10758 Federal Register / Vol. 62, No. 46 / Monday, March 10, 1997 / Proposed Rules

The Proposed Amendment

Accordingly, pursuant to the

authority delegated to me by the

Administrator, the Federal Aviation

Administration proposes to amend part

39 of the Federal Aviation Regulations

(14 CFR part 39) as follows:

PART 39—AIRWORTHINESS

DIRECTIVES

1. The authority citation for part 39

continues to read as follows:

Authority: 49 U.S.C. 106(g), 40113, 44701.

§ 39.13 [Amended]

2. Section 39.13 is amended by

removing Airworthiness Directive (AD)

84–23–06, Amendment 39–4942, (49 FR

43621, October 31, 1984), and adding a

new AD to read as follows:

Pilatus Britten-Norman Ltd.: Docket No. 84–

CE–18–AD; Revises AD 84–23–06,

Amendment 39–4942.

Applicability: BN–2T Mk 111 series

airplanes (all serial numbers), certificated in

any category.

Note 1: This AD applies to each airplane

identified in the preceding applicability

provision, regardless of whether it has been

modified, altered, or repaired in the area

subject to the requirements of this AD. For

airplanes that have been modified, altered, or

repaired so that the performance of the

requirements of this AD is affected, the

owner/operator must request approval for an

alternative method of compliance in

accordance with paragraph (d) of this AD.

The request should include an assessment of

the effect of the modification, alteration, or

repair on the unsafe condition addressed by

this AD; and, if the unsafe condition has not

been eliminated, the request should include

specific proposed actions to address it.

Note 2: The paragraph structure of this AD

is as follows:

Level 1: (a), (b), (c), etc.

Level 2: (1), (2), (3), etc.

Level 3: (i), (ii), (iii), etc.

Level 2 and Level 3 structures are

designations of the Level 1 paragraph they

immediately follow.

Compliance: Required initially upon the

accumulation of 500 hours time-in-service

(TIS) or within the next 50 hours TIS,

whichever occurs later, unless already

accomplished (compliance with AD 84–23–

06) and thereafter at intervals not to exceed

500 hours TIS.

To prevent failure of the upper mounting

brackets on both wing mounted engines

which could possibly cause structural failure

of the airplane, accomplish the following:

(a) Visually inspect in accordance with

paragraphs 1 through 6 of the ‘‘Inspection’’

section of the Pilatus Britten-Norman

(Pilatus) Service Bulletin (SB) No. BN–2/

SB.61, Issue 5, dated December 9, 1981 the

following areas:

(1) The upper engine to wing mounting

brackets for:

(i) Minimum lug bolt hole-to-edge distance

(0.2625 inches), elongation of the bolt holes,

distortion, delamination, cracks, flaking, and

corrosion;

(ii) The bolts for correct bearing length; and

(iii) Loose and fretted bushings.

(2) Prior to further flight, correct defects in

accordance with the following:

(i) If the lug bolt hole-to-edge distance is

less than the specified minimum, correct in

accordance with paragraph 3 of the

‘‘Rectification/Modification’’ section of

Pilatus SB No. BN–2/SB.61, Issue 5, dated

December 9, 1981;

(ii) If the bolt holes are elongated, or if any

bushings are loose or fretted, modify and

correct in accordance with paragraph 4 of the

‘‘Rectification/Modification’’ section of

Pilatus SB No. BN–2/SB.61, Issue 5, dated

December 9, 1981;

(iii) If any mounting bracket is cracked,

modify both brackets on the same engine

installation (left side engine or right side

engine) concurrently (even if only one

bracket is defective) in accordance with

paragraph 1 of the ‘‘Rectification/

Modification’’ section of Pilatus SB No. BN–

2/SB.61, Issue 5, dated December 9, 1981;

(iv) If any lug is distorted or delaminated,

replace the deficient part in accordance with

paragraphs 1 and 2 of the ‘‘Rectification/

Modification’’ section of Pilatus SB No. BN–

2/SB.61, Issue 5, dated December 9, 1981;

(v) If any inspected part is corroded or

flaking, replace the part in accordance with

paragraph 1 of the ‘‘Rectification/

Modification’’ section of Pilatus SB No. BN–

2/SB.61, Issue 5, dated December 9, 1981;

and

(vi) If any of the bolts are of incorrect

length or damaged, replace with new units of

the correct length in accordance with

paragraphs 1 and 2 of the ‘‘Rectification/

Modification’’ section of Pilatus SB No. BN–

2/SB.61, Issue 5, dated December 9, 1981.

(b) The intervals between the repetitive

inspections required by this AD may be

adjusted up to 10 percent of the specified

interval to allow for accomplishing these

inspections concurrent with the other

scheduled maintenance of the airplane.

(c) Special flight permits may be issued in

accordance with sections 21.197 and 21.199

of the Federal Aviation Regulations (14 CFR

21.197 and 21.199) to operate the airplane to

a location where the requirements of this AD

can be accomplished.

(d) An alternative method of compliance or

adjustment of the initial or repetitive

compliance times that provides an equivalent

level of safety may be approved by the

Manager, Brussels Aircraft Certification

Division, FAA, Europe, Africa, and Middle

East Office, c/o American Embassy, B–1000

Brussels, Belgium; telephone (322) 508.2715;

facsimile(322) 230.6899; or Mr. S. M.

Nagarajan, Project Officer, Small Airplane

Directorate, Aircraft Certification Service,

FAA, 1201 Walnut, suite 900, Kansas City,

Missouri 64106. The request shall be

forwarded through an appropriate FAA

Maintenance Inspector, who may add

comments and then send it to the Manager,

Brussels Aircraft Certification Office or the

Manager, Small Airplane Directorate.

Note 3: Information concerning the

existence of approved alternative methods of

compliance with this AD, if any, may be

obtained from the Brussels Aircraft

Certification Division or the Small Airplane

Directorate.

(e) All persons affected by this directive

may obtain copies of the document referred

to herein upon request to Pilatus BrittenNorman Limited, Bembridge, Isle of Wight,

United Kingdom PO35 5PR; telephone 44–

1983 872511; facsimile 44–1983 873246; or

may examine this document at the FAA,

Central Region, Office of the Assistant Chief

Counsel, Room 1558, 601 E. 12th Street,

Kansas City, Missouri 64106.

Issued in Kansas City, Missouri, on

February 28, 1997.

Michael Gallagher,

Manager, Small Airplane Directorate, Aircraft

Certification Service.

