operator will furnish details of the insurance to 
participants who check the space provided for this purpose on the 
contract form;
    (v) The name and address of the surety company or bank issuing the 
security agreement; and that unless the charter participant files a 
claim with the charter operator or, if he is unavailable, with the 
securer, within 60 days after termination of the charter, the securer 
shall be released from all liability under the security agreement to 
that participant. Termination means the date of arrival (or in the case 
of a canceled charter, the intended date or arrival) of the return 
flight. If there is no return flight in a participant's itinerary, 
termination means the date or intended date of departure of the last 
flight in the participant's itinerary;
    (w) For international flights only: That additional restrictions may 
be imposed on the flight by the foreign government involved, and that if 
landing rights are denied by a foreign government the flight will be 
canceled with a full refund to the participant. This statement need not 
be included in the contract if--
    (1) The prospectus includes a certification by the charter operator 
and the direct air carrier that landing rights have been obtained from 
all the foreign governments involved, and
    (2) All the foreign governments involved have adopted country-of-
origin rules for charterworthiness;
    (x) That the charter operator is the principal and is responsible to 
the participants for all services and accommodations offered in 
connection with the charter. However, the contract may expressly provide 
that the charter operator, unless negligent, is not responsible for 
personal injury or property damage caused by any direct air carrier, 
hotel or other supplier of services in connection with the charter.

[[Page 411]]



Sec. 380.33  Major changes in itinerary or price; refunds.

    (a) For the purposes of this section, ``major change'' means any of 
the following:
    (1) A change in the departure or return date shown in the operator-
participant contract, (or, if the contract states alternative dates, the 
date designated to the participant by the charter operator in accordance 
with Sec. 380.33a(b)), unless the change results from a flight delay. 
In any event, however, a date change that the operator knows of more 
than 2 days before the scheduled flight date, and any delay of more than 
48 hours, will be considered a major change.
    (2) A change in the origin or destination city shown in the 
operator-participant contract for any flight leg (or, if the contract 
states alternative cities, the city designated to the participant by the 
operator in accordance with Sec. 380.33a(b)), unless the change affects 
only the order in which cities named in a tour package are visited.
    (3) A substitution of any hotel that is not named in the operator-
participant contract; and
    (4) A price increase to the participant that occurs 10 or more days 
before departure and results in an aggregate price increase of more than 
10 percent.
    (b) The charter operator shall not increase the price to any 
participant less than 10 days before departure.
    (c) The charter operator shall notify all participants of major 
changes, as required by the operator-participant contracts. This 
notification shall include the participants' rights to refunds required 
to be described in the operator-participant contract. The operator 
shall, if applicable, also notify the participants that the acceptance 
of a refund constitutes a waiver of their legal rights.
    (d) Except as otherwise specified, notifications and refunds 
required by this part are considered made at the time they are mailed or 
sent by an equivalent method.
    (e) The charter operator shall make all refunds required to be 
described in the operator-participant contract within the time limits 
set forth in paragraphs (k), (n), (r), and (s) of Sec. 380.32, as 
applicable.



Sec. 380.33a  Operator's option plan.

    (a) For the purposes of this part, an operator's option plan 
contract that states alternative dates for the outbound or return 
flights, or alternative origin or destination cities for any flight leg.
    (b) Operator's option plan contracts shall state, in addition to the 
information required by Sec. 380.32, that the selection of the actual 
dates or cities, as applicable, is at the charter operator's option and 
will not entitle the participant to a refund, and that the operator will 
notify the participant of the actual dates or cities at least 10 days 
before the earliest of any alternative dates for the outbound flight.
    (c) Contract forms for all operator's option plan contracts shall be 
labeled ``OPERATOR'S OPTION PLAN'' in bold-faced capital letters at 
least \1/4\ inch high. The statement required by paragraph (b) of this 
section and the statement of alternative dates (Sec. 380.32(c)) or 
alternative cities (Sec. 380.32(d)), as applicable, shall be printed so 
as to contrast with the rest of the contract, as set forth in Sec. 
380.31(f).
    (d) Any solicitation material that states a price per passenger for 
an operator's option plan contract shall clearly and conspicuously--
    (1) Identify that price as being for the operator's option plan,
    (2) Name all the possible dates or cities, as applicable, and
    (3) State that the selection of the actual dates or cities is at the 
charter operator's option.
    (e) Charter operators and their agents shall not misrepresent to 
prospective participants, orally, in solicitation materials, or 
otherwise, the probability that any particular city or date will be 
selected from among the alternatives named in an operator's option plan 
contract.
    (f) The charter operator shall notify all participants with 
operator's option plan contracts of the actual dates or cities, as 
applicable, as required by contracts.



Sec. 380.34  Security and depository agreements.

    (a) Except as provided in paragraph (b) of this section, the charter 
operator

[[Page 412]]

or foreign charter operator shall furnish a security agreement in an 
amount for not less than the charter price for the air transportation, 
if only air transportation is involved, or, if the charter involves land 
accommodations in addition to air transportation, a security agreement 
in one of the following amounts dependent upon the length of the charter 
or series of charters:
    (1) For a charter or series of charters of 14 days or less, security 
in an amount of not less than the charter price for the air 
transportation to be furnished in connection with such charter or series 
of charters;
    (2) For a charter or series of charters of more than 14 days but 
less than 28 days security in an amount of not less than twice the 
charter price; and
    (3) For a charter or series of charters of 28 days or more, security 
in an amount of not less than three times the charter price: Provided, 
however, That the liability of the securer to any charter participant 
shall not exceed amounts paid by that participant to the charter 
operator with respect to the charter.
    (b) The direct air carrier and the charter operator or foreign 
charter operator may elect, in lieu of furnishing a security agreement 
as provided under paragraph (a) of this section, to comply with the 
requirements of paragraphs (b)(1) and (b)(2) of this section, as 
follows:
    (1) The charter operator shall furnish a security agreement in an 
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 to 
any charter participant shall not exceed the amount paid by the 
participant to the charter operator for that charter.
    (2) The direct air carrier and charter operator or foreign charter 
operator shall enter into an agreement with a designated bank, the terms 
of which shall provide that all payments by charter participants paid to 
charter operators or foreign charter operators and their retail travel 
agents shall be deposited with and maintained by the bank subject to the 
following conditions:
    (i) On sales made to charter participants by charter operators or 
foreign charter operators the participant shall pay by check, money 
order, or credit card draft payable to the bank; \2\ on sales made to 
charter participants by retail travel agents, the retail travel agent 
may deduct his commission and remit the balance to the designated bank 
by check, money order, or electronic transfer: Provided, That the travel 
agent agrees in writing with the charter operator or foreign charter 
operator that if the charter is canceled the travel agent shall remit to 
the bank the full amount of the commission previously deducted or 
received within 10 days after receipt of notification of cancellation of 
the charter; except for the credit card company's usual commission (not 
to exceed 3 percent), the charter operator shall not permit any portion 
of a charter participant's payments by credit cared to be ``held back'' 
by the credit card merchant bank; \3\
---------------------------------------------------------------------------

    \2\ See also n.1, supra.
    \3\ ``Holdback'' is an amount in excess of usual commissions that a 
credit card merchant bank sometimes retains to cover potential charge-
backs or other charges.
---------------------------------------------------------------------------

    (ii) The bank shall pay the direct air carrier the charter price for 
the transportation not earlier than 60 days (including day of departure) 
prior to the scheduled day of departure of the originating or returning 
flight, upon certification of the departure date by the air carrier: 
Provided, That, in the case of a round trip charter contract to be 
performed by one carrier, the total round trip charter price shall be 
paid to the carrier not earlier than 60 days prior to the scheduled day 
of departure of the originating flight;
    (iii) The bank shall reimburse the charter operator or foreign 
charter operator for refunds made by the latter to the charter 
participant upon written notification from the charter operator or 
foreign charter operator;
    (iv) If the charter operator, foreign charter operator or the direct 
air carrier notifies the bank that a charter has been canceled, the bank 
shall make applicable refunds directly to the charter participants;
    (v) After the charter price has been paid in full to the direct air 
carrier, the

[[Page 413]]

bank shall pay funds from the account directly to the hotels, 
sightseeing enterprises, or other persons or companies furnishing ground 
accommodations and services, if any, in connection with the charter or 
series of charters upon presentation to the bank of vendors' bills and 
upon certification by the charter operator or foreign charter operator 
of the amounts payable for such ground accommodations and services and 
the person or companies to whom payment is to be made: Provided, 
however, That the total amounts paid by the bank pursuant to paragraphs 
(b)(2) (ii) and (v) of this section shall not exceed either the total 
cost of the air transportation, or 80 percent of the total deposits 
received by the bank less any refunds made to charter participants 
pursuant to paragraphs (b)(2) (ii) and (iv) of this section, whichever 
is greater;
    (vi) As used in this section, the term ``bank'' means a bank insured 
by the Federal Deposit Insurance Corporation;
    (vii) The bank shall maintain a separate accounting for each charter 
group;
    (viii) Notwithstanding any other provisions of this section, the 
amount of total cash deposits required to be maintained in the 
depository account of the bank may be reduced by one or both of the 
following: The amount of the security agreement in the form prescribed 
in this section in excess of the minimum coverage required by paragraph 
(b)(1) of this section; an escrow with the designated bank of Federal, 
State, or municipal bonds or other securities, consisting of 
certificates of deposit issued by banks having a stated policy of 
redeeming such certificates before maturity at the request of the holder 
(subject only to such interest penalties or other conditions as may be 
required by law), or negotiable securities which are publicly traded on 
a securities exchange, all such securities to be made payable to the 
escrow account: Provided, That such other securities shall be 
substituted in an amount no greater than 80 percent of the total market 
value of the escrow account at the time of such substitution: And 
provided, further, That should the market value of such other securities 
subsequently decrease, from time to time, then additional cash or 
securities qualified for investment hereunder shall promptly be added to 
the escrow account, in an amount equal to the amount of such decreased 
value; and
    (ix) Except as provided in paragraph (b)(2)(i), (iii), (iv), (v), 
and (viii) of this section, the bank shall not pay out any funds from 
the account prior to 2 banking days after completion of each charter, 
when the balance in the account shall be paid the charter operator or 
foreign charter operator, upon certification of the completion date by 
the direct air carrier: Provided, however, That if the Charter involves 
air transportation only and the bank has paid the direct air carrier(s) 
the charter price for the originating flight, and the returning flight 
if any, and has paid all refunds due to participants, as provided in 
paragraph (b)(2)(ii) and (iii), respectively, of this section, then the 
bank may pay the balance in the account to the charter operator upon 
certification by the direct air carrier performing the originating 
flight that such flight has in fact departed.
    (c)(1) The security agreement required under paragraphs (a) and (b) 
of this section shall insure the financial responsibility of the charter 
operator or foreign charter operator and the supplying of the 
transportation and all other accommodations, services, and facilities in 
accordance with the contract between the charter operator or foreign 
charter operator and the charter participants.
    (2) The security agreement may be either:
    (i) A surety bond in the form set forth as appendix A to this part;
    (ii) A surety trust agreement in the form set forth as appendix B to 
this part; or
    (iii) An arrangement with a bank (for instance, a standby letter of 
credit) that provides protection of charter participants' funds 
equivalent to or greater than that provided by the Bond in appendix A. 
An arrangement that furnishes a lesser degree of protection than would 
be provided under the bond shall be invalid to that extent, and instead 
the bank, the charter operator or foreign charter operator, and the 
charter participants shall have the same rights and liabilities as 
provided under

[[Page 414]]

a bond in the form of appendix A. If the arrangement does not give as 
much protection as a bond against the risk of the charter operator's 
bankruptcy, the bank shall be liable in the event of bankruptcy to the 
same extent as if it had entered into a bond.
    (3) Any agreement under paragraph (c)(2)(iii) of this section shall 
include a statement that, in the event that the other provisions of the 
agreement do not provide protection to charter participants comparable 
to that provided under a bond in the form of appendix A, the bank shall 
assume, for the benefit of the charter participants, all the liabilities 
it would have if it entered into the bond.
    (4) The security agreement shall be effective on or before the date 
the charter prospectus is filed with the Department.
    (5) The security agreement shall be specifically identified by the 
issuing securer with a numbering system so that the Department can 
identify the security agreement with the specific charter or charters to 
which it relates. These data may be set forth in an addendum attached to 
the security agreement, which addendum must be signed by the charter 
operator or foreign charter operator and the securer.
    (6) When security is provided by a surety bond, such bond shall be 
issued by a bonding or surety company that 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 charter 
originates. For purposes of this section the term ``State'' includes any 
territory or possession of the United States, or the District of 
Columbia.
    (7) When security is provided by a security agreement other than a 
bond, the agreement shall be issued by a national bank complying with 
the provisions of 12 CFR 7.7010(a), or by a State bank complying with 
applicable State laws that give authority to issue such agreements, and 
all such banks must be insured by the Federal Deposit Insurance 
Corporation.
    (d) The security agreement required by this section shall provide 
that unless the charter participant files a claim with the charter 
operator or foreign charter operator, or, if it is unavailable, with the 
securer, within 60 days after termination of the charter, the securer 
shall be released from all liability under the security agreement to 
such charter participant. Terminations means the date of arrival (or in 
the case of a canceled charter, the intended date of arrival) of the 
return flight. If there is no return flight in a participant's 
itinerary, termination means the date or intended date of departure of 
the last flight in the participant's itinerary.



Sec. 380.34a  Substitution of direct air carrier's security or depository agreement.

    (a) A direct air carrier may substitute its own security agreement 
and/or depository arrangements, as specified in this section, for those 
required of the charter operator under Sec. 380.34, but only for 
charter trips in which all the air transportation is provided by one 
direct air carrier. Charter operators are relieved from Sec. 380.34 to 
the extent that the direct carrier substitutes its own arrangements.
    (b) The direct air carrier may substitute its security agreement for 
all of the arrangements required of the charter operator under Sec. 
380.34 (a) or (b). Alternatively, it may substitute its depository 
agreement for the depository agreement required of the charter operator 
under Sec. 380.34(b)(2). If the direct carrier substitutes its 
depository agreement, it may also obtain and substitute a security 
agreement for the one otherwise required of the charter operator under 
Sec. 380.34(b)(1). If the direct carrier substitutes its depository 
agreement only, the charter operator must supply the security agreement 
required under Sec. 380.34(b)(1).
    (c) If the direct carrier substitutes a security agreement for all 
the charter operator's requirements under Sec. 380.34, the charter 
operator shall include in the charter prospectus, in place of the 
information in Sec. 380.28(a)(2) regarding the charter operator's 
security agreement:
    (1) A statement by the direct air carrier on OST Form 4535 that it 
will take responsibility for all charter participant payments (including 
those for

[[Page 415]]

ground accommodations and services) and for the fulfillment of all the 
charter operator's contractual and regulatory obligations to the charter 
participants.
    (2) A statement from the direct air carrier and its securer (under 
Sec. 212.12 of this chapter), OST Form 4533, that they have entered 
into a security agreement assuring the direct air carrier's 
responsibilities to charter participants under this section 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), and that the securer has received a 
copy of the proposed flight schedule identified by the schedule number 
assigned by the charter operator under this part.
    (d) A substitute depository agreement under this section shall be 
signed by the direct air carrier, the charter operator, and the 
depository bank, and shall provide, in addition to existing requirements 
under Sec. 212.8 of this chapter, that:
    (1) Payments by or on behalf of charter participants shall be 
allocated to the flight accounts matching the participant's itinerary in 
the following way: Each account shall have allocated to it the charter 
cost of the participant's air transportation on that flight. The portion 
of each payment not intended for air transportation services shall be 
allocated to the account for the return flight in the participant's 
itinerary. If there is only one flight in the itinerary, the entire 
payment shall be allocated to that account.
    (2) The bank shall pay funds from a flight account directly to the 
hotels, sightseeing enterprises, or other persons or companies 
furnishing ground accommodations and services, if any, in connection 
with the charter flight, upon presentation to the bank of vendor's bills 
and upon certification by the person who contracted for the ground 
accommodations or services of the amounts payable and the persons or 
companies to whom payment is to be made, except that no disbursement 
shall be made that would reduce the balance in the account below the 
charter cost of the flight.
    (3) On sales made to participants by a person other than a retail 
travel agent, the participant shall pay by check, money order, or credit 
card draft payable to the bank. On sales made to participants by a 
retail travel agent, payments shall be made in the same manner unless 
the agent deducts its commission and remits the balance to the bank by 
check, money order, or electronic transfer. The agent may deduct its 
commission only if it agrees in writing with its principal (the charter 
operator or direct air carrier, as applicable) that, if the charter is 
canceled, the agent shall remit to the bank the full amount of the 
commission previously deducted or received within 10 days after receipt 
of notification of the cancellation. The depository bank shall pay 
refunds directly to participants according to the terms of the operator-
participant contract and the terms of this part.
    (e) If the direct carrier substitutes a security agreement in 
addition to substituting a depository agreement, the charter prospectus 
information must include all the information required by paragraphs (c) 
and (d) of this section, except for the amount of the security 
agreement. That agreement shall be in an amount of at least $10,000 
times the number of flights, except that the amount need not be more 
than $200,000.
    (f) A copy of the depository agreement under paragraph (d) of this 
section shall be filed with the Department, and it shall not be 
effective until approved by the Department.
    (g) A copy of the security agreement under paragraph (c) or 
paragraph (e) of this section shall be filed with the Department. It 
shall insure the financial responsibility of the direct air carrier for 
supplying the transportation and all other accommodations, services, and 
facilities in accordance with the contracts between the charter operator 
and the charter participants. Such security agreement shall meet all the 
other requirements of Sec. 380.34 (c) and (d).



Sec. 380.35  Disbursements from depository account.

    No charter operator or direct air carrier shall cause its agents or 
the depository bank to make disbursements or

[[Page 416]]

payments from deposits except in accordance with the provisions of this 
part.



Sec. 380.36  Record retention.

    Every charter operator conducting a charter pursuant to this part 
shall comply with the applicable record-retention provisions of part 249 
of this chapter.



        Subpart D_Requirements Applicable to Direct Air Carriers



Sec. 380.40  Charter not to be performed unless in compliance with this part 380.

    (a) For all Public Charters other than foreign-originating charters 
organized by foreign charter operators: A direct air carrier shall not 
perform air transportation in connection with such a charter unless it 
has made a reasonable effort to verify that all provisions of this part 
have been complied with and that the charter operator's authority under 
this part has not been suspended by the Department.
    (b) For foreign-originating Public Charters organized by foreign 
charter operators: A direct air carrier shall not perform air 
transportation in connection with such a charter unless--
    (1) The charter is conducted in accordance with subpart B of this 
part and
    (2) The charter operator conforms to all requirements of this part 
that are applicable to charter operators within the Department's 
jurisdiction, other than Sec. Sec. 380.25, 380.28, 380.30 through 
380.36, and 380.50.



Sec. Sec. 380.41-380.42  [Reserved]



Sec. 380.43  Cancellations by direct air carriers.

    The direct air carrier shall not cancel any charter under this part 
less than 10 days before the scheduled departure date, except for 
circumstances that make it physically impossible to perform the charter 
trip.



Sec. 380.45  Suspension of exemption authority.

    The Department reserves the power to suspend the exemption authority 
of any air carrier, without hearing, if it finds that such action is 
necessary in order to protect the rights of the traveling public.



Sec. 380.46  Charter trip reporting.

    The direct air carrier shall promptly notify the Office of Aviation 
Analysis, Special Authorities Division, regarding any charters covered 
by a prospectus filed under Sec. 380.28 that are later canceled.



           Subpart E_Registration of Foreign Charter Operators



Sec. 380.60  Purpose.

    This subpart establishes registration procedures for foreign charter 
operators intending to engage in the formation of groups for 
transportation on Public Charters that originate in the United States.



Sec. 380.61  Operation by foreign charter operators.

    (a) Each foreign charter operator shall be registered under this 
subpart and file a prospectus under Sec. 380.25 before organizing 
groups for transportation on Public Charters that originate in the 
United States.
    (b) Each foreign charter registered under this subpart shall comply 
with the other provisions of this part directed to charter operators.



Sec. 380.62  Registration applications.

    (a) To be registered under this subpart, a foreign charter operator 
shall file two copies of an application for registration with the Office 
of Aviation Analysis, Special Authorities Division. The Department will 
list the names and nationalities of all persons applying for 
registration in its Weekly Summary of Filings.
    (b) The application shall be made on OST Form 4530, which can be 
obtained from the Office of Aviation Analysis, Special Authorities 
Division.
    (c) The applicant shall clearly indicate in its application for 
registration whether it requests authority to engage in foreign and/or 
interstate air transportation.

[[Page 417]]



Sec. 380.63  Objections to registration applications.

    Any person objecting to the registration application of a foreign 
charter operator or to a proposed change in the name or ownership of 
that operator shall file an objection with the Office of Aviation 
Analysis, Special Authorities Division, within 28 days after the 
Department receives the properly completed registration application.



Sec. 380.64  Department action on a registration application.

    (a) After a registration is received, one of the following actions 
will be taken.
    (1) The application will be approved by the stamping of the 
effective date of registration on OST Form 4530 and returning the 
duplicate copy of the form to the operator;
    (2) Additional information will be requested for the applicant;
    (3) The applicant will be notified that its application will require 
further analysis or procedures, or is being referred to the Department 
for formal action;
    (4)The registration application will be rejected if it does not 
comply with the filing requirements of this subpart;
    (5) The application will be approved subject to such terms, 
conditions, or limitations as may be required by the public interest; or
    (6) The registration application will be rejected for reasons 
relating to the failure of effective reciprocity or if the Department 
finds that it would be in the public interest to do so.
    (b) One of the actions described in paragraph (a) of this section 
will normally be taken within 60 days after the registration application 
is received. The Department will also consider requests for faster 
action that include a full explanation of the need for expedited action.



Sec. 380.65  Notification of change of operations or ownership.

    (a) Not later than 30 days before any change in its name or address 
or before a temporary or permanent cessation of operations, each foreign 
charter operator registered under this subpart shall notify the Office 
of Aviation Analysis, Special Authorities Division, of the change by 
resubmitting OST Form 4530.
    (b) A foreign charter operator registered under this subpart shall 
apply for an amendment to that registration not later than 30 days after 
either of the following events:
    (1) A person listed on its existing registration as owning or 
holding beneficial interest in at least 10 percent of the operator or of 
the operator's stock reduces its holding to below 10 percent;
    (2) A person not listed on the existing registration as owning or 
holding beneficial interest in at least 10 percent of the operator or of 
the operator's stock becomes an owner or holder of 10 percent or more of 
the company or of its stock.
    (c) An application for an amendment shall be made by resubmitting 
OST Form 4530. The existing registration shall remain valid pending 
Department action on the amendment.



Sec. 380.66  Cancellation or conditioning of the registration.

    The registration of a foreign charter operator may be canceled or 
subjected to additional terms, conditions, or limitations if any of the 
following occur:
    (a) The operator files a written notice with the Department that it 
is discontinuing its charter operations;
    (b) A substantial ownership interest is acquired by persons who are 
not citizens of the same country as the registrant; or
    (c) The Department finds, after notice and an opportunity for 
responses, that it is in the public interest to do so. In making this 
finding, the Department will consider whether effective reciprocity 
exists between the United States and the government of the foreign 
charter operator.



Sec. 380.67  Waiver of sovereign immunity.

    By accepting an approved registration form under this subpart, an 
operator waives any right it may have to assert any defense of sovereign 
immunity from suit in any proceeding against it, in any court or other 
tribunal of the United States, that is based upon a claim arising out of 
operations by the operator under this part.

[[Page 418]]



Sec. Appendix A to Part 380--Public Charter Operator's Surety Bond Under 

Part 380 of the Special Regulations of the Department of Transportation 
                            (14 CFR Part 380)

    Know all men by these presents, that we -------------------- (name 
of charter operator) of --------------------, (city) ------------------
-- (state or country) as Principal (hereinafter called Principal), and--
------------------ (name of surety) a corporation created and existing 
under the laws of the State of -------------------- (State) as Surety 
(hereinafter called Surety) are held and firmly bound unto the United 
States of America in the sum of $-------------------- (see Sec. 
380.34(f) of Part 380) 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 Principal intends to become a Public Charter operator 
pursuant to the provisions of part 380 of the Department's Special 
Regulations and other rules and regulations of the Department relating 
to insurance or other security for the protection of charter 
participants, and has elected to file with the Department of 
Transportation such a bond as will insure financial responsibility with 
respect to all moneys received from charter participants for services in 
connection with a Public Charter to be operated subject to Part 380 of 
the Department's Special Regulations in accordance with contracts, 
agreements, or arrangements therefor, and
    Whereas this bond is written to assure compliance by Principal as an 
authorized charter operator with Part 380 of the Department's Special 
Regulations, and other rules and regulations of the Department relating 
to insurance and other security for the protection of charter 
participants, and shall inure to the benefit of any and all charter 
participants to whom Principal may be held legally liable for any 
damages herein described.
    Now, therefor, the condition of this obligation is such that if 
Principal shall pay or cause to be paid to charter participants any sum 
or sums for which Principal may be held legally liable by reason of 
Principal's failure faithfully to perform, fulfill and carry out all 
contracts, agreements, and arrangements made by Principal while this 
bond is in effect with respect to the receipt of moneys from charter 
participants, and proper disbursement thereof pursuant to and in 
accordance with the provisions of Part 380 of the Department's Special 
Regulations, then this obligation shall be void, otherwise to remain in 
full force and effect.
    The liability of Surety with respect to any charter participant 
shall not exceed the charter price paid by or on behalf of such 
participant.
    The liability of Surety shall not be discharged by any payment or 
succession of payments hereunder, unless and until such payment or 
payments shall amount in the aggregate to the penalty of the bond, but 
in no event shall Surety's obligation hereunder exceed the amount of 
said penalty.
    Surety agrees to furnish written notice to the Office of Aviation 
Analysis, Department of Transportation, forthwith of all suits or claims 
filed and judgments rendered, and payments made by Surety under this 
bond.
    The bond shall cover the following charters:\1\
---------------------------------------------------------------------------

    \1\ These data may be supplied in addendum attached to the bond.

---------------------------------------------------------------------------
Surety company's bond No._______________________________________________

Date of flight departure________________________________________________

Place of flight departure_______________________________________________

    This bond is effective on the ------ day of --------, 12:01 a.m., 
standard time at the address of Principal as stated herein and as 
hereinafter provided. Principal or Surety may at any time terminate this 
bond by written notice to: ``Special Authorities Division (P-57), Office 
of Aviation Analysis, U.S. Department of Transportation, Washington, DC 
20590,'' such termination to become effective thirty (30) days after the 
actual receipt of said notice by the Department. Surety shall not be 
liable hereunder for the payment of any damages hereinbefore described 
which arise as a result of any contracts, agreements, undertakings, or 
arrangements for the supplying of transportation and other services made 
by Principal after the termination of this bond as herein provided, but 
such termination shall not affect the liability of the bond hereunder 
for the payment of any damages arising as a result of contracts, 
agreements, or arrangements for the supplying of transportation and 
other services made by Principal prior to the date that such termination 
becomes effective. Liability of Surety under this bond shall in all 
events be limited only to a charter participant or charter participants 
who shall within sixty (60) days after the termination of the particular 
charter described herein give written notice of claim to the charter 
operator or, if it is unavailable, to Surety, and all liability on this 
bond shall automatically terminate sixty (60) days after the termination 
date of each particular charter covered by this bond except for claims 
made in the time provided herein.
    In witness whereof, the said Principal and Surety have executed this 
instrument on the ------ day of ----------------, --------.

[[Page 419]]

                                Principal

Name____________________________________________________________________

By: Signature and title

                                 Surety

Name____________________________________________________________________

By: Signature and title_________________________________________________
    Only corporations may qualify to act as surety and they must meet 
the requirements set forth in Sec. 380.34(c)(6) of Part 380.



Sec. Appendix B to Part 380--Public Charter Surety Trust Agreement

    This Trust Agreement is entered into between -------------------- 
(charter operator) incorporated under the law of -------------------- 
with the principal place of business being -------------------- 
(hereinafter referred to as the Operator), and -------------------- 
(Bank) with its principal place of business being -------------------- 
(hereinafter referred to as the ``Trustee''), for the purpose of 
creating a trust to become effective as of the ------ day of ----------
------, --------, which trust shall continue until terminated as 
hereinafter provided.
    The Operator intends to become a Public Charter operator pursuant to 
the provisions of Part 380 of the Department's Special Regulations and 
other rules and regulations of the Department relating to insurance or 
other security for the protection of charter participants, and has 
elected to file with the Department of Transportation such a Surety 
Trust Agreements as will insure financial responsibility with respect to 
all moneys received from charter participants for services in connection 
with a Public Charter to be operated subject to Part 380 of the 
Department's Special Regulations in accordance with contracts, 
agreements, or arrangements therefor.
    This Surety Trust Agreement is written to assure compliance by the 
Operator with the provisions of Part 380 of the Department's Special 
Regulations and other rules and regulations of the Department relating 
to insurance or other security for the protection of charter 
participants.
    It shall inure to the benefit of any and all charter participants to 
whom the Operator may be held legally liable for any of the damages 
herein described.
    It is mutually agreed by and between the operator and Trustee that 
the Trustee shall manage the corpus of the trust and carry out the 
purposes of the trust as hereinafter set forth during the term of the 
trust for the benefit of charter participants (who are hereinafter 
referred to as ``Beneficiaries.'')
    Beneficiaries of the trust created by this Agreement shall be 
limited to those charter participants who meet the following 
requirements:
    1. Those for whom Operator or Operator's agent has received payment 
toward participation in one or more charters operated by or proposed to 
be operated by Operator.
    2. Who have legal claim or claims for money damages against the 
Operator by reason of the Operators' failure faithfully to perform, 
fulfill, and carry out all contracts, agreements, and arrangements made 
by the Operator while this trust is in respect to the receipt of moneys 
and proper disbursement thereof pursuant to Part 380 of the Department's 
Special Regulations; and
    3. Who have given notice of such claim or claims in accordance with 
this Trust Agreement, but who have not been paid by the Operator.
    The Operator shall convey to the Trustee legal title to the trust 
corpus, which has a value of $---------------- by the time of the 
execution of this Agreement.
    Trustee shall assume the responsibilities of the Trustee over the 
said trust corpus and shall distribute from the trust corpus to any and 
all Beneficiaries to whom the Operator, in its capacity as a Public 
Charter operator, may be held legally liable by reason of the Operator's 
failure faithfully to perform, fulfill, and carry out all contracts, 
agreements, and arrangements made by the Operator, while this trust is 
in effect with respect to the receipt of moneys and proper disbursement 
thereof pursuant to Part 380 of the Department's Special Regulations in 
connection with said charters, such damages as will discharge such 
liability while this trust is in effect; Provided, however, That the 
liability of the trust to any Beneficiary shall not exceed the charter 
price (as defined in Part 380 of the Department's Special Regulations) 
paid by or on behalf on any such Beneficiary; Provided, further, That 
there shall be on obligation of the trust to any Beneficiary if the 
Operator shall pay or cause to be paid to any Beneficiary any sum or 
sums for which the Operator may be held legally liable by reasons of its 
failure faithfully to perform, fulfill, and carry out all contracts, 
agreements, and arrangements made by the Operator in its capacity as 
charter operator while this trust is in effect with respect to the 
receipt of moneys and proper disbursement thereof pursuant to Part 380 
of the Department's Special Regulations; And provided still further, 
That the liability of the trust as administered by the Trustee shall not 
be discharged by any payment or succession of payments hereunder, unless 
and until such payment or payments, shall amount in the aggregate to $--
--------------. Notwithstanding anything herein to the contrary, in no 
event shall the obligation of the trust or the Trustee hereunder exceed 
the aggregate amount of $----------------.
    The Trustee agrees to furnish written notice to the Office of 
Aviation Analysis, Department of Transportation, forthwith of all

[[Page 420]]

suits of claims filed and judgments rendered (of which it has 
knowledge), and of payments made by the Trustee under the terms of this 
trust.
    The Trust shall not be liable hereunder for the payment of any 
damages hereinbefore described which arise as a result of any contracts, 
agreements, undertakings, or arrangements for the supplying of 
transportation and other services made by the Operator after the 
termination of this trust as herein provided, but such termination shall 
not affect the liability of the trust hereunder for the payment of any 
damages arising as a result of contracts, agreements, or arrangements 
for the supplying of transportation and other services made by the 
Operator prior to the date that such termination becomes effective.
    Liability of the trust shall in all events be limited only to a 
Beneficiary or Beneficiaries who shall within sixty days after the 
termination of the particular charter give written notice of claim to 
the Operator or, if it is unavailable, to the Trustee, and all liability 
of the trust with respect to participants in a charter shall 
automatically terminate sixty days after the termination date of each 
particular charter covered by this trust except for claims filed in the 
time provided herein. Sixty-one days after the completion of the last 
charter covered by this Trust Agreement, the trust shall automatically 
terminate except for claims of any Beneficiary or Beneficiaries 
previously made in accordance with this Agreement still pending on and 
after said sixty-first day. To the extent of such claims, the trust 
shall continue until those claims are discharged, dismissed, dropped, or 
otherwise terminated; the remainder of the trust corpus shall be 
conveyed forthwith to the Operator. After all remaining claims which are 
covered by this Trust Agreement pending on and after the said sixty-
first day have been discharged, dismissed, dropped, or otherwise 
terminated, the Trustee shall convey forthwith the remainder of the 
trust corpus, if any, to the Operator.
    Either the Operator or Trustee may at any time terminate this trust 
by written notice to: ``Special Authorities Division (P-57), Office of 
Aviation Analysis, U.S. Department of Transportation, Washington, DC 
20590,'' such termination to become effective thirty days after the 
actual receipt of said notice by the Department.
    In the event of any controversy or claim arising hereunder, the 
Trustee shall not be required to determine same or take any other action 
with respect thereto, but may await the settlement of such controversy 
or claim by final appropriate legal proceedings, and in such event shall 
not be liable for interest or damages of any kind.
    Any Successor to the Trustee by merger, consolidation, or otherwise, 
shall succeed to this trusteeship and shall have the powers and 
obligations set forth in this Agreement.
    The trust created under this Agreement shall be operated and 
administered under the laws of the State of ----------------.
    IN WITNESS WHEREOF, the Operator and Trustee have executed this 
instrument on the ------ day of ----------------, --------.

                                 Trustee

Name____________________________________________________________________
By: Signature and title

                            Charter Operator

Name____________________________________________________________________
By: Signature and title



PART 381_SPECIAL EVENT TOURS--Table of Contents




Sec.
381.1 Purpose.
381.3 Applicability.
381.5 Definition.
381.7 Advertising.
381.9 Sales.
381.11 Refunds.
381.13 Price increases.

    Authority: 49 U.S.C. 40113(a) and 41712.

    Source: Docket No. 49385, 59 FR 61514, Nov. 30, 1994, unless 
otherwise noted.



Sec. 381.1  Purpose.

    The purpose of this part is ensure that air travelers who have 
purchased tours to special events will receive the promised admission to 
the event. This part expands the ``Super Bowl rule'' to other events.



Sec. 381.3  Applicability.

    This part applies to Special Event Tours that are in interstate air 
transportation, or in foreign air transportation originating at a point 
in the United States. This part applies to U.S. and foreign operators of 
Special Event Tours, whether they be air carriers or ticket agents. This 
part applies to scheduled, charter, and other air transportation.



Sec. 381.5  Definition.

    Special Event Tour means a tour that is organized for the purpose of 
attending a sporting, social, religious, educational, cultural, 
political or other event of a special nature and limited duration, which 
exists for reasons apart from the tour itself, and which is represented 
by the operator of the tour

[[Page 421]]

as including admission to that event. Examples of such events include, 
but are not limited to, college and professional sporting events, the 
Olympics, concerts, the Passion Play in Oberammergau, etc.



Sec. 381.7  Advertising.

    No operator of a Special Event Tour or agent of such an operator 
shall conduct, or cause or allow to be conducted, any advertising, 
solicitation or other promotion for a Special Event Tour unless:
    (a) The operator is in physical possession of enough tickets for 
admission to the event to provide such tickets for a substantial number 
of seats on the tour; or
    (b) The operator has entered into a written contract with an 
organization that is the distributor of such tickets or an organization 
that receives such tickets directly from the distributor (e.g., a bowl 
committee; football conference, league or team; concert promoter or 
arena; etc.), the terms of which provide for that organization to 
furnish the operator enough admission tickets to provide such tickets 
for a substantial number of seats on the tour; or
    (c) The operator has entered into a written contract with another 
person or organization that has a written contract or series of written 
contracts with the distributor of such tickets or with an organization 
that receives such tickets directly from the distributor, the terms of 
which provide for that organization (the organization with which the 
operator has contracted) to furnish the operator enough admission 
tickets to provide such tickets for a substantial number of seats on the 
tour.



Sec. 381.9  Sales.

    (a) Except as provided in paragraph (b) of this section:
    (1) No operator of a Special Event Tour shall accept money for a 
seat on a Special Event Tour, or authorize an agent to accept such 
money, unless the operator has physical possession of, or written 
contracts (in the manner described in Sec. 381.7) for, a ticket for 
admission to the event for that individual. To the extent that the 
operator receives an unsolicited booking for which the operator does not 
have physical possession of or written contracts for a ticket for 
admission to the event, any payment accompanying that booking must be 
returned within 3 business days.
    (2) Upon acceptance of the money for a sale, the operator must 
reserve one event ticket for that individual. An operator may not sell 
more seats on the tour than it has event tickets in hand or under 
contract. (An operator need not continue to reserve an event ticket for 
an individual who withdraws from the tour by providing notice to the 
operator or by being notified by the operator that the individual's 
participation has been canceled due to failure to remit a required 
installment payment.)
    (b) An operator of a Special Event Tour may accept a booking and 
payment from an individual for whom the operator does not have an event 
ticket in hand or under contract if that individual agrees in writing 
that he or she understands that no event ticket has been reserved for 
him or her. This agreement shall specify whether the person has agreed 
to participate in the tour without an event ticket and/or the operator 
has agreed to attempt to acquire an event ticket for this person. If the 
two parties agree that the operator will attempt to acquire an event 
ticket, the agreement shall specify any penalties that will apply if the 
individual later cancels because an event ticket did not become 
available. If the operator notifies this person that an event ticket has 
become available, that person shall enjoy all the other protections of 
this part from that time.



Sec. 381.11  Refunds.

    If promised admission to the primary event for which a Special Event 
Tour was organized is not furnished by the tour operator, at the tour 
price agreed to before departure (including any increases that the 
participant has accepted pursuant to Sec. 381.13(a)), the operator must 
provide each tour participant affected in this way a refund of the total 
tour price. This refund is to be provided within 14 calendar days after 
the scheduled return date of the tour.

[[Page 422]]



Sec. 381.13  Price increases.

    (a) Should the tour operator increase a participant's tour price by 
more than 10 percent (aggregate of all increases to that participant), 
that participant shall have the option of canceling his or her 
participation in the tour and receiving a full refund within 14 days 
after the cancellation.
    (b) The tour operator shall not increase the tour price to any 
participant less than ten days before departure.



PART 382_NONDISCRIMINATION ON THE BASIS OF DISABILITY IN AIR TRAVEL--Table of Contents




                      Subpart A_General Provisions

Sec.
382.1 Purpose.
382.3 Applicability.
382.5 Definitions.
382.7 General prohibition of discrimination.
382.9 Assurances from contractors.
382.11-382.19 [Reserved]

              Subpart B_Requirements Concerning Facilities

382.21 Aircraft accessibility.
382.23 Airport facilities.
382.25-382.29 [Reserved]

                   Subpart C_Requirements for Services

382.31 Refusal of transportation.
382.33 Advance notice requirements.
382.35 Attendants.
382.37 Seat assignments.
382.38 Seating accommodations.
382.39 Provision of services and equipment.
382.40 Boarding assistance for small aircraft.
382.40a Boarding assistance for large aircraft.
382.41 Stowage of personal equipment.
382.43 Treatment of mobility aids and assistive devices.
382.45 Passenger information.
382.47 Accommodations for persons with hearing impairments.
382.49 Security screening of passengers.
382.51 Communicable diseases.
382.53 Medical certificates.
382.55 Miscellaneous provisions.
382.57 Charges for accommodations prohibited.
382.59 [Reserved]

                   Subpart D_Administrative Provisions

382.61 Training.
382.63 Carrier programs.
382.65 Compliance procedures.
382.70 Disability-related complaints received by carriers.

Appendix A to Part 382--Disability Complaint Reporting Form

    Authority: 49 U.S.C. 41702, 47105, and 41712.

    Source: 55 FR 8046, Mar. 6, 1990, unless otherwise noted:

    Editorial Note: Nomenclature changes to part 382 appear at 61 FR 
56422, Nov. 1, 1996, and 66 FR 22115, May 3, 2001.



                      Subpart A_General Provisions



Sec. 382.1  Purpose.

    The purpose of this part is to implement the Air Carrier Access Act 
of 1986 (49 U.S.C. 1374(c)), which provides that no air carrier may 
discriminate against any otherwise qualified individual with a 
disability, by reason of such disability, in the provision of air 
transportation.



Sec. 382.3  Applicability.

    (a) Except as provided in this section, this part applies to all air 
carriers providing air transportation.
    (b) Sections 382.21-382.63 do not apply to indirect air carriers.
    (c) Except for Sec. 382.70, this part does not apply to foreign air 
carriers or to airport facilities outside the United States, its 
territories, possessions, and commonwealths.
    (d) Nothing in this part shall authorize or require a carrier to 
fail to comply with any applicable FAA safety regulation.
    (e) The compliance date for the following provisions of this part is 
June 4, 1990:
Sec. 382.7 (b)
Sec. 382.21(c)
Sec. 382.31(e)
Sec. 382.33(f)
Sec. 382.35 (d), (e)
Sec. 382.37 (b), (c)
Sec. 382.39 (a) (second sentence of introductory language); (a)(1) and 
(a)(2), with respect to acquisition of equipment; (a)(3); (b)(3); (b)(4)
Sec. 382.41 (d), (e)(2), (f)
Sec. 382.45 (a), (c)
Sec. 382.47(a)
Sec. 382.49 (b), (c)
Sec. 382.65 (a), (b)(2).
    (f) The compliance date for the following provisions of this part is 
August 5, 1990:

[[Page 423]]

Sec. 382.9
Sec. 382.23(e)
Sec. 382.33(d)
Sec. 382.51
Sec. 382.53(c).
    (g) The compliance date for the following provisions for this part 
is October 5, 1990:
Sec. 382.35 (b)(2), (b)(3)
Sec. 382.41(g), with respect to the acceptance and stowage of batteries 
requiring hazardous materials packaging, for carriers which, as of March 
6, 1990, had a policy of carrying no hazardous materials.

[55 FR 8046, Mar.6, 1990, as amended at 55 FR 12341, Apr. 3, 1990; 55 FR 
23544, June 11, 1990; 68 FR 40494, July 8, 2003]



Sec. 382.5  Definitions.

    As used in this part--
    Air Carrier or carrier means any citizen of the United States who 
undertakes, whether directly or indirectly or by a lease or any other 
arrangement, to engage in air transportation.
    Air carrier airport means a public, commercial service airport which 
emplanes annually 2,500 or more passengers and receives scheduled air 
service.
    Air transportation means interstate, overseas, or foreign air 
transportation, or the transportation of mail by aircraft, as defined in 
the Federal Aviation Act.
    Department or DOT means the United States Department of 
Transportation.
    FAA means the Federal Aviation Administration, an operating 
administration of the Department.
    Facility means all or any portion of aircraft, buildings, 
structures, equipment, roads, walks, parking lots, and any other real or 
personal property, normally used by passengers or prospective passengers 
visiting or using the airport, to the extent the carrier exercises 
control over the selection, design, construction, or alteration of the 
property.
    Individual with a disability means any individual who has a physical 
or mental impairment that, on a permanent or temporary basis, 
substantially limits one or more major life activities, has a record of 
such an impairment, or is regarded as having such an impairment. As used 
in this definition, the phrase:
    (a) Physical or mental impairment means:
    (1) Any physiological disorder or condition, cosmetic disfigurement, 
or anatomical loss affecting one or more of the following body systems: 
neurological, musculoskeletal, special sense organs, respiratory 
including speech organs, cardio-vascular, reproductive, digestive, 
genito-urinary, hemic and lymphatic, skin, and endocrine; or
    (2) Any mental or psychological disorder, such as mental 
retardation, organic brain syndrome, emotional or mental illness, and 
specific learning disabilities.

The term physical or mental impairment includes, but is not limited to, 
such diseases and conditions as orthopedic, visual, speech, and hearing 
impairments; cerebral palsy, epilepsy, muscular dystrophy, multiple 
sclerosis, cancer, heart disease, diabetes, mental retardation, 
emotional illness, drug addiction, and alcoholism.
    (b) Major life activities means functions such as caring for one's 
self, performing manual tasks, walking, seeing, hearing, speaking, 
breathing, learning, and working.
    (c) Has a record of such impairment means has a history of, or has 
been classified, or misclassified, as having a mental or physical 
impairment that substantially limits one or more major life activities.
    (d) Is regarded as having an impairment means:
    (1) Has a physical or mental impairment that does not substantially 
limit major life activities but that is treated by an air carrier as 
constituting such a limitation;
    (2) Has a physical or mental impairment that substantially limits a 
major life activity only as a result of the attitudes of others toward 
such an impairment; or
    (3) Has none of the impairments set forth in this definition but is 
treated by an air carrier as having such an impairment.
    Indirect air carrier means a person not directly involved in the 
operation of an aircraft who sells air transportation services to the 
general public other than as an authorized agent of an air carrier.

[[Page 424]]

    Qualified individual with a disability means an individual with a 
disability who--
    (a) With respect to accompanying or meeting a traveler, use of 
ground transportation, using terminal facilities, or obtaining 
information about schedules, fares or policies, takes those actions 
necessary to avail himself or herself of facilities or services offered 
by an air carrier to the general public, with reasonable accommodations, 
as needed, provided by the carrier;
    (b) With respect to obtaining a ticket for air transportation on an 
air carrier, offers, or makes a good faith attempt to offer, to purchase 
or otherwise validly to obtain such a ticket;
    (c) With respect to obtaining air transportation, or other services 
or acommodations required by this part:
    (1) Purchases or possesses a valid ticket for air transportation on 
an air carrier and presents himself or herself at the airport for the 
purpose of traveling on the flight for which the ticket has been 
purchased or obtained; and
    (2) Meets reasonable, nondiscriminatory contract of carriage 
requirements applicable to all passengers;
    Schedule air service means any flight scheduled in the current 
edition of the Official Airline Guide, the carrier's published schedule, 
or the computer reservation system used by the carrier.



Sec. 382.7  General prohibition of discrimination.

    (a) A carrier shall not, directly or through contractual, licensing, 
or other arrangements:
    (1) Discriminate against any otherwise qualified individual with a 
disability, by reason of such disability, in the provision of air 
transportation;
    (2) Require an individual with a disability to accept special 
services (including, but not limited to, preboarding) not requested by 
the passenger;
    (3) Exclude a qualified individual with a disability from or deny 
the person the benefit of any air transportation or related services 
that are available to other persons, even if there are separate or 
different services available for individuals with a disability except 
when specifically permitted by another section of this part; or,
    (4) Take any action adverse to an individual because of the 
individual's assertion, on his or her own behalf or through or behalf of 
others, of rights protected by this part or the Air Carrier Access Act.
    (b) If an indirect air carrier provides facilities or services for 
passengers that are covered for other carriers by sections Sec. Sec. 
382.21-382.55, the indirect air carrier shall do so in a manner 
consistent with those sections.
    (c) Carriers shall, in addition to meeting the other requirements of 
this part, modify policies, practices, and facilities as needed to 
ensure nondiscrimination, consistent with the standards of section 504 
of the Rehabilitation Act, as amended. Carriers are not required to make 
modifications that would constitute an undue burden or would 
fundamentally alter their program.

[55 FR 8046, Mar. 6, 1990, as amended by Doc. No. OST-96-1880, 63 FR 
10535, Mar. 4, 1998; 65 FR 352, Jan. 5, 2000]



Sec. 382.9  Assurances from contractors.

    Carriers' contracts with contractors who provide services to 
passengers, including carriers' agreements of appointment with travel 
agents (excluding travel agents who are not U.S. citizens who provide 
services to air carriers outside the United States, its territories and 
commonwealths), shall include a clause assuring:
    (a) Nondiscrimination on the basis of disability, consistent with 
this part, by such contractors in activities performed on behalf of the 
carriers; and
    (b) That contractor employers will comply with directives issued by 
carrier complaints resolution officials (CROs) under Sec. 382.67.



Sec. Sec. 382.11-382.19  [Reserved]



              Subpart B_Requirements Concerning Facilities



Sec. 382.21  Aircraft accessibility.

    (a) The following requirements apply to new aircraft operated under 
14 CFR part 121 and ordered by the carrier after the effective date of 
this part or delivered to the carrier more than two

[[Page 425]]

years after the effective date of this part:
    (1)(i) Aircraft with 30 or more passenger seats on which passenger 
aisle seats have armrests shall have movable aisle armrests on at least 
one-half of passenger aisle seats.
    (ii) Such armrests are not required to be provided on aisle seats on 
which a movable armrest is not feasible or aisle seats which a passenger 
with a mobility impairment is precluded from using by an FAA safety 
rule.
    (iii) For aircraft equipped with movable aisle armrests as required 
by this paragraph, carriers shall configure cabins, or establish 
administrative systems, to ensure that an individuals with mobility 
impairments or other individuals with a disability can readily obtain 
seating in rows with movable aisle armrests.
    (2) Aircraft with 100 or more passenger seats shall have a priority 
space in the cabin designated for stowage of at least one folding 
wheelchair;
    (3) Aircraft with more than one aisle in which lavatories are 
provided shall include at least one accessible lavatory. This lavatory 
shall permit a qualified individual with a disability to enter, maneuver 
within as necessary to use all lavatory facilities, and leave, by means 
of the aircraft's on-board wheelchair. The accessible lavatory shall 
afford privacy to persons using the on-board wheelchair equivalent to 
that afforded ambulatory users. The lavatory shall provide door locks, 
accessible call buttons, grab bars, faucets and other controls, and 
dispensers usable by qualified individuals with a disability, including 
wheelchair users and persons with manual impairments;
    (4)(i) Aircraft with more than 60 passenger seats having an 
accessible lavatory, whether or not required to have such a lavatory by 
paragraph (a)(3) of this section, shall be equipped with an operable on-
board wheelchair for the use of passengers.
    (ii) The carrier shall ensure that an operable on-board wheelchair 
is provided for a flight using an aircraft with more than 60 passenger 
seats on the request (with advance notice as provided in Sec. 
382.33(b)(8)) of a qualified individual with a disability who represents 
to the carrier that he or she is able to use an inaccessible lavatory 
but is unable to reach the lavatory from a seat without the use of an 
on-board wheelchair.
    (iii) On-board wheelchairs shall include footrests, armrests which 
are movable or removable, adequate occupant restraint systems, a 
backrest height that permits assistance to passengers in transferring, 
structurally sound handles for maneuvering the occupied chair, and wheel 
locks or another adequate means to prevent chair movement during 
transfer or turbulence. The chair shall be designed to be compatible 
with the maneuvering space, aisle width, and seat height of the aircraft 
on which it is to be used, and to be easily pushed, pulled, and turned 
in the cabin environment by carrier personnel.
    (b)(1) Except as provided in paragraph (b)(2) of this section, 
aircraft in service on the effective date of this part shall not be 
required to be retrofitted for the sole purpose of enhancing 
accessibility.
    (2) Each carrier, within two years of the effective date of this 
part, shall comply with the provisions of paragraph (a)(4) of this 
section with respect to all aircraft with more than 60 passenger seats 
operated under 14 CFR part 121.
    (c) Whenever an aircraft operated under 14 CFR part 121 which does 
not have the accessibility features set forth in paragraph (a) of this 
section undergoes replacement of cabin interior elements or lavatories, 
or the replacement of existing seats with newly manufactured seats, the 
carrier shall meet the requirements of paragraph (a) of this section 
with respect to the affected feature(s) of the aircraft.
    (d) Aircraft operated under 14 CFR part 121 with fewer than 30 
passenger seats (with respect to the requirements of paragraph (a)(1) of 
this section), fewer than 100 passenger seats (with respect to the 
requirements of paragraph (a)(2) of this section) or 60 or fewer 
passenger seats (with respect to the requirements of paragraph (a)(4) of 
this section), and aircraft operated under 14 CFR part 135, shall comply 
with the requirements of this section to the extent not inconsistent 
with structural, weight and balance, operational and interior 
configuration limitations.

[[Page 426]]

    (e) Any replacement or refurbishing of the aircraft cabin shall not 
reduce existing accessibility to a level below that specified in this 
part.
    (f) Carriers shall maintain aircraft accessibility features in 
proper working order.



Sec. 382.23  Airport facilities.

    (a) This section applies to all terminal facilities and services 
owned, leased, or operated on any basis by an air carrier at a 
commercial service airport, including parking and ground transportation 
facilities.
    (b) Air carriers shall ensure that the terminal facilities and 
services subject to this section shall be readily accessible to and 
usable by individuals with disabilities, including individuals who use 
wheelchairs. Air carriers shall be deemed to comply with this Air 
Carrier Access Act obligation if they meet requirements applying to 
places of public accommodation under Department of Justice (DOJ) 
regulations implementing Title III of the Americans with Disabilities 
Act (ADA).
    (c) The carrier shall ensure that there is an accessible path 
between the gate and the area from which aircraft are boarded.
    (d) Systems of inter-terminal transportation, including, but not 
limited to, shuttle vehicles and people movers, shall comply with 
applicable requirements of the Department of Transportation's ADA rule.
    (e) The Americans with Disabilities Act Accessibility Guidelines 
(ADAAGs), including section 10.4 concerning airport facilities, shall be 
the standard for accessibility under this section.
    (f) Contracts or leases between carriers and airport operators 
concerning the use of airport facilities shall set forth the respective 
responsibilities of the parties for the provision of accessible 
facilities and services to individuals with disabilities as required by 
this part for carriers and applicable section 504 and ADA rules of the 
Department of Transportation and Department of Justice for airport 
operators.

[Amdt. 6, 61 FR 56422, Nov. 1, 1996]



Sec. Sec. 382.25-382.29  [Reserved]



                   Subpart C_Requirements for Services



Sec. 382.31  Refusal of transportation.

    (a) Unless specifically permitted by a provision of this part, a 
carrier shall not refuse to provide transportation to a qualified 
individual with a disability on the basis of his or her disability.
    (b) A carrier shall not refuse to provide transportation to a 
qualified individual with a disability solely because the person's 
disability results in appearance or involuntary behavior that may 
offend, annoy, or inconvenience crewmembers or other passengers.
    (c) A carrier shall not refuse to provide transportation to 
qualified individuals with a disability by limiting the number of such 
persons who are permitted to travel on a given flight.
    (d) Carrier personnel, as authorized by 49 U.S.C. 1511, 14 CFR 91.8, 
or 14 CFR 121.533, may refuse to provide transportation to any passenger 
on the basis of safety, and may refuse to provide transportation to any 
passenger whose carriage would violate the Federal Aviation Regulations. 
In exercising this authority, carrier personnel shall not discriminate 
against any qualified individual with a disability on the basis of 
disability and their actions shall not be inconsistent with the 
provisions of this part. In the event that such action is inconsistent 
with the provisions of this part, the carrier shall be subject to 
remedies provided under Sec. 382.65.
    (e) When a carrier refuses to provide transportation to any person 
on a basis relating to the individual's disability, the carrier shall 
specify in writing to the person the basis for the refusal, including, 
where applicable, the reasonable and specific basis for the carrier's 
opinion that transporting the person would or might be inimical to the 
safety of the flight. This written explanation shall be provided within 
10 calendar days of the refusal of transportation.



Sec. 382.33  Advance notice requirements.

    (a) Except as provided in paragraph (b) of this section, a carrier 
shall not require a qualified individual with a

[[Page 427]]

disability to provide advance notice of his or her intention to travel 
or of his or her disability as a condition of receiving transportation 
or of receiving services or accommodations required by this part.
    (b) A carrier may require up to 48 hours advance notice and one-hour 
advance check-in concerning a qualified individual with a disability who 
wishes to receive any of the following services, types of equipment, or 
accommodations:
    (1) Medical oxygen for use on board the aircraft, if this service is 
available on the flight;
    (2) Carriage of an incubator, if this service is available on the 
flight;
    (3) Hook-up for a respirator to the aircraft electrical power 
supply, if this service is available on the flight;
    (4) Accommodation for a passenger who must travel in a stretcher, if 
this service is available on the flight;
    (5) Transportation for an electric wheelchair on a flight scheduled 
to be made with an aircraft with fewer than 60 seats;
    (6) Provision by the carrier of hazardous materials packaging for a 
battery for a wheelchair or other assistive device;
    (7) Accommodation for a group of ten or more qualified individuals 
with a disability, who make reservations and travel as a group; and
    (8) Provision of an on-board wheelchair on an aircraft that does not 
have an accessible lavatory.
    (c) If a passenger does not meet advance notice or check-in 
requirements established by a carrier consistent with this section, the 
carrier shall nonetheless provide the service, equipment, or 
accommodation if it can do so by making a reasonable effort, without 
delaying the flight.
    (d) Carriers' reservation and other administrative systems shall 
ensure that when advance notice is provided by qualified individuals 
with a disability as provided by this section, the notice is recorded 
and properly transmitted to operating employees responsible for 
providing the accommodation concerning which notice was provided.
    (e) If the qualified individual with a disability provides the 
notice required by the carrier for a service under paragraph (b) of this 
section, the carrier shall ensure that the requested service is 
provided.
    (f) If a qualified individual with a disability provides advance 
notice to a carrier, and the individual is forced to change to the 
flight of a different carrier because of the cancellation of the 
original flight or the substitution of inaccessible equipment, the first 
carrier shall, to the maximum extent feasible, provide assistance to the 
second carrier in providing the accommodation requested by the 
individual from the first carrier.



Sec. 382.35  Attendants.

    (a) Except as provided in this section, a carrier shall not require 
that a qualified individual with a disability travel with an attendant 
as a condition of being provided air transportation. A concern on the 
part of carrier personnel that an individual with a disability may need 
to use inaccessible lavatory facilities or may otherwise need extensive 
special assistance for personal needs which carrier personnel are not 
obligated to provide is not a basis on which the carrier may require an 
attendant.
    (b) A carrier may require that a qualified individual with a 
disability meeting any of the following criteria travel with an 
attendant as a condition of being provided air transportation, if the 
carrier determines that an attendant is essential for safety:
    (1) A person traveling in a stretcher or incubator. The attendant 
for such a person must be capable of attending to the passenger's in-
flight medical needs;
    (2) A person who, because of a mental disability, is unable to 
comprehend or respond appropriately to safety instructions from carrier 
personnel, including the safety briefing required by 14 CFR 
121.571(a)(3) and (a)(4) or 14 CFR 135.117(b);
    (3) A person with a mobility impairment so severe that the person is 
unable to assist in his or her own evacuation of the aircraft;
    (4) A person who has both severe hearing and severe vision 
impairments, if the person cannot establish some means of communication 
with carrier personnel, adequate to permit transmission of the safety 
briefing required

[[Page 428]]

by 14 CFR 121.571(a)(3) and (a)(4) or 14 CFR 135.117(b).
    (c) If the carrier determines that a person meeting the criteria of 
paragraph (b)(2), (b)(3) or (b)(4) of this section must travel with an 
attendant, contrary to the individual's self-assessment that he or she 
is capable of traveling independently, the carrier shall not charge for 
the transportation of the attendant.
    (d) If, because there is not a seat available on a flight for an 
attendant whom the carrier has determined to be necessary, an individual 
with a disability with a confirmed reservation is unable to travel on 
the flight, the individual with a disability shall be eligible for 
denied boarding compensation under 14 CFR part 250.
    (e) For purposes of determining whether a seat is available for an 
attendant, the attendant shall be deemed to have checked in at the same 
time as the individual with a disability.



Sec. 382.37  Seat assignments.

    (a) Carriers shall not exclude any qualified individual with a 
disability from any seat in an exit row or other location or require 
that a qualified individual with a disability sit in any particular 
seat, on the basis of disability, except in order to comply with the 
requirements of an FAA safety regulation or as provided in this section.
    (b) If a person's disability results in involuntary active behavior 
that would result in the person properly being refused transportation 
under Sec. 382.31, and the safety problem could be mitigated to a 
degree that would permit the person to be transported consistent with 
safety if the person is seated in a particular location, the carrier 
shall offer the person that particular seat location as an alternative 
to being refused transportation.
    (c) If a service animal cannot be accommodated at the seat location 
of the qualified individual with a disability whom the animal is 
accompanying (see Sec. 382.55(a)(2)), the carrier shall offer the 
passenger the opportunity to move with the animal to a seat location, if 
present on the aircraft, where the animal can be accommodated, as an 
alternative to requiring that the animal travel with checked baggage.



Sec. 382.38  Seating accommodations.

    (a) On request of an individual who self-identifies to a carrier as 
having a disability specified in this paragraph, the carrier shall 
provide the following seating accommodations, subject to the provisions 
of this section:
    (1) For a passenger who uses an aisle chair to access the aircraft 
and who cannot readily transfer over a fixed aisle armrest, the carrier 
shall provide a seat in a row with a movable aisle armrest.
    (2) The carrier shall provide a seat next to a passenger traveling 
with a disability for a person assisting the individual in the following 
circumstances:
    (i) When an individual with a disability is traveling with a 
personal care attendant who will be performing a function for the 
individual during the flight that airline personnel are not required to 
perform (e.g., assistance with eating);
    (ii) When an individual with a vision impairment is traveling with a 
reader/assistant who will be performing functions for the individual 
during the flight; or
    (iii) When an individual with a hearing impairment is traveling with 
an interpreter who will be performing functions for the individual 
during the flight.
    (3) For an individual traveling with a service animal, the carrier 
shall provide, as the individual requests, either a bulkhead seat or a 
seat other than a bulkhead seat.
    (4) For a person with a fused or immobilized leg, the carrier shall 
provide a bulkhead seat or other seat that provides greater legroom than 
other seats, on the side of an aisle that better accommodates the 
individual's disability.
    (b) A carrier that provides advance seat assignments shall comply 
with the requirements of paragraph (a) of this section by any of the 
following methods:
    (1) The carrier may ``block'' an adequate number of the seats used 
to provide the seating accommodations required by this section.
    (i) The carrier shall not assign these seats to passengers not 
needing seating accommodations provided under this

[[Page 429]]

paragraph until 24 hours before the scheduled departure of the flight.
    (ii) At any time up until 24 hours before the scheduled departure of 
the flight, the carrier shall assign a seat meeting the requirements of 
this section to an individual who requests it.
    (iii) If an individual with a disability does not make a request at 
least 24 hours before the scheduled departure of the flight, the carrier 
shall meet the individual's request to the extent practicable, but is 
not required to reassign a seat assigned to another passenger in order 
to do so.
    (2) The carrier may designate an adequate number of the seats used 
to provide seating accommodations required by this section as ``priority 
seats'' for individuals with disabilities.
    (i) The carrier shall provide notice that all passengers assigned 
these seats (other than passengers with disabilities listed in paragraph 
(a) of this section) are subject to being reassigned to another seat if 
necessary to provide a seating accommodation required by this section. 
The carrier may provide this notice through its computer reservation 
system, verbal information provided by reservation personnel, ticket 
notices, gate announcements, counter signs, seat cards or notices, 
frequent-flier literature, or other appropriate means.
    (ii) The carrier shall assign a seat meeting the requirements of 
this section to an individual who requests the accommodation and checks 
in at least one hour before the scheduled departure of the flight. If 
all designated priority seats that would accommodate the individual have 
been assigned to other passengers, the carrier shall reassign the seats 
of the other passengers as needed to provide the requested 
accommodation.
    (iii) If the individual with a disability does not check in at least 
an hour before the scheduled departure of the flight, the carrier shall 
meet the individual's request to the extent practicable, but is not 
required to reassign a seat assigned to another passenger in order to do 
so.
    (c) On request of an individual who self-identifies to a carrier as 
having a disability other than one in the four categories listed in 
paragraph (a) of this section and as needing a seat assignment 
accommodation in order to readily access and use the carrier's air 
transportation services, a carrier that assigns seats in advance shall 
provide such an accommodation, as described in this paragraph.
    (1) A carrier that complies with paragraph (a) this section through 
the ``seat-blocking'' mechanism of paragraph (b)(1) of this section 
shall implement the requirements of this paragraph as follows:
    (i) When the passenger with a disability not described in paragraph 
(a) of this section makes a reservation more than 24 hours before the 
scheduled departure time of the flight, the carrier is not required to 
offer the passenger one of the seats blocked for the use of passengers 
with disabilities listed under paragraph (a) of this section.
    (ii) However, the carrier shall assign to the passenger any seat, 
not already assigned to another passenger, that accommodates the 
passenger's needs, even if that seat is not available for assignment to 
the general passenger population at the time of the request.
    (2) A carrier that complies with this section through the 
``designated priority seats'' mechanism of paragraph (b)(2) of this 
section shall implement the requirements of this paragraph as follows:
    (i) When a passenger with a disability not described in paragraph 
(a) of this section makes a reservation, the carrier shall assign to the 
passenger any seat, not already assigned to another passenger, that 
accommodates the passenger's needs, even if that seat is not available 
for assignment to the general passenger population at the time of the 
request.
    (ii) If such a passenger is assigned to a designated priority seat, 
he or she is subject to being reassigned to another seat as provided in 
paragraph (b)(2) of this section.
    (d) A carrier that does not provide advance seat assignments shall 
provide seating accommodations for persons described in paragraphs (a) 
and (c) of this section by allowing them to board the aircraft before 
other passengers, including other ``pre-boarded'' passengers, so that 
the individuals needing seating accommodations can select

[[Page 430]]

seats that best meet their needs if they have taken advantage of the 
opportunity to pre-board.
    (e) A carrier may comply with the requirements of this section 
through an alternative method not specified in paragraphs (b) through 
(d) of this section. A carrier wishing to do so shall obtain the written 
concurrence of the Department of Transportation (Office of the 
Secretary) before implementing the alternative method.
    (f) The carrier shall assign a seat providing an accommodation 
requested by an individual with a disability, as specified in this 
section, even if the seat is not otherwise available for assignment to 
the general passenger population at the time of the individual's 
request.
    (g) If the carrier has already provided a seat to an individual with 
a disability to furnish an accommodation required by paragraph (a) or 
(c) of this section, the carrier shall not reassign that individual to 
another seat in response to a subsequent request from another individual 
with a disability, without the first individual's consent.
    (h) In no case shall any individual be denied transportation on a 
flight in order to provide accommodations required by this section.
    (i) Carriers are not required to furnish more than one seat per 
ticket or to provide a seat in a class of service other than the one the 
passenger has purchased.
    (j) In responding to requests from individuals for accommodations 
required by this section, carriers shall comply with FAA safety rules, 
including those pertaining to exit seating (see 14 CFR 121.585 and 
135.129).
    (k) Carriers are required to comply with this section beginning 
September 30, 1998.

[Doc. No. OST-96-1880, 63 FR 10535, Mar. 4, 1998; 63 FR 11954, Mar. 11, 
1998]



Sec. 382.39  Provision of services and equipment.

    Carriers shall ensure that qualified individuals with a disability 
are provided the following services and equipment:
    (a) Carriers shall provide assistance requested by or on behalf of 
qualified individuals with a disability, or offered by air carrier 
personnel and accepted by qualified individuals with a disability, in 
enplaning and deplaning. The delivering carrier shall be responsible for 
assistance in making flight connections and transportation between 
gates.
    (1) This assistance shall include, as needed, the services personnel 
and the use of ground wheelchairs, boarding wheelchairs, on-board 
wheelchairs where provided in accordance with this part, and ramps or 
mechanical lifts.
    (2) Boarding shall be by level-entry loading bridges or accessible 
passenger lounges, where these means are available. Where these means 
are unavailable, assistance in boarding aircraft with 30 or fewer 
passenger seats shall be provided as set forth in Sec. 382.40, and 
assistance in boarding aircraft with 31 or more seats shall be provided 
as set forth in Sec. 382.40a. In no case shall carrier personnel hand-
carry a passenger in order to provide boarding or deplaning assistance 
(i.e., directly pick up the passenger's body in the arms of one or more 
carrier personnel to effect a change of level that the passenger needs 
to enter or leave the aircraft). Hand-carrying of passengers is 
permitted only for emergency evacuations.
    (3) Carriers shall not leave an individual with a disability 
unattended in a ground wheelchair, boarding wheelchair, or other device, 
in which the passenger is not independently mobile, for more than 30 
minutes.
    (b) Carriers shall provide services within the aircraft cabin as 
requested by or on behalf of individuals with a disability, or when 
offered by air carrier personnel and accepted by individuals with a 
disability as follows:
    (1) Assistance in moving to and from seats, as part of the enplaning 
and deplaning processes;
    (2) Assistance in preparation for eating, such as opening packages 
and identifying food;
    (3) If there is an on-board wheelchair on the aircraft, assistance 
with the use of the on-board wheelchair to enable the person to move to 
and from a lavatory;
    (4) Assistance to a semiambulatory person in moving to and from the 
lavatory, not involving lifting or carrying the person; or

[[Page 431]]

    (5) Assistance in loading and retrieving carry-on items, including 
mobility aids and other assistive devices stowed on board in accordance 
with Sec. 382.41.
    (c) Carriers are not required to provide extensive special 
assistance to qualified individuals with a disability. For purposes of 
this section, extensive special assistance includes the following 
activities:
    (1) Assistance in actual eating;
    (2) Assistance within the restroom or assistance at the passenger's 
seat with elimination functions;
    (3) Provision of medical services.

[55 FR 8046, Mar. 6, 1990, as amended by Amdt. 6, 61 FR 56422, 56423, 
Nov. 1, 1996; 62 FR 17, Jan. 2, 1997; 66 FR 22115, May 3, 2001]



Sec. 382.40  Boarding assistance for small aircraft.

    (a) Paragraphs (b) and (c) of this section apply to air carriers 
conducting passenger operations with aircraft having 19-30 seat capacity 
at airports with 10,000 or more annual enplanements.
    (b) Carriers shall, in cooperation with the airports they serve, 
provide boarding assistance to individuals with disabilities using 
mechanical lifts, ramps, or other suitable devices that do not require 
employees to lift or carry passengers up stairs.
    (c)(1) Each carrier shall negotiate in good faith with the airport 
operator at each airport concerning the acquisition and use of boarding 
assistance devices. The carrier(s) and the airport operator shall, by no 
later than September 2, 1997, sign a written agreement allocating 
responsibility for meeting the boarding assistance requirements of this 
section between or among the parties. The agreement shall be made 
available, on request, to representatives of the Department of 
Transportation.
    (2) The agreement shall provide that all actions necessary to ensure 
accessible boarding for passengers with disabilities are completed as 
soon as practicable, but no later than December 2, 1998 at large and 
medium commercial service hub airports (those with 1,200,000 or more 
annual enplanements); December 2, 1999 for small commercial service hub 
airports (those with between 250,000 and 1,199,999 annual enplanements); 
or December 4, 2000 for non-hub commercial service primary airports 
(those with between 10,000 and 249,999 annual enplanements) . All air 
carriers and airport operators involved are jointly responsible for the 
timely and complete implementation of the agreement.
    (3) Under the agreement, carriers may require that passengers 
wishing to receive boarding assistance requiring the use of a lift for a 
flight using a 19-30 seat aircraft check in for the flight one hour 
before the scheduled departure time for the flight. If the passenger 
checks in after this time, the carrier shall nonetheless provide the 
boarding assistance by lift if it can do so by making a reasonable 
effort, without delaying the flight.
    (4) Boarding assistance under the agreement is not required in the 
following situations:
    (i) Access to aircraft with a capacity of fewer than 19 or more than 
30 seats;
    (ii) Access to float planes;
    (iii) Access to the following 19-seat capacity aircraft models: the 
Fairchild Metro, the Jetstream 31, and the Beech 1900 (C and D models);
    (iv) Access to any other 19-seat aircraft model determined by the 
Department of Transportation to be unsuitable for boarding assistance by 
lift on the basis of a significant risk of serious damage to the 
aircraft or the presence of internal barriers that preclude passengers 
who use a boarding or aisle chair to reach a non-exit row seat.
    (5) When boarding assistance is not required to be provided under 
paragraph (c)(4) of this section, or cannot be provided as required by 
paragraphs (b) and (c) of this section for reasons beyond the control of 
the parties to the agreement (e.g., because of mechanical problems with 
a lift), boarding assistance shall be provided by any available means to 
which the passenger consents, except hand-carrying as defined in Sec. 
382.39(a)(2) of this part.
    (6) The agreement shall ensure that all lifts and other 
accessibility equipment are maintained in proper working condition.
    (d)(1) The training of carrier personnel required by Sec. 382.61 
shall include, for those personnel involved in providing boarding 
assistance, training to proficiency in the use of the boarding

[[Page 432]]

assistance equipment used by the carrier and appropriate boarding 
assistance procedures that safeguard the safety and dignity of 
passengers.
    (2) Carriers who do not operate aircraft with more than a 19-seat 
capacity shall ensure that those personnel involved in providing 
boarding assistance are trained to proficiency in the use of the 
boarding assistance equipment used by the carrier and appropriate 
boarding assistance procedures that safeguard the safety and dignity of 
passengers.

[Amdt. 6, 61 FR 56423, Nov. 1, 1996]



Sec. 382.40a  Boarding assistance for large aircraft.

    (a) Paragraphs (b) and (c) of this section apply to air carriers 
conducting passenger operations with aircraft having a seating capacity 
of 31 or more passengers at airports with 10,000 or more annual 
enplanements, in any situation where passengers are not boarded by 
level-entry loading bridges or accessible passenger lounges.
    (b) Carriers shall, in cooperation with the airports they serve, 
provide boarding assistance to individuals with disabilities using 
mechanical lifts, ramps, or other suitable devices that do not require 
employees to lift or carry passengers up stairs.
    (c)(1) Each carrier that does not provide passenger boarding by 
level-entry loading bridges or accessible passenger lounges shall 
negotiate in good faith with the airport operator at each airport 
concerning the acquisition and use of boarding assistance devices. The 
carrier(s) and the airport operator shall, by no later than March 4, 
2002, sign a written agreement allocating responsibility for meeting the 
boarding assistance requirements of this section between or among the 
parties. The agreement shall be made available, on request, to 
representatives of the Department of Transportation.
    (2) The agreement shall provide that all actions necessary to ensure 
accessible boarding for passengers with disabilities are completed as 
soon as practicable, but no later than December 4, 2002. All air 
carriers and airport operators involved are jointly responsible for the 
timely and complete implementation of the agreement.
    (3) Under the agreement, carriers may require that passengers 
wishing to receive boarding assistance requiring the use of a lift for a 
flight check in for the flight one hour before the scheduled departure 
time for the flight. If the passenger checks in after this time, the 
carrier shall nonetheless provide the boarding assistance by lift if it 
can do so by making a reasonable effort, without delaying the flight.
    (4) Level-entry boarding assistance under the agreement is not 
required with respect to float planes or with respect to any widebody 
aircraft determined by the Department of Transportation to be unsuitable 
for boarding assistance by lift, ramp, or other device on the basis that 
no existing boarding assistance device on the market will accommodate 
the aircraft without a significant risk of serious damage to the 
aircraft or injury to passengers or employees.
    (5) When level-entry boarding assistance is not required to be 
provided under paragraph (c)(4) of this section, or cannot be provided 
as required by paragraphs (b) and (c) of this section (e.g., because of 
mechanical problems with a lift), boarding assistance shall be provided 
by any available means to which the passenger consents, except hand-
carrying as defined in Sec. 382.39 (a)(2).
    (6) The agreement shall ensure that all lifts and other 
accessibility equipment are maintained in proper working condition.
    (d) The training of carrier personnel required by Sec. 382.61 shall 
include, for those personnel involved in providing boarding assistance, 
training to proficiency in the use of the boarding assistance equipment 
used by the carrier and appropriate boarding assistance procedures that 
safeguard the safety and dignity of passengers.

[Doc. No. 1999-6159, 66 FR 22115, May 3, 2001]



Sec. 382.41  Stowage of personal equipment.

    (a) All stowage of qualified individuals with a disability's 
wheelchairs and other equipment covered by this part in aircraft cabins 
shall be in accordance with 14 CFR 121.589 and 14 CFR 121.285(c) or 14 
CFR 135.87, as applicable.

[[Page 433]]

    (b) Carriers shall permit qualified individuals with a disability 
using personal ventilators/respirators to bring their equipment, 
including non-spillable batteries that meet the requirements of 49 CFR 
173.159(d) and any applicable FAA safety regulations, on board the 
aircraft and use it.
    (c) Carriers shall permit qualified individuals with a disability to 
stow canes and other assistive devices on board the aircraft in close 
proximity to their seats, consistent with the requirements of FAA safety 
regulations for carry-on items.
    (d) Carriers shall not, in implementing their carry-on baggage 
policies, count toward a limit on carry-on items any assistive device 
brought into the cabin by a qualified individual with a disability.
    (e) Carriers shall provide for on-board stowage of passengers' 
wheelchairs (including collapsible or break-down battery-powered 
wheelchairs, subject to the provisions of paragraph (g)(5) of this 
section) as carry-on baggage as follows:
    (1) Carriers shall permit the stowage of wheelchairs or components 
of wheelchairs in overhead compartments and under seats, consistent with 
the requirements of FAA safety regulations for carry-on items.
    (2) In an aircraft in which a closet or other approved stowage area 
is provided in the cabin for passengers' carry-on items, of a size that 
will accommodate a folding, collapsible, or break-down wheelchair, the 
carrier shall designate priority stowage space, as described below, for 
at least one folding, collapsible, or break-down wheelchair in that 
area. A individual with a disability who takes advantage of a carrier 
offer of the opportunity to pre-board the aircraft may stow his or her 
wheelchair in this area, with priority over the carry-on items brought 
onto the aircraft by other passengers enplaning at the same airport. A 
individual with a disability who does not take advantage of a carrier 
offer of the opportunity to preboard may use the area to stow his or her 
wheelchair on a first-come, first-served basis along with all other 
passengers seeking to stow carry-on items in the area.
    (3) If an approved stowage area in the cabin is not available for a 
folding, collapsible, or break-down wheelchair, the wheelchair shall be 
stowed in the cargo compartment.
    (f) When a folding, collapsible, or break-down wheelchair cannot be 
stowed in the passenger cabin as carry-on baggage, carriers shall 
provide for the checking and timely return of passengers' wheelchairs 
and other assistive devices as close as possible to the door of the 
aircraft, so that passengers may use their own equipment to the extent 
possible, except where this practice would be inconsistent with DOT 
regulations governing the transportation of hazardous materials.
    (1) At the request of the passenger, the carrier may return 
wheelchairs or other assistive devices to the passenger at the baggage 
claim area instead of at the door of the aircraft.
    (2) In order to achieve the timely return of wheelchairs, 
passengers' wheelchairs and other assistive devices shall be among the 
first items retrieved from the baggage compartment.
    (3) Wheelchairs and other assistive devices shall be stowed in the 
baggage compartment with priority over other cargo and baggage. Where 
this priority results in passengers' baggage being unable to be carried 
on the flight, the carrier shall make its best efforts to ensure that 
the other baggage reaches the passengers' destination within four hours 
of the scheduled arrival time of the flight.
    (g) Whenever baggage compartment size and aircraft airworthiness 
considerations do not prohibit doing so, carriers shall accept a 
passenger's battery-powered wheelchair, including the battery, as 
checked baggage, consistent with the requirements of 49 CFR 
175.10(a)(19) and (20) and the provisions of paragraph (f) of this 
section.
    (1) Carriers may require that qualified individuals with a 
disability wishing to have battery-powered wheelchairs transported on a 
flight (including in the cabin) check in one hour before the scheduled 
departure time of the flight. If such an individual checks in after this 
time, the carrier shall nonetheless carry the wheelchair if it can do so 
by making a reasonable effort, without delaying the flight.

[[Page 434]]

    (2) If the battery on the individual's wheelchair has been labeled 
by the manufacturer as non-spillable as provided in 49 CFR 
173.159(d)(2), or if a battery-powered wheelchair with a spillable 
battery is loaded, stored, secured and unloaded in an upright position, 
the carrier shall not require the battery to be removed and separately 
packaged. Notwithstanding this requirement, carriers may remove and 
package separately any battery that appears to be damaged or leaking.
    (3) When it is necessary to detach the battery from the wheelchair, 
carriers shall, upon request, provide packaging for the battery meeting 
the requirements of 49 CFR 175.10(a)(19) and (20) and package the 
battery. Carriers may refuse to use packaging materials or devices other 
than those they normally use for this purpose.
    (4) Carriers shall not drain batteries.
    (5) At the request of a passenger, a carrier shall stow a folding, 
break-down or collapsible battery-powered wheelchair in the passenger 
cabin stowage area as provided in paragraph (e) of this section. If the 
wheelchair can be stowed in the cabin without removing the battery, the 
carrier shall not remove the battery. If the wheelchair cannot be stowed 
in the cabin without removing the battery, the carrier shall remove the 
battery and stow it in the baggage compartment as provided in paragraph 
(g)(3) of this section. In this case, the carrier shall permit the 
wheelchair, with battery removed, to be stowed in the cabin.
    (h) Individuals with disabilities shall be permitted to provide 
written directions concerning the disassembly and reassembly of their 
wheelchairs.

[55 FR 8046, Mar. 6, 1990, as amended by Doc. No. OST -96-1880, 63 FR 
10536, Mar. 4, 1998]



Sec. 382.43  Treatment of mobility aids and assistive devices.

    (a) When wheelchairs or other assistive devices are disassembled by 
the carrier for stowage, the carrier shall reassemble them and ensure 
their prompt return to the individual with a disability. Wheelchairs and 
other assistive devices shall be returned to the passenger in the 
condition received by the carrier.
    (b) With respect to domestic transportation, the baggage liability 
limits of 14 CFR part 254 do not apply to liability for loss, damage, or 
delay concerning wheelchairs or other assistive devices. The criterion 
for calculating the compensation for a lost, damaged, or destroyed 
wheelchair or other assistive device shall be the original purchase 
price of the device.
    (c) Carriers shall not require qualified individuals with a 
disability to sign waivers of liability for damage to or loss of 
wheelchairs or other assistive devices.

[55 FR 8046, Mar. 6, 1990, as amended at 55 FR 12342, Apr. 3, 1990; 64 
FR 41783, Aug. 2, 1999]



Sec. 382.45  Passenger information.

    (a) A carrier shall make available, on request, the following 
information concerning facilities and services related to the provision 
of air transportation to qualified individuals with a disability. This 
information shall pertain to the type of aircraft and, where feasible, 
the specific aircraft scheduled for a specific flight:
    (1) The location of seats, if any, with movable armrests and any 
seats which the carrier, consistent with this part, does not make 
available to qualified individuals with a disability;
    (2) Any limitations on the ability of the aircraft to accommodate 
qualified individuals with disabilities, including limitations on the 
availability of boarding assistance to the aircraft, with respect to the 
departure and destination points and any intermediate stops. The carrier 
shall provide this information to any passenger who states that he or 
she uses a wheelchair for boarding, even if the passenger does not 
explicitly request the information.
    (3) Any limitations on the availability of storage facilities, in 
the cabin or in the cargo bay, for mobility aids or other equipment 
commonly used by individuals with a disability;
    (4) Whether the aircraft has an accessible lavatory.
    (b) The following provisions govern the provision of individual 
safety briefings to qualified individuals with a disability:
    (1) Individual safety briefings shall be conducted for any passenger 
where

[[Page 435]]

required by 14 CFR 121.571 (a)(3) and (a)(4) or 14 CFR 135.117(b);
    (2) Carrier personnel may offer an individual briefing to any other 
passenger;
    (3) Individual safety briefings for qualified individuals with a 
disability shall be conducted as inconspicuously and discreetly as 
possible;
    (4) Carrier personnel shall not require any qualified individual 
with a disability to demonstrate that he or she has listened to, read, 
or understood the information presented, except to the extent that 
carrier personnel impose such a requirement on all passengers with 
respect to the general safety briefing, and shall not take any action 
adverse to a qualified individual with a disability on the basis that 
the person has not ``accepted'' the briefing.
    (c) Each carrier shall ensure that qualified individuals with a 
disability, including those with vision or hearing impairments, have 
timely access to information the carrier provides to other passengers in 
the terminal or on the aircraft (to the extent that it does not 
interfere with crewmembers' safety duties as set forth in FAA 
regulations) including, but not limited to, information concerning 
ticketing, flight delays, schedule changes, connections, flight check-
in, gate assignments, and the checking and claiming of luggage; 
Provided, That persons who are unable to obtain such information from 
the audio or visual systems used by carriers in airports or on aircraft 
shall request the information from carrier personnel. Carriers shall 
also provide information on aircraft changes that will affect the travel 
of individuals with a disability.
    (d) Carriers shall have, at each airport they use, a copy of this 
part and shall make it available for review by individuals with a 
disability on request.

[55 FR 8046, Mar. 6, 1990, as amended by Amdt. 6, 61 FR 56423, Nov. 1, 
1996]



Sec. 382.47  Accommodations for persons with hearing impairments.

    (a) Each carrier providing scheduled air service, or charter service 
under section 401 of the Federal Aviation Act, and which makes available 
telephone reservation and information service available to the public 
shall make available a telecommunications device for the deaf (TDD) 
service to enable persons with hearing impairments to make reservations 
and obtain information. The TDD service shall be available during the 
same hours as the telephone service for the general public and the 
response time for answering calls shall be equivalent. Users of the TDD 
service shall not be subject to charges for a call that exceed those 
applicable to other users of the telephone information and reservation 
service.
    (b) In aircraft in which safety briefings are presented to 
passengers on video screens, the carrier shall ensure that the video 
presentation is accessible to persons with hearing impairments.
    (1) Except as provided in paragraph (b)(2) of this section, the 
carrier shall implement this requirement by using open captioning or an 
inset for a sign language interpreter as part of the video presentation.
    (2) A carrier may use an equivalent non-video alternative to this 
requirement only if neither open captioning nor a sign language 
interpreter inset could be placed in the video presentation without so 
interfering with it as to render it ineffective or would be large enough 
to be readable.
    (3) Carriers shall implement the requirements of this section by 
substituting captioned video materials for uncaptioned video materials 
as the uncaptioned materials are replaced in the normal course of the 
carrier's operations.



Sec. 382.49  Security screening of passengers.

    (a) Qualified individuals with a disability shall undergo security 
screening in the same manner, and be subject to the same security 
requirements, as other passengers. Possession by a qualified individual 
with a disability of an aid used for independent travel shall not 
subject the person or the aid to special screening procedures if the 
person using the aid clears the security system without activating it. 
Provided, That this paragraph shall not prohibit security personnel from 
examining a mobility aid or assistive device which,

[[Page 436]]

in their judgment, may conceal a weapon or other prohibited item. 
Security searches of qualified individuals with a disability whose aids 
activate the security system shall be conducted in the same manner as 
for other passengers. Private security screenings shall not be required 
for qualified individuals with a disability to a greater extent, or for 
any different reason, than for other passengers.
    (b) Except as provided in paragraph (c) of this section, if a 
qualified individual with a disability requests a private screening in a 
timely manner, the carrier shall provide it in time for the passenger to 
enplane.
    (c) If a carrier employs technology that can conduct an appropriate 
screening of an individual with a disability without necessitating a 
physical search of the person, the carrier is not required to provide a 
private screening.



Sec. 382.51  Communicable diseases.

    (a) Except as provided in paragraph (b) of this section, a carrier 
shall not take any of the following actions, with respect to a person 
who is otherwise a qualified individual with a disability, on the basis 
that the individual has a communicable disease or infection:
    (1) Refuse to provide transportation to the person;
    (2) Require the person to provide a medical certificate; or
    (3) Impose on the person any condition, restriction, or requirement 
not imposed on other passengers.
    (b)(1) The carrier may take the actions listed in paragraph (a) of 
this section with respect to an individual who has a communicable 
disease or infection only if the individual's condition poses a direct 
threat to the health or safety of others.
    (2) For purposes of this section, a direct threat means a 
significant risk to the health or safety of others that cannot be 
eliminated by a modification of policies, practices, or procedures, or 
by the provision of auxiliary aids or services.
    (3) In determining whether an individual poses a direct threat to 
the health or safety of others, a carrier must make an individualized 
assessment, based on reasonable judgment that relies on current medical 
knowledge or on the best available objective evidence, to ascertain: the 
nature, duration, and severity of the risk; that the potential harm to 
the health and safety of others will actually occur; and whether 
reasonable modifications of policies, practices, or procedures will 
mitigate the risk.
    (4) In taking actions authorized under this paragraph, carriers 
shall select the alternative, consistent with the safety and health of 
other persons, that is least restrictive from the point of view of the 
passenger with the communicable disease. For example, the carrier shall 
not refuse to provide transportation to an individual if provision of a 
medical certificate or reasonable modifications to practices, policies, 
or procedures will mitigate the risk of communication of the disease to 
others to an extent that would permit the individual to travel.
    (5) If an action authorized under this paragraph results in the 
postponement of a passenger's travel, the carrier shall permit the 
passenger to travel at a later time (up to 90 days from the date of the 
postponed travel) at the fare that would have applied to the passenger's 
originally scheduled trip without penalty or, at the passenger's 
discretion, provide a refund for any unused flights, including return 
flights.
    (6) Upon the passenger's request, the carrier shall provide to the 
passenger a written explanation of any action taken under this paragraph 
within 10 days of the request.
    (c) If a qualified individual with a disability with a communicable 
disease or infection of the kind described in paragraph (b) of this 
section presents a medical certificate to the carrier, as provided in 
Sec. 382.53(c)(2), the carrier shall provide transportation to the 
individual, unless it is not feasible for the carrier to implement the 
conditions set forth in the medical certificate as necessary to prevent 
the transmission of the disease or infection to other persons in the 
normal course of a flight.

[55 FR 8046, Mar. 6, 1990, as amended by Amdt. 6, 61 FR 56423, Nov. 1, 
1996]

[[Page 437]]



Sec. 382.53  Medical certificates.

    (a) Except as provided in this section, a carrier shall not require 
a person who is otherwise a qualified individual with a disability to 
have a medical certificate as a condition for being provided 
transportation.
    (b)(1) A carrier may require a medical certificate for a qualified 
individual with a disability--
    (i) Who is traveling in a stretcher or incubator;
    (ii) Who needs medical oxygen during a flight, as provided in 14 CFR 
121.574; or
    (iii) Whose medical condition is such that there is reasonable doubt 
that the individual can complete the flight safely, without requiring 
extraordinary medical assistance during the flight.
    (2) For purposes of this paragraph, a medical certificate is a 
written statement from the passenger's physician saying that the 
passenger is capable of completing a flight safely, without requiring 
extraordinary medical assistance during the flight.
    (c)(1) If a qualified individual with a disability has a 
communicable disease or infection of the kind described in Sec. 
382.51(b), a carrier may require a medical certificate.
    (2) For purposes of this paragraph, a medical certificate is a 
written statement from the passenger's physician saying that the disease 
or infection would not, under the present conditions in the particular 
passenger's case, be communicable to other persons during the normal 
course of a flight. The medical certificate shall state any conditions 
or precautions that would have to be observed to prevent the 
transmission of the disease or infection to other persons in the normal 
course of a flight. It shall be dated within ten days of the date of the 
flight for which it is presented.



Sec. 382.55  Miscellaneous provisions.

    (a) Carriers shall permit dogs and other service animals used by 
individuals with a disability to accompany the persons on a flight.
    (1) Carriers shall accept as evidence that an animal is a service 
animal identification cards, other written documentation, presence of 
harnesses or markings on harnesses, tags, or the credible verbal 
assurances of the qualified individual with a disability using the 
animal.
    (2) Carriers shall permit a service animal to accompany a qualified 
individual with a disability in any seat in which the person sits, 
unless the animal obstructs an aisle or other area that must remain 
unobstructed in order to facilitate an emergency evacuation.
    (3) In the event that special information concerning the 
transportation of animals outside the continental United States is 
either required to be or is provided by the carrier, the information 
shall be provided to all passengers traveling with animals outside the 
continental United States with the carrier, including those traveling 
with service animals.
    (b) Carriers shall not require qualified individuals with a 
disability to sit on blankets.
    (c) Carriers shall not restrict the movements of individuals with a 
disability in terminals or require them to remain in a holding area or 
other location in order to be provided transportation, to receive 
assistance, or for other purposes, or otherwise mandate separate 
treatment for individuals with a disability, except as permitted or 
required in this part.



Sec. 382.57  Charges for accommodations prohibited.

    Carriers shall not impose charges for providing facilities, 
equipment, or services that are required by this part to be provided to 
qualified individuals with a disability.



Sec. 382.59  [Reserved]



                   Subpart D_Administrative Provisions



Sec. 382.61  Training.

    (a) Each carrier which operates aircraft with more than 19 passenger 
seats shall provide training, meeting the requirements of this 
paragraph, for all its personnel who deal with the traveling public, as 
appropriate to the duties of each employee.
    (1) The carrier shall ensure training to proficiency concerning:

[[Page 438]]

    (i) The requirements of this part and other DOT or FAA regulations 
affecting the provision of air travel to individuals with a disability; 
and
    (ii) The carrier's procedures, consistent with this part, concerning 
the provision of air travel to individuals with a disability, including 
the proper and safe operation of any equipment used to accommodate 
individuals with a disability.
    (2) The carrier shall also train such employees with respect to 
awareness and appropriate responses to individuals with a disability, 
including persons with physical, sensory, mental, and emotional 
disabilities, including how to distinguish among the differing abilities 
of individuals with a disability.
    (3) The carrier shall consult with organizations representing 
persons with disabilities in developing its training program and the 
policies and procedures concerning which carrier personnel are trained.
    (4) The carrier shall ensure that personnel required to receive 
training shall complete the training by the following times:
    (i) For crewmembers subject to training required under 14 CFR part 
121 or 135, who are employed on the date the carrier's program is 
established under Sec. 382.63, as part of their next scheduled 
recurrent training;
    (ii) For other personnel employed on the date the carrier's program 
is established under Sec. 382.63, within 180 days of that date;
    (iii) For crewmembers subject to training requirements under 14 CFR 
part 121 or 135 whose employment in any given position commences after 
the date the carrier's program is established under Sec. 382.63, before 
they assume their duties; and
    (iv) For other personnel whose employment in any given position 
commences after the date the carrier's program is established under 
Sec. 382.63, within 60 days of the date on which they assume their 
duties.
    (5) Each carrier shall ensure that all personnel required to receive 
training receive refresher training on the matters covered by this 
section, as appropriate to the duties of each employee, as needed to 
maintain proficiency.
    (6) Each carrier shall provide, or require its contractors to 
provide, training to the contractors' employees concerning travel by 
individuals with a disability. This training is required only for those 
contractor employees who deal directly with the traveling public at 
airports, and it shall be tailored to the employees' functions. Training 
for contractor employees shall meet the requirements of paragraphs 
(a)(1) through (a)(5) of this section.
    (7) Current employees of each carrier designated as complaints 
resolution officials, for purposes of Sec. 382.65 of this part, shall 
receive training concerning the requirements of this part and the duties 
of a complaints resolution official within 60 days of the effective date 
of this part. Employees subsequently designated as complaints resolution 
officers shall receive this training before assuming their duties under 
Sec. 382.65. All employees performing the complaints resolution 
official function shall receive annual refresher training concerning 
their duties and the provisions of this regulation.
    (b) Each carrier operating only aircraft with 19 or fewer passenger 
seats shall provide training for flight crewmembers and appropriate 
personnel to ensure that they are familiar with the matters listed in 
paragraphs (a)(1) and (a)(2) of this section and comply with the 
requirements of this part.



Sec. 382.63  Carrier programs.

    (a)(1) Each carrier that operates aircraft with more than 19 
passenger seats shall establish and implement, within 180 days of the 
effective date of this part, a written program for carrying out the 
requirements of this part.
    (2) Carriers are not excused from compliance with the provisions of 
this part during the 180 days before carrier programs are required to be 
established.
    (b) The program shall include the following elements:
    (1) The carrier's schedule for training its personnel in compliance 
with Sec. 382.61;
    (2) The carrier's policies and procedures for accommodating 
individuals with a disability consistent with the requirements of this 
part.

[[Page 439]]

    (c)(1) Major and National carriers (as defined in the DOT 
publication Air Carrier Traffic Statistics), and every U.S. carrier that 
shares the designator code of a Major or National carrier (as described 
in 14 CFR 399.88), shall submit their program to the Department for 
review within 180 days of the effective date of this part.
    (2) The Department shall review each carrier's program, which the 
carrier shall implement without further DOT action at the time it is 
submitted to the Department.
    (3) If the Department determines that any portion of a carrier's 
plan must be amended, or provisions added or deleted, in order for the 
carrier to comply with this part, DOT will direct the carrier to make 
appropriate changes. The carrier shall incorporate these changes into 
its program and implement them.
    (d) Other carriers shall maintain their programs on file, and shall 
make them available for review by the Department on the Department's 
request. If, upon such review, the Department determines that any 
portion of a carrier's plan must be amended, or provisions added or 
deleted, in order for the carrier to comply with this part, DOT will 
direct the carrier to make appropriate changes. The carrier shall 
incorporate these changes into its program and implement them.



Sec. 382.65  Compliance procedures.

    (a) Each carrier providing scheduled service shall establish and 
implement a complaint resolution mechanism, including designating one or 
more complaints resolution official(s) (CRO) to be available at each 
airport which the carrier serves.
    (1) The carrier shall make a CRO available to any person who 
complains of alleged violations of this part during all times the 
carrier is operating at the airport.
    (2) The carrier may make the CRO available via telephone, at no cost 
to the passenger, if the CRO is not present in person at the airport at 
the time of the complaint. If a telephone link to the CRO is used, TDD 
service shall be available so that persons with hearing impairments may 
readily communicate with the CRO.
    (3) Each CRO shall be thoroughly familiar with the requirements of 
this part and the carrier's procedures with respect to individuals with 
a disability.
    (4) Each CRO shall have the authority to make dispositive resolution 
of complaints on behalf of the carrier.
    (5) When a complaint is made to a CRO, the CRO shall promptly take 
dispositive action as follows:
    (i) If the complaint is made to a CRO before the action or proposed 
action of carrier personnel has resulted in a violation of a provision 
of this part, the CRO shall take or direct other carrier personnel to 
take action, as necessary, to ensure compliance with this part. 
Provided, That the CRO is not required to be given authority to 
countermand a decision of the pilot-in-command of an aircraft based on 
safety.
    (ii) If an alleged violation of a provision of this part has already 
occurred, and the CRO agrees that a violation has occurred, the CRO 
shall provide to the complainant a written statement setting forth a 
summary of the facts and what steps, if any, the carrier proposes to 
take in response to the violation.
    (iii) If the CRO determines that the carrier's action does not 
violate a provision of this part, the CRO shall provide to the 
complainant a written statement including a summary of the facts and the 
reasons, under this part, for the determination.
    (iv) The statements required to be provided in paragraph (a)(5) of 
this section shall inform the complainant of his or her right to pursue 
DOT enforcement action under this section. This statement shall be 
provided in person to the complainant at the airport if possible; 
otherwise, it shall be forwarded to the complainant within 10 calendar 
days of the complaint.
    (b) Each carrier shall establish a procedure for resolving written 
complaints alleging violation of the provisions of this part.
    (1) A carrier is not required to respond to a complaint postmarked 
more than 45 days after the date of the alleged violation.
    (2) A written complaint shall state whether the complainant has 
contacted a CRO in the matter, the name of the CRO and the date of the 
contact, if

[[Page 440]]

available, and include any written response received from the CRO.
    (3) The carrier shall make a dispositive written response to a 
written complaint alleging a violation of a provision of this part 
within 30 days of its receipt.
    (i) If the carrier agrees that a violation has occurred, the carrier 
shall provide to the complainant a written statement setting forth a 
summary of the facts and what steps, if any, the carrier proposes to 
take in response to the violation.
    (ii) If the carrier denies that a violation has occurred, the 
response shall include a summary of the facts and the carrier's reasons, 
under this part, for the determination.
    (iii) The statements required to be provided in paragraph (b)(3) of 
this section shall inform the complainant of his or her right to pursue 
DOT enforcement action under this section.
    (c) Any person believing that a carrier has violated any provision 
of this part may contact the following office for assistance: Department 
of Transportation, Office of Consumer Affairs, 400 7th Street, SW., 
Washington, DC 20590, (202) 366-2220.
    (d) Any person believing that a carrier has violated any provision 
of this part may file a formal complaint under the applicable procedures 
of 14 CFR part 302.



Sec. 382.70  Disability-related complaints received by carriers.

    (a) For the purposes of this section, a disability-related complaint 
means a specific written expression of dissatisfaction received from, or 
submitted on behalf, of an individual with a disability concerning a 
difficulty associated with the person's disability, which the person 
experienced when using or attempting to use an air carrier's or foreign 
air carrier's services.
    (b) This section applies to certificated U.S. carriers and foreign 
air carriers operating to, from, and in the United States, conducting 
passenger operations with at least one aircraft having a designed 
seating capacity of more than 60 passengers. Foreign air carriers are 
covered by this section only with respect to disability-related 
complaints associated with any flight segment originating or terminating 
in the United States.
    (c) Carriers shall categorize disability-related complaints that 
they receive according to the type of disability and nature of 
complaint. Data concerning a passenger's disability must be recorded 
separately in the following areas: vision impaired, hearing impaired, 
vision and hearing impaired, mentally impaired, communicable disease, 
allergies (e.g., food allergies, chemical sensitivity), paraplegic, 
quadriplegic, other wheelchair, oxygen, stretcher, other assistive 
device (cane, respirator, etc.), and other disability. Data concerning 
the alleged discrimination or service problem related to the disability 
must be separately recorded in the following areas: refusal to board, 
refusal to board without an attendant, security issues concerning 
disability, aircraft not accessible, airport not accessible, advance 
notice dispute, seating accommodation, failure to provide adequate or 
timely assistance, damage to assistive device, storage and delay of 
assistive device, service animal problem, unsatisfactory information, 
and other.
    (d) Carriers shall submit an annual report summarizing the 
disability-related complaints that they received during the prior 
calendar year using the form specified in Appendix A to this Part. The 
first report shall cover complaints received during calendar year 2004 
and shall be submitted to the Department of Transportation by January 
25, 2005. Carriers shall submit all subsequent reports on the last 
Monday in January of that year for the prior calendar year. All 
submissions must be made through the World Wide Web except for 
situations where the carrier can demonstrate that it would suffer undue 
hardship if it were not permitted to submit the data via paper copies, 
disks, or email, and DOT has approved an exception. All fields in the 
form must be completed; carriers are to enter ``0'' where there were no 
complaints in a given category. Each annual report must contain the 
following certification signed by an authorized representative of the 
carrier: ``I, the undersigned, do certify that this report has been 
prepared under my direction in accordance with the regulations in

[[Page 441]]

14 CFR Part 382. I affirm that, to the best of my knowledge and belief, 
this is a true, correct, and complete report.'' Electronic signatures 
will be accepted.
    (e) Carriers shall retain correspondence and record of action taken 
on all disability-related complaints for three years after receipt of 
the complaint or creation of the record of action taken. Carriers must 
make these records available to Department of Transportation officials 
at their request.
    (f)(1) In a code-share situation, each carrier shall comply with 
paragraphs (c) through (e) of this section for--
    (i) Disability-related complaints it receives from or on behalf of 
passengers with respect to difficulties encountered in connection with 
service it provides;
    (ii) Disability-related complaints it receives from or on behalf of 
passengers when it is unable to reach agreement with its code-share 
partner as to whether the complaint involves service it provides or 
service its code-share partner provides; and
    (iii) Disability-related complaints forwarded by another carrier or 
governmental agency with respect to difficulties encountered in 
connection with service it provides.
    (2) Each carrier shall also forward to its code-share partner 
disability-related complaints the carrier receives from or on behalf of 
passengers with respect to difficulties encountered in connection with 
service provided by its code-sharing partner.
    (g) Each carrier, except for carriers in code-share situations, 
shall comply with paragraphs (c) through (e) of this section for 
disability-related complaints it receives from or on behalf of 
passengers as well as disability-related complaints forwarded by another 
carrier or governmental agency with respect to difficulties encountered 
in connection with service it provides.
    (h) Carriers that do not submit their data via the Web shall use the 
disability-related complaint data form specified in appendix A to this 
part when filing their annual report summarizing the disability-related 
complaints they received. The report shall be mailed, by the dates 
specified in paragraph (d) of this section, to the following address: 
U.S. Department of Transportation, Aviation Consumer Protection 
Division, 400 7th Street, SW., Room 4107, C-75, Washington, DC 20590.

[68 FR 40494, July 8, 2003]

[[Page 442]]



Sec. Appendix A to Part 382--Disability Complaint Reporting Form

[GRAPHIC] [TIFF OMITTED] TR08JY03.017


[[Page 443]]


[GRAPHIC] [TIFF OMITTED] TR08JY03.018


[68 FR 40495, July 8, 2003]

[[Page 444]]



PART 383_CIVIL PENALTIES--Table of Contents




Sec.
383.1 Basis and purpose.
383.2 Amount of penalty.

    Authority: Sec. 503, Pub. L. 108-176, 117 Stat. 2490.

    Source: 69 FR 41423, July 9, 2004, unless otherwise noted.



Sec. 383.1  Basis and purpose.

    (a) Basis. This part implements the civil penalty provisions of 
Vision 100--Century of Aviation Reauthorization Act (Pub. L. 108-176; 
117 Stat. 2490, December 12, 2003, section 503) (Vision 100). Because 
this statute revises or reaffirms all civil penalty provisions under 49 
U.S.C. 46301, no further adjustments to account for inflation are 
required under the terms of Federal Civil Penalties Inflation Adjustment 
Act of 1990 (Pub. L. 101-410, 104 Stat. 890) and the Debt Collection 
Improvement Act of 1996 (Pub. L. 104-134, section 31001). The latter 
requires that federal agencies adjust civil penalties at least every 
four years to reflect any inflation which may have occurred.
    (b) Purpose. This part incorporates the civil penalty liability 
amounts prescribed in 49 U.S.C. 46301(a), as modified by Vision 100.



Sec. 383.2  Amount of penalty.

    Civil penalties payable to the U.S. Government for violations of 
Title 49, Chapters 401 through 421, pursuant to 49 U.S.C. 46301(a) as 
revised by Vision 100, are as follows:
    (a) A general civil penalty of not more than $25,000 (or $1,100 for 
individuals or small businesses) applies to violations of statutory 
provisions and rules or orders issued under those provisions, other than 
those listed in paragraph (b) of this section, (see 49 U.S.C. 
46301(a)(1));
    (b) With respect to small businesses and individuals, 
notwithstanding the general $1,100 civil penalty, the following civil 
penalty limits apply:
    (1) A maximum civil penalty of $10,000 applies for violations of 
most provisions of Chapter 401, including the anti-discrimination 
provisions of sections 40127 (general provision), and 41705 
(discrimination against the disabled) and rules and orders issued 
thereunder (see 49 U.S.C. 46301 (a)(5) (A));
    (2) A maximum civil penalty of $5,000 applies for violations of 
section 41719 and rules and orders issued thereunder (see 49 U.S.C. 
46301 (a)(5)(C)); and
    (3) A maximum civil penalty of $2,500 applies for violations of 
section 41712 or consumer protection rules or orders (see 49 U.S.C. 
46301 (a)(5)(D)).

[[Page 445]]



                        SUBCHAPTER E_ORGANIZATION





PART 385_STAFF ASSIGNMENTS AND REVIEW OF ACTION UNDER ASSIGNMENTS--Table of Contents




                      Subpart A_General Provisions

Sec.
385.1 Definitions.
385.2 Applicability.
385.3 Scope of staff action.
385.4 Form of staff action.
385.5 Procedures prescribed in other regulations.
385.6 Referral to the Reviewing Official.
385.7 Exercise of authority by superiors.
385.8 Exercise of authority in ``acting'' capacity.

           Subpart B_Assignment of Functions to Staff Members

385.10 Authority of Chief Administrative Law Judge, Office of Hearings.
385.11 Authority of the Administrative Law Judges, Office of Hearings.
385.12 Authority of the Director, Office of Aviation Analysis.
385.13 Authority of the Director, Office of International Aviation.
385.14 Authority of the General Counsel.
385.15 Authority of the Deputy General Counsel.
385.16 Heads of Offices and Assistant General Counsels.
385.17 Authority of the Assistant General Counsel for Regulation and 
          Enforcement.
385.18 Authority of the Chief, Coordination Section, Documentary 
          Services Division.
385.19 Authority of the Director, Office of Aviation Information, Bureau 
          of Transportation Statistics.
385.20 Authority of the Inspector General.
385.21 Authority of the Chief, Accounting Division, Office of Budget and 
          Policy, Federal Transit Administration.

              Subpart C_Procedure on Review of Staff Action

385.30 Persons who may petition for review.
385.31 Petitions for review.
385.32 Effective date of staff action.
385.33 Review by the staff.
385.34 Decision by the Reviewing Official.

    Authority: 49 U.S.C. Subtitle I, Chapters 401, 411, 413, 415, 417.

    Source: Docket No. T-1, 49 FR 50985, Dec. 31, 1984, unless otherwise 
noted.



                      Subpart A_General Provisions



Sec. 385.1  Definitions.

    Department means Department of Transportation.
    Petition for review means a petition asking the appropriate 
Reviewing Official to exercise his or her discretionary right of review 
of staff action.
    Precedent means applicable judicial decisions and decisions by the 
Department, or by the Board where consistent with Department policy.
    Reviewing Official means the Assistant Secretary for Aviation and 
International Affairs, the General Counsel, or the Director of the 
Bureau of Transportation Statistics, as appropriate to the subject 
matter under review, but not with regard to Deputy General Counsel and 
Administrative Law Judge decisions made under this part.
    Staff action means the exercise of a function under Subparts I, II 
and IV of Subtitle VII of Title 49 of the United States Code 
(Transportation) by a staff member pursuant to assignment under this 
part.
    Staff members means officers and employees of the Department who are 
assigned authority under this part.
    Statute means Subtitle VII of Title 49 of the United States Code 
(Transportation).

[Docket No. T-1, 49 FR 50985, Dec. 31, 1984, as amended by Amdt. 1-261, 
59 FR 10061, Mar. 3, 1994; 60 FR 66726, Dec. 26, 1995; Doc. No. OST-96-
1268, 61 FR 19167, May 1, 1996]



Sec. 385.2  Applicability.

    This part describes the organization of the Department insofar as, 
pursuant to authority conferred on it by section 40113 of the Statute, 
the Department has adopted rules herein or elsewhere which make 
continuing assignments of authority with respect to any of its functions 
of making orders or other determinations, many of which are not required 
to be made on an evidentiary record upon notice and hearing or which are 
not the subject of contest, and Department personnel have been assigned 
to perform such functions.

[[Page 446]]

Delegations by the Secretary of Transportation to Secretarial Officers 
and the Director, Bureau of Transportation Statistics (BTS) of functions 
under Subparts I, II, and IV of the Statute appear in 49 CFR part 1. 
This part also sets forth the procedures governing discretionary review 
by the appropriate Reviewing Official of action taken under such 
assignments. Nothing in this part shall be construed as precluding the 
Department from issuing, by appropriate order, temporary delegations of 
authority with respect to any functions described in this part or with 
respect to any other functions which can be lawfully delegated.

[Docket No. T-1, 49 FR 50985, Dec. 31, 1984, as amended at 60 FR 66726, 
Dec. 26, 1995; Doc. No. OST-96-1268, 61 FR 19167, May 1, 1996]



Sec. 385.3  Scope of staff action.

    Applications for relief which, pursuant to this part, may be granted 
by staff members under assigned authority, and proceedings on such 
requests shall be governed by applicable rules in the same manner as if 
no assignment had been made (see Sec. 385.5). In such proceedings, each 
staff member may determine any procedural matters which may arise, 
including, inter alia, service of documents on additional persons; 
filing of otherwise unauthorized documents; waivers of procedural 
requirements; requests for hearing; requests for additional information; 
dismissal of applications upon the applicant's request, moot 
applications, or incomplete or otherwise defective applications; and 
extensions of time. Such determinations, except those which would 
terminate the matter, shall be subject to review only in connection with 
review of the staff member's decision on the merits. The dismissal of 
incomplete or otherwise defective applications under authority set forth 
in this part shall be without prejudice except where under otherwise 
applicable law the time for making application has run out or where the 
defect is not corrected within a reasonable time fixed by the staff 
member. Under the authority assigned to the staff as set forth in this 
part to approve, disapprove, grant, or deny, relief may be granted or 
denied in part and grants may be made subject to lawful and reasonable 
conditions. Moreover, where applicable, the authority to grant relief 
also includes authority to renew or extend an existing authorization.

[Doc. T-1, 49 FR 50985, Dec. 31, 1984; Amdt. 1, 50 FR 7170, Feb. 21, 
1985]



Sec. 385.4  Form of staff action.

    Unless otherwise specified, staff action shall be by order or 
informal writing (letters, telegrams, decision marked on copy of 
application form, etc.). Such orders or informal writings shall contain 
a recital that action is taken pursuant to authority assigned herein, 
shall, in cases where there are ``parties or interveners,'' or where 
there may be an adverse effect upon a person with a substantial 
interest, contain a brief reference to the right of aggrieved parties to 
petition the Reviewing Official for review pursuant to applicable 
procedural rules, including a statement of the time within which 
petitions must be filed (Sec. 385.51); shall state whether the filing 
of a petition shall preclude the action from becoming effective; and 
shall be in the name of the person exercising the assigned function. 
They shall contain all findings, determinations and conclusions which 
would be required or appropriate if they were issued by the Secretary. 
Upon request, the appropriate Department Official shall attest as 
Departmental action orders or informal writings issued pursuant to this 
part which have become the action of the Department (Sec. 385.52).

[Doc. T-1, 49 FR 50985, Dec. 31, 1984; Amdt. 1, 50 FR 7170, Feb. 21, 
1985]



Sec. 385.5  Procedures prescribed in other regulations.

    Procedures set forth in this part do not supersede procedures 
applicable to matters on which decision has been assigned unless 
otherwise specifically provided herein: Provided, however, That any 
provisions in other regulations which provide for reconsideration of 
nonhearing determinations are not applicable to decisions made under 
authority assigned herein or to decisions made upon review thereof by 
the Reviewing Official.

[[Page 447]]



Sec. 385.6  Referral to the Reviewing Official.

    When the staff member finds that the public interest so requires, or 
that, with respect to other than matters requiring immediate action as 
hereafter specified, there will be insufficient time for discretionary 
review of his or her decision upon petition, the staff member shall, in 
lieu of exercising the authority, submit the matter to the Reviewing 
Official for decision. In any case in which the staff member finds that 
immediate action is required with respect to any matter assigned herein, 
the disposition of which is governed by prior precedent and policy, the 
staff member may take appropriate action and specify that the filing of 
a petition for review shall not preclude such action from becoming 
effective.



Sec. 385.7  Exercise of authority by superiors.

    Any assignment of authority to a staff member other than the Chief 
Administrative Law Judge, the Administrative Law Judge, and the Deputy 
General Counsel, shall also be deemed to be made, severally, to each 
such staff member's respective superiors. In accordance with the 
Department's principle of management responsibility, the superior may 
choose to exercise the assigned power personally. Moreover, the 
Secretary may at any time exercise any authority assigned herein.



Sec. 385.8  Exercise of authority in ``acting'' capacity.

    Unless the assignment provides otherwise, staff members serving in 
an ``acting'' capacity may exercise the authority assigned to the staff 
members for whom they are acting.



           Subpart B_Assignment of Functions to Staff Members



Sec. 385.10  Authority of Chief Administrative Law Judge, Office of Hearings.

    The Chief Administrative Law Judge has authority to:
    (a) Consolidate, upon recommendation of the Director, Office of 
International Aviation (or such staff member of the Office of 
International Aviation as he or she may designate), into one proceeding 
cases involving the investigation of a tariff or of complaints concerned 
with related tariffs.
    (b) With respect to matters to be decided after notice and hearing:
    (1) Dismiss applications or complaints (except those falling under 
subpart D of part 302 of this chapter (Procedural Regulations)) when 
such dismissal is requested or consented to by the applicant or 
complainant, or where such party has failed to prosecute such 
application or complaint;
    (2) Dismiss proceedings upon his or her finding that the proceeding 
has become moot or that no further basis for continuation exists; and
    (3) Dismiss an application subject to dismissal as stale under part 
302 of this chapter.

[49 FR 50985, Dec. 31, 1984, as amended at 55 FR 20448, May 17, 1990; 65 
FR 6457, Feb. 9, 2000]



Sec. 385.11  Authority of the Administrative Law Judges, Office of Hearings.

    The Administrative Law Judges, Office of Hearings, have authority to 
take the following actions in matters to which they are respectively 
assigned:
    (a) Grant or deny intervention in formal proceedings.
    (b) With respect to matters to be decided after notice and hearing, 
dismiss applications or complaints (except those falling under subpart D 
of part 302 of this chapter (Procedural Regulations)) when such 
dismissal is requested or consented to by the applicant or complainant, 
or where such party has failed to prosecute such application or 
complaint.
    (c) Grant requests for consolidation of applications for route 
authority within the scope of the proceeding before him or her, and deny 
requests for consolidation of applications for route authority not 
within the scope of the proceeding.
    (d) Approve or disapprove proposed settlements of enforcement 
proceedings submitted under Sec. 302.215 of this chapter.

[Docket No. T-1, 49 FR 50985, Dec. 31, 1984, as amended at 65 FR 6457, 
Feb. 9, 2000]

[[Page 448]]



Sec. 385.12  Authority of the Director, Office of Aviation Analysis.

    The Director, Office of Aviation Analysis, has authority:
    (a) With respect to applications filed under section 41102 to engage 
in interstate or foreign scheduled or charter air transportation, 
section 41103 to engage in all-cargo air transportation, or section 
41738 to engage in certain commuter air transportation:
    (1) To issue an order stating the Department's intention to process 
the application through show-cause procedures or other expedited 
procedures, where that course of action is clear under current policy 
and precedent.
    (2) To issue an order to show cause proposing to grant such 
application in those cases where no objections to the application have 
been filed, and where the Department has already found the applicant to 
be fit, willing and able to provide service of the same basic scope and 
character.
    (3) To issue an order, subject to any Presidential review required 
under section 41307 of the Statute, making final an order to show cause 
issued under paragraph (a)(2) of this section, where no objections to 
the order to show cause have been filed.
    (4) To issue an order dismissing an application:
    (i) When dismissal is requested or consented to by the applicant;
    (ii) For lack of prosecution; or
    (iii) When the application has become moot.
    (5) To review Air Carrier Certificates and Operations Specifications 
issued by the Federal Aviation Administration to carriers that have been 
granted certificate or commuter air carrier authority, and information 
concerning those carriers' fitness to operate under that authority that 
emerged following the issuance of orders establishing their fitness, 
and--
    (i) To amend orders issuing the certificate or commuter air carrier 
authority to advance the effective dates of the authority if the review 
is satisfactory;
    (ii) To stay the effectiveness of such orders for up to 30 days if 
the review is unsatisfactory;
    (iii) To lift the stay of effectiveness imposed under paragraph 
(a)(5)(ii) of this section when the unsatisfactory conditions that 
required issuance of the stay have been resolved; or
    (iv) To issue notices announcing the effective date of the 
certificate or commuter air carrier authority.
    (b) To approve or deny applications of air carriers:
    (1) For exemptions from section 41102 or 41103 of the Statute, and 
from orders issued thereunder, and from applicable regulations under 
this chapter where the course of action is clear under current policy or 
precedent.
    (2) For waivers of the Department's filing fee requirements under 
part 389 of this chapter, in accordance with current policy or 
precedent.
    (3) For relief under section 40109 of the Statute to hold out, 
arrange, and coordinate the operation of air ambulance flights as 
indirect air carriers in accordance with established precedent.
    (c) To waive the deadlines in Sec. 377.10(c) of this chapter for 
filing applications for the renewal of temporary authorizations when, in 
the Director's judgment, the public interest would be served. The 
provisions of Sec. 377.10(d) of this chapter shall apply in the same 
manner as to a timely filed application.
    (d) With respect to air carrier names:
    (1) To register names and trade names of certificated and commuter 
air carriers pursuant to part 215 of this chapter.
    (2) To reissue certificates issued under sections 41102 or 41103 of 
the Statute when revisions thereof are necessitated by a change in the 
name of a carrier, provided that no issue of substance concerning the 
operating authority of the carrier is involved.
    (e) To approve, deny, or cancel registrations filed with the 
Department by air taxi operators pursuant to part 298 of this chapter.
    (f) With respect to Canadian charter air taxi operations:
    (1) To approve applications for registration, or require that a 
registrant submit additional information, or reject an application for 
registration for failure to comply with part 294 of this chapter.
    (2) To cancel, revoke, or suspend the registration of any Canadian 
charter air taxi operator using small aircraft

[[Page 449]]

registered under part 294 of this chapter that:
    (i) Filed with the Department a written notice that it is 
discontinuing operations;
    (ii) No longer is designated by its home government to operate the 
services contemplated by its registration;
    (iii) Holds a foreign air carrier permit under section 41302 to 
operate large aircraft charters between the United States and Canada;
    (iv) Fails to keep its filed certificate of insurance current;
    (v) No longer is substantially owned or effectively controlled by 
persons who are:
    (A) Citizens of Canada;
    (B) The Government of Canada; or
    (C) A combination of both; or
    (vi) No longer holds current effective Operations Specifications 
issued by the FAA.
    (3) To grant or deny requests for a waiver of part 294 of this 
chapter, where grant or denial of the request is in accordance with 
current policy or precedent.
    (g) To approve certificates of insurance filed with the Department 
on behalf of U.S. and foreign air carriers in accordance with the 
provisions of part 205 of this chapter.
    (h) With respect to foreign air freight forwarders:
    (1) To approve applications for registration, or require that a 
registrant submit additional information, or reject an application for 
registration for failure to comply with part 297 of this chapter.
    (2) To cancel the registration of any foreign air freight forwarder 
or foreign cooperative shippers association that files a written notice 
with the Department indicating the discontinuance of common carrier 
activities.
    (3) To exempt the registrant from the requirement contained in Sec. 
297.20 of this chapter that substantial ownership and effective control 
reside in citizens of the country that the applicant claims as its 
country of citizenship, where the course of action is clear under 
current precedent or policies.
    (i) With respect to charter operations:
    (1) To grant or deny requests for waiver of parts 207, 208, 212, 
372, and 380 of this chapter, where grant or denial of the request is in 
accordance with established precedent.
    (2) To approve or disapprove direct air carrier escrow agreements 
filed pursuant to parts 207, 208, and 212 of this chapter.
    (3) To reject or accept Public Charter prospectuses filed under part 
380 of this chapter.
    (4) With respect to the procedures for the registration of foreign 
charter operators under subpart F of part 380 of this chapter:
    (i) To approve applications for registration, or require that a 
registrant submit additional information, or reject an application for 
registration for failure to comply with part 380 of this chapter.
    (ii) To notify the applicant that its application will require 
further analysis or procedures, or is being referred to the Assistant 
Secretary for Aviation and International Affairs for formal action.
    (iii) To cancel the registration of a foreign charter operator if it 
files a written notice with the Department that it is discontinuing its 
charter operations.
    (iv) To waive provisions of subpart F of part 380 of this chapter.
    (j) With respect to mail rates:
    (1) To issue show-cause orders proposing to make modifications of a 
technical nature in the mail rate formula applicable to temporary or 
final service mail rate orders.
    (2) To issue final orders establishing temporary and final service 
mail rates:
    (i) In those cases where no objection has been filed following 
release of the show-cause order, and where the rates established are the 
same as those proposed in the show-cause order; and
    (ii) In those cases where it is necessary to make modifications of a 
technical nature in the rates proposed in the show-cause order.
    (3) To issue final orders amending mail rate orders of air carriers 
to reflect changes in the names of the carriers subject to the orders.
    (4) To issue a letter, in the case of air mail contracts filed with 
the Department under part 302 of this chapter against which no 
complaints have been filed, stating that the contract will not

[[Page 450]]

be disapproved by the Department and may become effective immediately.
    (k) With respect to essential air service proceedings:
    (1) To establish procedural dates.
    (2) To issue orders setting interim rates of compensation for 
carriers required to provide essential air service.
    (3) To issue orders approving a carrier's alternate service pattern 
if:
    (i) The resulting level of service at the eligible place would be 
equal to or greater than the level of service earlier determined to be 
essential for that place;
    (ii) The community concerned does not object to the carrier's 
implementation of the alternate service pattern; and
    (iii) The carrier is not receiving a subsidy for the service or 
implementation of the alternate service pattern would not increase the 
carrier's subsidy.
    (4) To issue orders adjusting the operational and/or financial unit 
rates of the payout formula for a carrier receiving subsidy under 
section 41732 of the Statute where the adjustment will not increase the 
total amount of compensation that the carrier will receive.
    (5) To renew, up to five times in succession, an order under section 
41734 of the Statute to an air carrier to continue providing essential 
air service while the Department attempts to find a replacement carrier.
    (6) To request service and subsidy proposals from carriers 
interested in providing essential air service to an eligible place that 
is not receiving essential air service and for which no appeal of its 
essential air service determination is pending.
    (7) To request service and subsidy proposals from carriers 
interested in providing essential air service when no proposals were 
filed in response to a previous request for proposals.
    (8) To issue final orders establishing interim or final subsidy 
rates under section 41732 or final adjustments of compensation for 
continued service under section 41732 in those cases where no objection 
has been filed to a show-cause order, and where the rates established 
are the same as or less than those proposed in the approved show-cause 
order.
    (9) With respect to provisions for terminations, suspensions, or 
reductions of service under part 323 of this chapter:
    (i) To require any person who files a notice, objection, or answer 
to supply additional information.
    (ii) To require service of a notice, objection, or answer upon any 
person.
    (iii) To accept late-filed objections or answers, upon motion, for 
good cause shown.
    (iv) To extend the time for filing objections for answers, when the 
initial notice has been filed earlier than required under Sec. 323.5.

[Doc. No. OST-96-1268, 61 FR 19167, May 1, 1996, as amended at 70 FR 
25773, May 16, 2005]



Sec. 385.13  Authority of the Director, Office of International Aviation.

    The Director, Office of International Aviation, has authority to:
    (a) Approve or deny applications for exemptions, where the course of 
action is clear under current policy or precedent:
    (1) For air carriers, from chapter 411 of the Statute and from 
certificates and orders issued under that chapter;
    (2) For foreign air carriers, from section 41301 and from permits 
and related orders issued under chapter 413;
    (3) For air carriers and foreign air carriers, from chapter 415 and 
from orders issued and tariffs filed under that chapter; and
    (4) From orders and applicable regulations under this chapter.
    (b) With respect to applications for certificates of public 
convenience and necessity under section 41102 and foreign air carrier 
permits under section 41302:
    (1) Issue an order to show cause proposing to grant such application 
in those cases where no objections to the application have been filed, 
and the applicant has already been found fit, willing, and able by the 
Department to provide service of the same basic scope and character;
    (2) Issue an order stating the Department's intention to process the 
application through show-cause procedures;
    (3) Issue an order, subject to Presidential review under section 
41307, to make final an order to show cause

[[Page 451]]

issued under the circumstances of paragraph (b)(1) of this section, 
where no objections to the show-cause order have been filed; and
    (4) Reissue certificates of public convenience and necessity and 
foreign air carrier permits when revisions are necessitated by a change 
in the name of the carrier or of points specified, provided that no 
issue of substance concerning the operating authority of a carrier is 
involved.
    (c) With respect to an application under section 41102 for a 
certificate to engage in foreign scheduled air transportation, issue an 
order instituting an investigation of the applicant's fitness and other 
issues related to the application, where no person has already filed an 
objection to the application and the investigation will be conducted by 
oral hearing procedures.
    (d) Issue an order to show cause why a foreign air carrier permit 
should not be revoked under section 41304 when:
    (1) The government of the permit holder's home country represents 
that it does not object to revocation of the permit; and
    (2) The permit holder--
    (i) Has ceased operations; or
    (ii) No longer holds valid authority from its own government to 
operate the services in its permit.
    (e) Approve or disapprove requests by foreign air carriers for 
authorizations provided for, or waivers of restrictions contained, in 
any agreement or in any permit or order of the Department, when no 
person disclosing a substantial interest objects or where the course of 
action is clear under current policy or precedent.
    (f) Waive the deadlines in Sec. 377.10(c) of this chapter for 
filing applications for renewal of unexpired temporary authorizations 
when, in the Director's judgment, the public interest would be served. 
The provisions of Sec. 377.10(d) of this chapter shall apply in the 
same manner as to a timely filed application.
    (g) Extend the time allowed for action on a complaint of unfair or 
discriminatory practices, filed under section 41310, for an additional 
period or periods of 30 days each, not to exceed the 180th day after 
filing unless that deadline has been waived by the complainant.
    (h) Grant or deny applications for statements of authorization under 
parts 207, 208, and 212 of this chapter, and requests for waivers of the 
requirements of parts 207, 208, and 212 of this chapter, where grant or 
denial of the request is in accordance with current policy or precedent.
    (i) Approve or disapprove charter trips by foreign air carriers, and 
those by air carriers that are predominantly in foreign air 
transportation, when prior authorization is required by:
    (1) Any provision of this chapter; or
    (2) An order of the Department.
    (j) Approve or disapprove requests by foreign air carriers for 
waivers of the 30-day advance filing requirement for proposed schedules 
whose filing the Department has ordered under part 213 of this chapter.
    (k) Approve, when no person disclosing a substantial interest 
objects, or disapprove requests by foreign air carriers for special 
authorizations provided for in part 216 of this chapter.
    (l) With respect to applications for statements of authorization to 
conduct intermodal cargo services under part 222 of this chapter:
    (1) Approve applications under part 222 of this chapter where no 
person with a substantial interest raises objections citing specific 
facts of nonreciprocity or of restraints on competition by U.S. air 
carriers;
    (2) Reject applications under part 222 of this chapter where there 
is no agreement by the United States permitting the proposed services; 
or
    (3) Require that an applicant under part 222 of this chapter submit 
additional information.
    (m) Approve or disapprove issuance of foreign aircraft permits 
provided for in part 375, subparts E and H, of this chapter.
    (n) Grant or deny applications of foreign air carriers for renewal 
of emergency exemptions granted under 49 U.S.C. 40109(g).
    (o) Grant or deny applications by air carriers and foreign air 
carriers under part 389 of this chapter for waivers of the Department's 
filing fee requirements, in accordance with current policy or precedent.

[[Page 452]]

    (p) Determine matters in proceedings under section 40109 and 
chapters 411, 413 and 415, that have not been set for oral evidentiary 
hearing, in addition to those authorized under Sec. 385.3, such matters 
to include, inter alia, filing times, service of documents, submissions 
of additional information, filing of otherwise unauthorized documents, 
access to information for which confidential treatment has been 
requested, rejection of incomplete or otherwise defective applications, 
and solicitation of applications for authority.
    (q) Approve or disapprove applications under part 223 of this 
chapter for permission to furnish free or reduced-rate foreign air 
transportation.
    (r) With respect to International Air Transport Association (IATA) 
agreements filed with the Department pursuant to sections 41309 and 
41308 of the Statute, or pursuant to Civil Aeronautics Board Order E-
9305 of June 15, 1955:
    (1) Issue orders approving or disapproving IATA agreements relating 
to fare and rate matters under section 41309, and granting or denying 
antitrust immunity under section 41308, where the course of action is 
clear under current policy and precedent.
    (2) Issue orders describing filed agreements, establishing 
procedural dates for submission of justification, comments and replies, 
which support or oppose agreements, and prescribing the particular types 
of data to be included in such submission.
    (s) Reject any tariff, supplement, or revised page that is filed by 
any U.S. air carrier or foreign air carrier, and that is subject to 
rejection because it is not consistent with chapter 415 of the Statute 
or with part 221 or 222 of this chapter. Where a tariff, supplement or 
loose-leaf page is filed on more than 60 days' notice and is not 
rejected within the first 30 days (including the filing date), it shall 
not be rejected after such 30-day period under this authority unless the 
issuing carrier is given an opportunity to remove the cause for 
rejection by the effective date, by special tariff permission if 
necessary, and fails to take such corrective action.
    (t) Approve or disapprove any application for special tariff 
permission under part 221, subpart P, of this chapter to make tariff 
changes upon less than statutory notice.
    (u) Approve or disapprove applications for waiver of part 221 of 
this chapter.
    (v) Institute an investigation of, or institute an investigation and 
suspend the effectiveness of, a tariff or change in a tariff which:
    (1) Is substantially similar to a prior tariff under investigation 
or suspension; and
    (2) Is filed by or on behalf of one or more of the parties to the 
prior tariff; and
    (3) Is filed within 90 days after the expiration, modification, or 
cancellation of the prior tariff, or within 90 days after the effective 
date of an order requiring its cancellation or modification.
    (w) In instances when an investigation of a tariff is pending, or 
the tariff is under suspension, or when a complaint requesting 
investigation or suspension of a tariff has been filed:
    (1) Permit cancellation of the tariff; or
    (2) If the grounds for the investigation or complaint have been 
removed through cancellation, expiration or modification of the tariff, 
either dismiss the investigation or complaint, or terminate the 
suspension.
    (x) Extend the period of suspension of a tariff when the proceedings 
concerning the lawfulness of such tariff cannot be concluded before the 
expiration of the existing suspension period, provided that the 
aggregate of such extensions may not be for a longer period than 
permitted under section 41509.
    (y) Cancel the suspension of and/or dismiss an investigation of a 
tariff relating to service predominantly in foreign air transportation 
where the course of action is clear under current policy and precedent.

[Doc. No. OST-96-1268, 61 FR 19169, May 1, 1996]



Sec. 385.14  Authority of the General Counsel.

    (a) The General Counsel has authority to:
    (1) Issue proposed or final regulations for the purpose of making 
editorial

[[Page 453]]

changes or corrections in the Department's rules and regulations to 
carry out Titles IV and X of the Act, with the concurrence of the staff 
offices primarily responsible for the parts or sections involved: 
Provided, That any final regulation so issued shall have an effective 
date not less than 20 days after its date of publication in the Federal 
Register, and shall include a brief reference to the review procedures 
established in subpart C of this part.
    (2) Where a petition for review is duly filed, reverse any 
rulemaking action taken by him or her pursuant to paragraph (a) of this 
section by withdrawing a proposed or final regulation issued thereunder, 
in which case the petition for review will not be submitted to the 
Reviewing Official involved. (Such a withdrawal is not subject to the 
review procedures of subpart C of this part.)
    (3) Issue, upon request therefor, interpretations of facts bearing 
upon disqualifications of former members and employees, and Department 
employees under Sec. 300.13 or Sec. 300.14 of this chapter (Procedural 
Regulations).
    (4) Issue orders deferring action until after oral argument on 
motions submitted by parties subsequent to the issuance of an 
Administrative Law Judge's initial or recommended decision.
    (5) Reissue existing regulations for the purpose of incorporating 
prior amendments adopted by the Department.
    (b) To the extent that a hearing case is involved, the authority 
assigned to the General Counsel in paragraph (a) of this section shall 
not be reassigned to the Deputy General Counsel or exercised by the 
Deputy General Counsel in the capacity of Acting General Counsel.

[Doc. T-1, 49 FR 50985, Dec. 31, 1984; Amdt. 1, 50 FR 7170, Feb. 21, 
1985. Redesignated by Doc. No. OST-96-1268, 61 FR 19170, May 1, 1996]



Sec. 385.15  Authority of the Deputy General Counsel.

    The Deputy General Counsel has authority to:
    (a) Compromise any civil penalties being imposed in enforcement 
cases.
    (b) Issue orders initiating and terminating informal nonpublic 
investigations under part 305 of this chapter (Procedural Regulations).
    (c) Issue orders requiring air carriers to prepare and submit within 
a specified reasonable period, special reports, copies of agreements, 
records, accounts, papers, documents, and specific answers to questions 
upon which information is deemed necessary. Special reports shall be 
under oath whenever the Deputy General Counsel so requires.
    (d) Institute and prosecute in the proper court, as agent of the 
Department, all necessary proceedings for the enforcement of the 
provisions of the act or any rule, regulation, requirement, or order 
thereunder, or any term, condition, or limitation of any certificate or 
permit, and for the punishment of all violations thereof. Any action 
taken by the Deputy General Counsel, pursuant to the authority of this 
section shall not be subject to the review procedures of this part.
    (e) Make findings regarding the reasonable necessity for the 
application of the Department's authority to obtain access to lands, 
buildings and equipment, and to inspect, examine and make notes and 
copies of accounts, records, memorandums, documents, papers and 
correspondence of persons having control over, or affiliated with, any 
person subject to regulation under Titles IV or X of the Act, through 
issuance of an appropriate order, letter or other transmittal.
    (f) Issue orders denying or granting conditional or complete 
confidential treatment of information supplied by any person to the 
Office of Aviation Enforcement and Proceedings. Confidential treatment 
may only be granted upon a finding that, if the information were in the 
Department's possession and a Freedom of Information Act (FOIA) request 
were made for the information:
    (1) At the time of the confidentiality request, the FOIA request 
would be denied on the basis of one or more of the FOIA exemptions; and
    (2) At any later time, the FOIA request would also be denied, absent 
a material change in circumstances (which may include a demonstration

[[Page 454]]

that the asserted exemption does not apply).

[Docket No. T-1, 49 FR 50985, Dec. 31, 1984. Redesignated by Doc. No. 
OST-96-1268, 61 FR 19170, May 1, 1996]



Sec. 385.16  Heads of Offices and Assistant General Counsels.

    The heads of Offices and Assistant General Counsels have the 
authority to:
    (a) Grant requests for permission to withdraw petitions, 
applications, motions, complaints, or other pleadings or documents which 
the respective Office has responsibility for processing where such 
authority has not otherwise been assigned in this regulation.
    (b) Grant extensions of time for filing of documents or reports 
which are required to be filed by regulation or Department order and 
which reports or documents the respective Office has the responsibility 
for processing.
    (c) Grant waivers of the environmental procedures set by Department 
order in any proceeding or portion of a proceeding dealing with 
environmental matters.
    (d) Establish procedures on a case-by-case basis for environmental 
proceedings to ensure compliance with applicable law.

[Docket No. T-1, 49 FR 50985, Dec. 31, 1984. Redesignated by Doc. No. 
OST-96-1268, 61 FR 19170, May 1, 1996]



Sec. 385.17  Authority of the Assistant General Counsel for Regulation and Enforcement.

    The Assistant General Counsel for Regulation and Enforcement has 
authority to:
    (a) Call public meetings in pending rulemaking proceedings,
    (b) Issue a notice suspending the effective dates of final 
regulations issued by the General Counsel pending Departmental 
determination of review proceedings instituted thereon, whether by 
petition or upon order of the Department. (Such a notice is not subject 
to the review procedures of subpart C of this part.), and
    (c) Approve or disapprove, for good cause shown, requests to extend 
the time for filing comments on all proposed or final new or amended 
regulations, and requests to extend comment periods following the 
issuance of final rules.

[Docket No. T-1, 49 FR 50985, Dec. 31, 1984. Redesignated by Doc. No. 
OST-96-1268, 61 FR 19170, May 1, 1996]



Sec. 385.18  Authority of the Chief, Coordination Section, Documentary Services Division.

    The Chief, Coordination Section, Documentary Services Division, has 
the authority to coordinate and perform all administrative functions of 
the Department provided for in sections 2, 3 and 5 of Executive Order 
12597 issued May 13, 1987, except that this delegation shall not include 
the exercise of the authority delegated by the President to the 
Secretary by sections 2 and 5 of that Order to determine not to 
disapprove orders of the Department in certain cases.

[Amdt. 385-3, 52 FR 18905, May 20, 1987. Redesignated by Doc. No. OST-
96-1268, 61 FR 19170, May 1, 1996]



Sec. 385.19  Authority of the Director, Office of Aviation Information, Bureau of Transportation Statistics.

    The Director, Office of Aviation Information, Bureau of 
Transportation Statistics (BTS) has authority to:
    (a) Conduct all rulemaking proceedings concerning accounting, 
reporting, and record retention requirements for carrying out Subparts 
I, II, and IV of the Statute, except the issuance of final rules and the 
disposition of petitions for reconsideration.
    (b) Interpret the accounting, reporting, and record retention 
requirements used to carry out Subparts I, II, and IV of the Statute.
    (c) Waive any of the accounting, reporting, and record retention 
requirements upon a showing of the existence of such facts, 
circumstances or other grounds, and subject to such limitations or 
conditions as may be prescribed for waivers in the applicable 
regulations, unless such authority is otherwise specifically assigned.
    (d) Dismiss petitions for Department or BTS action with respect to 
accounting, reporting, and record retention matters when such dismissal 
is requested or consented to by the petitioner.

[[Page 455]]

    (e) Require special reports, documentation, or modifications to 
reports required by this chapter from any air carrier upon a 
determination that such reports or documentation or modifications are 
necessary to meet temporary information needs, assist in an evaluation 
of continued financial fitness, or comply with special information 
requests by Congress, Department officials, or another agency or 
component of the Federal Government.
    (f) Grant or deny requests by air carriers for extension of filing 
dates for reports required by subchapters A and D of this chapter.
    (g) Grant or deny requests by air carriers for substitution of their 
own forms, adaptation of Department forms, or use of ADP media to meet 
special needs where Department approval of such forms or ADP media is 
required by subchapter A of this chapter.
    (h) Determine the data necessary to complete the International Civil 
Aviation Organization reports required by U.S. Treaty; as provided in 
Order 81-3-120, establish any necessary supplemental reporting 
requirements; and dispose of petitions for extensions of filing dates or 
waivers with respect to the data required for such reports.
    (i) Grant or deny motions filed under Sec. 302.12 of this chapter 
requesting confidential treatment of aviation economic information or 
reports filed with BTS and place the decision in the motion's docket, 
which decision will be subject to review through a petition for 
reconsideration filed within ten days of issuance, to be acted upon by 
the Director, BTS.
    (j) Grant or deny requests filed under Sec. 241.22 of this chapter 
for confidential treatment of preliminary year-end financial reports.
    (k) Grant or deny requests filed under Sec. 248.5 of this chapter 
for confidential treatment of individual air carrier special reports.
    (l) Grant or deny requests for use of domestic and international 
service segment and market data in accordance with the limitations on 
the availability of these data contained in Sec. 241.19-6 of this 
chapter and Order 81-12-9.
    (m) Grant or deny requests for use of international Origin and 
Destination Survey statistics in accordance with the limitations on the 
availability of these data contained in Sec. 241.19-7 of this chapter.
    (n) Grant or deny requests for individual air carrier fuel data in 
accordance with the limitations on the availability of these data 
contained in paragraph (k) of the reporting instructions for Schedule P-
12(a), which are contained in Sec. 241.24 of this chapter.
    (o) Grant or deny requests for individual air carrier financial data 
in accordance with the limitation on the availability of these data 
contained in paragraph (d) of the reporting instructions for Schedule F-
1, which are contained in Sec. 298.62 of this chapter.
    (p) Grant or deny requests for individual air carrier financial data 
as reported on Schedule P-1(a) in accordance with Sec. 241.22(b)(3) of 
this chapter.

[53 FR 51751, Dec. 23, 1988, as amended at 60 FR 66726, 66727, Dec. 26, 
1995. Redesignated and amended by Doc. No. OST-96-1268, 61 FR 19170, May 
1, 1996; 65 FR 6457, Feb. 9, 2000]



Sec. 385.20  Authority of the Inspector General.

    The Inspector General has authority to:
    (a) Require special reports, including documentation, from any air 
carrier regarding audits and other examinations of carrier facilities, 
operations, and accounting and statistical records.
    (b)(1) For accounting purpose, make findings regarding the 
reasonable necessity for the application of the Department authority to 
obtain access to lands, buildings, and equipment, and to inspect, 
examine, and make notes and copies of accounts, records, documents, 
papers, and correspondence of persons having control over, or affiliated 
with, any person subject to regulation used to carry out titles IV and X 
of the Act through issuance of an appropriate order, letter, or other 
transmittal;
    (2) Authorize one or more auditors or special agents to conduct 
audits, inspections, and examinations and to make notes and copies in 
accordance with such findings.
    (c) Release to the carrier that is the subject of a financial audit 
the audit report and other information developed during the audit.

[[Page 456]]

    (d) Require submission by carriers of special statements necessary 
to an explanation of any carrier accounting practice.

[Docket No. T-1, 49 FR 50985, Dec. 31, 1984. Redesignated by Doc. No. 
OST-96-1268, 61 FR 19170, May 1, 1996]



Sec. 385.21  Authority of the Chief, Accounting Division, Office of Budget and Policy, Federal Transit Administration.

    The Chief, Accounting Division, Office of Budget and Policy, Federal 
Transit Administration, has authority to:
    (a) Approve and order the payment of refunds of filing fees paid 
under Sec. 389.27(b) of this chapter when such refunds have been 
authorized by either the Director, Office of Aviation Analysis, or the 
Director, Office of International Aviation.
    (b) Pay from appropriated funds all properly documented claims 
consistent with Treasury, OMB, GAO, and DOT policies.
    (c) Make minor or routine adjustments to payments based on audit 
reports prepared by the Inspector General, and through routine internal 
examinations of claims and vouchers.
    (d) Design air carrier subsidy claim forms for small community 
service under 49 U.S.C. 41737.

[Doc. T-1, 49 FR 50985, Dec. 31, 1984; Amdt. 1, 50 FR 7170, Feb. 21, 
1985. Redesignated and amended by Doc. No. OST-96-1268, 61 FR 19170, May 
1, 1996]



              Subpart C_Procedure on Review of Staff Action



Sec. 385.30  Persons who may petition for review.

    Petitions for review may be filed by the applicant; by persons who 
have availed themselves of the opportunity, if any, to participate in 
the matter at the staff action level; and by persons who have not had 
opportunity to so participate or show good and sufficient cause for not 
having participated: Provided, That such persons, other than the 
applicant, disclose a substantial interest which would be adversely 
affected by the respective staff action.

[Docket No. T-1, 49 FR 50985, Dec. 31, 1984. Redesignated by Doc. No. 
OST-96-1268, 61 FR 19171, May 1, 1996]



Sec. 385.31  Petitions for review.

    (a) Time for filing. Petitions for review shall be filed and served 
within seven (7) days after the date of the staff action to which they 
relate, but a different period may be fixed in such staff action 
consistent with effective preservation of the right to petition for 
discretionary review and the exigencies of the situation.
    (b) Contents. Petitions for review shall demonstrate that (1) a 
finding of material fact is clearly erroneous; (2) a legal conclusion is 
contrary to law, Department rules, or precedent; (3) a substantial and 
important question of policy is involved; (4) a prejudicial procedural 
error has occurred; or (5) the staff action is substantially deficient 
on its face. The petition shall briefly and specifically state the 
alleged grounds for review and the relief sought. If persons who 
participated at the staff action level set forth any new facts, 
arguments, or other new matter, an explanation must be furnished as to 
why said matter was not previously adduced at the staff action level. In 
the absence of a valid explanation, the Department may disregard such 
new matter.
    (c) Form and filing. Petitions shall comply with the form and filing 
requirements of Sec. Sec. 302.3 and 302.4 of this chapter. (Rules of 
practice in Economic Proceedings). Petitions shall not exceed 10 pages 
in length. A greater length, however, may be specified in the staff 
action taken. The petitions shall be accompanied by proof of required 
service. However, persons who seek review of a civil penalty proposed by 
the Assistant General Counsel for Aviation Enforcement and Proceedings 
pursuant to Sec. 385.15(a) may submit their request therefor by letter 
to the Department with a copy to the Assistant General Counsel for 
Aviation Enforcement and Proceedings and need not comply with the above 
form and filing requirements.
    (d) Service. A petition filed by a person other than the applicant 
shall be

[[Page 457]]

served on the applicant. Petitions shall also be served on any persons 
who have served documents on the petitioner at the staff action level; 
and on such other persons as may be directed by the Department or the 
staff member who took the action to be reviewed.
    (e) Answers. The applicant and such other persons as disclose a 
substantial interest which would be adversely affected by the relief 
sought in the petition may, within seven (7) days after filing the 
petition, file an answer thereto. A different period for the filing of 
answers may be fixed in the staff action. Such answers shall comply with 
the form and filing requirements applicable to petitions and shall be 
served on the applicant and any other person who has theretofore served 
a document in the matter on such respondent.

[Docket No. T-1, 49 FR 50985, Dec. 31, 1984. Redesignated and amended by 
Doc. No. OST-96-1268, 61 FR 19171, May 1, 1996; 65 FR 6457, Feb. 9, 
2000]



Sec. 385.32  Effective date of staff action.

    Unless, within the time provided by or pursuant to this regulation, 
a petition for review is filed or the Department gives notice that it 
will review on its own motion, staff action shall, without further 
proceedings, be effective and become the action of the Department upon 
the expiration of such period. A timely petition for review filed in 
accordance with the provisions of this section, or notice given by the 
Department of review on its own motion, shall stay the staff action 
pending disposition by the Department, unless the Department determines 
otherwise or unless the staff action provides otherwise in accordance 
with subpart A of this part. However, in cases where the Department's 
regulations provide that permissions or approvals are granted, or that 
other legal effects result, within a stated period from the filing with 
the Department of a prescribed document, unless the Department gives 
notice to the contrary or takes other action within said period, such 
notice given or action taken by a staff member under delegated authority 
shall toll the running of such period. A timely petition for review of 
staff action which is not stayed by its filing which is received after 
or not acted upon before the effective date of the action shall be 
entertained and disposed of on its merits as a petition for 
reconsideration.

[Docket No. T-1, 49 FR 50985, Dec. 31, 1984. Redesignated by Doc. No. 
OST-96-1268, 61 FR 19171, May 1, 1996]



Sec. 385.33  Review by the staff.

    Where a petition for review is duly filed, the staff member may, 
upon consideration of all documents properly filed, reverse his or her 
decision. Except in the case of Administrative Law Judges, action taken 
by a staff member other than an office head or Assistant General Counsel 
may be reversed by the respective office head or Assistant General 
Counsel who is in the supervisory chain of command with respect to the 
staff member who took the initial action. If the initial action is 
reversed, the petition for review will not be submitted to the Reviewing 
Official. Staff action reversing the initial action shall be subject to 
petition for Department review as any other staff action.

[Docket No. T-1, 49 FR 50985, Dec. 31, 1984. Redesignated by Doc. No. 
OST-96-1268, 61 FR 19171, May 1, 1996]



Sec. 385.34  Decision by the Reviewing Official.

    (a) Decline of right to review. If the Reviewing Official declines 
the right to exercise discretionary review, the staff action stayed by 
the petition for review shall become effective on the second business 
day following the date of service of the order, unless the order 
provides otherwise.
    (b) Exercise of right to review. The Reviewing Official will 
exercise his or her discretionary right of review either upon petition 
or on his or her own motion. The Reviewing official may by order provide 
for interlocutory relief pending his or her decision on the merits and 
may limit the issues on review. The Reviewing Official may affirm, 
modify or set aside the staff action, may order the matter remanded, or 
may order further submittals or other proceedings before making a 
decison on the merits. In case the Reviewing Official affirms the staff 
action, staff action stayed by the petition for review shall become 
effective on the second

[[Page 458]]

business day following the date of service of the Reviewing Official's 
order, unless the order provides otherwise. Decisions by the Reviewing 
Official under this part are final and are not subject to petitions for 
reconsideration.

[Doc. T-1, 49 FR 50985, Dec. 31, 1984; Amdt. 1, 50 FR 7170, Feb. 21, 
1985. Redesignated by Doc. No. OST-96-1268, 61 FR 19171, May 1, 1996]



PART 389_FEES AND CHARGES FOR SPECIAL SERVICES--Table of Contents




                      Subpart A_General Provisions

Sec.
389.1 Policy and scope.

                   Subpart B_Fees for Special Services

389.10 Applicability of subpart.
389.11 Services available.
389.12 Payment of fees and charges.
389.13 Fees for services.
389.14 Locating and copying records and documents.
389.15 Certification of copies of documents.
389.16 Board publications.
389.17 Transcripts of proceedings.

              Subpart C_Filing and Processing License Fees

389.20 Applicability of subpart.
389.21 Payment of fees.
389.22 Failure to make proper payment.
389.23 Application for waiver or modification of fees.
389.24 Foreign air carriers.
389.25 Schedule of processing fees.
389.26 Special rules for tariff page filings.
389.27 Refund of fee.

    Authority: Sec. 204, 1002, Pub. L. 85-726, as amended, 72 Stat. 743, 
797; 49 U.S.C. 1324, 1502. Act of August 31, 1951, ch. 376, 65 Stat. 
268; 31 U.S.C. 483a.

    Source: OR-27, 33 FR 70, Jan. 4, 1968, unless otherwise noted.



                      Subpart A_General Provisions



Sec. 389.1  Policy and scope.

    Pursuant to the provisions of Title V of the Independent Offices 
Appropriation Act of 1952 (5 U.S.C. 140) as implemented by Bureau of 
Budget Circular A-25, dated September 23, 1959, the Board sets forth in 
this regulation the special services made available by the Board and 
prescribes the fees to be paid for these and various other services.



                   Subpart B_Fees for Special Services



Sec. 389.10  Applicability of subpart.

    This subpart describes certain special services made available by 
the Board and prescribes the fees and charges for these services.



Sec. 389.11  Services available.

    Upon request and payment of fees as provided in subsequent sections, 
there are available, with respect to documents subject to inspection, 
services as follows:
    (a) Locating and copying records and documents.
    (b) Certification of copies of documents under seal of the Board.
    (c) Subscriptions to publications of the Board.
    (d) Transcripts of hearings.

[OR-27, 33 FR 70, Jan. 4, 1968, as amended by OR-94, 40 FR 7242, Feb. 
19, 1975]



Sec. 389.12  Payment of fees and charges.

    The fees charged for special services may be paid by check, draft, 
or postal money order, payable to the Civil Aeronautics Board, except 
for charges for reporting services which are performed under competitive 
bid contracts with non-Government firms. Fees for reporting are payable 
to the firms providing the services.



Sec. 389.13  Fees for services.

    Except for photocopy work, the basic fees set forth below provide 
for documents to be mailed with ordinary first class postage prepaid. If 
copy is to be transmitted by registered, certified, air, or special 
delivery mail, postal fees therefor will be added to the basic fee. 
Also, if special handling or packaging is required, costs therefor will 
be added to the basic fee. For photocopy work, postage will be in 
addition to the fee for copying.



Sec. 389.14  Locating and copying records and documents.

    Public records and documents on file with the Civil Aeronautics 
Board will

[[Page 459]]

be located and copied upon request and payment of fees as set forth 
below:
    (a) There shall be no charge in connection with searches for records 
or documents under this chapter.
    (b) Photocopies of records or documents shall be made using the 
Board's facilities or by contractors.
    (1) The fee for photocopying will be 15 cents per page.
    (2) The fee for copying by contractors will be that established in 
the contracts with the Board and will be billed directly by those 
contractors.
    (c) Copies of board data on magnetic tapes, or extractions of data 
from Board data tapes, will be made by the National Archives and Records 
Service (NARS) of the General Services Administration or by computer 
service bureaus.
    (1) The Director, Bureau of Accounts and Statistics, furnishes many 
public records and documents contained on magnetic tape to NARS. Initial 
requests for data should be made directly to the Machine Readable 
Archives Division, National Archives and Records Services, General 
Services Administration, Washington, D.C. 20408, with the applicant 
directly reimbursing NARS for its copying or data extraction charges. 
When NARS does not have the requested data, the Director, Bureau of 
Accounts and Statistics, upon written request, will furnish the tapes 
for a reasonable length of time to a computer service bureau chosen by 
the applicant subject to the Director's approval. The computer service 
bureau shall assume the liability for the cost of replacing any tape 
that may be damaged or destroyed by it.
    (2) The fee for data copying by NARS will be determined by NARS.
    (3) The fee for data copying by a computer service bureau shall be 
established by agreement between the requesting party and the computer 
service bureau.
    (d) Where the Board's fee for service requested will exceed $100, 
the service will not be performed until payment has been received. In 
such cases, the requester will be notified promptly of the amount of the 
fee, and the requested service will be performed as expeditiously as 
practicable following receipt of payment.
    (e) Applications for waivers or modifications of any fees required 
to be paid to the Board under this section may be filed in accordance 
with the following:
    (1) Each applicant shall set forth briefly and succinctly the relief 
that it seeks and the reasons why such relief should be granted. Waivers 
or modifications of stated fees shall be granted only where it is 
demonstrated that such action is in the public interest because 
furnishing of the information requested can be considered as primarily 
benefiting the general public.
    (2) Applications requesting waivers or modifications of fees under 
this section shall be addressed to the Managing Director, who has been 
delegated authority by the Board to decide such applications in Sec. 
385.12 of this chapter, and shall accompany the request for service 
under this section.
    (3) The Managing Director shall either rule on the application or, 
at his discretion, pass the matter on to the Board for its 
determination. In acting upon such applications the Managing Director 
and the Board, where applicable, shall be guided by the procedures and 
requirements of Sec. 310.9(d) of this chapter.
    (4) A decision by either the Managing Director or the Board pursuant 
to paragraph (d)(3) of this section is final and will not be subject to 
petitions for reconsideration.

[OR-94, 40 FR 7242, Feb. 19, 1975, as amended by OR-131, 43 FR 38574, 
Aug. 29, 1978]



Sec. 389.15  Certification of copies of documents.

    The Secretary of the Board will provide, on request, certifications 
or validation (with the Civil Aeronautics Board seal) of documents filed 
with or issued by the Board. Copies of tariffs filed with the Board will 
be certified only when such copies have been made under the Board's 
supervision upon request of the applicant. Charges for this service are 
as follows:
    (a) Certification of the Secretary, $2. This fee includes clerical 
services involved in checking the authenticity of records to be 
certified. If copying of the documents to be certified is required, the 
copying charges provided for in Sec. 389.14 will be in addition to the 
charges specified in this section.

[[Page 460]]

    (b) [Reserved]

[OR-27, 33 FR 70, Jan. 4, 1968, as amended by OR-35, 34 FR 5598, Mar. 
25, 1969]



Sec. 389.16  Board publications.

    (a) Charges for publications. Charges have been established by the 
Superintendent of Documents for subscriptions to certain Board 
publications. A list of these publications together with information on 
how they can be ordered is contained in the ``List of Publications'', 
which is available on request from the Board's Publications Services 
Division, B-22, Washington, D.C., 20428.
    (b) Free services. No charge will be made by the Board for notices, 
decisions, orders, etc., required by law to be served on a party to any 
proceeding or matter before the Board. No charge will be made for single 
copies of Board publications individually requested in person or by 
mail, except where a charge is specifically fixed for a publication at 
the time of its issuance.
    (c) Reciprocal services. Arrangements may be made with the Board's 
Bureau of International Aviation for furnishing publications to a 
foreign country or to an international organization on a reciprocal 
basis.

[OR-178, 46 FR 8445, Jan. 27, 1981]



Sec. 389.17  Transcripts of proceedings.

    Transcripts of testimony and oral argument are furnished to the 
Board by a non-Government contractor for any proceeding in which the 
presiding officer has determined that such transcript should be made, 
and copies thereof may be purchased directly from the reporting firm, at 
prices and upon other terms and conditions specified in the contract 
made between the Board and the reporting firm, and currently in effect, 
pursuant to section 11 of the Federal Advisory Committee Act (Pub. L. 
92-463, 86 Stat. 770, 5 U.S.C. App. I). Any person may obtain from the 
Director, Office of Facilities and Operations, the name and address of 
the reporting firm with which the Board currently has such contract, as 
well as the contract prices then in effect for the various types of 
transcript and copying services covered by such contract.

[OR-84, 39 FR 22417, June 24, 1974]



              Subpart C_Filing and Processing License Fees



Sec. 389.20  Applicability of subpart.

    (a) This subpart applies to the filing of certain documents and 
records of the Department by non-government parties, and prescribes fees 
for their processing.
    (b) For the purpose of this subpart, record means those electronic 
tariff records submitted to the Department under subpart W of 14 CFR 
part 221, and contains that set of information which describes one (1) 
tariff fare, or that set of information which describes one (1) related 
element associated with such tariff fare.

[Amdt. 389-37, 54 FR 2099, Jan. 19, 1989]



Sec. 389.21  Payment of fees.

    (a) Any document or record for which a filing fee is requried by 
Sec. 389.25 shall be accompanied by either (1) a check, draft, or 
postal money order, payable to the Civil Aeronautics Board, in the 
amount prescribed herein, or (2) a request for waiver or modification of 
the filing fee.
    (b) [Reserved]
    (c) Where a document seeks authority or relief in the alternative 
and therefore would otherwise be subject to more than one filing fee, 
only the highest fee shall be required.
    (d) Where a document relating to a single transaction or matter 
seeks multiple authorities or relief and therefore would otherwise be 
subject to more than one filing fee, only the highest fee shall be 
required. Where a document relating to more than one transaction or 
matter seeks multiple authorities or relief, the requried filing fee 
shall be determiend by combining the highest fees for each transaction 
or matter. For purposes of this paragraph, a specific number of charters 
or inclusive tours described in one application will be regarded as a 
single transaction or matter.
    (e) No fee shall be returned after the document has been filed with 
the

[[Page 461]]

Board, except as provided in Sec. Sec. 389.23 and 389.27.

[OR-27, 33 FR 70, Jan. 4, 1968, as amended by OR-27A, 33 FR 3633, Mar. 
1, 1968; OR-50, 35 FR 15986, Oct. 10, 1970; 48 FR 642, Jan. 6, 1983; 
Amdt. 389-37, 54 FR 2099, Jan. 19, 1989]



Sec. 389.22  Failure to make proper payment.

    (a)(1) Except as provided in Sec. 389.23, documents (except tariff 
publications) which are not accompanied by filing fees shall be returned 
to the filing party, and such documents shall not be considered as filed 
by the Board.
    (2) Except as provided in Sec. 389.23, records which are not 
accompanied by the appropriate filing fees shall be retained and 
considered filed with the Department. The Department will notify the 
filer concerning the nonpayment or underpayment of the filing fees, and 
will also notify the filer that the records will not be processed until 
the fees are paid.
    (b) The filing fee tendered by a filing party shall be accepted by 
the Board office to whom payment is made, subject to post audit by the 
Chief of the Board's Finance Division and notification to the filing 
party within 30 days of any additional amount due. Not more than 5 days 
after receipt of the notification, the determination of the Chief, 
Finance Division, may be appealed to the Managing Director of the Board, 
who has been delegated authority by the Board to decide such appeals in 
Sec. 385.12 of this chapter. The filing party may submit to the Board a 
petition for review of the Managing Director's decision pursuant to 
Sec. 385.50 of this chapter, and proceedings thereon will be governed 
by part 385, subpart C, of this chapter.
    (c) The amount found due by the Chief, Finance Division, shall be 
paid within 10 days of notification except that (1) if that decision is 
appealed to the Managing Director, the amount due shall be paid within 
10 days after the Managing Director notifies the filing party that he 
has affirmed or modified the decision of the Chief, Finance Division; 
and (2) if the decision of the Managing Director is appealed to the 
Board, the amount due shall be paid within 10 days after the Board 
notifies the filing party that it has affirmed or modified the staff 
decision. If the amount due is not paid, the document (except a tariff 
publication) shall be returned to the filing party along with the fee 
tendered, and such document shall be deemed to have been dismissed or 
withdrawn.

[OR-27, 33 FR 70, Jan. 4, 1968, as amended by OR-96, 40 FR 20613, May 
12, 1975; Amdt. 389-37, 54 FR 2099, Jan. 19, 1989]



Sec. 389.23  Application for waiver or modification of fees.

    (a) Applications may be filed asking for waiver or modification of 
any fee paid under this subpart. Each applicant shall set forth the 
reasons why a waiver or modification should be granted, and by what 
legal authority.
    (b) Applications asking for a waiver or modification of fees shall 
be sent to the Managing Director of the Board, and shall accompany the 
document filed. Applicants may appeal the decision of the Managing 
Director to the Board under Sec. 385.50 of this chapter. When no 
petition for review is filed with the Board, or when the Board reviews 
the Managing Director's decision, if the amount found due is not paid 
within 10 days after receipt of notification of the final determination, 
the document shall be returned to the filing party.

(Approved by the Office of Management and Budget under control number 
3024-0071)

[48 FR 642, Jan. 6, 1983, as amended by OR-215, 49 FR 6884, Feb. 24, 
1984]



Sec. 389.24  Foreign air carriers.

    A foreign air carrier, or such carriers, if from the same country, 
acting jointly, may apply for a waiver of the requirements of this part 
based on reciprocity for U.S. air carriers contained in the requirement 
of their home governments, or as provided in a treaty or agreement with 
the United States. To apply for a waiver under this section, foreign air 
carriers shall send waiver requests to the Director, Bureau of 
International Aviation. The request should include applicable official 
government rules, decisions, statements of policy, or comparable 
evidence concerning filing fees for U.S. air carriers, or for all 
carriers serving that country. Once a waiver has been granted for a

[[Page 462]]

specific country, no further waiver applications need be filed for that 
country.

(Approved by the Office of Management and Budget under control number 
3024-0071)

[OR-209, 48 FR 10628, Mar. 14, 1983, as amended by OR-215, 49 FR 6884, 
Feb. 24, 1984]



Sec. 389.25  Schedule of processing fees.

    (a) Document-filing fees.

------------------------------------------------------------------------
 Code                           Document
------------------------------------------------------------------------
               Interstate and Overseas Air Transportation
        Certificate of Public Convenience and Necessity:
         Application under sec. 401:
     1   Charter................................................     850
     2   Scheduled Service......................................     850
     3   Dormant Authority......................................     290
     4   All-Cargo under sec. 418...............................     670
     5   Transfer...............................................     290
     6  Air Taxi Registration...................................       8
     7  Commuter Air Carrier Authorization......................     670
     8  Change of Name (registration of trade name or reissuance      56
         of certificate)........................................
     9  Exemption Request (General):
    10  Section 403.............................................      53
    11  Section 401 (domestic)..................................     280
    12  Section 419.............................................     120
    13  Service Mail Rate Petition..............................     420
           Foreign Air Transportation (U.S. and Air Carriers)
 
        Certificate of Public Convenience and Necessity (sec.
         401):
    14   Scheduled Service......................................     900
    15   Amendment to application...............................     425
    16   Charter Service........................................     600
    17   Amendment to application...............................     200
    18   Transfer...............................................     255
    19  Change of Name (registration of trade name or reissuance      56
         of certificate)........................................
        Foreign Air Carrier Permit (sec. 402):
    20   Initial................................................     760
    21   Amendment/Renewal of permit............................     475
    22   Amendment to application for a permit..................     215
        Exemption:
    23   Section 403............................................      53
         Section 401/402:
    24   10 or fewer flights....................................      77
    25   More than 10 flights...................................     360
    26   Filed less than 10 days before effective date requested  \1\ 17
    27   Other (U.S. and foreign air carriers)..................     360
    28   Emergency cabotage (sec. 416(b)(7))....................     360
    29  Relief for U.S. (sec. 101) and foreign (sec. 416)            370
         indirect air carriers..................................
        Undocketed Items:
    30   Canadian Charter Air Taxi Registration.................      30
    31   Foreign Freight Forwarder Registration.................      11
    32   Foreign Tour Operator Registration.....................      10
    33   Foreign Aircraft Permit (part 375).....................      25
    34   Special Authorization (part 375).......................      12
    35   Charter Statement of Authorization.....................       8
    36   Intermodal Statement of Authorization..................      10
    37   Special Authority (part 216)...........................      37
    38   Items 33-37 if filed less than time required before      \1\ 11
         effective date.........................................
    39  IATA resolutions........................................      61
                  Other (U.S. and foreign air carriers)
 
        Charters:
    40   Public Charter Prospectus..............................      39
    41   OMPC Operation Authorization...........................     665
    42   Waiver of Charter Regulations..........................      39
        Tariffs:
    43   Pages..................................................       2
    44   Special Tariff Permission..............................      12
    45   Waiver of Tariff Regulations...........................      12
    46  Approval of Interlocking Relationships..................     415
    47  Merger or Acquisition of Control........................    1080
   47a  Exemption request.......................................     371
        Agreements filed under section 412:
    48   Prior Approval (docketed)..............................    1080
    49   Routine (nondocketed)..................................      64
    50  Application for free and reduced-rate transportation....      16
------------------------------------------------------------------------
\1\ Additional.

    (b) Electronic Tariff Filing Fees. The filing fee for one (1) or 
more transactions proposed in any existing record, or for any new or 
canceled records, shall be 5 cents per record; Provided: That no fee 
shall be assessed for those records submitted to the Department pursuant 
to Sec. 221.500(b)(1) of this subpart.

[48 FR 643, Jan. 6, 1983, as amended by OR-206, 48 FR 1941, Jan. 17, 
1983; OR-210, 48 FR 15615, Apr. 12, 1983; 53 FR 17924, May 19, 1988; 
Amdt. 389-37, 54 FR 2099, Jan. 19, 1989; 70 FR 25773, May 16, 2005]



Sec. 389.26  Special rules for tariff page filings.

    (a) Tariffs issued by carriers. The filing fee for tariff pages 
filed by U.S. air carriers will be charged even if the tariff includes 
matters involving participating foreign air carriers. It will also be 
charged if the tariff is issued by a foreign air carrier and includes 
matters involving participating U.S. air carriers, unless the foreign 
air carrier has obtained a waiver under Sec. 389.24. The fee will not 
be charged for a blank looseleaf page unless it cancels matter in the 
preceding issue of the page.
    (b) Tariffs issued by publishing agents. (1) If the tariff is issued 
for one or more air carriers exclusively, the fee will be charged for 
each page.
    (2) If the tariff is issued for one or more air carriers and one or 
more foreign air carriers, the fee will be charged for each page, except 
for those pages that the issuing agent states contain only:
    (i) Matters pertaining exclusively to foreign air carriers that have 
been granted a waiver, or
    (ii) Changes in matters pertaining to foreign air carriers that have 
been granted a waiver and that are included

[[Page 463]]

on the same page with other matters that are reissued without change.
    (3) The fee will not be charged for a blank looseleaf page unless it 
cancels matters in the preceding page.
    (4) No fee will be charged when two pages are published back-to-
back, one page is not subject to the fee under paragraph (b)(2), and the 
page on the reverse is issued without substantive change.
    (5) The fee will be charged for two looseleaf pages containing a 
correction number check sheet unless all other pages of the tariff are 
exempt from the fee.

[48 FR 643, Jan. 6, 1983]



Sec. 389.27  Refund of fee.

    (a) Any fee charged under this part may be refunded in full or in 
part upon request if the document for which it is charged is withdrawn 
before final action is taken. Such requests shall be filed in accordance 
with Sec. 389.23.
    (b) Any person may file an application for refund of a fee paid 
since April 28, 1977, on the grounds that such fee exceeded the Board's 
cost in providing the service. The application shall be filed with the 
Board's Comptroller and shall contain: the amount paid, the date paid, 
and the category of service.

(Approved by the Office of Management and Budget under control number 
3024-0071)

[48 FR 643, Jan. 6, 1983, as amended by OR-215, 49 FR 6884, Feb. 24, 
1984; 49 FR 32564, Aug. 15, 1984]

[[Page 464]]



                     SUBCHAPTER F_POLICY STATEMENTS





PART 398_GUIDELINES FOR INDIVIDUAL DETERMINATIONS OF BASIC ESSENTIAL AIR SERVICE--Table of Contents




Sec.
398.1 Purpose.
398.2 Number and designation of hubs.
398.3 Specific airports.
398.4 Equipment.
398.5 Frequency of flights.
398.6 Seat guarantees.
398.7 Timing of flights.
398.8 Number of intermediate stops.
398.9 Load factor standards.
398.10 Overflights.
398.11 Funding reductions.

    Authority: 49 U.S.C. Chapters 401, 417; Airport and Airway Safety 
and Capacity Expansion Act of 1987 (Pub. L. 100-223, Dec. 30, 1987).

    Source: Docket No. OST-95-397, 60 FR 43529, Aug. 22, 1995, unless 
otherwise noted.



Sec. 398.1  Purpose.

    The purpose of this part is to establish general guidelines for the 
determination of basic essential air service for each eligible place 
under 49 U.S.C. 41731 and 41732. Procedures for the determination of the 
essential air service level for a place are contained in part 325 of 
this chapter.



Sec. 398.2  Number and designation of hubs.

    (a) What is a hub? The Department considers hubs as belonging to any 
one of three classifications:
    (1) A large hub is a place accounting for at least 1.00 percent of 
the total enplanements in the United States;
    (2) A medium hub is a place accounting for at least 0.25 percent but 
less than 1.00 percent of the total enplanements in the United States; 
and
    (3) A small hub is a place accounting for at least 0.05 percent but 
less than 0.25 percent of the total enplanements in the United States.
    (b) How many hubs? (1) As a general matter, the Department will 
require service to one large or medium hub.
    (2) In Alaska or when the nearest large or medium hub is more than 
400 miles from the eligible place, the Department may instead require 
service to a small hub or nonhub.
    (3) In some cases, the Department may require service to two hubs, 
of which at least one will be a large or medium hub. The Department will 
require service to two hubs if an eligible place has close commercial, 
geographic, and political ties to both hubs and if there is sufficient 
traffic from the eligible place to support two round trips a day to both 
hubs. If traffic is not sufficient, the Department may require one round 
trip a day to both hubs if the community requests such service.
    (4) In no event will essential air service consist of service to 
more than two hubs.
    (c) Which hub? (1) In designating hubs, the Department will weigh 
all of the following factors:
    (i) The extent to which candidate hubs provide access to the 
national air transportation system;
    (ii) The commercial, geographic, and political ties of candidate 
hubs to the eligible place;
    (iii) The traffic levels to candidate hubs, as shown by traffic 
studies and origin and designation data;
    (iv) The distance of candidate hubs from the eligible place; and
    (v) The size of candidate hubs. Large size will be a positive 
factor, but principally as substantiating the access and community-ties 
factors.
    (2) For Alaska, rather than requiring service to a hub, the 
Department may instead require that service from an eligible place be 
provided to a nearby focal point for traffic which, in turn, has service 
to a hub.



Sec. 398.3  Specific airports.

    (a) At an eligible place, essential air service may be specified as 
service to a particular airport. In the case of hyphenated places, 
essential air service will be specified as service to more than one 
airport only if clearly necessary and if the multi-airport service is 
economically feasible and justified on the basis of traffic levels at 
those airports.

[[Page 465]]

    (b) At a hub, essential air service is not usually specified as 
service to a particular airport.



Sec. 398.4  Equipment.

