  December 27, 2019

      Title 14
      Aeronautics and Space
      Parts 200 to 1199
      Revised as of January 1, 2020
      Containing a codification of documents of general applicability and future effect
      As of January 1, 2020

        Published by the Office of the Federal Register National Archives and Records Administration as a Special Edition of the Federal Register

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      Table of Contents
      Page

        Explanation
        v

        Title 14:

          Chapter II—Office of the Secretary, Department of Transportation (Aviation Proceedings)
          3

          Chapter III—Commercial Space Transportation, Federal Aviation Administration, Department of Transportation
          467

        Finding Aids:
        Table of CFR Titles and Chapters
        899
        Alphabetical List of Agencies Appearing in the CFR
        919
        List of CFR Sections Affected
        929

      Cite this Code: CFR

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

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

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

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

        LEGAL STATUS
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        HOW TO USE THE CODE OF FEDERAL REGULATIONS
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        EFFECTIVE AND EXPIRATION DATES
        Each volume of the Code contains amendments published in the Federal Register since the last revision of that volume of the Code. Source citations for the regulations are referred to by volume number and page number of the Federal Register and date of publication. Publication dates and effective dates are usually not the same and care must be exercised by the user in determining the actual effective date. In instances where the effective date is beyond the cut-off date for the Code a note has been inserted to reflect the future effective date. In those instances where a regulation published in the Federal Register states a date certain for expiration, an appropriate note will be inserted following the text.

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        “[RESERVED]” TERMINOLOGY
        The term “[Reserved]” is used as a place holder within the Code of Federal Regulations. An agency may add regulatory information at a “[Reserved]” location at any time. Occasionally “[Reserved]” is used editorially to indicate that a portion of the CFR was left vacant and not dropped in error.

        INCORPORATION BY REFERENCE

          What is incorporation by reference? Incorporation by reference was established by statute and allows Federal agencies to meet the requirement to publish regulations in the Federal Register by referring to materials already published elsewhere. For an incorporation to be valid, the Director of the Federal Register must approve it. The legal effect of incorporation by reference is that the material is treated as if it were published in full in the Federal Register (5 U.S.C. 552(a)). This material, like any other properly issued regulation, has the force of law.

          What is a proper incorporation by reference? The Director of the Federal Register will approve an incorporation by reference only when the requirements of 1 CFR part 51 are met. Some of the elements on which approval is based are:
        (a) The incorporation will substantially reduce the volume of material published in the Federal Register.
        (b) The matter incorporated is in fact available to the extent necessary to afford fairness and uniformity in the administrative process.
        (c) The incorporating document is drafted and submitted for publication in accordance with 1 CFR part 51.

          What if the material incorporated by reference cannot be found? If you have any problem locating or obtaining a copy of material listed as an approved incorporation by reference, please contact the agency that issued the regulation containing that incorporation. If, after contacting the agency, you find the material is not available, please notify the Director of the Federal Register, National Archives and Records Administration, 8601 Adelphi Road, College Park, MD 20740-6001, or call 202-741-6010.

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        ELECTRONIC SERVICES

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        The e-CFR is a regularly updated, unofficial editorial compilation of CFR material and Federal Register amendments, produced by the Office of the Federal Register and the Government Publishing Office. It is available at www.ecfr.gov.

          Oliver A. Potts,

          Director,

          Office of the Federal Register

          January 1, 2020.

      THIS TITLE
      Title 14—Aeronautics and Space is composed of five volumes. The parts in these volumes are arranged in the following order: Parts 1-59, 60-109, 110-199, 200-1199, and part 1200-End. The first three volumes containing parts 1-199 are comprised of chapter I—Federal Aviation Administration, Department of Transportation (DOT). The fourth volume containing parts 200-1199 is comprised of chapter II—Office of the Secretary, DOT (Aviation Proceedings) and chapter III—Commercial Space Transportation, Federal Aviation Administration, DOT. The fifth volume containing part 1200-End is comprised of chapter V—National Aeronautics and Space Administration and chapter VI—Air Transportation System Stabilization. The contents of these volumes represent all current regulations codified under this title of the CFR as of January 1, 2020.
      For this volume, Susannah C. Hurley was Chief Editor. The Code of Federal Regulations publication program is under the direction of John Hyrum Martinez, assisted by Stephen J. Frattini.

    14 CFR Ch. II (1-1-20 Edition)
    Office of the Secretary, DOT

        Title 14—Aeronautics and Space
        (This book contains parts 200 to 1199)

        Part

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

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

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

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

          Editorial Note:
          Nomenclature changes to chapter II appear by Doc. No. DOT-OST-2008-0173, 73 FR 33327, June 12, 2008.

          SUBCHAPTER A—ECONOMIC REGULATIONS

        Part
        Page

          200
          Definitions and instructions
          7
          201
          Air carrier authority under subtitle VII of title 49 of the United States code
          7
          203
          Waiver of Warsaw Convention liability limits and defenses
          9
          204
          Data to support fitness determinations
          11
          205
          Aircraft accident liability insurance
          17
          206
          Certificates of public convenience and necessity: Special authorizations and exemptions
          21
          211
          Applications for permits to foreign air carriers
          22
          212
          Charter rules for U.S. and foreign direct air carriers
          28
          213
          Terms, conditions and limitations of foreign air carrier permits
          37
          214
          Terms, conditions, and limitations of foreign air carrier permits authorizing charter transportation only
          40
          215
          Use and change of names of air carriers, foreign air carriers and commuter air carriers
          40
          216
          Commingling of blind sector traffic by foreign air carriers
          41
          217
          Reporting traffic statistics by foreign air carriers in civilian scheduled, charter, and nonscheduled services
          44
          218
          Lease by foreign air carrier or other foreign person of aircraft with crew
          52

          221
          Tariffs
          54
          222
          Intermodal cargo services by foreign air carriers
          82
          223
          Free and reduced-rate transportation
          83
          234
          Airline service quality performance reports
          87
          235
          Reports by air carriers on incidents involving animals during air transport
          94
          240
          Inspection of accounts and property
          95
          241
          Uniform system of accounts and reports for large certificated air carriers
          96
          243
          Passenger manifest information
          179
          244
          Reporting tarmac delay data
          182
          247
          Direct airport-to-airport mileage records
          184
          248
          Submission of audit reports
          184
          249
          Preservation of air carrier records
          185
          250
          Oversales
          191
          251
          Carriage of musical instruments
          197
          252
          Smoking aboard aircraft
          198
          253
          Notice of terms of contract of carriage
          200
          254
          Domestic baggage liability
          202
          255
          [Reserved]
          256
          Electronic airline information systems
          203
          257
          Disclosure of code-sharing arrangements and long-term wet leases
          204
          258
          Disclosure of change-of-gauge services
          207
          259
          Enhanced protections for airline passengers
          208
          271
          Guidelines for subsidizing air carriers providing essential air transportation
          212
          272
          [Reserved]
          291
          Cargo operations in interstate air transportation
          215
          292
          International cargo transportation
          224
          293
          International passenger transportation
          226
          294
          Canadian charter air taxi operators
          228
          295
          Air charter brokers
          235
          296
          Indirect air transportation of property
          239
          297
          Foreign air freight forwarders and foreign cooperative shippers associations
          240
          298
          Exemptions for air taxi and commuter air carrier operations
          244

          SUBCHAPTER B—PROCEDURAL REGULATIONS

          300
          Rules of conduct in DOT proceedings under this chapter
          263
          302
          Rules of practice in proceedings
          268
          303
          Review of air carrier agreements
          324
          305
          Rules of practice in informal nonpublic investigations
          329

          313
          Implementation of the Energy Policy and Conservation Act
          331
          314
          [Reserved]
          323
          Terminations, suspensions, and reductions of service
          334
          325
          Essential air service procedures
          339
          330
          [Reserved]
          331
          [Reserved]

          SUBCHAPTER C [RESERVED]

          SUBCHAPTER D—SPECIAL REGULATIONS

          372
          Overseas military personnel charters
          343
          374
          Implementation of the Consumer Credit Protection Act with respect to air carriers and foreign air carriers
          351
          374a
          Extension of credit by airlines to Federal political candidates
          351
          375
          Navigation of foreign civil aircraft within the United States
          355
          377
          Continuance of expired authorizations by operation of law pending final determination of applications for renewal thereof
          367
          380
          Public charters
          369
          381
          Special event tours
          387
          382
          Nondiscrimination on the basis of disability in air travel
          388
          383
          Civil penalties
          431

          SUBCHAPTER E—ORGANIZATION

          385
          Staff assignments and review of action under assignments
          433
          389
          Fees and charges for special services
          446

          SUBCHAPTER F—POLICY STATEMENTS

          398
          Guidelines for individual determinations of basic essential air service
          451
          399
          Statements of general policy
          453

        SUBCHAPTER A—ECONOMIC REGULATIONS

          Pt. 200
          PART 200—DEFINITIONS AND INSTRUCTIONS

            Sec.
            200.1
            Terms and definitions.
            200.2
            Instructions.

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

            § 200.1
            Terms and definitions.
            For purposes of this chapter—
            (a) Unless otherwise specifically stated, words and phrases other than those listed in this section have the meaning defined in 49 U.S.C. Subtitle VII.
            (b) Department or DOT means the Department of Transportation.
            (c) Predecessor means the Civil Aeronautics Board (CAB).
            (d) Order refers to the rules, regulations, and orders prescribed by the Department pursuant to the 49 U.S.C. Subtitle VII or its orders that are, by law, still in effect.
            (e) FAA means the Federal Aviation Administration, U.S. Department of Transportation.
            (f) OST-R means the Office of the Assistant Secretary for Research and Technology, U.S. Department of Transportation.
            (g) Secretary means the Secretary of Transportation, U.S. Department of Transportation.
            [Doc. No. DOT-OST-2014-0140, 84 FR 15924, Apr. 16, 2019]

            § 200.2
            Instructions.
            The regulations of the Department may be cited by section numbers. For example, this regulation may be cited as “§ 200.2 of the Aviation Economic Regulations.” The sections contained in the Rules of Practice may also be cited by appropriate rule numbers. (See § 302.1(c) of this chapter.) For example, 14 CFR 302.10 may be cited as “rule 10 of the Rules of Practice.”
            [Doc. No. 47939, 57 FR 40100, Sept. 2, 1992, as amended at 65 FR 6456, Feb. 9, 2000]

          Pt. 201
          PART 201—AIR CARRIER AUTHORITY UNDER SUBTITLE VII OF TITLE 49 OF THE UNITED STATES CODE

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

              Subpart B—Certificate Terms, Conditions, and Limitations
              201.6
              Applicability.
              201.7
              General certificate conditions.

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

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

            Subpart A—Application Procedures

              § 201.1
              Formal requirements.
              (a) Applications for certificates of public convenience and necessity under section 41102 of 49 U.S.C. Subtitle VII and for interstate all-cargo air transportation certificates under section 41103 of 49 U.S.C. Subtitle VII shall meet the requirements set forth in part 302 of this chapter as to general requirements, execution, number of copies, service, and formal specifications of papers.

              (b) Any person desiring to provide air transportation as a commuter air carrier must comply with the provisions of part 298 of this chapter and submit data to support a fitness determination in accordance with part 204 of this chapter. An executed original plus two (2) true copies of the fitness data shall be filed with Docket Operations Office, U.S. Department of Transportation, Room W12-140, 1200 New Jersey Avenue SE, Washington, DC 20590-0001. Requests for confidential treatment of documents should be filed in accordance with the requirements of part 302 of this chapter.
              (Approved by the Office of Management and Budget under control number 2106-0023)
              [Doc. No. 47582, 57 FR 38765, Aug. 27, 1992, as amended at 60 FR 43523, Aug. 22, 1995; 64 FR 3212, Jan. 21, 1999; 70 FR 25767, May 16, 2005; Doc. No. DOT-OST-2014-0140, 84 FR 15924, Apr. 16, 2019]

              § 201.2
              Amendments.
              If, after receipt of any application, the Department asks the applicant to supply additional information, such information shall be furnished in the form of a supplement to the original application.

              § 201.3
              Incorporation by reference.
              Incorporation by reference shall be avoided. However, where two or more applications are filed by a single carrier, lengthy exhibits or other documents attached to one may be incorporated in the others by reference if that procedure will substantially reduce the cost to the applicant.

              § 201.4
              General provisions concerning contents.
              (a) All pages of an application shall be consecutively numbered, and the application shall clearly describe and identify each exhibit by a separate number or symbol. All exhibits shall be deemed to constitute a part of the application to which they are attached.
              (b) All amendments to applications shall be consecutively numbered and shall comply with the requirements of this part.
              (c) Requests for authority to engage in interstate air transportation shall not be included in the same application with requests for authority to engage in foreign air transportation. Similarly, requests for authority to engage in scheduled air transportation under section 41102 of 49 U.S.C. Subtitle VII shall not be included in the same application with requests for authority to engage in charter air transportation under section 41102 of 49 U.S.C. Subtitle VII or with requests for authority to engage in interstate all-cargo air transportation under section 41103 of 49 U.S.C. Subtitle VII.
              (d) Each application shall specify the type or types of service (passengers, property or mail) to be rendered and whether such services are to be rendered on scheduled or charter operations.
              (e) Each application for foreign scheduled air transportation shall include an adequate identification of each route for which a certificate is desired, including the terminal and intermediate points to be included in the certificate for which application is made.
              (f) Each application shall give full and adequate information with respect to each of the relevant filing requirements set forth in part 204 of this chapter. In addition, the application may contain such other information and data as the applicant shall deem necessary or appropriate in order to acquaint the Department fully with the particular circumstances of its case; however, the statements contained in an application shall be restricted to significant and relevant facts.
              (Approved by the Office of Management and Budget under control number 2106-0023)
              [Doc. No. 47582, 57 FR 38765, Aug. 27, 1992, as amended at 60 FR 43523, Aug. 22, 1995; Doc. No. DOT-OST-2014-0140, 84 FR 15924, Apr. 16, 2019]

              § 201.5
              Advertising and sales by applicants.
              (a) An applicant for new or amended certificate or commuter air carrier authority shall not:
              (1) Advertise, list schedules, or accept reservations for the air transportation covered by its application until the application has been approved by the Department; or
              (2) Accept payment or issue tickets for the air transportation covered by its application until the authority or amended authority has become effective or the Department issues a notice authorizing sales.

              (b) An applicant for new or amended certificate or commuter air carrier authority may not advertise or publish schedule listings for the air transportation covered by its application after the application has been approved by the Department (but before all authority issued by DOT, including the FAA, becomes effective) unless such advertising or schedule listings prominently state: “This service is subject to receipt of government operating authority.”

            Subpart B—Certificate Terms, Conditions, and Limitations

              § 201.6
              Applicability.
              Unless the certificate or the order authorizing its issuance shall otherwise provide, such terms, conditions and limitations as are set forth in this part, and as may from time to time be prescribed by the Department, shall apply to the exercise of the privileges granted by each certificate issued under section 41102 or section 41103 of 49 U.S.C. Subtitle VII.
              [Doc. No. 47582, 57 FR 38765, Aug. 27, 1992, as amended at 60 FR 43523, Aug. 22, 1995; Doc. No. DOT-OST-2014-0140, 84 FR 15924, Apr. 16, 2019]

              § 201.7
              General certificate conditions.
              (a) It shall be a condition upon the holding of a certificate that any intentional failure by the holder to comply with any provision of Statute or any order, rule, or regulation issued thereunder or any term, condition, or limitation of such certificate shall be a failure to comply with the terms, conditions, and limitations of the certificate within the meaning of section 41110 of 49 U.S.C. Subtitle VII even though the failure to comply occurred outside the territorial limits of the United States, except to the extent that such failure shall be necessitated by an obligation, duty, or liability imposed by a foreign country.
              (b) Failure to file the reports required by part 241, 291, or 298 of this chapter shall be sufficient grounds to revoke a certificate.
              (c) The authority to transport U.S. mail under a certificate is permissive, unless the Department, by order or rule, directs a carrier or class of carriers to transport mail on demand of the U.S. Postal Service; such certificate confers no right to receive subsidy, for the carriage of mail or otherwise.
              (d) An all-cargo air transportation certificate shall confer no right to carry passengers, other than cargo attendants accompanying a shipment, or to engage in any air transportation outside the geographical scope of interstate cargo transportation. Such certificate shall not, however, restrict the right of the holder to provide scheduled, charter, contract, or other transportation of cargo, by air, within that geographical scope.
              (e) It shall be a condition upon the holding of a certificate that the holder have and maintain in effect and on file with the Department a signed counterpart of Agreement 18900 (OST Form 4523), and a tariff (for those carriers otherwise generally required to file tariffs) that includes its terms, and that the holder comply with all other requirements of part 203. OST Form 4523 may be obtained from the Office of International Aviation, Special Authorities Division.
              [Doc. No. 47582, 57 FR 38765, Aug. 27, 1992, as amended at 60 FR 43523, Aug. 22, 1995; Doc. No. DOT-OST-2014-0140, 84 FR 15924, Apr. 16, 2019]

          Pt. 203
          PART 203—WAIVER OF WARSAW CONVENTION LIABILITY LIMITS AND DEFENSES

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

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

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

            § 203.1
            Scope.

            This part requires that certain U.S. and foreign direct air carriers waive the passenger liability limits and certain carrier defenses in the Warsaw Convention in accordance with the provisions of Agreement 18900, dated May 13, 1966, and provides that acceptance of authority for, or operations by the carrier in, air transportation shall be considered to act as such a waiver by that carrier.
            [ER-1324, 48 FR 8044, Feb. 25, 1983, as amended by Doc. No. 47939, 57 FR 40100, Sept. 2, 1992]

            § 203.2
            Applicability.
            This part applies to all direct U.S. and foreign direct air carriers, except for air taxi operators as defined in part 298 of this chapter that (a) are not commuter air carriers, (b) do not participate in interline agreements, and (c) do not engage in foreign air transportation.

            § 203.3
            Filing requirements for adherence to Montreal Convention.
            All direct U.S. and foreign air carriers shall have and maintain in effect and on file in the Department's Docket Operations Office (DOT-OST-1995-236) on OST Form 4523 a signed counterpart to Agreement 18900, an agreement relating to liability limitations of the Warsaw Convention and Hague Protocol, (the Montreal Agreement), dated May 13, 1966, and/or a signed counterpart of any amendment or replacement to such Agreement that may be approved by the Department and to which the air carrier or foreign air carrier becomes a party. U.S. air taxi operators registering under part 298 of this chapter and Canadian charter air taxi operators registering under part 294 of this chapter may comply with this requirement by filing completed OST Forms 4507 and 4523, respectively, in accordance with the provisions of those parts.
            [Doc. No. DOT-OST-2014-0140, 84 FR 15924, Apr. 16, 2019]

            § 203.4
            Montreal Agreement as part of airline-passenger contract and conditions of carriage.
            (a) As required by the Montreal Agreement, carriers that are otherwise generally required to file tariffs shall file with the Department's Pricing and Multilateral Affairs Division a tariff that includes the provisions of the counterpart to Agreement 18900.
            (b) As further required by that Agreement, each participating carrier shall include the Agreement's terms as part of its conditions of carriage. The participating carrier shall give each of its passengers the notice required by the Montreal Agreement as provided in § 221.105 of this chapter.
            (c) Participation in the Montreal Agreement, whether by signing the Agreement, filing a signed counterpart to it under § 203.3, or by operation of law under § 203.5, shall constitute a special agreement between the carrier and its passengers as a condition of carriage that a liability limit of not less than $75,000 (U.S.) shall apply under Article 22(1) of the Warsaw Convention for passenger injury and death. Such participation also constitutes a waiver of the defense under Article 20(1) of the Convention that the carrier was not negligent.
            (The reporting provisions contained in paragraph (a) were approved by the Office of Management and Budget under control number 3024-0064.)
            [ER-1324, 48 FR 8044, Feb. 25, 1983, as amended by ER-1338, 48 FR 31013, July 6, 1983; Doc. No. 47939, 57 FR 40100, Sept. 2, 1992; Doc. No. DOT-OST-2014-0140, 84 FR 15924, Apr. 16, 2019]

            § 203.5
            Compliance as condition on operations in air transportation.
            It shall be a condition on the authority of all direct U.S. and foreign carriers to operate in air transportation that they have and maintain in effect and on file with the Department a signed counterpart of Agreement 18900, and a tariff (for those carriers otherwise generally required to file tariffs) that includes its provisions, as required by this subpart. Notwithstanding any failure to file that counterpart and such tariff, any such air carrier or foreign air carrier issued license authority (including exemptions) by the Department or operating in air transportation shall be deemed to have agreed to the provisions of Agreement 18900 as fully as if that air carrier or foreign air carrier had in fact filed a properly executed counterpart to that Agreement and tariff.

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

          Pt. 204
          PART 204—DATA TO SUPPORT FITNESS DETERMINATIONS

              Subpart A—General Provisions
              Sec.
              204.1
              Purpose.
              204.2
              Definitions.

              Subpart B—Filing Requirements
              204.3
              Applicants for new certificate or commuter air carrier authority.
              204.4
              [Reserved]
              204.5
              Certificated and commuter air carriers undergoing or proposing to undergo substantial change in operations, ownership, or management.
              204.6
              Certificated and commuter air carriers proposing a change in operations, ownership, or management which is not substantial.
              204.7
              Revocation for dormancy.

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

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

            Subpart A—General Provisions

              § 204.1
              Purpose.
              This part sets forth the fitness data that must be submitted by applicants for certificate authority, by applicants for authority to provide service as a commuter air carrier to an eligible place, by carriers proposing to provide essential air transportation, and by certificated air carriers and commuter air carriers proposing a substantial change in operations, ownership, or management. This part also contains the procedures and filing requirements applicable to carriers that hold dormant authority.
              [72 FR 20036, Apr. 23, 2007]

              § 204.2
              Definitions.
              As used in this part:
              (a) All-cargo air carrier or section 41103 carrier means an air carrier holding an all-cargo air transportation certificate issued under section 41103 of 49 U.S.C. Subtitle VII authorizing the transportation by aircraft in interstate air transportation of only property or only mail, or both.
              (b) Certificate authority means authority to provide air transportation granted by the Secretary of Transportation in the form of a certificate of public convenience and necessity under 49 U.S.C. 41102 or an all-cargo air transportation certificate to perform all-cargo air transportation under 49 U.S.C. 41103. Certificated carriers are those that hold certificate authority, including those carriers operating by law under the regulatory provisions under the Department's predecessor.
              (c) Citizen of the United States means:
              (1) An individual who is a citizen of the United States;
              (2) A partnership each of whose partners is an individual who is a citizen of the United States; or
              (3) A corporation or association organized under the laws of the United States or a State, the District of Columbia, or a territory or possession of the United States, of which the president and at least two-thirds of the board of directors and other managing officers are citizens of the United States, which is under the actual control of citizens of the United States, and in which at least 75 percent of the voting interest is owned or controlled by persons that are citizens of the United States.
              (d) Commuter air carrier means an air carrier holding or seeking authority under part 298 of this Chapter that carries passengers on at least five round trips per week on at least one route between two or more points according to its published flight schedules that specify the times, days of the week, and places between which those flights are performed.
              (e) Eligible place means a place in the United States that meets the specified criteria outlined in 49 U.S.C. Chapter 417.
              (f) Essential air service is that air transportation which the Department has found to be essential under Subchapter II of Chapter 417 of 49 U.S.C. Subtitle VII.
              (g) Fit means fit, willing, and able to perform the air transportation in question properly and to conform to the provisions of 49 U.S.C. Subtitle VII and the rules, regulations and requirements issued under 49 U.S.C. Subtitle VII.
              (h) Interstate air transportation means the transportation of passengers or property by aircraft as a common carrier for compensation, or the transportation of mail by aircraft—

              (1) Between a place in—
              (i) A State, territory, or possession of the United States and a place in the District of Columbia or another State, territory, or possession of the United States;
              (ii) Hawaii and another place in Hawaii through the airspace over a place outside Hawaii;
              (iii) The District of Columbia and another place in the District of Columbia; or
              (iv) A territory or possession of the United States and another place in the same territory or possession; and
              (2) When any part of the transportation is by aircraft.
              (i) Key personnel include the directors, president, chief executive officer, chief operating officer, all vice presidents, the directors or supervisors of operations, maintenance, and finance, and the chief pilot of the applicant or air carrier, as well as any part-time or full-time advisors or consultants to the management of the applicant or air carrier.
              (j) Normalized operations are those which are relatively free of start-up costs and temporary barriers to full-scale operations posed by the carrier's limited experience.
              (k) Relevant corporations are the applicant or air carrier, any subsidiary thereof, any predecessor thereof (i.e., any air carrier in which any directors, principal officers or persons having a substantial interest have or once had a substantial interest), and any company (including a sole proprietorship or partnership) which has a significant financial or managerial influence on the applicant or air carrier. The latter includes:
              (1) Any company (including a sole proprietorship or partnership) holding more than 50 percent of the outstanding voting stock of the applicant or air carrier; and
              (2) Any company (including a sole proprietorship or partnership) holding between 20 percent and 50 percent of the outstanding voting stock of the applicant or air carrier and which has significant influence over the applicant or air carrier as indicated, for example, by 25 percent representation on the board of directors, participation in policy-making processes, substantial inter-company transactions, or managerial personnel with common responsibilities in both companies.
              (l) Substantial change in operations, ownership, or management includes, but is not limited to, the following events:
              (1) Changes in operations from charter to scheduled service, cargo to passenger service, short-haul to long-haul service, or (for a certificated air carrier) small-aircraft to large-aircraft operations;
              (2) The filing of a petition for reorganization or a plan of reorganization under Chapter 11 of the federal bankruptcy laws;
              (3) The acquisition by a new shareholder or the accumulation by an existing shareholder of beneficial control of 10 percent or more of the outstanding voting stock in the corporation; and
              (4) A change in the president, chief executive officer or chief operating officer, and/or a change in at least half of the other key personnel within any 12-month period or since its latest fitness review, whichever is the more recent period.
              (m) Substantial interest means beneficial control of 10 percent or more of the outstanding voting stock.
              [Doc. No. 47582, 57 FR 38766, Aug. 27, 1992, as amended at 60 FR 43523, Aug. 22, 1995; 64 FR 12085, Mar. 11, 1999; 72 FR 20036, Apr. 23, 2007; Doc. No. DOT-OST-2014-0140, 84 FR 15924, Apr. 16, 2019]

            Subpart B—Filing Requirements

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

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

                Note:
                If the applicant intends to use as evidence data it has previously filed pursuant to part 241 reporting requirements and those data contain errors, the applicant must first file corrected reports in accordance with § 241.22(g).

              (a) The name, address, and telephone number of the applicant.
              (b) The form of the applicant's organization.
              (c) The State law(s) under which the applicant is organized.
              (d) If the applicant is a corporation, a statement provided by the Office of the Secretary of State, or other agent of the State in which the applicant is incorporated, certifying that the applicant corporation is in good standing.
              (e) A sworn affidavit stating that the applicant is a citizen of the United States.
              (f) The identity of the key personnel who would be employed by the applicant, including:
              (1) Their names and addresses;
              (2) The experience, expertise, and responsibilities of each;
              (3) The number of shares of the applicant's voting stock held by each and the percentage of the total number of such shares issued and outstanding, and the citizenship and principal business of any person for whose account, if other than the holder, such interest is held;
              (4) The citizenship of each; and
              (5) A description of the officerships, directorships, shares of stock (if 10 percent or more of total voting stock outstanding), and other interests each holds or has held in any air carrier, foreign air carrier, common carrier, person substantially engaged in the business of aeronautics or persons whose principal business (in purpose or fact) is the holding of stock in or control of any air carrier, common carrier or person substantially engaged in the business of aeronautics.
              (g) A list of all persons having a substantial interest in the applicant. Such list shall include:
              (1) Each person's name, address and citizenship;
              (2) The number of shares of the applicant's voting stock held by each such person and the corresponding percentage of the total number of such shares issued and outstanding, and the citizenship and principal business of any person for whose account, if other than the holder, such interest is held;
              (3) If any two or more persons holding a substantial interest in the applicant are related by blood or marriage, such relationship(s) shall be included in the list; and
              (4) If any person or subsidiary of a person having a substantial interest in the applicant is or has ever been
              (i) An air carrier, a foreign air carrier, a common carrier, or
              (ii) Substantially engaged in the business of aeronautics, or
              (iii) An officer or director of any such entity, or
              (iv) A holder of 10 percent or more of total outstanding voting stock of any such entity, the list shall describe such relationship(s).
              (h) A list of the applicant's subsidiaries, if any, including a description of each subsidiary's principal business and relationship to the applicant.
              (i) A list of the applicant's shares of stock in, or control of, any air carrier, foreign air carrier, common carrier, or person substantially engaged in the business of aeronautics.
              (j) To the extent any relevant corporation has been engaged in any business prior to the filing of the application, each applicant shall provide:
              (1) Copies of the 10K Annual Reports filed in the past 3 years by any relevant corporation required to file such reports with the Securities and Exchange Commission, and
              (2) Copies of recently filed 10Q Quarterly Reports, as necessary, in order to show the financial condition and results of operations of the enterprise current to within 3 months of the date of the filing of the application.

              (k) If 10K Reports are not filed with the Securities and Exchange Commission, the following, for the 3 most recent calendar or fiscal years, reflecting the financial condition and results of operations of the enterprise current to within 3 months of the date of the filing of the application:
              (1) The Balance Sheet of each relevant corporation;
              (2) The Income Statement of each relevant corporation;
              (3) All footnotes applicable to the financial statements, including:
              (i) A statement as to whether the documents were prepared in accordance with Generally Accepted Accounting Principles, and
              (ii) A description of the significant accounting policies of each relevant corporation, such as for depreciation, amortization of intangibles, overhauls, unearned revenues, and cost capitalization;
              (4) A statement of significant events occurring subsequent to the most recent Balance Sheet date for each relevant corporation; and
              (5) A statement identifying the person who has prepared the financial statements, his or her accounting qualifications, and any affiliation he or she has with the applicant.
              (l) A list of all actions and outstanding judgments for more than $5,000 against any relevant corporation, key personnel employed (or to be employed) by any relevant corporation, or person having a substantial interest in any relevant corporation, including the amount of each judgment, the party to whom it is payable, and how long it has been outstanding.
              (m) The number of actions and outstanding judgments of less than $5,000 against each relevant corporation, key personnel employed (or to be employed) by any relevant corporation, or person having a substantial interest in any relevant corporation, and the total amount owed by each on such judgments.
              (n) A description of the applicant's fleet of aircraft, including:
              (1) The number of each type of aircraft owned, leased and to be purchased or leased;
              (2) Applicant's plans, including financing plans, for the purchase or lease of additional aircraft; and
              (3) A sworn affidavit stating that each aircraft owned or leased has been certified by the FAA and currently complies with all FAA safety standards.
              (o) A description of the current status of all pending investigations, enforcement actions, and formal complaints filed by the Department, including the FAA, involving the applicant or any relevant corporation, any personnel employed (or to be employed) by any relevant corporation or person having a substantial interest in any relevant corporation, regarding compliance with 49 U.S.C. Subtitle VII or orders, rules, regulations, or requirements issued pursuant to 49 U.S.C. Subtitle VII, and any corrective actions taken. (If an applicant has a compliance history that warrants it, additional information may be required.)
              (p) A description of all charges of unfair or deceptive or anticompetitive business practices, or of fraud, felony or antitrust violation, brought against any relevant corporation or person having a substantial interest in any relevant corporation, or member of the key personnel employed (or to be employed) by any relevant corporation in the past 10 years. Such descriptions shall include the disposition or current status of each such proceeding.
              (q) A description of any aircraft accidents or incidents (as defined in the National Transportation Safety Board Regulations, 49 CFR 830.2) experienced by the applicant, its personnel, or any relevant corporation, which occurred either during the year preceding the date of application or at any time in the past and which remain under investigation by the FAA, the NTSB, or by the company itself, including:
              (1) The date of the occurrence;
              (2) The type of flight;
              (3) The number of passengers and crew on board and an enumeration of any injuries or fatalities;
              (4) A description of any damage to the aircraft;
              (5) The FAA and NTSB file numbers and the status of the investigations, including any enforcement actions initiated against the carrier or any of its personnel; and
              (6) Positive actions taken to prevent recurrence. (If an applicant's history of accidents or incidents warrants it, additional information may be required.)
              (r) A brief narrative history of the applicant.

              (s) A description of all Federal, State and foreign authority under which the applicant has conducted or is conducting transportation operations, and the identify of the local FAA office and personnel responsible for processing an application for any additional FAA authority needed to conduct the proposed operations.
              (t) A description of the service to be operated if the application is granted, including:
              (1) A forecast Balance Sheet for the first normal year ending after the initially proposed operations have been incorporated, along with the assumptions underlying the accounts and amounts shown; and
              (2) A forecast Income Statement, broken down by quarters, for the first year ending after the initially proposed operations are normalized, and an itemization of all pre-operating and start-up costs associated with the initiation of the proposed service. Such Income Statement shall include estimated revenue block hours (or airborne hours, for charter operators) and revenue miles by type of aircraft, number of passengers and number of tons of mail and cargo to be carried, transport revenues and an estimate of the traffic which would be generated in each market receiving the proposed service. Such statements shall also include a statement as to whether the statements were prepared on the accrual or cash basis, an explanation of how the estimated costs and revenues were developed, a description of the manner in which costs and revenues are allocated, how the underlying traffic forecasts were made, and what load factor has been assumed for the average and peak month. Pre-operating and start-up costs should include, but are not limited to, the following: Obtaining necessary government approval; establishing stations; introductory advertising; aircraft, equipment and space facility deposits and rent; training; and salaries earned prior to start-up.
              (u) A signed counterpart of Agreement 18900 (OST Form 4523) as required by part 203 of this chapter.

              (v) The following certification, which shall accompany the application and all subsequent written submissions filed by the applicant in connection with its application:

                Pursuant to title 18 United States Code section 1001, I [the individual signing the application, who shall be a principal owner, senior officer, or internal counsel of the applicant], in my individual capacity and as the authorized representative of the applicant, have not in any manner knowingly and willfully falsified, concealed or covered up any material fact or made any false, fictitious, or fraudulent statement or knowingly used any documents which contain such statements in connection with the preparation, filing or prosecution of the application. I understand that an individual who is found to have violated the provisions of 18 U.S.C. section 1001 shall be fined nor more than $10,000 or imprisoned not more than five years, or both.

              (The reporting requirements contained in this section were approved by the Office of Management and Budget under control number 2106-0023)
              [Doc. No. 47582, 57 FR 38766, Aug. 27, 1992, as amended at 60 FR 43524, Aug. 22, 1995; Doc. No. DOT-OST-2014-0140, 84 FR 15924, Apr. 16, 2019]

              § 204.4
              [Reserved]

              § 204.5
              Certificated and commuter air carriers undergoing or proposing to undergo substantial change in operations, ownership, or management.
              (a) A certificated or commuter air carrier proposing a substantial change in operations, ownership or management shall file the data set forth in § 204.3. These data must be submitted in cases where:
              (1) The proposed change requires new or amended authority, or
              (2) The change substantially alters the factors upon which its latest fitness finding is based, even if no new authority is required.

              (b) Information which a carrier has previously formally filed with the Department, or with another Federal agency where they are available to the Department, which continues to reflect the current state of the carrier's fitness may be omitted. The carrier instead should identify the data and provide a citation for the date(s) and place(s) of filing. Prior to filing any data, the carrier may contact the Department (Air Carrier Fitness Division) to ascertain what data required by this section, if any, are already available to the Department or are not applicable to the substantial change in question and need not be included in the filing.

              (c) Information filings pursuant to this section made to support an application for new or amended certificate authority shall be filed with the application and addressed to Docket Operations, M-30, U.S. Department of Transportation, 1200 New Jersey Avenue SE, Washington, DC 20590, or by electronic submission at http://www.regulations.gov

              (d) Information filed in support of a certificated or commuter air carrier's continuing fitness to operate under its existing authority in light of substantial changes in its operations, management, or ownership, including changes that may affect the air carrier's citizenship, shall be addressed to the Chief, Air Carrier Fitness Division, Office of the Secretary, U.S. Department of Transportation, 1200 New Jersey Avenue SE, Washington, DC 20590.
              (Approved by the Office of Management and Budget under control number 2106-0023)
              [Doc. No. 47582, 57 FR 38766, Aug. 27, 1992, as amended at 72 FR 20036, Apr. 23, 2007; Doc. No. DOT-OST-2014-0140, 84 FR 15925, Apr. 16, 2019]

              § 204.6
              Certificated and commuter air carriers proposing a change in operations, ownership, or management which is not substantial.
              Carriers proposing to make a change which would not substantially affect their operations, management, or ownership, such as certificated carriers applying for additional authority which would not substantially change their operations, will be presumed to be fit and need not file any information relating to their fitness at time of the change. However, if the Department concludes, from its own analysis or based on information submitted by third parties, that such change may bring the carrier's fitness into question, the Department may require the applicant carrier to file additional information.

              § 204.7
              Revocation for dormancy.
              (a) An air carrier that has not commenced any type of air transportation operations for which it was found fit, willing, and able within one year of the date of that finding, or an air carrier that, for any period of one year after the date of such a finding, has not provided any type of air transportation for which that kind of finding is required, is deemed no longer to continue to be fit to provide the air transportation for which it was found fit and, accordingly, its authority to provide such air transportation shall be revoked.
              (b) An air carrier found fit which commences operations within one year after being found fit but then ceases operations, shall not resume operations without first filing all of the data required by § 204.3 at least 45 days before it intends to provide any such air transportation. Such filings shall be addressed to the Docket Operations Office, U.S. Department of Transportation, 1200 New Jersey Avenue, SE., Washington, DC 20590. The Department will entertain requests for exemption from this 45-day advance filing requirement for good cause shown. If there has been no change in fitness data previously formally filed with the Department, the carrier shall file a sworn statement to that effect signed by one of its officers. The carrier may contact the Department (Air Carrier Fitness Division) to ascertain which data are already available to the Department and need not be refiled. A carrier to which this paragraph applies shall not provide any air transportation for which it is required to be found fit, willing, and able until the Department decides that the carrier continues to be fit, willing, and able to perform such air transportation. During the pendency of the Department's consideration of a data submission under this paragraph, the expiration period set out in paragraph (a) of this section shall be stayed. If the decision or finding by the Department on the issue of the carrier's fitness is favorable, the date or that decision or finding shall be the date considered in applying paragraph (a) of this section.

              (c) For purposes of this section, the date of a Department decision or finding shall be the service date of the Department's order containing such decision or finding, or, in cases where the Department's decision or finding is made by letter, the date of such letter.

              (d) For purposes of this section, references to operations and to the providing of air transportation shall refer only to the actual performance of flight operations under an operating certificate issued to the carrier by the FAA.
              (Approved by the Office of Management and Budget under control number 2106-0023)
              [Docket No. 47582, 57 FR 38766, Aug. 27, 1992, as amended by Doc. No. DOT-OST-2014-0140, 84 FR 15925, Apr. 16, 2019]

          Pt. 205
          PART 205—AIRCRAFT ACCIDENT LIABILITY INSURANCE

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

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

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

            § 205.1
            Purpose.
            This part contains the rules for aircraft accident liability insurance coverage needed by U.S. direct air carriers to obtain or to exercise authority from the Department to operate in interstate or foreign air transportation, and by foreign direct air carriers to operate under permit or other authority in foreign air transportation. It further requires a disclosure statement to shippers about cargo liability limits and insurance coverage for U.S. and foreign direct air carriers.
            [ER-1253, 46 FR 52577, Oct. 27, 1981, as amended by Doc. No. 47939, 57 FR 40100, Sept. 2, 1992; Doc. No. OST-96-1269, 61 FR 19165, May 1, 1996]

            § 205.2
            Applicability.
            These rules apply to all U.S. direct air carriers, including commuter air carriers and air taxi operators as defined in § 298.2 of this chapter, and foreign direct air carriers, including Canadian charter air taxi operators as defined in § 294.2(c) of this chapter.
            [Doc. No. 47939, 57 FR 40100, Sept. 2, 1992]

            § 205.3
            Basic requirements.
            (a) A U.S. or foreign direct air carrier shall not engage in air transportation unless it has in effect aircraft accident liability insurance coverage that meets the requirements of this part for its air carrier or foreign air carrier operations. The minimum amounts of coverage required by this part may be provided either by insurance policies or by self-insurance plans. The currently effective policy of insurance or complete plan for self-insurance shall be available for inspection by the Department at the carrier's principal place of business. The current certificate of insurance or a summary of the complete self-insurance plan on file with the Department, as required by § 205.4, shall be available for public inspection at the carrier's principal place of business.
            (b) For purposes of this part, a certificate of insurance is one or more certificates showing insurance by one or more insurers (excluding reinsurers) of currently effective and properly endorsed policies of aircraft accident liability insurance in compliance with this part. When more than one such insurer is providing coverage, the limits and types of liability assumed by each insurer (excluding reinsurers) shall be clearly stated in the certificate of insurance. Insurance policies and self-insurance plans named in a certificate of insurance that accompanies an application for initial registration or for operating authority shall become effective not later than the proposed starting date for air carrier operations as shown in the application.

            (c) The certificate of insurance shall list the types or classes of aircraft, or the specific aircraft by FAA or foreign government registration number, with respect to which the policy of insurance applies, or shall state that the policy applies to all aircraft owned or operated by the carrier in its air transportation operations. With respect to certificates of insurance that list aircraft by government registration number, the policy or self-insurance plan shall state that, while an aircraft owned or leased by the carrier and declared in the policy is withdrawn from normal use because of its breakdown, repair, or servicing, such insurance as is provided by the policy or plan for that aircraft shall apply also to another aircraft of similar type, horsepower, and seating capacity, whether or not owned by the insured, while temporarily used as a substitute aircraft.
            (d) Each certificate of insurance shall be signed by an authorized officer, agent, or other representative of the insurer or the insurance broker.
            (e) Insurance coverage to meet the requirements of this part shall be obtained from one or more of the following:
            (1) An insurer licensed to issue aircraft accident liability policies in any State, Commonwealth, or Territory of the United States, or in the District of Columbia;
            (2) Surplus line insurers named on a current list of such insurers issued and approved by the insurance regulatory authority of any State, Commonwealth, or Territory of the United States or of the District of Columbia; or

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

            This requirement may be waived by the Department in the public interest.
            [ER-1253, 46 FR 52577, Oct. 27, 1981, as amended by Doc. No. 47939, 57 FR 40100, Sept. 2, 1992]

            § 205.4
            Filing of evidence of insurance.

            (a) A U.S. or foreign air carrier shall file a certificate of insurance or a complete plan for self-insurance with the Department. Each carrier shall ensure that the evidence of aircraft accident liability coverage filed with the Department is correct at all times. The Department will normally notify the carrier within 20 days of receipt if the certificate or plan does not meet the requirements of this part. Certificates of Insurance shall be filed on OST Form 6410 for U.S. air carriers, including commuter air carriers and air taxi operators, and OST Form 6411 for foreign air carriers, including Canadian air taxi operators. The Department may return the certificate or self-insurance plan to the carrier if it finds for good cause that such certificate or plan does not show adequate evidence of insurance coverage under this part. Forms may be obtained from and should be filed with the Department at the addresses specified in paragraph (c) of this section. Forms may also be obtained on the Internet at https://www.transportation.gov/policy/aviation-policy/licensing/US-carriers.

            (b) If the coverage is by type or class of aircraft or by specific aircraft, endorsements that add previously unlisted aircraft or aircraft types or classes to coverage, or that delete listed aircraft, types, or classes from coverage, shall be filed with the Department at the addresses specified in paragraph (c) of this section not more than 30 days after the effective date of the endorsements. Aircraft shall not be listed in the carrier's operations specifications with the FAA and shall not be operated unless liability insurance coverage is in force.
            (c) Certificates of insurance and endorsements required in paragraphs (a) and (b) of this section shall be submitted to the Department of Transportation, Federal Aviation Administration, Program Management Branch, AFS-260, 800 Independence Avenue, SW., Washington, DC 20591. For those air carriers that have a mailing address in the State of Alaska, the forms shall be submitted to the Department of Transportation, Federal Aviation Administration, Alaskan Region Headquarters, AAL-230, 222 West 7th Avenue, Box 14, Anchorage, Alaska 99513. For Canadian air taxis, the forms shall be submitted to the Department of Transportation, Special Authorities Division, X-46, 1200 New Jersey Avenue, SE., Washington, DC 20590.
            (Approved by the Office of Management and Budget under control number 2106-0030)
            [Doc. No. 47939, 57 FR 40100, Sept. 2, 1992, as amended by Doc. No. OST-96-1269, 61 FR 19165, May 1, 1996; 70 FR 25767, May 16, 2005; Doc. No. DOT-OST-2014-0140, 84 FR 15925, Apr. 16, 2019]

            § 205.5
            Minimum coverage.