[FR Doc. 97–5840 Filed 3–7–97; 8:45 am]

BILLING CODE 4910–13–U

Office of the Secretary

14 CFR Parts 221, 250, 293

[Docket No. OST–97–2050; Notice No. 97–

1]

RIN 2105–AC61

Exemption From Passenger TariffFiling Requirements in Certain

Instances

AGENCY: Office of International

Aviation, Office of the Secretary, DOT.

ACTION: Notice of proposed rulemaking.

SUMMARY: The Department proposes to

exempt U.S. and foreign air carriers

from the statutory and regulatory duty

to file with DOT international passenger

tariffs in certain instances, subject to the

reimposition of the duty in specific

cases when consistent with the public

interest. In addition, the Department

proposes to reissue a new version of

part 221 that eliminates most of the

traditional paper format and filing

procedures set forth in the present

version of 14 CFR part 221. This

proposal is made on the Department’s

initiative in order to streamline

government operations and eliminate

unjustified regulatory burdens.

DATES: Comments should be received no

later than May 9, 1997. Since the

proposal eliminates various

requirements and creates no additional

burdens, a final rule based on this

proposal would be effective

immediately upon issuance. However,

the cancellation of certain tariff rules

would take place 90 days after the date

of effectiveness of the notice provided

in § 293.10 of new part 293.

ADDRESSES: Five (5) copies of any

comments should be sent to the

Documentary Services Division, C–55,

U.S. Department of Transportation, 400
Federal Register / Vol. 62, No. 46 / Monday, March 10, 1997 / Proposed Rules 10759

1The statute established all fares in effect as of

October 1, 1979 as the SFFL base fares. Seasonal

fares were to maintain the same percent difference

between seasons that prevailed in 1978. We discuss

the mechanics of the SFFL process in greater detail

in footnote 3, below.

2By normal economy fares, we are referring to the

lowest point-to-point one-way fare available for ondemand service in each market. These are

sometimes also called ‘‘restricted’’ normal economy

fares, or, in markets where these are not available,

‘‘unrestricted’’ normal economy fares.

3The SFFL mechanism consists of two parts. The

first part is comprised of the base fare level which

represents the lowest available normal economy

fare filed by a direct service carrier in a given citypair market, and approved for effectiveness on

October 1, 1979. For those markets without direct

service on October 1, 1979, the fare filed by a carrier

instituting direct service becomes the base level.

The second part is the cost adjustment factor to be

applied to the base fare. This factor is derived from

the latest estimated total cost per available seat mile

(ASM), divided by the actual total costs per ASM

at October 1, 1979, for each Form 41 reporting

entity. The statute requires us to adjust the SFFL

index every two months for fuel cost changes, and

every six months for other cost changes. In practice,

we have always made adjustments for both fuel and

non-fuel costs every two months. The base fares are

than multiplied by the appropriate SFFL index. The

product is then increased by the amount of upward

flexibility for the market concerned to produce the

regulatory ceiling. Discretionary grants of upward

flexibility in excess of the statutory five percent

have been made for markets where sufficient

competition has been found to exist.

7th Street, SW, Washington, D.C.

20590–0002, and should refer to this

docket. Acknowledgment of comments

require you to include a stamped, selfaddressed postcard that the Docket

Clerk will time and date-stamp, and

return.

FOR FURTHER INFORMATION CONTACT: Mr.

John H. Kiser or Mr. Keith A. Shangraw,

Office of the Secretary, Office of

International Aviation, X–43,

Department of Transportation, at the

address above. Telephone: (202) 366–

2435.

SUPPLEMENTARY INFORMATION:

Background

Section 41504 of Title 49 of the

United States Code (the Code), formerly

section 403(a) of the Federal Aviation

Act of 1958, as amended, requires every

U.S. and foreign air carrier to file with

the Department, and to keep open for

public inspection, tariffs showing all

prices for ‘‘foreign air transportation’’

between points served by that carrier, as

well as all rules relating to that

transportation to the extent required by

the Department. This includes

passenger fares, related charges and

governing rules. 14 CFR part 221

establishes the detailed tariff-filing rules

and authority for approvals, rejections

and waivers. Once approved by the

respective government aviation

authorities, if required under the

relevant bilateral agreements and/or the

Code, these tariffs become legally

binding terms in the contract of carriage

for international air transportation.

In his Regulatory Reinvention

Initiative Memorandum of March 4,

1995, President Clinton directed Federal

agencies to conduct a page-by-page

review of all of their regulations and to

‘‘eliminate or revise those that are

outdated or otherwise in need of

reform.’’ In response to that directive,

the Department has undertaken a review

of its aviation economic regulations

contained in 14 CFR Chapter II to

determine whether changes should be

made to promote economic growth,

create jobs, or eliminate unnecessary

costs or other burdens on the economy.

Among the regulations reviewed are

those governing the filing of tariffs by

airlines for their foreign air

transportation, set forth in 14 CFR part

221.

In two recently completed rulemaking

proceedings, the Department has

determined that the amount of tariff

material filed by carriers exceeds our

regulatory requirements in certain

respects, that alternative methods exist

for protecting consumers and other

elements of the public interest which

are more effective than filed tariffs, and

that procedures should be developed to

permit the electronic filing and review

of those tariffs which should continue to

be filed. On November 30, 1995, the

Department published a final rule

exempting carriers from their regulatory

duty to file tariffs for the foreign air

transportation of cargo. On April 24,

1996, the Department published a final

rule establishing procedures for the

electronic filing of passenger rules

tariffs.

In this, the third rulemaking

proceeding involving the tariff system

undertaken as part of the President’s

directive, the Department has

tentatively determined that the filing of

certain tariffs with the Department for

the foreign air transportation of

passengers is no longer necessary or

appropriate, and it accordingly proposes

to grant another exemption to the tarifffiling requirement set forth in part 221.

In addition, the Department has

tentatively identified a substantial

number of provisions in part 221 that

are redundant, contain obsolete

references, or are out-dated given

present regulatory practices and needs.

Accordingly, the Department proposes a

general revision of part 221 to eliminate

redundancies, excess verbiage and

obsolete provisions, to make necessary

technical changes, and to reorganize the

subparts in a more logical order.