    (a) Except in Alaska, service will be provided by aircraft offering 
at least 15 passenger seats, unless:
    (1) Average daily enplanements at the place did not exceed 11 
passengers for any fiscal year from 1976 through 1986;
    (2) The requirement would necessitate the payment of compensation in 
a fiscal year for service at the place when compensation would otherwise 
not be necessary; or
    (3) The affected community agrees in writing to the use of smaller 
aircraft to provide service at the place.
    (b) The aircraft must have at least two engines and use two pilots, 
unless scheduled air transportation has not been provided to the place 
in aircraft with at least two engines and using two pilots for at least 
60 consecutive operating days at any time since October 31, 1978.
    (c) The aircraft must be pressurized when the service regularly 
involves flights above 8,000 feet in altitude.
    (d) All aircraft must meet the applicable safety standards of the 
Federal Aviation Administration.
    (e) The aircraft must be conveniently accessible to passengers by 
stairs rather than over the wing.



Sec. 398.5  Frequency of flights.

    (a) Except in Alaska, at least two round trips each weekday and two 
round trips each weekend.
    (b) In Alaska, a level of service at least equal to that provided in 
1976, or two round trips each week, whichever is greater, except that 
the Department and the appropriate State authority of Alaska may agree 
to a different level of service after consulting with the affected 
community.
    (c) An essential air service level may be set at more than that 
stated in paragraphs (a) and (b) of this section if:
    (1) Historical traffic data and studies of traffic-generating 
potential for the place indicate that more frequent service is needed to 
accommodate passengers and accompanying baggage with the aircraft used 
at that place;
    (2) More flights are needed because the capacity available to the 
eligible place is being shared with traffic destined for an intermediate 
stop or for a place beyond the eligible place;
    (3) More flights are needed to accommodate passengers because 
smaller aircraft are being used at the place;
    (4) More flights are needed in order to ensure adequate connecting 
opportunities as provided for by Sec. 398.7; or
    (5) For Alaska, the appropriate state agency agrees that more 
frequent service is needed to accommodate cargo traffic with the 
aircraft used at the eligible place.
    (d) For eligible places where traffic levels vary substantially with 
the season, a two-tier level of essential air service may be established 
with required flight frequencies changing accordingly.



Sec. 398.6  Seat guarantees.

    (a) The number of seats guaranteed at the eligible place will be 
sufficient to accommodate the estimated passenger traffic at an average 
load factor of 60 percent, except that an average load factor of 50 
percent will be used when service is provided with aircraft having fewer 
than 15 passenger seats.
    (b) Only under unusual circumstances will an eligible place's 
essential air service level be set at a number of flights that will 
accommodate more than 40 passengers a day in each direction (a total of 
80 inbound and outbound passengers). Generally, 40 passengers can be 
accommodated by guaranteeing 67 seats a day in each direction (a total 
of 134 inbound and outbound seats).
    (c) The Department may guarantee an eligible place more than 67 
seats a day if:
    (1) The number of stops between or beyond the eligible place and the 
hub results in available aircraft capacity being shared with passengers 
at those other places;
    (2) The distance between the eligible place and the designated hub 
requires the use of large aircraft;
    (3) The eligible place has suffered an abrupt and significant 
reduction in its service that warrants a temporary increase in the 
maximum guaranteed capacity; or

[[Page 466]]

    (4) Other unusual circumstances warrant guaranteeing the eligible 
place more than 67 seats a day.



Sec. 398.7  Timing of flights.

    To qualify as essential air service, flights must depart at 
reasonable times, considering the needs of passengers with connecting 
flights at the hub. It is the policy of the Department to consider the 
reasonableness of the time in view of the purpose for which the local 
passengers are traveling. If travel is primarily to connect with other 
flights at the hub, local flight times should be designed to link with 
those flights. If travel is primarily local (i.e., to and from the hub), 
there should be at least one morning flight in each direction and one 
late-afternoon or evening flight in each direction.



Sec. 398.8  Number of intermediate stops.

    (a) Except in Alaska, no more than one intermediate stop is 
permitted in providing essential air service between the eligible place 
and its hub, unless otherwise agreed to with the community. In cases 
where an eligible place receives service to two hubs, however, more than 
one intermediate stop is permitted between that place and its secondary 
hub.
    (b) In Alaska, more than one intermediate stop is permitted if 
required by low traffic levels at the eligible place or by the long 
distance between the eligible place and its hub.
    (c) The Department may specify nonstop service when necessary to 
make the service viable.
    (d) Where an eligible place normally is an intermediate stop that 
shares available capacity with another place, it is the policy of the 
Department either to require additional capacity (more flights or larger 
aircraft) between the eligible place and its hub or to specify some 
turnaround operations on that route segment.



Sec. 398.9  Load factor standards.

    The load factor standards used in this part may be raised for 
individual eligible places under either of the following circumstances:
    (a) The place is served by the carrier as part of a linear route; or
    (b) It would be in the interest of the community, the carrier, or 
the general public to raise the load factor standard for that place.



Sec. 398.10  Overflights.

    The Department considers it a violation of 49 U.S.C. 41732 and the 
air service guarantees provided under this part for an air carrier 
providing essential air service to an eligible place to overfly that 
place, except under one or more of the following circumstances:
    (a) The carrier is not compensated for serving that place and 
another carrier is providing by its flights the service required by the 
Department's essential air service determination for that place;
    (b) Circumstances beyond the carrier's control prevent it from 
landing at the eligible place;
    (c) The flight involved is not in a market where the Department has 
determined air service to be essential; or
    (d) The eligible place is a place in Alaska for which the 
Department's essential air service determination permits the overflight.



Sec. 398.11  Funding reductions.

    (a) If, in any fiscal year, appropriations for payments to air 
carriers remain at or below the amounts estimated as necessary to 
maintain subsidy-supported essential air service at the places receiving 
such service, and Congress provides no statutory direction to the 
contrary, appropriations shall not be available for essential air 
service to otherwise eligible places within the 48 contiguous States and 
Puerto Rico that have a rate of subsidy per passenger in excess of 
$200.00, or are located:
    (1) Less than 70 highway miles from the nearest large or medium hub 
airport;
    (2) Less than 55 miles from the nearest small hub airport; or
    (3) Less than 45 highway miles from the nearest nonhub airport that 
has enplaned, on certificated or commuter carriers, 100 or more 
passengers per day in the most recent year for which the Department has 
obtained complete data.

[[Page 467]]

    (b) The rate of subsidy per passenger shall be calculated by 
dividing the annual subsidy in effect as of July 1 of the prior fiscal 
year by the total origin-and-destination traffic during the most recent 
year for which the Department has obtained complete data.



PART 399_STATEMENTS OF GENERAL POLICY--Table of Contents




        Subpart A_Applicability and Effects of Policy Statements

Sec.
399.1 Applicability.
399.2 Exclusions.
399.3 Statements in other Board documents.
399.4 Nature and effect of policy statements.
399.5 Arrangement of policy statements.

           Subpart B_Policies Relating to Operating Authority

399.10-399.11 [Reserved]
399.12 Negotiation by air carriers for landing rights in foreign 
          countries.
399.13-399.17 [Reserved]
399.18 Maximum duration of fixed-term route authorization granted by 
          exemption; renewal of such authority.
399.19 [Reserved]
399.21 Charter exemptions (except military).

            Subpart C_Policies Relating to Rates and Tariffs

399.30 Definitions.
399.31 Standard industry fare level.
399.32 Zone of limited suspension for domestic passenger fares.
399.33 Additional fare flexibility.
399.34 Intra-Hawaii and Intra-Puerto Rico/Virgin Islands fare 
          flexibility.
399.35 Special tariff permission.
399.36 Unreasonable discrimination.
399.37 Joint fares.
399.39 Equipment purchase deposits.
399.40 Tariffs for domestic air transportation on or after January 1, 
          1983.
399.41 Zones of limited suspension for international cargo rates.
399.42 Flight equipment depreciation and residual values.
399.43 Treatment of leased aircraft.
399.44 Treatment of deferred Federal income taxes for rate purposes.

Example of SIFL Adjustment

Subpart D [Reserved]

             Subpart E_Policies Relating to Hearing Matters

399.60 Standards for determining priorities of hearing.
399.61 Presentations of public and civic bodies in route proceedings.
399.62 Target dates in hearing cases.
399.63 Role of staff in route proceedings.

          Subpart F_Policies Relating to Rulemaking Proceedings

399.70 Cross-references to the Office of the Secretary's Rulemaking 
          Procedures.
399.73 Definition of small business for Regulatory Flexibility Act.

               Subpart G_Policies Relating to Enforcement

399.80 Unfair and deceptive practices of ticket agents.
399.81 Unrealistic or deceptive scheduling.
399.82 Passing off of carrier identity by affiliation between carriers.
399.83 Unfair or deceptive practice of air carrier, foreign air carrier, 
          or ticket agent in orally confirming to prospective passenger 
          reserved space on scheduled flights.
399.84 Price advertising.
399.85 [Reserved]
399.86 Payments for non-air transportation services for air cargo.
399.87 [Reserved]

    Subpart H_Other Policies Relating to Interests, Activities, and 
                      Relationships of Air Carriers

399.91 Air carrier participation in programs of technical assistance to 
          airlines of less developed countries.

        Subpart I_Policies Relating to Disclosure of Information

399.101 Public release of Board decisions in cases where the action of 
          the Board is subject to the review or approval of the 
          President.

  Subpart J_Policies Relating to Federal Preemption of State Economic 
                               Regulations

399.111 All operations of federally authorized carriers to be regulated 
          by the Board.

           Subpart K_Policies Relating to Certificate Duration

399.120 Duration of certificates in limited-entry markets.

    Authority: 49 U.S.C. 40101 et seq.

[[Page 468]]


    Source: PS-21, 29 FR 1446, Jan. 29, 1964, unless otherwise noted.



        Subpart A_Applicability and Effects of Policy Statements



Sec. 399.1  Applicability.

    All statements of general policy adopted by the Board for the 
guidance of the public will be published in this part, except as 
provided in Sec. 399.2.



Sec. 399.2  Exclusions.

    The following types of policies are generally not included in this 
part:
    (a) Policies relating solely to the internal management of the 
Board;
    (b) Policies requiring secrecy in the public interest or in the 
interest of national defense;
    (c) Policies that are repetitive of section 102 of the Act;
    (d) Policies that are fully expressed in a procedural or substantive 
rule of the Board, or in any opinion, decision, order, certificate, 
permit, exemption, or waiver of the Board;
    (e) Expressions of encouragement or admonition to industry to follow 
a certain course of action;
    (f) Positions on legislative items and on other matters that are 
outside the scope of the Board's current statutory powers and duties.

[PS-21, 29 FR 1446, Jan. 29, 1964, as amended by PS-63, 40 FR 6643, Feb. 
13, 1975]



Sec. 399.3  Statements in other Board documents.

    No statement contained in any Board opinion, decision, order, 
certificate, permit, exemption, or waiver shall be considered a 
statement of policy within the meaning of this part, even though such 
statements may constitute a precedent in future cases or declare future 
policy to be followed in like cases. Similarly, a denial by the Board or 
relief sought, or statements of the Board's reasons for failure to issue 
a rule upon which rulemaking proceedings have been commenced shall not 
be considered statements of policy, except to the extent that it is 
specifically stated that such denial or failure is based upon a policy 
thereafter to be followed.



Sec. 399.4  Nature and effect of policy statements.

    Policy statements published in this part will be observed by the 
Board until rescinded, but any policy may be amended from time to time 
as experience or changing conditions may require. Changes in policy may 
be made with or without advance notice to the public and will become 
effective upon publication in the Federal Register unless otherwise 
provided. If it appears to the Board, in its consideration of any matter 
before it, that the application of a policy published in this part would 
run counter to an express provision of law or policy enunciated by 
Congress in the Act, the published policy shall not be applicable to 
such matter.



Sec. 399.5  Arrangement of policy statements.

    The statements of general policy relating to the various duties and 
functions of the Board are grouped according to subject matter in the 
following subparts; the titles of the subparts indicate the general 
subject matter included therein.



           Subpart B_Policies Relating to Operating Authority



Sec. Sec. 399.10-399.11  [Reserved]



Sec. 399.12  Negotiation by air carriers for landing rights in foreign countries.

    (a) It is the policy of the Board (jointly with the Department of 
State) that, as a general rule, landing rights abroad for United States 
flag air carriers will be acquired through negotiation by the U.S. 
Government with foreign governments rather than by direct negotiation 
between an air carrier and a foreign government.
    (b) It is corollary to the foregoing policy that no United States 
air carrier may avail itself of representations by one foreign 
government to further its interest with another foreign government, 
especially with respect to landing rights, except insofar as such 
representations have been specifically authorized by the U.S. 
Government.

[[Page 469]]



Sec. Sec. 399.13-399.17  [Reserved]



Sec. 399.18  Maximum duration of fixed-term route authorization granted by exemption; renewal of such authority.

    It is the policy of the Board to limit the duration of exemptions 
which authorize fixed-term route service to a maximum period of two 
years, and to entertain requests for renewal of such authority only when 
incorporated in a duly filed application for substantially equivalent 
certificate authority under section 401 of the Act. (See Sec. 377.10(c) 
of this chapter (Special Regulations).)

[PS-21, 29 FR 1446, Jan. 29, 1964, as amended at 65 FR 6457, Feb. 9, 
2000]



Sec. 399.19  [Reserved]



Sec. 399.21  Charter exemptions (except military).

    In deciding applications for exemptions from section 41102 of Title 
49 of the United States Code by air carriers seeking to perform charter 
service in air transportation, we will give primary weight to the 
chartering public's own assessment of the air carrier services that best 
meet its transportation needs. Therefore, we will not, as a general 
rule, consider as relevant to our decision on such applications, 
objections based upon (1) offers by the objectors to perform the charter 
service, and/or (2) estimates of revenue or traffic diversion, unless in 
the latter case the objectors demonstrate that the diversion resulting 
from grant of the exemption would threaten their ability to fulfill 
their certificate obligations.

[PS-78, 43 FR 31886, July 24, 1978, as amended at 60 FR 43531, Aug. 22, 
1995]



            Subpart C_Policies Relating to Rates and Tariffs



Sec. 399.30  Definitions.

    As used in this subpart:
    DPFI formula fare means the trunk coach formula fare on July 1, 
1977, as established by the Board in Phase 9 of the Domestic Passenger 
Fares Investigation (Docket 21866-9).
    SIFL means the standard industry fare level, as set forth in Sec. 
399.31.

[PS-92, 45 FR 24118, Apr. 9, 1980]



Sec. 399.31  Standard industry fare level.

    (a) Generally. Except as set forth in paragraph (d) of this section, 
the standard industry fare level (``SIFL'') for coach/standard service 
in a market is equal to the predominant fare in effect in that market on 
July 1, 1977, as adjusted by the Board for cost increases.
    (b) Predominant fare. For each market, the predominant fare in 
effect on July 1, 1977, is presumed to be as set forth below. The 
presumption may be rebutted, however, by showing that more passengers 
used a higher fare.
    (1) For U.S. Mainland-Puerto Rico/Virgin Islands markets where the 
Board has specified day-of-week fare differentials: the peak-season 
midweek fare appearing in tariffs in effect on July 1, 1977.
    (2) For U.S. Mainland-Puerto Rico/Virgin Islands markets where the 
Board has specified only seasonal fare differentials: the off-peak-
season fare appearing in tariffs in effect on July 1, 1977.
    (3) For U.S. Mainland-Hawaii markets: the peak-season second class 
fare appearing in tariffs in effect on July 1, 1977.
    (4) For all other interstate and overseas markets: the lowest 
unrestricted fare in effect on July 1, 1977.
    (c) Adjustments for cost increases. The Board adjusts the SIFL at 
least once every 6 months by the percentage change, since the previous 
adjustment, in the actual operating cost per available seat-mile for 
interstate and overseas transportation combined. The method of 
adjustment is illustrated in the example set out at the end of this 
subpart.
    (d) Intrastate markets in California, Florida, and Texas. For each 
of these markets, the SIFL is equal to the level that it would be if the 
market were an interstate one whose predominant fare on July 1, 1977, 
was the DPFI formula fare.
    (e) Intra-Hawaii markets. For intra-Hawaii markets, the Board's 
flexibility zones are based not on the SIFL, but on the standard 
Hawaiian fare level (``SHFL''), which is equal to 110 percent of the 
first class fare in effect on

[[Page 470]]

July 1, 1977, as adjusted by the Board for cost increases.

[PS-92, 45 FR 24118, Apr. 9, 1980, as amended by PS-95, 45 FR 42255, 
June 24, 1980; PS-96, 45 FR 48604, July 21, 1980]



Sec. 399.32  Zone of limited suspension for domestic passenger fares.

    (a) Applicability. This section sets forth the Board's policy on 
passenger fares for scheduled service by certificated air carriers in 
the following areas, except to the extent that greater flexibility is 
set forth in Sec. 399.33:
    (1) Within the 48 contiguous States and the District of Columbia 
(``the Mainland''); and
    (2) Between the Mainland and Puerto Rico, the Virgin Islands, 
Hawaii, or Alaska.
    (b) Downward flexibility. Each carrier may set fares in each market 
at any amount below the SIFL. The Board will not suspend such a fare on 
the ground that its level is unreasonable, except in the following 
extraordinary circumstances:
    (1) There is a high probability that the fare would be found to be 
unlawful after investigation;
    (2) There is a substantial likelihood that the fare is predatory so 
that there would be an immediate and irreparable harm to competition if 
the fare were allowed to go into effect;
    (3) The harm to competition is greater than the injury to the 
traveling public if the proposed fare were unavailable; and
    (4) The suspension is in the public interest.
    (c) [Reserved]
    (d) Upward flexibility. Each carrier may set fares above the SIFL as 
follows, and where they are so set, the Board will not suspend them on 
the grounds that their level is unreasonable except upon a clear showing 
of abuse of market power that the Board does not expect to be corrected 
through marketplace forces:
    (1) For service on the Mainland: Up to 30 percent above the sum of 
the SIFL plus $14. Each time after January 13, 1981, that the Board 
adjusts the SIFL for cost increases in accordance with Sec. 399.31(c), 
it will adjust the $14 figure by the same percentage rounded to the 
nearest whole dollar. The Board order announcing the adjustment will be 
published in the Federal Register and served on all certificated 
carriers, and copies will be available through the Domestic Fares and 
Rates Division, Bureau of Domestic Aviation, Civil Aeronautics Board, 
Washington, D.C. 20428.
    (2) For service between the Mainland and Puerto Rico, the Virgin 
Islands, Hawaii, or Alaska: Up to 30 percent above the SIFL.
    (e) Fares above the zone. Tariff filings that state fares above the 
applicable zone must include the data and information set forth in Sec. 
221.165 of this chapter. For peak fares, this must include a description 
of the carrier's off-peak fares that are available in the market. The 
Board will suspend a fare above the zone that it finds not to be 
justified by cost or competitive factors.

[PS-94, 45 FR 40973, June 17, 1980, as amended by PS-96, 45 FR 48604, 
July 21, 1980; PS-101, 46 FR 11809, Feb. 11, 1981]



Sec. 399.33  Additional fare flexibility.

    For scheduled service in the areas set forth in Sec. 399.32(a), 
certificated air carriers have the following fare flexibility in 
addition to that set forth in Sec. 399.32:
    (a) First class. Carriers may without restriction set the level of 
first class fares.
    (b) Small aircraft. Carriers may without restriction set the level 
of fares for service with aircraft designed to have a maximum passenger 
capacity of 60 or fewer seats.
    (c) Through service and on-line connecting service. For through 
service and on-line connecting service, carriers may set their fares up 
to the sum of the local fares minus one tax-rounded coach ceiling 
terminal charge for each local fare after the first, if that level is 
higher than the ceiling set forth in Sec. 399.32(d). The Board will not 
suspend such a fare on the ground that its level is unreasonable except 
upon a clear showing of abuse of market power that the Board does not 
expect to be corrected through marketplace forces.

[PS-92, 45 FR 24119, Apr. 9, 1980, as amended by PS-94, 45 FR 40974, 
June 17, 1980; PS-96, 45 FR 48604, July 21, 1980]

[[Page 471]]



Sec. 399.34  Intra-Hawaii and Intra-Puerto Rico/Virgin Islands fare flexibility.

    For scheduled service within Hawaii, and within and between Puerto 
Rico and the Virgin Islands, certificated air carriers have the fare 
flexibility set forth in Sec. Sec. 399.32 and 399.33, except that:
    (a) Instead of the limits set forth in Sec. 399.32(d), the upper 
limit of the zone for Puerto Rico/Virgin Islands is 30 percent above the 
SIFL, and for Hawaii is 30 percent above the SHFL; and
    (b) The fare flexibility set forth in Sec. 399.33(a) (first class) 
does not apply to service within Hawaii.

                          Appendix A to Sec.  399.34--United States-Puerto Rico Entity
                            [Normal fares in selected markets--comparison with SIFL]
----------------------------------------------------------------------------------------------------------------
                                                         July 1977 normal fare             May 1980 normal fare
                                                DPFI             level                             level
                                               formula ------------------------   DPFI   -----------------------
             Market               Ratemaking    fare       Peak       Offpeak    formula     Peak       Offpeak
                                    mileage     July   ------------------------ May 1980 -----------------------
                                                1977     Mid  Week   Mid  Week             Mid  Week   Mid  Week
                                                        week   end  week   end            week   end  week   end
----------------------------------------------------------------------------------------------------------------
San Juan:
  Atlanta.......................    1,547      $130.81  ....  ....  ....  ....   $203.53  ....  ....  ....  ....
    Eastern.....................  ..........  ........  $113  $113  $107  $107  ........  $176  $176  $166  $166
  Boston........................    1,674       139.04  ....  ....  ....  ....    216.33  ....  ....  ....  ....
    American....................  ..........  ........  ....  ....  ....  ....  ........   209   218   199   209
    Eastern.....................  ..........  ........   122   128   116   122  ........   209   218   198   209
  Chicago.......................    2,072       164.83  ....  ....  ....  ....    256.45  ....  ....  ....  ....
    American....................  ..........  ........   149   149   143   143  ........   232   232   222   222
    Eastern.....................  ..........  ........   149   149   143   143  ........   232   232   222   222
  Miami.........................    1,045        97.09  ....  ....  ....  ....    151.06  ....  ....  ....  ....
    American....................  ..........  ........  ....  ....  ....  ....  ........   121   131   113   121
    Delta.......................  ..........  ........  ....  ....  ....  ....  ........   121   131   113   121
    Eastern.....................  ..........  ........    78    84    72    78  ........   121   131   112   121
    Pan Am (National)...........  ..........  ........    78    84    72    78  ........   122   122   122   122
  New York......................    1,597       134.05  ....  ....  ....  ....    208.57  ....  ....  ....  ....
    American....................  ..........  ........   108   114   102   108  ........   175   196   175   196
    Eastern.....................  ..........  ........   108   114   102   108  ........   175   196   175   196
    Pan Am......................  ..........  ........  ....  ....  ....  ....  ........   147   147   147   147
  Phildelaphia..................    1,576       132.69  ....  ....  ....  ....    206.45  ....  ....  ....  ....
    American....................  ..........  ........   115   121   109   115  ........   197   208   187   197
    Eastern.....................  ..........  ........   115   121   109   115  ........   175   196   175   196
  Washington....................    1,565       131.97  ....  ....  ....  ....    205.34  ....  ....  ....  ....
    American....................  ..........  ........   114   120   108   114  ........   187   197   176   187
    Eastern.....................  ..........  ........   114   120   108   114  ........   195   206   184   195
    Pan Am (National)...........  ..........  ........  ....  ....  ....  ....  ........   147   147   147   147
----------------------------------------------------------------------------------------------------------------


                                 Appendix B to Sec.  399.34--Selected Fare and Service Data for Seattle-Alaska Markets
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                 SIFL    Y fare as of June    O. & D.
                                                            Actual     DPFI     formula       1980 \2\      passengers
                    Market                     Ratemaking    July     formula  fare May -------------------  Y/E Aug.    Carriers providing single plane
                                                 mileage    1977 Y   fare May    1980     Alaska     Wien    30, 1979         service June 1980 \4\
                                                             fare    1980 \1\    \10\    Airlines   Alaska      \3\
--------------------------------------------------------------------------------------------------------------------------------------------------------
Seattle:
  Anchorage..................................      1,448    $119.00   $193.52   $185.14      $159     $159    196,630   AS/NW/WA/WC
  Cordova....................................      1,293     118.62    176.85    184.55       178  .......      4,330   AS
  Fairbanks..................................      1,533     131.00    201.85    203.81       204      204     44,910   AS/NW/WC
  Gustavus (Via JNU).........................        950     109.62    140.74    170.55       138  .......      1,340   AS
  Juneau.....................................        909      90.62    137.04    140.99       141      141     40,110   AS/WC
  Ketchikan..................................        680      71.62    112.96    111.43       112      112     34,970   AS/WC
  Petersburg (Via KTN).......................        790      89.22    124.07    138.81       138  .......      6,870   AS
  Sitka......................................        862      85.62    131.48       133    133.21  .......     17,240   AS
  Wrangell (Via KTN).........................        762      89.22    121.30    138.81       138  .......      4,120   AS
  Yakutat....................................      1,092     117.62    155.56    182.99       175  .......      1,500   AS
  Kenai \5\..................................      1,468     124.28    198.37    193.35  ........      159      2,470   WC
  King Salmon \6\............................      1,603     167.94    209.26    261.28  ........      200      4,090   WC
  Prudhoe Bay \7\............................      1,802     190.74    229.63    296.75  ........      273        960   WC
  Kodiak \8\.................................      1,439     119.00    192.59    185.14  ........      155     11,140   WC
  Homer \9\..................................      1,449     143.40    193.52    223.10  ........      159      1,250   WC
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ $25.14 plus 13.75[cent] per mile (0-500); 10.49[cent] per mile (501-1500); 10.08[cent] per mile (1501 and over). See Order 80-4-211.
\2\ Domestic Tariffs.
\3\ O. & D. Origin Destination Survey of Airline Passenger Traffic, Table 8, 12 months ended September 30, 1979.
\4\ AS=Alaska Airlines; NW=Northwest Orient Airlines; WA=Western Airlines; WC=Wien Air Alaska.

[[Page 472]]

 
\5\ Via Anchorage ($15.28).
\6\ Via Anchorage ($48.94).
\7\ Via Fairbanks ($59.74).
\8\ Local WA Fare.
\9\ Via Kodiak ($24.40).
\10\ July 1977 fare increased by cumulative adjustment factor of 1.5558% per Order 80-4-211.


             Appendix C to Sec.  399.34--Adjustment of the Intra-Hawaiian Fare Level July 1, 1977, To Reflect Cost at 12.35 Percent Return
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                       Regulatory actual Y.E. March      Cost inflation adjusted to July 1,     July 1,
                                                                                   1977                                 1977                   1977, at
                                                                    -------------------------------------------------------------------------  12.35 pct
                                                                       Aloha     Hawaiian     Total       Aloha       Hawaiian      Total       R.O.I.
--------------------------------------------------------------------------------------------------------------------------------------------------------
RPM's (000)........................................................    321,578    404,793     726,371      321,578      404,793      726,371     726,371
ASM's (000)........................................................    489,128    638,050   1,127,178      489,128      638,050    1,127,178   1,127,178
Load Factor (percent)..............................................      65.75      63.44       64.44        65.75        63.44        64.44        64.4
Yield (dollars) \2\................................................    $0.1427    $0.1453     $0.1441      $0.1427      $0.1453      $0.1441     $0.1589
Operating Revenue--Total...........................................    $47,648    $71,599    $119,247  ...........  ...........  ...........  ..........
Passenger Related Revenue..........................................    $46,301    $59,942    $106,243      $46,301      $59,942     $106,243    $116,966
Operating Expense--Total...........................................    $45,195    $68,836    $114,031  ...........  ...........  ...........  ..........
Passenger Related Expenses.........................................    $43,858    $57,501    $101,359  \1\ $45,937      $59,013          \1\    $104,950
                                                                                                                                    $104,950
Operating Profit--Passenger........................................     $2,443     $2,441      $4,884         $364         $929       $1,293     $12,016
Interest Expense...................................................       $741     $2,583      $3,324         $741       $2,583       $3,324      $3,324
Earnings Before Tax................................................     $1,702     $(142)      $1,560       $(377)     $(1,654)     $(2,031)      $8,692
Tax at 48 Percent..................................................       $817        $68        $749         $181         $794         $975      $4,172
                                                                    ------------------------------------------------------------------------------------
Net Income.........................................................       $885      $(74)        $811       $(196)       $(860)     $(1,056)      $4,520
Return Element.....................................................     $1,626     $2,509      $4,135         $545       $1,723       $2,268      $7,844
Investment.........................................................    $16,192    $47,326     $63,518      $16,192      $47,326      $63,518     $63,518
Return on Investment (percent).....................................      10.04       5.30        6.51         3.37         3.64         3.57       12.35
Increase Factor \3\................................................  .........  .........  ..........  ...........  ...........  ...........       10.27
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Cost inflation to July 1, 1977; 1.047 percent for Aloha, 1.026 for Hawaiian. The differing rates for the two carriers, having equivalent aircraft
  and duplicate route structures, is due primarily to a shift by Hawaiian to larger DC-9-50 aircraft starting in the fourth quarter of 1976.
\2\ Passenger revenue divided by RPM's.
\3\ Passenger yield at 12.35 percent return divided by actual passenger yield for the year ended March 1977.


[PS-96, 45 FR 48604, July 21, 1980]



Sec. 399.35  Special tariff permission.

    (a) Definition. As used in this section, to grant STP means to 
approve a carrier's application for Special Tariff Permission to file a 
tariff on less than the statutory notice set forth in Sec. 221.160(a) 
of this chapter.
    (b) Lower fares, rates, and charges. It is the policy of the Board 
to grant STP for tariffs that state lower fares, rates, or charges and 
any rules affecting only those lower fares, rates, or charges, except 
that:
    (1) The Board will not grant STP to match a tariff filed on 
statutory notice; and
    (2) The Board will not grant STP if the proposed fares, rates, 
charges, or rules raise significant questions of lawfulness, that is, 
could reasonably be expected to be found unjust or unreasonable, 
unjustly discriminatory, unduly preferential, unduly prejudicial, or 
predatory, under current statutory or Board guidelines. In these 
situations, if the carrier files the tariff on statutory notice and at 
the same time applies for STP to advance the tariff's effective date, 
the Board will use its best efforts to act within 15 days to grant or 
deny STP.
    (c) Higher fares or rates. For tariffs that state higher fares or 
rates, and any rules affecting only those fares or rates, the Board's 
policy on STP is, except in unusual or emergency circumstances:
    (1) To grant STP if the resulting fares or rates are within a 
statutory or Board-established zone of fare or rate flexibility; and
    (2) Otherwise, to deny STP.

[PS-94, 45 FR 40974, June 17, 1980, as amended by PS-109, 48 FR 4279, 
Jan. 31, 1983]



Sec. 399.36  Unreasonable discrimination.

    (a) As used in this section:
    (1) Unreasonable discrimination means unjust discrimination or 
unreasonable preference or prejudice; and
    (2) Rate means rate, fare, or charge.

[[Page 473]]

    (b) Except in unusual circumstances or as provided in paragraph (c) 
of this section, the Board will find a rate for domestic air 
transportation to constitute unreasonable discrimination only if:
    (1) There is a reasonable probability that the rate will result in 
significant long-run economic injury to passengers or shippers;
    (2) The rate is in fact discriminatory according to a reasonable 
cost allocation or other rational basis;
    (3) The rate does not provide transportation or other statutorily 
recognized benefits that justify the discrimination; and
    (4) Actual and potential competitive forces cannot reliably be 
expected to eliminate the undesirable effects of the discrimination 
within a reasonable period.
    (c) A rate that discriminates on the basis of the status of the 
traffic carried will not be presumed to be unreasonably discriminatory, 
unless the use of the status categories in question is contrary to 
established national anti-discrimination policy.

[PS-93, 45 FR 36062, May 29, 1980]



Sec. 399.37  Joint fares.

    There should be joint fares in all markets over all routings within 
the contiguous 48 states and the District of Columbia as follows:
    (a) Level. The level shall not exceed the sum of the maximum local 
fares permitted by this subpart minus one tax-rounded coach ceiling 
terminal charge for each interline connection, and in any event shall 
not exceed the sum of the actual local fares.
    (b) Division. Joint fares shall be divided according to the relative 
costs of the mileage flown by each carrier participating in the 
interline movement. However, where a joint fare is equal to the sum of 
the actual local fares, each carrier shall get the local fare as its 
share.

[PS-92, 45 FR 24119, Apr. 9, 1980, as amended by PS-95, 45 FR 42255, 
June 24, 1980]



Sec. 399.39  Equipment purchase deposits.

    Equipment purchase deposits are advance payments made by air 
carriers to manufacturers for the purchase of equipment to be delivered 
in the future, or funds segregated by air carriers for this purpose. It 
is the policy of the Board not to recognize equipment purchase deposits 
in an air carrier's investment base for ratemaking purposes. When 
equipment is acquired by an air carrier and placed in air-transport 
service, the Board will recognize in the air carrier's investment base 
interest on purchase deposits on such equipment capitalized and 
amortized in accordance with the Uniform System of Accounts and Reports 
for Certificated Air Carriers (part 241 of this chapter).

[PS-32, 32 FR 5370, Mar. 30, 1967]



Sec. 399.40  Tariffs for domestic air transportation on or after January 1, 1983.

    The Board will not approve or accept any tariff filings for 
interstate of overseas air transportation to be performed on or after 
January 1, 1983. Any tariffs for such transportation that do not specify 
an earlier expiration date shall expire at midnight on December 31, 
1982.

[PS-107, 47 FR 14893, Apr. 7, 1982]



Sec. 399.41  Zones of limited suspension for international cargo rates.

    (a) Applicability. This section states the Board's policy for 
suspending rate changes for the transportation of property in foreign 
air transportation. It does not affect the Board's authority to suspend 
any rate as unjustly discriminatory, unduly preferential, or unduly 
prejudicial. This section applies to rate changes by all direct air 
carriers and direct foreign air carriers.
    (b) Standard foreign rate levels. For each market in foreign air 
transportation, the standard foreign rate level for the carriage of 
property shall be the bulk general commodity rates in effect in that 
market on April 1, 1982, as adjusted in accordance with paragraph (f) of 
this section. However, the general commodity rate for shipments larger 
than 500 kg. shall be deemed to be the same as the 500 kg. rate for the 
purposes of this paragraph, regardless of any different rate in effect 
in the market.

[[Page 474]]

    (c) Ceilings of limited rate suspension. Except as provided in 
paragraph (d) of this section, the Board will not suspend as 
unreasonable any proposed rate for foreign air transportation of 
property equal to or less than the following levels:
    (1) For all bulk rates (GCR's and SCR's) in the Atlantic region, 20 
percent above the standard foreign rate level.
    (2) For all bulk rates (GCR's and SCR's) in the Pacific region, 15 
percent above the standard foreign rate level.
    (3) For all bulk rates (GCR's and SCR's) in the Western Hemisphere 
region (except Mexico and Canada), 5 percent above the standard foreign 
rate level.
    (4) For all bulk rates (GCR's and SCR's) in Canada/Mexico 
transborder markets, 10 percent above the standard foreign rate level 
for the Western Hemisphere.
    (5) For all container rates, no maximum level.
    (d) Extraordinary circumstances. The Board may suspend any tariff if 
it finds that:
    (1) The suspension is in the public interest because of unreasonable 
regulatory action by a foreign government with respect to rate proposals 
of an air carrier, or
    (2) All of the following extraordinary circumstances are present:
    (i) It is highly probable that the fare would be found unreasonable 
after investigation;
    (ii) There is a substantial likelihood of immediate and irreparable 
harm to the public if the rate is allowed to go into effect; and
    (iii) The suspension is required by the public interest.
    (e) Burden of proof. Persons requesting tariff suspension under 
paragraph (d) of this section shall have the burden of producing 
convincing evidence that the conditions of that paragraph are present.
    (f) Standard foreign rate level adjustments. (1) The Board will 
periodically adjust the standard foreign rate levels to reflect the 
percentage change in average operating costs per available ton-mile 
since the previous adjustment.
    (2) Costs will be averaged for three regions--the Atlantic, the 
Pacific, and Western Hemisphere--and applied equally among all markets 
in each region.
    (3) Cost computations will be based on scheduled freighter and 
combination service by U.S. air carriers.
    (4) Adjustments will be made on April 1 and October 1 of each year, 
or more frequently as the Board finds appropriate.
    (5) In computing costs under this section, the Board will make no 
adjustments for load factors, aircraft utilization, or other matters due 
to operational decisions made solely by carrier management. However, the 
Board retains the discretion to normalize costs for strikes, mandatory 
aircraft groundings, and other occurrences not solely due to management 
decisions.
    (g) Definitions. For the purpose of this section:
    (1) GCR means general commodity rate.
    (2) SCR means specific commodity rate.
    (3) Container rate means any rate specifically applicable to 
property tendered to the carrier in a unit load devise.

[PS-109, 48 FR 4279, Jan. 31, 1983]



Sec. 399.42  Flight equipment depreciation and residual values.

    For rate-making purposes, for air carriers receiving subsidy under 
section 406 of the Act, it is the policy of the Board that flight 
equipment depreciation will be based on the conventional straight-line 
method of accrual, employing the service lives and residual values set 
forth below:

                              [In percent]
------------------------------------------------------------------------
                                              Service
                                              life in  Residual value as
                                               years    percent of cost
------------------------------------------------------------------------
Turbofan equipment:
  4-engine..................................       14          2
  3-engine..................................       14          2
  2-engine..................................       14          2
Turbojet equipment:
  4-engine..................................       10          5
  2-engine..................................       10          5
Turboprop equipment:
  4-engine..................................       12          5
  2-engine..................................       10         15
Wide-body equipment:
  4-engine..................................       16         10
  3-engine..................................       16         10
------------------------------------------------------------------------


[[Page 475]]


[PS-54, 38 FR 24643, Sept. 10, 1973, as amended by PS-99, 45 FR 82625, 
Dec. 16, 1980]



Sec. 399.43  Treatment of leased aircraft.

    In determining the appropriate treatment of leased aircraft for 
ratemaking purposes, it is the Board's policy to recognize actual rental 
expenses. In unusual circumstances where the leased aircraft value 
(determined on a constructive depreciated basis) in relation to net book 
value of owned aircraft operated by the same air carrier is 
significantly in excess of the ratio for the aggregate of the domestic 
trunklines and local service carriers (computed on the same basis), a 
reasonable profit element may be added which shall reflect the 
additional risks of operations with the leased aircraft, to the extent 
that such risks are not compensated by the return on investment. Such 
profit element would be determined by applying the standard rate of 
return, less 6 percentage points, to the value of the leased aircraft, 
on a constructive depreciated basis, to the extent the ratio of such 
value to depreciated cost of owned aircraft plus the value of leased 
aircraft exceeds the average for the domestic air carriers. Rental cost 
plus allowable profit, if any, will not be recognized in amounts 
exceeding depreciation plus return on investment computed as if the 
aircraft had been purchased by the carrier.

[PS-44, 36 FR 7229, Apr. 16, 1971]



Sec. 399.44  Treatment of deferred Federal income taxes for rate purposes.

    For rate-making purposes other than the determination of subsidy 
under section 406(b), it is the policy of the Board that Federal income 
tax expense should be based on the normal taxes that would be paid under 
the depreciation standards used for rate making, and that accumulated 
reserves for deferred taxes should be excluded from the recognized 
capitalization for rate-base purposes.

[PS-46, 36 FR 7232, Apr. 16, 1971]



                     Sec. Example of SIFL Adjustment

                [Methodology for determining change in operating expense per available seat-mile]
                                         [See footnotes at end of table]
----------------------------------------------------------------------------------------------------------------
                                                                                                        Total
                  Year ended September 1979                      Trunks       Locals    Trunks plus   passenger/
                                                                                           locals     cargo \16\
----------------------------------------------------------------------------------------------------------------
Total operating expense \1\ (millions)......................      $16,455       $2,522      $18,977      $19,384
Less:
  All-cargo expenses \2\....................................          269  ...........          269          269
  Belly offset \3\..........................................          952          153        1,105        1,153
  Nonscheduled \4\..........................................          141           46          187          205
  Transport related \5\.....................................          379           31          410          416
Plus: Capitalized lease adjustment \10\.....................          119            2          121          121
Passenger operating expense.................................       14,833        2,294       17,127       17,462
Passenger fuel cost \11\....................................  ...........  ...........        4,103         N.A.
Scheduled service ASM's (mils.).............................      281,671       33,051      314,722      318,459
                                                             ===================================================
Passenger nonfuel operating expense per ASM (dollars).......  ...........  ...........       .04138         N.A.
Passenger fuel expense per ASM (dollars)....................  ...........  ...........       .01304         N.A.
                                                             ---------------------------------------------------
    Total passenger expense per ASM (dollars)...............  ...........  ...........       .05442       .05483
----------------------------------------------------------------------------------------------------------------
                                            Year ended September 1978
----------------------------------------------------------------------------------------------------------------
Total operating expense \1\ (millions)......................       14,081        2,033       16,114       16,448
Less:
  All-cargo expenses \2\....................................          282  ...........          282          282
  Belly offset \3\..........................................          869          152        1,021        1,065
  Nonscheduled \4\..........................................          193           53          246          256
  Transport related \5\.....................................          419           30          449          454
Plus: Capitalized lease adjustment \10\.....................           78            1           79           79
Passenger operating expense.................................       12,396        1,799       14,195       14,470
Passenger fuel cost \11\....................................  ...........  ...........        3,129         N.A.
Scheduled service ASM's (mils.).............................      262,068       27,067      289,135      292,255
                                                             ===================================================
Passenger nonfuel operating expense per ASM (dollars).......  ...........  ...........       .03827         N.A.

[[Page 476]]

 
Passenger fuel expense per ASM (dollars)....................  ...........  ...........       .01082         N.A.
                                                             ---------------------------------------------------
    Total passenger expense per ASM (dollars)...............  ...........  ...........       .04909       .04951
Percent change in nonfuel operating expense per ASM           ...........  ...........         8.13         N.A.
 (percent)..................................................
Projected change in nonfuel expense from April 1, 1979 to     ...........  ...........         8.13         N.A.
 April 1, 1980 \6\..........................................
Estimated change in fuel cost, year ended September 1979      ...........  ...........        73.06         N.A.
 average to April 1, 1980 \14\..............................
                                                             ===================================================
Nonfuel operating expense per ASM at April 1, 1980 \7\        ...........  ...........       .04474         N.A.
 (dollars)..................................................
Fuel expense per ASM at April 1, 1980 \7\ (dollars).........  ...........  ...........       .02257         N.A.
                                                             ---------------------------------------------------
    Total expense per ASM at April 1, 1980 \7\ (dollars)....  ...........  ...........       .06731  \15\ .06782
----------------------------------------------------------------------------------------------------------------
                                              Year ended March 1977
----------------------------------------------------------------------------------------------------------------
Total operating expense \1\ (millions)......................      $11,726       $1,520      $13,316      $13,601
Less:
  All-cargo expense \2\.....................................          238  ...........          238          238
  Belly offset \3\..........................................          729           96          825          865
  Nonscheduled \4\..........................................          220           35          225          266
  Transport related \5\.....................................          427          111          538          554
Passenger operating expense.................................       10,112        1,348       11,460       11,678
Passenger fuel cost.........................................        2,190          230        2,420         N.A.
Scheduled service ASM's (mils.).............................      239,593       23,428      263,021      265,837
Operating expense per ASM (dollars).........................       .04221       .05754       .04357       .04393
Projected expense per ASM (dollars) as at July 1, 1977 \13\.  ...........  ...........  ...........       .04593
Projected operating expense per ASM as at April 1, 1980       ...........  ...........  ...........       .06782
 (page 1) (dollars).........................................
Ceiling adjustment factor \8\ (percent).....................  ...........  ...........  ...........        47.66
----------------------------------------------------------------------------------------------------------------


 
 
 
D.P.F.I. formula effective July 15,
 1977 \12\:
Terminal charge.....................  $16.16
  Plus..............................  .0884/mile (0-500 miles).
  Plus..............................  .0674/mile (501-1,500 miles).
  Plus..............................  .0648/mile (over 1,500 miles).
Ceiling formula through April 30,
 1980 \9\:
Terminal charge.....................  $23.86
  Plus..............................  .1305/mile (0-500 miles).
  Plus..............................  .0995/mile (501-1,500 miles).
  Plus..............................  .0957/mile (over 1,500 miles).
------------------------------------------------------------------------
 
\1\ Total operating expense for all operations and service (in
  millions).
\2\ Scheduled all-cargo operations expense.
\3\ Total scheduled-service cargo revenue, less scheduled all-cargo
  operations revenue, carried as a by-product in aircraft belly
  compartments. Includes freight, express, priority and non-priority
  U.S. mail, and excess baggage.
\4\ Total non-scheduled revenues times 0.95, assuming charter operations
  would only be conducted at a profit.
\5\ Total transport-related expense, less any excess of expense over
  total transport-related revenues.
\6\ We here project costs from April 1, 1979 (the midpoint of the data
  year ended September 1979) to April 1, 1980 the resultant increase
  factor effective through April 30, 1980.
\7\ Operating expense per ASM for year-ended September, 1979, times
  projected change.
\8\ Projected operating expense per ASM on April 1, 1980 divided by the
  operating expense as at July 1, 1977.
\9\ Adjustment results in a 2.5 percent increase in level over current
  January 1, 1980 factor.
\10\ Additional rental expense that would have been incurred had leases
  not been capitalized under FASB-13, less actual amortization of
  capitalized lease expense.
\11\ Total fuel cost, scheduled service, times complement of rate of All-
  Cargo expense to total Operating Expense.
\12\ Order 77-7-26.
\13\ Year ended March, 1977 cost per ASM, times cost escalation factor
  of 1.04543 (to July 5, 1977). See DPFI workpapers, Y.E. March, 1977.
\14\ Estimated average cost per gallon for the trunk plus local service
  carriers at April 1, 1980, divided by the average for the year ended
  September, 1979 (48.33[cent]).
\15\ Change in Trunks plus Locals cost per ASM as at April 1, 1980, to
  year ended September, 1979 times total Psgr/Cargo cost for the year
  ended September, 1979.
\16\ Includes Alaskan, Hawaiian and other regional carriers.


[PS-92, 45 FR 24119, Apr. 9, 1980]

[[Page 477]]

Subpart D [Reserved]



             Subpart E_Policies Relating to Hearing Matters



Sec. 399.60  Standards for determining priorities of hearing.

    (a) General. This policy statement describes the general standards 
which will be used by the Board in determining the order in which it 
will designate for hearing those matters on its docket which are to be 
decided after notice and hearing. Among such matters are applications 
for certificates of public convenience and necessity or for foreign air 
carrier permits; applications under section 408 of the Act for approval 
of consolidations or acquisitions of control; complaint cases; and 
various rate-making proceedings.
    (b) Standards. Matters will be assigned for hearing in accordance 
with the degree of relative priority which each matter is entitled to on 
the basis of the comparative public interest involved therein. Among 
other things, the Board will take into account:
    (1) Statutory requirements for preference or statutory limitations 
on the time within which the Board shall act;
    (2) The impact of delay on the public or particular persons;
    (3) The need for promptly securing compliance with the provisions of 
the Act;
    (4) The time for which the matter has already been pending and which 
would be required to dispose of it;
    (5) Whether the application requests renewal of an existing 
temporary authorization; and
    (6) In matters relating to operating authority:
    (i) Whether a proposal might reduce subsidy or increase economy of 
operations;
    (ii) Whether an application proposes new service;
    (iii) The volume of traffic that might be affected by the grant or 
denial of the proposal;
    (iv) The period that has elapsed since the Board considered the 
service needs of the places or areas involved; and
    (v) The relative availability of necessary staff members of the 
carriers, communities and the Board, in the light of other proceedings 
already in progress, to handle the processing of the case.

Interested persons may urge upon the Board such considerations as they 
believe should lead it to accord a particular application a priority 
different from that which the Board has given it.



Sec. 399.61  Presentations of public and civic bodies in route proceedings.

    For the purpose of implementing the Board's policy to provide for 
the exclusion of irrelevant, immaterial, or unduly repetitious evidence 
and otherwise to expedite route proceedings, and in light of experience, 
the following guidelines are hereby established:
    (a) Public and civic bodies which represent the same geographic area 
or community should consolidate their presentation of evidence, briefs 
or oral argument to the examiner and the Board;
    (b) A public body or a civic organization, or several such bodies or 
organizations whose presentation of evidence is consolidated, should 
keep to a minimum the number of witnesses used to present the factual 
evidence in support of the community's position;
    (c) Exhibits offered in evidence by a public body or civic 
organization should be limited to evidence of the economic 
characteristics of the community and area involved, data as to community 
of interest and traffic, evidence with respect to the sufficiency of 
existing service, and airport data, and should not include data relating 
to number of electricity, water and gas meters, telephones, schools, 
freight car loadings, building permits, sewer connections, or volume of 
bank deposits in the community.



Sec. 399.62  Target dates in hearing cases.

    (a) Applicability. This section applies to initial and recommended 
decisions of administrative law judges, final decisions, and decisions 
on petitions for review or reconsideration in cases in which the Board 
has ordered a trial-type hearing before an administrative law judge.
    (b) Issuance of target dates. In cases to which this section 
applies, the Board or the administrative law judge, as the situation 
calls for, shall issue a notice of the target date for the completion of

[[Page 478]]

the initial or recommended decision, final decision, or decision on a 
petition for review or reconsideration. The Board or the administrative 
law judge shall endeavor to render the pending decision not later than 
the target date.
    (c) Time for promulgating target dates. (1) In the case of initial, 
recommended, or final decisions, notice of target dates shall be issued, 
served, and filed within 20 days of the submission of closing briefs, or 
the conclusion of oral argument to the administrative law judge or the 
Board, as may be appropriate.
    (2) In the case of petitions for review or for reconsideration, 
notices of target dates shall be issued, served, and filed within 20 
days of the date for the filing of answers: Provided, That, in the case 
of petitions for reconsideration of Board decisions awarding new route 
authority, the Board shall, in lieu of issuing individual target dates, 
endeavor to render its decision no later than the day preceding the 
effective date of the new authority awarded.

[PS-71, 41 FR 41407, Sept. 22, 1976, as amended by PS-73, 42 FR 21611, 
Apr. 28, 1977]



Sec. 399.63  Role of staff in route proceedings.

    (a) General. This policy statement establishes the standards 
applicable to staff participation in oral hearing cases involving award 
of route authority.
    (b) Standards. The staff's role during such hearings, primarily 
because it acts in the broad public interest, and not for a particular 
private or local interest, is to assure that essential evidence is 
introduced to resolve the public interest issues; that the evidence 
submitted by the parties is subject to adversary testing, and that 
decisional options are developed with the public interest in mind. In 
route cases designated by the Board that offer the opportunity for 
developing new policies to adapt to the administration of the Federal 
Aviation Act or that raise unusual evidentiary issues, a prehearing 
presentation by staff of decisional options will contribute to a better 
trial record, be consistent with traditional notions of fundamental 
fairness, better serve the Board's decisionmaking needs and ultimately 
serve the public interest. In any route case where the Board has not 
required the staff to participate by making a prehearing presentation, 
the staff shall present a prehearing presentation of decisional options 
if the administrative law judge finds that there exists unusual policy 
or evidentiary issues which clearly require such a presentation. We 
believe it is not desirable for the staff to advocate the adoption of a 
single decisional option at the outset of a case. Accordingly,
    (1) In route cases designated by the Board that offer the 
opportunity for developing new policies, the staff shall make a 
prehearing presentation of the decisional options available, and 
describe the kinds of evidence needed or available to develop each 
option. The staff need not and should not be required to develop 
evidence on each option. In every case, after the close of the hearing, 
however, the staff shall advocate a position based upon one or more of 
the decisional options identified in its prehearing presentation or 
developed at trial.
    (2) In any route case in which the administrative law judge finds 
that there exists unusual policy or evidentiary issues clearly requiring 
a prehearing presentation, the staff shall submit a prehearing statement 
of the decisional options available.
    (3) To the extent possible, the Board, in its instituting orders, 
will identify or designate the cases which involve the development of 
new policies or unusual evidentiary issues that will require the type of 
staff participation described in Sec. 399.63(b)(1).

[PS-76, 43 FR 19354, May 5, 1978]



          Subpart F_Policies Relating to Rulemaking Proceedings



Sec. 399.70  Cross-references to the Office of the Secretary's Rulemaking Procedures.

    The rules and policies relating to the disposition of rulemaking 
petitions by the Department of Transportation Office of the Secretary 
are located in its rulemaking procedures contained in 49 CFR part 5. The 
criteria for identifying significant rules and determining whether a 
regulatory analysis will be

[[Page 479]]

performed are set forth in the Department's Regulatory Policies and 
Procedures, 44 FR 11034, February 26, 1979, and Executive Order 12866.

[Doc. No. OST-96-1429, 61 FR 29019, June 7, 1996]



Sec. 399.73  Definition of small business for Regulatory Flexibility Act.

    For the purposes of the Department's implementation of chapter 6 of 
title 5, United States Code (Regulatory Flexibility Act), a direct air 
carrier or foreign air carrier is a small business if it provides air 
transportation only with small aircraft as defined in Sec. 298.3 of 
this chapter (up to 60 seats/18,000 pound payload capacity).

[Doc. No. OST-96-1429, 61 FR 29019, June 7, 1996]



               Subpart G_Policies Relating to Enforcement



Sec. 399.80  Unfair and deceptive practices of ticket agents.

    It is the policy of the Board to regard any of the following 
enumerated practices (among others) by a ticket agent as an unfair or 
deceptive practice or unfair method of competition:
    (a) Misrepresentations \1\ which may induce members of the public to 
believe that the ticket agent is an air carrier.
---------------------------------------------------------------------------

    \1\ The word ``misrepresentation'' used in this list includes any 
statement or representation made in advertising or made orally to 
members of the public which is false, fraudulent, deceptive or 
misleading, or which has the tendency or capacity to deceive or mislead.
---------------------------------------------------------------------------

    (b) Using or displaying or permitting or suffering to be used or 
displayed the name, trade name, slogan or any abbreviation thereof, of 
the ticket agent, in advertisements, on or in places of business, or on 
aircraft in connection with the name of an air carrier with whom it does 
business, in such manner that it may mislead or confuse the traveling 
public with respect to the agency status of the ticket agent.
    (c) Misrepresentations as to the quality or kind of service, type or 
size of aircraft, time of departure or arrival, points served, route to 
be flown, stops to be made, or total trip-time from point of departure 
to destination.
    (d) Misrepresentation as to qualifications of pilots or safety 
record or certification of pilots, aircraft or air carriers.
    (e) Misrepresentations that passengers are directly insured when 
they are not so insured; for example, where the only insurance in force 
is that protecting the air carrier in event of liability.
    (f) Misrepresentations as to fares and charges for air 
transportation or services in connection therewith.
    (g) Misrepresentation that special discounts or reductions are 
available, when such discounts or reductions are not specific in the 
lawful tariffs of the air carrier which is to perform the 
transportation.
    (h) Advertising or otherwise offering for sale or selling air 
transportation or services in connection therewith at less than the 
rates, fares and charges specified in the currently effective tariffs of 
the air carrier or air carriers who are engaged to perform such air 
transportation or services, or offering or giving rebates or other 
concessions thereon, or assisting, suffering or permitting persons to 
obtain such air transportation or services at less than such lawful 
rates, fares and charges.
    (i) Misrepresentations that special priorities for reservations are 
available when such special considerations are not in fact granted to 
members of the public generally.
    (j) Selling air transportation to persons on a reservation or 
charter basis for specified space, flight, or time, or representing that 
such definite reservation or charter is or will be available or has been 
arranged, without a binding commitment with an air carrier for the 
furnishing of such definite reservation or charter as represented or 
sold.
    (k) Selling or issuing tickets or other documents to passengers to 
be exchanged or used for air transportation knowing or having reason to 
know or believe that such tickets or other documents will not be or 
cannot be legally honored by air carriers for air transportation.
    (l) Failing or refusing to make proper refunds promptly when service 
cannot

[[Page 480]]

be performed as contracted or representing that such refunds are 
obtainable only at some other point, thus depriving persons of the 
immediate use of the money to arrange other transportation, or forcing 
them to suffer unnecessary inconveniences and delays or requiring them 
to accept transportation at higher cost, or under less desirable 
circumstances, or on less desirable aircraft than that represented at 
the time of sale.
    (m) Misrepresentations regarding the handling, forwarding or routing 
of baggage or other property, or the loss or tracing thereof, or failing 
or refusing to honor proper claims for loss of or damage to baggage or 
other property.
    (n) Misrepresentation as to the requirements that must be met by 
persons or organizations in order to qualify for charter or group fare 
flights.



Sec. 399.81  Unrealistic or deceptive scheduling.

    (a) It is the policy of the Board to consider unrealistic scheduling 
of flights by any air carrier providing scheduled passenger air 
transportation to be an unfair or deceptive practice and an unfair 
method of competition within the meaning of section 411 of the Act.
    (b) With respect to the advertising of scheduled performance, it is 
the policy of the Board to regard as an unfair or deceptive practice or 
an unfair method of competition the use of any figures purporting to 
reflect schedule or on-time performance without indicating the basis of 
the calculation, the time period involved, and the pairs of points or 
the percentage of systemwide operations, thereby represented and whether 
the figures include all scheduled flights or only scheduled flights 
actually performed.

[PS-111, 49 FR 40567, Oct. 17, 1984, as amended by PS-114, 50 FR 456, 
Jan. 4, 1985]



Sec. 399.82  Passing off of carrier identity by affiliation between carriers.

    (a) Applicability. This policy shall apply to proceedings in which 
the Board, in exercising its regulatory powers with respect to air 
carriers and foreign air carriers, is required to determine whether 
carriers have engaged in unfair or deceptive practices, or unfair 
methods of competition. The standards herein shall not be construed to 
supersede any action previously taken by the Board in a particular 
proceeding dealing with the subject matter of this statement, but to the 
extent not inconsistent therewith shall provide standards which 
supplement, or implement such specific Board action. The limitation of 
this policy statement to certain affiliated carriers should not be 
construed as an indication that the Board will permit other carriers to 
pass off by means of activities which are inconsistent with the minimum 
safeguards set forth in paragraph (c) of this section. In such cases the 
Board may determine in an adjudicatory proceeding that the activities 
engaged in have a tendency to pass off and constitute an unfair or 
deceptive practice or an unfair method of competition.
    (b) Definition. For the purpose of this statement, the term 
affiliation, as between an air carrier and a foreign air carrier, shall 
mean that one of the carriers directly or indirectly has one of the 
following relationships to the other:
    (1) Owns or controls 10 percent or more of the securities of the 
other, with or without an accompanying power to vote;
    (2) Is in control of the other within the meaning of section 408 of 
the Act;
    (3) Has any of the interlocking relationships described in section 
409 of the Act;
    (4) Is jointly controlled with the other carrier, directly or 
indirectly by a third person;
    (5) Provides general agency services for the other carrier.

For the purpose of this statement, general agency services shall mean 
services performed under an agreement between an air carrier and a 
foreign air carrier which provides for the general representation of one 
by the other in a specified area or point, in relation to services such 
as the following: Solicitation and sale of passenger, express, and cargo 
transportation; airport transportation and hotel accommodations; local 
advertising and publicity, local sales offices; passenger services; 
local government representation; purchase,

[[Page 481]]

lease or other acquisition of equipment; or aircraft and transit 
services, aircraft inspection, aircraft dispatch.
    (c) Minimum safeguards. The minimum safeguards which the Board will 
consider as adequate to foreclose passing off by affiliated carriers are 
as follows:
    (1) An air carrier and any affiliated foreign air carrier shall not 
engage in joint public relations activities at points served by both 
carriers which tend to pass off the services of one carrier as the 
services of the other carrier or as part of a unified system of which 
each is a part;
    (2) Where one affiliated carrier provides general agency services 
for the other carrier, at points served by both carriers, it shall 
specifically identify all flights of the other carrier as flights of 
that carrier without reference to any relationship to the carrier 
performing the agency services;
    (3) All forms of display (including aircraft insignia), scheduled 
publications, advertising, or printed matter employed by affiliated 
carriers shall not state or imply that the services of either carrier 
are performed in common with the other carrier or as part of a single 
system. In cases where it is necessary to indicate that any agency 
service is performed by one affiliated carrier for the other, the 
references to the carrier performing the agency should be sufficiently 
subordinated to the name of the other carrier as to emphasize the 
limited role of the agent;
    (4) Telephone facilities at points served by both carriers should 
preserve the identity of the individual carriers;
    (5) Where joint traffic or sales facilities are maintained by 
affiliated carriers, the separate identity of each carrier should be 
maintained by reasonably comparable use of display advertising, desk-
space, personnel uniforms, and other facilities and activities;
    (6) Where one carrier sells time payment tickets for travel over the 
other carrier (except interline travel), the application form should 
identify the carrier performing the transportation;
    (7) The respective personnel of the affiliated carriers shall 
preserve the individual identity of the respective carriers in all 
public dealings.
    (d) Unfair and deceptive practice. It is the policy of the Board to 
regard any joint activity of an affiliated air carrier and a foreign air 
carrier as an unfair or deceptive practice or unfair method of 
competition where such joint activity does not satisfy the minimum 
safeguards enumerated in the preceding subsection.
    (e) Exceptions. Exceptions to a safeguard set forth in paragraph (c) 
of this section may be recognized for activities in a foreign country if 
the Board finds that special circumstances pertaining to the country 
render the safeguard inappropriate. Exceptions on other grounds may be 
recognized pursuant to Sec. 399.4.

[PS-29, 30 FR 13781, Oct. 29, 1965]



Sec. 399.83  Unfair or deceptive practice of air carrier, foreign air carrier, or ticket agent in orally confirming to prospective passenger reserved space on 
          scheduled flights.

    It is the policy of the Board to consider the practice of an air 
carrier, foreign air carrier, or ticket agent, of stating to a 
prospective passenger by telephone or other means of communication that 
a reservation of space on a scheduled flight in air transportation is 
confirmed before a passenger has received a ticket specifying thereon 
his confirmed reserved space, to be an unfair or deceptive practice and 
an unfair method of competition in air transportation or the sale 
thereof within the meaning of section 411 of the Act, unless the tariff 
of the particular air carrier or foreign air carrier provides for 
confirmation of reserved space by the means so used.

[PS-58, 39 FR 38096, Oct. 29, 1974]



Sec. 399.84  Price advertising.

    The Board considers any advertising or solicitation by a direct air 
carrier, indirect air carrier, or an agent of either, for passenger air 
transportation, a tour (i.e., a combination of air transportation and 
ground accommodations), or a tour component (e.g., a hotel stay) that 
states a price for such air transportation, tour, or tour component to 
be an unfair or deceptive practice, unless the price stated is the 
entire price to be paid by the customer to the air carrier, or agent, 
for such air

[[Page 482]]

transportation, tour, or tour component.

[PS-113, 49 FR 49440, Dec. 20, 1984]



Sec. 399.85  [Reserved]



Sec. 399.86  Payments for non-air transportation services for air cargo.

    The Board considers that payments by air carriers and foreign air 
carriers to shippers, indirect air carriers, or foreign indirect air 
carriers for non-air transportation preparation of air cargo shipments 
are for services ancillary to the air transportation, and are not 
prohibited under section 403 of the Act.

[PS-86, 44 FR 45609, Aug. 3, 1979]



Sec. 399.87  [Reserved]



    Subpart H_Other Policies Relating to Interests, Activities, and 
                      Relationships of Air Carriers



Sec. 399.91  Air carrier participation in programs of technical assistance to airlines of less developed countries.

    (a) Applicability. This policy shall apply to proceedings under 
sections 408, 409, and 412 of the Act in which the Board is required to 
make any determination as to the public interest or consistency with the 
Act of any agreement or relationship sought to be entered into by an air 
carrier, or officer or director thereof, with a foreign airline in 
connection with the performance of some activity pursuant to a technical 
assistance contract financed by an agency of the U.S. Government.
    (b) Policy. It is the policy of the Board that all U.S. air carriers 
interested in performing contracts for aviation technical assistance to 
foreign airlines should have equal access to information necessary to 
bid on such contracts, and should be given equal consideration 
thereafter in the award of such contracts based upon customary 
contracting criteria and subject to the considerations set forth below:
    (1) The air carrier selected should possess the necessary technical 
and managerial skills and economic strength to perform the assigned task 
in the recipient country to the credit of the United States. Where 
familiarity with the particular language and culture of the recipient 
country are important to the success of the project, weight should be 
given to the capabilities of all interested carriers in this regard, 
including particularly those which a route carrier may have acquired 
through service to the country or area.
    (2) Where a single U.S. route carrier is serving or is certificated 
to serve the recipient country or the region in which it is located, and 
where initiation or continued operation of the route by such carrier is 
an important national interest objective of the United States, weight 
should be given to any evidence that an award of the contract to the 
route carrier as opposed to any other U.S. carrier would be held to 
achieve this objective.
    (3) An air carrier performing a technical assistance contract will 
necessarily occupy a close special relationship with the airline and 
government of the recipient country. Over and above the terms of any 
specific contract, there is latent in such relationship the possibility 
of a relative preference for such carrier over a competing U.S. air 
carrier in matters of interline traffic, governmental restrictions, etc. 
Accordingly, where more than one U.S. route carrier is certificated to 
serve the recipient country and more than one such carrier wishes to 
perform the technical assistance, none of such carriers should be 
awarded the contract over the objection of any other except under very 
unusual circumstances.
    (4) Technical assistance contracts should contain realistic 
objectives and require competent performance at reasonable cost and 
within a reasonable period of time consistent with the ability of the 
foreign airline to become self-sufficient.
    (5) Technical assistance contracts should not be awarded to a U.S. 
route carrier with major economic interests hostile to those of the U.S. 
route carrier serving the country.
    (6) Technical assistance contracts should not be awarded to 
subsidized carriers except under special circumstances. Such 
circumstances should include at least a showing (i) that the subsidized 
carrier has special qualifications, the utilization of which

[[Page 483]]

is required in the national interest by the circumstances of a 
particular program, and (ii) that performance of the contract will not 
interfere with the primary business of the subsidized carrier which is 
to provide air transportation in the United States. In the latter 
connection, it is to be recognized that participation with maximum 
effectiveness in a technical assistance program would not only divert 
the attention of top management from certificated services but might 
also involve the assignment of the most competent senior operational and 
technical personnel, the diversion of funds at least on a short-term 
basis, and the possible transfer from certificated services of aircraft 
and related equipment. Normally, therefore, unless substantial evidence 
and arguments are produced to the contrary, participation by subsidized 
carriers in technical assistance programs will be considered 
inconsistent with the public interest.

[PS-22, 29 FR 5788, May 1, 1964]



        Subpart I_Policies Relating to Disclosure of Information



Sec. 399.101  Public release of Board decisions in cases where the action of the Board is subject to the review or approval of the President.

    (a) By Executive Order 11920, 41 FR 23665 (June 11, 1976), effective 
July 11, 1976, the President has authorized the issuance for public 
inspection of decisions by the Board in cases where the action of the 
Board is subject to the review or approval of the President in 
accordance with section 801 of the Federal Aviation Act. In the interest 
of national security, and in order to allow for consideration of 
appropriate action under Executive Order 11652, Executive Order 11920 
provides that decisions shall be withheld from public disclosure for 
five days after submission to the President but may be released on or 
after the sixth day following receipt by the President as to all 
unclassified portions of the text if the Board is not notified by the 
Assistant to the President for National Security Affairs or his designee 
that all or part of the decision shall be withheld from public 
disclosure.
    (b) It is the policy of the Board to release to the public all 
decisions by the Board in section 801 cases as promptly as possible 
following submission of such decision to the President. Upon receipt of 
notice by the Assistant to the President for National Security Affairs 
as required by the Executive Order, the Board shall promptly provide one 
copy for public inspection in the Docket Section and one copy for public 
inspection and copying in the Public Reference Room, and shall promptly 
thereafter print and process the decision for more general distribution 
in accordance with Board procedures. Where the Board is required to 
withhold portions of the text of its decision it shall make public those 
portions of its decision which may be publicly released. Where the Board 
is required to withhold public release of its decision in its entirety 
it shall nonetheless publicly indicate that its decision has been 
transmitted to the President. The Board shall not publicly indicate that 
its decision has been transmitted to the President in those cases in 
which the Assistant to the President for National Security Affairs or 
his designee determines that classification of the existence of the 
decision is appropriate and so informs the Board. The provisions are 
also applicable to decisions submitted to the President for review 
pursuant to section 801(b) of the Act.

[PS-72, 41 FR 46291, Oct. 20, 1976]



  Subpart J_Policies Relating to Federal Preemption of State Economic 
                               Regulations

    Authority: Secs. 102, 105, 204, 401, 403, and 416 of the Federal 
Aviation Act of 1958, as amended; 72 Stat. 740, 743, 754, 758, 771; 49 
U.S.C. 1302, 1305, 1324, 1371, 1373, and 1386.

    Source: PS-83, 44 FR 9951, Feb. 15, 1979, unless otherwise noted.



Sec. 399.111  All operations of federally authorized carriers to be regulated by the Board.

    (a) All operations of Federally authorized carriers are subject to 
the requirements of Title IV of the Act, including certification and 
tariff-filing

[[Page 484]]

requirements, unless otherwise exempted from one or more of those 
requirements by Board order or regulation.
    (b) When any intrastate air carrier that in August 1, 1977, was 
operating primarily in intrastate air transportation regulated by a 
State receives the authority to provide interstate air transportation, 
any authority received from such State shall be considered to be part of 
its authority to provide air transportation received from the Board 
under Title IV of the Act, until suspended, amended, or terminated as 
provided under such title.



           Subpart K_Policies Relating to Certificate Duration



Sec. 399.120  Duration of certificates in limited-entry markets.

    All certificate authority that the Department grants to U.S. air 
carriers in carrier selection proceedings will be awarded in the form of 
experimental certificates of five years' duration pursuant to section 
401(d)(8) of the Federal Aviation Act. This provision does not alter or 
amend permanent certificates issued prior to January 1, 1985.

[Doc. No. 43403, 51 FR 43188, Dec. 1, 1986]

[[Page 485]]



     CHAPTER III--COMMERCIAL SPACE TRANSPORTATION, FEDERAL AVIATION 
              ADMINISTRATION, DEPARTMENT OF TRANSPORTATION




                           (Parts 400 to 1199)

  --------------------------------------------------------------------

                          SUBCHAPTER A--GENERAL
Part                                                                Page
400             Basis and scope.............................         487
401             Organization and definitions................         487
                         SUBCHAPTER B--PROCEDURE
404             Regulations and licensing requirements......         492
405             Investigations and enforcement..............         494
406             Investigations, enforcement, and 
                    administrative review...................         495
                         SUBCHAPTER C--LICENSING
411

[Reserved]

413             License application procedures..............         517
414             Safety approvals............................         520
415             Launch license..............................         526
417             Launch safety...............................         543
418-419

[Reserved]

420             License to operate a launch site............         798
421-430

[Reserved]

431             Launch and reentry of a reusable launch 
                    vehicle (RLV)...........................         848
432

[Reserved]

433             License to operate a reentry site...........         860
434

[Reserved]

435             Reentry of a reentry vehicle other than a 
                    reusable launch vehicle (RLV)...........         861
436

[Reserved]

437             Experimental permits........................         863

[[Page 486]]

438-439

[Reserved]

440             Financial responsibility....................         871
441-459

[Reserved]

460             Human space flight requirements.............         891
461-1199

[Reserved]

[[Page 487]]



                          SUBCHAPTER A_GENERAL





PART 400_BASIS AND SCOPE--Table of Contents




Sec.
400.1 Basis.
400.2 Scope.

    Authority: 49 U.S.C. 70101-70121.

    Source: Docket No. 43810, 53 FR 11013, Apr. 4, 1988, unless 
otherwise noted.



Sec. 400.1  Basis.

    The basis for the regulations in this chapter is the Commercial 
Space Launch Act of 1984, and applicable treaties and international 
agreements to which the United States is party.



Sec. 400.2  Scope.

    These regulations set forth the procedures and requirements 
applicable to the authorization and supervision under 49 U.S.C. Subtitle 
IX, chapter 701, of commercial space transportation activities conducted 
in the United States or by a U.S. citizen. The regulations in this 
chapter do not apply to amateur rocket activities or to space activities 
carried out by the United States Government on behalf of the United 
States Government.

[Doc. No. FAA-4999-5535, 65 FR 56656, Sept. 19, 2000]



PART 401_ORGANIZATION AND DEFINITIONS--Table of Contents




Sec.
401.1 The Office of Commercial Space Transportation.
401.3 The Associate Administrator for Commercial Space Transportation.
401.5 Definitions.

    Authority: 49 U.S.C. 70101-70121.

    Source: Docket No. 43810, 53 FR 11013, Apr. 4, 1988, unless 
otherwise noted.



Sec. 401.1  The Office of Commercial Space Transportation.

    The Office of Commercial Space Transportation, referred to in these 
regulations as the ``Office,'' is a line of business within the Federal 
Aviation Administration and is located in the Federal Aviation 
Administration Headquarters, 800 Independence Avenue, SW., Room 331, 
Washington, DC 20591.

[Amdt. 401-3, 68 FR 35289, June 13, 2003]



Sec. 401.3  The Associate Administrator for Commercial Space Transportation.

    The Office is headed by an Associate Administrator to exercise the 
Secretary's authority to license or permit and otherwise regulate 
commercial space transportation and to discharge the Secretary's 
responsibility to encourage, facilitate, and promote commercial space 
transportation by the United States private sector.

[Doc. No. FAA-2006-24197, 72 FR 17016, Apr. 6, 2007]



Sec. 401.5  Definitions.

    As used in this chapter--
    Act means 49 U.S.C. Subtitle IX, Commercial Space Transportation, 
ch. 701--Commercial Space Launch Activities, 49 U.S.C. 70101-70121.
    Amateur rocket activities means unmanned launch activities conducted 
at private sites involving rockets--
    (1) Powered by a motor or motors having a total impulse of 200,000 
pound-seconds or less;
    (2) Powered by a motor or motors having a total burning or operating 
time of less than 15 seconds; and
    (3) Having a ballistic coefficient--that is, gross weight in pounds 
divided by frontal area of rocket vehicle--less than 12 pounds per 
square inch.
    Associate Administrator means the Associate Administrator for 
Commercial Space Transportation, Federal Aviation Administration, or any 
person designated by the Associate Administrator to exercise the 
authority or discharge the responsibilities of the Associate 
Administrator.
    Casualty means serious injury or death.
    Contingency abort means cessation of vehicle flight during ascent or 
descent in a manner that does not jeopardize public health and safety 
and the safety of property, in accordance with mission rules and 
procedures. Contingency

[[Page 488]]

abort includes landing at an alternative location that has been 
designated as a contingency abort location in advance of vehicle flight.
    Crew means any employee or independent contractor of a licensee, 
transferee, or permittee, or of a contractor or subcontractor of a 
licensee, transferee, or permittee, who performs activities in the 
course of that employment or contract directly relating to the launch, 
reentry, or other operation of or in a launch vehicle or reentry vehicle 
that carries human beings. A crew consists of flight crew and any remote 
operator.
    Emergency abort means cessation of vehicle flight during ascent or 
descent in a manner that minimizes risk to public health and safety and 
the safety of property. Emergency abort involves failure of a vehicle, 
safety-critical system, or flight safety system such that contingency 
abort is not possible.
    Equivalent level of safety means an approximately equal level of 
safety as determined by qualitative or quantitative means.
    Expendable launch vehicle means a launch vehicle whose propulsive 
stages are flown only once.
    Experimental permit or permit means an authorization by the FAA to a 
person to launch or reenter a reusable suborbital rocket.
    Federal launch range means a launch site, from which launches 
routinely take place, that is owned and operated by the government of 
the United States.
    Flight crew means crew that is on board a vehicle during a launch or 
reentry.
    Flight safety system means a system designed to limit or restrict 
the hazards to public health and safety and the safety of property 
presented by a launch vehicle or reentry vehicle while in flight by 
initiating and accomplishing a controlled ending to vehicle flight. A 
flight safety system may be destructive resulting in intentional break 
up of a vehicle or nondestructive, such as engine thrust termination 
enabling vehicle landing or safe abort capability.
    Hazardous materials means hazardous materials as defined in 49 CFR 
172.101.
    Human space flight incident means an unplanned event that poses a 
high risk of causing a serious or fatal injury to a space flight 
participant or crew.
    Instantaneous impact point means an impact point, following thrust 
termination of a launch vehicle, calculated in the absence of 
atmospheric drag effects.
    Launch means to place or try to place a launch vehicle or reentry 
vehicle and any payload from Earth in a suborbital trajectory, in Earth 
orbit in outer space, or otherwise in outer space, and includes 
preparing a launch vehicle for flight at a launch site in the United 
States. Launch includes the flight of a launch vehicle and includes pre- 
and post-flight ground operations as follows:
    (1) Beginning of launch. (i) Under a license, launch begins with the 
arrival of a launch vehicle or payload at a U.S. launch site.
    (ii) Under a permit, launch begins when any pre-flight ground 
operation at a U.S. launch site meets all of the following criteria:
    (A) Is closely proximate in time to flight,
    (B) Entails critical steps preparatory to initiating flight,
    (C) Is unique to space launch, and
    (D) Is inherently so hazardous as to warrant the FAA's regulatory 
oversight.
    (2) End of launch. (i) For launch of an orbital expendable launch 
vehicle (ELV), launch ends after the licensee's last exercise of control 
over its launch vehicle.
    (ii) For launch of an orbital reusable launch vehicle (RLV) with a 
payload, launch ends after deployment of the payload. For any other 
orbital RLV, launch ends upon completion of the first sustained, steady-
state orbit of an RLV at its intended location.
    (iii) For a suborbital ELV or RLV launch, launch ends after reaching 
apogee if the flight includes a reentry, or otherwise after vehicle 
landing or impact on Earth, and after activities necessary to return the 
vehicle to a safe condition on the ground.
    Launch accident means
    (1) An event that causes a fatality or serious injury (as defined in 
49 CFR

[[Page 489]]

830.2) to any person who is not associated with the flight;
    (2) An event that causes damage estimated to exceed $25,000 to 
property not associated with the flight that is not located at the 
launch site or designated recovery area;
    (3) An unplanned event occurring during the flight of a launch 
vehicle resulting in the impact of a launch vehicle, its payload or any 
component thereof:
    (i) For an expendable launch vehicle, outside designated impact 
limit lines; and
    (ii) For a reusable launch vehicle, outside a designated landing 
site.
    (4) For a launch that takes place with a person on board, a fatality 
or serious injury to a space flight participant or crew member.
    Launch incident means an unplanned event during the flight of a 
launch vehicle, other than a launch accident, involving a malfunction of 
a flight safety system or safety-critical system, or a failure of the 
licensee's or permittee's safety organization, design, or operations.
    Launch operator means a person who conducts or who will conduct the 
launch of a launch vehicle and any payload.
    Launch site means the location on Earth from which a launch takes 
place (as defined in a license the Secretary issues or transfers under 
this chapter) and necessary facilities at that location.
    Launch site safety assessment means an FAA assessment of a Federal 
launch range to determine if the range meets FAA safety requirements. A 
difference between range practice and FAA requirements is documented in 
the LSSA.
    Launch vehicle means a vehicle built to operate in, or place a 
payload in, outer space or a suborbital rocket.
    Mishap means a launch or reentry accident, launch or reentry 
incident, launch site accident, failure to complete a launch or reentry 
as planned, or an unplanned event or series of events resulting in a 
fatality or serious injury (as defined in 49 CFR 830.2), or resulting in 
greater than $25,000 worth of damage to a payload, a launch or reentry 
vehicle, a launch or reentry support facility or government property 
located on the launch or reentry site.
    Nominal means, in reference to launch vehicle performance, 
trajectory, or stage impact point, a launch vehicle flight where all 
vehicle aerodynamic parameters are as expected, all vehicle internal and 
external systems perform exactly as planned, and there are no external 
perturbing influences other than atmospheric drag and gravity.
    Operation of a launch site means the conduct of approved safety 
operations at a permanent site to support the launching of vehicles and 
payloads.
    Operation of a reentry site means the conduct of safety operations 
at a permanent site on Earth at which a reentry vehicle and its payload, 
if any, is intended to land.
    Operator means a holder of a license or permit under 49 U.S.C. 
Subtitle IX, chapter 701.
    Payload means an object that a person undertakes to place in outer 
space by means of a launch vehicle, including components of the vehicle 
specifically designed or adapted for that object.
    Person means an individual or an entity organized or existing under 
the laws of a state or country.
    Populated area means--
    (1) An outdoor location, structure, or cluster of structures that 
may be occupied by people;
    (2) Sections of roadways and waterways that are frequented by 
automobile and boat traffic; or
    (3) Agricultural lands, if routinely occupied by field workers.
    Pilot means a flight crew member who has the ability to control, in 
real time, a launch or reentry vehicle's flight path.
    Public safety means, for a particular licensed launch, the safety of 
people and property that are not involved in supporting the launch and 
includes those people and property that may be located within the 
boundary of a launch site, such as visitors, individuals providing goods 
or services not related to launch processing or flight, and any other 
launch operator and its personnel.
    Reenter; reentry means to return or attempt to return, purposefully, 
a reentry vehicle and its payload, if any,

[[Page 490]]

from Earth orbit or from outer space to Earth. The term ``reenter; 
reentry'' includes activities conducted in Earth orbit or outer space to 
determine reentry readiness and that are critical to ensuring public 
health and safety and the safety of property during reentry flight. The 
term ``reenter; reentry'' also includes activities conducted on the 
ground after vehicle landing on Earth to ensure the reentry vehicle does 
not pose a threat to public health and safety or the safety of property.
    Reentry accident means
    (1) Any unplanned event occurring during the reentry of a reentry 
vehicle resulting in the impact of the reentry vehicle, its payload, or 
any component thereof, outside a designated reentry site;
    (2) An event that causes a fatality or serious injury (as defined in 
49 CFR 830.2) to any person who is not associated with the reentry;
    (3) An event that causes damage estimated to exceed $25,000 to 
property not associated with the reentry and not located within a 
designated reentry site; and
    (4) For a reentry that takes place with a person on board, a 
fatality or serious injury to a space flight participant or crew member.
    Reentry incident means any unplanned event occurring during the 
reentry of a reentry vehicle, other than a reentry accident, involving a 
malfunction of a reentry safety-critical system or failure of the 
licensee's or permittee's safety organization, procedures, or 
operations.
    Reentry operator means a person responsible for conducting the 
reentry of a reentry vehicle as specified in a license issued by the 
FAA.
    Reentry site means the location on Earth where a reentry vehicle is 
intended to return. It includes the area within three standard 
deviations of the intended landing point (the predicted three-sigma 
footprint).
    Reentry vehicle means a vehicle designed to return from Earth orbit 
or outer space to Earth substantially intact. A reusable launch vehicle 
that is designed to return from Earth orbit or outer space to Earth 
substantially intact is a reentry vehicle.
    Remote operator means a crew member who
    (1) Has the ability to control, in real time, a launch or reentry 
vehicle's flight path, and
    (2) Is not on board the controlled vehicle.
    Reusable launch vehicle (RLV) means a launch vehicle that is 
designed to return to Earth substantially intact and therefore may be 
launched more than one time or that contains vehicle stages that may be 
recovered by a launch operator for future use in the operation of a 
substantially similar launch vehicle.
    Risk means a measure that accounts for both the probability of 
occurrence of a hazardous event and the consequence of that event to 
persons or property.
    Safety critical means essential to safe performance or operation. A 
safety critical system, subsystem, component, condition, event, 
operation, process, or item is one whose proper recognition, control, 
performance, or tolerance is essential to ensuring public safety. 
Something that is safety critical item creates a safety hazard or 
provide protection from a safety hazard.
    Sigma means a single standard deviation from a fixed value, such as 
a mean.
    Space flight participant means an individual, who is not crew, 
carried aboard a launch vehicle or reentry vehicle.
    State and United States means, when used in a geographical sense, 
the several States, the District of Columbia, the Commonwealth of Puerto 
Rico, American Samoa, the United States Virgin Islands, Guam, and any 
other commonwealth, territory, or possession of the United States; and
    United States citizen means:
    (1) Any individual who is a citizen of the United States;
    (2) Any corporation, partnership, joint venture, association, or 
other entity organized or existing under the laws of the United States 
or any State; and
    (3) Any corporation, partnership, joint venture, association, or 
other entity which is organized or exists under the laws of a foreign 
nation, if the controlling interest in such entity is held by an 
individual or entity described in

[[Page 491]]

paragraph (1) or (2) of this definition. Controlling interest means 
ownership of an amount of equity in such entity sufficient to direct 
management of the entity or to void transactions entered into by 
management. Ownership of at least fifty-one percent of the equity in an 
entity by persons described in paragraph (1) or (2) of this definition 
creates a rebuttable presumption that such interest is controlling.
    Suborbital rocket means a vehicle, rocket-propelled in whole or in 
part, intended for flight on a suborbital trajectory, and the thrust of 
which is greater than its lift for the majority of the rocket-powered 
portion of its ascent.
    Suborbital trajectory means the intentional flight path of a launch 
vehicle, reentry vehicle, or any portion thereof, whose vacuum 
instantaneous impact point does not leave the surface of the Earth.
    Validation means an evaluation to determine that each safety measure 
derived from a system safety process is correct, complete, consistent, 
unambiguous, verifiable, and technically feasible. Validation ensures 
that the right safety measure is implemented, and that the safety 
measure is well understood.
    Vehicle safety operations personnel means those persons whose job 
performance is critical to public health and safety or the safety of 
property during RLV or reentry operations.
    Verification means an evaluation to determine that safety measures 
derived from a system safety process are effective and have been 
properly implemented. Verification provides measurable evidence that a 
safety measure reduces risk to acceptable levels.

[Doc. No. FAA-1999-5535, 65 FR 56656, Sept. 19, 2000, as amended by 
Amdt. 401-2, 65 FR 62861, Oct. 19, 2000; Amdt. 401-4, 71 FR 50530, Aug. 
25, 2006; 71 FR 75631, Dec. 15, 2006; Amdt. 401-5, 72 FR 17016, Apr. 6, 
2007]

[[Page 492]]



                         SUBCHAPTER B_PROCEDURE





PART 404_REGULATIONS AND LICENSING REQUIREMENTS--Table of Contents




                            Subpart A_General

Sec.
404.1 Scope.
404.3 Filing of petitions to the Associate Administrator.
404.5 Action on petitions.

                          Subpart B_Rulemaking

404.11 General.
404.13 Petitions for extension of time to comment.
404.15 Consideration of comments received.
404.17 Additional rulemaking proceedings.
404.19 Hearings.

    Authority: 49 U.S.C. 70101-70121.

    Source: Docket No. 43810, 53 FR 11013, Apr. 4, 1988, unless 
otherwise noted.



                            Subpart A_General



Sec. 404.1  Scope.

    This part establishes procedures for issuing regulations to 
implement 49 U.S.C. Subtitle IX, chapter 701, and for eliminating or 
waiving requirements for licensing or permitting of commercial space 
transportation activities under that statute.

[Doc. No. FAA-2006-24197, 72 FR 17016, Apr. 6, 2007]



Sec. 404.3  Filing of petitions to the Associate Administrator.

    (a) Any person may petition the Associate Administrator to:
    (1) Issue, amend, or repeal a regulation to eliminate as a 
requirement for a license or permit any requirement of Federal law 
applicable to commercial space launch and reentry activities and the 
operation of launch and reentry sites;
    (2) Waive any such requirement in the context of a specific 
application for a license or permit; or
    (3) Waive the requirement for a license.
    (b) Each petition filed under this section must:
    (1) Be submitted in duplicate to the:
    (i) Office of Commercial Space Transportation, Federal Aviation 
Administration, 800 Independence Avenue, SW., Room 331, Washington, DC 
20591; or
    (ii) Be submitted in duplicate to the U.S. Department of 
Transportation, Docket Operations, West Building Ground Floor, Room W12-
140, 1200 New Jersey Avenue, SE., Washington, DC 20590;
    (2) Set forth the text or substance of the regulation or amendment 
proposed, the regulation to be repealed, the licensing or permitting 
requirement to be eliminated or waived, or the type of license or permit 
to be waived;
    (3) In the case of a petition for a waiver of a particular licensing 
or permitting requirement, explain the nature and extent of the relief 
sought;
    (4) Contain any facts, views, and data available to the petitioner 
to support the action requested; and
    (5) In the case of a petition for a waiver, be submitted at least 60 
days before the proposed effective date of the waiver unless good cause 
for later submission is shown in the petition.
    (c) A petition for rulemaking filed under this section must contain 
a summary, which the Associate Administrator may cause to be published 
in the Federal Register, which includes:
    (1) A brief description of the general nature of the action 
requested; and
    (2) A brief description of the pertinent reasons presented in the 
petition for instituting the rulemaking.
    (d) A petition filed under this section may request, under 14 CFR 
413.9, that the Department withhold certain trade secrets or proprietary 
commercial or financial data from public disclosure.

[Doc. No. FAA-2005-21234, 71 FR 51971, Aug. 31, 2006, as amended at 72 
FR 68475, Dec. 5, 2007]



Sec. 404.5  Action on petitions.

    (a) General. No public hearing, argument or other proceeding is held 
on a petition before its disposition under this section.
    (b) Grants. In the case of a petition for a waiver, the Associate 
Administrator may grant the waiver if the Associate Administrator 
determines that the waiver is in the public interest and will not 
jeopardize public health and

[[Page 493]]

safety, the safety or property, or any national security or foreign 
policy interest of the United States. In all other cases, if the 
Associate Administrator determines that the petition contains adequate 
justification, the Associate Administrator initiates a rulemaking action 
under Subpart B of this part.
    (c) Denials. If the Associate Administrator determines that the 
petition does not justify initiating rulemaking action or granting the 
waiver, the petition is denied.
    (d) Notification. Whenever the Associate Administrator determines 
that a petition should be granted or denied, the petitioner is notified 
of the Associate Administrator's action and the reasons supporting it.
    (e) Reconsideration. Any person may petition FAA to reconsider a 
denial of a petition the person had filed. The petitioner must send a 
request for reconsideration within 60 days after being notified of the 
denial to the same address to which the original petition went. For FAA 
to accept the petition, the petitioner must show the following:
    (1) There is a significant additional fact and the reason it was not 
included in the original petition;
    (2) FAA made an important factual error in our denial of the 
original petition; or
    (3) The denial by the FAA is not in accordance with the applicable 
law and regulations.

[53 FR 11013, Apr. 4, 1988, as amended by Amdt. 404-2, 68 FR 35289, June 
13, 2003; Amdt. 404-3, 71 FR 51971, Aug. 31, 2006]



                          Subpart B_Rulemaking



Sec. 404.11  General.

    (a) Unless the Associate Administrator finds, for good cause, that 
notice is impractical, unnecessary, or contrary to the public interest, 
a notice of proposed rulemaking is issued and interested persons are 
invited to participate in proceedings related to each substantive rule 
proposed.
    (b) Unless the Associate Administrator determines that notice and 
comment is necessary or desirable, interpretive rules, general 
statements of policy, and rules relating to organization, procedure, or 
practice are issued as final rules without notice or other proceedings.
    (c) In the Associate Administrator's discretion, interested persons 
may be invited to participate in the rulemaking proceedings described in 
Sec. 404.19 of this Subpart.

[53 FR 11013, Apr. 4, 1988, as amended by Amdt. 404-2, 68 FR 35289, June 
13, 2003]



Sec. 404.13  Petitions for extension of time to comment.

    (a) Any person may petition the Associate Administrator for an 
extension of time to submit comments in response to a notice of proposed 
rulemaking. The petition shall be submitted in duplicate not less than 
three days before expiration of the time stated in the notice. The 
filing of the petition does not automatically extend the time for 
petitioner's comments.
    (b) The Associate Administrator grants the petition only if the 
petitioner shows a substantive interest in the proposed rule and good 
cause for the extension, and if the extension is in the public interest. 
If an extension is granted, it is granted as to all persons and is 
published in the Federal Register.

[53 FR 11013, Apr. 4, 1988, as amended by Amdt. 404-2, 68 FR 35289, June 
13, 2003]



Sec. 404.15  Consideration of comments received.

    All timely comments are considered before final action is taken on a 
rulemaking proposal. Late filed comments may be considered to the extent 
possible, provided they do not cause undue additional expense or delay.



Sec. 404.17  Additional rulemaking proceedings.

    The FAA may initiate other rulemaking proceedings, if necessary or 
desirable. For example, it may invite interested people to present oral 
arguments, participate in conferences, appear at informal hearings, or 
participate in any other proceedings.

[Doc. No. FAA-2006-24197, 72 FR 17016, Apr. 6, 2007]



Sec. 404.19  Hearings.

    (a) Sections 556 and 557 of Title 5, United States Code, do not 
apply to

[[Page 494]]

hearings held under this part. As a fact-finding forum, each hearing 
held under this part is nonadversarial and there are no formal pleadings 
or adverse parties. Any rule issued in a proceeding in which a hearing 
is held is not based exclusively on the record of the hearing, but on 
the entire record of the rulemaking proceeding.
    (b) The Associate Administrator designates a representative to 
conduct any hearing held under this part. The FAA Chief Counsel 
designates a legal officer for the hearing.

[53 FR 11013, Apr. 4, 1988, as amended by Amdt. 404-2, 68 FR 35289, June 
13, 2003]



PART 405_INVESTIGATIONS AND ENFORCEMENT--Table of Contents




Sec.
405.1 Monitoring of licensed, permitted, and other activities.
405.3 Authority to modify, suspend or revoke.
405.5 Emergency orders.

    Authority: 49 U.S.C. 70101-70121.

    Source: Docket No. 43810, 53 FR 11014, Apr. 4, 1988, unless 
otherwise noted.



Sec. 405.1  Monitoring of licensed, permitted, and other activities.

    Each licensee or permittee must allow access by and cooperate with 
Federal officers or employees or other individuals authorized by the 
Associate Administrator to observe licensed facilities and activities, 
including launch sites and reentry sites, as well as manufacturing, 
production, testing, and training facilities, or assembly sites used by 
any contractor, licensee, or permittee to produce, assemble, or test a 
launch or reentry vehicle and to integrate a payload with its launch or 
reentry vehicle. Observations are conducted to monitor the activities of 
the licensee, permittee, or contractor at such time and to such extent 
as the Associate Administrator considers reasonable and necessary to 
determine compliance with the license or permit or to perform the 
Associate Administrator's responsibilities pertaining to payloads for 
which no Federal license, authorization, or permit is required.

[Doc. No. FAA-2006-24197, 72 FR 17016, Apr. 6, 2007]



Sec. 405.3  Authority to modify, suspend or revoke.

    (a) The FAA may modify a license or permit issued under this chapter 
upon application by the licensee or permittee or upon the FAA's own 
initiative, if the FAA finds that the modification is consistent with 
the requirements of the Act.
    (b) The FAA may suspend or revoke any license or permit issued to 
such licensee or permittee under this chapter if the FAA finds that a 
licensee or permittee has substantially failed to comply with any 
requirement of the Act, any regulation issued under the Act, the terms 
and conditions of a license or permit, or any other applicable 
requirement; or that public health and safety, the safety of property, 
or any national security or foreign policy interest of the United States 
so require.
    (c) Unless otherwise specified by the Office, any modification, 
suspension or revocation made by the Office under this section:
    (1) Takes effect immediately; and
    (2) Continues in effect during any review of such action under Part 
406 of this chapter.
    (d) Whenever the FAA takes any action under this section, the FAA 
immediately notifies the licensee or permittee in writing of the FAA's 
finding and the action, which the FAA has taken or proposes to take 
regarding such finding.

[Docket No. 43810, 53 FR 11014, Apr. 4, 1988, as amended by Amdt. 405-3, 
72 FR 17016, Apr. 6, 2007]



Sec. 405.5  Emergency orders.

    The Associate Administrator may immediately terminate, prohibit, or 
suspend a licensed or permitted launch, reentry, or operation of a 
launch or reentry site if the Associate Administrator determines that--
    (a) The licensed or permitted launch, reentry, or operation of a 
launch or reentry site is detrimental to public health and safety, the 
safety of property, or any national security or foreign policy interest 
of the United States; and

[[Page 495]]

    (b) The detriment cannot be eliminated effectively through the 
exercise of other authority of the Office.

[53 FR 11014, Apr. 4, 1988, as amended by Amdt. 405-1, 65 FR 56657, 
Sept. 19, 2000; Amdt. 405-3, 72 FR 17017, Apr. 6, 2007]



PART 406_INVESTIGATIONS, ENFORCEMENT, AND ADMINISTRATIVE REVIEW--Table of Contents




                Subpart A_Investigations and Enforcement

Sec.
406.1 Hearings in license, permit, and payload actions.
406.3 Submissions; oral presentation in license, permit, and payload 
          actions.
406.5 Administrative law judge's recommended decision in license, 
          permit, and payload actions.
406.7 [Reserved]
406.9 Civil penalties.
406.10-406.100 [Reserved]

  Subpart B_Rules of Practice in FAA Space Transportation Adjudications

406.101 Applicability.
406.103 Definitions that apply in part 406.
406.105 Separation of functions for prosecuting civil penalties and 
          advising the FAA decisionmaker.
406.107 Appearances of parties, and attorneys and representatives.
406.109 Administrative law judges--powers and limitations.
406.111 Signing documents.
406.113 Filing of documents with the Docket Management System (DMS) and 
          sending documents to the administrative law judge and 
          Assistant Chief Counsel for Litigation.
406.115 Serving documents on other parties.
406.117 Confidential information.
406.119 Computation of time.
406.121 Extension of time.
406.123 Waivers.
406.127 Complaint and answer in civil penalty adjudications.
406.133 Amendment of pleadings.
406.135 Withdrawal of complaint or request for hearing.
406.137 Intervention.
406.139 Joint procedural or discovery schedule.
406.141 Motions.
406.143 Discovery.
406.147 Notice of hearing.
406.149 Evidence.
406.151 Standard of proof.
406.153 Burden of proof.
406.155 Offer of proof.
406.157 Expert or opinion witnesses.
406.159 Subpoenas.
406.161 Witness fees.
406.163 Record.
406.165 Argument before the administrative law judge.
406.167 Initial decision.
406.173 Interlocutory appeals.
406.175 Appeal from initial decision.
406.177 Petition to reconsider or modify a final decision and order of 
          the FAA decisionmaker on appeal.
406.179 Judicial review of a final decision and order.

    Authority: 49 U.S.C. 70101-70121.

    Source: Docket No. FAA-2001-8607, 66 FR 2180, Jan. 10, 2001, unless 
otherwise noted.



                Subpart A_Investigations and Enforcement



Sec. 406.1  Hearings in license, permit, and payload actions.

    (a) Pursuant to 49 U.S.C. 70110, the following are entitled to a 
determination on the record after an opportunity for a hearing in 
accordance with 5 U.S.C. 554.
    (1) An applicant for a license and a proposed transferee of a 
license regarding any decision to issue or transfer a license with 
conditions or to deny the issuance or transfer of such license;
    (2) An owner or operator of a payload regarding any decision to 
prevent the launch or reentry of the payload;
    (3) A licensee regarding any decision to suspend, modify, or revoke 
a license or to terminate, prohibit, or suspend any licensed activity;
    (4) An applicant for a permit regarding an FAA decision to issue a 
permit with conditions or to deny the issuance of the permit; and
    (5) A permittee regarding any decision to suspend, modify, or revoke 
a permit or to terminate, prohibit, or suspend any permitted activity.
    (b) An administrative law judge will be designated to preside over 
any hearing held under this part.

[Docket No. FAA-2001-8607, 66 FR 2180, Jan. 10, 2001, as amended by 
Amdt. 406-4, 72 FR 17017, Apr. 6, 2007]

[[Page 496]]



Sec. 406.3  Submissions; oral presentation in license, permit, and payload actions.

    (a) The FAA will make decisions about license, permit, and payload 
actions under this subpart based on written submissions unless the 
administrative law judge requires an oral presentation.
    (b) Submissions must include a detailed exposition of the evidence 
or arguments supporting the petition. Where an applicant must 
demonstrate an equivalent level of safety or fidelity, the applicant 
must make a clear and convincing demonstration.
    (c) Petitions shall be filed as soon as practicable, but in no event 
more than 30 days after issuance of decision or finding under Sec. 
406.1.

[Docket No. FAA-2001-8607, 66 FR 2180, Jan. 10, 2001, as amended by 
Amdt. 406-3, 71 FR 50530, Aug. 25, 2006; Amdt. 406-4, 72 FR 17017, Apr. 
6, 2007]



Sec. 406.5  Administrative law judge's recommended decision in license, permit, and payload actions.

    (a) The Associate Administrator, who shall make the final decision 
on the matter at issue, shall review the recommended decision of the 
administrative law judge. The Associate Administrator shall make such 
final decision within thirty days of issuance of the recommended 
decision.
    (b) The authority and responsibility to review and decide rests 
solely with the Associate Administrator and may not be delegated.



Sec. 406.7  [Reserved]



Sec. 406.9  Civil penalties.

    (a) Civil penalty liability. Under 49 U.S.C. 70115(c), a person 
found by the FAA to have violated a requirement of the Act, a regulation 
issued under the Act, or any term or condition of a license or permit 
issued or transferred under the Act, is liable to the United States for 
a civil penalty of not more than $100,000 for each violation, as 
adjusted for inflation. A separate violation occurs for each day the 
violation continues.
    (b) Delegations. The authority to impose civil penalties is 
exercised by an agency attorney as described in Sec. 406.105.
    (c) Notice of proposed civil penalty. A civil penalty action is 
initiated when the agency attorney advises a person, referred to as the 
respondent, of the charges or other reasons upon which the FAA bases the 
proposed action and allows the respondent to answer the charges and to 
be heard as to why the civil penalty should not be imposed. A notice of 
proposed civil penalty states the facts alleged; any requirement of the 
Act, a regulation issued under the Act, or any term or condition of a 
license or permit issued or transferred under the Act allegedly violated 
by the respondent; and the amount of the proposed civil penalty. Not 
later than 30 days after receipt of the notice of proposed civil penalty 
the respondent may elect to proceed by one or more of the following:
    (1) Pay the amount of the proposed civil penalty or an agreed upon 
amount, in which case the agency attorney will issue either an order 
imposing civil penalty or a compromise order in that amount.
    (2) Submit to the agency attorney one of the following:
    (i) Written information, including documents and witnesses 
statements, demonstrating that a violation did not occur or that a 
penalty, or the amount of the proposed penalty, is not warranted by the 
circumstances.
    (ii) A written request to reduce the proposed civil penalty, the 
amount of reduction, and the reasons and any document supporting a 
reduction of the proposed civil penalty, including records indicating a 
financial inability to pay or records showing that payment of the 
proposed civil penalty would prevent the person from continuing in 
business.
    (iii) A written request for an informal conference to discuss the 
matter with the agency attorney and to submit relevant information.
    (3) Request that a final notice of proposed civil penalty be issued 
so that the respondent may request a hearing in accordance with 
paragraph (g) of this section.
    (d) Final notice of proposed civil penalty. A final notice of 
proposed civil penalty (final notice) provides the last

[[Page 497]]

opportunity for the respondent to request a hearing.
    (1) The agency attorney issues a final notice if one of the 
following occurs:
    (i) The respondent fails to respond to the notice of proposed civil 
penalty not later than 30 days after the date the respondent received 
the notice of proposed civil penalty.
    (ii) The parties have not agreed to a resolution of the action after 
participating in informal procedures under paragraph (c)(2) of this 
section.
    (iii) The respondent requests the issuance of a final notice in 
accordance with paragraph (c)(3) of this section.
    (2) Not later than 15 days after the date the respondent received 
the final notice of proposed civil penalty, the respondent shall do one 
of the following:
    (i) Submit the amount of the proposed civil penalty or an agreed-
upon amount, in which case the agency attorney issues either an order 
imposing civil penalty or a compromise order in that amount.
    (ii) Request a hearing in accordance with paragraph (g) of this 
section.
    (e) Order imposing civil penalty. An order imposing civil penalty is 
the final order of the Secretary imposing a civil penalty. An order 
imposing civil penalty is issued for a violation described in paragraph 
(a) of this section after notice and an opportunity for a hearing.
    (1) The agency attorney either issues an order imposing civil 
penalty, or another document becomes an order imposing civil penalty, as 
described below.
    (i) The agency attorney issues an order imposing civil penalty if, 
in response to a notice of proposed civil penalty or a final notice of 
proposed civil penalty, the respondent pays or agrees to pay a civil 
penalty in the amount proposed or an agreed upon amount (other than an 
agreement for a compromise order under paragraph (f) of this section).
    (ii) Unless the respondent requests a hearing not later than 15 days 
after the date the respondent received a final notice of proposed civil 
penalty, the final notice of proposed civil penalty becomes an order 
imposing civil penalty.
    (iii) Unless an appeal is filed with the FAA decisionmaker in 
accordance with Sec. 406.175, if the administrative law judge finds 
that a violation occurred and determines that a civil penalty, in an 
amount found appropriate by the administrative law judge, is warranted, 
an initial decision of an administrative law judge under subpart B of 
this part becomes an order imposing civil penalty.
    (iv) Unless a complaint is filed with a United States district court 
in accordance with Sec. 406.176, if the FAA decisionmaker finds that a 
violation occurred and determines that a civil penalty, in an amount 
found appropriate by the FAA decisionmaker, is warranted, a final 
decision and order of the FAA decisionmaker under subpart B of this part 
becomes an order imposing civil penalty. If a person seeks judicial 
review not later than 60 days after the final decision and order has 
been served on the respondent, the final decision and order is stayed.
    (2) [Reserved]
    (f) Compromise order. The agency attorney at any time may agree to 
compromise any civil penalty with no finding of violation. Under such 
agreement, the agency attorney issues a compromise order stating:
    (1) The respondent agrees to pay a civil penalty.
    (2) The FAA makes no finding of a violation.
    (3) The compromise order may not be used as evidence of a prior 
violation in any subsequent civil penalty action, license, or permit 
action.
    (g) Request for hearing. Any respondent who has been issued a final 
notice of proposed civil penalty may, not later than 15 days after the 
date the respondent received the final notice, request a hearing under 
subpart B of this part.
    (1) The respondent must file a written request for hearing with the 
Federal Docket Management System (U.S. Department of Transportation, 
Docket Operations, West Building Ground Floor, Room W12-140, 1200 New 
Jersey Avenue, SE., Washington, DC 20590) and must serve a copy of the 
request on the agency attorney. Sections 406.113 and 406.115 state how 
filing and service must be done.
    (2) The request for hearing must be dated and signed.

[[Page 498]]

    (h) Method of payment. A respondent must pay a civil penalty by 
check or money order, payable to the Federal Aviation Administration.
    (i) Collection of civil penalties. If a respondent does not pay a 
civil penalty imposed by an order imposing civil penalty or a compromise 
order within 60 days after service of the final order, the FAA may refer 
the order to the United States Department of Treasury or Department of 
Justice to collect the civil penalty.
    (j) Exhaustion of administrative remedies. A respondent may seek 
judicial review of a final decision and order of the FAA decisionmaker 
as provided in Sec. 406.179. A respondent has not exhausted 
administrative remedies for purposes of judicial review if the final 
order is one of the following:
    (1) An order imposing civil penalty issued by an agency attorney 
under paragraph (e)(1)(i) of this section.
    (2) A final notice of proposed civil penalty that becomes an order 
imposing civil penalty under paragraph (e)(1)(ii) of this section.
    (3) An initial decision of an administrative law judge that was not 
appealed to the FAA decisionmaker.
    (4) A compromise order under paragraph (f) of this section.
    (k) Compromise. The FAA may compromise or remit a civil penalty that 
has been proposed or imposed under this section.

[Docket No. FAA-2001-8607, 66 FR 2180, Jan. 10, 2001, as amended by 
Amdt. 406-4, 72 FR 17017, Apr. 6, 2007; 72 FR 68475, Dec. 5, 2007]



Sec. Sec. 406.10-406.100  [Reserved]



  Subpart B_Rules of Practice in FAA Space Transportation Adjudications



Sec. 406.101  Applicability.

    (a) Adjudications to which these rules apply. These rules apply to 
the following adjudications:
    (1) A civil penalty action in which the respondent has requested a 
hearing under Sec. 406.9.
    (2) [Reserved]
    (b) [Reserved]



Sec. 406.103  Definitions that apply in part 406.

    For the purpose of this part:
    Administrative law judge means an administrative law judge appointed 
pursuant to the provisions of 5 U.S.C. 3105.
    Attorney means a person licensed by a state, the District of 
Columbia, or a territory of the United States to practice law or appear 
before the courts of that state or territory.
    Complainant in a civil penalty action means the proponent of the 
civil penalty in the FAA.
    FAA decisionmaker means the Associate Administrator for Commercial 
Space Transportation, or the Administrator of the Federal Aviation 
Administration, acting in the capacity of the decisionmaker on appeal; 
or a person who has been delegated the authority to act for the FAA 
decisionmaker. As used in this part, the FAA decisionmaker is the 
official authorized to issue a final decision and order of the Secretary 
in an action.
    Mail means U.S. first class mail, U.S. certified mail, U.S. 
registered mail, or an express courier service.
    Party means the respondent or the complainant.
    Personal delivery includes hand-delivery or use of a same-day 
messenger service. ``Personal delivery'' does not include the use of 
Government interoffice mail service.
    Properly addressed means using an address contained in agency 
records; a residential, business, or other address used by a person on 
any document submitted under this part; or any other address determined 
by other reasonable and available means.
    Respondent means a person who has been charged with a violation.



Sec. 406.105  Separation of functions for prosecuting civil penalties and advising the FAA decisionmaker.

    (a) Agency attorney. The authority to prosecute civil penalties 
within the FAA is exercised by an agency attorney in accordance with 
Sec. 406.9.
    (1) The following officials have the authority to act as the agency 
attorney under this part: The Deputy Chief Counsel; the Assistant Chief 
Counsel for Enforcement; the Assistant Chief Counsel for Regulations; 
the Assistant

[[Page 499]]

Chief Counsel for Europe, Africa, and Middle East Area Office; each 
Regional Counsel; and each Center Counsel. This authority may be 
delegated further.
    (2) An agency attorney may not include:
    (i) The Chief Counsel or the Assistant Chief Counsel for Litigation;
    (ii) Any attorney on the staff of the Assistant Chief Counsel for 
Litigation who advises the FAA decisionmaker regarding an initial 
decision or any appeal to the FAA decisionmaker; or
    (iii) Any attorney who is supervised in a civil penalty action by a 
person who provides such advice to the FAA decisionmaker in that action 
or a factually-related action.
    (b) Advisors to the FAA decisionmaker. (1) The Chief Counsel, the 
Assistant Chief Counsel for Litigation or an attorney on the staff of 
the Assistant Chief Counsel for Litigation, will advise the FAA 
decisionmaker regarding an initial decision or any appeal of an action 
to the FAA decisionmaker.
    (2) An agency employee engaged in the performance of investigative 
or prosecutorial functions must not, in that case or a factually-related 
case, participate or give advice in a decision by the administrative law 
judge or by the FAA decisionmaker on appeal, except as counsel or a 
witness in the public proceedings.



Sec. 406.107  Appearances of parties, and attorneys and representatives.

    (a) Any party may appear and be heard in person.
    (b) Any party may be accompanied, represented, or advised by an 
attorney or representative designated by the party.
    (1) An attorney or representative who represents a party must file a 
notice of appearance in the action with the Docket Management System and 
must serve a copy of the notice of appearance on each other party before 
participating in any proceeding governed by this subpart.
    (2) The attorney or representative must include his or her name, 
address, and telephone number in the notice of appearance.
    (3) That attorney or representative in any proceeding governed by 
this subpart may examine the party.
    (4) Service of a document on the party's attorney or representative 
is considered to be service on the party.
    (c) An agency attorney represents the complainant.



Sec. 406.109  Administrative law judges--powers and limitations.

    (a) Powers of an administrative law judge. In accordance with the 
rules of this subpart, an administrative law judge may:
    (1) Give notice of, and hold, prehearing conferences and hearings;
    (2) Administer oaths and affirmations;
    (3) Issue subpoenas authorized by law and requested by the parties;
    (4) Rule on offers of proof;
    (5) Receive relevant and material evidence;
    (6) Regulate the course of the hearing in accordance with the rules 
of this subpart;
    (7) Hold conferences to settle or to simplify the issues by consent 
of the parties;
    (8) Dispose of procedural motions and requests; and
    (9) Make findings of fact and conclusions of law, and issue an 
initial decision.
    (b) Duties to maintain the record.
    (1) The administrative law judge must file with the FDMS, or 
instruct the party to file with the FDMS, a copy of each document that 
is submitted to the administrative law judge that has not bee filed with 
FDMS, except the portions of those documents that contain confidential 
information.
    (2) The administrative law judge must file with the FDMS a copy of 
each ruling and order issued by the administrative law judge, except 
those portions that contain confidential information.
    (3) The administrative law judge must file with the FDMS, or 
instruct the court reporter to file with the FDMS, a copy of each 
transcript and exhibit, except those portions that contain confidential 
information.
    (4) The administrative law judge must maintain any confidential 
information filed in accordance with Sec. 406.117 and deliver it to the 
Assistant Chief Counsel for Litigation when the

[[Page 500]]

administrative law judge no longer needs it.
    (c) Limitations on the power of the administrative law judge. The 
administrative law judge may not issue an order of contempt, award costs 
to any party, or impose any sanction not specified in this subpart. If 
the administrative law judge imposes any sanction not specified in this 
subpart, a party may file an interlocutory appeal of right pursuant to 
Sec. 406.173(c). This section does not preclude an administrative law 
judge from issuing an order that bars a person from a specific 
proceeding based on a finding of obstreperous or disruptive behavior in 
that specific proceeding.
    (d) Disqualification. The administrative law judge may disqualify 
himself or herself at any time. A party may file a motion, pursuant to 
Sec. 406.141(f)(8), requesting that an administrative law judge be 
disqualified from the proceedings.

[Docket No. FAA-2001-8607, 66 FR 2180, Jan. 10, 2001, as amended at 72 
FR 68475, Dec. 5, 2007]



Sec. 406.111  Signing documents.

    (a) Signature required. The party, or the party's attorney or 
representative, must sign each document tendered for filing or served on 
each party.
    (b) Effect of signing a document. By signing a document, the party, 
or the party's attorney or representative, certifies that he or she has 
read the document and, based on reasonable inquiry and to the best of 
that individual's knowledge, information, and belief, the document is--
    (1) Consistent with these rules;
    (2) Warranted by existing law or that a good faith argument exists 
for extension, modification, or reversal of existing law; and
    (3) Not unreasonable or unduly burdensome or expensive, not made to 
harass any person, not made to cause unnecessary delay, not made to 
cause needless increase in the cost of the proceedings, or for any other 
improper purpose.
    (c) Sanctions. If an individual signs a document in violation of 
this section, the administrative law judge or the FAA decisionmaker 
must:
    (1) Strike the pleading signed in violation of this section;
    (2) Strike the request for discovery or the discovery response 
signed in violation of this section and preclude further discovery by 
the party;
    (3) Deny the motion or request signed in violation of this section;
    (4) Exclude the document signed in violation of this section from 
the record;
    (5) Dismiss the interlocutory appeal and preclude further appeal on 
that issue by the party who filed the appeal until an initial decision 
has been entered on the record; or
    (6) Dismiss the appeal of the administrative law judge's initial 
decision to the FAA decisionmaker.



Sec. 406.113  Filing documents with the Docket Management System (DMS) and sending documents to the administrative law judge and Assistant Chief Counsel for 
          Litigation.

    (a) The Federal Docket Management System (FDMS). (1) Documents filed 
in a civil penalty adjudication are kept in the Federal Docket 
Management System (FDMS), except for documents that contain confidential 
information in accordance with 406.117. The FDMS is an electronic 
docket. Documents that are filed are scanned into the electronic docket 
and an index is made of all documents that have been filed so that any 
person may view the index and documents as provided in paragraph (f) of 
this section.
    (2) A party is not required to file written interrogatories and 
responses, requests for production of documents or tangible items and 
responses, and requests for admission and responses with the Federal 
Docket Management System or submit them to administrative law judge, 
except as provided in 406.143.
    (b) Method of filing. A person filing a document must mail or 
personally deliver the signed original and one copy of each document to 
the FDMS at the U.S. Department of Transportation, Docket Operations, 
West Building Ground Floor, Room W12-140, 1200 New Jersey Avenue, SE., 
Washington, DC 20590. A person must serve a copy of each document on 
each party in accordance with 406.115.
    (c) Date of filing. The date of filing is the date of personal 
delivery, or if mailed, the mailing date shown on any

[[Page 501]]

certificate of service, the date shown on the postmark if there is no 
certificate of service, or other mailing data shown by other evidence if 
there is no certificate of service or postmark. The date shown in the 
FDMS index is not necessarily the date of service. It is the date the 
FDMS received the document.
    (d) Form. FDMS scans the document into its electronic docket. To 
ensure that FDMS can scan the document and correctly identify it in the 
index, each person filing a document must comply with the following:
    (1) Each document must be legible. It may be handwritten, 
typewritten, or printed from a computer.
    (2) Each document must have a caption on its first page, clearly 
visible, with the following information:
    (i) ``FAA Space Adjudication.''
    (ii) Case name, such as ``In the matter of X Corporation.''
    (iii) FAA Case Number and FDMS docket number, if assigned.
    (iv) Name of the document being filed, including the party filing 
the document, such as ``Respondent's Motion to Dismiss.''
    (v) ``Confidential information filed with administrative law judge'' 
or ``Confidential information filed with Assistant Chief Counsel for 
Litigation'' if the party is filing confidential information under 
406.117.
    (3) The document must be capable of being scanned and be easy to 
read both in paper form and as scanned into the electronic docket. A 
document that meets the following specifications is capable of being 
scanned using automatic feeders and is easy to read both in paper form 
and as scanned into the electronic docket. Documents that do not meet 
these specifications may not be legible.
    (i) On white paper.
    (ii) On paper not larger than 8\1/2\ by 11 inches.
    (iii) In black ink.
    (iv) Text double-spaced. Footnotes and long quotes may be single 
spaced.
    (v) At least 12 point type.
    (vi) Margins at least 1 inch on each side.
    (vii) The original not bound or hole-punched, only held together 
with removable metal clips or the like. The copy that is filed or sent 
to the administrative law judge or Assistant Chief Counsel for 
Litigation, and the copy served on another party, need not meet this 
specification.
    (viii) The original has no tabs. The copy that is filed or sent to 
the administrative law judge or Assistant Chief Counsel for Litigation, 
and the copy served on another party, need not meet this specification.
    (e) Sending documents to the administrative law judge or Assistant 
Chief Counsel for Litigation. Sending the document directly to the 
administrative law judge or to the Assistant Chief Counsel for 
Litigation is not a substitute for filing the original with the FDMS, 
except for confidential information under 406.117.
    (f) Viewing and copying the record. Any person may view and copy the 
record, except for confidential information, as follows:
    (1) During regular business hours at the U.S. Department of 
Transportation, Docket Operations, West Building Ground Floor, Room W12-
140, 1200 New Jersey Avenue, SE., Washington, DC 20590.
    (2) Through the Internet at http://www.regulations.gov.
    (3) By requesting it from the FDMS and paying reasonable costs.

[Docket No. FAA-2001-8607, 66 FR 2180, Jan. 10, 2001, as amended at 72 
FR 68476, Dec. 5, 2007]



Sec. 406.115  Serving documents on other parties.

    (a) Service required. A person must serve on each other party at the 
time of filing a copy of any document filed with the Federal Docket 
Management System. Service on a party's attorney or representative of 
record is adequate service on the party.
    (b) Method of service. A person must serve documents by personal 
delivery or by mail.
    (c) Certificate of service. A person may attach a certificate of 
service to a document filed with the FDMS. Any certificate of service 
must include a statement, dated and signed by the individual filing the 
document, that the document was served on each party, the method of 
service, and the date of service.

[[Page 502]]

    (d) Date of service. The date of service is the date of personal 
delivery; or if mailed, the mailing date shown on the certificate of 
service, the date shown on the postmark if there is no certificate of 
service, or other mailing date shown by other evidence if there is no 
certificate of service or postmark. The date shown in the FDMS index is 
not necessarily the date of service. It is the date the FDMS received 
the document.
    (e) Additional time after service by mail. Whenever a party has a 
right or a duty to act or to make any response within a prescribed 
period after service by mail, or on a specified date after service by 
mail, 5 days is added to the prescribed period.
    (f) Service by the administrative law judge. The administrative law 
judge must serve a copy of each document including, but not limited to, 
notices of pre-hearing conferences and hearings, rulings on motions, 
decisions, and orders, upon each party to the proceedings by personal 
delivery or by mail.
    (g) Service made. A document is deemed served in accordance with 
this subpart if it was properly addressed; was sent in accordance with 
this subpart; and was returned, not claimed, or refused. Service is 
considered valid as of the date and the time that the document was 
mailed, or personal delivery of the document was refused.
    (h) Presumption of service. There is a presumption of service where 
a party or a person, who customarily receives mail, or receives it in 
the ordinary course of business, at either the person's residence or the 
person's principal place of business, acknowledges receipt of the 
document.

[Docket No. FAA-2001-8607, 66 FR 2180, Jan. 10, 2001, as amended at 72 
FR 68476, Dec. 5, 2007]



Sec. 406.117  Confidential information.

    (a) Filing confidential information. If a party wants certain 
information that the party is filing not made available to the public, 
the party must do the following:
    (1) Place the information in a separate sealed envelope and clearly 
mark the envelope ``CONFIDENTIAL.'' At least the first page of the 
document in the envelope also must be marked ``CONFIDENTIAL.''
    (2) Attach to this envelope a cover document marked ``Confidential 
information filed with administrative law judge'' or ``Confidential 
information filed with Assistant Chief Counsel for Litigation.'' The 
cover document must include, at the least, a short statement of what is 
being filed, such as ``Respondent's motion for confidentiality order.''
    (3) Unless such a motion has already been granted, enclose a motion 
for confidentiality order in accordance with paragraph (c) of this 
section. The motion must be in the sealed envelope if it contains 
confidential information; otherwise the motion must be outside of the 
sealed envelope.
    (b) Marked information not made public. If a party files a document 
in a sealed envelope clearly marked ``CONFIDENTIAL'' the document may 
not be made available to the public unless and until the administrative 
law judge or the FAA decisionmaker decides it may be made available to 
the public in accordance with 49 U.S.C. 70114.
    (c) Motion for confidentiality order. If a party is filing, is 
requested to provide in discovery, or intends to offer at the hearing, 
information that the party does not wish to be available to the public, 
the party must file a motion for a confidentiality order.
    (1) The party must state the specific grounds for withholding the 
information from the public.
    (2) If the party claims that the information is protected under 49 
U.S.C. 70114, and if both the complainant and the respondent agree that 
the information is protected under that section, the administrative law 
judge must grant the motion. If one party does not agree that the 
information is protected under 49 U.S.C. 70114 the administrative law 
judge must decide. Either party may file an interlocutory appeal of 
right under Sec. 406.173(c).
    (3) If the party claims that the information should be protected on 
grounds other than those provided by 49 U.S.C. 70114 the administrative 
law judge must grant the motion if, based on the

[[Page 503]]

motion and any response to the motion, the administrative law judge 
determines that disclosure would be detrimental to safety, disclosure 
would not be in the public interest, or that the information is not 
otherwise required to be made available to the public.
    (4) If the administrative law judge determines that the information 
is not necessary to decide the case or would not otherwise lead to the 
discovery of relevant material, the administrative law judge must 
preclude any inquiry into the matter by any party.
    (5) If the administrative law judge determines that the requested 
material may be disclosed during discovery, the administrative law judge 
may order that the material may be discovered and disclosed under 
limited conditions or may be used only under certain terms and 
conditions.
    (6) If the administrative law judge determines that the requested 
material is necessary to decide the case, or would otherwise lead to the 
discovery of relevant material, and that a confidentiality order is 
warranted, the administrative law judge must--
    (i) Provide an opportunity for review of the document by the 
attorneys of record off the record.
    (ii) Provide procedures for excluding the information from the 
record, or order that portion of the record that includes confidential 
information be closed.
    (iii) Order that the parties must not disclose the information in 
any manner and the parties must not use the information in any other 
proceeding.
    (7) If an administrative law judge orders a record closed, in whole 
or in part:
    (i) The closed record is not available to the public.
    (ii) The closed record is available to the parties' attorneys of 
record.
    (iii) The administrative law judge may determine whether the closed 
record is available to the parties, the parties' representatives, or 
other persons such as witnesses for a party.
    (iv) No party, attorney of record, representative of record, or 
person who receives information from such persons, may disclose 
information that has been protected under this section except to a 
person authorized by this section or the administrative law judge to 
receive it.
    (v) If a person other than one authorized by this section desires to 
view or copy a closed record, the person must file a motion to open the 
record.



Sec. 406.119  Computation of time.

    (a) This section applies to any period of time prescribed or allowed 
by this subpart, by notice or order of the administrative law judge or 
the FAA decisionmaker, or by any applicable statute.
    (b) The date of an act, event, or default, after which a designated 
time period begins to run, is not included in a computation of time 
under this subpart.
    (c) The last day of a time period is included in a computation of 
time unless it is a Saturday, Sunday, or a legal holiday. If the last 
day of the time period is a Saturday, Sunday, or legal holiday, the time 
period runs until the end of the next day that is not a Saturday, 
Sunday, or legal holiday.



Sec. 406.121  Extension of time.

    Before an appeal is filed with the FAA decisionmaker, the parties 
may seek an extension of time as follows:
    (a) Extension of time by agreement of the parties. The parties may 
agree to extend for a reasonable period of time for filing a document 
under this subpart with the agreement of the administrative law judge. 
The party seeking the extension of time must submit a draft order to the 
administrative law judge for signature, file it with the Federal Docket 
Management System, and serve it on each party.
    (b) Motion for extension of time. If the parties do not agree to an 
extension of time for filing a document, a party desiring an extension 
may file with the Federal Docket Management System and serve a written 
motion for an extension of time not later than 7 days before the 
document is due unless good cause for the late filing is shown. The 
administrative law judge may grant the extension of time if good cause 
for the extension is shown.
    (c) Failure to rule. If the administrative law judge fails to rule 
on a written motion for an extension of time by the

[[Page 504]]

date the document is due, the motion for an extension of time is granted 
for no more than 20 days after the original date the document was to be 
filed.

[Docket No. FAA-2001-8607, 66 FR 2180, Jan. 10, 2001, as amended at 72 
FR 68476, Dec. 5, 2007]



Sec. 406.123  Waivers.

    Waivers of any rights provided by statute or regulation must be in 
writing or by stipulation made at a hearing and entered into the record. 
The parties must set forth the precise terms of the waiver and any 
conditions.



Sec. 406.127  Complaint and answer in civil penalty adjudications.

    (a) Complaint--(1) Filing. The complainant must file the original 
and one copy of the complaint with the Federal Docket Management System, 
or may file a written motion pursuant to 406.141(f)(1) instead of 
filling a complaint, not later than 20 days after receipt by the 
complainant of a request for hearing. The complainant should suggest a 
location for the hearing when filing the complaint.
    (2) Service. The complainant must personally deliver or mail a copy 
of the complaint to the respondent, or the respondent's attorney or 
representative who has filed a notice of appearance in accordance with 
Sec. 406.107.
    (3) Contents of complaint. The final notice of proposed civil 
penalty issued under Sec. 406.9(d) may be filed as the complaint. A 
complaint must set forth the following in sufficient detail to provide 
notice:
    (i) The facts alleged.
    (ii) Any requirement of the Act, a regulation issued under the Act, 
or any term or condition of a license or permit issued or transferred 
under the Act allegedly violated by the respondent.
    (iii) The proposed civil penalty.
    (b) Answer--(1) Time for filing. The respondent must file an answer 
to the complaint, or may file a written motion pursuant to Sec. 
406.141(f)(2) instead of filing an answer, not later than 30 days after 
service of the complaint.
    (2) Form. The answer must be in writing. The answer may be in the 
form of a letter but must be dated and signed by the person responding 
to the complaint. The answer must be legible, and may be handwritten, 
typed, or printed from a computer.
    (3) Filing and service. A respondent must file the answer with the 
Federal Docket Management System and serve a copy of the answer on the 
agency attorney who filed the complaint.
    (4) Contents of answer--(i) Specific denial of allegations required. 
The respondent must admit, deny, or state that the respondent is without 
sufficient knowledge or information to admit or deny, each numbered 
paragraph of the complaint. Any statement or allegation contained in the 
complaint that is not specifically denied in the answer constitutes an 
admission of the truth of that allegation. An administrative law judge 
shall treat a general denial of the complaint as a failure to file an 
answer.
    (ii) Affirmative defenses. The answer must specifically state any 
affirmative defense that the respondent asserts.
    (iii) Request for relief. The answer may include a brief statement 
of any relief requested.
    (iv) Hearing location. The respondent should suggest a location for 
the hearing when filing the answer.
    (5) Failure to file answer. A respondent's failure to file an answer 
without good cause constitutes an admission of the truth of each 
allegation contained in the complaint.

[Docket No. FAA-2001-8607, 66 FR 2180, Jan. 10, 2001, as amended by 
Amdt. 406-4, 72 FR 17017, Apr. 6, 2007; 72 FR 68476, Dec. 5, 2007]



Sec. 406.133  Amendment of pleadings.

    (a) Time. A party must file with the Federal Docket Management 
System and serve on each other party any amendment to a complaint or an 
answer as follows:
    (1) Not later than 15 days before the scheduled date of a hearing, a 
party may amend a complaint or an answer without the consent of the 
administrative law judge.
    (2) Less than 15 days before the scheduled date of a hearing, the 
administrative law judge may allow amendment of a complaint or an answer 
only for good cause shown in a motion to amend.
    (b) Responses. The administrative law judge must allow a reasonable 
time, but not more than 20 days from the

[[Page 505]]

date of filing, for other parties to respond to an amendment to a 
complaint or answer.

[Docket No. FAA-2001-8607, 66 FR 2180, Jan. 10, 2001, as amended at 72 
FR 68477, Dec. 5, 2007]



Sec. 406.135  Withdrawal of complaint or request for hearing.

    At any time before or during a hearing, the complainant may withdraw 
a complaint or a party may withdraw a request for a hearing without the 
consent of the administrative law judge. If the complainant withdraws 
the complaint or a party withdraws the request for a hearing and the 
answer, the administrative law judge must dismiss the proceedings under 
this subpart with prejudice.



Sec. 406.137  Intervention.

    (a) A person may file with the Federal Docket Management System and 
serve on each other party a motion for leave to intervene as party in an 
adjudication. Except for good cause shown, a motion for leave to 
intervene must be filed not later than 10 days before the hearing.
    (b) The administrative law judge may grant a motion for leave to 
intervene if the administrative law judge finds that--
    (1) Intervention will not unduly broaden the issues or delay the 
proceedings, and
    (2) The intervener will be bound by any order or decision entered in 
the action or the intervener has a property, financial, or other 
legitimate interest that may not be addressed adequately by the parties.
    (c) The administrative law judge may determine the extent to which 
an intervener may participate in the proceedings.

[Docket No. FAA-2001-8607, 66 FR 2180, Jan. 10, 2001, as amended at 72 
FR 68477, Dec. 5, 2007]



Sec. 406.139  Joint procedural or discovery schedule.

    (a) General. The parties may agree to submit a schedule for filing 
all prehearing motions or for conducting discovery or both.
    (b) Form and content of schedule. If the parties agree to a joint 
procedural or discovery schedule, one of the parties must file with the 
Federal Docket Management System and serve the joint schedule, setting 
forth the dates to which the parties have agreed. One of the parties 
must draft an order establishing a joint schedule for the administrative 
law judge.
    (1) The joint schedule may include, but need not be limited to, 
times for requests for discovery, any objections to discovery requests, 
responses to discovery requests, submission of prehearing motions, 
responses to prehearing motions, exchange of exhibits to be introduced 
at the hearing, and lists of witnesses that may be called at the 
hearing.
    (2) Each party must sign the original joint schedule.
    (c) Time. The parties may agree to submit all prehearing motions and 
responses and may agree to close discovery in the proceedings under the 
joint schedule within a reasonable time before the date of the hearing, 
but not later than 15 days before the hearing.
    (d) Order establishing joint schedule. The administrative law judge 
must approve the joint schedule filed by the parties by signing the 
joint schedule and filing it with the Federal Docket Management System.
    (e) Disputes. The administrative law judge must resolve any dispute 
regarding discovery or regarding compliance with the joint schedule as 
soon as possible so that the parties may continue to comply with the 
joint schedule.
    (f) Sanctions for failure to comply with joint schedule. If a party 
fails to comply with the order establishing a joint schedule, the 
administrative law judge may direct that party to comply with a motion 
to compel discovery; or, limited to the extent of the party's failure to 
comply with a motion or discovery request, the administrative law judge 
may:
    (1) Strike that portion of a party's pleadings;
    (2) Preclude prehearing or discovery motions by that party;
    (3) Preclude admission of that portion of a party's evidence at the 
hearing; or

[[Page 506]]

    (4) Preclude that portion of the testimony of that party's witnesses 
at the hearing.

[Docket No. FAA-2001-8607, 66 FR 2180, Jan. 10, 2001, as amended at 72 
FR 68477, Dec. 5, 2007]



Sec. 406.141  Motions.

    (a) General. A party applying for an order or ruling not 
specifically provided in this subpart must do so by motion. A party must 
comply with the requirements of this section when filing a motion for 
consideration by the administrative law judge or the FAA decisionmaker 
on appeal.
    (b) Contents. A party must state the relief sought by the motion and 
the particular grounds supporting that relief. If a party has evidence 
in support of a motion, the party must attach any evidence, including 
affidavits, to the motion.
    (c) Form and time. Except for oral motions heard on the record, a 
motion made prior to the hearing must be in writing. Unless otherwise 
agreed by the parties or for good cause shown, a party must file any 
prehearing motion with the Federal Docket Management System and serve 
each other party not later than 30 days before the hearing.
    (d) Answers to motions. Any party may file and serve an answer, with 
affidavits or other evidence in support of the answer, not later than 10 
days after service of a written motion on that party. When a motion is 
made during a hearing, the answer may be made at the hearing on the 
record, orally or in writing, within a reasonable time determined by the 
administrative law judge.
    (e) Rulings on motions. The administrative law judge must rule on 
all motions as follows:
    (1) Discovery motions. The administrative law judge must resolve all 
pending discovery motions not later than 10 days before the hearing.
    (2) Prehearing motions. The administrative law judge must resolve 
all pending prehearing motions not later than 7 days before the hearing. 
If the administrative law judge issues a ruling or order orally, the 
administrative law judge must serve a written copy of the ruling or 
order, within 3 days, on each party. In all other cases, the 
administrative law judge must issue rulings and orders in writing and 
must serve a copy of the ruling or order on each party.
    (3) Motions made during the hearing. The administrative law judge 
may issue rulings and orders on motions made during the hearing orally. 
Oral rulings or orders on motions must be made on the record.
    (f) Specific motions--(1) Complainant's motion to dismiss a request 
for a hearing as prematurely filed. The complainant may file a motion to 
dismiss a request for a hearing as prematurely filed instead of filing a 
complaint. If the motion is not granted, the complainant must file the 
complaint and must serve a copy of the complaint on each party not later 
than 10 days after service of the administrative law judge's ruling or 
order on the motion to dismiss. If the motion to dismiss is granted and 
the proceedings are terminated without a hearing, the respondent may 
file an appeal in accordance with Sec. 406.175. If required by the 
decision on appeal, the complainant must file a complaint and must serve 
a copy of the complaint on each party not later than 10 days after 
service of the decision on appeal.
    (2) Respondent's motions instead of an answer. A respondent may file 
one or more of the following motions instead of filing an answer. If the 
administrative law judge denies the motion, the respondent must file an 
answer not later than 10 days after service of the denial of the motion.
    (i) Respondent's motion to dismiss complaint for failure to state a 
claim for which a civil penalty may be imposed. A respondent may file a 
motion to dismiss the complaint for failure to state a claim for which a 
civil penalty may be imposed instead of filing an answer. The motion 
must show that the complaint fails to state a violation of the Act, a 
regulation issued under the Act, or any term or condition of a license 
issued or transferred under the Act.
    (ii) Respondent's motion to dismiss allegations or complaint for 
staleness. Instead of filing an answer to the complaint, a respondent 
may move to dismiss the complaint, or that part of the complaint that 
alleges a violation that occurred more than 5 years before an

[[Page 507]]

agency attorney issued a notice of proposed civil penalty to the 
respondent, as provided by 28 U.S.C. 2462.
    (iii) Respondent's motion for more definite statement. A respondent 
may file a motion requesting a more definite statement of the 
allegations contained in the complaint instead of filing an answer. The 
respondent must set forth, in detail, the indefinite or uncertain 
allegations contained in a complaint or response to any pleading and 
must submit the details that the party believes would make the 
allegation or response definite and certain. If the administrative law 
judge grants the motion, the complainant must supply a more definite 
statement not later than 15 days after service of the ruling granting 
the motion. If the complainant fails to supply a more definite 
statement, the administrative law judge must strike the allegations in 
the complaint to which the motion is directed. If the administrative law 
judge denies the motion, the respondent must file an answer and must 
serve a copy of the answer on each party not later than 10 days after 
service of the order of denial.
    (3) Other motions to dismiss. A party may file a motion to dismiss, 
specifying the grounds for dismissal.
    (4) Complainant's motion for more definite statement. The 
complainant may file a motion requesting a more definite statement if an 
answer fails to respond clearly to the allegations in the complaint. The 
complainant must set forth, in detail, the indefinite or uncertain 
allegations contained in the answer and must submit the details that the 
complainant believes would make the allegation or response definite and 
certain. If the administrative law judge grants the motion, the 
respondent must supply a more definite statement not later than 15 days 
after service of the ruling on the motion. If the respondent fails to 
supply a more definite statement, the administrative law judge must 
strike those statements in the answer to which the motion is directed. 
An administrative law judge shall treat a respondent's failure to supply 
a more definite statement as an admission of unanswered allegations in 
the complaint.
    (5) Other motions for more definite statement. A party may file a 
motion for more definite statement of any pleading that requires or 
permits a response under this subpart. A party must set forth, in 
detail, each indefinite or uncertain allegation contained in a pleading 
or response and must submit the details that would make each allegation 
definite and certain.
    (6) Motion to strike. Any party may make a motion to strike any 
insufficient allegation or defense, or any redundant, immaterial, or 
irrelevant matter in a pleading. A party must file a motion to strike 
and must serve a copy on each party before a response to that pleading 
is required under this subpart or, if a response is not required, not 
later than 10 days after service of the pleading.
    (7) Motion for decision. A party may make a motion for decision, 
regarding all or any part of the proceedings, at any time before the 
administrative law judge has issued an initial decision in the 
proceedings. The administrative law judge must grant a party's motion 
for decision if the pleadings, depositions, answers to interrogatories, 
admissions, matters that the administrative law judge has officially 
noticed, or evidence introduced during the hearing show that there is no 
genuine issue of material fact and that the party making the motion is 
entitled to a decision as a matter of law. The party making the motion 
for decision has the burden of showing that there is no genuine issue of 
material fact disputed by the parties.
    (8) Motion for disqualification. A party may file a motion for 
disqualification. A party may file the motion at any time after the 
administrative law judge has been assigned to the proceedings but must 
make the motion before the administrative law judge files an initial 
decision in the proceedings.
    (i) Motion and supporting affidavit. A party must state the grounds 
for disqualification, including, but not limited to, personal bias, 
pecuniary interest, or other factors showing reason for 
disqualification, in the motion for disqualification. A party must 
submit an affidavit with the motion for disqualification that sets 
forth, in detail, the matters alleged to constitute grounds for 
disqualification.

[[Page 508]]

    (ii) Answer. A party may respond to the motion for disqualification 
not later than 5 days after service of the motion for disqualification.
    (iii) Decision on motion for disqualification. The administrative 
law judge must issue a decision on the motion for disqualification not 
later than 15 days after the motion has been filed. If the 
administrative law judge finds that the motion for disqualification and 
supporting affidavit show a basis for disqualification, the 
administrative law judge must withdraw from the proceedings immediately. 
If the administrative law judge finds that disqualification is not 
warranted, the administrative law judge must deny the motion and state 
the grounds for the denial on the record. If the administrative law 
judge fails to rule on a party's motion for disqualification within 15 
days after the motion has been filed, the motion is granted.

[Docket No. FAA-2001-8607, 66 FR 2180, Jan. 10, 2001, as amended at 72 
FR 68477, Dec. 5, 2007]



Sec. 406.143  Discovery.

    (a) Initiation of discovery. Any party may initiate discovery 
described in this section, without the consent or approval of the 
administrative law judge, at any time after a complaint has been filed.
    (b) Methods of discovery. The following methods of discovery are 
permitted under this section: depositions on oral examination or written 
questions of any person; written interrogatories directed to a party; 
requests for production of documents or tangible items to any person; 
and requests for admission by a party. A party is not required to file 
written interrogatories and responses, requests for production of 
documents or tangible items and responses, and requests for admission 
and responses with the Federal Docket Management System or submit any of 
them to the administrative law judge. In the event of a discovery 
dispute, a party must attach a copy of these documents in support of a 
motion filed under this section.
    (c) Service on the agency. A party must serve each discovery request 
directed to the agency or any agency employee with the agency attorney.
    (d) Time for response to discovery request. Unless otherwise 
directed by this subpart or agreed by the parties, a party must respond 
to a request for discovery, including filing objections to a request for 
discovery, not later than 30 days after service of the request.
    (e) Scope of discovery. Subject to the limits on discovery set forth 
in paragraph (f) of this section, a party may discover any matter that 
is not privileged and that is relevant to the subject matter of the 
proceeding. A party may discover information that relates to the claim 
or defense of any party including the existence, description, nature, 
custody, condition, and location of any document or other tangible item 
and the identity and location of any person having knowledge of 
discoverable matter. A party may discover facts known, or opinions held, 
by an expert who any other party expects to call to testify at the 
hearing. A party has no ground to object to a discovery request on the 
basis that the information sought would not be admissible at the hearing 
if the information sought during discovery is reasonably calculated to 
lead to the discovery of admissible evidence.
    (f) Limiting discovery. The administrative law judge must limit the 
frequency and extent of discovery permitted by this section if a party 
shows that--
    (1) The information requested is cumulative or repetitious;
    (2) The information requested can be obtained from another less 
burdensome and more convenient source;
    (3) The party requesting the information has had ample opportunity 
to obtain the information through other discovery methods permitted 
under this section; or
    (4) The method or scope of discovery requested by the party is 
unduly burdensome or expensive.
    (g) Confidentiality order. A party or person who has received a 
discovery request for information that is related to a trade secret, 
confidential or sensitive material, competitive or commercial 
information, proprietary data, or information on research and 
development,

[[Page 509]]

may file and serve a motion for a confidentiality order in accordance 
with Sec. 406.117.
    (h) Protective order. A party or a person who has received a request 
for discovery may file a motion for protective order and must serve a 
copy of the motion for protective order on each party. The party or 
person making the motion must show that the protective order is 
necessary to protect the party or the person from annoyance, 
embarrassment, oppression, or undue burden or expense. As part of the 
protective order, the administrative law judge may:
    (1) Deny the discovery request;
    (2) Order that discovery be conducted only on specified terms and 
conditions, including a designation of the time or place for discovery 
or a determination of the method of discovery; or
    (3) Limit the scope of discovery or preclude any inquiry into 
certain matters during discovery.
    (i) Duty to supplement or amend response. A party who has responded 
to a discovery request has a duty to supplement or amend the response, 
as soon as the information is known, as follows:
    (1) A party must supplement or amend any response to a question 
requesting the identity and location of any person having knowledge of 
discoverable matters.
    (2) A party must supplement or amend any response to a question 
requesting the identity of each person who will be called to testify at 
the hearing as an expert witness and the subject matter and substance of 
that witness' testimony.
    (3) A party must supplement or amend any response that was incorrect 
when made or any response that was correct when made but is no longer 
correct, accurate, or complete.
    (j) Depositions. The following rules apply to all depositions taken 
pursuant to this section:
    (1) Form. A deposition must be taken on the record and reduced to 
writing. The person being deposed must sign the deposition unless the 
parties agree to waive the requirement of a signature.
    (2) Administration of oaths. Within the United States, or a 
territory or possession subject to the jurisdiction of the United 
States, a party must take a deposition before a person authorized to 
administer oaths by the laws of the United States or authorized by the 
law of the place where the examination is held. In a foreign country, a 
party must take a deposition in any manner allowed by the Federal Rules 
of Civil Procedure.
    (3) Notice of deposition. A party must serve a notice of deposition, 
stating the time and place of the deposition and the name and address of 
each person to be examined, on the person to be deposed, must submit the 
notice to the administrative law judge, and must file the notice with 
the Federal Docket Management System, and must serve the notice on each 
party, not later than 7 days before the deposition. A party may serve a 
notice of deposition less than 7 days before the deposition only with 
consent of the administrative law judge. If a subpoena duces tecum is to 
be served on the person to be examined, the party must attach to the 
notice of deposition a copy of the subpoena duces tecum that describes 
the materials to be produced at the deposition.
    (4) Use of depositions. A party may use any part or all of a 
deposition at a hearing authorized under this subpart only upon a 
showing of good cause. The deposition may be used against any party who 
was present or represented at the deposition or who had reasonable 
notice of the deposition.
    (k) Interrogatories. (1) A party may not serve more than 30 
interrogatories to each other party. Each subpart of an interrogatory 
must be counted as a separate interrogatory.
    (2) A party must file a motion for leave to serve more than 30 
interrogatories on a party before serving additional interrogatories on 
a party. The administrative law judge must grant the motion only if the 
party shows good cause for the party's failure to inquire about the 
information previously and that the information cannot reasonably be 
obtained using less burdensome discovery methods or be obtained from 
other sources.
    (3) A party must answer each interrogatory separately and completely 
in writing.

[[Page 510]]

    (4) A party, or the party's attorney or representative of record, 
must sign the party's responses to interrogatories.
    (5) If a party objects to an interrogatory, the party must state the 
objection and the reasons for the objection.
    (6) An opposing party may offer into evidence any part or all of a 
party's responses to interrogatories at a hearing under this subpart to 
the extent that the response is relevant, material, and not repetitious.
    (l) Requests for admission. A party may serve a written request for 
admission of the truth of any matter within the scope of discovery under 
this section or the authenticity of any document described in the 
request. A party must set forth each request for admission separately. A 
party must serve a copy of each document referenced in the request for 
admission unless the document has been provided or is reasonably 
available for inspection and copying.
    (1) Time. A party's failure to respond to a request for admission is 
not later than 30 days after service of the request constitutes an 
admission of the truth of the statement or statements contained in the 
request for admission. The administrative law judge may determine that a 
failure to respond to a request for admission does not constitute an 
admission of the truth if a party shows that the failure was due to 
circumstances beyond the control of the party or the party's attorney or 
representative.
    (2) Response. A party may object to a request for admission. The 
objection must be in writing and signed by the party or the party's 
attorney or representative of record, and must state the reasons for 
objection. A party may specifically deny the truth of the matter or 
describe the reasons why the party is unable to truthfully deny or admit 
the matter. If a party is unable to deny or admit the truth of the 
matter, the party must show that the party has made reasonable inquiry 
into the matter or that the information known to, or readily obtainable 
by, the party is insufficient to enable the party to admit or deny the 
matter. A party may admit or deny any part of the request for admission. 
If an administrative law judge determines that a response does not 
comply with the requirements of this rule or that the response is 
insufficient, the matter is admitted.
    (3) Effect of admission. Any matter admitted or treated as admitted 
under this section is conclusively established for the purpose of the 
hearing and appeal.
    (m) Motion to compel discovery. A party may make a motion to compel 
discovery if a person refuses to answer a question during a deposition, 
a party fails or refuses to answer an interrogatory, a person gives an 
evasive or incomplete answer during a deposition or when responding to 
an interrogatory, or a party fails or refuses to produce documents or 
tangible items. During a deposition, the proponent of a question may 
complete the deposition or may adjourn the examination before making a 
motion to compel if a person refuses to answer.
    (n) Failure to comply with a discovery order or order to compel. If 
a party fails to comply with a discovery order or an order to compel, 
the administrative law judge, limited to the extent of the party's 
failure to comply with the discovery order or motion to compel, may:
    (1) Strike that portion of a party's pleadings;
    (2) Preclude prehearing or discovery motions by that party;
    (3) Preclude admission of that portion of a party's evidence at the 
hearing; or
    (4) Preclude that portion of the testimony of that party's witnesses 
at the hearing.

[Docket No. FAA-2001-8607, 66 FR 2180, Jan. 10, 2001, as amended at 72 
FR 68477, Dec. 5, 2007]



Sec. 406.147  Notice of hearing.

    (a) Notice. The administrative law judge must give each party at 
least 60 days notice of the date, time, and location of the hearing.
    (b) Date, time, and location of the hearing. The administrative law 
judge must set a reasonable date, time, and location for the hearing 
within the United States. The administrative law judge must consider the 
need for discovery and any joint procedural or discovery schedule 
submitted by the parties when

[[Page 511]]

determining the hearing date. The administrative law judge must give due 
regard to the convenience of the parties, the location where the 
majority of the witnesses reside or work, and whether a scheduled air 
carrier serves the location.
    (c) Earlier hearing. With the consent of the administrative law 
judge, the parties may agree to hold the hearing on an earlier date than 
the date specified in the notice of hearing.
    (d) Space hearing consolidated with aviation hearing under 14 CFR 
part 13 subpart G. With the consent of the administrative law judge, the 
parties may agree to hold the hearing, or parts of the hearing, together 
with a hearing under 14 CFR part 13 subpart G if the cases involve some 
common issues of fact. If the hearings are consolidated, the 
administrative law judge may issue a consolidated initial decision 
covering both cases. The Administrator will serve as the FAA 
decisionmaker on appeal for both cases and will issue a consolidated 
decision, with the Associate Administrator for Commercial Space 
Transportation serving as an advisor to the FAA decisionmaker.



Sec. 406.149  Evidence.

    (a) General. A party is entitled to present the party's case or 
defense by oral, documentary, or demonstrative evidence, to submit 
rebuttal evidence, and to conduct any cross-examination that may be 
required for a full and true disclosure of the facts.
    (b) Admissibility. A party may introduce any oral, documentary, or 
demonstrative evidence in support of the party's case or defense. The 
administrative law judge must admit any oral, documentary, or 
demonstrative evidence introduced by a party but must exclude 
irrelevant, immaterial, or unduly repetitious evidence.
    (c) Hearsay evidence. Hearsay evidence is admissible in proceedings 
governed by this subpart. The fact that evidence submitted by a party is 
hearsay goes only to the weight of the evidence and does not affect its 
admissibility.



Sec. 406.151  Standard of proof.

    The administrative law judge must issue an initial decision or must 
rule in a party's favor only if the decision or ruling is supported by, 
and in accordance with, the reliable, probative, and substantial 
evidence contained in the record. In order to prevail, the party with 
the burden of proof must prove the party's case or defense by a 
preponderance of reliable, probative, and substantial evidence.



Sec. 406.153  Burden of proof.

    (a) Except in the case of an affirmative defense, in a civil penalty 
adjudication the burden of proof is on the complainant.
    (b) Except as otherwise provided by statute or rule, the proponent 
of a motion, request, or order has the burden of proof.
    (c) A party who has asserted an affirmative defense has the burden 
of proving the affirmative defense.



Sec. 406.155  Offer of proof.

    A party whose evidence has been excluded by a ruling of the 
administrative law judge may offer the evidence for the record on 
appeal.



Sec. 406.157  Expert or opinion witnesses.

    An employee of the FAA may not be called as an expert or opinion 
witness for any party other than the agency, in any proceeding governed 
by this part. An employee of a respondent may not be called as an expert 
or opinion witness for the complainant in any proceeding governed by 
this part to which the respondent is a party.



Sec. 406.159  Subpoenas.

    (a) Request for subpoena. A party may obtain from the administrative 
law judge a subpoena to compel the attendance of a witness at a 
deposition or hearing or to require the production of documents or 
tangible items. The administrative law judge must deliver the subpoena, 
signed by the administrative law judge but otherwise in blank, to the 
party. The party must complete the subpoena, stating the title of the 
action and the date and time for the witness' attendance or production 
of documents or items. The party who obtained the subpoena must serve 
the subpoena on the witness.
    (b) Motion to quash or modify the subpoena. A party, or any person 
upon

[[Page 512]]

whom a subpoena has been served, may file a motion to quash or modify 
the subpoena at or before the time specified in the subpoena for 
compliance. The applicant must describe, in detail, the basis for the 
motion to quash or modify the subpoena including, but not limited to, a 
statement that the testimony, document, or tangible evidence is not 
relevant to the proceeding, that the subpoena is not reasonably tailored 
to the scope of the proceeding, or that the subpoena is unreasonable and 
oppressive. A motion to quash or modify the subpoena will stay the 
effect of the subpoena pending a decision by the administrative law 
judge on the motion.
    (c) Enforcement of subpoena. Upon a showing that a person has failed 
or refused to comply with a subpoena, the Secretary may apply to the 
appropriate district court of the United States to seek enforcement of 
the subpoena in accordance with 49 U.S.C. 70115(c). A party may request 
the Secretary to seek such enforcement.



Sec. 406.161  Witness fees.

    (a) General. Unless otherwise authorized by the administrative law 
judge, the party who applies for a subpoena to compel the attendance of 
a witness at a deposition or hearing, or the party at whose request a 
witness appears at a deposition or hearing, must pay the witness fees 
described in this section.
    (b) Amount. Except for an employee of the agency who appears at the 
direction of the agency, a witness who appears at a deposition or 
hearing is entitled to the same fees and mileage expenses as are paid to 
a witness in a court of the United States in comparable circumstances.



Sec. 406.163  Record.

    (a) Exclusive record. The transcript of all testimony in the 
hearing; all exhibits received into evidence; the complaint, answer, and 
amendments thereto; all motions, applications, and requests, and 
responses thereto; and all rulings constitute the exclusive record for 
decision of the proceedings and the basis for the issuance of any orders 
in the proceeding.
    (b) A person may keep the original document, data, or other 
evidence, with the consent of the administrative law judge, by 
substituting a legible copy for the record.



Sec. 406.165  Argument before the administrative law judge.

    (a) Argument during the hearing. During the hearing, the 
administrative law judge must give the parties a reasonable opportunity 
to present arguments on the record supporting or opposing motions, 
objections, and rulings if the parties request an opportunity for 
argument. The administrative law judge may request written arguments 
during the hearing if the administrative law judge finds that submission 
of written arguments would be reasonable.
    (b) Final oral argument. At the conclusion of the hearing and before 
the administrative law judge issues an initial decision in the 
proceedings, the parties are entitled to submit oral proposed findings 
of fact and conclusions of law, exceptions to rulings of the 
administrative law judge, and supporting arguments for the findings, 
conclusions, or exceptions. At the conclusion of the hearing, a party 
may waive final oral argument.
    (c) Post-hearing briefs. The administrative law judge may request 
written post-hearing briefs before the administrative law judge issues 
an initial decision if the administrative law judge finds that 
submission of written briefs would be reasonable. If a party files a 
written post-hearing brief, the party must include proposed findings of 
fact and conclusions of law, exceptions to rulings of the administrative 
law judge, and supporting arguments for the findings, conclusions, or 
exceptions. The administrative law judge must give the parties a 
reasonable opportunity, not more than 30 days after receipt of the 
transcript, to prepare and submit the briefs.



Sec. 406.167  Initial decision.

    (a) Contents. The administrative law judge must issue an initial 
decision at the conclusion of the hearing. In each oral or written 
decision, the administrative law judge must include findings of fact and 
conclusions of law, and the grounds supporting those findings and 
conclusions, upon all material issues of fact, the credibility of 
witnesses, the

[[Page 513]]

applicable law, any exercise of the administrative law judge's 
discretion, the amount of any civil penalty found appropriate by the 
administrative law judge, and a discussion of the basis for any order 
issued in the proceedings. The administrative law judge is not required 
to provide a written explanation for rulings on objections, procedural 
motions, and other matters not directly relevant to the substance of the 
initial decision. If the administrative law judge refers to any previous 
unreported or unpublished initial decision, the administrative law judge 
must make copies of that initial decision available to all parties and 
the FAA decisionmaker.
    (b) Oral decision. Except as provided in paragraph (c) of this 
section, at the conclusion of the hearing, the administrative law judge 
must issue the initial decision and order orally on the record.
    (c) Written decision. The administrative law judge may issue a 
written initial decision not later than 30 days after the conclusion of 
the hearing or submission of the last posthearing brief if the 
administrative law judge finds that issuing a written initial decision 
is reasonable. The administrative law judge must serve a copy of any 
written initial decision on each party.



Sec. 406.173  Interlocutory appeals.

    (a) General. Unless otherwise provided in this subpart, a party may 
not appeal a ruling or decision of the administrative law judge to the 
FAA decisionmaker until the initial decision has been entered on the 
record. A decision or order of the FAA decisionmaker on an interlocutory 
appeal does not constitute a final order of the Secretary for the 
purposes of judicial review under 5 U.S.C. chapter 7.
    (b) Interlocutory appeal for cause. If a party files a written 
request for an interlocutory appeal for cause, or orally requests an 
interlocutory appeal for cause, the proceedings are stayed until the 
administrative law judge issues a decision on the request. If the 
administrative law judge grants the request, the proceedings are stayed 
until the FAA decisionmaker issues a decision on the interlocutory 
appeal. The administrative law judge must grant an interlocutory appeal 
for cause if a party shows that delay of the interlocutory appeal would 
be detrimental to the public interest or would result in undue prejudice 
to any party.
    (c) Interlocutory appeals of right. If a party notifies the 
administrative law judge of an interlocutory appeal of right, the 
proceedings are stayed until the FAA decisionmaker issues a decision on 
the interlocutory appeal. A party may file an interlocutory appeal, 
without the consent of the administrative law judge, before an initial 
decision has been entered in the case of:
    (1) A ruling or order by the administrative law judge barring a 
party, or a party's attorney or representative, from the proceedings.
    (2) A ruling or order by the administrative law judge allegedly in 
violation of the limitations on the administrative law judge under Sec. 
406.109(c).
    (3) Failure of the administrative law judge to grant a motion for a 
confidentiality order based on 49 U.S.C. 70114, under Sec. 
406.117(c)(2).
    (4) Failure of the administrative law judge to dismiss the 
proceedings in accordance with Sec. 406.135.
    (d) Procedure. A party must file with the Federal Docket Management 
System and serve each other party a notice of interlocutory appeal, with 
supporting documents, not later than 10 days after the administrative 
law judge's decision forming the basis of an interlocutory appeal of 
right or not later than 10 days after the administrative law judge's 
decision granting an interlocutory appeal for cause. A party must file 
with the Federal Docket Management System a reply brief, if any, and 
serve a copy of the reply brief on each party, not later than 10 days 
after service of the appeal brief. The FAA decisionmaker must render a 
decision on the interlocutory appeal, on the record and as a part of the 
decision in the proceedings, within a reasonable time after receipt of 
the interlocutory appeal.
    (e) Rejection of interlocutory appeal. The FAA decisionmaker may 
reject frivolous, repetitive, or dilatory appeals, and may issue an 
order precluding one or more parties from making further interlocutory 
appeals in a proceeding in which there have been

[[Page 514]]

frivolous, repetitive, or dilatory interlocutory appeals.

[Docket No. FAA-2001-8607, 66 FR 2180, Jan. 10, 2001, as amended at 72 
FR 68477, Dec. 5, 2007]



Sec. 406.175  Appeal from initial decision.

    (a) Notice of appeal. A party may appeal the initial decision, and 
any decision not previously appealed pursuant to 406.173, by filing with 
the Federal Docket Management System and serving on each party a notice 
of appeal. A party must file the notice of appeal not later than 10 days 
after entry of the oral initial decision on the record or service of the 
written initial decision on the parties.
    (b) Issues on appeal. A party may appeal only the following issues:
    (1) Whether each finding of fact is supported by a preponderance of 
reliable, probative, and substantial evidence;
    (2) Whether each conclusion of law is made in accordance with 
applicable law, precedent, and public policy; and
    (3) Whether the administrative law judge committed any prejudicial 
errors during the hearing that support the appeal.
    (c) Perfecting an appeal. Unless otherwise agreed by the parties, a 
party must perfect an appeal, not later than 50 days after entry of the 
oral initial decision on the record or service of the written initial 
decision on the party, by filing an appeal brief.
    (1) Extension of time by agreement of the parties. The parties may 
agree to extend the time for perfecting the appeal with the consent of 
the FAA decisionmaker, who serves a letter confirming the extension of 
time on each party.
    (2) Motion for extension. If the parties do not agree to an 
extension of time for perfecting an appeal, a party desiring an 
extension of time may file a motion for an extension and must serve a 
copy of the motion on each party. The FAA decisionmaker may grant an 
extension if good cause for the extension is shown in the motion.
    (d) Appeal briefs. A party must file the appeal brief with the 
Federal Docket Management System and serve each party.
    (1) A party must set forth, in detail, the party's specific 
objections to the initial decision or rulings in the appeal brief. A 
party also must set forth, in detail, the basis for the appeal, the 
reasons supporting the appeal, and the relief requested in the appeal. 
If the party relies on evidence contained in the record for the appeal, 
the party must specifically refer to the pertinent evidence contained in 
the record in the appeal brief.
    (2) The FAA decisionmaker may dismiss an appeal, on the FAA 
decisionmaker's own initiative or upon motion of any other party, where 
a party has filed a notice of appeal but fails to perfect the appeal by 
timely filing an appeal brief.
    (e) Reply brief. Unless otherwise agreed by the parties, any party 
may file a reply brief with the Federal Docket Management System and 
serve on each other party not later than 35 days after the appeal brief 
has been served on that party. If the party relies on evidence contained 
in the record for the reply, the party must specifically refer to the 
pertinent evidence contained in the record in the reply brief.
    (1) Extension of time by agreement of the parties. The parties may 
agree to extend the time for filing a reply brief with the consent of 
the FAA decisionmaker, who will serve a letter confirming the extension 
of time on each party.
    (2) Motion for extension. If the parties do not agree to an 
extension of time for filing a reply brief, a party desiring an 
extension of time may file and serve a motion for an extension and must 
serve a copy of the motion on each party. The FAA decisionmaker may 
grant an extension if good cause for the extension is shown in the 
motion.
    (f) Other briefs. The FAA decisionmaker may allow any person to 
submit an amicus curiae brief in an appeal of an initial decision. A 
party may not file more than one appeal brief or reply brief without 
permission of the FAA decisionmaker. A party may file with the Federal 
Docket Management System a motion for permission to file an additional 
brief and must serve a copy of the motion on each other party. The party 
may not file the additional brief

[[Page 515]]

with the motion. The FAA decisionmaker may grant permission to file an 
additional brief if the party demonstrates good cause for allowing 
additional argument on the appeal. The FAA decisionmaker will allow a 
reasonable time for the party to file the additional brief.
    (g) Number of copies. A party must file the original brief and two 
copies of the brief with the Federal Docket Management System and serve 
one copy on each other party.
    (h) Oral argument. The FAA decisionmaker has sole discretion to 
permit oral argument on the appeal. On the FAA decisionmaker's own 
initiative or upon written motion by any party, the FAA decisionmaker 
may find that oral argument will contribute substantially to the 
development of the issues on appeal and may grant the parties an 
opportunity for oral argument.
    (i) Waiver of objections on appeal. If a party fails to object to 
any alleged error regarding the proceedings in an appeal or a reply 
brief, the party waives any objection to the alleged error. The FAA 
decisionmaker is not required to consider any objection or argument in a 
brief if the party does not specifically refer in the brief to the 
pertinent evidence from the record.
    (j) FAA decisionmaker's decision on appeal. The FAA decisionmaker 
will review the record, the briefs on appeal, and the oral argument, if 
any, to determine if the administrative law judge committed prejudicial 
error in the proceedings or that the initial decision should be 
affirmed, modified, or reversed. The FAA decisionmaker may affirm, 
modify, or reverse the initial decision, make any necessary findings, or 
may remand the case for any proceedings that the FAA decisionmaker 
determines may be necessary.
    (1) The FAA decisionmaker may raise any issue, on the FAA 
decisionmaker's own initiative, that is required for proper disposition 
of the proceedings. The FAA decisionmaker will give the parties a 
reasonable opportunity to submit arguments on the new issues before 
making a decision on appeal. If an issue raised by the FAA decisionmaker 
requires the consideration of additional testimony or evidence, the FAA 
decisionmaker will remand the case to the administrative law judge for 
further proceedings and an initial decision related to that issue. If an 
issue raised by the FAA decisionmaker is solely an issue of law or the 
issue was addressed at the hearing but was not raised by a party in the 
briefs on appeal, a remand of the case to the administrative law judge 
for further proceedings is not required but may be provided in the 
discretion of the FAA decisionmaker.
    (2) The FAA decisionmaker will issue the final decision and order of 
the Administrator on appeal in writing and will serve a copy of the 
decision and order on each party.
    (3) A final decision and order of the FAA decisionmaker is precedent 
in any other civil penalty action under this part. Any issue, finding or 
conclusion, order, ruling, or initial decision of an administrative law 
judge that has not been appealed to the FAA decisionmaker is not 
precedent in any other civil penalty action.

[Docket No. FAA-2001-8607, 66 FR 2180, Jan. 10, 2001, as amended at 72 
FR 68477, Dec. 5, 2007]



Sec. 406.177  Petition to reconsider or modify a final decision and order of the FAA decisionmaker on appeal.

    (a) General. Any party may petition the FAA decisionmaker to 
reconsider or modify a final decision and order issued by the FAA 
decisionmaker on appeal from an initial decision. A party must file a 
petition to reconsider or modify with the Federal Docket Management 
System not later than 30 days after service of the FAA decisionmaker's 
final decision and order on appeal and must serve a copy of the petition 
on each party. The FAA decisionmaker will not reconsider or modify an 
initial decision and order issued by an administrative law judge that 
has not been appealed by any party to the FAA decisionmaker.
    (b) Contents. A party must state briefly and specifically the 
alleged errors in the final decision and order on appeal, the relief 
sought by the party, and the grounds that support, the petition to 
reconsider or modify.
    (1) If the petition is based, in whole or in part, on allegations 
regarding the

[[Page 516]]

consequences of the FAA decisionmaker's decision, the party must 
describe these allegations and must describe, and support, the basis for 
the allegations.
    (2) If the petition is based, in whole or in part, on new material 
not previously raised in the proceedings, the party must set forth the 
new material and include affidavits of prospective witnesses and 
authenticated documents that would be introduced in support of the new 
material. The party must explain, in detail, why the new material was 
not discovered through due diligence prior to the hearing.
    (c) Repetitious and frivolous petition. The FAA decisionmaker will 
not consider a repetitious or frivolous petition. The FAA decisionmaker 
may summarily dismiss any repetitious or frivolous petition to 
reconsider or modify.
    (d) Reply to petition. Any other party may reply to a petition to 
reconsider or modify, not later than 10 days after service of the 
petition on that party, by filing a reply. A party must serve a copy of 
the reply on each party.
    (e) Effect of filing petition. Unless otherwise ordered by the FAA 
decisionmaker, filing a petition under this section stays the effective 
date of the FAA decisionmaker's final decision and order on appeal, and 
tolls the time allowed for judicial review.
    (f) FAA decisionmaker's decision on petition. The FAA decisionmaker 
may affirm, modify, or reverse the final decision and order on appeal, 
or may remand the case for any proceedings that the FAA decisionmaker 
determines may be necessary.

[Docket No. FAA-2001-8607, 66 FR 2180, Jan. 10, 2001, as amended at 72 
FR 68477, Dec. 5, 2007]



Sec. 406.179  Judicial review of a final decision and order.

    (a) A person may seek judicial review of a final decision and order 
of the FAA decisionmaker as provided in 5 U.S.C. chapter 7 and 28 U.S.C. 
1331. A party seeking judicial review must file with a United States 
district court.
    (b) In accordance with Sec. 406.9(e)(iv), if a person seeks 
judicial review not later than 60 days after the final decision and 
order has been served on the respondent, the final decision and order is 
stayed.
    (c) In accordance with Sec. 406.9(i), if a respondent does not pay 
a civil penalty and does not file an appeal with the United States 
district court within 60 days after service of the final decision and 
order, the FAA may refer the order to the United States Department of 
Treasury or Department of Justice to collect the civil penalty.

[[Page 517]]



                         SUBCHAPTER C_LICENSING



                           PART 411 [RESERVED]



PART 413_LICENSE APPLICATION PROCEDURES--Table of Contents




Sec.
413.1 Scope of this part.
413.3 Who must obtain a license or permit.
413.5 Pre-application consultation.
413.7 Application.
413.9 Confidentiality.
413.11 Acceptance of an application.
413.13 Complete application.
413.15 Review period.
413.17 Continuing accuracy of application; supplemental information; 
          amendment.
413.19 Issuing a license or permit.
413.21 Denial of a license application.
413.23 License or permit renewal.

    Authority: 49 U.S.C. 70101-70121.

    Source: Amdt. 413-03, 64 FR 19614, Apr. 21, 1999, unless otherwise 
noted.



Sec. 413.1  Scope of this part.

    (a) This part explains how to apply for a license or experimental 
permit. These procedures apply to all applications for issuing a license 
or permit, transferring a license, and renewing a license or permit.
    (b) Use the following table to locate specific requirements:

------------------------------------------------------------------------
                            Subject                                Part
------------------------------------------------------------------------
(1) Obtaining a Launch License.................................      415
(2) License to Operate a Launch Site...........................      420
(3) Launch and Reentry of a Reusable Launch Vehicle (RLV)......      431
(4) License to Operate a Reentry Site..........................      433
(5) Reentry of a Reentry Vehicle other than a Reusable Launch        435
 Vehicle (RLV).................................................
(6) Experimental Permits.......................................      437
------------------------------------------------------------------------


[Doc. No. FAA-2006-24197, 72 FR 17017, Apr. 6, 2007]



Sec. 413.3  Who must obtain a license or permit.

    (a) A person must obtain a license in accordance with this section, 
unless eligible for an experimental permit under paragraph (f) of this 
section.
    (b) A person must obtain a license to--
    (1) Launch a launch vehicle from the United States;
    (2) Operate a launch site within the United States;
    (3) Reenter a reentry vehicle in the United States; or
    (4) Operate a reentry site within the United States.
    (c) A person who is a U.S. citizen or an entity organized under the 
laws of the United States or any State must obtain a license to--
    (1) Launch a launch vehicle outside the United States;
    (2) Operate a launch site outside the United States;
    (3) Reenter a reentry vehicle outside the United States; or
    (4) Operate a reentry site outside the United States.
    (d) A foreign entity in which a United States citizen has a 
controlling interest must obtain a license to launch a launch vehicle 
from or to operate a launch site in--
    (1) Any place that is outside the territory or territorial waters of 
any nation, unless there is an agreement in force between the United 
States and a foreign nation providing that such foreign nation has 
jurisdiction over the launch or the operation of the launch site; or
    (2) The territory of any foreign nation, including its territorial 
waters, if there is an agreement in force between the United States and 
that foreign nation providing that the United States has jurisdiction 
over the launch or the operation of the launch site.
    (e) A foreign entity in which a U.S. citizen has a controlling 
interest must obtain a license to reenter a reentry vehicle or to 
operate a reentry site in--
    (1) Any place that is outside the territory or territorial waters of 
any nation, unless there is an agreement in force between the United 
States and a foreign nation providing that such foreign nation has 
jurisdiction over the reentry or the operation of the reentry site; or
    (2) The territory of any foreign nation if there is an agreement in 
force between the United States and that foreign nation providing that 
the United States has jurisdiction over the reentry or the operation of 
the reentry site.

[[Page 518]]

    (f) A person, individual, or foreign entity otherwise requiring a 
license under this section may instead obtain an experimental permit to 
launch or reenter a reusable suborbital rocket under part 437 of this 
chapter.

[Doc. No. FAA-2006-24197, 72 FR 17017, Apr. 6, 2007]



Sec. 413.5  Pre-application consultation.

    A prospective applicant must consult with the FAA before submitting 
an application to discuss the application process and possible issues 
relevant to the FAA's licensing or permitting decision. Early 
consultation helps an applicant to identify possible regulatory issues 
at the planning stage when changes to an application or to proposed 
licensed or permitted activities are less likely to result in 
significant delay or costs to the applicant.

[Doc. No. FAA-2006-24197, 72 FR 17018, Apr. 6, 2007]



Sec. 413.7  Application.

    (a) Form. An application must be in writing, in English and filed in 
duplicate with the Federal Aviation Administration, Associate 
Administrator for Commercial Space Transportation, Room 331, 800 
Independence Avenue, SW., Washington, DC 20591. Attention: Application 
Review.
    (b) Administrative information. An application must identify the 
following:
    (1) The name and address of the applicant;
    (2) The name, address, and telephone number of any person to whom 
inquiries and correspondence should be directed; and
    (3) The type of license or permit for which the applicant is 
applying.
    (c) Signature and certification of accuracy. An application must be 
legibly signed, dated, and certified as true, complete, and accurate by 
one of the following:
    (1) For a corporation: An officer or other individual authorized to 
act for the corporation in licensing or permitting matters.
    (2) For a partnership or a sole proprietorship: A general partner or 
proprietor, respectively.
    (3) For a joint venture, association, or other entity: An officer or 
other individual authorized to act for the joint venture, association, 
or other entity in licensing or permitting matters.
    (d) Safety approval. If the applicant proposes to include a safety 
element for which the FAA issued a safety approval under part 414 in the 
proposed license activity, the applicant must--
    (1) Identify the safety approval in the application and explain the 
proposed use of the approved safety element.
    (2) Show that the proposed use of the approved safety element is 
consistent with the designated scope specified in the safety approval.
    (3) Certify that the safety element will be used according to any 
terms and conditions of the issued safety approval.
    (e) Measurement system consistency. For each analysis, an applicant 
must employ a consistent measurements system, whether English or metric, 
in its application and licensing information.

[Amdt. 413-03, 64 FR 19614, Apr. 21, 1999, as amended by Amdt. 413-6, 71 
FR 46852, Aug. 15, 2006; Amdt. 413-8, 71 FR 51972, Aug. 31, 2006; Amdt. 
413-7, 71 FR 56005, Sept. 26, 2006; Amdt. 413-9, 72 FR 17018, Apr. 6, 
2007]



Sec. 413.9  Confidentiality.

