14834 Federal Register / Vol. 74, No. 61 / Wednesday, April 1, 2009 / Notices 

17For purposes only of waiving the 30-day 

operative delay, the Commission has considered the 

proposed rule’s impact on efficiency, competition, 

and capital formation. See 15 U.S.C. 78c(f). 18 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3 17 CFR 240.19b–4(f)(6). 

with the protection of investors and the 

public interest. NYSE requests that the 

Commission waive the 30-day operative 

delay in order to immediately remove 

an impediment to the efficient 

execution of customer orders and 

transmission of order-related messages 

or information. The Exchange believes 

that it promotes the protection of 

investors and serves the public interest 

to have its systems allow for the 

delivery of customer orders to the point 

of sale and order-related messages or 

information back to the customer 

immediately now that hand-held 

technology is capable of meeting all 

audit trail requirements. The 

Commission notes the Exchange’s 

representation that the proposed 

changes to the Wireless Policy do not 

change the content of what is sent to 

and from the hand-helds, but simply 

amends the procedure for transmitting 

such information. In addition, the 

Commission notes the Exchange’s 

representation with regard to the ability 

of Exchange systems to capture and 

record all information sent to and 

transmitted from the handhelds. For 

these reasons, the Commission believes 

that waiving the 30-day operative 

delay 17 is consistent with the protection 

of investors and the public interest. 

Therefore, the Commission designates 

the proposal operative upon filing. 

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission may summarily abrogate 

such rule change if it appears to the 

Commission that such action is 

necessary or appropriate in the public 

interest, for the protection of investors, 

or otherwise in furtherance of the 

purposes of the Act. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s Internet 

comment form (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an e-mail to rulecomments@sec.gov. Please include File 

Number SR–NYSE–2009–33 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Elizabeth M. Murphy, Secretary, 

Securities and Exchange Commission, 

100 F Street, NE., Washington, DC 

20549–1090. 

All submissions should refer to File 

Number SR–NYSE–2009–33. This file 

number should be included on the 

subject line if e-mail is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

Internet Web site (http://www.sec.gov/ 

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for inspection and copying in 

the Commission’s Public Reference 

Room, 100 F Street, NE., Washington, 

DC 20549, on official business days 

between the hours of 10 a.m. and 3 p.m. 

Copies of such filing also will be 

available for inspection and copying at 

the principal office of the Exchange. All 

comments received will be posted 

without change; the Commission does 

not edit personal identifying 

information from submissions. You 

should submit only information that 

you wish to make publicly available. All 

submissions should refer to File 

Number SR–NYSE–2009–33 and should 

be submitted on or before April 22, 

2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.18

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–7214 Filed 3–31–09; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59627; File No. SR– 

NYSEAmex–2009–02] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by NYSE 

Amex LLC Formally Adopting and 

Codifying Its Wireless Data 

Communications Initiatives 

March 25, 2009. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’) 1 and Rule 19b–4 thereunder,2

notice is hereby given that on March 23, 

2009, NYSE Amex US LLC (the 

‘‘Exchange’’ or ‘‘NYSE Amex’’) filed 

with the Securities and Exchange 

Commission (‘‘Commission’’) the 

proposed rule change as described in 

Items I and II below, which Items have 

been prepared by NYSE Amex. NYSE 

Amex has submitted the proposed rule 

change pursuant to Rule 19b–4(f)(6) 

under the Act,3 which renders the 

proposal effective upon filing with the 

Commission. The Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to formally 

adopt and codify its Wireless Data 

Communications Initiatives (referred to 

herein as the ‘‘Wireless Policy’’). 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

self-regulatory organization included 

statements concerning the purpose of 

and basis for the proposed rule change 

and discussed any comments it received 

on the proposed rule change. The text 

of these statements may be examined at 

the places specified in Item IV below. 

The self-regulatory organization has 

prepared summaries, set forth in 

sections (A), (B) and (C) below, of the 

most significant aspects of such 

statements. 