Regulation of Carrier Pricing

The Standard Foreign Fare Level (SFFL)

Section 41509 of the Code establishes

a fare flexibility (or ‘‘no suspend’’) zone

centered on a Standard Foreign Fare

Level (SFFL). The SFFL is the fare(s) in

effect on or after October 1, 1979 for the

city-pair in question, as adjusted for

inflation.1/ Fare increases of up to five

percent above the SFFL, and fare

decreases of up to 50 percent below the

SFFL, may not be suspended on the

grounds that the resulting new fare

levels are too low or too high, although

suspension is still possible even for

fares within the zone on certain other

statutory grounds. Approval of fares

outside the zone is subject to

Department discretion.

Premium and Promotional Fares

Although the law permits the

Department to establish a separate SFFL

for each fare class or type, and to

regulate fare levels outside the zone for

each class or type, the Department has

generally permitted carriers to set

premium fares (first and business class)

and discount fares at the levels they

wish. Market forces are usually

sufficient to ensure that these fares are

reasonably priced without government

intervention. However, in cases where

foreign government policies or actions

seriously degrade competitive forces,

the Department may be required to look

more closely at premium and discount

fare pricing in the affected markets.

Normal Economy Fares

As opposed to premium and discount

fares, where the Department intervenes

only rarely, it maintains regulatory

supervision over normal economy fares

(NEF’s).2 These fares are the lowest

prices available without restrictions. As

such, they are the fares used by travelers

who must travel and cannot adjust their

plans to comply with the various

conditions attached to discount fares.

The Department believes the public

interest favors ensuring access to these

fares at reasonable levels, especially so

in markets where competitive forces are

weak. The Department relies primarily

on the SFFL regulatory mechanism to

achieve this.3

Normal economy fare proposals in

direct service markets at or below the

cost-based regulatory ceiling are

automatically approved. Fare proposals

above the ceiling are subject to

disapproval. However, we generally

approve NEF’s above the ceilings in

markets governed by doubledisapproval bilateral pricing articles.

Carriers are always free to present

economic justification to support
10760 Federal Register / Vol. 62, No. 46 / Monday, March 10, 1997 / Proposed Rules

proposed fares that exceed SFFL

ceilings. Typically, such case-by-case

justification follows a more traditional

rate-of-return methodology used in

public utility regulation. Upon a

sufficient showing of a need for

additional revenue and a determination

that it is in the public interest, we will

permit normal economy fares to exceed

the regulatory ceilings.

Carrier Pricing—International

Liberalization

The U.S. Government has actively

pursued the liberalization of

international aviation markets,

including the right of carriers to set their

prices based on managements

discretion, free of regulatory

intervention. To this end it has

concluded air transport agreements

containing ‘‘double-disapproval’’

pricing articles which effectively

deregulate passenger prices in certain

markets. Under these doubledisapproval provisions, both

governments must agree in order to

disapprove a fare. Since the first doubledisapproval pricing articles were signed

in the late 1970’s, cases where a Party

has sought the agreement of its bilateral

partner to disapprove a fare have been

extremely rare. In these circumstances,

we now question whether any purpose

is served in burdening U.S. and foreign

carriers with continuing to file

passenger fares for approval in markets

where pricing has been effectively

deregulated by government agreement,

and the evolution of competitive market

forces.

We have already taken other actions

to reduce the industry’s costs of

complying with the Department’s filing

requirements. In December of 1989, we

permitted carriers to file their official

international passenger fare tariffs

electronically, relieving the industry

and the Department of the burden of

producing, filing and processing

thousands of tariff pages each year. As

indicated above, in November 1995, we

exempted carriers from filing

international cargo tariffs, and in April

1996, we promulgated a final rule to

permit the electronic filing of

international passenger service rules, in

a further effort to reduce the costs of

compliance with tariff filing

requirements.

Against this background, we

tentatively believe the opportunity now

exists to reduce the tariff filing burden

on both industry and the government

even further by eliminating superfluous

and burdensome tariff-filing

requirements. Selectively exempting

U.S. and foreign air carriers from the

statutory and regulatory duty to file

international passenger tariffs would

appear to be the next logical step in the

continuing evolution of a policy where

we rely on market forces rather than

continual government oversight to set

prices for air transportation. In many

cases, tariffs continue to be filed in

markets where all prices have been

effectively deregulated. In others,

market forces are usually sufficient to

ensure that most fares are reasonably

priced without government

intervention. Indeed, the continued

filing of passenger fares serves a

meaningful regulatory purpose only in

those markets where foreign government

policies or actions seriously hinder

competitive forces, or where we

continue to supervise normal economy

fares.

A. The Scope of the New Tariff-Filing

Requirement

Fares and Related Fare Rules

We propose to selectively exempt

carriers from their statutory and

regulatory duty to file passenger tariffs,

both for fares and for related rules that

apply to specific fares as follows:

Category A: Third and fourth-freedom

carriers would not file any tariffs for

travel to and/or from countries where

the United States has air transport

agreements in force that contain doubledisapproval pricing rules, under which

agreement of both Parties is required to

disapprove an existing or a proposed

price, and where the country’s

government is honoring the provisions

of the aviation agreement and there are

no significant bilateral problems. At the

present time these would include the

following 31 countries:

Western Hemisphere: Aruba, Canada,

Chile, Costa Rica, El Salvador,

Dominican Republic, Guatemala,

Jamaica, Trinidad & Tobago.

Europe & Middle East: Austria,

Belgium, Czech Republic, Denmark,

Finland, Germany, Iceland, Ireland,

Israel, Jordan, Luxembourg,

Netherlands, Norway, Pakistan, Russia,

Sweden, and Switzerland.

Pacific: Fiji, Korea, Malaysia,

Singapore, Taiwan.

Category B: All third and fourthfreedom carriers must file tariffs only for

regulated normal economy fares

applicable to travel to and/or from

countries without double-disapproval

pricing rules, but where carriers

generally have unfettered discretion in

pricing initiatives, and where the

United States has no outstanding,

significant bilateral aviation problems.

In this instance, the Department’s only

regulatory concern is the level of normal

economy fares set under existing SFFL

legislation. Because carriers frequently

make changes in levels, fare codes and

other provisions applicable to both

‘‘restricted’’ and ‘‘unrestricted’’ normal

economy fares, we would require

continued filing of all one-way economy

class fares in these markets. This

approach would appear to be the most

practical administratively for both the

industry and the Department. This

category would encompass all countries

not specifically listed in Categories A

and C.

Category C: All carriers must file

tariffs for all fare types applicable to

travel to/from various markets where

pricing initiatives have been frustrated

in recent years and/or where the U.S.

has other serious bilateral problems

and/or very restrictive agreements.