    (a) Any person furnishing information or data to the FAA may request 
in writing that trade secrets or proprietary commercial or financial 
data be treated as confidential. The request must be made at the time 
the information or data is submitted, and state the period of time for 
which confidential treatment is desired.
    (b) Information or data for which any person or agency requests 
confidentiality must be clearly marked with an identifying legend, such 
as ``Proprietary Information,'' ``Proprietary Commercial Information,'' 
``Trade Secret,'' or ``Confidential Treatment Requested.'' Where this 
marking proves impracticable, a cover sheet containing the identifying 
legend must be securely attached to the compilation of information or 
data for which confidential treatment is requested.
    (c) If a person requests that previously submitted information or 
data be treated confidentially, the FAA will do so to the extent 
practicable in light of any prior distribution of the information or 
data.

[[Page 519]]

    (d) Information or data for which confidential treatment has been 
requested or information or data that qualifies for exemption under 
section 552(b)(4) of Title 5, United States Code, will not be disclosed 
to the public unless the Associate Administrator determines that the 
withholding of the information or data is contrary to the public or 
national interest.



Sec. 413.11  Acceptance of an application.

    The FAA will initially screen an application to determine whether it 
is complete enough for the FAA to start its review. After completing the 
initial screening, the FAA will notify the applicant in writing of one 
of the following:
    (a) The FAA accepts the application and will initiate the reviews 
required to make a decision about the license or permit; or
    (b) The application is so incomplete or indefinite that the FAA 
cannot start to evaluate it. The FAA will reject it and notify the 
applicant, stating each reason for rejecting it and what action the 
applicant must take for the FAA to accept the application. The FAA may 
return a rejected application to the applicant or may hold it until the 
applicant takes the required actions.

[Doc. No. FAA-2006-24197, 72 FR 17018, Apr. 6, 2007]



Sec. 413.13  Complete application.

    The FAA's acceptance of an application does not mean it has 
determined that the application is complete. If, in addition to the 
information required by this chapter, the FAA requires other information 
necessary for a determination that public health and safety, safety of 
property, and national security and foreign policy interests of the 
United States are protected during the conduct of a licensed or 
permitted activity, an applicant must submit the additional information.

[Doc. No. FAA-2006-24197, 72 FR 17018, Apr. 6, 2007]



Sec. 413.15  Review period.

    (a) Review period duration. Unless otherwise specified in this 
chapter, the FAA reviews and makes a decision on an application within 
180 days of receiving an accepted license application or within 120 days 
of receiving an accepted permit application.
    (b) Review period tolled. If an accepted application does not 
provide sufficient information to continue or complete the reviews or 
evaluations required by this chapter for a licensing or permitting 
determination, or an issue exists that would affect a determination, the 
FAA notifies the applicant, in writing, and informs the applicant of any 
information required to complete the application. If the FAA cannot 
review an accepted application because of lack of information or for any 
other reason, the FAA will toll the 180-day or 120-day review period 
until the FAA receives the information it needs or the applicant 
resolves the issue.
    (c) Notice. If the FAA does not make a decision within 120 days of 
receiving an accepted license application or within 90 days of receiving 
an accepted permit application, the FAA informs the applicant, in 
writing, of any outstanding information needed to complete the review, 
or of any issues that would affect the decision.

[Doc. No. FAA-2006-24197, 72 FR 17018, Apr. 6, 2007]



Sec. 413.17  Continuing accuracy of application; supplemental information; amendment.

    (a) An applicant must ensure the continuing accuracy and 
completeness of information furnished to the FAA as part of a pending 
license or permit application. If at any time the information an 
applicant provides is no longer accurate and complete in all material 
respects, the applicant must submit new or corrected information. As 
part of this submission, the applicant must recertify the accuracy and 
completeness of the application under Sec. 413.7. If an applicant does 
not comply with any of the requirements set forth in this paragraph, the 
FAA can deny the license or permit application.
    (b) An applicant may amend or supplement a license or permit 
application at any time before the FAA issues or transfers the license 
or permit.
    (c) Willful false statements made in any application or document 
relating to an application, license, or permit

[[Page 520]]

are punishable by fine and imprisonment under section 1001 of Title 18, 
United States Code, and by administrative sanctions in accordance with 
part 405 of this chapter.

[Doc. No. FAA-2006-24197, 72 FR 17018, Apr. 6, 2007]



Sec. 413.19  Issuing a license or permit.

    After the FAA completes its reviews and makes the decisions required 
by this chapter, the FAA issues a license or permit to the applicant.

[Doc. No. FAA-2006-24197, 72 FR 17019, Apr. 6, 2007]



Sec. 413.21  Denial of a license application.

    (a) The FAA informs an applicant, in writing, if it denies an 
application and states the reasons for denial.
    (b) If the FAA has denied an application, the applicant may either:
    (1) Attempt to correct any deficiencies identified and ask the FAA 
to reconsider the revised application. The FAA has 60 days or the number 
of days remaining in the review period, whichever is greater, within 
which to reconsider the decision; or
    (2) Request a hearing in accordance with part 406 of this chapter, 
for the purpose of showing why the application should not be denied.
    (c) An applicant whose license application is denied after 
reconsideration under paragraph (b)(1) of this section may request a 
hearing in accordance with paragraph (b)(2) of this section.

[Amdt. 413-03, 64 FR 19614, Apr. 21, 1999, as amended by Amdt. 413-9, 72 
FR 17019, Apr. 6, 2007]



Sec. 413.23  License or permit renewal.

    (a) Eligibility. A licensee or permittee may apply to renew its 
license or permit by submitting to the FAA a written application for 
renewal at least 90 days before the license expires or at least 60 days 
before the permit expires.
    (b) Application. (1) A license or permit renewal application must 
satisfy the requirements set forth in this part and any other applicable 
part of this chapter.
    (2) The application may incorporate by reference information 
provided as part of the application for the expiring license or permit, 
including any modifications to the license or permit.
    (3) An applicant must describe any proposed changes in its conduct 
of licensed or permitted activities and provide any additional 
clarifying information required by the FAA.
    (c) Review of application. The FAA reviews the application to 
determine whether to renew the license or permit for an additional term. 
The FAA may incorporate by reference any findings that are part of the 
record for the expiring license or permit.
    (d) Renewal of license or permit. After the FAA finishes its 
reviews, the FAA issues an order modifying the expiration date of the 
license or permit. The FAA may impose additional or revised terms and 
conditions necessary to protect public health and safety and the safety 
of property and to protect U.S. national security and foreign policy 
interests.
    (e) Denial of license or permit renewal. The FAA informs a licensee 
or permittee, in writing, if the FAA denies the application for renewal 
and states the reasons for denial. If the FAA denies an application, the 
licensee or permittee may follow the procedures of Sec. 413.21 of this 
part.

[Doc. No. FAA-2006-24197, 72 FR 17019, Apr. 6, 2007]



PART 414_SAFETY APPROVALS--Table of Contents




                            Subpart A_General

Sec.
414.1 Scope.
414.3 Definitions.
414.5 Applicability.
414.7 Eligibility.

                    Subpart B_Application Procedures

414.9 Pre-application consultation.
414.11 Application.
414.13 Confidentially.
414.15 Processing the initial application.
414.17 Maintaining the continued accuracy of the initial application.

              Subpart C_Safety Approval Review and Issuance

414.19 Technical criteria for reviewing a safety approval application.
414.21 Terms and conditions for issuing a safety approval; duration of a 
          safety approval.

[[Page 521]]

414.23 Maintaining the continued accuracy of the safety approval 
          application.
414.25 Safety approval records.
414.27 Safety approval renewal.
414.29 Safety approval transfer.
414.31 Monitoring compliance with the terms and conditions of a safety 
          approval.
414.33 Modification, suspension, or revocation of a safety approval.
414.35 Public notification of the criteria by which a safety approval 
          was issued.

                       Subpart D_Appeal Procedures

414.37 Hearings in safety approval actions.
414.39 Submissions; oral presentations in safety approval actions.
414.41 Administrative law judge's recommended decision in safety 
          approval actions.

    Authority: 49 U.S.C. 106(g), 40113, 44701.

    Source: Docket No. FAA-2005-21332, 71 FR 46853, Aug. 15, 2006, 
unless otherwise noted.



                            Subpart A_General



Sec. 414.1  Scope.

    This part establishes procedures for obtaining a safety approval and 
renewing and transferring an existing safety approval. Safety approvals 
issued under this part may be used to support the application review for 
one or more launch or reentry license requests under other parts of this 
chapter.



Sec. 414.3  Definitions.

    Safety approval. For purposes of this part, a safety approval is an 
FAA document containing the FAA determination that one or more of the 
safety elements listed in paragraphs (1) and (2) of this definition, 
when used or employed within a defined envelope, parameter, or 
situation, will not jeopardize public health and safety or safety of 
property. A safety approval may be issued independent of a license, and 
it does not confer any authority to conduct activities for which a 
license is required under 14 CFR chapter III. A safety approval does not 
relieve its holder of the duty to comply with all applicable 
requirements of law or regulation that may apply to the holder's 
activities.
    (1) Launch vehicle, reentry vehicle, safety system, process, 
service, or any identified component thereof; or
    (2) Qualified and trained personnel, performing a process or 
function related to licensed launch activities or vehicles.
    Safety element. For purposes of this part, a safety element is any 
one of the items or persons (personnel) listed in paragraphs (1) and (2) 
of the definition of ``safety approval'' in this section.



Sec. 414.5  Applicability.

    This part applies to an applicant that wants to obtain a safety 
approval for any of the safety elements defined under this part and to 
persons granted a safety approval under this part. Any person eligible 
under this part may apply to become the holder of a safety approval.



Sec. 414.7  Eligibility.

    (a) There is no citizenship requirement to obtain a safety approval.
    (b) You may be eligible for a safety approval if you are--
    (1) A manufacturer or designer of a launch or reentry vehicle or 
component thereof;
    (2) The designer or developer of a safety system or process; or
    (3) Personnel who perform safety critical functions in conducting a 
licensed launch or reentry.
    (c) A safety approval applicant must have sufficient knowledge and 
expertise to show that the design and operation of the safety element 
for which safety approval is sought qualify for a safety approval.
    (d) Only the safety elements defined under this part are eligible 
for a safety approval.



                    Subpart B_Application Procedures



Sec. 414.9  Pre-application consultation.

    The applicant must consult with the FAA before submitting an 
application. Unless the applicant or the FAA requests another form of 
consultation, consultation is oral discussion with the FAA about the 
application process and the potential issues relevant to the FAA's 
safety approval decision.



Sec. 414.11  Application.

    (a) The application must be in writing, in English, and filed in 
duplicate

[[Page 522]]

with the Federal Aviation Administration, Associate Administrator for 
Commercial Space Transportation, 800 Independence Avenue, SW., 
Washington, DC 20591.
    (b) The application must identify the following basic information:
    (1) Name and address of the applicant.
    (2) Name, address, and telephone number of any person to whom 
inquiries and correspondence should be directed.
    (3) Safety element (i.e., launch vehicle, reentry vehicle, safety 
system, process, service, or any identified component thereof; or 
personnel) for which the applicant seeks a safety approval.
    (c) The application must contain the following technical 
information:
    (1) A Statement of Conformance letter, describing the specific 
criteria the applicant used to show the adequacy of the safety element 
for which a safety approval is sought, and showing how the safety 
element complies with the specific criteria.
    (2) The specific operating limits for which the safety approval is 
sought.
    (3) The following as applicable:
    (i) Information and analyses required under this chapter that may be 
applicable to demonstrating safe performance of the safety element for 
which the safety approval is sought.
    (ii) Engineering design and analyses that show the adequacy of the 
proposed safety element for its intended use, such that the use in a 
licensed launch or reentry will not jeopardize public health or safety 
or the safety of property.
    (iii) Relevant manufacturing processes.
    (iv) Test and evaluation procedures.
    (v) Test results.
    (vi) Maintenance procedures.
    (vii) Personnel qualifications and training procedures.
    (d) The application must be in English, legibly signed, dated, and 
certified as true, complete, and accurate by one of the following:
    (1) For a corporation, an officer or other individual authorized to 
act for the corporation in licensing or safety approval matters.
    (2) For a partnership or a sole proprietorship, a general partner or 
proprietor, respectively.
    (3) For a joint venture, association, or other entity, an officer or 
other individual duly authorized to act for the joint venture, 
association, or other entity in licensing matters.
    (e) Failure to comply with any of the requirements set forth in this 
section is sufficient basis for denial of a safety approval application.



Sec. 414.13  Confidentiality.

    (a) To ensure confidentiality of data or information in the 
application, the applicant must--
    (1) Send a written request with the application that trade secrets 
or proprietary commercial or financial data be treated as confidential, 
and include in the request the specific time frame confidential 
treatment is required.
    (2) Mark data or information that require confidentiality with an 
identifying legend, such as ``Proprietary Information,'' ``Proprietary 
Commercial Information,'' ``Trade Secret,'' or ``Confidential Treatment 
Requested.'' Where this marking proves impracticable, attach a cover 
sheet that contains the identifying legend to the data or information 
for which confidential treatment is sought.
    (b) If the applicant requests confidential treatment for previously 
submitted data or information, the FAA will honor that request to the 
extent practicable in case of any prior distribution of the data or 
information.
    (c) Data or information for which confidential treatment is 
requested or data or information that qualifies for exemption under 
section 552(b)(4) of Title 5, U.S.C., will not be disclosed to the 
public unless the Associate Administrator determines that withholding 
the data or information is contrary to the public or national interest.
    (d) If the proposed criteria for evaluating a safety approval is 
secret, as classified by the U.S. Government, or the applicant wants it 
to remain proprietary or confidential, it cannot be used as a basis for 
issuance of a safety approval.

[[Page 523]]



Sec. 414.15  Processing the initial application.

    (a) The FAA will initially screen an application to determine if the 
application is sufficiently complete to enable the FAA to initiate the 
reviews or evaluations required under this part.
    (b) After completing the initial screening, the FAA will inform the 
applicant in writing of one of the following:
    (1) The FAA accepts the application and will begin the reviews or 
evaluations required for a safety approval determination under this 
part.
    (2) The FAA rejects the application because it is incomplete or 
indefinite making initiation of the reviews or evaluations required for 
a safety approval determination under this part inappropriate.
    (c) The written notice will state the reason(s) for rejection and 
corrective actions necessary for the application to be accepted. The FAA 
may return a rejected application to the applicant or may hold it until 
the applicant provides more information.
    (d) The applicant may withdraw, amend, or supplement an application 
anytime before the FAA makes a final determination on the safety 
approval application by making a written request to the Associate 
Administrator. If the applicant amends or supplements the initial 
application, the revised application must meet all the applicable 
requirements under this part.



Sec. 414.17  Maintaining the continued accuracy of the initial application.

    The applicant is responsible for the continuing accuracy and 
completeness of information provided to the FAA as part of the safety 
approval application. If at any time after submitting the application, 
circumstances occur that cause the information to no longer be accurate 
and complete in any material respect, the applicant must submit a 
written statement to the Associate Administrator explaining the 
circumstances and providing the new or corrected information. The 
revised application must meet all requirements under Sec. 414.11.



              Subpart C_Safety Approval Review and Issuance



Sec. 414.19  Technical criteria for reviewing a safety approval application.

    (a) The FAA will determine whether a safety element is eligible for 
and may be issued a safety approval. We will base our determination on 
performance-based criteria, against which we may assess the effect on 
public health and safety and on safety of property, in the following 
hierarchy:
    (1) FAA or other appropriate Federal regulations.
    (2) Government-developed or adopted standards.
    (3) Industry consensus performance-based criteria or standard.
    (4) Applicant-developed criteria. Applicant-developed criteria are 
performance standards customized by the manufacturer that intends to 
produce the system, system component, or part. The applicant-developed 
criteria must define--
    (i) Design and minimum performance;
    (ii) Quality assurance system requirements;
    (iii) Production acceptance test specifications; and
    (iv) Continued operational safety monitoring system characteristics.
    (b) The applicant must allow the FAA to make its proposed safety 
approval criteria available to the public as part of the approval 
process.



Sec. 414.21  Terms and conditions for issuing a safety approval; duration of a safety approval.

    (a) The FAA will issue a safety approval to an applicant that meets 
all the requirements under this part.
    (b) The scope of the safety approval will be limited by the scope of 
the safety demonstration contained in the application on which the FAA 
based the decision to grant the safety approval.
    (c) The FAA will determine specific terms and conditions of a safety 
approval individually, limiting the safety approval to the scope for 
which the safety-approved launch or reentry element was approved. The 
terms and conditions will include reporting requirements tailored to the 
individual safety approval.

[[Page 524]]

    (d) A safety approval is valid for five years and may be renewed.
    (e) If the FAA denies the application, the applicant may correct any 
deficiency the FAA identified and request a reconsideration of the 
revised application. The applicant also has the right to appeal a denial 
as set forth in subpart D of this part.



Sec. 414.23  Maintaining the continued accuracy of the safety approval application.

    (a) The holder of a safety approval must ensure the continued 
accuracy and completeness of representations contained in the safety 
approval application, on which the approval was issued, for the entire 
term of the safety approval.
    (b) If any representation contained in the application that is 
material to public health and safety or safety of property ceases to be 
accurate and complete, the safety approval holder must prepare and 
submit a revised application according to Sec. 414.11 under this part. 
The safety approval holder must point out any part of the safety 
approval or the associated application that would be changed or affected 
by a proposed modification. The FAA will review and make a determination 
on the revised application under the terms of this part.
    (c) If the FAA approves the revised application, the FAA will 
provide written notice to the holder, stating the terms and conditions 
to which the approval is subject.



Sec. 414.25  Safety approval records.

    The holder of a safety approval must maintain all records necessary 
to verify that the holder's activities are consistent with the 
representations contained in the application for which the approval was 
issued for the duration of the safety approval plus one year.



Sec. 414.27  Safety approval renewal.

    (a) Eligibility. A holder of a safety approval may apply to renew it 
by sending the FAA a written application at least 90 days before the 
expiration date of the approval.
    (b) Application. (1) A safety approval renewal application must meet 
all the requirements under Sec. 414.11.
    (2) The application may incorporate by reference information 
provided as part of the application for the expiring safety approval or 
any modification to that approval.
    (3) Any proposed changes in the conduct of a safety element for 
which the FAA has issued a safety approval must be described and must 
include any added information necessary to support the fitness of the 
proposed changes to meet the criteria upon which the FAA evaluated the 
safety approval application.
    (c) Review of application. The FAA conducts the reviews required 
under this part to determine whether the safety approval may be renewed. 
We may incorporate by reference any findings that are part of the record 
for the expiring safety approval.
    (d) Grant of safety approval renewal. If the FAA makes a favorable 
safety approval determination, the FAA issues an order that amends the 
expiration date of the safety approval or issues a new safety approval. 
The FAA may impose added or revised terms and conditions necessary to 
protect public health and safety and the safety of property.
    (e) Written notice. The FAA will provide written notice to the 
applicant of our determination on the safety approval renewal request.
    (f) Denial of a safety approval renewal. If the FAA denies the 
renewal application, the applicant may correct any deficiency the FAA 
identified and request a reconsideration of the revised application. The 
applicant also has the right to appeal a denial as set forth in subpart 
D of this part.



Sec. 414.29  Safety approval transfer.

    (a) Only the FAA may approve a transfer of a safety approval.
    (b) Either the holder of a safety approval or the prospective 
transferee may request a safety approval transfer.
    (c) Both the holder and prospective transferee must agree to the 
transfer.
    (d) The person requesting the transfer must submit a safety approval 
application according to Sec. 414.11, must meet the applicable 
requirements of

[[Page 525]]

this part, and may incorporate by reference relevant portions of the 
initial application.
    (e) The FAA will approve a transfer of a safety approval only after 
all the approvals and determinations required under this chapter for a 
safety approval have been met. In conducting reviews and issuing 
approvals and determinations, the FAA may incorporate by reference any 
findings made part of the record to support the initial safety approval 
determination. The FAA may modify the terms and conditions of a safety 
approval to reflect any changes necessary because of a safety approval 
transfer.
    (f) The FAA will provide written notice to the person requesting the 
safety approval transfer of our determination.
    (g) If the FAA denies a transfer request, the applicant may correct 
any deficiency the FAA identified and request a reconsideration of the 
revised application. The applicant also has the right to appeal a denial 
as set forth in subpart D of this part.



Sec. 414.31  Monitoring compliance with the terms and conditions of a safety approval.

    Each holder of a safety approval must allow access by, and cooperate 
with, Federal officers or employees or other individuals authorized by 
the Associate Administrator to inspect manufacturing, production, 
testing, or assembly performed by a holder of a safety approval or its 
contractor. The FAA may also inspect a safety approval process or 
service, including training programs and personnel qualifications.



Sec. 414.33  Modification, suspension, or revocation of a safety approval.

    (a) The safety approval holder. The safety approval holder may 
submit an application to the FAA to modify the terms and conditions of 
the holder's safety approval. The application must meet all the 
applicable requirements under this part. The FAA will review and make a 
determination on the application using the same procedures under this 
part applicable to an initial safety approval application. If the FAA 
denies the request to modify a safety approval, the holder may correct 
any deficiency the FAA identified and request reconsideration. The 
holder also has the right to appeal a denial as set forth in subpart D 
of this part.
    (b) The FAA. If the FAA finds it is in the interest of public health 
and safety, safety of property, or if the safety approval holder fails 
to comply with any applicable requirements of this part, any terms and 
conditions of the safety approval, or any other applicable requirement, 
the FAA may--
    (1) Modify the terms and conditions of the safety approval; or
    (2) Suspend or revoke the safety approval.
    (c) Effective Date. Unless otherwise stated by the FAA, any 
modification, suspension, or revocation of a safety approval under 
paragraph (b)--
    (1) Takes effect immediately; and
    (2) Continues in effect during any reconsideration or appeal of such 
action under this part.
    (d) Notification and Right to Appeal. If the FAA determines it is 
necessary to modify, suspend, or revoke a safety approval, we will 
notify the safety approval holder in writing. If the holder disagrees 
with the FAA's determination, the holder may correct any deficiency the 
FAA identified and request a reconsideration of the determination. The 
applicant also has the right to appeal the determination as set forth in 
subpart D of this part.



Sec. 414.35  Public notification of the criteria by which a safety approval was issued.

    For each grant of a safety approval, the FAA will publish in the 
Federal Register a notice of the criteria that were used to evaluate the 
safety approval application, and a description of the criteria.



                       Subpart D_Appeal Procedures



Sec. 414.37  Hearings in safety approval actions.

    (a) The FAA will give the safety approval applicant or holder, as 
appropriate, written notice stating the reason for issuing a denial or 
for modifying, suspending, or revoking a safety approval under this 
part.
    (b) A safety approval applicant or holder is entitled to a 
determination

[[Page 526]]

on the record after an opportunity for a hearing.
    (c) An administrative law judge will be designated to preside over 
any hearing held under this part.



Sec. 414.39  Submissions; oral presentations in safety approval actions.

    (a) Determinations in safety approval actions under this part will 
be made on the basis of written submissions unless the administrative 
law judge, on petition or on his or her own initiative, determines that 
an oral presentation is required.
    (b) Submissions must include a detailed exposition of the evidence 
or arguments supporting the petition.
    (c) Petitions must be filed as soon as practicable, but in no event 
more than 30 days after issuance of decision or finding under Sec. 
414.37.



Sec. 414.41  Administrative law judge's recommended decision in safety approval actions.

    (a) The Associate Administrator, who will make the final decision on 
the matter at issue, will review the recommended decision of the 
administrative law judge. The Associate Administrator will make such 
final decision within 30 days of issuance of the recommended decision.
    (b) The authority and responsibility to review and decide rests 
solely with the Associate Administrator and may not be delegated.



PART 415_LAUNCH LICENSE--Table of Contents




                            Subpart A_General

Sec.
415.1 Scope.
415.3 Types of launch licenses.
415.5 Policy and safety approvals.
415.7 Payload determination.
415.8 Human space flight.
415.9 Issuance of a launch license.
415.11 Additional license terms and conditions.
415.13 Transfer of a launch license.
415.15 Rights not conferred by launch license.
415.16-415.20 [Reserved]

                  Subpart B_Policy Review and Approval

415.21 General.
415.23 Policy review.
415.25 Application requirements for policy review.
415.27 Denial of policy approval.
415.28-415.30 [Reserved]

 Subpart C_Safety Review and Approval for Launch From a Federal Launch 
                                  Range

415.31 General.
415.33 Safety organization.
415.35 Acceptable flight risk.
415.37 Flight readiness and communications plan.
415.39 Safety at end of launch.
415.41 Accident investigation plan.
415.43 Denial of safety approval.
415.44-415.50 [Reserved]

               Subpart D_Payload Review and Determination

415.51 General.
415.53 Payloads not subject to review.
415.55 Classes of payloads.
415.57 Payload review.
415.59 Information requirements for payload review.
415.61 Issuance of payload determination.
415.63 Incorporation of payload determination in license application.
415.64-415.70 [Reserved]

Subpart E [Reserved]

Subpart F_Safety Review and Approval for Launch of an Expendable Launch 
                 Vehicle From a Non-Federal Launch Site

415.91-415.100 [Reserved]
415.101 Scope and applicability.
415.102 Definitions.
415.103 General.
415.105 Pre-application consultation.
415.107 Safety review document.
415.109 Launch description.
415.111 Launch operator organization.
415.113 Launch personnel certification program.
415.115 Flight safety.
415.117 Ground safety.
415.119 Launch plans.
415.121 Launch schedule.
415.123 Computing systems and software.
415.125 Unique safety policies, requirements and practices.
415.127 Flight safety system design and operation data.
415.129 Flight safety system test data.
415.131 Flight safety system crew data.
415.133 Safety at end of launch.
415.135 Denial of safety approval.
415.136-415.200 [Reserved]

                     Subpart G_Environmental Review

415.201 General.
415.203 Environmental information.

[[Page 527]]

415.204--415.400 [Reserved]

Appendix A to Part 415--FAA/USSPACECOM Launch Notification Form
Appendix B to Part 415--Safety Review Document Outline

    Authority: 49 U.S.C. 70101-70121.

    Source: Amdt. 415-03, 64 FR 19616, Apr. 21, 1999, unless otherwise 
noted.



                            Subpart A_General



Sec. 415.1  Scope.

    This part prescribes requirements for obtaining a license to launch 
a launch vehicle, other than a reusable launch vehicle (RLV), and post-
licensing requirements with which a licensee must comply to remain 
licensed. Requirements for preparing a license application are in part 
413 of this subchapter.

[Doc. No. FAA-2006-24197, 72 FR 17019, Apr. 6, 2007]



Sec. 415.3  Types of launch licenses.

    (a) Launch-specific license. A launch-specific license authorizes a 
licensee to conduct one or more launches, having the same launch 
parameters, of one type of launch vehicle from one launch site. The 
license identifies, by name or mission, each launch authorized under the 
license. A licensee's authorization to launch terminates upon completion 
of all launches authorized by the license or the expiration date stated 
in the license, whichever occurs first.
    (b) Launch operator license. A launch operator license authorizes a 
licensee to conduct launches from one launch site, within a range of 
launch parameters, of launch vehicles from the same family of vehicles 
transporting specified classes of payloads. A launch operator license 
remains in effect for five years from the date of issuance.



Sec. 415.5  Policy and safety approvals.

    To obtain a launch license, an applicant must obtain policy and 
safety approvals from the FAA. Requirements for obtaining these 
approvals are contained in subparts B, C and F of this part. Only a 
launch license applicant may apply for the approvals, and may apply for 
either approval separately and in advance of submitting a complete 
license application, using the application procedures contained in part 
413 of this subchapter.



Sec. 415.7  Payload determination.

    A payload determination is required for a launch license unless the 
proposed payload is exempt from payload review under Sec. 415.53 of 
this part. The FAA conducts a payload review, as described in subpart D 
of this part, to make the determination. Either a launch license 
applicant or a payload owner or operator may request a review of its 
proposed payload using the application procedures contained in part 413 
of this subchapter. Upon receipt of an application, the FAA may conduct 
a payload review independently of a launch license application.



Sec. 415.8  Human space flight.

    To obtain a launch license, an applicant proposing to conduct a 
launch with flight crew or a space flight participant on board must 
demonstrate compliance with Sec. Sec. 460.5, 460.7, 460.11, 460.13, 
460.15, 460.17, 460.51 and 460.53 of this subchapter.

[Doc. No. FAA-2005-23449, 71 FR 75632, Dec. 15, 2006]



Sec. 415.9  Issuance of a launch license.

    (a) The FAA issues a launch license to an applicant who has obtained 
all approvals and determinations required under this chapter for a 
license.
    (b) A launch license authorizes a licensee to conduct a launch or 
launches in accordance with the representations contained in the 
licensee's application, subject to the licensee's compliance with terms 
and conditions contained in license orders accompanying the license, 
including financial responsibility requirements, and part 417 of this 
chapter.

[Amdt. 415-03, 64 FR 19616, Apr. 21, 1999, as amended by Amdt. 415-4, 71 
FR 50531, Aug. 25, 2006]



Sec. 415.11  Additional license terms and conditions.

    The FAA may modify a launch license at any time by modifying or 
adding license terms and conditions to ensure compliance with the Act 
and regulations.

[[Page 528]]



Sec. 415.13  Transfer of a launch license.

    (a) Only the FAA may transfer a launch license.
    (b) An applicant for transfer of a launch license shall submit a 
license application in accordance with part 413 of this subchapter and 
shall meet the requirements of part 415 of this subchapter. The FAA will 
transfer a license to an applicant who has obtained all of the approvals 
and determinations required under this chapter for a license. In 
conducting its reviews and issuing approvals and determinations, the FAA 
may incorporate by reference any findings made part of the record to 
support the initial licensing determination. The FAA may modify a 
license to reflect any changes necessary as a result of a license 
transfer.



Sec. 415.15  Rights not conferred by launch license.

    Issuance of a launch license does not relieve a licensee of its 
obligation to comply with all applicable requirements of law or 
regulation that may apply to its activities, nor does issuance confer 
any proprietary, property or exclusive right in the use of any federal 
launch range or related facilities, airspace, or outer space.



Sec. Sec. 415.16-415.20  [Reserved]



                  Subpart B_Policy Review and Approval



Sec. 415.21  General.

    The FAA issues a policy approval to a license applicant unless the 
FAA determines that a proposed launch would jeopardize U.S. national 
security or foreign policy interests, or international obligations of 
the United States. A policy approval is part of the licensing record on 
which the FAA's licensing determination is based.



Sec. 415.23  Policy review.

    (a) The FAA reviews a license application to determine whether it 
presents any issues affecting U.S. national security or foreign policy 
interests, or international obligations of the United States.
    (b) Interagency consultation. (1) The FAA consults with the 
Department of Defense to determine whether a license application 
presents any issues affecting U.S. national security.
    (2) The FAA consults with the Department of State to determine 
whether a license application presents any issues affecting U.S. foreign 
policy interests or international obligations.
    (3) The FAA consults with other federal agencies, including the 
National Aeronautics and Space Administration, authorized to address 
issues identified under paragraph (a) of this section, associated with 
an applicant's launch proposal.
    (c) The FAA advises an applicant, in writing, of any issue raised 
during a policy review that would impede issuance of a policy approval. 
The applicant may respond, in writing, or revise its license 
application.



Sec. 415.25  Application requirements for policy review.

    In its launch license application, an applicant shall--
    (a) Identify the model and configuration of any launch vehicle 
proposed for launch by the applicant.
    (b) Identify structural, pneumatic, propellant, propulsion, 
electrical and avionics systems used in the launch vehicle and all 
propellants.
    (c) Identify foreign ownership of the applicant as follows:
    (1) For a sole proprietorship or partnership, identify all foreign 
ownership;
    (2) For a corporation, identify any foreign ownership interests of 
10% or more; and
    (3) For a joint venture, association, or other entity, identify any 
participating foreign entities.
    (d) Identify proposed launch vehicle flight profile(s), including:
    (1) Launch site;
    (2) Flight azimuths, trajectories, and associated ground tracks and 
instantaneous impact points;
    (3) Sequence of planned events or maneuvers during flight;
    (4) Range of nominal impact areas for all spent motors and other 
discarded mission hardware, within three standard deviations of the mean 
impact point (a 3-sigma footprint); and
    (5) For each orbital mission, the range of intermediate and final 
orbits

[[Page 529]]

of each vehicle upper stage, and their estimated orbital lifetimes.



Sec. 415.27  Denial of policy approval.

    The FAA notifies an applicant, in writing, if it has denied policy 
approval for a license application. The notice states the reasons for 
the FAA's determination. The applicant may respond to the reasons for 
the determination and request reconsideration.



Sec. Sec. 415.28-415.30  [Reserved]



 Subpart C_Safety Review and Approval for Launch From a Federal Launch 
                                  Range



Sec. 415.31  General.

    (a) The FAA conducts a safety review to determine whether an 
applicant is capable of launching a launch vehicle and its payload 
without jeopardizing public health and safety and safety of property. 
The FAA issues a safety approval to a license applicant proposing to 
launch from a Federal launch range if the applicant satisfies the 
requirements of this subpart and has contracted with the Federal launch 
range for the provision of safety-related launch services and property, 
as long as an FAA launch site safety assessment shows that the range's 
launch services and launch property satisfy part 417 of this chapter. 
The FAA evaluates on an individual basis all other safety-related launch 
services and property associated with an applicant's proposal, in 
accordance with part 417 of this chapter. A safety approval is part of 
the licensing record on which the FAA's licensing determination is 
based.
    (b) The FAA advises an applicant, in writing, of any issue raised 
during a safety review that would impede issuance of a safety approval. 
The applicant may respond, in writing, or revise its license 
application.

[Amdt. 415-03, 64 FR 19616, Apr. 21, 1999, as amended by Amdt. 415-4, 71 
FR 50531, Aug. 25, 2006]



Sec. 415.33  Safety organization.

    (a) An applicant shall maintain a safety organization and document 
it by identifying lines of communication and approval authority for all 
launch safety decisions. Lines of communication, both within the 
applicant's organization and between the applicant and any federal 
launch range providing launch services, shall be employed to ensure that 
personnel perform launch safety operations in accordance with range 
safety requirements and with plans and procedures required by this 
subpart. Approval authority shall be employed to ensure compliance with 
range safety requirements and with plans and procedures required by this 
subpart.
    (b) Safety official. An applicant shall identify by name, title, and 
qualifications, a qualified safety official authorized to examine all 
aspects of the applicant's launch safety operations and to monitor 
independently personnel compliance with the applicant's safety policies 
and procedures. The safety official shall report directly to the person 
responsible for an applicant's licensed launches, who shall ensure that 
all of the safety official's concerns are addressed prior to launch.



Sec. 415.35  Acceptable flight risk.

    (a) Flight risk through orbital insertion or impact. Acceptable 
flight risk through orbital insertion for an orbital launch vehicle, and 
through impact for a suborbital launch vehicle, is measured in terms of 
the expected average number of casualties (cc) to the 
collective members of the public exposed to debris hazards from any one 
launch. To obtain safety approval, an applicant must demonstrate that 
the risk level associated with debris from an applicant's proposed 
launch meets the public risk criteria of Sec. 417.107(b)(1) of this 
chapter for impacting inert and impacting explosive debris.
    (b) Hazard identification and risk assessment. To demonstrate 
compliance with paragraph (a) of this section, an applicant must file an 
analysis that identifies hazards and assesses risks to public health and 
safety and safety of property associated with nominal and non-nominal 
flight of its proposed launch.
    (c) Design. A launch vehicle must be designed to ensure that flight 
risks meet the criteria of paragraph (a) of this section. An applicant 
must identify and describe the following:

[[Page 530]]

    (1) Launch vehicle structure, including physical dimensions and 
weight;
    (2) Hazardous and safety critical systems, including propulsion 
systems; and
    (3) Drawings and schematics for each system identified under 
paragraph (c)(2) of this section.
    (d) Operation. A launch vehicle must be operated in a manner that 
ensures that flight risks meet the criteria of paragraph (a) of this 
section. An applicant must identify all launch operations and procedures 
that must be performed to ensure acceptable flight risk.

[Doc. No. FAA-2000-7953, 71 FR 50531, Aug. 25, 2006]



Sec. 415.37  Flight readiness and communications plan.

    (a) Flight readiness requirements. An applicant must designate an 
individual responsible for flight readiness. The applicant must file the 
following procedures for verifying readiness for safe flight:
    (1) Launch readiness review procedures involving the applicant's 
flight safety personnel and Federal launch range personnel involved in 
the launch, as required by Sec. 417.117(g) of this chapter.
    (2) Procedures that ensure mission constraints, rules and abort 
procedures are listed and consolidated in a safety directive or notebook 
approved by licensee flight safety and Federal launch range personnel.
    (3) Procedures that ensure currency and consistency of licensee and 
Federal launch range countdown checklists.
    (4) Dress rehearsal procedures that--
    (i) Ensure crew readiness under nominal and non-nominal flight 
conditions;
    (ii) Contain criteria for determining whether to dispense with one 
or more dress rehearsals; and
    (iii) Verify currency and consistency of licensee and Federal launch 
range countdown checklists.
    (5) Procedures for ensuring the licensee's flight safety personnel 
adhere to the crew rest rules of Sec. 417.113(f) of this chapter.
    (b) Communications plan requirements. An applicant must file a 
communications plan that meets Sec. 417.111(k) of this chapter, and 
that provides licensee and Federal launch range personnel communications 
procedures during countdown and flight.
    (c) An applicant must file procedures that ensure that licensee and 
Federal launch range personnel receive a copy of the communications plan 
required by paragraph (b) of this section, and that the Federal launch 
range concurs in the communications plan.

[Doc. No. FAA-2000-7953, 71 FR 50531, Aug. 25, 2006]



Sec. 415.39  Safety at end of launch.

    To obtain safety approval, an applicant must demonstrate compliance 
with Sec. 417.129 of this chapter, for any proposed launch of a launch 
vehicle with a stage or component that will reach Earth orbit.

[Doc. No. FAA-2000-7953, 71 FR 50531, Aug. 25, 2006]



Sec. 415.41  Accident investigation plan.

    An applicant must file an accident investigation plan (AIP), that 
satisfies Sec. 417.111(g) of this chapter, and contains the applicant's 
procedures for reporting and responding to launch accidents, launch 
incidents, or other mishaps, as defined by Sec. 401.5 of this chapter.

[Doc. No. FAA-2000-7953, 71 FR 50531, Aug. 25, 2006]



Sec. 415.43  Denial of safety approval.

    The FAA notifies an applicant, in writing, if it has denied safety 
approval for a license application. The notice states the reasons for 
the FAA's determination. The applicant may respond to the reasons for 
the determination and request reconsideration.



Sec. Sec. 415.44-415.50  [Reserved]



               Subpart D_Payload Review and Determination



Sec. 415.51  General.

    The FAA reviews a payload proposed for launch to determine whether a 
license applicant or payload owner or operator has obtained all required 
licenses, authorization, and permits, unless the payload is exempt from 
review under Sec. 415.53 of this subpart. If not otherwise exempt, the 
FAA reviews a payload proposed for launch to determine

[[Page 531]]

whether its launch would jeopardize public health and safety, safety of 
property, U.S. national security or foreign policy interests, or 
international obligations of the United States. A payload determination 
is part of the licensing record on which the FAA's licensing 
determination is based. The safety requirements of subpart C and F of 
this part and of part 417 of this chapter apply to all payloads, whether 
or not the payload is otherwise exempt.

[Amdt. 415-03, 64 FR 19616, Apr. 21, 1999, as amended by Amdt. 415-4, 71 
FR 50531, Aug. 25, 2006]



Sec. 415.53  Payloads not subject to review.

    The FAA does not review payloads that are--
    (a) Subject to regulation by the Federal Communications Commission 
(FCC) or the Department of Commerce, National Oceanic and Atmospheric 
Administration (NOAA); or
    (b) Owned or operated by the U.S. Government.



Sec. 415.55  Classes of payloads.

    The FAA may review and issue findings regarding a proposed class of 
payload, e.g., communications, remote sensing or navigation. However, 
each payload is subject to compliance monitoring by the FAA before 
launch to determine whether its launch would jeopardize public health 
and safety, safety of property, U.S. national security or foreign policy 
interests, or international obligations of the United States. The 
licensee is responsible for providing current information, in accordance 
with Sec. 415.79(a), regarding a payload proposed for launch not later 
than 60 days before a scheduled launch.



Sec. 415.57  Payload review.

    (a) Timing. A payload review may be conducted as part of a license 
application review or may be requested by a payload owner or operator in 
advance of or apart from a license application.
    (b) Interagency consultation. The FAA consults with other agencies 
to determine whether launch of a proposed payload or payload class would 
present any issues affecting public health and safety, safety of 
property, U.S. national security or foreign policy interests, or 
international obligations of the United States.
    (1) The FAA consults with the Department of Defense to determine 
whether launch of a proposed payload or payload class would present any 
issues affecting U.S. national security.
    (2) The FAA consults with the Department of State to determine 
whether launch of a proposed payload or payload class would present any 
issues affecting U.S. foreign policy interests or international 
obligations.
    (3) The FAA consults with other federal agencies, including the 
National Aeronautics and Space Administration, authorized to address 
issues identified under paragraph (b) of this section associated with an 
applicant's launch proposal.
    (c) The FAA advises a person requesting a payload determination, in 
writing, of any issue raised during a payload review that would impede 
issuance of a license to launch that payload or payload class. The 
person requesting payload review may respond, in writing, or revise its 
application.



Sec. 415.59  Information requirements for payload review.

    (a) A person requesting review of a particular payload or payload 
class shall identify the following:
    (1) Payload name;
    (2) Payload class;
    (3) Physical dimensions and weight of the payload;
    (4) Payload owner and operator, if different from the person 
requesting payload review;
    (5) Orbital parameters for parking, transfer and final orbits;
    (6) Hazardous materials, as defined in Sec. 401.5 of this chapter, 
and radioactive materials, and the amounts of each;
    (7) Intended payload operations during the life of the payload; and
    (8) Delivery point in flight at which the payload will no longer be 
under the licensee's control.
    (b) [Reserved]



Sec. 415.61  Issuance of payload determination.

    (a) The FAA issues a favorable payload determination unless it 
determines that launch of the proposed payload would jeopardize public 
health and

[[Page 532]]

safety, safety of property, U.S. national security or foreign policy 
interests, or international obligations of the United States. The FAA 
advises any person who has requested a payload review of its 
determination, in writing. The notice states the reasons for the 
determination in the event of an unfavorable determination.
    (b) Any person issued an unfavorable payload determination may 
respond to the reasons for the determination and request 
reconsideration.



Sec. 415.63  Incorporation of payload determination in license application.

    A favorable payload determination issued for a payload or class of 
payload may be included by a license applicant as part of its 
application. However, any change in information provided under section 
415.59 of this subpart must be reported in accordance with section 
413.17 of this chapter. The FAA determines whether a favorable payload 
determination remains valid in light of reported changes and may conduct 
an additional payload review.



Sec. Sec. 415.64-415.70  [Reserved]

Subpart E [Reserved]



Subpart F_Safety Review and Approval for Launch of an Expendable Launch 
                 Vehicle From a Non-Federal Launch Site

    Source: Docket No. FAA-2000-7953, 71 FR 50532, Aug. 25, 2006, unless 
otherwise noted.



Sec. Sec. 415.91--415.100  [Reserved]



Sec. 415.101  Scope and applicability.

    (a) This subpart F contains requirements that an applicant must meet 
to obtain a safety approval when applying for a license to launch an 
expendable launch vehicle from a non-Federal launch site. This subpart 
also contains administrative requirements for a safety review, such as 
when and how an applicant files the required information, and the 
requirements for the form and content of each submission.
    (b) The requirements of this subpart apply to both orbital and 
suborbital expendable launch vehicles.
    (c) An applicant must demonstrate, through the material filed with 
the FAA, its ability to comply with the requirements of part 417 of this 
chapter. To facilitate production of the information required by this 
subpart, an applicant should become familiar with the requirements of 
part 417 of this chapter.
    (d) For a launch from an exclusive use launch site, where there is 
no licensed launch site operator, a launch operator must satisfy the 
requirements of this part and the public safety application requirements 
of part 420 of this chapter.



Sec. 415.102  Definitions.

    For the purposes of this subpart, the definitions of Sec. 417.3 and 
Sec. 401.5 of this chapter apply.



Sec. 415.103  General.

    (a) The FAA conducts a safety review to determine whether an 
applicant is capable of conducting launch processing and flight without 
jeopardizing public health and safety and safety of property. The FAA 
issues a safety approval to a license applicant if the applicant 
satisfies the requirements of this subpart and demonstrates that it will 
meet the safety responsibilities and requirements of part 417 of this 
chapter.
    (b) The FAA advises an applicant, in writing, of any issue raised 
during a safety review that would impede issuance of a safety approval. 
The applicant may respond, in writing, or amend its license application 
as required by Sec. 413.17 of this chapter.
    (c) An applicant must make available to the FAA upon request a copy 
of any information incorporated into a license application by reference.
    (d) A safety approval is part of the licensing record on which the 
FAA bases its licensing determination.



Sec. 415.105  Pre-application consultation.

    (a) An applicant must participate in a pre-application consultation 
meeting, as required by Sec. 413.5 of this chapter, prior to an 
applicant's preparation of the initial flight safety analysis required 
by Sec. 415.115.
    (b) At a pre-application consultation meeting, an applicant must 
provide as

[[Page 533]]

complete a description of the planned launch or series of launches as 
available at the time. An applicant must provide the FAA the following 
information:
    (1) Launch vehicle. Description of:
    (i) Launch vehicle;
    (ii) Any flight termination system; and
    (iii) All hazards associated with the launch vehicle and any 
payload, including the type and amounts of all propellants, explosives, 
toxic materials and any radionuclides.
    (2) Proposed mission.
    (i) For an applicant applying for a launch specific license under 
Sec. 415.3(a), the apogee, perigee, and inclination of any orbital 
objects and each impact location of any stage or other component.
    (ii) For an applicant applying for a launch operator license under 
Sec. 415.3(b), the planned range of trajectories and flight azimuths, 
and the range of apogees, perigees, and inclinations of any orbital 
objects and each impact location of any stage or other component.
    (3) Potential launch site.
    (i) Name and location of the proposed launch site, including 
latitude and longitude of the proposed launch point;
    (ii) Identity of any launch site operator of that site; and
    (iii) Identification of any facilities at the launch site that will 
be used for launch processing and flight.



Sec. 415.107  Safety review document.

    (a) An applicant must file a safety review document that contains 
all the information required by Sec. Sec. 415.109--415.133. An 
applicant must file the information for a safety review document as 
required by the outline in appendix B of this part. An applicant must 
file a sufficiently complete safety review document, except for the 
ground safety analysis report, no later than six months before the 
applicant brings any launch vehicle to the proposed launch site.
    (b) A launch operator's safety review document must:
    (1) Contain a glossary of unique terms and acronyms used in 
alphabetical order;
    (2) Contain a listing of all referenced standards, codes, and 
publications;
    (3) Be logically organized, with a clear and consistent page 
numbering system and must identify cross-referenced topics;
    (4) Use equations and mathematical relationships derived from or 
referenced to a recognized standard or text, and must define all 
algebraic parameters;
    (5) Include the units of all numerical values provided; and
    (6) Include a legend or key that identifies all symbols used for any 
schematic diagrams.
    (c) An applicant's safety review document may include sections not 
required by appendix B of this part. An applicant must identify each 
added section by using the word ``added'' in front of the title of the 
section. In the first paragraph of the section, an applicant must 
explain any addition to the outline in appendix B of this part.
    (d) If a safety review document section required by appendix B of 
this part does not apply to an applicant's proposed launch, an applicant 
must identify the sections in the application by the words ``not 
applicable'' preceding the title of the section. In the first paragraph 
of the section, an applicant must describe and justify why the section 
does not apply.
    (e) An applicant may reference documentation previously filed with 
the FAA.



Sec. 415.109  Launch description.

    An applicant's safety review document must contain the following 
information:
    (a) Launch site description. An applicant must identify the proposed 
launch site and include the following:
    (1) Boundaries of the launch site;
    (2) Launch point location, including latitude and longitude;
    (3) Identity of any launch site operator of that proposed site; and
    (4) Identification of any facilities at the launch site that will be 
used for launch processing and flight.
    (b) Launch vehicle description. An applicant must provide the 
following:
    (1) A written description of the launch vehicle. The description 
must include a table specifying the type and quantities of all hazardous 
materials on the launch vehicle and must include

[[Page 534]]

propellants, explosives, and toxic materials; and
    (2) A drawing of the launch vehicle that identifies:
    (i) Each stage, including strap-on motors;
    (ii) Physical dimensions and weight;
    (iii) Location of all safety critical systems, including any flight 
termination hardware, tracking aids, or telemetry systems;
    (iv) Location of all major launch vehicle control systems, 
propulsion systems, pressure vessels, and any other hardware that 
contains potential hazardous energy or hazardous material; and
    (v) For an unguided suborbital launch vehicle, the location of the 
rocket's center of pressure in relation to its center of gravity for the 
entire flight profile.
    (c) Payload description. An applicant must include or reference 
documentation previously filed with the FAA that contains the payload 
information required by Sec. 415.59 for any payload or class of 
payload.
    (d) Trajectory. An applicant must provide two drawings depicting 
trajectory information. An applicant must file additional trajectory 
information as part of the flight safety analysis data required by Sec. 
415.115.
    (1) One drawing must depict the proposed nominal flight profile with 
downrange depicted on the abscissa and altitude depicted on the ordinate 
axis. The nominal flight profile must be labeled to show each planned 
staging event and its time after liftoff from launch through orbital 
insertion or final impact; and
    (2) The second drawing must depict instantaneous impact point ground 
traces for each of the nominal trajectory, the three-sigma left lateral 
trajectory and the three-sigma right lateral trajectory determined under 
Sec. 417.207 of this chapter. The trajectories must be depicted on a 
latitude/longitude grid, and the grid must include the outlines of any 
continents and islands.
    (e) Staging events. An applicant must provide a table of nominal and 
 three-sigma times for each major staging event 
and must describe each event, including the predicted impact point and 
dispersion of each spent stage.
    (f) Vehicle performance graphs. An applicant must provide graphs of 
the nominal and  three-sigma values as a function 
of time after liftoff for the following launch vehicle performance 
parameters: thrust, altitude, velocity, instantaneous impact point arc-
range measured from the launch point, and present position arc-range 
measured from the launch point.



Sec. 415.111  Launch operator organization.

    An applicant's safety review document must contain organizational 
charts and a description that shows that the launch operator's 
organization satisfies the requirements of Sec. 417.103 of this 
chapter. An applicant's safety review document must also identify all 
persons with whom the applicant has contracted to provide safety-related 
goods or services for the launch of the launch vehicle.



Sec. 415.113  Launch personnel certification program.

    (a) A safety review document must describe how the applicant will 
satisfy the personnel certification program requirements of Sec. 
417.105 of this chapter and identify by position those individuals who 
implement the program.
    (b) An applicant's safety review document must contain a copy of its 
documentation that demonstrates how the launch operator implements the 
personnel certification program.
    (c) An applicant's safety review document must contain a table 
listing each hazardous operation or safety critical task that certified 
personnel must perform. For each task, the table must identify by 
position the individual who reviews personnel qualifications and 
certifies personnel for performing the task.



Sec. 415.115  Flight safety.

    (a) Flight safety analysis. An applicant's safety review document 
must describe each analysis method employed to meet the flight safety 
analysis requirements of part 417, subpart C, of this chapter. An 
applicant's safety review document must demonstrate how each analysis 
method satisfies the

[[Page 535]]

flight safety analysis requirements of part 417, subpart C, of this 
chapter. An applicant's safety review document must contain analysis 
products and other data that demonstrate the applicant's ability to meet 
the public risk criteria of Sec. 417.107 of this chapter and to 
establish launch safety rules as required by Sec. 417.113 of this 
chapter. An applicant's flight safety analysis must satisfy the 
following requirements:
    (1) An applicant must file the proposed flight safety analysis 
methodology and the preliminary flight safety analysis products no later 
than 18 months for any orbital or guided suborbital launch vehicle, and 
nine months for any unguided suborbital launch vehicle, prior to 
bringing any launch vehicle to the proposed launch site.
    (2) For a launch operator license, an applicant must file flight 
safety analysis products that account for the range of launch vehicles 
and flight trajectories applied for, or the worst case vehicle and 
trajectory under which flight will be attempted, no later than 6 months 
before the applicant brings any launch vehicle to the proposed launch 
site. For a launch specific license, an applicant must file flight 
safety analysis products that account for the actual flight conditions, 
no later than 6 months before the applicant brings any launch vehicle to 
the proposed launch site.
    (3) The flight safety analysis performed by an applicant must be 
completed as required by subpart C of part 417 of this chapter. An 
applicant may identify those portions of the analysis that it expects to 
refine as the first proposed flight date approaches. An applicant must 
identify any analysis product subject to change, describe what needs to 
be done to finalize the product, and identify when before flight it will 
be finalized. If a license allows more than one launch, an applicant 
must demonstrate the applicability of the analysis methods to each of 
the proposed launches and identify any expected differences in the 
flight safety analysis methods among the proposed launches. Once 
licensed, a launch operator must perform a flight safety analysis for 
each launch using final launch vehicle performance and other data as 
required by subpart C of part 417 of this chapter and using the analysis 
methods approved by the FAA through the licensing process.
    (b) Radionuclides. An applicant's safety review document must 
identify the type and quantity of any radionuclide on a launch vehicle 
or payload. For each radionuclide, an applicant must include a reference 
list of all documentation addressing the safety of its intended use and 
describe all approvals by the Nuclear Regulatory Commission for launch 
processing. An applicant must provide radionuclide information to the 
FAA at the pre-application consultation as required by Sec. 415.105. 
The FAA will evaluate launch of any radionuclide on a case-by-case 
basis, and issue an approval if the FAA finds that the launch is 
consistent with public health and safety.
    (c) Flight safety plan. An applicant's safety review document must 
contain a flight safety plan that satisfies Sec. 417.111(b) of this 
chapter. The plan need not be restricted to public safety related issues 
and may combine other flight safety issues as well, such as employee 
safety, so as to be all-inclusive.
    (d) Natural and triggered lightning. For any orbital or guided 
suborbital expendable launch vehicle, an applicant must demonstrate that 
it will satisfy the flight commit criteria of Sec. 417.113(c) of this 
chapter and appendix G of part 417 of this chapter for natural and 
triggered lightning. If an applicant's safety review document states 
that any flight commit criterion that is otherwise required by appendix 
G of part 417 of this chapter does not apply to a proposed launch or 
series of launches, the applicant's safety review document must 
demonstrate that the criterion does not apply.



Sec. 415.117  Ground safety.

    (a) General. An applicant's safety review document must include a 
ground safety analysis report, and a ground safety plan for its launch 
processing and post-flight operations as required by this section, Sec. 
417.109 of this chapter, and subpart E of part 417 of this chapter when 
launching from a launch point in the United States. Launch processing 
and post-launch operations at a launch point outside the United

[[Page 536]]

States may be subject to the requirements of the governing jurisdiction.
    (b) Ground safety analysis. A ground safety analysis must review 
each system and operation used in launch processing and post-flight 
operations as required by Sec. 417.109 of this chapter, and subpart E 
of part 417 of this chapter.
    (1) An applicant must file an initial ground safety analysis report 
no later than 12 months for any orbital or guided suborbital launch 
vehicle, and nine months for an unguided suborbital launch vehicle, 
before the applicant brings any launch vehicle to the proposed launch 
site. An initial ground safety analysis report must be in a proposed 
final or near final form and identify any incomplete items. An applicant 
must document any incomplete items and track them to completion. An 
applicant must resolve any FAA comments on the initial report and file a 
complete ground safety analysis report, no later than two months before 
the applicant brings any launch vehicle to the proposed launch site. 
Furthermore, an applicant must keep its ground safety analysis report 
current. Any late developing change to a ground safety analysis report 
must be coordinated with the FAA as an application amendment as required 
by Sec. 413.17 of this chapter as soon as the applicant identifies the 
need for a change.
    (2) An applicant must file a ground safety analysis report that 
satisfies the ground safety analysis requirements of Sec. 417.109 of 
this chapter, and subpart E of part 417 of this chapter.
    (3) The person designated under Sec. 417.103(b)(1) of this chapter 
and the person designated under Sec. 417.103(b)(2) of this chapter must 
approve and sign the ground safety analysis report.
    (c) Ground safety plan. An applicant's safety review document must 
contain a ground safety plan that satisfies Sec. 417.111(c) of this 
chapter. The applicant must file this plan with the FAA no later than 
six months prior to bringing the launch vehicle to the proposed launch 
site. This ground safety plan must describe implementation of the hazard 
controls identified by an applicant's ground safety analysis and 
implementation of the ground safety requirements of subpart E of part 
417 of this chapter. A ground safety plan must address all public safety 
related issues and may include other ground safety issues if an 
applicant intends it to have a broader scope.



Sec. 415.119  Launch plans.

    An applicant's safety review document must contain the plans 
required by Sec. 417.111 of this chapter, except for the countdown plan 
of Sec. 417.111(l) of this chapter. An applicant's launch plans do not 
have to be separate documents, and may be part of other applicant 
documentation. An applicant must incorporate each launch safety rule 
established under Sec. 417.113 of this chapter into a related launch 
safety plan.



Sec. 415.121  Launch schedule.

    An applicant's safety review document must contain a generic launch 
processing schedule that identifies each review, rehearsal, and safety 
critical preflight operation to be conducted as required by Sec. Sec. 
417.117, 417.119, and 417.121 of this chapter. The launch schedule must 
also identify day of flight activities. The launch processing schedule 
must show each of these activities referenced to liftoff, such as 
liftoff minus three days.



Sec. 415.123  Computing systems and software.

    (a) An applicant's safety review document must describe all 
computing systems and software that perform a safety-critical computer 
system function for any operation performed during launch processing or 
flight that could have a hazardous effect on the public as required by 
Sec. 417.123 of this chapter.
    (b) An applicant's safety review document must list and describe all 
safety-critical computer system functions involved in a proposed launch, 
including associated hardware and software interfaces. For each system 
with a safety-critical computer system function, an applicant's safety 
review document must:
    (1) Describe all safety-critical computer system functions, 
including each safety-critical interface with any other system;
    (2) Describe all systems, including all hardware and software, and 
the layout of each operator console and display;

[[Page 537]]

    (3) Provide flow charts or diagrams that show all hardware data 
busses, hardware interfaces, software interfaces, data flow, and power 
systems, and all operations of each safety-critical computer system 
function;
    (4) Provide all logic diagrams and software designs;
    (5) List all operator user manuals and documentation by title and 
date;
    (6) Describe the computing system and software system safety process 
as required by Sec. 417.123(a).
    (7) Provide all results of computing system and software hazard 
analyses as required by Sec. 417.123(c).
    (8) Provide all plans and results of computing systems and software 
validation and verification as required by Sec. 417.123(d).
    (9) Provide all plans for software development as required by Sec. 
417.123(e).



Sec. 415.125  Unique safety policies, requirements and practices.

    An applicant's safety review document must identify any public 
safety-related policy, requirement, or practice that is unique to the 
proposed launch, or series of launches, as required by Sec. 417.127 of 
this chapter. An applicant's safety review document must describe how 
each unique safety policy, requirement, or practice ensures the safety 
of the public.



Sec. 415.127  Flight safety system design and operation data.

    (a) General. This part applies to an applicant launching an orbital 
or guided sub-orbital expendable launch vehicle that uses a flight 
safety system to protect public safety as required by Sec. 417.107(a) 
of this chapter. An applicant's safety review document must contain the 
flight safety system data identified by this section. The applicant must 
file all data required by this section no later than 18 months before 
bringing any launch vehicle to a proposed launch site.
    (b) Flight safety system description. A safety review document must 
describe an applicant's flight safety system and its operation. Part 
417, subpart D of this chapter and appendices D, E, and F of part 417 of 
this chapter contain the flight safety system and subsystems design and 
operational requirements.
    (c) Flight safety system diagram. An applicant's safety review 
document must contain a block diagram that identifies all flight safety 
system subsystems. The diagram must include the following subsystems 
defined in part 417, subpart D of this chapter: flight termination 
system; command control system; tracking; telemetry; communications; 
flight safety data processing, display, and recording system; and flight 
safety official console.
    (d) Subsystem design information. An applicant's safety review 
document must contain all of the following data that applies to each 
subsystem identified in the block diagram required by paragraph (c) of 
this section:
    (1) Subsystem description. A physical description of each subsystem 
and its components, its operation, and interfaces with other systems or 
subsystems.
    (2) Subsystem diagram. A physical and functional diagram of each 
subsystem, including interfaces with other systems and subsystems.
    (3) Component location. Drawings showing the location of all 
subsystem components, and the details of the mounting arrangements, as 
installed on the vehicle, and at the launch site.
    (4) Electronic components. A physical description of each subsystem 
electronic component, including operating parameters and functions at 
the system and piece-part level. An applicant must also provide the name 
of the manufacturer and any model number of each component and identify 
whether the component is custom designed and built or off-the-shelf-
equipment.
    (5) Mechanical components. An illustrated parts breakdown of all 
mechanically operated components for each subsystem, including the name 
of the manufacturer and any model number.
    (6) Subsystem compatibility. A demonstration of the compatibility of 
the onboard launch vehicle flight termination system with the command 
control system.
    (7) Flight termination system component storage, operating, and 
service life. A listing of all flight termination system components that 
have a critical storage, operating, or service life and a summary of the 
applicant's procedures for ensuring that each component does

[[Page 538]]

not exceed its storage, operating, or service life before flight.
    (8) Flight termination system element location. For a flight 
termination system, a description of where each subsystem element is 
located, where cables are routed, and identification of mounting attach 
points and access points.
    (9) Flight termination system electrical connectors and connections 
and wiring diagrams and schematics. For a flight termination system, a 
description of all subsystem electrical connectors and connections, and 
any electrical isolation. The safety review document must also contain 
flight termination system wiring diagrams and schematics and identify 
the test points used for integrated testing and checkout.
    (10) Flight termination system batteries. A description of each 
flight termination system battery and cell, the name of the battery or 
cell manufacturer, and any model numbers.
    (11) Controls and displays. For a flight safety official console, a 
description of all controls, displays, and charts depicting how real 
time vehicle data and flight safety limits are displayed. The 
description must identify the scales used for displays and charts.
    (e) System analyses. An applicant must perform the reliability and 
other system analyses for a flight termination system and command 
control system of Sec. 417.309 of this chapter. An applicant's safety 
review document must contain the results of each analysis.
    (f) Environmental design. An applicant must determine the flight 
termination system maximum predicted environment levels required by 
section D417.7 of appendix D of part 417 of this chapter, and the design 
environments and design margins of section D417.3 of appendix D of part 
417 of this chapter. An applicant's safety review document must 
summarize the analyses and measurements used to derive the maximum 
predicted environment levels. The safety review document must contain a 
matrix that identifies the maximum predicted environment levels and the 
design environments.
    (g) Flight safety system compliance matrix. An applicant's safety 
review document must contain a compliance matrix of the function, 
reliability, system, subsystem, and component requirements of part 417 
of this chapter and appendix D of part 417 of this chapter. This matrix 
must identify each requirement and indicate compliance as follows:
    (1) ``Yes'' if the applicant's system meets the requirement of part 
417 of this chapter. The matrix must reference documentation that 
demonstrates compliance;
    (2) ``Not applicable'' if the applicant's system design and 
operational environment are such that the requirement does not apply. 
For each such case, the applicant must demonstrate, in accordance with 
section 406.3(b), the non-applicability of that requirement as an 
attachment to the matrix; or
    (3) ``Equivalent level of safety'' in each case where the applicant 
proposes to show that its system provides an equivalent level of safety 
through some means other than that required by part 417 of this chapter. 
For each such case, an applicant must clearly and convincingly 
demonstrate, as required by Sec. 406.3(b), through a technical 
rationale within the matrix, or as an attachment, that the proposed 
alternative provides a level of safety equivalent to satisfying the 
requirement that it would replace.
    (h) Flight termination system installation procedures. An 
applicant's safety review document must contain a list of the flight 
termination system installation procedures and a synopsis of the 
procedures that demonstrates how each of those procedures meet the 
requirements of section D417.15 of appendix D of part 417 of this 
chapter. The list must reference each procedure by title, any document 
number, and date.
    (i) Tracking validation procedures. An applicant's safety review 
document must contain the procedures identified by Sec. 417.121(h) of 
this chapter for validating the accuracy of the launch vehicle tracking 
data supplied to the flight safety crew.



Sec. 415.129  Flight safety system test data.

    (a) General. An applicant's safety review document must contain the 
flight safety system test data required by this section for the launch 
of an orbital

[[Page 539]]

and guided suborbital expendable launch vehicle that uses a flight 
safety system to protect public safety as required by Sec. 417.107(a) 
of this chapter. This section applies to all testing required by part 
417, subpart D of this chapter and its appendices, including 
qualification, acceptance, age surveillance, and preflight testing of a 
flight safety system and its subsystems and individual components. An 
applicant must file all required test data, no later than 12 months 
before the applicant brings any launch vehicle to the proposed launch 
site. An applicant may file test data earlier to allow greater time for 
addressing issues that the FAA may identify to avoid possible impact on 
the proposed launch date. Flight safety system testing need not be 
completed before the FAA issues a launch license. Prior to flight, a 
licensee must successfully complete all required flight safety system 
testing and file the completed test reports or the test report summaries 
required by Sec. 417.305(d) of this chapter and section E417.1(i) of 
appendix E of part 417 of this chapter.
    (b) Testing compliance matrix. An applicant's safety review document 
must contain a compliance matrix of all the flight safety system, 
subsystem, and component testing requirements of part 417 of this 
chapter and appendix E to part 417 of this chapter. This matrix must 
identify each test requirement and indicate compliance as follows:
    (1) ``Yes'' if the applicant performs the system or component 
testing required by part 417 of this chapter. The matrix must reference 
documentation that demonstrates compliance;
    (2) ``Not applicable'' if the applicant's system design and 
operational environment are such that the test requirement does not 
apply. For each such case, an applicant must demonstrate, as required by 
Sec. 406.3(b), of the non-applicability of that requirement as an 
attachment to the matrix;
    (3) ``Similarity'' if the test requirement applies to a component 
whose design is similar to a previously qualified component. For each 
such case, an applicant must demonstrate similarity by performing the 
analysis required by appendix E of part 417 of this chapter. The matrix, 
or an attachment, must contain the results of each analysis; or
    (4) ``Equivalent level of safety'' in each case where the applicant 
proposes to show that its test program provides an equivalent level of 
safety through some means other than that required by part 417 of this 
chapter. For each such case, an applicant must clearly and convincingly 
demonstrate through a technical rationale, within the matrix or as an 
attachment, that the alternative provides a level of safety equivalent 
to satisfying the requirement that it replaces, as required by Sec. 
406.3(c).
    (c) Test program overview and schedule. A safety review document 
must contain a summary of the applicant's flight safety system test 
program that identifies the location of the testing and the personnel 
who ensure the validity of the results. A safety review document must 
contain a schedule for successfully completing each test before flight. 
The applicant must reference the schedule to the time of liftoff for the 
first proposed flight attempt.
    (d) Flight safety system test plans and procedures. An applicant's 
safety review document must contain test plans that satisfy the flight 
safety system testing requirements of subpart D of part 417 of this 
chapter and appendix E of part 417 of this chapter. An applicant's 
safety review document must contain a list of all flight termination 
system test procedures and a synopsis of the procedures that 
demonstrates how they meet the test requirements of part 417 of this 
chapter. The list must reference each procedure by title, any document 
number, and date.
    (e) Test reports. An applicant's safety review document must contain 
either the test reports, or a summary of the test report which captures 
the overall test results, including all test discrepancies and their 
resolution, prepared as required by Sec. 417.305(d) of this chapter and 
section E417.1(i) of appendix E of part 417 of this chapter, for each 
flight safety system test completed at the time of license application. 
An applicant must file any remaining test reports or summaries before 
flight as required by Sec. 417.305(d) and section E417.1(i) of appendix 
E of part 417 of

[[Page 540]]

this chapter. Upon request, the launch operator must file the complete 
test report with the FAA for review, if the launch operator previously 
filed test report summaries with the FAA.
    (f) Reuse of flight termination system components. An applicant's 
safety review document must contain a reuse qualification test, 
refurbishment plan, and acceptance test plan for the use of any flight 
termination system component on more than one flight. This test plan 
must define the applicant's process for demonstrating that the component 
can satisfy all its performance specifications when subjected to the 
qualification test environmental levels plus the total number of 
exposures to the maximum expected environmental levels for each of the 
flights to be flown.



Sec. 415.131  Flight safety system crew data.

    (a) An applicant's safety review document must identify each flight 
safety system crew position and the role of that crewmember during 
launch processing and flight of a launch vehicle.
    (b) An applicant's safety review document must describe the 
certification program for flight safety system crewmembers established 
to ensure compliance with Sec. Sec. 417.105 and 417.311 of this 
chapter.



Sec. 415.133  Safety at end of launch.

    An applicant must demonstrate compliance with Sec. 417.129 of this 
chapter, for any proposed launch of a launch vehicle with a stage or 
component that will reach Earth orbit.



Sec. 415.135  Denial of safety approval.

    The FAA notifies an applicant, in writing, if it has denied safety 
approval for a license application. The notice states the reasons for 
the FAA's determination. The applicant may respond to the reasons for 
the determination and request reconsideration.



Sec. Sec. 415.136--415.200  [Reserved]



                     Subpart G_Environmental Review



Sec. 415.201  General.

    An applicant shall provide the FAA with information for the FAA to 
analyze the environmental impacts associated with a proposed launch. The 
information provided by an applicant must be sufficient to enable the 
FAA to comply with the requirements of the National Environment Policy 
Act, 42 U.S.C. 4321 et seq. (NEPA), the Council on Environmental Quality 
Regulations for Implementing the Procedural Provisions of NEPA, 40 CFR 
parts 1500-1508, and the FAA's Procedures for Considering Environmental 
Impacts, FAA Order 1050.1D.

[Amdt. 415-03, 64 FR 19616, Apr. 21, 1999. Redesignated by Amdt. 415-4, 
71 FR 50532, Aug. 25, 2006]



Sec. 415.203  Environmental information.

    An applicant shall submit environmental information concerning:
    (a) A proposed launch site not covered by existing environmental 
documentation;
    (b) A proposed launch vehicle with characteristics falling 
measurably outside the parameters of existing environmental 
documentation;
    (c) A proposed launch from an established launch site involving a 
vehicle with characteristics falling measurably outside the parameters 
of any existing environmental impact statement that applies to that 
site;
    (d) A proposed payload that may have significant environmental 
impacts in the event of a mishap; and
    (e) Other factors as determined by the FAA.

[Amdt. 415-03, 64 FR 19616, Apr. 21, 1999. Redesignated by Amdt. 415-4, 
71 FR 50532, Aug. 25, 2006]



Sec. Sec. 415.204--415.400  [Reserved]



Sec. Appendix A to Part 415--FAA/USSPACECOM Launch Notification Form

[[Page 541]]

[GRAPHIC] [TIFF OMITTED] TR21AP99.001


[[Page 542]]


[GRAPHIC] [TIFF OMITTED] TR21AP99.002


[[Page 543]]





Sec. Appendix B of Part 415--Safety Review Document Outline

    This appendix contains the format and numbering scheme for a safety 
review document to be filed as part of an application for a launch 
license as required by subpart F of part 415. The applicable sections of 
parts 413, 415, and 417 of this chapter are referenced in the outline 
below.

                         Safety Review Document

1.0 Launch Description (Sec. 415.109)
1.1 Launch Site Description
1.2 Launch Vehicle Description
1.3 Payload Description
1.4 Trajectory
1.5 Staging Events
1.6 Vehicle Performance Graphs
2.0 Launch Operator Organization (Sec. 415.111)
2.1 Launch Operator Organization (Sec. 415.111 and Sec. 417.103 of 
          this chapter)
2.1.1 Organization Summary
2.1.3 Organization Charts
2.1.4 Office Descriptions and Safety Functions
3.0 Launch Personnel Certification Program (Sec. 415.113 and Sec. 
          417.105 of this chapter)
3.1 Program Summary
3.2 Program Implementation Document(s)
3.3 Table of Safety Critical Tasks Performed by Certified Personnel
4.0 Flight Safety (Sec. 415.115)
4.1 Initial Flight Safety Analysis
4.1.1 Flight Safety Sub-Analyses, Methods, and Assumptions
4.1.2 Sample Calculation and Products
4.1.3 Launch Specific Updates and Final Flight Safety Analysis Data
4.2 Radionuclide Data (where applicable)
4.3 Flight Safety Plan
4.3.1 Flight Safety Personnel
4.3.2 Flight Safety Rules
4.3.3 Flight Safety System Summary and Preflight Tests
4.3.4 Trajectory and Debris Dispersion Data
4.3.5 Flight Hazard Areas and Safety Clear Zones
4.3.6 Support Systems and Services
4.3.7 Flight Safety Operations
4.3.8 Unguided Suborbital Launch Vehicles (where applicable)
5.0 Ground Safety (Sec. 415.117)
5.1 Ground Safety Analysis Report
5.2 Ground Safety Plan
6.0 Launch Plans (Sec. 415.119 and Sec. 417.111 of this chapter)
6.1 Launch Support Equipment and Instrumentation Plan
6.2 Configuration Management and Control Plan
6.3 Frequency Management Plan
6.4 Flight Termination System Electronic Piece Parts Program Plan
6.5 Accident Investigation Plan
6.6 Local Agreements and Public Coordination Plan
6.7 Hazard Area Surveillance and Clearance Plan
6.8 Communications Plan
7.0 Launch Schedule (Sec. 415.121)
7.1 Launch Processing Schedule
8.0 Computing Systems and Software (Sec. 415.123)
8.1 Hardware and Software Descriptions
8.2 Flow Charts and Diagrams
8.3 Logic Diagrams and Software Design Descriptions
8.4 Operator User Manuals and Documentation
8.5 Software Hazard Analyses
8.6 Software Test Plans, Test Procedures, and Test Results
8.7 Software Development Plan
9.0 Unique Safety Policies, Requirements and Practices (Sec. 415.125)
10.0 Flight Safety System Design and Operation Data (Sec. 415.127)
10.1 Flight Safety System Description
10.2 Flight Safety System Diagram
10.3 Flight Safety System Subsystem Design Information
10.4 Flight Safety System Analyses
10.5 Flight Termination System Environmental Design
10.6 Flight Safety System Compliance Matrix
10.7 Flight Termination System Installation Procedures
10.8 Tracking System Validation Procedures
11.0 Flight Safety System Test Data (Sec. 415.129)
11.1 Testing Compliance Matrix
11.2 Test Program Overview and Schedule
11.3 Flight Safety System Test Plans and Procedures
11.4 Test Reports
11.5 Reuse of Flight Termination System Components
12.0 Flight Safety System Crew Data (Sec. 415.131)
12.1 Position Descriptions
12.2 Certification and Training Program Description
13.0 Safety at End of Launch (Sec. 415.133)

[Docket No. FAA-2000-7953, 71 FR 50536, Aug. 25, 2006]



PART 417_LAUNCH SAFETY--Table of Contents




           Subpart A_General and License Terms and Conditions

Sec.
417.1 General information.
417.3 Definitions and acronyms.
417.5 [Reserved]
417.7 Public safety responsibility.
417.9 Launch site responsibility.
417.11 Continuing accuracy of license application; application for 
          modification of license.

[[Page 544]]

417.13 Agreement with Federal launch range.
417.15 Records.
417.17 Launch reporting requirements and launch specific updates.
417.19 Registration of space objects.
417.21 Financial responsibility requirements.
417.23 Compliance monitoring.
417.25 Post launch report.
417.26-417.100 [Reserved]

                Subpart B_Launch Safety Responsibilities

417.101 Scope.
417.103 Safety organization.
417.105 Launch personnel qualifications and certification.
417.107 Flight safety.
417.109 Ground safety.
417.111 Launch plans.
417.113 Launch safety rules.
417.115 Tests.
417.117 Reviews.
417.119 Rehearsals.
417.121 Safety critical preflight operations.
417.123 Computing systems and software.
417.125 Launch of an unguided suborbital launch vehicle.
417.127 Unique safety policies, requirements, and practices.
417.129 Safety at end of launch.
417.130-417.200 [Reserved]

                    Subpart C_Flight Safety Analysis

417.201 Scope and applicability.
417.203 Compliance
417.205 General.
417.207 Trajectory analysis.
417.209 Malfunction turn analysis.
417.211 Debris analysis.
417.213 Flight safety limits analysis.
417.215 Straight-up time analysis.
417.217 Overflight gate analysis.
417.218 Hold-and-resume gate analysis.
417.219 Data loss flight time and planned safe flight state analyses.
417.221 Time delay analysis.
417.223 Flight hazard area analysis.
417.224 Probability of failure analysis.
417.225 Debris risk analysis.
417.227 Toxic release hazard analysis.
417.229 Far-field overpressure blast effects analysis.
417.231 Collision avoidance analysis.
417.233 Analysis for an unguided suborbital launch vehicle flown with a 
          wind weighting safety system.

                     Subpart D_Flight Safety System

417.301 General.
417.303 Command control system requirements.
417.305 Command control system testing.
417.307 Support systems.
417.309 Flight safety system analysis.
417.311 Flight safety system crew roles and qualifications.

                         Subpart E_Ground Safety

417.401 Scope.
417.402 Compliance.
417.403 General.
417.405 Ground safety analysis.
417.407 Hazard control implementation.
417.409 System hazard controls.
417.411 Safety clear zones for hazardous operations.
417.413 Hazard areas.
417.415 Post-launch and post-flight-attempt hazard controls.
417.417 Propellants and explosives.

Appendix A to Part 417--Flight Safety Analysis Methodologies and 
          Products for a Launch Vehicle Flown with a Flight Safety 
          System
Appendix B to Part 417--Flight Hazard Area Analysis for Aircraft and 
          Ship Protection
Appendix C to Part 417--Flight Safety Analysis Methodologies and 
          Products for an Unguided Suborbital Launch Vehicle Flown With 
          a Wind Weighting Safety System
Appendix D to Part 417--Flight Termination Systems, Components, 
          Installation, and Monitoring
Appendix E to Part 417--Flight Termination System Testing and Analysis
Appendix F to Part 417 [Reserved]
Appendix G to Part 417--Natural and Triggered Lightning Flight Commit 
          Criteria
Appendix H to Part 417 [Reserved]
Appendix I to Part 417--Methodologies for Toxic Release Hazard Analysis 
          and Operational Procedures
Appendix J to Part 417--Ground Safety Analysis Report

    Authority: 49 U.S.C. 70101-70121.

    Source: Docket No. FAA-2000-7953, 71 FR 50537, Aug. 25, 2006, unless 
otherwise noted.



           Subpart A_General and License Terms and Conditions



Sec. 417.1  General information.

    (a) Scope. This part sets forth--
    (1) The responsibilities of a launch operator conducting a licensed 
launch of an expendable launch vehicle; and
    (2) The requirements for maintaining a launch license obtained under 
part 415 of this chapter. Parts 413 and 415 of this chapter contain 
requirements for preparing a license application to conduct a launch, 
including information

[[Page 545]]

reviewed by the FAA to conduct a policy, safety, payload, and 
environmental review., and a payload determination.
    (b) Applicability. (1) The administrative requirements for filing 
material with the FAA in subpart A of this part apply to all licensed 
launches from a Federal launch range or a non-Federal launch site, 
except where noted.
    (2) The safety requirements of subparts B through E of this part 
apply to all licensed launches of expendable launch vehicles. See 
paragraphs (d) and (e) of this section for exceptions to this provision.
    (c) ``Meets intent'' certification. For a licensed launch from a 
Federal launch range, a launch operator need not demonstrate to the FAA 
that an alternative means of satisfying a requirement of this part 
provides an equivalent level of safety for a launch if written evidence 
demonstrates that a Federal launch range has, by the effective date of 
this part, granted a ``meets intent certification,'' including through 
``tailoring,'' that applies to the requirement and that launch. See 
paragraph (f) of this section for exceptions to this provision. Written 
evidence includes:
    (1) Range flight plan approval,
    (2) Missile system pre-launch safety package,
    (3) Preliminary and final flight data packages,
    (4) A tailored version of EWR 127-1,
    (5) Range email to the FAA stating that the MIC was approved, or
    (6) Operation approval.
    (d) Waiver. For a licensed launch from a Federal launch range, a 
requirement of this part does not apply to a launch if written evidence 
demonstrates that a Federal launch range has, by the effective date of 
this part, granted a waiver that allows noncompliance with the 
requirement for that launch. See paragraph (f) of this section for 
exceptions to this provision. Written evidence includes:
    (1) Range flight plan approval,
    (2) Missile system pre-launch safety package,
    (3) Preliminary and final flight data packages,
    (4) A tailored version of EWR 127-1,
    (5) Range email to the FAA stating that the waiver was approved, or
    (6) Operation approval.
    (e) Grandfathering. For a licensed launch from a Federal launch 
range, a requirement of this part does not apply to the launch if the 
Federal launch range's grandfathering criteria allow noncompliance with 
the requirement for that launch. See paragraph (f) of this section for 
exceptions to this provision.
    (f) Exceptions to Federal launch range meets intent certifications, 
waivers, and grandfathering. Even if a licensed launch from a Federal 
launch range satisfies paragraph (c), (d), or (e) of this section for a 
requirement of this part, the requirement applies and a launch operator 
must satisfy the requirement, obtain FAA approval of any alternative, or 
obtain FAA approval for any further noncompliance if--
    (1) The launch operator modifies the launch vehicle's operation or 
safety characteristics;
    (2) The launch operator uses the launch vehicle, component, system, 
or subsystem in a new application;
    (3) The FAA or the launch operator determines that a previously 
unforeseen or newly discovered safety hazard exists that is a source of 
significant risk to public safety; or
    (4) The Federal launch range previously accepted a component, 
system, or subsystem, but did not then identify a noncompliance to a 
Federal launch range requirement.
    (g) Equivalent level of safety. The requirements of this part apply 
to a launch operator and the launch operator's launch unless the launch 
operator clearly and convincingly demonstrates that an alternative 
approach provides an equivalent level of safety.



Sec. 417.3  Definitions and acronyms.

    For the purpose of this part,
    Command control system means the portion of a flight safety system 
that includes all components needed to send a flight termination control 
signal to an onboard vehicle flight termination system. A command 
control system starts with any flight termination activation switch at a 
flight safety crew console and ends at each command-transmitting 
antenna. It includes all intermediate equipment, linkages, and software 
and any auxiliary transmitter

[[Page 546]]

stations that ensure a command signal will reach the onboard vehicle 
flight termination system from liftoff until the launch vehicle achieves 
orbit or can no longer reach a populated or other protected area.
    Command destruct system means a portion of a flight termination 
system that includes all components on board a launch vehicle that 
receive a flight termination control signal and achieve destruction of 
the launch vehicle. A command destruct system includes all receiving 
antennas, receiver decoders, explosive initiating and transmission 
devices, safe and arm devices and ordnance necessary to achieving 
destruction of the launch vehicle upon receipt of a destruct command.
    Conjunction on launch means the approach of a launch vehicle or any 
launch vehicle component or payload within 200 kilometers of a manned or 
mannable orbiting object--
    (1) During the flight of an unguided suborbital rocket; or
    (2) For an orbital launch vehicle during--
    (i) The ascent to initial orbital insertion and through at least one 
complete orbit; and
    (ii) Each subsequent orbital maneuver or burn from initial park 
orbit, or direct ascent to a higher or interplanetary orbit.
    Countdown means the timed sequence of events that must take place to 
initiate flight of a launch vehicle.
    Crossrange means the distance measured along a line whose direction 
is either 90 degrees clockwise (right crossrange) or counter-clockwise 
(left crossrange) to the projection of a launch vehicle's planned 
nominal velocity vector azimuth onto a horizontal plane tangent to the 
ellipsoidal Earth model at the launch vehicle's sub-vehicle point. The 
terms right crossrange and left crossrange may also be used to indicate 
direction.
    Data loss flight time means the shortest elapsed thrusting time 
during which a launch vehicle flown with a flight safety system can move 
from its normal trajectory to a condition where it is possible for the 
launch vehicle to endanger the public.
    Destruct means the act of terminating the flight of a launch vehicle 
flown with a flight safety system in a way that destroys the launch 
vehicle and disperses or expends all remaining propellant and renders 
remaining energy sources non-propulsive before the launch vehicle or any 
launch vehicle component or payload impacts the Earth's surface.
    Downrange means the distance measured along a line whose direction 
is parallel to the projection of a launch vehicle's planned nominal 
velocity vector azimuth into a horizontal plane tangent to the 
ellipsoidal Earth model at the launch vehicle sub-vehicle point. The 
term downrange may also be used to indicate direction.
    Drag impact point means a launch vehicle instantaneous impact point 
corrected for atmospheric drag.
    Dwell time means--
    (1) The period during which a launch vehicle instantaneous impact 
point is over a populated or other protected area; or
    (2) The period during which an object is subjected to a test 
condition.
    Explosive debris means solid propellant fragments or other pieces of 
a launch vehicle or payload that result from break up of the launch 
vehicle during flight and that explode upon impact with the Earth's 
surface and cause overpressure.
    Fail-over means a method of ensuring continuous or near continuous 
operation of a command transmitter system by automatically switching 
from a primary transmitter to a secondary transmitter when a condition 
exists that indicates potential failure of the primary transmitter.
    Family performance data means--
    (1) Results of launch vehicle component and system tests that 
represent similar characteristics for a launch vehicle component or 
system; and
    (2) Data that is continuously updated as additional samples of a 
given component or system are tested.
    Flight safety limit means criteria to ensure a set of impact limit 
lines established for the flight of a launch vehicle flown with a flight 
safety system bound the area where debris with a ballistic coefficient 
of three or more is allowed to impact when a flight safety system 
functions.

[[Page 547]]

    Flight safety system means the system that provides a means of 
control during flight for preventing a hazard from a launch vehicle, 
including any payload hazard, from reaching any populated or other 
protected area in the event of a launch vehicle failure. A flight safety 
system includes:
    (1) All hardware and software used to protect the public in the 
event of a launch vehicle failure; and
    (2) The functions of any flight safety crew.
    Flight safety crew means the personnel, designated by a launch 
operator, who operate flight safety system hardware and software to 
monitor the flight of a launch vehicle and make a flight termination 
decision.
    Flight termination system means all components, onboard a launch 
vehicle, that provide the ability to end a launch vehicle's flight in a 
controlled manner. A flight termination system consists of all command 
destruct systems, inadvertent separation destruct systems, or other 
systems or components that are onboard a launch vehicle and used to 
terminate flight.
    Gate means the portion of a flight safety limit boundary through 
which the tracking icon of a launch vehicle flown with a flight safety 
system may pass without flight termination.
    In-family means a launch vehicle component or system test result 
that indicates that the component or system's performance conforms to 
the family performance data that was established by previous test 
results.
    Inadvertent separation destruct system means an automatic destruct 
system that uses mechanical means to trigger the destruction of a launch 
vehicle stage.
    Launch azimuth means the horizontal angular direction initially 
taken by a launch vehicle at liftoff, measured clockwise in degrees from 
true north.
    Launch crew means all personnel who control the countdown and flight 
of a launch vehicle or who make irrevocable operational decisions that 
have the potential for impacting public safety. A launch crew includes 
members of the flight safety crew.
    Launch processing means all preflight preparation of a launch 
vehicle at a launch site, including buildup of the launch vehicle, 
integration of the payload, and fueling.
    Launch wait means a relatively short period of time when launch is 
not permitted in order to avoid a conjunction on launch or to safely 
accommodate temporary intrusion into a flight hazard area. A launch wait 
can occur within a launch window, can delay the start of a launch 
window, or terminate a launch window early.
    Launch window means a period of time during which the flight of a 
launch vehicle may be initiated.
    ``Meets intent'' certification means a decision by a Federal launch 
range to accept a substitute means of satisfying a safety requirement 
where the substitute provides an equivalent level of safety to that of 
the original requirement.
    Normal flight means the flight of a properly performing launch 
vehicle whose real-time instantaneous impact point does not deviate from 
the nominal instantaneous impact point by more than the sum of the wind 
effects and the three-sigma guidance and performance deviations in the 
uprange, downrange, left-crossrange, or right-crossrange directions.
    Normal trajectory means a trajectory that describes normal flight.
    Non-operating environment means an environment that a launch vehicle 
component experiences before flight and when not otherwise being 
subjected to acceptance tests. Non-operating environments include, but 
need not be limited to, storage, transportation, and installation.
    Operating environment means an environment that a launch vehicle 
component will experience during acceptance testing, launch countdown, 
and flight. Operating environments include shock, vibration, thermal 
cycle, acceleration, humidity, and thermal vacuum.
    Operating life means, for a flight safety system component, the 
period of time beginning with activation of the component or 
installation of the component on a launch vehicle, whichever is earlier, 
for which the component is capable of satisfying all its performance 
specifications through the end of flight.
    Operation hazard means a hazard derived from an unsafe condition 
created

[[Page 548]]

by a system or operating environment or by an unsafe act.
    Out-of-family means a component or system test result where the 
component or system's performance does not conform to the family 
performance data that was established by previous test results and is an 
indication of a potential problem with the component or system requiring 
further investigation and possible corrective action.
    Passive component means a flight termination system component that 
does not contain active electronic piece parts.
    Performance specification means a statement prescribing the 
particulars of how a component or part is expected to perform in 
relation to the system that contains the component or part. A 
performance specification includes specific values for the range of 
operation, input, output, or other parameters that define the 
component's or part's expected performance.
    Protected area means an area of land not controlled by a launch 
operator that:
    (1) Is a populated area;
    (2) Is environmentally sensitive; or
    (3) Contains a vital national asset.
    Safety-critical computer system function means any computer system 
function that, if not performed, if performed out of sequence, or if 
performed incorrectly, may directly or indirectly cause a public safety 
hazard.
    Service life means, for a flight termination system component, the 
sum total of the component's storage life and operating life.
    Storage life means, for a flight termination system component, the 
period of time after manufacturing of the component is complete until 
the component is activated or installed on a launch vehicle, whichever 
is earlier, during which the component may be subjected to storage 
environments and must remain capable of satisfying all its performance 
specifications.
    Sub-vehicle point means the location on an ellipsoidal Earth model 
where the normal to the ellipsoid passes through the launch vehicle's 
center of gravity. The term is the same as the weapon system term ``sub-
missile point.''
    System hazard means a hazard associated with a system and generally 
exists even when no operation is occurring.
    Tracking icon means the representation of a launch vehicle's 
instantaneous impact point, debris footprint, or other vehicle 
performance metric that is displayed to a flight safety crew during 
real-time tracking of the launch vehicle's flight.
    Uprange means the distance measured along a line that is 180 degrees 
to the downrange direction. The term uprange may also be used to 
indicate direction.
    Waiver means a decision that allows a launch operator to continue 
with a launch despite not satisfying a specific safety requirement and 
where the launch operator is not able to demonstrate an equivalent level 
of safety.



Sec. 417.5  [Reserved]



Sec. 417.7  Public safety responsibility.

    A launch operator is responsible for ensuring the safe conduct of a 
licensed launch and for ensuring public safety and safety of property at 
all times during the conduct of a licensed launch.



Sec. 417.9  Launch site responsibility.

    (a) A launch operator must ensure that launch processing at a launch 
site in the United States satisfies the requirements of this part. 
Launch processing at a launch site outside the United States may be 
subject to the requirements of the governing jurisdiction.
    (b) For a launch from a launch site licensed under part 420 of this 
chapter, a launch operator must--
    (1) Conduct its operations as required by any agreements that the 
launch site operator has with any Federal and local authorities under 
part 420 of this chapter; and
    (2) Coordinate with the launch site operator and provide any 
information on its activities and potential hazards necessary for the 
launch site operator to determine how to protect any other launch 
operator, person, or property at the launch site as required by the 
launch site operator's obligations under Sec. 420.55 of this chapter.
    (c) For a launch from an exclusive-use site, where there is no 
licensed

[[Page 549]]

launch site operator, a launch operator must satisfy the requirements of 
this part and the public safety requirements of part 420 of this 
chapter. This subpart does not apply to licensed launches occurring from 
Federal launch ranges.



Sec. 417.11  Continuing accuracy of license application; application for modification of license.

    (a) A launch operator must ensure the representations contained in 
its application are accurate for the entire term of the license. A 
launch operator must conduct a licensed launch and carry out launch 
safety procedures in accordance with its application.
    (b) After the FAA issues a launch license, a launch operator must 
apply to the FAA for modification of a launch license if--
    (1) A launch operator proposes to conduct a launch or carry out a 
launch safety procedure or operation in a manner that is not authorized 
by the license; or
    (2) Any representation contained in the license application that is 
material to public health and safety or safety of property would no 
longer be accurate and complete or would not reflect the launch 
operator's procedures governing the actual conduct of a launch. A 
representation is material to public health and safety or safety of 
property if it alters or affects the launch operator's launch plans or 
procedures, class of payload, orbital destination, type of launch 
vehicle, flight path, launch site, launch point, or any safety system, 
policy, procedure, requirement, criteria or standard.
    (c) A launch operator must prepare and file an application to modify 
a launch license under part 413 of this chapter. The launch operator 
must identify any part of its license or license application that a 
proposed modification would change or affect.
    (d) The FAA reviews all approvals and determinations required by 
this chapter to determine whether they remain valid in light of a 
proposed modification. The FAA approves a modification that satisfies 
the requirements of this part.
    (e) Upon approval of a modification, the FAA issues to a launch 
operator either a written approval or a license order modifying the 
license if a stated term or condition of the license is changed, added 
or deleted. A written approval has the full force and effect of a 
license order and is part of the licensing record.



Sec. 417.13  Agreement with Federal launch range.

    Before conducting a licensed launch from a Federal launch range, a 
launch operator must--
    (a) Enter into an agreement with a Federal launch range to provide 
access to and use of U.S. Government property and services required to 
support a licensed launch from the facility and for public safety 
related operations and support. The agreement must be in effect for the 
conduct of any licensed launch; and
    (b) Comply with any requirements of the agreement with the Federal 
launch range that may affect public safety and safety of property during 
the conduct of a licensed launch, including flight safety procedures and 
requirements.



Sec. 417.15  Records.

    (a) A launch operator must maintain all records necessary to verify 
that it conducts licensed launches according to representations 
contained in the licensee's application. A launch operator must retain 
records for three years after completion of all launches conducted under 
the license.
    (b) If a launch accident or launch incident occurs, as defined by 
Sec. 405.1 of this chapter, a launch operator must preserve all records 
related to the event until completion of any Federal investigation and 
the FAA advises the licensee not to retain the records. The launch 
operator must make available to Federal officials for inspection and 
copying all records that these regulations require the launch operator 
to maintain.



Sec. 417.17  Launch reporting requirements and launch specific updates.

    (a) General. A launch operator must satisfy the launch reporting 
requirements and launch specific updates required by this section and by 
the terms of the launch operator's license. A launch operator must file 
any change

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to the information in the license application, not identified by this 
section, with the FAA as a request for license modification as required 
by Sec. 417.11.
    (b) Launch reporting requirements for a launch from a Federal launch 
range or a non-Federal launch site. (1) Launch schedule and point of 
contact. For each launch, a launch operator must file a launch schedule 
that identifies each review, rehearsal, and safety critical launch 
processing. A launch operator must file a point of contact for the 
schedule. The launch schedule must be filed and updated in time to allow 
FAA personnel to participate in the reviews, rehearsals, and safety 
critical launch processing.
    (2) Sixty-day report. Not later than 60 days before each flight 
conducted under a launch operator license, a launch operator must 
provide the FAA the following launch-specific information:
    (i) Payload information required by Sec. 415.59 of this chapter; 
and
    (ii) Flight information, including the launch vehicle, planned 
flight path, staging and impact locations, and any on-orbit activity of 
the launch vehicle, including each payload delivery point.
    (3) U.S. Space Command Launch Notification. Not later than noon, 
EST, 15 days before each licensed flight, a launch operator must file a 
completed Federal Aviation Administration/U.S. Space Command (FAA/
USSPACECOM) Launch Notification Form (OMB No. 2120-0608) with the FAA.
    (c) Launch specific updates for a launch from a non-Federal launch 
site. A launch operator must file a launch specific update, required by 
this part, and any required by the terms of the launch license, for 
every substantive change to the information outlined in this part. For 
each launch, a launch operator must file the following launch specific 
updates:
    (1) Flight safety system test schedule. For each launch of a launch 
vehicle flown with a flight safety system, a launch operator must file 
an updated flight safety system test schedule and points of contact no 
later than six months before flight. A launch operator must immediately 
file any later change to ensure that the FAA has the most current data.
    (2) Launch plans. A launch operator must file any changes or 
additions to its launch plans required by Sec. 417.111 to the FAA no 
later than 15 days before the associated activity is to take place. A 
launch operator must file the countdown plan with the FAA no later than 
15 days before the countdown is to take place. If a change involves the 
addition of a new public hazard or the elimination of any control for a 
previously identified public hazard, a launch operator must request a 
license modification under Sec. 417.11.
    (3) Thirty-day flight safety analysis update. A launch operator must 
file updated flight safety analysis products, using previously approved 
methodologies, for each launch no later than 30 days before flight.
    (i) The launch operator:
    (A) Must account for vehicle and mission specific input data;
    (B) May reference previously approved analysis products and data 
that are applicable to the launch or data that is applicable to a series 
of launches;
    (C) Must account for potential variations in input data that may 
affect any analysis product within the final 30 days before flight;
    (D) Must file the analysis products using the same format and 
organization used in its license application; and
    (E) May not change an analysis product within the final 30 days 
before flight unless the launch operator identified a process for making 
a change in that period as part of the launch operator's flight safety 
analysis process and the FAA approved the process by grant of a license 
to the launch operator.
    (ii) A launch operator need not file the 30-day analysis if the 
launch operator:
    (A) Demonstrates that the analysis filed during the license 
application process satisfies all the requirements of this subpart; and
    (B) Demonstrates the analysis does not need to be updated to account 
for launch specific factors.
    (4) Flight termination system qualification test reports. For the 
launch of a launch vehicle flown with a flight safety system, a launch 
operator must file

[[Page 551]]

all flight termination system qualification test reports, or test report 
summaries, as required by section E417.1(i) of appendix E of this part, 
with the FAA no later than six months before the first flight attempt . 
The summary must identify when and where the tests were performed and 
provide the results. Complete qualification test reports must be made 
available to the FAA upon request.
    (5) Flight termination system acceptance and age surveillance test 
report summaries. For the launch of a launch vehicle flown with a flight 
safety system, a launch operator must file a summary of the results of 
each flight termination system acceptance and age surveillance test, or 
the complete test report, as required by section E417.1(i) of appendix E 
of this part, no later than 30 days before the first flight attempt for 
each launch . The summary must identify when and where the tests were 
performed and provide the results. Complete acceptance and age 
surveillance test reports must be made available to the FAA upon 
request.
    (6) Command control system acceptance test reports. For the launch 
of a launch vehicle flown with a flight safety system, a launch operator 
must file all command control system acceptance test reports, or test 
report summaries, as required by Sec. 417.305(d), with the FAA no later 
than 30 days before the first flight attempt. The summary must identify 
when and where the tests were performed and provide the results. 
Complete acceptance test reports must be made available to the FAA upon 
request.
    (7) Ground safety analysis report updates. A launch operator must 
file ground safety analysis report updates with the FAA as soon as the 
need for the change is identified and at least 30 days before the 
associated activity takes place. A launch operator must file a license 
modification request with the FAA for each change that involves the 
addition of a hazard that can affect public safety or the elimination of 
a previously identified hazard control for a hazard that still exists.



Sec. 417.19  Registration of space objects.

    (a) To assist the U.S. Government in implementing Article IV of the 
1975 Convention on Registration of Objects Launched into Outer Space, 
each launch operator must provide to the FAA the information required by 
paragraph (b) of this section for all objects placed in space by a 
licensed launch, including a launch vehicle and any components, except:
    (1) Any object owned and registered by the U.S. Government; and
    (2) Any object owned by a foreign entity.
    (b) For each object that must be registered in accordance with this 
section, not later than 30 days following the conduct of a licensed 
launch, an operator must file the following information:
    (1) The international designator of the space object(s);
    (2) Date and location of launch;
    (3) General function of the space object; and
    (4) Final orbital parameters, including:
    (i) Nodal period;
    (ii) Inclination;
    (iii) Apogee; and
    (iv) Perigee.



Sec. 417.21  Financial responsibility requirements.

    A launch operator must comply with financial responsibility 
requirements as required by part 440 of this chapter and as specified in 
a license or license order.



Sec. 417.23  Compliance monitoring.

    (a) A launch operator must allow access by, and cooperate with, 
Federal officers or employees or other individuals authorized by the FAA 
to observe any of its activities, or of its contractors or 
subcontractors, associated with the conduct of a licensed launch.
    (b) For each licensed launch, a launch operator must provide the FAA 
with a console for monitoring the progress of the countdown and 
communication on all channels of the countdown communications network. A 
launch operator must also provide the FAA with the capability to 
communicate with the person designated by Sec. 417.103(b)(1).

[[Page 552]]



Sec. 417.25  Post launch report.

    (a) For a launch operator launching from a Federal launch range, a 
launch operator must file a post launch report with the FAA no later 
than 90 days after the launch, unless an FAA launch site safety 
assessment shows that the Federal launch range creates a post launch 
report that contains the information required by this section.
    (b) For a launch operator launching from a non-Federal launch site, 
a launch operator must file a post launch report with the FAA no later 
than 90 days after the launch.
    (c) The post launch report must:
    (1) Identify any discrepancy or anomaly that occurred during the 
launch countdown and flight;
    (2) Identify any deviation from any term of the license or any event 
otherwise material to public safety, and each corrective action to be 
implemented before any future flight;
    (3) For the launch of launch vehicle flown with a flight safety 
system, identify any flight environment not consistent with the maximum 
predicted environment as required by Sec. 417.307(b) and any measured 
wind profiles not consistent with the predictions used for the launch, 
as required by Sec. 417.217(d)(2); and
    (4) For the launch of an unguided suborbital launch vehicle, 
identify the actual impact location of all impacting stages and any 
impacting components, and provide a comparison of actual and predicted 
nominal performance.



Sec. Sec. 417.26--417.100  [Reserved]



                Subpart B_Launch Safety Responsibilities



Sec. 417.101  Scope.

    This subpart contains public safety requirements that apply to the 
launch of an orbital or suborbital expendable launch vehicle from a 
Federal launch range or other launch site. If the FAA has assessed the 
Federal launch range, through its launch site safety assessment, and 
found that an applicable range safety-related launch service or property 
satisfies the requirements of this subpart, then the FAA will treat the 
Federal launch range's launch service or property as that of a launch 
operator without need for further demonstration of compliance to the FAA 
if:
    (a) A launch operator has contracted with a Federal launch range for 
the provision of the safety-related launch service or property; and
    (b) The FAA has assessed the Federal launch range, through its 
launch site safety assessment, and found that the Federal launch range's 
safety-related launch service or property satisfy the requirements of 
this subpart. In this case, the FAA will treat the Federal launch 
range's process as that of a launch operator.



Sec. 417.103  Safety organization.

    (a) A launch operator must maintain and document a safety 
organization. A launch operator must identify lines of communication and 
approval authority for all public safety decisions, including those 
regarding design, operations, and analysis. A launch operator must 
describe its lines of communication, both within the launch operator's 
organization and between the launch operator and any federal launch 
range or other launch site operator providing launch services, in 
writing. Documented approval authority shall also be employed by the 
launch operator throughout the life of the launch system to ensure 
public safety and compliance with this part.
    (b) A launch operator's safety organization must include, but need 
not be limited to, the following launch management positions:
    (1) An employee of the launch operator who has the launch operator's 
final approval authority for launch. This employee, referred to as the 
launch director in this part, must ensure compliance with this part.
    (2) An employee of the launch operator who is authorized to examine 
all aspects of the launch operator's launch safety operations and to 
monitor independently personnel compliance with the launch operator's 
safety policies and procedures. This employee, referred to as the safety 
official in this part, shall have direct access to the launch director, 
who shall ensure that all of the safety official's concerns are 
addressed prior to launch.

[[Page 553]]



Sec. 417.105  Launch personnel qualifications and certification.

    (a) General. A launch operator must employ a personnel certification 
program that documents the qualifications, including education, 
experience, and training, for each member of the launch crew.
    (b) Personnel certification program. A launch operator's personnel 
certification program must:
    (1) Conduct an annual personnel qualifications review and issue 
individual certifications to perform safety related tasks.
    (2) Revoke individual certifications for negligence or failure to 
satisfy certification requirements.



Sec. 417.107  Flight safety.

    (a) Flight safety system. For each launch vehicle, vehicle 
component, and payload, a launch operator must use a flight safety 
system that satisfies subpart D of this part as follows, unless Sec. 
417.125 applies.
    (1) In the vicinity of the launch site. For each launch vehicle, 
vehicle component, and payload, a launch operator must use a flight 
safety system in the vicinity of the launch site if the following exist:
    (i) Any hazard from a launch vehicle, vehicle component, or payload 
can reach any protected area at any time during flight; or
    (ii) A failure of the launch vehicle would have a high consequence 
to the public.
    (2) In the downrange area. For each launch vehicle, vehicle 
component, and payload, a launch operator must provide a flight safety 
system downrange if the absence of a flight safety system would 
significantly increase the accumulated risk from debris impacts.
    (b) Public risk criteria. A launch operator may initiate the flight 
of a launch vehicle only if flight safety analysis performed under 
paragraph (f) of this section demonstrates that any risk to the public 
satisfies the following public risk criteria:
    (1) A launch operator may initiate the flight of a launch vehicle 
only if the risk associated with the total flight to all members of the 
public, excluding persons in waterborne vessels and aircraft, does not 
exceed an expected average number of 0.00003 casualties (Ec <= 30 x 
10-\6\) from impacting inert and impacting explosive debris, 
(Ec <= 30 x 10-\6\) for toxic release, and (Ec <= 30 x 
10-\6\) for far field blast overpressure. The FAA will 
determine whether to approve public risk due to any other hazard 
associated with the proposed flight of a launch vehicle on a case-by-
case basis. The Ec criterion for each hazard applies to each launch from 
lift-off through orbital insertion, including each planned impact, for 
an orbital launch, and through final impact for a suborbital launch.
    (2) A launch operator may initiate flight only if the risk to any 
individual member of the public does not exceed a casualty expectation 
(Ec of 0.000001 per launch (Ec <= 1 x 10-\6\) for each 
hazard.
    (3) A launch operator must implement water borne vessel hazard areas 
that provide an equivalent level of safety to that provided by water 
borne vessel hazard areas implemented for launch from a Federal launch 
range.
    (4) A launch operator must establish aircraft hazard areas that 
provide an equivalent level of safety to that provided by aircraft 
hazard areas implemented for launch from a Federal launch range.
    (c) Debris thresholds. A launch operator's flight safety analysis, 
performed as required by paragraph (f) of this section, must account for 
any inert debris impact with a mean expected kinetic energy at impact 
greater than or equal to 11 ft-lbs and, except for the far field blast 
overpressure effects analysis of Sec. 417.229, a peak incident 
overpressure greater than or equal to 1.0 psi due to any explosive 
debris impact.
    (1) When using the 11 ft-lbs threshold to determine potential 
casualties due to blunt trauma from inert debris impacts, the analysis 
must:
    (i) Incorporate a probabilistic model that accounts for the 
probability of casualty due to any debris expected to impact with 
kinetic energy of 11 ft-lbs or greater and satisfy paragraph (d) of this 
section; or
    (ii) Count each expected impact with kinetic energy of 11 ft-lbs or 
greater to a person as a casualty.
    (2) When applying the 1.0 psi threshold to determine potential 
casualties

[[Page 554]]

due to blast overpressure effects, the analysis must:
    (i) Incorporate a probabilistic model that accounts for the 
probability of casualty due to any blast overpressures of 1.0 psi or 
greater and satisfy paragraph (d) of this section; or
    (ii) Count each person within the 1.0 psi overpressure radius of the 
source explosion as a casualty. When using this approach, the analysis 
must compute the peak incident overpressure using the Kingery-Bulmash 
relationship and may not take into account sheltering, reflections, or 
atmospheric effects. For persons located in buildings, the analysis must 
compute the peak incident overpressure for the shortest distance between 
the building and the blast source. The analysis must count each person 
located anywhere in a building subjected to peak incident overpressure 
equal to or greater than 1.0 psi as a casualty.
    (d) Casualty modeling. A probabilistic casualty model must be based 
on accurate data and scientific principles and must be statistically 
valid. A launch operator must obtain FAA approval of any probabilistic 
casualty model that is used in the flight safety analysis. If the launch 
takes place from a Federal launch range, the analysis may employ any 
probabilistic casualty model that the FAA accepts as part of the FAA's 
launch site safety assessment of the Federal launch range's safety 
process.
    (e) Collision avoidance. (1) A launch operator must ensure that a 
launch vehicle, any jettisoned components, and its payload do not pass 
closer than 200 kilometers to a manned or mannable orbital object--
    (i) Throughout a sub-orbital launch; or
    (ii) For an orbital launch:
    (A) During ascent to initial orbital insertion and through at least 
one complete orbit; and
    (B) During each subsequent orbital maneuver or burn from initial 
park orbit, or direct ascent to a higher or interplanetary orbit or 
until clear of all manned or mannable objects, whichever occurs first.
    (2) A launch operator must obtain a collision avoidance analysis for 
each launch from United States Strategic Command or from a Federal range 
having an approved launch site safety assessment. United States 
Strategic Command calls this analysis a conjunction on launch 
assessment. Sections 417.231 and A417.31 of appendix A of this part 
contain the requirements for obtaining a collision avoidance analysis. A 
launch operator must use the results of the collision avoidance analysis 
to develop flight commit criteria for collision avoidance as required by 
Sec. 417.113(b).
    (f) Flight safety analysis. A launch operator must perform and 
document a flight safety analysis as required by subpart C of this part. 
A launch operator must not initiate flight unless the flight safety 
analysis demonstrates that any risk to the public satisfies the public 
risk criteria of paragraph (b) of this section. For a licensed launch 
that involves a Federal launch range, the FAA will treat an analysis 
performed and documented by the Federal range, and which has an FAA 
approved launch site safety assessment, as that of the launch operator 
as provided in Sec. 417.203(d) of subpart C of this part. A launch 
operator must use the flight safety analysis products to develop flight 
safety rules that govern a launch. Section 417.113 contains the 
requirements for flight safety rules.



Sec. 417.109  Ground safety.

    (a) Ground safety requirements apply to launch processing and post-
launch operations at a launch site in the United States.
    (b) A launch operator must protect the public from adverse effects 
of hazardous operations and systems associated with preparing a launch 
vehicle for flight at a launch site.
    (c) Sec. Sec. 417.111(c), 417.113(b), and 417.115(c), and subpart E 
of this part provide launch operator ground safety requirements.



Sec. 417.111  Launch plans.

    (a) General. A launch operator must implement written launch plans 
that define how launch processing and flight of a launch vehicle will be 
conducted without adversely affecting public safety and how to respond 
to a launch mishap. A launch operator's launch plans must include those 
required by this section. A launch operator's launch

[[Page 555]]

plans do not have to be separate documents, and may be part of other 
applicant documentation. A launch operator must incorporate each launch 
safety rule established under Sec. 417.113 into a related launch safety 
plan. The launch operator must follow each launch plan.
    (b) Flight Safety Plan. A launch operator must implement a plan that 
includes the following:
    (1) Flight safety personnel. Identification of personnel by position 
who:
    (i) Approve and implement each part of the flight safety plan and 
any modifications to the plan; and
    (ii) Perform the flight safety analysis and ensure that the results, 
including the flight safety rules and establishment of flight hazard 
areas, are incorporated into the flight safety plan.
    (2) Flight safety rules. All flight safety rules required by Sec. 
417.113.
    (3) Flight safety system. A description of any flight safety system 
and its operation, including any preflight safety tests that a launch 
operator will perform.
    (4) Trajectory and debris dispersion data. A description of the 
launch trajectory. For an orbital expendable launch vehicle, the 
description must include each planned orbital parameter, stage burnout 
time and state vector, and all planned stage impact times, locations, 
and downrange and crossrange dispersions. For a guided or unguided 
suborbital launch vehicle, the description must include each planned 
stage impact time, location, and downrange and crossrange dispersion.
    (5) Flight hazard areas. Identification and location of each flight 
hazard area established for each launch as required by Sec. 417.223, 
and identification of procedures for surveillance and clearance of these 
areas and zones as required by paragraph (j) of this section.
    (6) Support systems and services. Identification of any support 
systems and services that are part of ensuring flight safety, including 
any aircraft or ship that a launch operator will use during flight.
    (7) Flight safety operations. A description of the flight safety 
related tests, reviews, rehearsals, and other flight safety operations 
that a launch operator will conduct under Sec. Sec. 417.115 through 
417.121. A flight safety plan must contain or incorporate by reference 
written procedures for accomplishing all flight safety operations.
    (8) Unguided suborbital launch vehicles. A launch operator's flight 
safety plan for the launch of an unguided suborbital rocket must meet 
the requirements of paragraph (b) of this section and provide the 
following data:
    (i) Launch angle limits, as required by Sec. 417.125(c)(3); and
    (ii) All procedures for measurement of launch day winds and for 
performing wind weighting as required by Sec. Sec. 417.125 and 417.233.
    (c) Ground safety plan. A launch operator must implement a ground 
safety plan that describes implementation of the hazard controls 
identified by a launch operator's ground safety analysis and 
implementation of the ground safety requirements of subpart E of this 
part. A ground safety plan must address all public safety related issues 
and may include other ground safety issues if a launch operator intends 
it to have a broader scope. A ground safety plan must include the 
following:
    (1) A description of the launch vehicle and any payload, or class of 
payload, identifying each hazard, including explosives, propellants, 
toxics and other hazardous materials, radiation sources, and pressurized 
systems. A ground safety plan must include figures that show the 
location of each hazard on the launch vehicle, and indicate where at the 
launch site a launch operator performs hazardous operations during 
launch processing.
    (2) Propellant and explosive information including:
    (i) Total net explosive weight of each of the launch operator's 
liquid and solid propellants and other explosives for each explosive 
hazard facility as defined by part 420 of this chapter.
    (ii) For each toxic propellant, any hazard controls and process 
constraints determined under the launch operator's toxic release hazard 
analysis for launch processing performed as required by Sec. 417.229 
and appendix I of this part.
    (iii) The explosive and occupancy limits for each explosive hazard 
facility.
    (iv) Individual explosive item information, including configuration 
(such

[[Page 556]]

as, solid motor, motor segment, or liquid propellant container), 
explosive material, net explosive weight, storage hazard classification 
and compatibility group as defined by part 420 of this chapter.
    (3) A graphic depiction of the layout of a launch operator's launch 
complex and other launch processing facilities at the launch site. The 
depiction must show separation distances and any intervening barriers 
between explosive items that affect the total net explosive weight that 
each facility is sited to accommodate. A launch operator must identify 
any proposed facility modifications or operational changes that may 
affect a launch site operator's explosive site plan.
    (4) A description of the process for ensuring that the person 
designated under Sec. 417.103(b)(2) reviews and approves any procedures 
and procedure changes for safety implications.
    (5) Procedures that launch personnel will follow when reporting a 
hazard or mishap to a launch operator's safety organization.
    (6) Procedures for ensuring that personnel have the qualifications 
and certifications needed to perform a task involving a hazard that 
could affect public safety.
    (7) A flow chart of launch processing activities, including a list 
of all major tasks. The flow chart must include all hazardous tasks and 
identify where and when, with respect to liftoff, each hazardous task 
will take place.
    (8) Identification of each safety clear zone and hazard area 
established as required by Sec. Sec. 417.411 and 417.413, respectively.
    (9) A summary of the means for announcing when any hazardous 
operation is taking place, the means for making emergency announcements 
and alarms, and identification of the recipients of each type of 
announcement.
    (10) A summary of the means of prohibiting access to each safety 
clear zone, and implementing access control to each hazard area, 
including any procedures for prohibiting or allowing public access to 
such areas.
    (11) A description of the process for ensuring that all safety 
precautions and verifications are in place before, during, and after 
hazardous operations. This includes the process for verification that an 
area can be returned to a non-hazardous work status.
    (12) Description of each hazard control required by the ground 
safety analysis for each task that creates a public or launch location 
hazard. The hazard control must satisfy Sec. 417.407(b).
    (13) A procedure for the use of any safety equipment that protects 
the public, for each task that creates a public hazard or a launch 
location hazard.
    (14) The requirement and procedure for coordinating with any launch 
site operator and local authorities, for each task creating a public or 
launch location hazard.
    (15) Generic emergency procedures that apply to all emergencies and 
the emergency procedures that apply to each specific task that may 
create a public hazard, including any task that involves hazardous 
material, as required by Sec. 417.407.
    (16) A listing of the ground safety plan references, by title and 
date, such as the ground safety analysis report, explosive quantity-
distance site plan and other ground safety related documentation.
    (d) Launch support equipment and instrumentation plan. A launch 
operator must implement a plan that ensures the reliability of the 
equipment and instrumentation involved in protecting public safety 
during launch processing and flight. A launch support equipment and 
instrumentation plan must:
    (1) List and describe support equipment and instrumentation;
    (2) Identify all certified personnel, by position, as required by 
Sec. 417.105, who operate and maintain the support equipment and 
instrumentation;
    (3) Contain, or incorporate by reference, written procedures for 
support equipment and instrumentation operation, test, and maintenance 
that will be implemented for each launch;
    (4) Identify equipment and instrumentation reliability; and
    (5) Identify any contingencies that protect the public in the event 
of a malfunction.
    (e) Configuration management and control plan. A launch operator 
must implement a plan that:

[[Page 557]]

    (1) Defines the launch operator's process for managing and 
controlling any change to a safety critical system to ensure its 
reliability;
    (2) Identifies, for each system, each person by position who has 
authority to approve design changes and the personnel, by position, who 
maintain documentation of the most current approved design; and
    (3) Contains, or incorporates by reference, all configuration 
management and control procedures that apply to the launch vehicle and 
each support system.
    (f) Frequency management plan. A launch operator must implement a 
plan that:
    (1) Identifies each frequency, all allowable frequency tolerances, 
and each frequency's intended use, operating power, and source;
    (2) Provides for the monitoring of frequency usage and enforcement 
of frequency allocations; and
    (3) Identifies agreements and procedures for coordinating use of 
radio frequencies with any launch site operator and any local and 
Federal authorities, including the Federal Communications Commission.
    (g) Flight termination system electronic piece parts program plan. A 
launch operator must implement a plan that describes the launch 
operator's program for selecting and testing all electronic piece parts 
used in any flight termination system to ensure their reliability. This 
plan must--
    (1) Demonstrate compliance with the requirements of Sec. 
417.309(b)(2);
    (2) Describe the program for selecting piece parts for use in a 
flight termination system;
    (3) Identify performance of any derating, qualification, screening, 
lot acceptance testing, and lot destructive physical analysis for 
electronic piece parts;
    (4) Identify all personnel, by position, who conduct the piece part 
tests;
    (5) Identify the pass/fail criteria for each test for each piece 
part;
    (6) Identify the levels to which each piece part specification will 
be derated; and
    (7) Contain, or incorporate by reference, test procedures for each 
piece part.
    (h) Accident investigation plan (AIP). A launch operator must 
implement a plan containing the launch operator's procedures for 
reporting and responding to launch accidents, launch incidents, or other 
mishaps, as defined by Sec. 401.5 of this chapter. An individual, 
authorized to sign and certify the application as required by Sec. 
413.7(c) of this chapter, and the person designated under Sec. 
417.103(b)(2) must sign the AIP.
    (1) Reporting requirements. An AIP must provide for--
    (i) Immediate notification to the Federal Aviation Administration 
(FAA) Washington Operations Center in case of a launch accident, a 
launch incident or a mishap that involves a fatality or serious injury 
(as defined by 49 CFR 830.2).
    (ii) Notification within 24 hours to the Associate Administrator for 
Commercial Space Transportation or the Federal Aviation Administration 
(FAA) Washington Operations Center in the event of a mishap, other than 
those in Sec. 415.41 (b) (1) of this chapter, that does not involve a 
fatality or serious injury (as defined in 49 CFR 830.2).
    (iii) Submission of a written preliminary report to the FAA, 
Associate Administrator for Commercial Space Transportation, in the 
event of a launch accident or launch incident, as defined by Sec. 401.5 
of this chapter, within five days of the event. The report must identify 
the event as either a launch accident or launch incident, and must 
include the following information:
    (A) Date and time of occurrence;
    (B) Description of event;
    (C) Location of launch;
    (D) Launch vehicle;
    (E) Any payload;
    (F) Vehicle impact points outside designated impact lines, if 
applicable;
    (G) Number and general description of any injuries;
    (H) Property damage, if any, and an estimate of its value;
    (I) Identification of hazardous materials, as defined by Sec. 401.5 
of this chapter, involved in the event, whether on the launch vehicle, 
payload, or on the ground;
    (J) Action taken by any person to contain the consequences of the 
event; and

[[Page 558]]

    (K) Weather conditions at the time of the event.
    (2) Response plan. An AIP must--
    (i) Contain procedures that ensure the containment and minimization 
of the consequences of a launch accident, launch incident or other 
mishap;
    (ii) Contain procedures that ensure the preservation of the data and 
physical evidence;
    (3) Investigation plan. An AIP must contain--
    (i) Procedures for investigating the cause of a launch accident, 
launch incident or other mishap;
    (ii) Procedures for reporting investigation results to the FAA; and
    (iii) Delineated responsibilities, including reporting 
responsibilities for personnel assigned to conduct investigations and 
for any one retained by the licensee to conduct or participate in 
investigations.
    (4) Cooperation with FAA and NTSB. An AIP must contain procedures 
that require the licensee to report to and cooperate with FAA and 
National Transportation Safety Board (NTSB) investigations and designate 
one or more points of contact for the FAA and NTSB.
    (5) Preventive measure. An AIP must contain procedures that require 
the licensee to identify and adopt preventive measures for avoiding 
recurrence of the event.
    (i) Local agreements and public coordination plans. (1) Where there 
is a licensed launch site operator, a launch operator must implement and 
satisfy the launch site operator's local agreements and plans with local 
authorities at or near a launch site whose support is needed to ensure 
public safety during all launch processing and flight, as required by 
part 420 of this chapter.
    (2) For a launch from an exclusive-use site, where there is no 
licensed launch site operator, a launch operator must develop and 
implement any agreements and plans with local authorities at or near the 
launch site whose support is needed to ensure public safety during all 
launch processing and flight, as required by part 420 of this chapter.
    (3) A launch operator must implement a schedule and procedures for 
the release of launch information before flight, after flight, and in 
the event of an mishap.
    (4) A launch operator must develop and implement procedures for 
public access to any launch viewing areas that are under a launch 
operator's control.
    (5) A launch operator must describe its procedures for and 
accomplish the following for each launch--
    (i) Inform local authorities of each designated hazard areas near 
the launch site associated with a launch vehicle's planned trajectory 
and any planned impacts of launch vehicle components and debris as 
defined by the flight safety analysis required by subpart C of this 
part;
    (ii) Provide any hazard area information prepared as required by 
Sec. 417.225 or Sec. 417.235 to the local United States Coast Guard or 
equivalent local authority for issuance of the notices to mariners;
    (iii) Provide hazard area information prepared as required by Sec. 
417.223 or Sec. 417.233 for each aircraft hazard area within a flight 
corridor to the FAA Air Traffic Control (ATC) office or equivalent local 
authority having jurisdiction over the airspace through which the launch 
will take place for the issuance of notices to airmen;
    (iv) Communicate with the local Coast Guard and the FAA ATC office 
or equivalent local authorities, either directly or through any launch 
site operator, to ensure that notices to airmen and mariners are issued 
and in effect at the time of flight; and
    (v) Coordinate with any other local agency that supports the launch, 
such as local law enforcement agencies, emergency response agencies, 
fire departments, National Park Service, and Mineral Management Service.
    (j) Hazard area surveillance and clearance plan. A launch operator 
must implement a plan that defines the process for ensuring that any 
unauthorized persons, ships, trains, aircraft or other vehicles are not 
within any hazard areas identified by the flight safety analysis or the 
ground safety analysis. In the plan, the launch operator must--
    (1) List each hazard area that requires surveillance under 
Sec. Sec. 417.107 and 417.223;

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    (2) Describe how the launch operator will provide for day-of-flight 
surveillance of the flight hazard area to ensure that the presence of 
any member of the public in or near a flight hazard area is consistent 
with flight commit criteria developed for each launch as required by 
Sec. 417.113;
    (3) Verify the accuracy of any radar or other equipment used for 
hazard area surveillance and account for any inaccuracies in the 
surveillance system when enforcing the flight commit criteria;
    (4) Identify the number of security and surveillance personnel 
employed for each launch and the qualifications and training each must 
have;
    (5) Identify the location of roadblocks and other security 
checkpoints, the times that each station must be manned, and any 
surveillance equipment used; and
    (6) Contain, or incorporate by reference, all procedures for launch 
personnel control, handling of intruders, communications and 
coordination with launch personnel and other launch support entities, 
and implementation of any agreements with local authorities and any 
launch site operator.
    (k) Communications plan. A launch operator must implement a plan 
providing licensee personnel and Federal launch range personnel, if 
applicable, communications procedures during countdown and flight. 
Effective issuance and communication of safety-critical information 
during countdown must include hold/resume, go/no go, and abort commands 
by licensee personnel and any Federal launch range personnel, during 
countdown. For all launches from Federal launch ranges, the Federal 
launch range must concur with the communications plan. The 
communications plan must:
    (1) Describe the authority of licensee personnel and any Federal 
launch range personnel by individual or position title, to issue these 
commands;
    (2) Ensure the assignment of communication networks, so that 
personnel identified under this paragraph have direct access to real-
time safety-critical information required for issuing hold/resume, go/no 
go, and abort decisions and commands;
    (3) Ensure personnel, identified under this paragraph, monitor each 
common intercom channel during countdown and flight; and
    (4) Ensure the implementation of a protocol for using defined radio 
telephone communications terminology.
    (l) Countdown plan. A launch operator must develop and implement a 
countdown plan that verifies that each launch safety rule and launch 
commit criterion is satisfied, verifies that personnel can communicate 
during the countdown and that the communication is available after the 
flight; and verifies that a launch operator will be able to recover from 
a launch abort or delay. A countdown plan must:
    (1) Cover the period of time when any launch support personnel are 
to be at their designated stations through initiation of flight.
    (2) Include procedures for handling anomalies that occur during a 
countdown and events and conditions that may result in a constraint to 
initiation of flight.
    (3) Include procedures for delaying or holding a launch when 
necessary to allow for corrective actions, to await improved conditions, 
or to accommodate a launch wait.
    (4) Describe a process for resolving issues that arise during a 
countdown and identify each person, by position, who approves corrective 
actions.
    (5) Include a written countdown checklist that provides a formal 
decision process leading to flight initiation. A countdown checklist 
must include the flight day preflight tests of a flight safety system 
required by subpart D of this part and must contain:
    (i) Identification of operations and specific actions completed, 
verification that there are no constraints to flight, and verification 
that a launch operator satisfied all launch safety rules and launch 
commit criteria;
    (ii) Time of each event;
    (iii) Identification of personnel, by position, who perform each 
operation or specific action, including reporting to the person 
designated under Sec. 417.103(b)(3);
    (iv) Identification of each communication channel that a launch 
operator uses for reporting each event;

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    (v) Identification of all communication and event reporting 
protocols;
    (vi) Polling of personnel, by position, who oversee all safety 
critical systems and operations, to verify that the systems and the 
operations are ready to proceed with the launch; and
    (vii) Record of all critical communications network channels that 
are used for voice, video, or data transmission that support the flight 
safety system, during each countdown.
    (6) In case of a launch abort or delay:
    (i) Identify each condition that must exist in order to make another 
launch attempt;
    (ii) Include a schedule depicting the flow of tasks and events in 
relation to when the abort or delay occurred and the new planned launch 
time; and
    (iii) Identify each interface and supporting entity needed to 
support recovery operations.



Sec. 417.113  Launch safety rules.

    (a) General. For each launch, a launch operator must satisfy written 
launch safety rules that govern the conduct of the launch.
    (1) The launch safety rules must identify the meteorological 
conditions and the status of the launch vehicle, launch support 
equipment, and personnel under which launch processing and flight may be 
conducted without adversely affecting public safety.
    (2) The launch safety rules must satisfy the requirements of this 
section.
    (3) A launch operator must follow all the launch safety rules.
    (b) Ground safety rules. The launch safety rules must include ground 
safety rules that govern each preflight ground operation at a launch 
site that has the potential to adversely affect public safety. The 
ground safety rules must implement the ground safety analysis of subpart 
E of this part.
    (c) Flight-commit criteria. The launch safety rules must include 
flight-commit criteria that identify each condition that must be met in 
order to initiate flight.
    (1) The flight-commit criteria must implement the flight safety 
analysis of subpart C of this part. These must include criteria for:
    (i) Surveillance of any region of land, sea, or air necessary to 
ensure the number and location of members of the public are consistent 
with the inputs used for the flight safety analysis of subpart C of this 
part;
    (ii) Monitoring of any meteorological condition and implementing any 
flight constraint developed using appendix G of this part. The launch 
operator must have clear and convincing evidence that the lightning 
flight commit criteria of appendix G, which apply to the conditions 
present at the time of lift-off, are not violated. If any other 
hazardous conditions exist, other than those identified by appendix G, 
the launch weather team will report the hazardous condition to the 
official designated under Sec. 417.103(b)(1), who will determine 
whether initiating flight would expose the launch vehicle to a lightning 
hazard and not initiate flight in the presence of the hazard; and
    (iii) Implementation of any launch wait in the launch window for the 
purpose of collision avoidance.
    (2) For a launch that uses a flight safety system, the flight-commit 
criteria must ensure that the flight safety system is ready for flight. 
This must include criteria for ensuring that:
    (i) The flight safety system is operating to ensure the launch 
vehicle will launch within all flight safety limits;
    (ii) Any command transmitter system required by section D417.9 has 
sufficient coverage from lift-off to the point in flight where the 
flight safety system is no longer required by Sec. 417.107(a);
    (iii) The launch vehicle tracking system has no less than two 
tracking sources prior to lift-off. The launch vehicle tracking system 
has no less than one verified tracking source at all times from lift-off 
to orbit insertion for an orbital launch, to the end of powered flight 
for a suborbital launch; and
    (iv) The launch operator will employ its flight safety system as 
designed in accordance with this part.
    (3) For each launch, a launch operator must document the actual 
conditions used for the flight-commit criteria at the time of lift-off 
and verify whether the flight-commit criteria are satisfied.
    (d) Flight termination rules. For a launch that uses a flight safety 
system,

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the launch safety rules must identify the conditions under which the 
flight safety system, including the functions of the flight safety 
system crew, must terminate flight to ensure public safety. These flight 
termination rules must implement the flight safety analysis of subpart C 
of this part and include each of the following:
    (1) The flight safety system must terminate flight when valid, real-
time data indicate the launch vehicle has violated any flight safety 
limit of Sec. 417.213;
    (2) The flight safety system must terminate flight at the straight-
up-time required by Sec. 417.215 if the launch vehicle continues to fly 
a straight up trajectory and, therefore, does not turn downrange when it 
should;
    (3) The flight safety system must terminate flight when all of the 
following conditions exist:
    (i) Real-time data indicate that the performance of the launch 
vehicle is erratic;
    (ii) The potential exists for the loss of flight safety system 
control of the launch vehicle and further flight has the potential to 
endanger the public.
    (4) The flight termination rules must incorporate the data-loss 
flight times and planned safe flight state of Sec. 417.219, including 
each of the following:
    (i) The flight safety system must terminate flight no later than the 
first data-loss flight time if, by that time, tracking of the launch 
vehicle is not established and vehicle position and status is unknown; 
and
    (ii) Once launch vehicle tracking is established and there is a 
subsequent loss of verified tracking data before the planned safe flight 
state and verified tracking data is not received again, the flight 
safety system must terminate flight no later than the expiration of the 
data-loss flight time for the point in flight that the data was lost.
    (5) For any gate established under Sec. 417.217, both of the 
following apply:
    (i) The flight safety system must terminate flight if the launch 
vehicle is performing erratically immediately prior to entering the 
gate.
    (ii) The flight termination rules may permit the instantaneous 
impact point or other tracking icon to cross the gate only if there is 
no indication that the launch vehicle's performance has become erratic 
and the launch vehicle is either flying parallel to the nominal 
trajectory or converging to the nominal trajectory.
    (6) For any hold-and-resume gate established under Sec. 417.218;
    (i) The flight safety system must terminate flight if the launch 
vehicle is performing erratically immediately prior to entering a hold 
gate.
    (ii) The flight termination rules may permit the instantaneous 
impact point or other tracking icon to cross a hold gate only if there 
is no indication that the launch vehicle's performance has become 
erratic and the vehicle is either flying parallel to the nominal 
trajectory or converging to the nominal trajectory.
    (iii) The flight termination rules of paragraphs (d)(1), (d)(3), and 
(d)(4) of this section apply after the instantaneous impact point or 
other tracking icon exits a resume gate.
    (e) Flight safety system safing. For a launch that uses a flight 
safety system, the launch safety rules must ensure that any safing of 
the flight safety system occurs on or after the point in flight where 
the flight safety system is no longer required by Sec. 417.107(b).
    (f) Launch crew work shift and rest rules. For any operation with 
the potential to have an adverse effect on public safety, the launch 
safety rules must ensure the launch crew is physically and mentally 
capable of performing all assigned tasks. These rules must govern the 
length, number, and frequency of work shifts, including the rest 
afforded the launch crew between shifts.



Sec. 417.115  Tests.

    (a) General. All flight, communication, and ground systems and 
equipment that a launch operator uses to protect the public from any 
adverse effects of a launch, must undergo testing as required by this 
part, and any corrective action and re-testing necessary to ensure 
reliable operation. A launch operator must--
    (1) Coordinate test plans and all associated test procedures with 
any launch

[[Page 562]]

site operator or local authorities, as required by local agreements, 
associated with the operation; and
    (2) Make test results, test failure reports, information on any 
corrective actions implemented and the results of re-test available to 
the FAA upon request.
    (b) Flight safety system testing. A launch operator must only use a 
flight safety system and all flight safety system components, including 
any onboard launch vehicle flight termination system, command control 
system, and support system that satisfy the test requirements of subpart 
D of this part.
    (c) Ground system testing. A launch operator must only use a system 
or equipment used to support hazardous ground operations identified by 
the ground safety analysis required by Sec. 417.405 that satisfies the 
test requirements of paragraph (a) of this section.



Sec. 417.117  Reviews.

    (a) General. A launch operator must--
    (1) Review the status of operations, systems, equipment, and 
personnel required by part 417;
    (2) Maintain and implement documented criteria for successful 
completion of each review;
    (3) Track to completion and document any corrective actions or 
issues identified during a review; and
    (4) Ensure that launch operator personnel who oversee a review 
attest to successful completion of the review's criteria in writing.
    (b) A launch operator must conduct the following reviews:
    (1) Hazardous operations safety readiness reviews. A launch operator 
must conduct a review before performing any hazardous operation with the 
potential to adversely affect public safety. The review must determine a 
launch operator's readiness to perform the operation and ensure that 
safety provisions are in place. The review must determine the readiness 
status of safety systems and equipment and verify that the personnel 
involved satisfy certification and training requirements.
    (2) Launch safety review. For each launch, a launch operator must 
conduct a launch safety review no later than 15 days before the planned 
day of flight, or as agreed to by the FAA during the application 
process. This review must determine the readiness of ground and flight 
safety systems, safety equipment, and safety personnel to support a 
flight attempt. Successful completion of a launch safety review must 
ensure satisfaction of the following criteria:
    (i) A launch operator must verify that all safety requirements have 
been or will be satisfied before flight. The launch operator must 
resolve all safety related action items.
    (ii) A launch operator must assign and certify flight safety 
personnel as required by Sec. 417.105.
    (iii) The flight safety rules and flight safety plan must 
incorporate a final flight safety analysis as required by subpart C of 
this part.
    (iv) A launch operator must verify, at the time of the review, that 
the ground safety systems and personnel satisfy or will satisfy all 
requirements of the ground safety plan for support of flight.
    (v) A launch operator must accomplish the safety related 
coordination with any launch site operator or local authorities as 
required by local agreements.
    (vi) A launch operator must verify the filing of all safety related 
information for a specific launch with the FAA, as required by FAA 
regulations and any special terms of a license. A launch operator must 
verify that information filed with the FAA reflects the current status 
of safety-related systems and processes for each specific launch.
    (3) Launch readiness review for flight. A launch operator must 
conduct a launch readiness review for flight as required by this section 
within 48 hours of flight. A person, identified as required by Sec. 
417.103(b)(1), must review all preflight testing and launch processing 
conducted up to the time of the review; and review the status of systems 
and support personnel to determine readiness to proceed with launch 
processing and the launch countdown. A decision to proceed must be in 
writing and signed by the person identified as required by Sec. 
417.103(b)(1), and any launch site operator or Federal launch range. A 
launch operator, during the launch

[[Page 563]]

readiness review, must poll the FAA to verify that the FAA has 
identified no issues related to the launch operator's license. During a 
launch readiness review, the launch operator must account for the 
following information:
    (i) Readiness of launch vehicle and payload.
    (ii) Readiness of any flight safety system and personnel and the 
results of flight safety system testing.
    (iii) Readiness of safety-related launch property and services to be 
provided by a Federal launch range.
    (iv) Readiness of all other safety-related equipment and services.
    (v) Readiness of launch safety rules and launch constraints.
    (vi) Status of launch weather forecasts.
    (vii) Readiness of abort, hold and recycle procedures.
    (viii) Results of rehearsals conducted as required by Sec. 417.119.
    (ix) Unresolved safety issues as of the time of the launch readiness 
review and plans for their resolution.
    (x) Additional safety information that may be required to assess 
readiness for flight.
    (xi) To review launch failure initial response actions and 
investigation roles and responsibilities.



Sec. 417.119  Rehearsals.

    (a) General. A launch operator must rehearse its launch crew and 
systems to identify corrective actions needed to ensure public safety. 
The launch operator must conduct all rehearsals as follows:
    (1) A launch operator must assess any anomalies identified by a 
rehearsal, and must incorporate any changes to launch processing and 
flight needed to correct any anomaly that is material to public safety.
    (2) A launch operator must inform the FAA of any public safety 
related anomalies and related changes in operations performed during 
launch processing or flight resulting from a rehearsal.
    (3) For each launch, each person with a public safety critical role 
who will participate in the launch processing or flight of a launch 
vehicle must participate in at least one related rehearsal that 
exercises his or her role during nominal and non-nominal conditions so 
that the launch vehicle will not harm the public.
    (4) A launch operator must conduct the rehearsals identified in this 
section for each launch.
    (5) At least one rehearsal must simulate normal and abnormal 
preflight and flight conditions to exercise the launch operator's launch 
plans.
    (6) A launch operator may conduct rehearsals at the same time if 
joint rehearsals do not create hazardous conditions, such as changing a 
hardware configuration that affects public safety, during the rehearsal.
    (b) Countdown rehearsal. A launch operator must conduct a rehearsal 
using the countdown plan, procedures, and checklist required by Sec. 
417.111(l). A countdown rehearsal must familiarize launch personnel with 
all countdown activities, demonstrate that the planned sequence of 
events is correct, and demonstrate that there is adequate time allotted 
for each event. A launch operator must hold a countdown rehearsal after 
the assembly of the launch vehicle and any launch support systems into 
their final configuration for flight and before the launch readiness 
review required by Sec. 417.117.
    (c) Emergency response rehearsal. A launch operator must conduct a 
rehearsal of the emergency response section of the accident 
investigation plan required by Sec. 417.111(h)(2). A launch operator 
must conduct an emergency response rehearsal for a first launch of a new 
vehicle, for any additional launch that involves a new safety hazard, or 
for any launch where more than a year has passed since the last 
rehearsal.
    (d) Communications rehearsal. A launch operator must rehearse each 
part of the communications plan required by Sec. 417.111(k), either as 
part of another rehearsal or during a communications rehearsal.



Sec. 417.121  Safety critical preflight operations.

    (a) General. A launch operator must perform safety critical 
preflight operations that protect the public from the adverse effects of 
hazards associated with launch processing and flight of a launch 
vehicle. The launch operator

[[Page 564]]

must identify all safety critical preflight operations in the launch 
schedule required by Sec. 417.17(b)(1). Safety critical preflight 
operations must include those defined in this section.
    (b) Countdown. A launch operator must implement its countdown plan, 
of Sec. 417.111(l), for each launch. A launch operator must disseminate 
a countdown plan to all personnel responsible for the countdown and 
flight of a launch vehicle, and each person must follow that plan.
    (c) Collision avoidance. A launch operator must coordinate with 
United States Strategic Command to obtain a collision avoidance 
analysis, also referred to as a conjunction on launch assessment, as 
required by Sec. 417.231. A launch operator must implement flight 
commit criteria as required by Sec. 417.113(b) to ensure that each 
launch meets all the criteria of Sec. 417.107(e).
    (d) Meteorological data. A launch operator must conduct operations 
and coordinate with weather organizations, as needed, to obtain accurate 
meteorological data to support the flight safety analysis required by 
subpart C of this part and to ensure compliance with the flight commit 
criteria required by Sec. 417.113.
    (e) Local notification. A launch operator must implement its local 
agreements and public coordination plan of Sec. 417.111(i).
    (f) Hazard area surveillance. A launch operator must implement its 
hazard area surveillance and clearance plan, of Sec. 417.111(j), to 
meet the public safety criteria of Sec. 417.107(b) for each launch.
    (g) Flight safety system preflight tests. A launch operator must 
conduct preflight tests of any flight safety system as required by 
section E417.41 of appendix E of this part.
    (h) Launch vehicle tracking data verification. For each launch, a 
launch operator must implement written procedures for verifying the 
accuracy of any launch vehicle tracking data provided. For a launch 
vehicle flown with a flight safety system, any source of tracking data 
must satisfy the requirements of Sec. 417.307(b).
    (i) Unguided suborbital rocket preflight operations. For the launch 
of an unguided suborbital rocket, in addition to meeting the other 
requirements of this section, a launch operator must perform the 
preflight wind weighting and other preflight safety operations required 
by Sec. Sec. 417.125, 417.233, and appendix C of this part.



Sec. 417.123  Computing systems and software.

    (a) A launch operator must document a system safety process that 
identifies the hazards and assesses the risks to public health and 
safety and the safety of property related to computing systems and 
software.
    (b) A launch operator must identify all safety-critical functions 
associated with its computing systems and software. Safety-critical 
computing system and software functions must include the following:
    (1) Software used to control or monitor safety-critical systems.
    (2) Software that transmits safety-critical data, including time-
critical data and data about hazardous conditions.
    (3) Software used for fault detection in safety-critical computer 
hardware or software.
    (4) Software that responds to the detection of a safety-critical 
fault.
    (5) Software used in a flight safety system.
    (6) Processor-interrupt software associated with previously 
designated safety-critical computer system functions.
    (7) Software that computes safety-critical data.
    (8) Software that accesses safety-critical data.
    (9) Software used for wind weighting.
    (c) A launch operator must conduct computing system and software 
hazard analyses for the integrated system.
    (d) A launch operator must develop and implement computing system 
and software validation and verification plans.
    (e) A launch operator must develop and implement software 
development plans, including descriptions of the following:
    (1) Coding standards used;
    (2) Configuration control;
    (3) Programmable logic controllers;
    (4) Policy on use of any commercial-off-the-shelf software; and
    (5) Policy on software reuse.

[[Page 565]]



Sec. 417.125  Launch of an unguided suborbital launch vehicle.

    (a) Applicability. This section applies only to a launch operator 
conducting a launch of an unguided suborbital launch vehicle.
    (b) Need for flight safety system. A launch operator must launch an 
unguided suborbital launch vehicle with a flight safety system in 
accordance with Sec. 417.107 (a) and subpart D of this part unless one 
of the following exceptions applies:
    (1) The unguided suborbital launch vehicle, including any component 
or payload, does not have sufficient energy to reach any populated area 
in any direction from the launch point; or
    (2) A launch operator demonstrates through the licensing process 
that the launch will be conducted using a wind weighting safety system 
that meets the requirements of paragraph (c) of this section.
    (c) Wind weighting safety system. A launch operator's wind weighting 
safety system must consist of equipment, procedures, analysis and 
personnel functions used to determine the launcher elevation and azimuth 
settings that correct for the windcocking and wind drift that an 
unguided suborbital launch vehicle will experience during flight due to 
wind effects. The launch of an unguided suborbital launch vehicle that 
uses a wind weighting safety system must meet the following 
requirements:
    (1) The unguided suborbital launch vehicle must not contain a 
guidance or directional control system.
    (2) The launcher azimuth and elevation settings must be wind 
weighted to correct for the effects of wind conditions at the time of 
flight to provide a safe impact location. A launch operator must conduct 
the launch in accordance with the wind weighting analysis requirements 
and methods of Sec. 417.233 and appendix C of this part.
    (3) A launch operator must use a launcher elevation angle setting 
that ensures the rocket will not fly uprange. A launch operator must set 
the launcher elevation angle in accordance with the following:
    (i) The nominal launcher elevation angle must not exceed 85[deg]. 
The wind corrected launcher elevation setting must not exceed 86[deg].
    (ii) For an unproven unguided suborbital launch vehicle, the nominal 
launcher elevation angle must not exceed 80[deg]. The wind corrected 
launcher elevation setting must not exceed 84[deg]. A proven unguided 
suborbital launch vehicle is one that has demonstrated, by two or more 
launches, that flight performance errors are within all the three-sigma 
dispersion parameters modeled in the wind weighting safety system.
    (d) Public risk criteria. A launch operator must conduct the launch 
of an unguided suborbital launch vehicle in accordance with the public 
risk criteria of Sec. 417.107(b). The risk to the public determined 
prior to the day of flight must satisfy the public risk criteria for the 
area defined by the range of nominal launch azimuths. A launch operator 
must not initiate flight until a launch operator has verified that the 
wind drifted impacts of all planned impacts and their five-sigma 
dispersion areas satisfy the public risk criteria after wind weighting 
on the day of flight.
    (e) Stability. An unguided suborbital launch vehicle, in all 
configurations, must be stable in flexible body to 1.5 calibers and 
rigid body to 2.0 calibers throughout each stage of powered flight. A 
caliber, for a rocket configuration, is defined as the distance between 
the center of pressure and the center of gravity divided by the largest 
frontal diameter of the rocket configuration.
    (f) Tracking. A launch operator must track the flight of an unguided 
suborbital launch vehicle. The tracking system must provide data to 
determine the actual impact locations of all stages and components, to 
verify the effectiveness of a launch operator's wind weighting safety 
system, and to obtain rocket performance data for comparison with the 
preflight performance predictions.
    (g) Post-launch review. A launch operator must ensure that the post-
launch report required by Sec. 417.25 includes:
    (1) Actual impact location of all impacting stages and each 
impacting component.

[[Page 566]]

    (2) A comparison of actual and predicted nominal performance.
    (3) Investigation results of any launch anomaly. If flight 
performance deviates by more than a three-sigma dispersion from the 
nominal trajectory, a launch operator must conduct an investigation to 
determine the cause of the rocket's deviation from normal flight and 
take corrective action before the next launch. A launch operator must 
file any corrective actions with the FAA as a request for license 
modification before the next launch in accordance with Sec. 417.11.



Sec. 417.127  Unique safety policies, requirements and practices.

    For each launch, a launch operator must review operations, system 
designs, analysis, and testing, and identify any unique hazards not 
otherwise addressed by this part. A launch operator must implement any 
unique safety policy, requirement, or practice needed to protect the 
public from the unique hazard. A launch operator must demonstrate 
through the licensing process that any unique safety policy, 
requirement, or practice ensures the safety of the public. For any 
change to a unique safety policy, requirement, or practice, with the 
exception of a launch specific update, the launch operator must file a 
request for license modification as required by Sec. 417.11. The FAA 
may identify and impose a unique safety policy, requirement, or practice 
as needed to protect the public.



Sec. 417.129  Safety at end of launch.

    A launch operator must ensure for any proposed launch that for all 
launch vehicle stages or components that reach Earth orbit--
    (a) There is no unplanned physical contact between the vehicle or 
any of its components and the payload after payload separation;
    (b) Debris generation does not result from the conversion of energy 
sources into energy that fragments the vehicle or its components. Energy 
sources include chemical, pressure, and kinetic energy; and
    (c) Stored energy is removed by depleting residual fuel and leaving 
all fuel line valves open, venting any pressurized system, leaving all 
batteries in a permanent discharge state, and removing any remaining 
source of stored energy.



Sec. Sec. 417.130--417.200  [Reserved]



                    Subpart C_Flight Safety Analysis



Sec. 417.201  Scope and applicability.

    (a) This subpart contains requirements for performing the flight 
safety analysis required by Sec. 417.107(f).
    (b) The flight safety analysis requirements of this subpart apply to 
the flight of any launch vehicle that must use a flight safety system as 
required by Sec. 417.107(a), except as permitted by paragraph (d) of 
this section.
    (c) The flight safety analysis requirements of Sec. Sec. 417.203, 
417.205, 417.207, 417.211, 417.223, 417.224, 417.225, 417.227, 417.229, 
417.231, and 417.233 apply to the flight of any unguided suborbital 
launch vehicle that uses a wind-weighting safety system. Appendices B, 
C, and I of this part also apply.
    (d) For any alternative flight safety system approved by the FAA 
under Sec. 417.301(b), the FAA will determine during the licensing 
process which of the analyses required by this subpart apply.



Sec. 417.203  Compliance.

    (a) General. A launch operator's flight safety analysis must satisfy 
the performance requirements of this subpart. The flight safety analysis 
must also meet the requirements for methods of analysis contained in 
appendices A and B of this part for a launch vehicle flown with a flight 
safety system and appendices B and C of this part for an unguided 
suborbital launch vehicle that uses a wind-weighting safety system 
except as otherwise permitted by this section. A flight safety analysis 
for a launch may rely on an earlier analysis from an identical or 
similar launch if the analysis still applies to the later launch.
    (b) Method of analysis. (1) For each launch, a launch operator's 
flight safety analysis must use--
    (i) A method approved by the FAA during the licensing process;
    (ii) A method approved as a license modification by the FAA; or,

[[Page 567]]

    (iii) If the launch takes place from a Federal launch range, a 
method approved as part of the FAA's launch site safety assessment of 
the Federal range's processes.
    (2) Appendix A of this part contains requirements that apply to all 
methods of flight safety analysis. A licensee must notify the FAA for 
any change to the flight safety analysis method. A licensee must file 
any material change with the FAA as a request for license modification 
before the launch to which the proposed change would apply. Section 
417.11 contains requirements governing a license modification.
    (c) Alternate analysis method. The FAA will approve an alternate 
flight safety analysis method if a launch operator demonstrates, in 
accordance with Sec. 406.3(b), that its proposed analysis method 
provides an equivalent level of fidelity to that required by this 
subpart. A launch operator must demonstrate that an alternate flight 
safety analysis method is based on accurate data and scientific 
principles and is statistically valid. The FAA will not find a launch 
operator's application for a license or license modification 
sufficiently complete to begin review under Sec. 413.11 of this chapter 
until the FAA approves the alternate flight safety analysis method.
    (d) Analyses performed by a Federal launch range. This provision 
applies to all sections of this subpart. The FAA will accept a flight 
safety analysis used by a Federal launch range without need for further 
demonstration of compliance to the FAA, if:
    (1) A launch operator has contracted with a Federal launch range for 
the provision of flight safety analysis; and
    (2) The FAA has assessed the Federal launch range, through its 
launch site safety assessment, and found that the range's analysis 
methods satisfy the requirements of this subpart. In this case, the FAA 
will treat the Federal launch range's analysis as that of a launch 
operator.
    (e) Analysis products. For a licensed launch that does not satisfy 
paragraph (d) of this section, a launch operator must demonstrate to the 
FAA compliance with the requirements of this subpart, and must include 
in its demonstration the analysis products required by part 415 subpart 
F of this chapter, part 417 subpart A, and appendices A, B, C, and I of 
this part, depending on whether the launch vehicle uses a flight safety 
system or a wind-weighting safety system.



Sec. 417.205  General.

    (a) Public risk management. A flight safety analysis must 
demonstrate that a launch operator will, for each launch, control the 
risk to the public from hazards associated with normal and 
malfunctioning launch vehicle flight. The analysis must employ risk 
assessment, hazard isolation, or a combination of risk assessment and 
partial isolation of the hazards, to demonstrate control of the risk to 
the public.
    (1) Risk assessment. When demonstrating control of risk through risk 
assessment, the analysis must demonstrate that any risk to the public 
satisfies the public risk criteria of Sec. 417.107(b). The analysis 
must account for the variability associated with:
    (i) Each source of a hazard during flight;
    (ii) Normal flight and each failure response mode of the launch 
vehicle;
    (iii) Each external and launch vehicle flight environment;
    (iv) Populations potentially exposed to the flight; and
    (v) The performance of any flight safety system, including time 
delays associated with the system.
    (2) Hazard isolation. When demonstrating control of risk through 
hazard isolation, the analysis must establish the geographical areas 
from which the public must be excluded during flight and any operational 
controls needed to isolate all hazards from the public.
    (3) Combination of risk assessment and partial isolation of hazards. 
When demonstrating control of risk through a combination of risk 
assessment and partial isolation of the hazards from the public, the 
analysis must demonstrate that the residual public risk due to any 
hazard not isolated from the public under paragraph (a)(2) of this 
section satisfies the public risk criteria of Sec. 417.107(b).
    (b) Dependent analyses. Because some analyses required by this 
subpart are

[[Page 568]]

inherently dependent on one another, the data output of any one analysis 
must be compatible in form and content with the data input requirements 
of any other analysis that depends on that output. Figure 417.205-1 
illustrates the flight safety analyses that might be performed for a 
launch flown with a flight safety system and the typical dependencies 
that might exist among the analyses.

[[Page 569]]

[GRAPHIC] [TIFF OMITTED] TR25AU06.004


[[Page 570]]





Sec. 417.207  Trajectory analysis.

    (a) General. A flight safety analysis must include a trajectory 
analysis that establishes:
    (1) For any time after lift-off, the limits of a launch vehicle's 
normal flight, as defined by the nominal trajectory and potential three-
sigma trajectory dispersions about the nominal trajectory.
    (2) A fuel exhaustion trajectory that produces instantaneous impact 
points with the greatest range for any given time after liftoff for any 
stage that has the potential to impact the Earth and does not burn to 
propellant depletion before a programmed thrust termination.
    (3) For launch vehicles flown with a flight safety system, a 
straight-up trajectory for any time after lift-off until the straight-up 
time that would result if the launch vehicle malfunctioned and flew in a 
vertical or near vertical direction above the launch point.
    (b) Trajectory model. A final trajectory analysis must use a six-
degree of freedom trajectory model to satisfy the requirements of 
paragraph (a) of this section.
    (c) Wind effects. A trajectory analysis must account for all wind 
effects, including profiles of winds that are no less severe than the 
worst wind conditions under which flight might be attempted, and must 
account for uncertainty in the wind conditions.



Sec. 417.209  Malfunction turn analysis.

    (a) General. A flight safety analysis must include a malfunction 
turn analysis that establishes the launch vehicle's turning capability 
in the event of a malfunction during flight. A malfunction turn analysis 
must account for each cause of a malfunction turn, such as thrust vector 
offsets or nozzle burn-through. For each cause of a malfunction turn, 
the analysis must establish the launch vehicle's turning capability 
using a set of turn curves. The analysis must account for:
    (1) All trajectory times during the thrusting phases of flight.
    (2) When a malfunction begins to cause each turn throughout the 
thrusting phases of flight. The analysis must account for trajectory 
time intervals between malfunction turn start times that are sufficient 
to establish flight safety limits and hazard areas that are smooth and 
continuous.
    (3) The relative probability of occurrence of each malfunction turn 
of which the launch vehicle is capable.
    (4) The time, as a single value or a probability time distribution, 
when each malfunction turn will terminate due to vehicle breakup.
    (5) What terminates each malfunction turn, such as, aerodynamic 
breakup or inertial breakup.
    (6) The launch vehicle's turning behavior from the time when a 
malfunction begins to cause a turn until aerodynamic breakup, inertial 
breakup, or ground impact. The analysis must account for trajectory time 
intervals during the malfunction turn that are sufficient to establish 
turn curves that are smooth and continuous.
    (7) For each malfunction turn, the launch vehicle velocity vector 
turn angle from the nominal launch vehicle velocity vector.
    (8) For each malfunction turn, the launch vehicle velocity turn 
magnitude from the nominal velocity magnitude that corresponds to the 
velocity vector turn angle.
    (9) For each malfunction turn, the orientation of the launch vehicle 
longitudinal axis measured relative to the nominal launch vehicle 
longitudinal axis or Earth relative velocity vector at the start of the 
turn.
    (b) Set of turn curves for each malfunction turn cause. For each 
cause of a malfunction turn, the analysis must establish a set of turn 
curves that satisfies paragraph (a) of this section and must establish 
the associated envelope of the set of turn curves. Each set of turn 
curves must describe the variation in the malfunction turn 
characteristics for each cause of a turn. The envelope of each set of 
curves must define the limits of the launch vehicle's malfunction turn 
behavior for each cause of a malfunction turn. For each malfunction turn 
envelope, the analysis must establish the launch vehicle velocity vector 
turn angle from the nominal launch vehicle velocity vector. For each 
malfunction turn envelope, the analysis must establish the vehicle 
velocity turn magnitude from the nominal velocity magnitude that

[[Page 571]]

corresponds to the velocity vector turn angle envelope.



Sec. 417.211  Debris analysis.

    (a) General. A flight safety analysis must include a debris 
analysis. For an orbital or suborbital launch, a debris analysis must 
identify the inert, explosive, and other hazardous launch vehicle debris 
that results from normal and malfunctioning launch vehicle flight.
    (b) Launch vehicle breakup. A debris analysis must account for each 
cause of launch vehicle breakup, including at a minimum:
    (1) Any flight termination system activation;
    (2) Launch vehicle explosion;
    (3) Aerodynamic loads;
    (4) Inertial loads;
    (5) Atmospheric reentry heating; and
    (6) Impact of intact vehicle.
    (c) Debris fragment lists. A debris analysis must produce lists of 
debris fragments for each cause of breakup and any planned jettison of 
debris, launch vehicle components, or payload. The lists must account 
for all launch vehicle debris fragments, individually or in groupings of 
fragments whose characteristics are similar enough to be described by a 
single set of characteristics. The debris lists must describe the 
physical, aerodynamic, and harmful characteristics of each debris 
fragment, including at a minimum:
    (1) Origin on the vehicle, by vehicle stage or component, from which 
each fragment originated;
    (2) Whether it is inert or explosive;
    (3) Weight, dimensions, and shape;
    (4) Lift and drag characteristics;
    (5) Properties of the incremental velocity distribution imparted by 
breakup; and
    (6) Axial, transverse, and tumbling area.



Sec. 417.213  Flight safety limits analysis.

    (a) General. A flight safety analysis must identify the location of 
populated or other protected areas, and establish flight safety limits 
that define when a flight safety system must terminate a launch 
vehicle's flight to prevent the hazardous effects of the resulting 
debris impacts from reaching any populated or other protected area and 
ensure that the launch satisfies the public risk criteria of Sec. 
417.107(b).
    (b) Flight safety limits. The analysis must establish flight safety 
limits for use in establishing flight termination rules. Section 
417.113(c) contains requirements for flight termination rules. The 
flight safety limits must account for all temporal and geometric extents 
on the Earth's surface of a launch vehicle's hazardous debris impact 
dispersion resulting from any planned or unplanned event for all times 
during flight. Flight safety limits must account for all potential 
contributions to the debris impact dispersions, including at a minimum:
    (1) All time delays, as established by the time delay analysis of 
Sec. 417.221;
    (2) Residual thrust remaining after flight termination 
implementation or vehicle breakup due to aerodynamic and inertial loads;
    (3) All wind effects;
    (4) Velocity imparted to vehicle fragments by breakup;
    (5) All lift and drag forces on the malfunctioning vehicle and 
falling debris;
    (6) All launch vehicle guidance and performance errors;
    (7) All launch vehicle malfunction turn capabilities; and
    (8) Any uncertainty due to map errors and launch vehicle tracking 
errors.
    (c) Gates. If a launch involves flight over any populated or other 
protected area, the flight safety analysis must establish a gate as 
required by Sec. Sec. 417.217 and 417.218.
    (d) Designated debris impact limits. The analysis must establish 
designated impact limit lines to bound the area where debris with a 
ballistic coefficient of three or more is allowed to impact if the 
flight safety system functions properly.



Sec. 417.215  Straight-up time analysis.

    A flight safety analysis must establish the straight-up time for a 
launch for use as a flight termination rule. Section 417.113(c) contains 
requirements for flight termination rules. The analysis must establish 
the straight-up time as the latest time after liftoff, assuming a launch 
vehicle malfunctioned and flew in a vertical or near vertical

[[Page 572]]

direction above the launch point, at which activation of the launch 
vehicle's flight termination system or breakup of the launch vehicle 
would not cause hazardous debris or critical overpressure to affect any 
populated or other protected area.



Sec. 417.217  Overflight gate analysis.

    For a launch that involves flight over a populated or other 
protected area, the flight safety analysis must include an overflight 
gate analysis. The analysis must establish the portion of a flight 
safety limit, a gate, through which a normally performing launch 
vehicle's tracking icon will be allowed to proceed. A tracking icon must 
enable the flight safety crew to determine whether the launch vehicle's 
flight is in compliance with the flight safety rules established under 
Sec. 417.113. When establishing that portion of a flight safety limit, 
the analysis must demonstrate that the launch vehicle flight satisfies 
the flight safety requirements of Sec. 417.107.



Sec. 417.218  Hold-and-resume gate analysis.

    (a) For a launch that involves overflight or near overflight of a 
populated or otherwise protected area prior to the planned safe flight 
state calculated as required by Sec. 417.219, the flight safety 
analysis must construct a hold-and-resume gate for each populated or 
otherwise protected area. After a vehicle's tracking icon crosses a 
hold-and-resume gate, flight termination must occur as required by 
sections 417.113(d)(6).
    (b) The hold-and-resume gate analysis must account for:
    (1) Overflight of a wholly contained populated or otherwise 
protected area. A hold-and-resume gate must be a closed, continuous 
contour that encompasses any populated or otherwise protected area 
located wholly within the impact limit lines. The hold-and-resume gate 
must encompass a populated or otherwise protected area such that flight 
termination or breakup of the launch vehicle while the tracking icon is 
outside the gate would not cause hazardous debris or overpressure to 
endanger the populated or otherwise protected area.
    (2) Overflight of an uncontained populated or otherwise protected 
area. A hold-and-resume gate must be a closed, continuous contour that 
encompasses any area in which flight termination is allowed to occur. 
The hold-and-resume gate must encompass all hazard areas such that 
flight termination or breakup of the launch vehicle while the vehicle's 
tracking icon is inside the gate would not cause hazardous debris or 
critical overpressure to endanger any populated or otherwise protected 
area.



Sec. 417.219  Data loss flight time and planned safe flight state analyses.

    (a) General. For each launch, a flight safety analysis must 
establish data loss flight times, as identified by paragraph (b) of this 
section, and a planned safe flight state to establish each flight 
termination rule that applies when launch vehicle tracking data is not 
available for use by the flight safety crew. Section 417.113(d) contains 
requirements for flight termination rules.
    (b) Data loss flight times. A flight safety analysis must establish 
the shortest elapsed thrusting time during which a launch vehicle can 
move from normal flight to a condition where the launch vehicle's 
hazardous debris impact dispersion extends to any protected area as a 
data loss flight time. The analysis must establish a data loss flight 
time for all times along the nominal trajectory from liftoff through 
that point during nominal flight when the minimum elapsed thrusting time 
is no greater than the time it would take for a normal vehicle to reach 
the overflight gate, or the planned safe flight state established under 
paragraph (c) of this section, whichever occurs earlier.
    (c) Planned safe flight state. For a launch vehicle that performs 
normally during all portions of flight, the planned safe flight state is 
the point during the nominal flight of a launch vehicle where:
    (1) No launch vehicle component, debris, or hazard can impact or 
affect a populated or otherwise protected area for the remainder of the 
launch;
    (2) The launch vehicle achieves orbital insertion; or
    (3) The launch vehicle's state vector reaches a state where the 
absence of a

[[Page 573]]

flight safety system would not significantly increase the accumulated 
risk from debris impacts and maintains positive flight safety system 
control to the maximum extent feasible.



Sec. 417.221  Time delay analysis.

    (a) General. A flight safety analysis must include a time delay 
analysis that establishes the mean elapsed time between the violation of 
a flight termination rule and the time when the flight safety system is 
capable of terminating flight for use in establishing flight safety 
limits as required by Sec. 417.213.
    (b) Analysis constraints. A time delay analyses must determine a 
time delay distribution that accounts for the following:
    (1) The variance of all time delays for each potential failure 
scenario, including but not limited to, the range of malfunction turn 
characteristics and the time of flight when the malfunction occurs;
    (2) A flight safety official's decision and reaction time, including 
variation in human response time; and
    (3) Flight termination hardware and software delays including all 
delays inherent in:
    (i) Tracking systems;
    (ii) Data processing systems, including all filter delays;
    (iii) Display systems;
    (iv) Command control systems; and
    (v) Flight termination systems.



Sec. 417.223  Flight hazard area analysis.

    (a) General. A flight safety analysis must include a flight hazard 
area analysis that identifies any regions of land, sea, or air that must 
be surveyed, publicized, controlled, or evacuated in order to control 
the risk to the public from debris impact hazards. The risk management 
requirements of Sec. 417.205(a) apply. The analysis must account for, 
at a minimum:
    (1) All trajectory times from liftoff to the planned safe flight 
state of Sec. 417.219(c), including each planned impact, for an orbital 
launch, and through final impact for a suborbital launch;
    (2) Regions of land potentially exposed to debris resulting from 
normal flight events and events resulting from any potential 
malfunction;
    (3) Regions of sea and air potentially exposed to debris from normal 
flight events, including planned impacts;
    (4) In the vicinity of the launch site, any waterborne vessels, 
populated offshore structures, or aircraft exposed to debris from events 
resulting from any potential abnormal flight events, including launch 
vehicle malfunction;
    (5) Any operational controls implemented to control risk to the 
public from debris hazards;
    (6) Debris identified by the debris analysis of Sec. 417.211; and
    (7) All launch vehicle trajectory dispersion effects in the surface 
impact domain.
    (b) Public notices. A flight hazard areas analysis must establish 
the ship hazard areas for notices to mariners that encompass the three-
sigma impact dispersion area for each planned debris impact. A flight 
hazard areas analysis must establish the aircraft hazard areas for 
notices to airmen that encompass the 3-sigma impact dispersion volume 
for each planned debris impact. Section 417.121(e) contains procedural 
requirements for issuing notices to mariners and airmen.



Sec. 417.224  Probability of failure analysis.

    (a) General. All flight safety analyses for a launch, regardless of 
hazard or phase of flight, must account for launch vehicle failure 
probability in a consistent manner. A launch vehicle failure probability 
estimate must use accurate data, scientific principles, and a method 
that is statistically or probabilistically valid. For a launch vehicle 
with fewer than two flights, the failure probability estimate must 
account for the outcome of all previous launches of vehicles developed 
and launched in similar circumstances. For a launch vehicle with two or 
more flights, launch vehicle failure probability estimates must account 
for the outcomes of all previous flights of the vehicle in a 
statistically valid manner.
    (b) Failure. For flight safety analysis purposes, a failure occurs 
when a launch vehicle does not complete any phase of normal flight or 
when any

[[Page 574]]

anomalous condition exhibits the potential for a stage or its debris to 
impact the Earth or reenter the atmosphere during the mission or any 
future mission of similar launch vehicle capability. Also, either a 
launch incident or launch accident constitutes a failure.
    (c) Previous flight. For flight analysis purposes, flight begins at 
a time in which a launch vehicle normally or inadvertently lifts off 
from a launch platform. Lift-off occurs with any motion of the launch 
vehicle with respect to the launch platform.



Sec. 417.225  Debris risk analysis.

    A flight safety analysis must demonstrate that the risk to the 
public potentially exposed to inert and explosive debris hazards from 
any one flight of a launch vehicle satisfies the public risk criterion 
of Sec. 417.107(b) for debris. A debris risk analysis must account for 
risk to populations on land, including regions of launch vehicle flight 
following passage through any gate in a flight safety limit established 
as required by Sec. 417.217. A debris risk analysis must account for 
any potential casualties to the public as required by the debris 
thresholds and requirements of Sec. 417.107(c).



Sec. 417.227  Toxic release hazard analysis.

    A flight safety analysis must establish flight commit criteria that 
protect the public from any hazard associated with toxic release and 
demonstrate compliance with the public risk criterion of Sec. 
417.107(b). The analysis must account for any toxic release that will 
occur during the proposed flight of a launch vehicle or that would occur 
in the event of a flight mishap. The analysis must account for any 
operational constraints and emergency procedures that provide protection 
from toxic release. The analysis must account for all members of the 
public that may be exposed to the toxic release, including all members 
of the public on land and on any waterborne vessels, populated offshore 
structures, and aircraft that are not operated in direct support of the 
launch.



Sec. 417.229  Far-field overpressure blast effects analysis.

    (a) General. A flight safety analysis must establish flight commit 
criteria that protect the public from any hazard associated with far 
field blast overpressure effects due to potential explosions during 
launch vehicle flight and demonstrate compliance with the public risk 
criterion of Sec. 417.107(b).
    (b) Analysis constraints. The analysis must account for:
    (1) The potential for distant focus overpressure or overpressure 
enhancement given current meteorological conditions and terrain 
characteristics;
    (2) The potential for broken windows due to peak incident 
overpressures below 1.0 psi and related casualties;
    (3) The explosive capability of the launch vehicle at impact and at 
altitude and potential explosions resulting from debris impacts, 
including the potential for mixing of liquid propellants;
    (4) Characteristics of the launch vehicle flight and the 
surroundings that would affect the population's susceptibility to 
injury, such as, shelter types and time of day of the proposed launch;
    (5) Characteristics of the potentially affected windows, including 
their size, location, orientation, glazing material, and condition; and
    (6) The hazard characteristics of the potential glass shards, such 
as falling from upper building stories or being propelled into or out of 
a shelter toward potentially occupied spaces.



Sec. 417.231  Collision avoidance analysis.

    (a) General. A flight safety analysis must include a collision 
avoidance analysis that establishes each launch wait in a planned launch 
window during which a launch operator must not initiate flight, in order 
to protect any maned or mannable orbiting object. A launch operator must 
account for uncertainties associated with launch vehicle performance and 
timing and ensure that any calculated launch waits incorporate all 
additional time periods associated with such uncertainties. A launch 
operator must implement any launch waits as flight commit criteria 
according to Sec. 417.113(b).
    (b) Orbital launch. For an orbital launch, the analysis must 
establish any launch waits needed to ensure that

[[Page 575]]

the launch vehicle, any jettisoned components, and its payload do not 
pass closer than 200 kilometers to a manned or mannable orbiting object 
during ascent to initial orbital insertion through at least one complete 
orbit.
    (c) Suborbital launch. For a suborbital launch, the analysis must 
establish any launch waits needed to ensure that the launch vehicle, any 
jettisoned components, and any payload do not pass closer than 200 
kilometers to a manned or mannable orbital object throughout the flight.
    (d) Analysis not required. A collision avoidance analysis is not 
required if the maximum altitude attainable by a launch operator's 
unguided suborbital launch vehicle is less than the altitude of the 
lowest manned or mannable orbiting object. The maximum altitude 
attainable must be obtained using an optimized trajectory, assuming 3-
sigma maximum performance.



Sec. 417.233  Analysis for an unguided suborbital launch vehicle flown with a wind weighting safety system.

    For each launch of an unguided suborbital launch vehicle flown with 
a wind weighting safety system, in addition to the other requirements in 
this subpart outlined in Sec. 417.201(c), the flight safety analysis 
must:
    (a) Establish flight commit criteria and other launch safety rules 
that a launch operator must implement to control the risk to the public 
from potential adverse effects resulting from normal and malfunctioning 
flight;
    (b) Establish any wind constraints under which launch may occur; and
    (c) Include a wind weighting analysis that establishes the launcher 
azimuth and elevation settings that correct for the windcocking and 
wind-drift effects on the unguided suborbital launch vehicle.



                     Subpart D_Flight Safety System



Sec. 417.301  General.

    (a) Applicability. This subpart applies to any flight safety system 
that a launch operator uses. The requirements of Sec. 417.107(a) define 
when a launch operator must use a flight safety system. A launch 
operator must ensure that its flight safety system satisfies all the 
requirements of this subpart, including the referenced appendices. 
Paragraph (b) of this section provides an exception to this.
    (b) Alternate flight safety system. A flight safety system need not 
satisfy one or more of the requirements of this subpart for a launch if 
a launch operator demonstrates, in accordance with Sec. 406.3(b), that 
the launch achieves an equivalent level of safety as a launch that 
satisfies all the requirements of this part. The flight safety system 
must undergo analysis and testing that is comparable to that required by 
this part to demonstrate that the system's reliability to perform each 
intended function is comparable to that required by this subpart.
    (c) Functions, subsystems, and components. When initiated in the 
event of a launch vehicle failure, a flight safety system must prevent 
any launch vehicle hazard, including any payload hazard, from reaching a 
populated or other protected area. A flight safety system must consist 
of all of the following:
    (1) A flight termination system that satisfies appendices D, E, and 
F of this part;
    (2) A command control system that satisfies Sec. Sec. 417.303 and 
417.305;
    (3) Each support system required by Sec. 417.307; and
    (4) The functions of any personnel who operate flight safety system 
hardware or software including a flight safety crew that satisfies Sec. 
417.311.
    (d) Compliance--(1)Non-Federal launch site. For launch from a non-
Federal launch site, any flight safety system, including all components, 
must:
    (1) Non-Federal launch site. For launch from a non-Federal launch 
site, any flight safety system, including all components, must:
    (i) Comply with a launch operator's flight safety system compliance 
matrix of Sec. 415.127(g) that accounts for all the design, 
installation, and monitoring requirements of this subpart, including the 
referenced appendices; and
    (ii) Comply with a launch operator's testing compliance matrix of 
Sec. 415.129(b) that accounts for all the test requirements of this 
subpart, including the referenced appendices.

[[Page 576]]

    (2) Federal launch range. This provision applies to all sections of 
this subpart. The FAA will accept a flight safety system used or 
approved on a Federal launch range without need for further 
demonstration of compliance to the FAA if:
    (i) A launch operator has contracted with a Federal launch range for 
the provision of flight safety system property and services; and
    (ii) The FAA has assessed the Federal launch range, through its 
launch site safety assessment, and found that the Federal launch range's 
flight safety system property and services satisfy the requirements of 
this subpart. In this case, the FAA will treat the Federal launch 
range's flight safety system property and services as that of a launch 
operator.