Federal Register / Vol. 74, No. 61 / Wednesday, April 1, 2009 / Notices 14835 

4On March 3, 2009, the Exchange submitted a 

rule filing to change its name from NYSE Alternext 

US LLC to NYSE Amex LLC (SR–NYSEALTR– 

2009–24). 

5See SR–NYSE–2009–33 (filed on March 20, 

2009). The NYSE filing includes a historical 

discussion of the implementation of the NYSE 

Wireless Policy. 

6See Securities Exchange Act Release No. 58673 

(September 29, 2008), 73 FR 57707 (October 3, 

2008) (SR–NYSE–2008–60 and SR–Amex 2008–62) 

(approving the Merger). 

7 15 U.S.C. 78f. 

8See Securities Exchange Act Release No. 58705 

(October 1, 2008), 73 FR 58995 (October 8, 2008) 

(SR–Amex 2008–63) (approving the Equities 

Relocation). 

9See Securities Exchange Act Release No. 58705 

(October 1, 2008), 73 FR 58995 (October 8, 2008) 

(SR–Amex 2008–63) (approving the Equities 

Relocation); Securities Exchange Act Release No. 

58833 (October 22, 2008), 73 FR 64642 (October 30, 

2008) (SR–NYSE–2008–106) and Securities 

Exchange Act Release No. 58839 (October 23, 2008), 

73 FR 64645 (October 30, 2008) (SR–NYSEALTR– 

2008–03) (together, approving the Bonds 

Relocation); Securities Exchange Act Release No. 

59022 (November 26, 2008), 73 FR 73683 

(December 3, 2008) (SR–NYSEALTR–2008–10) 

(adopting amendments to NYSE Alternext Equities 

Rules to track changes to corresponding NYSE 

Rules); Securities Exchange Act Release No. 59027 

(November 28, 2008), 73 FR 73681 (December 3, 

2008) (SR–NYSEALTR–2008–11) (adopting 

amendments to Rule 62—NYSE Alternext Equities 

to track changes to corresponding NYSE Rule 62). 

10The Exchange’s Wireless Communications Plan 

governing the use of the hand-held on the Equities 

Trading Floor is the same as the NYSE’s, which was 

previously approved by the Commission. See 

Securities Exchange Act Release No. 36156 (August 

25, 1995), 60 FR 45756 (September 1, 1995) (SR– 

NYSE–95–22). The approval order of the initial 

filing and subsequent amendment by the 

Commission to changes to the Wireless Data 

Communications Initiatives has historically been 

referred to by the NYSE as its ‘‘Wireless Policy.’’ 

See also Securities Exchange Act Release No. 39379 

(December 1, 1997), 62 FR 64615 (December 8, 

1997) (SR–NYSE–97–17). 

11Pursuant to NYSE Amex Equities Rule 54, 

appropriately registered and supervised employees 

working in Exchange Regulation-approved booths 

are permitted to process orders sent to a Floor 

broker’s booth premise in the same manner that 

sales traders in an ‘‘upstairs’’ office are allowed to 

process orders. The proposed Wireless Policy 

would not impact this ability because the direct 

transmittal of an order from off the Floor to the 

handheld would constitute a determination to have 

the order represented and executed on the 

Exchange Floor, and not processed in the booth in 

the same manner as an ‘‘upstairs’’ trading desk. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

NYSE Amex LLC (‘‘NYSE Amex’’ or 

‘‘Exchange’’), formerly the American 

Stock Exchange LLC and NYSE 

Alternext US LLC4 proposes to formally 

adopt and codify a Wireless Data 

Communications Initiative (referred to 

herein as the ‘‘Wireless Policy’’). The 

proposed Wireless Policy is identical to 

a proposal separately submitted by the 

New York Stock Exchange LLC 

(‘‘NYSE’’).5

Background 

As described more fully in a related 

rule filing,6 NYSE Euronext acquired 

The Amex Membership Corporation 

(‘‘AMC’’) pursuant to an Agreement and 

Plan of Merger, dated January 17, 2008 

(the ‘‘Merger’’). In connection with the 

Merger, the Exchange’s predecessor, the 

American Stock Exchange LLC 

(‘‘Amex’’), a subsidiary of AMC, became 

a subsidiary of NYSE Euronext called 

NYSE Alternext US LLC, and continues 

to operate as a national securities 

exchange registered under Section 6 of 

the Securities Exchange Act of 1934, as 

amended (the ‘‘Act’’).7 The effective 

date of the Merger was October 1, 2008. 

