Source: https://openjurist.org/637/f2d/607/montgomery-v-american-airlines-inc
Timestamp: 2017-10-19 02:20:58
Document Index: 24370422

Matched Legal Cases: ['§ 1374', '§ 1373', '§ 223', '§ 223', '§ 223', '§ 223', 'art 223']

637 F2d 607 Montgomery v. American Airlines Inc | OpenJurist
637 F. 2d 607 - Montgomery v. American Airlines Inc
637 F2d 607 Montgomery v. American Airlines Inc
637 F.2d 607
James A. MONTGOMERY, on behalf of himself and all others
No. 78-2608.
See 101 S.Ct. 1368.
Section 404(b) of the Federal Aviation Act, 49 U.S.C. § 1374(b), does not by its terms provide a private right of action for damages. Nevertheless, such a private right of action has been implied under various circumstances. The factors which must be considered in determining whether a private remedy for damages is implicit in a statute have been enunciated by the Supreme Court in Cort v. Ash, 422 U.S. 66, 95 S.Ct. 2080, 45 L.Ed.2d 26 (1975). Four factors are set forth.
Section 403(b)(1) of the Federal Aviation Act, 49 U.S.C. § 1373(b)(1), as amended, specifically permits free or reduced-fare rates under certain circumstances. The relevant statutory language reads as follows:
By regulations promulgated by the CAB in this regard "(a)ny carrier engaged in overseas or foreign air transportation may provide free or reduced rate overseas or foreign air transportation" to, among others, "(d)irectors, officers, and employees and members of their immediate families, of any affiliate of such carrier, the name of which affiliate currently is included in the list of affiliates filed by such carrier pursuant to § 223.7 . . .." 14 C.F.R. § 223.2(b)(1). An "affiliate" is defined in 14 C.F.R. § 223.1 and the definition implicitly includes corporate subsidiaries of air carriers.
It may be noted that section 403(b) authorizes the Board to expand the scope of free and reduced-rate transportation in overseas and foreign air transportation and section 223.2(b)(1) of the Board's Economic Regulations (14 C.F.R. § 223.2(b)(1)) permits carriers to provide free and reduced-rate overseas and foreign air transportation to employees of its affiliates. As indicated above, however, it does not authorize free or reduced-rate interstate transportation for such persons . . ..
A similar question has been the subject of correspondence between the CAB and American. On August 10, 1976, Mr. James W. Greene, Chief of the Tariffs Section of the CAB, wrote to American requesting, among other things, the "basis for including Sky Chefs in the definition of Company in your free and reduced-rate manual." The letter went on to state that "If Sky Chefs qualifies only as an 'affiliate' of American then pass privileges for Sky Chefs personnel must be restricted as required by Part 223.2(b)(1)". In a later letter, Mr. Greene specifically advised American that "employees of subsidiaries can only be given free and reduced-rate overseas and foreign air transportation". Mr. Greene referenced CAB Order 72-3-76 denying an application by World Airways, Inc., requesting permission to provide free or reduced-rate domestic air transportation to employees of World Air Center, a wholly-owned subsidiary of World Airways, Inc.