Sec. 417.303  Command control system requirements.

    (a) General. When initiated by a flight safety official, a command 
control system must transmit a command signal that has the radio 
frequency characteristics and power needed for receipt of the signal by 
the onboard vehicle flight termination system. A command control system 
must include all of the following:
    (1) All flight termination system activation switches;
    (2) All intermediate equipment, linkages, and software;
    (3) Any auxiliary stations;
    (4) Each command transmitter and transmitting antenna; and
    (5) All support equipment that is critical for reliable operation, 
such as power, communications, and air conditioning systems.
    (b) Performance specifications. A command control system and each 
subsystem, component, and part that can affect the reliability of a 
component must have written performance specifications that demonstrate, 
and contain the details of, how each satisfies the requirements of this 
section.
    (c) Reliability prediction. A command control system must have a 
predicted reliability of 0.999 at the 95 percent confidence level when 
operating, starting with completion of the preflight testing and system 
verification of Sec. 417.305(c) through initiation of flight and until 
the planned safe flight state for each launch. Any demonstration of the 
system's predicted reliability must satisfy Sec. 417.309(b).
    (d) Fault tolerance. A command control system must not contain any 
single-failure-point that, upon failure, would inhibit the required 
functioning of the system or cause the transmission of an undesired 
flight termination message. A command control system's design must 
ensure that the probability of transmitting an undesired or inadvertent 
command during flight is less than 1 x 10-7.
    (e) Configuration control. A command control system must undergo 
configuration control to ensure its reliability and compatibility with 
the flight termination system used for each launch.
    (f) Electromagnetic interference. Each command control system 
component must function within the electromagnetic environment to which 
it is exposed. A command control system must include protection to 
prevent interference from inhibiting the required functioning of the 
system or causing the transmission of an undesired or inadvertent flight 
termination command. Any susceptible remote control data processing or 
transmitting system that is part of the command control system must 
prevent electromagnetic interference.
    (g) Command transmitter failover. A command control system must 
include independent, redundant transmitter systems that automatically 
switch, or ``fail-over,'' from a primary transmitter to a secondary 
transmitter when a condition exists that indicates potential failure of 
the primary transmitter. The switch must be automatic and provide all 
the same command control system capabilities through the secondary 
transmitter system. The secondary transmitter system must respond to any 
transmitter system configuration and radio message orders established 
for the launch. The fail-over criteria that trigger automatic switching 
from the primary transmitter to the secondary transmitter must account 
for each of the following transmitter performance parameters and failure 
indicators:
    (1) Low transmitter power;
    (2) Center frequency shift;

[[Page 577]]

    (3) Out of tolerance tone frequency;
    (4) Out of tolerance message timing;
    (5) Loss of communication between central control and transmitter 
site;
    (6) Central control commanded status and site status disagree;
    (7) Transmitter site fails to respond to a configuration or 
radiation order within a specified period of time; and
    (8) For a tone-based system, tone deviation and tone imbalance.
    (h) Switching between transmitter systems. Any manual or automatic 
switching between transmitter systems, including fail-over, must not 
result in the radio carrier being off the air long enough for any 
command destruct system to be captured by an unauthorized transmitter. 
The time the radio carrier is off the air must account for any loss of 
carrier and any simultaneous multiple radio carrier transmissions from 
two transmitter sites during switching.
    (i) Radio carrier. For each launch, a command control system must 
provide all of the following:
    (1) The radio frequency signal and radiated power density that each 
command destruct system needs to activate during flight;
    (2) The 12-dB power density margin required by section D417.9(d) of 
appendix D of this part under nominal conditions; and
    (3) A 6-dB power density margin under worst-case conditions.
    (j) Command control system monitoring and control. A command control 
system must provide for monitoring and control of the system from the 
flight safety system displays and controls required by Sec. 417.307(g), 
including real-time selection of a transmitter, transmitter site, 
communication circuits, and antenna configuration.
    (k) Command transmitter system. For each launch, a command 
transmitter system must:
    (1) Transmit signals that are compatible with any command destruct 
system's radio frequency receiving system of section D417.25 and command 
receiver decoder of section D417.29 of appendix D of this part;
    (2) Ensure that all arm and destruct commands transmitted to a 
flight termination system have priority over any other commands 
transmitted;
    (3) Employ an authorized radio carrier frequency and bandwidth with 
a guard band that provides the radio frequency separation needed to 
ensure that the system does not interfere with any other flight safety 
system that is required to operate at the same time;
    (4) Transmit an output bandwidth that is consistent with the signal 
spectrum power used in the link analysis of Sec. 417.309(f); and
    (5) Not transmit other frequencies that could degrade the airborne 
flight termination system's performance.
    (l) Command control system antennas. A command control system 
antenna or antenna system must satisfy all of the following:
    (1) The antenna system must provide two or more command signals to 
any command destruct system throughout normal flight and in the event of 
a launch vehicle failure regardless of launch vehicle orientation;
    (2) Each antenna beam-width must:
    (i) Allow for complete transmission of the command destruct sequence 
of signal tones before a malfunctioning launch vehicle can exit the 3-dB 
point of the antenna pattern;
    (ii) When the vehicle is centered in the antenna pattern at the 
beginning of the malfunction, account for the launch vehicle's 
malfunction turn capability determined by the analysis of Sec. 417.209, 
the data loss flight times of Sec. 417.219, and the time delay of Sec. 
417.221.
    (iii) Encompass the boundaries of normal flight for the portion of 
flight that the antenna is scheduled to support; and
    (iv) Account for any error associated with launch vehicle tracking 
and pointing of the antenna;
    (3) The location of each antenna must provide for an unobstructed 
line of site between the antenna and the launch vehicle;
    (4) The antenna system must provide a continuous omni-directional 
radio carrier pattern that covers the launch vehicle's flight from the 
launch point to no less than an altitude of 50,000 feet above sea level, 
unless the system uses a steerable antenna that satisfies paragraphs 
(l)(1) and (2) of this section for the worst-case launch vehicle 
malfunction that could occur during that portion of flight;

[[Page 578]]

    (5) An antenna must radiate circularly polarized radio waves that 
are compatible with the flight termination system antennas on the launch 
vehicle; and
    (6) Any steerable antenna must allow for control of the antenna 
manually at the antenna site or by remote slaving data from a launch 
vehicle tracking source. A steerable antenna's positioning lag, 
accuracy, and slew rates must allow for tracking a nominally performing 
launch vehicle within one half of the antenna's beam-width and for 
tracking a malfunctioning launch vehicle to satisfy paragraph (l)(2) of 
this section.



Sec. 417.305  Command control system testing.

    (a) General. (1) A command control system, including its subsystems 
and components must undergo the acceptance testing of paragraph (b) of 
this section when new or modified. For each launch, a command control 
system must undergo the preflight testing of paragraph (c) of this 
section.
    (2) Each acceptance and preflight test must follow a written test 
plan that specifies the procedures and test parameters for the test and 
the testing sequence. A test plan must include instructions on how to 
handle procedural deviations and how to react to test failures.
    (3) If hardware or software is redesigned or replaced with a 
different hardware or software that is not identical to the original, 
the system must undergo all acceptance testing and analysis with the new 
hardware or software and all preflight testing for each launch with the 
new hardware or software.
    (4) After a command control system passes all acceptance tests, if a 
component is replaced with an identical component, the system must 
undergo testing to ensure that the new component is installed properly 
and is operational.
    (b) Acceptance testing. (1) All new or modified command control 
system hardware and software must undergo acceptance testing to verify 
that the system satisfies the requirements of Sec. 417.303.
    (2) Acceptance testing must include functional testing, system 
interface validation testing, and integrated system-wide validation 
testing.
    (3) Each acceptance test must measure the performance parameters 
that demonstrate whether the requirements of Sec. 417.303 are 
satisfied.
    (4) Any computing system, software, or firmware that performs a 
software safety critical function must undergo validation testing and 
satisfy Sec. 417.123. If command control system hardware interfaces 
with software, the interface must undergo validation testing.
    (c) Preflight testing--(1) General. For each launch, a command 
control system must undergo preflight testing to verify that the system 
satisfies the requirements of Sec. 417.303 for the launch.
    (1) General. For each launch, a command control system must undergo 
preflight testing to verify that the system satisfies the requirements 
of Sec. 417.303 for the launch.
    (2) Coordinated command control system and flight termination system 
testing. For each launch, a command control system must undergo 
preflight testing during the preflight testing of the associated flight 
termination system under section E417.41 of appendix E of this part.
    (3) Command transmitter system carrier switching tests. A command 
transmitter system must undergo a test of its carrier switching system 
no earlier than 24 hours before a scheduled flight. The test must 
satisfy all of the following:
    (i) Automatic carrier switching. For any automatic carrier switching 
system, the test must verify that the switching algorithm selects and 
enables the proper transmitter site for each portion of the planned 
flight; and
    (ii) Manual carrier switching. For any manual carrier switching, the 
test must verify that the flight safety system crew can select and 
enable each transmitter site planned to support the launch.
    (4) Independent radio frequency open loop verification tests. A 
command control system must undergo an open loop end-to-end verification 
test for each launch as close to the planned flight as operationally 
feasible and after any modification to the system or break in the system 
configuration. The test must:

[[Page 579]]

    (i) Verify the performance of each element of the system from the 
flight safety system displays and controls to each command transmitter 
site;
    (ii) Measure all system performance parameters received and 
transmitted using measuring equipment that does not physically interface 
with any elements of the operational command control system;
    (iii) Verify the performance of each flight safety system display 
and control and remote command transmitter site combination by repeating 
all measurements for each combination, for all strings and all 
operational configurations of cross-strapped equipment; and
    (iv) Verify that all critical command control system performance 
parameters satisfy all their performance specifications. These 
parameters must include:
    (A) Transmitter power output;
    (B) Center frequency stability;
    (C) Tone deviation;
    (D) Tone frequency;
    (E) Message timing;
    (F) Status of each communication circuit between the flight safety 
system display and controls and any supporting command transmitter 
sites;
    (G) Status agreement between the flight safety system display and 
controls and each and any supporting command transmitter sites;
    (H) Fail-over conditions;
    (I) Tone balance; and
    (J) Time delay from initiation of a command at each flight safety 
system control to transmitter output of the command signal.
    (d) Test reports. If a Federal launch range oversees the safety of a 
launch, the range's requirements are consistent with this subpart, and 
the range provides and tests the command control system, a launch 
operator need only obtain the range's verification that the system 
satisfies all the test requirements. For any other case a launch 
operator must prepare or obtain one or more written reports that:
    (1) Verify that the command control system satisfies all the test 
requirements;
    (2) Describe all command control system test results and test 
conditions;
    (3) Describe any analysis performed instead of testing;
    (4) Identify by serial number or other identification each test 
result that applies to each system or component;
    (5) Describe any test failure or anomaly, including any variation 
from an established performance baseline, each corrective action taken, 
and all results of any additional tests; and
    (6) Identify any test failure trends.



Sec. 417.307  Support systems.

    (a) General. (1) A flight safety system must include the systems 
required by this section to support the functions of the flight safety 
system crew, including making a flight termination decision.
    (2) Each support system and each subsystem, component, and part that 
can affect the reliability of the support system must have written 
performance specifications that demonstrate, and contain the details of, 
how each satisfies the requirements of this section.
    (3) For each launch, each support system must undergo testing to 
ensure it functions according to its performance specifications.
    (b) Launch vehicle tracking. (1) A flight safety system must include 
a launch vehicle tracking system that provides launch vehicle position 
and status data to the flight safety crew from the first data loss 
flight time until the planned safe flight state for the launch.
    (2) The tracking system must consist of at least two sources of 
launch vehicle position data. The data sources must be independent of 
one another, and at least one source must be independent of any vehicle 
guidance system.
    (3) All ground tracking systems and components must be compatible 
with any tracking system components onboard the launch vehicle.
    (4) If a tracking system uses radar as one of the independent 
tracking sources, the system must:
    (i) Include a tracking beacon onboard the launch vehicle; or
    (ii) If the system relies on skin tracking, it must maintain a 
tracking margin of no less than 6 dB above noise throughout the period 
of flight that

[[Page 580]]

the radar is used. The flight safety limits must account for the larger 
tracking errors associated with skin tracking.
    (5) The tracking system must provide real-time data to the flight 
safety data processing, display, and recording system required by 
paragraph (e) of this section.
    (6) For each launch, each tracking source must undergo validation of 
its accuracy. For each stage of flight that a launch vehicle guidance 
system is used as a tracking source, a tracking source that is 
independent of any system used to aid the guidance system must validate 
the guidance system data before the data is used in the flight 
termination decision process.
    (7) The launch vehicle tracking error from all sources, including 
data latency and any possible gaps or dropouts in tracking coverage, 
must be consistent with the flight safety limits of Sec. 417.213 and 
the flight safety system time delay of Sec. 417.221.
    (8) Any planned gap in tracking coverage must not occur at the same 
time as any planned switching of command transmitters.
    (c) Telemetry. (1) A flight safety system must include a telemetry 
system that provides the flight safety crew with accurate flight safety 
data during preflight operations and during flight until the planned 
safe flight state.
    (2) The onboard telemetry system must monitor and transmit the 
flight termination system monitoring data of section D417.17 and any 
launch vehicle tracking data used to satisfy paragraph (b) of this 
section.
    (3) The telemetry receiving system must acquire, store, and provide 
real-time data to the flight safety data processing, display, and 
recording system required by paragraph (e) of this section.
    (d) Communications network. A flight safety system must include a 
communications network that connects all flight safety functions with 
all launch control centers and any down-range tracking and command 
transmitter sites. The system must provide for recording all required 
data and all voice communications channels during launch countdown and 
flight.
    (e) Data processing, display, and recording. A flight safety system 
must include one or more subsystems that process, display, and record 
flight safety data to support the flight safety crew's monitoring of the 
launch, including the data that the crew uses to make a flight 
termination decision. The system must:
    (1) Satisfy Sec. 417.123 for any computing system, software, or 
firmware that must operate properly to ensure the accuracy of the data;
    (2) Receive vehicle status data from tracking and telemetry, 
evaluate the data for validity, and provide valid data for display and 
recording;
    (3) Perform any reformatting of the data as appropriate and forward 
it to display and recording devices;
    (4) Display real-time data against background displays of the 
nominal trajectory and flight safety limits established in accordance 
with the flight safety analysis required by subpart C of this part;
    (5) Display and record raw input and processed data at a rate that 
maintains the validity of the data and at no less than 0.1-second 
intervals;
    (6) Record the timing of when flight safety system commands are 
input by the flight safety crew; and
    (7) Record all health and status parameters of the command control 
system, including the transmitter failover parameters, command outputs, 
check channel or pilot tone monitor, and status of communications.
    (f) Displays and controls. (1) A flight safety system must include 
the displays of real-time data and controls that the flight safety crew 
needs to perform all its functions, such as to monitor and evaluate 
launch vehicle performance, communicate with other flight safety and 
launch personnel, and initiate flight termination.
    (2) A flight safety system must present all data that the flight 
safety crew needs to ensure that all flight commit criteria are 
satisfied for each launch, such as hazard area surveillance, any 
aircraft and ship traffic information, meteorological conditions, and 
the flight termination system monitoring data of section D417.17.
    (3) The real-time displays must include all data that the flight 
safety

[[Page 581]]

crew needs to ensure the operational functionality of the flight safety 
system, including availability and quality, and that all flight 
termination rules are satisfied for each launch, such as:
    (i) Launch vehicle tracking data, such as instantaneous vacuum 
impact point, drag corrected debris footprint, or present launch vehicle 
position and velocities as a function of time;
    (ii) Vehicle status data from telemetry, including yaw, pitch, roll, 
and motor chamber pressure;
    (iii) The flight termination system monitoring data of section 
D417.17;
    (iv) Background displays of nominal trajectory, flight safety 
limits, data loss flight times, planned safe flight state, and any 
overflight gate through a flight safety limit all as determined by the 
flight safety analysis required by subpart C of this part; and
    (v) Any video data when required by the flight safety crew to 
perform its functions, such as video from optical program and flight 
line cameras.
    (4) The controls must allow the flight safety crew to turn a command 
transmitter on and off, manually switch from primary to backup 
transmitter antenna, and switch between each transmitter site. These 
functions may be accomplished through controls available to command 
transmitter support personnel and communications between those personnel 
and the flight safety crew.
    (5) Each set of command transmitter system controls must include a 
means of identifying when it has primary control of the system.
    (6) The displays must include a means of immediately notifying the 
flight safety system crew of any automatic fail-over of the system 
transmitters.
    (7) All flight safety system controls must be dedicated to the 
flight safety system and must not rely on time or equipment shared with 
other systems.
    (8) All data transmission links between any control, transmitter, or 
antenna must consist of two or more complete and independent duplex 
circuits. The routing of these circuits must ensure that they are 
physically separated from each other to eliminate any potential single 
failure point in the command control system in accordance with Sec. 
417.303(d).
    (9) The system must include hardware or procedural security 
provisions for controlling access to all controls and other related 
hardware. These security provisions must ensure that only the flight 
safety crew can initiate a flight safety system transmission.
    (10) The system must include two independent means for the flight 
safety crew to initiate arm and destruct messages. The location and 
functioning of the controls must provide the crew easy access to the 
controls and prevent inadvertent activation.
    (11) The system must include a digital countdown for use in 
implementing the flight termination rules of Sec. 417.113 that apply 
data loss flight times and the planned safe flight state. The system 
must also include a manual method of applying the data loss flight times 
in the event that the digital countdown malfunctions.
    (g) Support equipment calibration. Each support system and any 
equipment used to test flight safety system components must undergo 
calibration to ensure that measurement and monitoring devices that 
support a launch provide accurate indications.
    (h) Destruct initiator simulator. A flight safety system must 
include one or more destruct initiator simulators that simulate each 
destruct initiator during the flight termination system preflight tests. 
Each destruct initiator simulator must:
    (1) Have electrical and operational characteristics matching those 
of the actual destruct initiator;
    (2) Monitor the firing circuit output current, voltage, or energy, 
and indicate whether the firing output occurs. The indication that the 
output occurred must remain after the output is removed;
    (3) Have the ability to remain connected throughout ground 
processing until the electrical connection of the actual initiators is 
accomplished;
    (4) Include a capability that permits the issuance of destruct 
commands by test equipment only if the simulator is installed and 
connected to the firing lines; and
    (5) For any low voltage initiator, provide a stray current 
monitoring device

[[Page 582]]

in the firing line. The stray current monitoring device, such as a fuse 
or automatic recording system, must be capable of indicating a minimum 
of one-tenth of the maximum no-fire current.
    (i) Timing. A flight safety system must include a timing system that 
is synchronized to a universal time coordinate. The system must:
    (1) Initiate first motion signals;
    (2) Synchronize flight safety system instrumentation, including 
countdown clocks; and
    (3) Identify when, during countdown or flight, a data measurement or 
voice communication occurs.



Sec. 417.309  Flight safety system analysis.

    (a) General. (1) Each flight termination system and command control 
system, including each of their components, must satisfy the analysis 
requirements of this section.
    (2) Each analysis must follow an FAA approved system safety and 
reliability analysis methodology.
    (b) System reliability. Each flight termination system and command 
control system must undergo an analysis that demonstrates the system's 
predicted reliability. Each analysis must:
    (1) Account for the probability of a flight safety system anomaly 
occurring and all of its effects as determined by the single failure 
point analysis and the sneak circuit analysis required by paragraphs (c) 
and (g) of this section;
    (2) Demonstrate that each system satisfies the predicted reliability 
requirement of 0.999 at the 95 percent confidence level;
    (3) Use a reliability model that is statistically valid and 
accurately represents the system;
    (4) Account for the actual or predicted reliability of all 
subsystems and components;
    (5) Account for the effects of storage, transportation, handling, 
maintenance, and operating environments on component predicted 
reliability; and
    (6) Account for the interface between the launch vehicle systems and 
the flight termination system.
    (c) Single failure point. A command control system must undergo an 
analysis that demonstrates that the system satisfies the fault tolerance 
requirements of Sec. 417.303(d). A flight termination system must 
undergo an analysis that demonstrates that the system satisfies the 
fault tolerance requirements of section D417.5(b). Each analysis must:
    (1) Follow a standard industry methodology such as a fault tree 
analysis or a failure modes effects and criticality analysis;
    (2) Identify all possible failure modes and undesired events, their 
probability of occurrence, and their effects on system performance;
    (3) Identify single point failure modes;
    (4) Identify areas of design where redundancy is required and 
account for any failure mode where a component and its backup could fail 
at the same time due to a single cause;
    (5) Identify functions, including redundancy, which are not or 
cannot be tested;
    (6) Account for any potential system failures due to hardware, 
software, test equipment, or procedural or human errors;
    (7) Account for any single failure point on another system that 
could disable a command control system or flight termination system, 
such as any launch vehicle system that could trigger safing of a flight 
termination system; and
    (8) Provide input to the reliability analysis of paragraph (b) of 
this section.
    (d) Fratricide. A flight termination system must undergo an analysis 
that demonstrates that the flight termination of any stage, at any time 
during flight, will not sever interconnecting flight termination system 
circuitry or ordnance to other stages until flight termination on all 
the other stages has been initiated.
    (e) Bent pin. Each component of a flight termination system and 
command control system must undergo an analysis that demonstrates that 
any single short circuit occurring as a result of a bent electrical 
connection pin will not result in inadvertent system activation or 
inhibiting the proper operation of the system.
    (f) Radio frequency link. (1)The flight safety system must undergo a 
radio frequency link analysis to demonstrate

[[Page 583]]

that it satisfies the required 12-dB margin for nominal system 
performance and 6-dB margin for worst-case system performance.
    (2) When demonstrating the 12-dB margin, each link analysis must 
account for the following nominal system performance and attenuation 
factors:
    (i) Path losses due to plume or flame attenuation;
    (ii) Vehicle trajectory;
    (iii) Ground system and airborne system radio frequency 
characteristics; and
    (iv) The antenna gain value that ensures that the margin is 
satisfied over 95% of the antenna radiation sphere surrounding the 
launch vehicle.
    (3) When demonstrating the 6-dB margin, each link analysis must 
account for the following worst-case system performance and attenuation 
factors:
    (i) The system performance and attenuation factors of paragraph 
(f)(2) of this section;
    (ii) The command transmitter failover criteria of Sec. 417.303(g) 
including the lowest output power provided by the transmitter system;
    (iii) Worst-case power loss due to antenna pointing inaccuracies; 
and
    (iv) Any other attenuation factors.
    (g) Sneak circuit. Each electronic component that contains an 
electronic inhibit that could inhibit the functioning, or cause 
inadvertent functioning of a flight termination system or command 
control system, must undergo a sneak circuit analysis. The analysis must 
demonstrate that there are no latent paths of an unwanted command that 
could, when all components otherwise function properly, cause the 
occurrence of an undesired, unplanned, or inhibited function that could 
cause a system anomaly. The analysis must determine the probability of 
an anomaly occurring for input to the system reliability analysis of 
paragraph (b) of this section.
    (h) Software and firmware. Any computing system, software, or 
firmware that performs a software safety critical function must undergo 
the analysis needed to ensure reliable operation and satisfy Sec. 
417.123.
    (i) Battery capacity. A flight termination system must undergo an 
analysis that demonstrates that each flight termination system battery 
has a total amp hour capacity of no less than 150% of the capacity 
needed during flight plus the capacity needed for load and activation 
checks, preflight and launch countdown checks, and any potential launch 
hold time. For a launch vehicle that uses any solid propellant, the 
analysis must demonstrate that the battery capacity allows for an 
additional 30-minute hang-fire hold time. The battery analysis must also 
demonstrate each flight termination system battery's ability to meet the 
charging temperature and current control requirements of appendix D of 
this part.
    (j) Survivability. A flight termination system must undergo an 
analysis that demonstrates that each subsystem and component, including 
their location on the launch vehicle, provides for the flight 
termination system to complete all its required functions when exposed 
to:
    (1) Breakup of the launch vehicle due to aerodynamic loading effects 
at high angle of attack trajectories during early stages of flight, 
including the effects of any automatic or inadvertent destruct system;
    (2) An engine hard-over nozzle induced tumble during each phase of 
flight for each stage; or
    (3) Launch vehicle staging, ignition, or any other normal or 
abnormal event that, when it occurs, could damage flight termination 
system hardware or inhibit the functionality of any subsystem or 
component, including any inadvertent separation destruct system.



Sec. 417.311  Flight safety crew roles and qualifications.

    (a) A flight safety crew must operate the flight safety system 
hardware. A flight safety crew must document each flight safety crew 
position description and maintain documentation on individual crew 
qualifications, including education, experience, and training as part of 
the personnel certification program required by Sec. 417.105.
    (b) A flight safety crew must be able to demonstrate the knowledge, 
skills, and abilities needed to operate the

[[Page 584]]

flight safety system hardware in accordance with Sec. 417.113.
    (1) A flight safety crew must have knowledge of:
    (i) All flight safety system assets and responsibilities, including:
    (A) Communications systems and launch operations procedures;
    (B) Both voice and data systems;
    (C) Graphical data systems;
    (D) Tracking; and
    (E) Telemetry real time data;
    (ii) Flight termination systems; and
    (iii) Contingency operations, including hold, recycle and abort 
procedures.
    (2) An individual who monitors vehicle performance and performs 
flight termination must have knowledge of and be capable of resolving 
malfunctions in:
    (i) The application of safety support systems such as position 
tracking sources;
    (ii) Digital computers;
    (iii) Displays;
    (iv) Command destruct;
    (v) Communications;
    (vi) Telemetry;
    (vii) All electrical functions of a flight termination system;
    (viii) The principles of radio frequency transmission and 
attenuation;
    (ix) The behavior of ballistic and aerodynamic vehicles in flight 
under the influence of aerodynamic forces; and
    (x) The application of flight termination rules.
    (3) An individual who operates flight safety support systems must 
have knowledge of and be capable of resolving malfunctions in:
    (i) The design and assembly of the flight safety support system 
hardware;
    (ii) The operation of electromechanical systems; and
    (iii) The nature and inherent tendencies of the flight safety system 
hardware being operated.
    (4) An individual who performs flight safety analysis must have 
knowledge of orbital mechanics and be proficient in the calculation and 
production of range safety displays, impact probabilities, and casualty 
expectations.
    (c) Flight safety crew members must complete a training and 
certification program to ensure launch site familiarization, launch 
vehicle familiarization, flight safety system functions, equipment, and 
procedures related to a launch before being called upon to support that 
launch. Each flight safety crew member must complete a preflight 
readiness training and certification program. This preflight readiness 
training and certification program must include:
    (1) Mission specific training programs to ensure team readiness.
    (2) Launch simulation exercises of system failure modes, including 
nominal and failure modes, that test crew performance, flight 
termination criteria, and flight safety data display integrity.



                         Subpart E_Ground Safety



Sec. 417.401  Scope.

    This subpart contains public safety requirements that apply to 
launch processing and post-launch operations at a launch site in the 
United States. Ground safety requirements in this subpart apply to 
activities performed by, or on behalf of, a launch operator at a launch 
site in the United States. A licensed launch site operator must satisfy 
the requirements of part 420 of this chapter.



Sec. 417.402  Compliance.

    (a) General. A launch operator's ground safety process must satisfy 
this subpart.
    (b) Ground safety analysis conducted for launch at a Federal launch 
range. This provision applies to all sections of this subpart. The FAA 
will accept a ground safety process conducted for a launch from a 
Federal launch range without need for further demonstration of 
compliance to the FAA if:
    (1) A launch operator has contracted with a Federal launch range for 
the provision of the ground safety process; and
    (2) The FAA has assessed the Federal launch range, through its 
launch site safety assessment, and found that the Federal launch range's 
ground safety process satisfies the requirements of this subpart. In 
this case, the FAA will treat the Federal launch range's process as that 
of a launch operator.
    (c) Toxic release hazard analysis conducted for launch processing at 
a Federal launch range. The FAA will accept a

[[Page 585]]

toxic release hazard analysis conducted for launch processing from a 
Federal launch range provided the toxic release analysis satisfies the 
Federal launch range's requirements, and the FAA has assessed the 
Federal launch range, through its launch site safety assessment, and 
found that the applicable Federal launch range safety-related launch 
services and property satisfy the requirements of this subpart.
    (d) Demonstration of compliance. For a licensed launch that does not 
satisfy paragraphs (b) and (c) of this section, a launch operator must 
demonstrate compliance to the FAA with the requirements of this subpart, 
and must include in its demonstration the analysis products required by 
subparts A and E of this part, and appendices I and J of this part.
    (e) Alternate methods. The FAA will approve an alternate hazard 
control method if a launch operator demonstrates, in accordance with 
Sec. 406.3(b), that its proposed hazard control method provides an 
equivalent level of safety to that required by this subpart.



Sec. 417.403  General.

    (a) Public safety. A launch operator must ensure that each hazard 
control is in place to protect the public from each potential hazard 
associated with launch processing and post-launch operations.
    (b) Ground safety analysis. A launch operator must perform and 
document a ground safety analysis that satisfies Sec. 417.405 and 
appendix J of this part.
    (c) Local agreements. A launch operator must coordinate and perform 
launch processing and post-launch operations that satisfy local 
agreements to ensure the responsibilities and requirements in this part 
and Sec. 420.57 of this chapter are met. A launch operator, when using 
a launch site of a licensed launch site operator, must coordinate the 
launch operator's operations with the launch site operator and with any 
agreements that the launch site operator has with local authorities that 
form a basis for the launch site operator's license.
    (d) Launch operator's exclusive use of a launch site. For a launch 
conducted from a launch site exclusive to its own use, a launch operator 
must satisfy the requirements of this subpart and of part 420 of this 
chapter, including subpart D of part 420.



Sec. 417.405  Ground safety analysis.

    (a) A launch operator must perform a ground safety analysis for 
launch vehicle hardware, ground hardware including launch site and 
ground support equipment, launch processing, and post-launch operations 
at a launch site in the United States. The requirements of this section 
apply to the performance of the ground safety analysis and to the ground 
safety analysis products that a launch operator must file with the FAA 
as required by Sec. 417.402(d). This analysis must identify each 
potential hazard, each associated cause, and each hazard control that a 
launch operator must establish and maintain to keep each identified 
hazard from affecting the public. A launch operator must incorporate the 
launch site operator's systems and operations involved in ensuring 
public safety into the ground safety analysis.
    (b) Technical personnel who are knowledgeable of launch vehicle 
systems, launch processing, ground systems, operations, and their 
associated hazards must prepare the ground safety analysis. These 
individuals must be qualified to perform the ground safety analysis 
through training, education, and experience.
    (c) A launch operator must ensure personnel performing a ground 
safety analysis or preparing a ground safety analysis report will have 
the cooperation of the entire launch operator's organization. A launch 
operator must maintain supporting documentation and it must be available 
upon request.
    (d) A launch operator must:
    (1) Begin a ground safety analysis by identifying the systems and 
operations to be analyzed;
    (2) Define the extent of each system and operation being assessed to 
ensure there is no miscommunication as to what the hazards are, and who, 
in a launch operator's organization or other organization supporting the 
launch, controls those hazards; and
    (3) Ensure that the ground safety analysis accounts for each launch 
vehicle system and operation involved in

[[Page 586]]

launch processing and post-launch operations, even if only to show that 
no hazard exists.
    (e) A ground safety analysis need not account for potential hazards 
of a component if a launch operator demonstrates that no hazard to the 
public exists at the system level. A ground safety analysis need not 
account for an operation's individual task or subtask level if a launch 
operator demonstrates that no hazard to the public exists at the 
operation level. A launch operator must provide verifiable controls for 
hazards that are confined within the boundaries of a launch operator's 
facility to ensure the public will not have access to the associated 
hazard area while the hazard exists.
    (f) A launch operator must identify each potential hazard, including 
non-credible hazards. The probability of occurrence is not relevant with 
respect to identifying a hazard. Where an assertion is made that no 
hazard exists for a particular system or operation, the ground safety 
analysis must provide the rationale. A launch operator must identify the 
following hazards of each launch vehicle system, launch site and ground 
support equipment, launch processing, and post-launch operations:
    (1) System hazards, including explosives and other ordnance, solid 
and liquid propellants, toxic and radioactive materials, asphyxiants, 
cryogens, and high pressure. System hazards generally exist even when no 
operation is occurring; and
    (2) Operation hazards derived from an unsafe condition created by a 
system, operating environment, or an unsafe act.
    (g) A launch operator must categorize identified system and 
operation hazards as follows:
    (1) Public hazard. A hazard that extends beyond the launch location 
under the control of a launch operator. Public hazards include the 
following:
    (i) Blast overpressure and fragmentation resulting from an 
explosion;
    (ii) Fire and deflagration, including hazardous materials such as 
radioactive material, beryllium, carbon fibers, and propellants. A 
launch operator must assume that in the event of a fire, hazardous smoke 
from systems containing hazardous materials will reach the public;
    (iii) Sudden release of a hazardous material into the air, water, or 
ground; and
    (iv) Inadvertent ignition of a propulsive launch vehicle payload, 
stage, or motor.
    (2) Launch location hazard. A hazard that stays within the confines 
of the location under the control of a launch operator but extends 
beyond individuals doing the work. The confines may be bounded by a wall 
or a fence line of a facility or launch complex, or by a fenced or 
unfenced boundary of an entire industrial complex or multi-user launch 
site. A launch location hazard may affect the public depending on public 
access controls. Launch location hazards that may affect the public 
include the hazards listed in paragraphs (g)(1)(i)-(iv) of this section 
and additional hazards in potentially unsafe locations accessible to the 
public such as:
    (i) Unguarded electrical circuits or machinery;
    (ii) Oxygen deficient environments;
    (iii) Falling objects;
    (iv) Potential falls into unguarded pits or from unguarded elevated 
work platforms; and
    (v) Sources of ionizing and non-ionizing radiation such as x-rays, 
radio transmitters, and lasers.
    (3) Employee hazard. A hazard to individuals performing a launch 
operator's work, but not to other people in the area. A launch operator 
must comply with all applicable Federal, state, and local employee 
safety regulations. A launch operator's ground safety analysis must 
identify employee hazards and demonstrate that there are no associated 
public safety issues.
    (4) Non-credible hazard. A hazard for which possible adverse effects 
on people or property would be negligible and where the possibility of 
adverse effects on people or property is remote. A launch operator's 
ground safety analysis must identify non-credible hazards and 
demonstrate that the hazard is non-credible.
    (h) A ground safety analysis must identify each hazard cause for 
each public hazard and launch location hazard. The ground safety 
analysis must

[[Page 587]]

account for conditions, acts, or chain of events that can result in a 
hazard. The ground safety analysis must account for the possible failure 
of any control or monitoring circuitry within hardware systems that can 
cause a hazard.
    (i) A ground safety analysis must identify the hazard controls to be 
established by a launch operator for each hazard cause identified in 
paragraph (h) of this section. A launch operator's hazard controls 
include the use of engineering controls for the containment of hazards 
within defined areas and the control of public access to those areas.
    (j) A launch operator must verify all information in a ground safety 
analysis, including design margins, fault tolerance and successful 
completion of tests. A launch operator must:
    (1) Trace any identified hardware to an engineering drawing or other 
document that describes hardware configuration;
    (2) Trace any test or analysis used in developing the ground safety 
analysis to a report or memorandum that describes how the test or 
analysis was performed;
    (3) Ensure the accuracy of the test or analysis and the associated 
results;
    (4) Trace any procedural hazard control identified to a written 
procedure, and approved by the person designated under Sec. 
417.103(b)(2) or the person's designee, with the paragraph or step 
number of the procedure specified;
    (5) Identify a verifiable hazard control for each hazard; if a 
hazard control is not verifiable, a launch operator may include it as an 
informational note on the hazard analysis form;
    (6) For each hazard control, reference a released drawing, report, 
procedure or other document that verifies the existence of the hazard 
control; and
    (7) Maintain records, as required by Sec. 417.15, of the 
documentation that verifies the information in the ground safety 
analysis.
    (k) A launch operator must ensure the continuing accuracy of its 
ground safety analysis. The analysis of systems and operations must not 
end upon submission of a ground safety analysis report to the FAA during 
the license application process. A launch operator must analyze each new 
or modified system or operation for potential hazards that can affect 
the public. A launch operator must ensure that each existing system and 
operation is subject to continual scrutiny and that the information in a 
ground safety analysis report is kept current.



Sec. 417.407  Hazard control implementation.

    (a) General. A launch operator must establish and maintain the 
hazard controls identified by the ground safety analysis including:
    (1) System hazard controls that satisfy Sec. 417.409;
    (2) Safety clear zones for hazardous operations that satisfy Sec. 
417.411;
    (3) Hazard areas and controls for allowing public access that 
satisfy Sec. 417.413;
    (4) Hazard controls after launch or an attempt to launch that 
satisfy Sec. 417.415; and
    (5) Controls for propellant and explosive hazards that satisfy Sec. 
417.417.
    (b) Hazard control verification. A launch operator must establish a 
hazard tracking process to ensure that each identified hazard has a 
verifiable hazard control. Verification status must remain ``open'' for 
an individual hazard control until the hazard control is verified to 
exist in a released drawing, report, procedure, or similar document.
    (c) Hazard control configuration control. A launch operator must 
establish and maintain a configuration control process for safety 
critical hardware. Procedural steps to verify hazard controls, and their 
associated documentation, cannot be changed without coordination with 
the person designated in Sec. 417.103(b)(2).
    (d) Inspections. When a potential hazard exists, a launch operator 
must conduct periodic inspections of related hardware, software, and 
facilities. A launch operator must ensure qualified and certified 
personnel, as required by Sec. 417.105, conduct the inspection. A 
launch operator must demonstrate that the time interval between 
inspections is sufficient to ensure satisfaction of this subpart. A 
launch operator must ensure safety devices and other hazard controls 
must remain in place for that hazard, and that safety devices

[[Page 588]]

and other hazard controls must remain in working order so that no unsafe 
conditions exist.
    (e) Procedures. A launch operator must conduct each launch 
processing or post-launch operation involving a public hazard or a 
launch location hazard pursuant to written procedures that incorporate 
the hazard controls identified by a launch operator's ground safety 
analysis and as required by this subpart. The person designated in Sec. 
417.103(b)(2) must approve the procedures. A launch operator must 
maintain an ``as-run'' copy of each procedure. The ``as-run'' procedure 
copy must include changes, start and stop dates, and times that each 
procedure was performed and observations made during the operations.
    (f) Hazardous materials. A launch operator must establish procedures 
for the receipt, storage, handling, use, and disposal of hazardous 
materials, including toxic substances and sources of ionizing radiation. 
A launch operator must establish procedures for responding to hazardous 
material emergencies and protecting the public that complies with the 
accident investigation plan as defined in Sec. 417.111(h)(2). These 
procedures must include:
    (1) Identification of each hazard and its effects;
    (2) Actions to be taken in response to release of a hazardous 
material;
    (3) Identification of protective gear and other safety equipment 
that must be available in order to respond to a release;
    (4) Evacuation and rescue procedures;
    (5) Chain of command; and
    (6) Communication both on-site and off-site to surrounding 
communities and local authorities.
    (g) Toxic release hazard notifications and evacuations. A launch 
operator must perform a toxic release hazard analysis for launch 
processing performed at the launch site that satisfies section I417.7 of 
this part. A launch operator must apply toxic plume modeling techniques 
that satisfy section I417.7 of this part and ensure that notifications 
and evacuations are accomplished to protect the public from potential 
toxic release.



Sec. 417.409  System hazard controls.

    (a) General. A launch operator must establish and maintain hazard 
controls for each system that presents a public hazard as identified by 
the ground safety analysis and satisfy the requirements of this section. 
A launch operator must:
    (1) Ensure a system be at least single fault tolerant to creating a 
public hazard unless other hazard control criteria are specified for the 
system by the requirements of this part. A system capable of creating a 
catastrophic public hazard must be at least dual fault tolerant. Dual 
fault tolerant system hazard controls include: Switches, valves, or 
similar components that prevent an unwanted transfer or release of 
energy or hazardous materials;
    (2) Ensure each hazard control used to provide fault tolerance is 
independent from other hazard controls so that no single action or event 
can remove more than one inhibit. A launch operator must prevent 
inadvertent activation of hazard control devices such as switches and 
valves;
    (3) Provide at least two fully redundant safety devices if a safety 
device must function in order to control a public hazard. A single 
action or event must not be capable of disabling both safety devices; 
and
    (4) Ensure computing systems and software used to control a public 
hazard satisfy the requirements of Sec. 417.123.
    (b) Structures and material handling equipment. A launch operator 
must ensure safety factors applied in the design of a structure or 
material handling equipment account for static and dynamic loads, 
environmental stresses, expected wear, and duty cycles. A launch 
operator must:
    (1) Inspect structures and material handling equipment to verify 
workmanship, proper operations, and maintenance;
    (2) Prepare plans to ensure proper operations and maintenance of 
structures and material handling equipment;
    (3) Assess structures and material handling equipment for potential 
single point failure;
    (4) Eliminate single point failures from structures and material 
handling equipment or subject the structures

[[Page 589]]

and material handling equipment to specific inspection and testing to 
ensure proper operation. Single point failure welds must undergo both 
surface and volumetric non-destructive inspection to verify that no 
rejectable discontinuities exist;
    (5) Establish other non-destructive inspection techniques if a 
volumetric inspection cannot be performed. A launch operator, in such a 
case, must demonstrate through the licensing process that the inspection 
processes used accurately verify the absence of rejectable 
discontinuities; and
    (6) Ensure qualified and certified personnel, as defined in Sec. 
417.105, conduct the inspections.
    (c) Pressure vessels and pressurized systems. A launch operator must 
apply the following hazard controls to a pressurized flight or ground 
pressure vessel, component, or systems:
    (1) Qualified and certified personnel, as defined in Sec. 417.105, 
must test each pressure vessel, component, or system upon installation 
and before being placed into service, and periodically inspect to ensure 
that no rejectable discontinuities exists;
    (2) Safety factors applied in the design of a pressure vessel, 
component, or system must account for static and dynamic loads, 
environmental stresses, and expected wear;
    (3) Pressurized system flow-paths, except for pressure relief and 
emergency venting, must be single fault tolerant to causing pressure 
ruptures and material releases during launch processing; and
    (4) Provide pressure relief and emergency venting capability to 
protect against pressure ruptures. Pressure relief devices must provide 
the flow rate necessary to prevent a rupture in the event a pressure 
vessel is exposed to fire.
    (d) Electrical and mechanical systems. A launch operator must apply 
the following hazard controls to electrical or mechanical systems that 
can release electrical or mechanical energy during launch processing:
    (1) A launch operator must ensure electrical and mechanical systems, 
including systems that generate ionizing or non-ionizing radiation, are 
single fault tolerant to providing or releasing electrical or mechanical 
energy;
    (2) In areas where flammable material exists, a launch operator must 
ensure electrical systems and equipment are hermetically sealed, 
explosion proof, intrinsically safe, purged, or otherwise designed so as 
not to provide an ignition source. A launch operator must assess each 
electrical system as a possible source of thermal energy and ensure that 
the electrical system can not act as an ignition source; and
    (3) A launch operator must prevent unintentionally conducted or 
radiated energy due to possible bent pins in a connector, a mismated 
connector, shorted wires, or unshielded wires within electrical power 
and signal circuits that interface with hazardous subsystems.
    (e) Propulsion systems. A propulsion system must be dual fault 
tolerant to inadvertently becoming propulsive. Propulsion systems must 
be single fault tolerant to inadvertent mixing of fuel and oxidizer. 
Each material in a propulsion system must be compatible with other 
materials that may contact the propulsion system during launch 
processing including materials used to assemble and clean the system. A 
launch operator must use engineering controls, including procedures, to 
prevent connecting incompatible systems. A launch operator must comply 
with Sec. 417.417 for hazard controls applicable to propellants and 
explosives.
    (f) Ordnance systems. An ordnance system must be at least single 
fault tolerant to prevent a hazard caused by inadvertent actuation of 
the ordnance system. A launch operator must comply with Sec. 417.417 
for hazard controls applicable to ordnance. In addition, an ordnance 
system must satisfy the following requirements;
    (1) A launch operator must ensure ordnance electrical connections 
are disconnected until final preparations for flight;
    (2) An ordnance system must provide for safing and arming of the 
ordnance. An electrically initiated ordnance system must include 
ordnance initiation devices and arming devices, also referred to as safe 
and arm devices, that provide a removable and replaceable mechanical 
barrier or other positive

[[Page 590]]

means of interrupting power to each ordnance firing circuit to prevent 
inadvertent initiation of ordnance. A mechanical safe and arm device 
must have a safing pin that locks the mechanical barrier in a safe 
position. A mechanical actuated ordnance device must also have a safing 
pin that prevents mechanical movement within the device. A launch 
operator must comply with section D417.13 of this part for specific 
safing and arming requirements for a flight termination system;
    (3) Protect ordnance systems from stray energy through grounding, 
bonding, and shielding; and
    (4) Current limit any monitoring or test circuitry that interfaces 
with an ordnance system to protect against inadvertent initiation of 
ordnance. Equipment used to measure bridgewire resistance on electro-
explosive devices must be special purpose ordnance system 
instrumentation with features that limit current.



Sec. 417.411  Safety clear zones for hazardous operations.

    (a) A launch operator must define a safety clear zone that confines 
the adverse effects of each operation involving a public hazard or 
launch location hazard. A launch operator's safety clear zones must 
satisfy the following:
    (1) A launch operator must establish a safety clear zone that 
accounts for the potential blast, fragment, fire or heat, toxic and 
other hazardous energy or material potential of the associated systems 
and operations. A launch operator must base a safety clear zone on the 
following criteria:
    (i) For a possible explosive event, base a safety clear zone on the 
worst case event, regardless of the fault tolerance of the system;
    (ii) For a possible toxic event, base a safety clear zone on the 
worst case event. A launch operator must have procedures in place to 
maintain public safety in the event toxic releases reach beyond the 
safety clear zone; and
    (iii) For a material handling operation, base a safety clear zone on 
a worst case event for that operation.
    (2) A launch operator must establish a safety clear zone when the 
launch vehicle is in a launch command configuration with the flight 
safety systems fully operational and on internal power.
    (b) A launch operator must establish restrictions that prohibit 
public access to a safety clear zone during a hazardous operation. A 
safety clear zone may extend to areas beyond the launch location 
boundaries if local agreements provide for restricting public access to 
such areas and a launch operator verifies that the safety clear zone is 
clear of the public during the hazardous operation.
    (c) A launch operator's procedures must verify that the public is 
outside of a safety clear zone prior to a launch operator beginning a 
hazardous operation.
    (d) A launch operator must control a safety clear zone to ensure no 
public access during the hazardous operation. Safety clear zone controls 
include:
    (1) Use of security guards and equipment;
    (2) Physical barriers; and
    (3) Warning signs, and other types of warning devices.



Sec. 417.413  Hazard areas.

    (a) General. A launch operator must define a hazard area that 
confines the adverse effects of a hardware system should an event occur 
that presents a public hazard or launch location hazard. A launch 
operator must prohibit public access to the hazard area whenever a 
hazard is present unless the requirements for public access of paragraph 
(b) of this section are met.
    (b) Public access. A launch operator must establish a process for 
authorizing public access if visitors or members of the public must have 
access to a launch operator's facility or launch location. The process 
must ensure that each member of the public is briefed on the hazards 
within the facility and related safety warnings, procedures, and rules 
that provide protection, or a launch operator must ensure that each 
member of the public is accompanied by a knowledgeable escort.
    (c) Hazard controls during public access. A launch operator must 
establish procedural controls that prevent hazardous operations from 
taking place while members of the public have access to the launch 
location and must verify that system hazard controls are

[[Page 591]]

in place that prevent initiation of a hazardous event. Hazard controls 
and procedures that prevent initiation of a hazardous event include the 
following:
    (1) Use of lockout devices or other restraints on system actuation 
switches or other controls to eliminate the possibility of inadvertent 
actuation of a hazardous system.
    (2) Disconnect ordnance systems from power sources, incorporate the 
use of safing plugs, or have safety devices in place that prevent 
inadvertent initiation. Activity involving the control circuitry of 
electrically activated safety devices must not be ongoing while the 
public has access to the hazard area. Install safing pins on safe and 
arm devices and mechanically actuated devices. Disconnect explosive 
transfer lines, not protected by a safe and arm device or a mechanically 
actuated device or equivalent.
    (3) When systems or tanks are loaded with hypergols or other toxic 
materials, close the system or tank and verify it is leak-tight with two 
verifiable closures, such as a valve and a cap, to every external flow 
path or fitting. Such a system must also be in a steady-state condition.
    (4) Keep each pressurized system below its maximum allowable working 
pressure and do not allow it to be in a dynamic state. Activity 
involving the control circuitry of electrically activated pressure 
system valves must not be ongoing while the public has access to the 
associated hazard area. Launch vehicle systems must not be pressurized 
to more than 25% of the system's design burst pressure, when the public 
has access to the associated hazard area.
    (5) Do not allow sources of ionizing or non-ionizing radiation, such 
as, x-rays, nuclear power sources, high-energy radio transmitters, 
radar, and lasers to be present or verify they are to be inactive when 
the public has access to the associated hazard area.
    (6) Guard physical hazards to prevent potential physical injury to 
visiting members of the public. Physical hazards include the following:
    (i) Potential falling objects;
    (ii) Falls from an elevated height; and
    (iii) Protection from potentially hazardous vents, such as pressure 
relief discharge vents.
    (7) Maintain and verify that safety devices or safety critical 
systems are operating properly prior to permitting public access.



Sec. 417.415  Post-launch and post-flight-attempt hazard controls.

    (a) A launch operator must establish, maintain and perform 
procedures for controlling hazards and returning the launch facility to 
a safe condition after a successful launch. Procedural hazard controls 
must include:
    (1) Provisions for extinguishing fires;
    (2) Re-establishing full operational capability of safety devices, 
barriers, and platforms; and
    (3) Access control.
    (b) A launch operator must establish procedures for controlling 
hazards associated with a failed flight attempt where a solid or liquid 
launch vehicle engine start command was sent, but the launch vehicle did 
not liftoff. These procedures must include the following:
    (1) Maintaining and verifying that each flight termination system 
remains operational until verification that the launch vehicle does not 
represent a risk of inadvertent liftoff. If an ignition signal has been 
sent to a solid rocket motor, the flight termination system must remain 
armed and active for a period of no less than 30 minutes. During this 
time, flight termination system batteries must maintain sufficient 
voltage and current capacity for flight termination system operation. 
The flight termination system receivers must remain captured by the 
command control system transmitter's carrier signal;
    (2) Assuring that the vehicle is in a safe configuration, including 
its propulsion and ordnance systems. The flight safety system crew must 
have access to the vehicle status. Re-establish safety devices and bring 
each pressurized system down to safe pressure levels; and
    (3) Prohibiting launch complex entry until the launch pad area 
safing procedures are complete.
    (c) A launch operator must establish procedural controls for hazards 
associated with an unsuccessful flight where

[[Page 592]]

the launch vehicle has a land or water impact. These procedures must 
include the following provisions:
    (1) Evacuation and rescue of members of the public, to include 
modeling the dispersion and movement of toxic plumes, identification of 
areas at risk, and communication with local government authorities;
    (2) Extinguishing fires;
    (3) Securing impact areas to ensure that personnel and the public 
are evacuated, and ensure that no unauthorized personnel or members of 
the public enter, and to preserve evidence; and
    (4) Ensuring public safety from hazardous debris, such as plans for 
recovery and salvage of launch vehicle debris and safe disposal of 
hazardous materials.



Sec. 417.417  Propellants and explosives.

    (a) A launch operator must comply with the explosive safety criteria 
in part 420 of this chapter.
    (b) A launch operator must ensure that:
    (1) The explosive site plan satisfies part 420 of this chapter;
    (2) Only those explosive facilities and launch points addressed in 
the explosive site plan are used and only for their intended purpose; 
and
    (3) The total net explosive weight for each explosive hazard 
facility and launch point must not exceed the maximum net explosive 
weight limit indicated on the explosive site plan for each location.
    (c) A launch operator must establish, maintain, and perform 
procedures that ensure public safety for the receipt, storage, handling, 
inspection, test, and disposal of explosives.
    (d) A launch operator must establish and maintain each procedural 
system control to prevent inadvertent initiation of propellants and 
explosives. These controls must include the following:
    (1) Protect ordnance systems from stray energy through methods of 
bonding, grounding, and shielding, and controlling radio frequency 
radiation sources in a radio frequency radiation exclusion area. A 
launch operator must determine the vulnerability of its electro-
explosive devices and systems to radio frequency radiation and establish 
radio frequency radiation power limits or radio frequency radiation 
exclusion areas as required by the launch site operator or to ensure 
safety.
    (2) Keep ordnance safety devices, as required by Sec. 417.409, in 
place until the launch complex is cleared as part of the final launch 
countdown. No members of the public may re-enter the complex until each 
safety device is re-established.
    (3) Do not allow heat and spark or flame producing devices in an 
explosive or propellant facility without written approval and oversight 
from a launch operator's safety organization.
    (4) Do not allow static producing materials in close proximity to 
solid or liquid propellants, electro-explosive devices, or systems 
containing flammable liquids.
    (5) Use fire safety measures including:
    (i) Elimination or reduction of flammable and combustible materials;
    (ii) Elimination or reduction of ignition sources;
    (iii) Fire and smoke detection systems;
    (iv) Safe means of egress; and
    (v) Timely fire suppression response.
    (6) Include lightning protection on each facility used to store or 
process explosives to prevent inadvertent initiation of propellants and 
explosives due to lightning unless the facility complies with the 
lightning protection criteria of Sec. 420.71 of this part.
    (e) A launch operator, in the event of an emergency, must perform 
the accident investigation plan as defined in Sec. 417.111(h).



Sec. Appendix A to Part 417--Flight Safety Analysis Methodologies and 

     Products for a Launch Vehicle Flown with a Flight Safety System

                              A417.1 Scope

    The requirements of this appendix apply to the methods for 
performing the flight safety analysis required by Sec. 417.107(f) and 
subpart C of this part. The methodologies contained in this appendix 
provide an acceptable means of satisfying the requirements of subpart C 
and provide a standard and a measure of fidelity against which the FAA 
will measure any proposed alternative analysis approach. This

[[Page 593]]

appendix also identifies the analysis products that a launch operator 
must file with the FAA as required by Sec. 417.203(e).

                          A417.3 Applicability

    The requirements of this appendix apply to a launch operator and the 
launch operator's flight safety analysis unless the launch operator 
clearly and convincingly demonstrates that an alternative approach 
provides an equivalent level of safety. If a Federal launch range 
performs the launch operator's analysis, Sec. 417.203(d) applies. 
Section A417.33 applies to the flight of any unguided suborbital launch 
vehicle that uses a wind-weighting safety system. All other sections of 
this appendix apply to the flight of any launch vehicle required to use 
a flight safety system as required by Sec. 417.107(a). For any 
alternative flight safety system approved by the FAA as required by 
Sec. 417.301(b), the FAA will determine the applicability of this 
appendix during the licensing process.

                             A417.5 General

    A launch operator's flight safety analysis must satisfy the 
requirements for public risk management and the requirements for the 
compatibility of the input and output of dependent analyses of Sec. 
417.205.

                            A417.7 Trajectory

    (a) General. A flight safety analysis must include a trajectory 
analysis that satisfies the requirements of Sec. 417.207. This section 
applies to the computation of each of the trajectories required by Sec. 
417.207 and to each trajectory analysis product that a launch operator 
must file with the FAA as required by Sec. 417.203(e).
    (b) Wind standards. A trajectory analysis must incorporate wind data 
in accordance with the following:
    (1) For each launch, a trajectory analysis must produce ''with-
wind'' launch vehicle trajectories pursuant to paragraph (f)(6) of this 
section and do so using composite wind profiles for the month that the 
launch will take place or composite wind profiles that are as severe or 
more severe than the winds for the month that the launch will take 
place.
    (2) A composite wind profile used for the trajectory analysis must 
have a cumulative percentile frequency that represents wind conditions 
that are at least as severe as the worst wind conditions under which 
flight would be attempted for purposes of achieving the launch 
operator's mission. These worst wind conditions must account for the 
launch vehicle's ability to operate normally in the presence of wind and 
accommodate any flight safety limit constraints.
    (c) Nominal trajectory. A trajectory analysis must produce a nominal 
trajectory that describes a launch vehicle's flight path, position and 
velocity, where all vehicle aerodynamic parameters are as expected, all 
vehicle internal and external systems perform exactly as planned, and no 
external perturbing influences other than atmospheric drag and gravity 
affect the launch vehicle.
    (d) Dispersed trajectories. A trajectory analysis must produce the 
following dispersed trajectories and describe the distribution of a 
launch vehicle's position and velocity as a function of winds and 
performance error parameters in the uprange, downrange, left-crossrange 
and right-crossrange directions.
    (1) Three-sigma maximum and minimum performance trajectories. A 
trajectory analysis must produce a three-sigma maximum performance 
trajectory that provides the maximum downrange distance of the 
instantaneous impact point for any given time after lift-off. A 
trajectory analysis must produce a three-sigma minimum performance 
trajectory that provides the minimum downrange distance of the 
instantaneous impact point for any given time after lift-off. For any 
time after lift-off, the instantaneous impact point dispersion of a 
normally performing launch vehicle must lie between the extremes 
achieved at that time after lift-off by the three-sigma maximum and 
three-sigma minimum performance trajectories. The three-sigma maximum 
and minimum performance trajectories must account for wind and 
performance error parameter distributions as follows:
    (i) For each three-sigma maximum and minimum performance trajectory, 
the analysis must use composite head wind and composite tail wind 
profiles that represent the worst wind conditions under which a launch 
would be attempted as required by paragraph (b) of this section.
    (ii) Each three-sigma maximum and minimum performance trajectory 
must account for all launch vehicle performance error parameters 
identified as required by paragraph (f)(1) of this section that have an 
effect upon instantaneous impact point range.
    (2) Three-sigma left and right lateral trajectories. A trajectory 
analysis must produce a three-sigma left lateral trajectory that 
provides the maximum left crossrange distance of the instantaneous 
impact point for any time after lift-off. A trajectory analysis must 
produce a three-sigma right lateral trajectory that provides the maximum 
right crossrange distance of the instantaneous impact point for any time 
after lift-off. For any time after lift-off, the instantaneous impact 
point dispersion of a normally performing launch vehicle must lie 
between the extremes achieved at that time after liftoff by the three-
sigma left lateral and three-sigma right lateral performance 
trajectories. The three-sigma lateral performance trajectories must 
account for wind and performance error parameter distributions as 
follows:

[[Page 594]]

    (i) In producing each left and right lateral trajectory, the 
analysis must use composite left and composite right lateral-wind 
profiles that represent the worst wind conditions under which a launch 
would be attempted as required by paragraph (b) of this section.
    (ii) The three-sigma left and right lateral trajectories must 
account for all launch vehicle performance error parameters identified 
as required by paragraph (f)(1) of this section that have an effect on 
the lateral deviation of the instantaneous impact point.
    (3) Fuel-exhaustion trajectory. A trajectory analysis must produce a 
fuel-exhaustion trajectory for the launch of any launch vehicle with a 
final suborbital stage that will terminate thrust nominally without 
burning to fuel exhaustion. The analysis must produce the trajectory 
that would occur if the planned thrust termination of the final 
suborbital stage did not occur. The analysis must produce a fuel-
exhaustion trajectory that extends either the nominal trajectory taken 
through fuel exhaustion of the last suborbital stage or the three-sigma 
maximum trajectory taken through fuel exhaustion of the last suborbital 
stage, whichever produces an instantaneous impact point with the 
greatest range for any time after liftoff.
    (e) Straight-up trajectory. A trajectory analysis must produce a 
straight-up trajectory that begins at the planned time of ignition, and 
that simulates a malfunction that causes the launch vehicle to fly in a 
vertical or near vertical direction above the launch point. A straight-
up trajectory must last no less than the sum of the straight-up time 
determined as required by section A417.15 plus the duration of a 
potential malfunction turn determined as required by section 
A417.9(b)(2).
    (f) Analysis process and computations. A trajectory analysis must 
produce each three-sigma trajectory required by this appendix using a 
six-degree-of-freedom trajectory model and an analysis method, such as 
root sum-square or Monte Carlo, that accounts for all individual launch 
vehicle performance error parameters that contribute to the dispersion 
of the launch vehicle's instantaneous impact point.
    (1) A trajectory analysis must identify all launch vehicle 
performance error parameters and each parameter's distribution to 
account for all launch vehicle performance variations and any external 
forces that can cause offsets from the nominal trajectory during normal 
flight. A trajectory analysis must account for, but need not be limited 
to, the following performance error parameters:
    (i) Thrust;
    (ii) Thrust misalignment;
    (iii) Specific impulse;
    (iv) Weight;
    (v) Variation in firing times of the stages;
    (vi) Fuel flow rates;
    (vii) Contributions from the guidance, navigation, and control 
systems;
    (ix) Steering misalignment; and
    (x) Winds.
    (2) Each three-sigma trajectory must account for the effects of wind 
from liftoff through the point in flight where the launch vehicle 
attains an altitude where wind no longer affects the launch vehicle.
    (g) Trajectory analysis products. The products of a trajectory 
analysis that a launch operator must file with the FAA include the 
following:
    (1) Assumptions and procedures. A description of all assumptions, 
procedures and models, including the six-degrees-of-freedom model, used 
in deriving each trajectory.
    (2) Three-sigma launch vehicle performance error parameters. A 
description of each three-sigma performance error parameter accounted 
for by the trajectory analysis and a description of each parameter's 
distribution determined as required by paragraph (f)(1) of this section.
    (3) Wind profile. A graph and tabular listing of each wind profile 
used in performing the trajectory analysis as required by paragraph 
(b)(1) of this section and the worst case winds required by paragraph 
(b)(2) of this section. The graph and tabular wind data must provide 
wind magnitude and direction as a function of altitude for the air space 
regions from the Earth's surface to 100,000 feet in altitude for the 
area intersected by the launch vehicle trajectory. Altitude intervals 
must not exceed 5000 feet.
    (4) Launch azimuth. The azimuthal direction of the trajectory's ''X-
axis'' at liftoff measured clockwise in degrees from true north.
    (5) Launch point. Identification and location of the proposed launch 
point, including its name, geodetic latitude, geodetic longitude, and 
geodetic height.
    (6) Reference ellipsoid. The name of the reference ellipsoid used by 
the trajectory analysis to approximate the average curvature of the 
Earth and the following information about the model:
    (i) Length of semi-major axis;
    (ii) Length of semi-minor axis;
    (iii) Flattening parameter;
    (iv) Eccentricity;
    (v) Gravitational parameter;
    (vi) Angular velocity of the Earth at the equator; and
    (vii) If the reference ellipsoid is not a WGS-84 ellipsoidal Earth 
model, the equations that convert the filed ellipsoid information to the 
WGS-84 ellipsoid.
    (7) Temporal trajectory items. A launch operator must provide the 
following temporal trajectory data for time intervals not in excess of 
one second and for the discrete time points that correspond to each 
jettison, ignition, burnout, and thrust termination of each stage. If 
any stage burn time lasts less

[[Page 595]]

than four seconds, the time intervals must not exceed 0.2 seconds. The 
launch operator must provide the temporal trajectory data from launch up 
to a point in flight when effective thrust of the final stage 
terminates, or to thrust termination of the stage or burn that places 
the vehicle in orbit. For an unguided sub-orbital launch vehicle flown 
with a flight safety system, the launch operator must provide these data 
for each nominal quadrant launcher elevation angle and payload weight. 
The launch operator must provide these data on paper in text format and 
electronically in ASCII text, space delimited format. The launch 
operator must provide an electronic ``read-me'' file that identifies the 
data and their units of measure in the individual disk files.
    (i) Trajectory time-after-liftoff. A launch operator must provide 
trajectory time-after liftoff measured from first motion of the first 
thrusting stage of the launch vehicle. The tabulated data must identify 
the first motion time as T-0 and as the ``0.0'' time point on the 
trajectory.
    (ii) Launch vehicle direction cosines. A launch operator must 
provide the direction cosines of the roll axis, pitch axis, and yaw axis 
of the launch vehicle. The roll axis is a line identical to the launch 
vehicle's longitudinal axis with its origin at the nominal center of 
gravity positive towards the vehicle nose. The roll plane is normal to 
the roll axis at the vehicle's nominal center of gravity. The yaw axis 
and the pitch axis are any two orthogonal axes lying in the roll plane. 
The launch operator must provide roll, pitch and yaw axes of right-
handed systems so that, when looking along the roll axis toward the 
nose, a clockwise rotation around the roll axis will send the pitch axis 
toward the yaw axis. The right-handed system must be oriented so that 
the yaw axis is positive in the downrange direction while in the 
vertical position (roll axis upward from surface) or positive at an 
angle of 180 degrees to the downrange direction. The axis may be related 
to the vehicle's normal orientation with respect to the vehicle's 
trajectory but, once defined, remain fixed with respect to the vehicle's 
body. The launch operator must indicate the positive direction of the 
yaw axis chosen. The analysis products must present the direction 
cosines using the EFG reference system described in paragraph (g)(7)(iv) 
of this section.
    (iii) X, Y, Z, XD, YD, ZD trajectory coordinates. A launch operator 
must provide the launch vehicle position coordinates (X, Y, Z) and 
velocity magnitudes (XD, YD, ZD) referenced to an orthogonal, Earth-
fixed, right-handed coordinate system. The XY plane must be tangent to 
the ellipsoidal Earth at the origin, which must coincide with the launch 
point. The positive X-axis must coincide with the launch azimuth. The 
positive Z-axis must be directed away from the ellipsoidal Earth. The Y-
axis must be positive to the left looking downrange.
    (iv) E, F, G, ED, FD, GD trajectory coordinates. A launch operator 
must provide the launch vehicle position coordinates (E, F, G) and 
velocity magnitudes (ED, FD, GD) referenced to an orthogonal, Earth 
fixed, Earth centered, right-handed coordinate system. The origin of the 
EFG system must be at the center of the reference ellipsoid. The E and F 
axes must lie in the plane of the equator and the G-axis coincides with 
the rotational axis of the Earth. The E-axis must be positive through 
0[deg] East longitude (Greenwich Meridian), the F-axis positive through 
90' East longitude, and the G-axis positive through the North Pole. This 
system must be non-inertial and rotate with the Earth.
    (v) Resultant Earth-fixed velocity. A launch operator must provide 
the square root of the sum of the squares of the XD, YD, and ZD 
components of the trajectory state vector.
    (vi) Path angle of velocity vector. A launch operator must provide 
the angle between the local horizontal plane and the velocity vector 
measured positive upward from the local horizontal. The local horizontal 
must be a plane tangent to the ellipsoidal Earth at the sub-vehicle 
point.
    (vii) Sub-vehicle point. A launch operator must provide sub-vehicle 
point coordinates that include present position geodetic latitude and 
present position longitude. These coordinates must be at each trajectory 
time on the surface of the ellipsoidal Earth model and located at the 
intersection of the line normal to the ellipsoid and passing through the 
launch vehicle center of gravity.
    (viii) Altitude. A launch operator must provide the distance from 
the sub-vehicle point to the launch vehicle's center of gravity.
    (ix) Present position arc-range. A launch operator must provide the 
distance measured along the surface of the reference ellipsoid, from the 
launch point to the sub-vehicle point.
    (x) Total weight. A launch operator must provide the sum of the 
inert and propellant weights for each time point on the trajectory.
    (xi) Total vacuum thrust. A launch operator must provide the total 
vacuum thrust for each time point on the trajectory.
    (xii) Instantaneous impact point data. A launch operator must 
provide instantaneous impact point geodetic latitude, instantaneous 
impact point longitude, instantaneous impact point arc-range, and time 
to instantaneous impact. The instantaneous impact point arc-range must 
consist of the distance, measured along the surface of the reference 
ellipsoid, from the launch point to the instantaneous impact point. For 
each point on the trajectory, the time to instantaneous impact must 
consist of the vacuum flight time remaining until impact if all thrust

[[Page 596]]

were terminated at the time point on the trajectory.
    (xiii) Normal trajectory distribution. A launch operator must 
provide a description of the distribution of the dispersed trajectories 
required under paragraph (d) of this section, such as the elements of 
covariance matrices for the launch vehicle position coordinates and 
velocity component magnitudes.

                         A417.9 Malfunction turn

    (a) General. A flight safety analysis must include a malfunction 
turn analysis that satisfies the requirements of Sec. 417.209. This 
section applies to the computation of the malfunction turns and the 
production of turn data required by Sec. 417.209 and to the malfunction 
turn analysis products that a launch operator must file with the FAA as 
required by Sec. 417.203(e).
    (b) Malfunction turn analysis constraints. The following constraints 
apply to a malfunction turn analysis:
    (1) The analysis must produce malfunction turns that start at a 
given malfunction start time. The turn must last no less than 12 
seconds. These duration limits apply regardless of whether or not the 
vehicle would breakup or tumble before the prescribed duration of the 
turn.
    (2) A malfunction turn analysis must account for the thrusting 
periods of flight along a nominal trajectory beginning at first motion 
until thrust termination of the final thrusting stage or until the 
launch vehicle achieves orbit, whichever occurs first.
    (3) A malfunction turn must consist of a 90-degree turn or a turn in 
both the pitch and yaw planes that would produce the largest deviation 
from the nominal instantaneous impact point of which the launch vehicle 
is capable at any time during the malfunction turn as required by 
paragraph (d) of this section.
    (4) The first malfunction turn must start at liftoff. The analysis 
must account for subsequent malfunction turns initiated at regular 
nominal trajectory time intervals not to exceed four seconds.
    (5) A malfunction turn analysis must produce malfunction turn data 
for time intervals of no less than one second over the duration of each 
malfunction turn.
    (6) The analysis must assume that the launch vehicle performance is 
nominal up to the point of the malfunction that produces the turn.
    (7) A malfunction turn analysis must not account for the effects of 
gravity.
    (8) A malfunction turn analysis must ensure the tumble turn envelope 
curve maintains a positive slope throughout the malfunction turn 
duration as illustrated in figure A417.9-1. When calculating a tumble 
turn for an aerodynamically unstable launch vehicle, in the high 
aerodynamic region it often turns out that no matter how small the 
initial deflection of the rocket engine, the airframe tumbles through 
180 degrees, or one-half cycle, in less time than the required turn 
duration period. In such a case, the analysis must use a 90-degree turn 
as the malfunction turn.
    (c) Failure modes. A malfunction turn analysis must account for the 
significant failure modes that result in a thrust vector offset from the 
nominal state. If a malfunction turn at a malfunction start time can 
occur as a function of more than one failure mode, the analysis must 
account for the failure mode that causes the most rapid and largest 
launch vehicle instantaneous impact point deviation.
    (d) Type of malfunction turn. A malfunction turn analysis must 
establish the maximum turning capability of a launch vehicle's velocity 
vector during each malfunction turn by accounting for a 90-degree turn 
to estimate the vehicle's turning capability or by accounting for trim 
turns and tumble turns in both the pitch and yaw planes to establish the 
vehicle's turning capability. When establishing the turning capability 
of a launch vehicle's velocity vector, the analysis must account for 
each turn as follows:
    (1) 90-degree turn. A 90-degree turn must constitute a turn produced 
at the malfunction start time by instantaneously re-directing and 
maintaining the vehicle's thrust at 90 degrees to the velocity vector, 
without regard for how this situation can be brought about.
    (2) Pitch turn. A pitch turn must constitute the angle turned by the 
launch vehicle's total velocity vector in the pitch-plane. The velocity 
vector's pitch-plane must be the two dimensional surface that includes 
the launch vehicle's yaw-axis and the launch vehicle's roll-axis.
    (3) Yaw turn. A yaw turn must constitute the angle turned by the 
launch vehicle's total velocity vector in the lateral plane. The 
velocity vector's lateral plane must be the two dimensional surface that 
includes the launch vehicle's pitch axis and the launch vehicle's total 
velocity.
    (4) Trim turn. A trim turn must constitute a turn where a launch 
vehicle's thrust moment balances the aerodynamic moment while a constant 
rotation rate is imparted to the launch vehicle's longitudinal axis. The 
analysis must account for a maximum-rate trim turn made at or near the 
greatest angle of attack that can be maintained while the aerodynamic 
moment is balanced by the thrust moment, whether the vehicle is stable 
or unstable.
    (5) Tumble turn. A tumble turn must constitute a turn that results 
if the launch vehicle's airframe rotates in an uncontrolled fashion, at 
an angular rate that is brought about by a thrust vector offset angle, 
and if the offset angle is held constant throughout

[[Page 597]]

the turn. The analysis must account for a series of tumble turns, each 
turn with a different thrust vector offset angle, that are plotted on 
the same graph for each malfunction start time.
    (6) Turn envelope. A turn envelope must constitute a curve on a 
tumble turn graph that has tangent points to each individual tumble turn 
curve computed for each malfunction start time. The curve must envelope 
the actual tumble turn curves to predict tumble turn angles for each 
area between the calculated turn curves. Figure A417.9-1 depicts a 
series of tumble turn curves and the tumble turn envelope curve.
    (7) Malfunction turn capabilities. When not using a 90-degree turn, 
a malfunction turn analysis must establish the launch vehicle maximum 
turning capability as required by the following malfunction turn 
constraints:
    (i) Launch vehicle stable at all angles of attack. If a launch 
vehicle is so stable that the maximum thrust moment that the vehicle 
could experience cannot produce tumbling, but produces a maximum-rate 
trim turn at some angle of attack less than 90 degrees, the analysis 
must produce a series of trim turns, including the maximum-rate trim 
turn, by varying the initial thrust vector offset at the beginning of 
the turn. If the maximum thrust moment results in a maximum-rate trim 
turn at some angle of attack greater than 90 degrees, the analysis must 
produce a series of trim turns for angles of attack up to and including 
90 degrees.
    (ii) Launch vehicle aerodynamically unstable at all angles of 
attack. If flying a trim turn is not possible even for a period of only 
a few seconds, the malfunction turn analysis need only establish tumble 
turns. Otherwise, the malfunction turn analysis must establish a series 
of trim turns, including the maximum-rate trim turn, and the family of 
tumble turns.
    (iii) Launch vehicle unstable at low angles of attack but stable at 
some higher angles of attack. If large engine deflections result in 
tumbling, and small engine deflections do not, the analysis must produce 
a series of trim and tumble turns as required by paragraph (d)(7)(ii) of 
this section for launch vehicles aerodynamically unstable at all angles 
of attack. If both large and small constant engine deflections result in 
tumbling, regardless of how small the deflection might be, the analysis 
must account for the malfunction turn capabilities achieved at the 
stability angle of attack, assuming no upsetting thrust moment, and must 
account for the turns achieved by a tumbling vehicle.
    (e) Malfunction turn analysis products. The products of a 
malfunction turn analysis that a launch operator must file with the FAA 
include:
    (1) A description of the assumptions, techniques, and equations used 
in deriving the malfunction turns.
    (2) A set of sample calculations for at least one flight hazard area 
malfunction start time and one downrange malfunction start time. The 
sample computation for the downrange malfunction must start at a time at 
least 50 seconds after the flight hazard area malfunction start time or 
at the time of nominal thrust termination of the final stage minus the 
malfunction turn duration.
    (3) A launch operator must file malfunction turn data in electronic 
tabular and graphic formats. The graphs must use scale factors such that 
the plotting and reading accuracy do not degrade the accuracy of the 
data. For each malfunction turn start time, a graph must use the same 
time scales for the malfunction velocity vector turn angle and 
malfunction velocity magnitude plot pairs. A launch operator must 
provide tabular listings of the data used to generate the graphs in 
digital ASCII file format. A launch operator must file the data items 
required in this paragraph for each malfunction start time and for time 
intervals that do not exceed one second for the duration of each 
malfunction turn.
    (i) Velocity turn angle graphs. A launch operator must file a 
velocity turn angle graph for each malfunction start time. For each 
velocity turn angle graph, the ordinate axis must represent the total 
angle turned by the velocity vector, and the abscissa axis must 
represent the time duration of the turn and must show increments not to 
exceed one second. The series of tumble turns must include the envelope 
of all tumble turn curves. The tumble turn envelope must represent the 
tumble turn capability for all possible constant thrust vector offset 
angles. Each tumble turn curve selected to define the envelope must 
appear on the same graph as the envelope. A launch operator must file a 
series of trim turn curves for representative values of thrust vector 
offset. The series of trim turn curves must include the maximum rate 
trim turn. Figure A417.9-1 depicts an example family of tumble turn 
curves and the tumble turn velocity vector envelope.

[[Page 598]]

[GRAPHIC] [TIFF OMITTED] TR25AU06.005

    (ii) Velocity magnitude graphs. A launch operator must file a 
velocity magnitude graph for each malfunction start time. For each 
malfunction velocity magnitude graph, the ordinate axis must represent 
the magnitude of the velocity vector and the abscissa axis must 
represent the time duration of the turn. Each graph must show the 
abscissa divided into increments not to exceed one second. Each graph 
must show the total velocity magnitude plotted as a function of time 
starting with the malfunction start time for each thrust vector offset 
used to define the corresponding velocity turn-angle curve. A launch 
operator must provide a corresponding velocity magnitude curve for each 
velocity tumble turn angle curve and each velocity trim-turn angle 
curve. For each individual tumble turn curve selected to define the 
tumble turn envelope, the corresponding velocity magnitude graph must 
show the individual tumble turn curve's point of tangency to the 
envelope. The point of tangency must consist of the point where the 
tumble turn envelope is tangent to an individual tumble turn curve 
produced with a discrete thrust vector offset angle. A launch operator 
must transpose the points of tangency to the velocity magnitude curves 
by plotting a point on the velocity magnitude curve at the same time 
point where tangency occurs on the corresponding velocity tumble-turn 
angle curve. Figure A417.9-2 depicts an example tumble turn velocity 
magnitude curve.

[[Page 599]]

[GRAPHIC] [TIFF OMITTED] TR25AU06.006

    (iii) Vehicle orientation. The launch operator must file tabular or 
graphical data for the vehicle orientation in the form of roll, pitch, 
and yaw angular orientation of the vehicle longitudinal axis as a 
function of time into the turn for each turn initiation time. Angular 
orientation of a launch vehicle's longitudinal axis is illustrated in 
figures A417.9-3 and A417.9-4.

[[Page 600]]

[GRAPHIC] [TIFF OMITTED] TR25AU06.007


[[Page 601]]


[GRAPHIC] [TIFF OMITTED] TR25AU06.008

    (iv) Onset conditions. A launch operator must provide launch vehicle 
state information for each malfunction start time. This state data must 
include the launch vehicle thrust, weight, velocity magnitude and pad-
centered topocentric X, Y, Z, XD, YD, ZD state vector.
    (v) Breakup information. A launch operator must specify whether its 
launch vehicle will remain intact throughout each malfunction turn. If 
the launch vehicle will break up during a turn, the launch operator must 
identify the time for launch vehicle breakup on each velocity magnitude 
graph. The launch operator must show the time into the turn at which 
vehicle breakup would occur as either a specific value or a probability 
distribution for time until breakup.
    (vi) Inflection point. A launch operator must identify the 
inflection point on each tumble turn envelope curve and maximum rate 
trim turn curve for each malfunction start time as illustrated in figure 
A417.9-1. The inflection point marks the point in time during the turn 
where the slope of the curve stops increasing and begins to decrease or, 
in other words, the point were the concavity of the curve changes from 
concave up to concave down. The inflection point on a malfunction turn 
curve must identify the time in the malfunction turn that the launch 
vehicle body achieves a 90-degree rotation from the nominal position. On 
a tumble turn curve the inflection point must represent the start of the 
launch vehicle tumble.

                             A417.11 Debris

    (a) General. A flight safety analysis must include a debris analysis 
that satisfies the requirements of Sec. 417.211. This section applies 
to the debris data required by Sec. 417.211 and the debris analysis 
products that a launch operator must file with the FAA as required by 
Sec. 417.203(e).
    (b) Debris analysis constraints. A debris analysis must produce the 
debris model described in paragraph (c) of this section. The analysis 
must account for all launch vehicle debris fragments, individually or in 
groupings of fragments called classes. The characteristics of each 
debris fragment represented by a class must be similar enough to the 
characteristics of all the other debris fragments represented by that 
class that all the debris fragments of the class can be described by a 
single set of characteristics. Paragraph (c)(10) of this section applies 
when establishing a debris class. A debris model

[[Page 602]]

must describe the physical, aerodynamic, and harmful characteristics of 
each debris fragment either individually or as a member of a class. A 
debris model must consist of lists of individual debris or debris 
classes for each cause of breakup and any planned jettison of debris, 
launch vehicle components, or payload. A debris analysis must account 
for:
    (1) Launch vehicle breakup caused by the activation of any flight 
termination system. The analysis must account for:
    (i) The effects of debris produced when flight termination system 
activation destroys an intact malfunctioning vehicle.
    (ii) Spontaneous breakup of the launch vehicle, if the breakup is 
assisted by the action of any inadvertent separation destruct system.
    (iii) The effects of debris produced by the activation of any flight 
termination system after inadvertent breakup of the launch vehicle.
    (2) Debris due to any malfunction where forces on the launch vehicle 
may exceed the launch vehicle's structural integrity limits.
    (3) The immediate post-breakup or jettison environment of the launch 
vehicle debris, and any change in debris characteristics over time from 
launch vehicle breakup or jettison until debris impact.
    (4) The impact overpressure, fragmentation, and secondary debris 
effects of any confined or unconfined solid propellant chunks and fueled 
components containing either liquid or solid propellants that could 
survive to impact, as a function of vehicle malfunction time.
    (5) The effects of impact of the intact vehicle as a function of 
failure time. The intact impact debris analysis must identify the 
trinitrotoluene (TNT) yield of impact explosions, and the numbers of 
fragments projected from all such explosions, including non-launch 
vehicle ejecta and the blast overpressure radius. The analysis must use 
a model for TNT yield of impact explosion that accounts for the 
propellant weight at impact, the impact speed, the orientation of the 
propellant, and the impacted surface material.
    (c) Debris model. A debris analysis must produce a model of the 
debris resulting from planned jettison and from unplanned breakup of a 
launch vehicle for use as input to other analyses, such as establishing 
flight safety limits and hazard areas and performing debris risk, toxic, 
and blast analyses. A launch operator's debris model must satisfy the 
following:
    (1) Debris fragments. A debris model must provide the debris 
fragment data required by this section for the launch vehicle flight 
from the planned ignition time until the launch vehicle achieves orbital 
velocity for an orbital launch. For a sub-orbital launch, the debris 
model must provide the debris fragment data required by this section for 
the launch vehicle flight from the planned ignition time until impact of 
the last thrusting stage. A debris model must provide debris fragment 
data for the number of time periods sufficient to meet the requirements 
for smooth and continuous contours used to define hazard areas as 
required by section A417.23.
    (2) Inert fragments. A debris model must identify all inert 
fragments that are not volatile and that do not burn or explode under 
normal and malfunction conditions. A debris model must identify all 
inert fragments for each breakup time during flight corresponding to a 
critical event when the fragment catalog is significantly changed by the 
event. Critical events include staging, payload fairing jettison, and 
other normal hardware jettison activities.
    (3) Explosive and non-explosive propellant fragments. A debris model 
must identify all propellant fragments that are explosive or non-
explosive upon impact. The debris model must describe each propellant 
fragment as a function of time, from the time of breakup through 
ballistic free-fall to impact. The debris model must describe the 
characteristics of each fragment, including its origin on the launch 
vehicle, representative dimensions and weight at the time of breakup and 
at the time of impact. For any fragment identified as an un-contained or 
contained propellant fragment, whether explosive or non-explosive, the 
debris model must identify whether or not it burns during free fall, and 
provide the consumption rate during free fall. The debris model must 
identify:
    (i) Solid propellant that is exposed directly to the atmosphere and 
that burns but does not explode upon impact as ``un-contained non-
explosive solid propellant.''
    (ii) Solid or liquid propellant that is enclosed in a container, 
such as a motor case or pressure vessel, and that burns but does not 
explode upon impact as ``contained non-explosive propellant.''
    (iii) Solid or liquid propellant that is enclosed in a container, 
such as a motor case or pressure vessel, and that explodes upon impact 
as ``contained explosive propellant fragment.''
    (iv) Solid propellant that is exposed directly to the atmosphere and 
that explodes upon impact as ``un-contained explosive solid propellant 
fragment.''
    (4) Other non-inert debris fragments. In addition to the explosive 
and flammable fragments required by paragraph (c)(3) of this section, a 
debris model must identify any other non-inert debris fragments, such as 
toxic or radioactive fragments, that present any other hazards to the 
public.
    (5) Fragment weight. At each modeled breakup time, the individual 
fragment weights must approximately add up to the

[[Page 603]]

sum total weight of inert material in the vehicle and the weight of 
contained liquid propellants and solid propellants that are not consumed 
in the initial breakup or conflagration.
    (6) Fragment imparted velocity. A debris model must identify the 
maximum velocity imparted to each fragment due to potential explosion or 
pressure rupture. When accounting for imparted velocity, a debris model 
must:
    (i) Use a Maxwellian distribution with the specified maximum value 
equal to the 97th percentile; or
    (ii) Identify the distribution, and must state whether or not the 
specified maximum value is a fixed value with no uncertainty.
    (7) Fragment projected area. A debris model must include each of the 
axial, transverse, and mean tumbling areas of each fragment. If the 
fragment may stabilize under normal or malfunction conditions, the 
debris model must also provide the projected area normal to the drag 
force.
    (8) Fragment ballistic coefficient. A debris model must include the 
axial, transverse, and tumble orientation ballistic coefficient for each 
fragment's projected area as required by paragraph (c)(7) of this 
section.
    (9) Debris fragment count. A debris model must include the total 
number of each type of fragment required by paragraphs (c)(2), (c)(3), 
and (c)(4) of this section and created by a malfunction.
    (10) Fragment classes. A debris model must categorize each 
malfunction debris fragment into classes where the characteristics of 
the mean fragment in each class conservatively represent every fragment 
in the class. The model must define fragment classes for fragments whose 
characteristics are similar enough to be described and treated by a 
single average set of characteristics. A debris class must categorize 
debris by each of the following characteristics, and may include any 
other useful characteristics:
    (i) The type of fragment, defined by paragraphs (c)(2), (c)(3), and 
(c)(4) of this section. All fragments within a class must be the same 
type, such as inert or explosive.
    (ii) Debris subsonic ballistic coefficient ([beta]sub). 
The difference between the smallest log10([beta]sub) value 
and the largest log10([beta]sub) value in a class must not 
exceed 0.5, except for fragments with [beta]sub less than or 
equal to three. Fragments with [beta]sub less than or equal 
to three may be grouped within a class.
    (iii) Breakup-imparted velocity ([Delta]V). A debris model must 
categorize fragments as a function of the range of [Delta]V for the 
fragments within a class and the class's median subsonic ballistic 
coefficient. For each class, the debris model must keep the ratio of the 
maximum breakup-imparted velocity ([Delta]Vmax) to minimum 
breakup-imparted velocity ([Delta]Vmin) within the following 
bound:
[GRAPHIC] [TIFF OMITTED] TR25AU06.106

    Where: [beta][min]sub is the median subsonic ballistic 
coefficient for the fragments in a class.
    (d) Debris analysis products. The products of a debris analysis that 
a launch operator must file with the FAA include:
    (1) Debris model. The launch operator's debris model that satisfies 
the requirements of this section.
    (2) Fragment description. A description of the fragments contained 
in the launch operator's debris model. The description must identify the 
fragment as a launch vehicle part or component, describe its shape, 
representative dimensions, and may include drawings of the fragment.
    (3) Intact impact TNT yield. For an intact impact of a launch 
vehicle, for each failure time, a launch operator must identify the TNT 
yield of each impact explosion and blast overpressure hazard radius.
    (4) Fragment class data. The class name, the range of values for 
each parameter used to categorize fragments within a fragment class, and 
the number of fragments in any fragment class established as required by 
paragraph (c)(10) of this section.
    (5) Ballistic coefficient. The mean ballistic coefficient ([beta]) 
and plus and minus three-sigma values of the [beta] for each fragment 
class. A launch operator must provide graphs of the coefficient of drag 
(Cd) as a function of Mach number for the nominal and three-
sigma [beta] variations for each fragment shape. The launch operator 
must label each graph with the shape represented by the curve and 
reference area used to develop the curve. A launch operator must provide 
a Cd vs. Mach curve for any axial, transverse, and tumble 
orientations for any fragment that will not stabilize during free-fall 
conditions. For any fragment that may stabilize during free-fall, a 
launch operator must provide Cd vs. Mach curves for the 
stability angle of attack. If the angle of attack where the fragment 
stabilizes is other than zero degrees, a launch operator must provide 
both the coefficient of lift (CL) vs. Mach number and the 
Cd vs. Mach number curves. The launch operator must provide 
the equations for each Cd vs. Mach curve.
    (6) Pre-flight propellant weight. The initial preflight weight of 
solid and liquid propellant for each launch vehicle component that 
contains solid or liquid propellant.
    (7) Normal propellant consumption. The nominal and plus and minus 
three-sigma solid and liquid propellant consumption rate, and pre-
malfunction consumption rate for each component that contains solid or 
liquid propellant.

[[Page 604]]

    (8) Fragment weight. The mean and plus and minus three-sigma weight 
of each fragment or fragment class.
    (9) Projected area. The mean and plus and minus three-sigma axial, 
transverse, and tumbling areas for each fragment or fragment class. This 
information is not required for those fragment classes classified as 
burning propellant classes under section A417.25(b)(8).
    (10) Imparted velocities. The maximum incremental velocity imparted 
to each fragment class created by flight termination system activation, 
or explosive or overpressure loads at breakup. The launch operator must 
identify the velocity distribution as Maxwellian or must define the 
distribution, including whether or not the specified maximum value is a 
fixed value with no uncertainty.
    (11) Fragment type. The fragment type for each fragment established 
as required by paragraphs (c)(2), (c)(3), and (c)(4) of this section.
    (12) Origin. The part of the launch vehicle from which each fragment 
originated.
    (13) Burning propellant classes. The propellant consumption rate for 
those fragments that burn during free-fall.
    (14) Contained propellant fragments, explosive or non-explosive. For 
contained propellant fragments, whether explosive or non-explosive, a 
launch operator must provide the initial weight of contained propellant 
and the consumption rate during free-fall. The initial weight of the 
propellant in a contained propellant fragment is the weight of the 
propellant before any of the propellant is consumed by normal vehicle 
operation or failure of the launch vehicle.
    (15) Solid propellant fragment snuff-out pressure. The ambient 
pressure and the pressure at the surface of a solid propellant fragment, 
in pounds per square inch, required to sustain a solid propellant 
fragment's combustion during free-fall.
    (16) Other non-inert debris fragments. For each non-inert debris 
fragment identified as required by paragraph (c)(4) of this section, a 
launch operator must describe the diffusion, dispersion, deposition, 
radiation, and other hazard exposure characteristics used to determine 
the effective casualty area required by paragraph (d)(13) of this 
section.
    (17) Residual thrust dispersion. For each thrusting or non-thrusting 
stage having residual thrust capability following a launch vehicle 
malfunction, a launch operator must provide either the total residual 
impulse imparted or the full-residual thrust as a function of breakup 
time. For any stage not capable of thrust after a launch vehicle 
malfunction, a launch operator must provide the conditions under which 
the stage is no longer capable of thrust. For each stage that can be 
ignited as a result of a launch vehicle malfunction on a lower stage, a 
launch operator must identify the effects and duration of the potential 
thrust, and the maximum deviation of the instantaneous impact point, 
which can be brought about by the thrust. A launch operator must provide 
the explosion effects of all remaining fuels, pressurized tanks, and 
remaining stages, particularly with respect to ignition or detonation of 
upper stages if the flight termination system is activated during the 
burning period of a lower stage.

                      A417.13 Flight safety limits.

    (a) General. A flight safety analysis must include a flight safety 
limits analysis that satisfies the requirements of Sec. 417.213. This 
section applies to the computation of the flight safety limits and 
identifying the location of populated or other protected areas as 
required by Sec. 417.213 and to the analysis products that the launch 
operator must file with the FAA as required by Sec. 417.203(e).
    (b) Flight safety limits constraints. The analysis must establish 
flight safety limits as follows:
    (1) Flight safety limits must account for potential malfunction of a 
launch vehicle during the time from launch vehicle first motion through 
flight until the planned safe flight state determined as required by 
section A417.19.
    (2) For a flight termination at any time during launch vehicle 
flight, the impact limit lines must:
    (i) Represent no less than the extent of the debris impact 
dispersion for all debris fragments with a ballistic coefficient greater 
than or equal to three; and
    (ii) Ensure that the debris impact area on the Earth's surface that 
is bounded by the debris impact dispersion in the uprange, downrange and 
crossrange directions does not extend to any populated or other 
protected area.
    (3) Each debris impact area determined by a flight safety limits 
analysis must be offset in a direction away from populated or other 
protected areas. The size of the offset must account for all parameters 
that may contribute to the impact dispersion. The parameters must 
include:
    (i) Launch vehicle malfunction turn capabilities.
    (ii) Effective casualty area produced as required by section 
A417.25(b)(8).
    (iii) All delays in the identification of a launch vehicle 
malfunction.
    (iv) Malfunction imparted velocities, including any velocity 
imparted to vehicle fragments by breakup.
    (v) Wind effects on the malfunctioning vehicle and falling debris.
    (vi) Residual thrust remaining after flight termination.
    (vii) Launch vehicle guidance and performance errors.

[[Page 605]]

    (viii) Lift and drag forces on the malfunctioning vehicle and 
falling debris including variations in drag predictions of fragments and 
debris.
    (ix) All hardware and software delays during implementation of 
flight termination.
    (x) All debris impact location uncertainties caused by conditions 
prior to, and after, activation of the flight termination system.
    (xi) Any other impact dispersion parameters peculiar to the launch 
vehicle.
    (xii) All uncertainty due to map error and launch vehicle tracking 
error.
    (c) Risk management. The requirements for public risk management of 
Sec. 417.205(a) apply to a flight safety limits analysis. When 
employing risk assessment, the analysis must establish flight safety 
limits that satisfy paragraph (b) of this section, account for the 
products of the debris risk analysis performed as required by section 
A417.25, and ensure that any risk to the public satisfies the public 
risk criteria of Sec. 417.107(b). When employing hazard isolation, the 
analysis must establish flight safety limits in accordance with the 
following:
    (1) The flight safety limits must account for the maximum deviation 
impact locations for the most wind sensitive debris fragment with a 
minimum of 11 ft-lbs of kinetic energy at impact.
    (2) The maximum deviation impact location of the debris identified 
in paragraph (c)(1) of this section for each trajectory time must 
account for the three-sigma impact location for the maximum deviation 
flight, and the launch day wind conditions that produce the maximum 
ballistic wind for that debris.
    (3) The maximum deviation flight must account for the instantaneous 
impact point, of the debris identified in paragraph (c)(1) of this 
section at breakup, that is closest to a protected area and the maximum 
ballistic wind directed from the breakup point toward that protected 
area.
    (d) Flight safety limits analysis products. The products of a flight 
safety limits analysis that a launch operator must file with the FAA 
include:
    (1) A description of each method used to develop and implement the 
flight safety limits. The description must include equations and example 
computations used in the flight safety limits analysis.
    (2) A description of how each analysis method meets the analysis 
requirements and constraints of this section, including how the method 
produces a worst-case scenario for each impact dispersion area.
    (3) A description of how the results of the analysis are used to 
protect populated and other protected areas.
    (4) A graphic depiction or series of depictions of the flight safety 
limits, the launch point, all launch site boundaries, surrounding 
geographic area, all protected area boundaries, and the nominal and 
three-sigma launch vehicle instantaneous impact point ground traces from 
liftoff to orbital insertion or the end of flight. Each depiction must 
have labeled geodetic latitude and longitude lines. Each depiction must 
show the flight safety limits at trajectory time intervals sufficient to 
depict the mission success margin between the flight safety limits and 
the protected areas. The launch vehicle trajectory instantaneous impact 
points must be plotted with sufficient frequency to provide a conformal 
representation of the launch vehicle's instantaneous impact point ground 
trace curvature.
    (5) A tabular description of the flight safety limits, including the 
geodetic latitude and longitude for any flight safety limit. The table 
must contain quantitative values that define flight safety limits. Each 
quantitative value must be rounded to the number of significant digits 
that can be determined from the uncertainty of the measurement device 
used to determine the flight safety limits and must be limited to a 
maximum of six decimal places.
    (6) A map error table of direction and scale distortions as a 
function of distance from the point of tangency from a parallel of true 
scale and true direction or from a meridian of true scale and true 
direction. A launch operator must provide a table of tracking error as a 
function of downrange distance from the launch point for each tracking 
station used to make flight safety control decisions. A launch operator 
must file a description of the method, showing equations and sample 
calculations, used to determine the tracking error. The table must 
contain the map and tracking error data points within 100 nautical miles 
of the reference point at an interval of one data point every 10 
nautical miles, including the reference point. The table must contain 
map and tracking error data points beyond 100 nautical miles from the 
reference point at an interval of one data point every 100 nautical 
miles out to a distance that includes all populated or other areas 
protected by the flight safety limits.
    (7) A launch operator must provide the equations used for geodetic 
datum conversions and one sample calculation for converting the geodetic 
latitude and longitude coordinates between the datum ellipsoids used. A 
launch operator must provide any equations used for range and bearing 
computations between geodetic coordinates and one sample calculation.

                        A417.15 Straight-up time

    (a) General. A flight safety analysis must include a straight-up 
time analysis that satisfies the requirements of Sec. 417.215. This 
section applies to the computation of straight-up time as required by 
Sec. 417.215 and to the analysis products that the launch operator must 
file with the FAA as required by

[[Page 606]]

Sec. 417.203(e). The analysis must establish a straight-up time as the 
latest time-after-liftoff, assuming a launch vehicle malfunctioned and 
flew in a vertical or near vertical direction above the launch point, at 
which activation of the launch vehicle's flight termination system or 
breakup of the launch vehicle would not cause hazardous debris or 
critical overpressure to affect any populated or other protected area.
    (b) Straight-up time constraints. A straight-up time analysis must 
account for the following:
    (1) Launch vehicle trajectory. The analysis must use the straight-up 
trajectory determined as required by section A417.7(e).
    (2) Sources of debris impact dispersion. The analysis must use the 
sources described in section A417.13(b)(3)(iii) through (xii).
    (c) Straight-up time analysis products. The products of a straight-
up-time analysis that a launch operator must file with the FAA include:
    (1) The straight-up-time.
    (2) A description of the methodology used to determine straight-up 
time.

                         A417.17 Overflight gate

    (a) General. The flight safety analysis for a launch that involves 
flight over a populated or other protected area must include an 
overflight gate analysis that satisfies the requirements of Sec. 
417.217. This section applies to determining a gate as required by Sec. 
417.217 and the analysis products that the launch operator must file 
with the FAA as required by Sec. 417.203(e). The analysis must 
determine the portion, referred to as a gate, of a flight safety limit, 
through which a launch vehicle's tracking representation will be allowed 
to proceed without flight termination.
    (b) Overflight gate analysis constraints. The following analysis 
constraints apply to a gate analysis.
    (1) For each gate in a flight safety limit, all the criteria used 
for determining whether to allow passage through the gate or to 
terminate flight at the gate must use all the same launch vehicle flight 
status parameters as the criteria used for determining whether to 
terminate flight at a flight safety limit. For example, if the flight 
safety limits are a function of instantaneous impact point location, the 
criteria for determining whether to allow passage through a gate in the 
flight safety limit must also be a function of instantaneous impact 
point location. Likewise, if the flight safety limits are a function of 
drag impact point, the gate criteria must also be a function of drag 
impact point.
    (2) When establishing a gate in a flight safety limit, the analysis 
must ensure that the launch vehicle flight satisfies the flight safety 
requirements of Sec. 417.107.
    (3) For each established gate, the analysis must account for:
    (i) All launch vehicle tracking and map errors.
    (ii) All launch vehicle plus and minus three-sigma trajectory 
limits.
    (iii) All debris impact dispersions.
    (4) The width of a gate must restrict a launch vehicle's normal 
trajectory ground trace.
    (c) Overflight gate analysis products. The products of a gate 
analysis that a launch operator must file with the FAA include:
    (1) A description of the methodology used to establish each gate.
    (2) A description of the tracking representation.
    (3) A tabular description of the input data.
    (4) Example analysis computations performed to determine a gate. If 
a launch involves more than one gate and the same methodology is used to 
determine each gate, the launch operator need only file the computations 
for one of the gates.
    (5) A graphic depiction of each gate. A launch operator must provide 
a depiction or depictions showing flight safety limits, protected area 
outlines, nominal and 3-sigma left and right trajectory ground traces, 
protected area overflight regions, and predicted impact dispersion about 
the three-sigma trajectories within the gate. Each depiction must show 
latitude and longitude grid lines, gate latitude and longitude labels, 
and the map scale.

       A417.19 Data loss flight time and planned safe flight state

    (a) General. A flight safety analysis must include a data loss 
flight time analysis that satisfies the requirements of Sec. 417.219. 
This section applies to the computation of data loss flight times and 
the planned safe flight state required by Sec. 417.219, and to the 
analysis products that the launch operator must file with the FAA as 
required by Sec. 417.203(e).
    (b) Planned safe flight state. The analysis must establish a planned 
safe flight state for a launch as follows:
    (1) For a suborbital launch, the analysis must determine a planned 
safe flight state as the nominal state vector after liftoff that a 
launch vehicle's hazardous debris impact dispersion can no longer reach 
any protected area.
    (2) For an orbital launch where the launch vehicle's instantaneous 
impact point does not traverse a protected area prior to reaching orbit, 
the analysis must establish the planned safe flight state as the time 
after liftoff that the launch vehicle's hazardous debris impact 
dispersion can no longer reach any protected area or orbital insertion, 
whichever occurs first.
    (3) For an orbital launch where a gate permits overflight of a 
protected area and where orbital insertion occurs after reaching the 
gate, the analysis must determine the planned safe flight state as the 
time after

[[Page 607]]

liftoff when the time for the launch vehicle's instantaneous impact 
point to reach the gate is less than the time for the instantaneous 
impact point to reach any flight safety limit.
    (4) The analysis must account for a malfunction that causes the 
launch vehicle to proceed from its position at the trajectory time being 
evaluated toward the closest flight safety limit and protected area.
    (5) The analysis must account for the launch vehicle thrust vector 
that produces the highest instantaneous impact point range rate that the 
vehicle is capable of producing at the trajectory time being evaluated.
    (c) Data loss flight times. For each launch vehicle trajectory time, 
from the predicted earliest launch vehicle tracking acquisition time 
until the planned safe flight state, the analysis must determine the 
data loss flight time as follows:
    (1) The analysis must determine each data loss flight time as the 
minimum thrusting time for a launch vehicle to move from a normal 
trajectory position to a position where a flight termination would cause 
the malfunction debris impact dispersion to reach any protected area.
    (2) A data loss flight time analysis must account for a malfunction 
that causes the launch vehicle to proceed from its position at the 
trajectory time being evaluated toward the closest flight safety limit 
and protected area.
    (3) The analysis must account for the launch vehicle thrust vector 
that produces the highest instantaneous impact point range rate that the 
vehicle is capable of producing at the trajectory time being evaluated.
    (4) Each data loss flight time must account for the system delays at 
the time of flight.
    (5) The analysis must determine a data loss flight time for time 
increments that do not exceed one second along the launch vehicle 
nominal trajectory.
    (d) Products. The products of a data loss flight time and planned 
safe flight state analysis that a launch operator must file include:
    (1) A launch operator must describe the methodology used in its 
analysis, and identify all assumptions, techniques, input data, and 
equations used. A launch operator must file calculations performed for 
one data loss flight time in the vicinity of the launch site and one 
data loss flight time that is no less than 50 seconds later in the 
downrange area.
    (2) A launch operator must file a graphical description or 
depictions of the flight safety limits, the launch point, the launch 
site boundaries, the surrounding geographic area, any protected areas, 
the planned safe flight state within any applicable scale requirements, 
latitude and longitude grid lines, and launch vehicle nominal and three-
sigma instantaneous impact point ground traces from liftoff through 
orbital insertion for an orbital launch, and through final impact for a 
suborbital launch. Each graph must show any launch vehicle trajectory 
instantaneous impact points plotted with sufficient frequency to provide 
a conformal estimate of the launch vehicle's instantaneous impact point 
ground trace curvature. A launch operator must provide labeled latitude 
and longitude lines and the map scale on the depiction.
    (3) A launch operator must provide a tabular description of each 
data loss flight time. The tabular description must include the 
malfunction start time and the geodetic latitude (positive north of the 
equator) and longitude (positive east of the Greenwich Meridian) 
coordinates of the intersection of the launch vehicle instantaneous 
impact point trajectory with the flight safety limit. The table must 
identify the first data lost flight time and planned safe flight state. 
The tabular description must include data loss flight times for 
trajectory time increments not to exceed one second.

                           A417.21 Time delay

    (a) General. A flight safety analysis must include a time delay 
analysis that satisfies the requirements of Sec. 417.221. This section 
applies to the computation of time delays associated with a flight 
safety system and other launch vehicle systems and operations as 
required by Sec. 417.221 and to the analysis products that the launch 
operator must file with the FAA as required by Sec. 417.203(e).
    (b) Time delay analysis constraints. The analysis must account for 
all significant causes of time delay between the violation of a flight 
termination rule and the time when a flight safety system is capable of 
terminating flight as follows:
    (1) The analysis must account for decision and reaction times, 
including variation in human response time, for flight safety official 
and other personnel that are part of a launch operator's flight safety 
system as defined by subpart D of this part.
    (2) The analyses must determine the time delay inherent in any data, 
from any source, used by a flight safety official for making flight 
termination decisions.
    (3) A time delay analysis must account for all significant causes of 
time delay, including data flow rates and reaction times, for hardware 
and software, including, but not limited to the following:
    (i) Tracking system. A time delay analysis must account for time 
delays between the launch vehicle's current location and last known 
location and that are associated with the hardware and software that 
make up the launch vehicle tracking system, whether or not it is located 
on the launch vehicle, such as transmitters, receivers, decoders, 
encoders, modulators, circuitry and any encryption and decryption of 
data.

[[Page 608]]

    (ii) Display systems. A time delay analysis must account for delays 
associated with hardware and software that make up any display system 
used by a flight safety official to aid in making flight control 
decisions. A time delay analysis must also account for any manual 
operations requirements, tracking source selection, tracking data 
processing, flight safety limit computations, inherent display delays, 
meteorological data processing, automated or manual system configuration 
control, automated or manual process control, automated or manual 
mission discrete control, and automated or manual fail over decision 
control.
    (iii) Flight termination system and command control system. A time 
delay analysis must account for delays and response times associated 
with flight termination system and command control system hardware and 
software, such as transmitters, decoders, encoders, modulators, relays 
and shutdown, arming and destruct devices, circuitry and any encryption 
and decryption of data.
    (iv) Software specific time delays. A delay analysis must account 
for delays associated with any correlation of data performed by 
software, such as timing and sequencing; data filtering delays such as 
error correction, smoothing, editing, or tracking source selection; data 
transformation delays; and computation cycle time.
    (4) A time delay analysis must determine the time delay plus and 
minus three-sigma values relative to the mean time delay.
    (5) For use in any risk analysis, a time delay analysis must 
determine time delay distributions that account for the variance of time 
delays for potential launch vehicle failure, including but not limited 
to, the range of malfunction turn characteristics and the time of flight 
when the malfunction occurs.
    (c) Time delay analysis products. The products of a time delay 
analysis that a launch operator must file include:
    (1) A description of the methodology used to produce the time delay 
analysis.
    (2) A schematic drawing that maps the flight safety official's data 
flow time delays from the start of a launch vehicle malfunction through 
the final commanded flight termination on the launch vehicle, including 
the flight safety official's decision and reaction time. The drawings 
must indicate major systems, subsystems, major software functions, and 
data routing.
    (3) A tabular listing of each time delay source and its individual 
mean and plus and minus three-sigma contribution to the overall time 
delay. The table must provide all time delay values in milliseconds.
    (4) The mean delay time and the plus and minus three-sigma values of 
the delay time relative to the mean value.

                       A417.23 Flight hazard areas

    (a) General. A flight safety analysis must include a flight hazard 
area analysis that satisfies the requirements of Sec. 417.223. This 
section applies to the determination of flight hazard areas for orbital 
and suborbital launch vehicles that use a flight termination system to 
protect the public as required by Sec. 417.223 and to the analysis 
products that the launch operator must file with the FAA as required by 
Sec. 417.203(e). Requirements that apply to determining flight hazard 
areas for an unguided suborbital rocket that uses a wind-weighting 
safety system are contained in appendix C of this part.
    (b) Launch site flight hazard area. A flight hazard area analysis 
must establish a launch site flight hazard area that encompasses the 
launch point and:
    (1) If the flight safety analysis employs hazard isolation to 
establish flight safety limits as required by section A417.13(c), the 
launch site flight hazard area must encompass the flight safety limits.
    (2) If the flight safety analysis does not employ hazard isolation 
to establish the flight safety limits, the launch site flight hazard 
area must encompass all hazard areas established as required by 
paragraphs (c) through (e) of this section.
    (c) Debris impact hazard area. The analysis must establish a debris 
impact hazard area that accounts for the effects of impacting debris 
resulting from normal and malfunctioning launch vehicle flight, except 
for toxic effects, and accounts for potential impact locations of all 
debris fragments. The analysis must establish a debris hazard area as 
follows:
    (1) An individual casualty contour that defines where the risk to an 
individual would exceed an expected casualty (Ec) criteria of 1 x 10 -6 
if one person were assumed to be in the open and inside the contour 
during launch vehicle flight must bound a debris hazard area. The 
analysis must produce an individual casualty contour as follows:
    (i) The analysis must account for the location of a hypothetical 
person, and must vary the location of the person to determine when the 
risk would exceed the Ec criteria of 1 x 10 -6. The analysis must count 
a person as a casualty when the person's location is subjected to any 
inert debris impact with a mean expected kinetic energy greater than or 
equal to 11 ft-lbs or a peak incident overpressure equal to or greater 
than 1.0 psi due to explosive debris impact. The analysis must determine 
the peak incident overpressure using the Kingery-Bulmash relationship, 
without regard to sheltering, reflections, or atmospheric effects.
    (ii) The analysis must account for person locations that are no more 
than 1000 feet apart in the downrange direction and no more than 1000 
feet apart in the crossrange

[[Page 609]]

direction to produce an individual casualty contour. For each person 
location, the analysis must sum the probabilities of casualty over all 
flight times for all debris groups.
    (iii) An individual casualty contour must consist of curves that are 
smooth and continuous. To accomplish this, the analysis must vary the 
time interval between the trajectory times assessed so that each 
location of a debris impact point is less than one-half sigma of the 
downrange dispersion distance.
    (2) The input for determining a debris impact hazard area must 
account for the results of the trajectory analysis required by section 
A417.7, the malfunction turn analysis required by section A417.9, and 
the debris analysis required by section A417.11 to define the impact 
locations of each class of debris established by the debris analysis, 
and the time delay analysis required by section A417.21.
    (3) The analysis must account for the extent of the impact debris 
dispersions for each debris class produced by normal and malfunctioning 
launch vehicle flight at each trajectory time. The analysis must also 
account for how the vehicle breaks up, either by the flight termination 
system or by aerodynamic forces, if the different breakup may result in 
a different probability of existence for each debris class. A debris 
impact hazard area must account for each impacting debris fragment 
classified as required by section A417.11(c).
    (4) The analysis must account for launch vehicle flight that exceeds 
a flight safety limit. The analysis must also account for trajectory 
conditions that maximize the mean debris impact distance during the 
flight safety system delay time determined as required by section 
A417.21 and account for a debris model that is representative of a 
flight termination or aerodynamic breakup. For each launch vehicle 
breakup event, the analysis must account for trajectory and breakup 
dispersions, variations in debris class characteristics, and debris 
dispersion due to any wind condition under which a launch would be 
attempted.
    (5) The analysis must account for the probability of failure of each 
launch vehicle stage and the probability of existence of each debris 
class. The analysis must account for the probability of occurrence of 
each type of launch vehicle failure. The analysis must account for 
vehicle failure probabilities that vary depending on the time of flight.
    (6) In addition to failure debris, the analysis must account for 
nominal jettisoned body debris impacts and the corresponding debris 
impact dispersions. The analysis must use a probability of occurrence of 
1.0 for the planned debris fragments produced by normal separation 
events during flight.
    (d) Near-launch-point blast hazard area. A flight hazard area 
analysis must define a blast overpressure hazard area as a circle 
extending from the launch point with a radius equal to the 1.0 psi 
overpressure distance produced by the equivalent TNT weight of the 
explosive capability of the vehicle. In addition, the analysis must 
establish a minimum near-pad blast hazard area to provide protection 
from hazardous fragments potentially propelled by an explosion. The 
analysis must account for the maximum possible total solid and liquid 
propellant explosive potential of the launch vehicle and any payload. 
The analysis must define a blast overpressure hazard area using the 
following equations:

Rop = 45 [middot] (NEW)1/3

Where:

Rop is the over pressure distance in feet.
NEW = WE [middot] C (pounds).
WE is the weight of the explosive in pounds.
C is the TNT equivalency coefficient of the propellant being evaluated. 
A launch operator must identify the TNT equivalency of each propellant 
on its launch vehicle including any payload. TNT equivalency data for 
common liquid propellants is provided in tables A417-1. Table A417-2 
provides factors for converting gallons of specified liquid propellants 
to pounds.

    (e) Other hazards. A flight hazard area analysis must identify any 
additional hazards, such as radioactive material, that may exist on the 
launch vehicle or payload. For each such hazard, the analysis must 
determine a hazard area that encompasses any debris impact point and its 
dispersion and includes an additional hazard radius that accounts for 
potential casualty due to the additional hazard. Analysis requirements 
for toxic release and far field blast overpressure are provided in Sec. 
417.27 and section A417.29, respectively.
    (1) Aircraft hazard areas. The analysis must establish an aircraft 
hazard area for each planned debris impact for the issuance of notices 
to airmen as required by Sec. 417.121(e). Each aircraft hazard area 
must encompass an air space region, from an altitude of 60,000 feet to 
impact on the Earth's surface, that contains the three-sigma drag impact 
dispersion.
    (2) Ship hazard areas. The analysis must establish a ship hazard 
area for each planned debris impact for the issuance of notices to 
mariners as required by Sec. 417.121(e). Each ship hazard area must 
encompass a surface region that contains the three-sigma drag impact 
dispersion.
    (f) Flight hazard area analysis products. The products of a flight 
hazard area analysis that a launch operator must file with the FAA 
include:
    (1) A chart that depicts the launch site flight hazard area, 
including its size and location.

[[Page 610]]

    (2) A chart that depicts each hazard area required by this section.
    (3) A description of each hazard for which analysis was performed; 
the methodology used to compute each hazard area; and the debris classes 
for aerodynamic breakup of the launch vehicle and for flight 
termination. For each debris class, the launch operator must identify 
the number of debris fragments, the variation in ballistic coefficient, 
and the standard deviation of the debris dispersion.
    (4) A chart that depicts each of the individual casualty contour.
    (5) A description of the aircraft hazard area for each planned 
debris impact, the information to be published in a Notice to Airmen, 
and all information required as part of any agreement with the FAA ATC 
office having jurisdiction over the airspace through which flight will 
take place.
    (6) A description of any ship hazard area for each planned debris 
impact and all information required in a Notice to Mariners.
    (7) A description of the methodology used for determining each 
hazard area.
    (8) A description of the hazard area operational controls and 
procedures to be implemented for flight.
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[GRAPHIC] [TIFF OMITTED] TR25AU06.010

                           A417.25 Debris risk

    (a) General. A flight safety analysis must include a debris risk 
analysis that satisfies the requirements of Sec. 417.225. This section 
applies to the computation of the average number of casualties 
(Ec) to the collective members of debris hazards from the 
proposed flight of a launch vehicle as required by Sec. 417.225 and to 
the analysis products that the launch operator must file with the FAA as 
required by Sec. 417.203(e).
    (b) Debris risk analysis constraints. The following constraints 
apply to a debris risk:
    (1) A debris risk analysis must use valid risk analysis models that 
compute Ec as the summation over all trajectory time 
intervals from lift-off through orbital insertion of the products of the 
probability of each possible event and the casualty consequences due to 
debris impacts for each possible event.
    (2) A debris risk analysis must account for the following 
populations:

[[Page 611]]

    (i) The overflight of populations located inside any flight safety 
limits.
    (ii) All populations located within five-sigma left and right 
crossrange of a nominal trajectory instantaneous impact point ground 
trace and within five-sigma of each planned nominal debris impact.
    (iii) Any planned overflight of the public within any gate 
overflight areas.
    (iv) Any populations outside the flight safety limits identified as 
required by paragraph (b)(10) of this section.
    (3) A debris risk analysis must account for both inert and explosive 
debris hazards produced from any impacting debris caused by normal and 
malfunctioning launch vehicle flight. The analysis must account for the 
debris classes determined by the debris analysis required by section 
A417.11. A debris risk analysis must account for any inert debris impact 
with mean expected kinetic energy at impact greater than or equal to 11 
ft-lbs and peak incident overpressure of greater than or equal to 1.0 
psi due to any explosive debris impact. The analysis must account for 
all debris hazards as a function of flight time.
    (4) A debris risk analysis must account for debris impact points and 
dispersion for each class of debris as follows:
    (i) A debris risk analysis must account for drag corrected impact 
points and dispersions for each class of impacting debris resulting from 
normal and malfunctioning launch vehicle flight as a function of 
trajectory time from lift-off through orbital insertion, including each 
planned impact, for an orbital launch, and through final impact for a 
suborbital launch.
    (ii) The dispersion for each debris class must account for the 
position and velocity state vector dispersions at breakup, the variance 
produced by breakup imparted velocities, the effect of winds on both the 
ascent trajectory state vector at breakup and the descending debris 
piece impact location the variance produced by aerodynamic properties 
for each debris class, and any other dispersion variances.
    (iii) A debris risk analysis must account for the survivability of 
debris fragments that are subject to reentry aerodynamic forces or 
heating. A debris class may be eliminated from the debris risk analysis 
if the launch operator demonstrates that the debris will not survive to 
impact.
    (5) A debris risk analysis must account for launch vehicle failure 
probability. The following constraints apply:
    (i) For flight safety analysis purposes, a failure occurs when a 
vehicle does not complete any phase of normal flight or exhibits the 
potential for the stage or its debris to impact the Earth or reenter the 
atmosphere during the mission or any future mission of similar vehicle 
capability. Also, either a launch incident or launch accident 
constitutes a failure.
    (ii) For a launch vehicle with fewer than 2 flights completed, the 
analysis must use a reference value for the launch vehicle failure 
probability estimate equal to the upper limit of the 60% two-sided 
confidence limits of the binomial distribution for outcomes of all 
previous launches of vehicles developed and launched in similar 
circumstances. The FAA may adjust the failure probability estimate to 
account for the level of experience demonstrated by the launch operator 
and other factors that affects the probability of failure. The FAA may 
adjust the failure probability estimate for the second launch based on 
evidence obtained from the first flight of the vehicle.
    (iii) For a launch vehicle with at least 2 flights completed, the 
analysis must use the reference value for the launch vehicle failure 
probability of Table A417-3 based on the outcomes of all previous 
launches of the vehicle. The FAA may adjust the failure probability 
estimate to account for evidence obtained from the flight history of the 
vehicle. The FAA may adjust the failure probability estimate to account 
for the nature of launch outcomes in the flight history of the vehicle, 
corrective actions taken in response to a failure of the vehicle, or 
other vehicle modifications that may affect reliability. The FAA may 
adjust the failure probability estimate to account for the demonstrated 
quality of the engineering approach to launch vehicle processing, 
meeting safety requirements in this part, and associated hazard 
mitigation. The analysis must use a final failure estimate within the 
confidence limits of Table A417-3.
    (A) Values listed on the far left of Table A417-3 apply when no 
launch failures are experienced. Values on the far right apply when only 
launch failures are experienced. Values in between apply for flight 
histories that include both failures and successes.
    (B) Reference values in Table A417-3 are shown in bold. The 
reference values are the median values between 60% two-sided confidence 
limits of the binomial distribution. For the special cases of zero or N 
failures in N launch attempts, the reference values may also be 
recognized as the median value between the 80% one-sided confidence 
limit of the binomial distribution and zero or one, respectively.
    (C) Upper and lower confidence bounds in Table A417-3 are shown 
directly above and below each reference value. These confidence bounds 
are based on 60% two-sided confidence limits of the binomial 
distribution. For the special cases of zero or N failures in N launch 
attempts, the upper and lower confidence bounds are based on the 80% 
one-sided confidence limit, respectively.

[[Page 612]]

[GRAPHIC] [TIFF OMITTED] TR25AU06.011

    (6) A debris risk analysis must account for the dwell time of the 
instantaneous impact point ground trace over each populated or protected 
area being evaluated.
    (7) A debris risk analysis must account for the three-sigma 
instantaneous impact point trajectory variations in left-crossrange, 
right-crossrange, uprange, and downrange as

[[Page 613]]

a function of trajectory time, due to launch vehicle performance 
variations as determined by the trajectory analysis performed as 
required by section A417.7.
    (8) A debris risk analysis must account for the effective casualty 
area as a function of launch vehicle flight time for all impacting 
debris generated from a catastrophic launch vehicle malfunction event or 
a planned impact event. The effective casualty area must account for 
both payload and vehicle systems and subsystems debris. The effective 
casualty area must account for all debris fragments determined as part 
of a launch operator's debris analysis as required by section A417.11. 
The effective casualty area for each explosive debris fragment must 
account for a 1.0 psi blast overpressure radius and the projected debris 
effects for all potentially explosive debris. The effective casualty 
area for each inert debris fragment must:
    (i) Account for bounce, skip, slide, and splatter effects; or
    (ii) Equal seven times the maximum projected area of the fragment.
    (9) A debris risk analysis must account for current population 
density data obtained from a current population database for the region 
being evaluated or by estimating the current population using 
exponential population growth rate equations applied to the most current 
historical data available. The population model must define population 
centers that are similar enough to be described and treated as a single 
average set of characteristics without degrading the accuracy of the 
debris risk estimate.
    (10) For a launch vehicle that uses a flight safety system, a debris 
risk analysis must account for the collective risk to any populations 
outside the flight safety limits during flight, including people who 
will be at any public launch viewing area during flight. For such 
populations, in addition to the constraints of paragraphs (b)(1) through 
(b)(9) of this section, a launch operator's debris risk analysis must 
account for the following:
    (i) The probability of a launch vehicle failure that would result in 
debris impact in protected areas outside the flight safety limits.
    (ii) The failure probability of the launch operator's flight safety 
system. A flight safety system failure rate of 0.002 may be used if the 
flight safety system complies with the flight safety system requirements 
of subpart D of this part. For an alternate flight safety system 
approved as required by Sec. 417.107(a)(3), the launch operator must 
demonstrate the validity of the probability of failure through the 
licensing process.
    (iii) Current population density data and population projections for 
the day and time of flight for the areas outside the flight safety 
limits.
    (c) Debris risk analysis products. The products of a debris risk 
analysis that a launch operator must file with the FAA include:
    (1) A debris risk analysis report that provides the analysis input 
data, probabilistic risk determination methods, sample computations, and 
text or graphical charts that characterize the public risk to 
geographical areas for each launch.
    (2) Geographic data showing:
    (i) The launch vehicle nominal, five-sigma left-crossrange and five-
sigma right-crossrange instantaneous impact point ground traces;
    (ii) All exclusion zones relative to the instantaneous impact point 
ground traces; and
    (iii) All populated areas included in the debris risk analysis.
    (3) A discussion of each launch vehicle failure scenario accounted 
for in the analysis and the probability of occurrence, which may vary 
with flight time, for each failure scenario. This information must 
include failure scenarios where a launch vehicle:
    (i) Flies within normal limits until some malfunction causes 
spontaneous breakup or results in a commanded flight termination;
    (ii) Experiences malfunction turns; and
    (iii) Flight safety system fails to function.
    (4) A population model applicable to the launch overflight regions 
that contains the following: region identification, location of the 
center of each population center by geodetic latitude and longitude, 
total area, number of persons in each population center, and a 
description of the shelter characteristics within the population center.
    (5) A description of the launch vehicle, including general 
information concerning the nature and purpose of the launch and an 
overview of the launch vehicle, including a scaled diagram of the 
general arrangement and dimensions of the vehicle. A launch operator's 
debris risk analysis products may reference other documentation filed 
with the FAA containing this information. The description must include:
    (i) Weights and dimensions of each stage.
    (ii) Weights and dimensions of any booster motors attached.
    (iii) The types of fuel used in each stage and booster.
    (iv) Weights and dimensions of all interstage adapters and skirts.
    (v) Payload dimensions, materials, construction, and any payload 
fuel; payload fairing construction, materials, and dimensions; and any 
non-inert components or materials that add to the effective casualty 
area of the debris, such as radioactive or toxic materials or high-
pressure vessels.
    (6) A typical sequence of events showing times of ignition, cutoff, 
burnout, and jettison of each stage, firing of any ullage rockets, and 
starting and ending times of coast periods and control modes.

[[Page 614]]

    (7) The following information for each launch vehicle motor:
    (i) Propellant type and composition;
    (ii) Thrust profile;
    (iii) Propellant weight and total motor weight as a function of 
time;
    (iv) A description of each nozzle and steering mechanism;
    (v) For solid rocket motors, internal pressure and average 
propellant thickness, or borehole radius, as a function of time;
    (vi) Maximum impact point deviations as a function of failure time 
during destruct system delays. Burn rate as a function of ambient 
pressure;
    (vii) A discussion of whether a commanded destruct could ignite a 
non-thrusting motor, and if so, under what conditions; and
    (viii) Nozzle exit and entrance areas.
    (8) The launch vehicle's launch and failure history, including a 
summary of past vehicle performance. For a new vehicle with little or no 
flight history, a launch operator must provide all known data on similar 
vehicles that include:
    (i) Identification of the launches that have occurred;
    (ii) Launch date, location, and direction of each launch;
    (iii) The number of launches that performed normally;
    (iv) Behavior and impact location of each abnormal experience;
    (v) The time, altitude, and nature of each malfunction; and
    (vi) Descriptions of corrective actions taken, including changes in 
vehicle design, flight termination, and guidance and control hardware 
and software.
    (9) The values of probability of impact (PI) and expected 
casualty (Ec) for each populated area.

                  A417.27 Toxic release hazard analysis

    A flight safety analysis must include a toxic release hazard 
analysis that satisfies the requirements of Sec. 417.227. A launch 
operator's toxic release hazard analysis must satisfy the methodology 
requirements of appendix I of this part. A launch operator must file the 
analysis products identified in appendix I of this part as required by 
Sec. 417.203(e).

          A417.29 Far field blast overpressure effects analysis

    (a) General. A flight safety analysis must include a far field blast 
overpressure effects hazard analysis that satisfies the requirements of 
Sec. 417.229. This section applies to the computation of far field 
blast overpressure effects from the proposed flight of a launch vehicle 
as required by Sec. 417.229 and to the analysis products that the 
launch operator must file with the FAA as required by Sec. 417.203(e). 
The analysis must account for distant focus overpressure and any 
overpressure enhancement to establish the potential for broken windows 
due to peak incident overpressures below 1.0 psi and related casualties 
due to falling or projected glass shards. The analysis must employ 
either paragraph (b) of this section or the risk analysis of paragraph 
(c) of this section.
    (b) Far field blast overpressure hazard analysis. Unless an analysis 
satisfies the requirements of paragraph (c) of this section a far field 
blast overpressure hazard analysis must satisfy the following:
    (1) Explosive yield factors. The analysis must use explosive yield 
factor curves for each type or class of solid or liquid propellant used 
by the launch vehicle. Each explosive yield factor curve must be based 
on the most accurate explosive yield data for the corresponding type or 
class of solid or liquid propellant based on empirical data or 
computational modeling.
    (2) Establish the maximum credible explosive yield. The analysis 
must establish the maximum credible explosive yield resulting from 
normal and malfunctioning launch vehicle flight. The explosive yield 
must account for impact mass and velocity of impact on the Earth's 
surface. The analysis must account for explosive yield expressed as a 
TNT equivalent for peak overpressure.
    (3) Characterize the population exposed to the hazard. The analysis 
must demonstrate whether any population centers are vulnerable to a 
distant focus overpressure hazard using the methodology provided by 
section 6.3.2.4 of the American National Standard Institute's ANSI 
S2.20-1983, ``Estimating Air Blast Characteristics for Single Point 
Explosions in Air with a Guide to Evaluation of Atmospheric Propagation 
and Effects'' and as follows:
    (i) For the purposes of this analysis, a population center must 
include any area outside the launch site and not under the launch 
operator's control that contains an exposed site. An exposed site 
includes any structure that may be occupied by human beings, and that 
has at least one window, but does not include automobiles, airplanes, 
and waterborne vessels. The analysis must account for the most recent 
census information on each population center. The analysis must treat 
any exposed site for which no census information is available, or the 
census information indicates a population equal to or less than four 
persons, as a `single residence.'
    (ii) The analysis must identify the distance between the location of 
the maximum credible impact explosion and the location of each 
population center potentially exposed. Unless the location of the 
potential explosion site is limited to a defined region, the analysis 
must account for the distance between the potential explosion site and a 
population center as the minimum distance between any point within the 
region contained

[[Page 615]]

by the flight safety limits and the nearest exposed site within the 
population center.
    (iii) The analysis must account for all weather conditions optimized 
for a distant focus overpressure hazard by applying an atmospheric blast 
``focus factor'' (F) of 5.
    (iv) The analysis must determine, using the methodology of section 
6.3.2.4 of ANSI S2.20-1983, for each a population center, whether the 
maximum credible explosive yield of a launch meets, exceeds or is less 
than the ``no damage yield limit,'' of the population center. If the 
maximum credible explosive yield is less than the ``no damage yield 
limit'' for all exposed sites, the remaining requirements of this 
section do not apply. If the maximum credible explosive yield meets or 
exceeds the ``no damage yield limit'' for a population center then that 
population center is vulnerable to far field blast overpressure from the 
launch and the requirements of paragraphs (b)(4) and (b)(5) of this 
section apply.
    (4) Estimate the quantity of broken windows. The analysis must use a 
focus factor of 5 and the methods provided by ANSI S2.20-1983 to 
estimate the number of potential broken windows within each population 
center determined to be vulnerable to the distant focus overpressure 
hazard as required by paragraph (b)(3) of this section.
    (5) Determine and implement measures necessary to prevent distant 
focus overpressure from breaking windows. For each population center 
that is vulnerable to far field blast overpressure from a launch, the 
analysis must identify mitigation measures to protect the public from 
serious injury from broken windows and the flight commit criteria of 
Sec. 417.113(b) needed to enforce the mitigation measures. A launch 
operator's mitigation measures must include one or more of the 
following:
    (i) Apply a minimum 4-millimeter thick anti-shatter film to all 
exposed sites where the maximum credible yield exceeds the ``no damage 
yield limit.''
    (ii) Evacuate the exposed public to a location that is not 
vulnerable to the distant focus overpressure hazard at least two hours 
prior to the planned flight time.
    (iii) If, as required by paragraph (b)(4) of this section, the 
analysis predicts that less than 20 windows will break, advise the 
public of the potential for glass breakage.
    (c) Far field blast overpressure risk analysis. If a launch operator 
does not employ paragraph (b) of this section to perform a far field 
overpressure hazard analysis, the launch operator must conduct a risk 
analysis that demonstrates that the launch will be conducted in 
accordance with the public risk criteria of Sec. 417.107(b).
    (d) Far field blast overpressure effect products. The products of a 
far field blast overpressure analysis that a launch operator must file 
with the FAA include:
    (1) A description of the methodology used to produce the far field 
blast overpressure analysis results, a tabular description of the 
analysis input data, and a description of any far field blast 
overpressure mitigation measures implemented.
    (2) For any far field blast overpressure risk analysis, an example 
set of the analysis computations.
    (3) The values for the maximum credible explosive yield as a 
function of time of flight.
    (4) The distance between the potential explosion location and any 
population center vulnerable to the far field blast overpressure hazard. 
For each population center, the launch operator must identify the 
exposed populations by location and number of people.
    (5) Any mitigation measures established to protect the public from 
far field blast overpressure hazards and any flight commit criteria 
established to ensure the mitigation measures are enforced.

                       A417.31 Collision avoidance

    (a) General. A flight safety analysis must include a collision 
avoidance analysis that satisfies the requirements of Sec. 417.231. 
This section applies to a launch operator obtaining a collision 
avoidance assessment from United States Strategic Command as required by 
Sec. 417.231 and to the analysis products that the launch operator must 
file with the FAA as required by Sec. 417.203(e). United States 
Strategic Command refers to a collision avoidance analysis for a space 
launch as a conjunction on launch assessment.
    (b) Analysis constraints. A launch operator must satisfy the 
following when obtaining and implementing the results of a collision 
avoidance analysis:
    (1) A launch operator must provide United States Strategic Command 
with the launch window and trajectory data needed to perform a collision 
avoidance analysis for a launch as required by paragraph (c) of this 
section, at least 15 days before the first attempt at flight. The FAA 
will identify a launch operator to United States Strategic Command as 
part of issuing a license and provide a launch operator with current 
United States Strategic Command contact information.
    (2) A launch operator must obtain a collision avoidance analysis 
performed by United States Strategic Command 6 hours before the 
beginning of a launch window.
    (3) A launch operator may use a collision avoidance analysis for 12 
hours from the time that United States Strategic Command determines the 
state vectors of the manned or mannable orbiting objects. If a launch 
operator needs an updated collision avoidance analysis due to a launch 
delay, the launch operator must file the request with United States 
Strategic Command at least 12 hours

[[Page 616]]

prior to the beginning of the new launch window.
    (4) For every 90 minutes, or portion of 90 minutes, that pass 
between the time United States Strategic Command last determined the 
state vectors of the orbiting objects, a launch operator must expand 
each wait in a launch window by subtracting 15 seconds from the start of 
the wait in the launch window and adding 15 seconds to the end of the 
wait in the launch window. A launch operator must incorporate all the 
resulting waits in the launch window into its flight commit criteria 
established as required by Sec. 417.113.
    (c) Information required. A launch operator must prepare a collision 
avoidance analysis worksheet for each launch using a standardized format 
that contains the input data required by this paragraph. A launch 
operator must file the input data with United States Strategic Command 
for the purposes of completing a collision avoidance analysis. A launch 
operator must file the input data with the FAA as part of the license 
application process as required by Sec. 415.115 of this chapter.
    (1) Launch information. A launch operator must file the following 
launch information:
    (i) Mission name. A mnemonic given to the launch vehicle/payload 
combination identifying the launch mission from all others.
    (ii) Segment number. A segment is defined as a launch vehicle stage 
or payload after the thrusting portion of its flight has ended. This 
includes the jettison or deployment of any stage or payload. A launch 
operator must provide a separate worksheet for each segment. For each 
segment, a launch operator must determine the ``vector at injection'' as 
defined by paragraph (c)(5) of this section. The data must present each 
segment number as a sequence number relative to the total number of 
segments for a launch, such as ``1 of 5.''
    (iii) Launch window. The launch window opening and closing times in 
Greenwich Mean Time (referred to as ZULU time) and the Julian dates for 
each scheduled launch attempt.
    (2) Point of contact. The person or office within a launch 
operator's organization that collects, analyzes, and distributes 
collision avoidance analysis results.
    (3) Collision avoidance analysis analysis results transmission 
medium. A launch operator must identify the transmission medium, such as 
voice, FAX, or e-mail, for receiving results from United States 
Strategic Command.
    (4) Requestor launch operator needs. A launch operator must indicate 
the types of analysis output formats required for establishing flight 
commit criteria for a launch:
    (i) Waits. All the times within the launch window during which 
flight must not be initiated.
    (ii) Windows. All the times within an overall launch window during 
which flight may be initiated.
    (5) Vector at injection. A launch operator must identify the vector 
at injection for each segment. ``Vector at injection'' identifies the 
position and velocity of all orbital or suborbital segments after the 
thrust for a segment has ended.
    (i) Epoch. The epoch time, in Greenwich Mean Time (GMT), of the 
expected launch vehicle liftoff time.
    (ii) Position and velocity. The position coordinates in the EFG 
coordinate system measured in kilometers and the EFG components measured 
in kilometers per second, of each launch vehicle stage or payload after 
any burnout, jettison, or deployment.
    (6) Time of powered flight. The elapsed time in seconds, from 
liftoff to arrival at the launch vehicle vector at injection. The input 
data must include the time of powered flight for each stage or 
jettisoned component measured from liftoff.
    (7) Time span for launch window file (LWF). A launch operator must 
provide the following information regarding its launch window:
    (i) Launch window. The launch window measured in minutes from the 
initial proposed liftoff time.
    (ii) Time of powered flight. The time provided as required by 
paragraph (c)(6) of this section measured in minutes rounded up to the 
nearest integer minute.
    (iii) Screen duration. The time duration, after all thrusting 
periods of flight have ended, that a collision avoidance analysis must 
screen for potential conjunctions with manned or mannable orbital 
objects. Screen duration is measured in minutes and must be greater than 
or equal to 100 minutes for an orbital launch.
    (iv) Extra pad. An additional period of time for collision avoidance 
analysis screening to ensure the entire first orbit is screened for 
potential conjunctions with manned or mannable orbital objects. This 
time must be 10 minutes unless otherwise specified by United States 
Strategic Command.
    (v) Total. The summation total of the time spans provided as 
required by paragraphs (c)(7)(i) through (c)(7)(iv) expressed in 
minutes.
    (8) Screening. A launch operator must select spherical or 
ellipsoidal screening as defined in this paragraph for determining any 
conjunction. The default must be the spherical screening method using an 
avoidance radius of 200 kilometers for manned or mannable orbiting 
objects. If the launch operator requests screening for any unmanned or 
unmannable objects, the default must be the spherical screening method 
using a miss distance of 25 kilometers.
    (i) Spherical screening. Spherical screening utilizes an impact 
exclusion sphere centered

[[Page 617]]

on each orbiting object's center-of-mass to determine any conjunction. A 
launch operator must specify the avoidance radius for manned or mannable 
objects and for any unmanned or unmannable objects if the launch 
operator elects to perform the analysis for unmanned or unmannable 
objects.
    (ii) Ellipsoidal screening. Ellipsoidal screening utilizes an impact 
exclusion ellipsoid of revolution centered on the orbiting object's 
center-of-mass to determine any conjunction. A launch operator must 
provide input in the UVW coordinate system in kilometers. The launch 
operator must provide delta-U measured in the radial-track direction, 
delta-V measured in the in-track direction, and delta-W measured in the 
cross-track direction.
    (9) Orbiting objects to evaluate. A launch operator must identify 
the orbiting objects to be included in the analysis.
    (10) Deliverable schedule/need dates. A launch operator must 
identify the times before flight, referred to as ``L-times,'' for which 
the launch operator requests a collision avoidance analysis.
    (d) Collision avoidance assessment products. A launch operator must 
file its collision avoidance analysis products as required by Sec. 
417.203(e) and must include the input data required by paragraph (c) of 
this section. A launch operator must incorporate the result of the 
collision avoidance analysis into its flight commit criteria established 
as required by Sec. 417.113.



Sec. Appendix B to Part 417--Flight Hazard Area Analysis for Aircraft 
                           and Ship Protection

                              B417.1 Scope

    This appendix contains requirements to establish aircraft hazard 
areas, ship hazard areas, and land impact hazard areas. The 
methodologies contained in this appendix represent an acceptable means 
of satisfying the requirements of Sec. 417.107 and Sec. 417.223 as 
they pertain to ship, aircraft, and land hazard areas. This appendix 
provides a standard and a measure of fidelity against which the FAA will 
measure any proposed alternative approaches. Requirements for a launch 
operator's implementation of a hazard area are contained in Sec. Sec. 
417.121(e) and (f).

            B417.3 Hazard area notifications and surveillance

    (a) A launch operator must ensure the following notifications have 
been made and adhered to at launch:
    (1) A Notice to Airmen (NOTAM) must be issued for every aircraft 
hazard area identified as required by sections B417.5 and B417.7. The 
NOTAM must be effective no less than thirty minutes prior to flight and 
effective until no sooner than thirty minutes after the air space volume 
requested by the NOTAM can no longer be affected by the launch vehicle 
or its potential hazardous effects.
    (2) A Notice to Mariners (NOTMAR) must be issued for every ship 
hazard area identified as required by sections B417.5 and B417.7. The 
NOTMAR must be effective no less than thirty minutes prior to flight and 
effective until no sooner than thirty minutes after the area requested 
by the NOTMAR can no longer be affected by the launch vehicle or its 
potential hazardous effects.
    (3) All local officials and landowners adjacent to any hazard area 
must be notified of the flight schedule no less than two days prior to 
the flight of the launch vehicle.
    (b) A launch operator must survey each of the following hazard 
areas:
    (1) Each launch site hazard area;
    (2) Each aircraft hazard area in the vicinity of the launch site; 
and
    (3) Each ship hazard area in the vicinity of the launch site.

                     B417.5 Launch site hazard area

    (a) General. A launch operator must perform a launch site hazard 
area analysis that protects the public, aircraft, and ships from the 
hazardous activities in the vicinity of the launch site. The launch 
operator must evacuate and monitor each launch site hazard area to 
ensure compliance with Sec. Sec. 417.107(b)(2) and (b)(3).
    (b) Launch site hazard area analysis input. A launch site hazard 
area must encompass no less than the following:
    (1) Each land hazard area in the vicinity of the launch site 
calculated as required by section B417.13;
    (2) Each ship hazard area in the vicinity of the launch site 
calculated as required by section B417.11(c); and
    (3) The aircraft hazard area in the vicinity of the launch site 
calculated as required by section B417.9(c).

                      B417.7 Downrange hazard areas

    (a) General. A launch operator must perform a downrange hazard area 
analysis that protects the public, aircraft, and ships from the 
hazardous activities in the vicinity of each scheduled impact location.
    (b) Downrange hazard areas analysis input. A launch hazard area must 
bound no less than the following:
    (1) The aircraft hazard area in the vicinity of each planned impact 
location calculated as required by section B417.9(d);
    (2) The ship hazard area in the vicinity of each planned water 
impact location calculated as required by section B417.11(d); and
    (3) The land hazard area in the vicinity of each planned land impact 
location calculated as required by section B417.13.

[[Page 618]]

                  B417.9 Aircraft hazard areas analysis

    (a) General. A launch operator must perform an aircraft hazard areas 
analysis as required by Sec. 417.223(b). A launch operator's aircraft 
hazard areas analysis must determine the aircraft hazard area in the 
vicinity of the launch site and the aircraft hazard area in the vicinity 
of each planned impact location as required by this section.
    (b) Aircraft hazard areas analysis input. A launch operator must 
account for the following inputs to determine the aircraft hazard areas:
    (1) The trajectory analysis performed as required by section A417.7 
or section C417.3; and
    (2) The debris risk analysis performed as required by section 
A417.25 or section C417.9.
    (c) Methodology for computing an aircraft hazard area in the 
vicinity of the launch site. An aircraft hazard area analysis must 
determine an aircraft hazard area that encompasses the launch point from 
the surface of the Earth to an altitude of 100,000 ft MSL and wholly 
contains the launch vehicle's normal trajectory plus five nautical miles 
in every radial direction. A launch operator must calculate an aircraft 
hazard area in the vicinity of the launch site as follows:
    (1) Using the trajectory analysis performed as required by section 
A417.7 or section C417.3, select all data locations where the vehicle's 
nominal altitude, or positional component on the z-axis, is less than 
and equal to 100,000 ft MSL.
    (2) From the data locations representing the dispersed trajectories 
calculated as required by section A417.7(d) or section C417.3(f) and 
modified to incorporate a 5 nm buffer as required by paragraph (c)(1) of 
this section for the data locations selected below a nominal altitude of 
100,000 ft MSL as required by paragraph (c)(1) of this section, select 
the location that is the farthest left-hand crossrange, the location 
that is the farthest right-hand crossrange, the location that is the 
farthest downrange, and the location that is the farthest uprange.
    (3) Construct a box in the xy plane that includes two lines parallel 
to the azimuth, two lines perpendicular to the azimuth, and contains the 
four locations selected as required by paragraph (c)(2) of this section.
    (4) Extend the box constructed as required by paragraph (c)(3) of 
this section from the surface of the Earth to an infinite altitude.
    (d) Methodology for computing an aircraft hazard area in the 
vicinity of each planned impact location. A launch operator must 
determine an aircraft hazard area in the vicinity of each planned impact 
location from the surface of the Earth to an altitude of 100,000 ft MSL 
that wholly contains the launch vehicle's calculated impact dispersion 
with a 5 nm buffer and the normal trajectory. A launch operator must 
compute an aircraft hazard area in the vicinity of each planned impact 
location as follows:
    (1) The analysis must calculate a three-sigma dispersion ellipse by 
determining the three-sigma impact limit around a planned impact 
location.
    (2) Taking the three-sigma dispersion ellipse calculated as required 
by paragraph (d)(1) of this section, plot a co-centric ellipse in the xy 
plane where the major and minor axes are 10nm longer than the major and 
minor axes of the three-sigma dispersion ellipse.
    (3) Extend the ellipse calculated as required by paragraph (d)(2) of 
this section from the surface to an infinite altitude.
    (4) Using the trajectory that predicts the instantaneous impact 
locations required in section A417.7(g)(7)(xii) or section C417.3(d), 
find the location on the trajectory where the vehicle's nominal altitude 
is predicted to be 100,000 ft MSL.
    (5) At the trajectory time where the altitude is represented as 
100,000 ft MSL, select the corresponding points from the normal 
trajectory dispersion that are the farthest uprange, downrange, right 
crossrange, and left crossrange relative to the nominal trajectory.
    (6) Construct a box in the xy plane that includes two lines parallel 
to the azimuth, two lines perpendicular to the azimuth, and contains the 
points selected as required by paragraph (d)(5) of this section and the 
nominal impact point.
    (7) Extend the box constructed as required by paragraph (d)(6) of 
this section from the surface of the Earth to an infinite altitude.
    (8) Construct a volume, the aircraft hazard area, that encompasses 
the volumes calculated as required by paragraphs (d)(3) and (d)(7) of 
this section.

                   B417.11 Ship hazard areas analysis

    (a) General. A flight hazard area analysis must establish ship 
hazard areas bound by the 1 x 10-5 ship impact contour in the 
vicinity of the launch site and the vehicle's three-sigma dispersion 
limit plus a 5 nm buffer in the vicinity of a planned, downrange impact 
location.
    (b) Ship hazard area analysis input. A launch operator must account 
for the following inputs to determine the ship hazard areas:
    (1) The trajectory analysis performed as required by section A417.7 
or section C417.3;
    (2) For a launch vehicle flown with a flight safety system, the 
malfunction turn analysis required by section A417.9;
    (3) The debris analysis required by section A417.11 or section 
C417.7 to define the impact locations of each class of debris 
established by the debris analysis;
    (4) For a launch vehicle flown with a flight safety system, the time 
delay analysis required by section A417.21; and

[[Page 619]]

    (5) The debris risk analysis performed as required by section 
A417.25 or section C417.9.
    (c) Methodology for computing ship hazard areas in the vicinity of 
the launch site. The analysis must establish the ship-hit contours as 
follows:
    (1) A ship-hit contour must account for the size of the largest ship 
that could be located in the ship hazard area. The analysis must 
demonstrate that the ship size used represents the largest ship that 
could be present in the ship hazard area or, if the ship size is 
unknown, the analysis must use a ship size of 120,000 square feet.
    (2) The analysis must first calculate the probability of impacting 
the reference ship selected as required by paragraph (c)(1) of this 
section at the location of interest. From the location of interest, move 
the ship away from the launch location along a single radial until the 
probability that debris is present at that location multiplied by the 
probability that a ship is at that location is less than or equal to 1 x 
10-5. When calculating the probability of impacting a ship, 
an impact occurs when:
    (i) The analysis predicts that inert debris will directly impact the 
vessel with a mean expected kinetic energy at impact greater than or 
equal to 11 ft-lbs; or
    (ii) The analysis predicts the peak incident overpressure at the 
reference vessel will be greater than or equal to 1.0 psi due to any 
explosive debris impact.
    (3) The analysis must account for:
    (i) The variance in winds;
    (ii) The aerodynamic properties of the debris;
    (iii) The variance in velocity of the debris;
    (iv) Guidance and performance errors;
    (v) The type of vehicle breakup, either by any flight termination 
system or by aerodynamic forces that may result in different debris 
characteristics; and
    (vi) Debris impact dispersion resulting from vehicle breakup and the 
malfunction turn capabilities of the launch vehicle.
    (4) Repeat the process outlined in paragraph (c)(2) of this section 
while varying the radial direction until enough locations are found 
where the reference ship's probability of impact is less than or equal 
to 1 x 10-5 such that connecting each location will result in 
a smooth and continuous contour.
    (d) Methodology for computing ship hazard areas in the vicinity of 
each planned water impact location. A launch operator must compute a 
ship hazard area in the vicinity of each planned impact location as 
required by the following:
    (1) The analysis must calculate a three-sigma dispersion ellipse by 
determining the three-sigma impact limit around a planned impact 
location.
    (2) Taking the three-sigma dispersion ellipse calculated as required 
by paragraph (d)(1) of this section, plot a co-centric ellipse in the xy 
plane where the major and minor axes are 10 nm longer than the major and 
minor axes of the three-sigma dispersion ellipse.

                   B417.13 Land hazard areas analysis

    (a) General. A flight hazard area analysis must establish land 
hazard areas in the vicinity of the launch site and land hazard areas in 
the vicinity of each land impact location to ensure that the probability 
of a member of the public being struck by debris satisfies the 
probability threshold of 1 x 10-6 required by Sec. 
417.107(b) and to determine exclusion areas that may require entry 
control and surveillance prior to initiation of flight. The analysis 
must establish a land impact hazard area that accounts for the effects 
of impacting debris resulting from normal and malfunctioning launch 
vehicle flight, except for toxic effects, and accounts for potential 
impact locations of all debris fragments. The land hazard area must 
encompass all individual casualty contours and the near-launch-point 
blast hazard area calculated as required by paragraph (c) of this 
section. A launch operator may initiate flight only if no member of the 
public is present within the land hazard area.
    (b) Land hazard areas analysis input. A land hazard analysis must 
account for the following inputs to determine the land hazard area:
    (1) The trajectory analysis performed as required by section A417.7 
or section C417.3;
    (2) For a launch vehicle flown with a flight safety system, the 
malfunction turn analysis required by section A417.9;
    (3) The debris analysis required by section A417.11 or section 
C417.7 to define the impact locations of each class of debris 
established by the debris analysis;
    (4) For a launch vehicle flown with a flight safety system, the time 
delay analysis required by section A417.21; and
    (5) The debris risk analysis performed as required by section 
A417.25 or section C417.9.
    (c) Methodology for computing land hazard areas in the vicinity of 
the launch site and in the vicinity of each planned land impact 
location. The analysis must establish a land hazard area as follows:
    (1) Each land hazard area must completely encompass all individual 
casualty contours that define where the risk to an individual would 
exceed the expected casualty (Ec) criteria of 1 x 
10-6 if one person were assumed to be in the open and inside 
the contour during launch vehicle flight. The analysis must produce an 
individual casualty contour as follows:
    (i) The analysis must account for the location of a hypothetical 
person, and must vary the location of the person to determine when the 
risk would exceed the Ec criteria of 1 x 10-6. The 
analysis must count a person as a

[[Page 620]]

casualty when the person's location is subjected to any inert debris 
impact with a mean expected kinetic energy greater than or equal to 11 
ft-lbs or a peak incident overpressure equal to or greater than 1.0 psi 
due to explosive debris impact. The analysis must determine the peak 
incident overpressure using the Kingery-Bulmash relationship, without 
regard to sheltering, reflections, or atmospheric effects.
    (ii) The analysis must account for all person locations that are no 
more than 1000 feet apart in the downrange direction and no more than 
1000 feet apart in the crossrange direction to produce an individual 
casualty contour. For each person location, the analysis must sum all 
the probabilities of casualty over all flight times for all debris 
groups.
    (iii) An individual casualty contour must consist of curves that are 
smooth and continuous. To accomplish this, the analysis must vary the 
time interval between each trajectory time assessed so that each 
location of a debris impact point is less than one-half sigma of the 
downrange dispersion distance.
    (2) The input for determining a land impact hazard area must account 
for the following in order to define the impact locations of each class 
of debris established by the debris analysis and the time delay analysis 
required by section A417.21 for a launch vehicle flown with a flight 
safety system:
    (i) The results of the trajectory analysis required by section 
A417.7 or section C417.3;
    (ii) The malfunction turn analysis required by section A417.9 for a 
launch vehicle flown with a flight safety system; and
    (iii) The debris analysis required by section A417.11 or section 
C417.7.
    (3) The analysis must account for the extent of the impact debris 
dispersions for each debris class produced by normal and malfunctioning 
launch vehicle flight at each trajectory time. The analysis must also 
account for how the vehicle breaks up, either by any flight termination 
system or by aerodynamic forces, if the different breakup may result in 
a different probability of existence for each debris class. A land 
impact hazard area must account for each impacting debris fragment 
classified as required by section A417.11(c) or section C417.7.
    (4) For a launch vehicle flown with a flight safety system, the 
analysis must account for launch vehicle flight that exceeds a flight 
safety limit. The analysis must also account for trajectory conditions 
that maximize the mean debris impact distance during the flight safety 
system delay time determined as required by section A417.21 and account 
for a debris model that is representative of a flight termination or 
aerodynamic breakup.
    (5) For each launch vehicle breakup event, the analysis must account 
for trajectory and breakup dispersions, variations in debris class 
characteristics, and debris dispersion due to any wind condition under 
which a launch would be attempted.
    (6) The analysis must account for the probability of failure of each 
launch vehicle stage and the probability of existence of each debris 
class. The analysis must account for the probability of occurrence of 
each type of launch vehicle failure. The analysis must account for each 
vehicle failure probabilities that vary depending on the time of flight.
    (7) In addition to failure debris, the analysis must account for 
nominal jettisoned body debris impacts and the corresponding debris 
impact dispersions. The analysis must use a probability of occurrence of 
1.0 for the planned debris fragments produced by normal separation 
events during flight.
    (d) Near-launch-point blast hazard area. A land hazard area analysis 
must define a blast overpressure hazard area as a circle extending from 
the launch point with a radius equal to the 1.0 psi overpressure 
distance produced by the equivalent TNT weight of the explosive 
capability of the vehicle. In addition, the analysis must establish a 
minimum near-launch point blast hazard area to provide protection from 
hazardous fragments potentially propelled by an explosion. The analysis 
must account for the maximum possible total solid and liquid propellant 
explosive potential of the launch vehicle and any payload. The analysis 
must define a blast overpressure hazard area using the following 
equations:

Rop = 45 [middot] (NEW)1/3

Where:

Rop is the over pressure distance in feet.
NEW = WE [middot] C (pounds).
WE is the weight of the explosive in pounds.
C is the TNT equivalency coefficient of the propellant being evaluated. 
A launch operator must identify the TNT equivalency of each propellant 
on its launch vehicle including any payload. TNT equivalency data for 
common liquid propellants is provided in tables A417-1. Table A417-2 
provides factors for converting gallons of specified liquid propellants 
to pounds.

    (e) Other hazards. A flight hazard area analysis must identify any 
additional hazards, such as radioactive material, that may exist on the 
launch vehicle or payload. For each such hazard, the analysis must 
determine a hazard area that encompasses any debris impact point and its 
dispersion and includes an additional hazard radius that accounts for 
potential casualty due to the additional hazard. Analysis requirements 
for toxic release and far field blast overpressure are provided in 
sections A417.27 and A417.29, respectively.
    (f) Land impact dispersion ellipses. A land impact hazard area must 
contain the land impact dispersion ellipse for each planned

[[Page 621]]

land impact. A launch operator must compute a land impact dispersion 
ellipse in the vicinity of each planned land impact location as follows:
    (1) The analysis must calculate a one-sigma dispersion ellipse by 
determining the one-sigma impact limit around a planned impact location.
    (2) Taking the one-sigma dispersion ellipse calculated as required 
by paragraph (f)(1) of this section, plot a co-centric ellipse in the xy 
plane where the major and minor axes are 10nm longer than the major and 
minor axes of the one-sigma dispersion ellipse.



Sec. Appendix C to Part 417--Flight Safety Analysis Methodologies and 

  Products for an Unguided Suborbital Launch Vehicle Flown With a Wind 
                         Weighting Safety System

                             C417.1 General

    (a) This appendix contains methodologies for performing the flight 
safety analysis required for the launch of an unguided suborbital launch 
vehicle flown with a wind weighting safety system, except for the hazard 
area analysis required by Sec. 417.107, which is covered in appendix B 
of this part. This appendix includes methodologies for a trajectory 
analysis, wind weighting analysis, debris analysis, debris risk 
analysis, and a collision avoidance analysis.
    (b) The requirements of this appendix apply to a launch operator and 
the launch operator's flight safety analysis unless the launch operator 
clearly and convincingly demonstrates that an alternative approach 
provides an equivalent level of safety.
    (c) A launch operator must:
    (1) Perform a flight safety analysis to determine the launch 
parameters and conditions under which an unguided suborbital launch 
vehicle may be flown using a wind weighting safety system as required by 
Sec. 417.233.
    (2) When conducting the flight safety analysis, comply with the 
safety criteria and operational requirements contained in Sec. 417.125; 
and
    (3) Conduct the flight safety analysis for an unguided suborbital 
launch vehicle using the methodologies of this appendix and appendix B 
of this part unless the launch operator demonstrates, in accordance with 
Sec. 406.3(b), through the licensing process, that an alternate method 
provides an equivalent level of fidelity.

                       C417.3 Trajectory analysis

    (a) General. A launch operator must perform a trajectory analysis 
for the flight of an unguided suborbital launch vehicle to determine:
    (1) The launch vehicle's nominal trajectory;
    (2) Each nominal drag impact point; and
    (3) Each potential three-sigma dispersion about each nominal drag 
impact point.
    (b) Definitions. A launch operator must employ the following 
definitions when determining an unguided suborbital launch vehicle's 
trajectory and drag impact points:
    (1) Drag impact point means the intersection of a predicted 
ballistic trajectory of an unguided suborbital launch vehicle stage or 
other impacting component with the Earth's surface. A drag impact point 
reflects the effects of atmospheric influences as a function of drag 
forces and mach number.
    (2) Maximum range trajectory means an optimized trajectory, extended 
through fuel exhaustion of each stage, to achieve a maximum downrange 
drag impact point.
    (3) Nominal trajectory means the trajectory that an unguided 
suborbital launch vehicle will fly if all rocket aerodynamic parameters 
are as expected without error, all rocket internal and external systems 
perform exactly as planned, and there are no external perturbing 
influences, such as winds, other than atmospheric drag and gravity.
    (4) Normal flight means all possible trajectories of a properly 
performing unguided suborbital launch vehicle whose drag impact point 
location does not deviate from its nominal location more than three 
sigma in each of the uprange, downrange, left crossrange, or right 
crossrange directions.
    (5) Performance error parameter means a quantifiable perturbing 
force that contributes to the dispersion of a drag impact point in the 
uprange, downrange, and cross-range directions of an unguided suborbital 
launch vehicle stage or other impacting launch vehicle component. 
Performance error parameters for the launch of an unguided suborbital 
launch vehicle reflect rocket performance variations and any external 
forces that can cause offsets from the nominal trajectory during normal 
flight. Performance error parameters include thrust, thrust 
misalignment, specific impulse, weight, variation in firing times of the 
stages, fuel flow rates, contributions from the wind weighting safety 
system employed, and winds.
    (c) Input. A trajectory analysis requires the input necessary to 
produce a six-degree-of-freedom trajectory. A launch operator must use 
each of the following as inputs to the trajectory computations:
    (1) Launcher data, as follows--
    (i) Geodetic latitude and longitude;
    (ii) Height above sea level;
    (iii) All location errors; and
    (iv) Launch azimuth and elevation.
    (2) Reference ellipsoidal Earth model, as follows--
    (i) Name of the Earth model employed;
    (ii) Semi-major axis;
    (iii) Semi-minor axis;

[[Page 622]]

    (iv) Eccentricity;
    (v) Flattening parameter;
    (vi) Gravitational parameter;
    (vii) Rotation angular velocity;
    (viii) Gravitational harmonic constants; and
    (ix) Mass of the Earth.
    (3) Vehicle characteristics for each stage. A launch operator must 
identify the following for each stage of an unguided suborbital launch 
vehicle's flight:
    (i) Nozzle exit area of each stage.
    (ii) Distance from the rocket nose-tip to the nozzle exit for each 
stage.
    (iii) Reference drag area and reference diameter of the rocket 
including any payload for each stage of flight.
    (iv) Thrust as a function of time.
    (v) Propellant weight as a function of time.
    (vi) Coefficient of drag as a function of mach number.
    (vii) Distance from the rocket nose-tip to center of gravity as a 
function of time.
    (viii) Yaw moment of inertia as a function of time.
    (ix) Pitch moment of inertia as a function of time.
    (x) Pitch damping coefficient as a function of mach number.
    (xi) Aerodynamic damping coefficient as a function of mach number.
    (xii) Normal force coefficient as a function of mach number.
    (xiii) Distance from the rocket nose-tip to center of pressure as a 
function of mach number.
    (xiv) Axial force coefficient as a function of mach number.
    (xv) Roll rate as a function of time.
    (xvi) Gross mass of each stage.
    (xvii) Burnout mass of each stage.
    (xviii) Vacuum thrust.
    (xix) Vacuum specific impulse.
    (xx) Stage dimensions.
    (xxi) Weight of each spent stage.
    (xxii) Payload mass properties.
    (xxiii) Nominal launch elevation and azimuth.
    (4) Launch events. Each stage ignition times, each stage burn time, 
and each stage separation time, referenced to ignition time of first 
stage.
    (5) Atmosphere. Density as a function of altitude, pressure as a 
function of altitude, speed of sound as a function of altitude, 
temperature as a function of altitude.
    (6) Wind errors. Error in measurement of wind direction as a 
function of altitude and wind magnitude as a function of altitude, wind 
forecast error, such as error due to time delay from wind measurement to 
launch.
    (d) Methodology for determining the nominal trajectory and nominal 
drag impact points. A launch operator must employ the steps in 
paragraphs (d)(1)-(d)(3) of this section to determine the nominal 
trajectory and the nominal drag impact point locations for each 
impacting rocket stage and component:
    (1) A launch operator must identify each performance error parameter 
associated with the unguided suborbital launch vehicle's design and 
operation and the value for each parameter that reflect nominal rocket 
performance. A launch operator must identify each performance error 
parameter's distribution to account for all launch vehicle performance 
variations and any external forces that can cause offsets from the 
nominal trajectory during normal flight. These performance error 
parameters include thrust misalignment, thrust variation, weight 
variation, fin misalignment, impulse variation, aerodynamic drag 
variation, staging timing variation, stage separation-force variation, 
drag error, uncompensated wind, launcher elevation angle error, launcher 
azimuth angle error, launcher tip-off, and launcher location error.
    (2) A launch operator must perform a no-wind trajectory simulation 
using a six-degrees-of-freedom (6-DOF) trajectory simulation with all 
performance error parameters set to their nominal values to determine 
the impact point of each stage or component. The 6-DOF trajectory 
simulation must provide rocket position translation along three axes of 
an orthogonal Earth-centered coordinate system and rocket orientation in 
roll, pitch and yaw. The 6-DOF trajectory simulation must compute each 
translation and orientation in response to forces and moments internal 
and external to the rocket including all the effects of the input data 
required by paragraph (c) of this section. A launch operator may 
incorporate the following assumptions in a 6-DOF trajectory simulation:
    (i) The airframe may be treated as a rigid body.
    (ii) The airframe may have a plane of symmetry coinciding with the 
vertical plane of reference.
    (iii) The vehicle may have aerodynamic symmetry in roll.
    (iv) The airframe may have six degrees-of-freedom.
    (v) The aerodynamic forces and moments may be functions of mach 
number and may be linear with small flow incidence angles of attack.
    (3) A launch operator must tabulate the geodetic latitude and 
longitude of the launch vehicle's nominal drag impact point as a 
function of trajectory time and the final nominal drag impact point of 
each planned impacting stage or component.
    (e) Methodology for determining maximum downrange drag impact 
points. A launch operator must compute the maximum possible downrange 
drag impact point for each launch vehicle stage and impacting component. 
A launch operator must use the nominal drag impact point methodology, as 
defined by

[[Page 623]]

paragraph (d) of this section, modified to optimize the unguided 
suborbital launch vehicle's performance and flight profile to create the 
conditions for a maximum downrange drag impact point, including fuel 
exhaustion for each stage and impacting component.
    (f) Methodology for computing drag impact point dispersions. A 
launch operator must employ the steps in paragraphs (f)(1)-(f)(3) of 
this section when determining the dispersions in terms of drag impact 
point distance standard deviations in uprange, downrange, and crossrange 
direction from the nominal drag impact point location for each stage and 
impacting component:
    (1) For each stage of flight, a launch operator must identify the 
plus and minus one-sigma values for each performance error parameter 
identified as required by paragraph (d)(1) of this section (i.e., 
nominal value plus one standard deviation and nominal value minus one 
standard deviation). A launch operator must determine the dispersion in 
downrange, uprange, and left and right crossrange for each impacting 
stage and component. A launch operator may either perform a Monte Carlo 
analysis that accounts for the distribution of each performance error 
parameter or determine the dispersion by a root-sum-square method under 
paragraph (f)(2) of this section.
    (2) When using a root-sum-square method to determine dispersion, a 
launch operator must determine the deviations for a given stage by 
evaluating the deviations produced in that stage due to the performance 
errors in that stage and all preceding stages of the launch vehicle as 
illustrated in Table C417-1, and by computing the square root of the sum 
of the squares of each deviation caused by each performance error 
parameter's one sigma dispersion for each stage in each of the right 
crossrange, left crossrange, uprange and downrange directions. A launch 
operator must evaluate the performance errors for one stage at a time, 
with the performance of all subsequent stages assumed to be nominal. A 
launch operator's root-sum-square method must incorporate the following 
requirements:
[GRAPHIC] [TIFF OMITTED] TR25AU06.012

    (i) With the 6-DOF trajectory simulation used to determine nominal 
drag impact points as required by paragraph (d) of this

[[Page 624]]

section, perform a series of trajectory simulation runs for each stage 
and planned ejected debris, such as a fairing, payload, or other 
component, and, for each simulation, model only one performance error 
parameter set to either its plus or minus one-sigma value. For a given 
simulation run, set all other performance error parameters to their 
nominal values. Continue until achieving a trajectory simulation run for 
each plus one-sigma performance error parameter value and each minus 
one-sigma performance error parameter value for the stage or the planned 
ejected debris being evaluated. For each trajectory simulation run and 
for each impact being evaluated, tabulate the downrange, uprange, left 
crossrange, and right crossrange drag impact point distance deviations 
measured from the nominal drag impact point location for that stage or 
planned debris.
    (ii) For uprange, downrange, right crossrange, and left crossrange, 
compute the square root of the sum of the squares of the distance 
deviations in each direction. The square root of the sum of the squares 
distance value for each direction represents the one-sigma drag impact 
point dispersion in that direction. For a multiple stage rocket, perform 
the first stage series of simulation runs with all subsequent stage 
performance error parameters set to their nominal value. Tabulate the 
uprange, downrange, right crossrange, and left crossrange distance 
deviations from the nominal impact for each subsequent drag impact point 
location caused by the first stage one-sigma performance error 
parameter. Use these deviations in determining the total drag impact 
point dispersions for the subsequent stage impacts as described in 
paragraph (f)(2)(iii) of this section.
    (iii) For each subsequent stage impact of an unguided suborbital 
launch vehicle, determine the one-sigma impact dispersions by first 
determining the one-sigma distance deviations for that stage impact 
caused by each preceding stage as described in paragraph (f)(2)(ii) of 
this section. Then perform a series of simulation runs and tabulate the 
uprange, downrange, right crossrange, and left crossrange drag impact 
point distance deviations as described in paragraph (f)(2)(i) of this 
section for that stage's one-sigma performance error parameter values 
with the preceding stage performance parameters set to nominal values. 
For each uprange, downrange, right crossrange, and left crossrange 
direction, compute the square root of the sum of the squares of the 
stage impact distance deviations due to that stage's and each preceding 
stage's one-sigma performance error parameter values. This square root 
of the sum of the squares distance value for each direction represents 
the total one-sigma drag impact point dispersion in that direction for 
the nominal drag impact point location of that stage. Use these 
deviations when determining the total drag impact point dispersions for 
the subsequent stage impacts.
    (3) A launch operator must determine a three-sigma dispersion area 
for each impacting stage or component as an ellipse that is centered at 
the nominal drag impact point location and has semi-major and semi-minor 
axes along the uprange, downrange, left crossrange, and right crossrange 
axes. The length of each axis must be three times as large as the total 
one-sigma drag impact point dispersions in each direction.
    (g) Trajectory analysis products for a suborbital launch vehicle. A 
launch operator must file the following products of a trajectory 
analysis for an unguided suborbital launch vehicle with the FAA as 
required by Sec. 417.203(e):
    (1) A description of the process that the launch operator used for 
performing the trajectory analysis, including the number of simulation 
runs and the process for any Monte Carlo analysis performed.
    (2) A description of all assumptions and procedures the launch 
operator used in deriving each of the performance error parameters and 
their standard deviations.
    (3) Launch point origin data: name, geodetic latitude (+N), 
longitude (+E), geodetic height, and launch azimuth measured clockwise 
from true north.
    (4) Name of reference ellipsoid Earth model used. If a launch 
operator employs a reference ellipsoid Earth model other than WGS-84, 
Department of Defense World Geodetic System, Military Standard 2401 
(Jan. 11, 1994), the launch operator must identify the semi-major axis, 
semi-minor axis, eccentricity, flattening parameter, gravitational 
parameter, rotation angular velocity, gravitational harmonic constants 
(e.g., J2, J3, J4), and mass of Earth.
    (5) If a launch operator converts latitude and longitude coordinates 
between different ellipsoidal Earth models to complete a trajectory 
analysis, the launch operator must file the equations for geodetic datum 
conversions and a sample calculation for converting the geodetic 
latitude and longitude coordinates between the models employed.
    (6) A launch operator must file tabular data that lists each 
performance error parameter used in the trajectory computations and each 
performance error parameter's plus and minus one-sigma values. If the 
launch operator employs a Monte Carlo analysis method for determining 
the dispersions about the nominal drag impact point, the tabular data 
must list the total one-sigma drag impact point distance deviations in 
each direction for each impacting stage and component. If the launch 
operator employs the square root of the sum of the squares method of 
paragraph (f)(2) of this section, the tabular data must include the one-
sigma

[[Page 625]]

drag impact point distance deviations in each direction due to each one-
sigma performance error parameter value for each impacting stage and 
component.
    (7) A launch operator must file a graphical depiction showing 
geographical landmasses and the nominal and maximum range trajectories 
from liftoff until impact of the final stage. The graphical depiction 
must plot trajectory points in time intervals of no greater than one 
second during thrusting flight and for times corresponding to ignition, 
thrust termination or burnout, and separation of each stage or impacting 
body. If there are less than four seconds between stage separation or 
other jettison events, a launch operator must reduce the time intervals 
between plotted trajectory points to 0.2 seconds or less. The graphical 
depiction must show total launch vehicle velocity as a function of time, 
present-position ground-range as a function of time, altitude above the 
reference ellipsoid as a function of time, and the static stability 
margin as a function of time.
    (8) A launch operator must file tabular data that describes the 
nominal and maximum range trajectories from liftoff until impact of the 
final stage. The tabular data must include the time after liftoff, 
altitude above the reference ellipsoid, present position ground range, 
and total launch vehicle velocity for ignition, burnout, separation, 
booster apogee, and booster impact of each stage or impacting body. The 
launch operator must file the tabular data for the same time intervals 
required by paragraph (g)(7) of this section.
    (9) A launch operator must file a graphical depiction showing all 
geographical landmasses and the unguided suborbital launch vehicle's 
drag impact point for the nominal trajectory, the maximum impact range 
boundary, and the three-sigma drag impact point dispersion area for each 
impacting stage or component. The graphical depiction must show the 
following in relationship to each other: The nominal trajectory, a 
circle whose radius represents the range to the farthest downrange 
impact point that results from the maximum range trajectory, and the 
three-sigma drag impact point dispersions for each impacting stage and 
component.
    (10) A launch operator must file tabular data that describes the 
nominal trajectory, the maximum impact range boundary, and each three-
sigma drag impact point dispersion area. The tabular data must include 
the geodetic latitude (positive north of the equator) and longitude 
(positive east of the Greenwich Meridian) of each point describing the 
nominal drag impact point positions, the maximum range circle, and each 
three-sigma impact dispersion area boundary. Each three-sigma dispersion 
area must be described by no less than 20 coordinate pairs. All 
coordinates must be rounded to the fourth decimal point.