            (a) Insurance contracts and self-insurance plans shall provide for payment on behalf of the carrier, within the specific limits of liability in this section, of all sums that the carrier shall become legally obligated to pay as damages, excluding any deductible in the policy, for bodily injury to or death of a person, or for damage to the property of others, resulting from the carrier's operation or maintenance of aircraft in air transportation provided under its authority from the Department.
            (b) U.S. and foreign direct air carriers, including commuter air carriers but excluding U.S. air taxi operators and Canadian charter air taxi operators, shall maintain the following coverage:
            (1) Third-party aircraft accident liability coverage for bodily injury to or death of persons, including nonemployee cargo attendants, other than passengers, and for damage to property, with minimum limits of $300,000 for any one person in any one occurrence, and a total of $20,000,000 per involved aircraft for each occurrence, except that for aircraft of not more than 60 seats or 18,000 pounds maximum payload capacity, carriers need only maintain coverage of $2,000,000 per involved aircraft for each occurrence.
            (2) Any such carrier providing air transportation for passengers shall, in addition to the coverage required in paragraph (b)(1) of this section, maintain aircraft accident liability insurance coverage for bodily injury to or death of aircraft passengers, with minimum limits of $300,000 for any one passenger, and a total per involved aircraft for each occurrence of $300,000 times 75 percent of the number of passenger seats installed in the aircraft.
            (c) U.S. air taxi operators registered under part 298 shall maintain the following coverage:
            (1) Third-party aircraft accident liability coverage for bodily injury to or death of persons, including nonemployee cargo attendants, other than passengers, with minimum limits of:
            (i) $75,000 for any one person in any one occurrence, and a total of $300,000 per involved aircraft for each occurrence, and
            (ii) A limit of a least $100,000 for each occurrence for loss of or damage to property.
            (2) U.S. air taxi operators carrying passengers in air transportation shall, in addition to the coverage required in paragraph (c)(1) of this section, maintain aircraft accident liability insurance coverage for bodily injury to or death of aircraft passengers, with minimum limits of $75,000 for any one passenger, and a total per involved aircraft for each occurrence of $75,000 times 75 percent of the number of passenger seats installed in the aircraft.
            (d) Canadian charter air taxi operators registered under part 294 of this chapter shall maintain the following coverage:
            (1) Third-party aircraft accident liability coverage for bodily injury to or death of persons, including nonemployee cargo attendants, other than passengers, and for damage to property, with a minimum coverage of $75,000 for any one person in any one occurrence, and a total of $2,000,000 per involved aircraft for each occurrence, except that Canadian charter air taxi operators operating aircraft of more than 30 seats or 7,500 pounds maximum cargo payload capacity, and a maximum authorized takeoff weight on wheels not greater than 35,000 pounds shall maintain coverage for those aircraft of $20,000,000 per involved aircraft for each occurrence.
            (2) Canadian charter air taxi operators engaging in passenger charter air service under part 294 of this chapter shall, in addition to the coverage required in paragraph (d)(1) of this section, maintain aircraft accident liability coverage for bodily injury to or death of aircraft passengers, with a minimum coverage of $75,000 for any one passenger and a total per involved aircraft for each occurrence of $75,000 times 75 percent of the total number of passenger seats installed in the aircraft.

            (e) Notwithstanding paragraphs (b), (c) and (d) of this section, the carrier may be insured for a combined single limit of liability for each occurrence. The combined single-limit coverage must be not less than the combined required minimums for bodily injury and property damage coverage plus, if the aircraft is used in passenger service, the required total passenger coverages stipulated in paragraph (b) of this section for U.S. and foreign direct air carriers and commuter carriers, paragraph (c) of this section for U.S. air taxi operators, or paragraph (d) of this section for Canadian charter air taxi operators. 1
               The single-limit liability policy for the required aircraft accident liability coverage may be provided by a single policy or by a combination of primary and excess policies.

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

            (f) The liability coverage shall not be contingent upon the financial condition, solvency, or freedom from bankruptcy of the carrier. The limits of the liability for the amounts required by this part shall apply separately to each occurrence. Any payment made under the policy or plan because of any one occurrence shall not reduce the coverage for payment of other damages resulting from any other occurrence.
            [Doc. No. 47939, 57 FR 40101, Sept. 2, 1992; 57 FR 52590, Nov. 4, 1992]

            § 205.6
            Prohibited exclusion of coverage.
            (a) No warranty or exclusion in the policy or plan or in any endorsement or amendment to the policy or plan, nor any violation of the policy or plan by the carrier, shall remove the liability coverage required by this part, except as specifically approved by the Department. This requirement shall not limit the right of insurers to recover from the carrier for amounts paid.
            (b) A policy of insurance or a self-insurance plan required by this part shall not contain the following exclusions:
            (1) Violation of any safety-related requirement imposed by statute or by rule of a government agency.
            (2) Liability assumed by the carrier under an agreement to raise the liability limitations of the Warsaw Convention by signing a counterpart to an agreement of carriers (such as the Montreal Agreement, 18900, signed May 13, 1966, agreeing to a limit on the carrier's liability for injury or death of passengers of $75,000 per passenger), or any amendment to such agreement that may be approved by the Department and to which the carrier becomes a party.
            [ER-1253, 46 FR 52577, Oct. 27, 1981, as amended by Doc. No. 47939, 57 FR 40100, 40101, Sept. 2, 1992; Doc. No. DOT-OST-2014-0140, 84 FR 15925, Apr. 16, 2019]

            § 205.7
            Cancellation, withdrawal, modification, expiration, or replacement of insurance coverage.
            (a) Each policy of aircraft accident liability insurance and plan for self insurance shall specify that it shall remain in force, and may not be replaced, canceled, withdrawn, or in any way modified to reduce the minimum standards set forth in this part, or to change the extent of coverage, by the insurer or the carrier, nor expire by its own terms, in regard to coverage for the carrier in its common carrier operations in air transportation, until 10 days after written notice by the insurer (in the event of replacement, by the retiring insurer), or by the insurer's representative, or by the carrier, describing the change, to the Department at the addresses specified in § 205.4(c), which 10-day notice period shall start to run from the date such notice is actually received at the Department. For purposes of this part, a policy will not be considered to have expired if the same insurer renews its coverage without reduction in the extent of coverage or amounts of coverage, and without a break in coverage, whether or not a new policy is issued, and notice to the Department is not required in that event. If the coverage being changed is by type or class of aircraft or by specific aircraft, endorsements adding or deleting specific aircraft or types or classes of aircraft, for which prior notice would be required by this paragraph, shall be filed in accordance with § 205.4(b), and prior notice of the change need not be given under this paragraph.

            (b) The requirements of this section shall not apply if the policy contains a lesser time period for cancellation in a war risk exclusion. If the war risk exclusion is activated by the insurer, the insurer or its representative shall immediately notify the Department.
            [Doc. No. 47939, 57 FR 40100, 40101, Sept. 2, 1992, as amended at 70 FR 25768, May 16, 2005]

            § 205.8
            Cargo liability disclosure statement.
            Every direct U.S. or foreign air carrier providing air cargo service in air transportation shall give notice in writing to the shipper, when a shipment is accepted, of the existence or absence of cargo liability insurance, and the limits on the extent of its liability, if any. The notice shall be clearly and conspicuously included on or attached to all of its rate sheets and airwaybills.
            [ER-1282, 47 FR 16173, Apr. 15, 1982]

          Pt. 206
          PART 206—CERTIFICATES OF PUBLIC CONVENIENCE AND NECESSITY: SPECIAL AUTHORIZATIONS AND EXEMPTIONS

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

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

            Editorial Note:
            Nomenclature changes to part 206 appear at 84 FR 15925, Apr. 16, 2019.

            § 206.1
            Emergency transportation.
            Notwithstanding the provisions of section 41101 of 49 U.S.C. Subtitle VII, and any term, condition or limitation attached to the exercise of the privileges of an air carrier certificate of public convenience and necessity which prohibits an air carrier from engaging in air transportation between any points on its route, the air carrier may carry between such points (a) any person or persons certified by a physician to be in need of immediate air transportation in order to secure emergency medical or surgical treatment together with any necessary attendant or attendants and (b) any medical supplies certified by a physician as requiring immediate air transportation for the protection of life. Air carriers offering to provide this emergency transportation shall file appropriate tariffs pursuant to Chapter 415 of 49 U.S.C. Subtitle VII.
            (Secs. 204, 416, 72 Stat. 743, 771; 49 U.S.C. 1324, 1386)
            [ER-261, 24 FR 1860, Mar. 14, 1959, as amended at 60 FR 43524, Aug. 22, 1995]

            § 206.2
            Exemption from schedule filing.
            All air carriers are hereby exempted from the requirements of section 41902(b) of 49 U.S.C. Subtitle VII, which provides that each air carrier must periodically provide the Department and the U.S. Postal Service a listing of all of its regularly operated aircraft schedules and schedule changes, showing for each schedule the points served and the departure and arrival times.
            [Doc. No. 47939, 57 FR 40101, Sept. 2, 1992, as amended at 60 FR 43524, Aug. 22, 1995]

            § 206.3
            Transportation of newspersons by all-cargo carriers.
            Notwithstanding the provisions of section 41101 and Chapter 415 of 49 U.S.C. Subtitle VII and part 221 of this chapter, an air carrier holding a certificate of public convenience and necessity for the transportation of only property and mail may provide transportation to persons on regularly scheduled cargo flights for the purpose of collecting data for preparation of feature news, pictorial or like articles provided that the transportation is limited to the writer, journalist, or photographer engaged in the preparation of data for use in feature news, pictorial, or like articles which are to appear in newspapers or magazines, or on radio or television programs and which will publicize the regularly scheduled cargo operations of the carrier.
            [Doc. No. 47939, 57 FR 40102, Sept. 2, 1992, as amended at 60 FR 43524, Aug. 22, 1995]

            § 206.4
            Exemption of air carriers for military transportation.

            Air carriers providing air transportation pursuant to a contract with the Department of Defense are hereby exempted from Chapter 415 of 49 U.S.C. Subtitle VII, and from part 221, §§ 207.4 and 208.32, of this chapter, with respect to those services.
            [Doc. No. 47939, 57 FR 40102, Sept. 2, 1992, as amended at 60 FR 43524, Aug. 22, 1995]

            § 206.5
            Small aircraft operations by certificated carriers.
            (a) A carrier holding an effective certificate issued under section 41102 of 49 U.S.C. Subtitle VII, when conducting operations with small aircraft, is exempt from the requirements of 49 U.S.C. Subtitle VII as set forth in subpart B of part 298 of this chapter, except section 41708 of 49 U.S.C. Subtitle VII, and is subject to the requirements set forth in the following provisions of this chapter:
            (1) Part 205, with the minimum coverage requirements of § 205.5(b),
            (2) Part 215,
            (3) Part 298, subpart D, §§ 298.30, and 298.38, and subpart H, and
            (4) Part 298, subpart F, if the certificated carrier conducts operations with small aircraft only (a certificated carrier conducting operations with both small and large aircraft is subject only to the reporting requirements contained in part 241 of this chapter).
            (b) If a certificated carrier, when conducting operations with small aircraft, provides foreign air transportation that includes a segment for which tariff filing is required and another segment for which tariff filing is not required, then for through service over that routing the carrier has the option of filing a tariff or charging the sum of the applicable local rates, fares, or charges. If the carrier files a tariff for through service, it is not exempt from Chapter 415 or section 41310 of 49 U.S.C. Subtitle VII for that air transportation.
            [Doc. No. 47939, 57 FR 40102, Sept. 2, 1992, as amended at 60 FR 43524, Aug. 22, 1995]

          Pt. 211
          PART 211—APPLICATIONS FOR PERMITS TO FOREIGN AIR CARRIERS

              Subpart A—General
              Sec.
              211.1
              Purpose.
              211.2
              Applicability.

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

              Subpart C—Information Requirements
              211.20
              Initial foreign air carrier permit or transfer of a permit.
              211.21
              Amendments or renewal of foreign air carrier permits.

              Subpart D—Freely Associated State Air Carriers
              211.30
              Eligibility.
              211.31
              Application.
              211.32
              Issuance of permit.
              211.33
              Interstate and interstate authority.
              211.34
              Other permits.
              211.35
              Termination of eligibility.

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

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

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

            Subpart A—General

              § 211.1
              Purpose.
              This part sets forth the filing and evidence requirements for foreign air carriers applying for authority to engage in foreign air transportation under section 41301 of Title 49 of the United States Code (Transportation).
              (Approved by the Office of Management and Budget under control number 3024-0068)
              [ER-1386, 49 FR 33439, Aug. 23, 1984, as amended by ER-1397, 49 FR 50027, Dec. 26, 1984]

              § 211.2
              Applicability.
              (a) Except as provided in paragraph (b) of this section, this part applies to all foreign air carriers seeking initial foreign air carrier permits or the transfer, renewal, or amendment of an existing foreign air carrier permit.

              (b) Canadian charter air taxi operators, foreign indirect air carriers of property, and foreign charter operators are not required to submit applications under this part. Instead, Canadian charter air taxi operators shall register under part 294 of this chapter, foreign indirect air carriers of property shall register under part 297 of this chapter, and foreign charter operators shall register under subpart E of part 380 of this chapter.
              (Approved by the Office of Management and Budget under control number 3024-0068)
              [ER-1386, 49 FR 33439, Aug. 23, 1984, as amended by ER-1397, 49 FR 50027, Dec. 26, 1984; Doc. No. DOT-OST-2014-0140, 84 FR 15925, Apr. 16, 2019]

            Subpart B—General Requirements

              § 211.10
              Filing specifications.
              (a) Except as provided in paragraph (b) of this section, applicants shall follow the requirements in § 302.3 of this chapter as to execution, number of copies, and formal specifications of papers.
              (b) Mexican air taxi operators filing applications for foreign air carrier permits authorizing charter flights across the Mexico-United States border with small aircraft (a maximum passenger capacity of 60 seats or less, or a maximum payload capacity of 18,000 pounds or less) shall file an original and two copies of the application. The application shall conform to the instruction document available from the Foreign Air Carrier Licensing Division, Office of International Aviation, Department of Transportation, 1200 New Jersey Avenue, SE., Washington, DC 20590.
              (c) An application shall have consecutively numbered pages, and shall clearly describe and identify each exhibit by a separate number or symbol. All exhibits are part of the application to which they are attached.
              (d) Applications shall state all weights, measures and monetary units in U.S. terms, and all text in English.
              (Approved by the Office of Management and Budget under control number 3024-0068)
              [ER-1386, 49 FR 33439, Aug. 23, 1984, as amended by ER-1397, 49 FR 50027, Dec. 26, 1984; 61 FR 34725, July 3, 1996]

              § 211.11
              Verification.
              Applications shall be verified and subscribed and sworn to before a Notary Public or other officer authorized to administer oaths in the jurisdiction in which the application is executed. An application verified before a United States consular officer meets the requirements of this section.
              (Approved by the Office of Management and Budget under control number 3024-0068)
              [ER-1386, 49 FR 33439, Aug. 23, 1984, as amended by ER-1397, 49 FR 50027, Dec. 26, 1984]

              § 211.12
              Filing and service.
              All types of applications for foreign air carrier permits (initial, renewal, amendment, or transfer) are filed as of the date the applications are received at the Department's Docket Facility. Each applicant shall serve those persons as required in part 302, subpart B, of this chapter.
              (Approved by the Office of Management and Budget under control number 3024-0068)
              [ER-1386, 49 FR 33439, Aug. 23, 1984, as amended by ER-1397, 49 FR 50027, Dec. 26, 1984; 65 FR 6456, Feb. 9, 2000]

              § 211.13
              Amendments to applications.
              An applicant shall submit any information required by this part that is omitted from the original application, or any additional information, as an amendment to the original application. Applicants shall consecutively number amendments to applications and shall comply with the requirements of this subpart.
              (Approved by the Office of Management and Budget under control number 3024-0068)
              [ER-1386, 49 FR 33439, Aug. 23, 1984, as amended by ER-1397, 49 FR 50027, Dec. 26, 1984]

              § 211.14
              Incorporation by reference.
              Where two or more applications are filed by a single carrier, the applicant may incorporate lengthy exhibits, or other documents, attached to one application into others by reference. The applicant may not incorporate by reference and update any information from a previous docket unless submitted within the past 2 years. The applicant must identify the docket, and the page number or exhibit number being incorporated, and state that there has been no change in that information since submitting the original information.
              (Approved by the Office of Management and Budget under control number 3024-0068)
              [ER-1386, 49 FR 33439, Aug. 23, 1984, as amended by ER-1397, 49 FR 50027, Dec. 26, 1984]

              § 211.15
              Statements of fact.
              The applicant shall include only significant and relevant facts in an application. Each application shall contain adequate information with respect to the evidence required in subpart C of this part. The application may contain other information and data the applicant considers necessary to explain particular circumstances.
              (Approved by the Office of Management and Budget under control number 3024-0068)
              [ER-1386, 49 FR 33439, Aug. 23, 1984, as amended by ER-1397, 49 FR 50027, Dec. 26, 1984]

              § 211.16
              Oral hearing.
              If an oral evidentiary hearing is convened, the applicant must make available witnesses who are competent and able to testify to the accuracy of the statements and documents submitted.
              (Approved by the Office of Management and Budget under control number 3024-0068)
              [ER-1386, 49 FR 33439, Aug. 23, 1984, as amended by ER-1397, 49 FR 50027, Dec. 26, 1984]

            Subpart C—Information Requirements

              § 211.20
              Initial foreign air carrier permit or transfer of a permit.
              A person applying for an initial foreign air carrier permit or the transfer of a permit shall submit the information listed below. The applicant must fully comply with this requirement. If the applicant is unable to respond to an item, the application shall contain an explanation, and include substitute information most closely approximating the information requested. The Department may require an applicant to provide additional information as necessary.
              (a) State the name and address of the applicant, the nature of its organization (individual, partnership, corporation, etc.), and, if other than an individual, the name of the country under the laws of which it is organized and the statutory citation of such laws, if any.
              (b) State the name and official address of the government air transport authority of applicant's country of citizenship having regulatory jurisdiction over applicant.
              (c) Supply the following information regarding the services proposed:
              (1) A complete statement of the authority sought; and
              (2) A description of the services proposed, specifying:
              (i) The point or points in the United States proposed to be served;
              (ii) The frequency of service planned at the start of operations, indicating any seasonal variations; whether the service proposed is to be scheduled, nonscheduled or charter; whether the service would be passenger, or property and mail, or a combination; and the type of equipment (and configuration) to be used; and
              (iii) A service schedule stating the manner in which the service will be operated (e.g., nonstop or multi-stop, and the identity of proposed intermediate traffic and nontraffic points).
              (d) Provide the names, addresses (both residence and business), and citizenship of all Directors, Officers and key management personnel, including the President, Vice Presidents, the Directors or Supervisors of Operations, Maintenance, and Finance, and the chief pilot and chief inspector. Indicate whether any of these persons are related by blood or marriage.
              (e) Provide the names and citizenship of all persons holding five percent (5%) or more of the capital stock or capital of the applicant. Also indicate the number and percentage of shares of stock or percentage of capital held by each. If five percent or more of the applicant's stock is held by a corporation or partnership, set forth the name and citizenship of each person holding five percent or more of the entire capital stock or capital of that corporation or partnership and the respective interest of each. If any shares are held for the benefit of another person, give the name and citizenship of that person.
              (f) If the applicant is not wholly owned by its homeland government, state whether the applicant (each officer, director, manager, or holder of five percent or more of the capital stock) holds any interest directly or indirectly (through brokers or holding companies) in any of the entities listed below. If no interest is held, so state.
              (1) Any U.S. carrier;
              (2) Any other foreign air carrier;

              (3) Any persons engaged in the business of aeronautics; and
              (4) Any common carrier, or any person whose principal business is the holding of stock in, or control of, any air carrier.
              (g) Indicate the relationship between the applicant and its homeland government. If the applicant is wholly owned or substantially owned by the government, indicate which governmental department has responsibility for managerial decisions.
              (h) State whether the applicant's insurance coverage meets or exceeds the liability limits of 14 CFR part 205. State the name(s) of its insurance carrier(s).
              (i) Supply certified evidence, in English, of the applicant's operating authority issued by its government that relates to the operations proposed. This evidence must include a description of the applicant's present authority, the expiration date of this authority, and the manner in which it is expected to be renewed.

              (j) Summarize the operating history of the applicant. Include the types of transportation services rendered, points served, etc., from the beginning of operations to the present. Also, if the applicant is a new airline (i.e., an airline that began direct air services within the past 12 months), briefly summarize the business experience of each officer, director and key management personnel, emphasizing any air transportation experience.
              (k) Provide a list of the aircraft owned, leased and operated by the applicant. State each aircraft registration number and the country of registration. If leased, state the address and citizenship of each lessor. Describe any plans for the acquisition or lease of additional aircraft if the present permit application is granted as proposed. If any of the listed aircraft will not be used exclusively by the applicant, explain its proposed use. State whether any aircraft are or will be wet-leased.
              (l) State where and by whom the maintenance of the aircraft is or will be performed. State whether the applicant's maintenance program complies with the provisions of ICAO Pilots and Airmen Annexes 1, 6 (Part 1) and 7. Also state whether the applicant's home country is a contracting State to the Convention on International Civil Aviation.
              (m) Briefly describe any agreements or cooperative working arrangements (e.g., block-space, wet-lease), both oral and written, entered with and between the applicant, or on behalf of the applicant, and any U.S. or foreign air carrier, affecting the proposed services to the United States that are not on file with the Department. If there are no such agreements, so state.
              (n) Supply financial data summaries, setting forth in U.S. dollars the applicant's profit and loss statements and balance sheets for the 2 most recent available years (calendar or fiscal). These summaries must be accompanied by a statement from the applicant's official responsible for preparation of the summaries that the submissions are complete and accurate. These summaries must include the following data, but need not be more detailed than the financial data summaries published by ICAO:
              (1) The profit and loss summary shall identify:
              (i) Total air transport operating revenues (separated into three categories: passenger, cargo, and other transport revenues);
              (ii) Total air transport operating expenses;
              (iii) Operating result (difference between (i) and (ii));
              (iv) Non-operating items; and
              (v) Profit or loss after income taxes.
              (2) The balance sheet summary shall state and identify:
              (i) Current assets;
              (ii) Flight equipment (after depreciation);
              (iii) Other assets;
              (iv) Total assets (sum of (i) through (iii));
              (v) Current liabilities;
              (vi) Other liabilities;
              (vii) Long-term debt;
              (viii) Capital stock;
              (ix) Retained earnings (balance including capital surplus); and
              (x) Total liabilities and equity (sum of (v) through (ix)).

              (o) Describe the amount, type and reason for financial assistance received or expected from the applicant's home government, if any.

              (p) Submit an estimate showing the total traffic and the financial results of the proposed services for the first full year of normal operations and the supporting data employed to calculate the financial forecast.
              (q) If the air transportation proposed is not covered by an air transport agreement, state in narrative form each of the elements of reciprocity or comity relied upon for the requested authority. If the authority requested is governed by an agreement, state whether the applicant has been formally designated by its homeland government, and, if so, cite the diplomatic note.
              (r) To the extent not described in paragraph (q), state the policy of the applicant's homeland government with respect to U.S. carriers' applications for scheduled and charter authority. Specifically state whether the homeland government grants Fifth Freedom traffic rights to U.S. carriers.
              (s) For the preceding 5 years, state whether the applicant has been involved in any safety or tariff violations or any fatal accidents. If so, furnish details.
              (t) Submit 3 completed copies of OST Form 4523 (Waiver of liability limits under the Warsaw Convention).
              (Approved by the Office of Management and Budget under control number 3024-0068)
              [ER-1386, 49 FR 33439, Aug. 23, 1984, as amended by ER-1397, 49 FR 50027, Dec. 26, 1984; 61 FR 34725, July 3, 1996; Doc. No. DOT-OST-2014-0140, 84 FR 15925, Apr. 16, 2019]

              § 211.21
              Amendments or renewal of foreign air carrier permits.
              A person applying for an amendment or renewal of a foreign air carrier permit shall submit the information listed below. The applicant must comply fully with this requirement. If the applicant is unable to respond to an item, the application shall contain an explanation and include substitute information most closely approximating the information requested. The Department may require an applicant to provide any additional information necessary.
              (a) The information required in paragraphs (a), (b), (i), (o), (q), (r), and (s), of § 211.20.
              (b) Except if seeking renewal of existing authority, the information specified in paragraphs (c) and (p) of § 211.20 regarding the new or altered services proposed to be operated.
              (c) If the financial material for the applicant on file with the Department is more than 2 years old, financial summaries setting forth, in U.S. dollars, the applicant's profit and loss statements and balance sheets for the 2 most recent available years (calendar or fiscal) as required in paragraph (n) of § 211.20, together with the statement of completeness and accuracy required by that paragraph. If the financial material on file with the Department is 2 years old or less, the applicant may incorporate that information by reference as described in § 211.14 of this part.
              (d) If the ownership and control of the applicant are substantially unchanged, so state. If a change has occurred, the applicant shall respond to the paragraph in § 211.20 that most closely relates to the change that has taken place.
              (e) A statement that applicant's maintenance program continues to comply with the provisions of ICAO Pilots and Airmen Annexes 1, 6 (Part 1) and 7.
              [ER-1386, 49 FR 33439, Aug. 23, 1984]

            Subpart D—Freely Associated State Air Carriers

              Source:
              Amdt. 211-18, 52 FR 5442, Feb. 22, 1987, unless otherwise noted.

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

              § 211.30
              Eligibility.

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

              § 211.31
              Application.
              The application shall include, in addition to other requirements of this part, documentation clearly establishing:
              (a) That the carrier is organized under the laws of the Federated States of Micronesia, the Marshall Islands, Palau or the United States;
              (b) That substantial ownership and effective control of the carrier are held by citizens of the Federated States of Micronesia, the Marshall Islands, Palau and/or the United States;
              (c) That citizens of other countries do not have interests in the carrier sufficient to permit them substantially to influence its actions, or that substantial justification exists for a temporary waiver of this requirement;
              (d) That the Administrator of the Federal Aviation Administration has determined that the carrier complies with such safety standards as the Administrator considers to be required; and
              (e) That the government or governments of the Freely Associated States concerned have consented to the carrier's operation as a “Freely Associated State Air Carrier.”
              [Amdt. 211-18, 52 FR 5442, Feb. 22, 1987, as amended by Doc. No. DOT-OST-2014-0140, 84 FR 15925, Apr. 16, 2019]

              § 211.32
              Issuance of permit.
              If the Department is satisfied that the applicant meets the requirements of § 211.31 (a) through (e), and that grant of all or part of the requested authority would otherwise be in the public interest, the Department may, subject to Presidential review under 49 U.S.C. 41307, issue a “Freely Associated State Foreign Air Carrier Permit” to the applicant, including such terms, conditions or limitations as the Department may find to be in the public interest.
              [Amdt. 211-18, 52 FR 5442, Feb. 22, 1987, as amended by Doc. No. DOT-OST-2014-0140, 84 FR 15925, Apr. 16, 2019]

              § 211.33
              Interstate and interstate authority.
              (a) An application under this subpart may include a request, in addition to other foreign air transportation, for authority to engage in interstate air transportation between Guam, the Commonwealth of the Northern Mariana Islands and Honolulu, Hawaii, and interstate air transportation within the Commonwealth of the Northern Mariana Islands. A request for all or part of such limited interstate air transportation authority shall be supported by documentation establishing:
              (1) The impact of such interstate air transportation services on the economic projections of the carrier's proposed operations;
              (2) The need for such proposed interstate air transportation by the affected U.S. points;
              (3) The economic impact of such interstate air transportation on services provided by other carriers providing essential air transportation services to eligible Freely Associated State points within the scope of part 272 of this chapter.
              (b) The Department may grant a Freely Associated State Air Carrier authority to engage in all or part of the interstate air transportation requested in paragraph (a) of this section provided that the Department finds:
              (1) That grant of such interstate air transportation authority would be in furtherance of the objectives of the Compact of Free Association and related agreements between the United States and the Freely Associated States, and would otherwise be in the public interest; and
              (2) That grant of such interstate air transportation authority would not significantly impair the economic viability of existing services providing essential air transportation to any eligible Freely Associated State point within the scope of part 272 of this chapter, or significantly increase compensation that may be required to maintain any such essential air transportation.

              (c) The Department may, at any time, subject to Presidential review under section 41307, suspend, modify, or revoke such interstate authority if it concludes that the requirements specified in paragraph (b) of this section are not then being met.
              [Amdt. 211-18, 52 FR 5442, Feb. 22, 1987]

              § 211.34
              Other permits.
              Nothing in this section shall be construed as limiting the authority of the Department to issue a foreign air carrier permit, other than a Freely Associated State Foreign Air Carrier Permit, to a carrier owned or controlled, in whole or in part, by citizens of the Federated States of Micronesia, the Marshall Islands or Palau, that does not meet the requirements of this section.

              § 211.35
              Termination of eligibility.
              The eligibility of a carrier owned or controlled, in whole or in part, by citizens of the Federated States of Micronesia, the Marshall Islands or Palau, respectively, for issuance of a Freely Associated State Foreign Air Carrier Permit under this subpart shall exist only for such period as subparagraphs (a), (d), and (e) (eligibility for Freely Associated State essential air transportation subsidy compensation), or subparagraph (c) (limited interstate air transportation authority), of paragraph (5) of the Agreement on Civil Aviation Economic Services and Related Programs (Article IX of the Federal Programs and Services Agreement) remain in effect between the Government of those States and the Government of the United States, insofar as authority is conferred by such permits for purposes specified in those subparagraphs.
              [Amdt. 211-18, 52 FR 5442, Feb. 22, 1987]

          Pt. 212
          PART 212—CHARTER RULES FOR U.S. AND FOREIGN DIRECT AIR CARRIERS

            Sec.
            212.1
            Scope.
            212.2
            Definitions.
            212.3
            General provisions.
            212.4
            Authorized charter types.
            212.5
            Operation of affinity (pro rata) charters.
            212.6
            Operation of gambling junket charters.
            212.7
            Direct sales.
            212.8
            Protection of customers' payments.
            212.9
            Prior authorization requirements.
            212.10
            Application for statement of authorization.
            212.11
            Issuance of statement of authorization.
            212.12
            Waiver.
            Appendix A to Part 212—Certificated or Foreign Air Carrier's Surety Bond Under Part 212 of the Regulations of the Department of Transportation (14 CFR Part 212)
            Appendix B to Part 212—Certification of Compliance

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

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

            § 212.1
            Scope.
            This part applies to all charter flights, and all other flights carrying charter passengers or cargo, in interstate and/or foreign air transportation by U.S. certificated air carriers or in foreign air transportation by foreign air carriers. It does not apply to any flights performed by a commuter air carrier, air taxi operator, or certificated air carrier operating “small aircraft” under part 298 of this chapter. Nothing in this part gives authority to operate a type or level of service not authorized by certificate, foreign air carrier permit, or exemption, except that a certificated air carrier authorized to conduct scheduled operations may conduct charter flights, in interstate and/or foreign air transportation, without limitation as to the points served.

            § 212.2
            Definitions.
            For the purposes of this part:

              Affinity (pro rata) charter means a charter arranged by an organization on behalf of its membership, and which meets the requirements of § 212.5.

              Certificated air carrier means a U.S. direct air carrier holding a certificate issued under 49 U.S.C. 41102.

              Charter flight means a flight operated under the terms of a charter contract between a direct air carrier and its charterer or lessee. It does not include scheduled interstate air transportation, scheduled foreign air transportation, or nonscheduled cargo foreign air transportation, sold on an individually ticketed or individually waybilled basis.

              Charter operator means:
            (1) A “Public Charter operator” as defined in § 380.2 of this chapter, or
            (2) An “Overseas Military Personnel Charter operator” as defined in § 372.2 of this chapter.

              Direct air carrier means a certificated or foreign air carrier that directly engages in the operation of aircraft under a certificate, permit, or exemption issued by the Department.

              Fifth freedom charter means a charter flight carrying traffic that originates and terminates in countries other than the carrier's home country, regardless of whether the flight operates via the home country.

              Foreign air carrier means a direct air carrier which is not a citizen of the United States as defined in 49 U.S.C. 40102(a) that holds a foreign air carrier permit issued under 49 U.S.C. 41302 or an exemption issued under 49 U.S.C. 40109 authorizing direct foreign air transportation.

              Fourth freedom charter means a charter flight carrying traffic that terminates in the carrier's home country having originated in another country.

              Gambling junket charter means a charter arranged by a casino, hotel, cruise line, or its agents, the purpose of which is to transport passengers to the casino, hotel, or cruise ship where gambling facilities are available, and which meets the requirements of § 212.6.

              Long-term wet lease means a wet lease which either—
            (1) Lasts more than 60 days, or
            (2) Is part of a series of such leases that amounts to a continuing arrangement lasting more than 60 days.

              Mixed charter means a charter, the cost of which is borne partly by the charter participants and partly by the charterer, where all the passengers meet the eligibility requirements for “affinity (pro rata)” charters of § 212.5.

              Part charter means flight carrying both charter and scheduled passenger traffic.

              Seventh-freedom charter means a charter flight carrying traffic that originates and terminates in a country other than the foreign air carrier's home country, where the flight does not have a prior, intermediate, or subsequent stop in the foreign air carrier's home country.

              Single entity charter means a charter the cost of which is borne by the charterer and not by individual passengers, directly or indirectly.

              Sixth-freedom charter means a charter flight carrying traffic that originates and terminates in a country other than the country of the foreign air carrier's home country, provided the flight operates via the home country of the foreign air carrier.

              Third freedom charter means a charter flight carrying traffic that originates in the carrier's home country and terminates in another country.

              Wet lease means a lease between direct air carriers by which the lessor provides all or part of the capacity of an aircraft, and its crew, including operations where the lessor is conducting services under a blocked space or code-sharing arrangement.
            [Doc. No. OST-97-2356, 63 FR 28236, May 22, 1998, as amended at 71 FR 5784, Feb. 3, 2006]

            § 212.3
            General provisions.
            (a) Certificated and foreign air carriers may conduct charter flights as described in this part, and may carry charter passengers on scheduled flights, or charter cargo on scheduled or nonscheduled flights (or on the main deck or in the belly of passenger charter flights), subject to the requirements of this chapter and any orders of, or specific conditions imposed by, the Department.
            (b) Charter flights may be operated on a round-trip or one-way basis, with no minimum group, shipment, or contract size.
            (c) Contracts to perform charter flights must be in writing and signed by an authorized representative of the certificated or foreign air carrier and the charterer prior to the operation of the flights involved. The written agreement shall include:

            (1) The name and address of either the surety whose bond secures advance charter payments received by the carrier, or of the carrier's depository bank to which checks or money orders for the advance charter payments are to be made payable as escrow holder pending completion of the charter trip; and

            (2) A statement that unless the charterer files a claim with the carrier, or, if the carrier is unavailable, with the surety, within 60 days after the cancellation of a charter trip with respect to which the charterer's advance payments are secured by the bond, the surety shall be released from all liability under the bond to such charterer for such trips.
            (d) A certificated or foreign air carrier must make a reasonable effort to verify that any charterer with which it contracts, and any charter it conducts, meets the applicable requirements of this chapter.

            (e) The certificated or foreign air carriers shall require full payment of the total charter price, including payment for the return portion of a round trip, or the posting of a satisfactory bond for full payment, prior to the commencement of any portion of the air transportation, provided, however, that in the case of a passenger charter for less than the entire of an aircraft, the carrier shall require full payment of the total charter price, including payment for the return portion of a round trip, from the charterers not less than 10 days prior to the commencement of any portion of the transportation, and such payment shall not be refundable unless the charter is canceled by the carrier or unless the carrier accepts a substitute charterer for one which has canceled a charter, in which case the amount paid by the latter shall be refunded. For the purpose of this section, payment to the carrier's depository bank, as designated in the charter contract, shall be deemed payment to the carrier.
            (f) A certificated or foreign air carrier operating a U.S.-originating passenger charter shall be responsible to return to his or her point of origin any passenger who purchased round trip transportation on that charter and who was transported by that carrier on his or her outbound flight; except that this provision shall not apply in cases where the return transportation is to be provided by another certificated or foreign air carrier.
            (g) A certificated or foreign air carrier may not perform any charter flight for which a statement of authorization is required under § 212.9 until one has been granted by the Department. In addition, if a foreign air carrier is required to obtain a statement of authorization under paragraph (e) of that section, neither it, not any charter operator, or any other person shall advertise or sell any passenger charter services except those that have been specifically authorized by the Department.
            (h) A certificated air carrier may not operate charters where such operations would result in a substantial change in the scope of its operations within the meaning of part 204 of this chapter.
            (i) A certificated air carrier may not limit its baggage liability for interstate charter flights except as set forth in part 254 of this chapter.
            (j) A certificated air carrier may not, except as set forth in part 121 of the Federal Aviation Regulations (14 CFR part 121), limit the availability, upon reasonable request, of air transportation and related services to a person who may require help from another person in expeditiously moving to an emergency exit for evacuation of an aircraft.
            (k) A certificated air carrier holding a certificate to conduct only cargo operations may not conduct passenger charters.
            (l) A certificated air carrier may not perform any charter in interstate commerce within the State of Alaska.
            (m) A foreign air carrier may operate charters in foreign air transportation only to the extent authorized by its foreign air carrier permit under 49 U.S.C. 41302 or exemption authority under 49 U.S.C. 40109, and only to the extent to which such operations are consistent with the provisions of any applicable bilateral aviation undertaking.
            [Docket No. OST-97-2356, 63 FR 28236, May 22, 1998, as amended by Doc. No. DOT-OST-2014-0140, 84 FR 15925, Apr. 16, 2019]

            § 212.4
            Authorized charter types.
            Certificated and foreign air carriers may conduct the following charter types, subject to the provisions of this part:
            (a) Affinity (pro rata) charters.
            (b) Single entity charters, including:

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

            § 212.5
            Operation of affinity (pro rata) charters.
            An affinity (pro rata) charter operated by a certificated or foreign air carrier must meet the following criteria:
            (a) The aircraft must be chartered by an organization, no part of whose business is the formation of groups for transportation or solicitation or sale of transportation services, for the purpose of providing air transportation to its members and their immediate families.
            (b) The charter must be organized by the organization itself, or by a person or company who acts not as a principal, but as an agent for the chartering organization or the certificated or foreign air carrier.
            (c) No solicitation, sales, or participation may take place beyond the bona fide members of an eligible chartering organization, and their immediate families (spouse, children, and parents). All printed solicitation materials shall contain the following notice in boldface, 10-point or larger type—
            Some of the Federal rules that protect against tour changes and loss of passengers' money in publicly sold charters do not apply to this charter flight.

            (d) “Bona fide members” are members of an organization who: Have not joined the organization merely to travel on a charter flight; and who have been members of the chartering organization for a minimum of six months prior to the date of commencement of the affected flight; provided, that the “six month” rule does not apply to:
            (1) Employees of a single commercial establishment, industrial plant, or government agency, or
            (2) Students and employees of a single school.
            (e) The charter price due the direct air carrier shall be prorated equally among all the charter passengers, except that children under 12 may be offered discounted or free transportation.
            (f) The certificated or foreign air carrier shall make reasonable efforts to assure that passengers transported meet the eligibility requirements of this section. The certificated or foreign air carrier shall also obtain (no later than the date of departure), and maintain for two years, a certification by an authorized representative of the chartering organization that all passengers are eligible for transportation under this section.

            § 212.6
            Operation of gambling junket charters.
            A gambling junket charter operated by a certificated or foreign air carrier must meet the following criteria:
            (a) The aircraft must be chartered by
            (1) A casino, hotel, or cruise line duly licensed by the government of any state, territory or possession of the United States, or by a foreign government, or
            (2) An agent of such a casino, or cruise line on behalf of that casino, hotel, or cruise line.

            (b) The casino, hotel, or cruise line or its agents, may not require a passenger to incur any expense in taking the trip, provided, that this provision shall not preclude the casino, hotel, or cruise line or its agents, from requiring prospective passengers to pay nominal reservation fees that are duly refundable by the casino, hotel, or cruise line before the flight, establish a minimum line-of-credit at the casino, hotel, or cruise line, bring (but not necessarily spend) a specified minimum amount of money, or meet other requirements that do not place them in financial jeopardy; nor does it preclude the casino, hotel, or cruise line, or its agents, from offering operational land packages for a fee.

            § 212.7
            Direct sales.
            (a) Certificated and foreign air carriers may sell or offer for sale, and operate, as principal, Public Charter flights under part 380 of this chapter directly to the public.
            (b) Each certificated or foreign air carrier operating a charter trip under this section shall comply with all the requirements of part 380 of this chapter, except that:
            (1) Those provisions of part 380 relating to the existence of a contract between a charter operator and a direct air carrier do not apply;
            (2) A depository agreement shall comply with § 380.34a (d) and (f);
            (3) A security agreement shall comply with § 380.34 (c) and (d); and
            (i) If no depository agreement is used, protect charter participant payments (including those for ground accommodations and services) and assure the certificated or foreign air carrier's contractual and regulatory responsibilities to charter participants in an unlimited amount (except that the liability of the securer with respect to any charter participant may be limited to the charter price paid by or on behalf of such participant);
            (ii) If used in combination with a depository agreement, protect charter participant payments (including those for ground accommodations and services) and assure the certificated or foreign air carrier's contractual and regulatory responsibilities to charter participants in the amount of at least $10,000 times the number of flights, except that the amount need not be more than $200,000. The liability of the securer with respect to any charter participant may be limited to the charter price paid by or on behalf of such participant.
            (c) The Department reserves the right to limit or prohibit the operation of direct sales Public Charters by a foreign air carrier upon a finding that such action is necessary in the public interest.

            § 212.8
            Protection of customers' payments.
            (a) Except as provided in paragraph (c) of this section, no certificated air carrier or foreign air carrier shall perform any charter trip (other than a cargo charter trip) originating in the United States or any Overseas Military Personnel Charter trip, as defined in part 372 of this chapter, nor shall such carrier accept any advance payment in connection with any such charter trip, unless there is on file with the Department a copy of a currently effective agreement made between said carrier and a designated bank, by the terms of which all sums payable in advance to the carrier by charterers, in connection with any such trip to be performed by said carrier, shall be deposited with and maintained by the bank, as escrow holder, the agreement to be subject to the following conditions:
            (1) The charterer (or its agent) shall pay the carrier either by check or money order made payable to the depository bank. Such check or money order and any cash received by the carrier from a charterer (or its agent) shall be deposited in, or mailed to, the bank no later than the close of the business day following the receipt of the check or money order or the cash, along with a statement showing the name and address of the charterer (or its agent); provided, however, that where the charter transportation to be performed by a carrier is sold through a travel agent, the agent may be authorized by the carrier to deduct its commission and remit the balance of the advance payment to the carrier either by check or money order made payable to the designated bank.

            (2) The bank shall pay over to the carrier escrowed funds with respect to a specific charter only after the carrier has certified in writing to the bank that such charter has been completed; provided, however, that the bank may be required by the terms of the agreement to pay over to the carrier a specified portion of such escrowed funds, as payment for the performance of the outbound segment of a round-trip charter upon the carrier's written certification that such segment has been so completed.

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

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

            (d) The bond permitted by this section shall be in the form set forth as the appendix to this part. Such bond shall be issued by a bonding or surety company—
            (1) Which is listed in Best's Insurance Reports (Fire and Casualty) with a general policyholders' rating of “A” or better or

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

            § 212.9
            Prior authorization requirements.