In connection with the Merger, on 

December 1, 2008, the Exchange 

relocated all equities trading conducted 

on the Exchange legacy trading systems 

and facilities located at 86 Trinity Place, 

New York, New York, to trading systems 

and facilities located at 11 Wall Street, 

New York, New York (the ‘‘Equities 

Relocation’’). The Exchange’s equity 

trading systems and facilities at 11 Wall 

Street (the ‘‘NYSE Amex Trading 

Systems’’) are operated by the NYSE on 

behalf of the Exchange.8

As part of the Equities Relocation, 

NYSE Amex adopted NYSE Rules 1– 

1004, subject to such changes as 

necessary to apply the Rules to the 

Exchange, as the NYSE Amex Equities 

Rules to govern trading on the NYSE 

Amex Trading Systems.9 The NYSE 

Amex Equities Rules, which became 

operative on December 1, 2008, are 

substantially identical to the current 

NYSE Rules 1–1004 and the Exchange 

continues to update the NYSE Amex 

Equities Rules as necessary to conform 

with rule changes to corresponding 

NYSE Rules filed by the NYSE. 

Pursuant to the Equities Relocation, 

the Exchange’s equity trading systems 

and facilities are operated by the NYSE 

on behalf of the Exchange. As a result, 

NYSE Amex Trading Systems currently 

operate pursuant to the NYSE’s policies 

and procedures that govern wireless 

data communication technology of the 

Floor.10 The NYSE formally submitted a 

proposal to the Securities and Exchange 

Commission to modify its policies and 

procedures that govern wireless data 

communications technology on the 

systems NYSE operates on behalf of the 

Exchange. As such, the Exchange 

submits this proposal to formally adopt 

and codify those amended policies and 

procedures. 

Wireless Policy 

The Exchange now proposes to 

formally adopt a Wireless Policy that 

allows wireless communications to be 

sent to and received directly to and 

from: (i) A Floor broker’s booth premise; 

or (ii) wireless technology in the form of 

wireless hand-held data communication 

devices. A wireless hand-held device 

(‘‘hand-held’’) is a tool used by Floor 

brokers as part of an integrated Floor 

order management system to trade and 

to send and receive messages. Such 

messages can consist of orders and 

cancellations and modification of 

orders, as well as electronic text 

messages permitting the communication 

of text or graph information. Pursuant to 

the policy, orders entered from off the 

Floor may be transmitted to a Floor 

broker’s booth or directly to a handheld.11 Likewise, Floor brokers may 

send order-related messages (e.g., 

cancellations and administrative 

messages) and information (e.g., Market 

Look data) back to the customer from 

the booth premise or directly from the 

hand-held. 

Pursuant to the proposed Wireless 

Policy, where: (1) Orders are transmitted 

electronically from a member’s off-Floor 

location to a booth terminal and then 

the order is retransmitted from the 

booth terminal to a member’s handheld; or (2) order-related messages or 

information are transmitted directly to 

the hand-held, bypassing the booth, a 

record must be established and 

maintained which reflects the time the 

order or order-related message or 

information was received by the booth 

terminal or the hand-held. The time of 

receipt will be captured by the Booth or 

the hand-held, depending upon where 

the order was routed. The record of time 

of receipt by a hand-held may be 

established and maintained by such 

device or the Booth and by the server 

which receives a message 

acknowledgment from the hand-held or 

the Booth. The Booth will not be 

required to print records. 

Orders sent from off-Floor to the 

booth or the hand-held are first sent 

through a secured network and routed 

to an Exchange wired database that 

captures and records the orders. 