                     C417.5 Wind weighting analysis

    (a) General. As part of a wind weighting safety system, a launch 
operator must perform a wind weighting analysis to determine launcher 
azimuth and elevation settings that correct for the windcocking and 
wind-drift effects on an unguided suborbital launch vehicle due to 
forecasted winds in the airspace region of flight. A launch operator's 
wind weighting safety system and its operation must comply with Sec. 
417.125(c). The launch azimuth and elevation settings resulting from a 
launch operator's wind weighting analysis must produce a trajectory, 
under actual wind conditions, that results in a final stage drag impact 
point that is the same as the final stage's nominal drag impact point 
determined according to section C417.3(d).
    (b) Wind weighting analysis constraints.
    (1) A launch operator's wind weighting analysis must:
    (i) Account for the winds in the airspace region through which the 
rocket will fly. A launch operator's wind weighting safety system must 
include an operational method of determining the wind direction and wind 
magnitude at all altitudes that the rocket will reach up to the maximum 
altitude defined by dispersion analysis as required by section C417.3.
    (ii) Account for all errors due to the methods used to measure the 
winds in the airspace region of the launch, delay associated with wind 
measurement, and the method used to model the effects of winds. The 
resulting sum of these error components must be no greater than those 
used as the wind error dispersion parameter in the launch vehicle 
trajectory analysis performed as required by section C417.3.
    (iii) Account for the dispersion of all impacting debris, including 
any uncorrected wind error accounted for in the trajectory analysis 
performed as required by section C417.3.
    (iv) Establish flight commit criteria that are a function of the 
analysis and operational methods employed and reflect the maximum wind 
velocities and wind variability for which the results of the wind 
weighting analysis are valid.
    (v) Account for the wind effects during each thrusting phase of an 
unguided suborbital launch vehicle's flight and each ballistic phase of 
each rocket stage and component until burnout of the last stage.
    (vi) Determine the impact point location for any parachute recovery 
of a stage or component or the launch operator must perform a wind drift 
analysis to determine the parachute impact point location.
    (2) A launch operator must perform a wind weighting analysis using a 
six-degrees-of-

[[Page 626]]

freedom (6-DOF) trajectory simulation that targets an impact point using 
an iterative process. The 6-DOF simulation must account for launch day 
wind direction and wind magnitude as a function of altitude.
    (3) A launch operator must perform a wind weighting analysis using a 
computer program or other method of editing wind data, recording the 
time the data was obtained, and recording the balloon number or 
identification of any other measurement device used for each wind 
altitude layer.
    (c) Methodology for performing a wind weighting analysis. A launch 
operator's method for performing a wind weighting analysis on the day of 
flight must account for the following:
    (1) A launch operator must measure the winds on the day of flight to 
determine wind velocity and direction. A launch operator's process for 
measuring winds must provide wind data that is consistent with any 
assumptions made in the launch operator's trajectory and drag impact 
point dispersion analysis, as required by section C417.3, regarding the 
actual wind data available on the day of flight. Wind measurements must 
be made at altitude increments such that the maximum correction between 
any two measurements does not exceed 5%. Winds must be measured from the 
ground level at the launch point to a maximum altitude that is 
consistent with the launch operator's drag impact point dispersion 
analysis. The maximum wind measurement altitude must be that necessary 
to account for 99% of the wind effect on the impact dispersion point. A 
launch operator's wind measuring process must employ the use of balloons 
and radar tracking or balloons fitted with a Global Positioning System 
transceiver, and must account for the following:
    (i) Measure winds from ground level to an altitude of at least that 
necessary to account for 99% of the wind effect on the impact dispersion 
point within six hours before flight and after any weather front passes 
the launch site before liftoff. Repeat a wind measurement up to the 
maximum altitude whenever a wind measurement, for any given altitude, 
from a later balloon release is not consistent with a wind measurement, 
for the same altitude, from an earlier balloon release.
    (ii) Measure winds from ground level to an altitude of at least that 
necessary to account for 95% of the wind effect on the impact dispersion 
point within four hours before flight and after any weather front passes 
the launch site before liftoff. Repeat a wind measurement to the 95% 
wind effect altitude whenever a wind measurement, for any given 
altitude, from a later lower altitude balloon release is not consistent 
with the wind measurement, for the same altitude, from the 95% wind 
effect altitude balloon release.
    (iii) Measure winds from ground level to an altitude of no less than 
that necessary to account for 80% of the wind effect on the impact 
dispersion point twice within 30 minutes of liftoff. Use the first 
measurement to set launcher azimuth and elevation, and the second 
measurement to verify the first measurement data.
    (2) A launch operator must perform runs of the 6-DOF trajectory 
simulation using the flight day measured winds as input and targeting 
for the nominal final stage drag impact point. In an iterative process, 
vary the launcher elevation angle and azimuth angle settings for each 
simulation run until the nominal final stage impact point is achieved. 
The launch operator must use the resulting launcher elevation angle and 
azimuth angle settings to correct for the flight day winds. The launch 
operator must not initiate flight unless the launcher elevation angle 
and azimuth angle settings after wind weighting are in accordance with 
the following:
    (i) The launcher elevation angle setting resulting from the wind 
weighting analysis must not exceed  5[deg] from 
the nominal launcher elevation angle setting and must not exceed a total 
of 86[deg] for a proven launch vehicle, and 84[deg] for an unproven 
launch vehicle. A launch operator's nominal launcher elevation angle 
setting must be as required by Sec. 417.125(c)(3).
    (ii) The launcher azimuth angle setting resulting from the wind 
weighting analysis must not exceed +30[deg] from the nominal launcher 
azimuth angle setting unless the launch operator demonstrates clearly 
and convincingly, through the licensing process, that its unguided 
suborbital launch vehicle has a low sensitivity to high wind speeds, and 
the launch operator's wind weighting analysis and wind measuring process 
provide an equivalent level of safety.
    (3) Using the trajectory produced in paragraph (c)(2) of this 
section, for each intermediate stage and planned ejected component, a 
launch operator must compute the impact point that results from wind 
drift by performing a run of the 6-DOF trajectory simulation with the 
launcher angles determined in paragraph (c)(2) of this section and the 
flight day winds from liftoff until the burnout time or ejection time of 
the stage or ejected component. The resulting impact point(s) must be 
accounted for when performing flight day ship-hit operations defined in 
section B417.11(c).
    (4) If a parachute is used for any stage or component, a launch 
operator must determine the wind drifted impact point of the stage or 
component using a trajectory simulation that incorporates modeling for 
the change in aerodynamics at parachute ejection. Perform this 
simulation run in addition to any simulation of spent stages without 
parachutes.

[[Page 627]]

    (5) A launch operator must verify that the launcher elevation angle 
and azimuth angle settings at the time of liftoff are the same as 
required by the wind weighting analysis.
    (6) A launch operator must monitor and verify that any wind 
variations and maximum wind limits at the time of liftoff are within the 
flight commit criteria established according to Sec. 417.113(c).
    (7) A launch operator must generate output data from its wind 
weighting analysis for each impacting stage or component in printed, 
plotted, or computer medium format. This data must include:
    (i) Launch day wind measurement data, including magnitude and 
direction.
    (ii) The results of each computer run made using the launch day wind 
measurement data, including but not limited to, launcher settings, and 
impact locations for each stage or component.
    (iii) Final launcher settings recorded.
    (d) Wind weighting analysis products. The products of a launch 
operator's wind weighting analysis filed with the FAA as required by 
Sec. 417.203(e) must include the following:
    (1) A launch operator must file a description of its wind weighting 
analysis methods, including its method and schedule of determining wind 
speed and wind direction for each altitude layer.
    (2) A launch operator must file a description of its wind weighting 
safety system and identify all equipment used to perform the wind 
weighting analysis, such as any wind towers, balloons, or Global 
Positioning System wind measurement system employed and the type of 
trajectory simulation employed.
    (3) A launch operator must file a sample wind weighting analysis 
using actual or statistical winds for the launch area and provide 
samples of the output required by paragraph (c)(7) of this section.

                         C417.7 Debris analysis

    (a) General. A flight safety analysis must include a debris analysis 
that satisfies the requirements of Sec. 417.211. This section applies 
to the debris data required by Sec. 417.211 and the debris analysis 
products that a launch operator must file with the FAA as required by 
Sec. 417.203(e).
    (b) Debris analysis constraints. A debris analysis must produce the 
debris model described in paragraph (c) of this section. The analysis 
must account for all launch vehicle debris fragments, individually or in 
groupings of fragments called classes. The characteristics of each 
debris fragment represented by a class must be similar enough to the 
characteristics of all the other debris fragments represented by that 
class that all the debris fragments of the class can be described by a 
single set of characteristics. Paragraph (c)(10) of this section applies 
when establishing a debris class. A debris model must describe the 
physical, aerodynamic, and harmful characteristics of each debris 
fragment either individually or as a member of a class. A debris model 
must consist of lists of individual debris or debris classes for each 
cause of breakup and any planned jettison of debris, launch vehicle 
components, or payload. A debris analysis must account for:
    (1) Debris due to any malfunction where forces on the launch vehicle 
may exceed the launch vehicle's structural integrity limits.
    (2) The immediate post-breakup or jettison environment of the launch 
vehicle debris, and any change in debris characteristics over time from 
launch vehicle breakup or jettison until debris impact.
    (3) The impact overpressure, fragmentation, and secondary debris 
effects of any confined or unconfined solid propellant chunks and fueled 
components containing either liquid or solid propellants that could 
survive to impact, as a function of vehicle malfunction time.
    (4) The effects of impact of the intact vehicle as a function of 
failure time. The intact impact debris analysis must identify the 
trinitrotoluene (TNT) yield of impact explosions, and the numbers of 
fragments projected from all such explosions, including non-launch 
vehicle ejecta and the blast overpressure radius. The analysis must use 
a model for TNT yield of impact explosion that accounts for the 
propellant weight at impact, the impact speed, the orientation of the 
propellant, and the impacted surface material.
    (c) Debris model. A debris analysis must produce a model of the 
debris resulting from planned jettison and from unplanned breakup of a 
launch vehicle for use as input to other analyses, such as establishing 
hazard areas and performing debris risk and toxic analyses. A launch 
operator's debris model must satisfy the following:
    (1) Debris fragments. A debris model must provide the debris 
fragment data required by this section for the launch vehicle flight 
from the planned ignition time until thrust termination of the last 
thrusting stage. A debris model must provide debris fragment data for 
the number of time periods sufficient to meet the requirements for 
smooth and continuous contours used to define hazard areas as required 
by appendix B of this part.
    (2) Inert fragments. A debris model must identify all inert 
fragments that are not volatile and that do not burn or explode under 
normal and malfunction conditions. A debris model must identify all 
inert fragments for each breakup time during flight corresponding to a 
critical event when the fragment catalog is significantly changed by the 
event. Critical events include staging,

[[Page 628]]

payload fairing jettison, and other normal hardware jettison activities.
    (3) Explosive and non-explosive propellant fragments. A debris model 
must identify all propellant fragments that are explosive or non-
explosive upon impact. The debris model must describe each propellant 
fragment as a function of time, from the time of breakup through 
ballistic free-fall to impact. The debris model must describe the 
characteristics of each fragment, including its origin on the launch 
vehicle, representative dimensions and weight at the time of breakup and 
at the time of impact. For any fragment identified as an un-contained or 
contained propellant fragment, whether explosive or non-explosive, the 
debris model must identify whether or not it burns during free fall, and 
provide the consumption rate during free fall. The debris model must 
identify:
    (i) Solid propellant that is exposed directly to the atmosphere and 
that burns but does not explode upon impact as ``un-contained non-
explosive solid propellant.''
    (ii) Solid or liquid propellant that is enclosed in a container, 
such as a motor case or pressure vessel, and that burns but does not 
explode upon impact as ``contained non-explosive propellant.''
    (iii) Solid or liquid propellant that is enclosed in a container, 
such as a motor case or pressure vessel, and that explodes upon impact 
as ``contained explosive propellant fragment.''
    (iv) Solid propellant that is exposed directly to the atmosphere and 
that explodes upon impact as ``un-contained explosive solid propellant 
fragment.''
    (4) Other non-inert debris fragments. In addition to the explosive 
and flammable fragments identified under paragraph (c)(3) of this 
section, a debris model must identify any other non-inert debris 
fragments, such as toxic or radioactive fragments, that present any 
other hazards to the public.
    (5) Fragment weight. At each modeled breakup time, the individual 
fragment weights must approximately add up to the sum total weight of 
inert material in the vehicle and the weight of contained liquid 
propellants and solid propellants that are not consumed in the initial 
breakup or conflagration.
    (6) Fragment imparted velocity. A debris model must identify the 
maximum velocity imparted to each fragment due to potential explosion or 
pressure rupture. When accounting for imparted velocity, a debris model 
must:
    (i) Use a Maxwellian distribution with the specified maximum value 
equal to the 97th percentile; or
    (ii) Identify the distribution, and state whether or not the 
specified maximum value is a fixed value with no uncertainty.
    (7) Fragment projected area. A debris model must include each of the 
axial, transverse, and mean tumbling areas of each fragment. If the 
fragment may stabilize under normal or malfunction conditions, the 
debris model must also provide the projected area normal to the drag 
force.
    (8) Fragment ballistic coefficient. A debris model must include the 
axial, transverse, and tumble orientation ballistic coefficient for each 
fragment's projected area as required by paragraph (c)(7) of this 
section.
    (9) Debris fragment count. A debris model must include the total 
number of each type of fragment required by paragraphs (c)(2), (c)(3), 
and (c)(4) of this section and created by a malfunction.
    (10) Fragment classes. A debris model must categorize malfunction 
debris fragments into classes where the characteristics of the mean 
fragment in each class conservatively represent every fragment in the 
class. The model must define fragment classes for fragments whose 
characteristics are similar enough to be described and treated by a 
single average set of characteristics. A debris class must categorize 
debris by each of the following characteristics, and may include any 
other useful characteristics:
    (i) The type of fragment, defined by paragraphs (c)(2), (c)(3), and 
(c)(4) of this section. All fragments within a class must be the same 
type, such as inert or explosive.
    (ii) Debris subsonic ballistic coefficient ([beta]sub). 
The difference between the smallest 
log10([beta]sub) value and the largest 
log10([beta]sub) value in a class must not exceed 
0.5, except for fragments with [beta]sub less than or equal 
to three. Fragments with [beta]sub less than or equal to 
three may be grouped within a class.
    (iii) Breakup-imparted velocity ([Delta]V). A debris model must 
categorize fragments as a function of the range of [Delta]V for the 
fragments within a class and the class's median subsonic ballistic 
coefficient. For each class, the debris model must keep the ratio of the 
maximum breakup-imparted velocity ([Delta]Vmax) to minimum 
breakup-imparted velocity ([Delta]Vmin) within the following 
bound:
[GRAPHIC] [TIFF OMITTED] TR25AU06.107

Where:

[beta][min]sub is the median subsonic ballistic coefficient 
          for the fragments in a class.

    (d) Debris analysis products. The products of a debris analysis that 
a launch operator must file with the FAA as required by Sec. 417.203(e) 
must include:
    (1) Debris model. The launch operator's debris model that satisfies 
the requirements of this section.
    (2) Fragment description. A description of the fragments contained 
in the launch operator's debris model. The description must identify the 
fragment as a launch vehicle

[[Page 629]]

part or component, describe its shape, representative dimensions, and 
may include drawings of the fragment.
    (3) Intact impact TNT yield. For an intact impact of a launch 
vehicle, for each failure time, a launch operator must identify the TNT 
yield of each impact explosion and blast overpressure hazard radius.
    (4) Fragment class data. The class name, the range of values for 
each parameter used to categorize fragments within a fragment class, and 
the number of fragments in any fragment class established as required by 
paragraph (c)(10) of this section.
    (5) Ballistic coefficient. The mean ballistic coefficient ([beta]) 
and plus and minus three-sigma values of the [beta] for each fragment 
class. A launch operator must provide graphs of the coefficient of drag 
(Cd) as a function of Mach number for the nominal and three-
sigma [beta] variations for each fragment shape. The launch operator 
must label each graph with the shape represented by the curve and 
reference area used to develop the curve. A launch operator must provide 
a Cd vs. Mach curve for any axial, transverse, and tumble 
orientations for any fragment that will not stabilize during free-fall 
conditions. For any fragment that may stabilize during free-fall, a 
launch operator must provide Cd vs. Mach curves for the 
stability angle of attack. If the angle of attack where the fragment 
stabilizes is other than zero degrees, a launch operator must provide 
both the coefficient of lift (CL) vs. Mach number and the 
Cd vs. Mach number curves. The launch operator must provide 
the equations for each Cd vs. Mach curve.
    (6) Pre-flight propellant weight. The initial preflight weight of 
solid and liquid propellant for each launch vehicle component that 
contains solid or liquid propellant.
    (7) Normal propellant consumption. The nominal and plus and minus 
three-sigma solid and liquid propellant consumption rate, and pre-
malfunction consumption rate for each component that contains solid or 
liquid propellant.
    (8) Fragment weight. The mean and plus and minus three-sigma weight 
of each fragment or fragment class.
    (9) Projected area. The mean and plus and minus three-sigma axial, 
transverse, and tumbling areas for each fragment or fragment class. This 
information is not required for those fragment classes classified as 
burning propellant classes under section A417.25(b)(8).
    (10) Imparted velocities. The maximum incremental velocity imparted 
to each fragment class created by explosive or overpressure loads at 
breakup. The launch operator must identify the velocity distribution as 
Maxwellian or must define the distribution, including whether or not the 
specified maximum value is a fixed value with no uncertainty.
    (11) Fragment type. The fragment type for each fragment established 
as required by paragraphs (c)(2), (c)(3), and (c)(4) of this section.
    (12) Origin. The part of the launch vehicle from which each fragment 
originated.
    (13) Burning propellant classes. The propellant consumption rate for 
those fragments that burn during free-fall.
    (14) Contained propellant fragments, explosive or non-explosive. For 
contained propellant fragments, whether explosive or non-explosive, a 
launch operator must provide the initial weight of contained propellant 
and the consumption rate during free-fall. The initial weight of the 
propellant in a contained propellant fragment is the weight of the 
propellant before any of the propellant is consumed by normal vehicle 
operation or failure of the launch vehicle.
    (15) Solid propellant fragment snuff-out pressure. The ambient 
pressure and the pressure at the surface of a solid propellant fragment, 
in pounds per square inch, required to sustain a solid propellant 
fragment's combustion during free-fall.
    (16) Other non-inert debris fragments. For each non-inert debris 
fragment identified as required by paragraph (c)(4) of this section, a 
launch operator must describe the diffusion, dispersion, deposition, 
radiation, and other hazard exposure characteristics used to determine 
the effective casualty area required by paragraph (c)(9) of this 
section.
    (17) Residual thrust dispersion. For each thrusting or non-thrusting 
stage having residual thrust capability following a launch vehicle 
malfunction, a launch operator must provide either the total residual 
impulse imparted or the full-residual thrust in foot-pounds as a 
function of breakup time. For any stage not capable of thrust after a 
launch vehicle malfunction, a launch operator must provide the 
conditions under which the stage is no longer capable of thrust. For 
each stage that can be ignited as a result of a launch vehicle 
malfunction on a lower stage, a launch operator must identify the 
effects and duration of the potential thrust, and the maximum deviation 
of the instantaneous impact point which can be brought about by the 
thrust.

                           C417.9 Debris risk

    (a) General. A launch operator must perform a debris risk analysis 
that satisfies the requirements of Sec. 417.225. This section applies 
to the computation of the average number of casualties (Ec) 
to the collective members of the public exposed to inert and explosive 
debris hazards from the proposed flight of an unguided suborbital launch 
vehicle as required by Sec. 417.225 and to the analysis products that 
the launch operator must file with the FAA as required by Sec. 
417.203(e).
    (b) Debris risk analysis constraints. The following constraints 
apply to debris risk:

[[Page 630]]

    (1) A debris risk analysis must use valid risk analysis models that 
compute Ec as the summation over all trajectory time 
intervals from lift-off through impact of the products of the 
probability of each possible event and the casualty consequences due to 
debris impacts for each possible event.
    (2) A debris risk analysis must account for the following 
populations:
    (i) The overflight of populations located inside any flight hazard 
area.
    (ii) All populations located within five-sigma left and right 
crossrange of a nominal trajectory instantaneous impact point ground 
trace and within five-sigma of each planned nominal debris impact.
    (3) A debris risk analysis must account for both inert and explosive 
debris hazards produced from any impacting debris caused by normal and 
malfunctioning launch vehicle flight. The analysis must account for the 
debris classes determined by the debris analysis required by section 
A417.11. A debris risk analysis must account for any inert debris impact 
with mean expected kinetic energy at impact greater than or equal to 11 
ft-lbs and peak incident overpressure of greater than or equal to 1.0 
psi due to any explosive debris impact. The analysis must account for 
all debris hazards as a function of flight time.
    (4) A debris risk analysis must account for debris impact points and 
dispersion for each class of debris in accordance with the following:
    (i) A debris risk analysis must account for drag corrected impact 
points and dispersions for each class of impacting debris resulting from 
normal and malfunctioning launch vehicle flight as a function of 
trajectory time from lift-off through final impact.
    (ii) The dispersion for each debris class must account for the 
position and velocity state vector dispersions at breakup, the variance 
produced by breakup imparted velocities, the effects of winds on both 
the ascent trajectory state vector at breakup and the descending debris 
piece impact location, the variance produced by aerodynamic properties 
for each debris class, and any other dispersion variances.
    (iii) A debris risk analysis must account for the survivability of 
debris fragments that are subject to reentry aerodynamic forces or 
heating. A debris class may be eliminated from the debris risk analysis 
if the launch operator demonstrates that the debris will not survive to 
impact.
    (5) A debris risk analysis must account for launch vehicle failure 
probability. The following constraints apply:
    (i) For flight safety analysis purposes, a failure occurs when a 
vehicle does not complete any phase of normal flight or exhibits the 
potential for the stage or its debris to impact the Earth or reenter the 
atmosphere during the mission or any future mission of similar vehicle 
capability. Also, either a launch incident or launch accident 
constitutes a failure.
    (ii) For a launch vehicle with fewer than 2 flights completed, the 
analysis must use a reference value for the launch vehicle failure 
probability estimate equal to the upper limit of the 60% two-sided 
confidence limits of the binomial distribution for outcomes of all 
previous launches of vehicles developed and launched in similar 
circumstances. The FAA may adjust the failure probability estimate to 
account for the level of experience demonstrated by the launch operator 
and other factors that affects the probability of failure. The FAA may 
adjust the failure probability estimate for the second launch based on 
evidence obtained from the first flight of the vehicle.
    (iii) For a launch vehicle with at least 2 flights completed, the 
analysis must use the reference value for the launch vehicle failure 
probability of Table C417-2 based on the outcomes of all previous 
launches of the vehicle. The FAA may adjust the failure probability 
estimate to account for evidence obtained from the flight history of the 
vehicle. Failure probability estimate adjustments to the reference value 
may account for the nature of launch outcomes in the flight history of 
the vehicle, corrective actions taken in response to a failure of the 
vehicle, or other vehicle modifications that may affect reliability. The 
FAA may adjust the failure probability estimate to account for the 
demonstrated quality of the engineering approach to launch vehicle 
processing. The analysis must use a final failure estimate within the 
confidence limits of Table C417-2.
    (A) Values listed on the far left of Table C417-2 apply when no 
launch failures are experienced. Values on the far right apply when only 
launch failures are experienced. Values in between apply for flight 
histories that include both failures and successes.
    (B) Reference values in Table C417-2 are shown in bold. The 
reference values are the median values between 60% two-sided confidence 
limits of the binomial distribution. For the special cases of zero or N 
failures in N launch attempts, the reference values may also be 
recognized as the median value between the 80% one-sided confidence 
limit of the binomial distribution and zero or one, respectively.
    (C) Upper and lower confidence bounds in Table C417-2 are shown 
directly above and below each reference value. These confidence bounds 
are based on 60% two-sided confidence limits of the binomial 
distribution. For the special cases of zero or N failures in N launch 
attempts, the upper and lower confidence bounds are based on the 80% 
one-sided confidence limit, respectively.

[[Page 631]]

[GRAPHIC] [TIFF OMITTED] TR25AU06.013

    (6) A debris risk analysis must account for the dwell time of the 
instantaneous impact point ground trace over each populated or protected 
area being evaluated.
    (7) A debris risk analysis must account for the three-sigma 
instantaneous impact point trajectory variations in left-crossrange, 
right-crossrange, uprange, and downrange as a function of trajectory 
time, due to launch vehicle performance variations as determined by the 
trajectory analysis performed as required by section C417.3.
    (8) A debris risk analysis must account for the effective casualty 
area as a function of launch vehicle flight time for all impacting 
debris generated from a catastrophic launch vehicle malfunction event or 
a planned impact event. The effective casualty area must:
    (i) Account for both payload and vehicle systems and subsystems 
debris;
    (ii) Account for all debris fragments determined as part of a launch 
operator's debris analysis as required by section A417.11;
    (iii) For each explosive debris fragment, account for a 1.0 psi 
blast overpressure radius and the projected debris effects for all 
potentially explosive debris; and
    (iv) For each inert debris fragment, account for bounce, skip, 
slide, and splatter effects; or equal seven times the maximum projected 
area of the fragment.
    (9) A debris risk analysis must account for current population 
density data obtained from a current population database for the region 
being evaluated or by estimating the current population using 
exponential population growth rate equations applied to the most current 
historical data available. The population model must define population 
centers that are similar enough to be described and treated as a single 
average set of characteristics without degrading the accuracy of the 
debris risk estimate.
    (c) Debris risk analysis products. The products of a debris risk 
analysis that a launch operator must file with the FAA must include:
    (1) A debris risk analysis report that provides the analysis input 
data, probabilistic risk determination methods, sample computations, and 
text or graphical charts that characterize the public risk to 
geographical areas for each launch.
    (2) Geographic data showing:
    (i) The launch vehicle nominal, five-sigma left-crossrange and five-
sigma right-crossrange instantaneous impact point ground traces;
    (ii) All exclusion zones relative to the instantaneous impact point 
ground traces; and
    (iii) All populated areas included in the debris risk analysis.
    (3) A discussion of each launch vehicle failure scenario accounted 
for in the analysis and the probability of occurrence, which may vary 
with flight time, for each failure scenario. This information must 
include failure scenarios where a launch vehicle:
    (i) Flies within normal limits until some malfunction causes 
spontaneous breakup; and
    (ii) Experiences malfunction turns.

[[Page 632]]

    (4) A population model applicable to the launch overflight regions 
that contains the following: Region identification, location of the 
center of each population center by geodetic latitude and longitude, 
total area, number of persons in each population center, and a 
description of the shelter characteristics within the population center.
    (5) A description of the launch vehicle, including general 
information concerning the nature and purpose of the launch and an 
overview of the launch vehicle, including a scaled diagram of the 
general arrangement and dimensions of the vehicle. A launch operator's 
debris risk analysis products may reference other documentation filed 
with the FAA containing this information. The description must include:
    (i) Weights and dimensions of each stage.
    (ii) Weights and dimensions of any booster motors attached.
    (iii) The types of fuel used in each stage and booster.
    (iv) Weights and dimensions of all interstage adapters and skirts.
    (v) Payload dimensions, materials, construction, and any payload 
fuel; payload fairing construction, materials, and dimensions; and any 
non-inert components or materials that add to the effective casualty 
area of the debris, such as radioactive or toxic materials or high-
pressure vessels.
    (6) A typical sequence of events showing times of ignition, cutoff, 
burnout, and jettison of each stage, firing of any ullage rockets, and 
starting and ending times of coast periods and control modes.
    (7) The following information for each launch vehicle motor:
    (i) Propellant type and composition;
    (ii) Vacuum thrust profile;
    (iii) Propellant weight and total motor weight as a function of 
time;
    (iv) A description of each nozzle and steering mechanism;
    (v) For solid rocket motors, internal pressure and average 
propellant thickness, or borehole radius, as a function of time;
    (vi) Burn rate; and
    (vii) Nozzle exit and entrance areas.
    (8) The launch vehicle's launch and failure history, including a 
summary of past vehicle performance. For a new vehicle with little or no 
flight history, a launch operator must provide all known data on similar 
vehicles that include:
    (i) Identification of the launches that have occurred;
    (ii) Launch date, location, and direction of each launch;
    (iii) The number of launches that performed normally;
    (iv) Behavior and impact location of each abnormal experience;
    (v) The time, altitude, and nature of each malfunction; and
    (vi) Descriptions of corrective actions taken, including changes in 
vehicle design, flight termination, and guidance and control hardware 
and software.
    (9) The values of probability of impact (PI) and expected casualty 
(Ec) for each populated area.

                       C417.11 Collision avoidance

    (a) General. A flight safety analysis must include a collision 
avoidance analysis that satisfies the requirements of Sec. 417.231. 
This section applies to a launch operator obtaining a collision 
avoidance assessment from United States Strategic Command as required by 
Sec. 417.231 and to the analysis products that the launch operator must 
file with the FAA as required by Sec. 417.203(e). United States 
Strategic Command refers to a collision avoidance analysis for a space 
launch as a conjunction on launch assessment.
    (b) Analysis not required. A collision avoidance analysis is not 
required if the maximum altitude attainable by the launch operator's 
unguided suborbital launch vehicle is less than the altitude of the 
lowest manned or mannable orbiting object. The maximum altitude 
attainable means an optimized trajectory, assuming 3-sigma maximum 
performance, extended through fuel exhaustion of each stage, to achieve 
a maximum altitude.
    (c) Analysis constraints. A launch operator must satisfy the 
following when obtaining and implementing the results of a collision 
avoidance analysis:
    (1) A launch operator must provide United States Strategic Command 
with the launch window and trajectory data needed to perform a collision 
avoidance analysis for a launch as required by paragraph (d) of this 
section, at least 15 days before the first attempt at flight. The FAA 
will identify a launch operator to United States Strategic Command as 
part of issuing a license and provide a launch operator with current 
United States Strategic Command contact information.
    (2) A launch operator must obtain a collision avoidance analysis 
performed by United States Strategic Command 6 hours before the 
beginning of a launch window.
    (3) A launch operator may use a collision avoidance analysis for 12 
hours from the time that United States Strategic Command determines the 
state vectors of the manned or mannable orbiting objects. If a launch 
operator needs an updated collision avoidance analysis due to a launch 
delay, the launch operator must file the request with United States 
Strategic Command at least 12 hours prior to the beginning of the new 
launch window.
    (4) For every 90 minutes, or portion of 90 minutes, that pass 
between the time United States Strategic Command last determined the 
state vectors of the orbiting objects, a launch operator must expand 
each wait in a

[[Page 633]]

launch window by subtracting 15 seconds from the start of the wait in 
the launch window and adding 15 seconds to the end of the wait in the 
launch window. A launch operator must incorporate all the resulting 
waits in the launch window into its flight commit criteria established 
as required by Sec. 417.113.
    (d) Information required. A launch operator must prepare a collision 
avoidance analysis worksheet for each launch using a standardized format 
that contains the input data required by this paragraph. A launch 
operator must file the input data with United States Strategic Command 
for the purposes of completing a collision avoidance analysis.
    (1) Launch information. A launch operator must file the following 
launch information:
    (i) Mission name. A mnemonic given to the launch vehicle/payload 
combination identifying the launch mission from all others.
    (ii) Segment number. A segment is defined as a launch vehicle stage 
or payload after the thrusting portion of its flight has ended. This 
includes the jettison or deployment of any stage or payload. A launch 
operator must provide a separate worksheet for each segment. For each 
segment, a launch operator must determine the ``vector at injection'' as 
defined by paragraph (d)(5) of this section. The data must present each 
segment number as a sequence number relative to the total number of 
segments for a launch, such as ``1 of 5.''
    (iii) Launch window. The launch window opening and closing times in 
Greenwich Mean Time (referred to as ZULU time) and the Julian dates for 
each scheduled launch attempt.
    (2) Point of contact. The person or office within a launch 
operator's organization that collects, analyzes, and distributes 
collision avoidance analysis results.
    (3) Collision avoidance analysis results transmission medium. A 
launch operator must identify the transmission medium, such as voice, 
FAX, or e-mail, for receiving results from United States Strategic 
Command.
    (4) Requestor launch operator needs. A launch operator must indicate 
the types of analysis output formats required for establishing flight 
commit criteria for a launch:
    (i) Waits. All the times within the launch window during which 
flight must not be initiated.
    (ii) Windows. All the times within an overall launch window during 
which flight may be initiated.
    (5) Vector at injection. A launch operator must identify the vector 
at injection for each segment. ``Vector at injection'' identifies the 
position and velocity of all orbital or suborbital segments after the 
thrust for a segment has ended.
    (i) Epoch. The epoch time, in Greenwich Mean Time (GMT), of the 
expected launch vehicle liftoff time.
    (ii) Position and velocity. The position coordinates in the EFG 
coordinate system measured in kilometers and the EFG components measured 
in kilometers per second, of each launch vehicle stage or payload after 
any burnout, jettison, or deployment.
    (6) Time of powered flight. The elapsed time in seconds, from 
liftoff to arrival at the launch vehicle vector at injection. The input 
data must include the time of powered flight for each stage or 
jettisoned component measured from liftoff.
    (7) Time span for launch window file (LWF). A launch operator must 
provide the following information regarding its launch window:
    (i) Launch window. The launch window measured in minutes from the 
initial proposed liftoff time.
    (ii) Time of powered flight. The time provided as required by 
paragraph (d)(6) of this section measured in minutes rounded up to the 
nearest integer minute.
    (iii) Screen duration. The time duration, after all thrusting 
periods of flight have ended, that a collision avoidance analysis must 
screen for potential conjunctions with manned or mannable orbital 
objects. Screen duration is measured in minutes.
    (iv) Extra pad. An additional period of time for collision avoidance 
analysis screening to ensure the entire trajectory time is screened for 
potential conjunctions with manned or mannable orbital objects. This 
time must be 10 minutes unless otherwise specified by United States 
Strategic Command.
    (v) Total. The summation total of the time spans provided as 
required by paragraphs (d)(7)(i) through (d)(7)(iv) expressed in 
minutes.
    (8) Screening. A launch operator must select spherical or 
ellipsoidal screening as defined in this paragraph for determining any 
conjunction. The default must be the spherical screening method using an 
avoidance radius of 200 kilometers for manned or mannable orbiting 
objects. If the launch operator requests screening for any unmanned or 
unmannable objects, the default must be the spherical screening method 
using a miss-distance of 25 kilometers.
    (i) Spherical screening. Spherical screening utilizes an impact 
exclusion sphere centered on each orbiting object's center-of-mass to 
determine any conjunction. A launch operator must specify the avoidance 
radius for manned or mannable objects and for any unmanned or unmannable 
objects if the launch operator elects to perform the analysis for 
unmanned or unmannable objects.
    (ii) Ellipsoidal screening. Ellipsoidal screening utilizes an impact 
exclusion ellipsoid of revolution centered on the orbiting object's 
center-of-mass to determine any conjunction. A launch operator must 
provide input in the UVW coordinate system in kilometers. The launch 
operator must provide delta-U

[[Page 634]]

measured in the radial-track direction, delta-V measured in the in-track 
direction, and delta-W measured in the cross-range direction.
    (9) Deliverable schedule/need dates. A launch operator must identify 
the times before flight, referred to as ``L-times,'' for which the 
launch operator requests a collision avoidance analysis.
    (e) Collision avoidance assessment products. A launch operator must 
file its collision avoidance analysis products as required by Sec. 
417.203(e) and must include the input data required by paragraph (d) of 
this section. A launch operator must incorporate the result of the 
collision avoidance analysis into its flight commit criteria established 
as required by Sec. 417.113.



Sec. Appendix D to Part 417--Flight Termination Systems, Components, 

              Installation, and Monitoring

                             D417.1 General

    This appendix applies to each flight termination system and the 
components that make up the system for each launch. Section 417.301 
requires that a launch operator's flight safety system include a flight 
termination system that complies with this appendix. Section 417.301 
also contains requirements that apply to a launch operator's 
demonstration of compliance with the requirements of this appendix.

        D417.3 Flight termination system functional requirements

    (a) When a flight safety system terminates the flight of a vehicle 
because it has either violated a flight safety rule as defined in Sec. 
417.113 or the vehicle inadvertently separates or destructs as described 
in section D417.11, a flight termination system must:
    (1) Render each propulsion system that has the capability of 
reaching a populated or other protected area, incapable of propulsion, 
without significant lateral or longitudinal deviation in the impact 
point. This includes each stage and any strap on motor or propulsion 
system that is part of any payload;
    (2) Terminate the flight of any inadvertently or prematurely 
separated propulsion system capable of reaching a populated or other 
protected area;
    (3) Destroy the pressure integrity of any solid propellant system to 
terminate all thrust or ensure that any residual thrust causes the 
propulsion system to tumble without significant lateral or longitudinal 
deviation in the impact point; and
    (4) Disperse any liquid propellant, whether by rupturing the 
propellant tank or other equivalent method, and initiate burning of any 
toxic liquid propellant.
    (b) A flight termination system must not cause any solid or liquid 
propellant to detonate.
    (c) The flight termination of a propulsion system must not interfere 
with the flight termination of any other propulsion system.

                 D417.5 Flight termination system design

    (a) Reliability prediction. A flight termination system must have a 
predicted reliability of 0.999 at a confidence level of 95 percent. A 
launch operator must demonstrate the system's predicted reliability by 
satisfying the requirements for system reliability analysis of Sec. 
417.309(b).
    (b) Single fault tolerance. A flight termination system, including 
monitoring and checkout circuits, must not have a single failure point 
that would:
    (1) Inhibit functioning of the system during flight; or
    (2) Produce an inadvertent initiation of the system that would 
endanger the public.
    (c) Redundancy. A flight termination system must use redundant 
components that are structurally, electrically, and mechanically 
separated. Each redundant component's mounting on a launch vehicle, 
including location or orientation, must ensure that any failure that 
will damage, destroy or otherwise inhibit the operation of one redundant 
component will not inhibit the operation of the other redundant 
component and will not inhibit functioning of the system. Each of the 
following exceptions applies:
    (1) Any linear shaped charge need not be redundant if it initiates 
at both ends, and the initiation source for one end is not the same as 
the initiation source for the other end; or
    (2) Any passive component such as an antenna or radio frequency 
coupler need not be redundant if it satisfies the requirements of this 
appendix.
    (d) System independence. A flight termination system must operate 
independently of any other launch vehicle system. The failure of another 
launch vehicle system must not inhibit the functioning of a flight 
termination system. A flight termination system may share a component 
with another launch vehicle system, only if the launch operator 
demonstrates that sharing the component will not degrade the flight 
termination system's reliability. A flight termination system may share 
a connection with another system if the connection must exist to satisfy 
a flight termination system requirement, such as any connection needed 
to:
    (1) Accomplish flight termination system arming and safing;
    (2) Provide data to the telemetry system; or
    (3) Accomplish any engine shut-down.
    (e) Performance specifications for components and parts. Each flight 
termination system component and each part that can affect the

[[Page 635]]

reliability of a flight termination component during flight must have 
written performance specifications that show, and contain the details 
of, how the component or part satisfies the requirements of this 
appendix.
    (f) Ability to test. A flight termination system, including each 
component and associated ground support and monitoring equipment, must 
satisfy the tests required by appendix E of this part.
    (g) Software safety critical functions. The requirements of Sec. 
417.123 apply to any computing system, software or firmware that is 
associated with a flight termination system and performs a software 
safety critical function as defined in Sec. 417.123.
    (h) Component storage, operating, and service life. Each flight 
termination system component must have a specified storage life, 
operating life, and service life and must satisfy all of the following:
    (1) Each component must satisfy all its performance specifications 
when subjected to the full length of its specified storage life, 
operating life, and service life; and
    (2) A component's storage, operating, or service life must not 
expire before flight. A launch operator may extend an ordnance 
component's service life by satisfying the service life extension tests 
of appendix E of this part.
    (i) Consistency of components. A launch operator must ensure that 
each flight component sample is manufactured using parts, materials, 
processes, quality controls, and procedures that are each consistent 
with the manufacture of each qualification test sample.

       D417.7 Flight termination system environment survivability

    (a) General. A flight termination system, including all of its 
components, mounting hardware, cables, and wires, must each satisfy all 
of their performance specifications when subjected to each maximum 
predicted operating and non-operating environment and environmental 
design margin required by this appendix. As an alternative to subjecting 
the flight termination system to the maximum predicted environments and 
margin for each dynamic operating environment, such as vibration or 
shock, a flight termination system need only satisfy all its performance 
specifications when subjected to an environmental level greater than the 
level that would cause structural breakup of the launch vehicle.
    (b) Maximum predicted environments. A launch operator must determine 
all maximum predicted non-operating and operating environments that a 
flight termination system, including each component, will experience 
before its safe flight state. This determination must be based on 
analysis, modeling, testing, or monitoring. Non-operating and operating 
environments include temperature, vibration, shock, acceleration, 
acoustic, and other environments that apply to a specific launch vehicle 
and launch site, such as humidity, salt fog, dust, fungus, explosive 
atmosphere, and electromagnetic energy. Both of the following apply:
    (1) Each maximum predicted vibration, shock, and thermal environment 
for a flight termination system component must include a margin that 
accounts for the uncertainty due to flight-to-flight variability and any 
analytical uncertainty. For a launch vehicle configuration for which 
there have been fewer than three flights, the margin must be no less 
than plus 3 dB for vibration, plus 4.5 dB for shock, and plus and minus 
11 [deg]C for thermal range; and
    (2) For a launch vehicle configuration for which there have been 
fewer than three flights, a launch operator must monitor flight 
environments at as many locations within the launch vehicle as needed to 
verify the maximum predicted flight environments for each flight 
termination system component. An exception is that the launch operator 
may obtain empirical shock environment data through ground testing. A 
launch operator must adjust each maximum predicted flight environment 
for any future launch to account for all data obtained through 
monitoring.
    (c) Thermal environment. A component must satisfy all its 
performance specifications when exposed to preflight and flight thermal 
cycle environments. A thermal cycle must begin with the component at 
ambient temperature. The cycle must continue as the component is heated 
or cooled to achieve the required dwell time at one extreme of the 
required thermal range, then to achieve the required dwell time at the 
other extreme, and then back to ambient temperature. Each cycle, 
including all dwell times, must be continuous without interruption by 
any other period of heating or cooling. Paragraphs (c)(2) through (c)(6) 
of this section identify the required thermal range for each component. 
A thermal cycle must include no less than a one-hour dwell time at each 
temperature extreme. The thermal rate of change between the extremes 
must be no less than the maximum predicted thermal rate of change or 1 
[deg]C per minute, whichever is greater. For an ordnance device, the 
thermal cycle must include no less than a two-hour dwell time at each 
temperature extreme. The thermal rate of change between the extremes for 
an ordnance device must be no less than the maximum predicted thermal 
rate of change or 3 [deg]C per minute, whichever is greater.
    (1) Acceptance-number of thermal cycles. For each component, the 
acceptance-number of thermal cycles must be no less than eight thermal 
cycles or 1.5 times the maximum number of thermal cycles that the 
component could experience during launch processing and flight, 
including all launch delays

[[Page 636]]

and recycling, rounded up to the nearest whole number, whichever is 
greater.
    (2) Passive components. A passive component must satisfy all its 
performance specifications when subjected to:
    (i) The acceptance-number of thermal cycles from one extreme of the 
maximum predicted thermal range to the other extreme; and
    (ii) Three times the acceptance-number of thermal cycles from the 
lower of -34 [deg]C or the predicted lowest temperature minus 10 [deg]C, 
to the higher of 71 [deg]C or the predicted highest temperature plus 10 
[deg]C.
    (3) Electronic components. An electronic flight termination system 
component, including any component that contains an active electronic 
piece-part such as a microcircuit, transistor, or diode must satisfy all 
its performance specifications when subjected to:
    (i) The sum of ten thermal cycles and the acceptance-number of 
thermal cycles from one extreme of the maximum predicted thermal range 
to the other extreme; and
    (ii) Three times the acceptance-number of thermal cycles from the 
lower of -34 [deg]C or the predicted lowest temperature minus 10 [deg]C, 
to the higher of 71 [deg]C or the predicted highest temperature plus 10 
[deg]C.
    (4) Power source thermal design. A flight termination system power 
source, including any battery, must satisfy all its performance 
specifications when exposed to preflight and flight thermal 
environments. The power source must satisfy the following:
    (i) A silver zinc battery must satisfy all its performance 
specifications when subjected to the acceptance-number of thermal cycles 
from 10 [deg]C lower than the lowest temperature of the battery's 
maximum predicted temperature range to 10 [deg]C higher than the highest 
temperature of the range. An exception is that each thermal cycle may 
range from 5.5 [deg]C lower than the lowest temperature of the battery's 
maximum predicted temperature range to 10 [deg]C higher than the highest 
temperature of the range if the launch operator monitors the battery's 
operating temperature on the launch vehicle with an accuracy of no less 
than 1.5 [deg]C.
    (ii) A nickel cadmium battery must satisfy all its performance 
specifications when subjected to three times the acceptance-number of 
thermal cycles from the lower of -20 [deg]C or the predicted lowest 
temperature minus 10 [deg]C, to the higher of 40 [deg]C or the predicted 
highest temperature plus 10 [deg]C.
    (iii) Any other power source must satisfy all its performance 
specifications when subjected to three times the acceptance-number of 
thermal cycles from 10 [deg]C lower than the lowest temperature of the 
maximum predicted temperature range to 10 [deg]C higher the highest 
temperature of the range.
    (5) Electro-mechanical safe-and-arm devices with internal 
explosives. A safe-and-arm device must satisfy all its performance 
specifications when subjected to:
    (i) The acceptance-number of thermal cycles from one extreme of the 
maximum predicted thermal range to the other extreme; and
    (ii) Three times the acceptance-number of thermal cycles from the 
lower of -34 [deg]C or the predicted lowest temperature minus 10 [deg]C, 
to the higher of 71 [deg]C or the predicted highest temperature plus 10 
[deg]C.
    (6) Ordnance thermal design. An ordnance device and any associated 
hardware must satisfy all its performance specifications when subjected 
to the acceptance-number of thermal cycles from the lower of -54 [deg]C 
or the predicted lowest temperature minus 10 [deg]C, to the higher of 71 
[deg]C or the predicted highest temperature plus 10 [deg]C. Each cycle 
must include a two-hour dwell time at each temperature extreme and a 
thermal rate of change between the extremes must be no less than the 
maximum predicted thermal rate of change or 3 [deg]C per minute, 
whichever is greater.
    (d) Random vibration. A component must satisfy all its performance 
specifications when exposed to a composite vibration level profile 
consisting of the higher of 6 dB above the maximum predicted flight 
random vibration level or a 12.2Grms workmanship screening level, across 
the 20 Hz to 2000 Hz spectrum of the two levels. The component must 
satisfy all its performance specifications when exposed to three times 
the maximum predicted random vibration duration time or three minutes 
per axis, whichever is greater, on each of three mutually perpendicular 
axes and for all frequencies from 20 Hz to 2000 Hz.
    (e) Sinusoidal vibration. A component must satisfy all its 
performance specifications when exposed to 6 dB above the maximum 
predicted flight sinusoidal vibration level. The component must satisfy 
all its performance specifications when exposed to three times the 
maximum predicted sinusoidal vibration duration time on each of three 
mutually perpendicular axes and for all frequencies from 50% lower than 
the predicted lowest frequency to 50% higher than the predicted highest 
frequency. The sweep rate must be no greater than one-third the maximum 
predicted sweep rate on each of the three axes.
    (f) Transportation vibration. A component must satisfy all its 
performance specifications when exposed to 6 dB above the maximum 
predicted transportation vibration level to be experienced when the 
component is in the configuration in which it is transported, for three 
times the maximum predicted transportation exposure time. A component 
must also satisfy all its performance specifications when exposed to the 
workmanship screening vibration levels and duration required by section 
E417.9(f).
    (g) Pyrotechnic shock.

[[Page 637]]

    (1) A flight termination system component must satisfy all its 
performance specifications when exposed to the greater of:
    (i) A force of 6 dB above the maximum predicted pyrotechnic shock 
level to be experienced during flight with a shock frequency response 
range from 100 Hz to 10,000 Hz; or
    (ii) The minimum breakup qualification shock levels and frequencies 
required by Table E417.11-2 of appendix E of this part.
    (2) A component must satisfy all its performance specifications 
after it experiences a total of 18 shocks consisting of three shocks in 
each direction, positive and negative, for each of three mutually 
perpendicular axes.
    (h) Transportation shock. A flight termination system component must 
satisfy all its performance specifications after being exposed to the 
maximum predicted shock to be experienced during transportation while in 
the configuration in which it is packed for transport.
    (i) Bench handling shock. A flight termination system component must 
satisfy all its performance specifications after being exposed to the 
maximum predicted shock to be experienced during handling in its 
unpacked configuration.
    (j) Acceleration environment. A flight termination system component 
must satisfy all its performance specifications when exposed to launch 
vehicle breakup acceleration levels or twice the maximum predicted 
flight acceleration levels, whichever is greater. The component must 
satisfy all its performance specifications when exposed to three times 
the maximum predicted acceleration duration for each of three mutually 
perpendicular axes.
    (k) Acoustic environment. A flight termination system component must 
satisfy all its performance specifications when exposed to 6 dB above 
the maximum predicted sound pressure level. The component must satisfy 
all its performance specifications when exposed to three times the 
maximum predicted sound pressure duration time or three minutes, 
whichever is greater for each of three mutually perpendicular axes. The 
frequency must range from 20 Hz to 2000 Hz.
    (l) Other environments. A flight termination system component must 
satisfy all its performance specifications after experiencing any other 
environment that it could experience during transportation, storage, 
preflight processing, or preflight system testing. Such environments 
include storage temperature, humidity, salt fog, fine sand, fungus, 
explosive atmosphere, and electromagnetic energy environments.

                     D417.9 Command destruct system

    (a) A flight termination system must include a command destruct 
system that is initiated by radio command and satisfies the requirements 
of this section.
    (b) A command destruct system must have its radio frequency 
components on or above the last launch vehicle stage capable of reaching 
a populated or other protected area before the planned safe flight state 
for the launch.
    (c) The initiation of a command destruct system must result in 
accomplishing all the flight termination system functions of section 
D417.3.
    (d) At any point along the nominal trajectory from liftoff until no 
longer required by Sec. 417.107, a command destruct system must operate 
with a radio frequency input signal that has an electromagnetic field 
intensity of 12 dB below the intensity provided by the command 
transmitter system under nominal conditions over 95 percent of the 
radiation sphere surrounding the launch vehicle.
    (e) A command destruct system must survive the breakup of the launch 
vehicle until the system accomplishes all its flight termination 
functions or until breakup of the vehicle, including the use of any 
automatic or inadvertent separation destruct system, accomplishes the 
required flight termination.
    (f) A command destruct system must receive and process a valid 
flight termination system arm command before accepting a flight 
termination system destruct command.
    (g) For any liquid propellant, a command destruct system must allow 
a flight safety official to non-destructively shut down any thrusting 
liquid engine by command before destroying the launch vehicle.

       D417.11 Automatic or inadvertent separation destruct system

    (a) A flight termination system must include an automatic or 
inadvertent separation destruct system for each stage or strap-on motor 
capable of reaching a protected area before the planned safe flight 
state for each launch if the stage or strap-on motor does not possess a 
complete command destruct system. Any automatic or inadvertent 
separation destruct system must satisfy the requirements of this 
section.
    (b) The initiation of an automatic or inadvertent separation 
destruct system must accomplish all flight termination system functions 
of section D417.3 that apply to the stage or strap-on motor on which it 
is installed.
    (c) An inadvertent separation destruct system must activate when it 
senses any launch vehicle breakup or premature separation of the stage 
or strap-on motor on which the inadvertent separation destruct system is 
located.
    (d) A launch operator must locate an automatic or inadvertent 
separation destruct system so that it will survive launch vehicle 
breakup until the system activates and accomplishes all its flight 
termination functions.

[[Page 638]]

    (e) For any electrically initiated automatic or inadvertent 
separation destruct system, each power source that supplies energy to 
initiate the destruct ordnance must be on the same stage or strap-on 
motor as the system.

           D417.13 Flight termination system safing and arming

    (a) General. A flight termination system must provide for safing and 
arming of all flight termination system ordnance through the use of a 
mechanical barrier or other positive means of interrupting power to each 
of the ordnance firing circuits to prevent inadvertent initiation of 
ordnance.
    (b) Flight termination system arming. A flight termination system 
must provide for each flight termination system ordnance initiation 
device or arming device to be armed and all electronic flight 
termination system components to be turned on before arming any launch 
vehicle or payload propulsion ignition circuits. For a launch where 
propulsive ignition occurs after first motion of the launch vehicle, the 
system must include an ignition interlock that prevents the arming of 
any launch vehicle or payload propulsion ignition circuit unless all 
flight termination system ordnance initiation devices and arming devices 
are armed and all electronic flight termination system components are 
turned on.
    (c) Preflight safing. A flight termination system must provide for 
remote and redundant safing of all flight termination system ordnance 
before flight and during any launch abort or recycle operation.
    (d) In-flight safing. Any safing of flight termination system 
ordnance during flight must satisfy all of the following:
    (1) Any onboard launch vehicle hardware or software used to 
automatically safe flight termination system ordnance must be single 
fault tolerant against inadvertent safing. Any automatic safing must 
satisfy all of the following:
    (i) Any automatic safing must occur only when the flight of the 
launch vehicle satisfies the safing criteria for no less than two 
different safing parameters or conditions, such as time of flight, 
propellant depletion, acceleration, or altitude. The safing criteria for 
each different safing parameter or condition must ensure that the flight 
termination system on a stage or strap-on-motor can only be safed once 
the stage or strap-on motor attains orbit or can no longer reach a 
populated or other protected area;
    (ii) Any automatic safing must ensure that all flight termination 
system ordnance initiation devices and arming devices remain armed and 
all electronic flight termination system components remain powered 
during flight until the requirements of paragraph (d)(1)(i) of this 
section are satisfied and the system is safed; and
    (iii) If operation of the launch vehicle could result in 
satisfaction of the safing criteria for one of the two safing parameters 
or conditions before normal thrust termination of the stage or strap-on 
motor to which the parameter or condition applies, the launch operator 
must demonstrate that the greatest remaining thrust, assuming a three-
sigma maximum engine performance, cannot result in the stage or strap-on 
motor reaching a populated or other protected area;
    (2) If a radio command safes a flight termination system, the 
command control system used for in-flight safing must be single fault 
tolerant against inadvertent transmission of a safing command under 
Sec. 417.303(d).

             D417.15 Flight termination system installation

    (a) A launch operator must establish and implement written 
procedures to ensure that all flight termination system components are 
installed on a launch vehicle according to the qualified flight 
termination system design. The procedures must ensure that:
    (1) The installation of all flight termination system mechanical 
interfaces is complete;
    (2) Installation personnel use calibrated tools to install ordnance 
when a specific standoff distance is necessary to ensure that the 
ordnance has the desired effect on the material it is designed to cut or 
otherwise destroy; and
    (3) Each person involved is qualified for each task that person is 
to perform.
    (b) Flight termination system installation procedures must include:
    (1) A description of each task to be performed, each facility to be 
used, and each hazard involved;
    (2) A checklist of tools and equipment required;
    (3) A list of personnel required for performing each task;
    (4) Step-by-step directions written with sufficient detail for a 
qualified person to perform each task;
    (5) Identification of any tolerances that must be met during the 
installation; and
    (6) Steps for inspection of installed flight termination system 
components, including quality assurance oversight procedures.
    (c) The personnel performing a flight termination system 
installation procedure must signify that the procedure is accomplished, 
and record the outcome and any data verifying successful installation.

              D417.17 Flight termination system monitoring

    (a) A flight termination system must interface with the launch 
vehicle's telemetry system to provide the data that the flight safety 
system crew needs to evaluate the

[[Page 639]]

health and status of the flight termination system prior to and during 
flight.
    (b) The telemetry data must include:
    (1) Signal strength for each command destruct receiver;
    (2) Whether the power to each electronic flight termination system 
component is on or off;
    (3) Status of output commands for each command destruct receiver and 
each automatic or inadvertent separation destruct system;
    (4) Safe or arm status of each safe-and-arm device of sections 
D417.35 and D417.39;
    (5) Voltage for each flight termination system battery;
    (6) Current for each flight termination system battery;
    (7) Status of any electrical inhibit at the system level that is 
critical to the operation of a flight termination system and is not 
otherwise identified by this appendix;
    (8) Status of any exploding bridgewire firing unit, including arm 
input, power level, firing capacitor charge level, and trigger capacitor 
charge level;
    (9) Temperature of each flight termination system battery, whether 
monitored at each battery or in the immediate vicinity of each battery 
so that each battery's temperature can be derived; and
    (10) Status of each switch used to provide power to a flight 
termination system, including any switch used to change from an external 
power source to an internal power source.

 D417.19 Flight termination system electrical components and electronic 
                                circuitry

    (a) General. All flight termination system electrical components and 
electronic circuitry must satisfy the requirements of this section.
    (b) Electronic piece-parts. Each electronic piece-part that can 
affect the reliability of an electrical component or electronic 
circuitry during flight must satisfy Sec. 417.309(b)(2) of this part.
    (c) Over and under input voltage protection. A flight termination 
system component must satisfy all its performance specifications and not 
sustain any damage when subjected to a maximum input voltage of no less 
than the maximum open circuit voltage of the component's power source. 
The component must satisfy all its performance specifications and not 
sustain any damage when subjected to a minimum input voltage of no 
greater than the minimum loaded voltage of the component's power source.
    (d) Series-redundant circuit. A flight termination system component 
that uses a series-redundant branch in a firing circuit to satisfy the 
prohibition against a single failure point must possess one or more 
monitoring circuits or test points for verifying the integrity of each 
series-redundant branch after assembly and during testing.
    (e) Power control and switching. In the event of an input power 
dropout, a power control or switching circuit, including any solid-state 
power transfer switch and arm-and-enable circuit must not change state 
for 50 milliseconds or more. Any electromechanical, solid-state, or 
relay component used in a flight termination system firing circuit must 
be capable of delivering the maximum firing current for no less than 10 
times the duration of the intended firing pulse.
    (f) Circuit isolation, shielding, and grounding. The circuitry of a 
flight termination system component must be shielded, filtered, 
grounded, or otherwise isolated to preclude any energy sources, internal 
or external to the launch vehicle, such as electromagnetic energy, 
static electricity, or stray electrical currents, from causing 
interference that would inhibit the flight termination system from 
functioning or cause an undesired output of the system. An electrical 
firing circuit must have a single-point ground connection directly to 
the power source only.
    (g) Circuit protection. Any circuit protection provided within a 
flight termination system must satisfy all of the following:
    (1) Electronic circuitry must not contain protection devices, such 
as fuses, except as allowed by paragraph (g)(2) of this section. A 
destruct circuit may employ current limiting resistors;
    (2) Any electronic circuit designed to shut down or disable a launch 
vehicle engine and that interfaces with a launch vehicle function must 
use one or more devices, such as fuses, circuit breakers, or limiting 
resistors, to protect against over-current, including any direct short; 
and
    (3) The design of a flight termination system output circuit that 
interfaces with another launch vehicle circuit must prevent any launch 
vehicle circuit failure from disabling or degrading the flight 
termination system's performance.
    (h) Repetitive functioning. Each circuit, element, component, and 
subsystem of a flight termination system must satisfy all its 
performance specifications when subjected to repetitive functioning for 
five times the expected number of cycles required for all acceptance 
testing, checkout, and operations, including re-tests caused by schedule 
or other delays.
    (i) Watchdog circuits. A flight termination system or component must 
not use a watchdog circuit that automatically shuts down or disables 
circuitry during flight.
    (j) Self-test capability. If a flight termination system component 
uses a microprocessor, the component and the microprocessor must perform 
self-tests, detect errors, and relay the results through telemetry 
during flight to the launch operator. The execution of a self-test must 
not inhibit the

[[Page 640]]

intended processing function of the unit or cause any output to change.
    (k) Electromagnetic interference protection. The design of a flight 
termination system component must eliminate the possibility of the 
maximum predicted electromagnetic interference emissions or 
susceptibilities, whether conducted or radiated, from affecting the 
component's performance. A component's electromagnetic interference 
susceptibility level must ensure that the component satisfies all its 
performance specifications when subjected to the maximum predicted 
emission levels of all other launch vehicle components and external 
sources to which the component would be exposed.
    (l) Ordnance initiator circuits. An ordnance initiator circuit that 
is part of a flight termination system must satisfy all of the 
following:
    (1) An ordnance initiator circuit must deliver an operating current 
of no less than 150% of the initiator's all-fire qualification current 
level when operating at the lowest battery voltage and under the worse 
case system tolerances allowed by the system design limits;
    (2) For a low voltage ordnance initiator with an electro-explosive 
device that initiates at less than 50 volts, the initiator's circuitry 
must limit the power at each associated electro-explosive device that 
could be produced by an electromagnetic environment to a level at least 
20 dB below the pin-to-pin direct current no-fire power of the electro-
explosive device; and
    (3) For a high voltage ordnance initiator that initiates ordnance at 
greater than 1,000 volts, the initiator must include safe-and-arm plugs 
that interrupt power to the main initiator's charging circuits, such as 
the trigger and output capacitors. A high voltage initiator's circuitry 
must ensure that the power that could be produced at the initiator's 
command input by an electromagnetic environment is no greater than 20 dB 
below the initiator's firing level.

           D417.21 Flight termination system monitor circuits

    (a) Each parameter measurement made by a monitor circuit must show 
the status of the parameter.
    (b) Each monitor circuit must be independent of any firing circuit. 
A monitor, control, or checkout circuit must not share a connector with 
a firing circuit.
    (c) A monitor circuit must not route through a safe-and-arm plug.
    (d) Any monitor current in an electro-explosive device system firing 
line must not exceed one-tenth of the no-fire current of the electro-
explosive device.
    (e) Resolution, accuracy, and data rates for each monitoring circuit 
must provide for detecting whether performance specifications are 
satisfied and detecting any out-of-family conditions.

            D417.23 Flight termination system ordnance train

    (a) An ordnance train must consist of all components responsible for 
initiation, transfer, and output of an explosive charge. Ordnance train 
components must include, initiators, energy transfer lines, boosters, 
explosive manifolds, and destruct charges.
    (b) The reliability of an ordnance train to initiate ordnance, 
including the ability to propagate a charge across any ordnance 
interface, must be 0.999 at a 95% confidence level.
    (c) The decomposition, cook-off, sublimation, auto-ignition, and 
melting temperatures of all flight termination system ordnance must be 
no less than 30(C higher than the maximum predicted environmental 
temperature to which the material will be exposed during storage, 
handling, installation, transportation, and flight.
    (d) An ordnance train must include initiation devices that can be 
connected or removed from the destruct charge. The design of an ordnance 
train must provide for easy access to the initiation devices.

                D417.25 Radio frequency receiving system

    (a) General. A radio frequency receiving system must include each 
flight termination system antenna, radio frequency coupler, any radio 
frequency cable, or other passive device used to connect a flight 
termination system antenna to a command receiver decoder. The system 
must deliver command control system radio frequency energy that 
satisfies all its performance specifications to each flight termination 
system command receiver decoder when subjected to performance 
degradation caused by command control system transmitter variations, 
launch vehicle flight conditions, and flight termination system hardware 
performance variations.
    (b) Sensitivity. A radio frequency receiving system must provide 
command signals to each command receiver decoder at an electromagnetic 
field intensity of no less than 12dB above the level required for 
reliable receiver operation. The system must satisfy the 12-dB margin 
over 95% of the antenna radiation sphere surrounding the launch vehicle 
and must account for command control system radio frequency transmitter 
characteristics, airborne system characteristics including antenna gain, 
path loses due to plume or flame attenuation, and vehicle trajectory. 
For each launch, the system must satisfy the 12-dB margin at any point 
along the nominal trajectory until the planned safe flight state for the 
launch.
    (c) Antenna. All of the following apply to each flight termination 
system antenna:

[[Page 641]]

    (1) A flight termination system antenna must have a radio frequency 
bandwidth that is no less than two times the total combined maximum 
tolerances of all applicable radio frequency performance factors. The 
performance factors must include frequency modulation deviation, command 
control transmitter inaccuracies, and variations in hardware performance 
during thermal and dynamic environments;
    (2) A launch operator must treat any thermal protection used on a 
flight termination system antenna as part of the antenna; and
    (3) A flight termination system antenna must be compatible with the 
command control system transmitting equipment.
    (d) Radio frequency coupler. A flight termination system must use a 
passive radio frequency coupler to combine radio frequency signals 
inputs from each flight termination system antenna and distribute the 
required signal level to each command receiver. A radio frequency 
coupler must satisfy all of the following:
    (1) A radio frequency coupler must prevent any single point failure 
in one redundant command receiver or antenna from affecting any other 
redundant command receiver or antenna by providing isolation between 
each port. An open or short circuit in one redundant command destruct 
receiver or antenna path must not prevent the functioning of the other 
command destruct receiver or antenna path;
    (2) Each input port must be isolated from all other input ports;
    (3) Each output port must be isolated from all other output ports; 
and
    (4) A radio frequency coupler must provide for a radio frequency 
bandwidth that exceeds two times the total combined maximum tolerances 
of all applicable radio frequency performance factors. The performance 
factors must include frequency modulation deviation of multiple tones, 
command control transmitter inaccuracies, and variations in hardware 
performance during thermal and dynamic environments.

                      D417.27 Electronic components

    (a) General. The requirements in this section apply to each 
electronic component that contains piece-part circuitry and is part of a 
flight termination system, including each command receiver decoder. Each 
piece-part used in an electronic component must satisfy Sec. 
417.309(b)(2) of this part.
    (b) Response time. Each electronic component's response time must be 
such that the total flight termination system response time, from 
receipt of a destruct command sequence to initiation of destruct output, 
is less than or equal to the response time used in the time delay 
analysis required by Sec. 417.221.
    (c) Wire and connectors. All wire and connectors used in an 
electronic component must satisfy section D417.31.
    (d) Adjustment. An electronic component must not require any 
adjustment after successful completion of acceptance testing.
    (e) Self-test. The design of an electronic component that uses a 
microprocessor must provide for the component to perform a self-test, 
detect errors, and relay the results through telemetry during flight to 
the launch operator. The execution of a self-test must not inhibit the 
intended processing function of the unit or cause any output to change 
state.
    (f) Electronic component repetitive functioning. An electronic 
component, including all its circuitry and parts, must satisfy all its 
performance specifications when subjected to repetitive functioning for 
five times the total expected number of cycles required for acceptance 
tests, preflight tests, and flight operations, including potential 
retests due to schedule delays.
    (g) Acquisition of test data. The test requirements of appendix E of 
this part apply to all electronic components. Each electronic component 
must allow for separate component testing and the recording of 
parameters that verify its functional performance, including the status 
of any command output, during testing.
    (h) Warm-up time. The warm-up time that an electronic component 
needs to ensure reliable operation must be no greater than the warm-up 
time that is incorporated into the preflight testing of appendix E of 
this part.
    (i) Electronic component circuit protection. An electronic component 
must include circuit protection for power and control circuitry, 
including switching circuitry. The circuit protection must ensure that 
the component satisfies all its performance specifications when 
subjected to launch processing and flight environments. An electronic 
component's circuit protection must satisfy all of the following:
    (1) Circuit protection must provide for an electronic component to 
satisfy all its performance specifications when subjected to the open 
circuit voltage of the component's power source for no less than twice 
the expected duration and when subjected to the minimum input voltage of 
the loaded voltage of the power source for no less than twice the 
expected duration;
    (2) In the event of an input power dropout, any control or switching 
circuit critical to the reliable operation of a component, including 
solid-state power transfer switches, must not change state for at least 
50 milliseconds;
    (3) An electronic component must not use a watchdog circuit that 
automatically shuts down or disables the component during flight;

[[Page 642]]

    (4) An electronic component must satisfy all its performance 
specifications when any of its monitoring circuits or nondestruct output 
ports are subjected to a short circuit or the highest positive or 
negative voltage capable of being supplied by the monitor batteries or 
other power supplies where the voltage lasts for no less than five 
minutes; and
    (5) An electronic component must satisfy all its performance 
specifications when subjected to any undetectable reverse polarity 
voltage that can occur during launch processing for no less than five 
minutes.
    (j) Electromagnetic interference susceptibility. The design of an 
electronic component must eliminate the possibility of electromagnetic 
interference or modulated or unmodulated radio frequency emissions from 
affecting the component's performance. These electromagnetic 
interference and radio frequency environments include emissions or 
susceptibilities, whether conducted or radiated.
    (1) The susceptibility level of an electronic component must be 
below the emissions of all other launch vehicle components and external 
transmitters.
    (2) Any electromagnetic emissions from an electronic component must 
not be at a level that would affect the performance of other flight 
termination system components.
    (3) An electronic component must not produce any inadvertent command 
output and must satisfy all its performance specifications when 
subjected to external radio frequency sources and modulation schemes to 
which the component could be subjected prior to and during flight.
    (k) Output functions and monitoring. An electronic component must 
provide for all of the following output functions and monitoring:
    (1) Each series redundant branch in any firing circuit of an 
electronic component that prevents a single failure point from issuing a 
destruct output must include a monitoring circuit or test points that 
verify the integrity of each redundant branch after assembly;
    (2) Any piece-part used in a firing circuit must have the capacity 
to output at least 1.5 times the maximum firing current for no less than 
10 times the duration of the maximum firing pulse;
    (3) An electronic component's destruct output circuit and all its 
parts must deliver the required output power to the intended output load 
while operating with any input voltage that is within the component's 
input power operational design limits;
    (4) An electronic component must include monitoring circuits that 
provide for monitoring the health and performance of the component 
including the status of any command output; and
    (5) The maximum leakage current through an electronic component's 
destruct output port must:
    (i) Not degrade the performance of downstream circuitry;
    (ii) Be 20 dB lower than the level that could degrade the 
performance of any downstream ordnance initiation system or component, 
such as any electro-explosive device; and
    (iii) Be 20 dB lower than the level that could result in inadvertent 
initiation of any downstream ordnance.

                    D417.29 Command receiver decoder

    (a) General. Each command receiver decoder must:
    (1) Receive radio frequency energy from the command control system 
through the radio frequency receiving system and interpret, process, and 
send commands to the flight termination system;
    (2) Be compatible with the command control system transmitting 
equipment;
    (3) Satisfy the requirements of section D417.27 for all electronic 
components;
    (4) Satisfy all its performance specifications and reliably process 
a command signal when subjected to command control system transmitting 
equipment tolerances and flight generated signal degradation, including:
    (i) Locally induced radio frequency noise sources;
    (ii) Vehicle plume;
    (iii) The maximum predicted noise-floor;
    (iv) Command transmitter performance variations; and
    (v) Launch vehicle trajectory.
    (b) Tone-based radio frequency processing. Each tone-based command 
receiver decoder must satisfy all of the following for all pre-flight 
and flight environments:
    (1) Decoder channel deviation. A receiver decoder must reliably 
process the intended tone deviated signal at the minimum and maximum 
number of expected tones. The receiver decoder must satisfy all its 
performance specifications when subjected to:
    (i) Plus and minus 3 KHz per tone; or
    (ii) A nominal tone deviation plus twice the maximum and minus half 
the minimum of the total combined tolerances of all applicable radio 
frequency performance factors, whichever range is greater.
    (2) Operational bandwidth.
    (i) The receiver decoder's operational bandwidth must be no less 
than plus and minus 45 KHz and must ensure that the receiver decoder 
satisfies all its performance specifications at:
    (A) Twice the worst-case command control system transmitter radio 
frequency shift;
    (B) Doppler shifts of the carrier center frequency; and

[[Page 643]]

    (C) Shifts in flight hardware center frequency during flight at the 
manufacturer guaranteed receiver sensitivity.
    (ii) The operational bandwidth must account for tone deviation and 
the receiver sensitivity must not vary by more than 3dB across the 
bandwidth.
    (3) Radio frequency dynamic range. The receiver decoder must satisfy 
all its performance specifications when subjected to the variations of 
the radio frequency input signal level that will occur during checkout 
and flight. The receiver decoder must output all commands with input 
from the radio frequency threshold level up to:
    (i) The maximum radio frequency level that it will experience from 
the command control system transmitter during checkout and flight plus a 
3-dB margin; or
    (ii) 13 dBm, whichever is greater.
    (4) Capture ratio. For each launch, the receiver decoder's design 
must ensure that no transmitter with less than 80% of the power of the 
command transmitter system for the launch, could capture or interfere 
with the receiver decoder.
    (5) Radio frequency level monitor. (i) The receiver decoder must 
include a monitoring circuit that accurately monitors and outputs the 
strength of the radio frequency input signal during flight.
    (ii) The output of the monitor circuit must be directly related and 
proportional to the strength of the radio frequency input signal from 
the threshold level to saturation.
    (iii) The dynamic range of the radio frequency input from threshold 
to saturation must be no less than 50 dB. The monitor circuit output 
amplitude from threshold to saturation must have a corresponding range 
of 18 dB or greater.
    (iv) The monitor output signal level must be compatible with vehicle 
telemetry system interfaces and provide a maximum response time of 100 
ms.
    (v) The slope of the monitor circuit output must not change 
polarity.
    (6) Radio frequency threshold sensitivity. The receiver decoder's 
threshold sensitivity must satisfy its performance specifications and be 
repeatable within a tolerance of plus and minus 3 dB, to demonstrate in-
family performance.
    (7) Noise level margin. The receiver decoder's guaranteed input 
sensitivity must be no less than 6 dB higher than the maximum predicted 
noise-floor.
    (8) Voltage standing wave ratio. All radio frequency losses within 
the receiver decoder interface to the antenna system must satisfy the 
12-dB margin of Sec. 417.9(d) and be repeatable to demonstrate in-
family performance. The radio frequency receiving system and the 
impedance of the receiver decoder must match.
    (9) Decoder channel bandwidth. The receiver decoder must provide for 
reliable recognition of the command signal when subjected to variations 
in ground transmitter tone frequency and frequency modulation deviation 
variations. The command receiver must satisfy all its performance 
specifications within the specified tone filter frequency bandwidth 
using a frequency modulation tone deviation from 2 dB to 20 dB above the 
measured threshold level.
    (10) Tone balance. Any secure receiver decoder must reliably decode 
a valid command with an amplitude imbalance between two tones within the 
same message.
    (11) Message timing. Any secure receiver decoder must function 
reliably when subjected to errors in timing caused by ground transmitter 
tolerances. The receiver decoder must process commands at twice the 
maximum and one-half the minimum timing specification of the ground 
system.
    (12) Check tone. The receiver decoder must decode a tone, such as a 
pilot tone or check tone, which is representative of link and command 
closure and provide a telemetry output indicating whether the tone is 
decoded. The presence or absence of this tone signal must have no effect 
on a command receiver decoder's command processing and output 
capability.
    (c) Inadvertent command output. A command receiver decoder must 
satisfy all of the following to ensure that it does not provide an 
output other than when it receives a valid command.
    (1) Dynamic stability. The receiver decoder must not produce an 
inadvertent output when subjected to a radio frequency input short-
circuit, open-circuit, or changes in input voltage standing wave ratio.
    (2) Out of band rejection. The receiver decoder must not degrade in 
performance nor respond when subjected to any out-of-band vehicle or 
ground transmitter source that could be encountered from liftoff to the 
no-longer endanger time. The receiver decoder must not respond to 
frequencies, from 10 MHz to 1000 MHz except at the receiver specified 
operational bandwidth. The receiver decoder's radio frequency rejection 
of out of band signals must provide a minimum of 60 dB beyond eight 
times the maximum specified operational bandwidth. These frequencies 
must include all expected interfering transmitting sources using a 
minimum bandwidth of 20% of each transmitter center frequency, receiver 
image frequencies and harmonics of the assigned center frequency.
    (3) Decoder channel bandwidth rejection. The receiver decoder must 
distinguish between tones that are capable of inhibiting or 
inadvertently issuing an output command. Each tone filter must not 
respond to another tone outside the specified tone filter frequency 
bandwidth using an FM tone deviation from 2 dB to 20 dB above the 
measured threshold level.

[[Page 644]]

    (4) Adjacent tone decoder channel rejection. The receiver decoder 
must not be inhibited or inadvertently issue an output command when 
subjected to any over-modulation of adjacent tones. The tone decoder 
channels must not respond to adjacent frequency modulation-modulated 
tone channels when they are modulated with a minimum of 150% of the 
expected tone deviation.
    (5) Logic sequence. Each tone sequence used for arm and destruct 
must protect against inadvertent or unintentional destruct actions.
    (6) Destruct sequence. The receiver decoder must provide a Destruct 
command only if preceded by a valid Arm command.
    (7) Receiver abnormal logic. The receiver decoder must not respond 
to any combination of tones or tone pairs other than the correct command 
sequence.
    (8) Noise immunity. The receiver decoder must not respond to a 
frequency modulated white noise radio frequency input that has a minimum 
frequency modulated deviation of 12 dB above the measured threshold 
deviation.
    (9) Tone drop. The receiver decoder must not respond to a valid 
command output when one tone in the sequence is dropped.
    (10) Amplitude modulation rejection. The receiver decoder must not 
respond to any tone or modulated input at 50% and 100% amplitude 
modulated noise when subjected to the maximum pre-flight and flight 
input power levels.
    (11) Decoder channel deviation rejection. The receiver decoder must 
not inadvertently trigger on frequency modulated noise. The receiver 
decoder must not respond to tone modulations 10 dB below the nominal 
tone modulation or lower.

                      D417.31 Wiring and connectors

    (a) All wiring, including any cable and all connectors, that 
interface with any flight termination system component must provide for 
the component, wiring, and connectors to satisfy the qualification tests 
required by appendix E of this part.
    (b) Each connector that interfaces with a flight termination system 
component must protect against electrical dropout and ensure electrical 
continuity as needed to ensure the component satisfies all its 
performance specifications.
    (c) All wiring and connectors must have shielding that ensures the 
flight termination system satisfies all its performance specifications 
and will not experience an inadvertent destruct output when subjected to 
electromagnetic interference levels 20 dB greater than the greatest 
electromagnetic interference induced by launch vehicle and launch site 
systems.
    (d) The dielectric withstanding voltage between mutually insulated 
portions of any component part must provide for the component to 
function at the component's rated voltage and satisfy all its 
performance specifications when subjected to any momentary over-
potentials that could normally occur, such as due to switching or surge.
    (e) The insulation resistance between mutually insulated portions of 
any component must provide for the component to function at its rated 
voltage. Any insulation material must satisfy all its performance 
specifications when subjected to workmanship, heat, dirt, oxidation, or 
loss of volatile material.
    (f) The insulation resistance between wire shields and conductors, 
and between each connector pin must withstand a minimum workmanship 
voltage of at least 1,500 volts, direct current, or 150 percent of the 
rated output voltage, whichever is greater.
    (g) If any wiring or connector will experience loads with continuous 
duty cycles of 100 seconds or greater, that wiring or connector, 
including each connector pin, must have a capacity of 150% of the design 
load. If any wiring or connector will experience loads that last less 
than 100 seconds, all wiring and insulation must provide a design margin 
greater than the wire insulation temperature specification.
    (h) All wiring, including any cable or connector, must satisfy all 
its performance specifications when subjected to the pull force required 
by section E417.9(j) and any additional handling environment that the 
component could experience undetected.
    (i) Redundant circuits that can affect a flight termination system's 
reliability during flight must not share any wiring harness or connector 
with each other.
    (j) For any connector or pin connection that is not functionally 
tested once connected as part of a flight termination system or 
component, the design of the connector or pin connection must eliminate 
the possibility of a bent pin, mismating, or misalignment.
    (k) The design of a flight termination system component must prevent 
undetectable damage or overstress from occurring as the result of a bent 
connector pin. An inadvertent initiation must not occur if a bent 
connector pin:
    (1) Makes unintended contact with another pin;
    (2) Makes unintended contact with the case of the connector or 
component; or
    (3) Produces an open circuit.
    (l) Each connector that can affect a flight termination system 
component's reliability during flight must satisfy the requirements of 
Sec. 417.309(b)(2) of this part.
    (m) All connectors must positively lock to prevent inadvertent 
disconnection during launch vehicle processing and flight.
    (n) The installation of all wiring, including any cable, must 
protect against abrasion and crimping of the wiring.

[[Page 645]]

                            D417.33 Batteries

    (a) Capacity. A flight termination system battery must have a 
manufacturer-specified capacity of no less than the sum total amp-hour 
and pulse capacity needed for:
    (1) Any self discharge;
    (2) All load and activation checks;
    (3) All launch countdown checks;
    (4) Any potential hold time;
    (5) Any potential number of preflight re-tests due to potential 
schedule delays including the number of potential launch attempts that 
the battery could experience before it would have to be replaced;
    (6) Two arm and two destruct command loads at the end of the flight; 
and
    (7) A flight capacity of no less than 150% of the capacity needed to 
support a normal flight from liftoff to the planned safe flight state. 
For a launch vehicle that uses solid propellant, the flight capacity 
must be no less than a 30-minute hang-fire hold time.
    (b) Electrical characteristics. A flight termination system battery, 
under all load conditions, including line loss, must have all the 
following electrical characteristics:
    (1) The manufacturer specified minimum voltage must be no less than 
the minimum acceptance test voltage that satisfies the electrical 
component acceptance tests of appendix E of this part. For a battery 
used in a pulse application to fire an electro-explosive device, the 
manufacturer specified minimum voltage must be no less than the minimum 
qualification test voltage that satisfies the electro-explosive device 
qualification tests of appendix E of this part;
    (2) A battery that provides power to an electro-explosive device 
initiator, including to any initiator fired simultaneously with another 
initiator, must:
    (i) Deliver 150% of each electro-explosive device's all-fire current 
at the qualification test level. The battery must deliver the current to 
each ordnance initiator at the lowest system battery voltage;
    (ii) Have a current pulse that lasts ten times longer than the 
duration required to initiate the electro-explosive device or a minimum 
workmanship screening level of 200 milliseconds, whichever is greater; 
and
    (iii) Have a pulse capacity of no less than twice the expected 
number of arm and destruct command sets planned to occur during launch 
vehicle processing, preflight flight termination system end-to-end 
tests, plus flight commands including load checks, conditioning, and 
firing of initiators;
    (3) The design of a battery and any activation procedures must 
ensure uniform cell voltage after activation. Activation must include 
any battery conditioning needed to ensure uniform cell voltage, such as 
peroxide removal or nickel cadmium preparation; and
    (4) The design of a battery or the system using the battery must 
protect against undetectable damage to the battery from any reverse 
polarity, shorting, overcharging, thermal runaway, or overpressure.
    (c) Service and storage life. The service and storage life of a 
flight termination system battery must satisfy all of the following:
    (1) A flight termination system battery must have a total activated 
service life that provides for the battery to meet the capacity and 
electrical characteristics required by paragraphs (a) and (b) of this 
section; and
    (2) A flight termination system battery must have a specified 
storage life. The battery must satisfy the activated service life 
requirement of paragraph (c)(1) of this section after experiencing its 
storage life, whether stored in an activated or inactivated state.
    (d) Monitoring capability. A battery or the system that uses the 
battery must provide for monitoring the status of the battery voltage 
and current. The monitoring must be sufficient to detect the smallest 
change in voltage or current that would indicate any health problem with 
each battery. Monitoring accuracy must be consistent with the minimum 
and maximum voltage and current limits used for launch countdown. The 
design of a battery that requires heating or cooling to sustain 
performance must provide for monitoring the battery's temperature with a 
resolution of 0.5 [deg]C.
    (e) Battery identification. Each battery must have an attached 
permanent label with the component name, type of construction (including 
chemistry), manufacturer identification, part number, lot and serial 
number, date of manufacture, and storage life.
    (f) Battery temperature control. Any battery heater must ensure even 
temperature regulation of all battery cells.
    (g) Silver zinc batteries. Any silver zinc battery that is part of a 
flight termination system must satisfy all of the following:
    (1) A silver zinc battery must consist of cells assembled from 
electrode plates that are manufactured together and without 
interruption;
    (2) The design of a silver zinc battery must allow activation of 
each individual cell within the battery;
    (3) For any silver zinc battery that may vent electrolyte mist as 
part of normal operations, the battery must satisfy all its performance 
specifications for pin-to-case and pin-to-pin resistances after the 
battery experiences the maximum normal venting;
    (4) The design of a silver zinc battery and its cells must allow for 
the qualification, acceptance, and storage life extension testing 
required by appendix E of this part. A launch operator must ensure 
sufficient batteries and cells are available from the same lot to 
accomplish the required testing;
    (5) Each silver zinc battery must have attached, no less than one 
additional cell from the same production lot, with the same lot

[[Page 646]]

date code, as the cells in the battery for use in cell acceptance 
verification tests. The cell must remain attached to the battery from 
the time of assembly until performance of the acceptance tests to ensure 
that the additional cell is subjected to all the same environments as 
the complete battery;
    (6) The design of a silver zinc battery must permit voltage 
monitoring of each cell during open circuit voltage and load tests of 
the battery; and
    (7) All cell and battery parts and materials and manufacturing 
parts, materials, and processes must undergo configuration control that 
ensures that each cell and battery has repeatable in-family performance 
unless each cell and battery undergoes lot testing that demonstrates 
repeatable in-family performance. The launch operator must identify and 
implement any lot testing that replaces configuration control.
    (h) Rechargeable cells and batteries.
    (1) Any rechargeable battery or cell that is part of a flight 
termination system must satisfy all the requirements of this section for 
each charge-discharge cycle.
    (2) With the exception of any silver zinc battery, a rechargeable 
battery must satisfy all its performance specifications for five times 
the number of operating charge and discharge cycles expected of the 
battery throughout its life, including all acceptance testing, preflight 
testing, and flight. A silver zinc rechargeable battery must satisfy all 
its performance specifications for each operating charge-discharge cycle 
expected of the battery throughout its life, including all acceptance 
testing, preflight testing, and flight.
    (3) A rechargeable battery must consist of cells from the same 
production lot. For a battery that consists of commercially produced 
nickel cadmium cells, each cell must be from the same production lot of 
no less than three thousand cells that are manufactured without 
interruption.
    (4) The design of a silver zinc or commercial nickel cadmium battery 
and each of its cells must allow for the qualification and acceptance 
tests required by appendix E of this part. A launch operator must ensure 
sufficient batteries and cells are available to accomplish the required 
testing. A launch operator must identify and implement design and test 
requirements for any other type of rechargeable battery proposed for use 
as part of a flight safety system.
    (i) Commercial nickel cadmium cells and batteries. Any nickel 
cadmium battery that uses one or more commercially produced nickel 
cadmium cells and is part of a flight termination system must satisfy 
each of the following to demonstrate that each cell or battery satisfies 
all its performance specifications:
    (1) The battery or cell must have repeatable capacity and voltage 
performance. Capacity must be repeatable within one percent for each 
charge and discharge cycle.
    (2) Any battery or cell venting device must ensure that the battery 
or cell does not experience a loss of structural integrity or create a 
hazardous condition when subjected to electrical discharge, charging and 
short-circuit conditions.
    (3) The battery or cell must retain its charge and provide its 
required capacity, including the required capacity margin, from the 
final charge used prior to launch to the planned safe flight state 
during flight at the maximum pre-launch and flight temperature. The cell 
or battery must not self-discharge more than 10% of its fully charged 
capacity after 72 hours at ambient temperature.
    (4) The design of the battery must prevent current leakage from pin-
to-pin or pin-to-case from creating undesired events or battery self-
discharge. Pin-to-pin and pin-to-case resistances must be repeatable so 
that measurements of pin-to-pin and pin-to-case resistances can 
establish in-family performance and determine whether all battery wiring 
and connectors are installed according to the manufacturer's design 
specifications.
    (5) The battery or battery case must be sealed to the required leak 
rate and not loose structural integrity or create a hazardous condition 
when subjected to the predicted operating conditions plus all required 
margins including any battery short-circuit. The battery or battery case 
must maintain its structural integrity when subjected to no less than 
1.5 times the greatest operating pressure differential that could occur 
under qualification testing, preflight, or flight conditions.
    (6) Any battery voltage, current, or temperature monitoring circuit 
that is part of the battery must have resolution, accuracy, and data 
rates that all for detecting whether the performance specifications are 
satisfied and detecting any out-of-family conditions.
    (7) Any battery heater circuit, including any thermostat must ensure 
that all cells are heated uniformly and must allow for repeatable 
battery performance that satisfies all the battery's performance 
specifications. Any heating must ensure that cells are not overstressed 
due to excessive temperature. The thermostat tolerances must ensure that 
the battery remains within its thermal design limits.
    (8) The battery or cell must satisfy all its electrical performance 
specifications and be in-family while subjected to all pre-flight and 
flight environments, including hot and cold temperature, and all 
required electrical loads at the beginning, middle, and end of its 
manufacturer specified capacity.

[[Page 647]]

    D417.35 Electro-mechanical safe-and-arm devices with an internal 
                        electro-explosive device

    (a) This section applies to any electro-mechanical safe-and-arm 
device that has an internal electro-explosive device and is part of a 
flight termination system. A safe-and-arm device must provide for safing 
and arming of the flight termination system ordnance to satisfy section 
D417.13.
    (b) A safe-and-arm device in the arm position must remain in the arm 
position and satisfy all its performance specifications when subjected 
to the design environmental levels determined under section D417.7.
    (c) All wiring and connectors used in a safe-and-arm device must 
satisfy section D417.31.
    (d) Each piece-part that is used in the firing circuit of a safe-
and-arm device and that can affect the reliability of the device during 
flight must satisfy Sec. 417.309(b)(2) of this part.
    (e) A safe-and-arm device's internal electro-explosive device must 
satisfy the requirements for an ordnance initiator of section D417.41.
    (f) A safe-and-arm device must not require any adjustment throughout 
its service life.
    (g) A safe-and-arm device's internal electrical firing circuitry, 
such as wiring, connectors, and switch deck contacts, must satisfy all 
its performance specifications when subjected to an electrical current 
pulse with an energy level of no less than 150% of the internal electro-
explosive device's all-fire energy level for 10 times as long as the 
all-fire pulse lasts. A safe-and-arm device must deliver this firing 
pulse to the internal electro-explosive device without any dropout that 
could affect the electro-explosive device's performance when subjected 
to the design environmental levels.
    (h) A safe-and-arm device must satisfy all its performance 
specifications after being exposed to the handling drop required by 
section E417.9(k) and any additional transportation, handling, or 
installation environment that the device could experience undetected.
    (i) A safe-and-arm device must not initiate and must allow for safe 
disposal after experiencing the abnormal drop required by section 
E417.9(l).
    (j) When a safe-and-arm device's electro-explosive device is 
initiated, the safe- and arm-device's body must not fragment, regardless 
of whether the explosive transfer system is connected or not.
    (k) When dual electro-explosive devices are used within a single 
safe-and-arm device, the design must ensure that one electro-explosive 
device does not affect the performance of the other electro-explosive 
device.
    (l) A safe-and-arm device must satisfy all its performance 
specifications when subjected to no less than five times the total 
number of safe and arm cycles required for the combination of all 
acceptance tests, preflight tests, and flight operations, including an 
allowance for potential re-tests due to schedule changes.
    (m) The design of a safe-and-arm device must allow for separate 
component testing and recording of parameters that verify its functional 
performance , and the status of any command output during the tests 
required by section E417.25.
    (n) A safe-and-arm device must be environmentally sealed to the 
equivalent of 10-4 scc/sec of helium at one atmosphere 
differential or the device must provide other means of withstanding non-
operating environments, such as salt-fog and humidity, experienced 
during storage, transportation and preflight testing.
    (o) The safing of a safe-and-arm device must satisfy all of the 
following:
    (1) While in the safe position, a safe-and-arm device must protect 
each internal electro-explosive device from any condition that could 
degrade the electro-explosive device's performance and prevent 
inadvertent initiation during transportation, storage, preflight 
testing, and any preflight fault conditions.
    (2) While in the safe position, a safe-and-arm device's electrical 
input firing circuit must prevent degradation in performance or 
inadvertent initiation of the electro-explosive device when the safe-
and-arm device is subjected to any external energy source, such as 
static discharge, radio frequency energy, or firing voltage.
    (3) While in the safe position, a safe-and-arm device must prevent 
the initiation of its internal electro-explosive device and any other 
ordnance train component, with a reliability of 0.999 at a 95% 
confidence level.
    (4) A safe-and-arm device must satisfy all its performance 
specifications when in the safe position and subjected to the continuous 
operational arming voltage required by section E417.25(d).
    (5) A safe-and-arm device must not initiate its electro-explosive 
device or any other ordnance train component when locked in the safe 
position and subjected to the continuous operational arming voltage 
required by section E417.25(e)(3).
    (6) A safe-and-arm device must have a visual display of its status 
on the device and remote display of the status when the device is in the 
safe position. When transitioning from the arm to safe position, the 
safe indication must not appear unless the position of the safe-and-arm 
device has progressed more than 50% beyond the no-fire transition 
motion.
    (7) A safe-and-arm device must have a remote means of moving its 
rotor or barrier to the safe position from any rotor or barrier 
position.

[[Page 648]]

    (8) A safe-and-arm device must have a manual means of moving its 
rotor or barrier to the safe position.
    (9) A safe-and-arm device must have a safing interlock that prevents 
movement from the safe position to the arm position while operational 
arming current is being applied. The interlock must have a means of 
positively locking into place and must allow for verification of proper 
functioning. The interlock removal design or procedure must eliminate 
the possibility of accidental disconnection of the interlock.
    (p) The arming of a safe-and-arm device must satisfy all of the 
following:
    (1) When a safe-and-arm device is in the arm position, all ordnance 
interfaces, such as electro-explosive device, rotor charge, and 
explosive transfer system components must align with one another to 
ensure propagation of the explosive charge with a reliability of 0.999 
at a 95% confidence level;
    (2) When in the arm position, the greatest energy supplied to a 
safe-and-arm device's electro-explosive device from electronic circuit 
leakage and radio frequency energy must be no greater than 20 dB below 
the guaranteed no-fire level of the electro-explosive device;
    (3) A safe-and-arm device must have a visual display of its status 
on the device and provide for remote display of the status when the 
device is in the arm position. The arm indication must not appear unless 
the safe-and-arm device is armed as required by paragraph (o)(1) of this 
section; and
    (4) A safe-and-arm device must provide for remote arming of the 
device.

                D417.37 Exploding bridgewire firing unit

    (a) General. This section applies to any exploding bridgewire firing 
unit that is part of a flight termination system. An exploding 
bridgewire firing unit must provide for safing and arming of the flight 
termination system ordnance to satisfy section D417.13. An exploding 
bridgewire firing unit must satisfy the requirements for electronic 
components of section D417.29.
    (b) Charging and discharging. An exploding bridgewire firing unit 
must have a remote means of charging and discharging of the unit's 
firing capacitor and an external means of positively interrupting the 
firing capacitor charging voltage.
    (c) Input command processing. An exploding bridgewire firing unit's 
electrical input processing circuitry must satisfy all of the following:
    (1) An exploding bridgewire firing unit's input circuitry must 
function, when subjected to the greatest potential electromagnetic 
interference noise environments, without inadvertently triggering;
    (2) In the firing circuit of an exploding bridgewire firing unit, 
all series redundant branches that prevent any single failure point from 
issuing a destruct output must include monitoring circuits or test 
points for verifying the integrity of each redundant branch after 
assembly;
    (3) The unit input trigger circuitry of an exploding bridgewire 
firing unit must maintain a minimum 20 dB margin between the threshold 
trigger level and the worst-case noise environment;
    (4) An exploding bridgewire firing unit must have a minimum trigger 
sensitivity that provides for the unit to fire at 6 dB lower in 
amplitude and one-half the duration of the worst-case trigger signal 
that the unit could receive during flight;
    (5) In the event of a power dropout, any control or switching 
circuit critical to the reliable operation of an exploding bridgewire 
firing unit, including solid-state power transfer switches, must not 
change state for 50 milliseconds or more; and
    (6) An exploding bridgewire firing unit's response time must satisfy 
all its performance specifications for the range of input trigger 
signals from the specified minimum trigger signal amplitude and duration 
to the specified maximum trigger signal amplitude and duration.
    (d) High voltage output. An exploding bridgewire firing unit's high 
voltage discharge circuit must satisfy all of the following:
    (1) An exploding bridgewire firing unit must include circuits for 
capacitor charging, bleeding, charge interruption, and triggering;
    (2) An exploding bridgewire firing unit must have a single fault 
tolerant capacitor discharge capability;
    (3) An exploding bridgewire firing unit must deliver a voltage to 
the exploding bridgewire that is no less than 50% greater than the 
exploding bridgewire's minimum all-fire voltage, not including 
transmission losses, at the unit's worst-case high and low arming 
voltages;
    (4) The design of an exploding bridgewire firing unit must prevent 
corona and arcing on internal and external high voltage circuitry;
    (5) An exploding bridgewire firing unit must satisfy all its 
performance specifications at the worst-case high and low arm voltages 
that could be delivered during flight; and
    (6) Any high energy trigger circuit used to initiate exploding 
bridgewire firing unit's main firing capacitor must deliver an output 
signal of no less than a 50% voltage margin above the nominal voltage 
threshold level.
    (e) Output monitors. The monitoring circuits of an exploding 
bridgewire firing unit must provide the data for real-time checkout and 
determination of the firing unit's acceptability for flight. The 
monitored data must include the voltage level of all high

[[Page 649]]

voltage capacitors and the arming power to the firing unit.

  D417.39 Ordnance interrupter safe-and-arm device without an electro-
                            explosive device

    (a) This section applies to any ordnance interrupter safe-and-arm 
device that does not have an internal electro-explosive device and is 
part of a flight termination system. An ordnance interrupter must 
provide for safing and arming of the flight termination system ordnance 
to satisfy section D417.13.
    (b) An ordnance interrupter must remain in the armed position and 
satisfy all its performance specifications when subjected to the design 
environmental levels determined according to section D417.7.
    (c) An ordnance interrupter must not require adjustment throughout 
its service life.
    (d) An ordnance interrupter must satisfy all its performance 
specifications after experiencing any transportation, handling, or 
installation environment that the device could experience undetected.
    (e) An ordnance interrupter that uses ordnance rotor leads must not 
initiate and must allow for safe disposal after experiencing the worst-
case drop and resulting impact that it could experience during storage, 
transportation, or installation.
    (f) An ordnance interrupter must satisfy all of its performance 
specifications when subjected to repetitive functioning for five times 
the expected number of arming cycles required for acceptance testing, 
preflight checkout, and flight operations, including an allowance for 
re-tests due to potential schedule delays.
    (g) An ordnance interrupter must not fragment during ordnance 
initiation.
    (h) The design of a flight termination system must protect an 
ordnance interrupter from conditions that could degrade its performance 
or cause inadvertent initiation during transportation, storage, 
installation, preflight testing, and potential preflight fault 
conditions. Safing of an ordnance interrupter must satisfy all of the 
following:
    (1) While in the safe position, an ordnance interrupter must prevent 
the functioning of an ordnance train with a reliability of 0.999 at a 
95% confidence level;
    (2) When locked in the safe position, an ordnance interrupter must 
prevent initiation of an ordnance train. The ordnance interrupter must 
satisfy all its performance specification when locked in the safe 
position and subjected to the continuous operational arming voltage 
required by section E417.29(j);
    (3) An ordnance interrupter must not initiate its electro-explosive 
device or any other ordnance train component when locked in the safe 
position and subjected to the continuous operational arming voltage 
required by section E417.29(e)(3);
    (4) An ordnance interrupter must have a manual and a remote means of 
safing from any rotor or barrier position;
    (5) An ordnance interrupter must have a visual display of the status 
on the device and provide for remote display of the status when the 
ordnance interrupter is in the safe position; and
    (6) An ordnance interrupter must include a safing interlock that 
prevents the interrupter from moving from the safe position to the arm 
position when subjected to an operational arming current. A safing 
interlock must have a means of positively locking into place and a means 
of verifying proper function of the interlock. A safing interlock and 
any related operation procedure must eliminate the possibility of 
inadvertent disconnection of the interlock.
    (i) Arming of an ordnance interrupter must satisfy all of the 
following:
    (1) An ordnance interrupter is armed when all ordnance interfaces, 
such as a donor explosive transfer system, rotor charge, and acceptor 
explosive transfer system are aligned with one another to propagate the 
explosive charge with a reliability of 0.999 at a 95% confidence level;
    (2) An ordnance interrupter must have a visual display of the status 
on the device and provide for remote display of the status when the 
ordnance interrupter is in the arm position; and
    (3) An ordnance interrupter must provide for remote arming of the 
interrupter.

                       D417.41 Ordnance initiators

    (a) This section applies to any low-voltage electro-explosive device 
that is part of a flight termination system or high-voltage exploding 
bridgewire ordnance initiator that is part of a flight termination 
system. An ordnance initiator must use electrical energy to trigger an 
explosive charge that initiates the flight termination system ordnance.
    (b) An ordnance initiator must have a manufacturer-specified all-
fire energy level. When the all-fire energy level is applied, the 
ordnance initiator must fire with a reliability of no less than 0.999 at 
a 95 percent confidence level.
    (c) An ordnance initiator must have a specified no-fire energy 
level. An ordnance initiator must not fire when exposed to continuous 
application of the no-fire energy level, with a reliability of no less 
than 0.999 at a 95 percent confidence level. An ordnance initiator must 
satisfy all its performance specifications when subjected to continuous 
application of the no-fire energy level.
    (d) The lowest temperature at which an ordnance initiator would 
experience autoignition, sublimation, or melting or in any other way 
experience degradation in performance must be no less than 30 [deg]C 
higher than the highest temperature that the

[[Page 650]]

initiator could experience prior to or during flight.
    (e) An ordnance initiator must not fire, and must satisfy all its 
performance specifications when subjected to the maximum expected 
electrostatic discharge that it could experience from personnel or 
conductive surfaces. An ordnance initiator must not fire, and must 
satisfy all its performance specifications when subjected to workmanship 
discharges of no less than a 25-kV, 500-pF pin-to-pin discharge through 
a 5-k[Omega] resistor and a 25-kV, 500-pF pin-to-case discharge with no 
resistor.
    (f) An ordnance initiator must not initiate and must satisfy all its 
performance specifications when exposed to stray electrical current that 
is at a 20-dB margin greater than the greatest stray electrical current 
that the ordnance initiator could experience prior to or during flight. 
When determining the 20-dB margin, a launch operator must account for 
all potential sources of stray electrical current, including leakage 
current from other electronic components and radio frequency induced 
electrical current.
    (g) An ordnance initiator must satisfy all its performance 
specification after being exposed to the tensile load required by 
section E417.9(j), the handling drop required by section E417.9(k), and 
any additional transportation, handling, or installation environment 
that the device could experience undetected.
    (h) An ordnance initiator must not initiate and must allow for safe 
disposal after experiencing the abnormal drop required by section 
E417.9(l).
    (i) An ordnance initiator must be hermetically sealed to the 
equivalent of 5 x 10-6 scc/sec of helium at one atmosphere 
pressure differential.
    (j) The insulation resistance between mutually insulated points must 
ensure that an ordnance initiator satisfies all its performance 
specifications when subjected to the greater of twice the maximum 
applied voltage during testing and flight or a workmanship voltage of no 
less than 500 volts. The insulation material must satisfy all its 
performance specifications when exposed to workmanship, heat, dirt, 
oxidation, and any additional expected environment.

                      D417.43 Exploding bridgewire

    (a) This section applies to any exploding bridgewire that is part of 
a flight termination system. An exploding bridgewire must use high-
voltage electrical energy of 50 volts or greater to trigger an explosive 
charge that initiates the flight termination system ordnance.
    (b) An exploding bridgewire must satisfy the ordnance initiator 
requirements of section D417.41.
    (c) An exploding bridgewire's electrical circuitry, such as 
connectors, pins, wiring and header assembly, must transmit an all-fire 
pulse at a level 50% greater than the lowest exploding bridgewire firing 
unit's operational firing voltage. This must include allowances for 
effects such as corona and arcing of a flight configured exploding 
bridgewire exposed to altitude, thermal vacuum, salt-fog, and humidity 
environments.
    (d) An exploding bridgewire must not fragment during ordnance 
initiation.
    (e) All exploding bridgewire connector pins must withstand the 
tension and compression loads required by section E417.9(j).

                   D417.45 Percussion-activated device

    (a) This section applies to any percussion-activated device that is 
part of a flight termination system. A percussion-activated device must 
use mechanical energy to trigger an explosive charge that initiates the 
flight termination system ordnance.
    (b) A percussion-activated device's lanyard pull system must have a 
protective cover or other feature that prevents inadvertent pulling of 
the lanyard.
    (c) A percussion-activated device must not fragment upon initiation.
    (d) A percussion-activated device must have a guaranteed no-fire 
pull force of no less than twice the largest inadvertent pull force that 
the device could experience:
    (1) Any time prior to flight that the safing interlock of paragraph 
(o) of this section is not in place; or
    (2) During flight.
    (e) A percussion-activated device must not initiate when pulled with 
its maximum no-fire pull force and then released with a reliability of 
no less than 0.999 at a 95% confidence level.
    (f) A percussion-activated device must have a primer all-fire energy 
level, including spring constant and pull distance that ensures 
initiation, with a reliability of no less than 0.999 at a 95% confidence 
level when subjected to preflight and flight environments.
    (g) A percussion-activated device must deliver an operational impact 
force to the primer of no less than twice the all-fire energy level.
    (h) A percussion-activated device's primer must initiate and must 
satisfy all its performance specifications when subjected to two times 
the operational impact energy or four times the all-fire impact energy 
level.
    (i) A percussion-activated device's reliability must satisfy its 
performance specifications when subjected to a no-fire pull force and 
then released.
    (j) The lowest temperature at which a percussion-activated device 
would experience autoignition, sublimation, or melting, or in any other 
way not satisfy its performance specifications, must be no less than 30 
[deg]C higher than the highest temperature that

[[Page 651]]

the percussion-activated device could experience prior to or during 
flight.
    (k) A percussion-activated device must satisfy all its performance 
specifications after experiencing the handling drop required by section 
E417.9(k) and any additional transportation, handling, or installation 
environment that the device could experience undetected.
    (l) A percussion-activated device's ordnance must be hermetically 
sealed to the equivalent of 5 x 10-6 scc/sec of helium at one 
atmosphere differential.
    (m) A percussion-activated device's structural and firing components 
must withstand 500 percent of the largest pull or jerk force that the 
device could experience during breakup of the launch vehicle.
    (n) A percussion-activated device must not initiate and must allow 
for safe disposal after experiencing the abnormal drop required by 
section E417.9(l).
    (o) A percussion-activated device must include a safing interlock, 
such as a safing pin, that provides a physical means of preventing the 
percussion-activated device assembly from pulling more than 50% of the 
guaranteed no-fire pull distance. The following apply to a safing 
interlock:
    (1) A safing interlock must positively lock into place and must have 
a means of verifying proper function of the interlock.
    (2) A safing interlock must eliminate the possibility of inadvertent 
disconnection or removal of the interlock should a pre-load condition 
exist on the lanyard unless the device provides a visual or other means 
of verifying that there is no load on the lanyard.
    (3) A safing interlock, when in place, must prevent initiation of 
the percussion actuated device when subjected to twice the greatest 
possible inadvertent pull force that could be experienced during launch 
processing.

                    D417.47 Explosive transfer system

    (a) This section applies to any explosive transfer system that is 
part of a flight termination system. An explosive transfer system must 
transmit an explosive charge from an initiation source, such as an 
ordnance initiator, to other flight termination system ordnance such as 
a destruct charge.
    (b) Ordnance used in an explosive transfer system must consist of a 
secondary explosive. An exception to this is any transition component 
that contains a primary explosive that is fully contained within the 
transition component. Any transition component that contains a primary 
explosive must be no more sensitive to inadvertent detonation than a 
secondary explosive.
    (c) An explosive transfer system, including all donor, acceptor, and 
transition charges and components must transfer an explosive charge with 
a reliability of no less than 0.999 at a 95% confidence level.
    (d) An explosive transfer system must satisfy all its performance 
specifications with the smallest bend radius that it is subjected to 
when installed in its flight configuration.
    (e) All explosive transfer connectors must positively lock in place 
and provide for verification of proper connection through visual 
inspection.
    (f) Each explosive transfer system component must satisfy all its 
performance specifications when subjected to the tensile load required 
by section E417.9(j).
    (g) An explosive transfer system must satisfy all its performance 
specifications after experiencing the handling drop required by section 
E417.9(k) and any additional transportation, handling, or installation 
environment that the system could experience undetected.
    (h) An explosive transfer system must not initiate and must allow 
for safe disposal after experiencing the abnormal drop required by 
section E417.9(l).
    (i) An explosive transfer system must be hermetically sealed to the 
equivalent of 5 x 10-6 scc/sec of helium at one atmosphere 
pressure differential.

                         D417.49 Destruct charge

    (a) This section applies to any destruct charge that is part of a 
flight termination system. A destruct charge must sever or penetrate a 
launch vehicle component or payload, such as a propellant tank or motor 
casing, to accomplish a flight termination function.
    (b) A destruct charge must use a secondary explosive.
    (c) When initiated, a destruct charge acceptor, where applicable, or 
main charge must ensure the transfer of the explosive charge with a 
reliability of 0.999 at a 95% confidence level.
    (d) Initiation of a destruct charge must result in a flight 
termination system action in accordance with the flight termination 
system functional requirements of Sec. 417.303.
    (e) A destruct charge must sever or penetrate 150% of the thickness 
of the material that must be severed or penetrated in order for the 
destruct charge to accomplish its intended flight termination function. 
A destruct charge, when initiated to terminate the flight of a launch 
vehicle, must not detonate any launch vehicle or payload propellant.
    (f) Each destruct charge and associated fitting must satisfy all its 
performance specifications when subjected to the tensile load required 
by section E417.9(j).
    (g) A destruct charge must satisfy all its performance 
specifications after experiencing the handling drop required by section 
E417.9(k) and any additional transportation, handling, or installation 
environment that the charge could experience undetected.

[[Page 652]]

    (h) A destruct charge must not initiate and must allow for safe 
disposal after experiencing the abnormal drop required by section 
E417.9(l).
    (i) A destruct charge must be hermetically sealed to the equivalent 
of 5 x 10-6 scc/sec of helium at one atmosphere pressure 
differential.

                  D417.51 Vibration and shock isolators

    (a) This section applies to any vibration or shock isolator that is 
part of a flight safety system. A vibration or shock isolator must 
ensure the environmental survivability of a flight termination system 
component by reducing the vibration or shock levels that the component 
experiences during flight.
    (b) A vibration or shock isolator must have repeatable natural 
frequency and resonant amplification parameters when subjected to flight 
environments.
    (c) An isolator must account for all effects that could cause 
variations in repeatability, including acceleration preloads, 
temperature, component mass, and vibration level variations.
    (d) A vibration or shock isolator must satisfy all of its 
performance specifications when subjected to the qualification test 
environments for each component that is mounted on the isolator.
    (e) All components mounted on a vibration or shock isolator must 
withstand the environments introduced by isolator amplification. In 
addition, all component interface hardware, such as connectors, cables, 
and grounding straps, must withstand any added deflection introduced by 
an isolator.

                    D417.53 Miscellaneous components

    (a) This section applies to any miscellaneous flight termination 
system component that is not specifically identified by this appendix.
    (b) A miscellaneous component must satisfy all its performance 
specifications when subjected to the non-operating and operating 
environments of section D417.3.
    (c) The design of a miscellaneous component must provide for the 
component to be tested in accordance with appendix E of this part.
    (d) A launch operator must identify any additional requirements that 
apply to any new or unique component and demonstrate that those 
requirements ensure the reliability of the component.



Sec. Appendix E to Part 417--Flight Termination System Testing and 
                                Analysis

                             E417.1 General

    (a) Scope and compliance. This appendix contains requirements for 
tests and analyses that apply to all flight termination systems and the 
components that make up each flight termination system. Section 417.301 
requires that a launch operator's flight safety system employ a flight 
termination system that complies with this appendix. Section 417.301 
also contains requirements that apply to a launch operator's 
demonstration of compliance with the requirement of this appendix. A 
launch operator must employ on its launch vehicle only those flight 
termination system components that satisfy the requirements of this 
appendix.
    (b) Component tests and analyses. A component must satisfy each test 
or analysis required by any table of this appendix to demonstrate that 
the component satisfies all its performance specifications when 
subjected to non-operating and operating environments. A launch operator 
must identify and implement any additional test or analysis for any new 
technology or any unique application of an existing technology.
    (c) Test plans. Each test of a component, subsystem, or system must 
follow a written plan that specifies the test parameters, including 
pass/fail criteria, and a testing sequence that satisfy the requirements 
of this appendix. For any component that is used for more than one 
flight, the test plan must provide for component reuse qualification, 
refurbishment, and acceptance as required by section E417.7(g). The test 
plan must include any alternate procedures for testing a component when 
it is in place on the launch vehicle.
    (d) Test failures. If a test of a component results in a failure, 
the component does not satisfy the test requirement. Each of the 
following is a test failure:
    (1) Any component sample that does not satisfy a performance 
specification;
    (2) Any failure to accomplish a test objective;
    (3) Any component sample with a test result that indicates that the 
component is out-of-family when compared to other samples of the 
component, even if the component satisfies other test criteria;
    (4) Any unexpected change in the performance of a component sample 
occurring at any time during testing;
    (5) Any component sample that exhibits any sign that a part is 
stressed beyond its design limit, such as a cracked circuit board, bent 
clamps, worn part, or loose connector or screw, even if the component 
passes the final functional test;
    (6) When component examination shows any defect that could adversely 
affect the component's performance;
    (7) Any discontinuity or dropout in a measured performance parameter 
that could prevent the component from satisfying a performance 
specification;
    (8) Any inadvertent output; or
    (9) Any indication of internal component damage.

[[Page 653]]

    (e) Failure analysis. In the event of a test failure, the test item, 
procedures and equipment must undergo a written failure analysis. The 
failure analysis must identify the cause of the failure, the mechanism 
of the failure, and isolate the failure to the smallest replaceable item 
or items and ensure that there are no generic design, workmanship, or 
process problems with other flight components of similar configuration.
    (f) Test tolerances. Each test must apply to the nominal values 
specified by this appendix tolerances that satisfy the following:
    (1) The tolerance of any measurement taken during a functional test 
must provide the accuracy needed to detect any out-of-family or out-of-
specification anomaly.
    (2) An environmental level, such as for vibration or temperature, 
used to satisfy a component test requirement of this appendix must 
include the environment design margin required by appendix D of this 
part. The environmental level must account for any test equipment 
tolerance to ensure that the component experiences the required margin.
    (g) Test equipment. All equipment used during environmental testing 
must provide for the test item to experience the required environmental 
test levels. Any test fixture used to simultaneously test multiple 
component samples must ensure that each component sample, at each 
mounting location on the fixture experiences each required environmental 
test level. Any difference in a qualification or acceptance test fixture 
or cable must undergo an evaluation to ensure that flight hardware is 
not subjected to stresses greater than that which the unit experiences 
during qualification.
    (h) Rework and repair of components. Components that fail a test may 
undergo rework and repair and must then complete the failed test and 
each remaining test. If a repair requires disassembly of the component 
or soldering operations, the component must repeat any test necessary to 
demonstrate that the repair corrected the original anomaly and did not 
cause other damage. The total number of acceptance tests experienced by 
a repaired component must not exceed the environments for which the 
component is qualified.
    (i) Test and analysis reports. A launch operator must prepare or 
obtain one or more written reports that:
    (1) Describe all flight termination system test results and test 
conditions;
    (2) Describe any analysis performed instead of testing;
    (3) Identify, by serial number or other identification, each test 
result that applies to each system or component;
    (4) Describe any family performance data to be used for comparison 
to any subsequent test of a component or system;
    (5) Describe all performance parameter measurements made during 
component testing for comparison to each previous and subsequent test to 
identify any performance variations that may indicate a potential 
workmanship or other defect that could lead to a failure of the 
component during flight; and
    (6) Identify any test failure or anomaly, including any variation 
from an established performance baseline, with a description of the 
failure or anomaly, each corrective action taken, and all results of 
additional tests.

                E417.3 Component test and analysis tables

    (a) General. This section applies to each test and analysis table of 
this appendix. Each component or system that is identified by a table 
must satisfy each test or analysis identified by the table. Each 
component or system must satisfy a test by undergoing and passing the 
test as described in the paragraph that the table lists. In cases where 
the listed paragraph allows a test or analysis, any analysis must 
satisfy any specific requirement listed in the paragraph and must 
demonstrate one of the following:
    (1) The test environment does not apply to the component;
    (2) The test environment does not degrade the component's 
performance; or
    (3) Another test or combination of tests that the component 
undergoes places equal or greater stress on the component than the test 
in question.
    (b) Test sequence. A component or system must undergo each test in 
the same order as the table identifies the test. A launch operator may 
deviate from the test sequence if the launch operator demonstrates that 
another order will detect any component anomaly that could occur during 
testing.
    (c) Quantity of sample components tested.
    (1) For a new component, each table identifies the quantity of 
component samples that must undergo each test identified by the table.
    (2) A launch operator may test fewer samples than the quantity 
identified for a new component if the launch operator demonstrates one 
of the following:
    (i) That the component has experienced comparable environmental 
tests; or
    (ii) The component is similar to a design that has experienced 
comparable environmental tests.
    (3) Any component that a launch operator uses for any comparison to 
a new component must have undergone all the environmental tests required 
for the new component to develop cumulative effects.
    (d) Performance verification tests. Each performance verification 
test identified by any table of this appendix must satisfy all of the 
following:

[[Page 654]]

    (1) Each test must measure one or more of a component or system's 
performance parameters to demonstrate that the component or system 
satisfies all its performance specifications;
    (2) The component must undergo each test:
    (i) Before the component is exposed to each test environment; and
    (ii) After the component is exposed to the test environment to 
identify any performance degradation due to the environment; and
    (3) Any electronic component must undergo each performance 
verification test at:
    (i) The lowest operating voltage;
    (ii) Nominal operating voltage; and
    (iii) Highest operating voltage that the component could experience 
during pre-flight and flight operations.
    (e) Abbreviated performance verification tests. Each abbreviated 
performance verification test required by any table of this appendix 
must satisfy all of the following:
    (1) Each test must exercise all of a component's functions that are 
critical to a flight termination system's performance during flight
    (i) while the component is subjected to each test environment; or,
    (ii) for short duration environments such as shock, before and after 
each test;
    (2) Each test must measure a sampling of the component's critical 
performance parameters while the component is subjected to each test 
environment to demonstrate that the component satisfies all its 
performance specifications; and
    (3) Any electronic component must undergo each abbreviated 
performance verification test at the component's nominal operating 
voltage.
    (f) Status-of-health tests. Each status-of-health test required by 
any table of this appendix must satisfy all of the following:
    (1) Each test must measure one or more critical performance 
parameter to demonstrate that a component or system satisfies all its 
performance specifications;
    (2) The critical performance parameters must include those 
parameters that act as an indicator of an internal anomaly that a 
functional performance test might not detect; and
    (3) Each test must compare the results to any previous test results 
to identify any degradation in performance.

                      E417.5 Component examination

    (a) General. This section applies to each component examination 
identified by any table of this appendix. Each component examination 
must identify any manufacturing defect that the performance tests might 
not detect. The presence of a defect that could adversely affect the 
component's performance constitutes a failure.
    (b) Visual examination. A visual examination must verify that good 
workmanship was employed during manufacture of a component and that the 
component is free of any physical defect that could adversely affect 
performance. A visual examination may include the use of optical 
magnification, mirrors, or specific lighting, such as ultraviolet 
illumination.
    (c) Dimension measurement. A dimension measurement of a component 
must verify that the component satisfies all its dimensional 
specifications.
    (d) Weight measurement. A weight measurement of a component must 
verify that the component satisfies its weight specification.
    (e) Identification check. An identification check of a component 
must verify that the component has one or more identification tags that 
contain information that allows for configuration control and tracing of 
the component.
    (f) X-ray and N-ray examination. An X-ray or N-ray examination of a 
component must have a resolution that allows detailed inspection of the 
internal parts of the component and must identify any internal anomalous 
condition. The examination must include enough photographs, taken from 
different angles, to allow complete coverage of the component's internal 
parts. When utilized as a recurring inspection technique to accept 
production hardware, the examination must use the same set of angles for 
each sample of a component to allow for comparison. A certified 
technician must evaluate X-ray and N-ray photographs.
    (g) Internal inspection. An internal inspection of a component must 
demonstrate that there is no wear or damage, including any internal wear 
or damage, to the component that could adversely affect its performance 
after exposure to any test environment. An internal inspection must 
satisfy all of the following:
    (1) All internal components and subassemblies, such as circuit board 
traces, internal connectors, welds, screws, clamps, electronic piece 
parts, battery cell plates and separators, and mechanical subassemblies 
must undergo examination to satisfy this paragraph using an inspection 
method such as a magnifying lens or radiographic inspection;
    (2) For a component that can be disassembled, the component must 
undergo complete disassembly to the point needed to satisfy this 
paragraph; and
    (3) For a component that cannot be disassembled, such as an antenna, 
potted component, or welded structure, the component must undergo any 
special procedures needed to satisfy this paragraph, such as depotting 
the component, cutting the component into cross-sections, or 
radiographic inspection.
    (h) Leakage. A leakage test must demonstrate that a component's seal 
satisfies all its performance specifications before and

[[Page 655]]

after the component is subjected to any test environment as follows:
    (1) The test must have the resolution and sample rate to demonstrate 
that the component's leak rate is no greater than its design limit.
    (2) For an electronic component, the test must demonstrate a leak 
rate of no greater than the equivalent of 10-\4\ standard 
cubic centimeters/second (scc/sec) of helium.
    (3) For an ordnance component, the test must demonstrate a leak rate 
of no greater than the equivalent of 5 x 10-\6\ scc/sec of 
helium.

                E417.7 Qualification testing and analysis

    (a) This section applies to each qualification non-operating and 
operating test or analysis identified by any table of this appendix. A 
qualification test or analysis must demonstrate that a component will 
satisfy all its performance specifications when subjected to the design 
environmental levels required by section D417.7.
    (b) Before a component sample undergoes a qualification 
environmental test, the component sample must pass all the required 
acceptance tests.
    (c) A component must undergo each qualification test in a flight 
representative configuration, with all flight representative hardware 
such as connectors, cables, and any cable clamps, and with all 
attachment hardware, such as dynamic isolators, brackets and bolts, as 
part of that flight representative configuration.
    (d) A component must undergo re-qualification tests if there is a 
change in the design of the component or if the environmental levels to 
which it will be exposed exceed the levels for which the component is 
qualified. A component must undergo re-qualification if the 
manufacturer's location, parts, materials, or processes have changed 
since the previous qualification. A change in the name of the 
manufacturer as a result of a sale does not require re-qualification if 
the personnel, factory location or the parts, material and processes 
remain unchanged since the last component qualification. The extent of 
any re-qualification tests must be the same as the initial qualification 
tests except where paragraph (f) of this section applies.
    (e) A launch operator must not use for flight any component sample 
that has been subjected to a qualification test environment.
    (f) A launch operator may reduce the testing required to qualify or 
re-qualify a component's design through qualification by similarity to 
tests performed on identical or similar hardware. To qualify component 
``A'' based on similarity to component ``B'' that has already been 
qualified for use, a launch operator must demonstrate that all of the 
following conditions are satisfied:
    (1) ``B'' must have been qualified through testing, not by 
similarity;
    (2) The environments encountered by ``B'' during its qualification 
or flight history must have been equal to or more severe than the 
qualification environments required for ``A;''
    (3) ``A'' must be a minor variation of ``B.'' The demonstration that 
A is a minor variation of B must account for all of the following:
    (i) Any difference in weight, mechanical configuration, thermal 
effects, or dynamic response;
    (ii) Any change in piece-part quality level; and
    (iii) Any addition or subtraction of an electronic piece-part, 
moving part, ceramic or glass part, crystal, magnetic device, or power 
conversion or distribution equipment;
    (4) ``A'' and ``B'' must perform the same functions, with ``A'' 
having equivalent or better capability; and
    (5) The same manufacturer must produce ``A'' and ``B'' in the same 
location using identical tools and manufacturing processes;
    (g) For any flight termination system component used for more than 
one flight, the component qualification tests must demonstrate that the 
component satisfies all its performance specifications when subjected 
to:
    (1) Each qualification test environment; and
    (2) The total number of exposures to each maximum predicted 
environment for the total number of flights.

             E417.9 Qualification non-operating environments

    (a) General. This section applies to each qualification non-
operating environment test or analysis identified by any table of this 
appendix. A qualification non-operating test or analysis must 
demonstrate that a component satisfies all its performance 
specifications when subjected to each maximum predicted non-operating 
environment that the component could experience, including all storage, 
transportation, and installation environments.
    (b) Storage temperature. A storage temperature test or analysis must 
demonstrate that a component will satisfy all its performance 
specifications when subjected to the maximum predicted high and low 
temperatures, thermal cycles, and dwell-times at the high and low 
temperatures that the component could experience under storage 
conditions as follows:
    (1) Any storage temperature test must subject the component to the 
range of temperatures from 10 [deg]C lower than the maximum predicted 
storage thermal range to 10 [deg]C higher. The rate of change from one 
thermal extreme to the other must be no less than the maximum predicted 
thermal rate of

[[Page 656]]

change. All thermal dwell-times and thermal cycles must be no less than 
those of the maximum predicted storage environment.
    (2) Any analysis must demonstrate that the qualification operating 
thermal cycle environment is more severe than the storage thermal 
environment by satisfying one of the following:
    (i) The analysis must include thermal fatigue equivalence 
calculations that demonstrate that the large change in temperature for a 
few thermal cycles experienced during flight is a more severe 
environment than the relatively small change in temperature for many 
thermal cycles that would be experienced during storage; or
    (ii) The analysis must demonstrate that the component's operating 
qualification thermal cycle range encompasses -34 [deg]C to 71 [deg]C 
and that any temperature variation that the component experiences during 
storage does not exceed 22 [deg]C.
    (c) High-temperature storage of ordnance. A component may undergo a 
high-temperature storage test to extend the service-life of an ordnance 
component production lot from one year to three or five years as 
permitted by any test table of this appendix. The test must demonstrate 
that each component sample satisfies all its performance specifications 
after being subjected to +71 [deg]C and 40 to 60 percent relative 
humidity for no less than 30 days each.
    (d) Transportation shock. A transportation shock test or analysis 
must demonstrate that a component satisfies all its performance 
specifications after being subjected to the maximum predicted 
transportation induced shock levels that the component could experience 
when transported in its transported configuration. Any analysis must 
demonstrate that the qualification operating shock environment is more 
severe than the transportation shock environment.
    (e) Bench handling shock. A bench handling shock test must 
demonstrate that a component satisfies all its performance 
specifications after being subjected to maximum predicted bench handling 
induced shock levels. The test must include, for each orientation that 
could occur during servicing; a drop from the maximum predicted handling 
height onto a representative surface.
    (f) Transportation vibration. A transportation vibration test or 
analysis must demonstrate that a component satisfies all its performance 
specifications after being subjected to a maximum predicted 
transportation-induced vibration level when transported in its 
transportation configuration as follows:
    (1) Any transportation vibration test must subject a component to 
vibration in three mutually perpendicular axes for 60 minutes per axis. 
The test must subject each axis to the following vibration profile:
    (i) 0.01500 g\2\/Hz at 10 Hz to 40 Hz;
    (ii) 0.01500 g\2\/Hz at 40 Hz to 0.00015 g\2\/Hz at 500 Hz; and
    (iii) If the component is resonant below 10 Hz, the test vibration 
profile must extend to the lowest resonant frequency.
    (2) Any analysis must demonstrate that the qualification operating 
vibration environment is more severe than the transportation vibration 
environment. The analysis must include vibration fatigue equivalence 
calculations that demonstrate that the high vibration levels with short 
duration experienced during flight creates a more severe environment 
than the relatively low-vibration levels with long duration that would 
be experienced during transportation.
    (g) Fungus resistance. A fungus resistance test or analysis must 
demonstrate that a component satisfies all its performance 
specifications after being subjected to a fungal growth environment. Any 
analysis must demonstrate that all unsealed and exposed surfaces do not 
contain nutrient materials for fungus.
    (h) Salt fog. For a component that will be exposed to salt fog, a 
salt fog test or analysis must demonstrate that the component satisfies 
all its performance specifications after being subjected to the effects 
of a moist, salt-laden atmosphere. The test or analysis must demonstrate 
the ability of all externally exposed surfaces to withstand a salt-fog 
environment. The test or analysis must demonstrate the ability of each 
internal part of a component to withstand a salt-fog environment unless 
the component is environmentally sealed, and acceptance testing verifies 
that the seal works.
    (i) Fine sand. For a component that will be exposed to fine sand or 
dust, a fine sand test or analysis must demonstrate that the component 
satisfies all its performance specifications after being subjected to 
the effects of dust or fine sand particles that may penetrate into 
cracks, crevices, bearings and joints. The test or analysis must 
demonstrate the ability of all externally exposed surfaces to withstand 
a fine sand environment. The test or analysis must demonstrate the 
ability of each internal part of a component to withstand a fine sand 
environment unless the component is environmentally sealed and 
acceptance testing verifies that the seal works.
    (j) Tensile load. A tensile load test must demonstrate that a 
component satisfies all its performance specifications after being 
exposed to tensile and compression loads of no less than twice the 
maximum predicted level during transportation and installation. In 
addition, the test load must satisfy one of the following where 
applicable:
    (1) For an explosive transfer system and its associated fittings, a 
pull of no less than 100 pounds unless the launch operator establishes 
procedural controls or tests that prevent or detect mishandling;

[[Page 657]]

    (2) For a destruct charge and its associated fittings, a pull of no 
less than 50 pounds;
    (3) For a flight radio frequency connector, a pull of no less than 
one-half the manufacturer specified limit;
    (4) For an electro-explosive device wire, a pull of no less than 18 
pounds; or
    (5) For an electrical pin of an exploding bridgewire device, no less 
than an 18-pound force in axial and compression modes.
    (k) Handling drop of ordnance. A handling drop test must demonstrate 
that an ordnance component satisfies all its performance specifications 
after experiencing the more severe of the following:
    (1) The maximum predicted drop and resulting impact that could occur 
and go undetected during storage, transportation, or installation; or
    (2) A six-foot drop onto a representative surface in any orientation 
that could occur during storage, transportation, or installation.
    (l) Abnormal drop of ordnance. An abnormal drop test must 
demonstrate that an ordnance component does not initiate and allows for 
safe disposal after experiencing the maximum predicted drop and 
resulting impact onto a representative surface in any orientation, that 
could occur during storage, transportation, or installation. The 
component need not function after this drop.

              E417.11 Qualification operating environments

    (a) General. This section applies to each qualification operating 
environment test or analysis identified by any table of this appendix. A 
qualification operating environment test must demonstrate that a 
component satisfies all of its performance specifications when subjected 
to each qualification operating environment including each physical 
environment that the component will experience during acceptance 
testing, launch countdown, and flight. The test must employ each margin 
required by this section.
    (b) Qualification sinusoidal vibration. (1) A qualification 
sinusoidal vibration test or analysis of a component must demonstrate 
that the component and each connection to any item that attaches to the 
component satisfy all their performance specifications when subjected to 
the qualification sinusoidal vibration environment. The attached items 
must include any vibration or shock isolator, grounding strap, bracket, 
explosive transfer system, or cable to the first tie-down. Any cable 
that interfaces with the component during any test must be 
representative of the cable used for flight.
    (2) The qualification sinusoidal vibration environment must be no 
less than 6dB greater than the maximum predicted sinusoidal vibration 
environment for no less than three times the maximum predicted duration.
    (3) The sinusoidal frequency must range from 50% lower than the 
maximum predicted frequency range to 50% higher than the maximum 
predicted frequency range.
    (4) Any test must satisfy all of the following:
    (i) The test must subject each of three mutually perpendicular axes 
of the component to the qualification sinusoidal vibration environment, 
one axis at a time. For each axis, the duration of the vibration must be 
no less than three times the maximum predicted sinusoidal vibration 
duration.
    (ii) The sinusoidal sweep rate must be no greater than one-third the 
maximum predicted sweep rate;
    (iii) The sinusoidal vibration test amplitude must have an accuracy 
of 10%; and
    (iv) For any component that uses one or more shock or vibration 
isolators, the component must undergo the test mounted on its isolator 
or isolators as a unit. Each isolator must satisfy the requirements of 
section E417.35.
    (5) Any analysis must demonstrate that the qualification random 
vibration environment of paragraph (c) of this section encompasses the 
qualification sinusoidal vibration environment.
    (c) Qualification random vibration. (1) A qualification random 
vibration test of a component must demonstrate that the component and 
each connection to any item that attaches to the component satisfy all 
their performance specifications when subjected to the qualification 
random vibration environment. The attached items must include any 
isolator, grounding strap, bracket, explosive transfer system, or cable 
to the first tie-down. Any cable that interfaces with the component 
during any test must be representative of the cable used for flight.
    (2) For each component required by this appendix to undergo 100% 
acceptance testing, the minimum qualification random vibration 
environment must be no less than a 3 dB margin greater than the maximum 
acceptance random vibration test environment for all frequencies from 20 
Hz to 2,000 Hz. The minimum and maximum test environments must account 
for all the test tolerances to ensure that the test maintains the 3 dB 
margin.
    (3) For each component that is not required by this appendix to 
undergo 100% acceptance testing, the minimum qualification random 
vibration environment must be no less than a 4.5-dB margin greater than 
the greater of the maximum predicted random vibration environment or the 
minimum workmanship test levels of table E417.11-1 for all frequencies 
from 20 Hz to 2000 Hz. The minimum qualification test environment must 
account for all the test tolerances to ensure that the test maintains 
the 4.5 dB margin.

[[Page 658]]

    (4) If a component is mounted on one or more shock or vibration 
isolators during flight, the component must undergo the qualification 
random vibration test while hard-mounted or isolator-mounted as follows:
    (i) Any qualification random vibration test with the component hard-
mounted must subject the component to a qualification random vibration 
environment that:
    (A) Accounts for the isolator attenuation and amplification due to 
the maximum predicted operating random vibration environment, including 
any thermal effects and acceleration pre-load performance variability, 
and adds a 1.5 dB margin to account for any isolator attenuation 
variability;
    (B) Adds the required qualification random vibration margin of 
paragraph (c)(1) or (c)(2) of this section after accounting for the 
isolator effects of paragraph (c)(4)(i)(A) of this section and accounts 
for all tolerances that apply to the isolator's performance 
specifications to ensure that the qualification test margin is 
maintained; and
    (C) Is no less than the minimum workmanship screening qualification 
random vibration level of table E417.11-1.
    (ii) Any qualification random vibration test with the component 
isolator-mounted must:
    (A) Use an isolator or isolators that passed the tests required by 
section E417.35;
    (B) Have an input to each isolator of no less than the required 
qualification random vibration environment of paragraph (c)(1) or (c)(2) 
of this section; and
    (C) Subject the component to no less than the minimum workmanship 
screening qualification random vibration level of table E417.11-1. If 
the isolator or isolators prevent the component from experiencing the 
minimum workmanship level, the component must undergo a test while hard-
mounted that subjects the component to the workmanship level.
    (5) The test must subject each component sample to the qualification 
random vibration environment in each of three mutually perpendicular 
axes. For each axis, the test must last three times as long as the 
acceptance test duration or a minimum workmanship qualification duration 
of 180 seconds, whichever is greater.
    (6) For a component sample that must experience the acceptance 
random vibration environment before it experiences the qualification 
random vibration environment, such as a command receiver decoder, the 
test must use the same configuration and methods for the acceptance and 
qualification environments.
    (7) If the duration of the qualification random vibration 
environment leaves insufficient time to complete any required 
performance verification test while the component is subjected to the 
full qualification environment, the test must continue at no less than 
the acceptance random vibration environment. The test need only continue 
for the additional time needed to complete the performance verification 
test.
    (8) The test must continuously monitor and record all performance 
and status-of-health parameters while the component is subjected to the 
qualification environment. This monitoring must have a sample rate that 
will detect any component performance degradation. Any electrical 
component must undergo the test while subjected to its nominal operating 
voltage.
    (9) A launch operator may substitute a random vibration test for 
another required dynamic test, such as acceleration, acoustic, or 
sinusoidal vibration if the launch operator demonstrates that the 
forces, displacements, and test duration imparted on a component during 
the random vibration test are no less severe than the other test 
environment.

[[Page 659]]

[GRAPHIC] [TIFF OMITTED] TR25AU06.014

    (d) Qualification acoustic. (1) A qualification acoustic vibration 
test or analysis of a component must demonstrate that the component and 
each connection to any item that attaches to the component satisfy all 
their performance specifications when subjected to the qualification 
acoustic vibration environment. The attached items must include any 
isolator, grounding strap, bracket, explosive transfer system, or cable 
to the first tie-down. Any cable that interfaces with the component 
during any test must be representative of the cable used for flight.
    (2) For each component required by this appendix to undergo 100% 
acoustic acceptance testing, the minimum qualification acoustic 
vibration environment must be greater than the maximum acceptance 
acoustic vibration test environment for all frequencies from 20 Hz to 
2000 Hz. The minimum and maximum test environments must account for all 
the test tolerances to ensure that the test maintains a positive margin 
between the minimum qualification environment and the maximum acceptance 
environment. For each acoustic vibration test required by this appendix 
to have a tolerance of 3 dB, the qualification 
test level must be 6 dB greater than the acceptance test level.
    (3) For each component that is not required by this appendix to 
undergo 100% acceptance testing, such as ordnance, the minimum 
qualification acoustic vibration environment must be no less than a 3 dB 
margin greater than the maximum predicted acoustic vibration environment 
or a minimum workmanship screening test level of 144 dBA for all 
frequencies from 20 Hz to 2000 Hz. The minimum qualification test 
environment must account for all the test tolerances to ensure that the 
test maintains the 3 dB margin. For each acoustic vibration test 
required by this appendix to have a tolerance of 3.0 dB, the qualification test level must be 6 dB 
greater than the greater of the maximum predicted environment or the 
minimum workmanship test level.
    (4) For any component that uses one or more shock or vibration 
isolators during flight, the component must undergo any qualification 
acoustic vibration test mounted on its isolator or isolators as a unit. 
Each isolator must satisfy the test requirements of section E417.35.
    (5) Any test must continuously monitor and record all performance 
and status-of-health parameters while the component is subjected to the 
qualification environment. This monitoring must have a sample rate that 
will detect any component performance degradation.
    (6) Any analysis must demonstrate that the qualification random 
vibration test environment of paragraph (c) of this section encompasses 
the qualification acoustic vibration environment. The analysis must 
demonstrate that the qualification random vibration environment is more 
severe than the

[[Page 660]]

qualification acoustic vibration environment. The analysis must account 
for all peak vibration levels and durations.
    (e) Qualification shock. (1) A qualification shock test of a 
component must demonstrate that the component and each connection to any 
item that attaches to the component satisfies all their performance 
specifications when subjected to the qualification shock environment. 
The attached items must include any isolator, grounding strap, bracket, 
explosive transfer system, or cable to the first tie-down. Any cable 
that interfaces with the component during the test must be 
representative of the cable used for flight.
    (2) The minimum qualification shock environment must be no less than 
a 3 dB margin plus the greater of the maximum predicted environment or 
the minimum breakup levels identified in table E417.11-2 for all 
frequencies from 100 Hz to 10000 Hz. The minimum qualification test 
environment must account for all the test tolerances to ensure that the 
test maintains the 3dB margin. For a shock test required by this 
appendix to have a 3 dB tolerance, the 
qualification test environment must be 6 dB greater than the greater of 
the maximum predicted shock environment or the minimum breakup test 
level.
    (3) The test must subject the component simultaneously to a shock 
transient and all the required frequencies.
    (4) The test must subject each component to three shocks in each 
direction along each of the three orthogonal axes.
    (5) The shock must last as long as the maximum predicted shock 
event.
    (6) The test must continuously monitor each component's critical 
performance parameters for any discontinuity or inadvertent output while 
the component is subjected to the shock environment.
    (7) The test must continuously monitor and record all performance 
and status-of-health parameters while the component is subjected to the 
qualification environment. This monitoring must have a sample rate of 
once every millisecond or better.
    (8) For any component that uses one or more shock or vibration 
isolators during flight, the component must undergo the qualification 
shock test mounted on its isolator or isolators. Each isolator must 
satisfy the test requirements of section E417.35.
[GRAPHIC] [TIFF OMITTED] TR25AU06.015

    (f) Qualification acceleration. (1) A qualification acceleration 
test or analysis of a component must demonstrate that the component and 
each connection to any item that attaches to the component satisfy all 
their performance specifications when subjected to the qualification 
acceleration environment. The attached items must include any isolator, 
grounding strap, bracket, explosive transfer system, or cable to the 
first tie-down. Any cable that interfaces with the component during any 
test must be representative of the cable used for flight.
    (2) The qualification acceleration test environment must be no less 
than 200% greater than the maximum predicted acceleration environment.
    (3) The qualification acceleration must last three times as long as 
the maximum predicted environment lasts in each direction for each of 
the three orthogonal axes.
    (4) For any test, if the test tolerance is more than 10%, the qualification acceleration test environment of 
paragraph (f)(1) of this section must account for the test tolerance to 
ensure that the test maintains the

[[Page 661]]

200% margin between the minimum qualification acceleration test and the 
maximum predicted environment.
    (5) Any analysis must demonstrate that the qualification operating 
random vibration test required by paragraph (c) of this section 
encompasses the qualification acceleration environment. The analysis 
must demonstrate that the qualification random vibration environment is 
equal to or more severe than the qualification acceleration environment. 
The analysis must account for the peak vibration and acceleration levels 
and durations.
    (6) Any test must continuously monitor and record all performance 
and status-of-health parameters while the component is subjected to the 
qualification environment. This monitoring must have a sample rate that 
will detect any component performance degradation.
    (7) For any component that uses one or more shock and vibration 
isolators during flight, the component must undergo any qualification 
acceleration test mounted on its isolator or isolators. Each isolator 
must satisfy the test requirements of section E417.35.
    (g) Qualification humidity. A qualification humidity test or 
analysis must demonstrate that a component satisfies all its performance 
specifications when subjected to the maximum predicted relative humidity 
environment that the component could experience when stored, 
transported, or installed as follows:
    (1) The test or analysis must demonstrate the ability of all 
externally exposed surfaces to withstand the maximum predicted relative 
humidity environment.
    (2) The test or analysis must demonstrate the ability of each 
internal part of a component to withstand the maximum predicted relative 
humidity environment unless the component is environmentally sealed and 
an acceptance test demonstrates that the seal works.
    (3) Each test must satisfy all of the following:
    (i) The test must subject the component to no less than four thermal 
cycles while the component is exposed to a relative humidity of no less 
than 95%;
    (ii) The test must measure each electrical performance parameter at 
the cold and hot temperatures during the first, middle and last thermal 
cycles; and
    (iii) The test must continuously measure and record all performance 
and status-of-health parameters with a resolution and sample rate that 
will detect any component performance degradation throughout each 
thermal cycle.
    (h) Qualification thermal cycle. A qualification thermal cycle test 
must demonstrate that a component satisfies all its performance 
specifications when subjected to the qualification thermal cycle 
environment as follows:
    (1) Electronic components. For any command receiver decoder or other 
electronic component that contains piece-part circuitry, such as 
microcircuits, transistors, diodes and relays, a qualification thermal 
cycle test must satisfy all of the following:
    (i) The qualification thermal cycle environment must range from 10 
[deg]C above the acceptance test high temperature to 10 [deg]C below the 
acceptance test low temperature;
    (ii) The test must subject a component to no less than three times 
the acceptance-number of thermal cycles. For each component, the 
acceptance-number of thermal cycles must satisfy section E417.13(d)(1). 
For each cycle, the dwell-time at each of the high and low temperatures 
must last long enough for the component to achieve internal thermal 
equilibrium and must last no less than one hour. The test must begin 
each dwell-time at each high and low temperature with the component 
turned off. The component must remain off until the temperature 
stabilizes. Once the temperature stabilizes, the component must be 
turned on and the test must complete each dwell-time with the component 
turned on;
    (iii) When heating or cooling the component, the temperature must 
change at an average rate of 1 [deg]C per minute or the maximum 
predicted rate, whichever is greater;
    (iv) The test must measure all performance parameters with the 
component powered at its low and high operating voltages when the 
component is at ambient temperature before beginning the first thermal 
cycle and after completing the last cycle. The test must measure all 
performance parameters with the component powered at its low and high 
operating voltages when the component is at the high and low 
temperatures during the first, middle, and last thermal dwell cycles; 
and
    (v) The test must continuously monitor and record all critical 
performance and status-of-health parameters during all cycles and 
thermal transitions and with the component operating at its nominal 
operating voltage. The monitoring and recording must have a resolution 
and sample rate that will detect any component performance degradation.
    (2) Passive components. For any passive component that does not 
contain an active electronic piece-part, such as a radio frequency 
antenna, coupler, or cable, a qualification thermal cycle test must 
satisfy all of the following:
    (i) The qualification thermal cycle environment must range from 10 
[deg]C above the acceptance test high temperature to 10 [deg]C below the 
acceptance test low temperature;
    (ii) The test must subject a component to no less than three times 
the acceptance-

[[Page 662]]

number of thermal cycles. For each component, the acceptance-number of 
thermal cycles must satisfy section E417.13(d)(1). For each cycle, the 
dwell-time at each high and low temperature must last long enough for 
the component to achieve internal thermal equilibrium and must last no 
less than one hour;
    (iii) When heating or cooling the component, the temperature must 
change at an average rate of 1 [deg]C per minute or the maximum 
predicted rate, whichever is greater;
    (iv) The test must measure all performance parameters when the 
component is at ambient temperature before beginning the first thermal 
cycle and after completing the last cycle. The test must measure all 
performance parameters when the component is at the high and low 
temperatures during the first, middle, and last thermal cycles; and
    (v) The test must continuously monitor and record all critical 
performance and status-of-health parameters with a resolution and sample 
rate that will detect any component performance degradation during all 
cycles and thermal transitions.
    (3) Safe-and-Arm Devices. For any electro-mechanical safe-and-arm 
device with an internal explosive, a qualification thermal cycle test 
must satisfy all of the following:
    (i) The qualification thermal cycle must range from 10 [deg]C above 
the acceptance test high temperature to 10 [deg]C below the acceptance 
test low temperature;
    (ii) The test must subject the component to no less than three times 
the acceptance-number of thermal cycles. For each component, the 
acceptance-number of thermal cycles must satisfy section E417.13(d)(1). 
For each cycle, the dwell-time at each high and low temperature must 
last long enough for the component to achieve internal thermal 
equilibrium and must last no less than one hour;
    (iii) When heating or cooling the component, the temperature must 
change at an average rate of 1 [deg]C per minute or the maximum 
predicted rate, whichever is greater;
    (iv) The test must measure all performance parameters when the 
component is at ambient temperature before beginning the first thermal 
cycle. The test must measure all performance parameters when the 
component is at the high and low temperatures during the first, middle, 
and last thermal cycles. The test must measure all performance 
parameters when the component is at ambient temperature after completing 
the last cycle; and
    (v) The test must continuously monitor and record all critical 
performance and status-of-health parameters during all temperature 
cycles and transitions using a resolution and sample rate that will 
detect any component performance degradation.
    (4) Ordnance components. For any ordnance component, a qualification 
thermal cycle test must satisfy all of the following:
    (i) The qualification thermal cycle must range from 10 [deg]C above 
the predicted highest temperature, or 71 [deg]C, whichever is higher, to 
10 [deg]C below the predicted lowest temperature, or -54 [deg]C, 
whichever is lower;
    (ii) The test must subject each ordnance component to no less than 
the acceptance-number of thermal cycles. For each component, the 
acceptance-number of thermal cycles must satisfy section E417.13(d)(1). 
For an ordnance component that is used inside a safe-and-arm device, the 
test must subject the component to three times the acceptance-number of 
thermal cycles. For each cycle, the dwell-time at each high and low 
temperature must last long enough for the component to achieve internal 
thermal equilibrium and must last no less than two hours; and
    (iii) When heating or cooling the component, the temperature must 
change at an average rate of 3 [deg]C per minute or the maximum 
predicted rate, whichever is greater.
    (i) Qualification thermal vacuum. A qualification thermal vacuum 
test or analysis must demonstrate that a component satisfies all its 
performance specifications, including structural integrity, when 
subjected to the qualification thermal vacuum environment as follows:
    (1) The qualification thermal vacuum environment must satisfy all of 
the following:
    (i) The thermal vacuum pressure gradient must equal or exceed the 
maximum predicted rate of altitude change that the component will 
experience during flight;
    (ii) The final vacuum dwell-time must last long enough for the 
component to achieve pressure equilibrium and equal or exceed the 
greater of the maximum predicted dwell-time or 12 hours;
    (iii) During the final vacuum dwell-time, the environment must 
include no less than three times the maximum predicted number of thermal 
cycles; and
    (iv) Each thermal cycle must range from 10 [deg]C above the 
acceptance thermal vacuum range, to 10 [deg]C below the acceptance 
thermal vacuum range. The acceptance thermal vacuum temperature range is 
described in section E417.13(e);
    (2) Any test must satisfy all of the following:
    (i) The test must measure all performance parameters with the 
component powered at its low and high operating voltages when the 
component is at ambient temperature before beginning the first thermal 
cycle and after completing the last cycle;
    (ii) The test must measure all performance parameters while the 
component is powered at its low and high operating voltages when

[[Page 663]]

the component is at the high and low temperatures during the first, 
middle and last thermal cycles;
    (iii) The test must continuously monitor and record all critical 
performance and status-of-health parameters during chamber pressure 
reduction and the final vacuum dwell-time, with the component at its 
high operating voltage and using a resolution and sample rate that will 
detect any component performance degradation; and
    (3) Any analysis must satisfy all of the following:
    (i) For any low voltage component of less than 50 volts, the 
analysis must demonstrate that the component is not susceptible to 
corona, arcing, or structural failure; and
    (ii) For any high voltage component of 50 volts or greater, the 
component must undergo a thermal vacuum test unless the component is 
environmentally sealed and the analysis demonstrates that any low 
voltage externally exposed part is not susceptible to corona, arcing, or 
structural failure. A component with any high voltage externally exposed 
part of 50 volts or greater must undergo a thermal vacuum test.
    (j) Electromagnetic interference and electromagnetic compatibility. 
An electromagnetic interference and electromagnetic compatibility test 
must demonstrate that a component satisfies all its performance 
specifications when subjected to radiated or conducted emissions from 
all flight vehicle systems and external ground transmitter sources. In 
addition, the test must demonstrate that the component does not radiate 
or conduct electromagnetic interference that would degrade the 
performance of any other flight termination system component.
    (k) Explosive atmosphere. An explosive atmosphere test or analysis 
must demonstrate that a component is capable of operating in an 
explosive atmosphere without creating an explosion or that the component 
is not used in an explosive environment.

                 E417.13 Acceptance testing and analysis

    (a) General. This section applies to each acceptance test or 
analysis identified by any table of this appendix. An acceptance test or 
analysis must demonstrate that a component does not have any material or 
workmanship defect that could adversely affect the component's 
performance and that the component satisfies all its performance 
specifications when subjected to each acceptance environment, including 
each workmanship and maximum predicted operating environment.
    (1) An acceptance test of a component must subject the component to 
one or more of the component's maximum predicted environments as 
determined under section D417.7. An acceptance test must not subject a 
component to a force or environment that is not tested during 
qualification testing.
    (2) Each component sample that is intended for flight must undergo 
each acceptance test identified by any table of this appendix. A single-
use component, such as ordnance or a battery, must undergo the 
production lot sample acceptance tests identified by any tables of this 
appendix.
    (3) If a launch vehicle uses a previously flown and recovered flight 
termination system component, the component must undergo one or more 
reuse acceptance tests before each next flight to demonstrate that the 
component still satisfies all its performance specifications when 
subjected to each maximum predicted environment. Each reuse acceptance 
test must be the same as the initial acceptance test for the component's 
first flight. Each reuse acceptance test must follow a written component 
reuse qualification, refurbishment, and acceptance plan and procedures. 
Each acceptance reuse test must compare performance parameter 
measurements taken during the test to all previous acceptance test 
measurements to ensure that the data show no trends that indicate any 
degradation in performance that could prevent the component from 
satisfying all its performance specifications during flight.
    (4) Each acceptance test of a component must use test tolerances 
that are consistent with the test tolerances used by each qualification 
test of the component.
    (b) Acceptance random vibration. An acceptance random vibration test 
must demonstrate that a component satisfies all its performance 
specifications when exposed to the acceptance random vibration 
environment as follows:
    (1) The acceptance random vibration environment must equal or exceed 
the greater of the maximum predicted random vibration level or the 
minimum workmanship acceptance test level of table E417.13-1, for all 
frequencies from 20 Hz to 2000 Hz, in each of three mutually 
perpendicular axes.
    (2) For each axis, the vibration must last the greater of three 
times the maximum predicted duration or a minimum workmanship screening 
level of 60 seconds.
    (3) For a component sample that undergoes qualification testing and 
must experience the acceptance environment before it experiences the 
qualification environment, such as a command receiver decoder, the test 
must use the same configuration and methods for the acceptance and 
qualification random vibration environments. An acceptance random 
vibration test of a flight component sample must use a configuration and 
method that is representative of the component's qualification tests to 
ensure that the requirements of paragraph (a) of this section are 
satisfied.
    (4) For any component that is mounted on one or more vibration or 
shock isolators during flight, the component must undergo the acceptance 
random vibration test in the

[[Page 664]]

same isolator-mounted configuration or hard-mounted configuration as the 
component's qualification random vibration test as follows:
    (i) Any hard-mounted acceptance random vibration test must subject 
the component to an acceptance random vibration environment that:
    (A) Accounts for the isolator attenuation and amplification due to 
the maximum predicted operating random vibration environment, including 
any thermal effects and acceleration pre-load performance variability, 
and adds a 1.5 dB margin to account for any isolator attenuation 
variability; and
    (B) Is no less than the minimum workmanship screening acceptance 
random vibration level of table E417.13-1.
    (ii) Any isolator-mounted acceptance random vibration test must:
    (A) Use an isolator or isolators that passed the tests required by 
section E417.35;
    (B) Have an input to each isolator of no less than the required 
acceptance random vibration environment of paragraphs (b)(1) and (b)(2) 
of this section; and
    (C) Subject the component to no less than the minimum workmanship 
screening acceptance random vibration level of table E417.13-1. If the 
isolator or isolators prevent the component from experiencing the 
minimum workmanship level, the component must undergo a hard-mount test 
that subjects the component to the workmanship level.
    (5) If the duration of the acceptance random vibration environment 
leaves insufficient time to complete any required performance 
verification test while the component is subjected to the full 
acceptance environment, the test must continue at no lower than 6 dB 
below the acceptance environment. The test need only continue for the 
additional time needed to complete the performance verification test.
    (6) The test must continuously monitor all performance and status-
of-health parameters with any electrical component at its nominal 
operating voltage. This monitoring must have a sample rate that will 
detect any component performance degradation.
[GRAPHIC] [TIFF OMITTED] TR25AU06.016

    (c) Acceptance acoustic vibration. An acceptance acoustic vibration 
test or analysis must demonstrate that a component satisfies all its 
performance specifications when exposed to the acceptance acoustic 
vibration environment as follows:
    (1) The acceptance acoustic vibration environment must satisfy all 
of the following:
    (i) The vibration level must equal or exceed the maximum predicted 
acoustic level for all frequencies from 20 Hz to 2,000 Hz in each of 
three mutually perpendicular axes; and

[[Page 665]]

    (ii) For each axis, the vibration must last the maximum predicted 
duration or 60 seconds, whichever is greater.
    (2) Any test must satisfy all of the following:
    (i) The test must continuously monitor all performance and status-
of-health parameters with any electrical component at its nominal 
operating voltage. This monitoring must have a sample rate that will 
detect any component performance degradation; and
    (ii) If the duration of the acceptance acoustic vibration 
environment leaves insufficient time to complete any required 
performance verification test while the component is subjected to the 
full acceptance environment, the test must continue at no lower than 6 
dB below the acceptance environment. The test need only continue for the 
additional time needed to complete the performance verification test.
    (3) Any analysis must demonstrate that the acceptance random 
vibration environment of paragraph (b) of this section encompasses the 
acceptance acoustic vibration environment. The analysis must demonstrate 
that the peak acceptance random vibration levels and duration are equal 
to or are more severe than the acceptance acoustic vibration 
environment.
    (d) Acceptance thermal cycle. An acceptance thermal cycle test of a 
component must demonstrate that the component satisfies all its 
performance specifications when exposed to the acceptance thermal cycle 
environment as follows:
    (1) Acceptance-number of thermal cycles. The acceptance-number of 
thermal cycles for a component means the number of thermal cycles that 
the component must experience during the test. The test must subject 
each component to no less than the greater of eight thermal cycles or 
1.5 times the maximum number of thermal cycles that the component could 
experience during launch processing and flight, including all launch 
delays and recycling, rounded up to the nearest whole number.
    (2) Electronic components. For any electronic component, an 
acceptance thermal cycle test must satisfy all of the following:
    (i) The acceptance thermal cycle environment must range from the 
higher of the maximum predicted environment high temperature or 61 
[deg]C workmanship screening level, to the lower of the predicted low 
temperature or a -24 [deg]C workmanship screening level.
    (ii) The test must subject a component to no fewer than 10 plus the 
acceptance-number of thermal cycles. For each component, the acceptance-
number of thermal cycles must satisfy this paragraph. For each cycle, 
the dwell-time at each high and low temperature must last long enough 
for the component to achieve internal thermal equilibrium and must last 
no less than one hour. The test must begin each dwell-time at each high 
and low temperature with the component turned off. The component must 
remain off until the temperature stabilizes. Once the temperature 
stabilizes, the test must complete each dwell-time with the component 
turned on.
    (iii) When heating or cooling the component, the temperature must 
change at an average rate of 1 [deg]C per minute or the maximum 
predicted rate, whichever is greater.
    (iv) The test must measure all performance parameters with the 
component powered at its low and high operating voltages when the 
component is at ambient temperature before beginning the first thermal 
cycle and after completing the last cycle.
    (v) The test must measure all performance parameters with the 
component at its low and high operating voltages when the component is 
at the high and low temperatures during the first, middle, and last 
thermal cycles.
    (vi) The test must continuously monitor and record all critical 
performance and status-of-health parameters during all cycles and 
thermal transitions and with the component at its nominal operating 
voltage. The monitoring and recording must have a resolution and sample 
rate that will detect any component performance degradation.
    (3) Passive components. For any passive component that does not 
contain any active electronic piece-part, such as any radio frequency 
antenna, coupler, or cable, an acceptance thermal cycle test must 
satisfy all of the following:
    (i) Unless otherwise noted, the acceptance thermal cycle environment 
must range from the higher of the maximum predicted environment high 
temperature or a 61 [deg]C workmanship screening temperature, to the 
lower of the predicted lowest temperature or a -24 [deg]C workmanship 
screening temperature;
    (ii) The test must subject a component to no fewer than the 
acceptance-number of thermal cycles. For each component, the acceptance-
number of thermal cycles must satisfy this paragraph. For each cycle, 
the dwell-time at each high and low temperature must last long enough 
for the component to achieve internal thermal equilibrium and must last 
no less than one hour;
    (iii) When heating or cooling the component, the temperature must 
change at an average rate of 1 [deg]C per minute or the maximum 
predicted rate, whichever is greater;
    (iv) The test must measure all performance parameters when the 
component is at ambient temperature before beginning the first thermal 
cycle and after completing the last cycle;
    (v) The test must measure all performance parameters when the 
component is at the high and low temperatures during the first, middle, 
and last thermal cycles; and

[[Page 666]]

    (vi) The test must continuously monitor and record all critical 
performance and status-of-health parameters throughout each thermal 
cycle with a resolution and sample rate that will detect any component 
performance degradation.
    (4) Safe-and-arm devices. For any electro-mechanical safe-and-arm 
device with an internal explosive, an acceptance thermal cycle test must 
satisfy all of the following:
    (i) The acceptance thermal cycle environment must range from the 
higher of the maximum predicted environment high temperature or the 
minimum workmanship screening temperature of 61 [deg]C to the lower of 
the predicted lowest temperature or the minimum workmanship screening 
temperature of -24 [deg]C.
    (ii) The test must subject a component to no fewer than the 
acceptance-number of thermal cycles. For each component, the acceptance-
number of thermal cycles must satisfy this paragraph. For each cycle, 
the dwell-time at each high and low temperature must last long enough 
for the component to achieve internal thermal equilibrium and must last 
no less than one hour.
    (iii) When heating or cooling the component, the temperature must 
change at an average rate of 1 [deg]C per minute or the maximum 
predicted rate, whichever is greater.
    (iv) The test must measure all performance parameters when the 
component is at ambient temperature before beginning the first thermal 
cycle and after completing the last cycle.
    (v) The test must measure all performance parameters including each 
critical electrical parameter, when the component is at the high and low 
temperatures during the first, middle, and last thermal cycles.
    (vi) The test must continuously monitor and record all critical 
performance and status-of-health parameters throughout each thermal 
cycle with a resolution and sample rate that will detect whether the 
component satisfies all its performance specifications.
    (e) Acceptance thermal vacuum. An acceptance thermal vacuum test or 
analysis must demonstrate that a component satisfies all its performance 
specifications when exposed to the acceptance thermal vacuum environment 
as follows:
    (1) The acceptance thermal vacuum environment must satisfy all of 
the following:
    (i) The thermal vacuum pressure gradient must equal or exceed the 
maximum predicted rate of altitude change that the component will 
experience during flight. The pressure gradient must allow for no less 
than ten minutes for reduction of chamber pressure at the pressure zone 
from ambient pressure to 20 Pascal;
    (ii) The final vacuum dwell-time must last long enough for the 
component to achieve pressure equilibrium and must last no less than the 
maximum predicted dwell-time or 12 hours, whichever is greater;
    (iii) During the final vacuum dwell-time, the environment must 
include no less than the maximum predicted number of thermal cycles; and
    (iv) Each thermal cycle must range from the higher of the maximum 
predicted environment high temperature or the workmanship screening high 
temperature of 61 [deg]C, to the lower of the predicted low temperature 
or the workmanship screening low temperature of -24 [deg]C.
    (2) Any test must satisfy all of the following:
    (i) The test must measure all performance parameters with the 
component powered at its low and high operating voltages when the 
component is at ambient temperature before beginning the first thermal 
cycle and after completing the last cycle.
    (ii) The test must measure all performance parameters with the 
component powered at its low and high operating voltages when the 
component is at the high and low temperatures during the first, middle, 
and last thermal cycles; and
    (iii) The test must continuously monitor all critical performance 
and status-of-health parameters during chamber pressure reduction and 
during the final vacuum dwell-time with the component at its high 
operating voltage. This monitoring must have a resolution and sample 
rate that will detect any component performance degradation.
    (3) Any analysis must satisfy all of the following:
    (i) For any low voltage component of less than 50 volts, any 
analysis must demonstrate that the component is not susceptible to 
corona, arcing, or structural failure; and
    (ii) Any high voltage component of 50 volts or greater must undergo 
a thermal vacuum test unless the component is environmentally sealed and 
the analysis demonstrates that any low voltage externally exposed part 
of less than 50 volts is not susceptible to corona, arcing, or 
structural failure. A component with any high voltage externally exposed 
part must undergo an acceptance thermal vacuum test.
    (f) Tensile loads. An acceptance tensile load test of a component 
must demonstrate that the component is not damaged and satisfies all its 
performance specifications after experiencing twice the maximum 
predicted pull-force that the component could experience before, during, 
or after installation.

             E417.15 Ordnance service-life extension testing

    (a) General. This section applies to each service-life extension 
test of an ordnance component that is identified by any table of this 
appendix. A service-life extension test

[[Page 667]]

must demonstrate that an ordnance component will satisfy all its 
performance specifications when subjected to non-operating and operating 
environments throughout its initial service-life and throughout any 
extension to the service-life. An ordnance component must undergo a 
service-life extension test to extend its service-life if its initial 
service-life and any previous extension will expire before the component 
is used for flight.
    (b) Service-life. An ordnance component must undergo any service-
life extension test before the component's initial service-life expires 
and again before each service-life extension expires. The initial 
service-life of an ordnance component, including any component that 
contains ordnance or is used to directly initiate ordnance, must start 
upon completion of the initial production lot sample acceptance tests 
and must include both storage time and time after installation until 
completion of flight. The test tables of this appendix identify the 
options for the length of any service-life extension for each type of 
ordnance component.
    (c) Test samples. The tables of this appendix identify the number of 
ordnance component samples that must undergo any service-life extension 
test. Each component sample must be:
    (i) From the same production lot;
    (ii) Consist of identical parts and materials;
    (iii) Manufactured through identical processes; and
    (iv) Stored with the flight ordnance component or in an environment 
that duplicates the storage conditions of the flight ordnance component.

                E417.17 Radio frequency receiving system

    (a) General. (1) This section applies to a radio frequency receiving 
system, which includes each flight termination system antenna and radio 
frequency coupler and any radio frequency cable or other passive device 
used to connect a flight termination system antenna to a command 
receiver.
    (2) The components of a radio frequency receiving system must 
satisfy each test or analysis identified by any table of this section to 
demonstrate that:
    (i) The system is capable of delivering command control system radio 
frequency energy to each flight termination system receiver; and
    (ii) The system satisfies all its performance specifications when 
subjected to each non-operating and operating environment and any 
performance degradation source. Such sources include any command control 
system transmitter variation, non-nominal launch vehicle flight 
condition, and flight termination system performance variation.

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    (b) Status-of-health. A status-of-health test of a radio frequency 
receiving system must satisfy section E417.3(f) and include antenna 
voltage standing wave ratio testing that measures the assigned operating 
frequency at the high and low frequencies of the operating bandwidth to 
verify that the antenna satisfies all its performance specifications.
    (c) Link performance. A link performance test of a radio frequency 
component or subsystem must demonstrate that the component or subsystem 
satisfies all its performance specifications when subjected to 
performance degradation caused by ground

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transmitter variations and non-nominal vehicle flight. This must include 
demonstrating all of the following:
    (1) The radio frequency receiving system provides command signals to 
each command destruct receiver at an electromagnetic field intensity of 
12 dB above the level required for reliable receiver operation over 95% 
of the antenna radiation sphere surrounding the launch vehicle;
    (2) The radio frequency coupler insertion loss and voltage standing 
wave ratio at the assigned operating frequency and at the high and low 
frequencies of the operating bandwidth satisfy all their performance 
specifications; and
    (3) The cable insertion loss at the assigned operating frequency and 
at the high and low frequencies of the operating bandwidth satisfies all 
its performance specifications.
    (d) Isolation. An isolation test of a radio frequency receiving 
system must demonstrate that each of the system's radio frequency 
couplers isolate the redundant antennas and receiver decoders from one 
another. The test must demonstrate that an open or short-circuit in one 
string of the redundant system, antenna or receiver decoder, will not 
prevent functioning of the other side of the redundant system. The test 
must demonstrate that the system satisfies all its performance 
specifications for isolation and is in-family.
    (e) Abbreviated status-of-health. An abbreviated status-of health 
test of a radio frequency receiving system component must determine any 
internal anomaly while the component is under environmental stress 
conditions. The test must include continuous monitoring of the voltage 
standing wave ratio and any other critical performance parameter that 
indicates an internal anomaly during environmental testing to detect any 
variations in amplitude. Any amplitude variation constitutes a test 
failure. The monitoring must have a sample rate that will detect any 
component performance degradation.
    (f) Antenna pattern. An antenna pattern test must demonstrate that 
the radiation gain pattern of the entire radio frequency receiving 
system, including the antenna, radio frequency cables, and radio 
frequency coupler will satisfy all the system's performance 
specifications during vehicle flight. This must include all of the 
following:
    (1) The test must determine the radiation gain pattern around the 
launch vehicle and demonstrate that the system is capable of providing 
command signals to each command receiver decoder with electromagnetic 
field intensity at a 12 dB link margin above the level required for 
reliable receiver operation. The test must demonstrate the 12-dB margin 
over 95 percent of the antenna radiation sphere surrounding the launch 
vehicle.
    (2) All test conditions must emulate flight conditions, including 
ground transmitter polarization, using a simulated flight vehicle and a 
flight configured radio frequency command destruct system.
    (3) The test must measure the radiation gain for 360 degrees around 
the launch vehicle in degree increments that are small enough to 
identify any deep pattern null and to verify that the required 12 dB 
link margin is maintained throughout flight. Each degree increment must 
not exceed two degrees.
    (4) The test must generate each antenna pattern in a data format 
that is compatible with the format needed to perform the flight safety 
system radio frequency link analysis required by Sec. 417.329(h).
    (g) Abbreviated antenna pattern. An abbreviated antenna pattern test 
must determine any antenna pattern changes that might have occurred due 
to damage to an antenna resulting from exposure to test environments. 
This must include all of the following:
    (1) The antenna must undergo the test before and after exposure to 
the qualification or acceptance test environments.
    (2) The test must use a standard ground plane test fixture. The test 
configuration need not generate antenna pattern data that is 
representative of the actual system-level patterns.
    (3) The test must include gain measurements in the 0[deg] and 
90[deg] plane vectors and a conical cut at 80[deg].

                    E417.19 Command receiver decoder

    (a) General. A command receiver decoder must satisfy each test or 
analysis identified by any table of this section to demonstrate that the 
receiver decoder satisfies all its performance specifications when 
subjected to each non-operating and operating environment and any 
command control system transmitter variation.

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    (b) Status-of-health. A status-of-health test of a command receiver 
decoder must satisfy section E417.3(f) and must measure each pin-to-pin 
and pin-to-case resistance, input current, voltage standing wave ratio, 
and radio frequency threshold sensitivity. Each measurement must 
demonstrate that all wiring and connectors are installed according to 
the

[[Page 676]]

manufacturer's design. The test must demonstrate that each pin-to-pin 
and pin-to-case resistance satisfies its performance specification and 
is in-family.
    (c) Functional performance. A functional performance test must 
demonstrate that a command receiver decoder satisfies all the 
requirements for an electronic component of section D417.27 that apply 
to the receiver decoder. This test must:
    (1) Response time. Demonstrate that the receiver decoder satisfies 
all its performance specifications for response time, from receipt of 
destruct sequence to initiation of destruct output;
    (2) Input current. Monitor the input current into the receiver 
decoder to demonstrate reliable functioning of all internal components. 
The test must demonstrate that the receiver decoder's electrical 
characteristics satisfy all its performance specifications and are in-
family;
    (3) Leakage current. Demonstrate that the maximum leakage current 
through any command output port is at a level that cannot degrade 
performance of down-string electrical or ordnance initiation systems or 
result in an unsafe condition. The test must demonstrate no less than a 
20-dB safety margin between the receiver leakage output and the lowest 
level that could degrade performance of down-string electrical or 
ordnance initiation systems or result in an unsafe condition;
    (4) Output Functions. Function all receiver outputs to demonstrate 
that all the output performance specifications are satisfied. The test 
must include drawing the expected current at the receiver's low, nominal 
and high input specified voltages using output impedances that simulate 
the flight-configured load. The test must demonstrate that a command 
receiver is capable of simultaneously outputting arm, destruct, and 
check channel signals; and
    (5) Warm Up Time. Demonstrate that the receiver decoder satisfies 
all its performance specifications after being powered for the 
manufacturer specified warm-up time.
    (d) Circuit protection. A circuit protection test must demonstrate 
that a receiver decoder's circuit protection provides for the receiver 
decoder to satisfy all its performance specifications when subjected to 
any improper launch processing, abnormal flight condition, or any non-
flight termination system vehicle component failure. This test must:
    (1) Abnormal voltage. Demonstrate that any circuit protection allows 
the receiver decoder to satisfy all its performance specifications when 
powered with the open circuit voltage of the receiver decoder's power 
source for no less than twice the expected duration of the open circuit 
voltage and then when powered with the minimum input voltage of the 
loaded voltage of the power source for no less than twice the expected 
duration of the loaded voltage. The test must also demonstrate that the 
receiver decoder satisfies all its performance specifications when 
subjected to increasing voltage from zero volts to the nominal voltage 
and then decreasing voltage from nominal back to zero;
    (2) Power dropout. Demonstrate that, in the event of an input power 
dropout, any control or switching circuit that contributes to the 
reliable operation of a receiver decoder, including solid-state power 
transfer switches, does not change state for 50 milliseconds or more;
    (3) Watchdog circuits. Demonstrate that any watchdog circuit 
satisfies all its performance specifications;
    (4) Output circuit protection. Demonstrate that the receiver 
decoder's performance does not degrade when any of its monitoring 
circuits or non-destruct output ports are subjected to a short circuit 
or the highest positive or negative voltage capable of being supplied by 
the monitor batteries or other power supplies, for no less than five 
minutes;
    (5) Reverse polarity. Demonstrate that the receiver decoder 
satisfies all of its performance specifications when subjected to a 
reverse polarity voltage that could occur before flight, for no less 
than five minutes; and
    (6) Memory. Demonstrate by test or analysis that any memory device 
that is part of the receiver decoder satisfies all its performance 
specifications. The test or analysis must demonstrate that the data 
stored in memory is retained in accordance with the performance 
specifications. For any secure receiver decoder, the test or analysis 
must demonstrate that the command codes remain in memory for the 
specified time interval while the receiver decoder is not powered.
    (e) Radio frequency processing.
    (1) General. A radio frequency processing test must demonstrate that 
a receiver decoder's radio frequency processing satisfies all its 
performance specifications when subjected to command control system 
transmitting equipment tolerances and flight generated signal 
degradation. The environment must include locally induced radio 
frequency noise sources, vehicle plume, the maximum predicted noise-
floor, ground transmitter performance variations, and abnormal launch 
vehicle flight.
    (2) Tone-based system. For any tone-based system, a radio frequency 
processing test must demonstrate that the receiver decoder satisfies all 
the design requirements of section D417.29(b) of appendix D of this part 
and must satisfy all of the following;
    (i) Decoder channel deviation. The test must demonstrate that the 
receiver decoder reliably processes the intended tone deviated signal at 
the minimum and maximum number of expected tones. The test must 
demonstrate that the receiver decoder satisfies

[[Page 677]]

all its performance specifications when subjected to a nominal tone 
deviation plus twice the maximum and minus half the minimum of the total 
combined tolerances of all applicable radio frequency performance 
factors. The tone deviation must be no less than  
3 KHz per tone.
    (ii) Operational bandwidth. The testing must demonstrate that the 
receiver decoder satisfies all its performance specifications at twice 
the worst-case command control system transmitter radio frequency shift, 
Doppler shifts of the carrier center frequency, and shifts in flight 
hardware center frequency during flight at the manufacturer guaranteed 
receiver sensitivity. The test must demonstrate an operational bandwidth 
of no less than  45KHz. The test must demonstrate 
that the operational bandwidth accounts for any tone deviation and that 
the receiver sensitivity does not vary by more than 3dB across the 
bandwidth.
    (iii) Radio frequency dynamic range. The test must demonstrate that 
the receiver decoder satisfies all its performance specifications when 
subjected to variations of the radio frequency input signal level that 
it will experience during checkout and flight. The test must subject the 
receiver decoder to no less than five uniformly distributed radio 
frequency input levels. The test must demonstrate that the receiver 
outputs the destruct command from the radio frequency threshold level up 
to:
    (A) The maximum radio frequency level that it will experience from 
the command control system transmitter during checkout and flight plus a 
3 dB margin; or
    (B) 13 dBm, whichever is greater.
    (iv) Capture ratio. The test must demonstrate that the receiver 
cannot be captured by another transmitter with less than 80% of the 
power of the command transmitter system for the launch. The test must 
show that the application of any unmodulated radio frequency at a power 
level of up to 80% of the command control system transmitter's modulated 
carrier signal does not capture the receiver or interfere with a signal 
from the command control system.
    (v) Radio frequency monitor. The test must demonstrate that the 
receiver decoder's monitoring circuit accurately monitors and outputs 
the strength of the radio frequency input signal and must satisfy all of 
the following:
    (A) The test must show that the output of the monitor circuit is 
directly related and proportional to the strength of the radio frequency 
input signal from the threshold level to saturation.
    (B) The dynamic range of the radio frequency input from the 
threshold level to saturation must be no less than 50 dB. The monitor 
circuit output from threshold to saturation must have a corresponding 
range that is greater than 18 dB.
    (C) The test must perform periodic samples sufficient to demonstrate 
that the monitor satisfies all its performance specifications.
    (D) The test must include the following radio frequency input 
levels: Quiescent; threshold; manufacturer guaranteed; beginning of 
saturation; and 13 dBm.
    (E) The test must demonstrate that the slope of the monitor circuit 
output does not change polarity.
    (vi) Radio frequency threshold sensitivity. The test must determine 
the radio frequency threshold sensitivity or each receiver decoder 
output command to demonstrate reliable radio frequency processing 
capability. The threshold sensitivity values must satisfy all their 
performance specifications, be repeatable, and be in-family. In-family 
performance may be met with a tolerance of  dB.
    (vii) Noise level margin. The test must demonstrate that the 
receiver decoder's guaranteed input sensitivity is no less than 6 dB 
higher than the maximum predicted noise-floor.
    (viii) Voltage standing wave ratio. The test must demonstrate that 
any radio frequency losses within the receiver decoder interface to the 
antenna system satisfy the required 12 dB margin. The test must 
determine the radio frequency voltage standing wave ratio at the high, 
low, and assigned operating frequencies of the operating bandwidth and 
demonstrate that it satisfies its performance specifications and is in-
family. The test must also demonstrate that the impedance of the radio 
frequency receiving system and the impedance of the receiver decoder are 
matched closely enough to ensure that the receiver decoder satisfies all 
its performance specifications.
    (ix) Decoder channel bandwidth. The test must demonstrate that the 
receiver decoder provides for reliable recognition of any command signal 
when subjected to variations in ground transmitter tone frequency and 
frequency modulation deviation variations. The test must demonstrate 
that the receiver decoder satisfies all its performance specifications 
within the specified tone filter frequency bandwidth using a frequency 
modulated tone deviation from 2 dB to 20 dB above the measured threshold 
level.
    (x) Tone balance. For any secure receiver decoder, the test must 
demonstrate that the receiver decoder can reliably decode a valid 
command with an amplitude imbalance between two tones within the same 
message.
    (xi) Message timing. For any secure receiver decoder, the test must 
demonstrate that the receiver decoder functions reliably during any 
errors in timing caused by any ground transmitter tolerances. The test 
must demonstrate that the receiver decoder can process commands at twice 
the maximum and

[[Page 678]]

one-half the minimum timing specification of the ground system. These 
tolerances must include character dead-time, character on-time and 
inter-message dead-time.
    (xii) Check tone. The test must demonstrate that the decoding and 
output of a tone, such as a pilot tone or check tone, is representative 
of link and command closure. The test must also demonstrate that the 
presence or absence of the tone signal will have no effect on the 
receiver decoder's command processing and output capability.
    (xiii) Self-test. The test must demonstrate that the receiver 
decoder's self-test capability functions and satisfies all its 
performance specifications and does not inhibit functionality of the 
command destruct output. The test must include initiating the self-test 
while issuing valid command outputs.
    (xiv) Reset. For any receiver decoder with a reset capability, the 
test must demonstrate that the reset will unlatch any command output 
that has been latched by a previous command.
    (f) Inadvertent command output. Each of the following inadvertent 
command output tests must demonstrate that the receiver decoder does not 
provide an output other than when it receives a valid command.
    (1) Dynamic stability. The test must demonstrate that the receiver 
decoder does not produce an inadvertent output when subjected to any 
radio frequency input short-circuit, open-circuit, or change in input 
voltage standing wave ratio.
    (2) Out of band rejection. The test must demonstrate that the 
receiver decoder does not degrade in performance when subjected to any 
out-of-band vehicle or ground transmitter source that it could encounter 
from liftoff to the planned safe flight state. The test must ensure the 
receiver decoder does not respond to frequencies, from 10 MHz to 1000 
MHz except at the receiver specified operational bandwidth. The test 
must demonstrate that the radio frequency rejection of out of band 
signals provides a minimum of 60 dB beyond eight times the maximum 
specified operational bandwidth. The test frequencies must include all 
expected interfering transmitting sources using a minimum bandwidth of 
20% of each transmitter center frequency, receiver image frequencies and 
harmonics of the assigned center frequency.
    (3) Decoder channel bandwidth rejection. The test must demonstrate 
that the receiver decoder rejects any out-of-band command tone 
frequency. The test must demonstrate that each tone filter will not 
respond to another tone outside the specified tone filter frequency 
bandwidth using a frequency modulated tone deviation from 2 dB to 20 dB 
above the measured threshold level.
    (4) Adjacent tone decoder channel rejection. The test must 
demonstrate that none of the tone decoder channels responds to any 
adjacent frequency modulated tone channel when they are frequency 
modulated with a minimum of 150% of the expected tone deviation.
    (5) Logic sequence. The test must demonstrate that the receiver 
issues the required commands when commanded and does not issue false 
commands during any abnormal logic sequence including issuing a destruct 
command prior to the arm command.
    (6) Destruct sequence. The test must demonstrate that the receiver 
decoder requires two commanded steps to issue a destruct command. The 
test must demonstrate that the receiver processes an arm command as a 
prerequisite for the destruct command.
    (7) Receiver abnormal logic. The test must demonstrate that the 
receiver decoder will not respond to any combination of tones or tone 
pairs other than the correct command sequence.
    (8) Noise immunity. The test must demonstrate that a receiver 
decoder will not respond to a white noise frequency modulated radio 
frequency input at a minimum frequency modulated deviation of 12 dB 
above the measured threshold deviation.
    (9) Tone drop. The test must demonstrate that the receiver decoder 
will not respond to a valid command output when one tone in the sequence 
is dropped.
    (10) Amplitude modulation rejection. The test must demonstrate that 
the receiver decoder will not respond to any tone or amplitude modulated 
noise when subjected to maximum pre-flight and flight input power 
levels. An acceptance test must subject the receiver decoder to 50% 
amplitude modulation. A qualification test must subject the receiver 
decoder to 100% amplitude modulation.
    (11) Decoder channel deviation rejection. The test must demonstrate 
that the receiver decoder does not inadvertently trigger on frequency-
modulated noise. The test must demonstrate that the receiver decoder 
does not respond to tone modulations 10 dB below the nominal tone 
modulation.
    (g) Input current monitor. An input current monitor test must 
continuously monitor command receiver decoder power input current during 
environmental stress conditions to detect any variation in amplitude. 
Any variation in input current indicates internal component damage and 
constitutes a test failure. Any fluctuation in nominal current draw when 
the command receiver decoder is in the steady state indicates internal 
component damage and constitutes a test failure.
    (h) Output functions. An output functions test must subject the 
receiver decoder to the arm and destruct commands during environmental 
stress conditions and continuously monitor all command outputs to detect 
any variation in amplitude. Any variation in output level indicates 
internal component damage and constitutes a test failure.