            (a) Certificated air carriers shall obtain a statement of authorization for each long-term wet lease to a foreign air carrier.
            (b) Foreign air carriers shall obtain a statement of authorization for each:
            (1) Fifth-, sixth- and/or seventh-freedom charter flights to or from the United States;
            (2) Long-term wet lease;
            (3) Charter flight for which the Department specifically requires prior authorization under paragraph (e) or (f) of this section; or
            (4) Part charter.
            (c) The Department may issue blanket statements of authorization to foreign air carriers to conduct fifth freedom charters. The standards for issuing such blanket authorizations shall be those stated in § 212.11. The Department may revoke any authority granted under this paragraph at any time without hearing.
            (d) The Department may at any time, with or without hearing, but with at least 30 days' notice, require a foreign air carrier to obtain a statement of authorization before operating any charter flight. In deciding whether to impose such a requirement, the Department will consider (but not be limited to considering) whether the country of the carrier's nationality:
            (1) Requires prior approval for third or fourth freedom charter flights by U.S. air carriers;
            (2) Has, over the objection of the U.S. Government, denied rights of a U.S. air carrier guaranteed by a bilateral agreement; or
            (3) Has otherwise impaired, limited, or denied the operating rights of U.S. air carriers, or engaged in unfair, discriminatory, or restrictive practices with respect to air transportation services to, from, through, or over its territory.
            (e) The Department, in the interest of national security, may require a foreign air carrier to provide prior notification or to obtain a statement of authorization before operating any charter flight over U.S. territory.
            [Doc. No. OST-97-2356, 63 FR 28236, May 22, 1998, as amended at 71 FR 5785, Feb. 3, 2006]

            § 212.10
            Application for statement of authorization.
            (a) Application for a statement of authorization shall be submitted on OST Form 4540 except that for part charters or long-term wet leases the application may be in letter form. An application for a long-term wet lease shall describe the purpose and terms of the wet lease agreement. Except for an application for a long-term wet lease involving a codeshare agreement, an original and two copies of an application shall be submitted to the Department of Transportation, Office of International Aviation, U.S. Air Carrier Licensing Division, X-44 (for an application by a certificated air carrier), or Foreign Air Carrier Licensing Division, X-45 (for an application by a foreign air carrier), 1200 New Jersey Avenue, SE., Washington, DC 20590; an original and two copies of an application for a long-term wet lease involving a codeshare agreement shall be submitted to DOT Dockets, PL-401, 1200 New Jersey Avenue, SE., Washington, DC 20590, or by electronic submission to DOT Dockets according to procedures at the DOT Dockets website. Upon a showing of good cause, the application may be transmitted by facsimile (fax) or telegram, or may be made by telephone, provided, that in the case of a fax or telephone application, the applicant must confirm its request (by filing an original and two copies of its application as described above) within three business days.
            (b) A copy of each application for a long-term wet lease shall also be served on the Director of Flight Standards Service (AFS-1), Federal Aviation Administration, 800 Independence Avenue, SW., Washington, DC 20591, and on each certificated air carrier that is authorized to serve the general area in which the proposed transportation is to be performed.
            (c)(1) Applicants for statements of authorization filed by foreign air carriers shall include documentation to establish the extent to which the country of the applicant's nationality deals with U.S. air carriers on the basis of reciprocity for similar flights, if such flights are not subject to a bilateral agreement, and
            (i) The Department has not established that the country accords reciprocity;

            (ii) The Department has found reciprocity defective in the most recent prior approval application involving the country; or
            (iii) Changes in reciprocity have occurred since the most recent Department finding for the country in question.
            (2) Applications filed by certificated or foreign air carriers to conduct long-term wet leases shall include, for the country of the lessee's nationality, the documentation specified in paragraph (c)(1) of this section.
            (d)(1) Applications shall be filed at least 5 business days before commencement of the proposed flight or flights, except as specified in paragraphs (d)(2), (d)(3), and (d)(4) of this section. Late applications may be considered upon a showing of good cause for the lateness.
            (2) Applications for a part charter or for a long-term wet lease shall be filed at least 45 calendar days before the date of the first proposed flight.
            (3) Applications specifically required under § 212.9(d) shall be filed at least 30 calendar days before the proposed flight or flights (10 calendar days for cargo charters), unless otherwise specified by the Department.
            (4) Applications required by a Department order under § 212.9(e) shall be filed at least 14 calendar days before the proposed flight or flights, unless otherwise specified by the Department.
            (5) Where an application is required by more than one provision of this part and/or order of the Department, only one application need be filed, but it must conform to the earliest applicable filing deadline.
            (6) The Department may require service of applications as it deems necessary.
            (e)(1) Any person may file a memorandum supporting or opposing an application. Three copies of each memorandum shall be filed within 7 business days after service of the application or before the date of the proposed flight or flights, whichever is earlier. Memorandums will be considered to the extent practicable; the Department may act on an application without waiting for supporting or opposing memorandums to be filed.
            (2) Each memorandum shall set forth the reasons why the application should be granted or denied, accompanied by whatever data, including affidavits, the Department is requested to consider.
            (3) A copy of each memorandum shall be served on the certified or foreign air carrier applying for approval.
            (f)(1) Unless otherwise ordered by the Department, each application and memorandum filed in response will be available for public inspection at the Office of International Aviation immediately upon filing. Such information with respect to codeshare applications and responsive pleadings will be available for public inspection at DOT Dockets or at the DOT Dockets website. Notice of the filing of all applications shall be published in the Department's Weekly List of Applications Filed.
            (2) Any person objecting to public disclosure of any information in an application or memorandum must state the grounds for the objection in writing. If the Department finds that disclosure of all or part of the information would adversely affect the objecting person, and that the public interest does not require disclosure, it will order that the injurious information be withheld.
            [Doc. No. OST-97-2356, 63 FR 28236, May 22, 1998, as amended at 64 FR 3213, Jan. 21, 1999; Doc. No. DOT-OST-2014-0140, 84 FR 15925, Apr. 16, 2019]

            § 212.11
            Issuance of statement of authorization.
            (a) The Department will issue a statement of authorization if it finds that the proposed charter flight, part charter, or wet lease meets the requirements of this part and that it is in the public interest. Statements of authorization may be conditioned or limited.
            (b) In determining the public interest the Department will consider (but not be limited to) the following factors:
            (1) The extent to which the authority sought is covered by and consistent with bilateral agreements to which the United States is a party.

            (2) The extent to which an applicant foreign air carrier's home country (and, in the case of a long-term wet lease, the lessee's home country) deals with U.S. air carriers on the basis of substantial reciprocity.

            (3) Whether the applicant or its agent has previously violated the provisions of this part.
            (4) Where the application concerns a long-term wet lease:
            (i) Whether the lessor (applicant) or its agent or the lessee (charterer) or its agent has previously violated the provisions of the Department's charter regulations.
            (ii) Whether, because of the nature of the arrangement and the benefits involved, the authority sought should be the subject of a bilateral agreement.
            (iii) To what extent the lessor owns and/or controls the lessee, or is owned and/or controlled by the lessee.
            (c) The Department will submit any denial of an authorization specifically required of a foreign air carrier under § 212.9(d) to the President of the United States at least 10 days before the proposed departure. The denial will be subject to stay or disapproval by the President within 10 days after it is submitted. A shorter period for Presidential review may be specified by the Department where the application for authorization is not timely or properly filed. Denial of a late-filed application need not be submitted to the President. For the purposes of this paragraph, an application filed by a foreign air carrier under § 212.9(d) to conduct a cargo charter will be considered as timely filed only if it is filed at least 30 calendar days before the proposed flight, notwithstanding the 10-day filing requirement for cargo charters in § 212.10(d)(3).
            (d) The Department will publish notice of its actions on applications for statements of authorization in its Weekly List of Applications Filed. Interested persons may upon request obtain copies of letters of endorsed forms advising applicants of action taken on their applications.
            [Docket No. OST-97-2356, 63 FR 28236, May 22, 1998, as amended by Doc. No. DOT-OST-2014-0140, 84 FR 15925, Apr. 16, 2019]

            § 212.12
            Waiver.
            The Department may grant a waiver of any of the provisions of this part upon a finding that such waiver is in the public interest. A certificated or foreign air carrier may request a waiver by filing a written application with the Department, citing the specific provision to be waived and providing justification for such waiver.

            Pt. 212, App. A
            Appendix A to Part 212—Certificated or Foreign Air Carrier's Surety Bond Under Part 212 of the Regulations of the Department of Transportation (14 CFR Part 212)
            Know all persons by these presents, that we __________ (Name of certificated or foreign air carrier) of __________, (City) __________ (State or Country) as Principal (hereinafter called Principal), and __________ (name of Surety) a corporation created and existing under the laws of the State of ________ (State) as Surety (hereinafter called Surety) are held and firmly bound unto the United States of America in an unlimited amount, as required by 14 CFR 212.8, for which payment, well and truly to be made, we bind ourselves and our heirs, executors, administrators, successors, and assigns, jointly and severally, firmly by these presents.
            Whereas the principal, a certificated air carrier holding a certificate of public convenience and necessity issued under 49 U.S.C. 41102, or a foreign air carrier holding a foreign air carrier permit issued under 49 U.S.C. 41302 or an exemption issued under 49 U.S.C. 40109 authorizing that foreign air carrier to engage in charter trips in foreign air transportation, is subject to rules and regulations of the Department of Transportation relating to security for the protection of charterers of civil aircraft and has elected to file with the Department of Transportation such a bond as will guarantee to the United States Government the performance of all charter trips (other than cargo charter trips) originating in the United States and of all Overseas Military Personnel Charters, as defined in 14 CFR part 372, to be performed, in whole or in part, by such certificated or foreign air carrier pursuant to contracts entered into by such carrier after the execution date of this bond, and
            Whereas this bond is written to assure compliance by the Principal with rules and regulations of the Department of Transportation relating to security for the protection of charterer of civil aircraft for charter trips (other than cargo charters) originating in the United States or of Overseas Military Personnel Charter trips and shall inure to the benefit of any and all such charterers to whom the Principal may be held legally liable for any of the damages herein described.

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

            By: Signature and title

            Witness

            Surety
            Name

            By: Signature and title

            Witness

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

            Pt. 212, App. B
            Appendix B to Part 212—Certification of Compliance
            Organization Charterworthiness for Affinity Charter Air Transportation and Eligibility of All Prospective Passengers for Such Flights Under Part 212 of the Regulations of the Department of Transportation (14 CFR Part 212)
            I declare under penalty of perjury under the laws of the United States of America that the foregoing is true and correct.

          Pt. 213
          PART 213—TERMS, CONDITIONS AND LIMITATIONS OF FOREIGN AIR CARRIER PERMITS

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

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

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

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

            § 213.1
            Applicability.

            This part sets forth terms, conditions, and limitations applicable to foreign air carrier permits issued under section 41302 of Title 49 of the United States Code (Transportation) authorizing scheduled foreign air transportation. Unless such permits or the orders issuing such permits otherwise provide, the exercises of the privileges to engage in scheduled foreign air transportation granted by any such permit shall be subject to the terms, conditions, and limitations as are set forth in this part, and as may from time to time be prescribed by the Department.
            [ER-680, 36 FR 7306, Apr. 17, 1971, as amended at 61 FR 34725, July 3, 1996; Doc. No. DOT-OST-2014-0140, 84 FR 15925, Apr. 16, 2019]

            § 213.2
            Reports of traffic data.
            The Department may at any time require any foreign air carrier to file with the Department traffic data disclosing the nature and extent of such carrier's engagement in transportation between points in the United States and points outside thereof. The Department will specify the traffic data required in each such instance. Interested persons seeking reconsideration of a Department determination under this section may file a petition pursuant to § 302.14 of this chapter (Rule 14 of part 302) within 10 days after Department action.
            [ER-624, 35 FR 8881, June 9, 1970, as amended at 65 FR 6456, Feb. 9, 2000; Doc. No. DOT-OST-2014-0140, 84 FR 15925, Apr. 16, 2019]

            § 213.3
            Filing and approval of schedules.
            (a) In the absence of provisions to the contrary in the permit and of Department action pursuant to this section, a foreign air carrier may determine the schedules (including type of equipment used) pursuant to which it engages in transportation between points in the United States and points outside thereof.
            (b) In the case of a foreign air carrier permit for scheduled air transportation which is not the subject of an air transport agreement between the United States and the government of the holder, the Department, if it finds that the public interest so requires, may with or without hearing order the foreign air carrier to file with it within 7 days after service of such order, an original and three copies of any or all of its existing schedules of service between any point in the United States and any point outside thereof, and may require such carrier thereafter to file an original and three copies of any proposed schedules of service between such points at least 30 days prior to the date of inauguration of such service. Such schedules shall contain all schedules of aircraft which are or will be operated by such carrier between each pair of points set forth in the order, the type of equipment used or to be used, the time of arrival and departure at each point, the frequency of each schedule, and the effective date of any proposed schedule.
            (c) In the case of any foreign air carrier permit for scheduled air transportation which is the subject of an air transport agreement between the United States and the government of the holder, the Department may with or without hearing issue an order, similar to that provided for in paragraph (b) of this section, if it makes the findings provided for in that subsection and, in addition, finds that the government or aeronautical authorities of the government of the holder, over the objections of the U.S. Government, have: (1) Taken action which impairs, limits, terminates, or denies operating rights, or (2) otherwise denied or failed to prevent the denial of, in whole or in part, the fair and equal opportunity to exercise the operating rights, provided for in such air transport agreement, of any U.S. air carrier designated thereunder with respect to flight operations to, from, through, or over the territory of such foreign government.

            (d) The carrier may continue to operate existing schedules, and may inaugurate operations under proposed schedules 30 days after the filing of such schedules with the Department, unless the Department with or without hearing issues an order, subject to stay or disapproval by the President of the United States within 10 days after adoption, notifying the carrier that such operations, or any part of them, may be contrary to applicable law or may adversely affect the public interest. If the notification pertains to a proposed schedule, service under such schedule shall not be inaugurated; if the notification pertains to existing schedules, service under such schedules shall be discontinued on the date specified in the Department's order. Such date shall be not less than ten days after adoption of the Department's order unless affirmative Presidential approval is obtained at an earlier date.
            (e) No petitions for reconsideration may be filed with respect to Department orders issued pursuant to paragraph (b), (c), or (d) of this section. Nevertheless, if the Department serves a notification under paragraph (d) of this section, the carrier may make application to the Department for approval of any or all existing or proposed schedules, pursuant to the provisions of § 213.5. The Department may with or without hearing withdraw, in whole or in part, its notification at any time and may permit existing or proposed schedules to be operated for such period or periods as the Department may determine.
            (f) The date of service on a foreign air carrier of orders and notifications pursuant to this section shall be the date of mailing thereof, by certified or registered mail, to the agent designated by the foreign air carrier pursuant to 49 U.S.C. 46103 or, if the foreign air carrier has failed to designate an agent, the date of mailing by registered air mail to the foreign air carrier's home office.
            [ER-624, 35 FR 8881, June 9, 1970, as amended by ER-870, 39 FR 30843, Aug. 26, 1974; ER-1107, 47 FR 46495, Oct. 19, 1982; 61 FR 34725, July 3, 1996]

            § 213.4
            [Reserved]

            § 213.5
            Filing and service of schedules and applications for approval of schedules; procedure thereon.
            (a) Number of copies and certificate of service. An original and three copies of each schedule, and an original and seven (7) copies of application for approval of schedules (§ 213.3(e)) shall be filed with the Department, each setting forth the names and addresses of the persons, if any, required to be served, and stating that service has been made on all such persons by personal service or by registered or certified mail (if the addressee is located within the United States, its territories and possessions) or by registered air mail (if the addressee is located outside the United States, its territories and possessions) and the date of such service. In the case of service by mail, the date of mailing shall be considered the date of service.
            (b) Pleadings by interested persons. Any interested person may file and serve upon the foreign air carrier a memorandum in opposition to, or in support of, schedules or an application for approval of schedules within 10 days of the filing opposed or supported. All memoranda shall set forth in detail the reasons for the position taken together with a statement of economic data and other matters which it is desired that the Department officially notice, and affidavits stating other facts relied upon. Memoranda shall contain a certificate of service as prescribed in paragraph (a) of this section. An executed original and seven (7) true copies shall be filed with the Department's Docket Facility. Unless otherwise provided by the Department, further pleadings will not be entertained.
            (c) Determination and petitions for reconsideration. The Department may make its determination upon the application and other pleadings or, in its discretion, after hearing. Interested persons seeking reconsideration of the Department's determination on an application approval of schedules may file a petition pursuant to § 302.14 of this chapter (Rule 14 of part 302) within 10 days of Department action. Any interested person may file an answer in opposition to, or in support of, the petition within 10 days after it is filed. An executed original and 19 copies of such petition for reconsideration or memorandum shall be filed with the Docket Facility. All petitions for reconsideration shall contain a certificate of service in the form prescribed by paragraph (a) of this section. Unless ordered by the Department upon application or upon its own motion, further pleadings will not be entertained.
            [ER-624, 35 FR 8881, June 9, 1970, as amended by ER-644, 35 FR 14382, Sept. 12, 1970; 61 FR 34725, July 3, 1996; 65 FR 6456, Feb. 9, 2000; DOT-OST-2014-0140, 84 FR 15925, Apr. 16, 2019]

            § 213.6
            Compliance.

            Any violation by the foreign air carrier of applicable provisions of Subtitle VII of Title 49 of the U.S. Code or of orders, rules or regulations issued thereunder, or of the terms, conditions or limitations applicable to the exercise of the privileges granted by the permit shall constitute a failure to comply with the terms, conditions and limitations of such permit: Provided, That upon a showing that a violation of a provision not mandatorily prescribed by law resulted from the observance by the holder of an obligation, duty or liability imposed by a foreign country, the Department may excuse the violation.
            [ER-624, 35 FR 8881, June 9, 1970, as amended at 61 FR 34725, July 3, 1996]

            § 213.7
            Filing requirements for adherence to Montreal Agreement.
            It shall be a condition upon the holding of a foreign air carrier permit or other authority authorizing direct foreign scheduled air transportation that the holder have and maintain in effect and on file with the Department a signed counterpart of Agreement 18900 (OST Form 4523), and a tariff (for those carriers otherwise generally required to file tariffs) that includes its provisions, and comply with all other requirements of part 203 of this chapter. That form can be obtained from the Foreign Air Carrier Licensing Division (X-45), Office of International Aviation, Department of Transportation, 1200 New Jersey Avenue, SE., Washington, DC 20590.
            (Approved by the Office of Management and Budget under control number 3024-0064)
            [ER-1330, 48 FR 8050, Feb. 25, 1983, as amended by ER-1346, 48 FR 31014, July 6, 1983; 61 FR 34725, July 3, 1996]

          Pt. 214
          PART 214—TERMS, CONDITIONS, AND LIMITATIONS OF FOREIGN AIR CARRIER PERMITS AUTHORIZING CHARTER TRANSPORTATION ONLY

            Sec.
            214.1
            Applicability.
            214.2
            Terms of service.

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

            § 214.1
            Applicability.
            This part establishes the terms, conditions, and limitations applicable to charter foreign air transportation pursuant to foreign air carrier permits authorizing the holder to engage in charter transportation only.
            (Secs. 204, 402, Pub. L. 85-726, as amended, 72 Stat. 743, 757; 49 U.S.C. 1324, 1371)
            [ER-1223, 46 FR 28379, May 26, 1981]

            § 214.2
            Terms of service.
            Charter air transportation under this part shall be performed in accordance with the provisions of part 212 of this chapter.
            (Secs. 204, 402, Pub. L. 85-726, as amended, 72 Stat. 743, 757; 49 U.S.C. 1324, 1371)
            [ER-1223, 46 FR 28379, May 26, 1981]

          Pt. 215
          PART 215—USE AND CHANGE OF NAMES OF AIR CARRIERS, FOREIGN AIR CARRIERS AND COMMUTER AIR CARRIERS

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

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

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

            § 215.1
            Applicability.
            This part applies to all certificated air carriers, commuter air carriers, and foreign direct air carriers and to initial and amended applications for authority, applications for certificate or permit transfers or reissuances, and registration of business names.
            [Doc. No. DOT-OST-2014-0140, 84 FR 15925, Apr. 16, 2019]

            § 215.2
            Purpose.

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

            § 215.3
            Use of name.
            In holding out to the public and in performing air transportation services, a direct air carrier or foreign direct air carrier subject to this part shall use only the name in which its operating authorization is issued or trade name is registered, and shall not operate or hold out to the public in a name not acknowledged by the Department to be so registered. Minor variations in the use of this name, including abbreviations, contractions, initial letters, or other variations of the name that are identifiable with the authorized name, are permitted. Slogans and service marks shall not be considered names for the purpose of this part, and their use is not restricted.
            [53 FR 17923, May 19, 1988, as amended at 70 FR 25768, May 16, 2005]

            § 215.4
            Change of name or use of trade name.
            (a) Registrations. Any air carrier subject to this part that desires to change the name in which its operating authorization has been issued, or to use a trade name, or to obtain initial operating authority must register the name with the Department. The Department will construe any application for initial, reissued, or transferred authority as containing a “registration” of the intended name. A separate name registration document need not be filed. A carrier registering use of a trade name, without seeking reissuance of its underlying certificate commuter or foreign air carrier permit or exemption authority, must file a statement that complies with §§ 302.3 and 302.4 of this chapter registering its intended name with the Air Carrier Fitness Division if it is a U.S. certificated or commuter carrier, or within the Foreign Air Carrier Licensing Divisionif it is a foreign air carrier.
            (b) Montreal Agreement. Each registration under this section shall be accompanied by three copies of a counterpart to the Montreal Agreement (Agreement 18900) (OST Form 4523) signed by the carrier using the proposed name. Upon arrival of the application, the Department will place a copy of the signed OST form 4523 in Docket DOT-OST-1995-236.
            (Reporting and recordkeeping requirements in paragraph (b) were approved by the Office of Management and Budget under control number 3024-0064.)
            [53 FR 17923, May 19, 1988, as amended at 70 FR 25768, May 16, 2005; Doc. No. DOT-OST-2014-0140, 84 FR 15925, Apr. 16, 2019]

            § 215.5
            Procedure in case of similarity of names.
            The Department will compare the proposed name in any registration filed under this part or in an application for new, reissued, or transferred authority with a list of names used by existing certificated, commuter and foreign direct air carriers. The Department will notify the applicant of any other certificated, foreign or commuter carriers that may have an identical or similar name. The registrant must then notify those carriers of its registration. The notification will identify the applicant and state its proposed name or the name requested, area of operation or proposed area of operation, type of business, and other pertinent matters. The registrant must then file a certificate of service of the notification with the Department.

            § 215.6
            Acknowledgment of registration.
            After completion of the filing and notification requirements of this part, the Department may acknowledge the registration by notice in the action granting the application for initial operating authority, transfer, or reissuance or by separate notice in the case of use of a trade name. Non-action under this provision shall not be construed as an adjudication of any rights or liabilities.
            [53 FR 17923, May 19, 1988, as amended at 70 FR 25768, May 16, 2005]

          Pt. 216
          PART 216—COMMINGLING OF BLIND SECTOR TRAFFIC BY FOREIGN AIR CARRIERS

            Sec.
            216.1
            Definitions.

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

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

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

            § 216.1
            Definitions.
            (a) As used in this part, unless the context otherwise requires:

              Blind sector traffic means revenue traffic, carried by a foreign air carrier on a flight operating in air transportation, which is enplaned at one foreign point and deplaned at another foreign point, where at least one of such points is not named as a terminal or intermediate point in the carrier's applicable foreign air carrier permit.

              Note:

              This definition shall not be deemed to include the carriage of authorized beyond homeland traffic (i.e., traffic carried between a point named in a carrier's foreign air carrier permit and a point beyond a homeland terminal point authorized under such permit).

              Revenue traffic means persons, property or mail carried for compensation or hire.
            (b) Terms defined in 49 U.S.C. 40102 have the meaning expressed in such definitions.
            [ER-525, 33 FR 692, Jan. 19, 1968, as amended by Doc. No. DOT-OST-2014-0140, 84 FR 15926, Apr. 16, 2019]

            § 216.2
            Applicability.
            This part sets forth the requirements applicable to foreign air carriers for obtaining a Special Authorization from the Department with respect to any deviation from an authorized foreign air transportation route for the purpose of commingling blind sector traffic with air transportation traffic carried pursuant to a foreign air carrier permit issued by the Department. The deviation by a foreign air carrier from its authorized route for the purpose of combined carriage to or from the United States of nonrevenue or other traffic, the carriage of which does not constitute engaging in foreign air transportation, is governed by the provisions of part 375 of this chapter.
            [ER-525, 33 FR 692, Jan. 19, 1968, as amended by Doc. No. DOT-OST-2014-0140, 84 FR 15926, Apr. 16, 2019]

            § 216.3
            Prohibition.
            No foreign air carrier shall carry any blind sector traffic, as defined in this part, on any flight operating in air transportation pursuant to the authority of a foreign air carrier permit issued under 49 U.S.C. 41301, unless the combined carriage of such traffic has been specifically authorized by such permit, or by a Special Authorization issued under § 216.4.
            [ER-525, 33 FR 692, Jan. 19, 1968, as amended by Doc. No. DOT-OST-2014-0140, 84 FR 15926, Apr. 16, 2019]

            § 216.4
            Special authorizations.
            (a) Applications. Any foreign air carrier may apply to the Department for a Special Authorization, as required by this part, for the carriage of blind sector traffic on a particular flight, series of flights, or for a specified or indefinite period of time between specified points. Applications shall be submitted directly to the Department, addressed to the attention of the Director, Office of International Aviation. One original and two copies in conformity with the requirements of §§ 302.3(b) and 302.4 (a) and (b) of this chapter shall be filed. The applications shall contain a proper identification of the applicant; the flight or flights upon which it is proposed to carry such blind sector traffic, including routing, nontraffic stops, and dates or duration of the authority sought; a full description of such traffic, and points between which such traffic will be carried; information or documentation as to whether the country of which the applicant is a national grants reciprocal privileges to U.S. carriers; and the reasons for requesting such authorization together with such additional information as will establish that the grant of such authority will otherwise be in the public interest. Such additional information as may be specifically requested by the Department shall also be furnished.
            (b) Service. Applications shall be served upon each direct U.S. air carrier certificated to engage in individually ticketed or waybilled foreign air transportation over any portion of the route to which the application pertains, and on such other persons as the Department may require, and proof of such service shall accompany the application as provided in § 302.7 of this chapter. Notice of such applications shall also be published in the Department's Weekly List of Applications Filed.
            (c) Memoranda in support or opposition. Any interested person may file a memorandum in support of or in opposition to the grant of an application. Such memorandum shall set forth in detail the reasons why it is believed that the application should be granted or denied and shall be accompanied by such data, including affidavits, which it is desired that the Department consider. Copies of the memorandum shall be served upon the applicant. Nothing in this subparagraph shall be deemed to preclude the Department from granting or denying an application when the circumstances so warrant without awaiting the filing of memoranda in support of or in opposition to the application.
            (d) Time for filing. (1) Applications seeking authority to engage in blind sector operations for a period of 3 months or longer, shall be submitted at least 60 days in advance of the proposed commencement of such operations. Memoranda in response to such an application shall be submitted within 15 days after the date of filing thereof.

            (2) Applications seeking authority to engage in blind sector operations for a period less than three months shall be filed at least 20 days in advance of the proposed commencement of such operations, and memoranda in response thereto within 7 days after the date of filing thereof: Provided, That the Department may consider late filed applications upon a showing of good cause for failure to adhere to this requirement.
            (e) General procedural requirements. Except as otherwise provided herein, the provisions of part 302, subpart A, of this chapter shall apply to the extent applicable.
            (f) Issuance of Special Authorization. A Special Authorization authorizing the carriage of blind sector traffic will be issued only if the Department finds that the proposed carriage is fully consistent with applicable law and this part, and that grant of such authority would be in the public interest. The application may be granted or denied in whole or in part without hearing, and a Special Authorization made subject to any conditions or limitations, to the extent that such action is deemed by the Department to be in the public interest. Special Authorizations are not transferable.
            (g) Nature of the privilege conferred. A Special Authorization issued pursuant to this section shall constitute a privilege conferred upon a carrier, which may be enjoyed only to the extent that its continued exercise remains in the interest of the public. Accordingly, any Special Authorization issued pursuant to this section may be revoked, suspended, amended or restricted without hearing.
            (Sec. 204(a) of the Federal Aviation Act of 1958, as amended, 72 Stat. 743 (49 U.S.C. 1324); Reorganization Plan No. 3 of 1961, 75 Stat. 837, 26 FR 5989 (49 U.S.C. 1324 (note)))
            [ER-525, 33 FR 692, Jan. 19, 1968, as amended by ER-910, 40 FR 23844, June 3, 1975; ER-1060, 43 FR 34117, Aug. 3, 1978; 65 FR 6456, Feb. 9, 2000; Doc. No. DOT-OST-2014-0140, 84 FR 15926, Apr. 16, 2019]

            § 216.5
            Existing permits.
            “Foreign aircraft permits” issued by the Department under the provisions of part 375 of this chapter (the Department's Special Regulations), authorizing the combined carriage of blind sector traffic as defined in this part, shall continue in effect in accordance with their terms until their expiration date unless sooner terminated, revoked or modified by the Department. Such permits shall, upon the effective date of this part, be deemed to constitute a Special Authorization issued pursuant to § 216.4.
            [ER-525, 33 FR 692, Jan. 19, 1968, as amended by Doc. No. DOT-OST-2014-0140, 84 FR 15926, Apr. 16, 2019]

            § 216.6
            Existing unauthorized operations.

            Notwithstanding the provisions of § 216.3, if within 30 days after the effective date of this part a carrier files an application for a Special Authorization to continue to perform existing blind sector operations which have been regularly performed by such carrier commencing on a date prior to August 9, 1967, such carrier may continue to engage in such blind sector operations until final decision by the Department on such application: Provided, That any such application shall, in addition to the requirements of § 216.4(a), contain a statement that the carrier is relying upon this section for continuance of preexisting blind sector operations, and shall fully describe such operations including the date inaugurated, and the frequency and continuity of performance.
            [ER-525, 33 FR 692, Jan. 19, 1968, as amended by Doc. No. DOT-OST-2014-0140, 84 FR 15926, Apr. 16, 2019]

          Pt. 217
          PART 217—REPORTING TRAFFIC STATISTICS BY FOREIGN AIR CARRIERS IN CIVILIAN SCHEDULED, CHARTER, AND NONSCHEDULED SERVICES

            Sec.
            217.1
            Definitions.
            217.2
            Applicability.
            217.3
            Reporting requirements.
            217.4
            Data collected (service classes).
            217.5
            Data collected (data elements).
            217.6
            Extension of filing time.
            217.7
            Certification.
            217.8
            Reporting procedures.
            217.9
            Waivers from reporting requirements.
            217.10
            Instructions.
            217.11
            Reporting compliance.
            Appendix A to Part 217—Instructions to Foreign Air Carriers for Reporting Traffic Data on Form 41 Schedule T-100(f)

            Authority:
            49 U.S.C. 329, 41102, 41301, 41708, and 41709.

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

            § 217.1
            Definitions.
            As used in this part:

              Foreign Air Carrier means a non-U.S. air carrier holding a foreign air carrier permit or exemption authority from the Department of Transportation.

              Nonrevenue passenger means: a person traveling free or under token charges, except those expressly named in the definition of revenue passenger; a person traveling at a fare or discount available only to employees or authorized persons of air carriers or their agents or only for travel on the business of the carriers; and an infant who does not occupy a seat. (This definition is for 14 CFR part 217 traffic reporting purposes and may differ from the definitions used in other parts by the Federal Aviation Administration and the Transportation Security Administration for the collection of Passenger Facility Charges and Security Fees.)
            The definition includes, but is not limited to the following examples of passengers when traveling free or pursuant to token charges:
            (1) Directors, officers, employees, and others authorized by the air carrier operating the aircraft;
            (2) Directors, officers, employees, and others authorized by the air carrier or another carrier traveling pursuant to a pass interchange agreement;
            (3) Travel agents being transported for the purpose of familiarizing themselves with the carrier's services;
            (4) Witnesses and attorneys attending any legal investigation in which such carrier is involved;
            (5) Persons injured in aircraft accidents, and physicians, nurses, and others attending such persons;
            (6) Any persons transported with the object of providing relief in cases of general epidemic, natural disaster, or other catastrophe;
            (7) Any law enforcement official, including any person who has the duty of guarding government officials who are traveling on official business or traveling to or from such duty;
            (8) Guests of an air carrier on an inaugural flight or delivery flights of newly-acquired or renovated aircraft;
            (9) Security guards who have been assigned the duty to guard such aircraft against unlawful seizure, sabotage, or other unlawful interference;
            (10) Safety inspectors of the National Transportation Safety Board or the FAA in their official duties or traveling to or from such duty;
            (11) Postal employees on duty in charge of the mails or traveling to or from such duty;

            (12) Technical representatives of companies that have been engaged in the manufacture, development or testing of a particular type of aircraft or aircraft equipment, when the transportation is provided for the purpose of in-flight observation and subject to applicable FAA regulations;
            (13) Persons engaged in promoting air transportation;
            (14) Air marshals and other Transportation Security officials acting in their official capacities and while traveling to and from their official duties; and
            (15) Other authorized persons, when such transportation is undertaken for promotional purpose.

              Reporting carrier for T-100(f) purposes means the air carrier in operational control of the flight, i.e., the carrier that uses its flight crews under its own operating authority.

              Revenue passenger means: a passenger for whose transportation an air carrier receives commercial remuneration. (This definition is for 14 CFR part 217 traffic reporting purposes and may differ from the definitions used in other parts by the Federal Aviation Administration and the Transportation Security Administration for the collection of Passenger Facility Charges and Security Fees.) This includes, but is not limited to, the following examples:
            (1) Passengers traveling under publicly available tickets including promotional offers (for example two-for-one) or loyalty programs (for example, redemption of frequent flyer points);
            (2) Passengers traveling on vouchers or tickets issued as compensation for denied boarding or in response to consumer complaints or claims;
            (3) Passengers traveling at corporate discounts;
            (4) Passengers traveling on preferential fares (Government, seamen, military, youth, student, etc.);
            (5) Passengers traveling on barter tickets; and
            (6) Infants traveling on confirmed-space tickets.

              Statement of Authorization under this part means a statement of authorization from the Department, pursuant to 14 CFR part 207, 208, or 212, as appropriate, that permits joint service transportation, such as blocked space agreements, part-charters, code-sharing or wet-leases, between two direct air carriers holding underlying economic authority from the Department.

              Wet-Lease Agreement means an agreement under which one carrier leases an aircraft with flight crew to another air carrier.
            [53 FR 46294, Nov. 16, 1988, as amended at 67 FR 49223, July 30, 2002; 67 FR 58689, Sept. 18, 2002]

            § 217.2
            Applicability.
            This part applies to foreign air carriers that are authorized by the Department to provide civilian passenger and/or cargo service to or from the United States, whether performed pursuant to a permit or exemption authority.
            [Doc. No. OST-98-4043, 67 FR 49223, July 30, 2002]

            § 217.3
            Reporting requirements.
            (a) Each foreign air carrier shall file BTS Form 41 Schedule T-100(f) “Foreign Air Carrier Traffic Data by Nonstop Segment and On-flight Market.” All traffic statistics shall be compiled in terms of each flight stage as actually performed.
            (b) The traffic statistics reported on Schedule T-100(f) shall be accumulated in accordance with the data elements prescribed in § 217.5 of this part, and these data elements are patterned after those in section 19-5 of part 241 of this chapter.
            (c) One set of Form 41 Schedule T-100(f) data shall be filed.
            (d) Schedule T-100(f) shall be submitted to the Department within thirty (30) days following the end of each reporting month.
            (e) Reports required by this section shall be submitted to the Bureau of Transportation Statistics in a format specified in accounting and reporting directives issued by the Bureau of Transportation Statistics' Director of Airline Information.
            [53 FR 46294, Nov. 16, 1988, as amended at 60 FR 66722, Dec. 26, 1995; 75 FR 41583, July 16, 2010]

            § 217.4
            Data collected (service classes).

            (a) The statistical classifications are designed to reflect the operating elements attributable to each distinctive class of service offered for scheduled, nonscheduled and charter service.

            (b) The service classes that foreign air carriers shall report on Schedule T-100(f) are:
            (1) F Scheduled Passenger/Cargo
            (2) G Scheduled All-Cargo
            (3) L Nonscheduled Civilian Passenger/Cargo Charter
            (4) P Nonscheduled Civilian All-Cargo Charter
            (5) Q Nonscheduled Services (Other than Charter). This service class is reserved for special nonscheduled cargo flights provided by a few foreign air carriers under special authority granted by the Department.

            § 217.5
            Data collected (data elements).
            (a) Within each of the service classifications prescribed in § 217.4, data shall be reported in applicable traffic elements.
            (b) The statistical data to be reported on Schedule T-100(f) are:
            (1) Air carrier. The name and code of the air carrier reporting the data. The carrier code is assigned by DOT. The Office of Airline Information (OAI'S) will confirm the assigned code upon request; OAI's address is in appendix A of this part.
            (2) Reporting period date. The year and month to which the reported data are applicable.
            (3) Origin airport code. This code represents the industry designator as described in appendix A of this part. A common private industry source of these industry designator codes is the Official Airline Guides (OAG). Where none exists, OAI will furnish a code upon request. OAI's address is in appendix A of this part.
            (4) Destination airport code. This represents the industry designator, from the source described in § 217.5(b)(3).
            (5) Service class code. For scheduled and other services, the applicable service class prescribed in § 217.4 of this part shall be reported.
            (6) Aircraft type code. This code represents the aircraft type, as specified in appendix A of this part. Where none exists, OAI will furnish a code upon request.
            (7) Revenue aircraft departures performed (Code 510). The number of revenue aircraft departures performed.
            (8) Revenue passengers transported (Code 130). The total number of revenue passengers on board over a flight stage, including those already on the aircraft from previous flight stages. Includes both local and through passengers on board the aircraft.
            (9) Revenue freight transported (kilograms) (Code 237). The volume, expressed in kilograms, of revenue freight that is transported. As used in this part, “Freight” means revenue cargo other than passengers or mail.
            (10) Total revenue passengers in market (Code 110). The total number of revenue passengers enplaned in a market, boarding the aircraft for the first time. While passengers may be transported over several flight stages in a multi-segment market, this data element (code 110) is an unduplicated count of passengers originating within the market.
            (11) Total revenue freight in market (kilograms) (Code 217). The amount of revenue freight cargo (kilograms) that is enplaned in a market, loaded on the aircraft for the first time.
            (12) Available capacity-payload (Code 270). The available capacity is collected in kilograms. This figure shall reflect the available load (see load, available in 14 CFR part 241 Section 03) or total available capacity for passengers, mail and freight applicable to the aircraft with which each flight stage is performed.
            (13) Available seats (Code 310). The number of seats available for sale. This figure reflects the actual number of seats available, excluding those blocked for safety or operational reasons. Report the total available seats in item 310.
            [53 FR 46294, Nov. 16, 1988 and 53 FR 52404, Dec. 28, 1988, as amended at 54 FR 7183, Feb. 17, 1989; 60 FR 66722, Dec. 26, 1995; 62 FR 6718, Feb. 13, 1997; Doc. No. DOT-OST-2014-0140, 84 FR 15926, Apr. 16, 2019]

            § 217.6
            Extension of filing time.
            (a) If circumstances prevent the filing of a Schedule T-100(f) report on or before the due date prescribed in section 22 of part 241 of this chapter and appendix A of this part, a request for an extension must be filed with the Director, Office of Airline Information.

            (b) The extension request must be received at the address provided in § 217.10 at least 3 days in advance of the due date, and must set forth reasons to justify granting an extension, and the date when the report can be filed. If a request is denied, the air carrier must submit the required report within 5 days of its receipt of the denial of extension.
            [53 FR 46294, Nov. 16, 1988, as amended at 60 FR 66722, Dec. 26, 1995; Doc. No. DOT-OST-2014-0140, 84 FR 15926, Apr. 16, 2019]

            § 217.7
            Certification.
            The certification for BTS Form 41 Schedule T-100(f) shall be signed by an officer of the air carrier with the requisite authority over the collection of data and preparation of reports to ensure the validity and accuracy of the reported data.
            [53 FR 46294, Nov. 16, 1988, as amended at 60 FR 66722, Dec. 26, 1995]

            § 217.8
            Reporting procedures.
            Reporting guidelines and procedures for Schedule T-100(f) are prescribed in appendix A of this part.
            [53 FR 46294, Nov. 16, 1988, as amended by Doc. No. DOT-OST-2014-0140, 84 FR 15926, Apr. 16, 2019]

            § 217.9
            Waivers from reporting requirements.
            (a) A waiver from any reporting requirement contained in Schedule T-100(f) may be granted by the Department upon its own initiative, or upon the submission of a written request of the air carrier to the Director, Office of Airline Information, when such a waiver is in the public interest.
            (b) Each request for waiver must demonstrate that: Existing peculiarities or unusual circumstances warrant a departure from the prescribed procedure or technique; a specifically defined alternative procedure or technique will result in substantially equivalent or more accurate portrayal of the operations reported; and the application of such alternative procedure will not adversely affect the uniformity in reporting applicable to all air carriers.
            [53 FR 46294, Nov. 16, 1988, as amended at 60 FR 66722, Dec. 26, 1995]

            § 217.10
            Instructions.
            (a) Reports required by this section shall be submitted to the Bureau of Transportation Statistics in a format specified in accounting and reporting directives issued by the Bureau of Transportation Statistics' Director of Airline Information.
            (b) The detailed instructions for preparing Schedule T-100(f) are contained in appendix A to this part.
            [53 FR 46294, Nov. 16, 1988, as amended at 54 FR 7183, Feb. 17, 1989; 60 FR 66722, Dec. 26, 1995; 67 FR 49223, July 30, 2002; 75 FR 41583, July 16, 2010; DOT-OST-2014-0140, 84 FR 15926, Apr. 16, 2019]

            § 217.11
            Reporting compliance.
            (a) Failure to file reports required by this part will subject an air carrier to civil penalties prescribed in Title 49 United States Code section 46301.
            (b) Title 18 U.S.C. 1001, Crimes and Criminal Procedure, makes it a criminal offense to knowingly and willfully make, or cause to be made, any false or fraudulent statements or representations in any matter within the jurisdiction of any agency of the United States.
            [53 FR 46294, Nov. 16, 1988, as amended at 67 FR 49223, July 30, 2002; DOT-OST-2014-0140, 84 FR 15926, Apr. 16, 2019]

            Pt. 217, App. A
            Appendix A to Part 217—Instructions to Foreign Air Carriers for Reporting Traffic Data on Form 41 Schedule T-100(f)
            (a) General instructions.
            (1) Description. Form 41 Schedule T-100(f) provides flight stage data covering both passenger/cargo and all cargo operations in scheduled and nonscheduled services. The schedule is used to report all flights which serve points in the United States or its territories as defined in this part.
            (2) Applicability. Each foreign air carrier holding a section 41302 permit or exemption authority shall file Schedule T-100(f).
            (3) Reports required by this section shall be submitted to the Bureau of Transportation Statistics in a format specified in accounting and reporting directives issued by the Bureau of Transportation Statistics' Director of Airline Information.

            (4) Filing period. Form 41 Schedule T-100(f) shall be filed monthly and is due at the Department thirty (30) days following the end of the reporting month to which the data are applicable.

            (b) Preparation of Form 41 Schedule T-100(f):
            (1) Explanation of nonstop segments and on-flight markets. There are two basic categories of data, one pertaining to nonstop segments and the other pertaining to on-flight markets. For example, the routing (A-B-C-D) consists of three nonstop segment records A-B, B-C, and C-D, and six on-flight market records A-B, A-C, A-D, B-C, B-D, and C-D.
            (2) Guidelines for reporting a nonstop segment. A nonstop segment is reported when one or both points are in the United States or its territories. These data shall be merged with that for all of the other reportable nonstop operations over the same segment. Nonstop segment data must be summarized by aircraft type, under paragraph (h)(1) of this appendix, and class of service, paragraph (g)(1)(v) of this appendix.
            (3) Rules for determining a reportable on-flight market. On-flight markets are reportable when one or both points are within the U.S., with the following exceptions: (i) Do not report third country to U.S. markets resulting from flight itineraries which serve a third country prior to a homeland point in flights passing through the homeland bound for the U.S.; and (ii) do not report U.S. to third country markets resulting from itineraries serving third country points subsequent to a homeland point in flights outbound from the U.S. and passing through the homeland. In reporting data pertaining to these two exceptions, the traffic moving to or from the U.S. relating to the applicable prior or subsequent third countries (referred to as “behind” or “beyond” traffic) is to be combined with the applicable foreign homeland gateway point, just as though the traffic were actually enplaned or deplaned at the homeland gateway, without disclosure of the actual prior or subsequent points. Applicable flights are illustrated in examples (6) and (7) under paragraph (c) of this appendix.
            (c) Examples of flights. Following are some typical flight itineraries that show the reportable nonstop segment and on-flight market entries. The carrier's homeland is the key factor in determining which on-flight markets are reportable.

            (1) SQ flight # 11 LAX—NRT—SIN. This is an example of a flight with an intermediate foreign country. It is not necessary to report anything on the NRT—SIN leg.