These would include Brazil, China,

Ecuador, France (including overseas

dependencies), Hong Kong, India, Italy,

Japan, Spain, and the United Kingdom

(including overseas dependencies), for a

total of 10 markets.

Carriers offering fares on a fifth or

sixth freedom basis in Category A or

Category B markets would not have to

file any tariffs in those markets unless

they are nationals of restrictive

countries identified in Category C. We

have tentatively decided to retain

existing filing requirements for carriers

of restrictive countries in order to

prevent free-rider problems. As long as

the market for air transportation

between the United States and such

countries is constrained by government

interference with airline pricing

initiatives, highly restrictive entry and

capacity regimes, or significant,

unresolved bilateral problems, it would

not be appropriate to permit their

carriers to routinely take advantage of

the liberal, virtually deregulated pricing

regime in Category A markets or the

liberal regime that exists for

promotional and premium fares in

Category B markets. Although we allow

all carriers, regardless of nationality, to

match fares offered by other carriers in

the market (subject to reciprocity), how

we treat price leadership proposals by

carriers of restrictive countries is

entirely a matter of our discretion. For

this reason we tentatively conclude that

we have a continuing need to supervise

all fares of such carriers and would

retain existing tariff filing requirements

for them.

Under the proposed rule in a new part

293, the Assistant Secretary for Aviation

and International Affairs would issue a

notice specifying the terms of the

exemptions for markets in Category A

(no fare filing) and Category B (NEF

filing only), and enumerating the

countries included in Category A and
Federal Register / Vol. 62, No. 46 / Monday, March 10, 1997 / Proposed Rules 10761

4Our proposed exemption from tariff-filing

requirements would not affect our treatment of

IATA agreements, which will continue to be

reviewed by the Department under existing

procedures.

5No new filings on applications to file tariffs

covered by the exception would be permitted after

the date of effectiveness of the notice.

6We also propose to delete section 250.4 of 14

CFR Part 250 (Oversales), which requires carriers to

file tariffs governing denied-boarding

compensation.

7Section 221.38(j) of current part 221 requires

carriers to state in their tariffs whether they avail

themselves of the limitation on liability to

passengers as provided in Article 22(1) of the

Warsaw Convention or whether they have elected

to agree to a higher limit of liability through the

tariff, and in either case what the limit is. Sections

221.175 and 221.176 set forth requirements for

special notices of passenger and/or baggage liability

limitations to be provided at ticket offices and with

travel documents.

Category C; countries not listed in

Categories A or C would be assumed to

be in Category B. Under the rule, the

Assistant Secretary would consider the

following factors in listing countries in

each category: (1) 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; (2) Whether the country’s

government has disapproved or deterred

U.S. carrier price leadership or

matching tariff filings in any market; (3)

Whether the country’s government has

placed significant restrictions on carrier

entry or capacity in any market; and (4)

Whether the country’s government is

honoring the provisions of the bilateral

aviation agreement and whether there

are any significant bilateral problems.4

After the initial determination,

countries could be transferred between

categories by subsequent notice of the

Assistant Secretary, by petition, or on

the Department’s own initiative. For

example, entry into force of a doubledisapproval bilateral agreement would

warrant placing a country into Category

A (no fare filing); conversely, action by

a foreign government denying U.S.

carrier pricing initiatives could justify

re-institution of full tariff filing

requirements by placing that market in

Category C.

General Rules Relating to Conditions

of Carriage: In addition to fares and farespecific rules, existing passenger tariffs

also set forth—usually in a separate

‘‘general rules tariff’’ —provisions

governing the general ‘‘conditions of

carriage’’ of each passenger. These rules

include such general subjects as notice

of terms of contract of carriage; carrier

liability and limitations thereof; refund

and claims procedures; refusal to carry;

denied boarding procedures; carriage of

passengers with disabilities; and other

matters of general significance to

consumers of international passenger air

transportation.

With the exception of carrier liability

limits under the Warsaw Convention,

discussed below, we see little need or

justification for the continued filing of

such material in official tariffs by any

carrier, regardless of the nature of the

market. First, the Department has

regulations in place that directly govern

carrier conduct in certain of these areas,

such as denied boarding and with

respect to U.S. carriers, transportation of

passengers with disabilities. Second, to

the extent that passengers might have

questions about the application or

interpretation of certain provisions, it is

likely that they would consult the

carrier directly, rather than its tariffs.

And third, to the extent that tariffs

might set forth certain material in

greater detail than travel documents, the

Department already has an alternate

framework in place to permit its

incorporation into a contract of carriage

with adequate notice to passengers.

Under current section 221.177, carriers

may incorporate all material not

actually printed on the ticket or other

travel document by reference, provided

that they make the full text of all such

incorporated terms readily available for

public inspection, in either electronic or

printed medium, at each airport or other

sales office of the carrier. This

procedure preempts any conflicting

state laws establishing incorporation-byreference standards, as did 14 CFR part

253 in the case of interstate passenger

air transportation.

In the 14 years since the filing of

domestic passenger tariffs was

discontinued, incorporation by

reference has generally worked well to

protect consumers, and we adopted the

same regime for international cargo

transportation in November 1995. We

see no reason not to apply the same

approach to all foreign air transportation

of passengers. Unlike the prices charged

to passengers, which reflect the differing

competitive conditions and regulatory

regimes that vary among markets and

thus justify differing filing

requirements, general rules tend to be

uniform across markets. We are not

aware of particular conditions or issues

in any market where continuation of

rules tariffs would be superior to a

notice regime. The graduated system of

written notice and right of immediate

inspection for general terms, coupled

with direct notice and/or a right to an

immediate explanation of certain more

important terms, constitutes a deliberate

balance between ease of contract

formation and the importance of

informed assent. Once given actual

notice that terms may be incorporated

by reference, the customer is under an

obligation to inquire about them, and

the carrier is under an obligation to

make the information available to an

inquiring customer.

For these reasons, we tentatively

conclude that general rules material

setting forth general conditions of

carriage should not be filed in official

tariffs by any carrier. We propose to

cancel this material by operation of law

90 days following the Assistant

Secretary’s notice setting forth the

country categories; the notice will also

include an initial description of general

conditions of carriage.5 Each governing

rules tariff would be required to contain

a statement that rules therein containing

general conditions of carriage are not

part of the official tariff. This process

will provide a transition period for the

industry comparable to that we

provided in canceling cargo rules

tariffs.6

We also propose to include provisions

in new part 293 which will expressly

authorize carriers to incorporate any

terms by reference into their contracts

for the carriage of passengers in foreign

air transportation upon compliance with

all of the notice, inspection, explanation

and other requirements set forth in 14

CFR 221.107. Completing the basic

parallel to 14 CFR parts 253 and 292, we

will also expressly provide that

passengers are not bound by terms

incorporated without compliance with

these notice requirements, and that the

notice requirements are intended to

preempt any conflicting State

requirements governing incorporation of

contract terms by reference.