[[Page 679]]

    (i) Radio frequency level monitor. A radio frequency level monitor 
test must subject a receiver decoder to the guaranteed radio frequency 
input power level during environmental stress conditions and 
continuously monitor the radio frequency level monitor, also known as 
radio frequency signal strength, signal strength telemetry output, or 
automatic gain control. Any unexpected fluctuations or dropout 
constitutes a test failure.
    (j) Thermal performance. A thermal performance test must demonstrate 
that the receiver decoder satisfies all its performance specifications 
when subjected to operating and workmanship thermal environments. The 
receiver decoder must undergo the thermal performance test during a 
thermal cycle test and during a thermal vacuum test. The receiver 
decoder must undergo the thermal performance test at its low and high 
operating voltage while the receiver decoder is at the high and low 
temperatures during the first, middle, and last thermal cycles. The 
thermal performance test at each high and low temperature must include 
each of the following sub-tests of this section:
    (1) Response time, paragraph (c)(1) of this section;
    (2) Input current, paragraph (c)(2) of this section;
    (3) Output functions, paragraph (c)(4) of this section;
    (4) Decoder channel deviation, paragraph (e)(2)(i) of this section;
    (5) Operational bandwidth, paragraph (e)(2)(ii) of this section;
    (6) Radio frequency dynamic range, paragraph (e)(2)(iii) of this 
section;
    (7) Capture ratio, paragraph (e)(2)(iv) of this section;
    (8) Radio frequency monitor, paragraph (e)(2)(v) of this section;
    (9) Message timing, paragraph (e)(2)(xi) of this section;
    (10) Check tone, paragraph (e)(2)(xii) of this section; and
    (11) Self test, paragraph (e)(2)(xiii) of this section.

                      E417.21 Silver-zinc batteries

    (a) General. This section applies to any silver-zinc battery that is 
part of a flight termination system. Any silver-zinc battery must 
satisfy each test or analysis identified by any table of this section to 
demonstrate that the battery satisfies all its performance 
specifications when subjected to each non-operating and operating 
environment.

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    (b) Cell capacity.
    (1) Single electrical cycle. For a sample silver-zinc cell from a 
battery that has only one charge-discharge cycle, a capacity test must 
satisfy all of the following:
    (i) The cell must undergo activation that satisfies paragraph (j) of 
this section;
    (ii) At the end of the manufacturer-specified wet stand time, the 
cell must undergo a discharge of the nameplate capacity;
    (iii) The test must then subject the cell to the electrical 
performance test of paragraph (k) of this section using the 
qualification electrical load profile described in paragraph (k)(7)(ii) 
of this section;
    (iv) The cell must then undergo a final discharge to determine the 
positive and negative plate capacity; and
    (v) The test must demonstrate that each capacity satisfies the 
manufacturer's specification and is in-family.
    (2) Multiple electrical cycles. For a silver-zinc cell from a 
battery that has more than one charge-discharge cycle, a capacity test 
must satisfy all of the following:
    (i) The cell must undergo activation that satisfies paragraph (j) of 
this section;
    (ii) The test must subject the cell to the maximum predicted number 
of charge-discharge cycles that the battery will experience during 
normal operations;
    (iii) At the end of each cycle life after each charge, the test must 
satisfy all of the following:
    (A) The cell must undergo a discharge of the manufacturer's 
nameplate capacity;
    (B) The cell must then undergo the electrical performance test of 
paragraph (k) of this section using the qualification electrical load 
profile described in paragraph (k)(7)(ii) of this section; and
    (C) The cell must then undergo a discharge to determine the positive 
plate capacity;
    (iv) At the end of the cycle life of the last charge-discharge 
cycle, in addition to determining the positive plate capacity, the cell 
must undergo a discharge to determine the negative plate capacity; and
    (v) The test must demonstrate that each capacity for each cycle 
satisfies the manufacturer's specification and is in-family.
    (c) Silver-zinc battery status-of-health tests.
    (1) 500-volt insulation. A 500-volt insulation test of a silver-zinc 
battery must satisfy the status-of-health test requirements of section 
E417.3(f). The test must measure insulation resistance between mutually 
insulated pin-to-pin and pin-to-case points using a minimum 500-volt 
workmanship voltage prior to connecting any battery harness to the 
cells. The test must measure the continuity of the battery harness after 
completion of all wiring, but before battery activation to demonstrate 
that the insulation and continuity resistances satisfy their performance 
specifications.
    (2) Continuity and isolation. A continuity and isolation test of a 
silver zinc battery must satisfy the status-of-health test requirements 
of section E417.3(f). The test must demonstrate that all battery wiring 
and connectors are installed according to the

[[Page 687]]

manufacturer's specifications. The test must measure all pin-to-pin and 
pin-to-case resistances and demonstrate that each satisfies all its 
performance specifications and are in-family.
    (3) No-load voltage. A no-load voltage test must satisfy the status-
of-health test requirements of section E417.3(f). The test must 
demonstrate that each battery cell satisfies its performance 
specification for voltage without any load applied. A battery must 
undergo this test just after introduction of electrolyte to each cell, 
after electrical conditioning of the battery, before and after each 
electrical performance test and, for a flight battery, just before 
installation into the launch vehicle.
    (4) Pin-to-case isolation. A pin-to-case isolation test must satisfy 
the status-of-health test requirements of section E417.3(f). The test 
must measure voltage isolation between each pin and the battery case to 
demonstrate that no current leakage path exists as a result of 
electrolyte leakage. This measurement must use a voltmeter with an 
internal resistance of no less than 100K ohms and have a resolution that 
detects any leakage current of 0.1 milliamps or greater.
    (d) Proof pressure.
    (1) Cells. Each individual cell or each cell within a battery must 
undergo pressurization to 1.5 times the worst case operating 
differential pressure or highest setting of the cell vent valve for no 
less than 15 seconds. The test must demonstrate that the leak rate 
satisfies its performance specification. After pressurization, each cell 
must remain sealed until activation. For a battery, the test must 
demonstrate the integrity of each cell seal when in the battery 
configuration.
    (2) Battery cases. Each battery case must undergo pressurization to 
1.5 times the worst case operating differential pressure for no less 
than 15 minutes. The test must demonstrate no loss of structural 
integrity and no hazardous condition. For any sealed battery, the test 
must demonstrate that the leak rate satisfies its performance 
specification.
    (e) Electrolyte. A test of each electrolyte lot for battery 
activation must demonstrate that the electrolyte satisfies the 
manufacturer's specifications, including volume and concentration.
    (f) Battery mounting and case integrity. A battery mounting and case 
integrity test must demonstrate that any welds in the battery's mounting 
hardware or case are free of workmanship defects using X-ray examination 
that satisfies section E417.5(f).
    (g) Pre-activation. A pre-activation test must demonstrate that a 
battery or cell will not experience a loss of structural integrity or 
create a hazardous condition when subjected to predicted operating 
conditions and all required margins. This must include all of the 
following:
    (1) The test must demonstrate that any battery or cell pressure 
relief device satisfies all its performance specifications;
    (2) The test must exercise 100% of all pressure relief devices that 
can function repeatedly without degradation; and
    (3) The test must demonstrate that each pressure relief device opens 
within  10% of its performance specification.
    (h) Monitoring capability. A monitoring capability test must 
demonstrate that each device that monitors a silver-zinc battery's 
voltage, current, or temperature satisfies all its performance 
specifications.
    (i) Heater circuit verification. A heater circuit verification test 
must demonstrate that any battery heater, including its control 
circuitry, satisfies all its performance specifications.
    (j) Activation.
    (1) The activation of a battery or cell must follow a procedure that 
is approved by the manufacturer and includes the manufacturer's 
activation steps.
    (2) The activation procedure and equipment for acceptance testing 
must be equivalent to those used for qualification and storage life 
testing.
    (3) The activation procedure must include verification that the 
electrolyte satisfies the manufacturer's specification for percentage of 
potassium hydroxide.
    (4) The quantity of electrolyte for activation of the batteries and 
cells for any qualification test must satisfy all of the following:
    (i) One of the three required qualification battery samples and six 
of the 12 required individual qualification cell samples must undergo 
activation with no less than the manufacturer specified maximum amount 
of electrolyte; and
    (ii) One of the three required qualification battery samples and six 
of the 12 required individual qualification cell samples must undergo 
activation with no greater than the manufacturer specified minimum 
amount of electrolyte.
    (k) Electrical performance. An electrical performance test must 
demonstrate that a battery or cell satisfies all its performance 
specifications and is in-family while the battery is subjected to the 
electrical load profile described in paragraph (k)(7) of this section 
and include all of the following:
    (1) The test must demonstrate that the battery or cell supplies the 
required current while maintaining the required voltage regulation that 
satisfies the manufacturer's specifications and is in family with 
previous test results;
    (2) The test must monitor each of the battery or cell's critical 
electrical performance parameters; including voltage, current, and 
temperature, with a resolution and sample rate that detects any failure 
to satisfy a performance specification. For a battery, the

[[Page 688]]

test must monitor the battery's performance parameters and the voltage 
of each cell within the battery. During the current pulse portion of the 
load profile, the voltage monitoring must have a sample rate of once 
every 0.1 millisecond or better;
    (3) The test must measure a battery or cell's no-load voltage before 
and after the application of any load to the battery or cell;
    (4) A silver-zinc battery or cell must undergo this test after the 
battery or cell is activated and after the manufacturer's specified soak 
period;
    (5) The test must demonstrate that the battery or cell voltage does 
not fall below the voltage needed to provide the minimum acceptance 
voltage of each electronic component that the battery powers while the 
battery or cell is subjected to the steady state portion of the load 
profile;
    (6) The test must demonstrate that the battery or cell voltage does 
not fall below the voltage needed to provide the minimum qualification 
voltage of each electronic component that the battery powers while the 
battery or cell is subjected to the pulse portion of the load profile; 
and
    (7) The test load profile must satisfy one of the following:
    (i) For acceptance testing, the load profile must begin with a 
steady-state flight load that lasts for no less than 180 seconds 
followed without interruption by a current pulse. The pulse width must 
be no less than 1.5 times the ordnance initiator qualification pulse 
width or a minimum workmanship screening pulse width of 100 
milliseconds, whichever is greater. The pulse amplitude must be no less 
than 1.5 times the ordnance initiator qualification pulse amplitude. 
After the pulse, the acceptance load profile must end with the 
application of a steady-state flight load that lasts for no less than 15 
seconds; or
    (ii) For qualification testing or any storage life testing, the load 
profile must begin with a steady-state flight load that lasts for no 
less than 180 seconds followed by a current pulse. The pulse width must 
be no less than three times the ordnance initiator qualification pulse 
width or a minimum workmanship screening pulse width of 200 
milliseconds, whichever is greater. The pulse amplitude must be no less 
than 1.5 times the ordnance initiator qualification pulse amplitude. 
After the pulse, the qualification load profile must end with a steady-
state flight load that lasts for no less than 15 seconds.
    (l) Activated stand time. An activated stand time test must 
demonstrate that a silver-zinc battery or cell satisfies all its 
performance specifications after it is activated and subjected to the 
environments that the battery or cell will experience from the time it 
is activated until flight. This must include all of the following:
    (1) The test environment must simulate the pre-flight battery or 
cell conditioning environments, including the launch vehicle 
installation environment;
    (2) The test environment must simulate the worst case temperature 
exposure and any thermal cycling, such as due to any freezer storage, 
and any diurnal cycling on the launch vehicle;
    (3) The test must measure the battery or cell's open-circuit voltage 
at the beginning and again at the end of the activated stand time to 
demonstrate that it satisfies its performance specifications; and
    (4) The test must apply an electrical load to the battery or cell at 
the end of the activated stand time to demonstrate whether the battery 
or cell is in a peroxide or monoxide chemical state that satisfies its 
performance specifications before undergoing any other operating 
environmental test.
    (m) Overcharge. An overcharge test only applies to a battery or cell 
that undergoes charging during normal operations. The test must 
demonstrate that the battery or cell satisfies all its performance 
specifications when subjected to an overcharge of no less than the 
manufacturer's specified overcharge limit using the nominal charging 
rate.
    (n) Charge-discharge cycles. This test only applies to a battery or 
cell that undergoes charging during normal operations. The test must 
satisfy all of the following:
    (1) The test must subject the battery or cell sample to the maximum 
predicted number of charge-discharge cycles that the battery or cell 
will experience during normal operations;
    (2) After activation, each battery or cell sample must undergo three 
thermal cycles at the end of the first cycle life and three thermal 
cycles at the end of each cycle life after each intermediate charge 
before the final charge;
    (3) During each set of three thermal cycles for each charge-
discharge cycle, the test must satisfy the thermal cycle test 
requirements of paragraphs (o)(2)-(o)(5) of this section;
    (4) For a battery, after the three thermal cycles for each charge-
discharge cycle, the battery must undergo a pin-to-case isolation test 
that satisfies paragraph (c)(4) of this section;
    (5) Each battery or cell must undergo a discharge of its nameplate 
capacity before each charge; and
    (6) The battery or cell must undergo any further operating 
environment tests only after the final charge.
    (o) Thermal cycle. A thermal cycle test must demonstrate that a 
silver-zinc battery or cell satisfies all its performance specifications 
when subjected to pre-flight thermal cycle environments, including 
acceptance

[[Page 689]]

testing, and flight thermal cycle environments. This must include all of 
the following:
    (1) The test must subject the battery or cell to no less than the 
acceptance-number of thermal cycles that satisfies section 
E417.13(d)(1);
    (2) The thermal cycle environment must satisfy all of the following:
    (i) Each thermal cycle must range from 10 [deg]C above the maximum 
predicted temperature range to 5.5 [deg]C below. If the launch vehicle's 
telemetry system does not provide the battery's temperature before and 
during flight as described in section D417.17(b)(9), each thermal cycle 
must range from 10 [deg]C above the maximum predicted temperature range 
to 10 [deg]C below;
    (ii) For each cycle, the dwell-time at each high and low temperature 
must last long enough for the battery or cell to achieve internal 
thermal equilibrium and must last no less than one hour; and
    (iii) When heating and cooling the battery or cell, the temperature 
change at a rate that averages 1 [deg]C per minute or the maximum 
predicted rate, whichever is greater;
    (3) Each battery or cell must undergo the electrical performance 
test of paragraph (k) of this section when the battery or cell is at 
ambient temperature before beginning the first thermal cycle and after 
completing the last cycle;
    (4) Each battery or cell must undergo the electrical performance 
test of paragraph (k) of this section, at the high and low temperatures 
during the first, middle and last thermal cycles; and
    (5) The test must continuously monitor and record all critical 
performance and status-of-health parameters, including the battery or 
cell's open circuit voltage, during all thermal cycle dwell times and 
transitions with a resolution and sample rate that will detect any 
performance degradation.
    (p) Discharge and pulse capacity. A discharge and pulse capacity 
test must demonstrate that a silver zinc battery or cell satisfies all 
its electrical performance specifications at the end of its specified 
capacity limit for the last operating charge and discharge cycle. The 
test must include all of the following:
    (1) The battery or cell must undergo discharge at flight loads until 
the total capacity consumed during this discharge and during all 
previous qualification tests reaches the manufacturer's specified 
capacity.
    (2) The test must demonstrate that the total amount of capacity 
consumed during the discharge test and all previous qualification tests 
satisfies the battery or cell's minimum performance specification.
    (3) After satisfying paragraphs (p)(1) and (p)(2) of this section, 
the test must measure the battery or cell's no-load voltage and then 
apply a qualification load profile that satisfies all of the following:
    (i) The load profile must begin with a steady state flight load for 
no less than 180 seconds followed by a current pulse;
    (ii) The pulse width must be no less than three times the ordnance 
initiator qualification pulse width or a minimum workmanship screening 
pulse width of 200 milliseconds; whichever is greater;
    (iii) The pulse amplitude must be no less than 1.5 times the 
ordnance initiator qualification pulse amplitude; and
    (iv) After the pulse, the qualification load profile must end with a 
steady state flight load that lasts for no less than 15 seconds.
    (4) The test must monitor each of the battery or cell's critical 
electrical performance parameters; including voltage, current, and 
temperature, with a resolution and sample rate that detects any failure 
to satisfy a performance specification. For a battery, the test must 
monitor the battery's performance parameters and the voltage of each 
cell within the battery. During the current pulse portion of the load 
profile, the voltage monitoring must have sample rate that will detect 
any component performance degradation.
    (5) The test must demonstrate that the battery or cell voltage does 
not fall below the voltage needed to provide the minimum acceptance 
voltage of each electronic component that the battery powers while the 
battery or cell is subjected to the steady state portion of the load 
profile.
    (6) The test must demonstrate that the battery or cell voltage does 
not fall below the voltage needed to provide the minimum qualification 
voltage of each electronic component that the battery powers while the 
battery or cell is subjected to the pulse portion of the load profile.
    (7) After satisfying paragraphs (p)(1) through (p)(6) of this 
section, the battery or cell must undergo a complete discharge and the 
test must demonstrate that the total silver plate capacity is in-family.
    (q) Internal inspection. An internal inspection must identify any 
excessive wear or damage to a silver-zinc battery, including any of its 
cells, or an individual cell after the battery or cell is exposed to all 
the qualification test environments. An internal inspection must satisfy 
section E417.5(g) and include all of the following:
    (1) An internal examination of any battery to verify that there was 
no movement of any component within the battery that could stress that 
component beyond its design limit during flight:
    (2) An examination to verify the integrity of all cell and wiring 
interconnects.
    (3) An examination to verify the integrity of all potting and 
shimming materials.

[[Page 690]]

    (4) The removal of all cells from the battery and examination of 
each cell for any physical damage.
    (5) A destructive physical analysis to verify the integrity of all 
plate tab to cell terminal connections and the integrity of each plate 
and separator. For each battery sample required to undergo all the 
qualification tests, one cell from each corner and two cells from the 
middle of the battery must undergo the destructive physical analysis. 
For storage life testing, one of the two cells required to undergo all 
the storage life tests must undergo destructive physical analysis. The 
inspection must verify the integrity of each plate tab, identify any 
anomaly in each plate, including its color or shape, and identify any 
anomaly in each separator, including its condition, silver migration, 
and any oxalate crystals.
    (6) A test that demonstrates that the zinc plate capacity of the 
cells satisfies the manufacturer's specification. For each battery 
sample required to undergo all the qualification tests, the test must 
determine the zinc plate capacity for three cells from the battery, 
other than the cells of paragraph (q)(5) of this section. For storage 
life testing, the test must determine the zinc plate capacity for one 
cell that is required to undergo all the storage life tests, other than 
the cell of paragraph (q)(5) of this section.
    (r) Coupon cell acceptance. A coupon cell acceptance test must 
demonstrate that the silver zinc cells that make up a flight battery 
were manufactured the same as the qualification battery cells and 
satisfy all their performance specifications after being subjected to 
the environments that the battery experiences from the time of 
manufacture until activation and installation. This must include all of 
the following:
    (1) One test cell that is from the same production lot as the flight 
battery, with the same lot date code as the cells in the flight battery, 
must undergo the test.
    (2) The test cell must have been attached to the battery from the 
time of the manufacturer's acceptance test and have experienced the same 
non-operating environments as the battery.
    (3) The test must occur immediately before activation of the flight 
battery.
    (4) The test cell must undergo activation that satisfies paragraph 
(j) of this section.
    (5) The test cell must undergo discharge at a moderate rate, using 
the manufacturer's specification, undergo two qualification load 
profiles of paragraph (k)(7)(ii) of this section at the nameplate 
capacity, and then undergo further discharge until the minimum 
manufacturer specified voltage is achieved. The test must demonstrate 
that the cell's amp-hour capacity and voltage characteristics satisfy 
all their performance specifications and are in-family.
    (6) For a silver-zinc battery that will undergo charging during 
normal operations, the test cell must undergo the requirements of 
paragraph (r)(5) of this section for each qualification charge-discharge 
cycle. The test must demonstrate that the cell capacity and electrical 
characteristics satisfy all their performance specifications and are in 
family for each charge-discharge cycle.

               E417.22 Commercial nickel-cadmium batteries

    (a) General. This section applies to any nickel-cadmium battery that 
uses one or more commercially produced nickel-cadmium cells and is part 
of a flight termination system.
    (1) Compliance. Any commercial nickel-cadmium battery must satisfy 
each test or analysis identified by any table of this section to 
demonstrate that the battery satisfies all its performance 
specifications when subjected to each non-operating and operating 
environment.
    (2) Charging and discharging of nickel-cadmium batteries and cells. 
Each test required by any table of this section that requires a nickel-
cadmium battery or cell to undergo a charge or discharge must include 
all of the following:
    (i) The rate of each charge or discharge must prevent any damage to 
the battery or cell and provide for the battery or cell's electrical 
characteristics to remain consistent. Unless otherwise specified, the 
charge or discharge rate used for qualification testing must be 
identical to the rate that the flight battery experiences during 
acceptance and preflight testing;
    (ii) A discharge of a cell must subject the cell to the discharge 
rate until the cell voltage reaches no greater than 0.9 volt. A 
discharge of a battery, must subject the battery to the discharge rate 
until the battery voltage reaches no greater than 0.9 volt times the 
number of cells in the battery. Any discharge that results in a cell 
voltage below 0.9 volt must use a discharge rate that is slow enough to 
prevent cell damage or cell reversal. Each discharge must include 
monitoring of voltage, current, and time with sufficient resolution and 
sample rate to determine capacity and demonstrate that the battery or 
cell is in-family;
    (iii) A charge of a battery or cell must satisfy the manufacturer's 
charging specifications and procedures. The charging input to the 
battery or cell must be no less than 160% of the manufacturer's 
specified capacity. The charge rate must not exceed C/10 unless the 
launch operator demonstrates that a higher charge rate does not damage 
the battery or cell and results in repeatable battery or cell 
performance. The cell voltage must not exceed 1.55 volts during charging 
to avoid creating a hydrogen gas explosion hazard; and

[[Page 691]]

    (iv) The test must monitor each of the battery or cell's critical 
electrical performance parameters with a resolution and sample rate to 
detect any failure to satisfy a performance specification. For a 
battery, the test must monitor the battery's performance parameters and 
those of each cell within the battery. During the current pulse portion 
of the load profile, the monitoring must have a resolution and sample 
rate that will detect any component performance degradation.

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    (b) Venting devices. A test of a battery or cell venting device must 
demonstrate that the battery or cell will not experience a loss of 
structural integrity or create a hazardous condition when subjected to 
any electrical discharge, charging, or short-circuit condition and 
satisfy the following paragraphs:
    (1) Reusable venting devices. For a venting device that is capable 
of functioning repeatedly without degradation, such as a vent valve, the 
test must exercise the device and demonstrate that it satisfies all its 
performance specifications.
    (2) Non-reusable venting devices. For a venting device that does not 
function repeatedly without degradation, such as a burst disc, the test 
must exercise a lot sample to demonstrate that the venting device 
satisfies all its performance specifications. The test must demonstrate 
that each device sample vents within 10% of the 
manufacturer specified average vent pressure with a maximum vent 
pressure no higher than 350 pounds per square inch.
    (c) Cell inspection and preparation. A cell inspection and 
preparation must:
    (1) Record the manufacturer's lot-code;
    (2) Demonstrate that the cell is clean and free of manufacturing 
defects;
    (3) Use a chemical indicator to demonstrate that the cell has no 
leak; and
    (4) Discharge each cell to no greater than 0.9 volt using a 
discharge rate that will not cause damage to the cell.

[[Page 699]]

    (d) Cell conditioning. Conditioning of a nickel-cadmium cell must 
stabilize the cell and ensure repeatable electrical performance 
throughout the cell's service-life. Conditioning of a cell must include 
both of the following:
    (1) Before any testing, each cell must age for no less than 11 
months after the manufacturer's lot date code to ensure consistent 
electrical performance of the cell for its entire service-life; and
    (2) After aging, each cell must undergo a first charge at a charging 
rate of no greater than its capacity divided by 20 (C/20), to initialize 
the chemistry within the cell. Any battery stored for over one month 
after the first charge must undergo recharging at the same rate.
    (e) Cell characterization. Characterization of a nickel-cadmium cell 
must stabilize the cell chemistry and determine the cell's capacity. A 
cell characterization must satisfy both of the following:
    (1) Each cell must repeatedly undergo charge and discharge cycles 
until the capacities for three consecutive cycles agree to within 1% of 
each other; and
    (2) During characterization, each cell must remain at a temperature 
of 20 [deg]C  2 [deg]C to ensure that the cell is 
not overstressed and to allow repeatable performance.
    (f) Charge retention. A charge retention test must demonstrate that 
a nickel-cadmium battery or cell consistently retains its charge and 
provides its required capacity, including the required capacity margin, 
from the final charge used prior to flight to the end of flight. The 
test must satisfy the status-of-heath test requirements of Sec. 
E417.3(f) and satisfy all of the following steps in the following order:
    (1) The test must begin with the battery or cell fully charged. The 
battery or cell must undergo an immediate capacity discharge to develop 
a baseline capacity for comparison to its charge retention performance;
    (2) The battery or cell must undergo complete charging and then 
storage at 20 [deg]C  2 [deg]C for 72 hours;
    (3) The battery or cell must undergo discharging to determine its 
capacity; and
    (4) The test must demonstrate that each cell or battery's capacity 
is greater than 90% of the baseline capacity of paragraph (f)(1) of this 
section and the test must demonstrate that the capacity retention is in-
family.
    (g) Capacity and overcharge at 0 [deg]C. A 0 [deg]C test of a 
nickel-cadmium cell must validate the cell's chemistry status-of-health 
and determine the cell's capacity when subjected to a high charge 
efficiency temperature. The test must include all of the following:
    (1) Each cell must undergo repeated charge and discharge cycles at 0 
[deg]C  2 [deg]C until all the capacities for 
three consecutive cycles agree to within 1% of each other; and
    (2) After the charge and discharge cycles of paragraph (g)(1) of 
this section, each cell must undergo an inspection to demonstrate that 
it is not cracked.
    (h) Post acceptance discharge and storage. Post acceptance discharge 
and storage of a nickel-cadmium battery or cell must prevent any damage 
that could affect electrical performance. This must include all of the 
following:
    (1) Any battery must undergo discharge to a voltage between 0.05 
volts and 0.9 volts to prevent cell reversal, allow safe handling, and 
minimize any aging degradation;
    (2) Any individual cell must undergo discharge to no greater than 
0.05 volts to allow safe handling and minimize any aging degradation;
    (3) After the discharge, each battery or cell must undergo storage 
in an open circuit configuration and under storage conditions that 
protect against any performance degradation and are consistent with the 
qualification tests. This must include a storage temperature of no 
greater than 5 [deg]C.
    (i) Cycle life. A cycle life test of a nickel-cadmium cell or 
battery must demonstrate that the cell or battery satisfies all its 
performance specifications for no less than five times the number of 
operating charge and discharge cycles expected of the flight battery, 
including acceptance testing, pre-flight checkout, and flight.
    (j) Status-of-health. A status-of-health test of a nickel-cadmium 
battery must satisfy section E417.3(f) and include continuity and 
isolation measurements that demonstrate that all battery wiring and 
connectors are installed according to the manufacturer's specifications. 
The test must also measure all pin-to-pin and pin-to-case resistances to 
demonstrate that each satisfies all its performance specifications and 
are in-family.
    (k) Battery case integrity. A battery case integrity test of a 
sealed nickel-cadmium battery must demonstrate that the battery will not 
lose structural integrity or create a hazardous condition when subjected 
to all predicted operating conditions and all required margins and that 
the battery's leak rate satisfies all its performance specifications. 
This must include all of the following:
    (1) The test must monitor the battery's pressure while subjecting 
the battery case to no less than 1.5 times the greatest operating 
pressure differential that could occur under qualification testing, pre-
flight, or flight conditions;
    (2) The pressure monitoring must have a resolution and sample rate 
that allows accurate determination of the battery's leak rate;
    (3) The test must demonstrate that the battery's leak rate is no 
greater than the equivalent of 10-4 scc/sec of helium; and
    (4) The battery must undergo examination to identify any condition 
that indicates that

[[Page 700]]

the battery might loose structural integrity or create a hazardous 
condition.
    (l) Monitoring capability. A monitoring capability test must 
demonstrate that each device that monitors a nickel-cadmium battery's 
voltage, current, or temperature satisfies all its performance 
specifications.
    (m) Heater circuit verification. A heater circuit verification test 
must demonstrate that any battery heater, including its control 
circuitry, satisfies all its performance specifications.
    (n) Electrical performance. An electrical performance test of a 
nickel-cadmium battery or cell must demonstrate that the battery or cell 
satisfies all its performance specifications and is in-family while the 
battery or cell is subjected to an acceptance or qualification 
electrical load profile. The test must also demonstrate that the battery 
or cell satisfies all its electrical performance specifications at the 
beginning, middle, and end of its specified preflight and flight 
capacity plus the required margin. The test must include and satisfy 
each of the following:
    (1) The test must measure a battery or cell's no-load voltage before 
applying any load to ensure it is within the manufacturer's 
specification limits.
    (2) The test must demonstrate that the battery or cell voltage does 
not violate the manufacturer's specification limits while the battery or 
cell is subjected to the steady-state flight load. The test must also 
demonstrate that the battery provides the minimum acceptance voltage of 
each electronic component that the battery powers.
    (3) The test must demonstrate that the battery or cell supplies the 
required current while maintaining the required voltage regulation that 
satisfies the manufacturer's specification. The test must demonstrate 
that the battery or cell voltage does not fall below the voltage needed 
to provide the minimum qualification voltage of each electronic 
component that the battery powers while the battery or cell is subjected 
to the pulse portion of the load profile. The test must subject the 
battery or cell to one of the following load profiles:
    (i) For acceptance testing, the test load profile must satisfy all 
of the following:
    (A) The load profile must begin with a steady-state flight load that 
lasts for no less than 180 seconds followed without interruption by a 
current pulse;
    (B) The pulse width must be no less than 1.5 times the ordnance 
initiator qualification pulse width or a minimum workmanship screening 
pulse width of 100 milliseconds, whichever is greater;
    (C) The pulse amplitude must be no less than 1.5 times the ordnance 
initiator qualification pulse amplitude; and
    (D) After the pulse, the acceptance load profile must end with a 
steady state flight load that lasts for no less than 15 seconds.
    (ii) For qualification testing, the test load profile must satisfy 
all of the following:
    (A) The load profile must begin with a steady-state flight load that 
lasts for no less than 180 seconds followed by a current pulse;
    (B) The pulse width must be no less than three times the ordnance 
initiator qualification pulse width or a minimum workmanship screening 
pulse width of 200 milliseconds, whichever is greater;
    (C) The pulse amplitude must be no less than 1.5 times the ordnance 
initiator qualification pulse amplitude; and
    (D) After the pulse, the qualification load profile must end with a 
steady-state flight load that lasts for no less than 15 seconds.
    (4) The test must repeat, satisfy, and accomplish paragraphs (n)(1)-
(n)(3) of this section with the battery or cell at each of the following 
levels of charge-discharge and in the following order:
    (A) Fully charged;
    (B) After the battery or cell undergoes a discharge that removes 50% 
of the capacity required for launch and all required margins; and
    (C) After the battery or cell undergoes a discharge that removes an 
additional 50% of the capacity required for launch.
    (5) The test must subject the battery or cell the a final discharge 
that determines the remaining capacity. The test must demonstrate that 
the total capacity removed from the battery during all testing, 
including this final discharge, satisfies all the battery's performance 
specifications and is in-family.
    (o) Acceptance thermal cycle. An acceptance thermal cycle test must 
demonstrate that a nickel-cadmium battery satisfies all it performance 
specifications when subjected to workmanship and maximum predicted 
thermal cycle environments. This must include each of the following:
    (1) The acceptance-number of thermal cycles for a component means 
the number of thermal cycles that the component must experience during 
the acceptance thermal cycle test. The test must subject each component 
to no less than eight thermal cycles or 1.5 times the maximum number of 
thermal cycles that the component could experience during launch 
processing and flight, including all launch delays and recycling, 
rounded up to the nearest whole number, whichever is greater.
    (2) The acceptance thermal cycle high temperature must be a 30 
[deg]C workmanship screening level or the maximum predicted environment 
high temperature, whichever is higher. The acceptance thermal cycle low 
temperature must be a -24 [deg]C workmanship screening temperature or 
the predicted environment low temperature, whichever is lower;
    (3) When heating or cooling the battery during each cycle, the 
temperature must

[[Page 701]]

change at an average rate of 1 [deg]C per minute or the maximum 
predicted rate, whichever is greater. The dwell time at each high and 
low temperature must be long enough for the battery to achieve internal 
thermal equilibrium and must be no less than one hour.
    (4) The test must measure all of a battery's critical status-of-
health parameters at the thermal extremes on all cycles and during 
thermal transition to demonstrate that the battery satisfies all its 
performance specifications. The battery must undergo monitoring of its 
open circuit voltage throughout the test to demonstrate that it 
satisfies all its performance specifications throughout testing. The 
sample rate must be once every 10 seconds or more often.
    (5) The battery must undergo an electrical performance test that 
satisfies paragraph (n) of this section while the battery is at the 
high, ambient, and low temperatures, during the first, middle, and last 
thermal cycles.
    (6) If either the workmanship high or low temperature exceeds the 
battery's maximum predicted operating temperature range and the battery 
is not capable of passing the electrical performance test at the 
workmanship temperature, the battery may undergo the electrical 
performance test at an interim temperature during the cycle. This must 
include all of the following:
    (i) Any interim high temperature must be no less than the maximum 
predicted high temperature;
    (ii) Any interim low temperature must be no greater than the maximum 
predicted low temperature;
    (iii) The dwell-time at any interim temperature must be long enough 
for the battery to reach thermal equilibrium; and
    (iv) After any electrical performance test at an interim 
temperature, the thermal cycle must continue until the battery reaches 
its workmanship temperature.
    (p) Qualification thermal cycle. A qualification thermal cycle test 
must demonstrate that a nickel-cadmium battery satisfies all its 
performance specifications when subjected to pre-flight, acceptance 
test, and flight thermal cycle environments. This must include each of 
the following:
    (1) The test must subject the fully charged battery to no less than 
three times the acceptance-number of thermal cycles of paragraph (o)(1) 
of this section.
    (2) The qualification thermal cycle high temperature must be a 40 
[deg]C workmanship screening level or the maximum predicted environment 
high temperature plus 10 [deg]C, whichever is higher. The qualification 
thermal cycle low temperature must be a -34 [deg]C workmanship screening 
temperature or the predicted environment low temperature minus 10 
[deg]C, whichever is lower.
    (3) When heating or cooling the battery during each cycle, the 
temperature must change at an average rate of 1 [deg]C per minute or the 
maximum predicted rate, whichever is greater. The dwell time at each 
high and low temperature must be long enough for the battery to achieve 
internal thermal equilibrium and must be no less than one hour.
    (4) The test must measure the battery's critical status-of-health 
parameters at the thermal extremes on all cycles and during thermal 
transition to demonstrate that the battery satisfies all its performance 
specifications. The battery must undergo monitoring of its open circuit 
voltage throughout the test to demonstrate that it satisfies all it 
performance specifications. The sample rate must be once every 10 
seconds or more often.
    (5) The battery must undergo an electrical performance test that 
satisfies paragraph (n) of this section while the battery is at the 
high, ambient, and low temperatures, during the first, middle, and last 
thermal cycles.
    (6) If either the workmanship high or low temperature exceeds the 
battery's maximum predicted operating temperature range and the battery 
is not capable of passing the electrical performance test at the 
workmanship temperature, the battery may undergo the discharge and pulse 
capacity test at an interim temperature during the cycle. This must 
include all of the following:
    (i) Any interim high temperature must be no less than the maximum 
predicted high temperature plus 10 [deg]C;
    (ii) Any interim low temperature must be no greater than the maximum 
predicted low temperature minus 10 [deg]C;
    (iii) The dwell-time at any interim temperature must last long 
enough for the battery to reach thermal equilibrium; and
    (iv) After any electrical performance test at an interim 
temperature, the thermal cycle must continue to the workmanship 
temperature.
    (q) Operational stand time. An operational stand time test must 
demonstrate that a nickel-cadmium battery will maintain its required 
capacity, including all required margins, from the final charge that the 
battery receives before flight until the planned safe flight state. This 
must include each of the following:
    (1) The battery must undergo a charge to full capacity and then an 
immediate capacity discharge to establish a baseline capacity for 
comparison to the capacity after the battery experiences the operational 
stand time.
    (2) The battery must undergo a charge to full capacity. The test 
must then subject the battery to the maximum predicted pre-flight 
temperature for the maximum operating stand time between final battery 
charging to the planned safe flight state while in an open circuit 
configuration. The maximum operating stand time must account for all 
launch processing and launch delay contingencies that could occur after 
the battery receives its final charge.

[[Page 702]]

    (3) After the maximum operating stand time has elapsed, the battery 
must undergo a capacity discharge to determine any capacity loss due to 
any self-discharge by comparing the operational stand time capacity with 
the baseline capacity in paragraph (q)(1) of this section.
    (4) The test must demonstrate that the battery's capacity, including 
all required margins, and any loss in capacity due to the operational 
stand time satisfy all associated performance specifications.
    (r) Internal inspection. An internal inspection of a nickel-cadmium 
battery must identify any excessive wear or damage to the battery, 
including any of its cells, after the battery is exposed to all the 
qualification test environments. An internal inspection must satisfy 
section E417.5(g) and include all of the following:
    (1) An internal examination to verify that there was no movement of 
any component within the battery that stresses that component beyond its 
design limit;
    (2) An examination to verify the integrity of all cell and wiring 
interconnects;
    (3) An examination to verify the integrity of all potting and 
shimming materials;
    (4) The removal of all cells from the battery and examination of 
each cell for any physical damage;
    (5) A test with a chemical indicator to demonstrate that none of the 
cells leaked; and
    (6) Destructive physical analysis of one cell from each corner and 
one cell from the middle of each battery that undergoes all the 
qualification tests. The destructive physical analysis must verify the 
integrity of all connections between all plate tabs and cell terminals, 
and the integrity of each plate and separator.
    (s) Cell leakage. A leakage test of a cell must demonstrate the 
integrity of the cell case seal using one of the following approaches:
    (1) Leak test 1:
    (i) The test must measure each cell's weight to 0.001 grams to 
create a baseline for comparison.
    (ii) The test must subject each cell, fully charged, to a vacuum of 
less than 10-2 torr for no less than 20 hours. While under 
vacuum, the cell must undergo charging at a C/20 rate. The test must 
control each cell's temperature to ensure that its does not exceed the 
cell's maximum predicted thermal environment.
    (iii) The test must measure each cell's weight after the 20-hour 
vacuum and demonstrate that the cell does not experience a weight loss 
greater than three-sigma from the average weight loss for each cell in 
the lot.
    (iv) Any cell that fails the weight-loss test of paragraph (h)(3) of 
this section must undergo cleaning and discharge. The cell must then 
undergo a full charge and then inspection with a chemical indicator. If 
the chemical indicator shows that the cell has a leak, a launch operator 
may not use the cell in any further test or flight.
    (2) Leak test 2:
    (i) The cell must develop greater than one atmosphere differential 
pressure during the 0 [deg]C capacity and overcharge test of paragraph 
(g) of this section.
    (ii) After the 0 [deg]C capacity and overcharge test of paragraph 
(g) of this section, the cell must undergo a full charge and then 
inspection with a chemical indicator. If the chemical indicator shows 
that the cell has a leak, a launch operator may not use the cell in any 
further test or flight.

                    E417.23 Miscellaneous components

    This section applies to any component that is critical to the 
reliability of a flight termination system and is not otherwise 
identified by this appendix. This includes any new technology or any 
component that may be unique to the design of a launch vehicle, such as 
any auto-destruct box, current limiter, or timer. A miscellaneous 
component must satisfy each test or analysis identified by any table of 
this section to demonstrate that the component satisfies all its 
performance specifications when subjected to each non-operating and 
operating environment. For any new or unique component, the launch 
operator must identify any additional test requirements necessary to 
ensure its reliability.

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 E417.25 Safe-and-arm devices, electro-explosive devices, rotor leads, 
                           and booster charges

    (a) General. This section applies to any safe-and-arm device that is 
part of a flight termination system, including each electro-explosive 
device, rotor lead, or booster charge used by the safe-and-arm device. 
Any safe-and-arm device, electro-explosive device, rotor lead, or 
booster charge must satisfy each test or analysis identified by any 
table of this section to demonstrate that it satisfies all its 
performance specifications when subjected to each non-operating and 
operating environment.

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    (b) Safe-and-arm device status-of-health. A safe-and-arm device 
status-of-health test must satisfy section E417.3(f). This must include 
measuring insulation resistance from pin-to-pin and pin-to-case, safe-
and-arm transition time, and bridgewire resistance consistency through 
more than one safe-and-arm transition cycle.
    (c) Safe-and-arm transition. This test must demonstrate that the 
safe-and-arm transition, such as rotational or sliding operation, 
satisfies all its performance specifications. This must include all of 
the following:
    (1) The test must demonstrate that the safe-and-arm monitors 
accurately determine safe-and-arm transition and whether the safe-and-
arm device is in the proper configuration;
    (2) The test must demonstrate that a safe-and-arm device is not 
susceptible to inadvertent initiation or degradation in performance of 
the electro-explosive device during pre-flight processing; and
    (3) The test must demonstrate the ability of a safe-and-arm device 
to satisfy all its performance specifications when subjected to five 
times the maximum predicted number of safe-to-arm and arm-to-safe 
cycles.
    (d) Stall. A stall test must demonstrate that a safe-and-arm device 
satisfies all its performance specifications after being locked in its 
safe position and subjected to an operating arming voltage for the 
greater of:
    (i) Five minutes; or
    (ii) The maximum time that could occur inadvertently and the device 
still be used for flight.
    (e) Safety tests. The following safety tests must demonstrate that a 
safe-and-arm device can be handled safely:
    (1) Containment. A containment test must demonstrate that a safe-
and-arm device will not fragment when any internal electro-explosive 
device or rotor charge is initiated. A safe-and-arm device must undergo 
the test in

[[Page 725]]

the arm position and with any shipping cap or plug installed in each 
output port.
    (2) Barrier functionality. A barrier functionality test must 
demonstrate that, when in the safe position, if a safe-and-arm device's 
internal electro-explosive device is initiated, the ordnance output will 
not propagate to an explosive transfer system. This demonstration must 
include all of the following:
    (i) The test must consist of firings at high and low temperature 
extremes, the explosive transfer system must be configured for flight;
    (ii) Each high-temperature firing must be initiated at the 
manufacturer specified high temperature or a 71 [deg]C workmanship 
screening level, whichever is higher; and
    (iii) Each low-temperature firing must be initiated at the 
manufacturer specified low temperature or a -54 [deg]C workmanship 
screening level, whichever is lower.
    (3) Extended stall. An extended stall test must demonstrate that a 
safe-and-arm device does not initiate when locked in its safe position 
and is subjected to a continuous operating arming voltage for the 
maximum predicted time that could occur accidentally or one hour, 
whichever is greater.
    (4) Manual safing. A manual safing test must demonstrate that a 
safe-and-arm device can be manually safed in accordance with all its 
performance specifications.
    (5) Safing-interlock. A safing-interlock test must demonstrate that 
when a safe-and-arm device's safing-interlock is in place and 
operational arming current is applied, the interlock prevents arming in 
accordance with all the interlock's performance specifications.
    (6) Safing verification. A safing verification test must demonstrate 
that, while a safe-and-arm device is in the safe position, any internal 
electro-explosive device will not initiate if the safe-and-arm device 
input circuit is accidentally subjected to a firing voltage, such as 
from a command receiver or inadvertent separation destruct system 
output.
    (f) Thermal performance. A thermal performance test must demonstrate 
that a safe-and-arm device satisfies all its performance specifications 
when subjected to operating and workmanship thermal environments. This 
demonstration must include all of the following:
    (1) The safe-and-arm device must undergo the test while subjected to 
each required thermal environment;
    (2) The test must continuously monitor the bridgewire continuity 
with the safe-and-arm device in its arm position to detect each and any 
variation in amplitude. Any variation in amplitude constitutes a test 
failure;
    (3) The test must measure the bridgewire resistance for the first 
and last thermal cycle during the high and low temperature dwell times 
to demonstrate that the bridgewire resistance satisfies the manufacturer 
specification;
    (4) The test must subject the safe-and-arm device to five safe-and-
arm cycles and measure the bridgewire continuity during each cycle to 
demonstrate that the continuity is consistent; and
    (5) The test must measure the safe-and-arm cycle time to demonstrate 
that it satisfies the manufacturer specification.
    (g) Dynamic performance. A dynamic performance test must demonstrate 
that a safe-and-arm device satisfies all its performance specifications 
when subjected to the dynamic operational environments, such as 
vibration and shock. This demonstration must include all of the 
following:
    (1) The safe-and-arm device must undergo the test while subjected to 
each required dynamic operational environment;
    (2) The test must continuously monitor the bridgewire continuity 
with the safe-and-arm device in the arm position to detect each and any 
variation in amplitude. Any amplitude variation constitutes a test 
failure. The monitoring must have a sample rate that will detect any 
component performance degradation;
    (3) The test must continuously monitor each safe-and-arm device 
monitor circuit to detect each and any variation in amplitude. Any 
variation in amplitude constitutes a test failure. This monitoring must 
have a sample rate that will detect any component performance 
degradation; and
    (4) The test must continuously monitor the safe-and-arm device to 
demonstrate that it remains in the fully armed position throughout all 
dynamic environment testing.
    (h) Electro-explosive device status-of-health. An electro-explosive 
device status of health test must satisfy section E417.3(f). The test 
must include measuring insulation resistance and bridgewire continuity.
    (i) Static discharge. A static discharge test must demonstrate that 
an electro-explosive device can withstand an electrostatic discharge 
that it could experience from personnel or conductive surfaces without 
firing and still satisfy all its performance specifications. The test 
must subject the electro-explosive device to the greater of:
    (1) A 25k-volt, 500-picofarad pin-to-pin discharge through a 5k-ohm 
resistor and a 25k-volt, 500-picofarad pin-to-case discharge with no 
resistor; or
    (2) The maximum predicted pin-to-pin and pin-to-case electrostatic 
discharges.
    (j) Firing tests.
    (1) General. Each firing test of a safe-and-arm device, electro-
explosive device, rotor lead, or booster charge must satisfy all of the 
following:
    (i) The test must demonstrate the initiation and transfer of all 
ordnance charges and that the component does not fragment. For a safe-
and-arm device that has more

[[Page 726]]

than one internal electro-explosive device, each firing test must also 
demonstrate that the initiation of one internal electro-explosive device 
does not adversely affect the performance of any other internal electro-
explosive device;
    (ii) The number of component samples that the test must fire and the 
test conditions, including firing current and temperature must satisfy 
each table of this section;
    (iii) Before initiation, each component sample must experience the 
required temperature for enough time to achieve thermal equilibrium;
    (iv) Each test must measure ordnance output using a measuring 
device, such as a swell cap or dent block, to demonstrate that the 
output satisfies all its performance specifications; and
    (v) Each test of a safe-and-arm device or electro-explosive device 
must subject each sample device to a current source that duplicates the 
operating output waveform and impedance of the flight current source. 
Each test of a rotor lead or booster charge must subject the component 
to an energy source that simulates the flight energy source.
    (2) All-fire current. Each all-fire current test must subject each 
component sample to the manufacturer's specified all-fire current value.
    (3) Operating current. Each operating current test must subject each 
component sample to the launch vehicle operating current value if known 
at the time of testing. If the operating current is unknown, the test 
must use no less than 200% of the all-fire current value.
    (4) 22-amps current. This test must subject each component sample to 
a firing current of 22 amps.
    (5) Ambient-temperature. This test must initiate each ordnance 
sample while it is subjected to ambient-temperature.
    (6) High-temperature. Each high-temperature test must initiate each 
ordnance sample while it is subjected to the qualification high-
temperature level or a +71 [deg]C workmanship screening level, whichever 
is higher.
    (7) Low-temperature. Each low-temperature test must initiate each 
ordnance sample while it is subjected to the qualification low-
temperature level or a -54 [deg]C workmanship screening level, whichever 
is lower.
    (k) Radio frequency impedance. This test must determine the radio 
frequency impedance of an electro-explosive device for use in any flight 
termination system radio frequency susceptibility analysis.
    (l) Radio frequency sensitivity. This test must consist of a 
statistical firing series of electro-explosive device lot samples to 
determine the radio frequency no-fire energy level for the remainder of 
the lot. The firing series must determine the highest continuous radio 
frequency energy level to which the device can be subjected and not fire 
with a reliability of 0.999 at a 95% confidence level. Any demonstrated 
radio frequency no-fire energy level that is less than the level used in 
the flight termination system design and analysis constitutes a test 
failure.
    (m) No-fire energy level. This test must consist of a statistical 
firing series of electro-explosive device lot samples to determine the 
no-fire energy level for the remainder of the lot. The firing series 
must determine the highest electrical energy level at which the device 
will not fire with a reliability of 0.999 at a 95% confidence level when 
subjected to a continuous current pulse. Any demonstrated no-fire energy 
level that is less than the no-fire energy level used in the flight 
termination system design and analysis constitutes a test failure.
    (n) All-fire energy level. This test must consist of a statistical 
firing series of electro-explosive device lot samples to determine the 
all-fire energy level for the remainder of the lot. This firing series 
must determine the lowest electrical energy level at which the device 
will fire with a reliability of 0.999 at a 95% confidence level when 
subjected to a current pulse that simulates the launch vehicle flight 
termination system firing characteristics. Any demonstrated all-fire 
energy level that exceeds the all-fire energy level used in the flight 
termination system design and analysis constitutes a test failure.
    (o) Barrier alignment. A barrier alignment test must consist of a 
statistical firing series of safe-and-arm device samples. The test must 
demonstrate that the device's safe to arm transition motion provides for 
ordnance initiation with a reliability of 0.999 at a 95% confidence 
level. The test must also demonstrate that the device's arm to safe 
transition motion provides for no ordnance initiation with a reliability 
of 0.999 at a 95% confidence level. This test may employ a reusable 
safe-and-arm subassembly that simulates the flight configuration.
    (p) No-fire verification. This test must demonstrate that a flight 
configured electro-explosive device will not inadvertently initiate when 
exposed to the maximum predicted circuit leakage current and will still 
satisfy all its performance specifications. The test must subject each 
sample electro-explosive device to the greater of:
    (1) The worst-case leakage current level and duration that could 
occur in an operating condition; or
    (2) One amp/one watt for five minutes.
    (q) Auto-ignition. This test must demonstrate that an electro-
explosive device does not experience auto-ignition, sublimation, or 
melting when subjected to any high-temperature environment during 
handling, testing, storage, transportation, installation, or flight. The 
test must include all of the following:

[[Page 727]]

    (1) The test environment must be no less than 30 [deg]C higher than 
the highest non-operating or operating temperature that the device could 
experience;
    (2) The test must last the maximum predicted high-temperature 
duration or one hour, whichever is greater; and
    (3) After exposure to the test environment, each sample device must 
undergo external and internal examination, including any dissection 
needed to identify any auto-ignition, sublimation, or melting.

   E417.27 Exploding bridgewire firing units and exploding bridgewires

    (a) General. This section applies to any exploding bridgewire firing 
unit that is part of a flight termination system, including each 
exploding bridgewire that is used by the firing unit. Any firing unit or 
exploding bridgewire must satisfy each test or analysis identified by 
any table of this section to demonstrate that it satisfies all its 
performance specifications when subjected to each non-operating and 
operating environment.

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    (b) Firing unit status-of-health. A firing unit status-of-health 
test must satisfy section E417.3(f). This must include measuring input 
current, all pin-to-pin and pin-to-case resistances, trigger circuit 
threshold, capacitor charge time and arming time.
    (c) Input command processing. An input command processing test must 
demonstrate that an exploding bridgewire firing unit's input trigger 
circuit satisfies all its performance specifications when subjected to 
any variation in input that it could experience during flight. The 
firing unit must undergo this test before the first and after the last 
environmental test to identify any degradation in performance due to any 
of the test

[[Page 740]]

environments. The test must demonstrate all of the following:
    (1) The amplitude sensitivity of the firing unit trigger circuit 
provides margin over the worst-case trigger signal that could be 
delivered on the launch vehicle as follows:
    (i) The firing unit triggers at 50% of the amplitude and 50% of the 
pulse duration of the lowest trigger signal that could be delivered 
during flight; and
    (ii) The firing unit triggers at 120% amplitude and 120% of the 
pulse duration of the highest trigger signal that could be delivered 
during flight;
    (2) The firing unit satisfies all its performance specifications 
when subjected to the maximum input voltage of the open circuit voltage 
of the power source, ground or airborne, and the minimum input voltage 
of the loaded voltage of the power source;
    (3) Each control and switching circuit that is critical to the 
reliable operation of an exploding bridgewire firing unit does not 
change state when subjected to a minimum input power drop-out for a 
period of 50 milliseconds;
    (4) The firing unit's response time satisfies all its performance 
specifications with input at the specified minimum and maximum vehicle 
supplied trigger signal; and
    (5) If the firing unit has differential input, the unit satisfies 
all its performance specifications with all input combinations at the 
specified trigger amplitude input signals.
    (d) High voltage circuitry. This test must demonstrate that a firing 
unit's high voltage circuitry satisfies all its performance 
specifications for initiating the exploding bridgewire when subjected to 
any variation in input that the circuitry could experience during 
flight. The firing unit must undergo the test before the first and after 
the last environmental test to identify any degradation in performance 
due to any of the test environments. The test must demonstrate all of 
the following:
    (1) The firing unit satisfies all its performance specifications 
when subjected to the worst-case high and low arm voltages that it could 
experience during flight;
    (2) The firing unit's charging and output circuitry has an output 
waveform, rise-time, and amplitude that delivers no less than a 50% 
voltage margin to the exploding bridgewire. The test must use the 
identical parameters, such as capacitor values and circuit and load 
impedance, as those used to provide the exploding bridgewire all-fire 
energy level;
    (3) The firing unit does not experience any arcing or corona during 
high voltage discharge; and
    (4) Each high-energy trigger circuit used to initiate the main 
firing capacitor has an output signal that delivers no less than a 50% 
voltage margin with an input to the circuit at the nominal trigger 
threshold level.
    (e) Output monitoring. (1) An output monitoring test must measure 
the voltage of each high voltage capacitor and the arm power to a firing 
unit and demonstrate that it satisfies all its performance 
specifications.
    (2) An output monitoring test conducted while the firing unit is 
subjected to an operating environment, must continuously monitor the 
voltage of each high voltage capacitor and the arm power to the firing 
unit to detect any variation in amplitude. Any amplitude variation 
constitutes a test failure. The monitoring must use a sample rate that 
will detect any component performance degradation.
    (f) Abbreviated status-of-health. An abbreviated status-of-health 
test must measure all a firing unit's critical performance parameters 
while the unit is subjected to each required operating environment to 
identify any degradation in performance while exposed to each 
environment. This must include continuous monitoring of the firing 
unit's input to detect any variation in amplitude. Any amplitude 
variation constitutes a test failure. The monitoring must have a sample 
rate that will detect any component performance degradation.
    (g) Abbreviated command processing. An abbreviated command 
processing test must exercise all of a firing unit's flight critical 
functions while the unit is subjected to each required operating 
environment. This must include subjecting the firing unit to the fire 
command throughout each environment while monitoring function time and 
the high voltage output waveform to demonstrate that each satisfies all 
its performance specifications.
    (h) Circuit protection. A circuit protection test must demonstrate 
that any circuit protection allows a firing unit to satisfy all its 
performance specifications, when subjected to any improper launch 
processing, abnormal flight condition, or any failure of another launch 
vehicle component. The demonstration must include all of the following:
    (1) Any circuit protection allows an exploding bridgewire firing 
unit to satisfy all its performance specifications when subjected to the 
maximum input voltage of the open circuit voltage of the unit's power 
source and when subjected to the minimum input voltage of the loaded 
voltage of the power source;
    (2) In the event of an input power dropout, any control or switching 
circuit that contributes to the reliable operation of an exploding 
bridgewire firing unit, including solid-state power transfer switches, 
does not change state for at least 50 milliseconds;
    (3) Any watchdog circuit satisfies all its performance 
specifications;
    (4) The firing unit satisfies all its performance specifications 
when any of its monitoring circuits' output ports are subjected to

[[Page 741]]

a short circuit or the highest positive or negative voltage capable of 
being supplied by the monitor batteries or other power supplies; and
    (5) The firing unit satisfies all its performance specifications 
when subjected to any reverse polarity voltage that could occur during 
launch processing.
    (i) Repetitive functioning. This test must demonstrate that a firing 
unit satisfies all its performance specifications when subjected to 
repetitive functioning for five times the worst-case number of cycles 
required for acceptance, checkout and operations, including any retest 
due to schedule delays.
    (j) Static discharge. A static discharge test must demonstrate that 
an exploding bridgewire will not fire and satisfies all its performance 
specifications when subjected to any electrostatic discharge that it 
could experience from personnel or conductive surfaces. The test must 
subject an exploding bridgewire to the greater of:
    (1) A 25k-volt, 500-picofarad pin-to-pin discharge through a 5k-ohm 
resistor and a 25k-volt, 500-picofarad pin-to-case discharge with no 
resistor; or
    (2) The maximum predicted pin-to-pin and pin-to-case electrostatic 
discharge.
    (k) Exploding bridgewire status-of-health. An exploding bridgewire 
status-of-health test must satisfy section E417.3(f). This must include 
measuring the bridgewire insulation resistance at operating voltage.
    (l) Safety devices. This test must demonstrate that any protection 
circuitry that is internal to an exploding bridgewire, such as a spark 
gap, satisfies all its performance specifications and will not degrade 
the bridgewire's performance or reliability when exposed to the 
qualification environments. The test must include static gap breakdown, 
dynamic gap breakdown, and specification hold-off voltage under 
sustained exposure.
    (m) Firing tests--(1) General. Each firing test of an exploding 
bridgewire must satisfy all of the following:
    (i) Each test must demonstrate that the exploding bridgewire 
satisfies all its performance specifications when subjected to 
qualification stress conditions;
    (ii) The number of exploding bridgewire samples that each test must 
fire and the test conditions, including firing voltage and temperature, 
must satisfy each table of this section;
    (iii) Before initiation, each component sample must experience the 
required temperature for enough time to achieve thermal equilibrium;
    (iv) Each test must subject each exploding bridgewire sample to a 
high voltage initiation source that duplicates the exploding bridgewire 
firing unit output waveform and impedance, including high voltage 
cabling; and
    (v) Each test must measure ordnance output using a measuring device, 
such as a swell cap or dent block, to demonstrate that the ordnance 
output satisfies all its performance specifications.
    (2) All-fire voltage. Each all-fire voltage test must subject each 
exploding bridgewire sample to the manufacturer specified all-fire 
energy level for voltage, current, and pulse duration.
    (3) Operating voltage. Each operating voltage test must subject each 
exploding bridgewire sample to the firing unit's manufacturer specified 
operating voltage, current, and pulse duration. If the operating energy 
is unknown, the test must use no less than 200% of the all-fire voltage.
    (4) Twice-operating voltage. This test must subject each exploding 
bridgewire sample to 200% of the operating voltage.
    (5) Ambient-temperature. This test must initiate each exploding 
bridgewire sample while at ambient temperature.
    (6) High-temperature. Each high-temperature test must initiate each 
exploding bridgewire sample while it is subjected to the manufacturer 
specified high-temperature level or at a +71 [deg]C workmanship 
screening level, whichever is higher.
    (7) Low-temperature. Each low-temperature test must initiate each 
exploding bridgewire sample while it is subjected to the manufacturer 
specified low-temperature level or at a -54 [deg]C workmanship screening 
level, whichever is lower.
    (n) Radio frequency impedance. A radio frequency impedance test must 
determine an exploding bridgewire's radio frequency impedance for use in 
any system radio frequency susceptibility analysis.
    (o) Radio frequency sensitivity. A radio frequency sensitivity test 
must consist of a statistical firing series of exploding bridgewire lot 
samples to determine the radio frequency sensitivity of the exploding 
bridgewire. The test must demonstrate that the radio frequency no-fire 
energy level does not exceed the level used in the flight termination 
system design and analysis.
    (p) No-fire energy level. A no-fire energy level test must consist 
of a statistical firing series of exploding bridgewire lot samples to 
determine the highest electrical energy level at which the exploding 
bridgewire will not fire with a reliability of 0.999 with a 95% 
confidence level when subjected to a continuous current pulse. The test 
must demonstrate that the no-fire energy level is no less than the no-
fire energy level used in the flight termination system design and 
analysis.
    (q) All-fire energy level. An all-fire energy level test must 
consist of a statistical firing series of exploding bridgewire lot 
samples to determine the lowest electrical energy level at which the 
exploding bridgewire will fire with a reliability of 0.999 with a 95% 
confidence level when subjected to a current

[[Page 742]]

pulse simulating the firing unit output waveform and impedance 
characteristics. Each exploding bridgewire sample must be in its flight 
configuration, and must possess any internal safety devices, such as a 
spark gap, employed in the flight configuration. The test must 
demonstrate that the all-fire energy level does not exceed the all-fire 
energy level used in the flight termination system design and analysis.
    (r) Auto-ignition. This test must demonstrate that an exploding 
bridgewire does not experience auto-ignition, sublimation, or melting 
when subjected to any high-temperature environment during handling, 
testing, storage, transportation, installation, or flight. The test must 
include all of the following:
    (1) The test environment must be no less than 30 [deg]C higher than 
the highest non-operating or operating temperature that the device could 
experience;
    (2) The test duration must be the maximum predicted high-temperature 
duration or one hour, whichever is greater; and
    (3) After exposure to the test environment, each exploding 
bridgewire sample must undergo external and internal examination, 
including any dissection needed to identify any auto-ignition, 
sublimation, or melting.

                      E417.29 Ordnance interrupter

    (a) General. This section applies to any ordnance interrupter that 
is part of a flight termination system, including any rotor lead or 
booster charge that is used by the interrupter. Any ordnance 
interrupter, rotor lead, or booster charge must satisfy each test or 
analysis identified by any table of this section to demonstrate that it 
satisfies all its performance specifications when subjected to each non-
operating and operating environment.

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    (b) Status-of-health. An ordnance interrupter status-of-health test 
must satisfy section E45417.3(f). This must include measuring the 
interrupter's safe-and-arm transition time.
    (c) Safe-and-arm position monitor. This test must demonstrate all of 
the following:
    (1) That an ordnance interrupter's safe-and-arm transition 
operation, such as rotation or sliding, satisfies all its performance 
specifications;
    (2) That any ordnance interrupter-monitoring device can determine, 
before flight, if the ordnance interrupter is in the proper flight 
configuration;
    (3) The presence of the arm indication when the ordnance interrupter 
is armed; and
    (4) The presence of the safe indication when the ordnance 
interrupter is safed.
    (d) Safety tests--(1) General. Each safety test must demonstrate 
that an ordnance interrupter is safe to handle and use on the launch 
vehicle.
    (2) Containment. For any ordnance interrupter that has an internal 
rotor charge, a containment test must demonstrate that the interrupter 
will not fragment when the internal charge is initiated.
    (3) Barrier functionality. A barrier functionality test must 
demonstrate that, when the ordnance interrupter is in the safe position, 
if the donor transfer line or the internal rotor charge is initiated, 
the ordnance output will not propagate to an explosive transfer system. 
The test must consist of firing tests at high- and low-temperature 
extremes with an explosive transfer system that simulates the flight 
configuration. The number of samples that the test must fire and the 
test conditions must satisfy each table of this section and all of the 
following:
    (i) High-temperature. A high-temperature test must initiate each 
ordnance sample

[[Page 752]]

while it is subjected to no lower than the qualification high-
temperature level or a 71 [deg]C workmanship screening level, whichever 
is higher; and
    (ii) Low-temperature. A low-temperature test must initiate each 
ordnance sample while it is subjected to no higher than the 
qualification low-temperature level or a -54 [deg]C workmanship 
screening level, whichever is lower.
    (4) Extended stall. For an ordnance interrupter with an internal 
rotor or booster charge, an extended stall test must demonstrate that 
the interrupter does not initiate when:
    (i) Locked in its safe position; and
    (ii) Subjected to a continuous operating arming voltage for the 
maximum predicted time that could occur accidentally or one hour, 
whichever is greater.
    (5) Manual safing. A manual safing test must demonstrate that an 
ordnance interrupter can be manually safed.
    (6) Safing-interlock. A safing-interlock test must demonstrate that 
when an ordnance interrupter's safing-interlock is in place and 
operating arming current is applied, the interlock prevents arming and 
satisfies any other performance specification of the interlock.
    (e) Interrupter abbreviated performance. An interrupter abbreviated 
performance test must satisfy section E417.3(e). This must include 
continuous monitoring of the interrupter's arm monitoring circuit. An 
ordnance interrupter must undergo this test while armed.
    (f) Firing tests. (1) General. A firing test of an ordnance 
interrupter, rotor lead, or booster charge must satisfy all of the 
following:
    (i) The test must demonstrate that the initiation and output energy 
transfer of each ordnance charge satisfies all its performance 
specifications and that the component does not fragment;
    (ii) The number of samples that the test must fire and the test 
conditions, including firing current and temperature, must satisfy each 
table of this section;
    (iii) Before initiation, each component sample must experience the 
required temperature for enough time to achieve thermal equilibrium;
    (iv) The test of an ordnance interrupter must simulate the flight 
configuration, including the explosive transfer system lines on the 
input and output;
    (v) Each test of a rotor lead or booster charge must subject the 
component to an energy source that simulates the flight energy source;
    (vi) Each test must measure each ordnance output using a measuring 
device, such as a swell cap or dent block, to demonstrate that the 
output satisfies all its performance specifications; and
    (vii) For a single interrupter that contains more than one firing 
path, the test must demonstrate that the initiation of one firing path 
does not adversely affect the performance of any other path.
    (2) Ambient-temperature. This test must initiate each ordnance 
sample while it is at ambient temperature.
    (3) High-temperature. A high-temperature test must initiate each 
ordnance sample while it is subjected to no lower than the qualification 
high-temperature level or a +71 [deg]C workmanship level, whichever is 
higher.
    (4) Low-temperature. A low-temperature test must initiate each 
ordnance sample while it is subjected to no higher than the 
qualification low-temperature level or a - 54 [deg]C workmanship level, 
whichever is lower.
    (g) Barrier alignment. A barrier alignment test must consist of a 
statistical firing series of ordnance interrupter samples. The test must 
demonstrate that the interrupter's safe to arm transition motion 
provides for ordnance initiation with a reliability of 0.999 at a 95% 
confidence level. The test must also demonstrate that the interrupter's 
arm to safe transition motion provides for no ordnance initiation with a 
reliability of 0.999 at a 95% confidence level. The test may employ a 
reusable ordnance interrupter subassembly that simulates the flight 
configuration.
    (h) Repetitive function. A repetitive function test must demonstrate 
the ability of an ordnance interrupter to satisfy all its performance 
specifications when subjected to five times the maximum predicted number 
of safe-to-arm and arm-to-safe cycles.
    (i) Stall. A stall test must demonstrate that an ordnance 
interrupter satisfies all its performance specifications after being 
locked in its safe position and subjected to an operating arming voltage 
for the greater of:
    (1) Five minutes; or
    (2) The maximum predicted time that could occur inadvertently and 
the interrupter would still be used for flight.

                E417.31 Percussion-activated device (PAD)

    (a) General. This section applies to any percussion-activated device 
that is part of a flight termination system, including any primer charge 
it uses. Any percussion-activated device or primer charge must satisfy 
each test or analysis identified by any table of this section to 
demonstrate that it satisfies all its performance specifications when 
subjected to each non-operating and operating environment.

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    (b) Safety tests--(1) General. Each safety test must demonstrate 
that a percussion-activated device is safe to handle and use on the 
launch vehicle.
    (2) No-fire impact. A no-fire impact test must demonstrate that a 
percussion-activated device, when pulled with the guaranteed no-fire 
pull force:
    (i) Will not fire;
    (ii) The device's primer initiation assembly will not disengage; and
    (iii) The device will continue to satisfy all its performance 
specifications.
    (3) Safing-interlock locking. A safing-interlock test must 
demonstrate that, a percussion-activated device, with its safing-
interlock in place, will continue to satisfy all its performance 
specifications and the device's firing assembly will not move more than 
half the no-fire pull distance when subjected to the greater of:
    (i) A 200-pound pull force;
    (ii) The device's all-fire pull-force; or
    (iii) Twice the worst-case pull force that the device can experience 
after it is installed on the vehicle.
    (4) Safing-interlock retention test. A safing-interlock retention 
test must demonstrate that a percussion-activated device's safing-
interlock is not removable when a no-fire pull or greater force is 
applied to the percussion-activated device lanyard. The test must also 
demonstrate that the force needed to remove the safing-interlock with 
the lanyard in an unloaded condition satisfies its performance 
specification.
    (c) Status-of-health. A status-of-health test of a percussion-
activated device must satisfy section E417.3(f). This test must include 
measuring the spring constant and firing pull distance.
    (d) Percussion-activated-device firing tests--(1) General. Each 
firing test of a percussion-activated device must satisfy all of the 
following:

[[Page 764]]

    (i) The test must demonstrate that the device satisfies all its 
performance specifications when subjected to all qualification stress 
conditions;
    (ii) The number of samples that the test must fire and the test 
conditions, including temperature, must satisfy each table of this 
section;
    (iii) Before initiation, each component sample must experience the 
required temperature for enough time to achieve thermal equilibrium;
    (iv) The test must subject the device to the manufacturer specified 
pull-force;
    (v) The test must simulate the flight configuration, including the 
explosive transfer system lines on the output; and
    (vi) The test must measure each ordnance output using a measuring 
device, such as a swell cap or dent block, to demonstrate that the 
output satisfies all its performance specifications.
    (2) Ambient-temperature. This test must initiate each ordnance 
sample while it is subjected to ambient temperature.
    (3) High-temperature. A high-temperature test must initiate each 
ordnance sample while it is subjected to no lower than the qualification 
high-temperature level or a +71 [deg]C workmanship screening level, 
whichever is higher.
    (4) Low-temperature. A low-temperature test must initiate each 
ordnance sample while it is subjected to no higher than the 
qualification low-temperature level or a -54 [deg]C workmanship 
screening level, whichever is lower.
    (e) All-fire energy level. An all-fire energy level test must 
consist of a statistical firing series of primer charge lot samples to 
determine the lowest energy impact at which the primer will fire with a 
reliability of 0.999 at a 95% confidence level. The test must use a 
firing pin and configuration that is representative of the flight 
configuration.
    (f) Primer charge firing tests. (1) General. Each firing test of a 
primer charge must satisfy all of the following:
    (i) The test must demonstrate that the primer charge, including any 
booster charge or ordnance delay as an integral unit, satisfies all its 
performance specifications when subjected to all qualification stress 
conditions;
    (ii) The number of samples that the test must fire and the test 
conditions, including impact energy and temperature, must satisfy each 
table of this section;
    (iii) Before initiation, each component sample must experience the 
required temperature for enough time to achieve thermal equilibrium;
    (iv) The test must use a firing pin and configuration that is 
representative of the flight configuration; and
    (v) The test must measure ordnance output using a measuring device, 
such as a swell cap or dent block, to demonstrate that the ordnance 
output satisfies all its performance specifications.
    (2) Ambient-temperature. This test must initiate each ordnance 
sample while it is subjected to ambient temperature.
    (3) High-temperature. A high-temperature test must initiate each 
ordnance sample while it is subjected to no lower than the qualification 
high-temperature level or a +71 [deg]C workmanship screening level, 
whichever is higher.
    (4) Low-temperature. A low-temperature test must initiate each 
ordnance sample while it is subjected to no higher than the 
qualification low-temperature level or a -54 [deg]C workmanship 
screening level, whichever is lower.
    (g) Auto-ignition. This test must demonstrate that any ordnance 
internal to a percussion-activated device does not experience auto-
ignition, sublimation, or melting when subjected to any high-temperature 
environment during handling, testing, storage, transportation, 
installation, or flight. The test must include all of the following:
    (1) The test environment must be no less than 30 [deg]C higher than 
the highest non-operating or operating temperature that the device could 
experience;
    (2) The test duration must be the maximum predicted high-temperature 
duration or one hour, whichever is greater; and
    (3) After exposure to the test environment, each ordnance component 
must undergo external and internal examination, including any dissection 
needed to identify any auto-ignition, sublimation, or melting.

   E417.33 Explosive transfer system, ordnance manifold, and destruct 
                                 charge

    (a) General. This section applies to any explosive transfer system, 
ordnance manifold, or destruct charge that is part of a flight 
termination system. Any explosive transfer system, ordnance manifold, or 
destruct charge must satisfy each test or analysis identified by any 
table of this section to demonstrate that it satisfies all its 
performance specifications when subjected to each non-operating and 
operating environment.

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    (b) Firing tests--(1) General. A firing test of an explosive 
transfer system, explosive manifold, or destruct charge must satisfy all 
of the following:
    (i) The test must demonstrate that each ordnance sample satisfies 
all its performance specifications when subjected to all qualification 
stress conditions;
    (ii) The number of samples that the test must fire and the test 
conditions, including temperature, must satisfy each table of this 
section;
    (iii) Before initiation, each ordnance sample must experience the 
required temperature for enough time to achieve thermal equilibrium;
    (iv) For any destruct charge, the test must initiate the charge 
against a witness plate to demonstrate that the charge satisfies all its 
performance specifications and is in-family;
    (v) For any explosive transfer system component, the test must 
measure ordnance output using a measuring device, such as a swell cap or 
dent block, to demonstrate that the ordnance output satisfies all its 
performance specifications; and
    (vi) For any explosive manifold that contains ordnance, the test 
must initiate the ordnance using an explosive transfer system in a 
flight representative configuration.
    (2) Ambient-temperature. This test must initiate each ordnance 
sample while it is subjected to ambient temperature.
    (3) High-temperature. A high-temperature test must initiate each 
ordnance sample while it is subjected to no lower than the qualification 
high-temperature level or a +71 [deg]C workmanship screening level, 
whichever is higher.
    (4) Low-temperature. A low-temperature test must initiate each 
ordnance sample while it is subjected to no higher than the 
qualification low-temperature level or a -54 [deg]C workmanship 
screening level, whichever is lower.
    (c) Penetration margin. A penetration margin test must demonstrate a 
destruct charge's ability to accomplish its intended flight termination 
function, such as to destroy the pressure integrity of any solid 
propellant stage or motor or rupture any propellant tank. This must 
include penetrating no less than 150% of the thickness of the target 
material. Each test must also demonstrate that the charge is in-family 
by correlating equivalent penetration depth into a witness plate and 
comparing the results from each test.
    (d) Propellant detonation. A propellant detonation test or analysis 
must demonstrate that a destruct charge will not detonate the propellant 
of its intended target.

                  E417.35 Shock and vibration isolators

    (a) General. This section applies to any shock or vibration isolator 
that is part of a

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flight termination system. Any isolator must satisfy each test or 
analysis identified by table E417.35-1 to demonstrate that it has 
repeatable performance and is free of any workmanship defects.
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    (b) Load deflection. A load deflection test must demonstrate the 
ability of a shock or vibration isolator to withstand the full-scale 
deflection expected during flight while satisfying all its performance 
specifications and that the isolator is in-family. This must include 
subjecting each isolator to varying deflection increments from the null 
position to the full-scale flight deflection and measuring the 
isolator's spring constant at each deflection increment.
    (c) Status-of-health. A status-of-health test of a shock or 
vibration isolator must satisfy section E417.3(f). The test must include 
all of the following:
    (1) The test must measure the isolator's natural frequency while the 
isolator is subjected to a random vibration or sinusoidal sweep 
vibration with amplitudes that are representative of the maximum 
predicted operating environment; and
    (2) The test must measure the isolator's dynamic amplification value 
while the isolator is subjected to a random vibration or sinusoidal 
sweep vibration with amplitudes that are representative of the maximum 
predicted operating environment.

               E417.37 Electrical connectors and harnesses

    (a) General. This section applies to any electrical connector or 
harness that is critical to the functioning of a flight termination 
system during flight, but is not otherwise part of a flight termination 
system component. Any electrical connector or harness must satisfy each 
test or analysis identified by table E417.37-1 of this section to 
demonstrate that it satisfies all its performance specifications when 
subjected to each non-operating and operating environment.

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    (b) Status-of-health. A status-of-health test of a harness or 
connector must satisfy section E417.3(f). The test must include all of 
the following:
    (1) The test must measure the dielectric withstanding voltage 
between mutually insulated portions of the harness or connector to 
demonstrate that the harness or connector satisfies all its performance 
specifications at its rated voltage and withstands any momentary over-
potential due to switching, surge, or any other similar phenomena;
    (2) The test must demonstrate that the insulation resistance between 
mutually insulated points is sufficient to ensure that the harness or 
connector satisfies all its performance specifications at its rated 
voltage and the insulation material is not damaged after the harness or 
connector is subjected to the qualification environments;
    (3) The test must demonstrate the ability of the insulation 
resistance between each wire shield and harness or conductor and the 
insulation between each harness or connector pin to every other pin to 
withstand a minimum workmanship voltage of 500 VDC or 150% of the rated 
output voltage, whichever is greater; and
    (4) The test must measure the resistance of any wire and harness 
insulation to demonstrate that it satisfies all its performance 
specifications.

         E417.39 Ordnance interfaces and manifold qualification

    (a) General. This section applies to any ordnance interface or 
manifold that is part of a flight termination system. Each ordnance 
interface or manifold must undergo a qualification test that 
demonstrates that the interface or manifold satisfies its performance 
specifications with a reliability of 0.999 at a 95% confidence level.
    (b) Interfaces. A qualification test of an ordnance interface must 
demonstrate the interface's reliability. This must include all of the 
following:

[[Page 775]]

    (1) The test must use a simulated flight configured interface and 
test hardware that duplicate the geometry and volume of the firing 
system used on the launch vehicle; and
    (2) The test must account for performance variability due to 
manufacturing and workmanship tolerances such as minimum gap, maximum 
gap, and axial and angular offset.
    (c) Detonation flier plate ordnance transfer systems. A 
qualification test of a detonation flier plate ordnance transfer system 
composed of any component that has a charge or initiates a charge such 
as; electro-explosive devices, exploding bridgewires, ordnance delays, 
explosive transfer systems, destruct charges, and percussion-activated 
devices; must demonstrate the system's reliability using one of the 
following:
    (1) A statistical firing series that varies critical performance 
parameters, including gap and axial and angular alignment, to ensure 
that ordnance initiation occurs across each flight configured interface 
with a reliability of 0.999 at a 95% confidence level;
    (2) Firing 2994 flight units in a flight representative 
configuration to demonstrate that ordnance initiation occurs across each 
flight configured interface with a reliability of 0.999 at a 95% 
confidence level; or
    (3) Firing all of the following units to demonstrate a gap margin 
that ensures ordnance initiation:
    (i) Five units at four times the combined maximum system gap;
    (ii) Five units at four times the combined maximum system axial 
misalignment;
    (iii) Five units at four times the combined maximum system angular 
misalignment; and
    (iv) Five units at 50% of the combined minimum system gap.
    (d) Deflagration and pressure sensitive ordnance transfer systems. A 
qualification test of a deflagration or pressure sensitive ordnance 
transfer system composed of devices such as ordnance delays, electro-
explosive system low energy end-tips, and percussion-activated device 
primers must demonstrate the system's reliability using one of the 
following:
    (1) A statistical firing series that varies critical performance 
parameters, including gap interface, to ensure that ordnance initiation 
occurs across each flight configured interface;
    (2) Firing 2994 flight units in a flight representative 
configuration to demonstrate that ordnance initiation occurs across each 
flight configured interface; or
    (3) Firing all of the following units to demonstrate a significant 
gap margin:
    (i) Five units using a 75% downloaded donor charge across the 
maximum gap; and
    (ii) Five units using a 120% overloaded donor charge across the 
minimum gap.

          E417.41 Flight termination system pre-flight testing

    (a) General. A flight termination system, its subsystems, and 
components must undergo the pre-flight tests required by this section to 
demonstrate that the system will satisfy all its performance 
specifications during the countdown and launch vehicle flight. After 
successful completion of any pre-flight test, if the integrity of the 
system, subsystem, or component is compromised due to a configuration 
change or other event, such as a lightning strike or connector de-mate, 
the system, subsystem, or component must repeat the pre-flight test.
    (b) Pre-flight component tests. A component must undergo one or more 
pre-flight tests at the launch site to detect any change in performance 
due to any shipping, storage, or other environments that may have 
affected performance after the component passed the acceptance tests. 
Each test must measure all the component's performance parameters and 
compare the measurements to the acceptance test performance baseline to 
identify any performance variations, including any out-of-family 
results, which may indicate potential defects that could result in an 
in-flight failure.
    (c) Silver-zinc batteries. Any silver-zinc battery that is part of a 
flight termination system, must undergo the pre-flight activation and 
tests that table E417.21-1 identifies must take place just before 
installation on the launch vehicle. The time interval between pre-flight 
activation and flight must not exceed the battery's performance 
specification for activated stand time capability.
    (d) Nickel-cadmium batteries. Any nickel-cadmium flight termination 
system battery must undergo pre-flight processing and testing before 
installation on the launch vehicle and the processing and testing must 
satisfy all of the following:
    (1) Any pre-flight processing must be equivalent to that used during 
qualification testing to ensure the flight battery's performance is 
equivalent to that of the battery samples that passed the qualification 
tests;
    (2) Each battery must undergo all of the following tests at ambient 
temperature no later than one year before the intended flight date and 
again no earlier than two weeks before the first flight attempt:
    (i) A status-of-health test that satisfies section E417.22(j);
    (ii) A charge retention test that satisfies section E417.22(f); and
    (iii) An electrical performance test that satisfies section 
E417.22(n); and
    (3) The test results from the battery acceptance tests of section 
E417.22 and the one-year and two-week pre-flight tests of paragraph 
(d)(2) of this section must undergo a comparison to demonstrate that the 
battery satisfies all its performance specifications.

[[Page 776]]

The flight battery test data must undergo an evaluation to identify any 
out-of-family performance and to ensure that there is no degradation in 
electrical performance that indicates an age-related problem.
    (4) In the event of a launch schedule slip, after six weeks has 
elapsed from a preflight test, the battery must undergo the test again 
no earlier than two weeks before the next launch attempt.
    (e) Pre-flight testing of a safe-and-arm device that has an internal 
electro-explosive device. An internal electro-explosive device in a 
safe-and-arm device must undergo a pre-flight test that satisfies all of 
the following:
    (1) The test must take place no earlier than 10 calendar days before 
the first flight attempt. If the flight is delayed more than 14 calendar 
days or the flight termination system configuration is broken or 
modified for any reason, such as to replace batteries, the device must 
undergo the test again no earlier than 10 calendar days before the next 
flight attempt. A launch operator may extend the time between the test 
and flight if the launch operator demonstrates that the electro-
explosive device and its firing circuit will each satisfy all their 
performance specifications when subjected to the expected environments 
for the extended period of time;
    (2) The test must include visual checks for signs of any physical 
defect or corrosion; and
    (3) The test must include a continuity and resistance check of the 
electro-explosive device circuit while the safe-and-arm device is in the 
arm position and again while the device is in the safe position.
    (f) Pre-flight testing of an external electro-explosive device. An 
external electro-explosive device that is part of a safe-and-arm device 
must undergo a pre-flight test that satisfies all of the following:
    (1) The test must take place no earlier than 10 calendar days before 
the first flight attempt. If the flight is delayed more than 14 calendar 
days or the flight termination system configuration is broken or 
modified for any reason, such as to replace batteries, the device must 
undergo the test again no earlier than 10 calendar days before the next 
flight attempt. A launch operator may extend the time between the test 
and flight if the launch operator demonstrates that the electro-
explosive device and its firing circuit will satisfy all their 
performance specifications when subjected to the expected environments 
for the extended period of time; and
    (2) The test must include visual checks for signs of any physical 
defect or corrosion and a resistance check of the electro-explosive 
device.
    (g) Pre-flight testing of an exploding bridgewire. An exploding 
bridgewire must undergo a pre-flight test that satisfies all of the 
following:
    (1) The test must take place no earlier than 10 calendar days before 
the first flight attempt. If the flight is delayed more than 14 calendar 
days or the flight termination system configuration is broken or 
modified for any reason, such as to replace batteries, the exploding 
bridgewire must undergo the test again no earlier than 10 calendar days 
before the next flight attempt. A launch operator may extend the time 
between the test and flight if the launch operator demonstrates that the 
exploding bridgewire will satisfy all its performance specifications 
when subjected to the expected environments for the extended period of 
time.
    (2) The test must verify the continuity of each bridgewire.
    (3) Where applicable, the test must include a high voltage static 
test and a dynamic gap breakdown voltage test to demonstrate that any 
spark gap satisfies all its performance specifications.
    (h) Pre-flight testing for command receiver decoders and other 
electronic components. (1) An electronic component, including any 
component that contains piece part circuitry, such as a command receiver 
decoder, must undergo a pre-flight test that satisfies all of the 
following:
    (i) The test must take place no earlier than 180 calendar days 
before flight. If the 180-day period expires before flight, the launch 
operator must replace the component with one that meets the 180-day 
requirement or test the component in place on the launch vehicle. The 
test must satisfy the alternate procedures for testing the component on 
the launch vehicle contained in the test plan and procedures required by 
section E417.1(c); and
    (ii) The component must undergo the test at ambient temperature. The 
test must measure all performance parameters measured during acceptance 
testing.
    (2) A launch operator may substitute an acceptance test for a pre-
flight test if the acceptance test is performed no earlier than 180 
calendar days before flight.
    (i) Pre-flight subsystem and system level test. A flight termination 
system must undergo the pre-flight subsystem and system level tests 
required by this paragraph after the system's components are installed 
on a launch vehicle to ensure proper operation of the final subsystem 
and system configurations. Each test must compare data obtained from the 
test to data from the pre-flight component tests and acceptance tests to 
demonstrate that there are no discrepancies indicating a flight 
reliability concern.
    (1) Radio frequency system pre-flight test. All radio frequency 
systems must undergo a pre-flight test that satisfies all of the 
following:
    (i) The test must demonstrate that the flight termination system 
antennas and associated radio frequency systems satisfy all their 
performance specifications once installed in their final flight 
configuration;

[[Page 777]]

    (ii) The test must measure the system's voltage standing wave ratio 
and demonstrate that any insertion losses are within the design limits;
    (iii) The test must demonstrate that the radio frequency system, 
from each command control system transmitter antenna used for the first 
stage of flight to each command receiver satisfies all its performance 
specifications;
    (iv) The test must occur no earlier than 90 days before flight; and
    (v) The test must demonstrate the functions of each command receiver 
decoder and calibrate the automatic gain control signal strength curves, 
verify the threshold sensitivity for each command, and verify the 
operational bandwidth.
    (2) End-to-end test of a non-secure command receiver decoder system. 
Any flight termination system that uses a non-secure command receiver 
decoder must undergo an end-to-end test of all flight termination system 
subsystems, including command destruct systems and inadvertent 
separation destruct systems. The test must satisfy all of the following:
    (i) The test must take place no earlier than 72 hours before the 
first flight attempt. After the test, if the flight is delayed more than 
14 calendar days or the flight termination system configuration is 
broken or modified for any reason, such as to replace batteries, the 
system must undergo the end-to-end test again no earlier than 72 hours 
before the next flight attempt;
    (ii) The flight termination system, except for all ordnance 
initiation devices, must undergo the test in its final onboard launch 
vehicle configuration;
    (iii) The test must use a destruct initiator simulator that 
satisfies Sec. 417.307(h) in place of each flight initiator to 
demonstrate that the command destruct and inadvertent separation 
destruct systems deliver the required energy to initiate the flight 
termination system ordnance;
    (iv) The flight termination system must undergo the test while 
powered by the batteries that the launch vehicle will use for flight. A 
flight termination system battery must not undergo recharging at any 
time during or after the end-to-end test. If the battery is recharged at 
any time before flight the system must undergo the end-to-end test 
again;
    (v) The end-to-end test must exercise all command receiver decoder 
functions critical to flight termination system operation during flight, 
including the pilot or check tone, using the command control system 
transmitters in their flight configuration or other representative 
equipment;
    (vi) The test must demonstrate that all primary and redundant flight 
termination system components, flight termination system circuits, and 
command control system transmitting equipment are operational; and
    (vii) The test must exercise the triggering mechanism of all 
electrically initiated inadvertent separation destruct systems to 
demonstrate that each is operational.
    (3) Open-loop test of a non-secure command destruct system. For each 
flight attempt, any flight termination system that uses a non-secure 
command receiver decoder must undergo an open-loop radio frequency test, 
no earlier than 60 minutes before the start of the launch window, to 
validate the entire radio frequency command destruct link. For each 
flight attempt, the flight safety system must undergo the test again 
after any break or change in the system configuration. The test must 
satisfy all of the following:
    (i) The system must undergo the test with all flight termination 
system ordnance initiation devices in a safe condition;
    (ii) Flight batteries must power all receiver decoders and other 
electronic components. The test must account for any warm-up time needed 
to ensure the reliable operation of electronic components;
    (iii) The test must exercise the command receiver decoder arm 
function, including the pilot or check tone, using a command control 
transmitter in its flight configuration;
    (iv) The test must demonstrate that each receiver decoder is 
operational and is compatible with the command control transmitter 
system; and
    (v) Following successful completion of the open-loop test, if any 
receiver decoder is turned off or the transmitter system fails to 
continuously transmit the pilot or check tone, the flight termination 
system must undergo the open-loop test again before flight.
    (4) Initial open-loop test of a secure high-alphabet command 
destruct system. Any flight termination system that uses a secure high-
alphabet command receiver decoder must undergo an open-loop radio 
frequency test to demonstrate the integrity of the system between the 
command control transmitter system and launch vehicle radio frequency 
system from the antenna to the command receiver decoders. The test must 
satisfy all of the following:
    (i) The test must occur before loading the secure flight code on to 
the command transmitting system and the command receiver decoders;
    (ii) The test must use a non-secure code, also known as a 
maintenance code, loaded on to the command control transmitting system 
and the command receiver decoders;
    (iii) Each command receiver decoder must be powered by either the 
ground or launch vehicle power sources;
    (iv) The command control transmitter system must transmit, open-
loop, all receiver decoder commands required for the flight termination 
system functions, including pilot or check tone to the vehicle;

[[Page 778]]

    (v) The test must demonstrate that each command receiver decoder 
receives, decodes and outputs each command sent by the command control 
system; and
    (vi) The testing must demonstrate that all primary and redundant 
flight termination system components, flight termination system 
circuits, and command control system transmitting equipment are 
operational.
    (5) End-to-end test of a secure high-alphabet command destruct 
system. Any flight termination system that uses a secure high-alphabet 
command receiver decoder must undergo an end-to-end test of all flight 
termination system subsystems, including command destruct systems and 
inadvertent separation destruct systems. The test must satisfy all of 
the following:
    (i) The system must undergo the test no earlier than 72 hours before 
the first flight attempt. After the test, if the flight is delayed more 
than 14 calendar days or the flight termination system configuration is 
broken or modified for any reason, such as to replace batteries, the 
system must undergo the end-to-end tests again no earlier than 72 hours 
before the next flight attempt;
    (ii) The system must undergo the test in a closed-loop configuration 
using the secure flight code;
    (iii) The flight termination system, except for the ordnance 
initiation devices, must undergo the test in its final onboard launch 
vehicle configuration;
    (iv) The test must use a destruct initiator simulator that satisfies 
Sec. 417.307(h) in place of each flight initiator to demonstrate that 
the command destruct and inadvertent separation destruct systems deliver 
the energy required to initiate the flight termination system ordnance;
    (v) The flight termination system must undergo the test while 
powered by the batteries that the launch vehicle will use for flight. A 
flight termination system battery must not undergo recharging at any 
time during or after the end-to-end test. If the battery is recharged at 
any time before flight the system must undergo the end-to-end test 
again;
    (vi) The test must exercise all command receiver decoder functions 
critical to flight termination system operation during flight, including 
the pilot or check tone, in a closed-loop test configuration using 
ground support testing equipment hardwired to the launch vehicle radio 
frequency receiving system;
    (vii) The test must demonstrate that all primary and redundant 
launch vehicle flight termination system components and circuits are 
operational; and
    (viii) The test must exercise the triggering mechanism of all 
electrically initiated inadvertent separation destruct systems to 
demonstrate that they are operational.
    (6) Abbreviated closed-loop test of a secure high-alphabet command 
destruct system. Any flight termination system that uses a secure high-
alphabet command receiver decoder must undergo an abbreviated closed-
loop test if, due to a launch scrub or delay, more than 72 hours pass 
since the end-to-end test of paragraph (h)(5) of this section. The test 
must satisfy all of the following:
    (i) The flight termination system must undergo the test in its final 
flight configuration with all flight destruct initiators connected and 
in a safe condition;
    (ii) The test must occur just before launch support tower rollback 
or other similar final countdown event that suspends access to the 
launch vehicle;
    (iii) Each command receiver decoder must undergo the test powered by 
the flight batteries;
    (iv) The test must exercise all command receiver decoder functions 
critical to flight termination system operation during flight except the 
destruct function, including the pilot or check tone, in a closed-loop 
test configuration using ground support testing equipment hardwired to 
the launch vehicle radio frequency receiving system; and
    (v) The test must demonstrate that the launch vehicle command 
destruct system, including each command receiver decoder and all 
batteries, is functioning properly.
    (7) Final open-loop test of a secure high-alphabet command destruct 
system. Any flight termination system that uses a secure high-alphabet 
command receiver decoder must undergo a final open-loop radio frequency 
test no earlier than 60 minutes before flight, to validate the entire 
radio frequency command destruct link from the command control 
transmitting system to launch vehicle antenna. The test must satisfy all 
of the following:
    (i) The flight termination system must undergo the test in its final 
flight configuration with all flight destruct initiators connected and 
in a safe condition;
    (ii) Flight batteries must power all receiver decoders and other 
electronic components. The test must account for any warm-up time needed 
for reliable operation of the electronic components;
    (iii) The test must exercise each command receiver decoder's self-
test function including pilot or check tone using the command control 
system transmitters in their flight configuration;
    (iv) The test must demonstrate that each receiver decoder is 
operational and compatible with the command control transmitter system; 
and
    (v) Following successful completion of the open-loop test, if any 
command receiver decoder is turned off or the transmitter system fails 
to continuously transmit the pilot or check tone, the flight termination 
system must undergo the final open-loop test again before flight.

[[Page 779]]



Sec. Appendix F to Part 417 [Reserved]



Sec. Appendix G to Part 417--Natural and Triggered Lightning Flight 
                             Commit Criteria

                             G417.1 General

    For purposes of this section, the requirement for any weather 
monitoring and measuring equipment needed to satisfy the lightning 
flight commit criteria limits the equipment to only that which is 
needed. Accordingly, the equipment could include a ground-based, or 
airborne field mill, or a weather radar, but may or may not be limited 
to those items. Certain equipment, such as a field mill, when utilized 
with the lightning flight commit criteria, may increase launch 
opportunities because of the ability to verify the electric field in any 
cloud within 5 nautical miles of the flight path. However, a field mill 
is not required in order to satisfy the lightning flight commit 
criteria.
    (a) This appendix provides flight commit criteria to protect against 
natural lightning and lightning triggered by the flight of a launch 
vehicle. A launch operator must apply these criteria under Sec. 417.113 
(c) for any launch vehicle that utilizes a flight safety system.
    (b) The launch operator must employ:
    (1) Any weather monitoring and measuring equipment needed to satisfy 
the lightning flight commit criteria.
    (2) Any procedures needed to satisfy the lightning flight commit 
criteria.
    (c) If a launch operator proposes any alternative lightning flight 
commit criteria, the launch operator must clearly and convincingly 
demonstrate that the alternative provides an equivalent level of safety.

              G417.3 Definitions, Explanations and Examples

    For the purpose of appendix G417:
    Anvil cloud means a stratiform or fibrous cloud produced by the 
upper level outflow or blow-off from thunderstorms or convective clouds.
    Associated means that two or more clouds are causally related to the 
same weather disturbance or are physically connected. Associated does 
not have to mean occurring at the same time. A cumulus cloud formed 
locally and a cirrus layer that is physically separated from that 
cumulus cloud and that is generated by a distant source are not 
associated, even if they occur over or near the launch point at the same 
time.
    Bright band means an enhancement of radar reflectivity caused by 
frozen hydrometeors falling and beginning to melt at any altitude where 
the temperature is 0 degrees Celsius or warmer.
    Cloud means a visible mass of water droplets or ice crystals 
produced by condensation of water vapor in the atmosphere.
    Cloud edge means the visible boundary, including the sides, base, 
and top, of a cloud as seen by an observer. In the absence of a visible 
boundary as seen by an observer, the 0 dBZ radar reflectivity boundary 
defines a cloud edge.
    Cloud layer means a vertically continuous array of clouds, not 
necessarily of the same type, whose bases are approximately at the same 
level.
    Cumulonimbus cloud means any convective cloud with any part at an 
altitude where the temperature is colder than -20 degrees Celsius.
    Debris cloud means any cloud, except an anvil cloud, that has become 
detached from a parent cumulonimbus cloud or thunderstorm, or that 
results from the decay of a parent cumulonimbus cloud or thunderstorm.
    Disturbed Weather means a weather system where dynamical processes 
destabilize the air on a scale larger than the individual clouds or 
cells. Examples of disturbed weather include fronts and troughs.
    Electric field measurement aloft means the magnitude of the 
instantaneous vector electric field (E) at a known position in the 
atmosphere, such as measured by a suitably instrumented, calibrated, and 
located airborne-field-mill aircraft.
    Electric field measurement at the surface of Earth means the 1-
minute arithmetic average of the vertical electric field (Ez) at the 
ground measured by a ground-based field mill. The polarity of the 
electric field is the same as that of the potential gradient; that is, 
the polarity of the field at Earth's surface is the same as the dominant 
charge overhead. An interpolation based on electric field contours is 
not a measurement for purposes of this appendix.
    Field mill is a specific class of electric-field sensor that uses a 
moving, grounded conductor to induce a time-varying electric charge on 
one or more sensing elements in proportion to the ambient electrostatic 
field.
    Flight path means the planned normal flight trajectory, including 
its vertical and horizontal uncertainties to include the sum of the wind 
effects and the three-sigma guidance and performance deviations.
    Moderate precipitation means a precipitation rate of 0.1 inches/hr 
or a radar reflectivity factor of 30 dBZ.
    Nontransparent means cloud cover is nontransparent if (1) forms seen 
through it are blurred, indistinct, or obscured; or (2) forms are seen 
distinctly only through breaks in the cloud cover. Clouds with a radar 
reflectivity factor of 0 dBZ or greater are also nontransparent.
    Ohms/Square means the surface resistance in ohms when a measurement 
is made from

[[Page 780]]

an electrode on one surface extending the length of one side of a square 
of any size to an electrode on the same surface extending the length of 
the opposite side of the square. The resistance measured in this way is 
independent of the area of a square.
    Precipitation means detectable rain, snow, hail, graupel, or sleet 
at the ground; virga, or a radar reflectivity factor greater than 18 dBZ 
at altitude.
    Specified Volume means the volume bounded in the horizontal by 
vertical plane, perpendicular sides located 5.5 km (3 NM) north, east, 
south, and west of the point on the flight track, on the bottom by the 0 
degree C level, and on the top by the upper extent of all clouds.
    Thick cloud layer means one or more cloud layers whose combined 
vertical extent from the base of the bottom layer to the top of the 
uppermost layer exceeds a thickness of 4,500 feet. Cloud layers are 
combined with neighboring layers for determining total thickness only 
when they are physically connected by vertically continuous clouds, as, 
for example, when towering clouds in one layer contact or merge with 
clouds in a layer (or layers) above.
    Thunderstorm means any convective cloud that produces lightning.
    Transparent Cloud cover is transparent if objects above, including 
higher clouds, blue sky, and stars can be distinctly seen from below; or 
objects, including terrain, buildings, and lights on the ground, can be 
distinctly seen from above. Transparency is only defined for the visible 
wavelengths.
    Triboelectrification means the transfer of electrical charge from 
ice particles to the launch vehicle when the ice particles rub the 
vehicle during impact.
    Volume-Averaged, Height-Integrated Radar Reflectivity (units of dBZ-
kilometers) means the product of the volume-averaged radar reflectivity 
and the average cloud thickness within a specified volume relative to a 
point along the flight track.
    Within is a function word used to specify a distance in all 
directions (horizontal, vertical, and slant separation) between a cloud 
edge and a flight path. For example, ``within 10 nautical miles of a 
thunderstorm cloud'' means that there must be a 10 nautical mile margin 
between every part of a thunderstorm cloud and the flight path.

                            G417.5 Lightning

    (a) A launch operator must not initiate flight for 30 minutes after 
any type of lightning occurs in a thunderstorm if the flight path will 
carry the launch vehicle within 10 nautical miles of that thunderstorm.
    (b) A launch operator must not initiate flight for 30 minutes after 
any type of lightning occurs within 10 nautical miles of the flight path 
unless:
    (1) The cloud that produced the lightning is not within 10 nautical 
miles of the flight path;
    (2) There is at least one working field mill within 5 nautical miles 
of each such lightning flash; and
    (3) The absolute values of all electric field measurements made at 
the Earth's surface within 5 nautical miles of the flight path and at 
each field mill specified in paragraph (b)(2) of this section have been 
less than 1000 volts/meter for 15 minutes or longer.
    (c) If a cumulus cloud remains 30 minutes after the last lightning 
occurs in a thunderstorm, section G417.7 applies. Sections G417.9 and 
G417.11 apply to any anvil or detached anvil clouds. Section G417.13 
applies to debris clouds.

                          G417.7 Cumulus Clouds

    For the purposes of this section, ``cumulus clouds'' do not include 
altocumulus, cirrocumulus, or stratocumulus clouds.
    (a) A launch operator must not initiate flight if the flight path 
will carry the launch vehicle within 10 nautical miles of any cumulus 
cloud that has a cloud top at an altitude where the temperature is 
colder than -20 degrees Celsius.
    (b) A launch operator must not initiate flight if the flight path 
will carry the launch vehicle within 5 nautical miles of any cumulus 
cloud that has a cloud top at an altitude where the temperature is 
colder than -10 degrees Celsius.
    (c) A launch operator must not initiate flight if the flight path 
will carry the launch vehicle through any cumulus cloud with its cloud 
top at an altitude where the temperature is colder than -5 degrees 
Celsius.
    (d) A launch operator must not initiate flight if the flight path 
will carry the launch vehicle through any cumulus cloud that has a cloud 
top at an altitude where the temperature is between +5 degrees Celsius 
and -5 degrees Celsius unless:
    (1) The cloud is not producing precipitation;
    (2) The horizontal distance from the center of the cloud top to at 
least one working field mill is less than 2 nautical miles; and
    (3) All electric field measurements made at the Earth's surface 
within 5 nautical miles of the flight path and at each field mill used 
as required by paragraph (d)(2) of this section have been between -100 
volts/meter and +500 volts/meter for 15 minutes or longer.

                      G417.9 Attached Anvil Clouds

    (a) A launch operator must not initiate flight if the flight path 
will carry the launch vehicle through, or within 10 nautical miles of, a 
nontransparent part of any attached anvil cloud for the first 30 minutes 
after the last lightning discharge in or from the parent cloud or anvil 
cloud.

[[Page 781]]

    (b) A launch operator must not initiate flight if the flight path 
will carry the launch vehicle through, or within 5 nautical miles of, a 
nontransparent part of any attached anvil cloud between 30 minutes and 
three hours after the last lightning discharge in or from the parent 
cloud or anvil cloud unless:
    (1) The portion of the attached anvil cloud within 5 nautical miles 
of the flight path is located entirely at altitudes where the 
temperature is colder than 0 degrees Celsius; and
    (2) The volume-averaged, height-integrated radar reflectivity is 
less than +33 dBZ-kft everywhere along the portion of the flight path 
where any part of the attached anvil cloud is within the volume.
    (c) A launch operator must not initiate flight if the flight path 
will carry the launch vehicle through a nontransparent part of any 
attached anvil cloud more than 3 hours after the last lightning 
discharge in or from the parent cloud or anvil cloud unless:
    (1) The portion of the attached anvil cloud within 5 nautical miles 
of the flight path is located entirely at altitudes where the 
temperature is colder than 0 degrees Celsius; and
    (2) The volume-averaged, height-integrated radar reflectivity is 
less than +33 dBZ-kft everywhere along the portion of the flight path 
where any part of the attached anvil cloud is within the specified 
volume.

                      G417.11 Detached Anvil Clouds

    For the purposes of this section, detached anvil clouds are never 
considered debris clouds.
    (a) A launch operator must not initiate flight if the flight path 
will carry the launch vehicle through or within 10 nautical miles of a 
nontransparent part of a detached anvil cloud for the first 30 minutes 
after the last lightning discharge in or from the parent cloud or anvil 
cloud before detachment or after the last lightning discharge in or from 
the detached anvil cloud after detachment.
    (b) A launch operator must not initiate flight if the flight path 
will carry the launch vehicle within 5 nautical miles of a 
nontransparent part of a detached anvil cloud between 30 minutes and 3 
hours after the time of the last lightning discharge in or from the 
parent cloud or anvil cloud before detachment or after the last 
lightning discharge in or from the detached anvil cloud after detachment 
unless section (1) or (2) is satisfied:
    (1) This section is satisfied if all three of the following 
conditions are met:
    (i) There is at least one working field mill within 5 nautical miles 
of the detached anvil cloud; and
    (ii) The absolute values of all electric field measurements at the 
surface within 5 nautical miles of the flight path and at each field 
mill specified in (1) above have been less than 1000 V/m for 15 minutes; 
and
    (iii) The maximum radar return from any part of the detached anvil 
cloud within 5 nautical miles of the flight path has been less than 10 
dBZ for 15 minutes.
    (2) This section is satisfied if both of the following conditions 
are met:
    (i) The portion of the detached anvil cloud within 5 nautical miles 
of the flight path is located entirely at altitudes where the 
temperature is colder than 0 degrees Celsius; and
    (ii) The volume-averaged, height-integrated radar reflectivity is 
less than +33 dBZ-kft everywhere along the portion of the flight path 
where any part of the detached anvil cloud is within the specified 
volume.
    (c) A launch operator must not initiate flight if the flight path 
will carry the launch vehicle through a nontransparent part of a 
detached anvil cloud unless Section (1) or (2) is satisfied.
    (1) This section is satisfied if both of the following conditions 
are met:
    (i) At least 4 hours have passed since the last lightning discharge 
in or from the detached anvil cloud; and
    (ii) At least 3 hours have passed since the time that the anvil 
cloud is observed to be detached from the parent cloud.
    (2) This section is satisfied if both of the following conditions 
are met.
    (i) The portion of the detached anvil cloud within 5 nautical miles 
of the flight path is located entirely at altitudes where the 
temperature is colder than 0 degrees Celsius; and
    (ii) The volume-averaged, height-integrated radar reflectivity is 
less than +33 dBZ-kft everywhere along the portion of the flight path 
where any part of the detached anvil cloud is within the specified 
volume.

                          G417.13 Debris Clouds

    (a) A launch operator must not initiate flight if the flight path 
will carry the launch vehicle through any nontransparent part of a 
debris cloud for 3 hours after the debris cloud is observed to be 
detached from the parent cloud or after the debris cloud is observed to 
have formed from the decay of the parent cloud top to an altitude where 
the temperature is warmer than -10 degrees Celsius. The 3-hour period 
must begin again at the time of any lightning discharge in or from the 
debris cloud.
    (b) A launch operator must not initiate flight if the flight path 
will carry the launch vehicle within 5 nautical miles of a 
nontransparent part of a debris cloud during the 3-hour period defined 
in paragraph (a) of this section, unless:
    (1) There is at least one working field mill within 5 nautical miles 
of the debris cloud;
    (2) The absolute values of all electric field measurements at the 
Earth's surface within 5 nautical miles of the flight path and 
measurements at each field mill employed required by paragraph (b)(1) of 
this section

[[Page 782]]

have been less than 1000 volts/meter for 15 minutes or longer; and
    (3) The maximum radar return from any part of the debris cloud 
within 5 nautical miles of the flight path has been less than 10 dBZ for 
15 minutes or longer.

                        G417.15 Disturbed Weather

    (a) A launch operator must not initiate flight if the flight path 
will carry the launch vehicle through a nontransparent cloud associated 
with disturbed weather that has clouds with cloud tops at altitudes 
where the temperature is colder than 0 degrees Celsius and that 
contains, within 5 nautical miles of the flight path:
    (1) Moderate or greater precipitation; or
    (2) Evidence of melting precipitation such as a radar bright band.

                       G417.17 Thick Cloud Layers

    (a) A launch operator must not initiate flight if the flight path 
will carry the launch vehicle through a nontransparent part of a cloud 
layer that is:
    (1) Greater than 4,500 feet thick and any part of the cloud layer 
along the flight path is located at an altitude where the temperature is 
between 0 degrees Celsius and -20 degrees Celsius; or
    (2) Connected to a thick cloud layer that, within 5 nautical miles 
of the flight path, is greater than 4,500 feet thick and has any part 
located at any altitude where the temperature is between 0 degrees 
Celsius and -20 degrees Celsius.
    (b) A launch operator need not apply the lightning commit criteria 
in paragraphs (a)(1) and (a)(2) of this section if the thick cloud layer 
is a cirriform cloud layer that has never been associated with 
convective clouds, is located only at temperatures of -15 degrees 
Celsius or colder, and shows no evidence of containing liquid water.

                          G417.19 Smoke Plumes

    (a) A launch operator must not initiate flight if the flight path 
will carry the launch vehicle through any cumulus cloud that has 
developed from a smoke plume while the cloud is attached to the smoke 
plume, or for the first 60 minutes after the cumulus cloud is observed 
to be detached from the smoke plume.
    (b) Section G417.7 applies to cumulus clouds that have formed above 
a fire but have been detached from the smoke plume for more than 60 
minutes.

                     G417.21 Surface Electric Fields

    (a) A launch operator must not initiate flight for 15 minutes after 
the absolute value of any electric field measurement at the Earth's 
surface within 5 nautical miles of the flight path has been greater than 
1500 volts/meter.
    (b) A launch operator must not initiate flight for 15 minutes after 
the absolute value of any electric field measurement at the Earth's 
surface within 5 nautical miles of the flight path has been greater than 
1000 volts/meter unless:
    (1) All clouds within 10 nautical miles of the flight path are 
transparent; or
    (2) All nontransparent clouds within 10 nautical miles of the flight 
path have cloud tops at altitudes where the temperature is warmer than 
+5 degrees Celsius and have not been part of convective clouds that have 
cloud tops at altitudes where the temperature is colder than -10 degrees 
Celsius within the last 3 hours.

                      G417.23 Triboelectrification

    (a) A launch operator must not initiate flight if the flight path 
will go through any part of a cloud at an altitude where the temperature 
is colder than -10 degrees Celsius up to the altitude at which the 
launch vehicle's velocity exceeds 3000 feet/second; unless
    (1) The launch vehicle is ``treated'' for surface electrification; 
or
    (2) A launch operator demonstrates by test or analysis that 
electrostatic discharges on the surface of the launch vehicle caused by 
triboelectrification will not be hazardous to the launch vehicle or the 
spacecraft.
    (b) A launch vehicle is treated for surface electrification if
    (1) All surfaces of the launch vehicle susceptible to ice particle 
impact are such that the surface resistivity is less than 10\9\ ohms/
square; and
    (2) All conductors on surfaces (including dielectric surfaces that 
have been treated with conductive coatings) are bonded to the launch 
vehicle by a resistance that is less than 10\5\ ohms.



Sec. Appendix H to Part 417 [Reserved]



Sec. Appendix I to Part 417--Methodologies for Toxic Release Hazard 
                   Analysis and Operational Procedures

                             I417.1 General

    This appendix provides methodologies for performing toxic release 
hazard analysis for the flight of a launch vehicle as required by Sec. 
417.229 and for launch processing at a launch site in the United States 
as required by Sec. 417.407(f). The requirements of this appendix apply 
to a launch operator and the launch operator's toxic release hazard 
analysis unless the launch operator clearly and convincingly 
demonstrates that an alternative approach provides an equivalent level 
of safety.

[[Page 783]]

        I417.3 Identification of non-toxic and toxic propellants

    (a) General. A launch operator's toxic release hazard analysis for 
launch vehicle flight (section I417.5) and for launch processing 
(section I417.7) must identify all propellants used for each launch and 
identify whether each propellant is toxic or non-toxic as required by 
this section.
    (b) Non-toxic exclusion. A launch operator need not conduct a toxic 
release hazard analysis under this appendix for flight or launch 
processing if its launch vehicle, including all launch vehicle 
components and payloads, uses only those propellants listed in Table 
I417-1.
[GRAPHIC] [TIFF OMITTED] TR25AU06.099

    (c) Identification of toxic propellants. A launch operator's toxic 
release hazard analysis for flight and for launch processing must 
identify all toxic propellants used for each launch, including all toxic 
propellants on all launch vehicle components and payloads. Table I417-2 
lists commonly used toxic propellants and the associated toxic 
concentration thresholds used by the Federal launch ranges for 
controlling potential public exposure. The toxic concentration 
thresholds contained in Table I417-2 are peak exposure concentrations in 
parts per million (ppm). A launch operator must perform a toxic release 
hazard analysis to ensure that the public is not exposed to 
concentrations above the toxic concentration thresholds for each 
toxicant involved in a launch. A launch operator must use the toxic 
concentration thresholds contained in table I417-2 for those 
propellants. Any propellant not identified in table I417-1 or table 
I417-2 falls into the category of unique or uncommon propellants, such 
as those identified in table I417-3, which are toxic or produce toxic 
combustion by-products. Table I417.3 is not an exhaustive list of 
possible toxic propellants and combustion by-products. For a launch that 
uses any propellant listed in table I417-3 or any other unique 
propellant not listed, a launch operator must identify the chemical 
composition of the propellant and all combustion by-products and the 
release scenarios. A launch operator must determine the toxic 
concentration threshold in ppm for any uncommon toxic propellant or 
combustion by-product in accordance with the following:
    (1) For a toxicant that has a level of concern (LOC) established by 
the U.S. Environmental Protection Agency (EPA), Federal Emergency 
Management Agency (FEMA), or Department of Transportation (DOT), a 
launch operator must use the LOC as the toxic concentration threshold 
for the toxic release hazard analysis except as required by paragraph 
(c)(2) of this section.
    (2) If an EPA acute emergency guidance level (AEGL) exists for a 
toxicant and is more conservative than the LOC (that is, lower after 
reduction for duration of exposure), a launch operator must use the AEGL 
instead of the LOC as the toxic concentration threshold.
    (3) A launch operator must use the EPA's Hazard Quotient/Hazard 
Index (HQ/HI) formulation to determine the toxic concentration threshold 
for mixtures of two or more toxicants.
    (4) If a launch operator must determine a toxic concentration 
threshold for a toxicant for which an LOC has not been established, the 
launch operator must clearly and convincingly demonstrate through the 
licensing process that public exposure at the proposed toxic 
concentration threshold will not cause a casualty.

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     I417.5 Toxic release hazard analysis for launch vehicle flight

    (a) General. For each launch, a launch operator's toxic release 
hazard analysis must determine all hazards to the public from any toxic 
release that will occur during the proposed flight of a launch vehicle 
or that would occur in the event of a flight mishap. A launch operator 
must use the results of the toxic release hazard analysis to establish 
for each launch, in accordance with Sec. 417.113(b), flight commit 
criteria that protect the public from a casualty arising out of any 
potential toxic release. A launch operator's toxic release hazard 
analysis must determine if toxic release can occur based on an 
evaluation of the propellants, launch vehicle materials, and estimated 
combustion products. This evaluation must account for both normal 
combustion products and the chemical composition of any unreacted 
propellants.
    (b) Evaluating toxic hazards for launch vehicle flight. Each launch 
must satisfy either the exclusion requirements of section I417.3(b), the 
containment requirements of paragraph (c) of this section, or the 
statistical risk management requirements of paragraph (d) of this 
section, to prevent any casualty that could arise out of exposure to any 
toxic release.
    (c) Toxic containment for launch vehicle flight. For a launch that 
uses any toxic propellant, a launch operator's toxic release hazard 
analysis must determine a hazard distance for each toxicant and a toxic 
hazard area for the launch. A hazard distance for a toxicant is the 
furthest distance from the launch point where toxic concentrations may 
be greater than the toxicant's toxic concentration threshold in the 
event of a release during flight. A launch operator must determine the 
toxic hazard distance for each toxicant as required by paragraphs (c)(1) 
and (c)(2) of this section. A toxic hazard area defines the region on 
the Earth's surface that may be exposed to toxic concentrations

[[Page 787]]

greater than any toxic concentration threshold of any toxicant involved 
in a launch in the event of a release during flight. A launch operator 
must determine a toxic hazard area in accordance with paragraph (c)(3) 
of this section. In order to achieve containment, a launch operator must 
evacuate the public from a toxic hazard area as required by paragraph 
(c)(4) of this section or employ meteorological constraints as required 
by paragraph (c)(5) of this section. A launch operator must determine 
the hazard distance for a quantity of toxic propellant and determine and 
implement a toxic hazard area for a launch as follows:
    (1) Hazard distances for common propellants. Table I417-4 lists 
toxic hazard distances as a function of propellant quantity and toxic 
concentration threshold for commonly used propellants released from a 
catastrophic launch vehicle failure. Tables I417-10 and I417-11 list the 
hazard distance as a function of solid propellant mass for HC1 emissions 
during a launch vehicle failure and during normal flight for ammonium 
perchlorate based solid propellants. A launch operator must use the 
hazard distances corresponding to the toxic concentration thresholds 
established for a launch to determine the toxic hazard area for the 
launch in accordance with paragraph (c)(3) of this section.
    (2) Hazard distances for uncommon or unique propellants. For a 
launch that involves any uncommon or unique propellant, a launch 
operator must determine the toxic hazard distance for each such 
propellant using an analysis methodology that accounts for the following 
worst case conditions:
    (i) Surface wind speed of 2.9 knots with a wind speed increase of 
1.0 knot per 1000 feet of altitude.
    (ii) Surface temperature of 32 degrees Fahrenheit with a dry bulb 
temperature lapse rate of 13.7 degrees Fahrenheit per 1000 feet over the 
first 500 feet of altitude and a lapse rate of 3.0 degrees F per 1000 
feet above 500 feet.
    (iii) Directional wind shear of 2 degrees per 1000 feet of altitude.
    (iv) Relative humidity of 50 percent.
    (v) Capping temperature inversion at the thermally stabilized 
exhaust cloud center of mass altitude.
    (vi) Worst case initial source term assuming instantaneous release 
of fully loaded propellant storage tanks or pressurized motor segments.
    (vii) Worst case combustion or mixing ratios such that production of 
toxic chemical species is maximized within the bounds of reasonable 
uncertainties.
    (viii) Evaluation of toxic hazards for both normal launch and 
vehicle abort failure modes.

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[GRAPHIC] [TIFF OMITTED] TR25AU06.104

    (3) Toxic hazard area. Having determined the toxic hazard distance 
for each toxicant, a launch operator must determine the toxic hazard 
area for a launch as a circle centered at the launch point with a radius 
equal to the greatest toxic hazard distance determined as required by 
paragraphs (c)(1) and (c)(2) of this section, of all the toxicants 
involved in the launch. A launch operator does not have to satisfy 
paragraph (c)(3) of this section if:
    (i) The launch operator demonstrates that there are no populated 
areas contained or partially contained within the toxic hazard area; and
    (ii) The launch operator ensures that no member of the public is 
present within the toxic hazard area during preflight fueling, launch 
countdown, flight and immediate postflight operations at the launch 
site. To ensure the absence of the public, a launch operator must 
develop flight commit criteria and related provisions for implementation 
as part of the launch operator's flight safety plan and hazard area 
surveillance and clearance plan developed under Sec. Sec. 417.111(b) 
and 417.111(j), respectively.
    (4) Evacuation of populated areas within a toxic hazard area. For a 
launch where there is a populated area that is contained or partially 
contained within a toxic hazard area, the launch operator does not have 
to satisfy paragraph (c)(5) of this section if the launch operator 
evacuates all people from all populated areas at risk and ensures that 
no member of the public is present within the toxic hazard area during 
preflight fueling and flight. A launch operator must develop flight 
commit criteria and provisions for implementation of the evacuations as 
part of the launch operator's flight safety plan, hazard area 
surveillance and clearance plan, and local agreements and public 
coordination plan developed according to Sec. Sec. 417.111(b), 
417.111(j) and 417.111(i), respectively.
    (5) Flight meteorological constraints. For a launch where there is a 
populated area that is contained or partially contained within a toxic 
hazard area and that will not be evacuated under paragraph (c)(4) of 
this section, the launch is exempt from any further requirements of this 
section if the launch operator constrains the flight of a launch vehicle 
to favorable wind conditions or during times when atmospheric conditions 
result in reduced toxic hazard distances such that any potentially 
affected populated area is outside the toxic hazard area. A launch 
operator must employ wind and other meteorological constraints as 
follows:

[[Page 790]]

    (i) When employing wind constraints, a launch operator must re-
define the toxic hazard area by reducing the circular toxic hazard area 
determined under paragraph (c)(3) of this section to one or more arc 
segments that do not contain any populated area. Each arc segment toxic 
hazard area must have the same radius as the circular toxic hazard area 
and must be defined by a range of downwind bearings.
    (ii) The launch operator must demonstrate that there are no 
populated areas within any arc segment toxic hazard area and that no 
member of the public is present within an arc segment toxic hazard area 
during preflight fueling, launch countdown, and immediate postflight 
operations at the launch site.
    (iii) A launch operator must establish wind constraints to ensure 
that any winds present at the time of flight will transport any toxicant 
into an arc segment toxic hazard area and away from any populated area. 
For each arc segment toxic hazard area, the wind constraints must 
consist of a range of downwind bearings that are within the arc segment 
toxic hazard area and that provide a safety buffer, in both the 
clockwise and counterclockwise directions, that accounts for any 
uncertainty in the spatial and temporal variations of the transport 
winds. When determining the wind uncertainty, a launch operator must 
account for the variance of the mean wind directions derived from 
measurements of the winds through the first 6000 feet in altitude at the 
launch point. Each clockwise and counterclockwise safety buffer must be 
no less than 20 degrees of arc width within the arc segment toxic hazard 
area. A launch operator must ensure that the wind conditions at the time 
of flight satisfy the wind constraints. To accomplish this, a launch 
operator must monitor the launch site vertical profile of winds from the 
altitude of the launch point to no less than 6,000 feet above ground 
level. The launch operator must proceed with a launch only if all wind 
vectors within this vertical range satisfy the wind constraints. A 
launch operator must develop wind constraint flight commit criteria and 
implementation provisions as part of the launch operator's flight safety 
plan and its hazard area surveillance and clearance plan developed 
according to Sec. Sec. 417.111(b) and 417.111(j), respectively.
    (iv) A launch operator may reduce the radius of the circular toxic 
hazard area determined in accordance with paragraph (c)(3) of this 
section by imposing operational meteorological restrictions on specific 
parameters that mitigate potential toxic downwind concentrations levels 
at any potentially affected populated area to levels below the toxic 
concentration threshold of each toxicant in question. The launch 
operator must establish meteorological constraints to ensure that flight 
will be allowed to occur only if the specific meteorological conditions 
that would reduce the toxic hazard area exist and will continue to exist 
throughout the flight.
    (d) Statistical toxic risk management for flight. If a launch that 
involves the use of a toxic propellant does not satisfy the containment 
requirements of paragraph (c) of this section, the launch operator must 
use statistical toxic risk management to protect public safety. For each 
such case, a launch operator must perform a toxic risk assessment and 
develop launch commit criteria that protect the public from unacceptable 
risk due to planned and potential toxic release. A launch operator must 
ensure that the resultant toxic risk meets the collective and individual 
risk criteria requirements contained in Sec. 417.107(b). A launch 
operator's toxic risk assessment must account for the following:
    (1) All credible vehicle failure and non-failure modes, along with 
the consequent release and combustion of propellants and other vehicle 
combustible materials.
    (2) All vehicle failure rates.
    (3) The effect of positive or negative buoyancy on the rise or 
descent of each released toxicant.
    (4) The influence of atmospheric physics on the transport and 
diffusion of each toxicant.
    (5) Meteorological conditions at the time of launch.
    (6) Population density, location, susceptibility (health categories) 
and sheltering for all populations within each potential toxic hazard 
area.
    (7) Exposure duration and toxic propellant concentration or dosage 
that would result in casualty for all populations.
    (e) Flight toxic release hazard analysis products. The products of a 
launch operator's toxic release hazard analysis for launch vehicle 
flight to be filed in accordance with Sec. 417.203(e) must include the 
following:
    (1) For each launch, a listing of all propellants used on all launch 
vehicle components and any payloads.
    (2) The chemical composition of each toxic propellant and all toxic 
combustion products.
    (3) The quantities of each toxic propellant and all toxic combustion 
products involved in the launch.
    (4) For each toxic propellant and combustion product, identification 
of the toxic concentration threshold used in the toxic risk analysis and 
a description of how the toxic concentration threshold was determined if 
other than specified in table I417.2.
    (5) When using the toxic containment approach of paragraph (c) of 
this section:
    (i) The hazard distance for each toxic propellant and combustion 
product and a description of how it was determined.
    (ii) A graphic depiction of the toxic hazard area or areas.

[[Page 791]]

    (iii) A listing of any wind or other constraints on flight, and any 
plans for evacuation.
    (iv) A description of how the launch operator determines real-time 
wind direction in relation to the launch site and any populated area and 
any other meteorological condition in order to implement constraints on 
flight or to implement evacuation plans.
    (6) When using the statistical toxic risk management approach of 
paragraph (d) of this section:
    (i) A description of the launch operator's toxic risk management 
process, including an explanation of how the launch operator ensures 
that any toxic risk from launch meets the toxic risk criteria of Sec. 
417.107(b).
    (ii) A listing of all models used.
    (iii) A listing of all flight commit criteria that protect the 
public from unacceptable risk due to planned and potential toxic 
release.
    (iv) A description of how the launch operator measures and displays 
real-time meteorological conditions in order to determine whether 
conditions at the time of flight are within the envelope of those used 
by the launch operator for toxic risk assessment and to develop flight 
commit criteria, or for use in any real-time physics models used to 
ensure compliance with the toxic flight commit criteria.

       I417.7 Toxic release hazard analysis for launch processing

    (a) General. A launch operator must perform a toxic release hazard 
analysis to determine potential public hazards from toxic releases that 
will occur during normal launch processing and that will occur in the 
event of a mishap during launch processing. This section implements the 
ground safety requirements of Sec. 417.407(g). A launch operator must 
use the results of the toxic release hazard analysis to establish hazard 
controls for protecting the public. A launch operator must include the 
toxic release hazard analysis results in the ground safety plan as 
required by Sec. 417.111(c).
    (b) Process hazards analysis. A launch operator must perform an 
analysis on all processes to identify toxic hazards and determine the 
potential for release of a toxic propellant. The analysis must account 
for the complexity of the process and must identify and evaluate the 
hazards and each hazard control involved in the process. An analysis 
that complies with 29 CFR 1910.119(e) satisfies paragraphs (b)(1) and 
(b)(2) of this section. A launch operator's process hazards analysis 
must include the following:
    (1) Identify and evaluate each hazard of a process involving a toxic 
propellant using an analysis method, such as a failure mode and effects 
analysis or fault tree analysis.
    (2) Describe:
    (i) Each toxic hazard associated with the process and the potential 
for release of toxic propellants;
    (ii) Each mishap or incident experienced which has a potential for 
catastrophic consequences;
    (iii) Each engineering and administrative control applicable to each 
hazard and their interrelationships, such as application of detection 
methodologies to provide early warning of releases and evacuation of 
toxic hazard areas prior to conducting an operation that involves a 
toxicant;
    (iv) Consequences of failure of engineering and administrative 
controls;
    (v) Location of the source of the release;
    (vi) All human factors;
    (vii) Each opportunity for equipment malfunction or human error that 
can cause an accidental release;
    (viii) Each safeguard used or needed to control each hazard or 
prevent equipment malfunctions or human error;
    (ix) Each step or procedure needed to detect or monitor releases; 
and
    (x) A qualitative evaluation of a range of the possible safety and 
health effects of failure of controls.
    (3) The process hazards analysis must be updated for each launch. 
The launch operator must conduct a review of all the hazards associated 
with each process involving a toxic propellant for launch processing. 
The review must include inspection of equipment to determine whether the 
process is designed, fabricated, maintained, and operated according to 
the current process hazards analysis. A launch operator must revise a 
process hazards analysis to reflect changes in processes, types of toxic 
propellants stored or handled, or other aspects of a source of a 
potential toxic release that can affect the results of overall toxic 
release hazard analysis.
    (4) The personnel who perform a process hazard analysis must possess 
expertise in engineering and process operations, and at least one person 
must have experience and knowledge specific to the process being 
evaluated. At least one person must be knowledgeable in the specific 
process hazard analysis methodology being used.
    (5) A launch operator must resolve all recommendations resulting 
from a process hazards analysis in a timely manner prior to launch 
processing and the resolution must be documented. The documentation must 
identify each corrective action and include a written schedule of when 
any such actions are to be completed.
    (c) Evaluating toxic hazards of launch processing. A launch operator 
must protect the public from each potential toxic hazard identified by 
the process hazards analysis required by paragraph (b) of this section, 
the exclusion requirements of section I417.3(b), the containment 
requirements of paragraph

[[Page 792]]

(d) of this section, or the statistical risk management requirements of 
paragraph (l) of this section, to prevent any casualty that could arise 
out of exposure to any toxic release.
    (d) Toxic containment for launch processing. A launch operator's 
toxic release hazard analysis must determine a toxic hazard area 
surrounding the potential release site for each toxic propellant based 
on the amount and toxicity of the propellant and the meteorological 
conditions involved. A launch operator must determine whether there are 
populated areas located within a toxic hazard area that satisfy 
paragraph (h) of this section. If necessary to achieve toxic 
containment, a launch operator must evacuate the public in order to 
satisfy paragraph (i) of this section or employ meteorological 
constraints that satisfy paragraph (j) of this section. A launch 
operator, in determining a toxic hazard area, must first perform a 
worst-case release scenario analysis that satisfies paragraph (e) of 
this section or a worst-case alternative release scenario analysis that 
satisfies paragraph (f) of this section for each process that involves a 
toxic propellant. The launch operator must then determine a toxic hazard 
distance for each process that satisfies paragraph (g) of this section.
    (e) Worst-case release scenario analysis. A launch operator's worst-
case release scenario analysis must account for the following:
    (1) Determination of worst-case release quantity. A launch operator 
must determine the worst-case release quantity of a toxic propellant by 
selecting the greater of the following:
    (i) For substances in a vessel, the greatest amount held in a single 
vessel, accounting for administrative controls that limit the maximum 
quantity; or
    (ii) For toxic propellants in pipes, the greatest amount in a pipe, 
accounting for administrative controls that limit the maximum quantity.
    (2) Worst-case release scenario for toxic liquids. A launch operator 
must determine the worst-case release scenario for a toxic liquid 
propellant as follows:
    (i) A launch operator must assume that for toxic propellants that 
are normally liquids at ambient temperature, the quantity in the vessel 
or pipe, as determined in paragraph (e)(1) of this section, is spilled 
instantaneously to form a liquid pool.
    (ii) The launch operator must determine surface area of the pool by 
assuming that the liquid spreads to one centimeter deep unless passive 
mitigation systems are in place that serve to contain the spill and 
limit the surface area. Where passive mitigation is in place, the launch 
operator must use the surface area of the contained liquid to calculate 
the volatilization rate.
    (iii) If the release occurs on a surface that is not paved or 
smooth, the launch operator may account for actual surface 
characteristics.
    (iv) The volatilization rate must account for the highest daily 
maximum temperature occurring in the past three years, the temperature 
of the substance in the vessel, and the concentration of the toxic 
propellants if the liquid spilled is a mixture or solution.
    (v) The launch operator must determine rate of release to the air 
from the volatilization rate of the liquid pool. A launch operator must 
use either the methodology provided in the Risk Management Plan (RMP) 
Offsite Consequence Analysis Guidance, dated April 1999, available at 
http:/www.epa.gov/swercepp/ap-ocgu.htm, or an air dispersion modeling 
technique that satisfies paragraph (g) of this section.
    (3) Worst-case release scenario for toxic gases. A launch operator 
must determine the worst-case release scenario for a toxic gas as 
follows:
    (i) For toxic propellants that are normally gases at ambient 
temperature and handled as a gas or as a liquid under pressure, the 
launch operator must assume that the quantity in the vessel, or pipe, as 
determined in paragraph (e)(1) of this section, is released as a gas 
over 10 minutes. The launch operator must assume a release rate that is 
the total quantity divided by 10 unless passive mitigation systems are 
in place.
    (ii) For gases handled as refrigerated liquids at ambient pressure, 
if the released toxic propellant is not contained by passive mitigation 
systems or if the contained pool would have a depth of 1 cm or less, the 
launch operator must assume that the toxic propellant is released as a 
gas in 10 minutes.
    (iii) For gases handled as refrigerated liquids at ambient pressure, 
if the released toxic propellant is contained by passive mitigation 
systems in a pool with a depth greater than 1 cm, the launch operator 
must assume that the quantity in the vessel or pipe, as defined in 
paragraph (e)(1) of this section, is spilled instantaneously to form a 
liquid pool. The launch operator must calculate the volatilization rate 
at the boiling point of the toxic propellant and at the conditions 
defined in paragraph (e)(2) of this section.
    (4) Consideration of passive mitigation. The launch operator must 
account for passive mitigation systems in the analysis of a worst case 
release scenario if the passive mitigation system is capable of 
withstanding the release event triggering the scenario and would 
function as intended.
    (5) Additional factors in selecting a worst-case scenario. A launch 
operator's worst-case release scenario for a toxic propellant must 
account for each factor that would result in a greater toxic hazard 
distance, such as a smaller quantity of the toxic propellant than

[[Page 793]]

required by paragraph (e)(1) of this section, that is handled at a 
higher process temperature or pressure.
    (f) Worst-case alternative release scenario analysis. A launch 
operator's worst-case alternative release scenario analysis must account 
for the following:
    (1) The worst-case release scenario for each toxic propellant and 
for each toxic propellant handling process;
    (2) Each release event that is more likely to occur than the worst-
case release scenario that is determined in paragraph (e) of this 
section;
    (3) Each release scenario that exceeds a toxic concentration 
threshold at a distance that reaches the general public;
    (4) Each potential transfer hose release due to splits or sudden 
hose uncoupling;
    (5) Each potential process piping release from failures at flanges, 
joints, welds, valves, valve seals, and drain bleeds;
    (6) Each potential process vessel or pump release due to cracks, 
seal failure, or drain, bleed, or plug failure;
    (7) Each vessel overfilling and spill, or over pressurization and 
venting through relief valves or rupture disks;
    (8) Shipping container mishandling and breakage or puncturing 
leading to a spill;
    (9) Mishandling or dropping flight or ground hardware that contains 
toxic commodities;
    (10) Each active and passive mitigation system provided they are 
capable of withstanding the event that triggered the release and would 
still be functional;
    (11) History of each accident experienced by the launch operator 
involving the release of a toxic propellant; and
    (12) Each failure scenario.
    (g) Toxic hazard distances for launch processing. For each process 
involving a toxic propellant, a launch operator must perform an air 
dispersion analysis to determine the hazard distance for the worst-case 
release scenario or the worst-case alternative release scenario as 
determined under paragraphs (e) and (f) of this section. A launch 
operator must use either the methodology provided in the RMP Offsite 
Consequence Analysis Guidance, dated April 1999, or an air dispersion 
modeling technique that is applicable to the proposed launch. A launch 
operator's air dispersion modeling technique must account for the 
following analysis parameters:
    (1) Toxic concentration thresholds. A launch operator must use the 
toxic concentration thresholds defined by section I417.3(c).
    (2) Wind speed and atmospheric stability class. A launch operator, 
for the worst-case release analysis, must use a wind speed of 1.5 meters 
per second and atmospheric stability class F. If the launch operator 
demonstrates that local meteorological data applicable to the source of 
a toxic release show a higher wind minimum wind speed or less stable 
atmosphere during the three previous years, the launch operator may use 
these minimums. The launch operator, for analysis of the worst-case 
alternative scenario, must use statistical meteorological conditions for 
the location of the source.
    (3) Ambient temperature and humidity. For a worst-case release 
scenario analysis of a toxic propellant, the launch operator must use 
the highest daily maximum temperature from the last three years and 
average humidity for the site, based on temperature and humidity data 
gathered at the source location or at a local meteorological station. 
For analysis of a worst-case alternative release scenario, the launch 
operator must use typical temperature and humidity data gathered at the 
source location or at a local meteorological station.
    (4) Height of release. The launch operator must analyze the worst-
case release of a toxic propellant assuming a ground level release. For 
a worst-case alternative scenario analysis of a toxic propellant, the 
release scenario may determine release height.
    (5) Surface roughness. The launch operator must use either an urban 
or rural topography, as appropriate. Urban means that there are many 
obstacles in the immediate area; obstacles include buildings or trees. 
Rural means there are no buildings in the immediate area and the terrain 
is generally flat and unobstructed.
    (6) Dense or neutrally buoyant gases. Models or tables used for 
dispersion analysis of a toxic propellant must account for gas density.
    (7) Temperature of release substance. For a worst-case release 
scenario, the launch operator must account for the release of liquids 
other than gases liquefied by refrigeration at the highest daily maximum 
temperature, based on data for the previous three years appropriate to 
the source of the potential toxic release, or at process temperature, 
whichever is higher. For a worst-case alternative scenario, the launch 
operator may consider toxic propellants released at a process or ambient 
temperature that is appropriate for the scenario.
    (h) Toxic hazard areas for launch processing. A launch operator, 
having determined the toxic hazard distance for the toxic concentration 
threshold for each toxic propellant involved in a process using either a 
worst-case release scenario or a worst-case alternative release 
scenario, must determine the toxic hazard area for the process as a 
circle centered at the potential release point with a radius equal to 
the greatest toxic hazard distance for the toxic propellants involved in 
the process. A launch operator does not have to satisfy this section if:
    (1) There are no populated areas contained or partially contained 
within the toxic hazard area; and

[[Page 794]]

    (2) There is no member of the public present within the toxic hazard 
area during the process.
    (i) Evacuation of populated areas within a toxic hazard area. For a 
process where there is a populated area that is contained or partially 
contained within the toxic hazard area, the launch processing operation 
does not have to satisfy this section if the launch operator evacuates 
the public from the populated area and ensures that no member of the 
public is present within the toxic hazard area during the operation. A 
launch operator must coordinate notification and evacuation procedures 
with the Local Emergency Planning Committee (LEPC) and ensure that 
notification and evacuation occurs according to its launch plans, 
including the launch operator's ground safety plan, hazard area 
surveillance and clearance plan, accident investigation plan, and local 
agreements and public coordination plan.
    (j) Meteorological constraints for launch processing. For a launch 
processing operation with the potential for a toxic release where there 
is a populated area that is contained or partially contained within the 
toxic hazard area and that will not be evacuated as required by 
paragraph (i) of this section, the operation is exempt from further 
requirements in this section if the launch operator constrains the 
process to favorable wind conditions or during times when atmospheric 
conditions result in reduced toxic hazard distances such that the 
potentially affected populated area is outside the toxic hazard area. A 
launch operator must employ wind and other meteorological constraints 
that satisfy the following:
    (1) A launch operator must limit a launch processing operation to 
times during which prevailing winds will transport a toxic release away 
from populated areas that would otherwise be at risk. If the mean wind 
speed during the operation is equal to or greater than four knots, the 
launch operator must re-define the toxic hazard area by reducing the 
circular toxic hazard area as determined in paragraph (h) of this 
section to one or more arc segments that do not contain a populated 
area. Each arc segment toxic hazard area must have the same radius as 
the circular toxic hazard area and must be defined by a range of 
downwind bearings. If the mean wind speed during the operation is less 
than four knots, the toxic hazard area for the operation must be the 
full 360-degree toxic hazard area as defined by paragraph (h) of this 
section. The total arc width of an arc segment hazard area for launch 
processing must be greater than or equal to 30 degrees. If the launch 
operator determines the standard deviation of the measured wind 
direction, the total arc width of an arc segment hazard area must 
include all azimuths within the mean measured wind direction plus three 
sigma and the mean measured wind direction minus three sigma; otherwise, 
the following apply for the conditions defined by the Pasquil-Gifford 
meteorological stability classes:
    (i) For stable classes D-F, if the mean wind speed is less than 10 
knots, the total arc width of the arc segment toxic hazard area must be 
no less than 90 degrees;
    (ii) For stable classes D-F, if the mean wind speed is greater than 
or equal to 10 knots, the total arc width of the arc segment toxic 
hazard area must be no less than 45 degrees;
    (iii) For neutral class C, the total arc width of the arc segment 
toxic hazard area must be no less than 60 degrees;
    (iv) For slightly unstable class B, the total arc width of the arc 
segment toxic hazard area must be no less than 105 degrees; and
    (v) For mostly unstable class A, the total arc width of the arc 
segment toxic hazard area must be no less than 150 degrees.
    (2) The launch operator must ensure that there are no populated 
areas within an arc segment toxic hazard area and that no member of the 
public is present within an arc segment toxic hazard area during the 
process as defined by paragraph (i) of this section.
    (3) A launch operator must establish wind constraints to ensure that 
winds present at the time of an operation will transport toxicants into 
an arc segment toxic hazard area and away from populated areas. For each 
arc segment toxic hazard area, the wind constraints must consist of a 
range of downwind bearings that are within the arc segment toxic hazard 
area and that provide a safety buffer, in both the clockwise and 
counterclockwise directions, that accounts for uncertainty in the 
spatial and temporal variations of the transport winds.
    (4) A launch operator may reduce the radius of the circular toxic 
hazard area as determined under paragraph (h) of this section by 
imposing operational meteorological restrictions on specific parameters 
that mitigate potential toxic downwind concentrations levels at a 
potentially affected populated area to levels below the toxic 
concentration threshold of the toxicant in question. The launch operator 
must establish meteorological constraints to ensure that the operation 
will be allowed to occur only if the specific meteorological conditions 
that would reduce the toxic hazard area exist and will continue to exist 
throughout the operation, or the operation will be terminated.
    (k) Implementation of meteorological constraints. A launch operator 
must use one or more of the following approaches to determine wind 
direction or other meteorological conditions in order to establish 
constraints on a launch processing operation or evacuate the populated 
area in a potential toxic hazard area:

[[Page 795]]

    (1) The launch operator must ensure that the wind conditions at the 
time of the process comply with the wind constraints used to define each 
arc segment toxic hazard area. The launch operator must monitor the 
vertical profile of winds at the potential toxic release site from 
ground level to an altitude of 10 meters or the maximum height above 
ground of the potential release, whichever is larger. The launch 
operator may proceed with a launch processing operation only if wind 
vectors meet the wind constraints used to define each arc segment toxic 
hazard area.
    (2) A launch operator must monitor the specific meteorological 
parameters that affect toxic downwind concentrations at a potential 
toxic release site for a process and for the sphere of influence out to 
each populated area within the potential toxic hazard area as defined by 
paragraph (h) of this section. The launch operator must monitor spatial 
variations in the wind field that could affect the transport of toxic 
material between the potential release site and populated areas. The 
launch operator must acquire real-time meteorological data from sites 
between the potential release site and each populated area sufficient to 
demonstrate that the toxic hazard area, when adjusted to the spatial 
wind field variations, excludes populated areas. Meteorological 
parameters that affect toxic downwind concentrations from the potential 
release site and covering the sphere of influence out to the populated 
areas must fall within the conditions as determined in paragraph (j)(4) 
of this section. A launch operator must use one of the following methods 
to determine the meteorological conditions that will constrain a launch 
processing operation:
    (i) A launch operator may employ real-time air dispersion models to 
determine the toxic hazard distance for the toxic concentration 
threshold and proximity of a toxicant to populated areas. A launch 
operator, when employing this method, must proceed with a launch 
processing operation only if real-time modeling of the potential release 
demonstrates that the toxic hazard distance would not reach populated 
areas. The launch operator's process for carrying out this method must 
include the use of an air dispersion modeling technique that complies 
with paragraph (g) of this section and providing real-time 
meteorological data for the sphere of influence around a potential toxic 
release site as input to the air dispersion model. The launch operator's 
process must also include a review of the meteorological conditions to 
identify changing conditions that could affect the toxic hazard distance 
for a toxic concentration threshold prior to proceeding with the 
operation.
    (ii) A launch operator may use air dispersion modeling techniques to 
define the meteorological conditions that, when present, would prevent a 
toxic hazard distance for a toxic concentration threshold from reaching 
populated areas. The launch operator, when employing this method, must 
constrain the associated launch processing operation to be conducted 
only when the prescribed meteorological conditions exist. A launch 
operator's air dispersion modeling technique must comply with paragraph 
(g) of this section.
    (l) Statistical toxic risk management for launch processing. The 
launch operator must use statistical toxic risk management to protect 
public safety if a process that involves the use of a toxic propellant 
does not satisfy the containment requirements of paragraph (d) of this 
section. A launch operator, for each such case, must perform a toxic 
risk assessment and develop criteria that protect the public from risks 
due to planned and potential toxic release. A launch operator must 
ensure that the resultant toxic risk meets the collective and individual 
risk criteria requirements defined in Sec. 417.107(b). A launch 
operator's toxic risk assessment must account for the following:
    (1) All credible equipment failure and non-failure modes, along with 
the consequent release and combustion of toxic propellants;
    (2) Equipment failure rates;
    (3) The effect of positive or negative buoyancy on the rise or 
descent of the released toxic propellants;
    (4) The influence of atmospheric physics on the transport and 
diffusion of toxic propellants released;
    (5) Meteorological conditions at the time of the process;
    (6) Population density, location, susceptibility (health categories) 
and sheltering for populations within each potential toxic hazard area; 
and
    (7) Exposure duration and toxic propellant concentration or dosage 
that would result in casualty for populations.
    (m) Launch processing toxic release hazard analysis products. The 
products of a launch operator's toxic release hazards analysis for 
launch processing must include the following:
    (1) For each worst-case release scenario, a description of the 
vessel or pipeline and toxic propellant selected as the worst case for 
each process, assumptions and parameters used, and the rationale for 
selection of that scenario. Assumptions must include use of 
administrative controls and passive mitigation that were assumed to 
limit the quantity that could be released. The description must include 
the anticipated effect of the controls and mitigation on the release 
quantity and rate;
    (2) For each worst-case alternative release scenario, a description 
of the scenario identified for each process, assumptions and parameters 
used, and the rationale for the selection of that scenario. Assumptions 
must include use of administrative controls and

[[Page 796]]

passive mitigation that were assumed to limit the quantity that could be 
released. The description must include the anticipated effect of the 
controls and mitigation on the release quantity and rate;
    (3) Estimated quantity released, release rate, and duration of 
release for each worst-case scenario and worst-case alternative scenario 
for each process;
    (4) A description of the methodology used to determine the toxic 
hazard distance for each toxic concentration threshold;
    (5) Data used to estimate off-site population receptors potentially 
affected; and
    (6) The following data for each worst-case scenario and worst-case 
alternative release scenario:
    (i) Chemical name;
    (ii) Physical state;
    (iii) Basis of results (provide model name if used, or other 
methodology);
    (iv) Scenario (explosion, fire, toxic gas release, or liquid spill 
and vaporization);
    (v) Quantity released in pounds;
    (vi) Release rate;
    (vii) Release duration;
    (viii) Wind speed and atmospheric stability class;
    (ix) Topography;
    (x) Toxic hazard distance;
    (xi) All members of the public within the toxic hazard distance;
    (xii) Any passive mitigation considered; and
    (xiii) Active mitigation considered (worst-case alternative release 
scenario only).



Sec. Appendix J to Part 417--Ground Safety Analysis Report

                             J417.1 General

    (a) This appendix provides the content and format requirements for a 
ground safety analysis report. A launch operator must perform a ground 
safety analysis as required by subpart E of part 417 and document the 
analysis in a ground safety analysis report that satisfies this 
appendix, as required by Sec. 417.402(d).
    (b) A ground safety analysis report must contain hazard analyses 
that describe each hazard control, and describe a launch operator's 
hardware, software, and operations so that the FAA can assess the 
adequacy of the hazard analysis. A launch operator must document each 
hazard analysis on hazard analysis forms as required by Sec. J417.3(d) 
and file each system and operation descriptions as a separate volume of 
the report.
    (c) A ground safety analysis report must include a table of contents 
and provide definitions of any acronyms and unique terms used in the 
report.
    (d) A launch operator's ground safety analysis report may reference 
other documents filed with the FAA that contain the information required 
by this appendix.

              J417.3 Ground safety analysis report chapters

    (a) Introduction. A ground safety analysis report must include an 
introductory chapter that describes all administrative matters, such as 
purpose, scope, safety certification of personnel who performed any part 
of the analysis, and each special interest issue, such as a high-risk 
situation or potential non-compliance with any applicable FAA 
requirement.
    (b) Launch vehicle and operations summary. A ground safety analysis 
report must include a chapter that provides general safety information 
about the vehicle and operations, including the payload and flight 
termination system. This chapter must serve as an executive summary of 
detailed information contained within the report.
    (c) Systems, subsystems, and operations information. A ground safety 
analysis report must include a chapter that provides detailed safety 
information about each launch vehicle system, subsystem and operation 
and each associated interface. The data in this chapter must include the 
following:
    (1) Introduction. A launch operator's ground safety analysis report 
must contain an introduction to its systems, subsystems, and operations 
information that serves as a roadmap and checklist to ensure all 
applicable items are covered. All flight and ground hardware must be 
identified with a reference to where the items are discussed in the 
document. All interfacing hardware and operations must be identified 
with a reference to where the items are discussed in the document. The 
introduction must identify interfaces between systems and operations and 
the boundaries that describe a system or operation.
    (2) Subsystem description. For each hardware system identified in a 
ground safety analysis report as falling under one of the hazardous 
systems listed in paragraphs (c)(3), (c)(4) and (c)(5) of this section, 
the report must identify each of the hardware system's subsystems. A 
ground safety analysis report must describe each hazardous subsystem 
using the following format:
    (i) General description including nomenclature, function, and a 
pictorial overview;
    (ii) Technical operating description including text and figures 
describing how a subsystem works and any safety features and fault 
tolerance levels;
    (iii) Each safety critical parameter, including those that 
demonstrate established system safety approaches that are not evident in 
the technical operating description or figures, such as factors of 
safety for structures and pressure vessels;
    (iv) Each major component, including any part of a subsystem that 
must be technically described in order to understand the subsystem 
hazards. For a complex subsystem

[[Page 797]]

such as a propulsion subsystem, the ground safety analysis report must 
provide a majority of the detail of the subsystem including any figures 
at the major component level such as tanks, engines and vents. The 
presentation of figures in the report must progress in detail from broad 
overviews to narrowly focused figures. Each figure must have supporting 
text that explains what the figure is intended to illustrate;
    (v) Ground operations and interfaces including interfaces with other 
launch vehicle and launch site subsystems. A ground safety analysis 
report must identify a launch operator's and launch site operator's 
hazard controls for all operations that are potentially hazardous to the 
public. The report must contain facility figures that illustrate where 
hazardous operations take place and must identify all areas where 
controlled access is employed as a hazard control; and
    (vi) Hazard analysis summary of subsystem hazards that identifies 
each specific hazard and the threat to public safety. This summary must 
provide cross-references to the hazard analysis form required by 
paragraph (d) of this section and indicate the nature of the control, 
such as design margin, fault tolerance, or procedure.
    (3) Flight hardware. For each stage of a launch vehicle, a ground 
safety analysis report must identify all flight hardware systems, using 
the following sectional format:
    (i) Structural and mechanical systems;
    (ii) Ordnance systems;
    (iii) Propulsion and pressure systems;
    (iv) Electrical and non-ionizing radiation systems; and
    (v) Ionizing radiation sources and systems.
    (4) Ground hardware. A ground safety analysis report must identify 
the launch operator's and launch site operator's ground hardware, 
including launch site and ground support equipment, that contains 
hazardous energy or materials, or that can affect flight hardware that 
contains hazardous energy or materials. A launch operator must identify 
all ground hardware by using the following sectional format:
    (i) Structural and mechanical ground support and checkout systems;
    (ii) Ordnance ground support and checkout systems;
    (iii) Propulsion and pressure ground support and checkout systems;
    (iv) Electrical and non-ionizing radiation ground support and 
checkout systems;
    (v) Ionizing radiation ground support and checkout systems;
    (vi) Hazardous materials; and
    (vii) Support and checkout systems and any other safety equipment 
used to monitor or control a potential hazard not otherwise addressed 
above.
    (5) Flight safety system. A ground safety analysis report must 
describe each hazard of inadvertent actuation of the launch operator's 
flight safety system, potential damage to the flight safety system 
during ground operations, and each hazard control that the launch 
operator will implement.
    (6) Hazardous materials. A ground safety analysis report must:
    (i) Identify each hazardous material used in all the launch 
operator's flight and ground systems, including the quantity and 
location of each material;
    (ii) Contain a summary of the launch operator's approach for 
protecting the public from toxic plumes, including the toxic 
concentration thresholds used to control public exposure and a 
description of any related local agreements;
    (iii) Describe any toxic plume model used to protect public safety 
and contain any algorithms used by the model; and
    (iv) Include the products of the launch operator's toxic release 
hazard analysis for launch processing as defined by section I417.7(m) of 
appendix I of this part for each launch that involves the use of any 
toxic propellants.
    (d) Hazard analysis. A ground safety analysis report must include a 
chapter containing a hazard analysis of the launch vehicle and launch 
vehicle processing and interfaces. The hazard analysis must identify 
each hazard and all hazard controls that the launch operator will 
implement. A ground safety analysis report must contain the results of 
the launch operator's hazard analysis of each system, subsystem, and 
operation using a standardized format that includes the items listed on 
the example hazard analysis form provided in figure J417-1 and that 
satisfies the following:
    (1) Introduction. A ground safety analysis report must contain an 
introduction that serves as a roadmap and checklist to the launch 
operator's hazard analysis forms. A launch operator must identify all 
flight hardware, ground hardware, interfacing hardware, and operations 
with a reference to where the items are discussed in the ground safety 
analysis report. The introduction must explain how a launch operator 
presents its hazard analysis in terms of hazard identification numbers 
as identified in figure J417-1.
    (2) Analysis. A launch operator may present each hazard on a 
separate form or consolidate hazards of a specific system, subsystem, 
component, or operation onto a single form. There must be at least one 
form for each hazardous subsystem and each hazardous subsystem 
operation. A launch operator must state which approach it has chosen in 
the introduction to the hazard analysis section. A launch operator must 
track each identified hazard control separately.
    (3) Numbering. A launch operator must number each hazard analysis 
form with the applicable system or subsystem identified. A launch 
operator must number each line item

[[Page 798]]

on a hazard analysis form with numbers and letters provided for multiple 
entries against an individual line item. A line item consists of a 
hardware or operation description and a hazard.
    (4) Hazard analysis data. A hazard analysis form must contain or 
reference all information necessary to understand the relationship of a 
system, subsystem, component, or operation with a hazard cause, control, 
and verification.
    (e) Hazard analysis supporting data. A ground safety analysis report 
must include data that supports the hazard analysis. If such data does 
not fit onto the hazard analysis form, a launch operator must provide 
the data in a supporting data chapter. This chapter must contain a table 
of contents and may reference other documents that contain supporting 
data.

                        PARTS 418	419 [RESERVED]



PART 420_LICENSE TO OPERATE A LAUNCH SITE--Table of Contents




                            Subpart A_General

Sec.
420.1 Scope.
420.3 Applicability.
420.5 Definitions.
420.6-420.14 [Reserved]

 Subpart B_Criteria and Information Requirements for Obtaining a License

420.15 Information requirements.
420.17 Bases for issuance of a license.
420.19 Launch site location review--general.
420.21 Launch site location review--launch site boundary.
420.23 Launch site location review--flight corridor.
420.25 Launch site location review--risk analysis.
420.27 Launch site location review--information requirements.
420.29 Launch site location review for unproven launch vehicles.
420.30 Launch site location review for permitted launch vehicles.
420.31 Agreements.
420.32-420.40 [Reserved]

                 Subpart C_License Terms and Conditions

420.41 License to operate a launch site--general.
420.43 Duration.
420.45 Transfer of a license to operate a launch site.
420.47 License modification.
420.49 Compliance monitoring.

                Subpart D_Responsibilities of a Licensee

420.51 Responsibilities--general.
420.53 Control of public access.
420.55 Scheduling of launch site operations.
420.57 Notifications.
420.59 Launch site accident investigation plan.
420.61 Records.
420.63 Explosive siting.
420.65 Handling of solid propellants.
420.67 Storage or handling of liquid propellants.
420.69 Solid and liquid propellants located together.
420.71 Lightning protection.

Appendix A to Part 420--Method for Defining a Flight Corridor
Appendix B to Part 420--Method for Defining a Flight Corridor
Appendix C to Part 420--Risk Analysis
Appendix D to Part 420--Impact Dispersion Areas and Casualty Expectancy 
          Estimate for an Unguided Suborbital Launch Vehicle
Appendix E to Part 420--Tables for Explosive Site Plan

    Authority: 49 U.S.C. 70101-70121.

    Source: Docket No. FAA-1999-5833, 65 FR 62861, Oct. 19, 2000, unless 
otherwise noted.



                            Subpart A_General



Sec. 420.1  Scope.

    This part prescribes the information and demonstrations that must be 
provided to the FAA as part of a license application, the bases for 
license approval, license terms and conditions, and post-licensing 
requirements with which a licensee shall comply to remain licensed. 
Requirements for preparing a license application are contained in part 
413 of this subchapter.



Sec. 420.3  Applicability.

    This part applies to any person seeking a license to operate a 
launch site or to a person licensed under this part. A person operating 
a site that only supports amateur rocket activities, as defined in 14 
CFR 401.5, does not need a license under this part to operate the site.



Sec. 420.5  Definitions.

    For the purpose of this part.
    Ballistic coefficient means the weight of an object divided by the 
quantity product of the coefficient of drag of the object and the area 
of the object.

[[Page 799]]

    Compatibility means the chemical property of materials that may be 
located together without increasing the probability of an accident or, 
for a given quantity, the magnitude of the effects of such an accident.
    Debris dispersion radius (Dmax) means the estimated 
maximum distance from a launch point that debris travels given a worst-
case launch vehicle failure and flight termination early in flight. For 
an expendable launch vehicle, flight termination is assumed to occur at 
10 seconds into flight.
    Downrange area means a portion of a flight corridor beginning where 
a launch area ends and ending 5,000 nautical miles from the launch 
point, or where the IIP leaves the surface of the Earth, whichever is 
shorter, for an orbital launch vehicle; and ending with an impact 
dispersion area for a guided sub-orbital launch vehicle.
    E,F,G coordinate system means an orthogonal, Earth-fixed, 
geocentric, right-handed system. The origin of the coordinate system is 
at the center of an ellipsoidal Earth model. The E-axis is positive 
directed through the Greenwich meridian. The F-axis is positive directed 
though 90 degrees east longitude. The EF-plane is coincident with the 
ellipsoidal Earth model's equatorial plane. The G-axis is normal to the 
EF-plane and positive directed through the north pole.
    E,N,U coordinate system means an orthogonal, Earth-fixed, 
topocentric, right-handed system. The origin of the coordinate system is 
at a launch point. The E-axis is positive directed east. The N-axis is 
positive directed north. The EN-plane is tangent to an ellipsoidal Earth 
model's surface at the origin and perpendicular to the geodetic 
vertical. The U-axis is normal to the EN-plane and positive directed 
away from the Earth.
    Effective casualty area (Ac) means the aggregate casualty 
area of each piece of debris created by a launch vehicle failure at a 
particular point on its trajectory. The effective casualty area for each 
piece of debris is the area within which 100 percent of the unprotected 
population on the ground are assumed to be a casualty, and outside of 
which 100 percent of the population are assumed not to be a casualty. An 
effective casualty area accounts for the characteristics of the debris 
piece, including its size, the path angle of its trajectory, impact 
explosions, and debris skip, splatter, and bounce. An effective casualty 
area also accounts for the size of a person.
    Explosive means any chemical compound or mechanical mixture that, 
when subjected to heat, impact, friction, detonation or other suitable 
initiation, undergoes a rapid chemical change that releases large 
volumes of highly heated gases that exert pressure in the surrounding 
medium. The term applies to materials that either detonate or 
deflagrate.
    Explosive division means the division within hazard class 1 of an 
explosive as defined in the United Nations Organization classification 
system for transport of dangerous goods, and as determined in accordance 
with 49 CFR part 173, subpart C.
    Explosive equivalent means a measure of the blast effects from 
explosion of a given quantity of material expressed in terms of the 
weight of trinitrotoluene (TNT) that would produce the same blast 
effects when detonated.
    Explosive hazard facility means a facility at a launch site where 
solid propellant, liquid propellant, or other explosives are stored or 
handled.
    Flight azimuth means the initial direction in which a launch vehicle 
flies relative to true north expressed in degrees-decimal-degrees.
    Flight corridor means an area on the Earth's surface estimated to 
contain the hazardous debris from nominal flight of a launch vehicle, 
and non-nominal flight of a launch vehicle assuming a perfectly 
functioning flight termination system or other flight safety system.
    Guided suborbital launch vehicle means a suborbital rocket that 
employs an active guidance system.
    Hazard class means the class of an explosive as defined by the 
United Nations Organization classification system for transport of 
dangerous goods, and as determined in accordance with 49 CFR part 173, 
subpart C.
    Impact dispersion area means an area representing an estimated three 
standard deviation dispersion about a nominal impact point of an 
intermediate or

[[Page 800]]

final stage of a suborbital launch vehicle.
    Impact dispersion factor means a constant used to estimate, using a 
stage apogee, a three standard deviation dispersion about a nominal 
impact point of an intermediate or final stage of a suborbital launch 
vehicle.
    Impact dispersion radius (Ri) means a radius that defines 
an impact dispersion area.
    Impact range means the distance between a launch point and the 
impact point of a suborbital launch vehicle stage.
    Impact range factor means a constant used to estimate, when 
multiplied by a stage apogee, the nominal impact point of an 
intermediate or final stage of a suborbital launch vehicle.
    Instantaneous impact point (IIP) means an impact point, following 
thrust termination of a launch vehicle. IIP may be calculated with or 
without atmospheric drag effects.
    Instantaneous impact point (IIP) range rate means a launch vehicle's 
estimated IIP velocity along the Earth's surface.
    Intraline distance means the minimum distance permitted between any 
two explosive hazard facilities in the ownership, possession or control 
of one launch site customer.
    Launch area means, for a flight corridor defined in accordance with 
appendix A of this part, the portion of a flight corridor from the 
launch point to a point 100 nautical miles in the direction of the 
flight azimuth. For a flight corridor defined in accordance with 
appendix B of this part, a launch area is the portion of a flight 
corridor from the launch point to the enveloping line enclosing the 
outer boundary of the last debris dispersion circle.
    Launch point means a point on the Earth from which the flight of a 
launch vehicle begins, and is defined by its geodetic latitude, 
longitude and height on an ellipsoidal Earth model.
    Launch site accident means an unplanned event occurring during a 
ground activity at a launch site resulting in a fatality or serious 
injury (as defined in 49 CFR 830.2) to any person who is not associated 
with the activity, or any damage estimated to exceed $25,000 to property 
not associated with the activity.
    Net explosive weight (NEW) means the total weight, expressed in 
pounds, of explosive material or explosive equivalency contained in an 
item.
    Nominal means, in reference to launch vehicle performance, 
trajectory, or stage impact point, a launch vehicle flight where all 
launch vehicle aerodynamic parameters are as expected, all vehicle 
internal and external systems perform as planned, and there are no 
external perturbing influences (e.g., winds) other than atmospheric drag 
and gravity.
    Overflight dwell time means the period of time it takes for a launch 
vehicle's IIP to move past a populated area. For a given populated area, 
the overflight dwell time is the time period measured along the nominal 
trajectory IIP ground trace from the time point whose normal with the 
trajectory intersects the most uprange part of the populated area to the 
time point whose normal with the trajectory intersects the most 
downrange part of the populated area.
    Overflight exclusion zone means a portion of a flight corridor which 
must remain clear of the public during the flight of a launch vehicle.
    Populated area means a land area with population.
    Population density means the number of people per unit area in a 
populated area.
    Position data means data referring to the current position of a 
launch vehicle with respect to flight time expressed through the X, Y, Z 
coordinate system.
    Public means people and property that are not involved in supporting 
a licensed or permitted launch, and includes those people and property 
that may be located within the boundary of a launch site, such as 
visitors, any individual providing goods or services not related to 
launch processing or flight, and any other launch operator and its 
personnel.
    Public area means any area outside a hazard area and is an area that 
is not in the possession, ownership or other control of a launch site 
operator or of a launch site customer who possesses, owns or otherwise 
controls that hazard area.

[[Page 801]]

    Public area distance means the minimum distance permitted between a 
public area and an explosive hazard facility.
    Public traffic route distance means the minimum distance permitted 
between a public highway or railroad line and an explosive hazard 
facility.
    Trajectory means the position and velocity components as a function 
of time of a launch vehicle relative to an x, y, z coordinate system, 
expressed in x, y, z, x, y, z.
    Unguided sub-orbital launch vehicle means a sub-orbital rocket that 
does not have a guidance system.
    X, Y, Z coordinate system means an orthogonal, Earth-fixed, 
topocentric, right-handed system. The origin of the coordinate system is 
at a launch point. The x-axis coincides with the initial launch azimuth 
and is positive in the downrange direction. The y-axis is positive to 
the left looking downrange. The xy-plane is tangent to the ellipsoidal 
earth model's surface at the origin and perpendicular to the geodetic 
vertical. The z-axis is normal to the xy-plane and positive directed 
away from the earth.
    [phis]0, [lambda]0, h0 means a latitude, longitude, height system 
where [phis]0 is the geodetic latitude of a launch point, 
[lambda]0 is the east longitude of the launch point, and 
h0 is the height of the launch point above the reference 
ellipsoid. [phis]0 and [lambda]0 are expressed in 
degrees-decimal-degrees.

[Docket No. FAA-1999-5833, 65 FR 62861, Oct. 19, 2000, as amended by 
Amdt. 420-3, 72 FR 17019, Apr. 6, 2007]



Sec. Sec. 420.6-420.14  [Reserved]



 Subpart B_Criteria and Information Requirements for Obtaining a License



Sec. 420.15  Information requirements.

    (a) General--(1) Launch site operator. An applicant shall identify 
the name and address of the applicant, and the name, address, and 
telephone number of any person to whom inquiries and correspondence 
should be directed.
    (2) Launch site. An applicant shall provide the name and location of 
the proposed launch site and include the following information:
    (i) A list of downrange equipment;
    (ii) A description of the layout of the launch site, including 
launch points;
    (iii) The types of launch vehicles to be supported at each launch 
point;
    (iv) The range of launch azimuths planned from each launch point; 
and
    (v) The scheduled operational date.
    (3) Foreign ownership. Identify foreign ownership of the applicant, 
as follows:
    (i) For a sole proprietorship or partnership, all foreign owners or 
partners;
    (ii) For a corporation, any foreign ownership interest of 10 percent 
or more; and
    (iii) For a joint venture, association, or other entity, any foreign 
entities participating in the entity.
    (b) Environmental. An applicant shall provide the FAA with 
information for the FAA to analyze the environmental impacts associated 
with the operation of the proposed launch site. The information provided 
by an applicant must be sufficient to enable the FAA to comply with the 
requirements of the National Environment Policy Act, 42 U.S.C. 4321 et 
seq. (NEPA), the Council on Environmental Quality Regulations for 
Implementing the Procedural Provisions of NEPA, 40 CFR parts 1500-1508, 
and the FAA's Procedures for Considering Environmental Impacts, FAA 
Order 1050.1D. An applicant shall submit environmental information 
concerning a proposed launch site not covered by existing environmental 
documentation, and other factors as determined by the FAA.
    (c) Launch site location. (1) Except as provided by paragraph (c)(2) 
of this section, an applicant shall provide the information necessary to 
demonstrate compliance with Sec. Sec. 420.19-420.29.
    (2) An applicant who is proposing to locate a launch site at an 
existing launch point at a federal launch range is not required to 
comply with paragraph (c)(1) of this section if a launch vehicle of the 
same type and class as proposed for the launch point has been safely 
launched from the launch point.
    (d) Explosive site plan. (1) Except as provided by paragraph (d)(2) 
of this section, an applicant shall submit an explosive site plan that 
complies with Sec. Sec. 420.63, 420.65, 420.67, and 420.69.
    (2) If an applicant plans to operate a launch site located on a 
federal launch range, and if the applicant is required

[[Page 802]]

by the federal launch range to comply with the federal launch range's 
explosive safety requirements, the applicant shall submit the explosive 
site plan submitted to the federal launch range.
    (e) Launch site operations. An applicant shall provide the 
information necessary to demonstrate compliance with the requirements of 
Sec. Sec. 420.53, 420.55, 420.57, 420.59, 420.61, and 420.71.