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

                A-3—Airport code
                Origin
                A-4—Airport code
                Destination
                A-5—Service class(mark an X)

                F
                G
                L
                P
                Q
                By aircraft type—
                B-1—Aircraft type code
                B-2—Revenue
                  aircraft
                  departures

                B-3—Revenue
                  passengers
                  transported

                B-4—Revenue
                  freight
                  transported
                  (kg)

                Sum of all aircraft types—
                C-1—Total revenuepassengers
                  in market

                C-2—Total revenue freight in market (kg)

                LAX
                NRT
                X

                8161
                12
                2400
                4800
                400
                500

                LAX
                SIN
                X

                2000
                4300

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

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

                A-3—Airport code
                Origin
                A-4—Airport code
                Destination
                A-5—Service class(mark an X)

                F
                G
                L
                P
                Q
                By aircraft type—
                B-1—Aircraft type code
                B-2—Revenue
                  aircraft
                  departures

                B-3—Revenue
                  passengers
                  transported

                B-4—Revenue
                  freight
                  transported
                  (kg)

                Sum of all aircraft types—
                C-1—Total revenuepassengers
                  in market

                C-2—Total revenue freight in market (kg)

                LAX
                HNL
                X

                8161
                12
                2700
                5300
                0
                0

                LAX
                TPE
                X

                700
                1300

                LAX
                SIN
                X

                2000
                4000

                HNL
                TPE
                X

                8161
                12
                2200
                6800
                1200
                800

                HNL
                SIN
                X

                1000
                6000

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

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

                A-3—Airport code
                Origin
                A-4—Airport code
                Destination
                A-5—Service class(mark an X)

                F
                G
                L
                P
                Q
                By aircraft type—
                B-1—Aircraft type code
                B-2—Revenue
                  aircraft
                  departures

                B-3—Revenue
                  passengers
                  transported

                B-4—Revenue
                  freight
                  transported
                  (kg)

                Sum of all aircraft types—
                C-1—Total revenuepassengers
                  in market

                C-2—Total revenue freight in market (kg)

                CCS
                MIA
                X

                8161
                31
                6900
                71000
                0
                0

                LPB
                MIA
                X

                1100
                20000

                VVI
                MIA
                X

                4000
                30000

                MAO
                MIA
                X

                1000
                12000

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

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

                A-3—Airport code
                Origin
                A-4—Airport code
                Destination
                A-5—Service class(mark an X)

                F
                G
                L
                P
                Q
                By aircraft type—
                B-1—Aircraft type code
                B-2—Revenue
                  aircraft
                  departures

                B-3—Revenue
                  passengers
                  transported

                B-4—Revenue
                  freight
                  transported
                  (kg)

                Sum of all aircraft types—
                C-1—Total revenuepassengers
                  in market

                C-2—Total revenue freight in market (kg)

                AMS
                ORD
                X

                8161
                1
                350
                10000
                50
                1500

                TLV
                ORD
                X

                150
                4000

                TLV
                LAX
                X

                125
                3000

                ORD
                LAX
                X

                8161
                1
                150
                4500
                0
                0

                AMS
                LAX
                X

                25
                1500

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

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

                A-3—Airport code
                Origin
                A-4—Airport code
                Destination
                A-5—Service class(mark an X)

                F
                G
                L
                P
                Q
                By aircraft type—
                B-1—Aircraft type code
                B-2—Revenue
                  aircraft
                  departures

                B-3—Revenue
                  passengers
                  transported

                B-4—Revenue
                  freight
                  transported
                  (kg)

                Sum of all aircraft types—
                C-1—Total revenuepassengers
                  in market

                C-2—Total revenue freight in market (kg)

                CNS
                HNL
                X

                8161
                5
                2200
                41000
                400
                8000

                SYD
                HNL
                X

                600
                10000

                BNE
                HNL
                X

                600
                9000

                HNL
                YVR
                X

                8161
                5
                750
                15700
                150
                1700

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

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

                A-3—Airport code
                Origin
                A-4—Airport code
                Destination
                A-5—Service class(mark an X)

                F
                G
                L
                P
                Q
                By aircraft type—
                B-1—Aircraft type code
                B-2—Revenue
                  aircraft
                  departures

                B-3—Revenue
                  passengers
                  transported

                B-4—Revenue
                  freight
                  transported
                  (kg)

                Sum of all aircraft types—
                C-1—Total revenuepassengers
                  in market

                C-2—Total revenue freight in market (kg)

                NRT
                SFO
                X

                8161
                3
                1200
                18000
                1200
                18000

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

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

                A-3—Airport code
                Origin
                A-4—Airport code
                Destination
                A-5—Service class(mark an X)

                F
                G
                L
                P
                Q
                By aircraft type—
                B-1—Aircraft type code
                B-2—Revenue
                  aircraft
                  departures

                B-3—Revenue
                  passengers
                  transported

                B-4—Revenue
                  freight
                  transported
                  (kg)

                Sum of all aircraft types—
                C-1—Total revenuepassengers
                  in market

                C-2—Total revenue freight in market (kg)

                SFO
                NRT
                X

                8161
                1
                400
                20000
                400
                20000

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

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

                A-3—Airport code
                Origin
                A-4—Airport code
                Destination
                A-5—Service class(mark an X)

                F
                G
                L
                P
                Q
                By aircraft type—
                B-1—Aircraft type code
                B-2—Revenue
                  aircraft
                  departures

                B-3—Revenue
                  passengers
                  transported

                B-4—Revenue
                  freight
                  transported
                  (kg)

                Sum of all aircraft types—
                C-1—Total revenuepassengers
                  in market

                C-2—Total revenue freight in market (kg)

                LHR
                ANC
                X

                8161
                10
                3000
                50000
                100
                1000

                ANC
                NRT
                X

                8161
                10
                3150
                55000
                100
                2500

                ANC
                OSA
                X

                150
                1500

            (d) Provisions to reduce paperwork:
            (1) Nonstop Segment Entries. The flight stage data applicable to nonstop segment entries must be summarized to create totals by aircraft equipment type, within service class, within pairs-of-points.
            (2) On-flight Market Entries. The applicable on-flight market entries shall be summarized to create totals by service class within pair-of-points.
            (e) Preparation of Schedule T-100 (f):
            (1) Section A—Indicative and flight pattern information. A copy of Schedule T-100(f) is shown at the end of this appendix. Section A defines the origin and destination points and the service class code to which the nonstop segment data in Section B and the on-flight market data in Section C are applicable. Section A information, along with the carrier code and report date, must be included on each schedule.
            (2) Section B—Nonstop segment information. Section B of the schedule is used for reporting nonstop segment information by aircraft type. To reduce the number of schedules reported, space is provided for including data on multiple different aircraft types. Similarly, the on-flight market section has been included on a single Schedule T-100(f), along with the nonstop segment data, rather than on a separate schedule.
            (3) Section C—On-flight market information. Section C of the schedule is used for reporting on-flight market data. There will always be an on-flight market that corresponds to the nonstop segment. Because the on-flight market data are reported at the service class level rather than by aircraft type, a specific flight may produce more on-flight markets than nonstop segments, (see examples in paragraph (c) of this appendix), resulting in data reported in sections A and C only.
            (f) [Reserved]
            (g) Data element definitions:
            (1) Service pattern information.
            (i) Line A-1 Carrier code. Use the carrier code established by the Department. This code is provided to each carrier in the initial reporting letter from the Office of Airline Information (OAI). If there are any questions about these codes, contact the OAI Data Administration Division at the address in paragraph (a)(3) of this appendix.

            (ii) Line A-2 Report date. This is the year and month to which the data are applicable. For example, 200009 indicates the year 2000, and the month of September.

            (iii) Line A-3 Origin airport code. This is the departure airport, where an aircraft begins a flight segment, and where the passengers originate in an on-flight market. Use the 3-letter code from the City/Airport Codes section of the Official Airline Guide Worldwide Edition. If no 3-letter code is available, OAI will assign one; the address is in paragraph (a)(3) of this appendix.
            (iv) Line A-4 Destination airport code. This is the arrival airport, where an aircraft stops on a flight segment, and where passengers deplane (get off the flight) after reaching their destination in a market. Use the 3-letter code from the source described in paragraph (g)(1)(iii) of this appendix.

            (v) Line A-5 Service class code. Select one of the following single letter codes which describes the type of service being reported on a given flight operation.

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

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

            (2) Joint-service operations shall be reported on BTS Form 41 Schedules T-100 and T-100(f) by the air carrier in operational control of the flight, i.e., the air carrier that uses its flight crew to perform the operation. If there are questions about reporting a joint-service operation, contact the BTS Assistant Director—Airline Information at the address in paragraph (a)(3) of this appendix.
            (j) [Reserved]
            [Doc. No. DOT-OST-2014-0140, 84 FR 15926, Apr. 16, 2019]

          Pt. 218
          PART 218—LEASE BY FOREIGN AIR CARRIER OR OTHER FOREIGN PERSON OF AIRCRAFT WITH CREW

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

            Authority:
             49 U.S.C. 40113 and 41301.

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

            § 218.1
            Definitions.
            For the purpose of this part the term lease shall mean an agreement under which an aircraft is furnished by one party to the agreement to the other party, irrespective of whether the agreement constitutes a true lease, charter arrangement, or some other arrangement.

            § 218.2
            Applicability.

            This part applies to foreign air carriers and other persons not citizens of the United States which, as lessors or lessees, enter into agreements providing for the lease of aircraft with crew to a foreign air carrier for use in foreign air transportation. For purposes of 49 U.S.C. 41301, the person who has operational control and safety responsibility is deemed to be the carrier, and is required to have appropriate operating authority.
            [ER-716, 36 FR 23148, Dec. 4, 1971, as amended by ER-1250, 46 FR 47770, Sept. 30, 1981; DOT-OST-2014-0140, 84 FR 15929, Apr. 16, 2019]

            § 218.3
            Prohibition against unauthorized operations employing aircraft leased with crew.
            (a) No foreign air carrier, or other person not a citizen of the United States, shall lease an aircraft with crew to a foreign air carrier for use by the latter in performing foreign air transportation unless either:
            (1) The lessor holds a foreign air carrier permit issued under 49 U.S.C. 41301 or an approved registration issued under part 294 of this chapter, and any statement of authorization required by part 212 of this chapter; or
            (2) The Department has issued an exemption under 49 U.S.C. 40109 specifically authorizing the lessor to engage in the foreign air transportation to be performed under the lease; or
            (3) The Department has issued an order under § 218.6 disclaiming jurisdiction over the matter.
            (b) For purposes of this part, an aircraft shall be considered to be leased with crew if:
            (1) The pilot in command or a majority of the crew of the aircraft, other than cabin attendants:
            (i) Is to be furnished by the lessor;
            (ii) Is employed by the lessor;
            (iii) Continues in the employ of the lessor in the operation of services other than those provided for in the agreement between the parties; or
            (iv) Has been employed by the lessor prior to the lease, and the employment of whom by the lessee is coextensive with the period or periods for which the aircraft is available to the lessee under the lease; or
            (2) The aircraft is operated under operations specifications issued to the lessor by the Federal Aviation Administration.
            [ER-716, 36 FR 23148, Dec. 4, 1971, as amended by ER-1250, 46 FR 47770, Sept. 30, 1981; ER-1260, 46 FR 52598, Oct. 27, 1981; DOT-OST-2014-0140, 84 FR 15929, Apr. 16, 2019]

            § 218.4
            Condition upon authority of lessee.
            In any case where a foreign air carrier leases from another foreign air carrier or other person not a citizen of the United States an aircraft with crew for use in performing foreign air transportation, it shall be a condition upon the authority of the lessee to perform such foreign air transportation that compliance be achieved with the requirements of this part.

            § 218.5
            Application for disclaimer of jurisdiction.
            The parties to a lease with crew as described in § 218.3(b) may apply to the Department for an order disclaiming jurisdiction over the matter. The application shall be filed jointly by both parties to the lease, and shall generally conform to the procedural requirements of part 302, subpart A, of this chapter. It shall be served upon any air carrier providing services over all or any part of the route upon which air transportation services will be provided pursuant to the agreement. The application should set forth in detail all evidence and other factors relied upon to demonstrate that true operational control and safety responsibility for the air transportation services to be provided are in the hands of the lessee rather than the lessor. A copy of the agreement and all amendments thereof, as well as a summary interpretation of its pertinent provisions, shall be included with the applications. Any interested person may file an answer to the application within 7 days after service hereof. Until the Department has acted upon the application, no operations in foreign transportation shall be performed pursuant to the agreement.
            [ER-716, 36 FR 23148, Dec. 4, 1971, as amended by DOT-OST-2014-0140, 84 FR 15929, Apr. 16, 2019]

            § 218.6
            Issuance of order disclaiming jurisdiction.

            If the Department finds that true operational control and safety responsibility will be vested in the lessee and not in the lessor (i.e., that the lease transaction is in substance a true lease of aircraft rather than a charter or series of charters), and that the performance of the operations provided for in such lease will not result in the lessor's being engaged in foreign air transportation, it will issue an order disclaiming jurisdiction over the matter. Otherwise the application for disclaimer of jurisdiction will be denied.
            [ER-716, 36 FR 23148, Dec. 4, 1971, as amended by DOT-OST-2014-0140, 84 FR 15929, Apr. 16, 2019]

            § 218.7
            Presumption.
            Whether under a particular lease agreement the lessor of the aircraft is engaged in foreign air transportation is a question of fact to be determined in the light of all the facts and circumstances. However, in circumstances where the lessor furnishes both the aircraft and the crew, there is a presumption that true operational control and safety responsibility are exercised by the lessor, and that the agreement constitutes a charter arrangement under which the lessor is engaged in foreign air transportation. The burden shall rest upon the applicants for disclaimer of jurisdiction in each instance to demonstrate by an appropriate factual showing that the operation contemplated will not constitute foreign air transportation by the lessor.

          Pt. 221
          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 under international treaty.
              221.106
              [Reserved]
              221.107
              Notice of contract terms.
              221.108
              Transmission of tariff filings to subscribers.

              Subpart L—Rejection of Tariff Publications
              221.110
              Department's authority to reject.
              221.111
              Notification of rejection.
              221.112
              Rejected tariff is void and must not be used.

              Subpart M—Special Tariff Permission to File on Less Than Statutory Notice
              221.120
              Grounds for approving or denying Special Tariff Permission applications.
              221.121
              How to prepare and file applications for Special Tariff Permission.
              221.122
              Special Tariff Permission to be used in its entirety as granted.
              221.123
              Re-use of Special Tariff Permission when tariff is rejected.

              Subpart N—Waiver of Tariff Regulations
              221.130
              Applications for waiver of tariff regulations.
              221.131
              Form of application for waivers.

              Subpart O—Giving and Revoking Concurrences to Carriers
              221.140
              Method of giving concurrence.
              221.141
              Method of revoking concurrence.
              221.142
              Method of withdrawing portion of authority conferred by concurrence.

              Subpart P—Giving and Revoking Powers of Attorney to Agents
              221.150
              Method of giving power of attorney.
              221.151
              Method of revoking power of attorney.
              221.152
              Method of withdrawing portion of authority conferred by power of attorney.

              Subpart Q—Adoption Publications Required To Show Change in Carrier's Name or Transfer of Operating Control
              221.160
              Adoption notice.
              221.161
              Notice of adoption to be filed in former carrier's tariffs.
              221.162
              Receiver shall file adoption notices.
              221.163
              Agents' and other carriers' tariffs shall reflect adoption.
              221.164
              Concurrences or powers of attorney to be reissued.
              221.165
              Cessation of operations without successor.

              Subpart R—Electronically Filed Tariffs
              221.170
              Applicability of the subpart.
              221.180
              Requirements for electronic filing of tariffs.
              221.190
              Time for filing and computation of time periods.
              221.195
              Requirement for filing printed material.
              221.200
              Content and explanation of abbreviations, reference marks and symbols.
              221.201
              Statement of filing with foreign governments to be shown in air carrier's tariff filings.
              221.202
              The filing of tariffs and amendments to tariffs.
              221.203
              Unique rule numbers required.
              221.204
              Adoption of provisions of one carrier by another carrier.
              221.205
              Justification and explanation for certain fares.
              221.206
              Statement of fares.
              221.210
              Suspension of tariffs.
              221.211
              Cancellation of suspended matter.
              221.212
              Special tariff permission.
              221.300
              Discontinuation of electronic tariff system.
              221.400
              Filing of paper tariffs required.
              221.500
              Transmission of electronic tariffs to subscribers.
              221.550
              Copies of tariffs made from filer's printer(s) located in Department's public reference room.
              221.600
              Actions under assigned authority and petitions for review of staff action.

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

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

            Editorial Note:
            Nomenclature changes to part 221 appear at 84 FR 15929, Apr. 16, 2019.

            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 49 U.S.C. Subtitle VII 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. (1) Except as provided in paragraph (d) of this section, every air carrier and every foreign air carrier shall file with the Department, and provide and keep open to public inspection, tariffs showing all fares, and charges for foreign air transportation between points served by it, and between points served by it and points served by any other air carrier or foreign air carrier, when through service and through rates shall have been established, and showing to the extent required by regulations and orders of the Department, all classifications, rules, regulations, practices, and services in connection with such foreign air transportation.
              (2) Tariffs shall be filed, and provided in such form and manner, and shall contain such information as the Department shall by regulation or order prescribe. Any tariff so filed which is not consistent with chapter 415 of 49 U.S.C. Subtitle VII 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 49 U.S.C. Subtitle VII, 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 49 U.S.C. Subtitle VII 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.

                CRT means a video display terminal that uses a cathode ray tube as the image medium.

                Capacity controlled fare means a fare for which a carrier limits the number of seats available for sale.

                Carrier means an air carrier or foreign air carrier subject to section 41504 of 49 U.S.C. subtitle VII.

                Charge means the amount charged for baggage, in excess of the free allowance, accompanying or checked by a passenger or for any other service ancillary to the passenger's carriage.

                Conditions of carriage means those rules of general applicability that define the rights and obligations of the carrier(s) and any other party to the contract of carriage with respect to the transportation services provided.

                Contract of carriage means those fares, rules, and other provisions applicable to the foreign air transportation of passengers or their baggage, as defined in the statute.

                Direct-service market means an international market where the carrier provides service either on a nonstop or single-flight-number basis, including change-of-gauge.

                Electronic tariff means an international passenger fares or rules tariff or a special tariff permission application transmitted to the Department by means of an electronic medium, and containing fares for the transportation of persons and their baggage, and including such associated data as arbitraries, footnotes, routings, and fare class explanations.

                Fare means the amount per passenger or group of persons stated in the applicable tariff for the air transportation thereof and includes baggage unless the context otherwise requires.

                Field means a specific area of a record used for a particular category of data.

                Filer means an air carrier, foreign air carrier, or tariff publishing agent of such a carrier filing tariffs on its behalf in conformity with this subpart.

                Item means a small subdivision of a tariff and identified by a number, a letter, or other definite method for the purpose of facilitating reference and amendment.

                Joint fare means a fare that applies to transportation over the joint lines or routes of two or more carriers and which is made and published by arrangement or agreement between such carriers evidenced by concurrence or power of attorney.

                Joint tariff means a tariff that contains joint fares.

                Local fare means a fare that applies to transportation over the lines or routes of one carrier only.

                Local tariff means a tariff that contains local fares.

                Machine-readable data means encoded computer data, normally in a binary format, which can be read electronically by another computer with the requisite software without any human interpretation.

                On-line tariff database means the remotely accessible, on-line version, maintained by the filer, of:
              (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.

                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.
              [64 FR 40657, July 27, 1999, as amended by Doc. No. DOT-OST-2014-0140, 84 FR 15929, Apr. 16, 2019]

              § 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 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.
              (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 “add-on” fares on each page where they appear.
              (b) A tariff may provide that fares from (or to) particular points shall be determined by the addition of add-ons to, or the deduction of add-ons from, fares therein which apply from (or to) a base point. Provisions for the addition or deduction of such add-ons shall be shown either directly in connection with the fare applying to or from the base point or in a separate provision which shall specifically name the base point. The tariff shall clearly and definitely state the manner in which such add-ons shall be applied.
              (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.
              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 49 U.S.C. Subtitle VII, 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 49 U.S.C. Subtitle VII 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 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 under international treaty.
              (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 an international treaty, shall, at the time of delivery of the ticket, furnish to each passenger whose transportation is governed by the international treaty 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 an international treaty (the Warsaw Convention, the 1999 Montreal Convention, or other treaty), as well as a carrier's own contract of carriage or tariff provisions, may be applicable to their entire journey, including any portion entirely within the countries of departure and destination. The applicable treaty governs and may limit the liability of carriers to passengers for death or personal injury, destruction or loss of, or damage to, baggage, and for delay of passengers and baggage.
              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 an international treaty. For further information please consult your airline or insurance company representative.
              (2) The statement prescribed in paragraph (a)(1) of this section shall be printed or displayed in type at least as large as 10-point modern type and in a form that contrasts with the stock or background on:
              (i) Each ticket, including electronic tickets;
              (ii) A piece of paper either placed in the ticket envelope with the ticket or attached to the ticket; or
              (iii) The ticket envelope.
              (3) When a carrier is a signatory of a Department-approved intercarrier agreement implementing an international treaty, and such agreement contains specific text a carrier may use as a notice to international passengers regarding carrier liability, the carrier may substitute the exact text contained in the intercarrier agreement in lieu of the required text of the notice quoted in paragraph (a)(1) of this section.
              (b) By December 31, 2019, each air carrier and foreign air carrier which, to any extent, avails itself of the limitation on liability to passengers provided by an international treaty, 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 an international treaty 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)(1) of this section.
              (c) It shall be the responsibility of each carrier to ensure that travel agents authorized to sell air transportation for such carrier comply with the notice provisions of paragraphs (a) and (b) of this section.
              (d) Any air carrier or foreign air carrier subject to the provisions of this section which wishes to use a notice of limited liability of its own wording, but containing the substance of the language prescribed in paragraphs (a) and (b) of this section, may substitute a notice of its own wording upon approval by the Department.

              (e) The requirements as to time and method of delivery of the notice (including the size of type) specified in paragraphs (a) and (b) of this section and the requirement with respect to travel agents specified in paragraph (c) of this section may be waived by the Department upon application and showing by the carrier that special and unusual circumstances render the enforcement of the regulations impractical and unduly burdensome and that adequate alternative means of giving notice are employed.

              (f) Applications for relief under paragraphs (d) and (e) of this section shall be filed with the Department's Office of International Aviation not later than 15 days before the date on which such relief is requested to become effective.
              (g) Notwithstanding any other provisions of this section, no air taxi operator subject to part 298 of this subchapter shall be required to give the notices prescribed in this section, either in its capacity as an air carrier or in its capacity as an agent for an air carrier or foreign air carrier.

              [Doc. No. DOT-OST-2014-0140, 84 FR 15929, Apr. 16, 2019]

              § 221.106
              [Reserved]

              § 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 49 U.S.C. Subtitle VII, 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.

              § 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 49 U.S.C. Subtitle VII.
              (b) Grounds for approval. The following facts and circumstances constitute some of the grounds for approving applications for Special Tariff Permission in the absence of other facts and circumstances warranting denial:
              (1) Clerical or typographical errors. Clerical or typographical errors in tariffs constitute grounds for approving applications for Special Tariff Permission to file on less than statutory notice the tariff changes necessary to correct such errors. Each application for Special Tariff Permission based on such grounds shall plainly specify the errors and contain a complete statement of all the attending facts and circumstances, and such application shall be presented to the Department with reasonable promptness after issuance of the defective tariff.

              (2) Rejection caused by clerical or typographical errors or unintelligibility. Rejection of a tariff caused by clerical or typographical errors constitute grounds for approving applications for Special Tariff Permission to file on less than statutory notice, effective not earlier than the original effective dates in the rejected tariff, all changes contained in the rejected tariff but with the errors corrected. Each application for the grant of Special Tariff Permission based on such grounds shall plainly specify the errors and contain a complete statement of all the attending facts and circumstances, and such application shall be filed with the Department within five days after receipt of the Department's notice of rejection.
              (3) Newly authorized transportation. The fact that the Department has newly authorized a carrier to perform foreign air transportation constitutes grounds for approving applications for Special Tariff Permission to file on less than statutory notice the fares, rates, and other tariff provisions covering such newly authorized transportation.
              (4) The fact that a passenger fare is within a statutory or Department-established zone of fare flexibility constitutes grounds for approving an application for Special Tariff Permission to file a tariff stating that fare and any rules affecting them exclusively, on less than statutory notice. The Department's policy on approving such applications is set forth in § 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 49 U.S.C. Subtitle VII 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:
              (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 tariff-publishing 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 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 machine-readable form as an alternative to the filing of printed paper tariffs as provided for elsewhere in part 221. This subpart applies to all carriers and tariff publishing agents and may be used by either if the carrier or agent complies with the provisions of subpart R. Any carrier or agent that files electronically under this subpart must transmit to the Department the remainder of the tariff in a form consistent with part 221, Subparts A through Q, on the same day that the electronic tariff would be deemed received under § 221.190(b).
              (b) To the extent that subpart R is inconsistent with the remainder of part 221, subpart R shall govern the filing of electronic tariffs. In all other respects, part 221 remains in full force and effect.

              § 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 on-line 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 machine-readable tape or other mutually acceptable electronic medium.
              (8) The filer shall ensure that its on-line tariff database is secure against destruction or alteration (except as authorized by the Department), and against tampering.

              (9) Should the filer terminate its business or cease filing tariffs, it shall provide to the Department on a machine-readable tape or any other mutually acceptable electronic medium, contemporaneously with the cessation of such business, a complete copy of its on-line tariff database.

              (10) The filer shall furnish to the Department, on a daily basis, on a machine-readable tape or any other mutually acceptable electronic medium, all transactions made to its on-line tariff database.
              (11) The filer shall afford any authorized Departmental official full, free, and uninhibited access to its facilities, databases, documentation, records, and application programs, including support functions, environmental security, and accounting data, for the purpose of ensuring continued effectiveness of safeguards against threats and hazards to the security or integrity of its electronic tariffs, as defined in this subpart.
              (12) The filer must provide a field in the Government Filing File for the signature of the approving U.S. Government Official through the use of a Personal Identification Number (PIN).
              (13) The filer shall provide a leased dedicated data conditioned circuit with sufficient capacity (not less than 28.8K baud rate) to handle electronic data transmissions to the Department. Further, the filer must provide for a secondary or a redundancy circuit in the event of the failure of the dedicated circuit. The secondary or redundancy circuit must be equal to or greater than 14.4K baud rate. In the event of a failure of the primary circuit the filer must notify the Chief of the Pricing and Multilateral Affairs Division of the Department's Office of International Aviation, as soon as possible, after the failure of the primary circuit, but not later than two hours after failure, and must provide the name of the contact person at the telephone company who has the responsibility for dealing with the problem.

              (c) Each time a filer's on-line tariff database is accessed by any user during the sign-on function the following statement shall appear:

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

              § 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 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 inter-line;
              (J) Discounts: Specific description of any limitations, special conditions, and discounts on status fares, e.g. children or infants, senior citizens, tour conductors, or travel agents, and any other discounts;
              (K) Cancellation and Refunds: Specific description of any special conditions, charges, or credits due for cancellation or changes to reservations, or for request for refund of purchased tickets;
              (L) Group Requirements: Specific description of group size, travel conditions, group eligibility, and documentation;
              (M) Tour Requirements: Specific description of tour requirements, including minimum price, and any stay or accommodation provisions;
              (N) Sales Restrictions: Specific description of any restrictions on the sale of tickets;
              (O) Rerouting: Specific description of rerouting provisions, whether on-line or inter-line, including any applicable charges; and
              (P) Miscellaneous provisions: Any other applicable conditions.
              (ii) Rules tariffs shall not contain the phrase “intentionally left blank”.
              (10) Any material accepted by the Department for informational purposes only shall be clearly identified as “for informational purposes only, not part of official tariff”, in a manner acceptable to the Department.
              (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) on-demand economy fare in a direct-service market, a comparison between, on the one hand, that proposed fare and, on the other hand, the ceiling fare allowed in that market based on the SFFL.

              § 221.206
              Statement of fares.
              All fares filed electronically in direct-service 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 49 U.S.C. Subtitle VII 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) Example of disapproval statement:

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

              (2) Example of other action:

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

              (e) When the Department disapproves in whole or in part or otherwise takes an action against any submission filed under this part, the filer must take corrective action within two business days following the disapproval or notice of other action.
              (f) All submissions under this section shall comply with the requirements of § 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 days, or until such time as the Department shall deem such filing no longer to be necessary: Provided that during the period specified by this section the filed printed tariff shall continue to be the official tariff.
              (b) Upon notification to the filer that it may commence to file its tariffs solely in an electronic mode, concurrently with the implementation of filing electronically the filer shall:
              (1) Furnish the Department with a copy of all the existing effective and prospective records on a machine-readable tape or other mutually acceptable electronic medium accompanied by an affidavit attesting to the accuracy of such records; and
              (2) Simultaneously cancel such records from the paper tariff in the manner prescribed by subparts A through Q of part 221.

              § 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 on-line tariff database. The terms and prices for such value-added service may be set by the filer: Provided that such terms and prices shall be non-discriminatory, i.e., that they shall be substantially equivalent for all similarly-situated persons.

              § 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]

          Pt. 222
          PART 222—INTERMODAL CARGO SERVICES BY FOREIGN AIR CARRIERS

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

            Authority:
            49 U.S.C. 40113 and 41301.

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

            § 222.1
            Applicability.
            This part applies to all air transportation of property that includes both air movement by a direct foreign air carrier and surface transportation to or from any point within the United States (hereafter referred to as “intermodal cargo services”).

            § 222.2
            Scope of permissible intermodal cargo services.
            (a) Under its foreign air carrier permit, a direct foreign air carrier may provide or control the surface portion of intermodal cargo services within a zone extending 35 miles from the boundary of the airport or city it is authorized to serve. A direct foreign air carrier shall not provide or control the surface portion of intermodal cargo services outside of this 35-mile zone unless authorized to do so by the Department in accordance with §§ 222.3, 222.4 and 222.5.
            (b) A direct foreign air carrier shall be considered to control the surface portion of intermodal cargo services if it has or publicly represents that it has any responsibility for or control over the movement of, or has any ownership, controlling or exclusive dealing relationship with, the carrier actually providing the surface transportation.
            (c) Except as provided in paragraphs (a) and (b) of this section with respect to control by a direct foreign air carrier, any U.S. or foreign indirect air carrier, surface carrier or surface freight forwarder may provide the surface portion of intermodal cargo services without limitation as to geographic area within the United States.
            (d) The Department may withdraw the authority of an indirect foreign air carrier to provide the surface portion of intermodal cargo services, or the authority of a direct foreign air carrier to offer intermodal cargo services pursuant to joint fares with other carriers providing the surface transportation, at any time, with or without hearing, if the Department finds it in the public interest.
            [ER-1228, 46 FR 32556, June 24, 1981, as amended by Doc. No. DOT-OST-2014-0140, 84 FR 15930, Apr. 16, 2019]

            § 222.3
            Application for Statement of Authorization.
            (a) Application for a Statement of Authorization shall be filed with the Department's Foreign Air Carrier Licensing Division, Office of International Aviation, in duplicate, on OST Form 4500. In most cases, the Department will act upon applications for Statements of Authorization within 60 days.
            (b) Persons objecting to an application for a Statement of Authorization shall file their objections with the Foreign Air Carrier Licensing Division, Office of International Aviation, within 28 days of the filing date of the application. The Department will list the names and nationalities of all persons applying for Statements of Authorization in its Weekly Summary of Filings.
            (c) An application shall include a copy of any bilateral agreement, memorandum of consultations, or diplomatic note or letter, in support of the authority requested. Documents that appear in official U.S. publications may be incorporated by reference.
            (Approved by the Office of Management and Budget under control number 3024-0045)
            [ER-1228, 46 FR 32556, June 24, 1981, as amended by ER-1348, 48 FR 31635, July 11, 1983; Doc. No. DOT-OST-2014-0140, 84 FR 15930, Apr. 16, 2019]

            § 222.4
            Procedure on receipt of application for Statement of Authorization.
            (a) After review of an application form filed under § 222.3, the Department will take one or more of the following actions:
            (1) Indicate by stamp on OST Form 4500 the effective date of the Statement of Authorization, and return to the carrier the duplicate copy of Form 4500 as evidence of approval under this part;
            (2) Request additional information from the applicant;
            (3) Set the application for notice and hearing procedures;
            (4) Disapprove the application or approve it subject to such terms, conditions, or limitations as may be required by the public interest; or
            (5) Reject the application on the grounds that there is no agreement by the United States authorizing the proposed services.
            (b) An order disapproving an application or subjecting it to conditions or limitations shall be transmitted to the President for stay or disapproval. If the President does not stay or disapprove the Department's order, it shall become effective on the 31st day after transmittal to the President, or within any longer time period established in the order.
            [ER-1228, 46 FR 32556, June 24, 1981, as amended by Doc. No. DOT-OST-2014-0140, 84 FR 15930, Apr. 16, 2019]

            § 222.5
            Cancellation or conditioning of a Statement of Authorization.
            A Statement of Authorization may be canceled or made subject to additional terms, conditions, or limitations, at any time, with or without hearing, if the Department finds that it is in the public interest to do so. An order canceling or conditioning a Statement of Authorization shall be submitted to the President for stay or disapproval and shall become effective on the 31st day after transmittal or within any longer time period established by the Department.
            [ER-1228, 46 FR 32556, June 24, 1981, as amended by Doc. No. DOT-OST-2014-0140, 84 FR 15930, Apr. 16, 2019]

          Pt. 223
          PART 223—FREE AND REDUCED-RATE TRANSPORTATION

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

              Subpart B—Domestic Travel
              223.11
              Free and reduced-rate transportation permitted.

              Subpart C—International Travel
              223.21
              Free and reduced-rate transportation authorized by statute or regulation.
              223.22
              Other persons to whom free and reduced-rate transportation may be furnished.
              223.23

              Applications for authority to carry other persons.

              223.24
              Transportation of empty mail bags.
              223.25
              List of affiliates.

            Authority:
            49 U.S.C. 40113, 40114, and 41711.

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

            Subpart A—General Provisions

              § 223.1
              Definitions.
              As used in this part, unless the context otherwise requires:

                Affiliate of a carrier means a person:
              (1) Who controls that carrier, or is controlled by that carrier or by another person who controls or is controlled by that carrier; and
              (2) Whose principal business in purpose or in fact is:
              (i) The holding of stock in one or more carriers;
              (ii) Transportation by air or the sale of tickets therefor;
              (iii) The operation of one or more airports, one or more of which are used by that carrier or by another carrier who controls or is controlled by that carrier or that is under common control with that carrier by another person; or
              (iv) Activities related to the transportation by air conducted by that carrier or by another carrier that controls or is controlled by that carrier or which is under common control with that carrier by another person.

                Air carrier means the holder of a certificate of public convenience and necessity issued by the Department under 49 U.S.C. 41102 authorizing the carriage of persons. This definition is applicable to a holder of a certificate issued by the Civil Aeronautics Board before its sunset in 1984.

                Attendant means any person required by a passenger with a disability in order to travel, whether or not that person's services are required while the passenger with a disability is in an aircraft.

                Carrier means:
              (1) An air carrier;
              (2) An all-cargo air carrier operating under 49 U.S.C. 41102, 41103;
              (3) A foreign air carrier;
              (4) An intrastate carrier;
              (5) An air taxi (including a commuter air carrier) operating under part 294 or 298 of this chapter; and
              (6) Any person operating as a common carrier by air, or in the carriage of mail by air, or conducting transportation by air, in a foreign country.

                Delivery flight means a flight from a point in the United States where a carrier has taken delivery of a newly manufactured aircraft to any point or points on its route system.

                Foreign air carrier means the holder of a permit issued by the Department under 49 U.S.C. 41302 authorizing the carriage of persons. This definition is applicable to a holder of a certificate issued by the Civil Aeronautics Board before its sunset in 1984.

                Free transportation means the carriage by an air carrier or foreign air carrier of any person or property (other than property owned by that carrier) in air transportation without compensation therefore.

                Inaugural flight means a flight on an aircraft type being introduced by a carrier for the first time on a route, even if that aircraft type has been used by that carrier on other routes or on that route by other carriers.

                Passenger with a disability means any person who has a physical or mental impairment (other than drug addiction or alcoholism), that substantially limits one or more major life activities.

                Pass means a written authorization, other than actual ticket stock, issued by a carrier for free or reduced-rate transportation of persons or property.

                Reduced-rate transportation means the carriage by an air carrier or foreign air carrier of any person or property (other than property owned by such carrier) in air transportation for a compensation less than that specified in the tariffs of that carrier on file with the Department and otherwise applicable to such carriage.

                Retired means:
              (1) With respect to carrier directors, officers, and employees, persons receiving retirement benefits from any carrier; and
              (2) With respect to the general public, persons not regularly working at a full-time paying job, and not intending to do so in the future.
              [Doc. No. DOT-OST-2014-0140, 84 FR 15930, Apr. 16, 2019]

              § 223.2
              Exemption from 49 U.S.C. 41102.
              (a) Any all-cargo carrier is exempted from 49 U.S.C. 41102 to the extent necessary to carry, for purposes of in-flight observation, technical representatives of companies that have been engaged in the manufacture, development, or testing of aircraft or aircraft equipment.
              (b) Every carrier providing transportation under this section shall also comply with the applicable regulations of the Federal Aviation Administration such as regulations pertaining to admission of persons to the aircraft flight deck.
              [ER-1371, 48 FR 57118, Dec. 28, 1983, as amended by Doc. No. DOT-OST-2014-0140, 84 FR 15930, Apr. 16, 2019]

              § 223.3
              Mandatory free transportation.
              Every air carrier shall carry, without charge, on any aircraft that it operates, the following persons:
              (a) Security guards who have been assigned to the duty of guarding such aircraft against unlawful seizure, sabotage or other unlawful interference, upon the exhibition of such credentials as may be prescribed by the Administrator of the Federal Aviation Administration;
              (b) Safety inspectors of the National Transportation Safety Board or of the Federal Aviation Administration who have been assigned to the duty of inspecting during flight such aircraft or its equipment, route facilities, operational procedures, or airman competency upon the exhibition of credentials or a certificate from the agency involved in authorizing such transportation; and
              (c) Postal employees on duty in charge of the mails or traveling to or from such duty, upon the exhibition of the credentials issued by the Postmaster General.

              § 223.4
              Transferability of passes.
              Any pass authorizing free or reduced-rate transportation issued by a carrier may be made transferable to the extent specified by the granting carrier.

              § 223.5
              Responsibility of agencies.
              The Federal Aviation Administration, National Transportation Safety Board, National Weather Service, and the Postal Service shall be responsible for the following:
              (a) The issuance of any credentials or certificates to their personnel eligible for free or reduced-rate transportation under this part; and
              (b) The promulgation of any internal rules that are necessary to obtain compliance by such personnel with this part.

              § 223.6
              Carrier's rules.
              (a) Each air carrier and foreign air carrier shall maintain at its principal office either a copy or all instructions to its employees and of all company rules governing its practice in connection with the issuance and interchange of free and reduced-rate transportation passes or a statement describing those practices.
              (b) The rules or statement required by this section shall, at a minimum, include the following:
              (1) The titles of its officials upon whose authorizations passes may be issued;
              (2) The titles of other officials who are authorized by these officials to countersign passes on their behalf, and the extent of the authority granted to them; and
              (3) The titles of persons who are authorized to request passes from other carriers.
              (c) The rules, instructions, or statement required by this section shall be furnished to the Department upon request or to a member of the public upon payment of a reasonable charge for this service.
              (Approved by the Office of Management and Budget under control number 3024-0002)
              [ER-1371, 48 FR 57118, Dec. 28, 1983, as amended by Doc. No. DOT-OST-2014-0140, 84 FR 15930, Apr. 16, 2019]

            Subpart B—Domestic Travel

              § 223.11
              Free and reduced-rate transportation permitted.
              Air carriers may charge any rate or fare for interstate and overseas air transportation.

            Subpart C—International Travel

              § 223.21
              Free and reduced-rate transportation authorized by statute or regulation.
              (a) Any air carrier or foreign air carrier may provide free or reduced-rate foreign air transportation to any classes of persons specifically named in 49 U.S.C. 41511 or free transportation to those named in § 375.35 of this chapter.
              (b) Air carriers and foreign air carriers may offer reduced fares for foreign air transportation to ministers of religion, the elderly, retired, and handicapped passengers, and to attendants required by handicapped passengers, but shall file tariffs for such fares. Carriers may establish reasonable tariff rules to assist in identifying those who qualify for reduced fares.
              [ER-1371, 48 FR 57118, Dec. 28, 1983, as amended by Doc. No. DOT-OST-2014-0140, 84 FR 15930, Apr. 16, 2019]

              § 223.22
              Other persons to whom free and reduced-rate transportation may be furnished.
              Air carriers and foreign air carriers are exempted from 49 U.S.C. 41510 and 41310(b) and part 221 of this chapter to the extent necessary to provide free or reduced-rate foreign air transportation, including passes, to the following:
              (a) Directors, officers, employees, and retirees and members of their immediate families, of any carrier or of any affiliate of such carrier, subject to the requirements of § 223.25.
              (b) Persons to whom the carrier is required to furnish such transportation by law or government directive or by a contract or agreement between the carrier and the government of any country served by the carrier. The Department may, without prior notice, direct the carrier to file a tariff covering such transportation if it finds that the law or government directive in question requires the provision of such transportation. This transportation may be provided only if:
              (1) The contract or agreement is filed with the Department, and it is not disapproved by the Department; and
              (2) The law or government directive does not require the furnishing of such transportation to the general public or any segment thereof.
              (c) Technical representatives of companies that have been engaged in the manufacture, development or testing of a particular type of aircraft or aircraft equipment, when the transportation is provided for the purposes of in-flight observation, and subject to applicable regulations of the Federal Aviation Administration such as regulations pertaining to admission of persons to the aircraft flight deck.
              (d) Any person in return for goods or services provided by such person whether the transportation is used by that person or any designee of such person;
              (e) Persons engaged in promoting transportation and their immediate families, when such transportation is undertaken for a promotional purpose;
              (f) Persons being transported on an inaugural flight or delivery flight of the carrier except that, in the case of delivery flights, this exemption extends only to free, and not reduced-rate, transportation;
              (g) Any law-enforcement official, including any person who has the duty of guarding government officials traveling on official business against unlawful interference;
              (h) As compensation to persons that file a complaint or claim against the carrier;
              (i) Charitable organizations; and
              (j) Any person in an aviation-related occupation when the transportation is provided for the purpose of technical in-flight observation.
              [ER-1371, 48 FR 57118, Dec. 28, 1983, as amended by Doc. No. DOT-OST-2014-0140, 84 FR 15930, Apr. 16, 2019]

              § 223.23
              Applications for authority to carry other persons.
              (a) Any air carrier or foreign air carrier desiring special authorization to provide free or reduced-rate foreign air transportation to persons to whom the carrier would not otherwise be authorized to furnish such transportation under the previous provisions of this part may apply to the Department, by letter or other writing, for such authorization.

              (b) The application shall include the following information:

              (1) The identity of the persons to whom the transportation is to be furnished;
              (2) The points between which the transportation is to be furnished;
              (3) The approximate time of departure; and
              (4) The carrier's reasons for desiring to furnish such transportation.
              (c) No transportation for which approval is required shall be furnished by the carrier until that approval is received by the carrier.
              (Approved by the Office of Management and Budget under control number 3024-0002)
              [ER-1371, 48 FR 57118, Dec. 28, 1983, as amended by Doc. No. DOT-OST-2014-0140, 84 FR 15930, Apr. 16, 2019]

              § 223.24
              Transportation of empty mail bags.
              Any carrier authorized to engage in foreign air transportation may transport in foreign air transportation empty air mail bags from any country to the country of origin of such bags, free of charge, on a voluntary space-available basis.

              § 223.25
              List of affiliates.
              (a) Each carrier shall maintain at its principal office a list containing all of that carrier's affiliates, showing the exact relationship of each affiliate to the carrier.
              (b) No pass may be issued under § 223.22(a) to a director, officer, employee, or members of their immediate family, of any affiliate, unless that affiliate is on the list required by paragraph (a) of this section.
              (c) The list required by paragraph (a) of this section shall be furnished to the Department upon request.
              (Approved by the Office of Management and Budget under control number 3024-0002)
              [ER-1371, 48 FR 57118, Dec. 28, 1983, as amended by Doc. No. DOT-OST-2014-0140, 84 FR 15930, Apr. 16, 2019]

          Pt. 234
          PART 234—AIRLINE SERVICE QUALITY PERFORMANCE REPORTS

            Sec.
            234.1
            Purpose.
            234.2
            Definitions.
            234.3
            Applicability.
            234.4
            Reporting of on-time performance.
            234.5
            Form of reports.
            234.6
            Baggage-handling statistics.
            234.7
            Voluntary reporting.
            234.8
            Calculation of on-time performance codes.
            234.9
            Reporting of on-time performance codes.
            234.10
            Voluntary disclosure of on-time performance codes.
            234.11
            Disclosure to consumers.
            234.12
            Waivers.

            Authority:
            49 U.S.C. 329, 41708, and 41709.

            Source:
            Amdt. 234-1, 52 FR 34071, Sept. 9, 1987, unless otherwise noted.

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

            § 234.1
            Purpose.
            The purpose of this part is to set forth required data that certain air carriers must submit to the Department and to computer reservations system vendors in computerized form, except as otherwise provided, so that information on air carriers' quality of service can be made available to consumers of air transportation. This part also requires that service quality data be disclosed directly to consumers.

            § 234.2
            Definitions.
            For the purpose of this part:

              Cancelled flight means a flight operation that was not operated, but was listed in a carrier's computer reservation system within seven calendar days of the scheduled departure.

              Discontinued flight means a flight dropped from a carrier's computer reservation system more than seven calendar days before its scheduled departure.

              Diverted flight means a flight which is operated from the scheduled origin point to a point other than the scheduled destination point in the carrier's published schedule. For example, a carrier has a published schedule for a flight from A to B to C. If the carrier were to actually fly an A to C operation, the A to B segment is a diverted flight, and the B to C segment is a cancelled flight.

              Extra-section flight means a flight conducted as an integral part of scheduled passenger service, that has not been provided for in published schedules and is required for transportation of traffic that cannot be accommodated on the regularly scheduled flight.

              Flight means any nonstop scheduled passenger flight segment with a specific flight number scheduled to be operated pursuant to a published schedule within a specific origin-destination city pair, other than transborder or foreign air transportation. In the case of reporting to computer reservations system vendors, flight also means one-stop or multi-stop single plane scheduled operations that include any flight segments for which performance is reported pursuant to this part.

              Late or late flight means a flight that arrives at the gate 15 minutes or more after its published arrival time.

              Mishandled-baggage report means a report filed with a carrier by or on behalf of a passenger that claims loss, delay, damage or pilferage of baggage.

              Mishandled checked bag means a checked bag that is lost, delayed, damaged or pilfered, as reported to a carrier by or on behalf of a passenger.