However, the Department has specific

provisions governing public notice of

carrier limitations on passenger and

baggage liability, as well as regulations

and orders perfecting a required waiver

of the passenger liability limits and

certain defenses provided by the

Warsaw Convention.7 The latter contain

tariff-filing requirements independent of

those set forth in part 221. In particular,

14 CFR part 203 requires all direct U.S.

and foreign air carriers, except certain

‘‘air taxis,’’ to file with the Department

a signed counterpart to the Montreal

Agreement, and section 203.4 further

provides that each carrier include the

Agreement’s terms as part of its

conditions of carriage and that it file

and maintain a tariff containing such

terms with the Department. Although

generally exempt from filing tariffs,

most air taxis are also subject to this

special requirement. (See 14 CFR

298.11(b) and 298.21(c)(4).)

For several reasons we do not propose

to eliminate these special tariff
10762 Federal Register / Vol. 62, No. 46 / Monday, March 10, 1997 / Proposed Rules

8See Orders 96–10–7 and 96–11–6 in Dockets

OST–95–232 and OST–96–1607.

9There being no specific requirement that carriers

file baggage liability tariffs, such tariffs would no

longer be filed, or remain on file, under the general

tariff rules exemption proposed here. Carriers’

tariffs merely restate the baggage liability provisions

of the Warsaw Convention and their printed

conditions of carriage, which apply to the extent

they are consistent with the Department’s review of

IATA agreements, and other relevant orders. As in

other areas, the absence of tariffs does not relieve

carriers of their obligations to conform their

contracts of carriage and related practices to the

Department’s regulations and orders. Should

exceptional circumstances arise in which tariff

rules on the subject would be appropriate, the

Department retains the authority to require them on

an ad hoc basis.

10For example, child, youth and senior citizen

discounts.

11We propose to delegate to the Director, Office

of International Aviation, the authority to determine

which rules are covered by the general exemption

from tariff filing of conditions of carriage, and

which rules continue to be subject to tariff filing in

Category B and C markets.

requirements or to modify the current

language on liability notices in part 221.

The passenger liability regime

established by the Warsaw Convention

and subsequent agreements has been

under active reexamination by various

governments and carrier organizations,

and certain carrier agreements to waive

Warsaw provisions have been approved

pendente lite by the Department, subject

to conditions, with exemptions from our

regulations and orders sufficient to

permit their implementation.8 Some

changes to part 221 as well as other

regulations may become necessary, but

it is premature to attempt to resolve

such issues here. Therefore, subject to

the waiver-agreement implementation

exemption, the existing tariff-filing

requirements, and the special notice

provisions of sections 221.175 and

221.176, would remain in effect.9 By

proposing to retain the existing

requirements, carriers are not precluded

from retaining the passenger liability

tariffs as specified in orders of the

Department. We recognize, however,

that the proposed elimination of other

general rules tariffs may necessitate

some changes in filing format for any

continuing requirement. We are

therefore proposing to delegate to the

Director, Office of International

Aviation, the authority to approve nonsubstantive format changes for the

refiling or new filing of authorized tariff

provisions.

Other General Rules and Unpublished

Fare Rules: In addition to marketspecific fares themselves, prices for

international passenger air

transportation include a number of

provisions filed in current rules tariffs.

These include free baggage allowances

and excess baggage charges, fare

construction rules, surcharges for

government-imposed fees or

extraordinary costs authorized by the

Department, and various ‘‘unpublished’’

fares specified as a percentage of

published fares,10 or fares applicable in

more than one market, such as spouse,

air/sea, special event and countrywide

excursion fares. Similarly, there are a

number of ‘‘general fare rules’’ which,

while they are not prices themselves,

are essential to our understanding of the

applicability of particular published

prices as well as to our evaluation of the

differences among published prices.

These include definitions of important

terms such as ‘‘stopover,’’ as well as

currency provisions, classes of service,

and capacity limitations. We tentatively

believe that a regulatory need exists for

the continued filing of such ‘‘pricedefining’’ terms and provisions.

We will continue to scrutinize such

prices through the tariff system to the

same extent, and for the same reasons,

as we review the market-specific fares

themselves. This means that we will

continue to require such unpublished

fare rules and general fare rules to be

filed in Category C markets, and in

Category B markets to the extent that

they have applicability to the

benchmark normal economy fares filed

in the latter markets. At the same time,

we recognize that these rules are not

market-specific. We believe that it

would be an unnecessary burden on

carriers to require each such rule to

carry a notation specifying the markets

and fares to which it applies. Instead,

we propose to allow such rules to

continue to be included in rules tariffs

subject to a clear general disclaimer,

published as part of each separate rules

tariff, that the rules contained therein

apply only to the market-specific fares

that the Department requires to be filed

as tariffs, or, in the case of baggage and

other ancillary charges, to the services

covered by such fares.11

B. The General Revision of Part 221

The Department has tentatively

determined that many provisions in part

221 are obsolete in terms of current

regulatory practices and needs, that an

additional exemption to certain tarifffiling requirements is warranted to

reduce unnecessary burdens on

government and industry, and that

technical and editorial changes to many

other provisions in part 221 are

necessary to make them current.

The last general revision of part 221

was in 1965, over thirty years ago, and

the last editorial review was in 1985 to

reflect both the statutory elimination of

domestic tariffs and the transfer of the

economic functions of the former Civil

Aeronautics Board to the Department.

Since that time, the Department has

exempted carriers from cargo tariff-filing

requirements, and both the Department

and the industry have made significant

progress toward the goal of replacing the

traditional system of filing, reviewing,

and publishing paper tariffs with a far

more efficient electronic system. We are

also proposing a further exemption to

tariff-filing requirements here,

including, for all carriers, the extensive

category of tariffs relating to the

‘‘conditions of carriage.’’

While the industry has not completed

its development of an acceptable format

for the electronic filing of certain

general fare rules and unpublished fare

rules discussed in the previous section,

we tentatively find that the volume of

residual paper filings for those rules

does not warrant retention of the

detailed requirements of part 221,

which was designed for a fullyregulated and exclusively paper tariff

system to meet the needs of a previous

era.