Likewise, order-related messages or 

information generated from the booth or 

the Floor broker’s hand-held are 

transmitted back to the Exchange-wired 

databases via the secured wireless 

network, where the information is 

captured and recorded, and then sent 

off-Floor to the customer via the 

Exchange’s secured network. In short, 

Exchange wired databases capture and 

record all of the information sent to and 

transmitted from the hand-held. 

14836 Federal Register / Vol. 74, No. 61 / Wednesday, April 1, 2009 / Notices 

12 15 U.S.C. 78f(b)(5). 

13 15 U.S.C. 78s(b)(3)(A). 

14 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6) requires a self-regulatory organization to give 

the Commission written notice of its intent to file 

the proposed rule change at least five business days 

prior to the date of filing of the proposed rule 

change, or such shorter time as designated by the 

Commission. NYSE Amex has satisfied this 

requirement. 

15 17 CFR 240.19b–4(f)(6). 

16 17 CFR 240.19b–4(f)(6). 

17For purposes only of waiving the 30-day 

operative delay, the Commission has considered the 

The Exchange notes that the 

transmission of orders from off-Floor 

locations directly to the hand-helds and 

order-related messages or information 

sent from hand-helds to off-Floor 

locations will not result in an increased 

risk of loss of order information. As is 

the case today, all orders and orderrelated messages or information will be 

recorded in an Exchange database upon 

receipt and prior to delivery to the 

hand-held. In the event that a hand-held 

loses connectivity with the database, all 

incoming and outgoing transactions will 

continue to be captured and stored in 

said database and will be re-transmitted 

to the hand-held once connectivity is 

restored. To further mitigate the risk of 

any loss of data, the Exchange 

infrastructure offers a fully redundant, 

dual-sited back-up database. This same 

infrastructure is currently in place today 

for orders received into NYSE Amex 

systems destined for a booth. Therefore, 

all the information captured by the 

database is the identical information 

that would be captured had the order 

been sent to the Floor booth before 

being sent to the hand-held or the orderrelated message or information had been 

sent from the hand-held to the Floor 

booth. The informational content 

transmitted to and from the hand-held 

remains the same and is not affected by 

the proposed Wireless Policy. 

Furthermore, this change will not 

impact the requirements for the system 

entry of orders and execution reports 

pursuant to NYSE Amex Equities Rule 

123(e) and (f). All orders, order 

messages and report information 

captured by the database will be 

provided electronically in the same 

manner as orders transmitted directly to 

a booth today for audit trail purposes. 

The wireless infrastructure captures the 

same information that was previously 

captured in the Floor booth. The handheld will operate as the functional 

equivalent as the Floor booth premise 

for order receipt and retention purposes. 

Hand-helds will continue to provide 

the requisite information as to price, 

size and time of the order, and 

information if the order is cancelled. 

Audit trail information will be captured 

electronically by the hand-held, thereby 

obviating the need for the transmission 

to the booth terminal which historically 

recorded this information. 

Pursuant to NYSE Amex Equities Rule 

117, any order transmitted directly to 

the hand-held to constitute a written 

order since the requisite information as 

to price, size and time of the order, and 

information if the order is cancelled will 

be captured by the hand-held. 

Furthermore, the information directly 

sent to the hand-held satisfies the 

Exchange’s audit trail requirements and 

all other Exchange reporting and recordkeeping requirements. 

The Exchange believes that this 

proposal will facilitate an efficient and 

expeditious mechanism for order 

execution. The Exchange further 

believes that its customers and market 

participants will benefit from faster 

order execution, enhanced market 

quality and a reduction in latency of 

order executions as a result of this 

proposal. 

2. Statutory Basis 

The basis under the Act for the 

proposed rule change is the requirement 

under Section 6(b)(5),12 which requires 

that an exchange have rules that are 

designed to foster cooperation and 

coordination with persons engaged in 

regulating, clearing, settling, processing 

information with respect to, and 

facilitating transactions in securities, to 

remove impediments to and perfect the 

mechanism of a free and open market 

and a national market system and, in 

general, to protect investors and the 

public interest. The proposed rule 

change is consistent with these 

objectives in that it enables the 

Exchange to further facilitate 

transactions on the Exchange Trading 

Floor by allowing for the direct 

transmission of orders and order-related 

messages and information to the handheld for representation and execution. 