              New flight means a flight added to a carrier's schedule to operate in a specific origin-destination city pair and not scheduled to depart within 30 minutes of any discontinued flight that was contained in the carrier's published schedules for the same city pair during the previous month.

              On-time means a flight that arrives less than 15 mintues after its published arrival time.

              On-time performance means the percentage of scheduled operations of a specific flight that an air carrier operates on-time during a month.

              On-time performance code means a single character determined in accordance with the provisions of this part that reflects the monthly on-time performance of certain nonstop flights and single plane one-stop or multi-stop flights, the schedule and availability of which are listed in a computer reservation system (CRS) regulated by 14 CFR part 255.

              Reportable flight. (1) Reportable flight for air transportation taking place before January 1, 2018 means any nonstop flight, including a mechanically delayed flight, to or from any airport within the contiguous 48 states that accounts for at least 1 percent of domestic scheduled-passenger enplanements in the previous calendar year, as reported to the Department pursuant to part 241 of this title. Qualifying airports will be specified periodically in accounting and reporting directives issued by the Office of Airline Information.
            (2) Reportable flight for air transportation taking place on or after January 1, 2018 means any domestic nonstop scheduled passenger flight, including a mechanically delayed flight, held out to the public under the reporting carrier's code, to or from any U.S. large, medium, small, or non-hub airport as defined in 49 U.S.C. 47102. Qualifying airports will be specified periodically in accounting and reporting directives issued by the Office of Airline Information.

              Reporting carrier. (1) Reporting carrier for air transportation taking place before January 1, 2018 means an air carrier certificated under 49 U.S.C. 41102 that accounted for at least 1 percent of domestic scheduled-passenger revenues in the most recently reported 12-month period as defined by the Department's Office of Airline Information, and as reported to the Department pursuant to part 241 of this title. Reporting carriers will be identified periodically in accounting and reporting directives issued by the Office of Airline Information.
            (2) Reporting carrier for air transportation taking place on or after January 1, 2018 means an air carrier certificated under 49 U.S.C. 41102 that accounted for at least 0.5 percent of domestic scheduled-passenger revenus in the most recently reported 12-month period as defined by the Department's Office of Airline Information, and as reported to the Department pursuant to part 241 of this chapter. Reporting carriers will be identified periodically in accounting and reporting directives issued by the Office of Airline Information.
            [Amdt. 234-1, 52 FR 34071, Sept. 9, 1987, as amended by Doc. No. 48524, 59 FR 49797, Sept. 30, 1994; 60 FR 66722, Dec. 26, 1995; Dockt. No. DOT-RITA-2011-0001, 81 FR 76306, Nov. 2, 2016; Dockt. No. DOT-OST-2014-056; 81 FR 76826, Nov. 3, 2016]

            § 234.3
            Applicability.

            For air transportation taking place before January 1, 2018, this part applies to reportable flights as defined in § 234.2 that are held out to the public by certificated air carriers that account for at least 1 percent of domestic scheduled passenger revenues. As stated in § 234.7, certain provisions also apply to voluntary reporting of on-time performance by carriers. For air transportation taking place on or after January 1, 2018, this part applies to reportable flights as defined in § 234.2 that are held out to the public by certificated air carriers that account for at least 0.5 percent of domestic scheduled passenger revenues. As stated in § 234.7, certain provisions also apply to voluntary reporting of on-time performance by carriers.
            [Dockt. No. DOT-OST-2014-0056, 81 FR 76826, Nov. 3, 2016]

            § 234.4
            Reporting of on-time performance.
            (a) Each reporting carrier shall file BTS Form 234 “On-Time Flight Performance Report” with the Office of Airline Information of the Department's Bureau of Transportation Statistics on a monthly basis, setting forth the information for each of its reportable flights operated by the reporting carrier and held out to the public on the reporting carrier's Web site and the Web sites of major online travel agencies, or in other generally recognized sources of schedule information. (See also paragraph (k) of this section.) The reportable flights include, but are not limited to, cancelled flights, mechanically cancelled flights, diverted flights, new flights and wet-leased flights. The report shall be made in the form and manner set forth in accounting and reporting directives issued by the Director, Office of Airline Statistics, and shall contain the following information:
            (1) Carrier and flight number.
            (2) Aircraft tail number.
            (3) Origin and Destination airport codes.
            (4) Published OAG departure and arrival times for each scheduled operation of the flight.
            (5) CRS scheduled arrival and departure time for each scheduled operation of the flight.
            (6) Actual departure and arrival time for each operation of the flight.
            (7) Difference in minutes between OAG and CRS scheduled arrival times.
            (8) Difference in minutes between OAG and CRS scheduled departure times.
            (9) Actual wheels-off and wheels-on times for each operation of the flight.
            (10) Date and day of week of scheduled flight operation.
            (11) Scheduled elapsed time, according to CRS schedule.
            (12) Actual elapsed time.
            (13) Amount of departure delay, if any.
            (14) Amount of arrival delay, if any.
            (15) Amount of elapsed time difference, if any.
            (16) Causal code for cancellation, if any.
            (17) Minutes of delay attributed to the air carrier, if any.
            (18) Minutes of delay attributed to extreme weather, if any.
            (19) Minutes of delay attributed to the national aviation system, if any.
            (20) Minutes of delay attributed to security, if any.
            (21) Minutes of delay attributed to a previous late arriving aircraft, if any.
            (22) For gate returns, first gate-departure time at origin airport.
            (23) Total ground time away from gate for all gate/air returns at origin airport, including cancelled flights—actual minutes.
            (24) Longest time away from gate for gate return or cancelled flight.
            (25) Three-letter code of airport where diverted flight landed.
            (26) Wheels-on time at diverted airport.
            (27) Total time away from gate at diverted airport.
            (28) Longest period of time away from gate at diverted airport.
            (29) Wheels-off time at diverted airport.
            (b) Repeat fields (25) through (29) for each subsequent diverted airport landing.
            (c) When reporting the information specified in paragraph (a) of this section for diverted flights, a reporting carrier shall use the original scheduled flight number and the origin and destination airport codes except for item (25).

            (d) A reporting carrier shall report the information specified in paragraph (a) of this section for a new flight beginning with the first day of the new scheduled operation.
            (e) A reporting carrier shall not report the information specified in paragraph (a) of this section for any discontinued or extra-section flight.
            (f) Actual arrival, departure and elapsed times shall be measured by the times at which the aircraft arrived at and departed from the gate or passenger loading area.

            (g) The published arrival time and departure time of a flight shall be, respectively, the scheduled arrival and departure times in effect on the date of the scheduled operation of the flight, as shown in the most recent Official Airline Guide, and in computer reservations systems. Each carrier shall designate a single computer reservations system in addition to the Official Airline Guide as the sources of scheduled arrival time and departure time data in its reports to the Department and shall report the scheduled arrival times and departure times listed in those sources for each flight. Scheduled elapsed times, amount of departure and/or arrival delay, and elapsed time difference shall be calculated using the scheduled times shown in the designated CRS source.

            (h) Reporting carriers should use the following codes to identify causes for cancelled flights:

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

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

            (i) Reporting carriers should use the following causes to identify the reasons for delayed flights:

              CAUSE
              Air Carrier
              Extreme weather
              NAS
              Security
              Late arriving aircraft

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

            (j) When reporting causal codes in paragraph (a) of this section, reporting carriers are required to code delays only when the arrival delay is 15 minutes or greater; and reporting carriers must report each causal component of the reportable delay when the causal component is 5 minutes or greater.
            (k) For air transportation taking place on or after January 1, 2018, each reporting carrier shall also file a separate BTS Form 234 “On-Time Flight Performance Report” with the Office of Airline Information on a monthly basis, setting forth the information for each of its reportable flights held out with only the reporting carrier's airline designator code on the reporting carrier's Web site, on the Web sites of major online travel agencies, or in other generally recognized sources of schedule information, and operated by any code-share partner that is a certificated air carrier or commuter air carrier. If the operating carrier of the flight is not a reporting carrier, the non-operating reporting carrier must file a BTS Form 234 “On-time Flight Performance Report” with the Office of Airline Information on a monthly basis, setting forth the information regarding those flights in a form and manner consistent with the requirements set forth in paragraph (a) through (j) of this section. If the operating carrier of the flight is a reporting carrier, the non-operating reporting carrier must file a simplified BTS Form 234 “On-Time Flight Performance Report” with the Office of Airline Information on a monthly basis, setting forth the information regarding those flights in a form and manner consistent with the requirements set forth in paragraph (a)(1) through (a)(4) and paragraph (a)(10) of this section, and in accordance with the requirements set forth in accounting and reporting directives issued by the Office of Airline Information.
            [Amdt. 234-1, 52 FR 34071, Sept. 9, 1987, as amended by Doc. No. 48524, 59 FR 49797, Sept. 30, 1994; 60 FR 66722, Dec. 26, 1995; 67 FR 70544, Nov. 25, 2002; Doc. No. RITA 2007-28522, 73 FR 29431, May 21, 2008; Dockt. No. DOT-OST-2014-0056; 81 FR 76826, Nov. 3, 2016]

            § 234.5
            Form of reports.
            Except where otherwise noted, all reports required by this part shall be filed within 15 days of the end of the month for which data are reported. The reports must be submitted to the Office of Airline Information in a format specified in accounting and reporting directives issued by the Bureau of Transportation Statistics' Assistant Director for Airline Information.
            [Doc. No. DOT-OST-2000-8164, 67 FR 70545, Nov. 25, 2002]

            § 234.6
            Baggage-handling statistics.
            (a) For air transportation taking place before January 1, 2019, an air carrier certificated under 49 U.S.C. 41102 that accounts for at least 1 percent of domestic scheduled-passenger revenues in the most recently reported 12-month period as defined by the Department's Office of Airline Information, and as reported to the Department pursuant to part 241 of this title shall, for the flights it operates, report monthly to the Department on a domestic system basis, excluding charter flights, the total number of passengers enplaned system-wide and the total number of mishandled-baggage reports filed with the carrier for any nonstop flight, including a mechanically delayed flight, to or from any airport within the contiguous 48 states that accounts for at least 1 percent of domestic scheduled-passenger enplanements in the previous calendar year, as reported to the Department pursuant to part 241 of this title.
            (b) For air transportation taking place on or after January 1, 2019, an air carrier certificated under 49 U.S.C. 41102 that accounts for at least 0.5 percent of domestic scheduled-passenger revenues in the most recently reported 12-month period as defined by the Department's Office of Airline Information, and as reported to the Department pursuant to part 241 of this title shall report monthly to the Department on a domestic system basis, excluding charter flights:

            (1) The total number of checked bags enplaned, including gate checked baggage, “valet bags,” interlined bags, and wheelchairs and scooters enplaned in the aircraft cargo compartment for any domestic nonstop scheduled passenger flight, including a mechanically delayed flight, operated by the carrier to or from any U.S. large, medium, small or non-hub airport as defined in 49 U.S.C. 41702 and separately for any domestic nonstop scheduled passenger flight, including a mechanically delayed flight, held out with only the carrier's designator code to or from any U.S. large, medium, small, or non-hub airport as defined in 49 U.S.C. 47102 and operated by any code-share partner that is a certificated air carrier or commuter air carrier;
            (2) The total number of wheelchairs and scooters that were enplaned in the aircraft cargo compartment for any domestic nonstop scheduled passenger flight, including a mechanically delayed flight, operated by the carrier to or from any U.S. large, medium, small or non-hub airport as defined in 49 U.S.C. 41702 and separately for any domestic nonstop scheduled passenger flight, including a mechanically delayed flight, held out with only the carrier's designator code to or from any U.S. large, medium, small, or non-hub airport as defined in 49 U.S.C. 47102 and operated by any code-share partner that is a certificated air carrier or commuter air carrier;
            (3) The number of mishandled checked bags, including gate-checked baggage, “valet bags,” interlined bags and wheelchairs and scooters that were enplaned in the aircraft cargo compartment for any domestic nonstop scheduled passenger flight, including a mechanically delayed flight, operated by the carrier to or from any U.S. large, medium, small or non-hub airport as defined in 49 U.S.C. 41702 and separately for any domestic nonstop scheduled passenger flight, including a mechanically delayed flight, held out with only the carrier's designator code to or from any U.S. large, medium, small, or non-hub airport as defined in 49 U.S.C. 47102 and operated by any code-share partner that is a certificated air carrier or commuter air carrier; and
            (4) The number of mishandled wheelchairs and scooters that were enplaned in the aircraft cargo compartment for any domestic nonstop scheduled passenger flight, including a mechanically delayed flight, operated by the carrier to or from any U.S. large, medium, small or non-hub airport as defined in 49 U.S.C. 41702 and separately for any domestic nonstop scheduled passenger flight, including a mechanically delayed flight, held out with only the carrier's designator code to or from any U.S. large, medium, small, or non-hub airport as defined in 49 U.S.C. 47102 and operated by any code-share partner that is a certificated air carrier or commuter air carrier.
            (c) The information in paragraphs (a) and (b) of this section shall be submitted to the Department within 15 days after the end of the month to which the information applies and must be submitted with the transmittal accompanying the data for on-time performance in the form and manner set forth in accounting and reporting directives issued by the Director, Office of Airline Information.
            [Dockt. No. DOT-OST-2014-0056, 82 FR 14604, Mar. 22, 2017]

            § 234.7
            Voluntary reporting.
            (a) In addition to the data for each reportable flight required to be reported by this part, a reporting carrier may report to DOT for every other nonstop domestic flight that it schedules, the reportable flight data specified in this part.
            (b) Any air carrier that is not a reporting carrier may file the data specified in this part for every reportable flight that it schedules, or for every nonstop domestic flight that it schedules.
            (c) Voluntary reports containing information not required to be filed (1) must be submitted in the same form and manner, and at the same time, as reports containing data required to be filed, and (2) must be accompanied by a written statement describing in detail the information that is being voluntarily submitted. A carrier that files a voluntary report must continue to do so for a period of not less than 12 consecutive months.

            § 234.8
            Calculation of on-time performance codes.

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

              On Time Performance

                Code:
                Percentage

                9
                90-100

                8
                80-89.9

                7
                70-79.9

                6
                60-69.9

                5
                50-59.9

                4
                40-49.9

                3
                30-39.9

                2
                20-29.9

                1
                10-19.9

                0
                0-9.9

            (3) For a one-stop or multi-stop flight, or portion thereof, listed in a CRS, the performance code for the nonstop flight segment arriving at the destination listed in the CRS shall be used.
            (4) In the case of a new flight, carriers shall assign a performance code consisting of the letter “N.” A flight that is not a new flight shall be assigned the performance code calculated for the flight that it replaces, even if the two flights do not have the same flight number. In the case of a flight scheduled to operate three times or less during a month, carriers shall assign a performance code consisting of the letter “U.”
            (c) Carriers shall calculate on-time performance percentages and assign on-time performance codes on a monthly basis. This process shall be completed no later than the 15th day of each month, when the reports required by this part are due to the Department, and the codes shall reflect the previous month's operations.
            [Amdt. 234-1, 52 FR 34071, Sept. 9, 1987, as amended by Amdt. 234-3, 52 FR 48397, Dec. 22, 1987; 53 FR 27677, July 22, 1988; Doc. No. 48524, 59 FR 49798, Sept. 30, 1994; 60 FR 66722, Dec. 26, 1995]

            § 234.9
            Reporting of on-time performance codes.
            No later than the 15th day of each month, each reporting carrier shall deliver, or arrange to have delivered, to each system vendor, as defined in 14 CFR part 255, the on-time performance codes required to be determined above. Carriers may report the codes by insuring that they are included in basic schedule tapes provided to CRS vendors or by providing a separate tape that will permit the CRS vendors to match the performance codes with basic schedule tapes.

            § 234.10
            Voluntary disclosure of on-time performance codes.
            (a) Any air carrier may determine, in accordance with the provisions of § 234.8 of this part, the on-time performance codes for the flights for which it voluntarily provides flight information to the Department pursuant to § 234.7 of this part.
            (b) A carrier may supply these additional on-time performance codes to system vendors at the same time and in the same manner as the required disclosures are made to system vendors, provided that voluntary disclosures must continue for a period of not less than 12 consecutive months, and must be supplied either
            (1) For each of the carrier's reportable flights and each of its single plane one-stop or multi-stop flights, or portions thereof, that it holds out to the public through a CRS, the last segment of which is a reportable flight or
            (2) For each of the carrier's domestic flights.

            § 234.11
            Disclosure to consumers.

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

            (b) For each domestic flight for which schedule information is available on its Web site, including domestic code-share flights, a reporting carrier shall display the following information regarding the flight's performance during the most recent calendar month for which the carrier has reported on-time performance data to the Department: the percentage of arrivals that were on time—i.e., within 15 minutes of scheduled arrival time, the percentage of arrivals that were more than 30 minutes late (including special highlighting if the flight was late more than 30 minutes of scheduled arrival time more than 50 percent of the time), and the percentage of flight cancellations if 5 percent or more of the flight's operations were canceled in the month covered. The information must be provided by showing all of the required information on the initial listing of flights or by showing all of the required information via a prominent hyperlink in close proximity to each flight on the page with the initial listing of flights.
            (c) The first time each carrier must load the information whose disclosure is required under paragraphs (a) and (b) of this section onto its Web site is on Saturday, July 24, 2010, for June data. Carriers must load all subsequent flight performance information on the fourth Saturday of the month following the month that is being reported.
            (d) A reporting carrier must meet the requirements of paragraphs (b) and (c) of this section by June 29, 2010.
            [Doc. No. DOT-OST-2007-0022, 74 FR 69002, Dec. 30, 2009, as amended by Doc. No. DOT-OST-2010-0039, 75 FR 17052, Apr. 5, 2010; Doc. No. DOT-OST-2007-0022, 75 FR 34927, June 21, 2010]

            § 234.12
            Waivers.
            Any carrier may request a waiver from the reporting requirements of this part. Such a request, at the discretion of the Director, Bureau of Transportation Statistics may be granted for good cause shown. The requesting party shall state the basis for such a waiver.
            [Doc. No. 48524, 59 FR 49798, Sept. 30, 1994, as amended at 60 FR 66722, Dec. 26, 1995]

          Pt.235
          PART 235—REPORTS BY AIR CARRIERS ON INCIDENTS INVOLVING ANIMALS DURING AIR TRANSPORT

            Sec.
            235.1
            Definitions.
            235.2
            Applicability.
            235.3
            Reports by air carriers on incidents involving animals during air transport.

            Authority:
            49 U.S.C. 41721.

            Source:
            79 FR 37945, July 3, 2014, unless otherwise noted.

            § 235.1
            Definitions.
            For the purposes of this part:

              Air transport includes the entire period during which an animal is in the custody of an air carrier, from the time that the animal is tendered to the air carrier prior to departure until the air carrier tenders the animal to the owner, guardian or representative of the shipper of the animal at the animal's final destination. It does not include animals that accompany a passenger at his or her seat in the cabin and of which the air carrier does not take custody.

              Animal means any warm- or cold-blooded animal which, at the time of transportation, is being kept as a pet in a family household in the United States and any dog or cat which, at the time of transportation, is shipped as part of a commercial shipment on a scheduled passenger flight, including shipments by trainers and breeders.

            § 235.2
            Applicability.
            This part applies to the scheduled domestic and international passenger service of any U.S. air carrier that operates such service with at least one aircraft having a designed seating capacity of more than 60 passenger seats. The reporting requirements of this part apply to all scheduled-service passenger flights of such carriers, including flights that are operated with aircraft having 60 or fewer seats.

            § 235.3
            Reports by air carriers on incidents involving animals during air transport.
            (a) Each covered carrier shall, within 15 days after the end of the month to which the information applies, submit to the United States Department of Transportation's Aviation Consumer Protection Division a report on any incidents involving the loss, injury, or death of an animal during air transport provided by the air carrier, including incidents on flights by that carrier that are operated with aircraft having 60 or fewer seats. The report shall be made in the form and manner set forth in reporting directives issued by the Deputy General Counsel for the U.S. Department of Transportation and shall contain the following information:
            (1) Carrier and flight number;
            (2) Date and time of the incident;
            (3) Description of the animal, including name, if known;
            (4) Name and contact information of the owner(s), guardian, and/or shipper of the animal;
            (5) Narrative description of the incident;
            (6) Narrative description of the cause of the incident;
            (7) Narrative description of any corrective action taken in response to the incident; and
            (8) Name, title, address, and telephone number of the individual filing the report on behalf of the air carrier.
            (b) Within 15 days after the end of December of each year, each covered carrier shall submit the following information (this information may be included in any report that the carrier may file for the loss, injury, or death of animals during the month of December):
            (1) The total number of incidents involving an animal during air transport provided by the air carrier for the entire calendar year, including incidents on flights by that carrier that are operated with aircraft having 60 or fewer seats. The report shall include subtotals for loss, injury, and death of animals. Report “0” for any category for which there were no such incidents. If the carrier had no reportable incidents for that calendar year, it shall report “0” in each category. Covered carriers shall use the following data table when reporting the total number of animal incidents during air transport provided by the air carrier for the entire calendar year:

                Total number in the calendar year

                Deaths

                Injuries

                Loss

            (2) The total number of animals transported in the calendar year. If the carrier did not transport any animals for that calendar year, it shall report “0.”
            (3) The December report must contain the following certification signed by the carrier's authorized representative: “I, the undersigned, do certify that this report has been prepared under my direction in accordance with the regulations in 14 CFR part 235. I affirm that, to the best of my knowledge and belief, this is a true, correct and complete report.”

          Pt. 240
          PART 240—INSPECTION OF ACCOUNTS AND PROPERTY

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

            Authority:
            49 U.S.C. 40113, 40114, 41711, 41708, and 41709.

            § 240.1
            Interpretation.
            (a) In the exercise of the authority granted by 49 U.S.C. 41709, the authority of any special agent or auditor to inspect and examine lands, buildings, equipment, accounts, records, memorandums, papers or correspondence shall include the authority to make such notes and copies thereof as he or she deems appropriate.
            (b) The terms “special agent” and “auditor” are construed to mean any employee of the Office of Aviation Enforcement and Proceedings and any other employee of the Department specifically designated by it or by the Director, Office of Security.

            (c) The issuance in the form set forth in this paragraph (c) of an identification card and credentials to any such employee shall be construed to be an order and direction of the Department to such individual to inspect and examine lands, buildings, equipment, accounts, records, and memorandums in accordance with the authority conferred on the Department by 49 U.S.C. Subtitle VII.
            THE UNITED STATES OF AMERICA, DEPARTMENT OF TRANSPORTATION, OFFICE OF THE SECRETARY OF TRANSPORTATION
            [photo]
            [number]
            [expiration date]
            IS APPOINTED
            [title]

            The bearer of this credential whose name and photograph appear hereon is authorized to enter upon, to inspect, and examine lands, buildings (including airport facilities), and equipment (including aircraft) of air carriers and foreign air carriers, and to inspect and copy records and papers of air carriers, foreign air carriers and ticket agents, in performance of his/her duties under 49 U.S.C. 41709, related acts, and regulations of the Department.

            BY DIRECTION OF THE SECRETARY
            [Doc. No. DOT-OST-2014-0140, 84 FR 15931, Apr. 16, 2019]

            § 240.2
            Obligation of air carriers, foreign air carriers, and ticket agents.
            Upon the demand of a special agent or auditor of the Department, and upon the presentation of the identification card and credentials issued to him or her in accordance with this part: Any air carrier or foreign air carrier shall forthwith permit such special agent or auditor to inspect and examine all lands, buildings and equipment; any air carrier, foreign air carrier or ticket agent shall forthwith permit such special agent or auditor to inspect and examine all accounts, records, memorandums, documents, papers and correspondence now or hereafter existing, and kept or required to be kept by the air carrier, foreign air carrier, or ticket agent, and shall permit such special agent or auditor to make such notes and copies thereof as he or she deems appropriate.
            (Sec. 204(a), Federal Aviation Act of 1958, as amended, 72 Stat. 743; (49 U.S.C. 1324))
            [ER-914, 40 FR 27017, June 26, 1975, as amended by Doc. No. DOT-OST-2014-0140, 84 FR 15931, Apr. 16, 2019]

          Pt. 241
          PART 241—UNIFORM SYSTEM OF ACCOUNTS AND REPORTS FOR LARGE CERTIFICATED AIR CARRIERS

            Sec.
            01
            [Reserved]
            02
            [Reserved]
            03
            Definitions for Purposes of This System of Accounts and Reports.
            04
            Air Carrier Groupings.

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

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

              Profit and Loss Classification
              7
              Chart of Profit and Loss Accounts.
              8
              General.
              9
              Functional Classification—Operating Revenues.
              10
              Functional Classification—Operating Expenses of Group I Air Carriers.
              11
              Functional Classification—Operating Expenses of Group II and Group III Air Carriers.
              12

              Objective Classification—Operating Revenues and Expenses.

              14
              Objective Classification—Nonoperating Income and Expense.
              15
              Objective Classification—Income Taxes for Current Period.
              16
              Objective Classification—Discontinued Operations.
              17
              Objective Classification—Extraordinary Items.
              18
              Objective Classification—Cumulative Effect of Changes in Accounting Principles.

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

              General Reporting Provisions—Large Certificated Air Carriers
              21
              Introduction to System of Reports.
              22
              General Reporting Instructions.

              Financial Reporting Requirements
              23
              Certification and Balance Sheet Elements.
              24
              Profit and Loss Elements.

              Traffic Reporting Requirements
              25
              Traffic and Capacity Elements.

            Authority:
            49 U.S.C. 329, 41101, 41708, and 41709.

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

            Section 01
            [Reserved]

            Section 02
            [Reserved]

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

                Account, clearing. An account used as a medium for the temporary accumulation of costs that are redistributed to appropriate applicable accounts.

                Acquisition, date of. The date on which the title to owned property or equipment (or the right to use or control the reassignment of leased property or equipment) passes to the air carrier.

                Addition, property. Additional equipment, land, structures, and other tangible property; extensions of fuel, water, and oil distribution equipment; additions to buildings and other structures; and additional safety devices applied to equipment not previously thus equipped. (See also Modification.)

                Affiliated group. A combination of companies comprised of the air carrier, any person controlling the air carrier or under common control with the air carrier, and organizational divisions (as defined in sections 1-6) of and persons controlled by the air carrier.

                Agency, cargo. Any person (other than the air carrier preforming the direct air transportation or one of its bona fide regular employees or an indirect air carrier lawfully engaged in air transportation under authority conferred by any applicable part of the Economic Regulations of the Department) who for compensation or profit: (1) Solicits, obtains, receives or furnishes directly or indirectly property or consolidated shipments of property for transportation upon the aircraft of an air carrier subject to this part, or (2) procures or arranges for air transportation of property upon aircraft of an air carrier subject to this part by charter, lease, or any other arrangement.

                Agent, ticket. Any person (other than the air carrier performing the direct air transportation or one of its bona fide regular employees, or an air carrier which subcontracts the performance of charter air transportation which it has contracted to perform) who for compensation or profit: (1) Solicits, obtains, receives, or furnishes directly or indirectly passengers or groups of passengers for transportation upon the aircraft of an air carrier subject to this part, or (2) procures or arranges for air transportation of passengers or groups of passengers upon aircraft of an air carrier subject to this part by charter, lease, or any other arrangement.

                Agreement. Any oral or written agreement, contract, understanding, or arrangement, and any amendment, revision, modification, renewal, extension, cancellation or termination thereof.

                Air carrier. Any citizen of the United States who undertakes, whether directly or indirectly or by a lease or any other arrangement, to engage in air transportation.

                Air carrier, charter. An air carrier holding a certificate issued under 49 U.S.C. 41102(a)(3).

                Air carrier, large certificated. An air carrier holding a certificate issued under 49 U.S.C. 41102, as amended, that: (1) Operates aircraft designed to have a maximum passenger capacity of more than 60 seats or a maximum payload capacity of more than 18,000 pounds; or (2) conducts operations where one or both terminals of a flight stage are outside the 50 states of the United States, the District of Columbia, the Commonwealth of Puerto Rico and the U.S. Virgin Islands.

                Air carrier, surviving. An entity (air carrier) which, as the result of a business combination, has acquired the net assets, and carries on the operations of, one or more predecessor air carriers, and which may be newly organized at the time of the combination or may be one of the predecessor air carriers.

                Aircraft. Any contrivance now known or hereafter invented, used or designed for navigation of or flight in the air.

                Aircraft days assigned to service-carrier's equipment means the number of days that aircraft owned or acquired through rental or lease are in the possession of the reporting air carrier and are available for service on the reporting carrier's routes plus the number of days such aircraft are in service on routes of others under wet-lease agreements. Includes days in overhaul, or temporarily out of service due to schedule cancellations. Excludes days that newly acquired aircraft are on hand but not available for productive use, days dry-leased or rented to others, and days in possession but formally withdrawn from air transportation service.

                Aircraft day assigned to service-carrier routes—same as aircraft days assigned to service carrier's equipment but excluding the number of days owned or rented equipment are in the possession of others under interchange agreements and including the number of days aircraft of others are in the possession of the air carrier under interchange agreements.

                Aircraft, leased (rented). Aircraft obtained from (or furnished to) others under lease or rental arrangements. Leased and rented aircraft do not include those used under interchange agreements designed to provide oneplane service over the routes of the air carriers involved.

                Aircraft type. A distinctive model as designated by the manufacturer.

                Airport. A landing area regularly used by aircraft for receiving or discharging passengers or cargo.

                Airport, alternate. An approved airport to which a flight may proceed if a landing at the airport to which the flight was dispatched becomes inadvisable.

                Airport-to-airport distance. The great circle distance between airports, measured in statute miles in accordance with part 247 of this chapter.

                Air transportation. The carriage by aircraft of persons, property, or mail.

                Air transportation, charter. Air transportation authorized pursuant to 49 U.S.C. 41102.

                Airworthiness (or Airworthy). When applied to a particular aircraft or component part, it denotes the ability of such aircraft or component part to perform its function satisfactorily through a range of operations determined by the Federal Aviation Administration.

                Allocate. To assign an item or group of items of investment, revenue, or cost to an object, activity, process, or operation, in accordance with cost responsibilities, benefits received, or other measure of apportionment.

                Allocation, bases of. Bases of distribution whereby revenues, expenses, and/or costs are equitably apportioned among revenue, expense, property and equipment, and other accounts.

                Amortization. The gradual extinguishment of an amount in an account by distributing such amount over a fixed period, over the life of the asset or liability to which it applies or over the period during which it is anticipated the benefit will be realized.

                Asset, contingent. An asset the existence, value, or ownership of which depend upon the occurrence or nonoccurrence of a specific event or upon the performance or nonperformance of a specified act.

                Associated company. A company in which the accounting air carrier holds 5 percent or more of the outstanding proprietary interest; or a company which holds 5 percent or more of the outstanding proprietary interest of the accounting air carrier; or a company that, directly or through one or more intermediaries, controls or is controlled by, or is under common control with the accounting air carrier. Companies owned or controlled jointly with other air carriers shall be regarded as associated companies for purposes of this system of accounts. (See also Control.)

                Betterment. Any improvement to property or equipment through the substitution of superior parts for inferior parts retired, the object of which is to make such property more useful or of greater capacity than at the time of acquisition or installation. (See also Modification.)

                BTS. The Bureau of Transportation Statistics.

                Cargo. All traffic other than passengers.

                Cargo transported. Cargo on board each flight stage.

                Certificated point. A city, place or population center authorized to receive scheduled air service under a Certificate of Public Convenience and Necessity or under an exemption issued to an air carrier.

                Certificate of Public Convenience and Necessity. A certificate issued to an air carrier under 49 U.S.C. 41102, by the Department of Transportation authorizing the carrier to engage in air transportation.

                Company, predecessor. An air carrier whose net assets and operations have been taken over by one or more other air carriers.

                Compensation (of personnel). Remuneration to air carrier employees for personal services. Includes salaries, wages, overtime pay, cost-of-living differentials, bonuses, etc., as distinguished from per diem allowances or reimbursement for expenses incurred by personnel for the benefit of the air carrier.

                Continental United States. The 48 contiguous States and the District of Columbia.

                Control (including the terms Controlling, Controlled by, and Under common control). The possession, directly or indirectly, of the power positively to direct, or cause the direction of or negate the direction of, the management and policies of a company, whether such power is through one or more intermediary companies or alone or in conjunction with or pursuant to an agreement, and whether such power is established through a majority or minority ownership or voting of securities, common directors, officers, or stockholders, voting trusts, holding trusts, associated companies, contract, or any other direct or indirect means.

                Controlling person. (See Person Controlling an air carrier)

                Cost. The amount of cash (or its equivalent) actually paid for property, materials and supplies, and services, including that amount paid to put the property or materials and supplies in readiness for use. It includes such items as transportation charges, installation charges, and customs duties, less any cash or other discounts.

                Cost, book. The amount at which an asset is recorded in an account without the deduction of amounts in related allowances or other accounts.

                Cost, depreciated. The cost of property and equipment less the related allowances for depreciation.

                Cost, removal. The cost of demolishing, dismantling, tearing down, or otherwise removing property and equipment, including the cost of related transportation and handling.

                Debt, expense on. Expenses incurred by or for the air carrier in connection with the issuance and sale of evidences of debt (exclusive of the sale of reacquired securities), such as fees for drafting mortgages and trust deeds; fees and taxes for issuing or recording evidences of debt; cost of engraving and printing bonds, certificates of indebtedness, and other commercial paper; specific costs of obtaining governmental authority for issuance and filing notices thereunder; fees for legal services; fees and commissions paid underwriters, brokers, and salesmen for marketing such evidences of debt; fees and expenses of listing on exchanges; and other like costs.

                Deferred taxes. Tax effects which are deferred for allocation to income tax expense of future periods.

                Department. Department of Transportation.

                Departures completed, percent scheduled. The percent of scheduled departures that were performed.

                Departures completed, scheduled. The number of takeoffs performed at each airport pursuant to published schedules, exclusive of extra sections to scheduled departures.

                Departure performed. A takeoff made at an airport.

                Departure, scheduled. A takeoff scheduled at an airport, as set forth in published schedules.

                Depreciation (of depreciable property and equipment). The loss in service value, not restored by current maintenance, incurred in the course of service from causes known to be in current operation, against which the carrier is not protected by insurance, and the effect of which can be forecast with reasonable accuracy. The causes of depreciation include wear and tear, decay, action of the elements, inadequacy, obsolescence, changes in the art, changes in demand, and requirements of public authorities.

                Discount (of securities issued or assumed by the air carrier). The excess of (1) the par or stated value of securities over (2) the then current money value of the consideration received from their sale less the amount included for dividends or for interest accrued.

                DOT. Department of Transportation.

                Equipment. Tangible property other than land, structures, and improvements.

                Equity security. Any instrument representing ownership shares (for example, common, preferred, and other capital stock), or the right to acquire (for example, warrants, rights, and call options) or dispose of (for example, put options) ownership shares in an enterprise at fixed or determinable prices. The term does not encompass preferred stock that by its terms either must be redeemed by the issuing enterprise or is redeemable at the option of the investor, nor does it include treasury stock or convertible bonds.

                Equivalent unit. A new unit substituted for an existing unit that is worn out, is damaged beyond repair, or has become inadequate in service, the substituted unit having substantially no greater capacity than the unit for which substituted.

                Estimated economic life of leased property. The estimated remaining period during which the property is expected to be economically usable by one or more users, with normal repairs and maintenance, for the purpose for which it was intended at the inception of the lease, without limitation by the lease term.

                Expense, capital stock. Expenses incurred by or for the air carrier in connection with the initial issuance and sale of capital stock (exclusive of the sale of reacquired capital stock), such as fees and commissions paid to promoters, underwriters, brokers, and salesmen; fees for legal services; cost of soliciting subscriptions for capital stock; including fees, commissions, and advertising; specific costs of obtaining governmental authority for issuance and filing notices thereunder; fees and taxes for issuance of capital stock and listing on exchanges; and the cost of preparing, engraving, printing, issuing, and distributing prospectuses and stock certificates.

                Flight, developmental. A flight for (1) the development of a new route either prior or subsequent to certification by the Department of Transportation; (2) the extension of an existing route; or (3) the integration of a new type of aircraft or service.

                Flight, extra section. A flight, conducted as an integral part of scheduled service, that has not been provided for in published schedules and is required for transportation of traffic that cannot be accommodated on a regularly scheduled flight. Flights made in ferrying aircraft to meet schedules, or for similar operational reasons, are not extra sections and are classified as nonrevenue flights even if an occasional shipment, as a matter of special accommodation, is on board.

                Flight, ferry. A flight for the purpose of returning an aircraft to base, equipment equalization, or moving an aircraft to and from a maintenance base.

                Flight, paid positioning. A flight for the purpose of positioning an empty aircraft in connection with a charter flight for which a specific charge is set forth in a tariff or contract for application directly to the positioning miles operated. Such flights are considered revenue flights for Form 41 reporting purposes.

                Flight, personnel training. A flight for the purpose of obtaining flying time for flight personnel or a flight in connection with a personnel training program.

                Flight stage. The operation of an aircraft from takeoff to landing. For purposes of classifying flight stages as between “domestic”, “territorial”, and “international”, technical stops are disregarded. (See Stops, technical.)

                Freight. Property, other than mail, transported by air.

                Generally accepted accounting principles (GAAP). The body of authoritative accounting knowledge governing the recording, presenting and disclosing of financial transactions, as incorporated in the pronouncements of the Financial Accounting Standards Board.

                Group basis (in depreciation accounting). A plan under which (1) depreciation is based upon the application of a single depreciation rate to the total book cost of all property included in a given depreciable property and equipment account or class, despite differences in service life of individual items of property and equipment, (2) the full original cost, less any salvage realized, of an item of depreciable property or equipment retired is charged to the allowance for depreciation regardless of the age of the item, and (3) no gain or loss is recognized on the retirement of individual items of property or equipment.

                Horsepower, maximum continuous for reciprocating engines. The brake horsepower developed in standard atmosphere at a specified altitude and under the maximum conditions of crankshaft rotational speed and engine manifold pressure, and approved for use during periods of unrestricted duration.

                Horsepower, maximum continuous for turbine engines. The brake horsepower developed at specified altitudes, atmospheric temperatures, and flight speeds and under the maximum conditions of rotor shaft rotational speed and gas temperature, and approved for use during periods of unrestricted duration.

                Thrust, maximum continuous for turbine engines. The jet thrust developed at specified altitudes, atmospheric temperatures, and flight speeds and under the maximum conditions of rotor shaft rotational speed and gas temperature, and approved for use during periods of unrestricted duration.

                Hours, aircraft. The airborne hours of aircraft computed from the moment an aircraft leaves the ground until it touches the ground at the end of a flight.

                Hours flown, revenue aircraft. The aircraft hours of flights performed in revenue service.

                Hours in capitalized projects, aircraft. Aircraft hours applicable to ferrying newly acquired aircraft from the factory, to capitalized extension and development preoperating projects and to other costs which have been capitalized.

                Hours per aircraft per day—carrier's equipment, revenue. Average hours of productive use per day in revenue service of reporting carrier's equipment determined by dividing (1) Aircraft days assigned to service—carrier's equipment into (2) Revenue aircraft hours minus Revenue hours on other carrier's interchange equipment plus Total hours by others on the carrier's interchange equipment.

                Hours per aircraft per day—carrier's routes, revenue. Average hours of productive use per day in revenue service on reporting carrier's routes determined by dividing (1) Aircraft days assigned to service-carrier's routes into (2) Revenue aircraft hours.

                Hours, ramp-to-ramp. The aircraft hours computed from the moment the aircraft first moves under it own power for purposes of flight, until it comes to rest at the next point of landing.

                Improvement. An addition or alteration to land, a building, or a unit of equipment that results in a better piece of property, in the sense of greater durability, or in increased productivity or efficiency. (See also Modification.)

                Income tax expense. The amount of income taxes (whether or not currently payable or refundable) allocable to a period in the determination of net income.

                Income taxes. Taxes based on income determined under provisions of the United States Internal Revenue Code and foreign, State, and other taxes (including franchise taxes) based on income.

                Insurance, self. The assumption by an air carrier of a risk of loss or liability arising from an accident or other contingent event.

                Interchange agreement. An agreement under which aircraft of one air carrier are utilized to provide one-plane service over its own routes and the routes of other air carriers.

                Interperiod tax allocation. The process of apportioning income taxes among periods.

                Inventory, perpetual. A book inventory kept in continuous agreement with stock on hand by means of a detailed record.

                Investor controlled company (for purposes of applying the equity method of accounting). Any business entity in which the accounting air carrier is able to exercise significant influence over operating and financial policies of the issuing company. Significant influence will be presumed, unless established to the contrary by waiver request, with ownership of 20 percent or more of the outstanding voting capital stock. Ability to exercise influence may be indicated in several ways, such as representation on the Board of Directors, participation in policy-making processes, material intercompany transactions, interchange of managerial personnel, or technological dependency. Investor controlled companies shall also be regarded as associated companies for purposes of this system of accounts (see also Associated company).

                Item, delayed. An item relating to transactions that occurred during a prior accounting period and that requires further accounting treatment for a true statement of financial condition or operating results. It includes adjustments of errors in the operating revenue, operating expense, and other income accounts for prior periods.

                Liability, contingent. A possible source of obligation of an air carrier dependent upon the fulfillment of conditions regarded as uncertain.

                Load, available. Represents the maximum salable load. It is the allowable gross weight less the empty weight, less all justifiable aircraft equipment, and less the operating load (consisting of minimum fuel load, oil, flight crew, steward's supplies, etc.). For passenger aircraft, the available load must not exceed the weight of the maximum number of passengers who can be accommodated in the seats installed in the aircraft plus the weight of the traffic that can be accommodated in the cargo space.

                Load, average revenue. The average total revenue tons carried in revenue services, determined by dividing total revenue ton-miles by aircraft miles flown in revenue services.

                Load, average revenue passenger. Average number of revenue passengers carried in passenger services, determined by dividing revenue passenger-miles by aircraft miles flown in revenue passenger services.

                Load factor, over-all revenue. The percent that total revenue ton-miles (passenger plus nonpassenger) are of available ton-miles in revenue services.

                Load factor, revenue passenger. The percent that revenue passenger-miles are of available seat-miles in revenue passenger services.

                Load, minimum fuel. The minimum quantity of fuel with which an aircraft may be dispatched in accordance with the safety operating needs of the air carrier.

                Load, salable. (See Load, available.)

                Mail, nonpriority. All mail for which transportation by air is provided on a space available basis.

                Mail, priority. All mail for which transportation by air is provided on a priority basis.

                Mile. A statute mile (5,280 feet).

                Miles completed, percent scheduled aircraft. The percent of scheduled aircraft miles which were performed.

                Miles completed, scheduled aircraft. The aircraft miles performed on scheduled flights computed between only those scheduled points actually served.

                Miles flown, aircraft. The miles (computed in airport-to-airport distances) for each flight stage actually completed, whether or not performed in accordance with the scheduled pattern. For this purpose, operation to a flag stop is a stage completed even though a landing is not actually made. In cases where the interairport distances are inapplicable, aircraft miles flown are determined by multiplying the normal crusing speed for the aircraft type by the airborne hours.

                Miles flown, nonrevenue aircraft. The aircraft miles flown on nonrevenue flights, such as ferry (including empty backhauls to MAC one-way charters), personnel training, extension and development, and abortive revenue flights.

                Miles, revenue aircraft. The aircraft miles flown in revenue service.

                Miles, scheduled aircraft. The sum of the airport-to-airport distances of all flights scheduled to be performed over the air carrier's certificated routes pursuant to published flight schedules. Flights listed in the published schedules for operation only as extra sections, when traffic warrants, are excluded.

                Modification. An alteration in a structure or unit of equipment that changes its design and is made to correct an error, increase production, improve efficiency of operation, or for some other reason.

                Obsolescence. The process of becoming out of date due to progress of the arts and sciences, changed economic conditions, legislation, etc., which ultimately results in the retirement or other disposition of property.

                Off-Line. Installations maintained or facilities used for other than scheduled certificated air services.

                On-Line. Installations maintained or facilities used in conducting scheduled certificated air services.

                Domestic. Flight stages with both terminals within the 50 States of the United States and the District of Columbia.

                Territorial. Flight stages with both terminals within territory under U.S. jurisdiction where at least one of the terminals is not within a State or the District of Columbia.

                International. Flight stages with one or both terminals outside of territory under U.S. jurisdiction.

                Operations, systems. The over-all operations of an air carrier including all of the operating entities of an air carrier having multiple operations.

                Passenger-mile. One passenger transported 1 mile. Passenger-miles are computed by multiplying the aircraft miles flown on each flight stage by the number of passengers transported on that stage.

                Passenger-mile, nonrevenue. One nonrevenue passenger transported one mile.

                Passenger-mile, revenue. One revenue passenger transported one mile.