General. The proposed revisions to

part 221 are extensive, involving at least

a 50 percent reduction in the number of

existing provisions. In addition, a

number of provisions are being

consolidated and rewritten, and the

various subparts are being reorganized

for clarity. Because of the extent and

number of changes being made, we

propose to reissue part 221 in its

entirety.

Major Changes

1. To reflect the exemption from the

requirement to file cargo tariffs, current

subpart F is deleted in its entirety, as

well as all other references to cargo rates

and rules throughout part 221. Should

the Department find it necessary to

reimpose a cargo tariff filing

requirement in specific circumstances,

pursuant to the procedures specified in

14 CFR part 292, the necessary filing

procedures and formats will be

specified in the Department’s order.

2. To the extent that passenger fares,

charges and other prices remain subject

to the tariff-filing requirement, the

proposed rule would dictate that all

such filings be made electronically. See

proposed section 221.30. Currently,

only a few of the smaller carriers still

file prices in a paper format. Should a

carrier or tariff agent be able to

demonstrate exceptional circumstances

which require that it continue to file in

a paper format, the Department will

consider applications for a temporary

waiver of the electronic filing

requirement on a case-by-case basis.

Any necessary procedural and format
Federal Register / Vol. 62, No. 46 / Monday, March 10, 1997 / Proposed Rules 10763

12For example, we have eliminated the

prescribed forms for items such as tariff transmittal

letters, special tariff permission applications,

concurrences, and powers of attorney, as well as the

detailed specifications for economic data and

information supporting tariff changes. In the latter

case, although all tariff changes must still be

explained and supported by adequate information

and/or data, we have aligned the requirements of

part 221 with actual industry practice, and

eliminated the disparate justification requirements

for U.S. and foreign carrier filings.

13As in other instances where we have exempted

carriers from routine tariff filing requirements, we

will rely primarily upon competitors and users to

bring any problems to our attention.

14See, for example, 49 U.S.C. sections 41712,

41507 and 41310.

requirements for authorized paper

filings will be established as part of the

Department’s authorization.

3. Filing procedures and requirements

specifically relating to contract of

carriage provisions will be deleted,

reflecting our proposal to exempt

carriers from the filing of such tariffs for

the foreign air transportation of

passengers. As in the case of cargo,

should the Department reimpose a filing

requirement with regard to any

passenger contract of carriage provisions

pursuant to the procedures set forth in

the proposed new part 293, any

necessary filing procedures and formats

would be specified in the Department’s

order.

4. To the extent that passenger fare

rules (as opposed to passenger prices

that are required to be filed

electronically) remain subject to the

tariff-filing requirement, section 221.31

provides that such rules may be filed

electronically, if approved electronic

formats exist; or alternatively, that they

may be filed in a paper format, subject

to the simplified requirements set forth

in other provisions of the proposed rule.

5. Most of the detailed format and

justification specifications originally

designed for paper tariffs and related

filings, such as those set forth in current

Subpart U and to varying degrees in

current subparts C, D, H, L, M, R, S, and

T, have been eliminated. Many such

specifications are obsolete because they

pertain to tariff material no longer

required to be filed, while many others

go into much more detail than is

necessary for current or proposed tariff

filing needs.12 The Department does not

intend that the elimination of current

format specifications will render

material filed in such formats

unacceptable to the extent such material

must still be filed. If carriers find it

economically advantageous to continue

using the same formats, they may do so.

Or, they may propose other formats that

meet the basic requirements set forth in

the simplified provisions of the

proposed rule.

6. The proposed rule retains the

language of current sections 221.38(h)

and (j), 221.175 and 221.176. These

sections set forth requirements for filing

tariffs and posting special notices of

passenger and/or baggage liability

limitations under the Warsaw

Convention and other U.S. law. As

noted above, changes are in the process

of being made to the current passenger

liability regime. Moreover, the

Department has, by order, granted

carriers appropriate exemptions to

implement waivers of the Warsaw

passenger liability limits to the extent

that the current provisions of part 221

and other regulations might be

construed to be inconsistent with the

approved changes.

Conclusion

This rule will not materially lessen

the Department’s ability to intervene in

passenger pricing matters should it be

necessary.13 First, the review of IATA

passenger fare agreements will continue.

Second, the Department has always had

the statutory authority to take action

directly against unfiled passenger fares

and rules under a variety of

circumstances.14 And third, the

Department will reserve the option

under the proposed rule of revoking the

exemption, and thus of reinstating the

tariff-filing obligation, with regard to a

particular carrier or carriers, or for

specific markets, where consistent with

the public interest. This would make

available to the Department, upon short

notice, the full panoply of tariff-filing

requirements and review procedures,

although the Department would not

necessarily implement them all in any

particular case.

Regulatory Analyses and Notices

Executive Order 12866 and DOT

Regulatory Policies and Procedures

The Department has determined that

this proposed rule is not a significant

regulatory action under Executive Order

12866. However, the proposed rule is

significant under the Department’s

Regulatory Policies and Procedures (44

CFR 11034; Feb. 26, 1979), because it

will reduce the paperwork and filing

burden for all U.S. and foreign air

carriers submitting international

passenger tariffs to the Department. The

Department anticipates that the

proposal could save international

scheduled service passenger airlines as

much as $3.23 million in tariff-filing

and preparation expenses, based on

figures submitted to OMB under the

Paperwork Reduction Act for

reinstatement of the part 221

information collection. The Department

does not expect there to be any

additional costs associated with this

rule.

Executive Order 12612

This proposal has been analyzed in

accordance with the principles and

criteria contained in Executive Order

12612 (‘‘Federalism’’), and the

Department has determined the rule

does not have sufficient federalism

implications to warrant the preparation

of a Federalism Assessment.

Regulatory Flexibility Act

I certify that this rule, if adopted, will

not have a significant economic impact

on a substantial number of small

entities, because the tariff filing

requirements apply to scheduled service

air carriers. The vast majority of the air

carriers filing international (‘‘foreign’’)

air passenger tariffs are large operators

with revenues in excess of several

million dollars each year. Small air

carriers operating aircraft with 60 seats

or less and 18,000 pounds payload or

less that offer on-demand air-taxi

service are not required to file such

tariffs.