Likewise, the ability to transmit orderrelated messages or information from 

the hand-held to off-Floor customers 

provides the customer with speed of 

execution and greater market 

transparency for off-Floor participants. 

Overall, the Exchange believes that its 

Wireless Policy provides for a faster, 

more efficient method of order 

execution. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will result in 

any burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants or Others 

No written comments were solicited 

or received with respect to the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing proposed rule 

change does not: (i) Significantly affect 

the protection of investors or the public 

interest; (ii) impose any significant 

burden on competition; and (iii) become 

operative for 30 days from the date on 

which it was filed, or such shorter time 

as the Commission may designate, it has 

become effective pursuant to Section 

19(b)(3)(A) of the Act 13 and Rule 19b– 

4(f)(6) thereunder.14

A proposed rule change filed 

pursuant to Rule 19b–4(f)(6) under the 

Act 15 normally does not become 

operative for 30 days after the date of its 

filing. However, Rule 19b–4(f)(6) 16

permits the Commission to designate a 

shorter time if such action is consistent 

with the protection of investors and the 

public interest. NYSE Amex requests 

that the Commission waive the 30-day 

operative delay in order to immediately 

remove an impediment to the efficient 

execution of customer orders and 

transmission of order-related messages 

or information. The Exchange represents 

that the proposed changes merely seek 

to adopt the identical provisions of the 

NYSE Wireless Policy. The Exchange 

believes that it promotes the protection 

of investors and serves the public 

interest to have its systems allow for the 

delivery of customer orders to the point 

of sale and order-related messages or 

information back to the customer 

immediately now that hand-held 

technology is capable of meeting all 

audit trail requirements. The 

Commission notes the Exchange’s 

representation that the proposed 

changes to the Wireless Policy do not 

change the content of what is sent to 

and from the hand-helds, but simply 

amends the procedure for transmitting 

such information. In addition, the 

Commission notes the Exchange’s 

representation with regard to the ability 

of Exchange systems to capture and 

record all information sent to and 

transmitted from the handhelds. For 

these reasons, the Commission believes 

that waiving the 30-day operative 

delay 17 is consistent with the protection 

Federal Register / Vol. 74, No. 61 / Wednesday, April 1, 2009 / Notices 14837 

proposed rule’s impact on efficiency, competition, 

and capital formation. See 15 U.S.C. 78c(f). 18 17 CFR 200.30–3(a)(12). 

1Convention for the Unification of Certain Rules 

for International Carriage by Air, adopted on May 

28, 1999 at Montreal. 

2The quoted language might absolve a carrier 

from liability for a fragile item that is damaged 

during transport. It would not absolve the carrier 

from liability for the item’s loss or theft. 

of investors and the public interest. 

Therefore, the Commission designates 

the proposal operative upon filing. 

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission may summarily abrogate 

such rule change if it appears to the 

Commission that such action is 

necessary or appropriate in the public 

interest, for the protection of investors, 

or otherwise in furtherance of the 

purposes of the Act. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s Internet 

comment form (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an e-mail to rulecomments@sec.gov. Please include File 

Number SR–NYSEAmex–2009–02 on 

the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Elizabeth M. Murphy, Secretary, 

Securities and Exchange Commission, 

100 F Street, NE., Washington, DC 

20549–1090. 

All submissions should refer to File 

Number SR–NYSEAmex–2009–02. This 

file number should be included on the 

subject line if e-mail is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

Internet Web site (http://www.sec.gov/ 

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for inspection and copying in 

the Commission’s Public Reference 

Room, 100 F Street, NE., Washington, 

DC 20549, on official business days 

between the hours of 10 a.m. and 3 p.m. 