                Passenger, nonrevenue. A person traveling free or under token charges, except those expressly named in the definition of revenue passenger; a person traveling at a fare or discount available only to employees or authorized persons of air carriers or their agents or only for travel on the business of the carriers; and an infant who does not occupy a seat. (This definition is for 14 CFR part 241 traffic reporting purposes and may differ from the definitions used in other parts by the Federal Aviation Administration and the Transportation Security Administration for the collection of Passenger Facility Charges and Security Fees.)
              The definition includes, but is not limited to following examples of passengers when traveling free or pursuant to token charges:
              (1) Directors, officers, employees, and others authorized by the air carrier operating the aircraft;
              (2) Directors, officers, employees, and others authorized by the air carrier or another carrier traveling pursuant to a pass interchange agreement;
              (3) Travel agents being transported for the purpose of familiarizing themselves with the carrier's services;
              (4) Witnesses and attorneys attending any legal investigation in which such carrier is involved;
              (5) Persons injured in aircraft accidents, and physicians, nurses, and others attending such persons;
              (6) Any persons transported with the object of providing relief in cases of general epidemic, natural disaster, or other catastrophe;
              (7) Any law enforcement official, including any person who has the duty of guarding government officials who are traveling on official business or traveling to or from such duty;
              (8) Guests of an air carrier on an inaugural flight or delivery flights of newly-acquired or renovated aircraft;
              (9) Security guards who have been assigned the duty to guard such aircraft against unlawful seizure, sabotage, or other unlawful interference;
              (10) Safety inspectors of the National Transportation Safety Board or the FAA in their official duties or traveling to or from such duty;
              (11) Postal employees on duty in charge of the mails or traveling to or from such duty;
              (12) Technical representatives of companies that have been engaged in the manufacture, development or testing of a particular type of aircraft or aircraft equipment, when the transportation is provided for the purpose of in-flight observation and subject to applicable FAA regulations;
              (13) Persons engaged in promoting air transportation;
              (14) Air marshals and other Transportation Security officials acting in their official capacities and while traveling to and from their official duties; and
              (15) Other authorized persons, when such transportation is undertaken for promotional purpose.

                Passenger, revenue. A passenger for whose transportation an air carrier receives commercial remuneration. (This definition is for 14 CFR part 241 traffic reporting purposes and may differ from the definitions used in other parts by the Federal Aviation Administration and the Transportation Security Administration for the collection of Passenger Facility Charges and Security Fees.) This includes, but is not limited to, the following examples:
              (1) Passengers traveling under publicly available tickets including promotional offers (for example two-for-one) or loyalty programs (for example, redemption of frequent flyer points);
              (2) Passengers traveling on vouchers or tickets issued as compensation for denied boarding or in response to consumer complaints or claims;
              (3) Passengers traveling at corporate discounts;
              (4) Passengers traveling on preferential fares (Government, seamen, military, youth, student, etc.);
              (5) Passengers traveling on barter tickets; and
              (6) Infants traveling on confirmed-space tickets.

                Passengers transported. Passengers on board each flight stage.

                Person controlling an air carrier. Any person, as defined in 49 U.S.C. 40102, whom the Department has found, in any proceeding, to control an air carrier, or who holds, directly or indirectly, the legal or beneficial ownership of more than 50 percent of the outstanding voting capital stock or capital of an air carrier, and who does not make a proper showing to the Department that he or she does not control the carrier despite such stock ownership, shall be deemed to be a person controlling the carrier for the purpose of this part. A brokerage firm which holds record ownership of securities merely for the convenience of the customer beneficially owning the stock shall not be deemed a person controlling an air carrier.

                Premium (as applied to securities issued or assumed by the air carrier). The excess of (1) the then current money value of the consideration received from their sale, less the amount included therein for dividends or interest accrued, over (2) their par or stated value.

                Pretax accounting income. Income or loss for a period exclusive of related income tax expense.

                Property (as applied to traffic). (See Cargo.)

                Replacement. Substitution of new for existing facilities that are worn out, damaged beyond repair, or have become inadequate in service.

                Reporting carrier for T-100 purposes means the air carrier in operational control of the flight, i.e., the carrier that uses its flight crew under its own FAA operating authority.

                Residual value. The predetermined portion of the cost of a unit of property or equipment excluded from depreciation. It shall represent a fair and reasonable estimate of recoverable value as at the end of the service life over which the property or equipment is depreciated and shall give due consideration to the proceeds anticipated from disposition of the property or equipment and the extent to which costs attaching to property or equipment are otherwise recoverable through charges against income.

                Retirement. The permanent withdrawal of assets from services of the corporate entity through sale, abandonment, demolition, or other disposal.

                Retirement, date of. The date on which property or equipment is permanently withdrawn from services of the corporate entity.

                Route, certificated. The route(s) over which an air carrier is authorized to provide air transportation by a Certificate of Public Convenience and Necessity issued by the Department of Transportation pursuant to 49 U.S.C. 41102. This definition is applicable to an air carrier issued a Certificate of Public Convenience by the Civil Aeronautics Board before its sunset in 1984.

                Salvage value. The amount received for property retired, less the expenses incurred in connection with the sale or in the preparation of the property for sale; or, if retained, the amount at which the material recovered is charged to materials and supplies or other appropriate account.

                Seats available. Installed seats in an aircraft (including seats in lounges) exclusive of any seats not offered for sale to the public by the carrier; provided that in no instance shall any seat sold be excluded from the count of available seats.

                Seats, average available. The average number of seats available for passengers, determined by dividing available seat-miles by revenue aircraft miles flown in passenger service.

                Seat-miles available, revenue. The aircraft miles flown on each flight stage multiplied by the number of seats available for revenue use on that stage.

                Section 41103 cargo operations. The carriage, pursuant to 49 U.S.C. 41103, by aircraft of property and/or mail as a common carrier for compensation or hire in commerce between a place in any State of the United States, or the District of Columbia, or Puerto Rico, or the U.S. Virgin Islands, and a place in any other of those entities, or between places in the same State or other entity through the air-space over any place outside thereof, or between places within the District of Columbia, Puerto Rico, or the U.S. Virgin Islands. This includes commerce moving partly by aircraft and partly by other forms of transportation, as well as commerce moving wholly by aircraft.

                Segment, service. A pair of points served or scheduled to be served by a single stage of at least one flight within any given time period.

                Service, charter. Nonscheduled air transport service in which the party receiving transportation obtains exclusive use of an agreed upon portion of the total capacity of an aircraft with the remuneration paid by the party receiving transportation accruing directly to, and the responsibility for providing transportation is that of, the accounting air carrier.

                Service, coach (tourist). Transport service specifically established for the carriage of passengers at special reduced passenger fares that are predicated on both the operation of specifically designated aircraft space and a reduction in the quality of service regularly and ordinarily provided.

                Service, first class. Transport service established for the carriage of passengers moving at either standard fares or premium fares, or at reduced fares not predicated upon the operation of specifically allocated aircraft space, and for whom standard or premium quality services are provided.

                Service life. The period between the date of installation of property or equipment and its date of retirement.

                Service, mixed. Transport service for the carriage of both first-class and coach passengers on the same aircraft.

                Service, nonpassenger. Transport service established for the carriage of traffic other than passengers.

                Service, nonscheduled. Includes transport service between points not covered by Certificates of Public Convenience and Necessity issued by the Department of Transportation to the air carrier; services pursuant to the charter or hiring of aircraft; other revenue services not constituting an integral part of the services performed pursuant to published schedules; and related nonrevenue flights.

                Service, passenger-cargo. Transport service established for the carriage of passengers which may also be used jointly for the transportation of cargo.

                Service, scheduled. Transport service operated pursuant to published flight schedules, including extra sections and related nonrevenue flights.

                Service, transport. The operation of facilities for the carriage of traffic by air.

                Services, all. The total of scheduled and nonscheduled transport services.

                Stop, flag. A point on an air carrier's operating system that is scheduled to be served only when traffic is to be picked up or discharged.

                Stops, technical. Aircraft landing made for purposes other than enplaning or deplaning traffic. For purposes of identifying reporting entities, landings made for stopover passengers are regarded as technical stops.

                Tariff, published. A publication containing fares and rates applicable to the transportation of persons or cargo and rules relating to or affecting such fares or rates of transportation, filed with the Department of Transportation.

                Taxable income. The excess of revenues over deductions or the excess of deductions over revenues to be reported for income tax purposes for a period.

                Tax effects. Differentials in income taxes of a period attributable to (1) revenue or expense transactions which enter into the determination of pretax accounting income in one period and into the determination of taxable income in another period, (2) deductions or credits that may be carried backward or forward for income tax purposes, and (3) adjustments of prior periods (or of the opening balance of retained earnings) and direct entries to other stockholders' equity accounts which enter into the determination of taxable income in a period but which do not enter into the determination of pretax accounting income of that period. A permanent difference does not result in a “tax effect” as the term is used in this System of Accounts and Reports.

                Ton. A short ton (2,000 pounds).

                Ton-mile. One ton transported 1 mile. Ton-miles are computed by multiplying the aircraft miles flown on each flight stage by the number of tons transported on that stage.

                Ton-mile, nonrevenue. One ton of nonrevenue traffic transported 1 mile.

                Ton-mile, passenger. One ton of passenger weight (including all baggage) transported 1 mile. (See also Weight, passenger.)

                Ton-mile, revenue. One ton of revenue traffic transported 1 mile.

                Ton-miles available, revenue. The aircraft miles flown on each flight stage multiplied by the ton capacity available for use on that stage.

                Traffic, deplaned. A count of the number of passengers getting off and tons of cargo unloaded from an aircraft. For this purpose, passengers and cargo on aircraft leaving a carrier's system on interchange flights are considered as deplaning and the interchange point; and passengers and cargo moving from one operation to another operation of the same carrier, for which separate reports are required by the Department of Transportation, are considered as deplaning at the junction point.

                Traffic, enplaned. A count of the number of passengers boarding and tons of cargo loaded on an aircraft. For this purpose, passengers and cargo on aircraft entering a carrier's system on interchange flights are considered as enplaning at the interchange point; and passengers and cargo moving from one operation to another operation of the same carrier, for which separate reports are required by the Department of Transportation, are considered as enplaning at the junction point.

                Traffic, nonrevenue. Passengers and cargo transported by air for which no remuneration or token service charges are received by the air carrier. Airline employees, officers and directors, or other persons, except for ministers of religion, who are traveling under reduced-rate transportation authorized by 49 U.S.C. 41511(a) and 14 CFR part 223, as well as travel agents, cargo agents, and tour conductors traveling at reduced fares are also considered nonrevenue traffic.

                Traffic office. A facility where air transportation is sold, and related processes of documentation and reservation confirmation are performed.

                Traffic, revenue. Passengers and cargo transported by air for which remuneration is received by the air carrier. Airline employees, officers and directors, or other persons, except for ministers of religion, who are traveling under reduced-rate transportation authorized by 49 U.S.C. 41511(a) and 14 CFR part 223, travel agents, cargo agents, and tour conductors traveling at reduced fares, and other passengers and cargo carried for token service charges, are not considered as revenue traffic.

                Transportation, free. The carriage of any person or cargo (other than cargo owned by the air carrier) without compensation.

                Unit basis (in depreciation accounting). A plan under which depreciation expenses is accrued upon the basis of the book cost of the individual item of property in relation to the service life and salvage value of the particular item.

                Value, service. The difference between the book cost and the residual value of property and equipment.

                Weight, allowable gross. The maximum gross weight (of the aircraft and its contents) which an aircraft is licensed to carry into the air on each flight stage.

                Weight, average available. The average capacity available for revenue traffic, determined by dividing available ton-miles by aircraft miles in revenue service.

                Weight, empty. The weight of the airframe, engines, propellers, and fixed equipment of an aircraft. Empty weight excludes the weight of the crew and payload, but includes the weight of all fixed ballast, unusable fuel supply, undrainable oil, total quantity of engine coolant, and total quantity of hydraulic fluid.

                Weight, passenger. For the purposes of this part, a standard weight of 200 pounds per passenger (including all baggage) is used for all civil operations and classes of service. Other weights may be prescribed in specific instances upon the initiative of the Department of Transportation or upon a factually supported request by an air carrier.

                Wet-Lease Agreement means an agreement under which one carrier leases an aircraft with flight crew to another air carrier.

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

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

            Section 04
            Air Carrier Groupings

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

                  Carrier Group
                  Total Annual Operating Revenues

                  I
                  0-$100,000,000

                  II
                  $100,000,001-$1,000,000,000

                  III
                  $1,000,000,001 +

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

            [Amdt. 241-60, 56 FR 12658, Mar. 27, 1991, as amended at 60 FR 66723, Dec. 26, 1995; No. DOT-OST-2014-0140, 84 FR 15931, Apr. 16, 2019]

            General Accounting Provisions

              Section 1
              Introduction to System of Accounts and Reports

              Sec. 1-1
              Applicability of system of accounts and reports.
              Each large certificated air carrier shall keep its books of account, records and memoranda and make reports to the BTS in accordance with this system of accounts and reports. The BTS reserves the right, however, under the provisions of sections 49 U.S.C. 41701 and 41708, to expand or otherwise modify the classes of carriers subject to this system of accounts and reports.
              [ER-1400, 50 FR 11, Jan. 2, 1985, as amended at 60 FR 66723, Dec. 26, 1995]

              Sec. 1-2
              Waivers from this system of accounts and reports.
              A waiver from any provision of this system of accounts or reports may be made by the BTS upon its own initiative or upon the submission of written request therefor from any air carrier, or group of air carriers, provided that such a waiver is in the public interest and each request for waiver expressly demonstrates that: existing peculiarities or unusual circumstances warrant a departure from a prescribed procedure or technique; a specifically defined alternative procedure or technique will result in a substantially equivalent or more accurate portrayal of operating results or financial condition, consistent with the principles embodied in the provisions of this system of accounts and reports; and the application of such alternative procedure will maintain or improve uniformity in substantive results as between air carriers.
              [ER-755, 37 FR 19726, Sept. 21, 1972, as amended at 60 FR 66723, Dec. 26, 1995]

              Sec. 1-3
              General description of system of accounts and reports.
              (a) This system of accounts and reports is designed to permit limited contraction or expansion to reflect the varying needs and capacities of different air carriers without impairing basic accounting comparability as between air carriers. In its administration three air carrier groups, designated Group I, Group II, and Group III, respectively (see section 04), are established by the BTS. This grouping will be reviewed from time to time upon petition of individual air carriers or by initiative of the BTS with the view of a possible regrouping of the air carriers.
              (b) Under the system of accounts prescribed, balance sheet elements are accounted for by all air carrier groups within a fixed uniform pattern of specific accounts. All profit and loss elements are accounted for within specific objective accounts established for each air carrier group resulting from dual classifications, designated for each air carrier group, which are descriptive of both basic areas of financial activity, or functional operation, and objective served. The profit and loss elements of the three air carrier groups can be reduced to broad objectives and general or functional classifications which are comparable for all air carrier groups. Both balance sheet and profit and loss accounts and account groupings are designed, in general, to embrace all activities, both air transport and other than air transport, in which the air carrier engages and provide for the separation of elements identifiable exclusively with other than air transport activities. Profit and loss elements which are recorded during the current accounting year are subclassified as between (1) those which relate to the current accounting year and adjustments of a recurrent nature applicable to prior accounting years, and (2) extraordinary items of material magnitude.
              (c) In order to afford air carriers as much flexibility and freedom as possible in establishing ledger and subsidiary accounts to meet their individual needs, a minimum number of account subdivisions have been prescribed in this Uniform System of Accounts. It is intended, however, that each air carrier, in maintaining its accounting records, will provide subaccount and subsidiary account segregations of accounting elements which differ in nature of accounting characteristics, in a manner which will render individual elements readily discernible and traceable throughout the accounting system, and will provide for relating profit and loss elements to applicable balance sheet counterparts.
              [ER-755, 37 FR 19726, Sept. 21, 1972, as amended at 60 FR 66723, Dec. 26, 1995]

              Sec. 1-4
              System of accounts coding.
              (a) A four digit control number is assigned for each balance sheet and profit and loss account. Each balance sheet account is numbered sequentially, within blocks, designating basic balance sheet classifications. The first two digits of the four digit code assigned to each profit and loss account denote a detailed area of financial activity or functional operation. The first two digits, thus assigned to each profit and loss account, are numbered sequentially within blocks, designating more general classifications of financial activity and functional operation. The second two digits assigned to profit and loss accounts denote objective classifications.
              (b) A fifth digit, appended as a decimal, has been assigned for internal control by the BTS of prescribed subdivisions of the primary objective balance sheet and profit and loss classifications. A different fifth digit code number from that assigned by the BTS may be adopted for internal recordkeeping by the air carrier provided the prescribed subclassification of objective accounts is not impaired and the code number assigned by the BTS is employed in reporting to the BTS on Form 41 Reports.
              [ER-755, 37 FR 19726, Sept. 21, 1972, as amended at 60 FR 66723, Dec. 26, 1995]

              Sec. 1-5
              Records.

              (a) The general books of account and all books, records, and memoranda which support in any way the entries therein shall be kept in such manner as to provide at any time full information relating to any account. The entries in each account shall be supported by such detailed information as will render certain the identification of all facts essential to a verification of the nature and character of each entry and its proper classification under the prescribed Uniform System of Accounts. Registers, or other appropriate records, shall be maintained of the history and nature of each note receivable and each note payable.
              (b) The books and records referred to herein include not only accounting records in a limited technical sense, but all other records such as organization tables and charts, internal accounting manuals and revisions thereto, minute books, stock books, reports, cost distributions and other accounting work sheets, correspondence, memoranda, etc., which may constitute necessary links in developing the history of, or facts regarding, any accounting or financial transaction.
              (c) All books, records and memoranda shall be preserved and filed in such manner as to readily permit the audit and examination thereof by representatives of the DOT. All books, records, and memoranda shall be housed or stored in such manner as to afford protection from loss, theft, or damage by fire, flood or otherwise and no such books and records shall be destroyed or otherwise disposed of, except in conformance with 14 CFR part 249 for the preservation of records.
              [ER-755, 37 FR 19726, Sept. 21, 1972, as amended at 60 FR 66723, Dec. 26, 1995]

              Sec. 1-6
              Accounting entities.
              (a) Separate accounting records shall be maintained for each air transport entity for which separate reports to the BTS are required to be made by sections 21(g) and for each separate corporate or organizational division of the air carrier. For purposes of this Uniform System of Accounts and Reports, each nontransport entity conducting an activity which is not related to the air carrier's transport activities and each transport-related activity or group of activities qualifying as a nontransport venture pursuant to paragraph (b) of this section, whether or not formally organized within a distinct organizational unit, shall be treated as a separately operated organizational division; except that provisions of this paragraph and paragraph (b) shall not apply to leasing activities.

              (b) As a general rule, any activity or group of activities comprising a transport-related service provided for in transport-related revenue and expense accounts 09 through 18 shall be considered a separate nontransport venture under circumstances in which either: (1) A separate corporate or legal entity has been established to perform such services, (2) the aggregate annual revenue rate, as determined in section 2-1(d), during either of the prior two years exceeds the greater of $1 million per annum or one percent of the air carrier's total annual transport revenues, or (3) the aggregate annual expense rate, as determined in section 2-1(d), during either of the prior two years exceeds the greater of $1 million or one percent of the carrier's total annual operating expenses: Provided, That revenues and expenses from in-flight sales, and interchange sales shall be considered related to air transportation and accounted for accordingly, regardless of the revenue or expense standard set forth above.
              (c) The records for each required accounting entity shall be maintained with sufficient particularity to permit a determination that the requirements of section 2-1 have been complied with.
              [ER-755, 37 FR 19726, Sept. 21, 1972, as amended by ER-841, 39 FR 11994, Apr. 2, 1974; ER-1022, 42 FR 46495, Sept. 15, 1977; ER-1027, 42 FR 60127, Nov. 25, 1977; 60 FR 66723, Dec. 26, 1995]

              Sec. 1-7
              Interpretation of accounts.
              To the end that uniform accounting may be maintained, questions involving matters of accounting significance which are not clearly provided for should be submitted to the Director, Office of Airline Information, K-25, Bureau of Transportation Statistics, for explanation, interpretation, or resolution.
              [Amdt. 241-58, 54 FR 5591, Feb. 6, 1989, as amended at 60 FR 66723, Dec. 26, 1995]

              Sec. 1-8
              Address for reports and correspondence.
              Reports required by this section shall be submitted to the Bureau of Transportation Statistics in a format specified in accounting and reporting directives issued by the Bureau of Transportation Statistics' Director of Airline Information.
              [Doc. No. OST-2006-26053, 75 FR 41583, July 16, 2010]

              Section 2
              General Accounting Policies

              Sec. 2-1
              Generally accepted accounting principles.
              (a) The accounting provisions contained in this part are based on generally accepted accounting principles (GAAP). Persons subject to this part are authorized to implement, as prescribed by the Financial Accounting Standards Board, newly issued GAAP pronouncements until and unless the Director, Office of Airline Information (OAI), issues an Accounting Directive making an initial determination that implementation of a new pronouncement would adversely affect the Department's programs.
              (b) The Director, OAI, shall review each newly issued GAAP pronouncement to determine its affect on the Department's regulatory programs. If adopting a specific change in GAAP would adversely affect the Department's programs, the Director will issue the results of the review in the form of an Accounting Directive. The directive will state the reasons why the particular change should not be incorporated in the uniform system of accounts and contain accounting guidance for maintaining the integrity of the Department's air carrier accounting provisions.
              (c) Objections and comments relating to the Department's decision not to implement a change in generally accepted principles may be addressed to Director, Office of Airline Information, K-25, U.S. Department of Transportation, 1200 New Jersey Avenue, SE., Washington, DC 20590. If significant objections are raised urging adoption of a particular GAAP pronouncement, the Department will institute a rulemaking.
              [[Amdt. 241-58, 54 FR 5592, Feb. 6, 1989, as amended at 60 FR 66723, Dec. 26, 1995]

              Sec. 2-2
              Basis of allocation between entities.
              (a) The provisions of this section shall apply to each person controlling an air carrier, each person controlled by the air carrier, as well as each transport entity and organizational division of the air carrier for which separate records must be maintained pursuant to section 1-6.
              (b) Each transaction shall be recorded and placed initially under accounting controls of the particular air transport entity or organizational division of the air carrier or member of an affiliated group to which directly traceable. If applicable to two or more accounting entities, a proration shall be made from the entity of original recording to other participating entities on such basis that the statements of financial condition and operating results of each entity are comparable to those of distinct legal entities. The allocations involved shall include all debits and credits associated with each entity.
              (c) For purposes of this section, investments by the air carrier in resources or facilities used in common by the regulated air carrier and those transport-related revenue services defined as separate nontransport ventures under section 1-6(b) shall not be allocated between such entities but shall be reflected in total in the appropriate accounts of the entity which predominately uses those investments. Where the entity of predominate use is a nontransport venture, the air carrier shall reflect the investment in account 1510.3, Advances to Associated Companies.

              (d) For purposes of this Uniform System of Accounts and Reports, all revenues shall be assigned to or apportioned between accounting entities on bases which will fully recognize the services provided by each entity, and expenses, or costs, shall be apportioned between accounting entities on such bases as will result: (1) With respect to transport-related services, in the assignment thereto of proportionate direct overheads, as well as direct labor and materials, of the applicable expense functions prescribed by this system of accounts and reports, and (2) with respect to separate ventures, in the assignment thereto of proportional general and administrative overheads as well as the direct overheads, labor, and materials.
              [ER-755, 37 FR 19726, Sept. 21, 1972, as amended by ER-841, 39 FR 11994, Apr. 2, 1974; ER-1401, 50 FR 238, Jan. 3, 1985. Redesignated and further amended by Amdt. 241-58, 54 FR 5592, Feb. 6, 1989]

              Sec. 2-3
              Distribution of revenues and expenses within entities.
              (a) Revenues and expenses attributable to a single natural objective account or functional classification shall be assigned accordingly.
              (b) Revenue and expense items which are common to two or more natural objective accounts shall be recorded in the objective accounts to which they predominantly relate.
              (c) Expense items contributing to more than one function shall be charged to the general overhead functions to which applicable except that where only incidental contribution is made to more than a single function an item may be included in the function to which primarily related, provided such function is not distorted by including an aggregation of amounts applicable to other functions. When assignment of expense items on the basis of the primary activity to which related does not in the aggregate result in a fair presentation of the expenses applicable to each function, apportionment shall be made between functions based upon a study of the contribution to each function during a representative period.
              [ER-755, 37 FR 19726, Sept. 21, 1972. Redesignated by Amdt. 241-58, 54 FR 5592, Feb. 6, 1989]

              Sec. 2-4
              Accounting period.
              (a) The accounting year of each air carrier subject to this Uniform System of Accounts shall be the calendar year unless otherwise approved by the BTS.
              (b) Each air carrier shall keep its financial accounts and records on a full accrual basis for each quarter so that all transactions, as nearly as may reasonably be ascertained, shall be fully reflected in the air carrier's books for the quarter in which revenues have been earned and the costs attaching to the revenues so earned in each quarter have been incurred independently of the incidence of sales or purchases and settlement with debtors or creditors.
              (c) Expenditures incurred during the current accounting year which demonstrably benefit operations to be performed during subsequent accounting years to a significant extent shall be deferred and amortized to the period in which the related operations are performed when of sufficient magnitude to distort the accounting results of the year in which incurred.
              (d) Expenditures charged directly or amortized to operations within one accounting year shall not be reversed in a subsequent accounting year and reamortized or charged directly against operations of subsequent years except that retroactive adjustments are permitted where necessary to conform with adjustments required by the DOT for ratemaking purposes.
              [ER-755, 37 FR 19726, Sept. 21, 1972, as amended by ER-1027, 42 FR 60127, Nov. 25, 1977; ER-1188, 45 FR 48870, July 22, 1980; 60 FR 66723, 66725, Dec. 26, 1995]

              Sec. 2-5
              Revenue and accounting practices.
              (a) Revenue accounting practices shall conform to the provisions of account 2160, Air Traffic Liability.
              (b) Each route air carrier shall physically verify the reliability of its passenger revenue accounting practice at least once each accounting year.
              (c) For those carriers who use the yield or average-fare method to determine earned revenue, the analysis supporting the verification shall include:
              (1) The cutoff date for the liability to be verified; such cutoff date shall be at the end of a calendar month.

              (2) The number of months after the cutoff date during which documents were examined to verify the liability; the number of months after the cutoff date during which documents are examined shall not exceed the maximums set forth below:

                  Class of carrier
                  Maximum months 1

                  TWA
                  18

                  Trunks (except TWA)
                  12

                  All other route air carriers
                  6

                  1 Applies only to carriers on a yield or average-fare basis.

              (3) The nature of the documents which were examined for purposes of the verification.
              (4) The totals for each of the various types of documents examined, on actual or sampling basis.
              (5) A description of the sampling technique and conversion to totals, if sampling was employed.
              (6) The amount and basis for all estimates employed in the verification.
              (7) The amount of resulting adjustments and the quarter in which such adjustments were, or are to be, made in the accounts.
              (d) For those carriers who use the sales-lift match method to determine earned revenue, the analysis supporting the physical inventory verification shall include:
              (1) The cutoff date for the liability to be verified; such cutoff date shall be at the end of a calendar month.
              (2) A trial balance as of the cutoff date of all subaccounts supporting the Air Traffic Liability control account; the subsidiary trial balance must agree with the Air Traffic Liability control account or a reconciliation statement furnished.
              (3) A statement to the effect that a sales listing of the value of all unmatched auditor coupons has been compiled and compared to the general ledger control figure; the statement required by this subparagraph shall indicate whether or not the value of the unmatched coupons is in agreement with the general ledger. If the sales listing is not in agreement with the Air Traffic Liability control account, the amount of such difference shall be shown on such statement.
              [ER-948, 41 FR 12290, Mar. 25, 1976, as amended by ER-1401, 50 FR 238, Jan. 3, 1985. Redesignated at Amdt. 241-58, 54 FR 5592, Feb. 6, 1989; 60 FR 66725, Dec. 26, 1995]

            Balance Sheet Classifications

              Section 3
              Chart of Balance Sheet Accounts

                [See footnotes at end of table]

                  Name of account
                  General classification

                  Current assets:

                  Cash

                  1010

                  Short-term investments

                  1100

                  Notes receivable

                  1200

                  Accounts receivable

                  1270

                  Allowance for uncollectible accounts

                  1290

                  Spare parts and supplies

                  1300

                  Allowance for obsolescence—Spare parts and supplies

                  1311

                  Prepaid items

                  1410

                  Other current assets

                  1420

                  Investments and special funds:

                  Investments in associated companies

                  1510

                  Investments in investor controlled companies

                  1510.1

                  Investments in other associated companies

                  1510.2

                  Advances to associated companies

                  1510.3

                  Other investments and receivables

                  1530

                  Special funds

                  1550

                  Property and equipment

                  1600-1700

                  Operating
                  Nonoperat-

                  ing

                  Airframes
                  1601
                  1701

                  Airframes
                  1601.1

                  1701.1

                  Unamortized airframe overhauls
                  1601.2

                  1701.2

                  Aircraft engines
                  1602
                  1702

                  Aircraft engines
                  1602.1

                  1702.1

                  Unamortized aircraft engine overhauls
                  1602.2

                  1702.2

                  Improvements to leased flight equipment
                  1607
                  1707

                  Flight equipment rotable parts and assemblies
                  1608
                  1708

                  Airframe parts and assemblies

                    1 1608.1

                    1 1708.1

                  Aircraft engine parts and assemblies

                    1 1608.5

                    1 1708.5

                  Other parts and assemblies

                    1 1608.9

                    1 1708.9

                  Flight equipment
                  1609
                  1709

                  Allowance for depreciation:

                  Airframes
                  1611
                  1711

                  Aircraft engines
                  1612
                  1712

                  Improvements to leased flight equipment
                  1617
                  1717

                  Flight equipment rotable parts and assemblies
                  1618
                  1718

                  Flight equipment airworthiness allowance

                    2 1629

                    2 1729

                  Equipment
                  1630
                  1730

                  Furniture, fixtures and office equipment
                  1636
                  1736

                  Improvements to leased buildings and equipment
                  1639
                  1739

                  General classification

                  Buildings
                  1640
                  1740

                  Maintenance buildings and improvements
                  1640.1

                  1740.1

                  Other buildings and improvements
                  1640.9

                  1740.9

                  Ground property and equipment
                  1649
                  1749

                  Allowance for depreciation:

                  Equipment
                  1650
                  1750

                  Improvements to leased buildings and equipment
                  1654
                  1754

                  Furniture, fixtures, and office equipment
                  1656
                  1756

                  Buildings
                  1660
                  1760

                  Maintenance buildings and improvements
                  1660.1

                  1760.1

                  Other buildings and improvements
                  1660.9

                  1760.9

                  Allowance for depreciation of flight equipment and ground property and equipment, and amortization of overhaul and airworthiness costs
                  1668
                  1768

                  Land
                  1679
                  1779

                  Equipment purchase deposits and advance payments
                  1685
                  1785

                  Construction work in progress
                  1689
                  1789

                  Leased property under capital leases
                  1695
                  1795

                  Capital leases—flight equipment
                  1695.1

                  1795.1

                  Capital leases—other property and equipment
                  1695.2

                  1795.2

                  Leased property under capital leases, accumulated amortization
                  1696
                  1796

                  Accumulated amortization—capitalized flight equipment
                  1696.1

                  1796.1

                  Accumulated amortization—capitalized other property and equipment
                  1696.2

                  1796.2

                  Property on operating-type lease to others and property held for lease

                  1797

                  Property on operating-type lease to others and property held for lease, accumulated depreciation

                  1798

                  Other assets:

                  Long-term prepayments

                  1820

                  Unamortized developmental and preoperating costs

                  1830

                  Other assets and deferred charges

                  1890

                  Current liabilities:

                  Current maturities of long-term debt

                  2000

                  Notes payable:

                  Banks

                  2005

                  Other

                  2015

                  Trade accounts payable

                  2021

                  Accounts payable—other

                  2025

                  Current obligations under capital leases

                  2080

                  Accrued salaries, wages

                  2110

                  Accrued vacation liability

                  2120

                  Accrued interest

                  2125

                  Accrued taxes

                  2130

                  Dividends declared

                  2140

                  Air traffic liability

                  2160

                  Other current liabilities

                  2190

                  Noncurrent liabilities:

                  Long-term debt

                  2210

                  Advances from associated companies

                  2240

                  Pension liability

                  2250

                  Noncurrent obligations under capital leases

                  2280

                  Other noncurrent liabilities

                  2290

                  Deferred credits:

                  Deferred income taxes

                  2340

                  Deferred investment tax credits

                  2345

                  Other deferred credits

                  2390

                  Stockholders' equity:

                  Preferred stock

                  2820

                  Common stock

                  2840

                  Additional capital invested

                  2890

                  Premium on capital stock

                  2890.1

                  Discount on capital stock

                  2890.2

                  Other capital stock transactions

                  2890.3

                  Retained earnings

                  2900

                  Subscribed and unissued stock
                  2860

                  Treasury stock

                  2990

                  1 Prescribed for group II and group III air carriers only.

                  2 At the option of the air carrier, these accounts may be assigned Nos. 2629 and 2729, respectively, for accounting purposes.

                Note: Digits to right of decimals and italicized codes established for BTS control purposes only.

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

              Section 4
              General
              (a) The balance sheet accounts are designed to show the financial condition of the air carrier as at a given date, reflecting the asset and liability balances carried forward subsequent to the closing or constructive closing of the air carrier's books of account.
              (b) The balance sheet accounts prescribed in this system of accounts for each air carrier group are set forth in Section 3, Chart of Balance Sheet Accounts. The balance sheet elements to be included in each account are presented in section 6.
              [ER-755, 37 FR 19726, Sept. 21, 1972, as amended by Amdt. 241-58, 54 FR 5592, Feb. 6, 1989]

              Section 5
              [Reserved]

              Section 6
              Objective Classification of Balance Sheet Elements

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

              Current Assets
              1010 Cash.
              (a) Record here all general and working funds available on demand as of the date of the balance sheet which are not formally restricted or earmarked for specific objectives. Funds deposited for special purposes which are to be satisfied within one year shall be included in account 1100 Short-term Investments and funds restricted as to general availability, which are not offset by current liabilities, shall be included in account 1550 Special Funds.
              (b) Each air carrier shall subdivide this account in such manner that the balance can be readily segregated as between balances in United States currency and the balances in each foreign currency.
              1100 Short-term Investments.
              (a) Record here the cost of short-term investments such as special deposits and United States Government securities, any other temporary cash investments, and the allowance for unrealized gain or loss on current marketable equity securities.
              (b) Special deposits for more than one year, not offset by current liabilities, shall not be included in this account but in account 1550 Special Funds.
              (c) This account should be charged or credited for discount or premium on United States Government securities or other securities which should be amortized to profit and loss account 80 Interest Income.
              1200 Notes Receivable.
              (a) Record here current notes receivable including those from associated companies, company personnel, and all other sources.
              (b) Balances of notes payable to associated companies shall not be offset against amounts carried in this account. Balances with associated companies which are not normally settled currently shall not be included in this account but in balance sheet account 1510.3 Advances to Associated Companies.
              [ER-980, 42 FR 29, Jan. 3, 1977, as amended by ER-1401, 50 FR 241, Jan. 3, 1985]
              1270 Accounts Receivable.
              (a) Record here current accounts receivable including those due from the United States Government, foreign governments, associated companies, company personnel, and other amounts due for the performance of air transportation.
              (b) Amounts due from the United States Government shall be maintained in such fashion as will clearly and separately identify service mail pay receivables, subsidy receivables and other than mail transportation receivables.
              (c) Amounts due for the performance of air transportation shall include gross amounts due whether settled through airline clearing houses or with individual carriers. Amounts payable collected as agent shall not be credited to this account, but should be included in account 2190 Other Current Liabilities.
              (d) Balances payable to associated companies shall not be offset against amounts carried in this account. Balances with associated companies which are not normally settled currently shall not be included in this account but in balance sheet account 1510.3 Advances to Associated Companies.
              [ER-980, 42 FR 29, Jan. 3, 1977, as amended by ER-1401, 50 FR 241, Jan. 3, 1985]
              1290 Allowance for Uncollectible Accounts.
              (a) Record here accruals for estimated losses from uncollectible accounts.
              (b) All accounts against which allowances have been established shall be examined quarterly for the purpose of redetermining the basis of accruals to be applied to subsequent accounting periods and the reasonableness of allowances already provided.
              1300 Spare parts and supplies.
              (a) Record here the cost of:

              (1) Flight equipment replacement parts of a type which ordinarily would be recurrently expended and replaced rather than repaired and reused;
              (2) Unissued fuel inventories for use in the overall or system operations of the carrier. Adjustments of inventories for aircraft fuel due to retroactive price increases and decreases shall not be entered in this account but in profit and loss account 45, Aircraft Fuels and Oils; and
              (3) Unissued and unapplied materials and supplies held in stock such as unissued shop materials, expendable tools, stationery and office supplies, passenger service supplies, and restaurant and food service supplies.
              (b) Costs paid by the air carrier such as transportation charges and customs duties; excise, sales, use and other taxes; special insurance; and other charges applicable to the cost of spare parts and supplies shall be charged to this account when they can be definitely allocated to specific items or units of property. If such costs cannot be so allocated, or if of minor significance in relation to the cost of such property, such amounts may be charged to balance sheet account 1890 Other Assets and Deferred Charges and cleared either by a suitable “loading charge” as the parts are used or by current charges to appropriate expense or property accounts; so long as the method of application does not cause material distortion in operating expenses from one accounting period to another.
              (c) Reusable spare parts and supplies recovered in connection with construction, maintenance, or retirement of property and equipment shall be included in this account at fair and reasonable values but in no case shall such values exceed original cost. Recoveries of normally reparable and reusable parts of a type for which losses in value may be covered on a practical basis through valuation allowance provisions shall be included in this account on an original cost basis. Scrap and nonusable parts, expensed from this account and recovered, shall be included at net amounts realizable therefrom with contra credit to the expense accounts initially charged.
              (d) The cost of rotable parts and assemblies of material value included in this account which ordinarily are repaired and reused and possess a service life approximating that of the primary property types to which related shall not be recorded in this account but in balance sheet account 1608 Flight Equipment Rotable Parts and Assemblies. For purposes of identifying rotable parts and assemblies of insignificant unit value which may be included in this account, a reasonable maximum unit value limitation may be established.
              (e) Any losses sustained or gains realized upon the abandonment or other disposition of flight equipment expendable parts shall be taken up as capital gains or losses in the periods in which sustained or realized. (See balance sheet account 1311.)
              (f) Items in this account shall be charged to appropriate expense accounts as issued for use. Profit and loss on sales of inventory items as a routine service to others shall be included in profit and loss accounts 14 General Service Sales—Associated Companies, or 16 General Service Sales—Outside, and the parts sold shall be removed from this accounts at full cost.
              (g) Materials and supplies held in small supply and purchased currently may be charged to appropriate expense accounts when purchased.
              (h) An allowance for inventory adjustment applicable to materials and supplies is prohibited. Items in this account shall be charged to appropriate expense accounts as issued for use.
              (i) Subaccounts shall be established within this account for the separate recording of each class or type of spare parts and supplies.
              [ER-980, 42 FR 29, Jan. 3, 1977, as amended by ER-1401, 50 FR 241, Jan. 3, 1985]
              1311 Allowance for Obsolescence—Spare Parts and Supplies.

              (a) Accruals shall be made to this account when allowances are established for losses in the value of expendable parts. The accruals to this account shall be made by charges to profit and loss account 73 Provisions for Obsolescence and Deterioration—Expendable Parts. Records shall be maintained with sufficient detail to permit association of the allowances with each class or type of expendable parts.

              (b) The accruals to this account shall be based upon a predetermination by the air carrier of that portion of the total inventory of each class and type of expendable parts against which an allowance for loss is to be accrued. Expendable parts issued for use in operations shall be charged to operating expenses as issued and shall not be charged to this account. If at the end of any calendar year the amount of the allowance exceeds the product of the applicable inventory for the year determined consistently on a year-end or average basis, and the sum of the standard percentage accrual rates for all prior years including the current, the allowance shall be adjusted downward by the amount of the excess. Such adjustments shall be charged to this account and credited to profit and loss account 73 Provisions for Obsolescence and Deterioration—Expendable Parts.
              (c) Where changing conditions necessitate a revision or adjustment in rates of accrual, such revision or adjustment shall be made applicable to current and subsequent accounting periods and shall not be applied retroactively to prior accounting periods. Following retirement of airframe or aircraft engine types to which related, any balance remaining in this account shall be offset against related balances carried in balance sheet account 1300 Spare Parts and Supplies and the net cleared to profit and loss accounts 88.5 Capital Gains and Losses—Operating Property or 88.6 Capital Gains and Losses—Other.
              [ER-980, 42 FR 29, Jan. 3, 1977, as amended by ER-1401, 50 FR 241, Jan. 3, 1985]
              1410 Prepaid Items.
              Record here prepayments of obligations which if not paid in advance would require the expenditure of working capital within one year, such as prepaid rent, insurance, taxes, interest, etc. Unexpired insurance and miscellaneous prepayments applicable to periods extending beyond one year where significant in amount shall be charged to balance sheet account 1820 Long-Term Prepayments.
              1420 Other Current Assets.
              Record here current assets not provided for in balance sheet accounts 1010 to 1410, inclusive.
              Investments and Special Funds
              1510 Investments in Associated Companies.
              (a) Record here net investments in associated companies.
              (b) [Reserved]
              (c) This account shall be subdivided by all air carrier groups as follows:
              [ER-980, 42 FR 29, Jan. 3, 1977, as amended by ER-1027, 42 FR 60128, Nov. 25, 1977; ER-1188, 45 FR 48870, July 22, 1980]

                1510.1 Investments in Investor Controlled Companies.

                Record here the cost of investments in investor controlled companies except that permanent impairment in the value of securities may be reflected through charges to profit and loss classification 8100, Nonoperating Income or Expense—Net. This account shall also include the equity in undistributed earnings or losses since acquisition. In the event dividends are declared by such companies, the air carrier shall credit this account for its share in dividends declared and debit balance sheet account 1270 Accounts Receivable. This account shall separately state: (a) The cost of such investments at date of acquisition and (b) the equity in undistributed earnings or losses since acquisition.
                [Amdt. 241-58, 54 FR 5592, Feb. 6, 1989]
                1510.2 Investments in Other Associated Companies.

                Record here the cost of investments in associated companies other than investor controlled companies. Cost shall represent the amount paid at the date of acquisition without regard to subsequent changes in the net assets through earnings or losses of such associated companies. However, permanent impairment in the value of securities may be reflected through charges to profit and loss classification 8100, Nonoperating Income or Expense—Net.
                [Amdt. 241-58, 54 FR 5592, Feb. 6, 1989]
                1510.3 Advances to Associated Companies.

                (a) Record here advances, loans, and other amounts not settled currently with investor controlled and other associated companies and nontransport divisions. Balances receivable from and payable to different associated companies and different nontransport divisions shall not be offset.

                (b) In the case of nontransport divisions three subaccounts shall be maintained:
                (1) Net investment;
                (2) current net profit or loss; and
                (3) current accounts receivable or payable between the air carrier and the nontransport division.
                (c) Each nontransport division shall be accounted for separately in net amounts receivable which shall be included in this account or net amounts payable which shall be included in balance sheet account 2240 Advances from Associated Companies.

              [ER-980, 42 FR 29, Jan. 3, 1977. Redesignated by ER-1401, 50 FR 241, Jan. 3, 1985]
              1530 Other Investments and Receivables.
              Record here notes and accounts receivable not due within one year, investments in securities issued by others, investments in leveraged leases, the noncurrent net investment in direct financing and sales-type leases, and the allowance for unrealized gain or loss on noncurrent marketable equity securities. Securities held as temporary cash investments shall not be included in this account but in balance sheet account 1100 Short-Term Investments. Investments in and receivables from associated companies which are not settled currently shall be included in balance sheet account 1510 Investments in Associated Companies.
              [Amdt. 241-58, 54 FR 5592, Feb. 6, 1989]
              1550 Special Funds.
              Record here special funds not of a current nature and restricted as to general availability. Include items such as sinking funds, cash and securities posted with courts of law, employee's funds for purchase of capital stock, pension funds under the control of the air carrier and equipment purchase funds.
              Operating Property and Equipment

                “Operating Property and Equipment” shall encompass items used in air transportation services and services related thereto.

              1601 Airframes.
              (a) Record here the total cost to the air carrier of airframes of all types and classes together with the full complement of instruments, appurtenances and fixtures comprising complete airframes including accessories necessary to the installation of engines and flight control and transmission systems, except as specifically provided otherwise in accounts 1602 and 1607. Also record here in separate subaccounts the costs of airframes overhauls accounted for on a deferral and amortization basis.
              (b) Airframes designed to permit multiple payload configurations shall be recorded in this account at the total cost of the maximum complement of instruments, appurtenances, and fixtures used in the air carrier's operations.
              (c) This account shall be subdivided as follows by all air carriers:

                1601.1 Airframes.

                1601.2 Unamortized Airframe Overhauls.

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

                1602.1 Aircraft Engines.

                1602.2 Unamortized Aircraft Engine Overhauls.

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

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

                1608.1 Airframe Parts and Assemblies.

                1608.5 Aircraft Engine Parts and Assemblies.

                1608.9 Other Parts and Assemblies.

              [ER-980, 42 FR 29, Jan. 3, 1977, as amended by Amdt. 241-58, 54 FR 5593, Feb. 6, 1989]
              1609 Flight Equipment.
              This classification is established only for purposes of control by the BTS and shall reflect the total cost of property and equipment of all types and classes used in the in-flight operations of aircraft.
              [ER-980, 42 FR 29, Jan. 3, 1977, as amended at 60 FR 66723, Dec. 26, 1995]
              1629 Flight Equipment Airworthiness Allowances.
              (a) Record here accumulated provisions for overhauls of flight equipment.