Paperwork Reduction Act

With respect to the Paperwork

Reduction Act, the proposed reissue of

part 221 would eliminate any residual

paper tariff format and filing procedures

and replace them with more efficient

electronic filing procedures. In addition,

the proposed new part 293 would

exempt carriers from their statutory and

regulatory duty to file international

passenger tariffs in certain specific

markets, subject to reimposition of this

duty when required by the public

interest. Thus, this rule will

significantly reduce the paperwork and

filing burden on government and

industry, even though it does not totally

eliminate information collection

requirements that require the approval

of the Office of Management and Budget

pursuant to the Act. While not

estimated, we expect that costs of

governmental review, filing and

archiving of paper tariff rule filings will

be similarly reduced.

The reporting and recordkeeping

requirement associated with this rule

are being submitted to OMB for

approval in accordance with The

Paperwork Reduction Act of 1995 (Pub.

L. 104–113) under OMB No. 2105,

formerly 2105–0009; Administration:

Department of Transportation; Title:

Exemption from Passenger Tariff-Filing

Requirements in Certain Instances, and

Mandatory Electronic Filing of Residual
10764 Federal Register / Vol. 62, No. 46 / Monday, March 10, 1997 / Proposed Rules

Passenger Tariffs; Need For Information:

Exempts carriers from their statutory

and regulatory duty to file international

passenger tariffs in certain specific

markets, subject to reimposition of this

duty when required by the public

interest; and eliminates residual paper

tariff format and filing procedures,

replacing them with more efficient

electronic filing procedures; Proposed

Use of Information: Exemption is based

on evolution in regulatory

circumstances, while elimination of

residual paper tariff filing procedures is

based on the need to extend the

efficiencies of electronic data

transmission and processing to the filing

of all passenger tariffs; Frequency: An

initial passenger tariff rule filing is

required of each respondent; changes

are voluntary, whenever an air carrier

elects; Estimated Total Annual Burden

Under Proposal: 650,000 hours;

Respondents: 230; Form(s) 13,340

electronic filings or applications per

annum; Average Burden Hours Per

Respondent: 2,826 hours.

For further information on paperwork

reduction contact: The Information

Requirements Division, M–34, Office of

the Secretary of Transportation, 400

Seventh Street, SW., Washington, DC

20590, (202) 366–4735 or DOT Desk

Officer, Office of Management and

Budget, New Executive Office Building,

Room 3228, Washington, DC 20503.

Regulation Identifier Number

A regulation identifier number (RIN)

is assigned to each regulatory action

listed in the Unified Agenda of Federal

Regulations. The Regulatory Information

Service Center publishes the Unified

Agenda in April and October of each

year. The RIN number contained in the

heading of this document can be used

to cross reference this action with the

Unified Agenda.

List of Subjects

14 CFR Part 221

Air fare, Agents, Reporting and

recordkeeping requirements.

14 CFR Part 250

Oversales, Denied boarding.

14 CFR Part 293

Air transportation, Exemptions,

Tariffs.

The proposed rule is being issued

under the authority contained in 49 CFR

1.56(j)(2)(ii). For the reasons set forth

herein, 14 CFR Chapter II would be

amended as follows:

1. Part 221 is revised.

PART 221—TARIFFS

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.

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.
Federal Register / Vol. 62, No. 46 / Monday, March 10, 1997 / Proposed Rules 10765

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.

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 Subchapter I of Chapter 417,

unless otherwise noted.

Subpart A—General

§ 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.

§ 221.2 Carrier’s duty.

(a) Must file tariffs. 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. 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 § 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.

§ 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.

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 the

Statute.

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.

CRT means a video display terminal

that uses a cathode ray tube as the image

medium.

Department means the Department of

Transportation.

Direct-service market means an

international market where the carrier
10766 Federal Register / Vol. 62, No. 46 / Monday, March 10, 1997 / Proposed Rules

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 (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

§ 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

(§ 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.

§ 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.

§ 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

§ 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 carrier

as provided in ’ 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 ’

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.

§ 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
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of their powers of attorney given to such

issuing agent as provided in ’ 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

§ 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

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

§ 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 § 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

§ 221.195 and other applicable

requirements of this part.

§ 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 § 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 § 221.180 and

shall contain at a minimum the

information required by § 221.202(b)(9).

(b) Applications for special tariff

permission may be filed electronically,

as provided in § 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

§ 221.40 Specific requirements.

(a) In addition to the general

requirements in § 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 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.
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(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]

§ 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,

(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

§ 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.

§ 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.

§ 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.

§ 221.53 Proportional fares.

(a) Definite application. Add-on fares

shall be specifically designated as ‘‘addon’’ fares on each page where they

appear.

(b) A tariff may provide that fares

from (or to) particular points shall be
Federal Register / Vol. 62, No. 46 / Monday, March 10, 1997 / Proposed Rules 10769

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.

(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.

§ 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.

§ 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.

§ 221.56 Applicable fare when no through

local or joint fares.

Lowest combination fare applicable.

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

§ 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

§ 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.

§ 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 §§ 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.

§ 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 § 221.61. This separate

governing tariff shall contain no other

rules or governing provisions.

§ 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

§ 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).

§ 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 § 221.202 and other

applicable provisions of subpart R.

§ 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

§ 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
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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.

§ 221.81 Suspension supplement.

(a) Suspension supplement. Upon

receipt of an order of the Department

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.

§ 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.

§ 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.

§ 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

§ 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

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

§ 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.

§ 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.

§ 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.

§ 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
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the same time such tariff is submitted

for filing.

§ 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

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

§ 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.

§ 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 § 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.

§ 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.

§ 221.103 Notice of tariff terms.

Each carrier shall cause to be

displayed continuously in a

conspicuous public place at each

station, office, or location at which

tariffs are required to be posted, a notice

printed in large type reading as follows:

Public Inspection of Tariffs

All the currently effective passenger 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.)

§ 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
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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

§ 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–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.

§ 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

§ 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.

(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
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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)

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.

§ 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;

(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 § 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.

§ 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 § 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

§ 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.

§ 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.
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§ 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

§ 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 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 Departmentestablished 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 § 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 § 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.

§ 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 § 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:

(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.

§ 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 § 221.121 in all

respects and referring to the previous

permission shall be filed.

§ 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

§ 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.

§ 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:
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(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

§ 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 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.

§ 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.

§ 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

§ 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 tariffpublishing agent may not be authorized

to act as tariff agent in his/her

individual capacity. Every tariff issued

by a corporate agent shall be issued in

its name as agent.

(c) Number of copies. Each power of

attorney shall be prepared in triplicate.