Sec. 420.17  Bases for issuance of a license.

    (a) The FAA will issue a license under this part when the FAA 
determines that:
    (1) The application provides the information required by Sec. 
420.15;
    (2) The FAA has completed an analysis of the environmental impacts 
associated with the proposed operation of the launch site, in accordance 
with NEPA, 40 CFR parts 1500-1508, and FAA Order 1050.1D;
    (3) The launch site location meets the requirements of Sec. Sec. 
420.19, 420.21, 420.23, 420.25, 420.27, and 420.29;
    (4) The applicant has completed the agreements required by Sec. 
420.31;
    (5) The application demonstrates that the applicant shall satisfy 
the requirements of Sec. Sec. 420.53, 420.55, 420.57, 420.59, 420.61 
and 420.71;
    (6) The explosive site plan meets the criteria of Sec. Sec. 420.63, 
420.65, 420.67 and 420.69; and
    (7) Issuing a license would not jeopardize foreign policy or 
national security interests of the United States.
    (b) The FAA advises an applicant, in writing, of any issue arising 
during an application review that would lead to denial. The applicant 
may respond in writing, submit additional information, or amend its 
license application.



Sec. 420.19  Launch site location review--general.

    (a) To gain approval for a launch site location, an applicant shall 
demonstrate that for each launch point proposed for the launch site, at 
least one type of expendable or reusable launch vehicle can be flown 
from the launch point safely. For purposes of the launch site location 
review:
    (1) A safe launch must possess a risk level estimated, in accordance 
with the requirements of this part, not to exceed an expected average 
number of 0.00003 casualties (Ec) to the collective member of 
the public exposed to hazards from the flight (Ec <= 30 x 
10-6).
    (2) Types of launch vehicles include orbital expendable launch 
vehicles, guided sub-orbital expendable launch vehicles, unguided sub-
orbital expendable launch vehicles, and reusable launch vehicles. 
Orbital expendable launch vehicles are further classified by weight 
class, based on the weight of payload the launch vehicle can place in a 
100-nm orbit, as defined in table 1.
    (b) If an applicant proposes to have more than one type of launch 
vehicle flown from a launch point, the applicant shall demonstrate that 
each type of expendable or reusable launch vehicle planned to be flown 
from the launch point can be flown from the launch point safely.
    (c) If an applicant proposes to have more than one weight class of 
orbital expendable launch vehicles flown from a launch point, the 
applicant shall demonstrate that the heaviest weight class planned to be 
flown from the launch point can be flown from the launch point safely.

           Table 1 of Sec.  420.19--Orbital Expendable Launch Vehicle Classes by Payload Weight (lbs)
----------------------------------------------------------------------------------------------------------------
                                                                       Weight class
              100 nm orbit               -----------------------------------------------------------------------
                                                Small            Medium         Medium large          Large
----------------------------------------------------------------------------------------------------------------
28 degrees inclination *................            <=4400   4400  11100  18500
                                                                  to <=11100        to <=18500
90 degrees inclination..................            <=3300   3300   8400  15000
                                                                   to <=8400        to <=15000
----------------------------------------------------------------------------------------------------------------
* 28 degrees inclination orbit from a launch point at 28 degrees latitude.



Sec. 420.21  Launch site location review--launch site boundary.

    (a) The distance from any proposed launch point to the closest 
launch site boundary must be at least as great as the debris dispersion 
radius of the largest launch vehicle type and weight class proposed for 
the launch point.

[[Page 803]]

    (b) For a launch site supporting any expendable launch vehicle, an 
applicant shall use the largest distance provided by table 2 for the 
type and weight class of any launch vehicle proposed for the launch 
point.
    (c) For a launch site supporting any reusable launch vehicle, an 
applicant shall determine the debris dispersion radius that represents 
the maximum distance from a launch point that debris travels given a 
worst-case launch vehicle failure in the launch area. An applicant must 
clearly and convincingly demonstrate the validity of its proposed debris 
dispersion radius.

           Table 2 of Sec.  420.21--Minimum Distance From Launch Point to Launch Site Boundary (feet)
----------------------------------------------------------------------------------------------------------------
        Orbital expendable launch vehicle class                     Type of suborbital launch vehicle
----------------------------------------------------------------------------------------------------------------
      Small              Medium          Medium large          Large              Guided            Unguided
----------------------------------------------------------------------------------------------------------------
          7300               9300              10600              13000               8000               1600
----------------------------------------------------------------------------------------------------------------



Sec. 420.23  Launch site location review--flight corridor.

    (a) Guided orbital expendable launch vehicle. For a guided orbital 
expendable launch vehicle, an applicant shall define a flight corridor 
that:
    (1) Encompasses an area that the applicant estimates, in accordance 
with the requirements of this part, to contain debris with a ballistic 
coefficient of = 3 pounds per square foot, from any non-
nominal flight of a guided orbital expendable launch vehicle from the 
launch point to a point 5000 nm downrange, or where the IIP leaves the 
surface of the Earth, whichever is shorter;
    (2) Includes an overflight exclusion zone where the public risk 
criteria of 30x10-6 would be exceeded if one person were 
present in the open; and
    (3) Uses one of the methodologies provided in appendix A or B of 
this part. The FAA will approve an alternate method if an applicant 
provides a clear and convincing demonstration that its proposed method 
provides an equivalent level of safety to that required by appendix A or 
B of this part.
    (b) Guided sub-orbital expendable launch vehicle. For a guided sub-
orbital expendable launch vehicle, an applicant shall define a flight 
corridor that:
    (1) Encompasses an area that the applicant estimates, in accordance 
with the requirements of this part, to contain debris with a ballistic 
coefficient of = 3 pounds per square foot, from any non-
nominal flight of a guided sub-orbital expendable launch vehicle from 
the launch point to impact with the earth's surface;
    (2) Includes an impact dispersion area for the launch vehicle's last 
stage;
    (3) Includes an overflight exclusion zone where the public risk 
criteria of 30x10-6 would be exceeded if one person were 
present in the open; and
    (4) Uses one of the methodologies provided in appendices A or B to 
this part. The FAA will approve an alternate method if an applicant 
provides a clear and convincing demonstration that its proposed method 
provides an equivalent level of safety to that required by appendix A or 
B of this part.
    (c) Unguided sub-orbital expendable launch vehicle. (1) For an 
unguided sub-orbital expendable launch vehicle, an applicant shall 
define the following using the methodology provided by appendix D of 
this part:
    (i) Impact dispersion areas that the applicant estimates, in 
accordance with the requirements of this part, to contain the impact of 
launch vehicle stages from nominal flight of an unguided sub-orbital 
expendable launch vehicle from the launch point to impact with the 
earth's surface; and
    (ii) An overflight exclusion zone where the public risk criteria of 
30x10-6 would be exceeded if one person were present in the 
open.
    (2) The FAA will approve an alternate method if an applicant 
provides a clear and convincing demonstration that its proposed method 
provides an equivalent level of safety to that required by appendix D of 
this part.
    (3) An applicant shall base its analysis on an unguided suborbital 
launch vehicle whose final launch vehicle stage apogee represents the 
intended use of the launch point.

[[Page 804]]

    (d) Reusable launch vehicle. For a reusable launch vehicle, an 
applicant shall define a flight corridor that contains the hazardous 
debris from nominal and non-nominal flight of a reusable launch vehicle. 
The applicant must provide a clear and convincing demonstration of the 
validity of its flight corridor.



Sec. 420.25  Launch site location review--risk analysis.

    (a) If a flight corridor or impact dispersion area defined by 
section 420.23 contains a populated area, the applicant shall estimate 
the casualty expectation associated with the flight corridor or impact 
dispersion area. An applicant shall use the methodology provided in 
appendix C to this part for guided orbital or suborbital expendable 
launch vehicles and appendix D for unguided suborbital launch vehicles. 
The FAA will approve an alternate method if an applicant provides a 
clear and convincing demonstration that its proposed method provides an 
equivalent level of safety to that required by appendix C or D of this 
part. For a reusable launch vehicle, an applicant must provide a clear 
and convincing demonstration of the validity of its risk analysis.
    (b) For licensed launches, the FAA will not approve the location of 
the proposed launch point if the estimated expected casualty exceeds 30x 
10-6.

[Docket No. FAA-1999-5833, 65 FR 62861, Oct. 19, 2000, as amended by 
Amdt. 420-3, 72 FR 17019, Apr. 6, 2007]



Sec. 420.27  Launch site location review--information requirements.

    An applicant shall provide the following launch site location review 
information in its application:
    (a) A map or maps showing the location of each launch point 
proposed, and the flight azimuth, IIP, flight corridor, and each impact 
range and impact dispersion area for each launch point;
    (b) Each launch vehicle type and any launch vehicle class proposed 
for each launch point;
    (c) Trajectory data;
    (d) Wind data, including each month and any percent wind data used 
in the analysis;
    (e) Any launch vehicle apogee used in the analysis;
    (f) Each populated area located within a flight corridor or impact 
dispersion area;
    (g) The estimated casualty expectancy calculated for each populated 
area within a flight corridor or impact dispersion area;
    (h) The effective casualty areas used in the analysis;
    (i) The estimated casualty expectancy for each flight corridor or 
set of impact dispersion areas; and
    (j) If populated areas are located within an overflight exclusion 
zone, a demonstration that there are times when the public is not 
present or that the applicant has an agreement in place to evacuate the 
public from the overflight exclusion zone during a launch.



Sec. 420.29  Launch site location review for unproven launch vehicles.

    An applicant for a license to operate a launch site for an unproven 
launch vehicle shall provide a clear and convincing demonstration that 
its proposed launch site location provides an equivalent level of safety 
to that required by this part.



Sec. 420.30  Launch site location review for permitted launch vehicles.

    If an applicant plans to use its proposed launch site solely for 
launches conducted under an experimental permit, the FAA will approve a 
launch site location if the FAA has approved an operating area under 
part 437 for launches from that site.

[Doc. No. FAA-2006-24197, 72 FR 17019, Apr. 6, 2007]



Sec. 420.31  Agreements.

    (a) Except as provided by paragraph (c) of this section, an 
applicant shall complete an agreement with the local U.S. Coast Guard 
district to establish procedures for the issuance of a Notice to 
Mariners prior to a launch and other such measures as the Coast Guard 
deems necessary to protect public health and safety.
    (b) Except as provided by paragraph (c) of this section, an 
applicant shall complete an agreement with the FAA Air Traffic Control 
(ATC) office having

[[Page 805]]

jurisdiction over the airspace through which launches will take place, 
to establish procedures for the issuance of a Notice to Airmen prior to 
a launch and for closing of air routes during the launch window and 
other such measures as the FAA ATC office deems necessary to protect 
public health and safety.
    (c) An applicant that plans to operate a launch site located on a 
federal launch range does not have to comply with section 420.31 if the 
applicant is using existing federal launch range agreements with the 
U.S. Coast Guard and the FAA ATC office having jurisdiction over the 
airspace through which launches will take place.



Sec. Sec. 420.32-420.40  [Reserved]



                 Subpart C_License Terms and Conditions



Sec. 420.41  License to operate a launch site--general.

    (a) A license to operate a launch site authorizes a licensee to 
operate a launch site in accordance with the representations contained 
in the licensee's application, with terms and conditions contained in 
any license order accompanying the license, and subject to the 
licensee's compliance with 49 U.S.C. subtitle IX, ch. 701 and this 
chapter.
    (b) A license to operate a launch site authorizes a licensee to 
offer its launch site to a launch operator for each launch point for the 
type and any weight class of launch vehicle identified in the license 
application and upon which the licensing determination is based.
    (c) Issuance of a license to operate a launch site does not relieve 
a licensee of its obligation to comply with any other laws or 
regulations; nor does it confer any proprietary, property, or exclusive 
right in the use of airspace or outer space.



Sec. 420.43  Duration.

    A license to operate a launch site remains in effect for five years 
from the date of issuance unless surrendered, suspended, or revoked 
before the expiration of the term and is renewable upon application by 
the licensee.



Sec. 420.45  Transfer of a license to operate a launch site.

    (a) Only the FAA may transfer a license to operate a launch site.
    (b) The FAA will transfer a license to an applicant who has 
submitted an application in accordance with 14 CFR part 413, satisfied 
the requirements of Sec. 420.15, and obtained each approval required by 
Sec. 420.17 for a license.
    (c) The FAA may incorporate by reference any findings made part of 
the record that supported a prior related licensing determination.



Sec. 420.47  License modification.

    (a) Upon application or upon its own initiative, the FAA may modify 
a license to operate a launch site at any time by issuing a license 
order that adds, removes, or modifies a license term or condition to 
ensure compliance with the Act and the requirements of this chapter.
    (b) After a license to operate a launch site has been issued, a 
licensee shall apply to the FAA for modification of its license if:
    (1) The licensee proposes to operate the launch site in a manner 
that is not authorized by the license; or
    (2) The licensee proposes to operate the launch site in a manner 
that would make any representation contained in the license application 
that is material to public health and safety or safety of property no 
longer accurate and complete.
    (c) An application to modify a license shall be prepared and 
submitted in accordance with part 413 of this chapter. The licensee 
shall indicate any part of its license or license application that would 
be changed or affected by a proposed modification.
    (d) The FAA approves a modification request that satisfies the 
requirements of this part.
    (e) Upon approval of a license modification, the FAA issues either a 
written approval to the licensee or a license order modifying the 
license if a stated term or condition of the license is changed, added, 
or deleted. A written approval has the full force and effect of a 
license order and is part of the licensing record.

[[Page 806]]



Sec. 420.49  Compliance monitoring.

    A licensee shall allow access by and cooperate with federal officers 
or employees or other individuals authorized by the FAA to observe any 
activities of the licensee, its customers, its contractors, or 
subcontractors, associated with licensed operation of the licensee's 
launch site.



                Subpart D_Responsibilities of a Licensee



Sec. 420.51  Responsibilities--general.

    (a) A licensee shall operate its launch site in accordance with the 
representations in the application upon which the licensing 
determination is based.
    (b) A licensee is responsible for compliance with 49 U.S.C. Subtitle 
IX, ch. 701 and for meeting the requirements of this chapter.



Sec. 420.53  Control of public access.

    (a) A licensee shall prevent unauthorized access to the launch site, 
and unauthorized, unescorted access to explosive hazard facilities or 
other hazard areas not otherwise controlled by a launch operator, 
through the use of security personnel, surveillance systems, physical 
barriers, or other means approved as part of the licensing process.
    (b) A licensee shall notify anyone entering the launch site of 
safety rules and emergency and evacuation procedures prior to that 
person's entry unless that person has received a briefing on those rules 
and procedures within the previous year.
    (c) A licensee shall employ warning signals or alarms to notify any 
persons at the launch site of any emergency.



Sec. 420.55  Scheduling of launch site operations.

    (a) A licensee shall develop and implement procedures to schedule 
operations to ensure that each operation carried out by a customer at 
the launch site does not create the potential for a mishap that could 
result in harm to the public because of the proximity of the operations, 
in time or place, to operations of any other customer. A customer 
includes any launch operator, and any contractor, subcontractor or 
customer of the launch site operator's customer at the launch site.
    (b) A licensee shall provide its launch site scheduling requirements 
to each customer before the customer begins operations at the launch 
site.



Sec. 420.57  Notifications.

    (a) A licensee shall notify each launch operator and any other 
customer of any limitations on the use of the launch site. A licensee 
shall also communicate limitations on the use of facilities provided to 
customers by the launch site operator.
    (b) A licensee shall maintain its agreement, made in accordance with 
Sec. 420.31(a), with the local U.S. Coast Guard district.
    (c) A licensee shall maintain its agreement, made in accordance with 
Sec. 420.31(b), with the FAA ATC office having jurisdiction over the 
airspace through which launches will take place.
    (d) At least two days prior to flight of a launch vehicle, the 
licensee shall notify local officials and all owners of land adjacent to 
the launch site of the flight schedule.



Sec. 420.59  Launch site accident investigation plan.

    (a) General. A licensee shall develop and implement a launch site 
accident investigation plan that contains the licensee's procedures for 
reporting, responding to, and investigating launch site accidents, as 
defined by Sec. 420.5, and for cooperating with federal officials in 
case of a launch accident. The launch site accident investigation plan 
must be signed by an individual authorized to sign and certify the 
application in accordance with Sec. 413.7(c) of this chapter.
    (b) Reporting requirements. A launch site accident investigation 
plan shall provide for--
    (1) Immediate notification to the Federal Aviation Administration 
(FAA) Washington Operations Center in the event of a launch site 
accident.
    (2) Submission of a written preliminary report to the FAA, Associate 
Administrator for Commercial Space Transportation, within five days of 
any launch site accident. The report must include the following 
information:

[[Page 807]]

    (i) Date and time of occurrence;
    (ii) Location of the event;
    (iii) Description of the event;
    (iv) Number of injuries, if any, and general description of types of 
injuries suffered;
    (v) Property damage, if any, and an estimate of its value;
    (vi) Identification of hazardous materials, as defined by Sec. 
401.5 of this chapter, involved in the event;
    (vii) Any action taken to contain the consequences of the event; and
    (viii) Weather conditions at the time of the event.
    (c) Response plan. A launch site accident investigation plan shall 
contain procedures that--
    (1) Ensure the consequences of a launch site accident are contained 
and minimized;
    (2) Ensure data and physical evidence are preserved;
    (3) Require the licensee to report to and cooperate with FAA or 
National Transportation Safety Board (NTSB) investigations and designate 
one or more points of contact for the FAA or NTSB; and
    (4) Require the licensee to identify and adopt preventive measures 
for avoiding recurrence of the event.
    (d) Investigation plan. A launch site accident investigation plan 
must contain--
    (1) Procedures for investigating the cause of a launch site 
accident;
    (2) Procedures for reporting launch site accident investigation 
results to the FAA; and
    (3) Delineated responsibilities, including reporting 
responsibilities for personnel assigned to conduct investigations and 
for any one retained by the licensee to conduct or participate in 
investigations.
    (e) Launch accidents. A launch site accident investigation plan 
shall contain--
    (1) Procedures for participating in an investigation of a launch 
accident for launches launched from the launch site;
    (2) Require the licensee to cooperate with FAA or National 
Transportation Safety Board (NTSB) investigations of a launch accident 
for launches launched from the launch site.
    (f) Applicability of other accident investigation procedures. 
Accident investigation procedures developed in accordance with 29 CFR 
1910.119 and 40 CFR part 68 will satisfy the requirements of paragraphs 
(c) and (d) of this section to the extent that they include the elements 
required by paragraphs (c) and (d) of this section.



Sec. 420.61  Records.

    (a) A licensee shall maintain all records, data, and other material 
needed to verify that its operations are conducted in accordance with 
representations contained in the licensee's application. A licensee 
shall retain records for three years.
    (b) In the event of a launch or launch site accident, a licensee 
shall preserve all records related to the event. Records shall be 
retained until completion of any federal investigation and the FAA 
advises the licensee that the records need not be retained.
    (c) A licensee shall make available to federal officials for 
inspection and copying all records required to be maintained under the 
regulations.



Sec. 420.63  Explosive siting.

    (a) Except as otherwise provided by paragraph (b) of this section, a 
licensee shall ensure that the configuration of the launch site is in 
accordance with an explosive site plan, and that the licensee's 
explosive site plan is in compliance with the requirements of Sec. Sec. 
420.65-420.69. The explosive site plan shall include:
    (1) A scaled map that shows the location of all proposed explosive 
hazard facilities at the proposed launch site and that shows actual and 
minimal allowable distances between each explosive hazard facility and 
all other explosive hazard facilities and each public area, including 
the launch site boundary;
    (2) A listing of the maximum quantities of liquid and solid 
propellants and other explosives to be located at each explosive hazard 
facility, including the class and division for each solid explosive and 
the hazard and compatibility group for each liquid propellant; and

[[Page 808]]

    (3) A description of each activity to be conducted in each explosive 
hazard facility.
    (b) A licensee operating a launch site located on a federal launch 
range does not have to comply with the requirements in Sec. Sec. 
420.65-420.69 if the licensee is in compliance with the federal launch 
range's explosive safety requirements.
    (c) For explosive siting issues not otherwise addressed by the 
requirements of Sec. Sec. 420.65-420.69, a launch site operator must 
clearly and convincingly demonstrate a level of safety equivalent to 
that otherwise required by part 420.



Sec. 420.65  Handling of solid propellants.

    (a) A launch site operator shall determine the maximum total 
quantity of solid propellants and other solid explosives by class and 
division, in accordance with 49 CFR part 173, Subpart C, to be located 
in each explosive hazard facility where solid propellants or other solid 
explosives will be handled.
    (b) When explosive divisions 1.1 and 1.3 explosives are located in 
the same explosive hazard facility, the total quantity of explosive 
shall be treated as division 1.1 for quantity-distance determinations; 
or, a launch site operator may add the net explosive equivalent weight 
of the division 1.3 items to the net weight of division 1.1 items to 
determine the total quantity of explosives.
    (c) A launch site operator shall separate each explosive hazard 
facility where solid propellants and other solid explosives are handled 
from all other explosive hazard facilities, each public area and the 
launch site boundary by a distance no less than those provided for each 
quantity and explosive division in appendix E, table E-1.
    (d) A launch site operator shall follow the following separation 
rules:
    (1) A launch site operator shall employ no less than the applicable 
public area distance to separate an explosive hazard facility from each 
public area and from the launch site boundary.
    (2) A launch site operator shall employ no less than an intraline 
distance to separate an explosive hazard facility from all other 
explosive hazard facilities used by a single customer.
    (3) For explosive division 1.1 only, a launch site operator may 
employ no less than 60% of the applicable public area distance, or the 
public traffic route distance, to separate an explosive hazard facility 
from a public area that consists only of a public highway or railroad 
line.
    (4) A launch site operator may use linear interpolation for NEW 
quantities between table entries.
    (5) A launch site operator shall measure separation distance from 
the closest debris or explosive hazard source in an explosive hazard 
facility.



Sec. 420.67  Storage or handling of liquid propellants.

    (a) For an explosive hazard facility where liquid propellants are 
handled or stored, a launch site operator shall determine the total 
quantity of liquid propellant and, if applicable pursuant to paragraph 
(a)(3) of this section, the explosive equivalent of liquid propellant in 
each explosive hazard facility in accordance with the following:
    (1) The quantity of liquid propellant in a tank, drum, cylinder, or 
other container is the net weight in pounds of the propellant in the 
container. The determination of quantity shall include any liquid 
propellant in associated piping to any point where positive means are 
provided for interrupting the flow through the pipe, or interrupting a 
reaction in the pipe in the event of a mishap.
    (2) Where two or more containers of compatible liquid propellants 
are handled or stored together in an explosive hazard facility, the 
total quantity of propellant to determine the minimum separation 
distance between the explosive hazard facility and all other explosive 
hazard facilities and each public area shall be the total quantity of 
liquid propellant in all containers, unless:
    (i) The containers are separated one from the other by the 
appropriate distance as provided by paragraph (b)(2) of this section; or
    (ii) The containers are subdivided by intervening barriers, such as 
diking, that prevent mixing.
    (iii) If paragraph (a)(2)(i) or (ii) of this section apply, a launch 
site operator shall use the quantity of propellant requiring the 
greatest separation

[[Page 809]]

distance pursuant to paragraph (b) of this section to determine the 
minimum separation distance between the explosive hazard facility and 
all other explosive hazard facilities and each public area.
    (3) Where two or more containers of incompatible liquid propellants 
will be handled or stored together in an explosive hazard facility, a 
launch site operator shall determine the explosive equivalent in pounds 
of the combined liquids, using the formulas provided in appendix E, 
table E-2, to determine the minimum separation distance between the 
explosive hazard facility and other explosive hazard facilities and 
public areas unless the containers are separated one from the other by 
the appropriate distance as determined in paragraph (b)(3) of this 
section. A launch site operator shall then use the quantity of liquid 
propellant requiring the greatest separation distance to determine the 
minimum separation distance between the explosive hazard facility and 
all other explosive hazard facilities and each public area.
    (4) A launch site operator shall convert quantities of liquid 
propellants from gallons to pounds using the conversion factors provided 
in appendix E, table E-3 and the following equation:

Pounds of propellant = gallons x density of propellant (pounds per 
    gallon).

    (b) A launch site operator shall use appendix E, table E-3 to 
determine hazard and compatibility groups and shall separate liquid 
propellants from each other and from each public area using distances no 
less than those provided in appendix E, tables E-4 through E-7 in 
accordance with the following:
    (1) A launch site operator shall measure minimum separation 
distances from the hazard source in an explosive hazard facility, such 
as a container, building, segment, or positive cutoff point in piping, 
closest to each explosive hazard facility.
    (2) A launch site operator shall measure the minimum separation 
distance between compatible liquid propellants using the ``intragroup 
and compatible'' distance for the propellant quantity and hazard group 
that requires the greater distance prescribed by appendix E, tables E-4, 
E-5, and E-6.
    (3) A launch site operator shall measure the minimum separation 
distance between liquid propellants of different compatibility groups 
using the ``public area and incompatible'' distance for the propellant 
quantity and hazard group that requires the greater distance provided in 
appendix E, tables E-4, E-5, and E-6, unless the propellants of 
different compatibility groups are subdivided by intervening barriers 
that prevent mixing. If such barriers are present, the minimum 
separation distance shall be the ``intragroup and compatible'' distance 
for the propellant quantity and group that requires the greater distance 
provided in appendix E, tables E-4, E-5, and E-6.
    (4) A launch site operator shall separate liquid propellants from 
each public area using a distance no less than the ``public area and 
incompatible'' distance provided in appendix E, tables E-4, E-5, and E-
6.
    (5) A launch site operator shall separate each explosive hazard 
facility that contains liquid propellants where explosive equivalents 
apply pursuant to paragraph (a)(3) of this section from all other 
explosive hazard facilities of a single customer using the intraline 
distance provided in appendix E, table E-7, and from each public area 
using the public area distance provided in appendix E, table E-7.



Sec. 420.69  Solid and liquid propellants located together.

    (a) A launch site operator proposing an explosive hazard facility 
where solid and liquid propellants are to be located together shall 
determine the minimum separation distances between the explosive hazard 
facility and other explosive hazard facilities and public areas in 
accordance with one method provided in paragraphs (b), (c), or (d) of 
this section.
    (b) A launch site operator shall determine the minimum separation 
distances between the explosive hazard facility and all other explosive 
hazard facilities and public areas required for the liquid propellants 
in accordance with section 420.67(b)(5), and add the minimum separation 
distances between the explosive hazard facility and all other explosive 
hazard facilities and

[[Page 810]]

public areas required for the solid propellants in accordance with 
section 420.65, treating the solid propellants as explosive division 
1.1.
    (c) A launch site operator shall determine the minimum separation 
distances between the explosive hazard facility and all other explosive 
hazard facilities and public areas required for the liquid propellants 
in accordance with section 420.67(b)(5), and add the minimum separation 
distances between the explosive hazard facility and all other explosive 
hazard facilities and public areas required for the solid propellants in 
accordance with section 420.65, using the explosive equivalent of the 
explosive division 1.3.
    (d) A launch site operator shall conduct an analysis of the maximum 
credible event (MCE), or the worst case explosion that is expected to 
occur. If the MCE shows that there will be no simultaneous explosion 
reaction of the liquid propellant tanks and the solid propellant motors, 
then the minimum distance between the explosive hazard facility and all 
other explosive hazard facilities and public areas must be based on the 
MCE.



Sec. 420.71  Lightning protection.

    (a) Lightning protection. A licensee shall ensure that the public is 
not exposed to hazards due to the initiation of explosives by lightning.
    (1) Elements of a lighting protection system. Unless an explosive 
hazard facility meets the conditions of paragraph (a)(3) of this 
section, all explosive hazard facilities shall have a lightning 
protection system to ensure explosives are not initiated by lightning. A 
lightning protection system shall meet the requirements of this 
paragraph and include the following:
    (i) Air terminal. An air terminal to intentionally attract a 
lightning strike.
    (ii) Down conductor. A low impedance path connecting an air terminal 
to an earth electrode system.
    (iii) Earth electrode system. An earth electrode system to dissipate 
the current from a lightning strike to ground.
    (2) Bonding and surge protection. A lightning protection system must 
meet the requirements of this paragraph and include the following:
    (i) Bonding. All metallic bodies shall be bonded to ensure that 
voltage potentials due to lightning are equal everywhere in the 
explosive hazard facility. Any fence within six feet of a lightning 
protection system shall have a bond across each gate and other 
discontinuations and shall be bonded to the lightning protection system. 
Railroad tracks that run within six feet of the lightning protection 
system shall be bonded to the lightning protection system.
    (ii) Surge protection. A lightning protection system shall include 
surge protection to reduce transient voltages due to lightning to a 
harmless level for all metallic power, communication, and 
instrumentation lines entering an explosive hazard facility.
    (3) Circumstances where no lightening protection system is required. 
No lightning protection system is required for an explosive hazard 
facility when a lightning warning system is available to permit 
termination of operations and withdrawal of the public to public area 
distance prior to an electrical storm, or for an explosive hazard 
facility containing explosives that cannot be initiated by lightning. If 
no lightning protection system is required, a licensee must ensure the 
withdrawal of the public to a public area distance prior to an 
electrical storm.
    (4) Testing and inspection. Lightning protection systems shall be 
visually inspected semiannually and shall be tested once each year for 
electrical continuity and adequacy of grounding. A licensee shall 
maintain at the explosive hazard facility a record of results obtained 
from the tests, including any action taken to correct deficiencies 
noted.
    (b) Electrical power lines. A licensee shall ensure that electric 
power lines at its launch site meet the following requirements:
    (1) Electric power lines shall be no closer to an explosive hazard 
facility than the length of the lines between the poles or towers that 
support the lines unless an effective means is provided to ensure that 
energized lines cannot, on breaking, come in contact with the explosive 
hazard facility.

[[Page 811]]

    (2) Towers or poles supporting electrical distribution lines that 
carry between 15 and 69 KV, and unmanned electrical substations shall be 
no closer to an explosive hazard facility than the public area distance 
for that explosive hazard facility.
    (3) Towers or poles supporting electrical transmission lines that 
carry 69 KV or more, shall be no closer to an explosive hazard facility 
than the public area distance for that explosive hazard facility.



Sec. Appendix A to Part 420--Method for Defining a Flight Corridor

                            (a) Introduction

    (1) This appendix provides a method for constructing a flight 
corridor from a launch point for a guided suborbital launch vehicle or 
any one of the four classes of guided orbital launch vehicles from table 
1, Sec. 420.19, without the use of local meteorological data or a 
launch vehicle trajectory.
    (2) A flight corridor includes an overflight exclusion zone in a 
launch area and, for a guided suborbital launch vehicle, an impact 
dispersion area in a downrange area. A flight corridor for a guided 
suborbital launch vehicle ends with the impact dispersion area, and, for 
the four classes of guided orbital launch vehicles, 5000 nautical miles 
(nm) from the launch point.

                          (b) Data requirements

    (1) Maps. An applicant shall use any map for the launch site region 
with a scale not less than 1:250,000 inches per inch in the launch area 
and 1:20,000,000 inches per inch in the downrange area. As described in 
paragraph (b)(2), an applicant shall use a mechanical method, a semi-
automated method, or a fully-automated method to plot a flight corridor 
on maps. A source for paper maps acceptable to the FAA is the U.S. Dept. 
of Commerce, National Oceanic and Atmospheric Administration, National 
Ocean Service.
    (i) Projections for mechanical plotting method. An applicant shall 
use a conic projection. The FAA will accept a ``Lambert-Conformal'' 
conic projection. A polar aspect of a plane-azimuthal projection may 
also be used for far northern launch sites.
    (ii) Projections for semi-automated plotting method. An applicant 
shall use cylindrical, conic, or plane projections for semi-automated 
plotting. The FAA will accept ``Mercator'' and ``Oblique Mercator'' 
cylindrical projections. The FAA will accept ``Lambert-Conformal'' and 
``Albers Equal-Area'' conic projections. The FAA will accept ``Lambert 
Azimuthal Equal-Area'' and ``Azimuthal Equidistant'' plane projections.
    (iii) Projections for fully-automated plotting method. The FAA will 
accept map projections used by geographical information system software 
scaleable pursuant to the requirements of paragraph (b)(1).
    (2) Plotting Methods.
    (i) Mechanical method. An applicant may use mechanical drafting 
equipment such as pencil, straight edge, ruler, protractor, and compass 
to plot the location of a flight corridor on a map. The FAA will accept 
straight lines for distances less than or equal to 7.5 times the map 
scale on map scales greater than or equal to 1:1,000,000 inches per inch 
(in/in); or straight lines representing 100 nm or less on map scales 
less than 1:1,000,000 in/in.
    (ii) Semi-automated method. An applicant may employ the range and 
bearing techniques in paragraph (b)(3) to create latitude and longitude 
points on a map. The FAA will accept straight lines for distances less 
than or equal to 7.5 times the map scale on map scales greater than or 
equal to 1:1,000,000 inches per inch (in/in); or straight lines 
representing 100 nm or less on map scales less than 1:1,000,000 in/in.
    (iii) Fully-automated method. An applicant may use geographical 
information system software with global mapping data scaleable in 
accordance with paragraph (b)(1).
    (3) Range and bearing computations on an ellipsoidal Earth model.
    (i) To create latitude and longitude pairs on an ellipsoidal Earth 
model, an applicant shall use the following equations to calculate 
geodetic latitude (+N) and longitude (+E) given the launch point 
geodetic latitude (+N), longitude (+E), range (nm), and bearing 
(degrees, positive clockwise from North).
    (A) Input. An applicant shall use the following input in making 
range and bearing computations. Angle units must be in radians.

[[Page 812]]

[GRAPHIC] [TIFF OMITTED] TR19OC00.007

    (B) Computations. An applicant shall use the following equations to 
determine the latitude ([phis]2) and longitude 
([lambda]2) of a target point situated ``S'' nm from the 
launch point on an azimuth bearing ([alpha]12) degrees.
[GRAPHIC] [TIFF OMITTED] TR19OC00.008

where:

a = WGS-84 semi-major axis (3443.91846652 nmi)
b = WGS-84 semi-minor axis (3432.37165994 nmi)
[GRAPHIC] [TIFF OMITTED] TR19OC00.009

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[[Page 813]]


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[GRAPHIC] [TIFF OMITTED] TR19OC00.029

    (ii) To create latitude and longitude pairs on an ellipsoidal Earth 
model, an applicant shall use the following equations to calculate the 
distance (S) of the geodesic between two points (P1 and 
P2), the forward azimuth ([alpha]12) of the 
geodesic at P1, and the back azimuth ([alpha]21) 
of the geodesic at P2, given the geodetic latitude (+N), 
longitude (+E) of P1 and P2. Azimuth is measured 
positively clockwise from North.
    (A) Input. An applicant shall use the following input. Units must be 
in radians.

[[Page 814]]

[GRAPHIC] [TIFF OMITTED] TR19OC00.030

    (B) Computations. An applicant shall use the following equations to 
determine the distance (S), the forward azimuth ([alpha]12) 
of the geodesic at P1, and the back azimuth 
([alpha]12) of the geodesic at P2.
[GRAPHIC] [TIFF OMITTED] TR19OC00.031

where:

a = WGS-84 semi-major axis (3443.91846652 nmi)
b = WGS-84 semi-minor axis (3432.37165994 nmi)
[GRAPHIC] [TIFF OMITTED] TR19OC00.032

[GRAPHIC] [TIFF OMITTED] TR19OC00.033

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[[Page 815]]


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[GRAPHIC] [TIFF OMITTED] TR19OC00.047

                    (c) Creation of a Flight Corridor

    (1) To define a flight corridor, an applicant shall:
    (i) Select a guided suborbital or orbital launch vehicle, and, for 
an orbital launch vehicle, select from table 1 of Sec. 420.19 a launch 
vehicle weight class that best represents the launch vehicle the 
applicant plans to support at its launch point;
    (ii) Select a debris dispersion radius (Dmax) from table 
A-1 corresponding to the guided suborbital launch vehicle or orbital 
launch vehicle class selected in paragraph (c)(1)(i);
    (iii) Select a launch point geodetic latitude and longitude; and
    (iv) Select a flight azimuth.
    (2) An applicant shall define and map an overflight exclusion zone 
using the following method:
    (i) Select a debris dispersion radius (Dmax) from table 
A-1 and a downrange distance (DOEZ) from table A-2 to define 
an overflight exclusion zone for the guided suborbital launch vehicle or 
orbital launch vehicle class selected in paragraph (c)(1)(i).
    (ii) An overflight exclusion zone is described by the intersection 
of the following boundaries, which are depicted in figure A-1:
    (A) An applicant shall define an uprange boundary with a half-circle 
arc of radius Dmax and a chord of length twice 
Dmax connecting the half-circle arc endpoints. The uprange 
boundary placement on a map has the chord

[[Page 816]]

midpoint positioned on the launch point with the chord oriented along an 
azimuth 90[deg]from the launch azimuth and the 
half-circle arc located uprange from the launch point.
    (B) An applicant shall define the downrange boundary with a half-
circle arc of radius Dmax and a chord of length twice 
Dmax connecting the half-circle arc endpoints. The downrange 
boundary placement on a map has the chord midpoint intersecting the 
nominal flight azimuth line at a distance DOEZ inches 
downrange with the chord oriented along an azimuth 90[deg]from the launch azimuth and the half-circle arc 
located downrange from the intersection of the chord and the flight 
azimuth line.
    (C) Crossrange boundaries of an overflight exclusion zone are 
defined by two lines segments. Each is parallel to the flight azimuth 
with one to the left side and one to the right side of the flight 
azimuth line. Each line connects an uprange half-circle arc endpoint to 
a downrange half-circle arc endpoint as shown in figure A-1.
    (iii) An applicant shall identify the overflight exclusion zone on a 
map that meets the requirements of paragraph (b).
    (3) An applicant shall define and map a flight corridor using the 
following method:
    (i) In accordance with paragraph (b), an applicant shall draw a 
flight corridor on one or more maps with the Dmax origin 
centered on the intended launch point and the flight corridor centerline 
(in the downrange direction) aligned with the initial flight azimuth. 
The flight corridor is depicted in figure A-2 and its line segment 
lengths are tabulated in table A-3.
    (ii) An applicant shall define the flight corridor using the 
following boundary definitions:
    (A) An applicant shall draw an uprange boundary, which is defined by 
an arc-line GB (figure A-2), directly uprange from and centered on the 
intended launch point with radius Dmax.
    (B) An applicant shall draw line CF perpendicular to and centered on 
the flight azimuth line, and positioned 10 nm downrange from the launch 
point. The applicant shall use the length of line CF provided in table 
A-3 corresponding to the guided suborbital launch vehicle or orbital 
launch vehicle class selected in paragraph (c)(1)(i).
    (C) An applicant shall draw line DE perpendicular to and centered on 
the flight azimuth line, and positioned 100 nm downrange from the launch 
point. The applicant shall use the length of line DE provided in table 
A-3 corresponding to the guided suborbital launch vehicle or orbital 
launch vehicle class selected in paragraph (c)(1)(i).
    (D) Except for a guided suborbital launch vehicle, an applicant 
shall draw a downrange boundary, which is defined by line HI and is 
drawn perpendicular to and centered on the flight azimuth line, and 
positioned 5,000 nm downrange from the launch point. The applicant shall 
use the length of line HI provided in table A-3 corresponding to the 
orbital launch vehicle class selected in paragraph (c)(1)(i).
    (E) An applicant shall draw crossrange boundaries, which are defined 
by three lines on the left side and three lines on the right side of the 
flight azimuth. An applicant shall construct the left flight corridor 
boundary according to the following, and as depicted in figure A-3 :
    (1) The first line (line BC in figure A-3) is tangent to the uprange 
boundary arc, and ends at endpoint C of line CF, as depicted in figure 
A-3;
    (2) The second line (line CD in figure A-3) begins at endpoint C of 
line BC and ends at endpoint D of line DH, as depicted in figure A-3;
    (3) For all orbital launch vehicles, the third line (line DH in 
figure A-3) begins at endpoint D of line CD and ends at endpoint H of 
line HI, as depicted in figure A-3; and
    (4) For a guided suborbital launch vehicle, the line DH begins at 
endpoint D of line CD and ends at a point tangent to the impact 
dispersion area drawn in accordance with paragraph (c)(4) and as 
depicted in figure A-4.
    (F) An applicant shall repeat the procedure in paragraph 
(c)(3)(ii)(E) for the right side boundary.
    (iii) An applicant shall identify the flight corridor on a map that 
meets the requirements of paragraph (b).
    (4) For a guided suborbital launch vehicle, an applicant shall 
define a final stage impact dispersion area as part of the flight 
corridor and show the impact dispersion area on a map, as depicted in 
figure A-4, in accordance with the following:
    (i) An applicant shall select an apogee altitude (Hap) 
for the launch vehicle final stage. The apogee altitude should equal the 
highest altitude intended to be reached by a guided suborbital launch 
vehicle launched from the launch point.
    (ii) An applicant shall define the impact dispersion area by using 
an impact range factor [IP(Hap)] and a dispersion factor 
[DISP(Hap)] as shown below:
    (A) An applicant shall calculate the impact range (D) for the final 
launch vehicle stage. An applicant shall set D equal to the maximum 
apogee altitude (Hap) multiplied by the impact range factor 
as shown below:
[GRAPHIC] [TIFF OMITTED] TR19OC00.048

where: IP(Hap) = 0.4 for an apogee less than 100 km; and 
IP(Hap) = 0.7 for an apogee 100 km or greater.


[[Page 817]]


    (B) An applicant shall calculate the impact dispersion radius (R) 
for the final launch vehicle stage. An applicant shall set R equal to 
the maximum apogee altitude (Hap) multiplied by the 
dispersion factor as shown below:
[GRAPHIC] [TIFF OMITTED] TR19OC00.049

where: DISP(Hap) = 0.05

    (iii) An applicant shall draw the impact dispersion area on a map 
with its center on the predicted impact point. An applicant shall then 
draw line DH in accordance with paragraph (c)(3)(ii)(E)(4).

                    (d) Evaluate the Flight Corridor

    (1) An applicant shall evaluate the flight corridor for the presence 
of any populated areas. If an applicant determines that no populated 
area is located within the flight corridor, then no additional steps are 
necessary.
    (2) If a populated area is located in an overflight exclusion zone, 
an applicant may modify its proposal or demonstrate that there are times 
when no people are present or that the applicant has an agreement in 
place to evacuate the public from the overflight exclusion zone during a 
launch.
    (3) If a populated area is located within the flight corridor, an 
applicant may modify its proposal and create another flight corridor 
pursuant to appendix A, use appendix B to narrow the flight corridor, or 
complete a risk analysis in accordance with appendix C.

             Table A-1--Debris Dispersion Radius (Dmax) (in)
------------------------------------------------------------------------
                  Orbital launch vehicles                    Suborbital
-----------------------------------------------------------    launch
                                                              vehicles
    Small          Medium      Medium large      Large     -------------
                                                               Guided
------------------------------------------------------------------------
      87,600        111,600        127,200        156,000        96,000
   (1.20 nm)      (1.53 nm)      (1.74 nm)      (2.14 nm)     (1.32 nm)
------------------------------------------------------------------------


   Table A-2--Overflight Exclusion Zone Downrange Distance (Doez) (in)
------------------------------------------------------------------------
                  Orbital launch vehicles                    Suborbital
-----------------------------------------------------------    launch
                                                              vehicles
    Small          Medium      Medium large      Large     -------------
                                                               Guided
------------------------------------------------------------------------
     240,500        253,000        310,300        937,700       232,100
   (3.30 nm)      (3.47 nm)      (4.26 nm)     (12.86 nm)     (3.18 nm)
------------------------------------------------------------------------

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[[Page 819]]

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[[Page 820]]

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[[Page 821]]

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[[Page 822]]



Sec. Appendix B to Part 420--Method for Defining a Flight Corridor

                            (a) Introduction

    (1) This appendix provides a method to construct a flight corridor 
from a launch point for a guided suborbital launch vehicle or any one of 
the four weight classes of guided orbital launch vehicles from table 1, 
Sec. 420.19, using local meteorological data and a launch vehicle 
trajectory.
    (2) A flight corridor is constructed in two sections--one section 
comprising a launch area and one section comprising a downrange area. 
The launch area of a flight corridor reflects the extent of launch 
vehicle debris impacts in the event of a launch vehicle failure and 
applying local meteorological conditions. The downrange area reflects 
the extent of launch vehicle debris impacts in the event of a launch 
vehicle failure and applying vehicle imparted velocity, malfunctions 
turns, and vehicle guidance and performance dispersions.
    (3) A flight corridor includes an overflight exclusion zone in the 
launch area and, for a guided suborbital launch vehicle, an impact 
dispersion area in the downrange area. A flight corridor for a guided 
suborbital launch vehicle ends with an impact dispersion area and, for 
the four classes of guided orbital launch vehicles, 5,000 nautical miles 
(nm) from the launch point, or where the IIP leaves the surface of the 
Earth, whichever is shorter.

                          (b) Data Requirements

    (1) Launch area data requirements. An applicant shall satisfy the 
following data requirements to perform the launch area analysis of this 
appendix. The data requirements are identified in table B-1 along with 
sources where data acceptable to the FAA may be obtained.
    (i) An applicant must select meteorological data that meet the 
specifications in table B-1 for the proposed launch site.

                Table B-1--Launch Area Data Requirements
------------------------------------------------------------------------
        Data category               Data item            Data source
------------------------------------------------------------------------
Meteorological Data.........  Local statistical     These data may be
                               wind data as a        obtained from:
                               function of          Global Gridded Upper
                               altitude up to        Air Statistics,
                               50,000 feet.          Climate
                               Required data         Applications Branch
                               include: altitude     National Climatic
                               (ft), atmospheric     Data Center.
                               density (slugs/ft
                               \3\), mean East/
                               West meridianal (u)
                               and North/South
                               zonal (v) wind (ft/
                               sec), standard
                               deviation of u and
                               v wind (ft/sec),
                               correlation
                               coefficient, number
                               of observations and
                               wind percentile (%).
Nominal Trajectory Data.....  State vector data as  Actual launch
                               function of time      vehicle trajectory
                               after liftoff in      data; or trajectory
                               topocentric launch    generation software
                               point centered        that meets the
                               X,Y,Z,X,Y,Z           requirements of
                               coordinates with      paragraph
                               the X-axis aligned    (b)(1)(ii).
                               with the flight
                               azimuth. Trajectory
                               time intervals
                               shall not be
                               greater than one
                               second. XYZ units
                               are in feet and
                               X,Y,Z units are in
                               ft/sec.
Debris Data.................  A fixed ballistic     N/A.
                               coefficient equal
                               to 3 lbs/ft \2\ is
                               used for the launch
                               area.
Geographical Data...........  Launch point          Geographical surveys
                               geodetic latitude     or Global
                               on a WGS-84           Positioning System.
                               ellipsoidal Earth
                               model.
                              Launch point
                               longitude on an
                               ellipsoidal Earth
                               model.
                              Maps using scales of  Map types with scale
                               not less than         and projection
                               1:250,000 inches      information are
                               per inch within 100   listed in the
                               nm of a launch        Defense Mapping
                               point and             Agency, Public
                               1:20,000,000 inches   Sale, Aeronautical
                               per inch for          Charts and
                               distances greater     Publications
                               than 100 nm from a    Catalog. The
                               launch point.         catalog and maps
                                                     may be ordered
                                                     through the U.S.
                                                     Dept. of Commerce,
                                                     National Oceanic
                                                     and Atmospheric
                                                     Administration,
                                                     National Ocean
                                                     Service.
------------------------------------------------------------------------

    (ii) For a guided orbital launch vehicle, an applicant shall obtain 
or create a launch vehicle nominal trajectory. An applicant may use 
trajectory data from a launch vehicle manufacturer or generate a 
trajectory using trajectory simulation software. Trajectory time 
intervals shall be no greater than one second. If an applicant uses a 
trajectory computed with commercially available software, the software 
must calculate the trajectory using the following parameters, or clearly 
and convincingly demonstrated equivalents:
    (A) Launch location:

[[Page 823]]

    (1) Launch point, using geodetic latitude and longitude to four 
decimal places; and
    (2) Launch point height above sea level.
    (B) Ellipsoidal Earth:
    (1) Mass of Earth;
    (2) Radius of Earth;
    (3) Earth flattening factor; and
    (4) Gravitational harmonic constants (J2, J3, J4).
    (C) Vehicle characteristics:
    (1) Mass as a function of time;
    (2) Thrust as a function of time;
    (3) Specific impulse (ISP) as a function of time; and
    (4) Stage dimensions.
    (D) Launch events:
    (1) Stage burn times; and
    (2) Stage drop-off times.
    (E) Atmosphere:
    (1) Density as a function of altitude;
    (2) Pressure as a function of altitude;
    (3) Speed of sound as a function of altitude; and
    (4) Temperature as a function of altitude.
    (F) Winds:
    (1) Wind direction as a function of altitude; and
    (2) Wind magnitude as a function of altitude.
    (I) Aerodynamics: drag coefficient as a function of mach number for 
each stage of flight showing subsonic, transonic and supersonic mach 
regions for each stage.
    (iii) An applicant shall use a ballistic coefficient ([beta]) of 3 
lbs/ft\2\ for debris impact computations.
    (iv) An applicant shall satisfy the map and plotting requirements 
for a launch area of appendix A, paragraph (b).
    (2) Downrange area data requirements. An applicant shall satisfy the 
following data requirements to perform the downrange area analysis of 
this appendix.
    (i) The launch vehicle weight class and method of generating a 
trajectory used in the launch area shall be used by an applicant in the 
downrange area as well. Trajectory time intervals must not be greater 
than one second.
    (ii) An applicant shall satisfy the map and plotting data 
requirements for a downrange area of appendix A, paragraph (b).

         (c) Construction of a Launch Area of a Flight Corridor

    (1) An applicant shall construct a launch area of a flight corridor 
using the processes and equations of this paragraph for each trajectory 
position. An applicant shall repeat these processes at time points on 
the launch vehicle trajectory for time intervals of no greater than one 
second. When choosing wind data, an applicant shall use a time period of 
between one and 12 months.
    (2) A launch area analysis must include all trajectory positions 
whose Z-values are less than or equal to 50,000 ft.
    (3) Each trajectory time is denoted by the subscript ``i''. Height 
intervals for a given atmospheric pressure level are denoted by the 
subscript ``j'.
    (4) Using data from the GGUAS CD-ROM, an applicant shall estimate 
the mean atmospheric density, maximum wind speed, height interval fall 
times and height interval debris dispersions for 15 mean geometric 
height intervals.
    (i) The height intervals in the GGUAS source data vary as a function 
of the following 15 atmospheric pressure levels expressed in millibars: 
surface, 1000, 850, 700, 500, 400, 300, 250, 200, 150, 100, 70, 50, 30, 
10. The actual geometric height associated with each pressure level 
varies depending on the time of year. An applicant shall estimate the 
mean geometric height over the period of months selected in subparagraph 
(1) of this paragraph for each of the 15 pressure levels as shown in 
equation B1.
[GRAPHIC] [TIFF OMITTED] TR19OC00.055

where:

Hj = mean geometric height hm = geometric height 
for a given month nm = number of observations for a given 
month
k = number of wind months of interest

    (ii) The atmospheric densities in the source data also vary as a 
function of the 15 atmospheric pressure levels. The actual atmospheric 
density associated with each pressure level varies depending on the time 
of year. An applicant shall estimate the mean atmospheric density over 
the period of months selected in accordance with subparagraph (1) of 
this paragraph for each of the 15 pressure levels as shown in equation 
B2.
[GRAPHIC] [TIFF OMITTED] TR19OC00.056

where:

[rho]j = mean atmospheric density
--
[rho]m = atmospheric density for a given month
nm = number of observations for a given month
k = number of wind months of interest

    (iii) An applicant shall estimate the algebraic maximum wind speed 
at a given pressure level as follows and shall repeat the process for 
each pressure level.

[[Page 824]]

    (A) For each month, an applicant shall calculate the monthly mean 
wind speed (Waz) for 360 azimuths using equation B3;
    (B) An applicant shall select the maximum monthly mean wind speed 
from the 360 azimuths;
    (C) An applicant shall repeat subparagraphs (c)(4)(iii)(A) and (B) 
for each month of interest; and
    (D) An applicant shall select the maximum mean wind speed from the 
range of months. The absolute value of this wind is designated 
Wmax for the current pressure level.
    (iv) An applicant shall calculate wind speed using the means for 
winds from the West (u) and winds from the North (v). An applicant shall 
use equation B3 to resolve the winds to a specific azimuth bearing.
[GRAPHIC] [TIFF OMITTED] TR19OC00.057

where:

az = wind azimuth
u = West zonal wind component
v = North zonal wind component
Waz = mean wind speed at azimuth for each month

    (v) An applicant shall estimate the interval fall time over a height 
interval assuming the initial descent velocity is equal to the terminal 
velocity (VT). An applicant shall use equations B4 through B6 
to estimate the fall time over a given height interval.
[GRAPHIC] [TIFF OMITTED] TR19OC00.058

[GRAPHIC] [TIFF OMITTED] TR19OC00.059

[GRAPHIC] [TIFF OMITTED] TR19OC00.060

where:

[Delta]HTj= height difference between two mean geometric 
heights
[beta]= ballistic coefficient
--
[rho]x= mean atmospheric density for the corresponding mean geometric 
heights
 VTj = terminal velocity

    (vi) An applicant shall estimate the interval debris dispersion 
(Dj) by multiplying the interval fall time by the algebraic 
maximum mean wind speed (Wmax) as shown in equation B7.
[GRAPHIC] [TIFF OMITTED] TR19OC00.061

    (5) Once the Dj are estimated for each height interval, an applicant 
shall determine the total debris dispersion (Di) for each 
Zi using a linear interpolation and summation exercise, as 
shown below in equation B8. An applicant shall use a launch point height 
of zero equal to the surface level of the nearest GGUAS grid location.
[GRAPHIC] [TIFF OMITTED] TR19OC00.124

where:

n = number of height intervals below jth height interval

    (6) Once all the Di radii have been calculated, an 
applicant shall produce a launch area flight corridor in accordance with 
the requirements of subparagraphs (c)(6)(i)-(iv).
    (i) On a map meeting the requirements of appendix A, paragraph (b), 
an applicant shall plot the Xi position location on the 
flight azimuth for the corresponding Zi position;
    (ii) An applicant shall draw a circle of radius Di 
centered on the corresponding Xi position; and
    (iii) An applicant shall repeat the instructions in subparagraphs 
(c)(6)(i)-(ii) for each Di radius.
    (iv) The launch area of a flight corridor is the enveloping line 
that encloses the outer boundary of the Di circles as shown 
in Fig. B-1. The uprange portion of a flight corridor is described by a 
semi-circle arc that is a

[[Page 825]]

portion of either the most uprange Di dispersion circle, or 
the overflight exclusion zone (defined by subparagraph (c)(7)), 
whichever is further uprange.
    (7) An applicant shall define an overflight exclusion zone in the 
launch area in accordance with the requirements of appendix A, 
subparagraph (c)(2).
    (8) An applicant shall draw the launch area flight corridor and 
overflight exclusion zone on a map or maps that meet the requirements of 
table B-1.
[GRAPHIC] [TIFF OMITTED] TR19OC00.062

    (d) Construction of a Downrange Area of a Flight Corridor
    (1) The downrange area analysis estimates the debris dispersion for 
the downrange time points on a launch vehicle trajectory. An applicant 
shall perform the downrange area analysis using the processes and 
equations of this paragraph.
    (2) The downrange area analysis shall include trajectory positions 
at a height (the Zi-values) greater than 50,000 feet and 
nominal trajectory IIP values less than or equal to 5,000 nm. For a 
guided suborbital launch vehicle, the final IIP value for which an 
applicant must account is the launch vehicle final stage impact point. 
Each trajectory time shall be one second or less and is denoted by the 
subscript ``i'.
    (3) An applicant shall compute the downrange area of a flight 
corridor boundary in four steps, from each trajectory time increment: 
determine a reduction ratio factor; calculate the launch vehicle 
position after simulating a malfunction turn; rotate the state vector 
after the malfunction turn in the range of three degrees to one degree 
as a function of Xi distance downrange; and compute the IIP 
of the resulting trajectory. The locus of IIPs describes the boundary of 
the downrange area of a flight corridor. An applicant shall use the 
following subparagraphs, (d)(3)(i)-(v), to compute the downrange area of 
the flight corridor boundary:
    (i) Compute the downrange Distance to the final IIP position for a 
nominal trajectory as follows:
    (A) Using equations B30 through B69, determine the IIP coordinates 
([phis]max, [lambda]max) for the nominal state 
vector before the launch vehicle enters orbit where [alpha] in equation 
B30 is the nominal flight azimuth angle measured from True North.
    (B) Using the range and bearing equations of appendix A, paragraph 
(b)(3), determine

[[Page 826]]

the distance (Smax) from the launch point coordinates 
([phis]lp, [lambda]lp) to the IIP coordinates 
([phis]max, [lambda]max) computed in accordance 
with (3)(i)(A) of this paragraph.
    (C) The distance for Smax may not exceed 5000 nm. In 
cases when the actual value exceeds 5000 nm the applicant shall use 5000 
nm for Smax.
    (ii) Compute the reduction ratio factor (Fn) for each 
trajectory time increment as follows:
    (A) Using equations B30 through B69, determine the IIP coordinates 
([phis]i, [lambda]i) for the nominal state vector 
where [alpha] in equation B30 is the nominal flight azimuth angle 
measured from True North.
    (B) Using the range and bearing equations of appendix A, paragraph 
(b)(3), determine the distance (Si) from the launch point 
coordinates ([phis]lp, [lambda]lp) to the IIP 
coordinates ([phis]i, [lambda]i) computed in 
(3)(ii)(A) of this paragraph.
    (C) The reduction ratio factor is:
    [GRAPHIC] [TIFF OMITTED] TR19OC00.122
    
    (iii) An applicant shall compute the launch vehicle position and 
velocity components after a simulated malfunction turn for each 
Xi using the following method.
    (A) Turn duration ([Delta]t) = 4 sec.
    (B) Turn angle ([thetas])
    [GRAPHIC] [TIFF OMITTED] TR19OC00.123
    
    The turn angle equations perform a turn in the launch vehicle's yaw 
plane, as depicted in figure B-2.
[GRAPHIC] [TIFF OMITTED] TR19OC00.063

    (C) Launch vehicle velocity magnitude at the beginning of the turn 
(Vb) and velocity magnitude at the end of the turn 
(Ve)
[GRAPHIC] [TIFF OMITTED] TR19OC00.064

[GRAPHIC] [TIFF OMITTED] TR19OC00.065


[[Page 827]]


    (D) Average velocity magnitude over the turn duration (V)
    [GRAPHIC] [TIFF OMITTED] TR19OC00.066
    
    (E) Velocity vector path angle ([gamma]i) at turn epoch
    [GRAPHIC] [TIFF OMITTED] TR19OC00.121
    
    (F) Launch vehicle position components at the end of turn duration
    [GRAPHIC] [TIFF OMITTED] TR19OC00.067
    
where: g1 = 32.17405 ft/sec\2\
    (G) Launch vehicle velocity components at the end of turn duration

[[Page 828]]

[GRAPHIC] [TIFF OMITTED] TR19OC00.068

    (iv) An applicant shall rotate the trajectory state vector at the 
end of the turn duration to the right and left to define the right-
lateral flight corridor boundary and the left-lateral flight corridor 
boundary, respectively. An applicant shall perform the trajectory 
rotation in conjunction with a trajectory transformation from the 
X90, Y90, Z90, X90, 
Y90, Z90, components to E, N, U, E, N, U. The 
trajectory subscripts ``R'' and ``L'' from equations B15 through B26 
have been discarded to reduce the number of equations. An applicant 
shall transform from to E,N,U,E,N,U to E,F,G,E,F,G. An applicant shall 
use the equations of paragraph (d)(3)(iv)(A)-(F) to produce the EFG 
components necessary to estimate each instantaneous impact point.
    (A) An applicant must calculate the flight angle ([alpha])
    [GRAPHIC] [TIFF OMITTED] TR19OC00.069
    
    [GRAPHIC] [TIFF OMITTED] TR19OC00.101
    
    (B) An applicant shall transform 
X90,Y90,Z90 to E,N,U
[GRAPHIC] [TIFF OMITTED] TR19OC00.102


[[Page 829]]


    (C) An applicant shall transform to X90, Y90, 
Z90 to E, N, U.
[GRAPHIC] [TIFF OMITTED] TR19OC00.103

    (D) An applicant shall transform the launch point coordinates 
([phis]0[lambda]0,h0) to 
E0,F0,G0
[GRAPHIC] [TIFF OMITTED] TR19OC00.104

    (E) An applicant shall transform E,N,U to 
E90,F90,G90
[GRAPHIC] [TIFF OMITTED] TR19OC00.047

    (F) An applicant shall transform to E,N,U TO E,F,G
    [GRAPHIC] [TIFF OMITTED] TR19OC00.071
    
    (v) The IIP computation implements an iterative solution to the 
impact point problem. An applicant shall solve equations B46 through 
B69, with the appropriate substitutions, up to a maximum of five times. 
Each repetition of the equations provides a

[[Page 830]]

more accurate prediction of the IIP. An applicant shall use the required 
IIP computations of paragraphs (d)(3)(v)(A)-(W) below. An applicant 
shall use this IIP computation for both the left-and right-lateral 
offsets. The IIP computations will result in latitude and longitude 
pairs for the left-lateral flight corridor boundary and the right-
lateral flight corridor boundary. An applicant shall use the lines 
connecting the latitude and longitude pairs to describe the entire 
downrange area boundary of the flight corridor up to 5000 nm or a final 
stage impact dispersion area.
    (A) An applicant shall approximate the radial distance 
(rk,l) from the geocenter to the IIP. The distance from the 
center of the Earth ellipsoid to the launch point shall be used for the 
initial approximation of rk,l as shown in equation B46.
[GRAPHIC] [TIFF OMITTED] TR19OC00.072

    (B) An applicant shall compute the radial distance (r) from the 
geocenter to the launch vehicle position.
[GRAPHIC] [TIFF OMITTED] TR19OC00.073

    If r < rk,l then the launch vehicle position is below the 
Earth's surface and an impact point cannot be computed. An applicant 
must restart the calculations with the next trajectory state vector.
    (C) An applicant shall compute the inertial velocity components.
    [GRAPHIC] [TIFF OMITTED] TR19OC00.074
    
where: [omega] = 4.178074x10-3 deg/sec

    (D) An applicant shall compute the magnitude of the inertial 
velocity vector.
[GRAPHIC] [TIFF OMITTED] TR19OC00.075

    (E) An applicant shall compute the eccentricity of the trajectory 
ellipse multiplied by the cosine of the eccentric anomaly at epoch 
[egr]c).
[GRAPHIC] [TIFF OMITTED] TR19OC00.076

where: K = 1.407644x10\16\ ft\3\/sec\2\

    (F) An applicant shall compute the semi-major axis of the trajectory 
ellipse (a\t\).
[GRAPHIC] [TIFF OMITTED] TR19OC00.077

    If at 0 or at then the trajectory orbit is not elliptical, but is 
hyperbolic or parabolic, and an impact point cannot be computed. The 
launch vehicle has achieved escape velocity and the applicant may 
terminate computations.
    (G) An applicant shall compute the eccentricity of the trajectory 
ellipse multiplied by the sine of the eccentric anomaly at epoch 
[egr]s).
[GRAPHIC] [TIFF OMITTED] TR19OC00.078


[[Page 831]]


    (H) An applicant shall compute the eccentricity of the trajectory 
ellipse squared [egr]\2\).
[GRAPHIC] [TIFF OMITTED] TR19OC00.079

    If at(1-[egr])-aE]  0 and [egr] 
= 0 then the trajectory perigee height is positive and an 
impact point cannot be computed. The launch vehicle has achieved Earth 
orbit and the applicant may terminate computations.
    (I) An applicant shall compute the eccentricity of the trajectory 
ellipse multiplied by the cosine of the eccentric anomaly at impact 
([egr]ck).
[GRAPHIC] [TIFF OMITTED] TR19OC00.080

    (J) An applicant shall compute the eccentricity of the trajectory 
ellipse multiplied by the sine of the eccentric anomaly at impact 
([egr]sk).
[GRAPHIC] [TIFF OMITTED] TR19OC00.081

    If [egr]sk < 0 then the trajectory orbit does not 
intersect the Earth's surface and an impact point cannot be computed. 
The launch vehicle has achieved Earth orbit and the applicant may 
terminate computations.
    (K) An applicant shall compute the cosine of the difference between 
the eccentric anomaly at impact and the eccentric anomaly at epoch 
([Delta][egr]ck).
[GRAPHIC] [TIFF OMITTED] TR19OC00.082

    (L) An applicant shall compute the sine of the difference between 
the eccentric anomaly at impact and the eccentric anomaly at epoch 
([Delta][egr]sk).
[GRAPHIC] [TIFF OMITTED] TR19OC00.083

    (M) An applicant shall compute the f-series expansion of Kepler's 
equations.
[GRAPHIC] [TIFF OMITTED] TR19OC00.084

    (N) An applicant shall compute the g-series expansion of Kepler's 
equations.
[GRAPHIC] [TIFF OMITTED] TR19OC00.085

    (O) An applicant shall compute the E,F,G coordinates at impact 
(Ei,Fi,Gi).

[[Page 832]]

[GRAPHIC] [TIFF OMITTED] TR19OC00.086

    (P) An applicant shall approximate the distance from the geocenter 
to the launch vehicle position at impact (rk,2).
[GRAPHIC] [TIFF OMITTED] TR19OC00.087

where:

aE = 20925646.3255 ft
e\2\ = 0.00669437999013
    (Q) An applicant shall let rk+1,1 = rk,2, 
substitute rk+1,1 for rk,1 in equation B55 and 
repeat equations B55--B64 up to four more times increasing ``k'' by an 
increment of one on each loop (e.g. k[egr]{1, 2, 3, 4, 5{time} ). If 
[verbar]r5,1-r5,2[verbar]  1 then the 
iterative solution does not converge and an impact point does not meet 
the accuracy tolerance of plus or minus one foot. An applicant must try 
more iterations, or restart the calculations with the next trajectory 
state vector.
    (R) An applicant shall compute the difference between the eccentric 
anomaly at impact and the eccentric anomaly at epoch ([Delta][egr]).
[GRAPHIC] [TIFF OMITTED] TR19OC00.088

    (S) An applicant shall compute the time of flight from epoch to 
impact (t).
[GRAPHIC] [TIFF OMITTED] TR19OC00.089

    (T) An applicant shall compute the geocentric latitude at impact 
([phis]').
[GRAPHIC] [TIFF OMITTED] TR19OC00.090

Where: +90[deg][phis]'i -90[deg]

    (U) An applicant shall compute the geodetic latitude at impact 
([phis]).
[GRAPHIC] [TIFF OMITTED] TR19OC00.091

Where: +90[deg][phis]i -90[deg]

    (V) An applicant shall compute the East longitude at impact 
([lambda]).
[GRAPHIC] [TIFF OMITTED] TR19OC00.092

    (W) If the range from the launch point to the impact point is equal 
to or greater than 5000 nm, an applicant shall terminate IIP 
computations.
    (4) For a guided suborbital launch vehicle, an applicant shall 
define a final stage impact dispersion area as part of the flight 
corridor and show the area on a map using the following procedure:
    (i) For equation B70 below, an applicant shall use an apogee 
altitude (Hap) corresponding to the highest altitude reached

[[Page 833]]

by the launch vehicle final stage in the applicant's launch vehicle 
trajectory analysis done in accordance with paragraph (b)(1)(ii).
    (ii) An applicant shall define the final stage impact dispersion 
area by using a dispersion factor [DISP(Hap)] as shown below. 
An applicant shall calculate the impact dispersion radius (R) for the 
final launch vehicle stage. An applicant shall set R equal to the 
maximum apogee altitude (Hap) multiplied by the dispersion 
factor as shown below:
[GRAPHIC] [TIFF OMITTED] TR19OC00.093

where: DISP(Hap) = 0.05

    (5) An applicant shall combine the launch area and downrange area 
flight corridor and any final stage impact dispersion area for a guided 
suborbital launch vehicle.
    (i) On the same map with the launch area flight corridor, an 
applicant shall plot the latitude and longitude positions of the left 
and right sides of the downrange area of the flight corridor calculated 
in accordance with subparagraph (d)(3).
    (ii) An applicant shall connect the latitude and longitude positions 
of the left side of the downrange area of the flight corridor 
sequentially starting with the last IIP calculated on the left side and 
ending with the first IIP calculated on the left side. An applicant 
shall repeat this procedure for the right side.
    (iii) An applicant shall connect the left sides of the launch area 
and downrange portions of the flight corridor. An applicant shall repeat 
this procedure for the right side.
    (iv) An applicant shall plot the overflight exclusion zone defined 
in subparagraph (c)(7).
    (v) An applicant shall draw any impact dispersion area on the 
downrange map with the center of the impact dispersion area on the 
launch vehicle final stage impact point obtained from the applicant's 
launch vehicle trajectory analysis done in accordance with subparagraph 
(b)(1)(ii).

                      (e) Evaluate the Launch Site

    (1) An applicant shall evaluate the flight corridor for the presence 
of populated areas. If no populated area is located within the flight 
corridor, then no additional steps are necessary.
    (2) If a populated area is located in an overflight exclusion zone, 
an applicant may modify its proposal or demonstrate that there are times 
when no people are present or that the applicant has an agreement in 
place to evacuate the public from the overflight exclusion zone during a 
launch.
    (3) If a populated area is located within the flight corridor, an 
applicant may modify its proposal or complete an overflight risk 
analysis in accordance with appendix C.



Sec. Appendix C to Part 420--Risk Analysis

                            (a) Introduction

    (1) This appendix provides a method for an applicant to estimate the 
expected casualty (Ec) for a launch of a guided expendable 
launch vehicle using a flight corridor generated either by appendix A or 
appendix B. This appendix also provides an applicant options to simplify 
the method where population at risk is minimal.
    (2) An applicant shall perform a risk analysis when a populated area 
is located within a flight corridor defined by either appendix A or 
appendix B. If the estimated expected casualty exceeds 30x10 
-6, an applicant may either modify its proposal, or if the 
flight corridor used was generated by the appendix A method, use the 
appendix B method to narrow the flight corridor and then redo the 
overflight risk analysis pursuant to this appendix. If the estimated 
expected casualty still exceeds 30x10 -6 the FAA will not 
approve the location of the proposed launch point.

                          (b) Data Requirements

    (1) An applicant shall obtain the data specified by subparagraphs 
(b)(2) and (3) and summarized in table C-1. Table C-1 provides sources 
where an applicant may obtain data acceptable to the FAA. An applicant 
must also employ the flight corridor information from appendix A or B, 
including flight azimuth and, for an appendix B flight corridor, 
trajectory information.
    (2) Population data. Total population (N) and the total landmass 
area within a populated area (A) are required. Population data up to and 
including 100 nm from the launch point are required at the U.S. census 
block group level. Population data downrange from 100 nm are required at 
no greater than 1[deg] x 1[deg] latitude/longitude grid coordinates.
    (3) Launch vehicle data. Launch vehicle data consist of the launch 
vehicle failure probability (Pf), the launch vehicle 
effective casualty area (Ac), trajectory position data, and 
the overflight dwell time (td). The failure probability is a 
constant (Pf = 0.10) for a guided orbital or suborbital 
expendable launch vehicle. Table C-3 provides effective casualty area 
data based on IIP range. Trajectory position information is provided 
from distance computations provided by this appendix for an appendix A 
flight corridor, or trajectory data used in appendix B for an appendix B 
flight corridor. The dwell time (td) may be determined from 
trajectory data produced when creating an appendix B flight corridor.

[[Page 834]]



            Table C-1--Overflight Analysis Data Requirements
------------------------------------------------------------------------
        Data category               Data item            Data source
------------------------------------------------------------------------
Population Data.............  Total population      Within 100 nm of the
                               within a populated    launch point: U.S.
                               area (N).             census data at the
                                                     census block-group
                                                     level. Downrange
                                                     from 100 nm beyond
                                                     the launch point,
                                                     world population
                                                     data are available
                                                     from:
                              Total landmass area   Carbon Dioxide
                               within the            Information
                               populated area (A).   Analysis Center
                                                     (CDIAC) Oak Ridge
                                                     National Laboratory
                                                    Database--Global
                                                     Population
                                                     Distribution
                                                     (1990), Terrestrial
                                                     Area and Country
                                                     Name Information on
                                                     a One by One Degree
                                                     Grid Cell Basis
                                                     (DB1016 (8-1996)
Launch Vehicle Data.........  Failure probability-- N/A.
                               Pf = 0.10.
                              Effective casualty    See table C-3.
                               area (Ac).
                              Overflight dwell      Determined by range
                               time.                 from the launch
                                                     point or trajectory
                                                     used by applicant.
                              Nominal trajectory    See appendix B,
                               data (for an          table B-1.
                               appendix B flight
                               corridor only).
------------------------------------------------------------------------

              (c) Estimating Corridor Casualty Expectation

    (1) A corridor casualty expectation [EC(Corridor)] 
estimate is the sum of the expected casualty measurement of each 
populated area inside a flight corridor.
    (2) An applicant shall identify and locate each populated area in 
the proposed flight corridor.
    (3) An applicant shall determine the probability of impact in each 
populated area using the procedures in subparagraphs (5) or (6) of this 
paragraph. Figures C-1 and C-2 illustrate an area considered for 
probability of impact (Pi ) computations by the dashed-lined 
box around the populated area within a flight corridor, and figure C-3 
illustrates a populated area in a final stage impact dispersion area. An 
applicant shall then estimate the EC for each populated area 
in accordance with subparagraphs (7) and (8) of this paragraph.
    (4) The Pi computations do not directly account for 
populated areas whose areas are bisected by an appendix A flight 
corridor centerline or an appendix B nominal trajectory ground trace. 
Accordingly, an applicant must evaluate Pi for each of the 
bi-sections as two separate populated areas, as shown in figure C-4, 
which shows one bi-section to the left of an appendix A flight 
corridor's centerline and one to its right.
    (5) Probability of impact (Pi) computations for a 
populated area in an appendix A flight corridor. An applicant shall 
compute Pi for each populated area using the following 
method:
    (i) For the launch and downrange areas, but not for a final stage 
impact dispersion area for a guided suborbital launch vehicle, an 
applicant shall compute Pi for each populated area using the 
following equation:
[GRAPHIC] [TIFF OMITTED] TR19OC00.094

where:

x1, x2 = closest and farthest downrange distance 
(nm) along the flight corridor centerline to the populated area (see 
figure C-1)
y1, y2 = closest and farthest cross range distance 
(nm) to the populated area measured from the flight corridor centerline 
(see figure C-1)
[sigma]y = one-third of the cross range distance from the 
centerline to the flight corridor boundary (see figure C-1)
exp = exponential function (e \x\)
Pf = probability of failure = 0.10
R = IIP range rate (nm/sec) (see table C-2)
C = 643 seconds (constant)

[[Page 835]]



                 Table C-2--IIP Range Rate vs. IIP Range
------------------------------------------------------------------------
                                                              IIP range
                      IIP range  (nm)                         rate  (nm/
                                                                  s)
------------------------------------------------------------------------
0-75.......................................................         0.75
76-300.....................................................         1.73
301-900....................................................         4.25
901-1700...................................................         8.85
1701-2600..................................................        19.75
2601-3500..................................................        42.45
3501-4500..................................................        84.85
4501-5250..................................................       154.95
------------------------------------------------------------------------

    (ii) For each populated area within a final stage impact dispersion 
area, an applicant shall compute Pi using the following 
method:
    (A) An applicant shall estimate the probability of final stage 
impact in the x and y sectors of each populated area within the final 
stage impact dispersion area using equations C2 and C3:
[GRAPHIC] [TIFF OMITTED] TR19OC00.095

where:

X1, X2 = closest and farthest downrange distance, 
measured along the flight corridor centerline, measured from the nominal 
impact point to the populated area (see figure C-3)
[sigma]x = one-third of the impact dispersion radius (see 
figure C-3)
exp = exponential function (e \x\)
[GRAPHIC] [TIFF OMITTED] TR19OC00.096

where:

y1, y2 = closest and farthest cross range distance 
to the populated area measured from the flight corridor centerline (see 
figure C-3)
[sigma]y = one-third of the impact dispersion radius (see 
figure C-3)
exp = exponential function (e \x\)

    (B) If a populated area intersects the impact dispersion area 
boundary so that the x2 or y2 distance would 
otherwise extend outside the impact dispersion area, the x2 
or y2 distance should be set equal to the impact dispersion 
area radius. The x2 distance for populated area A in figure 
C-3 is an example. If a populated area intersects the flight azimuth, an 
applicant shall solve equation C3 by obtaining the solution in two 
parts. An applicant shall determine, first, the probability between 
y1 = 0 and y2 = a and, second, the probability 
between y1 = 0 and y2 = b, as depicted in figure 
C-4. The probability Py is then equal to the sum of the 
probabilities of the two parts. If a populated area intersects the line 
that is normal to the flight azimuth on the impact point, an applicant 
shall solve equation C2 by obtaining the solution in two parts in the 
same manner as with the values of x.
    (C) An applicant shall calculate the probability of impact for each 
populated area using equation C4 below:
[GRAPHIC] [TIFF OMITTED] TR19OC00.097

where: Ps = 1-Pf = 0.90

[[Page 836]]

[GRAPHIC] [TIFF OMITTED] TR19OC00.098

    (6) Probability of impact computations for a populated area in an 
appendix B flight corridor. An applicant shall compute Pi 
using the following method:
    (i) For the launch and downrange areas, but not for a final stage 
impact dispersion area for a guided suborbital launch vehicle, an 
applicant shall compute Pi for each populated area using the 
following equation:
[GRAPHIC] [TIFF OMITTED] TR19OC00.099

where:

y1,y2 = closest and farthest cross range distance 
(nm) to a populated area measured from the nominal trajectory IIP ground 
trace (see figure C-2)
[sigma]y = one-third of the cross range distance (nm) from 
nominal trajectory to the flight corridor boundary (see figure C-2)
exp = exponential function (e\x\)
Pf = probability of failure = 0.10
t = flight time from lift-off to orbital insertion (seconds)
td = overflight dwell time (seconds)

    (ii) For each populated area within a final stage impact dispersion 
area, an applicant shall compute Pi using the following 
method:
    (A) An applicant shall estimate the probability of final stage 
impact in the x and y sectors of each populated area within the final 
stage impact dispersion area using equations C6 and C7:

[[Page 837]]

[GRAPHIC] [TIFF OMITTED] TR19OC00.100

where:

x1, x2 = closest and farthest downrange distance, 
measured along nominal trajectory IIP ground trace, measured from the 
nominal impact point to the populated area (see figure C-3)
[sigma]x = one-third of the impact dispersion radius (see 
figure C-3)
exp = exponential function (e\x\)
[GRAPHIC] [TIFF OMITTED] TR19OC00.105

where:

y1, y2 = closest and farthest cross range distance 
to the populated area measured from the nominal trajectory IIP ground 
trace (see figure C-3)
[sigma]y = one-third of the impact dispersion radius (see 
figure C-3)
exp = exponential function (e\x\)

    (B) If a populated area intersects the impact dispersion area 
boundary so that the x2 or y2 distance would 
otherwise extend outside the impact dispersion area, the x2 
or y2 distance should be set equal to the impact dispersion 
area radius. The x2 distance for populated area A in figure 
C-3 is an example. If a populated area intersects the flight azimuth, an 
applicant shall solve equation C7 by obtaining the solution in two 
parts. An applicant shall determine, first, the probability between 
y1 = 0 and y2 = a and, second, the probability 
between y1 = 0 and y2 = b, as depicted in figure 
C-4. The probability Py is then equal to the sum of the 
probabilities of the two parts. If a populated area intersects the line 
that is normal to the flight azimuth on the impact point, an applicant 
shall solve equation C6 by obtaining the solution in two parts in a 
similar manner with the values of x.
    (C) An applicant shall calculate the probability of impact for each 
populated area using equation C8 below:
[GRAPHIC] [TIFF OMITTED] TR19OC00.106

where: Ps = 1-Pf = 0.90


[[Page 838]]


[GRAPHIC] [TIFF OMITTED] TR19OC00.107


[[Page 839]]


[GRAPHIC] [TIFF OMITTED] TR19OC00.108

    (7) Using the Pi calculated in either subparagraph (c)(5) 
or (6) of this paragraph, an applicant shall calculate the casualty 
expectancy for each populated area within the flight corridor in 
accordance with equation C9. Eck is the casualty expectancy 
for a given populated area as shown in equation C9, where individual 
populated areas are designated with the subscript ``k''.
[GRAPHIC] [TIFF OMITTED] TR19OC00.109

where:


[[Page 840]]


Ac = casualty area (from table C-3)
Ak = populated area
Nk = population in Ak

                 Table C-3--Effective Casualty Area (Miles \2\) as a Function of IIP Range (NM)
----------------------------------------------------------------------------------------------------------------
                                     Orbital launch vehicles                                        Suborbital
-------------------------------------------------------------------------------------------------     launch
                                                                                                     vehicles
Instantaneous impact point range       Small          Medium       Medium large        Large     ---------------
        (nautical miles)                                                                              Guided
----------------------------------------------------------------------------------------------------------------
0-49............................     3.14 x 10-2     1.28 x 10-1     4.71 x 10-2     8.59 x 10-2      4.3 x 10-1
50-1749.........................     2.47 x 10-2     2.98 x 10-2     9.82 x 10-3     2.45 x 10-2      1.3 x 10-1
1750-5000.......................     3.01 x 10-4     5.52 x 10-3     7.82 x 10-3     1.14 x 10-2     3.59 x 10-6
----------------------------------------------------------------------------------------------------------------

    (8) An applicant shall estimate the total corridor risk using the 
following summation of risk:
[GRAPHIC] [TIFF OMITTED] TR19OC00.110

    (9) Alternative casualty expectancy (EC ) analyses. An 
applicant may employ specified variations to the analysis defined by 
subparagraphs (c)(1)-(8). Those variations are identified in 
subparagraphs (9)(i) through (vi) of this paragraph. Subparagraphs (i) 
through (iv) permit an applicant to make conservative assumptions that 
would lead to an overestimation of the corridor EC compared 
with the analysis defined by subparagraphs (c)(1)-(8). In subparagraphs 
(v) and (vi), an applicant that would otherwise fail the analysis 
prescribed by subparagraphs (c)(1)-(8) may avoid (c)(1)-(8)'s 
overestimation of the probability of impact in each populated area. An 
applicant employing a variation shall identify the variation used, show 
and discuss the specific assumptions made to modify the analysis defined 
by subparagraphs (c)(1)-(8), and demonstrate how each assumption leads 
to overestimation of the corridor EC compared with the 
analysis defined by subparagraphs (c)(1)-(c)(8).
    (i) Assume that Px and Py have a value of 1.0 
for all populated areas.
    (ii) Combine populated areas into one or more larger populated 
areas, and use a population density for the combined area or areas equal 
to the most densely populated area.
    (iii) For any given populated area, assume Py has a value 
of one.
    (iv) For any given Px sector (an area spanning the width 
of a flight corridor and bounded by two time points on the trajectory 
IIP ground trace) assume Py has a value of one and use a 
population density for the sector equal to the most densely populated 
area.
    (v) For a given populated area, divide the populated area into 
smaller rectangles, determine Pi for each individual 
rectangle, and sum the individual impact probabilities to determine 
Pi for the entire populated area.
    (vi) For a given populated area, use the ratio of the populated area 
to the area of the Pi rectangle from the subparagraph (c)(1)-
(8) analysis.

                        (d) Evaluation of Results

    (1) If the estimated expected casualty does not exceed 
30x10-6, the FAA will approve the launch site location.
    (2) If the estimated expected casualty exceeds 30x10-6, 
then an applicant may either modify its proposal, or, if the flight 
corridor used was generated by the appendix A method, use the appendix B 
method to narrow the flight corridor and then perform another appendix C 
risk analysis.

[Docket No. FAA-1999-5833, 65 FR 62861, Oct. 19, 2000, as amended by 
Amdt. 420-2, 71 FR 51972, Aug. 31, 2006]



Sec. Appendix D to Part 420--Impact Dispersion Areas and Casualty 

      Expectancy Estimate for an Unguided Suborbital Launch Vehicle

                            (a) Introduction

    (1) This appendix provides a method for determining the 
acceptability of the location of a launch point from which an unguided 
suborbital launch vehicle would be launched. The appendix describes how 
to define an overflight exclusion zone and impact dispersion areas, and 
how to evaluate whether the public risk presented by the launch of an

[[Page 841]]

unguided suborbital launch vehicle remains at acceptable levels.
    (2) An applicant shall base its analysis on an unguided suborbital 
launch vehicle whose final launch vehicle stage apogee represents the 
intended use of the launch point.
    (3) An applicant shall use the apogee of each stage of an existing 
unguided suborbital launch vehicle with a final launch vehicle stage 
apogee equal to the one proposed, and calculate each impact range and 
dispersion area using the equations provided.
    (4) This appendix also provides a method for performing an impact 
risk analysis that estimates the expected casualty (Ec) 
within each impact dispersion area. This appendix provides an applicant 
options to simplify the method where population at risk is minimal.
    (5) If the estimated Ec is less than or equal to 
30x10-6, the FAA will approve the launch point for unguided 
suborbital launch vehicles. If the estimated Ec exceeds 
30x10-6, the proposed launch point will fail the launch site 
location review.

                          (b) Data Requirements

    (1) An applicant shall employ the apogee of each stage of an 
existing unguided suborbital launch vehicle whose final stage apogee 
represents the maximum altitude to be reached by unguided suborbital 
launch vehicles launched from the launch point. The apogee shall be 
obtained from one or more actual flights of an unguided suborbital 
launch vehicle launched at an 84 degree elevation.
    (2) An applicant shall satisfy the map and plotting data 
requirements of appendix A, paragraph (b).
    (3) Population data. An applicant shall use total population (N) and 
the total landmass area within a populated area (A) for all populated 
areas within an impact dispersion area. Population data up to and 
including 100 nm from the launch point are required at the U.S. census 
block group level. Population data downrange from 100 nm are required at 
no greater than 1[deg] x 1[deg] latitude/longitude grid coordinates.

        (c) Overflight Exclusion Zone and Impact Dispersion Areas

    (1) An applicant shall choose a flight azimuth from a launch point.
    (2) An applicant shall define an overflight exclusion zone as a 
circle with a radius of 1600 feet centered on the launch point.
    (3) An applicant shall define an impact dispersion area for each 
stage of the suborbital launch vehicle chosen in accordance with 
subparagraph (b)(1) in accordance with the following:
    (i) An applicant shall calculate the impact range for the final 
launch vehicle stage (Dn). An applicant shall set 
Dn equal to the last stage apogee altitude (Hn) 
multiplied by an impact range factor [IP(Hn)] in accordance 
with the following:
[GRAPHIC] [TIFF OMITTED] TR19OC00.111

where:

IP(Hn) = 0.4 for an apogee less than 100 km, and
IP(Hn) = 0.7 for an apogee of 100 km or greater.

    (ii) An applicant shall calculate the impact range for each 
intermediate stage (Di), where i [egr] {1, 2, 3, . . . (n- 
1){time} , and where n is the total number of launch vehicle stages. 
Using the apogee altitude (Hi) of each intermediate stage, an 
applicant shall use equation D1 to compute the impact range of each 
stage by substituting Hi for Hn. An applicant 
shall use the impact range factors provided by equation D1.
    (iii) An applicant shall calculate the impact dispersion radius for 
the final launch vehicle stage (Rn). An applicant shall set 
Rn equal to the last stage apogee altitude (Hn) 
multiplied by an impact dispersion factor [DISP(Hn)] in 
accordance with the following:
[GRAPHIC] [TIFF OMITTED] TR19OC00.112

where:

DISP(Hn) = 0.4 for an apogee less than 100 km, and
DISP(Hn) = 0.7 for an apogee of 100 km or greater.

    (iv) An applicant shall calculate the impact dispersion radius for 
each intermediate stage (Ri), where i [egr] {1, 2, 3, . . . 
(n- 1){time}  and where n is the total number of launch vehicle stages. 
Using the apogee altitude (Hi) of each intermediate stage, an 
applicant shall use equation D2 to compute an impact dispersion radius 
of each stage by substituting Hi for Hn. An 
applicant shall use the dispersion factors provided by equation D2.
    (4) An applicant shall display an overflight exclusion zone, each 
intermediate and final stage impact point (Di through 
Dn), and each impact dispersion area for the intermediate and 
final launch vehicle stages on maps in accordance with paragraph (b)(2).

[[Page 842]]

[GRAPHIC] [TIFF OMITTED] TR19OC00.113

 (d) Evaluate the Overflight Exclusion Zone and Impact Dispersion Areas

    (1) An applicant shall evaluate the overflight exclusion zone and 
each impact dispersion area for the presence of any populated areas. If 
an applicant determines that no populated area is located within the 
overflight exclusion zone or any impact dispersion area, then no 
additional steps are necessary.
    (2) If a populated area is located in an overflight exclusion zone, 
an applicant may modify its proposal or demonstrate that there are times 
when no people are present or that the applicant has an agreement in 
place to evacuate the public from the overflight exclusion zone during a 
launch.
    (3) If a populated area is located within any impact dispersion 
area, an applicant may modify its proposal and define a new overflight 
exclusion zone and new impact dispersion areas, or perform an impact 
risk analysis in accordance with paragraph (e).

                        (e) Impact Risk Analysis

    (1) An applicant shall estimate the expected average number of 
casualties, EC, within the impact dispersion areas according 
to the following method:
    (i) An applicant shall calculate the Ec by summing the 
impact risk for the impact dispersion areas of the final launch vehicle 
stage and all intermediate stages. An applicant shall estimate 
Ec for the impact dispersion area of each stage by using 
equations D3 through D7 for each of the populated areas located within 
the impact dispersion areas.
    (ii) An applicant shall estimate the probability of impacting inside 
the X and Y sectors of each populated area within each impact dispersion 
area using equations D3 and D4:
[GRAPHIC] [TIFF OMITTED] TR19OC00.114

where:

x1, x2 = closest and farthest downrange distance 
to populated area (see figure D-2)
[sigma]x = one-third of the impact dispersion radius (see 
figure D-2)
exp = exponential function (e\x\)

[[Page 843]]

[GRAPHIC] [TIFF OMITTED] TR19OC00.115

where:

y1, y2 = closest and farthest cross range distance 
to the populated area (see figure D-2)
[sigma]y = one-third of the impact dispersion radius (see 
figure D-2)
exp = exponential function (e\x\)
[GRAPHIC] [TIFF OMITTED] TR19OC00.116

    (iii) If a populated area intersects the impact dispersion area 
boundary so that the x2 or y2 distance would 
otherwise extend outside the impact dispersion area, the x2 
or y2 distance should be set equal to the impact dispersion 
area radius. The x2 distance for populated area A in figure 
D-2 is an example.
    (iv) If a populated area intersects the flight azimuth, an applicant 
shall solve equation D4 by obtaining the solution in two parts. An 
applicant shall determine, first, the probability between y1 
= 0 and y2 = a and, second, the probability between 
y1 = 0 and y2 = b, as depicted in figure D-3. The 
probability Py is then equal to the sum of the probabilities 
of the two parts. If a populated area intersects the line that is normal 
to the flight azimuth on the impact point, an applicant shall solve 
equation D3 by obtaining the solution in two parts in the same manner as 
with the values of x.

[[Page 844]]

[GRAPHIC] [TIFF OMITTED] TR19OC00.117

    (v) An applicant shall calculate the probability of impact 
(Pi) for each populated area using the following equation:
[GRAPHIC] [TIFF OMITTED] TR19OC00.118

where:

Ps = probability of success = 0.98

    (vi) An applicant shall calculate the casualty expectancy for each 
populated area. Eck is the casualty expectancy for 
a given populated area as shown in equation D6, where individual 
populated areas are designated with the subscript ``k''.
[GRAPHIC] [TIFF OMITTED] TR19OC00.119

where:

k { {1, 2, 3, . . . , n{time} 
Ac = casualty area (from table D-1)
Ak = populated area
Nk = population in Ak

        Table D-1--Effective Casualty Area (Ac) vs. Impact Range
------------------------------------------------------------------------
                                                             Effective
                    Impact range (nm)                      casualty area
                                                            (miles\2\)
------------------------------------------------------------------------
0-4.....................................................          9x10-3
5-49....................................................          9x10-3
50-1,749................................................        1.1x10-5
1,750-4,999.............................................        3.6x10-6
5,000-more..............................................        3.6x10-6
------------------------------------------------------------------------

    (vii) An applicant shall estimate the total risk using the following 
summation of risk:

[[Page 845]]

[GRAPHIC] [TIFF OMITTED] TR19OC00.120

    (viii) Alternative casualty expectancy (Ec) analysis. An 
applicant may employ specified variations to the analysis defined by 
subparagraphs (d)(1)(i)-(vii). Those variations are identified in 
subparagraphs (viii)(A) through (F) of this paragraph. Subparagraphs (A) 
through (D) permit an applicant to make conservative assumptions that 
would lead to an overestimation of Ec compared with the 
analysis defined by subparagraphs (d)(1)(i)-(vii). In subparagraphs (E) 
and (F), an applicant that would otherwise fail the analysis prescribed 
by subparagraphs (d)(1)(i)-(vii) may avoid (d)(1)(i)-(vii)'s 
overestimation of the probability of impact in each populated area. An 
applicant employing a variation shall identify the variation used, show 
and discuss the specific assumptions made to modify the analysis defined 
by subparagraphs (d)(1)(i)-(vii), and demonstrate how each assumption 
leads to overestimation of the corridor Ec compared with the 
analysis defined by subparagraphs (d)(1)(i)-(vii).
    (A) Assume that Px and Py have a value of 1.0 
for all populated areas.
    (B) Combine populated areas into one or more larger populated areas, 
and use a population density for the combined area or areas equal to the 
most densely populated area.
    (C) For any given populated area, assume Px has a value 
of one.
    (D) For any given populated area, assume Py has a value 
of one.
    (E) For a given populated area, divide the populated area into 
smaller rectangles, determine Pi for each individual 
rectangle, and sum the individual impact probabilities to determine 
Pi for the entire populated area.
    (F) For a given populated area, use the ratio of the populated area 
to the area of the Pi rectangle used in the subparagraph 
(d)(1)(i)-(vii) analysis.
    (2) If the estimated expected casualty does not exceed 30 x 
10-6, the FAA will approve the launch point.
    (3) If the estimated expected casualty exceeds 30 x 10-6, 
then an applicant may modify its proposal and then repeat the impact 
risk analysis in accordance with this appendix D. If no set of impact 
dispersion areas exist which satisfy the FAA's risk threshold, the 
applicant's proposed launch site will fail the launch site location 
review.



Sec. Appendix E to Part 420--Tables for Explosive Site Plan

                         Table E-1--Quantity Distance Requirements for Solid Explosives
----------------------------------------------------------------------------------------------------------------
                                                    Public area     Public area      Intraline       Intraline
                                     Quantity     distance (ft.)  distance (ft.)  distance (ft.)  distance (ft.)
     Quantity (lbs.) (over)         (lbs.) (not    for division    for division    for division    for division
                                       over)            1.1             1.3             1.1             1.3
----------------------------------------------------------------------------------------------------------------
0...............................           1,000           1,250              75     D = 18 W1/3              50
1,000...........................           5,000  ..............             115  ..............              75
5,000...........................          10,000  ..............             150  ..............             100
10,000..........................          20,000  ..............             190  ..............             125
20,000..........................          30,000  ..............             215  ..............             145
30,000..........................          40,000     D = 40 W1/3             235  ..............             155
40,000..........................          50,000  ..............             250  ..............             165
50,000..........................          60,000  ..............             260  ..............             175
60,000..........................          70,000  ..............             270  ..............             185
70,000..........................          80,000  ..............             280  ..............             190
80,000..........................          90,000  ..............             195  ..............             195
90,000..........................         100,000  ..............             300  ..............             200
100,000.........................         200,000          D=2.42             375  ..............             250
                                                        W\0.577\
200,000.........................         250,000  ..............             413  ..............             275
250,000.........................         300,000     D = 50 W1/3             450  ..............             300
300,000.........................         400,000  ..............             525  ..............             350
400,000.........................         500,000  ..............             600  ..............             400
500,000.........................       1,000,000  ..............             800  ..............             500
Greater than 1,000,000..........  ..............     D = 50 W1/3      D = 8 W1/3     D = 5 W1/3
----------------------------------------------------------------------------------------------------------------
``D'' equals the minimum separation distance in feet.
``W'' equals the NEW of propellant.


[[Page 846]]


           Table E-2--Liquid Propellant Explosive Equivalents
------------------------------------------------------------------------
        Propellant combinations                Explosive equivalent
------------------------------------------------------------------------
LO2/LH2................................  The larger of: 8W2/3 where W is
                                          the weight of LO2/LH2, or
                                         14% of W.
LO2/LH2 + LO2/RP-1.....................  Sum of (20% for LO2/RP-1) + the
                                          larger of: 8W2/3 where W is
                                          the weight of LO2/LH2, or
                                         14% of W.
LO2/R-1................................  20% of W up to 500,000 pounds
                                          plus 10% of W over 500,000
                                          pounds, where W is the weight
                                          of LO2RP-1.
N2O4/N2H4 (or UDMH or UDMH/N2H4          10% of W, where W is the weight
 Mixture).                                of the propellant.
------------------------------------------------------------------------


   Table E-3--Propellant Hazard and Compatibility Groupings and Factors To Be Used When Converting Gallons of
                                             Propellant Into Pounds
----------------------------------------------------------------------------------------------------------------
                                                                                      Pounds/     At temperature
            Propellant                  Hazard  group       Compatibility  group      gallon          [deg]F
----------------------------------------------------------------------------------------------------------------
Hydrogen Peroxide.................  II                     A                               11.6               68
Hydrazine.........................  III                    C                                8.4               68
Liquid Hydrogen...................  III                    C                                0.59            -423
Liquid Oxygen.....................  II                     A                                9.5             -297
Nitrogen Tetroxide................  I                      A                               12.1               68
RP-1..............................  I                      C                                6.8               68
UDMH..............................  III                    C                                6.6               68
UDMH/Hydrazine....................  III                    C                                7.5               68
----------------------------------------------------------------------------------------------------------------


                                                                Table E-4--Hazard Group I
--------------------------------------------------------------------------------------------------------------------------------------------------------
                          Pounds of propellant                             Public area   Intragroup    Pounds of propellant     Public area   Intragroup
-------------------------------------------------------------------------      and          and     --------------------------      and          and
                                                                          incompatible   compatible                            incompatible   compatible
                                                                         ---------------------------                          --------------------------
                            Over                               Not over    Distance in  Distance in      Over       Not over    Distance in  Distance in
                                                                              feet          feet                                   feet          feet
--------------------------------------------------------------------------------------------------------------------------------------------------------
0..........................................................          100            30           25        5,000        6,000            80           60
100........................................................          200            35           30        6,000        7,000            85           65
200........................................................          300            40           35        7,000        8,000            85           65
300........................................................          400            45           35        8,000        9,000            90           70
400........................................................          500            50           40        9,000       10,000            90           70
500........................................................          600            50           40       10,000       15,000            95           75
600........................................................          700            55           40       15,000       20,000           100           80
700........................................................          800            55           45       20,000       25,000           105           80
800........................................................          900            60           45       25,000       30,000           110           85
900........................................................        1,000            60           45       30,000       35,000           110           85
1,000......................................................        2,000            65           50       35,000       40,000           115           85
2,000......................................................        3,000            70           55       40,000       45,000           120           90
3,000......................................................        4,000            75           55       45,000       50,000           120           90
4,000......................................................        5,000            80           60       50,000       60,000           125           95
60,000.....................................................       70,000           130           95      500,000      600,000           185          140
70,000.....................................................       80,000           130          100      600,000      700,000           190          145
80,000.....................................................       90,000           135          100      700,000      800,000           195          150
90,000.....................................................      100,000           135          105      800,000      900,000           200          150
100,000....................................................      125,000           140          110      900,000    1,000,000           205          155
125,000....................................................      150,000           145          110    1,000,000    2,000,000           235          175
150,000....................................................      175,000           150          115    2,000,000    3,000,000           255          190
175,000....................................................      200,000           155          115    3,000,000    4,000,000           265          200
200,000....................................................      250,000           160          120    4,000,000    5,000,000           275          210
250,000....................................................      300,000           165          125    5,000,000    6,000,000           285          215
300,000....................................................      350,000           170          130    6,000,000    7,000,000           295          220
350,000....................................................      400,000           175          130    7,000,000    8,000,000           300          225
400,000....................................................      450,000           180          135    8,000,000    9,000,000           305          230
450,000....................................................      500,000           180          135    9,000,000   10,000,000           310          235
--------------------------------------------------------------------------------------------------------------------------------------------------------


[[Page 847]]


                                                               Table E-5--Hazard Group II
--------------------------------------------------------------------------------------------------------------------------------------------------------
                          Pounds of propellant                             Public area   Intragroup    Pounds of propellant     Public area   Intragroup
-------------------------------------------------------------------------      and          and     --------------------------      and          and
                                                                          incompatible   compatible                            incompatible   compatible
                                                                         ---------------------------                          --------------------------
                            Over                               Not over    Distance in  Distance in      Over       Not over    Distance in  Distance in
                                                                              feet          feet                                   feet          feet
--------------------------------------------------------------------------------------------------------------------------------------------------------
0..........................................................          100            60           30       50,000       60,000           250          125
100........................................................          200            75           35       60,000       70,000           255          130
200........................................................          300            85           40       70,000       80,000           260          130
300........................................................          400            90           45       80,000       90,000           265          135
400........................................................          500           100           50       90,000      100,000           270          135
500........................................................          600           100           50      100,000      125,000           285          140
600........................................................          700           105           55      125,000      150,000           295          145
700........................................................          800           110           55      150,000      175,000           305          150
800........................................................          900           115           60      175,000      200,000           310          155
900........................................................        1,000           120           60      200,000      250,000           320          160
1,000......................................................        2,000           130           65      250,000      300,000           330          165
2,000......................................................        3,000           145           70      300,000      350,000           340          170
3,000......................................................        4,000           150           75      350,000      400,000           350          175
4,000......................................................        5,000           160           80      400,000      450,000           355          180
5,000......................................................        6,000           165           80      450,000      500,000           360          180
6,000......................................................        7,000           170           85      500,000      600,000           375          185
7,000......................................................        8,000           175           85      600,000      700,000           385          190
8,000......................................................        9,000           175           90      700,000      800,000           395          195
9,000......................................................       10,000           180           90      800,000      900,000           405          200
10,000.....................................................       15,000           195           95      900,000    1,000,000           410          205
15,000.....................................................       20,000           205          100    1,000,000    2,000,000           470          235
20,000.....................................................       25,000           215          105    2,000,000    3,000,000           505          255
25,000.....................................................       30,000           220          110    3,000,000    4,000,000           535          265
30,000.....................................................       35,000           225          110    4,000,000    5,000,000           555          275
35,000.....................................................       40,000           230          115    5,000,000    6,000,000           570          285
40,000.....................................................       45,000           235          120    6,000,000    7,000,000           585          295
45,000.....................................................       50,000           240          120    7,000,000    8,000,000           600          300
                                                                                                       8,000,000    9,000,000           610          305
                                                                                                       9,000,000   10,000,000           620          310
--------------------------------------------------------------------------------------------------------------------------------------------------------


                                                               Table E-6--Hazard Group III
--------------------------------------------------------------------------------------------------------------------------------------------------------
                          Pounds of propellant                             Public area   Intragroup    Pounds of propellant     Public area   Intragroup
-------------------------------------------------------------------------      and          and     --------------------------      and          and
                                                                          incompatible   compatible                            incompatible   compatible
                                                                         ---------------------------                          --------------------------
                            Over                               Not over    Distance in  Distance in      Over       Not over    Distance in  Distance in
                                                                              feet          feet                                   feet          feet
--------------------------------------------------------------------------------------------------------------------------------------------------------
0..........................................................          100           600           30       60,000       70,000         1,200          130
100........................................................          200           600           35       70,000       80,000         1,200          130
200........................................................          300           600           40       80,000       90,000         1,200          135
300........................................................          400           600           45       90,000      100,000         1,200          135
400........................................................          500           600           50      100,000      125,000         1,800          140
500........................................................          600           600           50      125,000      150,000         1,800          145
600........................................................          700           600           55      150,000      175,000         1,800          150
700........................................................          800           600           55      175,000      200,000         1,800          155
800........................................................          900           600           60      200,000      250,000         1,800          160
900........................................................        1,000           600           60      250,000      300,000         1,800          165
1,000......................................................        2,000           600           65      300,000      350,000         1,800          170
2,000......................................................        3,000           600           70      350,000      400,000         1,800          175
3,000......................................................        4,000           600           75      400,000      450,000         1,800          180
4,000......................................................        5,000           600           80      450,000      500,000         1,800          180
5,000......................................................        6,000           600           80      500,000      600,000         1,800          185
6,000......................................................        7,000           600           85      600,000      700,000         1,800          190
7,000......................................................        8,000           600           85      700,000      800,000         1,800          195
8,000......................................................        9,000           600           90      800,000      900,000         1,800          200
9,000......................................................       10,000           600           90      900,000    1,000,000         1,800          205
10,000.....................................................       15,000         1,200           95    1,000,000    2,000,000         1,800          235
15,000.....................................................       20,000         1,200          100    2,000,000    3,000,000         1,800          255
20,000.....................................................       25,000         1,200          105    3,000,000    4,000,000         1,800          265
25,000.....................................................       30,000         1,200          110    4,000,000    5,000,000         1,800          275
30,000.....................................................       35,000         1,200          110    5,000,000    6,000,000         1,800          285
35,000.....................................................       40,000         1,200          115    6,000,000    7,000,000         1,800          295
40,000.....................................................       45,000         1,200          120    7,000,000    8,000,000         1,800          300
45,000.....................................................       50,000         1,200          120    8,000,000    9,000,000         1,800          305
50,000.....................................................       60,000         1,200          125    9,000,000   10,000,000         1,800          310
--------------------------------------------------------------------------------------------------------------------------------------------------------


[[Page 848]]


          Table E-7--Distances When Explosive Equivalents Apply
------------------------------------------------------------------------
     TNT equivalent weight of propellants           Distance in feet
------------------------------------------------------------------------
                                                To public     Intraline
                   Not over                        area     unbarricaded
------------------------------------------------------------------------
100..........................................         1250            80
200..........................................         1250           100
300..........................................         1250           120
400..........................................         1250           130
500..........................................         1250           140
600..........................................         1250           150
700..........................................         1250           160
800..........................................         1250           170
900..........................................         1250           180
1,000........................................         1250           190
1,500........................................         1250           210
2,000........................................         1250           230
3,000........................................         1250           260
4,000........................................         1250           280
5,000........................................         1250           300
6,000........................................         1250           320
7,000........................................         1250           340
8,000........................................         1250           360
9,000........................................         1250           380
10,000.......................................         1250           400
15,000.......................................         1250           450
20,000.......................................         1250           490
25,000.......................................        1,250           530
30,000.......................................        1,250           560
35,000.......................................        1,310           590
40,000.......................................        1,370           620
45,000.......................................        1,425           640
50,000.......................................        1,475           660
55,000.......................................        1,520           680
60,000.......................................        1,565           700
65,000.......................................        1,610           720
70,000.......................................        1,650           740
75,000.......................................        1,685           770
80,000.......................................        1,725           780
85,000.......................................        1,760           790
90,000.......................................        1,795           800
95,000.......................................        1,825           820
100,000......................................        1,855           830
125,000......................................        2,115           900
150,000......................................        2,350           950
175,000......................................        2,565         1,000
200,000......................................        2,770         1,050
------------------------------------------------------------------------

                        PARTS 421	430 [RESERVED]



PART 431_LAUNCH AND REENTRY OF A REUSABLE LAUNCH VEHICLE (RLV)--Table of Contents




                            Subpart A_General

Sec.
431.1 Scope.
431.3 Types of reusable launch vehicle mission licenses.
431.5 Policy and safety approvals.
431.7 Payload and payload reentry determinations.
431.8 Human space flight.
431.9 Issuance of a reusable launch vehicle mission license.
431.11 Additional license terms and conditions.
431.13 Transfer of a reusable launch vehicle mission license.
431.15 Rights not conferred by a reusable launch vehicle mission 
          license.
431.16-431.20 [Reserved]

    Subpart B_Policy Review and Approval for Launch and Reentry of a 
                         Reusable Launch Vehicle

431.21 General.
431.23 Policy review.
431.25 Application requirements for policy review.
431.27 Denial of policy approval.
431.28-431.30 [Reserved]

    Subpart C_Safety Review and Approval for Launch and Reentry of a 
                         Reusable Launch Vehicle

431.31 General.
431.33 Safety organization.
431.35 Acceptable reusable launch vehicle mission risk.
431.37 Mission readiness.
431.39 Mission rules, procedures, contingency plans, and checklists.
431.41 Communications plan.
431.43 Reusable launch vehicle mission operational requirements and 
          restrictions.
431.45 Mishap investigation plan and emergency response plan.
431.47 Denial of safety approval.
431.48-431.50 [Reserved]

           Subpart D_Payload Reentry Review and Determination

431.51 General.
431.53 Classes of payloads.
431.55 Payload reentry review.
431.57 Information requirements for payload reentry review.
431.59 Issuance of payload reentry determination.
431.61 Incorporation of payload reentry determination in license 
          application.
431.62-431.70 [Reserved]

 Subpart E_Post-Licensing Requirements_Reusable Launch Vehicle Mission 
                      License Terms and Conditions

431.71 Public safety responsibility.
431.73 Continuing accuracy of license application; application for 
          modification of license.
431.75 Agreements.
431.77 Records.
431.79 Reusable launch vehicle mission reporting requirements.
431.81 Financial responsibility requirements.
431.83 Compliance monitoring.
431.85 Registration of space objects.
431.86-431.90 [Reserved]

[[Page 849]]

                     Subpart F_Environmental Review

431.91 General.
431.93 Environmental information.

    Authority: 49 U.S.C. 70101-70121.

    Source: Docket No. FAA-1999-5535, 65 FR 56658, Sept. 19, 2000, 
unless otherwise noted.



                            Subpart A_General



Sec. 431.1  Scope.

    This part prescribes requirements for obtaining a reusable launch 
vehicle (RLV) mission license and post-licensing requirements with which 
a licensee must comply to remain licensed. Requirements for preparing a 
license application are contained in part 413 of this subchapter.



Sec. 431.3  Types of reusable launch vehicle mission licenses.

    (a) Mission-specific license. A mission-specific license authorizing 
an RLV mission authorizes a licensee to launch and reenter, or otherwise 
land, one model or type of RLV from a launch site approved for the 
mission to a reentry site or other location approved for the mission. A 
mission-specific license authorizing an RLV mission may authorize more 
than one RLV mission and identifies each flight of an RLV authorized 
under the license. A licensee's authorization to conduct RLV missions 
terminates upon completion of all activities authorized by the license 
or the expiration date stated in the reentry license, whichever occurs 
first.
    (b) Operator license. An operator license for RLV missions 
authorizes a licensee to launch and reenter, or otherwise land, any of a 
designated family of RLVs within authorized parameters, including launch 
sites and trajectories, transporting specified classes of payloads to 
any reentry site or other location designated in the license. An 
operator license for RLV missions is valid for a two-year renewable 
term.



Sec. 431.5  Policy and safety approvals.

    To obtain either type of RLV mission license, an applicant must 
obtain policy and safety approvals from the FAA. Requirements for 
obtaining these approvals are contained in subparts B and C of this 
part. Only the license applicant may apply for the approvals, and may 
apply for either approval separately and in advance of submitting a 
complete license application, using the application procedures contained 
in part 413 of this subchapter.



Sec. 431.7  Payload and payload reentry determinations.

    (a) A payload determination is required to launch a payload unless 
the proposed payload is exempt from payload review under Sec. 415.53 of 
this chapter. Requirements for obtaining a payload determination are set 
forth in part 415, subpart D of this chapter.
    (b) A payload reentry determination is required to reenter a payload 
to Earth on an RLV unless the proposed payload is exempt from payload 
reentry review.
    (c) A payload reentry determination made under a previous license 
application under this subchapter may satisfy the requirements of 
paragraph (b) of this section.
    (d) The FAA conducts a review, as described in subpart D of this 
part, to make a payload reentry determination. Either an RLV mission 
license applicant or a payload owner or operator may request a review of 
the proposed payload using the application procedures contained in part 
413 of this subchapter. Upon receipt of an application, the FAA may 
conduct a payload reentry review independently of an RLV mission license 
application.



Sec. 431.8  Human space flight.

    To obtain a license, an applicant proposing to conduct a reusable 
launch vehicle mission with flight crew or a space flight participant on 
board must demonstrate compliance with Sec. Sec. 460.5, 460.7, 460.11, 
460.13, 460.15, 460.17, 460.51 and 460.53 of this subchapter.

[Doc. No. FAA-2005-23449, 71 FR 75632, Dec. 15, 2006]



Sec. 431.9  Issuance of a reusable launch vehicle mission license.

    (a) The FAA issues either a mission-specific or operator license 
authorizing RLV missions to an applicant who has obtained all approvals 
and determinations required under this chapter for the license.
    (b) An RLV mission license authorizes a licensee to launch and 
reenter, or

[[Page 850]]

otherwise land, an RLV and payload, if any, in accordance with the 
representations contained in the licensee's application, subject to the 
licensee's compliance with terms and conditions contained in license 
orders accompanying the license, including financial responsibility 
requirements.



Sec. 431.11  Additional license terms and conditions.

    The FAA may amend an RLV mission license at any time by modifying or 
adding license terms and conditions to ensure compliance with 49 U.S.C. 
Subtitle IX, chapter 701, and applicable regulations.



Sec. 431.13  Transfer of a reusable launch vehicle mission license.

    (a) Only the FAA may transfer an RLV mission license.
    (b) An applicant for transfer of an RLV mission license shall submit 
a license application in accordance with part 413 of this subchapter and 
satisfy the applicable requirements of this part. The FAA will transfer 
an RLV mission license to an applicant who has obtained all of the 
approvals and determinations required under this chapter for an RLV 
mission license. In conducting its reviews and issuing approvals and 
determinations, the FAA may incorporate any findings made part of the 
record to support the initial licensing determination. The FAA may 
modify an RLV mission license to reflect any changes necessary as a 
result of a license transfer.



Sec. 431.15  Rights not conferred by a reusable launch vehicle mission license.

    Issuance of an RLV mission license does not relieve a licensee of 
its obligation to comply with requirements of law that may apply to its 
activities.



Sec. Sec. 431.16-431.20  [Reserved]



    Subpart B_Policy Review and Approval for Launch and Reentry of a 
                         Reusable Launch Vehicle



Sec. 431.21  General.

    The FAA issues a policy approval to an RLV mission license applicant 
upon completion of a favorable policy review. A policy approval is part 
of the licensing record on which the licensing determination is based.



Sec. 431.23  Policy review.

    (a) The FAA reviews an RLV mission license application to determine 
whether the proposed mission presents any issues, other than those 
issues addressed in the safety review, that would adversely affect U.S. 
national security or foreign policy interests, would jeopardize public 
health and safety or the safety of property, or would not be consistent 
with international obligations of the United States.
    (b) Interagency consultation is conducted as follows:
    (1) The FAA consults with the Department of Defense to determine 
whether an RLV mission license application presents any issues adversely 
affecting U.S. national security.
    (2) The FAA consults with the Department of State to determine 
whether an RLV mission license application presents any issues adversely 
affecting U.S. foreign policy interests or international obligations.
    (3) The FAA consults with other Federal agencies, including the 
National Aeronautics and Space Administration, authorized to address 
issues identified under paragraph (a) of this section, associated with 
an applicant's RLV mission proposal.
    (c) The FAA advises an applicant, in writing, of any issue raised 
during a policy review that would impede issuance of a policy approval. 
The applicant may respond, in writing, or revise its license 
application.



Sec. 431.25  Application requirements for policy review.

    In its RLV mission license application, an applicant must--
    (a) Identify the model, type, and configuration of any RLV proposed 
for launch and reentry, or otherwise landing on Earth, by the applicant.
    (b) Identify all vehicle systems, including structural, thermal, 
pneumatic, propulsion, electrical, and avionics and guidance systems 
used in the vehicle(s), and all propellants.

[[Page 851]]

    (c) Identify foreign ownership of the applicant as follows:
    (1) For a sole proprietorship or partnership, identify all foreign 
ownership;
    (2) For a corporation, identify any foreign ownership interests of 
10% or more; and
    (3) For a joint venture, association, or other entity, identify any 
participating foreign entities.
    (d) Identify proposed launch and reentry flight profile(s), 
including--
    (1) Launch and reentry site(s), including planned contingency abort 
locations, if any;
    (2) Flight trajectories, reentry trajectories, associated ground 
tracks, and instantaneous impact points for nominal operations, and 
contingency abort profiles, if any;
    (3) Sequence of planned events or maneuvers during the mission; and 
for an orbital mission, the range of intermediate and final orbits of 
the vehicle and upper stages, if any, and their estimated orbital life 
times.



Sec. 431.27  Denial of policy approval.

    The FAA notifies an applicant, in writing, if the FAA has denied 
policy approval for an RLV mission license application. The notice 
states the reasons for the FAA's determination. The applicant may 
respond to the reasons for the determination and request 
reconsideration.



Sec. Sec. 431.28-431.30  [Reserved]



    Subpart C_Safety Review and Approval for Launch and Reentry of a 
                         Reusable Launch Vehicle



Sec. 431.31  General.

    (a) The FAA conducts a safety review to determine whether an 
applicant is capable of launching an RLV and payload, if any, from a 
designated launch site, and reentering the RLV and payload, if any, to a 
designated reentry site or location, or otherwise landing it on Earth, 
without jeopardizing public health and safety and the safety of 
property.
    (b) The FAA issues a safety approval to an RLV mission license 
applicant that satisfies the requirements of this Subpart. The FAA 
evaluates on an individual basis all public safety aspects of a proposed 
RLV mission to ensure they are sufficient to support safe conduct of the 
mission. A safety approval is part of the licensing record on which the 
FAA's licensing determination is based.
    (c) The FAA advises an applicant, in writing, of any issue raised 
during a safety review that would impede issuance of a safety approval. 
The applicant may respond, in writing, or revise its license 
application.



Sec. 431.33  Safety organization.

    (a) An applicant shall maintain a safety organization and document 
it by identifying lines of communication and approval authority for all 
mission decisions that may affect public safety. Lines of communication 
within the applicant's organization, between the applicant and the 
launch site, and between the applicant and the reentry site, shall be 
employed to ensure that personnel perform RLV mission operations in 
accordance with plans and procedures required by this subpart. Approval 
authority shall be employed to ensure compliance with terms and 
conditions stated in an RLV mission license and with the plans and 
procedures required by this subpart.
    (b) An applicant must designate a person responsible for the conduct 
of all licensed RLV mission activities.
    (c) An applicant shall designate by name, title, and qualifications, 
a qualified safety official authorized by the applicant to examine all 
aspects of the applicant's operations with respect to safety of RLV 
mission activities and to monitor independently compliance by vehicle 
safety operations personnel with the applicant's safety policies and 
procedures. The safety official shall report directly to the person 
responsible for an applicant's licensed RLV mission activities, who 
shall ensure that all of the safety official's concerns are addressed 
both before a mission is initiated and before reentry or descent flight 
of an RLV is initiated. The safety official is responsible for--
    (1) Monitoring and evaluating operational dress rehearsals to ensure 
they are conducted in accordance with procedures required by Sec. 
431.37(a)(4) and under Sec. 431.37(a)(1)(iv) to ensure the

[[Page 852]]

readiness of vehicle safety operations personnel to conduct a safe 
mission under nominal and non-nominal conditions; and
    (2) Completing a mission readiness determination as required by 
Sec. 431.37 before an RLV mission is initiated. The safety official 
must monitor and report to the person responsible for the conduct of 
licensed RLV mission activities any non-compliance with procedures 
listed in Sec. Sec. 431.37 and 431.43, or any representation contained 
in the application, and the readiness of the licensee to conduct mission 
operations in accordance with the license and this part. The safety 
official is responsible for compliance with Sec. Sec. 431.37 and 
431.43, and with representations contained in the application.



Sec. 431.35  Acceptable reusable launch vehicle mission risk.

    (a) To obtain safety approval for an RLV mission, an applicant must 
demonstrate that the proposed mission does not exceed acceptable risk as 
defined in this subpart. For purposes of this section, the mission 
commences upon initiation of the launch phase of flight and consists of 
launch flight through orbital insertion of an RLV or vehicle stage or 
flight to outer space, whichever is applicable, and reentry or descent 
flight, and concludes upon landing on Earth of the RLV.
    (b) Acceptable risk for a proposed mission is measured in terms of 
the expected average number of casualties (Ec).
    (1) To obtain safety approval, an applicant shall demonstrate:
    (i) For public risk, the risk level to the collective members of the 
public exposed to vehicle or vehicle debris impact hazards associated 
with a proposed mission does not exceed an expected average number of 
0.00003 casualties per mission (or Ec criterion of 30 x 
10-6) to members of the public from the applicant's proposed 
activity; and
    (ii) For public risk, the risk level to an individual does not 
exceed .000001 per mission (or individual risk criterion of 1 x 
10-6).
    (2) [Reserved]
    (c) To demonstrate compliance with acceptable risk criteria in this 
section, an applicant shall employ a system safety process to identify 
the hazards and assess the risks to public health and safety and the 
safety of property associated with the mission, including nominal and 
non-nominal operation and flight of the vehicle and payload, if any. An 
acceptable system safety analysis identifies and assesses the 
probability and consequences of any reasonably foreseeable hazardous 
event, and safety-critical system failures during launch flight or 
reentry that could result in a casualty to the public.
    (d) As part of the demonstration required under paragraph (c) of 
this section, an applicant must--
    (1) Identify and describe the structure of the RLV, including 
physical dimensions and weight;
    (2) Identify and describe any hazardous materials, including 
radioactive materials, and their container on the RLV;
    (3) Identify and describe safety-critical systems;
    (4) Identify and describe all safety-critical failure modes and 
their consequences;
    (5) Provide drawings and schematics for eachsafety-critical system 
identified under paragraph (d)(3) of this section;
    (6) Provide a timeline identifying all safety-critical events;
    (7) Provide data that verifies the risk elimination and mitigation 
measures resulting from the applicant's system safety analyses required 
by paragraph (c) of this section; and
    (8) Provide flight trajectory analyses covering launch or ascent of 
the vehicle through orbital insertion and reentry or descent of the 
vehicle through landing, including its three-sigma dispersion.

[Docket No. FAA-1999-5535, 65 FR 56658, Sept. 19, 2000, as amended by 
Amdt. 431-2, 72 FR 17019, Apr. 6, 2007]



Sec. 431.37  Mission readiness.

    (a) Mission readiness requirements. An applicant shall submit the 
following procedures for verifying mission readiness:
    (1) Mission readiness review procedures that involve the applicant's 
vehicle safety operations personnel, and launch site and reentry site 
personnel

[[Page 853]]

involved in the mission. The procedures shall ensure a mission readiness 
review is conducted during which the designated individual responsible 
for the conduct of licensed activities under Sec. 431.33(b) is provided 
with the following information to make a judgment as to mission 
readiness--
    (i) Readiness of the RLV including safety-critical systems and 
payload for launch and reentry flight;
    (ii) Readiness of the launch site, personnel, and safety-related 
launch property and launch services to be provided by the launch site;
    (iii) Readiness of the reentry site, personnel, and safety-related 
property and services for reentry flight and vehicle recovery;
    (iv) Readiness of vehicle safety operations personnel to support 
mission flight, including results of dress rehearsals and simulations 
conducted in accordance with paragraph (a)(4) of this section;
    (v) Mission rules and constraints, including contingency abort plans 
and procedures, if any, as required under Sec. 431.39;
    (vi) Unresolved safety issues identified during the mission 
readiness review and plans for addressing them; and
    (vii) Any additional safety information required by the individual 
designated under Sec. 431.33(b) to determine launch and reentry 
readiness.
    (2) Procedures that ensure mission constraints, rules, contingency 
abort and emergency abort procedures are listed and consolidated in a 
safety directive or notebook approved by the person designated by the 
applicant under Sec. 431.33(b), the launch site operator, and the 
reentry site operator, if any;
    (3) Procedures that ensure currency and consistency of licensee, 
launch site operator, and reentry site operator checklists;
    (4) Dress rehearsal procedures that--
    (i) Ensure crew readiness under nominal and non-nominal flight 
conditions;
    (ii) Contain criteria for determining whether to dispense with or 
add one or more dress rehearsals; and
    (iii) Verify currency and consistency of licensee, launch site 
operator, and reentry site operator checklists; and
    (5) Procedures for ensuring the licensee's vehicle safety operations 
personnel adhere to crew rest rules of this part.
    (b) [Reserved]



Sec. 431.39  Mission rules, procedures, contingency plans, and checklists.

    (a) An applicant shall submit mission rules, procedures, checklists, 
emergency plans, and contingency abort plans, if any, that ensure safe 
conduct of mission operations during nominal and non-nominal vehicle 
flight.
    (b) Mission rules, procedures, checklists, emergency plans, and 
contingency abort plans must be contained in a safety directive, 
notebook, or other compilation that is approved by the safety official 
designated under Sec. 431.33(c) and concurred in by the launch site 
operator and reentry site operator, if any.
    (c) Vehicle safety operations personnel must have current and 
consistent mission checklists.



Sec. 431.41  Communications plan.

    (a) An applicant shall submit a plan providing vehicle safety 
operations personnel communications procedures during the mission. 
Procedures for effective issuance and communication of safety-critical 
information during the mission shall include hold/resume, go/no go, 
contingency abort, if any, and emergency abort commands by vehicle 
safety operations personnel. The communications plan shall describe the 
authority of vehicle safety operations personnel, by individual or 
position title, to issue these commands. The communications plan shall 
ensure that--
    (1) Communication networks are assigned so that personnel identified 
under this section have direct access to real-time, safety-critical 
information required for making decisions and issuing commands;
    (2) Personnel identified under this section monitor a common 
intercom channel for safety-critical communications during launch and 
reentry;
    (3) A protocol is established for utilizing defined radio 
communications terminology; and
    (4) Communications affecting the safety of the mission are recorded 
in a

[[Page 854]]

manner that accurately reflects communications made on individual 
channels, synchronized time coding, and sequence of communications.
    (b) An applicant shall submit procedures to ensure that licensee and 
reentry site personnel, if any, receive a copy of the communications 
plan required by this section and that the reentry site operator, if 
any, concurs with the communications plan.



Sec. 431.43  Reusable launch vehicle mission operational requirements and restrictions.

    (a) An applicant for RLV mission safety approval shall submit 
procedures--
    (1) That ensure RLV mission risks do not exceed the criteria set 
forth in Sec. 431.35 for nominal and non-nominal operations;
    (2) That ensure conformance with the system safety process and 
associated hazard identification and risk assessment required under 
Sec. 431.35(c);
    (3) That ensure conformance with operational restrictions listed in 
paragraphs (c) through (e) of this section;
    (4) To monitor and verify the status of RLV safety-critical systems 
sufficiently before enabling both launch and reentry flight to ensure 
public safety and during mission flight unless technically infeasible; 
and
    (5) For human activation or initiation of a flight safety system 
that safely aborts the launch of an RLV if the vehicle is not operating 
within approved mission parameters and the vehicle poses risk to public 
health and safety and the safety of property in excess of acceptable 
flight risk as defined in Sec. 431.35.
    (b) To satisfy risk criteria set forth in Sec. 431.35(b)(1), an 
applicant for RLV mission safety approval shall identify suitable and 
attainable locations for nominal landing and vehicle staging impact or 
landing, if any. An application shall identify such locations for a 
contingency abort if necessary to satisfy risk criteria contained in 
Sec. 431.35(b)(1) during launch of an RLV. A nominal landing, vehicle 
staging impact and contingency abort location are suitable for launch or 
reentry if--
    (1) For any vehicle or vehicle stage, the area of the predicted 
three-sigma dispersion of the vehicle or vehicle stage can be wholly 
contained within the designated location; and
    (2) The location is of sufficient size to contain landing impacts, 
including debris dispersion upon impact and any toxic release.
    (c) For an RLV mission--
    (1) A collision avoidance analysis shall be performed in order to 
maintain at least a 200-kilometer separation from any inhabitable 
orbiting object during launch and reentry. The analysis shall address:
    (i) For launch, closures in a planned launch window for ascent to 
outer space or, for an orbital RLV, to initial orbit through at least 
one complete orbit;
    (ii) For reentry, the reentry trajectory;
    (iii) Expansions of the closure period by subtracting 15 seconds 
from the closure start-time and adding 15 seconds to the closure end-
time for each sequential 90 minutes elapsed time period, or portion 
there of, beginning at the time the state vectors of the orbiting 
objects were determined;
    (2) The projected instantaneous impact point (IIP) of the vehicle 
shall not have substantial dwell time over densely populated areas 
during any segment of mission flight;
    (3) There will be no unplanned physical contact between the vehicle 
or its components and payload after payload separation and debris 
generation will not result from conversion of energy sources into energy 
that fragments the vehicle or its payload. Energy sources include, but 
are not limited to, chemical, pneumatic, and kinetic energy; and
    (4) Vehicle safety operations personnel shall adhere to the 
following work and rest standards:
    (i) A maximum 12-hour work shift with at least 8 hours of rest after 
12 hours of work, preceding initiation of an RLV reentry mission or 
during the conduct of a mission;
    (ii) A maximum of 60 hours worked in the 7 days, preceding 
initiation of an RLV mission;
    (iii) A maximum of 14 consecutive work days; and

[[Page 855]]

    (iv) A minimum 48-hour rest period after 5 consecutive days of 12-
hour shifts.
    (d) In addition to requirements of paragraph (c) of this section, 
any unproven RLV may only be operated so that during any portion of 
flight--
    (1) The projected instantaneous impact point (IIP) of the vehicle 
does not have substantial dwell time over populated areas; or
    (2) The expected average number of casualties to members of the 
public does not exceed 30 x 10-6 (Ec <= 30 x 
10-6) given a probability of vehicle failure equal to 1 
(pf=1) at any time the IIP is over a populated area;
    (e) Any RLV that enters Earth orbit may only be operated such that 
the vehicle operator is able to--
    (1) Monitor and verify the status of safety-critical systems before 
enabling reentry flight to assure the vehicle can reenter safely to 
Earth; and
    (2) Issue a command enabling reentry flight of the vehicle. Reentry 
flight cannot be initiated autonomously under nominal circumstances 
without prior enable.



Sec. 431.45  Mishap investigation plan and emergency response plan.

    (a) Mishap investigation plan and emergency response plan. An 
applicant shall submit a mishap investigation plan (MIP) containing the 
applicant's procedures for reporting and responding to launch and 
reentry accidents, launch and reentry incidents, or other mishaps, as 
defined in Sec. 401.5 of this chapter, that occur during the conduct of 
an RLV mission. An acceptable MIP satisfies the requirements of 
paragraphs (b)-(d) of this section. An applicant shall also submit an 
emergency response plan (ERP) that contains procedures for informing the 
affected public of a planned RLV mission. An acceptable ERP satisfies 
the requirements of paragraph (e) of this section. The MIP and ERP shall 
be signed by an individual authorized to sign and certify the 
application in accordance with Sec. 413.7(c) of this chapter, the 
person responsible for the conduct of all licensed RLV mission 
activities designated under Sec. 431.33(b) of this subpart, and the 
safety official designated under Sec. 431.33(c) of this subpart.
    (b) Report requirements. A MIP shall provide for--
    (1) Immediate notification to the FAA Washington Operations Center 
in case of a launch or reentry accident, launch or reentry incident, or 
a mishap that involves a fatality or serious injury (as defined in 49 
CFR 830.2);
    (2) Notification within 24 hours to the Associate Administrator for 
Commercial Space Transportation in the event of a mishap that does not 
involve a fatality or serious injury, as defined in 49 CFR 830.2; and
    (3) Submission of a written preliminary report to the FAA Associate 
Administrator for Commercial Space Transportation in the event of a 
launch accident or launch incident occurring in the conduct of an RLV 
mission, or reentry accident or reentry incident, occurring in the 
conduct of an RLV mission, within 5 days of the event. The report shall 
identify the event as either a launch or reentry accident or incident 
and must include the following information:
    (i) Date and time of occurrence;
    (ii) Description of the event and sequence of events leading to the 
accident or incident, to the extent known;
    (iii) Intended and actual location of launch and reentry or other 
landing on Earth;
    (iv) Identification of the vehicle;
    (v) Identification of the payload, if applicable;
    (vi) Number and general description of any fatalities and injuries;
    (vii) Property damage, if any, and an estimate of its value;
    (viii) Identification of hazardous materials, as defined in Sec. 
401.5 of this chapter, involved in the event, whether on the vehicle, 
payload, or on the ground;
    (ix) Action taken by any person to contain the consequences of the 
event;
    (x) Weather conditions at the time of the event; and
    (xi) Potential consequences for other vehicles or systems of similar 
type and proposed operations.
    (c) Response plan. A MIP must contain procedures to--
    (1) Ensure the consequences of a launch accident, launch incident, 
reentry accident, reentry incident, or other mishap occurring in the 
conduct

[[Page 856]]

of an RLV mission are contained and minimized;
    (2) Ensure data and physical evidence are preserved;
    (3) Require the licensee to report and to cooperate with FAA and the 
National Transportation Safety Board investigations and designate one or 
more points of contact for the FAA or NTSB; and;
    (4) Require the licensee to identify and adopt preventive measures 
for avoiding recurrence of the event.
    (d) Investigation plan. A MIP shall contain--
    (1) Procedures for investigating the cause of an event described in 
paragraph (c)(1) of this section;
    (2) Procedures for reporting investigation results to the FAA;
    (3) Delineated responsibilities, including reporting 
responsibilities, for personnel assigned to conduct investigations and 
for any unrelated entities retained by the licensee to conduct or 
participate in investigations.
    (e) Emergency response plan. An ERP shall provide for--
    (1) Notification to local officials in the event of an off-site or 
unplanned landing so that vehicle recovery can be conducted safely and 
effectively and with minimal risk to public safety. The plan must 
provide for the quick dissemination of up to date information to the 
public, and for doing so in advance of reentry or other landing on Earth 
to the extent practicable; and
    (2) A public information dissemination plan for informing the 
potentially affected public, in laymen's terms and in advance of a 
planned reentry, of the estimated date, time and landing location for 
the reentry activity.



Sec. 431.47  Denial of safety approval.

    The FAA notifies an applicant, in writing, if the FAA has denied 
safety approval for an RLV mission license application. The notice 
states the reasons for the FAA's determination. The applicant may 
respond to the reasons for the determination and request 
reconsideration.



Sec. Sec. 431.48-431.50  [Reserved]



           Subpart D_Payload Reentry Review and Determination



Sec. 431.51  General.

    (a) A payload reentry review is conducted to examine the policy and 
safety issues related to the proposed reentry of a payload, other than a 
U.S. Government payload or a payload whose reentry is subject to 
regulation by another Federal agency, to determine whether the FAA will 
approve reentry of the payload.
    (b) A payload reentry review may be conducted as part of an RLV 
mission license application review or may be requested by a payload 
owner or operator in advance of or separate from an RLV mission license 
application.
    (c) A payload reentry determination will be made part of the 
licensing record on which the FAA's licensing determination is based.



Sec. 431.53  Classes of payloads.

    (a) The FAA may approve the return of a type or class of payload 
(for example, communications or microgravity/scientific satellites).
    (b) The RLV mission licensee that will return a payload approved for 
reentry under this section, is responsible for providing current 
information in accordance with Sec. 431.57 regarding the payload 
proposed for reentry no later than 60 days before a scheduled RLV 
mission involving that payload.



Sec. 431.55  Payload reentry review.

    (a) In conducting a payload reentry review to decide if the FAA 
should approve reentry of a payload, the FAA determines whether its 
reentry presents any issues that would adversely affect U.S. national 
security or foreign policy interests, would jeopardize public health and 
safety or the safety of property, or would not be consistent with 
international obligations of the United States.
    (b) The FAA consults with the Department of Defense to determine 
whether reentry of a proposed payload presents any issues adversely 
affecting U.S. national security.

[[Page 857]]

    (c) The FAA consults with the Department of State to determine 
whether reentry of a proposed payload presents any issues adversely 
affecting U.S. foreign policy interests or international obligations.
    (d) The FAA consults with other Federal agencies, including the 
National Aeronautics and Space Administration, authorized to address 
issues identified under paragraph (a) of this section.
    (e) The FAA advises a person requesting a payload reentry 
determination, in writing, of any issue raised during a payload reentry 
review that would impede the issuance of a favorable determination to 
reenter that payload. The person requesting a payload reentry review may 
respond, in writing, or revise its application.



Sec. 431.57  Information requirements for payload reentry review.

    A person requesting reentry review of a particular payload or 
payload class must identify the following:
    (a) Payload name or class and function;
    (b) Physical characteristics, dimensions, and weight of the payload;
    (c) Payload owner and operator, if different from the person 
requesting the payload reentry review;
    (d) Type, amount, and container of hazardous materials, as defined 
in Sec. 401.5 of this chapter, and radioactive materials in the 
payload;
    (e) Explosive potential of payload materials, alone and in 
combination with other materials found on the payload or RLV during 
reentry;
    (f) Designated reentry site(s); and
    (g) Method for securing the payload on the RLV.



Sec. 431.59  Issuance of payload reentry determination.

    (a) The FAA issues a favorable payload reentry determination unless 
it determines that reentry of the proposed payload would adversely 
affect U.S. national security or foreign policy interests, would 
jeopardize public health and safety or the safety of property, or would 
not be consistent with international obligations of the United States. 
The FAA responds to any person who has requested a payload reentry 
review of its determination in writing. The notice states the reasons 
for the determination in the event of an unfavorable determination.
    (b) Any person issued an unfavorable payload reentry determination 
may respond to the reasons for the determination and request 
reconsideration.



Sec. 431.61  Incorporation of payload reentry determination in license application.

    A favorable payload reentry determination issued for a payload or 
class of payload may be included by an RLV mission license applicant as 
part of its application. Before the conduct of an RLV mission involving 
a payload approved for reentry, any change in information provided under 
Sec. 431.57 must be reported by the licensee in accordance with Sec. 
413.17 of this chapter. The FAA determines whether a favorable payload 
reentry determination remains valid and may conduct an additional 
payload reentry review.



Sec. Sec. 431.62-431.70  [Reserved]



 Subpart E_Post-Licensing Requirements_Reusable Launch Vehicle Mission 
                      License Terms and Conditions



Sec. 431.71  Public safety responsibility.

    (a) A licensee is responsible for ensuring the safe conduct of an 
RLV mission and for protecting public health and safety and the safety 
of property during the conduct of the mission.
    (b) A licensee must conduct a licensed RLV mission and perform RLV 
safety procedures in accordance with representations made in its license 
application. A licensee's failure to perform safety procedures in 
accordance with the representations made in the license application or 
comply with any license condition is sufficient basis for the revocation 
of a license or other appropriate nforcement action.



Sec. 431.73  Continuing accuracy of license application; application for modification of license.

    (a) A licensee is responsible for the continuing accuracy of 
representations contained in its application for the entire term of the 
license.

[[Page 858]]

    (b) After a license has been issued, a licensee must apply to the 
FAA for modification of the license if--
    (1) The licensee proposes to conduct an RLV mission or perform a 
safety-critical operation in a manner not authorized by the license; or
    (2) Any representation contained in the license application that is 
material to public health and safety or the safety of property is no 
longer accurate and complete or does not reflect the licensee's 
procedures governing the actual conduct of an RLV mission. A change is 
material to public health and safety or the safety of property if it 
alters or affects the--
    (i) Mission rules, procedures, checklists, emergency plans, and 
contingency abort plans, if any, submitted in accordance with Sec. 
431.39
    (ii) Class of payload;
    (iii) Type of RLV;
    (iv) Any safety-critical system;
    (v) Type and container of the hazardous material carried by the 
vehicle;
    (vi) Flight trajectory;
    (vii) Launch site or reentry site or other landing location; or
    (viii) Any safety system, policy, procedure, requirement, criteria, 
or standard.
    (c) An application to modify an RLV mission license must be prepared 
and submitted in accordance with part 413 of this chapter. The licensee 
must indicate any part of its license or license application that would 
be changed or affected by a proposed modification.
    (d) The FAA reviews determinations and approvals required by this 
chapter to determine whether they remain valid after submission of a 
proposed modification.
    (e) Upon approval of a modification, the FAA issues either a written 
approval to the licensee or a license order amending the license if a 
stated term or condition of the license is changed, added, or deleted. 
An approval has the full force and effect of a license order and is part 
of the licensing record.



Sec. 431.75  Agreements.

    (a) Launch and reentry site use agreements. Before conducting a 
licensed RLV mission using property and services of a Federal launch 
range or licensed launch or reentry site operator, a licensee or 
applicant shall enter into an agreement with the Federal launch range 
and/or licensed site operator that provides for access to and use of 
property and services required to support a licensed RLV mission or 
reentry and for public safety related operations and support. The 
agreement shall be in effect before any licensed RLV mission or reentry. 
A licensee shall comply with any requirements of the agreement that may 
affect public health and safety and the safety of property during the 
conduct of its licensed activity.
    (b) Agreements for notices to mariners and airmen. Unless otherwise 
addressed in agreements between a licensed launch site operator and the 
U.S. Coast Guard and the FAA, respectively, a licensee authorized to 
conduct an RLV mission using a launch site or reentry site other than a 
Federal launch range shall complete the following:
    (1) An agreement between the licensee and the local U.S. Coast Guard 
district to establish procedures for the issuance of a Notice to 
Mariners prior to a launch or reentry and other measures as the Coast 
Guard deems necessary to protect public health and safety; and
    (2) An agreement between the licensee and the FAA regional office 
having jurisdiction over the airspace through which a launch and reentry 
will take place, to establish procedures for the issuance of a Notice to 
Airmen prior to the conduct of a licensed launch or reentry and for 
closing of air routes during the respective launch and reentry windows 
and other measures deemed necessary by the FAA regional office in order 
to protect public health and safety.



Sec. 431.77  Records.

    (a) Except as specified in paragraph (b) of this section, a licensee 
shall maintain for 3 years all records, data, and other material 
necessary to verify that a licensed RLV mission is conducted in 
accordance with representations contained in the licensee's application.
    (b) In the event of a launch accident, reentry accident, launch 
incident or reentry incident, as defined in Sec. 401.5 of this chapter, 
a licensee shall preserve all records related to the event.

[[Page 859]]

Records must be retained until completion of any Federal investigation 
and the FAA advises the licensee that the records need not be retained. 
The licensee shall make all records required to be maintained under the 
regulations available to Federal officials for inspection and copying.



Sec. 431.79  Reusable launch vehicle mission reporting requirements.

    (a) Not less than 60 days before each RLV mission conducted under a 
license, a licensee shall provide the FAA with the following 
information:
    (1) Payload information in accordance with 14 CFR Sec. 415.59 of 
this chapter and Sec. 431.57; and
    (2) Flight information, including the vehicle, launch site, planned 
launch and reentry flight path, and intended landing sites including 
contingency abort sites.
    (3) Launch or reentry waivers, approved or pending, from a federal 
Federal range for at which the launch or reentry will take place, that 
are unique and may affect public safety.
    (b) Not later than 15 days before each licensed RLV mission, a 
licensee must notify the FAA, in writing, of the time and date of the 
intended launch and reentry or other landing on Earth of the RLV and may 
utilize the FAA/U.S. Space Command Launch Notification Form, contained 
in part 415, Appendix A, of this subchapter for doing so.
    (c) A licensee must report a launch accident, launch incident, 
reentry accident, reentry incident, or other mishap immediately to the 
FAA Washington Operations Center and provide a written preliminary 
report in the event of a launch accident, launch incident, reentry 
accident, or reentry incident, in accordance with the mishap 
investigation and emergency response plan submitted as part of its 
license application under Sec. 431.45.



Sec. 431.81  Financial responsibility requirements.

    A licensee under this part must comply with financial responsibility 
requirements specified in its license.



Sec. 431.83  Compliance monitoring.

    A licensee shall allow access by, and cooperate with, Federal 
officers or employees or other individuals authorized by the FAA to 
observe any activities of the licensee, or of the licensee's contractors 
or subcontractors, associated with the conduct of a licensed RLV 
mission.



Sec. 431.85  Registration of space objects.

    (a) To assist the U.S. Government in implementing Article IV of the 
1975 Convention on Registration of Objects Launched into Outer Space, 
each licensee shall provide to the FAA the information required by 
paragraph (b) of this section for all objects placed in space by a 
licensed RLV mission, including an RLV and any components, except:
    (1) Any object owned and registered by the U.S. Government; and
    (2) Any object owned by a foreign entity.
    (b) For each object that must be registered in accordance with this 
section, a licensee shall submit the following information not later 
than thirty (30) days following the conduct of a licensed RLV mission :
    (1) The international designator of the space object(s);
    (2) Date and location of the RLV mission initiation;
    (3) General function of the space object; and
    (4) Final orbital parameters, including:
    (i) Nodal period;
    (ii) Inclination;
    (iii) Apogee; and
    (iv) Perigee.
    (c) A licensee shall notify the FAA when it removes an object that 
it has previously placed in space.



Sec. Sec. 431.86-431.90  [Reserved]



                     Subpart F_Environmental Review



Sec. 431.91  General.

    An applicant shall provide the FAA with sufficient information to 
analyze the environmental impacts associated with proposed operation of 
an RLV, including the impacts of anticipated activities to be performed 
at its reentry site. The information provided by an applicant must be 
sufficient to enable the FAA to comply with the requirements of the 
National Environmental

[[Page 860]]

Policy Act, 42 U.S.C. 4321 et seq., the Council on Environmental Quality 
Regulations for Implementing the Procedural Provisions of the National 
Environmental Policy Act, 40 CFR parts 1500-1508, and the FAA's 
Procedures for Considering Environmental Impacts, FAA Order 1050.1D. 
Copies of FAA Order 1050.1D may be obtained from the Office of 
Environment and Energy, AEE-300, Federal Aviation Administration, 800 
Independence Avenue SW., Washington, DC 20591, (202) 267-3553. Copies of 
FAA Order 1050.1D may be inspected in the Rules Docket at the Federal 
Aviation Administration, Office of the Chief Counsel, AGC-200, Room 
915G, 800 Independence Avenue SW., Washington, DC 20591 weekdays between 
8:30 a.m. and 5:00 p.m.



Sec. 431.93  Environmental information.

    An applicant shall submit environmental information concerning--
    (a) A designated launch and reentry site, including contingency 
abort locations, if any, not covered by existing FAA or other Federal 
environmental documentation;
    (b) A proposed new RLV with characteristics falling measurably 
outside the parameters of existing environmental documentation;
    (c) A proposed reentry to an established reentry site involving an 
RLV with characteristics falling measurably outside the parameters of 
existing environmental impact statements covering that site;
    (d) A proposed payload that may have significant environmental 
impacts in the event of a reentry accident; and
    (e) Other factors as necessary to comply with the National 
Environmental Policy Act.

                           PART 432 [RESERVED]



PART 433_LICENSE TO OPERATE A REENTRY SITE--Table of Contents




                            Subpart A_General

Sec.
433.1 General.
433.3 Issuance of a license to operate a reentry site.
433.5 Operational restrictions on a reentry site.
433.7 Environmental.
433.9 Environmental information.

    Authority: 49 U.S.C. 70101-70121.

    Source: Docket No. FAA-1999-5535, 65 FR 56665, Sept. 19, 2000, 
unless otherwise noted.



Sec. 433.1  General.

    The FAA evaluates on an individual basis an applicant's proposal to 
operate a reentry site.



Sec. 433.3  Issuance of a license to operate a reentry site.

    (a) The FAA issues a license to operate a reentry site when it 
determines that an applicant's operation of the reentry site does not 
jeopardize public health and safety, the safety of property, U.S. 
national security or foreign policy interests, or international 
obligations of the United States.
    (b) A license to operate a reentry site authorizes a licensee to 
operate a reentry site in accordance with the representations contained 
in the licensee's application, subject to the licensee's compliance with 
terms and conditions contained in any license order accompanying the 
license.



Sec. 433.5  Operational restrictions on a reentry site.

    A license to operate a reentry site authorizes the licensee to offer 
use of the site to support reentry of a reentry vehicle for which the 
three-sigma footprint of the vehicle upon reentry is wholly contained 
within the site.



Sec. 433.7  Environmental.

    An applicant shall provide the FAA with information for the FAA to 
analyze the environmental impacts associated with proposed operation of 
a reentry site. The information provided by an applicant must be 
sufficient to enable the FAA to comply with the requirements of the 
National Environmental Policy Act, 42 U.S.C. 4321 et seq. (NEPA), the 
Council on Environmental Quality Regulations for Implementing the 
Procedural Provisions of NEPA, 40 CFR Parts 1500-1508, and the FAA's 
Procedures for Consideration Environmental Impacts, FAA Order 1050.1D.

[[Page 861]]



Sec. 433.9  Environmental information.

    An applicant shall submit environmental information concerning a 
proposed reentry site not covered by existing environmental 
documentation for purposes of assessing reentry impacts.

                           PART 434 [RESERVED]



PART 435_REENTRY OF A REENTRY VEHICLE OTHER THAN A REUSABLE LAUNCH VEHICLE (RLV)--Table of Contents




                            Subpart A_General

Sec.
435.1 Scope.
435.3 Types of reentry licenses.
435.5 Policy and safety approvals.
435.7 Payload reentry determination.
435.8 Human space flight.
435.9 Issuance of a reentry license.
435.11 Additional license terms and conditions.
435.13 Transfer of a reentry license.
435.15 Rights not conferred by reentry license.
435.16-435.20 [Reserved]

  Subpart B_Policy Review and Approval for Reentry of a Reentry Vehicle

435.21 General.
435.23 Policy review requirements and procedures.
435.24-435.30 [Reserved]

  Subpart C_Safety Review and Approval for Reentry of a Reentry Vehicle

435.31 General.
435.33 Safety review requirements and procedures.
435.35 Acceptable reentry risk for reentry of a reentry vehicle.
435.36-435.40 [Reserved]

           Subpart D_Payload Reentry Review and Determination

435.41 General.
435.43 Payload reentry review requirements and procedures.
435.44-435.50 [Reserved]

    Subpart E_Post-Licensing Requirements_Reentry License Terms and 
                               Conditions

435.51 General.
435.52-435.60 [Reserved]

                     Subpart F_Environmental Review

435.61 General.
435.62-435.70 [Reserved]

    Authority: 49 U.S.C. 70101-70121.

    Source: Docket No. FAA-1999-5535, 65 FR 56665, Sept. 19, 2000, 
unless otherwise noted.



                            Subpart A_General



Sec. 435.1  Scope.

    This part prescribes requirements for obtaining a license to reenter 
a reentry vehicle other than a reusable launch vehicle (RLV), and post-
licensing requirements with which a licensee must comply to remain 
licensed. Requirements for preparing a license application are contained 
in part 413 of this subchapter.



Sec. 435.3  Types of reentry licenses.

    (a) Reentry-specific license. A reentry-specific license authorizes 
a licensee to reenter one model or type of reentry vehicle, other than 
an RLV, to a reentry site or other location approved for the reentry. A 
reentry-specific license may authorize more than one reentry and 
identifies each reentry authorized under the license. A licensee's 
authorization to reenter terminates upon completion of all activities 
authorized by the license or the expiration date stated in the reentry 
license, whichever occurs first.
    (b) Reentry-operator license. A reentry operator license authorizes 
a licensee to reenter any of a designated family of reentry vehicles, 
other than an RLV, within authorized parameters, including trajectories, 
transporting specified classes of payloads to any reentry site 
designated in the license. A reentry operator license is valid for a 2-
year renewable term.



Sec. 435.5  Policy and safety approvals.

    To obtain a reentry license, an applicant must obtain policy and 
safety approvals from the FAA. Requirements for obtaining these 
approvals are contained in subparts B and C of this part. Only a reentry 
license applicant may apply for the approvals, and may apply for either 
approval separately and in advance of submitting a complete license 
application, using the application procedures contained in part 413 of 
this subchapter.

[[Page 862]]



Sec. 435.7  Payload reentry determination.

    (a) A payload reentry determination is required to transport a 
payload to Earth on a reentry vehicle unless the proposed payload is 
exempt from payload review.
    (b) A payload reentry determination made under a previous license 
application under this subchapter may satisfy the requirements of 
paragraph (a) of this section.
    (c) The FAA conducts a review, as described in subpart D of this 
part, to make a payload reentry determination. Either a reentry license 
applicant or a payload owner or operator may request a review of the 
proposed payload using the application procedures contained in part 413 
of this subchapter. Upon receipt of an application, the FAA may conduct 
a payload reentry review independently of a reentry license application.



Sec. 435.8  Human space flight.

    An applicant for a license to conduct a reentry with flight crew or 
a space flight participant on board the vehicle must demonstrate 
compliance with Sec. Sec. 460.5, 460.7, 460.11, 460.13, 460.15, 460.17, 
460.51 and 460.53 of this subchapter.

[Doc. No. FAA-2005-23449, 71 FR 75632, Dec. 15, 2006]



Sec. 435.9  Issuance of a reentry license.

    (a) The FAA issues a reentry license to an applicant who has 
obtained all approvals and determinations required under this chapter 
for a reentry license.
    (b) A reentry license authorizes a licensee to reenter a reentry 
vehicle and payload, if any, in accordance with the representations 
contained in the reentry licensee's application, subject to the 
licensee's compliance with terms and conditions contained in license 
orders accompanying the reentry license, including financial 
responsibility requirements.



Sec. 435.11  Additional license terms and conditions.

    The FAA may amend a reentry license at any time by modifying or 
adding license terms and conditions to ensure compliance with 49 U.S.C. 
Subtitle IX, chapter 701, and applicable regulations.



Sec. 435.13  Transfer of a reentry license.

    (a) Only the FAA may transfer a reentry license.
    (b) An applicant for transfer of a reentry license shall submit a 
reentry license application in accordance with part 413 of this 
subchapter and satisfy the applicable requirements of this part. The FAA 
will transfer a reentry license to an applicant who has obtained all of 
the approvals and determinations required under this chapter for a 
reentry license. In conducting its reviews and issuing approvals and 
determinations, the FAA may incorporate any findings made part of the 
record to support the initial licensing determination. The FAA may 
modify a reentry license to reflect any changes necessary as a result of 
a reentry license transfer.



Sec. 435.15  Rights not conferred by reentry license.

    Issuance of a reentry license does not relieve a licensee of its 
obligation to comply with requirements of law that may apply to its 
activities.



Sec. Sec. 435.16-431.20  [Reserved]



  Subpart B_Policy Review and Approval for Reentry of a Reentry Vehicle



Sec. 435.21  General.

    The FAA issues a policy approval to a reentry license applicant upon 
completion of a favorable policy review. A policy approval is part of 
the licensing record on which the licensing determination is based.



Sec. 435.23  Policy review requirements and procedures.

    Unless otherwise indicated in this subpart, regulations applicable 
to policy review and approval of the reentry of an RLV contained in part 
431, subpart B of this subchapter shall apply to the policy review 
conducted for a license to reenter a reentry vehicle under this part.

[[Page 863]]



Sec. Sec. 435.24-435.30  [Reserved]



  Subpart C_Safety Review and Approval for Reentry of a Reentry Vehicle



Sec. 435.31  General.

    The FAA conducts a safety review to determine whether an applicant 
is capable of reentering a reentry vehicle and payload, if any, to a 
designated reentry site without jeopardizing public health and safety 
and the safety of property. A safety approval is part of the licensing 
record on which the licensing determination is based.



Sec. 435.33  Safety review requirements and procedures.

    Unless otherwise stated in this subpart, regulations applicable to 
safety review and approval of the reentry of an RLV contained in part 
431, subpart C of this subchapter shall apply to the safety review 
conducted for a license to reenter a reentry vehicle under this part.



Sec. 435.35  Acceptable reentry risk for reentry of a reentry vehicle.

    To obtain safety approval for reentry, an applicant must demonstrate 
that risk for the proposed reentry, when assessed in combination with 
launch of the reentry vehicle, does not exceed acceptable risk for the 
conduct of an RLV mission as defined in paragraphs (a) and (b) of Sec. 
431.35 of this subchapter.



Sec. Sec. 435.36-435.40  [Reserved]



           Subpart D_Payload Reentry Review and Determination



Sec. 435.41  General.

    The FAA conducts a payload reentry review to examine the policy and 
safety issues related to the proposed reentry of a payload, except a 
U.S. Government payload, to determine whether the FAA will approve the 
reentry of the payload.



Sec. 435.43  Payload reentry review requirements and procedures.

    Unless otherwise indicated in this subpart, regulations contained in 
part 431, subpart D of this subchapter applicable to a payload reentry 
review and determination for reentering a payload using an RLV shall 
apply to the payload reentry review conducted for a license to reenter a 
reentry vehicle under this part.



Sec. Sec. 435.44-435.50  [Reserved]



    Subpart E_Post-Licensing Requirements_Reentry License Terms and 
                               Conditions



Sec. 435.51  General.

    Unless otherwise indicated in this subpart, post-licensing 
requirements contained in part 431 subpart E, of this subchapter 
applicable to a license to reenter an RLV shall apply to a license 
issued under this part.



Sec. Sec. 435.52-435.60  [Reserved]



                     Subpart F_Environmental Review



Sec. 435.61  General.

    Unless otherwise indicated in this subpart, environmental review 
requirements contained in part 431 subpart F, applicable to a license to 
reenter an RLV shall apply to an application for a reentry license under 
this part.



Sec. Sec. 435.62-435.70  [Reserved]

                           PART 436 [RESERVED]



PART 437_EXPERIMENTAL PERMITS--Table of Contents




                      Subpart A_General Information

Sec.
437.1 Scope and organization of this part.
437.3 Definitions.
437.5 Eligibility for an experimental permit.
437.7 Scope of an experimental permit.
437.9 Issuance of an experimental permit.
437.11 Duration of an experimental permit.
437.13 Additional experimental permit terms and conditions.
437.15 Transfer of an experimental permit.
437.17 Rights not conferred by an experimental permit.

         Subpart B_Requirements to Obtain an Experimental Permit

437.21 General.

[[Page 864]]

                           Program Description

437.23 Program description.

                            Flight Test Plan

437.25 Flight test plan.

                    Operational Safety Documentation

437.27 Pre-flight and post-flight operations.
437.29 Hazard analysis.
437.31 Verification of operating area containment and key flight-safety 
          event limitations.
437.33 Landing and impact locations.
437.35 Agreements.
437.37 Tracking.
437.39 Flight rules.
437.41 Mishap response plan.

                      Subpart C_Safety Requirements

437.51 Rest rules for vehicle safety operations personnel.
437.53 Pre-flight and post-flight operations.
437.55 Hazard analysis.
437.57 Operating area containment.
437.59 Key flight-safety event limitations.
437.61 Landing and impact locations.
437.63 Agreements with other entities involved in a launch or reentry.
437.65 Collision avoidance analysis.
437.67 Tracking a reusable suborbital rocket.
437.69 Communications.
437.71 Flight rules.
437.73 Anomaly recording, reporting and implementation of corrective 
          actions.
437.75 Mishap reporting, responding, and investigating.
437.77 Additional safety requirements.

        Subpart D_Terms and Conditions of an Experimental Permit

437.81 Public safety responsibility.
437.83 Compliance with experimental permit.
437.85 Allowable design changes; modification of an experimental permit.
437.87 Records.
437.89 Pre-flight reporting.
437.91 For-hire prohibition.
437.93 Compliance monitoring.
437.95 Inspection of additional reusable suborbital rockets.

    Authority: 49 U.S.C. 70101-70102.

    Source: Docket No. FAA-2006-24197, 72 FR 17019, Apr. 6, 2007, unless 
otherwise noted.



                      Subpart A_General Information



Sec. 437.1  Scope and organization of this part.

    (a) This part prescribes requirements for obtaining an experimental 
permit. It also prescribes post-permitting requirements with which a 
permittee must comply to maintain its permit. Part 413 of this 
subchapter contains procedures for applying for an experimental permit.
    (b) Subpart A contains general information about an experimental 
permit. Subpart B contains requirements to obtain an experimental 
permit. Subpart C contains the safety requirements with which a 
permittee must comply while conducting permitted activities. Subpart D 
contains terms and conditions of an experimental permit.



Sec. 437.3  Definitions.

    Anomaly means a problem that occurs during verification or operation 
of a system, subsystem, process, facility, or support equipment.
    Envelope expansion means any portion of a flight where planned 
operations will subject a reusable suborbital rocket to the effects of 
altitude, velocity, acceleration, or burn duration that exceed a level 
or duration successfully verified during an earlier flight.
    Exclusion area means an area, within an operating area, that a 
reusable suborbital rocket's instantaneous impact point may not 
traverse.
    Key flight-safety event means a permitted flight activity that has 
an increased likelihood of causing a launch accident compared with other 
portions of flight.
    Operating area means a three-dimensional region where permitted 
flights may take place.
    Permitted vehicle means a reusable suborbital rocket operated by a 
launch or reentry operator under an experimental permit.
    Reentry impact point means the location of a reusable suborbital 
rocket's instantaneous impact point during its unpowered exoatmospheric 
suborbital flight.



Sec. 437.5  Eligibility for an experimental permit.

    The FAA will issue an experimental permit to a person to launch or 
reenter a reusable suborbital rocket only for--
    (a) Research and development to test new design concepts, new 
equipment, or new operating techniques;

[[Page 865]]

    (b) A showing of compliance with requirements for obtaining a 
license under this subchapter; or
    (c) Crew training before obtaining a license for a launch or reentry 
using the design of the rocket for which the permit would be issued.



Sec. 437.7  Scope of an experimental permit.

    An experimental permit authorizes launch or reentry of a reusable 
suborbital rocket. The authorization includes pre- and post-flight 
ground operations as defined in this section.
    (a) A pre-flight ground operation includes each operation that--
    (1) Takes place at a U.S. launch site; and
    (2) Meets the following criteria:
    (i) Is closely proximate in time to flight,
    (ii) Entails critical steps preparatory to initiating flight,
    (iii) Is unique to space launch, and
    (iv) Is inherently so hazardous as to warrant the FAA's regulatory 
oversight.
    (b) A post-flight ground operation includes each operation necessary 
to return the reusable suborbital rocket to a safe condition after it 
lands or impacts.



Sec. 437.9  Issuance of an experimental permit.

    The FAA issues an experimental permit authorizing an unlimited 
number of launches or reentries for a suborbital rocket design for the 
uses described in Sec. 437.5.



Sec. 437.11  Duration of an experimental permit.

    An experimental permit lasts for one year from the date it is 
issued. A permittee may apply to renew a permit yearly under part 413 of 
this subchapter.



Sec. 437.13  Additional experimental permit terms and conditions.

    The FAA may modify an experimental permit at any time by modifying 
or adding permit terms and conditions to ensure compliance with 49 
U.S.C. Subtitle IX, ch. 701.



Sec. 437.15  Transfer of an experimental permit.

    An experimental permit is not transferable.



Sec. 437.17  Rights not conferred by an experimental permit.

    Issuance of an experimental permit does not relieve a permittee of 
its obligation to comply with any requirement of law that applies to its 
activities.



         Subpart B_Requirements to Obtain an Experimental Permit



Sec. 437.21  General.

    To obtain an experimental permit an applicant must make the 
demonstrations and provide the information required by this section.
    (a) This subpart. An applicant must provide a program description, a 
flight test plan, and operational safety documentation as required by 
this subpart.
    (b) Other regulations--(1) Environmental. An applicant must provide 
enough information for the FAA to analyze the environmental impacts 
associated with proposed reusable suborbital rocket launches or 
reentries. The information provided by an applicant must be sufficient 
to enable the FAA to comply with the requirements of the National 
Environmental Policy Act, 42 U.S.C. 4321 et seq., and the Council on 
Environmental Quality Regulations for Implementing the Procedural 
Provisions of the National Environmental Policy Act, 40 CFR parts 1500-
1508.
    (2) Financial responsibility. An applicant must provide the 
information required by part 3 of appendix A of part 440 for the FAA to 
conduct a maximum probable loss analysis.
    (3) Human space flight. An applicant proposing launch or reentry 
with flight crew or a space flight participant on board a reusable 
suborbital rocket must demonstrate compliance with Sec. Sec. 460.5, 
460.7, 460.11, 460.13, 460.15, 460.17, 460.51 and 460.53 of this 
subchapter.
    (c) Use of a safety approval. If an applicant proposes to use any 
reusable suborbital rocket, safety system, process, service, or 
personnel for which the FAA has issued a safety approval under part 414 
of this subchapter, the FAA

[[Page 866]]

will not reevaluate that safety element to the extent its use is within 
its approved envelope. As part of the application process, the FAA will 
evaluate the integration of that safety element into vehicle systems or 
operations.
    (d) Inspection before issuing a permit. Before the FAA issues an 
experimental permit, an applicant must make each reusable suborbital 
rocket planned to be flown available to the FAA for inspection. The FAA 
will determine whether each reusable suborbital rocket is built as 
represented in the application.
    (e) Other requirements. The FAA may require additional analyses, 
information, or agreements if necessary to protect public health and 
safety, safety of property, and national security and foreign policy 
interests of the United States.

                           Program Description



Sec. 437.23  Program description.

    (a) An applicant must provide--
    (1) Dimensioned three-view drawings or photographs of the reusable 
suborbital rocket; and
    (2) Gross liftoff weight and thrust profile of the reusable 
suborbital rocket.
    (b) An applicant must describe--
    (1) All reusable suborbital rocket systems, including any 
structural, flight control, thermal, pneumatic, hydraulic, propulsion, 
electrical, environmental control, software and computing systems, 
avionics, and guidance systems used in the reusable suborbital rocket;
    (2) The types and quantities of all propellants used in the reusable 
suborbital rocket;
    (3) The types and quantities of any hazardous materials used in the 
reusable suborbital rocket;
    (4) The purpose for which a reusable suborbital rocket is to be 
flown; and
    (5) Each payload or payload class planned to be flown.
    (c) An applicant must identify any foreign ownership of the 
applicant as follows:
    (1) For a sole proprietorship or partnership, identify all foreign 
ownership,
    (2) For a corporation, identify any foreign ownership interests of 
10% or more, and
    (3) For a joint venture, association, or other entity, identify any 
participating foreign entities.

                            Flight Test Plan



Sec. 437.25  Flight test plan.

    An applicant must--
    (a) Describe any flight test program, including estimated number of 
flights and key flight-safety events.
    (b) Identify and describe the geographic coordinates of the 
boundaries of one or more proposed operating areas where it plans to 
perform its flights and that satisfy Sec. 437.57(b) of subpart C. The 
FAA may designate one or more exclusion areas in accordance with Sec. 
437.57(c) of subpart C.
    (c) For each operating area, provide the planned maximum altitude of 
the reusable suborbital rocket.

                    Operational Safety Documentation



Sec. 437.27  Pre-flight and post-flight operations.

    An applicant must demonstrate how it will meet the requirements of 
Sec. 437.53(a) and (b) to establish a safety clear zone and verify that 
the public is outside that zone before and during any hazardous 
operation.



Sec. 437.29  Hazard analysis.

    (a) An applicant must perform a hazard analysis that complies with 
Sec. 437.55(a).
    (b) An applicant must provide to the FAA all the results of each 
step of the hazard analysis required by paragraph (a) of this section.



Sec. 437.31  Verification of operating area containment and key flight-safety event limitations.

    (a) An applicant must identify, describe, and provide verification 
evidence of the methods and systems used to meet the requirement of 
Sec. 437.57(a) to contain its reusable suborbital rocket's 
instantaneous impact point within an operating area and outside any 
exclusion area. The description must include, at a minimum--

[[Page 867]]

    (1) Proof of physical limits on the ability of the reusable 
suborbital rocket to leave the operating area; or
    (2) Abort procedures and other safety measures derived from a system 
safety engineering process.
    (b) An applicant must identify, describe, and provide verification 
evidence of the methods and systems used to meet the requirements of 
Sec. 437.59 to conduct any key flight-safety event so that the reusable 
suborbital rocket's instantaneous impact point, including its expected 
dispersions, is over unpopulated or sparsely populated areas, and to 
conduct each reusable suborbital rocket flight so that the reentry 
impact point does not loiter over a populated area.



Sec. 437.33  Landing and impact locations.

    An applicant must demonstrate that each location for nominal landing 
or any contingency abort landing of the reusable suborbital rocket, and 
each location for any nominal or contingency impact or landing of a 
component of that rocket, satisfies Sec. 437.61.



Sec. 437.35  Agreements.

    An applicant must enter into the agreements required by Sec. 
437.63, and provide a copy to the FAA.



Sec. 437.37  Tracking.

    An applicant must identify and describe each method or system used 
to meet the tracking requirements of Sec. 437.67.



Sec. 437.39  Flight rules.

    An applicant must provide flight rules as required by Sec. 437.71.



Sec. 437.41  Mishap response plan.

    An applicant must provide a mishap response plan that meets the 
requirements of Sec. 437.75(b).



                      Subpart C_Safety Requirements



Sec. 437.51  Rest rules for vehicle safety operations personnel.

    A permittee must ensure that all vehicle safety operations personnel 
adhere to the work and rest standards in this section during permitted 
activities.
    (a) No vehicle safety operations personnel may work more than:
    (1) 12 consecutive hours,
    (2) 60 hours in the 7 days preceding a permitted activity, or
    (3) 14 consecutive work days.
    (b) All vehicle safety operations personnel must have at least 8 
hours of rest after 12 hours of work.
    (c) All vehicle safety operations personnel must receive a minimum 
48-hour rest period after 5 consecutive days of 12-hour shifts.



Sec. 437.53  Pre-flight and post-flight operations.

    A permittee must protect the public from adverse effects of 
hazardous operations and systems in preparing a reusable suborbital 
rocket for flight at a launch site in the United States and returning 
the reusable suborbital rocket and any support equipment to a safe 
condition after flight. At a minimum, a permittee must--
    (a) Establish a safety clear zone that will contain the adverse 
effects of each operation involving a hazard; and
    (b) Verify that the public is outside of the safety clear zone 
before and during any hazardous operation.



Sec. 437.55  Hazard analysis.

    (a) A permittee must identify and characterize each of the hazards 
and assess the risk to public health and safety and the safety of 
property resulting from each permitted flight. This hazard analysis 
must--
    (1) Identify and describe hazards, including but not limited to each 
of those that result from--
    (i) Component, subsystem, or system failures or faults;
    (ii) Software errors;
    (iii) Environmental conditions;
    (iv) Human errors;
    (v) Design inadequacies; or
    (vi) Procedural deficiencies.
    (2) Determine the likelihood of occurrence and consequence for each 
hazard before risk elimination or mitigation.
    (3) Ensure that the likelihood and consequence of each hazard meet 
the following criteria through risk elimination and mitigation measures:

[[Page 868]]

    (i) The likelihood of any hazardous condition that may cause death 
or serious injury to the public must be extremely remote.
    (ii) The likelihood of any hazardous condition that may cause major 
property damage to the public, major safety-critical system damage or 
reduced capability, a significant reduction in safety margins, or a 
significant increase in crew workload must be remote.
    (4) Identify and describe the risk elimination and mitigation 
measures required to satisfy paragraph (a)(3) of this section. The 
measures must include one or more of the following:
    (i) Designing for minimum risk,
    (ii) Incorporating safety devices,
    (iii) Providing warning devices, or
    (iv) Implementing procedures and training.
    (5) Demonstrate that the risk elimination and mitigation measures 
achieve the risk levels of paragraph (a)(3)(i) of this section through 
validation and verification. Verification includes:
    (i) Test data,
    (ii) Inspection results, or
    (iii) Analysis.
    (b) A permittee must carry out the risk elimination and mitigation 
measures derived from its hazard analysis.
    (c) A permittee must ensure the continued accuracy and validity of 
its hazard analysis throughout the term of its permit.



Sec. 437.57  Operating area containment.

    (a) During each permitted flight, a permittee must contain its 
reusable suborbital rocket's instantaneous impact point within an 
operating area determined in accordance with paragraph (b) and outside 
any exclusion area defined by the FAA in accordance with paragraph (c) 
of this section.
    (b) An operating area--
    (1) Must be large enough to contain each planned trajectory and all 
expected vehicle dispersions;
    (2) Must contain enough unpopulated or sparsely populated area to 
perform key flight-safety events as required by Sec. 437.59;
    (3) May not contain or be adjacent to a densely populated area or 
large concentrations of members of the public; and
    (4) May not contain or be adjacent to significant automobile 
traffic, railway traffic, or waterborne vessel traffic.
    (c) The FAA may prohibit a reusable suborbital rocket's 
instantaneous impact point from traversing certain areas within an 
operating area by designating one or more areas as exclusion areas, if 
necessary to protect public health and safety, safety of property, or 
foreign policy or national security interests of the United States. An 
exclusion area may be confined to a specific phase of flight.



Sec. 437.59  Key flight-safety event limitations.

    (a) A permittee must conduct any key flight-safety event so that the 
reusable suborbital rocket's instantaneous impact point, including its 
expected dispersion, is over an unpopulated or sparsely populated area. 
At a minimum, a key flight-safety event includes:
    (1) Ignition of any primary rocket engine,
    (2) Any staging event, or
    (3) Any envelope expansion.
    (b) A permittee must conduct each reusable suborbital rocket flight 
so that the reentry impact point does not loiter over a populated area.



Sec. 437.61  Landing and impact locations.

    For a nominal or any contingency abort landing of a reusable 
suborbital rocket, or for any nominal or contingency impact or landing 
of a component of that rocket, a permittee must use a location that--
    (a) Is big enough to contain an impact, including debris dispersion 
upon impact; and
    (b) At the time of landing or impact, does not contain any members 
of the public.



Sec. 437.63  Agreements with other entities involved in a launch or reentry.