Copies of such filing also will be 

available for inspection and copying at 

the principal office of the Exchange. All 

comments received will be posted 

without change; the Commission does 

not edit personal identifying 

information from submissions. You 

should submit only information that 

you wish to make publicly available. All 

submissions should refer to File 

Number SR–NYSEAmex–2009–02 and 

should be submitted on or before April 

22, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.18

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–7217 Filed 3–31–09; 8:45 am] 

BILLING CODE 

SMALL BUSINESS ADMINISTRATION 

Interest Rates 

The Small Business Administration 

publishes an interest rate called the 

optional ‘‘peg’’ rate (13 CFR 120.214) on 

a quarterly basis. This rate is a weighted 

average cost of money to the 

government for maturities similar to the 

average SBA direct loan. This rate may 

be used as a base rate for guaranteed 

fluctuating interest rate SBA loans. This 

rate will be 3.375 (33⁄8) percent for the 

April–June quarter of FY 2009. 

Pursuant to 13 CFR 120.921(b), the 

maximum legal interest rate for any 

third party lender’s commercial loan 

which funds any portion of the cost of 

a 504 project (see 13 CFR 120.801) shall 

be 6% over the New York Prime rate or, 

if that exceeds the maximum interest 

rate permitted by the constitution or 

laws of a given State, the maximum 

interest rate will be the rate permitted 

by the constitution or laws of the given 

State. 

Grady B. Hedgespeth, 

Director, Office of Financial Assistance. 

[FR Doc. E9–7315 Filed 3–31–09; 8:45 am] 

BILLING CODE 8025–01–P 

DEPARTMENT OF TRANSPORTATION 

Office of the Secretary 

Providing Guidance on Airline 

Baggage Liability and Responsibilities 

of Code Share Partners Involving 

International Itineraries 

AGENCY: Office of the Secretary, 

Department of Transportation. 

ACTION: Notice. 

SUMMARY: The Department is publishing 

the following notice on Airline Baggage 

Liability and Responsibilities of Code 

Share Partners Involving International 

Itineraries. 

FOR FURTHER INFORMATION CONTACT: 

Nicholas Lowry, Attorney, Office of 

Aviation Enforcement and Proceedings 

(C–70), 1200 New Jersey Ave., 

SE.,Washington, DC 20590, (202) 366– 

9349. 

This notice is intended to give 

guidance to U.S. and foreign air carriers 

on two tariff matters: First, tariffs 

relating to liability for lost, stolen, 

delayed or damaged baggage carried on 

international itineraries; and second, 

tariffs that appear to assign 

responsibility, in code-share service, to 

the operating carrier rather than the 

selling carrier (i.e., the carrier shown on 

the ticket). 

We have become aware of tariff 

provisions filed by several carriers that 

attempt, with respect to checked 

baggage, to exclude certain items, 

generally high-cost or fragile items such 

as electronics, cameras, jewelry or 

antiques, from liability for damage, 

delay, loss or theft. A typical provision 

found in carrier tariffs and disclosed on 

carrier Web sites states that the carrier 

does not assume liability for loss, 

damage, or delay of ‘‘certain specific 

items, including: * * * antiques, 

documents, electronic equipment, film, 

jewelry, keys, manuscripts, medication, 

money, paintings, photographs * * *.’’ 

Such exclusions, while not prohibited 

in domestic contracts of carriage, are in 

contravention of Article 17 of the 

Montreal Convention (Convention),1 as 

revised on May 28, 1999. Article 17 

provides that carriers are liable for 

damaged or lost baggage if the 

‘‘destruction, loss or damage’’ occurred 

while the checked baggage was within 

the custody of the carrier, except to the 

extent that the damage ‘‘resulted from 

the inherent defect, quality or vice of 

the baggage.’’ 2 Article 19 provides that 

a carrier is liable for damage caused by 

delay in the carriage of baggage, except 

to the extent that it proves that it took 

all reasonable measures to prevent the 

damage or that it was impossible to take 

such measures. Although carriers may 

wish to have tariff terms that prohibit 

passengers from including certain items 

in checked baggage, once a carrier 

accepts checked baggage, whatever is 

contained in the checked baggage is 

protected, subject to the terms of the