              (b) Separate subaccounts shall be established for recording accumulated provisions related to each type of airframe and aircraft engine, respectively.

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

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

              (g) Property and equipment of all types and classes used in storing and distributing fuel, oil and water, such as fueling trucks, tanks, pipelines, etc.

              (h) All other ground equipment of all types and classes such as medical, photographic, employees' training equipment, and airport and airway lighting equipment.
              [ER-980, 42 FR 29, Jan. 3, 1977, as amended by Amdt. 241-58, 54 FR 5593, Feb. 6, 1989]
              1636 Furniture, Fixtures, and Office Equipment.
              Record here the total cost to the air carrier of furniture, fixtures and office equipment of all types and classes wherever used or located.
              [Amdt. 241-58, 54 FR 5593, Feb. 6, 1989]
              1639 Improvements to Leased Buildings and Equipment.
              Record here the total cost to the air carrier incurred in connection with modification, conversion, or other improvements to leased buildings and equipment.
              1640 Buildings.
              Record here the total cost to the air carrier of owned buildings, structures and equipment and related improvements. Each air carrier shall maintain the following subaccounts in which the values fairly assignable to maintenance and other operations shall be separately recorded:

                1640.9 Other Buildings and Improvements.

                1640.1 Maintenance Buildings and Improvements.

              [Amdt. 241-58, 54 FR 5593, Feb. 6, 1989]
              1649 Ground Property and Equipment.
              This classification is established only for purposes of control by the BTS and shall reflect the total cost of property and equipment of all types and classes other than flight equipment, equipment purchase deposits and advance payments, land, and work in progress.
              [ER-980, 42 FR 29, Jan. 3, 1977, as amended at 60 FR 66723, Dec. 26, 1995]
              1668 Allowance for Depreciation of Flight Equipment and Ground Property and Equipment and Amortization of Overhaul and Airworthiness Costs.
              (a) Record in accounts 1611 and 1618, inclusive, and 1650 through 1660, inclusive, accruals for depreciation of flight equipment and ground property and equipment.
              (b) As set forth in section 3, Chart of Balance Sheet Accounts, separate accounts shall be established for depreciation allowances to parallel balance sheet accounts 1601 through 1608 established for recording the cost of flight equipment and accounts 1630 through 1640 established for recording the cost of ground property and equipment.
              (c) This account shall be used as a control account and shall reflect the total amounts recorded in balance sheet accounts 1611 through 1618 and 1650 through 1660 in addition to account 1629 Flight Equipment Airworthiness Allowance.
              1679 Land.
              Record here the initial cost and the cost of improving land.
              [Amdt. 241-58, 54 FR 5593, Feb. 6, 1989]
              1685 Equipment Purchase Deposits and Advance Payments.
              Record here the amount of purchase deposits and advance payments made to acquire operating property and equipment under outstanding purchase commitments. Funds set aside but not deposited or used as advance payments should not be included in this account but in Account 1550 Special Funds.
              1689 Construction Work in Progress.
              (a) Record here all direct and indirect costs of the air carrier that are expended for constructing and readying property and equipment of all types and classes for installation in operations. The amount reported shall reflect all such expenses that are accumulated to the balance sheet date. Where properly includable in the property and equipment classification, record here also the accumulated costs for uncompleted overhauls of airframes, aircraft engines, or other material units of property.

              (b) At the option of the air carrier this account may be used as a clearing account for recording the cost of property and equipment acquisitions prior to a distribution thereof to the appropriate property accounts, whether or not conditioning or modification is necessary before placing in service.
              [ER-980, 42 FR 29, Jan. 3, 1977, as amended by Amdt. 241-58, 54 FR 5594, Feb. 6, 1989]
              1695 Leased Property Under Capital Leases.
              (a) Record here the total costs to the air carrier for all property obtained under capital leases.
              (b) This account shall be subdivided by all air carrier groups as follows:

                1695.1 Capital Leases—Flight Equipment.

                1696.2 Capital Leases—Other Property and Equipment.

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

                1696.1 Accumulated Amortization—Capitalized Flight Equipment.

                1696.2 Accumulated Amortization—Capitalized Other Property and Equipment.

              [ER-1401, 50 FR 241, Jan. 3, 1985, as amended by Amdt. 241-58, 54 FR 5594, Feb. 6, 1989]
              Non-operating Property and Equipment

                “Nonoperating Property and Equipment” includes investments in property and equipment not separately accounted for within a nontransport division but assigned to other than air transportation and transport-related services, and property and equipment held for future use.

              1700 Non-operating Property and Equipment.
              The total cost to the air carrier of nonoperating property and equipment and related allowances for depreciation shall be recorded in balance sheet accounts 1701 through 1796 which, as set forth in section 3, Chart of Balance Sheet Accounts, parallel balance sheet accounts 1601 through 1689, for recording the cost of operating property and equipment. In addition to these accounts, Account 1797 has been established for recording the cost of property on operating-type leases to others and property held for lease; any accumulated depreciation applicable to the assets contained in Account 1797 shall be recorded in Account 1798.
              [ER-1013, 42 FR 37515, July 21, 1977]
              1797 Property on Operating-type Lease to Others and Property Held for Lease.
              Record here the total cost to the air carrier of property on operating-type lease to others and property held for lease.
              [Amdt. 241-58, 54 FR 5594, Feb. 6, 1989]
              1798 Property on Operating-type Lease to Others and Property Held for Lease—Accumulated Depreciation.
              Record here accruals for depreciation of property on operating-type leases to others and property held for lease.
              [Amdt. 241-58, 54 FR 5594, Feb. 6, 1989]
              Other Assets
              1820 Long-Term Prepayments.
              Record here prepayments of obligations applicable to periods extending beyond one year such as payments on leased property and equipment and other payments and advances for rents, rights, or other privileges.
              1830 Unamortized Developmental and Preoperating Costs.
              (a) Record here costs accumulated and deferred by the air carrier pertaining to the development of new routes or extension of existing routes, preparation for operation of new routes subsequent to certification by the DOT, the integration of new types of aircraft or services, and other preparations for substantial alterations in operational characteristics.

              (b) Costs chargeable to this account shall include items directly related to each specific developmental or preoperating project, such as travel and incidental expenses, legal expenses, flight crew training expenses, and regulatory proceedings expenses. Expenses which would be otherwise incurred in the normal air transport operations conducted by the air carrier during the current accounting period shall not be allocated to developmental or preoperating projects and charged to this account. Nor shall this account be credited for revenues from aircraft flights of a developmental or preoperating character the operating costs of which are charged to this account. Any such revenues shall be included in the profit and loss account for the respective type of revenue. This account shall include charges for only those costs associated with projects directed at obtaining new operating authority or expanding the physical capacity of the air carrier and shall not include costs incurred for the purpose of generating revenues through rate adjustment. Accordingly, costs associated with regulatory proceedings involving route awards or amendments, whether successful or unsuccessful to the carrier, shall be included in this account whereas costs associated with regulatory proceedings involving rate or other revenue generation matters shall be charged to appropriate expense accounts.
              (c) Records shall be established for new routes or extensions of existing routes to record separately: (1) Costs incurred in acquiring or applying for the routes, including all costs incurred prior to certification by the DOT and inauguration of service by the air carrier, and (2) costs incurred after revenue operations begin over the new routes or extensions.
              (d) Subclassifications shall be established to record for each developmental project the period covered and the purpose of each item of expense. Each air carrier shall classify the costs of all projects included in this account between: (1) Those related and contributing to the normal air transportation services currently conducted by the air carrier; (2) those related to services conducted by the air carrier which are extraneous to or are not otherwise related to the air transportation services currently conducted; and (3) those held in suspense pending status determination in terms of possible contribution to the air transportation services and inauguration of the service or operation to which related.
              (e) Amounts included in this account which contribute to or protect the position of the normal air transportation services currently conducted by the carrier shall be amortized to profit and loss account 74 Amortization, unless otherwise approved or directed by the DOT. Other amounts included in this account shall be amortized or charged to profit and loss account 89.9 Other Miscellaneous Nonoperating Debits.
              [ER-980, 42 FR 29, Jan. 3, 1977, as amended at 60 FR 66723, Dec. 26, 1995]
              1890 Other Assets and Deferred Charges.
              (a) Record here other assets and deferred charges not provided for elsewhere.
              (b) Record here debits, the proper final disposition of which cannot be determined until additional information has been received. This account shall include the accumulated cost of labor, materials and outside services used in the process of manufacturing flight equipment expendable parts and materials and supplies for stock, the accumulated cost of jobs in process for others, projects to be charged to expense upon completion. This account shall also include unamortized debt expense, property acquisition adjustments and intangible assets.

              (c) This account shall be charged with property loss and other costs related to casualties and credited with recoveries from purchased insurance and salvage. A debit or credit balance in this account related to property retired as a result of a casualty shall be recorded in profit and loss account 88.5 Capital Gains and Losses—Operating Property or 88.6 Capital Gains and Losses—Other; however, any balances related to property not retired or to other casualties shall be recorded in profit and loss account 58 Injuries, Loss and Damage. Proceeds from purchased insurance for property damage, received prior to repair of such damage, shall not be credited to this account but to balance sheet account 2390 Other Deferred Credits pending repair. The records for each major casualty shall be kept in such manner as to clearly disclose insurance recoveries and the total costs, which shall include charges for the depreciated cost of property damaged or destroyed, costs for clearing wrecks and damaged property and equipment, including salaries and wages for the repair thereof, and payments for damages to property of others. The cost of casualties shall not be charged directly against retained earnings or appropriations thereof, but shall be cleared through the applicable profit and loss accounts in accordance with the foregoing.
              (d) Record here the unamortized debt expense related to the assumption by the air carrier of debt of all types and classes. Amounts recorded shall be amortized to profit and loss account 84 Amortization of Debt Discount, Premium and Expense.
              (e) Unamortized debt expense shall not include the excess of the par value of debt securities over the cash value of consideration received. Instead, discounts shall be recorded in a subaccount of the related liability.
              (f) Record here the cost of patents, copyrights and other intangible properties, rights and privileges acquired as a part of a business from other air carriers and other intangibles not provided for elsewhere. This account shall be subdivided to reflect the nature of each intangible asset included in this account.
              (g) Record here the difference between the purchase price to the air carrier of property and equipment acquired as a part of a business from another air carrier through consolidation, merger, or reorganization, pursuant to a plan approved by the DOT, and the depreciated cost to the predecessor company at date of acquisition. Record here also such differences relating to purchases of property and equipment from associated companies unless other treatment is approved by the BTS. Separate subaccounts shall be established to record the amounts applicable to each such acquisition.
              (h) Balances in this account relating to property acquisition adjustments shall be amortized by charges to profit and loss account 89.9 Other Miscellaneous Nonoperating Debits unless otherwise directed or approved by the BTS.
              [ER-1401, 50 FR 242, Jan. 3, 1985, as amended at 60 FR 66723, Dec. 26, 1995]
              Current Liabilities
              2000 Current Maturities of Long-term Debt.
              Record here the face value or principal amount of debt securities issued or assumed by the air carrier which is payable within 12 months of the balance sheet date unless such debt is to refinance, or where payment is to be made from assets of a type not properly classifiable as current.
              2005 Notes Payable—Banks.
              Record here the face value of all notes, drafts, acceptances, or other similar evidences of indebtedness payable on demand or within one year to a bank or another financial institution with the exception of current maturities of long-term debt which should be included in account 2000.
              2015 Notes Payable—Other.
              Record here the face value of all notes, drafts, acceptances, or other similar evidences of indebtedness payable on demand or within one year to an associated company or party other than a financial institution.
              2021 Trade Accounts Payable.
              Record here all accounts payable within one year which accrued from generally recognized trade practices.
              2025 Accounts Payable—Other.
              Record here all accounts payable within one year which are not provided for in accounts 2000 to 2021, inclusive.
              2080 Current Obligations Under Capital Leases.
              Record here the total current liability applicable to property obtained under capital leases.
              [ER-1013, 42 FR 37515, July 21, 1977; 42 FR 38555, July 29, 1977; Amdt. 241-58, 54 FR 5594, Feb. 6, 1989]
              2110 Accrued Salaries, Wages.

              Record here amounts accrued for unpaid compensation to personnel, which have been charged to profit and loss or capitalized, as compensation for the period in which accrued.

              2120 Accrued Vacation Liability.
              (a) Record here accruals of liabilities for personnel vacations. All vacation policies, plans, or agreements whether oral or written shall be accounted for on an accrual basis whenever a lag exists between vacations earned and vacations taken, thereby resulting in a liability against the carrier under the applicable policy, plan or agreement.
              (b) This account shall be credited and the applicable personnel compensation expense account concurrently charged with the cost of any lag between vacations accrued and vacations taken. Accruals may be based upon standard rates of lag, if such standard rates are verified by physical inventory and adjusted accordingly at least once each calendar year. Adjustments of balances in this account shall be cleared to applicable compensation expense accounts.
              [ER-980, 42 FR 29, Jan. 3, 1977, as amended by ER-1027, 42 FR 60128, Nov. 25, 1977; ER-1188, 45 FR 48870, July 22, 1980; Amdt. 241-58, 54 FR 5594, Feb. 6, 1989]
              2125 Accrued Interest.
              Record here interest payable within one year for all outstanding obligations.
              2130 Accrued Taxes.
              (a) Record here accruals for currently payable income and other forms of taxes which constitute a charge borne by the air carrier as opposed to those collected as an agent for others.
              (b) Each air carrier shall disclose in the footnotes of its BTS Form 41 for each calendar quarter whether utilized credits are accounted for by the flow-through method or the deferred method. The method selected shall be consistently followed by the carrier.
              [Amdt. 241-58, 54 FR 5594, Feb. 6, 1989, as amended at 60 FR 66723, Dec. 26, 1995]
              2140 Dividends Declared.
              Record here in separate subdivisions for each class and series of capital stock, all dividends declared but unpaid on capital stock.
              2160 Air Traffic Liability.
              (a) Record here balances representing the value of unused transportation sold. Transportation sold includes both sales for transportation to be provided by the air carrier and transportation to be provided by another air carrier.
              (b) Earned revenue, determined by the yield or average fare method or by the sales-lift-match method, shall be consistently and periodically cleared by debit to this account, and by credit to the appropriate profit and loss revenue account. Amounts receivable for transportation to be provided by the air carrier shall be debited to balance sheet account 1270 Accounts Receivable.
              (c) Carriers who determine earned revenue on a yield or average fare method may not accrue income during the accounting year in anticipation of a favorable annual physical inventory determination, nor for unused or unpresented tickets.
              (d) Subaccounts to this account shall be established to record balances pertaining to passenger and cargo transportation sold, respectively, and separately to sales in scheduled and non-scheduled services.
              [ER-980, 42 FR 29, Jan. 3, 1977, as amended by ER-1401, 50 FR 242, Jan. 3, 1985]
              2190 Other Current Liabilities.
              Record here current and accrued liabilities, including amounts payable collected as an agent, not provided for in accounts 2110 to 2160, inclusive.
              Non-current Liabilities
              2210 Long-Term Debt.
              (a) Record here the face value of principal amount of debt securities issued or assumed by the air carrier and held by other than associated companies, which has not been retired or cancelled and is not payable within 12 months of the balance sheet date.

              (b) In cases where debt coming due within 12 months is to be refunded, or where payment is to be made from assets of a type not properly classifiable as current, the amount payable shall not be removed from this account. In addition, this account shall include short-term debt obligations when both the intent to refinance the short-term obligations on a long-term basis is established and the ability to consummate this refinancing can be demonstrated.
              [Amdt. 241-58, 54 FR 5594, Feb. 6, 1989]
              2240 Advances from Associated Companies.
              Record here net amounts due associated companies and nontransport divisions for notes, loans and advances which are not settled currently. Balances payable to and receivable from different associated companies shall not be offset.
              2250 Pension Liability.
              Record here the liability of the air carrier under employee pension plans, to which either or both employees and the air carrier contribute, if the plan is administered by the air carrier.
              2280 Noncurrent Obligations under Capital Leases.
              Record here the total noncurrent liability applicable to property obtained under capital leases.
              [ER-1013, 42 FR 37515, July 21, 1977, as amended by Amdt. 241-58, 54 FR 5594, Feb. 6, 1989]
              2290 Other Noncurrent Liabilities.
              Record here noncurrent liabilities not provided for in balance sheet accounts 2210 to 2280, inclusive, such as the liability for installments received on capital stock from company personnel who are not bound by legally enforceable subscription contracts, accruals for personnel dismissal liability, and accruals of other demonstrable miscellaneous noncurrent liabilities.
              [ER-1401, 50 FR 242, Jan. 3, 1985]
              Deferred Credits
              2340 Deferred Income Taxes.
              Record here credits and debits representing the net tax effect of material timing differences originating and reversing in the current accounting period, giving appropriate recognition to the portion of investment tax credits which would have been allowed if taxes were based on pretax accounting income by a reduction of the deferred tax provision.
              [Amdt. 241-58, 54 FR 5594, Feb. 6, 1989]
              2345 Deferred Investment Tax Credits.
              Record here investment tax credits utilized as reduction of tax liabilities, when the carrier exercises the option to defer such credits for amortization over the service life of the related equipment.
              [Amdt. 241-58, 54 FR 5594, Feb. 6, 1989]
              2390 Other Deferred Credits.
              Record here credits, not provided for elsewhere, the proper final disposition of which cannot be effected until additional information has been received.
              Stockholders' Equity
              2820 Preferred Stock.
              Record here in separate subdivisions for each class and series, the par or stated value of preferred capital stock issued or in the case of no-par stock without stated value, the full consideration received.
              2840 Common Stock.
              Record here in separate subdivisions for each class and series, the par or stated value of common stock issued or in case of no-par stock without stated value, the full consideration received.
              2860 Subscribed and Unissued Stock.
              Record here in separate subdivisions for each class and series, the par or stated value, or the subscription price in the case of stock without par or stated value, of legally enforceable subscriptions to the capital stock of the air carrier.
              2890 Additional Capital Invested.

              (a) Record herein separate subdivisions for each class and series, the difference between the price at which capital stock is sold and the par or stated value of the stock; gains or losses arising from the reacquisition and the resale or retirement of each class and series of capital stock; donations; the excess of retained earnings capitalized over par or stated value of capital stock issued; adjustments in capital resulting from reorganization or recapitalization; and proceeds attributable to detachable stock purchase warrants related to debt issues. This account shall also include balances of contributions to the business enterprise of individual proprietors or partners.
              (b) Each air carrier shall maintain the following subaccounts:

                2890.1 Premium on capital stock. Record here in separate subdivisions for each class and series of capital stock issued the excess of the cash value of consideration received over the par or stated value and accrued dividends of stock issued together with assessments against stockholders representing payments required in excess of par or stated value.
                2890.2 Discount on capital stock. Record here in separate subdivisions for each class and series of capital stock issued, the excess of the par or stated value over the cash value of consideration received, less accrued dividends. Discounts applicable to a particular class and series of capital stock may be offset against premiums from the same class and series of capital stock. Discounts and premiums on different classes and series of capital stock shall not be offset. The air carrier may, at its option, record in this subaccount commissions and expenses incurred in the issuance of capital stock and may charge balance sheet account 2900 Retained Earnings to the extent capital stock expense may exceed any existing balance of paid-in capital over the par or stated value of capital stock.
                2890.3 Other Capital Stock Transactions. Record here in separate subdivisions for each class and series, the balance of credits arising from the reacquisition and resale or cancellation of capital stock, credits arising from a reduction in the par or stated value of capital stock or the net balance of credits or debits resulting from other paid-in capital transactions such as proceeds attributable to detachable stock purchase warrants related to debt issues, not provided for elsewhere, which is identified with a particular class and series of capital stock.

              2900 Retained Earnings.
              (a) Record here the net income or loss from operations of the air carrier and dividends declared on capital stock.
              (b) This account shall not be charged with dividends on treasury stock. If a dividend is not payable in cash, the values entered in this account shall be completely described.
              (c) Delayed credits or charges to income shall not be entered in this account directly but in appropriate profit and loss accounts.
              (d) Net income or loss accounted for during the current fiscal year shall not be entered in this account until the close of the fiscal year. Individual proprietorships or partnerships may clear net income or loss accounted for during the year directly to balance sheet account 2890 Additional Capital Invested, or optionally, to this account for subsequent transfer to balance sheet account 2890 Additional Capital Invested.
              (e) A separate subaccount to this account shall be maintained to record changes in the valuation of marketable equity securities included in noncurrent assets. Such changes shall be reflected in this subaccount to the extent the balance in this subaccount represents a net unrealized loss as of the current balance sheet date.
              [ER-980, 42 FR 29, Jan. 3, 1977, as amended by ER-1401, 50 FR 242, Jan. 3, 1985]
              2990 Treasury Stock.
              (a) Record here the cost of capital stock issued by the air carrier reacquired by it and not retired or canceled.
              (b) Separate records shall be established for each class and series of capital stock held in this account.
              [ER-980, 42 FR 29, Jan. 3, 1977, as amended by Amdt. 241-58, 54 FR 5594, Feb. 6, 1989]

            Profit and Loss Classification

              Section 7
              Chart of Profit and Loss Accounts

                  Objective classification of profit and loss elements
                  Functional or financial activity to which applicable (00)
                  Group I carriers
                  Group II carriers
                  Group III carriers

                    operating revenues and expenses

                  Transport revenues:

                  01 Passenger:

                  01.1 Passenger—first class
                  31, 32
                  31, 32
                  31, 32.

                  01.2 Passenger—coach
                  31, 32
                  31, 32
                  31, 32.

                  05 Mail:

                  05.1 Priority
                  31, 32
                  31, 32
                  31, 32.

                  05.2 Nonpriority
                  31, 32
                  31, 32
                  31, 32.

                  05.3 Foreign
                  31, 32
                  31, 32
                  31, 32.

                  06 Property:

                  06.1 Freight
                  31, 32
                  31, 32
                  31, 32.

                  06.2 Excess passenger baggage
                  31, 32
                  31, 32
                  31, 32.

                  07 Charter:

                  07.1 Passenger
                  32
                  32
                  32.

                  07.2 Property
                  32
                  32
                  32.

                  19 Air transport—other:

                  19.1 Reservation cancellation fees
                  31, 32
                  31, 32
                  31, 32.

                  19.2 Miscellaneous operating revenues
                  31, 32
                  31, 32
                  31, 32.

                  08 Public service revenues (subsidy)
                  48
                  48
                  48.

                  Transport-related revenues and expenses:

                  09 In-flight sales:

                  09.1 Liquor and food—gross revenues
                  48
                  48
                  48.

                  09.2 Movies and stereo—gross revenues
                  48
                  48
                  48.

                  09.3 Other—gross revenues
                  48
                  48
                  48.

                  09.4 Liquor and food—depreciation expense
                  71
                  71
                  71.

                  09.5 Liquor and food—other expense
                  71
                  71
                  71.

                  09.6 Movies and stereo—depreciation expense
                  71
                  71
                  71.

                  09.7 Movies and stereo—other expense
                  71
                  71
                  71.

                  09.8 Other—depreciation expense
                  71
                  71
                  71.

                  09.9 Other—expense
                  71
                  71
                  71.

                  10 Restaurant and food service (ground):

                  10.1 Gross revenues
                  48
                  48
                  48.

                  10.2 Depreciation expense
                  71
                  71
                  71.

                  10.3 Other expenses
                  71
                  71
                  71.

                  11 Rents:

                  11.1 Gross revenues
                  48
                  48
                  48.

                  11.2 Depreciation expense
                  71
                  71
                  71.

                  11.3 Other expenses
                  71
                  71
                  71.

                  12 Limousine service:

                  12.1 Gross revenues
                  48
                  48
                  48.

                  12.2 Depreciation expense
                  71
                  71
                  71.

                  12.3 Other expenses
                  71
                  71
                  71.

                  13 Interchange sales:

                  13.1 Associated companies—gross revenues
                  48
                  48
                  48.

                  13.2 Outside—gross revenues
                  48
                  48
                  48.

                  13.3 Associated companies—depreciation expense
                  71
                  71
                  71.

                  13.4 Associated companies—other expense
                  71
                  71
                  71.

                  13.5 Outside—depreciation expense
                  71
                  71
                  71.

                  13.6 Outside—other expense
                  71
                  71
                  71.

                  14 General service sales:

                  14.1 Associated companies—gross revenues
                  48
                  48
                  48.

                  14.2 Outside—gross revenues
                  48
                  48
                  48.

                  14.3 Associated companies—depreciation expense
                  71
                  71
                  71.

                  14.4 Associated companies—other expense
                  71
                  71
                  71.

                  14.5 Outside—depreciation expense
                  71
                  71
                  71.

                  14.6 Outside—other expense
                  71
                  71
                  71.

                  16 Substitute (replacement) service:

                  16.1 Gross revenues
                  48
                  48
                  48.

                  16.2 Expense
                  71
                  71
                  71.

                  17 Air cargo service:

                  17.1 Gross revenues
                  48
                  48
                  48.

                  17.2 Depreciation expense
                  71
                  71
                  71.

                  17.3 Other expense
                  71
                  71
                  71.

                  18 Other transport related items:

                  18.1 Gross revenues
                  48
                  48
                  48.

                  18.2 Depreciation expense
                  71
                  71
                  71.

                  18.3 Other expense
                  71
                  71
                  71.

                  19 Other operating revenues:

                  19.1 Reservations cancellation fees
                  31, 32
                  31, 32
                  31, 32.

                  19.9 Miscellaneous operating revenues
                  31, 32, 41
                  31, 32, 41
                  31, 32, 41.

                  Transport expenses:

                  21 General management personnel
                  53, 69
                  53, 55, 64, 67, 68
                  53, 55, 61, 62, 63, 65, 66, 68.

                  23 Pilots and copilots
                  51
                  51
                  51.

                  24 Other flight personnel
                  51, 69
                  51, 55
                  51, 55.

                  25 Maintenance labor:

                  25.1 Labor—airframes and other flight equipment

                  52
                  52.

                  25.2 Labor—aircraft engines

                  52
                  52.

                  25.6 Labor—flight equipment
                  52

                  25.9 Labor—ground property and equipment
                  52, 53
                  52, 53
                  52, 53.

                  26 Aircraft and traffic handling personnel
                  69

                  26.1 General aircraft and traffic handling personnel

                  64, 67
                  61, 62, 63, 65.

                  26.2 Aircraft control personnel

                  64
                  61.

                  26.3 Passenger handling personnel

                  64, 67
                  62, 65.

                  26.4 Cargo handling personnel

                  64, 67
                  62, 65.

                  28 Trainees, instructors and unallocated shop labor:

                  28.1 Trainees and instructors
                  51, 53, 69
                  51, 53, 55, 64,67, 68
                  51, 53, 55, 61, 62, 63, 65, 66, 68.

                  28.2 Unallocated shop labor
                  53
                  53
                  53.

                  30 Communications personnel
                  53, 69
                  53, 55, 64, 67, 68
                  53, 55, 61, 62, 63, 65, 66, 68.

                  31 Recordkeeping and statistical personnel
                  53, 69
                  53, 55, 64, 67, 68
                  53, 55, 61, 62, 63, 65, 66, 68.

                  32 Lawyers and law clerks
                  69
                  68
                  68.

                  33 Traffic solicitors
                  69
                  67
                  65.

                  34 Purchasing personnel
                  53, 69
                  53, 68
                  53, 68.

                  35 Other personnel
                  53, 69
                  53, 55, 64, 67, 68
                  53, 55, 61, 62, 63, 65, 66, 68.

                  36 Personnel expenses
                  51, 53, 69
                  51, 53, 55, 64, 67, 68
                  51, 53, 55, 61, 62, 63, 65, 66, 68.

                  37 Communications purchased
                  53, 69
                  53, 55, 64, 67, 68
                  53, 55, 61, 62, 63, 65, 66, 68.

                  38 Light, heat, power, and water
                  53, 69
                  53, 55, 64, 67, 68
                  53, 55, 61, 62, 63, 65, 66, 68.

                  39 Traffic commissions
                  69

                  39.1 Commissions—passenger

                  67
                  65.

                  39.2 Commissions—property

                  67
                  65.

                  40 Legal fees and expenses
                  69
                  68
                  68.

                  41 Professional and technical fees and expenses
                  51, 53, 69
                  51, 53, 55, 64, 67, 68
                  51, 53, 55, 61, 62, 63, 65, 66, 68

                  43 General services purchased:

                  43.1 Airframe and other flight equipment repairs

                  52
                  52

                  43.2 Aircraft engine repairs
                  52
                  52

                  43.6 Flight equipment repairs
                  52

                  43.7 Aircraft interchange charges
                  51, 52
                  51, 52
                  51, 52

                  43.8 General interchange service charges
                  52, 69
                  52, 55, 64, 67, 68
                  52, 55, 61, 62, 63, 65, 66, 68

                  43.9 Other services
                  52, 53, 69
                  52, 53, 55, 64, 67, 68
                  52, 53, 55, 61, 62, 63, 65, 66, 68

                  44 Landing fees
                  69
                  64
                  61.

                  45 Aircraft fuels and oils
                  51

                  45.1 Aircraft fuels

                  51
                  51.

                  45.2 Aircraft oils

                  51
                  51.

                  46 Maintenance materials:

                  46.1 Airframes and other flight equipment

                  52
                  52

                  46.2 Aircraft engines

                  52
                  52.

                  46.6 Flight equipment
                  52

                  46.9 Ground property and equipment
                  52, 53
                  52, 53
                  52, 53.

                  47 Rentals
                  51, 53, 69
                  51, 53, 55, 64, 67, 68
                  51, 53, 55, 61, 62, 63, 65, 66, 68.

                  49 Shop and servicing supplies
                  53, 69
                  53, 64
                  53, 61.

                  50 Stationery, printing, and office supplies
                  53, 69
                  53, 55, 64, 67, 68
                  53, 55, 61, 62, 63, 65, 66, 68.

                  51 Passenger food expense
                  69
                  55
                  55.

                  53 Other supplies
                  51, 53, 69
                  51, 53, 55, 64, 67, 68
                  51, 53, 55, 61, 62, 63, 65, 66, 68.

                  54 Inventory adjustments
                  53, 69
                  53, 55
                  53, 55.

                  55 Insurance—general
                  51, 53, 69
                  51, 53, 68
                  51, 53, 68.

                  56 Insurance—traffic liability
                  69
                  55, 64
                  55, 62.

                  57 Employee benefits and pensions
                  51, 53, 69
                  51, 53, 55, 64, 67, 68
                  51, 53, 55, 61, 62, 63, 65, 66, 68.

                  58 Injuries, loss and damage
                  51, 53, 69
                  51, 53, 55, 64, 67, 68
                  51, 53, 55, 61, 62, 63, 65, 66, 68.

                  59 Schedules and timetables
                  69
                  67
                  65, 66.

                  60 Advertising
                  69
                  67
                  66.

                  61 Foreign exchange gains and losses
                  69
                  68
                  68.

                  62 Other promotional and publicity expenses
                  69
                  67
                  66.

                  63 Interrupted trips expense
                  69
                  55
                  55.

                  64 Memberships
                  53, 69
                  53, 55, 64, 67, 68
                  53, 55, 61, 62, 63, 65, 66, 68.

                  65 Corporate and fiscal expenses
                  69
                  68
                  68.

                  66 Uncollectible accounts
                  69
                  68
                  68.

                  67 Clearance, customs and duties
                  69
                  64
                  61, 62.

                  68 Taxes—payroll
                  51, 53, 69
                  51, 53, 55, 64, 67, 68
                  51, 53, 55, 61, 62, 63, 65, 66, 68.

                  69 Taxes—other than payroll
                  51, 69
                  51, 68
                  51, 68.

                  71 Other expenses
                  51, 53, 69
                  51, 53, 55, 64, 67, 68
                  51, 53, 55, 61, 62, 63, 65, 66 68.

                  72 Aircraft overhauls
                  52, 53
                  52, 53
                  52, 53.

                  72.1 Airworthiness allowance provisions—airframes
                  52, 53
                  52, 53
                  52, 53.

                  72.3 Airframe overhauls deferred
                  52, 53
                  52, 53
                  52, 53.

                  72.6 Airworthiness allowance provisions—aircraft engines
                  52, 53
                  52, 53
                  52, 53.

                  72.8 Aircraft engine overhauls deferred
                  52, 53
                  52, 53
                  52, 53.

                  73 Provisions for obsolescence and deterioration—expendable parts:

                  73.1 Current provisions
                  70
                  70
                  70.

                  73.2 Inventory decline credits
                  70
                  70
                  70.

                  74 Amortizations:

                  74.1 Developmental and preoperating expenses
                  70
                  70
                  70.

                  74.2 Other intangibles
                  70
                  70
                  70.

                  75 Depreciation:

                  75.1 Airframes
                  70
                  70
                  70.

                  75.2 Aircraft engines
                  70
                  70
                  70.

                  75.3 Airframe parts
                  70
                  70
                  70.

                  75.4 Aircraft engine parts
                  70
                  70
                  70.

                  75.5 Other flight equipment
                  70
                  70
                  70.

                  75.6 Flight equipment
                  70
                  70
                  70.

                  75.8 Maintenance equipment and hangars
                  70
                  70
                  70.

                  75.9 General ground property
                  70
                  70
                  70.

                  76 Amortization expense, capital leases:

                  76.1 Amortization—capitalized flight equipment
                  70
                  70
                  70

                  76.2 Amortization—capitalized other property and equipment
                  70
                  70
                  70

                  77 Uncleared expense credits:

                  77.8 Uncleared interchange expense credits
                  53, 69
                  53, 55, 64, 67, 68
                  53, 55, 61, 62, 63, 65, 66, 68.

                  77.9 Other uncleared expense credits
                  53, 69
                  53, 55, 64, 67, 68
                  53, 55, 61, 62, 63, 65, 66, 68.

                  78 Direct maintenance—flight equipment
                  52
                  52
                  52.

                  79 Applied burden Dr/Cr:

                  79.6 Flight equipment
                  52 Dr, 53 Cr
                  52 Dr, 53 Cr
                  52 Dr, 53 Cr.

                  79.8 General ground property
                  52 Dr, 53 Cr
                  52 Dr, 53 Cr
                  52 Dr, 53 Cr.

                    nonoperating income and expense

                  81 Interest on long-term debt and capital leases:

                  81.1 Interest expense, long-term debt
                  81
                  81
                  81

                  81.2 Interest expense, capital leases
                  81
                  81
                  81

                  82 Other interest:

                  82.1 Interest expense, short-term debt
                  81
                  81
                  81

                  83.1 Imputed interest capitalized—credit
                  81
                  81
                  81

                  83.2 Imputed interest deferred—debit
                  81
                  81
                  81

                  83.3 Imputed interest deferred—credit
                  81
                  81
                  81

                  83.4 Interest capitalized—credit
                  81
                  81
                  81

                  84.1 Amortization of discount and expense on debt
                  81
                  81
                  81

                  84.2 Amortization of premium on debt
                  81
                  81
                  81

                  85 Foreign exchange gains and losse
                  81
                  81
                  81

                  89 Other nonoperating income and expense-net:

                  80.0 Interest income
                  81
                  81
                  81

                  86.0 Income from nontransport ventures
                  81
                  81
                  81

                  87.0 Equity in income of investor controlled companies
                  81
                  81
                  81

                  88.1 Intercompany transaction adjustment-credit
                  81
                  81
                  81

                  88.2 Dividend income
                  81
                  81
                  81

                  88.3 Net unrealized gain or loss on marketable equity securities
                  81
                  81
                  81.

                  88.4 Net realized gain or loss on marketable equity securities
                  81
                  81
                  81.

                  88.5 Capital gains and losses—operating property
                  81
                  81
                  81.

                  88.6 Capital gains and losses—other
                  81
                  81
                  81.

                  88.7 Unapplied cash discounts
                  81
                  81
                  81.

                  88.9 Other miscellaneous nonoperating credits
                  81
                  81
                  81.

                  89.1 Intercompany transaction adjustment—debit
                  81
                  81
                  81.

                  89.9 Other miscellaneous nonoperating debits
                  81
                  81
                  81.

                    income taxes

                  91 Provision for income taxes:

                  91.1 Income taxes before investment tax credits
                  91
                  91
                  91.

                  91.2 Investment tax credits utilized
                  91
                  91
                  91.

                  92 Provisions for deferred income taxes:

                  92.1 Current provisions for deferred taxes
                  91
                  91
                  91.

                  92.2 Application of deferred taxes
                  91
                  91
                  91.

                  92.3 Adjustment of deferred taxes
                  91
                  91
                  91.

                  93 Investment tax credits deferred and amortized:

                  93.1 Investment tax credits deferred
                  91
                  91
                  91.

                  93.2 Amortization of deferred investment tax credits
                  91
                  91
                  91.

                  94 Excess profits taxes
                  91
                  91
                  91.

                    discontinued operations

                  95 Discontinued operations:

                  95.1 Income from discontinued operations
                  96
                  96
                  96.

                  95.2 Loss on disposal of discontinued operations
                  96
                  96
                  96.

                    extraordinary items

                  96 Extraordinary items
                  97
                  97
                  97.

                  97 Income taxes applicable to extraordinary items
                  97
                  97
                  97.

                    changes in accounting principles

                  98 Cumulative effects of change in accounting principles
                  98
                  98
                  98.

              [ER-755, 37 FR 19726, Sept. 21, 1972, as amended by ER-781, 37 FR 25223, Nov. 29, 1972; 37 FR 28277, Dec. 22, 1972; ER-797, 38 FR 10926, May 3, 1973; ER-841, 39 FR 11995, Apr. 2, 1974; ER-948, 41 FR 12295, Mar. 25, 1976; ER-980, 42 FR 35, Jan. 3, 1977; ER-1013, 42 FR 37515, July 21, 1977; ER-1401, 50 FR 242, Jan. 3, 1985; Amdt. 241-56, 52 FR 9129, Mar. 23, 1987; Amdt. 241-58, 54 FR 5594, Feb. 6, 1989]

              Section 8
              General
              (a) The profit and loss accounts are designed to reflect, through natural groupings, the elements entering into the derivation of income or loss accruing to the proprietary interests during each accounting period.
              (b) The prescribed system of accounts provides for the co-ordinate grouping of all revenues and expenses in terms of both major natural objectives and functional activities and for subdivision of both to provide varying degrees of detail for air carriers of differing accounting capacities and/or requirements.
              (c) The detailed objective accounts established for each air carrier group, by the dual subdivision of profit and loss elements in terms of both natural objectives and functional activities, are set forth in section 7, Chart of Profit and Loss Accounts.
              (d) The prescribed system of accounts provides generally that profit and loss elements shall be grouped in accordance with their inherent characteristics within the following primary classifications:
              (1) Operating revenues. (i) This primary classification shall include revenues of a character usually and ordinarily derived from the performance of air transportation and air transportation-related services, which relate to services performed during the current accounting year, and adjustments of a recurrent nature applicable to services performed in prior accounting years.
              (ii) Operating revenues shall be subclassified in terms of functional activities as provided in section 9.
              (2) Operating expenses. (i) This primary classification shall include expenses of a character usually and ordinarily incurred in the performance of air transportation and air transportation-related services, which relate to services performed during the current accounting year, and adjustments of a recurring nature attributable to services performed in prior accounting years.
              (ii) Operating expenses shall be subclassified in terms of functional activities as provided in sections 10 and 11.
              (3) Nonoperating income and expense—net. This primary classification (8100) shall include income and loss incident to commercial ventures not inherently related to the performance of the common carrier air transport services of the accounting entity; other revenues and expenses attributable to financing or other activities which are extraneous to and not an integral part of air transportation or its incidental services; and special recurrent items of a nonperiod nature.
              (4) Income taxes for current period. This primary classification (9100) shall include provisions for Federal, state, local, and foreign taxes which are based upon the net income of the air carrier for the current period together with refunds for excess profits credits or carryback of losses and increases or reductions of income taxes of prior years of a magnitude which will not distort net income of the current accounting year. Income taxes applicable to special income credits or debits recorded in profit and loss classification 9700 Extraordinary Items, and other material income tax items not allocable to income of the current accounting year, shall not be included in this classification but in profit and loss classification 9700 Extraordinary Items.
              (5) Discontinued operations. This primary classification (9600) shall include earnings and losses of discontinued nontransport operations and gains or losses from the disposal of nontransport operations the result of which are customarily accounted for through profit and loss objective accounts 86, 87 and 88.2.
              (6) Extraordinary items. This primary classification (9700) shall include material items characterized by their unusual nature and infrequent occurrence.
              (7) Cumulative effect of changes in accounting principles. This primary classification (9800) shall include the cumulative effect of material changes in accounting principles.
              [ER-755, 37 FR 19726, Sept. 21, 1972, as amended by ER-841, 39 FR 11997, Apr. 2, 1974; ER-980, 42 FR 36, Jan. 3, 1977, Amdt. 241-58, 54 FR 5594, Feb. 6, 1989]

              Section 9
              Functional Classification—Operating Revenues
              3900 Transport Revenues.
              This classification is prescribed for all air carrier groups and shall include all revenues from the air transportation of traffic of all classes. It shall consist of the following subclassifications:

                3100 Scheduled Services.

                This subclassification shall include revenues from the transportation by air of individual passengers or cargo shipments (as opposed to charter flights) pursuant to published schedules, including extra sections and other flights performed as an integral part of published flight schedules.
                3200 Nonscheduled Services.

                This subclassification shall include revenues from the transportation by air of traffic applicable to the performance of aircraft charters, and other air transportation services not part of services performed pursuant to published flight schedules (but shall not include data applicable to flights performed as extra sections to published flight schedules, which shall be reported in the subclassification 3100 Scheduled Services).

              [ER-755, 37 FR 19726, Sept. 21, 1972, as amended by ER-1401, 50 FR 243, Jan. 3, 1985]
              4800 Transport-Related Revenues.
              (a) This classification is prescribed for all air carrier groups and shall include all revenues from the United States Government as direct grants or aids for providing air transportation facilities and all revenues from services which grow from and are incidental to the air transportation services performed by the air carrier.

              (b) Revenues related to services of a magnitude or scope beyond an incidental adjunct to air transportation services shall not be included in this classification (see section 1-6(b)). Revenues applicable to such services shall be included in profit and loss classification 8100, Nonoperating Income and Expense-Net, and the accounting modified to conform with that of a nontransport division whether or not the service is organized as a nontransport division.
              [ER-841, 39 FR 11997, Apr. 2, 1974]

              Section 10
              Functional Classification—Operating Expenses of Group I Air Carriers
              5100 Flying Operations.
              (a) This function shall include expenses incurred directly in the in-flight operation of aircraft and expenses attaching to the holding of aircraft and aircraft operational personnel in readiness for assignment to an in-flight status.
              (b) This function shall not include expenses incurred in repairing, servicing or storing aircraft, expenses incurred on the ground in protecting and controlling the inflight movement of aircraft, or the compensation of ground personnel and other expenses incurred in scheduling or preparing aircraft or aircraft operational personnel for flight assignment. Such expenses shall be included in function 5400 Maintenance or function 6900 General Services and Administration.
              5400 Maintenance.
              (a) This function shall include all expenses, both direct and indirect, specifically identifiable with the repair and upkeep of property and equipment as may be required to meet operating and safety standards; in inspecting or checking property and equipment in accordance with prescribed operational standards; and in polishing or cleaning property and equipment when such polishing or cleaning is not an incidental routine in connection with the normal productive use of property and equipment.
              (b) This function shall include the cost of direct labor, materials, and outside services and maintenances overhead or other costs specifically associated with maintenance operations regardless of the location at which incurred.
              (c) This function shall not include costs incurred in the construction, improvement, or modification of property and equipment even when necessitated to meet new or changed operating or safety standards. Such costs shall be charged to appropriate property and equipment accounts.
              (d) Costs incurred by aircraft handling personnel in visual inspection, minor check and servicing of aircraft, while in line service, shall not be included in this function when performed as an incidental routine during the normal productive use of aircraft but shall be included in function 6900 General Services and Administration.
              (e) Each Group I air carrier shall maintain the following subfunctions:

                5200 Direct Maintenance.

                a. This subfunction shall include the costs of labor, materials and outside services consumed directly in periodic maintenance operations and the maintenance and repair of property and equipment, of all types and classes, regardless of the location at which incurred, exclusive of costs specifically identified with maintenance property and equipment expenses in balance sheet accounts 1630 Equipment, 1639 Improvements to Leased Buildings and Equipment, and 1640.1 Maintenance Buildings and Improvements which shall be included in subfunction 5300 Maintenance Burden.
                b. The cost of direct labor, materials and supplies, as well as outside repairs, used in the maintenance and repair of property and equipment shall be recorded on running job orders or tickets covering repairs and periodic inspections except servicing. Where a number of like items are maintained on a group basis, it will be necessary to maintain only one job order for each group.
                c. When supervisory personnel such as crew chiefs, inspectors and foremen are engaged in direct labor in connection with equipment maintenance, a proportionate part of their salaries and wages shall be charged to the appropriate direct labor accounts. The cost of transporting property to and from shops for repair and maintenance shall be included as a part of the cost of the materials and supplies used in the repair or maintenance of such property and equipment. Transportation charges, customs and duties, etc.; shall be included in the cost of repairs and maintenance operations when made by outside parties.
                5300 Maintenance Burden.

                a. This subfunction shall include all overhead or general expenses which are specifically identified with activities involved in periodic maintenance operations and the maintenance and repair of property and equipment of all types and classes, including the cost of direct labor, materials and outside services identified with the maintenance and repair of maintenance property and equipment included in balance sheet accounts 1630 Equipment, 1639 Improvements to Leased Buildings and Equipment, and 1604.1 Maintenance Buildings and Improvements. It shall include expenses specifically related to the administration of maintenance stocks and stores, the keeping of pertinent maintenance operations records, and the scheduling, controlling, planning and supervision of maintenance operations.
                b. This subfunction shall not include expenses related to financial accounting, purchasing or other overhead activities which are of general applicability to all operating functions. Such expenses shall be included in function 6900 General Services and Administration.
                c. This subfunction shall include only those expenses attributable to the current air transport operations of the air carrier. Maintenance burden associated with capital projects of the air carrier, other than overhauls of airframes and aircraft engines shall be allocated to such projects. Maintenance burden incurred in common with services to other companies and operating entities shall be allocated to such services on a pro rata basis unless the services are so infrequent in performance or small in volume as to result in no appreciable demands upon the air carrier's maintenance facilities. When overhauls of airframes or aircraft engines are as a consistent practice accounted for on an accrual basis instead of being expensed directly, maintenance burden shall be allocated to such overhauls on a pro rata basis. Standard burden rates may be employed for quarterly allocations of maintenance burden provided the rates are reviewed at the close of each calendar year. When the actual burden rate for the year differs materially from the standard burden rate applied, adjustment shall be made to reflect the actual cost incurred for the full accounting year. Allocations of maintenance burden to capital projects, and service sales to others shall be made through the individual maintenance burden objective accounts, except that the air carrier may make such allocations by credits to profit and loss account 77 Uncleared Expense Credits provided that use of that account will not undermine the significance of the individual maintenance burden objective accounts in terms of the expense levels associated with the air carrier's air transport services. Maintenance burden allocated to overhauls shall be credited to profit and loss subaccounts 5372.1 or 5372.6 Airworthiness Allowance Provisions.