The original of each power of attorney

shall be filed with the 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.

§ 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
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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.

§ 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

§ 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

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 § 221.163.)

§ 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 § 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.

§ 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 §§ 221.160 and

221.161 and shall comply with the

requirements of this subpart.

§ 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.

§ 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 § 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 §§ 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 §§ 221.141 and

221.142 shall be observed.

§ 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.

(b) Revoke all powers of attorney and

concurrences which it has issued.

Subpart R—Electronically Filed Tariffs

§ 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 machinereadable 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 § 221.190(b).

(b) To the extent that subpart R is

inconsistent with the remainder of part
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221, subpart R shall govern the filing of

electronic tariffs. In all other respects,

part 221 remains in full force and effect.

§ 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 § 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 online tariff database for a period of two

(2) years after the fare or rule becomes

inactive. After this period of time, the

carrier or agent shall provide the

Department, free of charge, with a copy

of the inactive data on a machinereadable tape or other mutually

acceptable electronic medium.

(8) The filer shall ensure that its online 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.

§ 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 § 221.180, and anytime

thereafter, subject to § 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.

§ 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 § 221.190(b). Further, such paper

tariff, or revision thereto, shall 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
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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.

§ 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

§ 221.180, and must include those data

elements set forth in § 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.

§ 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

§ 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.

§ 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 § 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;

(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 interline;

(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;
Federal Register / Vol. 62, No. 46 / Monday, March 10, 1997 / Proposed Rules 10779

(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.

(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.

§ 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.

§ 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.

§ 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) ondemand 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.

§ 221.206 Statement of fares.

All fares filed electronically in directservice markets shall be filed as single

factor fares.

§ 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.

§ 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.

§ 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 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 § 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) The portion(s) of llll Revised

Page llll filed under EFA No.

llll was/were disapproved by

DOT.

(2) Example of other action: the

portion(s) llll Revised Page

llll filed under EFA No. llll

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

§ 221.202.

§ 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.

§ 221.400 Filing of paper tariffs required.

(a) After approval of any application

filed under § 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
10780 Federal Register / Vol. 62, No. 46 / Monday, March 10, 1997 / Proposed Rules

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 machinereadable 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.

§ 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 § 221.205. The

subscription service shall not preclude

the offering of additional services by the

filer or its agent.

(c) The filer at its option may

establish a charge for providing the

required subscription service to

subscribers: Provided that the charge

may not exceed a reasonable estimate of

the added cost of providing the service.

(d) Each filer shall provide to any

person upon request, a copy of the

machine-readable data (raw tariff data)

of all daily transactions made to its online 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 nondiscriminatory, i.e., that they shall be

substantially equivalent for all

similarly-situated persons.

§ 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.

§ 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 250—OVERSALES

2. The authority citation for part 250

continues to read as follows:

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

413, 417.

§ 250.4 [Removed]

3. Section 250.4—Denied boarding

compensation tariffs for foreign air

transportation is removed.

PART 293—[ADDED]

4. A new part 293 is added as follows:

PART 293—INTERNATIONAL

PASSENGER TRANSPORTATION

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).

Subpart A General

§ 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.

§ 293.2 Definitions.

For purposes of this part the

definitions in § 221.3 of this chapter

apply.

Subpart B—Exemption from Filing

Tariffs

§ 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;

(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 pertaining thereto,

unless they are nationals of countries

listed in Category C;

(iii) In Category C markets, carriers

shall continue to file all passenger

tariffs, except as provided in § 293.10(b).

(2) The Assistant Secretary will list

country-pair markets falling in

Categories A and C, based on the

determining factors in paragraphs

(a)(2)(i) through (iv). 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
Federal Register / Vol. 62, No. 46 / Monday, March 10, 1997 / Proposed Rules 10781

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 petition or on the Department’s

own initiative, new country-pair

markets will be listed in the appropriate

category, and existing country-pair

markets may be transferred between

categories.

(c) 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. An initial description of the

general conditions of carriage will be

included in the Assistant Secretary’s

notice.

(d) Notwithstanding paragraph (c) 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 (c) and

for determining the filing format for the

tariffs required by paragraph (d) is

delegated to the Director of the Office of

International Aviation.

§ 293.11 Required statement.

Each governing rules tariff shall

include the following statements:

(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.’’

§ 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

§ 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 § 293.21.

§ 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 conflicting 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.

§ 293.22 Effectiveness of tariffs on file.

(a) Ninety 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) Ninety 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 § 293.12.

Issued in Washington, DC, on February 27,

1997.

Charles A. Hunnicutt,

Assistant Secretary for Aviation and

International Affairs.

[FR Doc. 97–5361 Filed 3–7–97; 8:45 am]

BILLING CODE 4910–62–P

DEPARTMENT OF HEALTH AND

HUMAN SERVICES

Food and Drug Administration

21 CFR Part 163

[Docket Nos. 86P–0297 and 93P–0091]

White Chocolate; Proposal to Establish

a Standard of Identity

AGENCY: Food and Drug Administration,

HHS.

ACTION: Proposed rule.

SUMMARY: The Food and Drug

Administration (FDA) is proposing to

establish a standard of identity for white

chocolate. The proposed standard will

provide for the use of the term ‘‘white

chocolate’’ as the common or usual

name of products made from cacao fat,

milk solids, nutritive carbohydrate

sweeteners, and other safe and suitable

ingredients, but containing no nonfat

cacao solids. This action responds

principally to citizen petitions

submitted separately by the Hershey

Foods Corp. (Hershey) and by the

Chocolate Manufacturers Association of

the United States of America (CMA).

FDA tentatively concludes that this

action will promote honesty and fair

dealing in the interest of consumers

and, to the extent practicable, will

achieve consistency with existing

international standards of identity for

white chocolate.

DATES: Written comments by May 27,

1997. The agency proposes that any

final rule that may be issued based upon

this proposal become effective January

1, 1998.

ADDRESSES: Submit written comments

to the Dockets Management Branch

(HFA–305), Food and Drug

Administration, 12420 Parklawn Dr.,

rm. 1–23, Rockville, MD 20857.

FOR FURTHER INFORMATION CONTACT:

Geraldine A. June, Center for Food

Safety and Applied Nutrition (HFS–

158), Food and Drug Administration,

200 C St. SW., Washington, DC 20204,

202–205–5099.

SUPPLEMENTARY INFORMATION:

I. Background

In the Federal Register of June 5, 1992

(57 FR 23989), FDA published a