    A permittee must comply with the agreements required by this 
section.
    (a) A permittee must have an agreement in writing with a Federal 
launch range operator, a licensed launch site operator, or any other 
party that provides access to or use of property and

[[Page 869]]

services required to support the safe launch or reentry under a permit.
    (b) Unless otherwise addressed in agreements with a licensed launch 
site operator or a Federal launch range, a permittee must have an 
agreement in writing with the following:
    (1) For overflight of navigable water, a written agreement between 
the applicant and the local United States Coast Guard district to 
establish procedures for issuing a Notice to Mariners before a permitted 
flight, and
    (2) A written agreement between the applicant and responsible Air 
Traffic Control authority having jurisdiction over the airspace through 
which a permitted launch or reentry is to take place, for measures 
necessary to ensure the safety of aircraft. The agreement must, at a 
minimum, demonstrate satisfaction of Sec. Sec. 437.69(a) and 437.71(d).



Sec. 437.65  Collision avoidance analysis.

    (a) For a permitted flight with a planned maximum altitude greater 
than 150 kilometers, a permittee must obtain a collision avoidance 
analysis from United States Strategic Command.
    (b) The collision avoidance analysis must establish each period 
during which a permittee may not initiate flight to ensure that a 
permitted vehicle and any jettisoned components do not pass closer than 
200 kilometers to a manned or mannable orbital object. A distance of 
less than 200 kilometers may be used if the distance provides an 
equivalent level of safety, and if the distance accounts for all 
uncertainties in the analysis.



Sec. 437.67  Tracking a reusable suborbital rocket.

    A permittee must--
    (a) During permitted flight, measure in real time the position and 
velocity of its reusable suborbital rocket; and
    (b) Provide position and velocity data to the FAA for post-flight 
use.



Sec. 437.69  Communications.

    (a) A permittee must be in communication with Air Traffic Control 
during all phases of flight.
    (b) A permittee must record communications affecting the safety of 
the flight.



Sec. 437.71  Flight rules.

    (a) Before initiating rocket-powered flight, a permittee must 
confirm that all systems and operations necessary to ensure that safety 
measures derived from Sec. Sec. 437.55, 437.57, 437.59, 437.61, 437.63, 
437.65, 437.67, and 437.69 are within acceptable limits.
    (b) During all phases of flight, a permittee must--
    (1) Follow flight rules that ensure compliance with Sec. Sec. 
437.55, 437.57, 437.59, and 437.61; and
    (2) Abort the flight if it would endanger the public.
    (c) A permittee may not operate a reusable suborbital rocket in a 
careless or reckless manner that would endanger any member of the public 
during any phase of flight.
    (d) A permittee may not operate a reusable suborbital rocket in 
areas designated in a Notice to Airmen under Sec. 91.137, Sec. 91.138, 
Sec. 91.141, or Sec. 91.145 of this title, unless authorized by:
    (1) Air Traffic Control; or
    (2) A Flight Standards Certificate of Waiver or Authorization.
    (e) For any phase of flight where a permittee operates a reusable 
suborbital rocket like an aircraft in the National Airspace System, a 
permittee must comply with the provisions of part 91 of this title 
specified in an experimental permit issued under this part.



Sec. 437.73  Anomaly recording, reporting and implementation of corrective actions.

    (a) A permittee must record each anomaly that affects a safety-
critical system, subsystem, process, facility, or support equipment.
    (b) A permittee must identify all root causes of each anomaly, and 
implement all corrective actions for each anomaly.
    (c) A permittee must report to the FAA any anomaly of any system 
that is necessary for complying with Sec. Sec. 437.55(a)(3), 437.57, 
and 437.59, and must report the corrective action for each reported 
anomaly.
    (d) A permittee must implement each corrective action before the 
next flight.

[[Page 870]]



Sec. 437.75  Mishap reporting, responding, and investigating.

    A permittee must report, respond to, and investigate mishaps that 
occur during permitted activities, in accordance with this section.
    (a) Reporting requirements. A permittee must--
    (1) Immediately notify the FAA Washington Operations Center if there 
is a launch or reentry accident or incident or a mishap that involves a 
fatality or serious injury, as defined in 49 CFR 830.2;
    (2) Notify within 24 hours the FAA's Office of Commercial Space 
Transportation if there is a mishap that does not involve a fatality or 
serious injury, as defined in 49 CFR 830.2; and
    (3) Submit within 5 days of the event a written preliminary report 
to the FAA's Office of Commercial Space Transportation if there is a 
launch or reentry accident or incident during a permitted flight. The 
report must identify the event as a launch or reentry accident or 
incident, and must include:
    (i) The date and time of occurrence,
    (ii) A description of the event and sequence of events leading to 
the launch or reentry accident, or launch or reentry incident, to the 
extent known,
    (iii) The intended and actual location of launch or reentry, 
including landing or impact on Earth,
    (iv) A description of any payload,
    (v) The number and general description of any fatalities and 
injuries,
    (vi) Property damage, if any, and an estimate of its value,
    (vii) A description of any hazardous materials involved in the 
event, whether on the reusable suborbital rocket or on the ground,
    (viii) Action taken by any person to contain the consequences of the 
event, and
    (ix) Weather conditions at the time of the event.
    (b) Response requirements. A permittee must--
    (1) Immediately--
    (i) Ensure the consequences of a mishap are contained and minimized; 
and
    (ii) Ensure data and physical evidence are preserved.
    (2) Report to and cooperate with FAA and National Transportation 
Safety Board (NTSB) investigations and designate one or more points of 
contact for the FAA or NTSB; and
    (3) Identify and adopt preventive measures for avoiding a recurrence 
of the event.
    (c) Investigation requirements. A permittee must--
    (1) Investigate the root cause of an event described in paragraph 
(a) of this section;
    (2) Report investigation results to the FAA upon completion; and
    (3) Identify responsibilities, including reporting responsibilities, 
for personnel assigned to conduct investigations and for any unrelated 
persons that the permittee retains to conduct or participate in 
investigations.



Sec. 437.77  Additional safety requirements.

    The FAA may impose additional safety requirements on an applicant or 
permittee proposing an activity with a hazard not otherwise addressed in 
this part. This may include a toxic hazard or the use of solid 
propellants. The FAA may also require the permittee to conduct 
additional analyses of the cause of any anomaly and corrective actions.



        Subpart D_Terms and Conditions of an Experimental Permit



Sec. 437.81  Public safety responsibility.

    A permittee must ensure that a launch or reentry conducted under an 
experimental permit is safe, and must protect public health and safety 
and the safety of property.



Sec. 437.83  Compliance with experimental permit.

    A permittee must conduct any launch or reentry under an experimental 
permit in accordance with representations made in its permit 
application, with subparts C and D of this part, and with terms and 
conditions contained in the permit.



Sec. 437.85  Allowable design changes; modification of an experimental permit.

    (a) The FAA will identify in the experimental permit the type of 
changes that the permittee may make to the

[[Page 871]]

reusable suborbital rocket design without invalidating the permit.
    (b) Except for design changes made under paragraph (a) of this 
section, a permittee must ask the FAA to modify the experimental permit 
if--
    (1) It proposes to conduct permitted activities in a manner not 
authorized by the permit; or
    (2) Any representation in its permit application that is material to 
public health and safety or the safety of property is no longer accurate 
or complete.
    (c) A permittee must prepare an application to modify an 
experimental permit and submit it in accordance with part 413 of this 
subchapter. If requested during the application process, the FAA may 
approve an alternate method for requesting permit modifications. The 
permittee must indicate any part of its permit that would be changed or 
affected by a proposed modification.
    (d) When a permittee proposes a modification, the FAA reviews the 
determinations made on the experimental permit to decide whether they 
remain valid.
    (e) When the FAA approves a modification, it issues the permittee 
either a written approval or a permit order modifying the permit if a 
stated term or condition of the permit is changed, added, or deleted. An 
approval has the full force and effect of a permit order and is part of 
the permit record.



Sec. 437.87  Records.

    (a) Except as required by paragraph (b) of this section, a permittee 
must maintain for 3 years all records, data, and other material 
necessary to verify that a permittee conducted its launch or reentry in 
accordance with its permit.
    (b) If there is a launch or reentry accident or incident, a 
permittee must preserve all records related to the event. A permittee 
must keep the records until after any Federal investigation and the FAA 
advises the permittee that it may dispose of them.
    (c) A permittee must make all records that it must maintain under 
this section available to Federal officials for inspection and copying.



Sec. 437.89  Pre-flight reporting.

    (a) Not later than 30 days before each flight or series of flights 
conducted under an experimental permit, a permittee must provide the FAA 
with the following information:
    (1) Any payload to be flown, including any payload operations during 
the flight,
    (2) When the flight or series of flights are planned,
    (3) The operating area for each flight, and
    (4) The planned maximum altitude for each flight.
    (b) Not later than 15 days before each permitted flight planned to 
reach greater than 150 km altitude, a permittee must provide the FAA its 
planned trajectory for a collision avoidance analysis.



Sec. 437.91  For-hire prohibition.

    No permittee may carry any property or human being for compensation 
or hire on a reusable suborbital rocket.



Sec. 437.93  Compliance monitoring.

    A permittee must allow access by, and cooperate with, federal 
officers or employees or other individuals authorized by the FAA to 
observe any activities of the permittee, or of its contractors or 
subcontractors, associated with the conduct of permitted activities.



Sec. 437.95  Inspection of additional reusable suborbital rockets.

    A permittee may launch or reenter additional reusable suborbital 
rockets of the same design under the permit after the FAA inspects each 
additional reusable suborbital rocket.

                        PARTS 438	439 [RESERVED]



PART 440_FINANCIAL RESPONSIBILITY--Table of Contents




Subpart A_Financial Responsibility for Licensed and Permitted Activities

Sec.
440.1 Scope of part.
440.3 Definitions.
440.5 General.
440.7 Determination of maximum probable loss.

[[Page 872]]

440.9 Insurance requirements for licensed or permitted activities.
440.11 Duration of coverage for licensed launch, including suborbital 
          launch, or permitted activities; modifications.
440.12 Duration of coverage for licensed reentry; modifications.
440.13 Standard conditions of insurance coverage.
440.15 Demonstration of compliance.
440.17 Reciprocal waiver of claims requirements.
440.19 United States payment of excess third-party liability claims.

Appendix A to Part 440--Information requirements for obtaining a maximum 
          probable loss determination for licensed or permitted 
          activities
Appendix B to Part 440--Agreement for waiver of claims and assumption of 
          responsibility for licensed activities
Appendix C to Part 440--Agreement for waiver of claims and assumption of 
          responsibility for permitted activities
Appendix D to Part 440--Agreement for waiver of claims and assumption of 
          responsibility for a crew member
Appendix E to Part 440--Agreement for waiver of claims and assumption of 
          responsibility for a space flight participant

    Authority: 49 U.S.C. 70101-70119; 49 CFR 1.47.

    Source: Docket No. FAA-2005-23449, 71 FR 75632, Dec. 15, 2006, 
unless otherwise noted.



Subpart A_Financial Responsibility for Licensed and Permitted Activities



Sec. 440.1  Scope of part.

    This part establishes financial responsibility and allocation of 
risk requirements for any launch or reentry authorized by a license or 
permit issued under this subchapter.



Sec. 440.3  Definitions.

    Except as otherwise provided in this section, any term used in this 
part and defined in 49 U.S.C. 70101-70121, or in Sec. 401.5 of this 
chapter shall have the meaning contained therein. For purposes of this 
part--
    Bodily injury means physical injury, sickness, disease, disability, 
shock, mental anguish, or mental injury sustained by any person, 
including death.
    Contractors and subcontractors means those entities that are 
involved at any level, directly or indirectly, in licensed or permitted 
activities, and includes suppliers of property and services, and the 
component manufacturers of a launch vehicle, reentry vehicle, or 
payload.
    Customer means.
    (1) Any person:
    (i) Who procures launch or reentry services from a licensee or 
permittee;
    (ii) With rights in the payload (or any part of the payload) to be 
launched or reentered by the licensee or permittee, including a 
conditional sale, lease, assignment, or transfer of rights;
    (iii) Who has placed property on board the payload for launch, 
reentry, or payload services; or
    (iv) To whom the customer has transferred its rights to the launch 
or reentry services.
    (2) A space flight participant, for the purposes of this part, is 
not a customer.
    Federal range facility means a U.S. Government-owned installation at 
which a launch or reentry takes place.
    Financial responsibility means capable of satisfying a liability 
obligation as required by 49 U.S.C. Subtitle IX, chapter 701.
    Government personnel means employees of the United States, its 
agencies, and its contractors and subcontractors, involved in launch or 
reentry services for an activity authorized by an FAA license or permit. 
Employees of the United States include members of the Armed Forces of 
the United States.
    Hazardous operations means activities, processes, and procedures 
that, because of the nature of the equipment, facilities, personnel, 
environment involved or function being performed, may result in bodily 
injury or property damage.
    Liability means a legal obligation to pay a claim for bodily injury 
or property damage resulting from a licensed or permitted activity.
    License means an authorization the FAA issues under this subchapter 
to launch or reenter a launch or reentry vehicle.
    Licensed activity means the launch of a launch vehicle or the 
reentry of a reentry vehicle conducted under a license the FAA issues.
    Maximum probable loss (MPL) means the greatest dollar amount of loss 
for

[[Page 873]]

bodily injury or property damage that is reasonably expected to result 
from a licensed or permitted activity;
    (1) Losses to third parties, excluding Government personnel and 
other launch or reentry participants' employees involved in licensed or 
permitted activities, that are reasonably expected to result from a 
licensed or permitted activity are those that have a probability of 
occurrence of no less than one in ten million.
    (2) Losses to Government property and Government personnel involved 
in licensed or permitted activities that are reasonably expected to 
result from licensed or permitted activities are those that have a 
probability of occurrence of no less than one in one hundred thousand.
    Permit means an authorization the FAA issues under this subchapter 
for the launch or reentry of a reusable suborbital rocket.
    Permitted activity means the launch or reentry of a reusable 
suborbital rocket conducted under a permit issued by the FAA.
    Property damage means partial or total destruction, impairment, or 
loss of tangible property, real or personal.
    Regulations mean the Commercial Space Transportation Licensing 
Regulations codified at 14 CFR Ch. III.
    Third party means
    (1) Any person other than:
    (i) The United States, any of its agencies, and its contractors and 
subcontractors involved in launch or reentry services for a licensed or 
permitted activity;
    (ii) A licensee, permittee, and its contractors and subcontractors 
involved in launch or reentry services for a licensed or permitted 
activity;
    (iii) A customer and its contractors and subcontractors involved in 
launch or reentry services for a licensed or permitted activity;
    (iv) A member of a crew; and
    (v) A space flight participant.
    (2) Government personnel, as defined in this section, are third 
parties.
    United States means the United States Government, including each of 
its agencies.



Sec. 440.5  General.

    (a) No person may commence or conduct any launch or reentry activity 
that requires a license or permit unless that person has demonstrated 
compliance with the requirements of this part.
    (b) The FAA will prescribe the amount of financial responsibility a 
licensee or permittee must obtain and any adjustments of the amount in a 
license or permit order issued concurrent with or subsequent to the 
issuance of a license or a permit.
    (c) Demonstration of financial responsibility under this part shall 
not relieve a licensee of ultimate responsibility for liability, loss, 
or damage sustained by the United States resulting from a licensed 
activity, except to the extent that:
    (1) Liability, loss, or damage sustained by the United States 
results from willful misconduct of the United States or its agents;
    (2) Any covered claim of a third party for bodily injury or property 
damage arising out of any particular licensed activity exceeds the 
amount of financial responsibility required under Sec. 440.9(c) of this 
part and does not exceed $1,500,000,000 (as adjusted for inflation) 
above such amount, and are payable pursuant to 49 U.S.C. 70113 and Sec. 
440.19 of this part. A claim of an employee of any entity listed in 
paragraphs (1)(ii) through (1)(iii) in the Third party definition in 
Sec. 440.3 of this part for bodily injury or property damage is not a 
covered claim;
    (3) A covered claim for property loss or damage exceeds the amount 
of financial responsibility required under Sec. 440.9(e) of this part 
and does not result from willful misconduct of the licensee; or
    (4) The licensee has no liability for covered claims by third 
parties for bodily injury or property damage arising out of any 
particular launch or reentry that exceeds $1,500,000,000 (as adjusted 
for inflation) above the amount of financial responsibility required 
under Sec. 440.9(c).
    (d) Demonstration of financial responsibility under this part does 
not relieve a permittee of ultimate responsibility for liability, loss, 
or damage

[[Page 874]]

sustained by the United States resulting from a permitted activity, 
except to the extent that:
    (1) Liability, loss, or damage sustained by the United States 
results from willful misconduct of the United States or its agents; or
    (2) A covered claim for property loss or damage to the United States 
exceeds the amount of financial responsibility required under Sec. 
440.9(e) and does not result from willful misconduct of the permittee.
    (e) A licensee's or permittee's failure to comply with any 
requirement of this part may result in suspension or revocation of a 
license or permit, and subject the licensee or permittee to civil 
penalties as provided in part 405 of this chapter.



Sec. 440.7  Determination of maximum probable loss.

    (a) The FAA will determine the maximum probable loss (MPL) from 
covered claims by a third party for bodily injury or property damage, 
and the United States, its agencies, and its contractors and 
subcontractors for covered property damage or loss, resulting from a 
permitted or licensed activity. The maximum probable loss determination 
forms the basis for financial responsibility requirements issued in a 
license or permit order.
    (b) The FAA issues its determination of maximum probable loss no 
later than ninety days after a licensee or permittee has requested a 
determination and submitted all information required by the FAA to make 
the determination. The FAA will consult with Federal agencies that are 
involved in, or whose personnel or property are exposed to risk of 
damage or loss as a result of, a licensed or permitted activity before 
issuing a license or permit order prescribing financial responsibility 
requirements, and shall notify the licensee, or permittee, if 
interagency consultation may delay issuance of the MPL determination.
    (c) Appendix A of this part contains information requirements for 
obtaining a maximum probable loss determination. Any person requesting a 
determination of maximum probable loss must submit the information 
required by Appendix A, unless the FAA has waived a requirement. In lieu 
of submitting required information, a person requesting a maximum 
probable loss determination may designate and certify certain 
information previously submitted for a prior determination as complete, 
valid, and equally applicable to its current request. The requester is 
responsible for the continuing accuracy and completeness of information 
submitted under this part and must promptly report any changes in 
writing.
    (d) The FAA will amend a determination of maximum probable loss 
required under this section at any time prior to completion of licensed 
or permitted activities as warranted by supplementary information 
provided to or obtained by the FAA after the MPL determination is 
issued. Any change in financial responsibility requirements as a result 
of an amended MPL determination shall be set forth in a license or 
permit order.
    (e) The FAA may make a determination of maximum probable loss at any 
time other than as set forth in paragraph (b) of this section upon 
request by any person.



Sec. 440.9  Insurance requirements for licensed or permitted activities.

    (a) As a condition of each license or permit, a licensee or 
permittee must comply with all insurance requirements of this section 
and of a license or permit issued by the FAA, or otherwise demonstrate 
the required amount of financial responsibility.
    (b) A licensee or permittee must obtain and maintain in effect a 
policy or policies of liability insurance, in an amount determined by 
the FAA under paragraph (c) of this section, that protects the following 
persons as additional insureds to the extent of their respective 
potential liabilities against covered claims by a third party for bodily 
injury or property damage resulting from a licensed or permitted 
activity:
    (1) The licensee or permittee, its customer, and their respective 
contractors and subcontractors, and the employees of each, involved in a 
licensed or permitted activity;
    (2) The United States, its agencies, and its contractors and 
subcontractors

[[Page 875]]

involved in a licensed or permitted activity; and
    (3) Government personnel.
    (c) The FAA will prescribe for each licensee or permittee the amount 
of insurance required to compensate the total of covered third-party 
claims for bodily injury or property damage resulting from a licensed or 
permitted activity in connection with any particular launch or reentry. 
A covered third-party claim includes a claim by the United States, its 
agencies, and its contractors and subcontractors for damage or loss to 
property other than property for which insurance is required under 
paragraph (d) of this section. The amount of insurance required is based 
upon the FAA's determination of maximum probable loss; however, it will 
not exceed the lesser of:
    (1) $500 million; or
    (2) The maximum liability insurance available on the world market at 
a reasonable cost, as determined by the FAA.
    (d) The licensee or permittee must obtain and maintain in effect a 
policy or policies of insurance, in an amount determined by the FAA 
under paragraph (e) of this section, that covers claims by the United 
States, its agencies, and its contractors and subcontractors involved in 
a licensed or permitted activity for property damage or loss resulting 
from a licensed or permitted activity. Property covered by this 
insurance must include all property owned, leased, or occupied by, or 
within the care, custody, or control of, the United States and its 
agencies, and its contractors and subcontractors involved in a licensed 
or permitted activity, at a Federal range facility. Insurance must 
protect the United States and its agencies, and its contractors and 
subcontractors involved in a licensed or permitted activity.
    (e) The FAA will prescribe for each licensee or permittee the amount 
of insurance required to compensate claims for property damage under 
paragraph (d) of this section resulting from a licensed or permitted 
activity in connection with any particular launch or reentry. The amount 
of insurance is based upon a determination of maximum probable loss; 
however, it will not exceed the lesser of:
    (1) $100 million; or
    (2) The maximum available on the world market at a reasonable cost, 
as determined by the FAA.
    (f) In lieu of a policy of insurance, a licensee or permittee may 
demonstrate financial responsibility in another manner meeting the terms 
and conditions for insurance of this part. The licensee or permittee 
must describe in detail the method proposed for demonstrating financial 
responsibility and how it ensures that the licensee or permittee is able 
to cover claims as required under this part.



Sec. 440.11  Duration of coverage for licensed launch, including suborbital launch, or permitted activities; modifications.

    (a) Insurance coverage required under Sec. 440.9, or other form of 
financial responsibility, shall attach when a licensed launch or 
permitted activity starts, and remain in full force and effect as 
follows:
    (1) Until completion of licensed launch or permitted activities at a 
launch or reentry site; and
    (2) For orbital launch, until the later of--
    (i) Thirty days following payload separation, or attempted payload 
separation in the event of a payload separation anomaly; or
    (ii) Thirty days from ignition of the launch vehicle.
    (3) For a suborbital launch, until the later of--
    (i) Motor impact and payload recovery; or
    (ii) The FAA's determination that risk to third parties and 
Government property as a result of licensed launch or permitted 
activities is sufficiently small that financial responsibility is no 
longer necessary. That determination is made through the risk analysis 
conducted before the launch to determine MPL and specified in a license 
or permit order.
    (b) Financial responsibility required under this part may not be 
replaced, canceled, changed, withdrawn, or in any way modified to reduce 
the limits of liability or the extent of coverage, nor expire by its own 
terms, prior to the time specified in a license or permit order, unless 
the FAA is notified at

[[Page 876]]

least 30 days in advance and expressly approves the modification.



Sec. 440.12  Duration of coverage for licensed reentry; modifications.

    (a) For reentry, insurance coverage required under Sec. 440.9, or 
other form of financial responsibility, shall attach upon commencement 
of licensed reentry, and remain in full force and effect as follows:
    (1) For ground operations, until completion of licensed reentry at 
the reentry site; and
    (2) For other licensed reentry activities, 30 days from initiation 
of reentry flight; however, in the event of an abort that results in the 
reentry vehicle remaining on orbit, insurance shall remain in place 
until the FAA's determination that risk to third parties and Government 
property as a result of licensed reentry is sufficiently small that 
financial responsibility is no longer necessary, as determined by the 
FAA through the risk analysis conducted to determine MPL and specified 
in a license order.
    (b) Financial responsibility required under this part may not be 
replaced, canceled, changed, withdrawn, or in any way modified to reduce 
the limits of liability or the extent of coverage, nor expire by its own 
terms, prior to the time specified in a license order, unless the FAA is 
notified at least 30 days in advance and expressly approves the 
modification.



Sec. 440.13  Standard conditions of insurance coverage.

    (a) Insurance obtained under Sec. 440.9 must comply with each of 
the following terms and conditions of coverage:
    (1) Bankruptcy or insolvency of an insured, including any additional 
insured, shall not relieve an insurer of any of its obligations under 
any policy.
    (2) Policy limits shall apply separately to each occurrence and, for 
each occurrence to the total of claims arising out of a licensed or 
permitted activity in connection with any particular launch or reentry.
    (3) Except as provided in this section, each policy must pay claims 
from the first dollar of loss, without regard to any deductible, to the 
limits of the policy. A licensee or permittee may obtain a policy 
containing a deductible amount if the amount of the deductible is placed 
in an escrow account or otherwise demonstrated to be unobligated, 
unencumbered funds of the licensee or permittee, available to compensate 
claims at any time claims may arise.
    (4) No policy may be invalidated by any action or inaction of the 
licensee or permittee or any additional insured, even by nonpayment by 
the licensee or permittee of the policy premium, and each policy must 
insure the licensee or permittee and each additional insured regardless 
of any breach or violation of any warranties, declarations, or 
conditions contained in the policies by the licensee or permittee or any 
additional insured (other than a breach or violation by the licensee, 
permittee or an additional insured, and then only as against that 
licensee, permittee or additional insured).
    (5) Each exclusion from coverage must be specified.
    (6) Insurance shall be primary without right of contribution from 
any other insurance that is carried by the licensee or permittee or any 
additional insured.
    (7) Each policy must expressly provide that all of its provisions, 
except the policy limits, operate in the same manner as if there were a 
separate policy with and covering the licensee or permittee and each 
additional insured.
    (8) Each policy must be placed with an insurer of recognized 
reputation and responsibility that either:
    (i) Is licensed to do business in any State, territory, possession 
of the United States, or the District of Columbia; or
    (ii) Includes in each of its policies or insurance obtained under 
this part a contract clause in which the insurer agrees to submit to the 
jurisdiction of a court of competent jurisdiction within the United 
States and designates an authorized agent within the United States for 
service of legal process on the insurer.
    (9) Except as to claims resulting from the willful misconduct of the 
United States or any of its agents, the insurer shall waive any and all 
rights of subrogation against each of the parties protected by required 
insurance.
    (b) [Reserved]

[[Page 877]]



Sec. 440.15  Demonstration of compliance.

    (a) A licensee or permittee must submit to the FAA evidence of 
financial responsibility and compliance with allocation of risk 
requirements under this part, as follows, unless a license or permit 
order specifies otherwise due to the proximity of the intended date for 
commencement of licensed or permitted activities:
    (1) All reciprocal waiver of claims agreements required under Sec. 
440.17(c) must be submitted at least 30 days before the start of any 
licensed or permitted activity involving a customer, crew member, or 
space flight participant;
    (2) Evidence of insurance must be submitted at least 30 days before 
commencement of any licensed launch or permitted activity, and for 
licensed reentry no less than 30 days before commencement of launch 
activities involving the reentry licensee;
    (3) Evidence of financial responsibility in a form other than 
insurance, as provided under Sec. 440.9(f), must be submitted at least 
60 days before commencement of a licensed or permitted activity; and
    (4) Evidence of renewal of insurance or other form of financial 
responsibility must be submitted at least 30 days in advance of its 
expiration date.
    (b) Upon a complete demonstration of compliance with financial 
responsibility and allocation of risk requirements under this part, the 
requirements of this part shall preempt each and any provision in any 
agreement between the licensee or permittee and an agency of the United 
States governing access to or use of United States launch or reentry 
property or launch or reentry services for a licensed or permitted 
activity which addresses financial responsibility, allocation of risk 
and related matters covered by 49 U.S.C. 70112, 70113.
    (c) A licensee or permittee must demonstrate compliance as follows:
    (1) The licensee or permittee must provide proof of the existence of 
the insurance required by Sec. 440.9 by:
    (i) Certifying to the FAA that it has obtained insurance in 
compliance with the requirements of this part and any applicable license 
or permit order;
    (ii) Filing with the FAA one or more certificates of insurance 
evidencing insurance coverage by one or more insurers under a currently 
effective and properly endorsed policy or policies of insurance, 
applicable to a licensed or permitted activity, on terms and conditions 
and in amounts prescribed under this part, and specifying policy 
exclusions;
    (iii) In the event of any policy exclusions or limitations of 
coverage that may be considered usual under Sec. 440.19(c), or for 
purposes of implementing the Government's waiver of claims for property 
damage under 49 U.S.C. 70112(b)(2), certifying that insurance covering 
the excluded risks is not commercially available at reasonable cost; and
    (iv) Submitting to the FAA, for signature by the Department on 
behalf of the United States Government, the waiver of claims and 
assumption of responsibility agreement required by Sec. 440.17(c), 
executed by the licensee or permittee and its customer.
    (v) Submitting to the FAA, for signature by the Department on behalf 
of the United States Government, an agreement to waive claims and assume 
responsibility required by Sec. 440.17(e), executed by each space 
flight participant.
    (vi) Submitting to the FAA, for signature by the Department on 
behalf of the United States Government, an agreement to waive claims and 
assume responsibility required by Sec. 440.17(f), executed by each 
member of the crew.
    (2) Any certification required by this section must be signed by a 
duly authorized officer of the licensee or permittee.
    (d) Each certificate of insurance required by paragraph (c)(1)(ii) 
of this section must be signed by the insurer issuing the policy and 
accompanied by an opinion of the insurance broker that the insurance 
obtained by the licensee or permittee complies with all the requirements 
for insurance of this part and any applicable license or permit order.
    (e) The licensee or permittee must maintain, and make available for 
inspection by the FAA upon request, all required policies of insurance 
and other

[[Page 878]]

documents necessary to demonstrate compliance with this part.
    (f) In the event the licensee or permittee demonstrates financial 
responsibility using means other than insurance, as provided under Sec. 
440.9(f), the licensee or permittee must provide proof that it has met 
the requirements of this part and of a FAA issued license or permit 
order.



Sec. 440.17  Reciprocal waiver of claims requirements.

    (a) As a condition of each license or permit, the licensee or 
permittee must comply with the reciprocal waiver of claims requirements 
of this section.
    (b) The licensee or permittee shall implement a reciprocal waiver of 
claims with each of its contractors and subcontractors, each customer 
and each of the customer's contractors and subcontractors, under which 
each party waives and releases claims against all the other parties to 
the waiver and agrees to assume financial responsibility for property 
damage it sustains and for bodily injury or property damage sustained by 
its own employees, and to hold harmless and indemnify each other from 
bodily injury or property damage sustained by its employees, resulting 
from a licensed or permitted activity, regardless of fault.
    (c) For each licensed or permitted activity in which the U.S. 
Government, any agency, or its contractors and subcontractors is 
involved or where property insurance is required under Sec. 440.9(d), 
the Federal Aviation Administration of the Department of Transportation, 
the licensee or permittee, and its customer shall enter into a three-
party reciprocal waiver of claims agreement. The three-party reciprocal 
waiver of claims shall be in the form set forth in Appendix B of this 
part, for licensed activity, or Appendix C of this part, for permitted 
activity, of this part or in a form that satisfies the requirements.
    (d) The licensee or permittee, its customer, and the Federal 
Aviation Administration of the Department of Transportation on behalf of 
the United States and its agencies but only to the extent provided in 
legislation, must agree in any waiver of claims agreement required under 
this part to indemnify another party to the agreement from claims by the 
indemnifying party's contractors and subcontractors arising out of the 
indemnifying party's failure to implement properly the waiver 
requirement.
    (e) For each licensed or permitted activity in which the U.S. 
Government, any of its agencies, or its contractors and subcontractors 
are involved, the Federal Aviation Administration of the Department of 
Transportation and each space flight participant shall enter into or 
have in place a reciprocal waiver of claims agreement in the form of the 
agreement in Appendix E of this part or that satisfies its requirements.
    (f) For each licensed or permitted activity in which the U.S. 
Government, any of its agencies, or its contractors and subcontractors 
is involved, the Federal Aviation Administration of the Department of 
Transportation and each crew member shall enter into or have in place a 
reciprocal waiver of claims agreement in the form of the agreement in 
Appendix D of this part or that satisfies its requirements.



Sec. 440.19  United States payment of excess third-party liability claims.

    (a) The United States pays successful covered claims (including 
reasonable expenses of litigation or settlement) of a third party 
against a licensee, a customer, and the contractors and subcontractors 
of the licensee and the customer, and the employees of each involved in 
licensed activities, and the contractors and subcontractors of the 
United States and its agencies, and their employees, involved in 
licensed activities to the extent provided in an appropriation law or 
other legislative authority providing for payment of claims in 
accordance with 49 U.S.C. 70113, and to the extent the total amount of 
such covered claims arising out of any particular launch or reentry:
    (1) Exceeds the amount of insurance required under Sec. 440.9(b); 
and
    (2) Is not more than $1,500,000,000 (as adjusted for inflation 
occurring after January 1, 1989) above that amount.
    (b) Payment by the United States under paragraph (a) of this section 
shall not be made for any part of such

[[Page 879]]

claims for which bodily injury or property damage results from willful 
misconduct by the party seeking payment.
    (c) The United States shall provide for payment of claims by third 
parties for bodily injury or property damage that are payable under 49 
U.S.C. 70113 and not covered by required insurance under Sec. 440.9(b), 
without regard to the limitation under paragraph (a)(1) of this section, 
because of an insurance policy exclusion that is usual. A policy 
exclusion is considered usual only if insurance covering the excluded 
risk is not commercially available at reasonable rates. The licensee 
must submit a certification in accordance with Sec. 440.15(c)(1)(iii) 
of this part for the United States to cover the claims.
    (d) Upon the expiration of the policy period prescribed in 
accordance with Sec. 440.11(a), the United States shall provide for 
payment of claims that are payable under 49 U.S.C. 70113 from the first 
dollar of loss up to $1,500,000,000 (as adjusted for inflation occurring 
after January 1, 1989).
    (e) Payment by the United States of excess third-party claims under 
49 U.S.C. 70113 shall be subject to:
    (1) Prompt notice by the licensee to the FAA that the total amount 
of claims arising out of licensed activities exceeds, or is likely to 
exceed, the required amount of financial responsibility. For each claim, 
the notice must specify the nature, cause, and amount of the claim or 
lawsuit associated with the claim, and the party or parties who may 
otherwise be liable for payment of the claim;
    (2) Participation or assistance in the defense of the claim or 
lawsuit by the United States, at its election;
    (3) Approval by the FAA of any settlement, or part of a settlement, 
to be paid by the United States; and
    (4) Approval by Congress of a compensation plan prepared by the FAA 
and submitted by the President.
    (f) The FAA will:
    (1) Prepare a compensation plan outlining the total amount of claims 
and meeting the requirements set forth in 49 U.S.C. 70113;
    (2) Recommend sources of funds to pay the claims; and
    (3) Propose legislation as required to implement the plan.
    (g) The FAA may withhold payment of a claim if it finds that the 
amount is unreasonable, unless it is the final order of a court that has 
jurisdiction over the matter.



Sec. Appendix A to Part 440--Information Requirements for Obtaining a 

Maximum Probable Loss Determination for Licensed or Permitted Activities

    Any person requesting a maximum probable loss determination shall 
submit the following information to the FAA, unless the FAA has waived a 
particular information requirement under 14 CFR 440.7(c):

    Part 1: Information Requirements for Licensed Launch, Including 
                            Suborbital Launch

                         I. General Information

    A. Mission description.
    1. A description of mission parameters, including:
    a. Launch trajectory;
    b. Orbital inclination; and
    c. Orbit altitudes (apogee and perigee).
    2. Flight sequence.
    3. Staging events and the time for each event.
    4. Impact locations.
    5. Identification of the launch site facility, including the launch 
complex on the site, planned date of launch, and launch windows.
    6. If the applicant has previously been issued a license or permit 
to conduct activities using the same vehicle from the same launch site, 
a description of any differences planned in the conduct of proposed 
activities.
    B. Launch vehicle description.
    1. General description of the launch vehicle and its stages, 
including dimensions.
    2. Description of major systems, including safety systems.
    3. Description of rocket motors and type of fuel used.
    4. Identification of all propellants to be used and their hazard 
classification under the Hazardous Materials Table, 49 CFR 172.101.
    5. Description of hazardous components.
    C. Payload.
    1. General description of the payload, including type (e.g., 
telecommunications, remote sensing), propellants, and hazardous 
components or materials, such as toxic or radioactive substances.
    D. Flight safety system.
    1. Identification of any flight safety system on the vehicle, 
including a description of operations and component location on the 
vehicle.

[[Page 880]]

                  II. Pre-Flight Processing Operations

    A. General description of pre-flight operations including vehicle 
processing consisting of an operational flow diagram showing the overall 
sequence and location of operations, commencing with arrival of vehicle 
components at the launch site facility through final safety checks and 
countdown sequence, and designation of hazardous operations, as defined 
in 14 CFR 440.3. For purposes of these information requirements, payload 
processing, as opposed to integration, is not a hazardous operation.
    B. For each hazardous operation, including but not limited to 
fueling, solid rocket motor build-up, ordnance installation, ordnance 
checkout, movement of hazardous materials, and payload integration:
    1. Identification of location where each operation will be 
performed, including each building or facility identified by name or 
number.
    2. Identification of facilities adjacent to the location where each 
operation will be performed and therefore exposed to risk, identified by 
name or number.
    3. Maximum number of Government personnel and individuals not 
involved in licensed activities who may be exposed to risk during each 
operation. For Government personnel, identification of his or her 
employer.
    4. Identification of launch site policies or requirements applicable 
to the conduct of operations.

                         III. Flight Operations

    A. Identification of launch site facilities exposed to risk during 
licensed flight.
    B. Identification of accident failure scenarios, probability 
assessments for each, and estimation of risks to Government personnel, 
individuals not involved in licensed activities, and Government 
property, due to property damage or bodily injury. The estimation of 
risks for each scenario shall take into account the number of such 
individuals at risk as a result of lift-off and flight of a launch 
vehicle (on-range, off-range, and down-range) and specific, unique 
facilities exposed to risk. Scenarios shall cover the range of launch 
trajectories, inclinations and orbits for which authorization is sought 
in the license application.
    C. On-orbit risk analysis assessing risks posed by a launch vehicle 
to operational satellites.
    D. Reentry risk analysis assessing risks to Government personnel and 
individuals not involved in licensed activities as a result of 
reentering debris or reentry of the launch vehicle or its components.
    E. Trajectory data as follows: Nominal and 3-sigma lateral 
trajectory data in x, y, z and x (dot), y (dot), z (dot) coordinates in 
one-second intervals, data to be pad-centered with x being along the 
initial launch azimuth and continuing through impact for suborbital 
flights, and continuing through orbital insertion or the end of powered 
flight for orbital flights.
    F. Tumble-turn data for guided vehicles only, as follows: For 
vehicles with gimbaled nozzles, tumble turn data with zeta angles and 
velocity magnitudes stated. A separate table is required for each 
combination of fail times (every two to four seconds), and significant 
nozzle angles (two or more small angles, generally between one and five 
degrees).
    G. Identification of debris lethal areas and the projected number 
and ballistic coefficient of fragments expected to result from flight 
termination, initiated either by command or self-destruct mechanism, for 
lift-off, land overflight, and reentry.

                  IV. Post-Flight Processing Operations

    A. General description of post-flight ground operations including 
overall sequence and location of operations for removal of vehicle 
components and processing equipment from the launch site facility and 
for handling of hazardous materials, and designation of hazardous 
operations.
    B. Identification of all facilities used in conducting post-flight 
processing operations.
    C. For each hazardous operation:
    1. Identification of location where each operation is performed, 
including each building or facility identified by name or number.
    2. Identification of facilities adjacent to location where each 
operation is performed and exposed to risk, identified by name or 
number.
    3. Maximum number of Government personnel and individuals not 
involved in licensed launch activities that may be exposed to risk 
during each operation. For Government personnel, identification of his 
or her employer.
    4. Identification of launch site facility policies or requirements 
applicable to the conduct of operations.

          Part 2: Information Requirements for Licensed Reentry

                         I. General Information

    A. Reentry mission description.
    1. A description of mission parameters, including:
    a. Orbital inclination; and
    b. Orbit altitudes (apogee and perigee).
    c. Reentry trajectories.
    2. Reentry flight sequences.
    3. Reentry initiation events and the time for each event.
    4. Nominal landing location, alternative landing sites and 
contingency abort sites.
    5. Identification of landing facilities, (planned date of reentry), 
and reentry windows.

[[Page 881]]

    6. If the applicant has previously been issued a license or permit 
to conduct reentry activities using the same reentry vehicle to the same 
reentry site facility, a description of any differences planned in the 
conduct of proposed activities.
    B. Reentry vehicle description.
    1. General description of the reentry vehicle, including dimensions.
    2. Description of major systems, including safety systems.
    3. Description of propulsion system (reentry initiation system) and 
type of fuel used.
    4. Identification of all propellants to be used and their hazard 
classification under the Hazardous Materials Table, 49 CFR 172.101.
    5. Description of hazardous components.
    C. Payload.
    1. General description of any payload, including type (e.g., 
telecommunications, remote sensing), propellants, and hazardous 
components or materials, such as toxic or radioactive substances.
    D. Flight Safety System.
    1. Identification of any flight safety system on the reentry 
vehicle, including a description of operations and component location on 
the vehicle.

                          II. Flight Operations

    A. Identification of reentry site facilities exposed to risk during 
vehicle reentry and landing.
    B. Identification of accident failure scenarios, probability 
assessments for each, and estimation of risks to Government personnel, 
individuals not involved in licensed reentry, and Government property, 
due to property damage or bodily injury. The estimation of risks for 
each scenario shall take into account the number of such individuals at 
risk as a result of reentry (flight) and landing of a reentry vehicle 
(on-range, off-range, and down-range) and specific, unique facilities 
exposed to risk. Scenarios shall cover the range of reentry trajectories 
for which authorization is sought.
    C. On-orbit risk analysis assessing risks posed by a reentry vehicle 
to operational satellites during reentry.
    D. Reentry risk analysis assessing risks to Government personnel and 
individuals not involved in licensed activities as a result of 
inadvertent or random reentry of the launch vehicle or its components.
    E. Nominal and 3-sigma dispersed trajectories in one-second 
intervals, from reentry initiation through landing or impact. 
(Coordinate system will be specified on a case-by-case basis)
    F. Three-sigma landing or impact dispersion area in downrange 
() and crossrange
    () measured from the nominal and contingency 
landing or impact target. The applicant is responsible for including all 
significant landing or impact dispersion constituents in the 
computations of landing or impact dispersion areas. The dispersion 
constituents should include, but not be limited to: Variation in orbital 
position and velocity at the reentry initiation time; variation in re-
entry initiation time offsets, either early or late; variation in the 
bodies' ballistic coefficient; position and velocity variation due to 
winds; and variations in re-entry retro-maneuvers.
    G. Malfunction turn data (tumble, trim) for guided (controllable) 
vehicles. The malfunction turn data shall include the total angle turned 
by the velocity vector versus turn duration time at one second 
intervals; the magnitude of the velocity vector versus turn duration 
time at one second intervals; and an indication on the data where the 
re-entry body will impact the Earth, or breakup due to aerodynamic 
loads. A malfunction turn data set is required for each malfunction 
time. Malfunction turn start times shall not exceed four-second 
intervals along the trajectory.
    H. Identification of debris casualty areas and the projected number 
and ballistic coefficient of fragments expected to result from each 
failure mode during reentry, including random reentry.

                 III. Post-Flight Processing Operations

    A. General description of post-flight ground operations including 
overall sequence and location of operations for removal of vehicle and 
components and processing equipment from the reentry site facility and 
for handling of hazardous materials, and designation of hazardous 
operations.
    B. Identification of all facilities used in conducting post-flight 
processing operations.
    C. For each hazardous operation:
    1. Identification of location where each operation is performed, 
including each building or facility identified by name or number.
    2. Identification of facilities adjacent to location where each 
operation is performed and exposed to risk, identified by name or 
number.
    3. Maximum number of Government personnel and individuals not 
involved in licensed reentry activities who may be exposed to risk 
during each operation. For Government personnel, identification of his 
or her employer.
    4. Identify and provide reentry site facility policies or 
requirements applicable to the conduct of operations.

        Part 3: Information Requirements for Permitted Activities

    In addition to the information required in part 437 subpart B, an 
applicant for an experimental permit must provide, for each permitted 
pre-flight and post-flight operation, the following information to the 
FAA:

[[Page 882]]

    A. Identification of location where each operation will be 
performed, including any U.S. Government or third party facilities 
identified by name or number.
    B. Identification of any U.S. Government or third party facilities 
adjacent to the location where each operation will be performed and 
therefore exposed to risk, identified by name or number.
    C. Maximum number of Government personnel and individuals not 
involved in permitted activities that may be exposed to risk during each 
operation. For Government personnel, identification of his or her 
employer.



Sec. Appendix B to Part 440--Agreement for Waiver of Claims and 

          Assumption of Responsibility for Licensed Activities

 Part 1--Waiver of Claims and Assumption of Responsibility for Licensed 
                   Launch, including Suborbital Launch

    THIS AGREEMENT is entered into this----day of--------, by and among 
[Licensee] (the ``Licensee''), [Customer] (the ``Customer'') and the 
Federal Aviation Administration of the Department of Transportation, on 
behalf of the United States Government (collectively, the ``Parties''), 
to implement the provisions of section 440.17(c) of the Commercial Space 
Transportation Licensing Regulations, 14 CFR Ch. III (the 
``Regulations''). This agreement applies to the launch of [Payload] 
payload on a [Launch Vehicle] vehicle at [Location of Launch Site]. In 
consideration of the mutual releases and promises contained herein, the 
Parties hereby agree as follows:

                             1. Definitions

    Contractors and Subcontractors means entities described in Sec. 
440.3 of the Regulations.
    Customer means the above-named Customer on behalf of the Customer 
and any person described in Sec. 440.3 of the Regulations.
    License means License No.----issued on--------, by the Associate 
Administrator for Commercial Space Transportation, Federal Aviation 
Administration, Department of Transportation, to the Licensee, including 
all license orders issued in connection with the License.
    Licensee means the Licensee and any transferee of the Licensee under 
49 U.S.C. Subtitle IX, ch. 701.
    United States means the United States and its agencies involved in 
Licensed Activities.
    Except as otherwise defined herein, terms used in this Agreement and 
defined in 49 U.S.C. Subtitle IX, ch. 701--Commercial Space Launch 
Activities, or in the Regulations, shall have the same meaning as 
contained in 49 U.S.C. Subtitle IX, ch. 701, or the Regulations, 
respectively.

                     2. Waiver and Release of Claims

    (a) Licensee hereby waives and releases claims it may have against 
Customer and the United States, and against their respective Contractors 
and Subcontractors, for Property Damage it sustains and for Bodily 
Injury or Property Damage sustained by its own employees, resulting from 
Licensed Activities, regardless of fault.
    (b) Customer hereby waives and releases claims it may have against 
Licensee and the United States, and against their respective Contractors 
and Subcontractors, for Property Damage it sustains and for Bodily 
Injury or Property Damage sustained by its own employees, resulting from 
Licensed Activities, regardless of fault.
    (c) The United States hereby waives and releases claims it may have 
against Licensee and Customer, and against their respective Contractors 
and Subcontractors, for Property Damage it sustains, and for Bodily 
Injury or Property Damage sustained by its own employees, resulting from 
Licensed Activities, regardless of fault, to the extent that claims it 
would otherwise have for such damage or injury exceed the amount of 
insurance or demonstration of financial responsibility required under 
sections 440.9(c) and (e), respectively, of the Regulations.

                     3. Assumption of Responsibility

    (a) Licensee and Customer shall each be responsible for Property 
Damage it sustains and for Bodily Injury or Property Damage sustained by 
its own employees, resulting from Licensed Activities, regardless of 
fault. Licensee and Customer shall each hold harmless and indemnify each 
other, the United States, and the Contractors and Subcontractors of each 
Party, for Bodily Injury or Property Damage sustained by its own 
employees, resulting from Licensed Activities, regardless of fault.
    (b) The United States shall be responsible for Property Damage it 
sustains, and for Bodily Injury or Property Damage sustained by its own 
employees, resulting from Licensed Activities, regardless of fault, to 
the extent that claims it would otherwise have for such damage or injury 
exceed the amount of insurance or demonstration of financial 
responsibility required under sections 440.9(c) and (e), respectively, 
of the Regulations.

 4. Extension of Assumption of Responsibility and Waiver and Release of 
                                 Claims

    (a) Licensee shall extend the requirements of the waiver and release 
of claims, and the assumption of responsibility, hold harmless, and 
indemnification, as set forth in paragraphs 2(a) and 3(a), respectively, 
to its Contractors and Subcontractors by requiring them to waive and 
release all claims they

[[Page 883]]

may have against Customer and the United States, and against the 
respective Contractors and Subcontractors of each, and to agree to be 
responsible, for Property Damage they sustain and to be responsible, 
hold harmless and indemnify Customer and the United States, and the 
respective Contractors and Subcontractors of each, for Bodily Injury or 
Property Damage sustained by their own employees, resulting from 
Licensed Activities, regardless of fault.
    (b) Customer shall extend the requirements of the waiver and release 
of claims, and the assumption of responsibility, hold harmless, and 
indemnification, as set forth in paragraphs 2(b) and 3(a), respectively, 
to its Contractors and Subcontractors by requiring them to waive and 
release all claims they may have against Licensee and the United States, 
and against the respective Contractors and Subcontractors of each, and 
to agree to be responsible, for Property Damage they sustain and to be 
responsible, hold harmless and indemnify Licensee and the United States, 
and the respective Contractors and Subcontractors of each, for Bodily 
Injury or Property Damage sustained by their own employees, resulting 
from Licensed Activities, regardless of fault.
    (c) The United States shall extend the requirements of the waiver 
and release of claims, and the assumption of responsibility as set forth 
in paragraphs 2(c) and 3(b), respectively, to its Contractors and 
Subcontractors by requiring them to waive and release all claims they 
may have against Licensee and Customer, and against the respective 
Contractors and Subcontractors of each, and to agree to be responsible, 
for any Property Damage they sustain and for any Bodily Injury or 
Property Damage sustained by their own employees, resulting from 
Licensed Activities, regardless of fault, to the extent that claims they 
would otherwise have for such damage or injury exceed the amount of 
insurance or demonstration of financial responsibility required under 
sections 440.9(c) and (e), respectively, of the Regulations.

                           5. Indemnification

    (a) Licensee shall hold harmless and indemnify Customer and its 
directors, officers, servants, agents, subsidiaries, employees and 
assignees, or any of them, and the United States and its agencies, 
servants, agents, subsidiaries, employees and assignees, or any of them, 
from and against liability, loss or damage arising out of claims that 
Licensee's Contractors and Subcontractors may have for Property Damage 
sustained by them and for Bodily Injury or Property Damage sustained by 
their employees, resulting from Licensed Activities.
    (b) Customer shall hold harmless and indemnify Licensee and its 
directors, officers, servants, agents, subsidiaries, employees and 
assignees, or any of them, and the United States and its agencies, 
servants, agents, subsidiaries, employees and assignees, or any of them, 
from and against liability, loss or damage arising out of claims that 
Customer's Contractors and Subcontractors, or any person on whose behalf 
Customer enters into this Agreement, may have for Property Damage 
sustained by them and for Bodily Injury or Property Damage sustained by 
their employees, resulting from Licensed Activities.
    (c) To the extent provided in advance in an appropriations law or to 
the extent there is enacted additional legislative authority providing 
for the payment of claims, the United States shall hold harmless and 
indemnify Licensee and Customer and their respective directors, 
officers, servants, agents, subsidiaries, employees and assignees, or 
any of them, from and against liability, loss or damage arising out of 
claims that Contractors and Subcontractors of the United States may have 
for Property Damage sustained by them, and for Bodily Injury or Property 
Damage sustained by their employees, resulting from Licensed Activities, 
to the extent that claims they would otherwise have for such damage or 
injury exceed the amount of insurance or demonstration of financial 
responsibility required under sections 440.9(c) and (e), respectively, 
of the Regulations.

                 6. Assurances Under 49 U.S.C. 70112(e)

    Notwithstanding any provision of this Agreement to the contrary, 
Licensee shall hold harmless and indemnify the United States and its 
agencies, servants, agents, employees and assignees, or any of them, 
from and against liability, loss or damage arising out of claims for 
Bodily Injury or Property Damage, resulting from Licensed Activities, 
regardless of fault, except to the extent that: (i) As provided in 
section 7(b) of this Agreement, claims result from willful misconduct of 
the United States or its agents; (ii) claims for Property Damage 
sustained by the United States or its Contractors and Subcontractors 
exceed the amount of insurance or demonstration of financial 
responsibility required under section 440.9(e) of the Regulations; (iii) 
claims by a Third Party for Bodily Injury or Property Damage exceed the 
amount of insurance or demonstration of financial responsibility 
required under section 440.9(c) of the Regulations, and do not exceed 
$1,500,000,000 (as adjusted for inflation after January 1, 1989) above 
such amount, and are payable pursuant to the provisions of 49 U.S.C. 
70113 and section 440.19 of the Regulations; or (iv) Licensee has no 
liability for claims exceeding $1,500,000,000 (as adjusted for inflation 
after

[[Page 884]]

January 1, 1989) above the amount of insurance or demonstration of 
financial responsibility required under section 440.9(c) of the 
Regulations.

                            7. Miscellaneous

    (a) Nothing contained herein shall be construed as a waiver or 
release by Licensee, Customer or the United States of any claim by an 
employee of the Licensee, Customer or the United States, respectively, 
including a member of the Armed Forces of the United States, for Bodily 
Injury or Property Damage, resulting from Licensed Activities.
    (b) Notwithstanding any provision of this Agreement to the contrary, 
any waiver, release, assumption of responsibility or agreement to hold 
harmless and indemnify herein shall not apply to claims for Bodily 
Injury or Property Damage resulting from willful misconduct of any of 
the Parties, the Contractors and Subcontractors of any of the Parties, 
and in the case of Licensee and Customer and the Contractors and 
Subcontractors of each of them, the directors, officers, agents and 
employees of any of the foregoing, and in the case of the United States, 
its agents.
    (c) In the event that more than one customer is involved in Licensed 
Activities, references herein to Customer shall apply to, and be deemed 
to include, each such customer severally and not jointly.
    (d) This Agreement shall be governed by and construed in accordance 
with United States Federal law.
    In witness whereof, the Parties to this Agreement have caused the 
Agreement to be duly executed by their respective duly authorized 
representatives as of the date written above.

                                Licensee

 By:____________________________________________________________________
 Its:___________________________________________________________________

                                Customer

 By:____________________________________________________________________
 Its:___________________________________________________________________

 Federal Aviation Administration of the Department of Transportation on 
                 Behalf of the United States Government

 By:____________________________________________________________________
 Its:___________________________________________________________________

       Associate Administrator for Commercial Space Transportation

 Part 2--Waiver of Claims and Assumption of Responsibility for Licensed 
                                 Reentry

    This Agreement is entered into this ---- day of --------, by and 
among [Licensee] (the ``Licensee''), [Customer] (the ``Customer''), and 
the Federal Aviation Administration of the Department of Transportation, 
on behalf of the United States Government (collectively, the 
``Parties''), to implement the provisions of Sec. 440.17(c) of the 
Commercial Space Transportation Licensing Regulations, 14 CFR Ch. III 
(the ``Regulations''). This agreement applies to the reentry of the 
[Payload] payload on a [Reentry Vehicle] vehicle.
    In consideration of the mutual releases and promises contained 
herein, the Parties hereby agree as follows:

                             1. Definitions

    Contractors and Subcontractors means entities described in Sec. 
440.3 of the Regulations.
    Customer means the above-named Customer on behalf of the Customer 
and any person described in Sec. 440.3 of the Regulations.
    License means License No. ---- issued on --------, by the Associate 
Administrator for Commercial Space Transportation, Federal Aviation 
Administration, Department of Transportation, to the Licensee, including 
all license orders issued in connection with the License.
    Licensee means the Licensee and any transferee of the Licensee under 
49 U.S.C. Subtitle IX, ch. 701.
    United States means the United States and its agencies involved in 
Licensed Activities.
    Except as otherwise defined herein, terms used in this Agreement and 
defined in 49 U.S.C. Subtitle IX, ch. 701--Commercial Space Launch 
Activities, or in the Regulations, shall have the same meaning as 
contained in 49 U.S.C. Subtitle IX, ch. 701, or the Regulations, 
respectively.

                     2. Waiver and Release of Claims

    (a) Licensee hereby waives and releases claims it may have against 
Customer and the United States, and against their respective Contractors 
and Subcontractors, for Property Damage it sustains and for Bodily 
Injury or Property Damage sustained by its own employees, resulting from 
Licensed Activities, regardless of fault.
    (b) Customer hereby waives and releases claims it may have against 
Licensee and the United States, and against their respective Contractors 
and Subcontractors, for Property Damage it sustains and for Bodily 
Injury or Property Damage sustained by its own employees, resulting from 
Licensed Activities, regardless of fault.
    (c) The United States hereby waives and releases claims it may have 
against Licensee and Customer, and against their respective Contractors 
and Subcontractors, for Property Damage it sustains, and for Bodily 
Injury or Property Damage sustained by its own employees, resulting from 
Licensed Activities, regardless of fault, to the extent that claims it 
would otherwise have for such

[[Page 885]]

damage or injury exceed the amount of insurance or demonstration of 
financial responsibility required under sections 440.9(c) and (e) of the 
Regulations.

                     3. Assumption of Responsibility

    (a) Licensee and Customer shall each be responsible for Property 
Damage it sustains and for Bodily Injury or Property Damage sustained by 
its own employees, resulting from Licensed Activities, regardless of 
fault. Licensee and Customer shall each hold harmless and indemnify each 
other, the United States, and the Contractors and Subcontractors of each 
Party, for Bodily Injury or Property Damage sustained by its own 
employees, resulting from Licensed Activities, regardless of fault.
    (b) The United States shall be responsible for Property Damage it 
sustains, and for Bodily Injury or Property Damage sustained by its own 
employees, resulting from Licensed Activities, regardless of fault, to 
the extent that claims it would otherwise have for such damage or injury 
exceed the amount of insurance or demonstration of financial 
responsibility required under Sec. Sec. 440.9(c) and (e) of the 
Regulations.

 4. Extension of Assumption of Responsibility and Waiver and Release of 
                                 Claims

    (a) Licensee shall extend the requirements of the waiver and release 
of claims, and the assumption of responsibility, hold harmless, and 
indemnification, as set forth in paragraphs 2(a) and 3(a), respectively, 
to its Contractors and Subcontractors by requiring them to waive and 
release all claims they may have against Customer and the United States, 
and against the respective Contractors and Subcontractors of each, and 
to agree to be responsible, for Property Damage they sustain and to be 
responsible, hold harmless and indemnify Customer and the United States, 
and the respective Contractors and Subcontractors of each, for Bodily 
Injury or Property Damage sustained by their own employees, resulting 
from Licensed Activities, regardless of fault.
    (b) Customer shall extend the requirements of the waiver and release 
of claims, and the assumption of responsibility, hold harmless, and 
indemnification, as set forth in paragraphs 2(b) and 3(a), respectively, 
to its Contractors and Subcontractors by requiring them to waive and 
release all claims they may have against Licensee and the United States, 
and against the respective Contractors and Subcontractors of each, and 
to agree to be responsible, for Property Damage they sustain and to be 
responsible, hold harmless and indemnify Licensee and the United States, 
and the respective Contractors and Subcontractors of each, for Bodily 
Injury or Property Damage sustained by their own employees, resulting 
from Licensed Activities, regardless of fault.
    (c) The United States shall extend the requirements of the waiver 
and release of claims, and the assumption of responsibility as set forth 
in paragraphs 2(c) and 3(b), respectively, to its Contractors and 
Subcontractors by requiring them to waive and release all claims they 
may have against Licensee and Customer, and against the respective 
Contractors and Subcontractors of each, and to agree to be responsible, 
for any Property Damage they sustain and for any Bodily Injury or 
Property Damage sustained by their own employees, resulting from 
Licensed Activities, regardless of fault, to the extent that claims they 
would otherwise have for such damage or injury exceed the amount of 
insurance or demonstration of financial responsibility required under 
Sec. Sec. 440.9(c) and (e) of the Regulations.

                           5. Indemnification

    (a) Licensee shall hold harmless and indemnify Customer and its 
directors, officers, servants, agents, subsidiaries, employees and 
assignees, or any of them, and the United States and its agencies, 
servants, agents, subsidiaries, employees and assignees, or any of them, 
from and against liability, loss or damage arising out of claims that 
Licensee's Contractors and Subcontractors may have for Property Damage 
sustained by them and for Bodily Injury or Property Damage sustained by 
their employees, resulting from Licensed Activities.
    (b) Customer shall hold harmless and indemnify Licensee and its 
directors, officers, servants, agents, subsidiaries, employees and 
assignees, or any of them, and the United States and its agencies, 
servants, agents, subsidiaries, employees assignees, or any of them, 
from and against liability, loss or damage arising out of claims that 
Customer's Contractors and Subcontractors, or any person on whose behalf 
Customer enters into this Agreement, may have for Property Damage 
sustained by them and for Bodily Injury or Property Damage sustained by 
their employees, resulting from Licensed Activities.
    (c) To the extent provided in advance in an appropriations law or to 
the extent there is enacted additional legislative authority providing 
for the payment of claims, the United States shall hold harmless and 
indemnify Licensee and Customer and their respective directors, 
officers, servants, agents, subsidiaries, employees and assignees, or 
any of them, from and against liability, loss or damage arising out of 
claims that Contractors and Subcontractors of the United States may have 
for Property Damage sustained by them, and for Bodily Injury or Property 
Damage sustained by their employees, resulting from Licensed Activities, 
to the extent that claims they would otherwise have

[[Page 886]]

for such damage or injury exceed the amount of insurance or 
demonstration of financial responsibility required under Sec. Sec. 
440.9(c) and (e) of the Regulations.

                 6. Assurances Under 49 U.S.C. 70112(e)

    Notwithstanding any provision of this Agreement to the contrary, 
Licensee shall hold harmless and indemnify the United States and its 
agencies, servants, agents, employees and assignees, or any of them, 
from and against liability, loss or damage arising out of claims for 
Bodily Injury or Property Damage, resulting from Licensed Activities, 
regardless of fault, except to the extent that: (i) As provided in 
section 7(b) of this Agreement, claims result from willful misconduct of 
the United States or its agents; (ii) claims for Property Damage 
sustained by the United States or its Contractors and Subcontractors 
exceed the amount of insurance or demonstration of financial 
responsibility required under Sec. 440.9(e) of the Regulations; (iii) 
claims by a Third Party for Bodily Injury or Property Damage exceed the 
amount of insurance or demonstration of financial responsibility 
required under Sec. 440.9(c) of the Regulations, and do not exceed 
$1,500,000,000 (as adjusted for inflation after January 1, 1989) above 
such amount, and are payable pursuant to the provisions of 49 U.S.C. 
70113 and Sec. 440.19 of the Regulations; or (iv) Licensee has no 
liability for claims exceeding $1,500,000,000 (as adjusted for inflation 
after January 1, 1989) above the amount of insurance or demonstration of 
financial responsibility required under Sec. 440.9(c) of the 
Regulations.

                            7. Miscellaneous

    (a) Nothing contained herein shall be construed as a waiver or 
release by Licensee, Customer or the United States of any claim by an 
employee of the Licensee, Customer or the United States, respectively, 
including a member of the Armed Forces of the United States, for Bodily 
Injury or Property Damage, resulting from Licensed Activities.
    (b) Notwithstanding any provision of this Agreement to the contrary, 
any waiver, release, assumption of responsibility or agreement to hold 
harmless and indemnify herein shall not apply to claims for Bodily 
Injury or Property Damage resulting from willful misconduct of any of 
the Parties, the Contractors and Subcontractors of any of the Parties, 
and in the case of Licensee and Customer and the Contractors and 
Subcontractors of each of them, the directors, officers, agents and 
employees of any of the foregoing, and in the case of the United States, 
its agents.
    (c) In the event that more than one customer is involved in Licensed 
Activities, references herein to Customer shall apply to, and be deemed 
to include, each such customer severally and not jointly.
    (d) This Agreement shall be governed by and construed in accordance 
with United States Federal law.
    In Witness Whereof, the Parties to this Agreement have caused the 
Agreement to be duly executed by their respective duly authorized 
representatives as of the date written above.

                                Licensee

 By:____________________________________________________________________
 Its:___________________________________________________________________

                                Customer

 By:____________________________________________________________________
 Its:___________________________________________________________________

 Federal Aviation Administration of the Department of Transportation on 
                 Behalf of the United States Government

 By:____________________________________________________________________
 Its:___________________________________________________________________

       Associate Administrator for Commercial Space Transportation



Sec. Appendix C to Part 440--Agreement for Waiver of Claims and 

          Assumption of Responsibility for Permitted Activities

    THIS AGREEMENT is entered into this ---- day of --------, by and 
among [Permittee] (the ``Permittee''), [Customer] (the ``Customer'') and 
the Federal Aviation Administration of the Department of Transportation, 
on behalf of the United States Government (collectively, the 
``Parties''), to implement the provisions of section 440.17(c) of the 
Commercial Space Transportation Licensing Regulations, 14 CFR Ch. III 
(the ``Regulations''). This agreement applies to [describe permitted 
activity].
    In consideration of the mutual releases and promises contained 
herein, the Parties hereby agree as follows:

                             1. Definitions

    Customer means the above-named Customer on behalf of the Customer 
and any person described in Sec. 440.3 of the Regulations.
    Permit means Permit No. ----issued on --------, by the Associate 
Administrator for Commercial Space Transportation, Federal Aviation 
Administration, Department of Transportation, to the Permittee, 
including all permit orders issued in connection with the Permit.
    Permittee means the holder of the Permit issued under 49 U.S.C. 
Subtitle IX, ch. 701.
    United States means the United States and its agencies involved in 
Permitted Activities.

[[Page 887]]

    Except as otherwise defined herein, terms used in this Agreement and 
defined in 49 U.S.C. Subtitle IX, ch. 701--Commercial Space Launch 
Activities, or in the Regulations, shall have the same meaning as 
contained in 49 U.S.C. Subtitle IX, ch. 701, or the Regulations, 
respectively.

                     2. Waiver and Release of Claims

    (a) Permittee hereby waives and releases claims it may have against 
Customer and the United States, and against their respective Contractors 
and Subcontractors, for Property Damage it sustains and for Bodily 
Injury or Property Damage sustained by its own employees, resulting from 
Permitted Activities, regardless of fault.
    (b) Customer hereby waives and releases claims it may have against 
Permittee and the United States, and against their respective 
Contractors and Subcontractors, for Property Damage it sustains and for 
Bodily Injury or Property Damage sustained by its own employees, 
resulting from Permitted Activities, regardless of fault.
    (c) The United States hereby waives and releases claims it may have 
against Permittee and Customer, and against their respective Contractors 
and Subcontractors, for Property Damage it sustains resulting from 
Permitted Activities, regardless of fault, to the extent that claims it 
would otherwise have for such damage exceed the amount of insurance or 
demonstration of financial responsibility required under section 
440.9(e) of the Regulations.

                     3. Assumption of Responsibility

    (a) Permittee and Customer shall each be responsible for Property 
Damage it sustains and for Bodily Injury or Property Damage sustained by 
its own employees, resulting from Permitted Activities, regardless of 
fault. Permittee and Customer shall each hold harmless and indemnify 
each other, the United States, and the Contractors and Subcontractors of 
each Party, for Bodily Injury or Property Damage sustained by its own 
employees, resulting from Permitted Activities, regardless of fault.
    (b) The United States shall be responsible for Property Damage it 
sustains, resulting from Permitted Activities, regardless of fault, to 
the extent that claims it would otherwise have for such damage exceed 
the amount of insurance or demonstration of financial responsibility 
required under section 440.9(e) of the Regulations.

 4. Extension of Assumption of Responsibility and Waiver and Release of 
                                 Claims

    (a) Permittee shall extend the requirements of the waiver and 
release of claims, and the assumption of responsibility, hold harmless, 
and indemnification, as set forth in paragraphs 2(a) and 3(a), 
respectively, to its Contractors and Subcontractors by requiring them to 
waive and release all claims they may have against Customer and the 
United States, and against the respective Contractors and Subcontractors 
of each, and to agree to be responsible, for Property Damage they 
sustain and to be responsible, hold harmless and indemnify Customer and 
the United States, and the respective Contractors and Subcontractors of 
each, for Bodily Injury or Property Damage sustained by their own 
employees, resulting from Permitted Activities, regardless of fault.
    (b) Customer shall extend the requirements of the waiver and release 
of claims, and the assumption of responsibility, hold harmless, and 
indemnification, as set forth in paragraphs 2(b) and 3(a), respectively, 
to its Contractors and Subcontractors by requiring them to waive and 
release all claims they may have against Permittee and the United 
States, and against the respective Contractors and Subcontractors of 
each, and to agree to be responsible, for Property Damage they sustain 
and to be responsible, hold harmless and indemnify Permittee and the 
United States, and the respective Contractors and Subcontractors of 
each, for Bodily Injury or Property Damage sustained by their own 
employees, resulting from Permitted Activities, regardless of fault.
    (c) The United States shall extend the requirements of the waiver 
and release of claims, and the assumption of responsibility as set forth 
in paragraphs 2(c) and 3(b), respectively, to its Contractors and 
Subcontractors by requiring them to waive and release all claims they 
may have against Permittee and Customer, and against the respective 
Contractors and Subcontractors of each, and to agree to be responsible, 
for any Property Damage they sustain, resulting from Permitted 
Activities, regardless of fault, to the extent that claims they would 
otherwise have for such damage exceed the amount of insurance or 
demonstration of financial responsibility required under section 
440.9(e) of the Regulations.

                           5. Indemnification

    (a) Permittee shall hold harmless and indemnify Customer and its 
directors, officers, servants, agents, subsidiaries, employees and 
assignees, or any of them, and the United States and its agencies, 
servants, agents, subsidiaries, employees and assignees, or any of them, 
from and against liability, loss or damage arising out of claims that 
Permittee's Contractors and Subcontractors may have for Property Damage 
sustained by them and for Bodily Injury or Property Damage sustained by 
their employees, resulting from Permitted Activities.
    (b) Customer shall hold harmless and indemnify Permittee and its 
directors, officers, servants, agents, subsidiaries, employees and

[[Page 888]]

assignees, or any of them, and the United States and its agencies, 
servants, agents, subsidiaries, employees and assignees, or any of them, 
from and against liability, loss or damage arising out of claims that 
Customer's Contractors and Subcontractors, or any person on whose behalf 
Customer enters into this Agreement, may have for Property Damage 
sustained by them and for Bodily Injury or Property Damage sustained by 
their employees, resulting from Permitted Activities.

                 6. Assurances Under 49 U.S.C. 70112(e)

    Notwithstanding any provision of this Agreement to the contrary, 
Permittee shall hold harmless and indemnify the United States and its 
agencies, servants, agents, employees and assignees, or any of them, 
from and against liability, loss or damage arising out of claims for 
Bodily Injury or Property Damage, resulting from Permitted Activities, 
regardless of fault, except to the extent that it is provided in section 
7(b) of this Agreement, except to the extent that claims (i) result from 
willful misconduct of the United States or its agents and (ii) for 
Property Damage sustained by the United States or its Contractors and 
Subcontractors exceed the amount of insurance or demonstration of 
financial responsibility required under section 440.9(e) of the 
Regulations.

                            7. Miscellaneous

    (a) Nothing contained herein shall be construed as a waiver or 
release by Permittee, Customer or the United States of any claim by an 
employee of the Permittee, Customer or the United States, respectively, 
including a member of the Armed Forces of the United States, for Bodily 
Injury or Property Damage, resulting from Permitted Activities.
    (b) Notwithstanding any provision of this Agreement to the contrary, 
any waiver, release, assumption of responsibility or agreement to hold 
harmless and indemnify herein shall not apply to claims for Bodily 
Injury or Property Damage resulting from willful misconduct of any of 
the Parties, the Contractors and Subcontractors of any of the Parties, 
and in the case of Permittee and Customer and the Contractors and 
Subcontractors of each of them, the directors, officers, agents and 
employees of any of the foregoing, and in the case of the United States, 
its agents.
    (c) In the event that more than one customer is involved in 
Permitted Activities, references herein to Customer shall apply to, and 
be deemed to include, each such customer severally and not jointly.
    (d) This Agreement shall be governed by and construed in accordance 
with United States Federal law.
    IN WITNESS WHEREOF, the Parties to this Agreement have caused the 
Agreement to be duly executed by their respective duly authorized 
representatives as of the date written above.

                                Permittee

 By:____________________________________________________________________
 Its:___________________________________________________________________

                                Customer

 By:____________________________________________________________________
 Its:___________________________________________________________________

 Federal Aviation Administration of the Department of Transportation on 
                 Behalf of the United States Government

By:_____________________________________________________________________
Its:____________________________________________________________________

       Associate Administrator for Commercial Space Transportation



Sec. Appendix D to Part 440--Agreement for Waiver of Claims and 

             Assumption of Responsibility for a Crew Member

    THIS AGREEMENT is entered into this ---- day of --------, by and 
among [name of Crew Member] (the ``Crew Member'') and the Federal 
Aviation Administration of the Department of Transportation, on behalf 
of the United States Government (collectively, the ``Parties''), to 
implement the provisions of section 440.17(f) of the Commercial Space 
Transportation Licensing Regulations, 14 CFR Ch. III (the 
``Regulations''). This agreement applies to the Crew Member's 
participation in activities that the FAA has authorized by license or 
permit during the Crew Member's employment with [Name of licensee or 
permittee].
    In consideration of the mutual releases and promises contained 
herein, the Parties hereby agree as follows:

                             1. Definitions

    Crew Member means
    (a) The above-named Crew Member,
    (b) All the heirs, administrators, executors, assignees, next of 
kin, and estate of the above-named Crew Member, and
    (c) Anyone who attempts to bring a claim on behalf of the Crew 
Member or for damage or harm arising out of the Bodily Injury, including 
Death, of the Crew Member.
    License/Permit means License/Permit No. -------- issued on --------, 
by the Associate Administrator for Commercial Space Transportation, 
Federal Aviation Administration, Department of Transportation, to the 
Licensee/Permittee, including all license/permit orders issued in 
connection with the License/Permit.

[[Page 889]]

    Licensee/Permittee means the Licensee/Permittee and any transferee 
of the Licensee under 49 U.S.C. Subtitle IX, ch. 701.
    United States means the United States and its agencies involved in 
Licensed/Permitted Activities.
    Except as otherwise defined herein, terms used in this Agreement and 
defined in 49 U.S.C. Subtitle IX, ch. 701--Commercial Space Launch 
Activities, or in the Regulations, shall have the same meaning as 
contained in 49 U.S.C. Subtitle IX, ch. 701, or the Regulations, 
respectively.

                     2. Waiver and Release of Claims

    (a) Crew Member hereby waives and releases claims it may have 
against the United States, and against its respective Contractors and 
Subcontractors, for Bodily Injury, including Death, or Property Damage 
sustained by Crew Member, resulting from Licensed/Permitted Activities, 
regardless of fault.
    (b) The United States hereby waives and releases claims it may have 
against the Crew Member for Property Damage it sustains, and for Bodily 
Injury, including Death, or Property Damage sustained by its own 
employees, resulting from Licensed/Permitted Activities, regardless of 
fault.

                     3. Assumption of Responsibility

    (a) The Crew Member shall be responsible for Bodily Injury, 
including Death, or Property Damage sustained by Crew Member, resulting 
from Licensed/Permitted Activities, regardless of fault. The Crew Member 
shall hold harmless the United States, and the Contractors and 
Subcontractors of each Party, for Bodily Injury, including Death, or 
Property Damage sustained by Crew Member, resulting from Licensed/
Permitted Activities, regardless of fault.
    (b) The United States shall be responsible for Property Damage it 
sustains, and for Bodily Injury, including Death, or Property Damage 
sustained by its own employees, resulting from Licensed Activities, 
regardless of fault, to the extent that claims it would otherwise have 
for such damage or injury exceed the amount of insurance or 
demonstration of financial responsibility required under sections 
440.9(c) and (e), respectively, of the Regulations.
    (c) The United States shall be responsible for Property Damage it 
sustains, resulting from Permitted Activities, regardless of fault, to 
the extent that claims it would otherwise have for such damage exceed 
the amount of insurance or demonstration of financial responsibility 
required under section 440.9(e) of the Regulations.

 4. Extension of Assumption of Responsibility and Waiver and Release of 
                                 Claims

    (a) The United States shall extend the requirements of the waiver 
and release of claims, and the assumption of responsibility as set forth 
in paragraphs 2(b) and 3(b), respectively, to its Contractors and 
Subcontractors by requiring them to waive and release all claims they 
may have against Crew Member and to agree to be responsible, for any 
Property Damage the Contractors and Subcontractors sustain and for any 
Bodily Injury, including Death, or Property Damage sustained by their 
own employees, resulting from Licensed Activities, regardless of fault.
    (b) The United States shall extend the requirements of the waiver 
and release of claims, and the assumption of responsibility as set forth 
in paragraphs 2(b) and 3(c), respectively, to its Contractors and 
Subcontractors by requiring them to waive and release all claims the 
Contractors and Subcontractors may have against Crew Member and to agree 
to be responsible, for any Property Damage they sustain, resulting from 
Permitted Activities, regardless of fault.

                           5. Indemnification

    Crew Member shall hold harmless and indemnify the United States and 
its agencies, servants, agents, subsidiaries, employees and assignees, 
or any of them, from and against liability, loss, or damage arising out 
of claims brought by anyone for Property Damage or Bodily Injury, 
including Death, sustained by Crew Member, resulting from Licensed/
Permitted Activities.

                 6. Assurances Under 49 U.S.C. 70112(e)

    Notwithstanding any provision of this Agreement to the contrary, 
Crew Member shall hold harmless the United States and its agencies, 
servants, agents, employees and assignees, or any of them, from and 
against liability, loss or damage arising out of claims for Bodily 
Injury, including Death, or Property Damage, sustained by Crew Member, 
resulting from Licensed/Permitted Activities, regardless of fault, 
except to the extent that, as provided in section 6(b) of this 
Agreement, claims result from willful misconduct of the United States or 
its agents.

                            7. Miscellaneous

    (a) Nothing contained herein shall be construed as a waiver or 
release by the United States of any claim by an employee of the United 
States, respectively, including a member of the Armed Forces of the 
United States, for Bodily Injury or Property Damage, resulting from 
Licensed/Permitted Activities.

[[Page 890]]

    (b) Notwithstanding any provision of this Agreement to the contrary, 
any waiver, release, assumption of responsibility or agreement to hold 
harmless herein shall not apply to claims for Bodily Injury, including 
Death, or Property Damage resulting from willful misconduct of any of 
the Parties, the Contractors and Subcontractors of any of the Parties, 
and in the case of the United States, its agents.
    (c) This Agreement shall be governed by and construed in accordance 
with United States Federal law.
    IN WITNESS WHEREOF, the Parties to this Agreement have caused the 
Agreement to be duly executed by their respective duly authorized 
representatives as of the date written above.
    I [name of Crew Member] have read and understand this agreement and 
agree that I am bound by it.

                               Crew Member

 Signature:_____________________________________________________________
 Printed Name:__________________________________________________________

 Federal Aviation Administration of the Department of Transportation on 
                 Behalf of the United States Government

 By:____________________________________________________________________
 Its:___________________________________________________________________

       Associate Administrator for Commercial Space Transportation



Sec. Appendix E to Part 440--Agreement for Waiver of Claims and 

       Assumption of Responsibility for a Space Flight Participant

    THIS AGREEMENT is entered into this ---- day of --------, by and 
among [name of Space Flight Participant] (the ``Space Flight 
Participant'') and the Federal Aviation Administration of the Department 
of Transportation, on behalf of the United States Government 
(collectively, the ``Parties''), to implement the provisions of section 
440.17(e) of the Commercial Space Transportation Licensing Regulations, 
14 CFR Ch. III (the ``Regulations''). This agreement applies to Space 
Flight Participant's travel on [name of launch or reentry vehicle] of 
[name of Licensee or Permittee]. In consideration of the mutual releases 
and promises contained herein, the Parties hereby agree as follows:

                             1. Definitions

    Space Flight Participant means
    (a) The above-named Space Flight Participant,
    (b) All the heirs, administrators, executors, assignees, next of 
kin, and estate of the above-named Space Flight Participant , and
    (c) Anyone who attempts to bring a claim on behalf of the Space 
Flight Participant or for damage or harm arising out of the Bodily 
Injury, including Death, of the Space Flight Participant.
    License/Permit means License/Permit No.-------- issued on --------, 
by the Associate Administrator for Commercial Space Transportation, 
Federal Aviation Administration, Department of Transportation, to the 
Licensee/Permittee, including all license/permit orders issued in 
connection with the License/Permit.
    Licensee/Permittee means the Licensee/Permittee and any transferee 
of the Licensee under 49 U.S.C. Subtitle IX, ch. 701.
    United States means the United States and its agencies involved in 
Licensed/Permitted Activities.
    Except as otherwise defined herein, terms used in this Agreement and 
defined in 49 U.S.C. Subtitle IX, ch. 701--Commercial Space Launch 
Activities, or in the Regulations, shall have the same meaning as 
contained in 49 U.S.C. Subtitle IX, ch. 701, or the Regulations, 
respectively.

                     2. Waiver and Release of Claims

    (a) Space Flight Participant hereby waives and releases claims it 
may have against the United States, and against its respective 
Contractors and Subcontractors, for Bodily Injury, including Death, or 
Property Damage sustained by Space Flight Participant, resulting from 
Licensed/Permitted Activities, regardless of fault.
    (b) The United States hereby waives and releases claims it may have 
against Space Flight Participant for Property Damage it sustains, and 
for Bodily Injury, including Death, or Property Damage sustained by its 
own employees, resulting from Licensed/Permitted Activities, regardless 
of fault.

                     3. Assumption of Responsibility

    (a) Space Flight Participant shall be responsible for Bodily Injury, 
including Death, or Property Damage sustained by the Space Flight 
Participant resulting from Licensed/Permitted Activities, regardless of 
fault. Space Flight Participant shall hold harmless the United States, 
and its Contractors and Subcontractors, for Bodily Injury, including 
Death, or Property Damage sustained by Space Flight Participant from 
Licensed/Permitted Activities, regardless of fault.
    (b) The United States shall be responsible for Property Damage it 
sustains, and for Bodily Injury, including Death, or Property Damage 
sustained by its own employees, resulting from Licensed Activities, 
regardless of fault, to the extent that claims it would otherwise have 
for such damage or injury exceed the amount of insurance or 
demonstration of financial responsibility required under sections 
440.9(c) and (e), respectively, of the Regulations.

[[Page 891]]

    (c) The United States shall be responsible for Property Damage it 
sustains, resulting from Permitted Activities, regardless of fault, to 
the extent that claims it would otherwise have for such damage exceed 
the amount of insurance or demonstration of financial responsibility 
required under section 440.9(e) of the Regulations.

 4. Extension of Assumption of Responsibility and Waiver and Release of 
                                 Claims

    (a) The United States shall extend the requirements of the waiver 
and release of claims, and the assumption of responsibility as set forth 
in paragraphs 2(b) and 3(b), respectively, to its Contractors and 
Subcontractors by requiring them to waive and release all claims they 
may have against Space Flight Participant, and to agree to be 
responsible, for any Property Damage they sustain and for any Bodily 
Injury, including Death, or Property Damage sustained by their own 
employees, resulting from Licensed Activities, regardless of fault.
    (b) The United States shall extend the requirements of the waiver 
and release of claims, and the assumption of responsibility as set forth 
in paragraphs 2(b) and 3(c), respectively, to its Contractors and 
Subcontractors by requiring them to waive and release all claims they 
may have against Space Flight Participant, and to agree to be 
responsible, for any Property Damage the Contractors and Subcontractors 
sustain, resulting from Permitted Activities, regardless of fault.

                           5. Indemnification

    Space Flight Participant shall hold harmless and indemnify the 
United States and its agencies, servants, agents, subsidiaries, 
employees and assignees, or any of them, from and against liability, 
loss or damage arising out of claims brought by anyone for Property 
Damage or Bodily Injury, including Death, sustained by Space Flight 
Participant, resulting from Licensed/Permitted Activities.

                 6. Assurances Under 49 U.S.C. 70112(e)

    Notwithstanding any provision of this Agreement to the contrary, 
Space Flight Participant shall hold harmless the United States and its 
agencies, servants, agents, employees and assignees, or any of them, 
from and against liability, loss or damage arising out of claims for 
Bodily Injury, including Death, or Property Damage, sustained by Space 
Flight Participant, resulting from Licensed/Permitted Activities, 
regardless of fault, except to the extent that, as provided in section 
6(b) of this Agreement, claims result from willful misconduct of the 
United States or its agents.

                            7. Miscellaneous

    (a) Nothing contained herein shall be construed as a waiver or 
release by the United States of any claim by an employee the United 
States, respectively, including a member of the Armed Forces of the 
United States, for Bodily Injury or Property Damage, resulting from 
Licensed/Permitted Activities.
    (b) Notwithstanding any provision of this Agreement to the contrary, 
any waiver, release, assumption of responsibility or agreement to hold 
harmless herein shall not apply to claims for Bodily Injury, including 
Death, or Property Damage resulting from willful misconduct of any of 
the Parties, the Contractors, Subcontractors, and agents of the United 
States, and Space Flight Participant.
    (c) This Agreement shall be governed by and construed in accordance 
with United States Federal law.
    IN WITNESS WHEREOF, the Parties to this Agreement have caused the 
Agreement to be duly executed by their respective duly authorized 
representatives as of the date written above.
    I [name of Space Flight Participant] have read and understand this 
agreement and agree that I am bound by it.

                        Space Flight Participant

 Signature:_____________________________________________________________
 Printed Name:__________________________________________________________

 Federal Aviation Administration of the Department of Transportation on 
                 Behalf of the United States Government

 By:____________________________________________________________________
 Its:___________________________________________________________________

       Associate Administrator for Commercial Space Transportation

                        PARTS 441	459 [RESERVED]



PART 460_HUMAN SPACE FLIGHT REQUIREMENTS--Table of Contents




                 Subpart A_Launch and Reentry with Crew

Sec.
460.1 Scope.
460.3 Applicability.
460.5 Crew qualifications and training.
460.7 Operator training of crew.
460.9 Informing crew of risk.
460.11 Environmental control and life support systems.
460.13 Smoke detection and fire suppression.
460.15 Human factors.
460.17 Verification program.
460.19 Crew waiver of claims against U.S. Government.
460.20-460.40 [Reserved]

[[Page 892]]

      Subpart B_Launch and Reentry with a Space Flight Participant

460.41 Scope.
460.43 Applicability.
460.45 Operator informing space flight participant of risk.
460.47 [Reserved]
460.49 Space flight participant waiver of claims against U.S. 
          Government.
460.51 Space flight participant training.
460.53 Security.

    Authority: 49 U.S.C. 70105.

    Source: Docket No. FAA-2005-23449, 71 FR 75632, Dec. 15, 2006, 
unless otherwise noted.



                 Subpart A_Launch and Reentry with Crew



Sec. 460.1  Scope.

    This subpart establishes requirements for crew of a vehicle whose 
operator is licensed or permitted under this chapter.



Sec. 460.3  Applicability.

    (a) This subpart applies to:
    (1) An applicant for a license or permit under this chapter who 
proposes to have flight crew on board a vehicle or proposes to employ a 
remote operator of a vehicle with a human on board.
    (2) An operator licensed or permitted under this chapter who has 
flight crew on board a vehicle or who employs a remote operator of a 
vehicle with a human on board.
    (3) A crew member participating in an activity authorized under this 
chapter.
    (b) Each member of the crew must comply with all requirements of the 
laws of the United States that apply to crew.



Sec. 460.5  Crew qualifications and training.

    (a) Each crew member must--
    (1) Complete training on how to carry out his or her role on board 
or on the ground so that the vehicle will not harm the public; and
    (2) Train for his or her role in nominal and non-nominal conditions. 
The conditions must include--
    (i) Abort scenarios; and
    (ii) Emergency operations.
    (b) Each member of a flight crew must demonstrate an ability to 
withstand the stresses of space flight, which may include high 
acceleration or deceleration, microgravity, and vibration, in sufficient 
condition to safely carry out his or her duties so that the vehicle will 
not harm the public.
    (c) A pilot and a remote operator must--
    (1) Possess and carry an FAA pilot certificate with an instrument 
rating.
    (2) Possess aeronautical knowledge, experience, and skills necessary 
to pilot and control the launch or reentry vehicle that will operate in 
the National Airspace System (NAS). Aeronautical experience may include 
hours in flight, ratings, and training.
    (3) Receive vehicle and mission-specific training for each phase of 
flight by using one or more of the following--
    (i) A method or device that simulates the flight;
    (ii) An aircraft whose characteristics are similar to the vehicle or 
that has similar phases of flight to the vehicle ;
    (iii) Flight testing; or
    (iv) An equivalent method of training approved by the FAA through 
the license or permit process.
    (4) Train in procedures that direct the vehicle away from the public 
in the event the flight crew abandons the vehicle during flight; and
    (5) Train for each mode of control or propulsion, including any 
transition between modes, such that the pilot or remote operator is able 
to control the vehicle.
    (d) A remote operator may demonstrate an equivalent level of safety 
to paragraph (c)(1) of this section through the license or permit 
process.
    (e) Each crew member with a safety-critical role must possess and 
carry an FAA second-class airman medical certificate issued in 
accordance with 14 CFR part 67, no more than 12 months prior to the 
month of launch and reentry.



Sec. 460.7  Operator training of crew.

    (a) Implementation of training. An operator must train each member 
of its crew and define standards for successful completion in accordance 
with Sec. 460.5.
    (b) Training device fidelity. An operator must

[[Page 893]]

    (1) Ensure that any crew-training device used to meet the training 
requirements realistically represents the vehicle's configuration and 
mission, or
    (2) Inform the crew member being trained of the differences between 
the two.
    (c) Maintenance of training records. An operator must continually 
update the crew training to ensure that it incorporates lessons learned 
from training and operational missions. An operator must--
    (1) Track each revision and update in writing; and
    (2) Document the completed training for each crew member and 
maintain the documentation for each active crew member.
    (d) Current qualifications and training. An operator must establish 
a recurrent training schedule and ensure that all crew qualifications 
and training required by Sec. 460.5 are current before launch and 
reentry.



Sec. 460.9  Informing crew of risk.

    An operator must inform in writing any individual serving as crew 
that the United States Government has not certified the launch vehicle 
and any reentry vehicle as safe for carrying flight crew or space flight 
participants. An operator must provide this information--
    (a) Before entering into any contract or other arrangement to employ 
that individual; or
    (b) For any crew member employed as of December 23, 2004, as early 
as possible and prior to any launch in which that individual will 
participate as crew.



Sec. 460.11  Environmental control and life support systems.

    (a) An operator must provide atmospheric conditions adequate to 
sustain life and consciousness for all inhabited areas within a vehicle. 
The operator or flight crew must monitor and control the following 
atmospheric conditions in the inhabited areas or demonstrate through the 
license or permit process that an alternate means provides an equivalent 
level of safety--
    (1) Composition of the atmosphere, which includes oxygen and carbon 
dioxide, and any revitalization;
    (2) Pressure, temperature and humidity;
    (3) Contaminants that include particulates and any harmful or 
hazardous concentrations of gases, or vapors; and
    (4) Ventilation and circulation.
    (b) An operator must provide an adequate redundant or secondary 
oxygen supply for the flight crew.
    (c) An operator must
    (1) Provide a redundant means of preventing cabin depressurization; 
or
    (2) Prevent incapacitation of any of the flight crew in the event of 
loss of cabin pressure.



Sec. 460.13  Smoke detection and fire suppression.

    An operator or crew must have the ability to detect smoke and 
suppress a cabin fire to prevent incapacitation of the flight crew.



Sec. 460.15  Human factors.

    An operator must take the precautions necessary to account for human 
factors that can affect a crew's ability to perform safety-critical 
roles, including in the following safety critical areas--
    (a) Design and layout of displays and controls;
    (b) Mission planning, which includes analyzing tasks and allocating 
functions between humans and equipment;
    (c) Restraint or stowage of all individuals and objects in a 
vehicle; and
    (d) Vehicle operation, so that the vehicle will be operated in a 
manner that flight crew can withstand any physical stress factors, such 
as acceleration, vibration, and noise.



Sec. 460.17  Verification program.

    An operator must successfully verify the integrated performance of a 
vehicle's hardware and any software in an operational flight environment 
before allowing any space flight participant on board during a flight. 
Verification must include flight testing.



Sec. 460.19  Crew waiver of claims against U.S. Government.

    Each member of a flight crew and any remote operator must execute a 
reciprocal waiver of claims with the Federal Aviation Administration of 
the

[[Page 894]]

Department of Transportation in accordance with the requirements of part 
440.



Sec. Sec. 460.20-460.40  [Reserved]



      Subpart B_Launch and Reentry with a Space Flight participant



Sec. 460.41  Scope.

    This subpart establishes requirements for space flight participants 
on board a vehicle whose operator is licensed or permitted under this 
chapter.



Sec. 460.43  Applicability.

    This subpart applies to:
    (a) An applicant for a license or permit under this chapter who 
proposes to have a space flight participant on board a vehicle;
    (b) An operator licensed or permitted under this chapter who has a 
space flight participant on board a vehicle; and
    (c) A space flight participant in an activity authorized under this 
chapter.



Sec. 460.45  Operator informing space flight participant of risk.

    (a) Before receiving compensation or making an agreement to fly a 
space flight participant, an operator must satisfy the requirements of 
this section. An operator must inform each space flight participant in 
writing about the risks of the launch and reentry, including the safety 
record of the launch or reentry vehicle type. An operator must present 
this information in a manner that can be readily understood by a space 
flight participant with no specialized education or training, and must 
disclose in writing--
    (1) For each mission, each known hazard and risk that could result 
in a serious injury, death, disability, or total or partial loss of 
physical and mental function;
    (2) That there are hazards that are not known; and
    (3) That participation in space flight may result in death, serious 
injury, or total or partial loss of physical or mental function.
    (b) An operator must inform each space flight participant that the 
United States Government has not certified the launch vehicle and any 
reentry vehicle as safe for carrying crew or space flight participants.
    (c) An operator must inform each space flight participant of the 
safety record of all launch or reentry vehicles that have carried one or 
more persons on board, including both U.S. government and private sector 
vehicles. This information must include--
    (1) The total number of people who have been on a suborbital or 
orbital space flight and the total number of people who have died or 
been seriously injured on these flights; and
    (2) The total number of launches and reentries conducted with people 
on board and the number of catastrophic failures of those launches and 
reentries.
    (d) An operator must describe the safety record of its vehicle to 
each space flight participant. The operator's safety record must cover 
launch and reentry accidents and human space flight incidents that 
occurred during and after vehicle verification performed in accordance 
with Sec. 460.17, and include--
    (1) The number of vehicle flights;
    (2) The number of accidents and human space flight incidents as 
defined by section 401.5; and
    (3) Whether any corrective actions were taken to resolve these 
accidents and human space flight incidents.
    (e) An operator must inform a space flight participant that he or 
she may request additional information regarding any accidents and human 
space flight incidents reported.
    (f) Before flight, an operator must provide each space flight 
participant an opportunity to ask questions orally to acquire a better 
understanding of the hazards and risks of the mission, and each space 
flight participant must then provide consent in writing to participate 
in a launch or reentry. The consent must--
    (1) Identify the specific launch vehicle the consent covers;
    (2) State that the space flight participant understands the risk, 
and his or her presence on board the launch vehicle is voluntary; and
    (3) Be signed and dated by the space flight participant.

[[Page 895]]



Sec. 460.47  [Reserved]



Sec. 460.49  Space flight participant waiver of claims against U.S. Government.

    Each space flight participant must execute a reciprocal waiver of 
claims with the Federal Aviation Administration of the Department of 
Transportation in accordance with the requirements of part 440 of this 
chapter.



Sec. 460.51  Space flight participant training.

    An operator must train each space flight participant before flight 
on how to respond to emergency situations, including smoke, fire, loss 
of cabin pressure, and emergency exit.



Sec. 460.53  Security.

    An operator must implement security requirements to prevent any 
space flight participant from jeopardizing the safety of the flight crew 
or the public. A space flight participant may not carry on board any 
explosives, firearms, knives, or other weapons.

                        PARTS 461	1199 [RESERVED]


[[Page 897]]



                              FINDING AIDS




  --------------------------------------------------------------------

  A list of CFR titles, subtitles, chapters, subchapters and parts and 
an alphabetical list of agencies publishing in the CFR are included in 
the CFR Index and Finding Aids volume to the Code of Federal Regulations 
which is published separately and revised annually.

  Table of CFR Titles and Chapters
  Alphabetical List of Agencies Appearing in the CFR
  List of CFR Sections Affected

[[Page 899]]



                    Table of CFR Titles and Chapters




                     (Revised as of January 1, 2008)

                      Title 1--General Provisions

         I  Administrative Committee of the Federal Register 
                (Parts 1--49)
        II  Office of the Federal Register (Parts 50--299)
        IV  Miscellaneous Agencies (Parts 400--500)

                    Title 2--Grants and Agreements

            Subtitle A--Office of Management and Budget Guidance 
                for Grants and Agreements
         I  Office of Management and Budget Governmentwide 
                Guidance for Grants and Agreements (Parts 100--
                199)
        II  Office of Management and Budget Circulars and Guidance 
                (200--299)
            Subtitle B--Federal Agency Regulations for Grants and 
                Agreements
       III  Department of Health and Human Services (Parts 300-- 
                399)
        VI  Department of State (Parts 600--699)
      VIII  Department of Veterans Affairs (Parts 800--899)
        IX  Department of Energy (Parts 900--999)
        XI  Department of Defense (Parts 1100--1199)
       XIV  Department of the Interior (Parts 1400--1499)
        XV  Environmental Protection Agency (Parts 1500--1599)
     XVIII  National Aeronautics and Space Administration (Parts 
                1880--1899)
      XXII  Corporation for National and Community Service (Parts 
                2200--2299)
      XXIV  Housing and Urban Development (Parts 2400--2499)
       XXV  National Science Foundation (Parts 2500--2599)
      XXVI  National Archives and Records Administration (Parts 
                2600--2699)
     XXVII  Small Business Administration (Parts 2700--2799)
    XXVIII  Department of Justice (Parts 2800--2899)
     XXXII  National Endowment for the Arts (Parts 3200--3299)
    XXXIII  National Endowment for the Humanities (Parts 3300--
                3399)
      XXXV  Export-Import Bank of the United States (Parts 3500--
                3599)
    XXXVII  Peace Corps (Parts 3700--3799)

[[Page 900]]

                        Title 3--The President

         I  Executive Office of the President (Parts 100--199)

                           Title 4--Accounts

         I  Government Accountability Office (Parts 1--99)

                   Title 5--Administrative Personnel

         I  Office of Personnel Management (Parts 1--1199)
        II  Merit Systems Protection Board (Parts 1200--1299)
       III  Office of Management and Budget (Parts 1300--1399)
         V  The International Organizations Employees Loyalty 
                Board (Parts 1500--1599)
        VI  Federal Retirement Thrift Investment Board (Parts 
                1600--1699)
      VIII  Office of Special Counsel (Parts 1800--1899)
        IX  Appalachian Regional Commission (Parts 1900--1999)
        XI  Armed Forces Retirement Home (Parts 2100--2199)
       XIV  Federal Labor Relations Authority, General Counsel of 
                the Federal Labor Relations Authority and Federal 
                Service Impasses Panel (Parts 2400--2499)
        XV  Office of Administration, Executive Office of the 
                President (Parts 2500--2599)
       XVI  Office of Government Ethics (Parts 2600--2699)
       XXI  Department of the Treasury (Parts 3100--3199)
      XXII  Federal Deposit Insurance Corporation (Parts 3200--
                3299)
     XXIII  Department of Energy (Parts 3300--3399)
      XXIV  Federal Energy Regulatory Commission (Parts 3400--
                3499)
       XXV  Department of the Interior (Parts 3500--3599)
      XXVI  Department of Defense (Parts 3600-- 3699)
    XXVIII  Department of Justice (Parts 3800--3899)
      XXIX  Federal Communications Commission (Parts 3900--3999)
       XXX  Farm Credit System Insurance Corporation (Parts 4000--
                4099)
      XXXI  Farm Credit Administration (Parts 4100--4199)
    XXXIII  Overseas Private Investment Corporation (Parts 4300--
                4399)
      XXXV  Office of Personnel Management (Parts 4500--4599)
        XL  Interstate Commerce Commission (Parts 5000--5099)
       XLI  Commodity Futures Trading Commission (Parts 5100--
                5199)
      XLII  Department of Labor (Parts 5200--5299)
     XLIII  National Science Foundation (Parts 5300--5399)
       XLV  Department of Health and Human Services (Parts 5500--
                5599)
      XLVI  Postal Rate Commission (Parts 5600--5699)
     XLVII  Federal Trade Commission (Parts 5700--5799)
    XLVIII  Nuclear Regulatory Commission (Parts 5800--5899)
         L  Department of Transportation (Parts 6000--6099)
       LII  Export-Import Bank of the United States (Parts 6200--
                6299)
      LIII  Department of Education (Parts 6300--6399)

[[Page 901]]

       LIV  Environmental Protection Agency (Parts 6400--6499)
        LV  National Endowment for the Arts (Parts 6500--6599)
       LVI  National Endowment for the Humanities (Parts 6600--
                6699)
      LVII  General Services Administration (Parts 6700--6799)
     LVIII  Board of Governors of the Federal Reserve System 
                (Parts 6800--6899)
       LIX  National Aeronautics and Space Administration (Parts 
                6900--6999)
        LX  United States Postal Service (Parts 7000--7099)
       LXI  National Labor Relations Board (Parts 7100--7199)
      LXII  Equal Employment Opportunity Commission (Parts 7200--
                7299)
     LXIII  Inter-American Foundation (Parts 7300--7399)
      LXIV  Merit Systems Protection Board (Parts 7400--7499)
       LXV  Department of Housing and Urban Development (Parts 
                7500--7599)
      LXVI  National Archives and Records Administration (Parts 
                7600--7699)
     LXVII  Institute of Museum and Library Services (Parts 7700--
                7799)
      LXIX  Tennessee Valley Authority (Parts 7900--7999)
      LXXI  Consumer Product Safety Commission (Parts 8100--8199)
    LXXIII  Department of Agriculture (Parts 8300--8399)
     LXXIV  Federal Mine Safety and Health Review Commission 
                (Parts 8400--8499)
     LXXVI  Federal Retirement Thrift Investment Board (Parts 
                8600--8699)
    LXXVII  Office of Management and Budget (Parts 8700--8799)
     XCVII  Department of Homeland Security Human Resources 
                Management System (Department of Homeland 
                Security--Office of Personnel Management) (Parts 
                9700--9799)
      XCIX  Department of Defense Human Resources Management and 
                Labor Relations Systems (Department of Defense--
                Office of Personnel Management) (Parts 9900--9999)

                      Title 6--Domestic Security

         I  Department of Homeland Security, Office of the 
                Secretary (Parts 0--99)
         X  Privacy and Civil Liberties Oversight Board (Parts 
                1000--1099)

                         Title 7--Agriculture

            Subtitle A--Office of the Secretary of Agriculture 
                (Parts 0--26)
            Subtitle B--Regulations of the Department of 
                Agriculture
         I  Agricultural Marketing Service (Standards, 
                Inspections, Marketing Practices), Department of 
                Agriculture (Parts 27--209)
        II  Food and Nutrition Service, Department of Agriculture 
                (Parts 210--299)
       III  Animal and Plant Health Inspection Service, Department 
                of Agriculture (Parts 300--399)

[[Page 902]]

        IV  Federal Crop Insurance Corporation, Department of 
                Agriculture (Parts 400--499)
         V  Agricultural Research Service, Department of 
                Agriculture (Parts 500--599)
        VI  Natural Resources Conservation Service, Department of 
                Agriculture (Parts 600--699)
       VII  Farm Service Agency, Department of Agriculture (Parts 
                700--799)
      VIII  Grain Inspection, Packers and Stockyards 
                Administration (Federal Grain Inspection Service), 
                Department of Agriculture (Parts 800--899)
        IX  Agricultural Marketing Service (Marketing Agreements 
                and Orders; Fruits, Vegetables, Nuts), Department 
                of Agriculture (Parts 900--999)
         X  Agricultural Marketing Service (Marketing Agreements 
                and Orders; Milk), Department of Agriculture 
                (Parts 1000--1199)
        XI  Agricultural Marketing Service (Marketing Agreements 
                and Orders; Miscellaneous Commodities), Department 
                of Agriculture (Parts 1200--1299)
       XIV  Commodity Credit Corporation, Department of 
                Agriculture (Parts 1400--1499)
        XV  Foreign Agricultural Service, Department of 
                Agriculture (Parts 1500--1599)
       XVI  Rural Telephone Bank, Department of Agriculture (Parts 
                1600--1699)
      XVII  Rural Utilities Service, Department of Agriculture 
                (Parts 1700--1799)
     XVIII  Rural Housing Service, Rural Business-Cooperative 
                Service, Rural Utilities Service, and Farm Service 
                Agency, Department of Agriculture (Parts 1800--
                2099)
        XX  Local Television Loan Guarantee Board (Parts 2200--
                2299)
      XXVI  Office of Inspector General, Department of Agriculture 
                (Parts 2600--2699)
     XXVII  Office of Information Resources Management, Department 
                of Agriculture (Parts 2700--2799)
    XXVIII  Office of Operations, Department of Agriculture (Parts 
                2800--2899)
      XXIX  Office of Energy Policy and New Uses, Department of 
                Agriculture (Parts 2900--2999)
       XXX  Office of the Chief Financial Officer, Department of 
                Agriculture (Parts 3000--3099)
      XXXI  Office of Environmental Quality, Department of 
                Agriculture (Parts 3100--3199)
     XXXII  Office of Procurement and Property Management, 
                Department of Agriculture (Parts 3200--3299)
    XXXIII  Office of Transportation, Department of Agriculture 
                (Parts 3300--3399)
     XXXIV  Cooperative State Research, Education, and Extension 
                Service, Department of Agriculture (Parts 3400--
                3499)
      XXXV  Rural Housing Service, Department of Agriculture 
                (Parts 3500--3599)

[[Page 903]]

     XXXVI  National Agricultural Statistics Service, Department 
                of Agriculture (Parts 3600--3699)
    XXXVII  Economic Research Service, Department of Agriculture 
                (Parts 3700--3799)
   XXXVIII  World Agricultural Outlook Board, Department of 
                Agriculture (Parts 3800--3899)
       XLI  [Reserved]
      XLII  Rural Business-Cooperative Service and Rural Utilities 
                Service, Department of Agriculture (Parts 4200--
                4299)

                    Title 8--Aliens and Nationality

         I  Department of Homeland Security (Immigration and 
                Naturalization) (Parts 1--499)
         V  Executive Office for Immigration Review, Department of 
                Justice (Parts 1000--1399)

                 Title 9--Animals and Animal Products

         I  Animal and Plant Health Inspection Service, Department 
                of Agriculture (Parts 1--199)
        II  Grain Inspection, Packers and Stockyards 
                Administration (Packers and Stockyards Programs), 
                Department of Agriculture (Parts 200--299)
       III  Food Safety and Inspection Service, Department of 
                Agriculture (Parts 300--599)

                           Title 10--Energy

         I  Nuclear Regulatory Commission (Parts 0--199)
        II  Department of Energy (Parts 200--699)
       III  Department of Energy (Parts 700--999)
         X  Department of Energy (General Provisions) (Parts 
                1000--1099)
      XIII  Nuclear Waste Technical Review Board (Parts 1303--
                1399)
      XVII  Defense Nuclear Facilities Safety Board (Parts 1700--
                1799)
     XVIII  Northeast Interstate Low-Level Radioactive Waste 
                Commission (Parts 1800--1899)

                      Title 11--Federal Elections

         I  Federal Election Commission (Parts 1--9099)

                      Title 12--Banks and Banking

         I  Comptroller of the Currency, Department of the 
                Treasury (Parts 1--199)
        II  Federal Reserve System (Parts 200--299)
       III  Federal Deposit Insurance Corporation (Parts 300--399)
        IV  Export-Import Bank of the United States (Parts 400--
                499)

[[Page 904]]

         V  Office of Thrift Supervision, Department of the 
                Treasury (Parts 500--599)
        VI  Farm Credit Administration (Parts 600--699)
       VII  National Credit Union Administration (Parts 700--799)
      VIII  Federal Financing Bank (Parts 800--899)
        IX  Federal Housing Finance Board (Parts 900--999)
        XI  Federal Financial Institutions Examination Council 
                (Parts 1100--1199)
       XIV  Farm Credit System Insurance Corporation (Parts 1400--
                1499)
        XV  Department of the Treasury (Parts 1500--1599)
      XVII  Office of Federal Housing Enterprise Oversight, 
                Department of Housing and Urban Development (Parts 
                1700--1799)
     XVIII  Community Development Financial Institutions Fund, 
                Department of the Treasury (Parts 1800--1899)

               Title 13--Business Credit and Assistance

         I  Small Business Administration (Parts 1--199)
       III  Economic Development Administration, Department of 
                Commerce (Parts 300--399)
        IV  Emergency Steel Guarantee Loan Board, Department of 
                Commerce (Parts 400--499)
         V  Emergency Oil and Gas Guaranteed Loan Board, 
                Department of Commerce (Parts 500--599)

                    Title 14--Aeronautics and Space

         I  Federal Aviation Administration, Department of 
                Transportation (Parts 1--199)
        II  Office of the Secretary, Department of Transportation 
                (Aviation Proceedings) (Parts 200--399)
       III  Commercial Space Transportation, Federal Aviation 
                Administration, Department of Transportation 
                (Parts 400--499)
         V  National Aeronautics and Space Administration (Parts 
                1200--1299)
        VI  Air Transportation System Stabilization (Parts 1300--
                1399)

                 Title 15--Commerce and Foreign Trade

            Subtitle A--Office of the Secretary of Commerce (Parts 
                0--29)
            Subtitle B--Regulations Relating to Commerce and 
                Foreign Trade
         I  Bureau of the Census, Department of Commerce (Parts 
                30--199)
        II  National Institute of Standards and Technology, 
                Department of Commerce (Parts 200--299)
       III  International Trade Administration, Department of 
                Commerce (Parts 300--399)

[[Page 905]]

        IV  Foreign-Trade Zones Board, Department of Commerce 
                (Parts 400--499)
       VII  Bureau of Industry and Security, Department of 
                Commerce (Parts 700--799)
      VIII  Bureau of Economic Analysis, Department of Commerce 
                (Parts 800--899)
        IX  National Oceanic and Atmospheric Administration, 
                Department of Commerce (Parts 900--999)
        XI  Technology Administration, Department of Commerce 
                (Parts 1100--1199)
      XIII  East-West Foreign Trade Board (Parts 1300--1399)
       XIV  Minority Business Development Agency (Parts 1400--
                1499)
            Subtitle C--Regulations Relating to Foreign Trade 
                Agreements
        XX  Office of the United States Trade Representative 
                (Parts 2000--2099)
            Subtitle D--Regulations Relating to Telecommunications 
                and Information
     XXIII  National Telecommunications and Information 
                Administration, Department of Commerce (Parts 
                2300--2399)

                    Title 16--Commercial Practices

         I  Federal Trade Commission (Parts 0--999)
        II  Consumer Product Safety Commission (Parts 1000--1799)

             Title 17--Commodity and Securities Exchanges

         I  Commodity Futures Trading Commission (Parts 1--199)
        II  Securities and Exchange Commission (Parts 200--399)
        IV  Department of the Treasury (Parts 400--499)

          Title 18--Conservation of Power and Water Resources

         I  Federal Energy Regulatory Commission, Department of 
                Energy (Parts 1--399)
       III  Delaware River Basin Commission (Parts 400--499)
        VI  Water Resources Council (Parts 700--799)
      VIII  Susquehanna River Basin Commission (Parts 800--899)
      XIII  Tennessee Valley Authority (Parts 1300--1399)

                       Title 19--Customs Duties

         I  Bureau of Customs and Border Protection, Department of 
                Homeland Security; Department of the Treasury 
                (Parts 0--199)
        II  United States International Trade Commission (Parts 
                200--299)
       III  International Trade Administration, Department of 
                Commerce (Parts 300--399)

[[Page 906]]

        IV  Bureau of Immigration and Customs Enforcement, 
                Department of Homeland Security (Parts 400--599)

                     Title 20--Employees' Benefits

         I  Office of Workers' Compensation Programs, Department 
                of Labor (Parts 1--199)
        II  Railroad Retirement Board (Parts 200--399)
       III  Social Security Administration (Parts 400--499)
        IV  Employees Compensation Appeals Board, Department of 
                Labor (Parts 500--599)
         V  Employment and Training Administration, Department of 
                Labor (Parts 600--699)
        VI  Employment Standards Administration, Department of 
                Labor (Parts 700--799)
       VII  Benefits Review Board, Department of Labor (Parts 
                800--899)
      VIII  Joint Board for the Enrollment of Actuaries (Parts 
                900--999)
        IX  Office of the Assistant Secretary for Veterans' 
                Employment and Training Service, Department of 
                Labor (Parts 1000--1099)

                       Title 21--Food and Drugs

         I  Food and Drug Administration, Department of Health and 
                Human Services (Parts 1--1299)
        II  Drug Enforcement Administration, Department of Justice 
                (Parts 1300--1399)
       III  Office of National Drug Control Policy (Parts 1400--
                1499)

                      Title 22--Foreign Relations

         I  Department of State (Parts 1--199)
        II  Agency for International Development (Parts 200--299)
       III  Peace Corps (Parts 300--399)
        IV  International Joint Commission, United States and 
                Canada (Parts 400--499)
         V  Broadcasting Board of Governors (Parts 500--599)
       VII  Overseas Private Investment Corporation (Parts 700--
                799)
        IX  Foreign Service Grievance Board (Parts 900--999)
         X  Inter-American Foundation (Parts 1000--1099)
        XI  International Boundary and Water Commission, United 
                States and Mexico, United States Section (Parts 
                1100--1199)
       XII  United States International Development Cooperation 
                Agency (Parts 1200--1299)
      XIII  Millenium Challenge Corporation (Parts 1300--1399)
       XIV  Foreign Service Labor Relations Board; Federal Labor 
                Relations Authority; General Counsel of the 
                Federal Labor Relations Authority; and the Foreign 
                Service Impasse Disputes Panel (Parts 1400--1499)

[[Page 907]]

        XV  African Development Foundation (Parts 1500--1599)
       XVI  Japan-United States Friendship Commission (Parts 
                1600--1699)
      XVII  United States Institute of Peace (Parts 1700--1799)

                          Title 23--Highways

         I  Federal Highway Administration, Department of 
                Transportation (Parts 1--999)
        II  National Highway Traffic Safety Administration and 
                Federal Highway Administration, Department of 
                Transportation (Parts 1200--1299)
       III  National Highway Traffic Safety Administration, 
                Department of Transportation (Parts 1300--1399)

                Title 24--Housing and Urban Development

            Subtitle A--Office of the Secretary, Department of 
                Housing and Urban Development (Parts 0--99)
            Subtitle B--Regulations Relating to Housing and Urban 
                Development
         I  Office of Assistant Secretary for Equal Opportunity, 
                Department of Housing and Urban Development (Parts 
                100--199)
        II  Office of Assistant Secretary for Housing-Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Parts 200--299)
       III  Government National Mortgage Association, Department 
                of Housing and Urban Development (Parts 300--399)
        IV  Office of Housing and Office of Multifamily Housing 
                Assistance Restructuring, Department of Housing 
                and Urban Development (Parts 400--499)
         V  Office of Assistant Secretary for Community Planning 
                and Development, Department of Housing and Urban 
                Development (Parts 500--599)
        VI  Office of Assistant Secretary for Community Planning 
                and Development, Department of Housing and Urban 
                Development (Parts 600--699) [Reserved]
       VII  Office of the Secretary, Department of Housing and 
                Urban Development (Housing Assistance Programs and 
                Public and Indian Housing Programs) (Parts 700--
                799)
      VIII  Office of the Assistant Secretary for Housing--Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Section 8 Housing Assistance 
                Programs, Section 202 Direct Loan Program, Section 
                202 Supportive Housing for the Elderly Program and 
                Section 811 Supportive Housing for Persons With 
                Disabilities Program) (Parts 800--899)
        IX  Office of Assistant Secretary for Public and Indian 
                Housing, Department of Housing and Urban 
                Development (Parts 900--1699)
         X  Office of Assistant Secretary for Housing--Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Interstate Land Sales 
                Registration Program) (Parts 1700--1799)

[[Page 908]]

       XII  Office of Inspector General, Department of Housing and 
                Urban Development (Parts 2000--2099)
        XX  Office of Assistant Secretary for Housing--Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Parts 3200--3899)
       XXV  Neighborhood Reinvestment Corporation (Parts 4100--
                4199)

                           Title 25--Indians

         I  Bureau of Indian Affairs, Department of the Interior 
                (Parts 1--299)
        II  Indian Arts and Crafts Board, Department of the 
                Interior (Parts 300--399)
       III  National Indian Gaming Commission, Department of the 
                Interior (Parts 500--599)
        IV  Office of Navajo and Hopi Indian Relocation (Parts 
                700--799)
         V  Bureau of Indian Affairs, Department of the Interior, 
                and Indian Health Service, Department of Health 
                and Human Services (Part 900)
        VI  Office of the Assistant Secretary-Indian Affairs, 
                Department of the Interior (Parts 1000--1199)
       VII  Office of the Special Trustee for American Indians, 
                Department of the Interior (Parts 1200--1299)

                      Title 26--Internal Revenue

         I  Internal Revenue Service, Department of the Treasury 
                (Parts 1--899)

           Title 27--Alcohol, Tobacco Products and Firearms

         I  Alcohol and Tobacco Tax and Trade Bureau, Department 
                of the Treasury (Parts 1--399)
        II  Bureau of Alcohol, Tobacco, Firearms, and Explosives, 
                Department of Justice (Parts 400--699)

                   Title 28--Judicial Administration

         I  Department of Justice (Parts 0--299)
       III  Federal Prison Industries, Inc., Department of Justice 
                (Parts 300--399)
         V  Bureau of Prisons, Department of Justice (Parts 500--
                599)
        VI  Offices of Independent Counsel, Department of Justice 
                (Parts 600--699)
       VII  Office of Independent Counsel (Parts 700--799)
      VIII  Court Services and Offender Supervision Agency for the 
                District of Columbia (Parts 800--899)
        IX  National Crime Prevention and Privacy Compact Council 
                (Parts 900--999)

[[Page 909]]

        XI  Department of Justice and Department of State (Parts 
                1100--1199)

                            Title 29--Labor

            Subtitle A--Office of the Secretary of Labor (Parts 
                0--99)
            Subtitle B--Regulations Relating to Labor
         I  National Labor Relations Board (Parts 100--199)
        II  Office of Labor-Management Standards, Department of 
                Labor (Parts 200--299)
       III  National Railroad Adjustment Board (Parts 300--399)
        IV  Office of Labor-Management Standards, Department of 
                Labor (Parts 400--499)
         V  Wage and Hour Division, Department of Labor (Parts 
                500--899)
        IX  Construction Industry Collective Bargaining Commission 
                (Parts 900--999)
         X  National Mediation Board (Parts 1200--1299)
       XII  Federal Mediation and Conciliation Service (Parts 
                1400--1499)
       XIV  Equal Employment Opportunity Commission (Parts 1600--
                1699)
      XVII  Occupational Safety and Health Administration, 
                Department of Labor (Parts 1900--1999)
        XX  Occupational Safety and Health Review Commission 
                (Parts 2200--2499)
       XXV  Employee Benefits Security Administration, Department 
                of Labor (Parts 2500--2599)
     XXVII  Federal Mine Safety and Health Review Commission 
                (Parts 2700--2799)
        XL  Pension Benefit Guaranty Corporation (Parts 4000--
                4999)

                      Title 30--Mineral Resources

         I  Mine Safety and Health Administration, Department of 
                Labor (Parts 1--199)
        II  Minerals Management Service, Department of the 
                Interior (Parts 200--299)
       III  Board of Surface Mining and Reclamation Appeals, 
                Department of the Interior (Parts 300--399)
        IV  Geological Survey, Department of the Interior (Parts 
                400--499)
       VII  Office of Surface Mining Reclamation and Enforcement, 
                Department of the Interior (Parts 700--999)

                 Title 31--Money and Finance: Treasury

            Subtitle A--Office of the Secretary of the Treasury 
                (Parts 0--50)
            Subtitle B--Regulations Relating to Money and Finance
         I  Monetary Offices, Department of the Treasury (Parts 
                51--199)
        II  Fiscal Service, Department of the Treasury (Parts 
                200--399)

[[Page 910]]

        IV  Secret Service, Department of the Treasury (Parts 
                400--499)
         V  Office of Foreign Assets Control, Department of the 
                Treasury (Parts 500--599)
        VI  Bureau of Engraving and Printing, Department of the 
                Treasury (Parts 600--699)
       VII  Federal Law Enforcement Training Center, Department of 
                the Treasury (Parts 700--799)
      VIII  Office of International Investment, Department of the 
                Treasury (Parts 800--899)
        IX  Federal Claims Collection Standards (Department of the 
                Treasury--Department of Justice) (Parts 900--999)

                      Title 32--National Defense

            Subtitle A--Department of Defense
         I  Office of the Secretary of Defense (Parts 1--399)
         V  Department of the Army (Parts 400--699)
        VI  Department of the Navy (Parts 700--799)
       VII  Department of the Air Force (Parts 800--1099)
            Subtitle B--Other Regulations Relating to National 
                Defense
       XII  Defense Logistics Agency (Parts 1200--1299)
       XVI  Selective Service System (Parts 1600--1699)
      XVII  Office of the Director of National Intelligence (Parts 
                1700--1799)
     XVIII  National Counterintelligence Center (Parts 1800--1899)
       XIX  Central Intelligence Agency (Parts 1900--1999)
        XX  Information Security Oversight Office, National 
                Archives and Records Administration (Parts 2000--
                2099)
       XXI  National Security Council (Parts 2100--2199)
      XXIV  Office of Science and Technology Policy (Parts 2400--
                2499)
     XXVII  Office for Micronesian Status Negotiations (Parts 
                2700--2799)
    XXVIII  Office of the Vice President of the United States 
                (Parts 2800--2899)

               Title 33--Navigation and Navigable Waters

         I  Coast Guard, Department of Homeland Security (Parts 
                1--199)
        II  Corps of Engineers, Department of the Army (Parts 
                200--399)
        IV  Saint Lawrence Seaway Development Corporation, 
                Department of Transportation (Parts 400--499)

                          Title 34--Education

            Subtitle A--Office of the Secretary, Department of 
                Education (Parts 1--99)
            Subtitle B--Regulations of the Offices of the 
                Department of Education
         I  Office for Civil Rights, Department of Education 
                (Parts 100--199)

[[Page 911]]

        II  Office of Elementary and Secondary Education, 
                Department of Education (Parts 200--299)
       III  Office of Special Education and Rehabilitative 
                Services, Department of Education (Parts 300--399)
        IV  Office of Vocational and Adult Education, Department 
                of Education (Parts 400--499)
         V  Office of Bilingual Education and Minority Languages 
                Affairs, Department of Education (Parts 500--599)
        VI  Office of Postsecondary Education, Department of 
                Education (Parts 600--699)
        XI  National Institute for Literacy (Parts 1100--1199)
            Subtitle C--Regulations Relating to Education
       XII  National Council on Disability (Parts 1200--1299)

                          Title 35 [Reserved]

             Title 36--Parks, Forests, and Public Property

         I  National Park Service, Department of the Interior 
                (Parts 1--199)
        II  Forest Service, Department of Agriculture (Parts 200--
                299)
       III  Corps of Engineers, Department of the Army (Parts 
                300--399)
        IV  American Battle Monuments Commission (Parts 400--499)
         V  Smithsonian Institution (Parts 500--599)
       VII  Library of Congress (Parts 700--799)
      VIII  Advisory Council on Historic Preservation (Parts 800--
                899)
        IX  Pennsylvania Avenue Development Corporation (Parts 
                900--999)
         X  Presidio Trust (Parts 1000--1099)
        XI  Architectural and Transportation Barriers Compliance 
                Board (Parts 1100--1199)
       XII  National Archives and Records Administration (Parts 
                1200--1299)
        XV  Oklahoma City National Memorial Trust (Parts 1500--
                1599)
       XVI  Morris K. Udall Scholarship and Excellence in National 
                Environmental Policy Foundation (Parts 1600--1699)

             Title 37--Patents, Trademarks, and Copyrights

         I  United States Patent and Trademark Office, Department 
                of Commerce (Parts 1--199)
        II  Copyright Office, Library of Congress (Parts 200--299)
       III  Copyright Royalty Board, Library of Congress (Parts 
                301--399)
        IV  Assistant Secretary for Technology Policy, Department 
                of Commerce (Parts 400--499)
         V  Under Secretary for Technology, Department of Commerce 
                (Parts 500--599)

           Title 38--Pensions, Bonuses, and Veterans' Relief

         I  Department of Veterans Affairs (Parts 0--99)

[[Page 912]]

                       Title 39--Postal Service

         I  United States Postal Service (Parts 1--999)
       III  Postal Regulatory Commission (Parts 3000--3099)

                  Title 40--Protection of Environment

         I  Environmental Protection Agency (Parts 1--1099)
        IV  Environmental Protection Agency and Department of 
                Justice (Parts 1400--1499)
         V  Council on Environmental Quality (Parts 1500--1599)
        VI  Chemical Safety and Hazard Investigation Board (Parts 
                1600--1699)
       VII  Environmental Protection Agency and Department of 
                Defense; Uniform National Discharge Standards for 
                Vessels of the Armed Forces (Parts 1700--1799)

          Title 41--Public Contracts and Property Management

            Subtitle B--Other Provisions Relating to Public 
                Contracts
        50  Public Contracts, Department of Labor (Parts 50-1--50-
                999)
        51  Committee for Purchase From People Who Are Blind or 
                Severely Disabled (Parts 51-1--51-99)
        60  Office of Federal Contract Compliance Programs, Equal 
                Employment Opportunity, Department of Labor (Parts 
                60-1--60-999)
        61  Office of the Assistant Secretary for Veterans' 
                Employment and Training Service, Department of 
                Labor (Parts 61-1--61-999)
            Subtitle C--Federal Property Management Regulations 
                System
       101  Federal Property Management Regulations (Parts 101-1--
                101-99)
       102  Federal Management Regulation (Parts 102-1--102-299)
       105  General Services Administration (Parts 105-1--105-999)
       109  Department of Energy Property Management Regulations 
                (Parts 109-1--109-99)
       114  Department of the Interior (Parts 114-1--114-99)
       115  Environmental Protection Agency (Parts 115-1--115-99)
       128  Department of Justice (Parts 128-1--128-99)
            Subtitle D--Other Provisions Relating to Property 
                Management [Reserved]
            Subtitle E--Federal Information Resources Management 
                Regulations System
            Subtitle F--Federal Travel Regulation System
       300  General (Parts 300-1--300-99)
       301  Temporary Duty (TDY) Travel Allowances (Parts 301-1--
                301-99)
       302  Relocation Allowances (Parts 302-1--302-99)
       303  Payment of Expenses Connected with the Death of 
                Certain Employees (Part 303-1--303-99)
       304  Payment of Travel Expenses from a Non-Federal Source 
                (Parts 304-1--304-99)

[[Page 913]]

                        Title 42--Public Health

         I  Public Health Service, Department of Health and Human 
                Services (Parts 1--199)
        IV  Centers for Medicare & Medicaid Services, Department 
                of Health and Human Services (Parts 400--499)
         V  Office of Inspector General-Health Care, Department of 
                Health and Human Services (Parts 1000--1999)

                   Title 43--Public Lands: Interior

            Subtitle A--Office of the Secretary of the Interior 
                (Parts 1--199)
            Subtitle B--Regulations Relating to Public Lands
         I  Bureau of Reclamation, Department of the Interior 
                (Parts 200--499)
        II  Bureau of Land Management, Department of the Interior 
                (Parts 1000--9999)
       III  Utah Reclamation Mitigation and Conservation 
                Commission (Parts 10000--10010)

             Title 44--Emergency Management and Assistance

         I  Federal Emergency Management Agency, Department of 
                Homeland Security (Parts 0--399)
        IV  Department of Commerce and Department of 
                Transportation (Parts 400--499)

                       Title 45--Public Welfare

            Subtitle A--Department of Health and Human Services 
                (Parts 1--199)
            Subtitle B--Regulations Relating to Public Welfare
        II  Office of Family Assistance (Assistance Programs), 
                Administration for Children and Families, 
                Department of Health and Human Services (Parts 
                200--299)
       III  Office of Child Support Enforcement (Child Support 
                Enforcement Program), Administration for Children 
                and Families, Department of Health and Human 
                Services (Parts 300--399)
        IV  Office of Refugee Resettlement, Administration for 
                Children and Families, Department of Health and 
                Human Services (Parts 400--499)
         V  Foreign Claims Settlement Commission of the United 
                States, Department of Justice (Parts 500--599)
        VI  National Science Foundation (Parts 600--699)
       VII  Commission on Civil Rights (Parts 700--799)
      VIII  Office of Personnel Management (Parts 800--899)
         X  Office of Community Services, Administration for 
                Children and Families, Department of Health and 
                Human Services (Parts 1000--1099)
        XI  National Foundation on the Arts and the Humanities 
                (Parts 1100--1199)

[[Page 914]]

       XII  Corporation for National and Community Service (Parts 
                1200--1299)
      XIII  Office of Human Development Services, Department of 
                Health and Human Services (Parts 1300--1399)
       XVI  Legal Services Corporation (Parts 1600--1699)
      XVII  National Commission on Libraries and Information 
                Science (Parts 1700--1799)
     XVIII  Harry S. Truman Scholarship Foundation (Parts 1800--
                1899)
       XXI  Commission on Fine Arts (Parts 2100--2199)
     XXIII  Arctic Research Commission (Part 2301)
      XXIV  James Madison Memorial Fellowship Foundation (Parts 
                2400--2499)
       XXV  Corporation for National and Community Service (Parts 
                2500--2599)

                          Title 46--Shipping

         I  Coast Guard, Department of Homeland Security (Parts 
                1--199)
        II  Maritime Administration, Department of Transportation 
                (Parts 200--399)
       III  Coast Guard (Great Lakes Pilotage), Department of 
                Homeland Security (Parts 400--499)
        IV  Federal Maritime Commission (Parts 500--599)

                      Title 47--Telecommunication

         I  Federal Communications Commission (Parts 0--199)
        II  Office of Science and Technology Policy and National 
                Security Council (Parts 200--299)
       III  National Telecommunications and Information 
                Administration, Department of Commerce (Parts 
                300--399)

           Title 48--Federal Acquisition Regulations System

         1  Federal Acquisition Regulation (Parts 1--99)
         2  Defense Acquisition Regulations System, Department of 
                Defense (Parts 200--299)
         3  Department of Health and Human Services (Parts 300--
                399)
         4  Department of Agriculture (Parts 400--499)
         5  General Services Administration (Parts 500--599)
         6  Department of State (Parts 600--699)
         7  Agency for International Development (Parts 700--799)
         8  Department of Veterans Affairs (Parts 800--899)
         9  Department of Energy (Parts 900--999)
        10  Department of the Treasury (Parts 1000--1099)
        12  Department of Transportation (Parts 1200--1299)
        13  Department of Commerce (Parts 1300--1399)
        14  Department of the Interior (Parts 1400--1499)

[[Page 915]]

        15  Environmental Protection Agency (Parts 1500--1599)
        16  Office of Personnel Management, Federal Employees 
                Health Benefits Acquisition Regulation (Parts 
                1600--1699)
        17  Office of Personnel Management (Parts 1700--1799)
        18  National Aeronautics and Space Administration (Parts 
                1800--1899)
        19  Broadcasting Board of Governors (Parts 1900--1999)
        20  Nuclear Regulatory Commission (Parts 2000--2099)
        21  Office of Personnel Management, Federal Employees 
                Group Life Insurance Federal Acquisition 
                Regulation (Parts 2100--2199)
        23  Social Security Administration (Parts 2300--2399)
        24  Department of Housing and Urban Development (Parts 
                2400--2499)
        25  National Science Foundation (Parts 2500--2599)
        28  Department of Justice (Parts 2800--2899)
        29  Department of Labor (Parts 2900--2999)
        30  Department of Homeland Security, Homeland Security 
                Acquisition Regulation (HSAR) (Parts 3000--3099)
        34  Department of Education Acquisition Regulation (Parts 
                3400--3499)
        51  Department of the Army Acquisition Regulations (Parts 
                5100--5199)
        52  Department of the Navy Acquisition Regulations (Parts 
                5200--5299)
        53  Department of the Air Force Federal Acquisition 
                Regulation Supplement [RESERVED]
        54  Defense Logistics Agency, Department of Defense (Parts 
                5400--5499)
        57  African Development Foundation (Parts 5700--5799)
        61  General Services Administration Board of Contract 
                Appeals (Parts 6100--6199)
        63  Department of Transportation Board of Contract Appeals 
                (Parts 6300--6399)
        99  Cost Accounting Standards Board, Office of Federal 
                Procurement Policy, Office of Management and 
                Budget (Parts 9900--9999)

                       Title 49--Transportation

            Subtitle A--Office of the Secretary of Transportation 
                (Parts 1--99)
            Subtitle B--Other Regulations Relating to 
                Transportation
         I  Pipeline and Hazardous Materials Safety 
                Administration, Department of Transportation 
                (Parts 100--199)
        II  Federal Railroad Administration, Department of 
                Transportation (Parts 200--299)
       III  Federal Motor Carrier Safety Administration, 
                Department of Transportation (Parts 300--399)
        IV  Coast Guard, Department of Homeland Security (Parts 
                400--499)

[[Page 916]]

         V  National Highway Traffic Safety Administration, 
                Department of Transportation (Parts 500--599)
        VI  Federal Transit Administration, Department of 
                Transportation (Parts 600--699)
       VII  National Railroad Passenger Corporation (AMTRAK) 
                (Parts 700--799)
      VIII  National Transportation Safety Board (Parts 800--999)
         X  Surface Transportation Board, Department of 
                Transportation (Parts 1000--1399)
        XI  Research and Innovative Technology Administration, 
                Department of Transportation [RESERVED]
       XII  Transportation Security Administration, Department of 
                Homeland Security (Parts 1500--1699)

                   Title 50--Wildlife and Fisheries

         I  United States Fish and Wildlife Service, Department of 
                the Interior (Parts 1--199)
        II  National Marine Fisheries Service, National Oceanic 
                and Atmospheric Administration, Department of 
                Commerce (Parts 200--299)
       III  International Fishing and Related Activities (Parts 
                300--399)
        IV  Joint Regulations (United States Fish and Wildlife 
                Service, Department of the Interior and National 
                Marine Fisheries Service, National Oceanic and 
                Atmospheric Administration, Department of 
                Commerce); Endangered Species Committee 
                Regulations (Parts 400--499)
         V  Marine Mammal Commission (Parts 500--599)
        VI  Fishery Conservation and Management, National Oceanic 
                and Atmospheric Administration, Department of 
                Commerce (Parts 600--699)

                      CFR Index and Finding Aids

            Subject/Agency Index
            List of Agency Prepared Indexes
            Parallel Tables of Statutory Authorities and Rules
            List of CFR Titles, Chapters, Subchapters, and Parts
            Alphabetical List of Agencies Appearing in the CFR

[[Page 917]]





           Alphabetical List of Agencies Appearing in the CFR




                     (Revised as of January 1, 2008)

                                                  CFR Title, Subtitle or 
                     Agency                               Chapter

Administrative Committee of the Federal Register  1, I
Advanced Research Projects Agency                 32, I
Advisory Council on Historic Preservation         36, VIII
African Development Foundation                    22, XV
  Federal Acquisition Regulation                  48, 57
Agency for International Development              22, II
  Federal Acquisition Regulation                  48, 7
Agricultural Marketing Service                    7, I, IX, X, XI
Agricultural Research Service                     7, V
Agriculture Department                            5, LXXIII
  Agricultural Marketing Service                  7, I, IX, X, XI
  Agricultural Research Service                   7, V
  Animal and Plant Health Inspection Service      7, III; 9, I
  Chief Financial Officer, Office of              7, XXX
  Commodity Credit Corporation                    7, XIV
  Cooperative State Research, Education, and      7, XXXIV
       Extension Service
  Economic Research Service                       7, XXXVII
  Energy, Office of                               2, IX; 7, XXIX
  Environmental Quality, Office of                7, XXXI
  Farm Service Agency                             7, VII, XVIII
  Federal Acquisition Regulation                  48, 4
  Federal Crop Insurance Corporation              7, IV
  Food and Nutrition Service                      7, II
  Food Safety and Inspection Service              9, III
  Foreign Agricultural Service                    7, XV
  Forest Service                                  36, II
  Grain Inspection, Packers and Stockyards        7, VIII; 9, II
       Administration
  Information Resources Management, Office of     7, XXVII
  Inspector General, Office of                    7, XXVI
  National Agricultural Library                   7, XLI
  National Agricultural Statistics Service        7, XXXVI
  Natural Resources Conservation Service          7, VI
  Operations, Office of                           7, XXVIII
  Procurement and Property Management, Office of  7, XXXII
  Rural Business-Cooperative Service              7, XVIII, XLII
  Rural Development Administration                7, XLII
  Rural Housing Service                           7, XVIII, XXXV
  Rural Telephone Bank                            7, XVI
  Rural Utilities Service                         7, XVII, XVIII, XLII
  Secretary of Agriculture, Office of             7, Subtitle A
  Transportation, Office of                       7, XXXIII
  World Agricultural Outlook Board                7, XXXVIII
Air Force Department                              32, VII
  Federal Acquisition Regulation Supplement       48, 53
Air Transportation Stabilization Board            14, VI
Alcohol and Tobacco Tax and Trade Bureau          27, I
Alcohol, Tobacco, Firearms, and Explosives,       27, II
     Bureau of
AMTRAK                                            49, VII
American Battle Monuments Commission              36, IV
American Indians, Office of the Special Trustee   25, VII
Animal and Plant Health Inspection Service        7, III; 9, I
Appalachian Regional Commission                   5, IX

[[Page 918]]

Architectural and Transportation Barriers         36, XI
     Compliance Board
Arctic Research Commission                        45, XXIII
Armed Forces Retirement Home                      5, XI
Army Department                                   32, V
  Engineers, Corps of                             33, II; 36, III
  Federal Acquisition Regulation                  48, 51
Benefits Review Board                             20, VII
Bilingual Education and Minority Languages        34, V
     Affairs, Office of
Blind or Severely Disabled, Committee for         41, 51
     Purchase From People Who Are
Broadcasting Board of Governors                   22, V
  Federal Acquisition Regulation                  48, 19
Census Bureau                                     15, I
Centers for Medicare & Medicaid Services          42, IV
Central Intelligence Agency                       32, XIX
Chief Financial Officer, Office of                7, XXX
Child Support Enforcement, Office of              45, III
Children and Families, Administration for         45, II, III, IV, X
Civil Rights, Commission on                       45, VII
Civil Rights, Office for                          34, I
Coast Guard                                       33, I; 46, I; 49, IV
Coast Guard (Great Lakes Pilotage)                46, III
Commerce Department                               44, IV
  Census Bureau                                   15, I
  Economic Affairs, Under Secretary               37, V
  Economic Analysis, Bureau of                    15, VIII
  Economic Development Administration             13, III
  Emergency Management and Assistance             44, IV
  Federal Acquisition Regulation                  48, 13
  Fishery Conservation and Management             50, VI
  Foreign-Trade Zones Board                       15, IV
  Industry and Security, Bureau of                15, VII
  International Trade Administration              15, III; 19, III
  National Institute of Standards and Technology  15, II
  National Marine Fisheries Service               50, II, IV, VI
  National Oceanic and Atmospheric                15, IX; 50, II, III, IV, 
       Administration                             VI
  National Telecommunications and Information     15, XXIII; 47, III
       Administration
  National Weather Service                        15, IX
  Patent and Trademark Office, United States      37, I
  Productivity, Technology and Innovation,        37, IV
       Assistant Secretary for
  Secretary of Commerce, Office of                15, Subtitle A
  Technology, Under Secretary for                 37, V
  Technology Administration                       15, XI
  Technology Policy, Assistant Secretary for      37, IV
Commercial Space Transportation                   14, III
Commodity Credit Corporation                      7, XIV
Commodity Futures Trading Commission              5, XLI; 17, I
Community Planning and Development, Office of     24, V, VI
     Assistant Secretary for
Community Services, Office of                     45, X
Comptroller of the Currency                       12, I
Construction Industry Collective Bargaining       29, IX
     Commission
Consumer Product Safety Commission                5, LXXI; 16, II
Cooperative State Research, Education, and        7, XXXIV
     Extension Service
Copyright Office                                  37, II
Copyright Royalty Board                           37, III
Corporation for National and Community Service    2, XXII; 45, XII, XXV
Cost Accounting Standards Board                   48, 99
Council on Environmental Quality                  40, V
Court Services and Offender Supervision Agency    28, VIII
     for the District of Columbia
Customs and Border Protection Bureau              19, I
Defense Contract Audit Agency                     32, I
Defense Department                                5, XXVI; 32, Subtitle A; 
                                                  40, VII

[[Page 919]]

  Advanced Research Projects Agency               32, I
  Air Force Department                            32, VII
  Army Department                                 32, V; 33, II; 36, III, 
                                                  48, 51
  Defense Acquisition Regulations System          48, II
  Defense Intelligence Agency                     32, I
  Defense Logistics Agency                        32, I, XII; 48, 54
  Engineers, Corps of                             33, II; 36, III
  National Imagery and Mapping Agency             32, I
  Navy Department                                 32, VI; 48, 52
  Secretary of Defense, Office of                 2, XI; 32, I
Defense Contract Audit Agency                     32, I
Defense Intelligence Agency                       32, I
Defense Logistics Agency                          32, XII; 48, 54
Defense Nuclear Facilities Safety Board           10, XVII
Delaware River Basin Commission                   18, III
District of Columbia, Court Services and          28, VIII
     Offender Supervision Agency for the
Drug Enforcement Administration                   21, II
East-West Foreign Trade Board                     15, XIII
Economic Affairs, Under Secretary                 37, V
Economic Analysis, Bureau of                      15, VIII
Economic Development Administration               13, III
Economic Research Service                         7, XXXVII
Education, Department of                          5, LIII
  Bilingual Education and Minority Languages      34, V
       Affairs, Office of
  Civil Rights, Office for                        34, I
  Educational Research and Improvement, Office    34, VII
       of
  Elementary and Secondary Education, Office of   34, II
  Federal Acquisition Regulation                  48, 34
  Postsecondary Education, Office of              34, VI
  Secretary of Education, Office of               34, Subtitle A
  Special Education and Rehabilitative Services,  34, III
       Office of
  Vocational and Adult Education, Office of       34, IV
Educational Research and Improvement, Office of   34, VII
Elementary and Secondary Education, Office of     34, II
Emergency Oil and Gas Guaranteed Loan Board       13, V
Emergency Steel Guarantee Loan Board              13, IV
Employee Benefits Security Administration         29, XXV
Employees' Compensation Appeals Board             20, IV
Employees Loyalty Board                           5, V
Employment and Training Administration            20, V
Employment Standards Administration               20, VI
Endangered Species Committee                      50, IV
Energy, Department of                             5, XXIII; 10, II, III, X
  Federal Acquisition Regulation                  48, 9
  Federal Energy Regulatory Commission            5, XXIV; 18, I
  Property Management Regulations                 41, 109
Energy, Office of                                 7, XXIX
Engineers, Corps of                               33, II; 36, III
Engraving and Printing, Bureau of                 31, VI
Environmental Protection Agency                   2, XV; 5, LIV; 40, I, IV, 
                                                  VII
  Federal Acquisition Regulation                  48, 15
  Property Management Regulations                 41, 115
Environmental Quality, Office of                  7, XXXI
Equal Employment Opportunity Commission           5, LXII; 29, XIV
Equal Opportunity, Office of Assistant Secretary  24, I
     for
Executive Office of the President                 3, I
  Administration, Office of                       5, XV
  Environmental Quality, Council on               40, V
  Management and Budget, Office of                5, III, LXXVII; 14, VI; 
                                                  48, 99
  National Drug Control Policy, Office of         21, III
  National Security Council                       32, XXI; 47, 2
  Presidential Documents                          3

[[Page 920]]

  Science and Technology Policy, Office of        32, XXIV; 47, II
  Trade Representative, Office of the United      15, XX
       States
Export-Import Bank of the United States           2, XXXV; 5, LII; 12, IV
Family Assistance, Office of                      45, II
Farm Credit Administration                        5, XXXI; 12, VI
Farm Credit System Insurance Corporation          5, XXX; 12, XIV
Farm Service Agency                               7, VII, XVIII
Federal Acquisition Regulation                    48, 1
Federal Aviation Administration                   14, I
  Commercial Space Transportation                 14, III
Federal Claims Collection Standards               31, IX
Federal Communications Commission                 5, XXIX; 47, I
Federal Contract Compliance Programs, Office of   41, 60
Federal Crop Insurance Corporation                7, IV
Federal Deposit Insurance Corporation             5, XXII; 12, III
Federal Election Commission                       11, I
Federal Emergency Management Agency               44, I
Federal Employees Group Life Insurance Federal    48, 21
     Acquisition Regulation
Federal Employees Health Benefits Acquisition     48, 16
     Regulation
Federal Energy Regulatory Commission              5, XXIV; 18, I
Federal Financial Institutions Examination        12, XI
     Council
Federal Financing Bank                            12, VIII
Federal Highway Administration                    23, I, II
Federal Home Loan Mortgage Corporation            1, IV
Federal Housing Enterprise Oversight Office       12, XVII
Federal Housing Finance Board                     12, IX
Federal Labor Relations Authority, and General    5, XIV; 22, XIV
     Counsel of the Federal Labor Relations 
     Authority
Federal Law Enforcement Training Center           31, VII
Federal Management Regulation                     41, 102
Federal Maritime Commission                       46, IV
Federal Mediation and Conciliation Service        29, XII
Federal Mine Safety and Health Review Commission  5, LXXIV; 29, XXVII
Federal Motor Carrier Safety Administration       49, III
Federal Prison Industries, Inc.                   28, III
Federal Procurement Policy Office                 48, 99
Federal Property Management Regulations           41, 101
Federal Railroad Administration                   49, II
Federal Register, Administrative Committee of     1, I
Federal Register, Office of                       1, II
Federal Reserve System                            12, II
  Board of Governors                              5, LVIII
Federal Retirement Thrift Investment Board        5, VI, LXXVI
Federal Service Impasses Panel                    5, XIV
Federal Trade Commission                          5, XLVII; 16, I
Federal Transit Administration                    49, VI
Federal Travel Regulation System                  41, Subtitle F
Fine Arts, Commission on                          45, XXI
Fiscal Service                                    31, II
Fish and Wildlife Service, United States          50, I, IV
Fishery Conservation and Management               50, VI
Food and Drug Administration                      21, I
Food and Nutrition Service                        7, II
Food Safety and Inspection Service                9, III
Foreign Agricultural Service                      7, XV
Foreign Assets Control, Office of                 31, V
Foreign Claims Settlement Commission of the       45, V
     United States
Foreign Service Grievance Board                   22, IX
Foreign Service Impasse Disputes Panel            22, XIV
Foreign Service Labor Relations Board             22, XIV
Foreign-Trade Zones Board                         15, IV
Forest Service                                    36, II
General Services Administration                   5, LVII; 41, 105
  Contract Appeals, Board of                      48, 61
  Federal Acquisition Regulation                  48, 5
  Federal Management Regulation                   41, 102

[[Page 921]]

  Federal Property Management Regulations         41, 101
  Federal Travel Regulation System                41, Subtitle F
  General                                         41, 300
  Payment From a Non-Federal Source for Travel    41, 304
       Expenses
  Payment of Expenses Connected With the Death    41, 303
       of Certain Employees
  Relocation Allowances                           41, 302
  Temporary Duty (TDY) Travel Allowances          41, 301
Geological Survey                                 30, IV
Government Accountability Office                  4, I
Government Ethics, Office of                      5, XVI
Government National Mortgage Association          24, III
Grain Inspection, Packers and Stockyards          7, VIII; 9, II
     Administration
Harry S. Truman Scholarship Foundation            45, XVIII
Health and Human Services, Department of          2, III; 5, XLV; 45, 
                                                  Subtitle A,
  Centers for Medicare & Medicaid Services        42, IV
  Child Support Enforcement, Office of            45, III
  Children and Families, Administration for       45, II, III, IV, X
  Community Services, Office of                   45, X
  Family Assistance, Office of                    45, II
  Federal Acquisition Regulation                  48, 3
  Food and Drug Administration                    21, I
  Human Development Services, Office of           45, XIII
  Indian Health Service                           25, V
  Inspector General (Health Care), Office of      42, V
  Public Health Service                           42, I
  Refugee Resettlement, Office of                 45, IV
Homeland Security, Department of                  6, I
  Coast Guard                                     33, I; 46, I; 49, IV
  Coast Guard (Great Lakes Pilotage)              46, III
  Customs and Border Protection Bureau            19, I
  Federal Emergency Management Agency             44, I
  Immigration and Customs Enforcement Bureau      19, IV
  Immigration and Naturalization                  8, I
  Transportation Security Administration          49, XII
Housing and Urban Development, Department of      5, LXV; 24, Subtitle B, 2, 
                                                  XXIV; 2424
  Community Planning and Development, Office of   24, V, VI
       Assistant Secretary for
  Equal Opportunity, Office of Assistant          24, I
       Secretary for
  Federal Acquisition Regulation                  48, 24
  Federal Housing Enterprise Oversight, Office    12, XVII
       of
  Government National Mortgage Association        24, III
  Housing--Federal Housing Commissioner, Office   24, II, VIII, X, XX
       of Assistant Secretary for
  Housing, Office of, and Multifamily Housing     24, IV
       Assistance Restructuring, Office of
  Inspector General, Office of                    24, XII
  Public and Indian Housing, Office of Assistant  24, IX
       Secretary for
  Secretary, Office of                            24, Subtitle A, VII
Housing--Federal Housing Commissioner, Office of  24, II, VIII, X, XX
     Assistant Secretary for
Housing, Office of, and Multifamily Housing       24, IV
     Assistance Restructuring, Office of
Human Development Services, Office of             45, XIII
Immigration and Customs Enforcement Bureau        19, IV
Immigration and Naturalization                    8, I
Immigration Review, Executive Office for          8, V
Independent Counsel, Office of                    28, VII
Indian Affairs, Bureau of                         25, I, V
Indian Affairs, Office of the Assistant           25, VI
     Secretary
Indian Arts and Crafts Board                      25, II
Indian Health Service                             25, V
Industry and Security, Bureau of                  15, VII
Information Resources Management, Office of       7, XXVII
Information Security Oversight Office, National   32, XX
   Archives and Records Administration
[[Page 922]]

Inspector General
  Agriculture Department                          7, XXVI
  Health and Human Services Department            42, V
  Housing and Urban Development Department        24, XII
Institute of Peace, United States                 22, XVII
Inter-American Foundation                         5, LXIII; 22, X
Interior Department
  American Indians, Office of the Special         25, VII
       Trustee
  Endangered Species Committee                    50, IV
  Federal Acquisition Regulation                  48, 14
  Federal Property Management Regulations System  41, 114
  Fish and Wildlife Service, United States        50, I, IV
  Geological Survey                               30, IV
  Indian Affairs, Bureau of                       25, I, V
  Indian Affairs, Office of the Assistant         25, VI
       Secretary
  Indian Arts and Crafts Board                    25, II
  Land Management, Bureau of                      43, II
  Minerals Management Service                     30, II
  National Indian Gaming Commission               25, III
  National Park Service                           36, I
  Reclamation, Bureau of                          43, I
  Secretary of the Interior, Office of            2, XIV; 43, Subtitle A
  Surface Mining and Reclamation Appeals, Board   30, III
       of
  Surface Mining Reclamation and Enforcement,     30, VII
       Office of
Internal Revenue Service                          26, I
International Boundary and Water Commission,      22, XI
     United States and Mexico, United States 
     Section
International Development, United States Agency   22, II
     for
  Federal Acquisition Regulation                  48, 7
International Development Cooperation Agency,     22, XII
     United States
International Fishing and Related Activities      50, III
International Investment, Office of               31, VIII
International Joint Commission, United States     22, IV
     and Canada
International Organizations Employees Loyalty     5, V
     Board
International Trade Administration                15, III; 19, III
International Trade Commission, United States     19, II
Interstate Commerce Commission                    5, XL
James Madison Memorial Fellowship Foundation      45, XXIV
Japan-United States Friendship Commission         22, XVI
Joint Board for the Enrollment of Actuaries       20, VIII
Justice Department                                2, XXVII; 5, XXVIII; 28, 
                                                  I, XI; 40, IV
  Alcohol, Tobacco, Firearms, and Explosives,     27, II
       Bureau of
  Drug Enforcement Administration                 21, II
  Federal Acquisition Regulation                  48, 28
  Federal Claims Collection Standards             31, IX
  Federal Prison Industries, Inc.                 28, III
  Foreign Claims Settlement Commission of the     45, V
       United States
  Immigration Review, Executive Office for        8, V
  Offices of Independent Counsel                  28, VI
  Prisons, Bureau of                              28, V
  Property Management Regulations                 41, 128
Labor Department                                  5, XLII
  Benefits Review Board                           20, VII
  Employee Benefits Security Administration       29, XXV
  Employees' Compensation Appeals Board           20, IV
  Employment and Training Administration          20, V
  Employment Standards Administration             20, VI
  Federal Acquisition Regulation                  48, 29
  Federal Contract Compliance Programs, Office    41, 60
       of
  Federal Procurement Regulations System          41, 50
  Labor-Management Standards, Office of           29, II, IV
  Mine Safety and Health Administration           30, I
  Occupational Safety and Health Administration   29, XVII
  Public Contracts                                41, 50

[[Page 923]]

  Secretary of Labor, Office of                   29, Subtitle A
  Veterans' Employment and Training Service,      41, 61; 20, IX
       Office of the Assistant Secretary for
  Wage and Hour Division                          29, V
  Workers' Compensation Programs, Office of       20, I
Labor-Management Standards, Office of             29, II, IV
Land Management, Bureau of                        43, II
Legal Services Corporation                        45, XVI
Library of Congress                               36, VII
  Copyright Office                                37, II
  Copyright Royalty Board                         37, III
Local Television Loan Guarantee Board             7, XX
Management and Budget, Office of                  5, III, LXXVII; 14, VI; 
                                                  48, 99
Marine Mammal Commission                          50, V
Maritime Administration                           46, II
Merit Systems Protection Board                    5, II, LXIV
Micronesian Status Negotiations, Office for       32, XXVII
Millenium Challenge Corporation                   22, XIII
Mine Safety and Health Administration             30, I
Minerals Management Service                       30, II
Minority Business Development Agency              15, XIV
Miscellaneous Agencies                            1, IV
Monetary Offices                                  31, I
Morris K. Udall Scholarship and Excellence in     36, XVI
     National Environmental Policy Foundation
National Aeronautics and Space Administration     2, XVIII; 5, LIX; 14, V
  Federal Acquisition Regulation                  48, 18
National Agricultural Library                     7, XLI
National Agricultural Statistics Service          7, XXXVI
National and Community Service, Corporation for   45, XII, XXV
National Archives and Records Administration      2, XXVI; 5, LXVI; 36, XII
  Information Security Oversight Office           32, XX
National Capital Planning Commission              1, IV
National Commission for Employment Policy         1, IV
National Commission on Libraries and Information  45, XVII
     Science
National Council on Disability                    34, XII
National Counterintelligence Center               32, XVIII
National Credit Union Administration              12, VII
National Crime Prevention and Privacy Compact     28, IX
     Council
National Drug Control Policy, Office of           21, III
National Endowment for the Arts                   2, XXXII
National Endowment for the Humanities             2, XXXIII
National Foundation on the Arts and the           45, XI
     Humanities
National Highway Traffic Safety Administration    23, II, III; 49, V
National Imagery and Mapping Agency               32, I
National Indian Gaming Commission                 25, III
National Institute for Literacy                   34, XI
National Institute of Standards and Technology    15, II
National Intelligence, Office of Director of      32, XVII
National Labor Relations Board                    5, LXI; 29, I
National Marine Fisheries Service                 50, II, IV, VI
National Mediation Board                          29, X
National Oceanic and Atmospheric Administration   15, IX; 50, II, III, IV, 
                                                  VI
National Park Service                             36, I
National Railroad Adjustment Board                29, III
National Railroad Passenger Corporation (AMTRAK)  49, VII
National Science Foundation                       2, XXV; 5, XLIII; 45, VI
  Federal Acquisition Regulation                  48, 25
National Security Council                         32, XXI
National Security Council and Office of Science   47, II
     and Technology Policy
National Telecommunications and Information       15, XXIII; 47, III
     Administration
National Transportation Safety Board              49, VIII
Natural Resources Conservation Service            7, VI

[[Page 924]]

Navajo and Hopi Indian Relocation, Office of      25, IV
Navy Department                                   32, VI
  Federal Acquisition Regulation                  48, 52
Neighborhood Reinvestment Corporation             24, XXV
Northeast Interstate Low-Level Radioactive Waste  10, XVIII
     Commission
Nuclear Regulatory Commission                     5, XLVIII; 10, I
  Federal Acquisition Regulation                  48, 20
Occupational Safety and Health Administration     29, XVII
Occupational Safety and Health Review Commission  29, XX
Offices of Independent Counsel                    28, VI
Oklahoma City National Memorial Trust             36, XV
Operations Office                                 7, XXVIII
Overseas Private Investment Corporation           5, XXXIII; 22, VII
Patent and Trademark Office, United States        37, I
Payment From a Non-Federal Source for Travel      41, 304
     Expenses
Payment of Expenses Connected With the Death of   41, 303
     Certain Employees
Peace Corps                                       22, III
Pennsylvania Avenue Development Corporation       36, IX
Pension Benefit Guaranty Corporation              29, XL
Personnel Management, Office of                   5, I, XXXV; 45, VIII
  Federal Acquisition Regulation                  48, 17
  Federal Employees Group Life Insurance Federal  48, 21
       Acquisition Regulation
  Federal Employees Health Benefits Acquisition   48, 16
       Regulation
Pipeline and Hazardous Materials Safety           49, I
     Administration
Postal Regulatory Commission                      5, XLVI; 39, III
Postal Service, United States                     5, LX; 39, I
Postsecondary Education, Office of                34, VI
President's Commission on White House             1, IV
     Fellowships
Presidential Documents                            3
Presidio Trust                                    36, X
Prisons, Bureau of                                28, V
Privacy and Civil Liberties Oversight Board       6, X
Procurement and Property Management, Office of    7, XXXII
Productivity, Technology and Innovation,          37, IV
     Assistant Secretary
Public Contracts, Department of Labor             41, 50
Public and Indian Housing, Office of Assistant    24, IX
     Secretary for
Public Health Service                             42, I
Railroad Retirement Board                         20, II
Reclamation, Bureau of                            43, I
Refugee Resettlement, Office of                   45, IV
Relocation Allowances                             41, 302
Research and Innovative Technology                49, XI
     Administration
Rural Business-Cooperative Service                7, XVIII, XLII
Rural Development Administration                  7, XLII
Rural Housing Service                             7, XVIII, XXXV
Rural Telephone Bank                              7, XVI
Rural Utilities Service                           7, XVII, XVIII, XLII
Saint Lawrence Seaway Development Corporation     33, IV
Science and Technology Policy, Office of          32, XXIV
Science and Technology Policy, Office of, and     47, II
     National Security Council
Secret Service                                    31, IV
Securities and Exchange Commission                17, II
Selective Service System                          32, XVI
Small Business Administration                     2, XXVII; 13, I
Smithsonian Institution                           36, V
Social Security Administration                    20, III; 48, 23
Soldiers' and Airmen's Home, United States        5, XI
Special Counsel, Office of                        5, VIII
Special Education and Rehabilitative Services,    34, III
     Office of
State Department                                  2, VI; 22, I; 28, XI
  Federal Acquisition Regulation                  48, 6
Surface Mining and Reclamation Appeals, Board of  30, III

[[Page 925]]

Surface Mining Reclamation and Enforcement,       30, VII
     Office of
Surface Transportation Board                      49, X
Susquehanna River Basin Commission                18, VIII
Technology Administration                         15, XI
Technology Policy, Assistant Secretary for        37, IV
Technology, Under Secretary for                   37, V
Tennessee Valley Authority                        5, LXIX; 18, XIII
Thrift Supervision Office, Department of the      12, V
     Treasury
Trade Representative, United States, Office of    15, XX
Transportation, Department of                     5, L
  Commercial Space Transportation                 14, III
  Contract Appeals, Board of                      48, 63
  Emergency Management and Assistance             44, IV
  Federal Acquisition Regulation                  48, 12
  Federal Aviation Administration                 14, I
  Federal Highway Administration                  23, I, II
  Federal Motor Carrier Safety Administration     49, III
  Federal Railroad Administration                 49, II
  Federal Transit Administration                  49, VI
  Maritime Administration                         46, II
  National Highway Traffic Safety Administration  23, II, III; 49, V
  Pipeline and Hazardous Materials Safety         49, I
       Administration
  Saint Lawrence Seaway Development Corporation   33, IV
  Secretary of Transportation, Office of          14, II; 49, Subtitle A
  Surface Transportation Board                    49, X
  Transportation Statistics Bureau                49, XI
Transportation, Office of                         7, XXXIII
Transportation Security Administration            49, XII
Transportation Statistics Bureau                  49, XI
Travel Allowances, Temporary Duty (TDY)           41, 301
Treasury Department                               5, XXI; 12, XV; 17, IV; 
                                                  31, IX
  Alcohol and Tobacco Tax and Trade Bureau        27, I
  Community Development Financial Institutions    12, XVIII
       Fund
  Comptroller of the Currency                     12, I
  Customs and Border Protection Bureau            19, I
  Engraving and Printing, Bureau of               31, VI
  Federal Acquisition Regulation                  48, 10
  Federal Claims Collection Standards             31, IX
  Federal Law Enforcement Training Center         31, VII
  Fiscal Service                                  31, II
  Foreign Assets Control, Office of               31, V
  Internal Revenue Service                        26, I
  International Investment, Office of             31, VIII
  Monetary Offices                                31, I
  Secret Service                                  31, IV
  Secretary of the Treasury, Office of            31, Subtitle A
  Thrift Supervision, Office of                   12, V
Truman, Harry S. Scholarship Foundation           45, XVIII
United States and Canada, International Joint     22, IV
     Commission
United States and Mexico, International Boundary  22, XI
     and Water Commission, United States Section
Utah Reclamation Mitigation and Conservation      43, III
     Commission
Veterans Affairs Department                       2, VIII; 38, I
  Federal Acquisition Regulation                  48, 8
Veterans' Employment and Training Service,        41, 61; 20, IX
     Office of the Assistant Secretary for
Vice President of the United States, Office of    32, XXVIII
Vocational and Adult Education, Office of         34, IV
Wage and Hour Division                            29, V
Water Resources Council                           18, VI
Workers' Compensation Programs, Office of         20, I
World Agricultural Outlook Board                  7, XXXVIII

[[Page 927]]



List of CFR Sections Affected



All changes in this volume of the Code of Federal Regulations that were 
made by documents published in the Federal Register since January 1, 
2001, are enumerated in the following list. Entries indicate the nature 
of the changes effected. Page numbers refer to Federal Register pages. 
The user should consult the entries for chapters and parts as well as 
sections for revisions.
For the period before January 1, 2001, see the ``List of CFR Sections 
Affected, 1949-1963, 1964-1972, 1973-1985, and 1986-2000,'' published in 
11 separate volumes.

                                  2001

14 CFR
                                                                   66 FR
                                                                    Page
Chapter II
255.12 Revised.....................................................17356
330 Added..........................................................54620
330.11 (b) corrected...............................................55554
382 Authority citation revised.....................................22115
    Nomenclature change............................................22115
382.39 (a)(2) revised..............................................22115
    Regulation at 66 FR 22115 eff. date corrected to 11-9-01.......51556
382.40a Added......................................................22115
    Regulation at 66 FR 22115 eff. date corrected to 11-9-01.......51556
Chapter III
405.7 Removed.......................................................2180
    Regulation at 66 FR 2180 eff. date delayed......................9509
406 Revised.........................................................2180
    Regulation at 66 FR 2180 eff. date delayed......................9509

                                  2002

14 CFR
                                                                   67 FR
                                                                    Page
Chapter II
217.1 Amended...............................................49223, 58689
217.2 Revised......................................................49223
217.10 Appendix amended............................................49223
217.11 (a) revised.................................................49223
234.4 (a)(16) through (21), (g), (h) and (i) added; (b) revised....70544
234.5 Revised......................................................70545
241 Sec. 03 amended.........................................49223, 58690
    Sec. 19-1 (a) and (c) revised..................................49223
    Sec. 19-3 (b) removed..........................................49223
    Sec. 19-5 (b) revised..........................................49224
    Sec. 19-6 (a) and (b) introductory text revised................49224
    Sec. 19-7 amended..............................................58690
    Sec. 22 amended................................................49224
    Sec. 24 amended................................................49224
    Sec. 25 amended................................................49225
    Appendix revised...............................................49225
255.12 Revised.....................................................14852
291 Authority citation revised.....................................49226
291.2 Amended......................................................49226
291.42 Heading and (a) revised.....................................49226
291.43 Added.......................................................49227
291.44 Added.......................................................49227
291.45 Added.......................................................49227
291.60 (Subpart G) Added...........................................49230
298 Authority citation revised..............................49231, 58690
298.2 Amended; (m) removed.........................................49231
    Amended........................................................58690
298.60 (a) and (b) revised.........................................49231
298.61 Revised.....................................................49231
298.62 (d) revised.................................................49234
298.63 (h) and (i) removed; (j) redesignated as (h); new (h) 
        revised....................................................49234
298.64 Removed.....................................................49234
298.70 (Subpart G) Added...........................................49234
330 Authority citation revised.......................................255
    Revised........................................................54066
330.3 Amended......................................................18476
    (b)(1) and (c)(1) amended; (b)(3) revised......................30325
330.5 Revised......................................................18476
330.7 (c) revised....................................................255
    Revised........................................................18476
330.9 (b) revised..................................................18476
330.11 (b) removed...................................................255

[[Page 928]]

330.21 (d) and (e) added.............................................255
    (d) introductory text revised...................................4901
    (f), (g), and (h) added........................................18476
330.31 Revised.......................................................255
    (d)(1)(iii) and (2)(iii) amended; (d)(1)(iv) and (2)(iv) 
removed; (d)(1)(v) and (2)(v) redesignated as new (d)(1)(iv) and 
(2)(iv)............................................................18476
330.35 (a)(4) revised................................................256
330.37 (b) revised...................................................256
    (b) amended; (c) and (d) added.................................18476
330.39 Added.......................................................18477
330.41--330.45 (Subpart C) Added...................................18477
330 Appendix A amended...............................................256
    Appendix B amended...............................................259
    Appendix C amended...............................................260
    Appendix A revised.............................................18478

                                  2003

14 CFR
                                                                   68 FR
                                                                    Page
Chapter II
250.1 Amended......................................................52836
250.2 Amended......................................................52836
250.2b (b) amended.................................................52836
250.5 (a) amended..................................................52836
250.9 (b) amended..................................................52836
255.12 Revised.....................................................15353
330.43 (a) and (b) revised.........................................44458
330.45 (b)(2)(i) and (ii) revised..................................44458
382 Policy statement...............................................24874
382.3 (c) revised..................................................40494
382.70 Added.......................................................40494
382 Appendix A added...............................................40495
399.110 Removed....................................................43883
Chapter III
401.1 Revised......................................................35289
401.3 Amended......................................................35289
404.3 (c) amended..................................................35289
404.5 Amended......................................................35289
404.11 Amended.....................................................35289
404.13 Amended.....................................................35289
404.17 Amended.....................................................35289
404.19 (b) amended.................................................35289
413.1 Revised......................................................35289

                                  2004

14 CFR
                                                                   69 FR
                                                                    Page
Title 14 Nomenclature change.......................................18803
Chapter II
254.4 Revised......................................................56693
254.5 Revised......................................................56693
255 Revised.........................................................1032
382.70 OMB number..................................................77885
383 Revised........................................................41423

                                  2005

14 CFR
                                                                   70 FR
                                                                    Page
Chapter II
201.1 (b) amended..................................................25767
203.3 Amended......................................................25767
205.4 (a) and (c) revised; (b) amended.............................25767
205.7 (a) amended..................................................25768
215.3 Amended......................................................25768
215.4 (a) amended..................................................25768
215.6 Amended......................................................25768
234 Authority citation revised......................................7394
    Order...........................................................9217
234.13 Added........................................................7394
257.5 (d) revised..................................................44851
298.1--298.4 (Subpart A) Revised...................................25768
298.11--298.12 (Subpart B) Revised.................................25768
298.21--298.24 (Subpart C) Revised.................................25768
298.30--298.38 (Subpart D) Revised.................................25768
298.50--298.53 (Subpart E) Revised.................................25768
380.2 Amended......................................................25773
382 Technical assistance manual....................................41482
385.12 (e) amended.................................................25773
389.25 (a) table amended...........................................25773

                                  2006

14 CFR
                                                                   71 FR
                                                                    Page
Chapter II
212.2 Amended.......................................................5784
212.9 (b)(1) revised................................................5785
256 Removed.........................................................8802
294.2 (a) revised..................................................49347
294.3 (e) revised..................................................49347
294.10 (d) added...................................................49347
294.20 Introductory text and (b) amended...........................49347
294.21 (b), (e)(1) and (g) revised.................................49347
294.22 Introductory text and (a)(1) revised........................49347
294.32 (a) revised.................................................49347
294.40 Amended.....................................................49347
294.50 (d) revised.................................................49347
294.60 (a) revised.................................................49347

[[Page 929]]

294.81 (b) revised.................................................49347
294.82 Removed.....................................................49347
294.88 Removed.....................................................49347
294.89 Removed.....................................................49347
375 Authority citation revised.....................................15328
375.1 Amended......................................................15328
375.37 Added.......................................................15328
Chapter III
401.5 Amended......................................................50530
    Amended; eff. 2-13-07..........................................75631
404.3 Revised......................................................51971
404.5 (e) added....................................................51971
406.3 (b) revised..................................................50530
413.7 (d) added....................................................46852
    (d) added......................................................50531
    (c)(1) revised.................................................51972
    (d) correctly removed; (e) correctly added.....................56005
414 Added..........................................................46853
415.1 Revised......................................................50531
415.8 Added; eff. 2-13-07..........................................75632
415.9 (b) amended..................................................50531
415.31 (a) revised.................................................50531
415.35 Revised.....................................................50531
415.37 Revised.....................................................50531
415.39 Revised.....................................................50531
415.41 Revised.....................................................50531
415.51 Amended.....................................................50531
415.71--415.90 (Subpart E) Removed.................................50532
415.91--415.136 (Subpart F) Revised................................50532
415.101 Redesignated as 415.201....................................50532
415.103 Redesignated as 415.203....................................50532
415.201 Redesignated from 415.101..................................50532
415.203 Redesignated from 415.103..................................50532
415 Appendix B added...............................................50536
417 Added..........................................................50537
    Appendix F heading correctly added.............................56006
420 Appendix C amended.............................................51972
431.8 Added; eff. 2-13-07..........................................75632
435.8 Added; eff. 2-13-07..........................................75632
440 Revised; eff. 2-13-07..........................................75632
450 Removed; eff. 2-13-07..........................................75643
460 Added; eff. 2-13-07............................................75643

                                  2007

14 CFR
                                                                   72 FR
                                                                    Page
Chapter II
204.1 Revised......................................................20036
204.2 (c)(3) revised...............................................20036
204.5 (a)(2) and (c) revised; (b) amended; (d) added...............20036
254.4 Revised.......................................................3943
254.5 Revised.......................................................3943
331 Added..........................................................17387
382 Policy statement................................................8268
Chapter III
Chapter III Comment disposition....................................34999
401 Technical correction............................................7740
401.3 Revised......................................................17016
401.5 Amended......................................................17016
404.1 Revised......................................................17016
404.3 (b)(1)(ii) revised...........................................68475
404.17 Revised.....................................................17016
405.1 Revised......................................................17016
405.3 (a), (b) and (d) revised.....................................17016
405.5 Introductory text and (a) revised............................17017
406.1 Heading, (a)(2) and (3) revised; (a)(4) and (5) added........17017
406.3 Heading and (a) revised......................................17017
406.5 Heading revised..............................................17017
406.9 (a), (c) introductory text and (f)(3) revised................17017
    (g)(1) revised.................................................68475
406.109 (b)(1), (2) and (3) revised................................68475
406.113 (a), (b), (c), (d) introductory text, (1), (2), (e), 
        (f)(1), (2) and (3) revised................................68476
406.115 (a), (c) and (d) revised...................................68476
406.121 (a) and (b) revised........................................68476
406.127 (a)(3)(ii) revised.........................................17017
    (a)(1) and (b)(3) revised......................................68476
406.133 (a) introductory text revised..............................68477
406.137 (a) revised................................................68477
406.139 (b) introductory text and (d) revised......................68477
406.141 (c) revised................................................68477
406.143 (b) and (j)(3) amended.....................................68477
406.173 (d) amended................................................68477
406.175 (a), (d)(introductory text, (e) introductory text and (g) 
        revised; (f) amended.......................................68477
406.177 (a) amended................................................68477
413.1 Revised......................................................17017
413.3 Revised......................................................17017
413.5 Revised......................................................17018
413.7 (a), (b)(3), (c)(1) and (3) revised..........................17018
413.11 Revised.....................................................17018
413.13 Revised.....................................................17018
413.15 Revised.....................................................17018
413.17 Revised.....................................................17018

[[Page 930]]

413.19 Revised.....................................................17019
413.21 (a), (b) introductory text and (1) revised..................17019
413.23 Revised.....................................................17019
415 Technical correction............................................7740
415.1 Revised......................................................17019
420.5 Amended......................................................17019
420.25 (b) revised.................................................17019
420.30 Added.......................................................17019
431 Technical correction............................................7740
431.35 (d)(7) revised..............................................17019
435 Technical correction............................................7740
437 Added..........................................................17019
437.21 OMB number..................................................50209
437.25 OMB number..................................................50209
437.27 OMB number..................................................50209
437.29 OMB number..................................................50209
437.31 OMB number..................................................50209
437.37 OMB number..................................................50209
437.41 OMB number..................................................50209
437.53 OMB number..................................................50209
437.55 OMB number..................................................50209
437.57 OMB number..................................................50209
437.59 OMB number..................................................50209
437.69 OMB number..................................................50209
437.89 OMB number..................................................50209
440 Technical correction............................................7740
460 Technical correction............................................7740
460.5 OMB number...................................................27732
460.7 OMB number...................................................27732
460.9 OMB number...................................................27732
460.19 OMB number..................................................27732
460.45 OMB number..................................................27732
460.49 OMB number..................................................27732


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