              [ER-755, 37 FR 19726, Sept. 21, 1972, as amended by ER-980, 42 FR 36, Jan. 3, 1977; ER-1027, 42 FR 60128, Nov. 25, 1977; ER-1188, 45 FR 48870, July 22, 1980; Amdt. 241-58, 54 FR 5595, Feb. 6, 1989]
              6900 General Services and Administration.
              This function shall include expenses incurred on the ground in controlling and protecting the in-flight movement of aircraft; landing, handling, or servicing aircraft on the ground; selling transportation; servicing and handling traffic of all classes; promoting the development of traffic; administering operations generally; and all other expenses not otherwise provided for in functions 5100 Flying Operations, 5400 Maintenance and 7000 Depreciation and Amortization.
              7000 Depreciation and Amortization.
              This function shall include all charges to expense to record losses suffered through current exhaustion of the serviceability of property and equipment due to wear and tear from use and the action of time and the elements, which are not replaced by current repairs, as well as losses in serviceability caused by obsolescence, supersession, discoveries, change in demand or actions by public authority. It shall also include charges for the amortization of capitalized developmental and preoperating costs, leased property under capital leases and other intangible assets applicable to the performance of air transportation. (See sections 6-1696, 1830 and 1890.)
              [Amdt. 241-58, 54 FR 5595, Feb. 6, 1989]
              7100 Transport-Related Expenses.
              (a) This function shall include all expense items applicable to the generation of transport-related revenues included in section 9, Function 4800.
              (b) Such expense related to services of a magnitude or scope beyond an incidental adjunct to air transportation services shall not be included in this function (see section 1-6(b)). Expenses applicable to the generation of such revenues shall be included in profit and loss classification 8100, Nonoperating Income and Expense-Net, and the accounting modified to conform with that of a nontransport division whether or not the service is organized as a nontransport division.

              (c) This function shall also include expenses representing increases in costs incurred in common with the air transport service, to the extent such increases result from the added transport-related services, as well as a pro rata share of the costs incurred by the air carrier in operating facilities which are used jointly with others. As a general rule, this function shall not include those expenses, other than joint facilities costs, which would remain as an essential part of the air transport services if the transport-related services were terminated.
              [ER-841, 39 FR 11997, Apr. 2, 1974, as amended by ER-1401, 50 FR 243, Jan. 3, 1985]

              Section 11
              Functional Classification—Operating Expenses of Group II and Group III Air Carriers
              5100 Flying Operations.
              (a) This function shall include expenses incurred directly in the in-flight operation of aircraft and expenses attaching to the holding of aircraft and aircraft operational personnel in readiness for assignment to an in-flight status.
              (b) This function shall not include expenses incurred in repairing, servicing or storing aircraft, expenses incurred on the ground in protecting and controlling the in-flight movement of aircraft, or compensation of ground personnel and other expenses incurred in scheduling or preparing aircraft or aircraft operational personnel for flight assignment. Such expenses shall be included in function 5400 Maintenance, or function 6400 Aircraft and Traffic Servicing.
              5400 Maintenance.
              (a) This function shall include all expenses, both direct and indirect, incurred in the repair and upkeep of property and equipment as may be required to meet operating and safety standards; in inspecting or checking property and equipment in accordance with prescribed operational standards; and in polishing or cleaning property and equipment when such polishing or cleaning is not an incidental routine in connection with the normal productive use of property and equipment.
              (b) This function shall include the cost of direct labor, materials, and outside services and maintenance overhead or other costs associated with maintenance operations regardless of the location at which incurred.
              (c) This function shall not include costs incurred in the construction, improvement, or modification of property and equipment even when necessitated to meet new or changed operating or safety standards. Such costs shall be charged to appropriate property and equipment accounts.
              (d) Costs incurred by aircraft handling personnel in visual inspection, minor check and servicing of aircraft, while in line service, shall not be included in this function when performed as an incidental routine during the normal productive use of aircraft but shall be included in function 6400 Aircraft and Tariff Servicing.
              (e) Both Group II air carriers and Group III air carriers shall maintain the following subfunctions:

                5200 Direct Maintenance.

                a. This subfunction shall include the costs of labor, materials and outside services consumed directly in periodic maintenance operations and the maintenance and repair of property and equipment of all types and classes, regardless of the location at which incurred, exclusive of maintenance property and equipment included in balance sheet accounts 1630 Equipment, 1639 Improvements to Leased Buildings and Equipment, and 1640.1 Maintenance Buildings and Improvements, which shall be included in subfunction 5300 Maintenance Burden.
                b. The cost of direct labor, materials and supplies, as well as outside repairs, used in the maintenance and repair of property and equipment shall be recorded on running job orders or tickets covering repairs and periodic inspections except servicing. Where a number of like items are maintained on a group basis, it will be necessary to maintain only one job order for each group.

                c. When supervisory personnel such as crew chiefs, inspectors and foremen are engaged in direct labor in connection with equipment maintenance, a proportionate part of their salaries and wages shall be charged to the appropriate direct labor accounts. The cost of transporting property to and from shops for repair and maintenance shall be included as a part of the cost of the materials and supplies used in the repair or maintenance of such property and equipment. Transportation charges, customs and duties, etc., shall be included in the cost of repairs and maintenance operations when made by outside parties.

                5300 Maintenance Burden.

                a. This subfunction shall include all overhead or general expenses used directly in the activities involved in periodic maintenance operations and the maintenance and repair of property and equipment of all types and classes, including the cost of direct labor, materials and outside services used in the maintenance and repair of maintenance property and equipment included in balance sheet accounts 1630 Equipment, 1639 Improvements to Leased Buildings and Equipment, and 1640.1 Maintenance Buildings and Improvements. It shall include expenses related to the administration of maintenance stocks and stores, the keeping of pertinent maintenance operation records, and the scheduling, controlling, planning and supervision of maintenance operations.
                b. This subfunction shall not include expenses related to financial accounting, purchasing or other overhead activities which are of general applicability to all operating functions. Such expenses shall be included in function 6800 General and Administrative.
                c. This subfunction shall include only those expenses attributable to the current air transport operations of the air carrier. Maintenance burden associated with capital projects of the air carrier, other than overhauls of airframes and aircraft engines, shall be allocated to such projects. Maintenance burden incurred in common with services to other companies and operating entities shall be allocated to such services on a pro rata basis unless the services are so infrequent in performance or small in volume as to result in no appreciable demands upon the air carrier's maintenance facilities. When overhauls of airframes or aircraft engines are as a consistent practice accounted for on an accrual basis instead of being expensed directly, maintenance burden shall be allocated to such overhauls on a pro rata basis. Standard burden rates may be employed for quarterly allocations of maintenance burden provided the rates are reviewed at the close of each calendar year. When the actual burden rate for the year differs materially from the standard burden rate applied, adjustment shall be made to reflect the actual costs incurred for the full accounting year. Allocations of maintenance burden to capital projects, and service sales to others shall be made through the individual maintenance burden objective accounts, except that the air carrier may make such allocations by credits to profit and loss account 77 Uncleared Expense Credits under such circumstances in which the use of that account will not undermine the significance of the individual maintenance burden objective accounts in terms of the expense levels associated with the air carrier's air transport services. Maintenance burden allocated to overhauls shall be credited to profit and loss subaccounts 5372.1 or 5372.6 Airworthiness Allowance Provisions.

              [ER-755, 37 FR 19726, Sept. 21, 1972, as amended by ER-980, 42 FR 36, Jan. 3, 1977; ER-1401, 50 FR 244, Jan. 3, 1985; Amdt. 241-58, 54 FR 5595, Feb. 6, 1989]
              5500 Passenger Service.
              This function shall include all expenses chargeable directly to activities contributing to the comfort, safety and convenience of passengers while in flight and when flights are interrupted. It shall not include expenses incurred in enplaning or deplaning passengers, or in securing and selling passenger transportation and caring for passengers prior to entering a flight status. Such expenses shall be included in functions 6400 Aircraft and Traffic Servicing and 6700 Promotion and Sales, respectively.
              6400 Aircraft and Traffic Servicing.
              (a) This function shall include the compensation of ground personnel and other expenses incurred on the ground incident to the protection and control of the in-flight movement of aircraft, scheduling and preparing aircraft operational crews for flight assignment, handling and servicing aircraft while in line operation, servicing and handling traffic on the ground, subsequent to the issuance of documents establishing the air carrier's responsibility to provide air transportation, and in-flight expenses of handling and protecting all nonpassenger traffic including passenger baggage.
              (b) This function shall include only those aircraft servicing and cleaning expenses which are incurred as an incidental routine during the normal productive use of aircraft in line operations. It shall not include expenses incurred in the repair and maintenance of property and equipment, or in checking or inspecting property and equipment in accordance with prescribed operational standards when such activities are not an incidental routine during the normal productive use of aircraft. Such expenses shall be included in function 5400 Maintenance.

              (c) This function shall not include expenses incurred in securing traffic, arranging aircraft space for traffic sold or in issuing documents confirming traffic sales and establishing the air carrier's responsibilities to provide air transportation. Such expenses shall be included in function 6700 Promotion and Sales. However, for purposes of this system of accounts, expenses attributable to the operation of airport traffic offices, excluding reservation centers, shall be included in this function. Expenses attributable to the operation of reservation or aircraft space control centers shall be included in function 6700 Promotion and Sales regardless of the location at which incurred.
              (d) Group III air carriers shall further subdivide this function as follows:

                6100 Aircraft Servicing.

                a. This subfunction shall include the compensation of ground personnel and other expenses incurred on the ground incident to the protection and control of the in-flight movement of aircraft; scheduling or preparing aircraft operational crews for flight assignment; landing and parking aircraft; visual inspection, routine checking, servicing and fueling of aircraft; and other expenses incurred on the ground incident to readying for arrival and takeoff of aircraft.
                6200 Traffic Servicing.

                a. This subfunction shall include the compensation of ground personnel and other expenses incurred on the ground incident to handling traffic of all types and classes on the ground subsequent to the issuance of documents establishing the air carrier's responsibility to provide air transportation. Expenses attributable to the operation of airport traffic offices shall also be included in this subfunction; expenses attributable to reservations centers shall be excluded. It shall include expenses incurred in both enplaning and deplaning traffic as well as expenses incurred in preparation for enplanement and all expenses subsequent to deplanement.
                b. This subfunction shall also include costs incurred in handling and protecting all nonpassenger traffic while in flight. It shall not include expenses incurred in contributing to the comfort, safety and convenience of passengers while in flight or when flights are interrupted. Such expenses shall be included in function 5500 Passenger Service.
                6300 Servicing Administration.

                a. This subfunction shall include expenses of a general nature incurred in performing supervisory or administrative activities relating solely and in common to subfunctions 6100 Aircraft Servicing and 6200 Traffic Servicing.
                b. This subfunction shall not include supervisory or administrative expenses which can be charged directly to subfunction 6100 Aircraft Servicing or subfunction 6200 Traffic Servicing. Nor shall this subfunction include expenses of a general administrative character and of significant amount regularly contributing to operating functions generally. Such expenses shall be included in function 6800 General and Administrative.
                c. The expenses in this subfunction shall be recorded separately for each geographic location at which incurred.

              6700 Promotion and Sales.
              (a) This function shall include expenses incurred in creating public preference for the air carrier and its services; stimulating the development of the air transport market; and promoting the air carrier or developing air transportation generally.
              (b) It shall also include the compensation of personnel and other expenses incident to documenting sales; expenses incident to controlling and arranging or confirming aircraft space for traffic sold; expenses incurred in direct sales solicitation and selling of aircraft space; and expenses incurred in developing tariffs and schedules for publication.
              (c) This function shall not include expenses incurred in handling traffic subsequent to the issuance of documents establishing the air carrier's responsibility to provide air transportation which shall be included in functions 5500 Passenger Service and 6400 Aircraft and Traffic Servicing. However, for purposes of this system of accounts, expenses attributable to the operation of airport traffic offices, excluding reservation centers, shall be included in function 6400 Aircraft and Traffic Servicing. Expenses attributable to the operation of reservation or aircraft space control centers shall be included in function 6700 Promotion and Sales regardless of the location at which incurred.
              (d) Group III air carriers shall subdivide this function as follows:

                6500 Reservations and Sales.

                This subfunction shall include expenses incident to direct sales solicitation, documenting sales, controlling and arranging or confirming aircraft space sold, and in developing tariffs and schedules for publication. It shall also include expenses attributable to the operation of city traffic offices. Expenses incurred in stimulating traffic and promoting the air carrier or air transportation generally shall not be included in this subfunction but in subfunction 6600 Advertising and Publicity.
                6600 Advertising and Publicity.

                a. This subfunction shall include expenses incurred in creating public preference for the air carrier and its services; stimulating development of the air transport market; and promoting the air carrier or developing air transportation generally.
                b. This subfunction shall not include expenses incurred in direct sales solicitation and selling of aircraft space. Such costs shall be included in subfunction 6500 Reservations and Sales.

              6800 General and Administrative.
              (a) This function shall include expenses of a general corporate nature and expenses incurred in performing activities which contribute to more than a single operating function such as general financial accounting activities, purchasing activities, representation at law, and other general operational administration, which are not directly applicable to a particular function.
              (b) This function shall not include expenses incurred directly in promoting traffic or in promoting relations of the air carrier generally with the public which shall be included in function 6700 Promotion and Sales. Nor shall this function include expenses, regularly applicable in large part to a specific function, which contribute only incidentally, or in small amount, to various other functions. Such expenses when of such size as will not distort the function to which predominantly related, shall be included in the specific function to which regularly related. However, expenses of a general administrative character and of significant amount regularly contributing to operating functions generally shall be included in this function.
              7000 Depreciation and Amortization.
              This function shall include all charges to expense to record losses suffered through current exhaustion of the serviceability of property and equipment due to wear and tear from use and the action of time and the elements, which are not replaced by current repairs, as well as losses in serviceability occasioned by obsolescence, supersession, discoveries, change in popular demand or action by public authority. It shall also include charges for the amortization of capitalized developmental and preoperating costs, leased property under capital leases, and other intangible assets applicable to the performance of air transportation. (See sections 6-1696, 1830 and 1890.)
              [Amdt. 241-58, 54 FR 5595, Feb. 6, 1989]
              7100 Transport-Related Expenses.
              (a) This function shall include all expense items applicable to the generation of transport-related revenues included in section 9, Function 4800.
              (b) Such expense related to services of a magnitude or scope beyond an incidental adjunct to air transportation services shall not be included in this function (see section 1-6(b)). Expenses applicable to the generation of such revenues shall be included in profit and loss classification 8100, Nonoperating Income and Expense-Net, and the accounting modified to conform with that of a nontransport division whether or not the service is organized as a nontransport division.
              (c) This function shall also include expenses representing increases in costs incurred in common with the air transport service, to the extent such increases result from the added transport-related services, as well as a pro rata share of the costs incurred by the air carrier in operating facilities which are used jointly with others. As a general rule, this function shall not include those expenses, other than joint facilities, costs, which would remain as an essential part of the air transport services if the transport-related services were terminated.
              [ER-841, 39 FR 11997, Apr. 2, 1974, as amended by ER-1401, 50 FR 244, Jan. 3, 1985]

              Section 12
              Objective Classification—Operating Revenues and Expenses
              00 General Instructions.

              (a) Basic objective accounts, applicable to all air carrier groups, are established for recording all revenue and expense elements. These basic accounts are in certain areas subdivided to provide greater detail for indicated air carrier groups.
              (b) Each air carrier shall credit the gross revenues accruing from services ordinarily associated with air transportation and transportation-related services to the appropriate account established for each revenue source. Expenses incident to transport and transport-related services shall be charged to the accounts established in this section in accordance with the objectives served by each expenditure. However, direct costs of forwarding traffic as a result of interrupted trips, and refunds of sales, shall be charged to the applicable revenue account.
              (c) To the end that the integrity of the prescribed objective accounts shall not be impaired, each air carrier shall:
              (1) Charge the appropriate account prescribed for each service purchased or expense element incurred expressly for the benefit of the air carrier regardless of whether incurred directly by the air carrier or through an agent or other intermediary, and (2) except as provided in objective account 77, Uncleared Expense Credits, credit or charge, as appropriate, the account prescribed for each expense element which may be involved in distributions of expenses between (i) separate operating entities of the air carrier, (ii) transport-related services and transport services, or transport functions, (iii) balance sheet and profit and loss elements, and (iv) the air carrier and others, when the expenses are incurred initially by or for the benefit of the air carrier. At the option of the air carrier, standard rates applicable to each objective account comprising a particular pool of expenses subject to assignment between two or more activities, may be established for proration purposes, provided the rates established are predicated upon the experience of the air carrier and are reviewed and modified as appropriate at least once each year.
              Transport Revenues
              01 Passenger.
              (a) Record here revenue from the transportation of passengers by air, including infants transported at reduced fares, berth charges, surcharges for premium services and other similar charges. Revenue from airline employees, officers and directors, or other persons, except for ministers of religion, who are traveling under reduced-rate transportation authorized by 49 U.S.C. 41511(a) and 14 CFR part 223, as well as revenue from travel agents, cargo agents and tour conductors traveling at reduced fares, and revenues from service charges for passengers traveling on a nonrevenue basis shall be recorded in objective account 19 Air Transport—Other.
              (b) This account shall be subdivided as follows by all air carrier groups:

                01.1 Passenger—First Class.

                Record here revenue from the air transportation of passengers moving at either standard fares or premium fares, or at reduced fares not predicated upon the use of aircraft space specifically separated from first class, and for whom standard or premium quality services are provided.
                01.2 Passenger—Coach.

                Record here revenue from the air transportation of passengers moving at special fares reduced from the first class or premium fares which are predicated upon both the operation of specifically designated aircraft space and a reduction in the quality of service regularly and ordinarily provided.

              [ER-755, 37 FR 19726, Sept. 21, 1972, as amended by ER-980, 42 FR 36, Jan. 3, 1977; 60 FR 66723, Dec. 26, 1995]
              05 Mail.
              (a) Record here revenue from the transportation by air of both United States and foreign mail.
              (b) Fines and penalties imposed by the United States Government and foreign governments in connection with the carriage of mail shall not be charged to this account but to profit and loss account 89.9 Other Miscellaneous Nonoperating Debits.
              (c) This account shall be subdivided as follows by all air carrier groups:

                05.1 Priority.

                Record here revenue from United States mail for which transportation by air is provided on a priority basis.
                05.2 Nonpriority.

                Record here revenue from United States mail for which transportation by air is provided on a space available basis.

                05.3 Foreign.

                Record here revenue from the transportation by air of mail other than United States mail.

              [ER-980, 42 FR 36, Jan. 3, 1977, as amended by Amdt. 241-58, 54 FR 5595, Feb. 6, 1989]
              06 Property.
              (a) Record here revenue from the transportation by air of property including excess passenger baggage.
              (b) Revenues resulting from services incidental to the transportation services such as collection of shipper's interest insurance premiums and charges and fees for service such as pick-up and delivery, assembly and distribution, storage and handling, and C.O.D. collection shall not be credited to this account but to profit and loss account 17 Air Cargo Services.
              (c) This account shall be subdivided as follows by all air carrier groups:

                06.1 Freight.

                Record here revenue from the transportation by air of property other than passenger baggage.
                06.2 Excess Passenger Baggage.

                Record here revenue from the transportation by air of passener baggage in excess of fixed free allowance.

              [ER-755, 37 FR 19726, Sept. 21, 1972, as amended by ER-1401, 50 FR 244, Jan. 3, 1985]
              07 Charter.
              (a) Record here the revenue from nonscheduled air transport services (except as otherwise required by profit and loss Account 86 Income from Nontransport Ventures) where the party receiving the transportation obtains exclusive use of an aircraft at either published tariff or other contractual rates and the remuneration paid by the party receiving transportation accrues directly to, and the responsibility for providing transportation is that of, the accounting air carrier. This account shall also include revenues from air transport services other than inter-airport services, whether scheduled or nonscheduled, where each passenger or shipment receiving transportation is individually documented and does not obtain exclusive use of an aircraft.
              (b) This account shall not include revenues or fees received from other air carriers for flight facilities furnished or operated by the accounting air carrier where the remuneration paid by the party receiving transportation accrues directly to, and the responsibility for providing transportation is that of other air carriers. Such revenues and related expenses shall be included in profit and loss accounts 11, Rents; 13, Interchange Sales; or 18, Other Transport-Related Revenues and Expenses.
              (c) This account shall be subdivided as follows by all air carrier groups:

                07.1 Passenger.

                Record here revenue from the transportation of passengers and their personal baggage.
                07.2 Property.

                Record here revenue from the transportation of property.

              [ER-755, 37 FR 19726, Sept. 21, 1972, as amended by ER-980, 42 FR 37, Jan. 3, 1977; ER-1401, 50 FR 244, Jan. 3, 1985]
              Transport Related Revenues and Expenses
              08 Public Service Revenues (Subsidy).
              Record here amounts of compensation received pursuant to the provisions of 49 U.S.C. 41733 under rates established by the Department of Transportation for the provision of essential air service to small communities.
              [Amdt. 241-58, 54 FR 5595, Feb. 6, 1989, as amended at 60 FR 66723, Dec. 26, 1995]
              09 In-Flight Sales.
              (a) Record here revenues from and expenses related to transport-related services performed while in flight.
              (b) This account shall be subdivided as follows by all air carrier groups:

                09.1 Liquor and food—gross revenues.

                09.2 Movies and stereo—gross revenues.

                09.3 Other—gross revenues.

                09.4 Liquor and food—depreciation expense.

                09.5 Liquor and food—other expense.

                09.6 Movies and stereo—depreciation expense.

                09.7 Movies and stereo—other expense.

                09.8 Other—depreciation expense.

                09.9 Other—expense.

              10 Restaurant and Food Service (Ground).
              (a) Record here revenues from and expenses related to the operation of restaurants and similar facilities, and from sales of food. (See section 12-51.)
              (b) This account shall be subdivided as follows by all air carrier groups.

                10.1 Gross revenues.

                10.2 Depreciation expense.

                10.3 Other expense.

              11 Rents.
              (a) Record here revenues from and expenses related to property and equipment owned or leased which has been rented or subleased to others exclusive of associated companies. This account shall not include fees from the use by others of air carrier aircraft under aircraft interchange agreements.
              (b) This account shall be subdivided as follows by all air carrier groups:

                11.1 Gross Revenues.

                11.2 Depreciation Expense.

                11.3 Other Expenses.

              12 Limousine Service.
              (a) Record here revenues from and expenses related to the operation of passenger limousine surface transportation services.
              (b) This account shall be subdivided as follows by all air carrier groups:

                12.1 Gross Revenues.

                12.2 Depreciation Expense.

                12.3 Other Expenses.

              13 Interchange Sales.
              (a) Record here the revenues or fees from and the expenses related to services provided associated companies and other than associated companies by the air carrier under aircraft interchange agreements. This account shall be charged and the applicable operating expense objective accounts shall be credited, except as provided in operating expense objective account 77, Uncleared Expense Credits, with the expenses attaching to services provided all companies under aircraft interchange agreements.
              (b) This account shall not include revenues or expenses related to air transportation services performed in the name of and for the account of the accounting air carrier. Such revenues shall be included in applicable transport revenue and operating expense objective accounts.
              (c) This account shall be subdivided as follows by all air carrier groups:

                13.1 Associated companies—gross revenues.

                13.2 Outside—gross revenues.

                13.3 Associated companies—depreciation expense.

                13.4 Associated companies—other expense.

                13.5 Outside—depreciation expense.

                13.6 Outside—other expense.

              14 General Service Sales.

              (a) Record here the revenues, commissions or fees from and expenses related to other than air transportation and aircraft interchange services provided to associated and outside companies by the air carrier. This account shall include the contractual fees or other revenues from and expenses related to services provided to associated and other companies in the operation of facilities which are used jointly with associated and other companies as well as revenues from and the costs related to the sale of supplies, parts and repairs sold directly or furnished as a part of services to associated and other companies.

              (b) This account shall not include consideration received from sales of property, equipment, materials or supplies when disposed of as a part of a program involving retirement of property and equipment as opposed to routine sales and services to associated and other companies unless such disposition is conducted as a normal part of the incidental sales activity. Such retirement gain or loss shall be included in capital gains and losses accounts. Maintenance parts, materials or supplies sold as a service to others shall be charged to this account at cost without adjustment of related obsolescence or depreciation allowances.
              (c) This account shall be subdivided as follows by all air carrier groups:

                14.1 Associated companies—gross revenues.

                14.2 Outside—gross revenues.

                14.3 Associated companies—depreciation expense.

                14.4 Associated companies—other expense.

                14.5 Outside—depreciation expense.

                14.6 Outside—other expense.

              [ER-755, 37 FR 19726, Sept. 21, 1972, as amended by ER-980, 42 FR 37, Jan. 3, 1977]
              16 Substitute (replacement) Service.
              (a) Record here revenues from and expenses related to substitute service. This account shall include as revenues all monies received from substitute carriers and as expense all monies paid to substitute carriers.
              (b) This account shall be subdivided as follows by all air carrier groups:

                16.1 Gross revenue.

                16.2 Expense.

              17 Air Cargo Services.
              (a) Record here fees and other revenues from and expenses related to incidental services performed in connection with cargo shipments such as pickup and delivery fees, shipper's interest insurance charges, storage and handling fees, etc.
              (b) This account shall be subdivided as follows by all air carrier groups:

                17.1 Gross Revenues.

                17.2 Depreciation Expense.

                17.3 Other Expenses.

              18 Other Transport-Related Revenues and Expenses.
              (a) Record here revenues from and expenses related to transport-related services not provided for in profit and loss accounts 10 through 17, inclusive, such as revenues and expenses incident to the operation of flight facilities by the accounting air carrier, except those operated under aircraft interchange agreements, where the remuneration paid by the party receiving transportation accrues directly to, and the responsibility for providing transportation is that of, other air carriers; and the revenues and expenses incident to vending machines, parcel rooms, storage facilities, etc.
              (b) [Reserved]
              (c) Revenues from the renting or leasing of property and equipment to others shall not be included in this account but in profit and loss account 11 Rents.
              (d) This account shall be subdivided as follows by all air carrier groups:

                18.1 Gross Revenues.

                18.2 Depreciation Expense.

                18.3 Other Expenses.

              19 Air Transport—Other.
              (a) Record here revenues associated with air transportation conducted by the air carrier, not provided for in profit and loss accounts 01 through 09, inclusive, such as revenue from (1) airline employees, officers and directors, or other persons, except for ministers of religion, who are traveling under reduced-rate transportation authorized by 49 U.S.C. 41511(a) and 14 CFR part 223, as well as travel agents, cargo agents and tour conductors traveling at reduced fares, (2) service charges for failure to cancel or for late cancellation of air transportation reservations, and (3) nontransportation service charges collected on both revenue and nonrevenue flights.

              (b) Revenues derived from sightseeing, aerial photography, advertising, or other special flights shall not be included in this account but in account 07 Charter.
              (c) This account shall be subdivided as follows by all air carrier groups:

                19.1 Reservations Cancellation Fees.

                19.9 Miscellaneous Operating Revenue.

              [ER-755, 37 FR 19726, Sept. 21, 1972, as amended by ER-820, 38 FR 24352, Sept. 7, 1973; ER-841, 39 FR 11997, Apr. 2, 1974; ER-980, 42 FR 37, Jan. 3, 1977; 60 FR 66723, Dec. 26, 1995]
              Transport Expenses
              20 General Instructions.
              (a) Each element of expense ordinarily associated with air transportation services shall be charged to the accounts established in this section in accordance with the objectives served by each expenditure. Basic objective accounts, applicable to all air carrier groups, are established for recording all expense elements. These basic accounts are in certain areas subdivided to provide greater detail for indicated air carrier groups.
              (b) To the end that the integrity of the prescribed objective accounts shall not be impaired, each air carrier shall:
              (1) Charge the appropriate account prescribed for each service purchased or expense element incurred expressly for the benefit of the air carrier regardless of whether incurred directly by the air carrier or through an agent or other intermediary, and (2) except as provided in objective account 77 Uncleared Expense Credits, credit or charge, as appropriate, the account prescribed for each expense element which may be involved in distributions of expenses between (i) separate operating entities of the air carrier, (ii) incidental and transport services or transport functions, (iii) balance sheet and profit and loss elements and (iv) the air carrier and others, when the expenses are incurred initially by or for the benefit of the air carrier. At the option of the air carrier, standard rates applicable to each objective account comprising a particular pool of expenses subject to assignment between two or more activities, may be established for proration purposes, provided the rates established are predicated upon the experience of the air carrier and are reviewed and modified as appropriate at least once each year.
              21 General Management Personnel.
              Record here the compensation, including vacation and sick leave pay, of general officers and supervisors, and immediate assistants regardless of locality at which based, responsible for an activity not provided for in profit and loss accounts 25 through 35, inclusive, or an activity involving two or more such accounts.
              23 Pilots and Copilots.
              Record here the compensation, including vacation and sick leave pay, of pilots and copilots assigned or held inactive awaiting assignment to flight duty.
              24 Other Flight Personnel.
              Record here the compensation, including vacation and sick leave pay, of other flight personnel assigned or held inactive awaiting assignment to flight status, not responsible for the in-flight management of aircraft, such as engineers, navigation officers and cabin attendants.
              25 Maintenance Labor.
              (a) Record here the compensation for time of personnel spent directly on specific property and equipment maintenance projects. (See sections 10 and 11-5200.) Vacation and sick leave pay shall be charged to profit and loss account 28 Trainees, Instructors and Unallocated Shop Labor.
              (b) This account shall be subdivided as follows:

                Group II and Group III Air Carriers
                25.1 Labor—Airframes and Other Flight Equipment.

                Record here the direct labor expended upon airframes, spare parts related to airframes, and other flight equipment (Other than aircraft engines and spare parts related to aircraft engines). Other flight equipment shall include instruments, which encompass all gauges, meters, measuring devices, and indicators, together with appurtenances thereto for installation in aircraft and aircraft engines which are maintaned separately from airframes and aircraft engines.

                25.2 Labor—Aircraft Engines.

                Record here the direct labor expended upon aircraft engines and spare parts related to aircraft engines.
                Group I Air Carriers
                25.6 Labor—Flight Equipment.

                Record here the direct labor expended upon flight equipment of all types and classes.
                All Air Carrier Groups
                25.9 Labor—Ground Property and Equipment.

                Record here the direct labor expended upon ground property and equipment of all types and classes. Direct labor expended upon general ground properties shall be charged to subfunction 5200 Direct Maintenance; and direct labor expended upon maintenance buildings and equipment shall be charged to subfunction 5300 Maintenance Burden.

              [ER-755, 37 FR 19726, Sept. 21, 1972, as amended by ER-1401, 50 FR 244, Jan. 3, 1985]
              26 Aircraft and Traffic Handling Personnel.
              (a) Record here the compensation, including vacation and sick leave pay, of personnel of all types and classes, including direct supervisory personnel, assigned to ground activities, engaged directly in protecting and controlling aircraft in flight, scheduling and preparing flight crews for flight assignment, parking and servicing aircraft incidental to line operations, and of personnel of all types and classes engaged in servicing and handling traffic of all types and classes on the ground.
              (b) This account shall be subdivided as follows by Group II and Group III air carriers:

                26.1 General Aircraft and Traffic Handling Personnel.

                Record here compensation of personnel handling or controlling aircraft and generally servicing or handling traffic of all types and classes whose activities are not identifiable with the particular activities provided for in subaccounts 26.2, 26.3, or 26.4, inclusive.
                26.2 Aircraft Control Personnel.

                Record here compensation of personnel whose activities are identifiable with the protection and control of aircraft in flight and in scheduling or preparing flight crews for flight assignment.
                26.3 Passenger Handling Personnel.

                Record here compensation of personnel whose activities are identifiable with the handling of passengers.
                26.4 Cargo Handling Personnel.

                Record here compensation of personnel whose activities are identifiable with the handling of passenger baggage, mail, express, or freight.

              28 Trainees, Instructors, and Unallocated Shop Labor.
              (a) Record here the compensation, including vacation and sick leave pay, of instructors and personnel in an off-the-job training status; direct maintenance personnel compensation not assigned to specific projects; and vacation or sick leave pay of direct maintenance personnel.
              (b) This account shall be subdivided as follows by all air carrier groups:

                28.1 Trainees and Instructors.

                Record here the compensation of instructors and personnel in a training status.
                28.2 Unallocated Shop Labor.

                Record here the pay of direct maintenance personnel which has not been assigned to profit and loss account 25 Maintenance Labor for time spent on specific maintenance projects, and vacation or sick leave pay of direct maintenance personnel.

              30 Communications Personnel.
              Record here the compensation, including vacation and sick leave pay, of personnel of all types and classes, including direct supervisory personnel, engaged in local, interstation, or groundair communication activities. This account shall include compensation of personnel such as radio operators, telephone operators, switchboard operators, teletype operators, messengers, etc.
              31 Recordkeeping and Statistical Personnel.

              Record here the compensation, including vacation and sick leave pay, of personnel including supervisory personnel, whose primary duties relate to maintaining records or conducting economic or other analyses required for general management controls, such as accountants, economists, statisticians, maintenance record clerks, stores record clerks, stores receiving and issuing clerks and file clerks. The account shall not include personnel engaged in documentation or other activities constituting an integral part of activities encompassed by other objective accounts.
              32 Lawyers and Law Clerks.
              Record here the compensation, including vacation and sick leave pay, of air carrier personnel engaged in law research or representing the air carrier in matters of law.
              33 Traffic Solicitors.
              Record here the compensation, including vacation and sick leave pay, of personnel engaged directly in solicitation of traffic of all types and classes. This account shall not include compensation of traffic office personnel engaged in soliciting activities incidental to the documenting of sales and assigning aircraft space which shall be included in profit and loss account 26 Aircraft and Traffic Handling Personnel.
              34 Purchasing Personnel.
              (a) Record here the compensation, including vacation and sick leave pay, of personnel, including direct supervisory personnel, engaged in purchasing activities.
              (b) This account shall include compensation of personnel engaged in maintaining purchasing records but shall not include compensation of personnel responsible for the control of inventories or stores which shall be included in objective account 31 Record Keeping and Statistical Personnel. In cases where the responsibility for maintaining purchasing and stores records are inseparable, the related compensation may be accounted for in accordance with dominant responsibilities.
              35 Other Personnel.
              Record here the compensation, including vacation and sick leave pay, of personnel whose activities are not identifiable with activities provided for in profit and loss accounts 21 through 34, inclusive.
              36 Personnel Expenses.
              (a) Record here expenses incurred by officers, executives, directors and other personnel, whether for the benefit of the air carrier or for the private benefit of such persons, which are directly or indirectly borne by the air carrier.
              (b) This account shall include allowances in lieu of expenses as well as expenses incurred for travel, lodgings, meals, entertainment of individuals or groups of individuals, and membership fees and dues in professional or social clubs and associations.
              (c) Records shall be maintained in a conveniently accessible form which will separately and clearly document each charge to this account in terms of its natural characteristics and contribution to the performance of the air carrier's transport operations. The records shall be maintained in such manner as will identify specifically the persons incurring the cost. Costs for standby hotel or other facilities maintained for the air carrier's personnel generally need not be allocated among the individuals using such facilities; however, sufficiently detailed records are required to identify the use made of such facilities by each individual.
              [ER-755, 37 FR 19726, Sept. 21, 1972, as amended by ER-948, 41 FR 12295, Mar. 25, 1976]
              37 Communications Purchased.
              Record here expenses, including related taxes, incurred for rental of communication services and for communication services of all types and classes not provided by personnel of the air carrier, such as telegraph, telephone, teletype, private line services, and charges for communication services from organizations operated jointly with associated companies or others.
              38 Light, Heat, Power and Water.
              Record here charges related to the provision of light, heat, power and water including related taxes.
              39 Traffic Commissions.

              (a) Record here charges by others, including associated companies, for commissions arising from sales of transportation. Commissions, fees or other charges incurred for general agency services, as opposed to commissions arising from sales of transportation, shall not be included in this account but in profit and loss account 43 General Services Purchased.
              (b) This account shall be subdivided as follows by Group II and Group III air carriers.

                39.1 Commissions—Passenger.

                Record here charges for commissions arising from sales of passenger transportation.
                39.2 Commissions—Property.

                Record here charges for commissions arising from sales of nonpassenger transportation.

              40 Legal Fees and Expenses.
              Record here expenditures incurred for legal services by counsel retained on a fee basis and related expenses reimbursed or borne directly by the air carrier and other expenses incurred directly by the air carrier for legal supplies not obtainable from the air carrier's general stationery stock. This account shall not be charged with legal fees or expenses incurred in connection with claims occasioned by accidents or other casualties. Such charges shall be accumulated in balance sheet account 1890 Other Assets and cleared to profit and loss account 58 Injuries, Loss and Damage upon settlement of insurance claims. Nor should this account include fees or expenses related to developmental projects. Such expenses shall be included, as appropriate, in profit and loss account 89.9 Other Miscellaneous Nonoperating Debits or balance sheet account 1830 Unamortized Developmental and Preoperating Costs.
              [ER-980, 42 FR 37, Jan. 3, 1977]
              41 Professional and Technical Fees and Expenses.
              Record here fees and expenses, other than legal fees and expenses, incurred for outside professional and technical services which are reimbursed or borne directly by the air carrier. This account shall not include fees or expenses related to developmental projects. Such expenses shall be included, as appropriate, in profit and loss account 89.9 Other Miscellaneous Nonoperating Debits or balance sheet account 1830 Unamortized Developmental and Preoperating Costs.
              [ER-980, 42 FR 37, Jan. 3, 1977]
              43 General Services Purchased.
              (a) Record here charges for services performed for the air carrier by outside and associated companies which are not identifiable with services provided for in profit and loss accounts 37 through 41, inclusive, or which are not expressly identified with other objective expense accounts.
              (b) Charges from outside and associated companies for services provided the air carrier under aircraft interchange agreements or other agreements embracing a complete activity or service, such as the operating of jointly used ground facilities, shall be included in this account for each operating function to which the services contribute. Charges for providing aircraft capacity, including charges for depreciation and interest on the capital related to the flight equipment provided, shall be included in function 5100 Flying Operations.
              (c) This account shall be subdivided by each air carrier group, as follows:

                Group II and Group III Air Carriers
                43.1 Airframe and Other Flight Equipment Repairs.

                Record here charges for maintenance or repair of airframes and spare parts related to airframes owned or leased by the air carrier. Charges for maintenance or repair of other flight equipment (including instruments) owned or leased by the air carrier, excluding aircraft engines and spare parts related to aircraft engines, shall also be recorded here. Instruments shall include all gauges, meters, measuring devices, and indicators, together with appurtenances thereto for installation in aircraft and aircraft engines, which are maintained separately from airframes and aircraft engines. Charges by outside and associated companies for maintenance of flight equipment provided under aircraft interchange agreements shall not be included in this subaccount but in subaccount 43.7 Aircraft Interchange Charges.
                43.2 Aircraft Engine Repairs.

                Record here charges for maintenance of repair or aircraft engines, including spare parts related to aircraft engines owned or leased by the air carrier. Charges by outside and associated companies for maintenance of aircraft engines provided under aircraft interchange agreements shall not be included in this subaccount but in subaccount 43.7 Aircraft Interchange Charges.
                Group I Air Carriers
                43.6 Flight Equipment Repairs.

                Record here charges for maintenance or repair of flight equipment of all types and classes owned or leased by the air carrier. Charges by outside and associated companies for maintenance of flight equipment provided under aircraft interchange agreements shall not be included in this subaccount but in subaccount 43.7 Aircraft Interchange Charges.
                All Air Carrier Groups
                43.7 Aircraft Interchange Charges.

                Record here charges by outside and associated companies for providing aircraft capacity or services related to the direct operation or maintenance of flight equipment under aircraft interchange agreements.
                43.8 General Interchange Service Charges.

                Record here charges by outside and associated companies for services provided the air carrier under aircraft interchange agreements, other than charges related to the direct operation or maintenance of flight equipment, including all charges for maintenance and repair of group properties, as well as fees or charges for traffic solicitation and sales, or supervision and administration covered by the aircraft interchange agreements. Charges for depreciation or interest on capital related to flight equipment provided under interchange agreements shall not be included in this subaccount but in subaccount 43.7 Aircraft Interchange Charges.
                43.9 Other Services.

                Record here charges for maintenance and repair of ground property and equipment of all types and classes and other charges for services performed by outside and associated companies not provided for elsewhere. This subaccount shall include only those charges for services not provided for elsewhere in profit and loss accounts 37 to 41, inclusive, and subaccounts 43.1 to 43.8, inclusive, embracing a complete activity or service provided by outside and associated companies such as the operation of traffic offices or other facilities used jointly with the air carrier which do not represent reimbursement of specific expense elements incurred expressly for the benefit of the air carrier. Reimbursement of expenses incurred expressly for the benefit of the air carrier shall be entered in appropriate personnel compensation or other objective expense accounts. The cost of services received in the repair of general ground properties shall be charged to subfunction 5200 Direct Maintenance; and services received in the repair of maintenance buildings and equipment shall be charged to subfunction 5300 Maintenance Burden.

              [Amdt. 241-56, 52 FR 9129, Mar. 23, 1987]
              44 Landing Fees.
              Record here the charges and fees incurred for landing of aircraft while in line operation.
              45 Aircraft Fuels and Oils.
              (a) Record here the cost of fuels and oils issued from stocks of the air carrier, or delivery directly by others, to aircraft for use in flight operations. Adjustments of inventories of aircraft fuel and oil shall also be entered in this account. The cost of fuels and oils used in repairs and maintenance services and nonrefundable fuel and oil taxes shall not be included in this account but in profit and loss accounts 49 Shop and Servicing Supplies and 69 Taxes—Other than Payroll, respectively.
              (b) This account shall be subdivided as follows by Group II and Group III air carriers:

                45.1 Aircraft Fuels.

                Record here the cost of fuels used in flight operations.
                45.2 Aircraft Oils.

                Record here the cost of oils used in flight operations.

              46 Maintenance Materials.
              (a) Record here the cost of materials and supplies consumed directly in specific property and equipment maintenance projects.
              (b) This account shall be subdivided as follows:

                Group II and Group III Air Carriers
                46.1 Materials—Airframes and Other Flight Equipment.

                Record here the cost of materials and supplies consumed directly in maintenance of airframes and spare parts related to airframes. Other flight equipment (including instruments), excluding aircraft engines and spare parts related to aircraft engines, shall also be recorded here. Instruments shall include all gauges, meters, measuring devices, and indicators, together with appurtenances thereto for installation in aircraft and aircraft engines, which are maintained separately from airframes and aircraft engines.

                46.2 Materials—Aircraft Engines.

                Record here the cost of materials and supplies consumed directly in maintenance of aircraft engines and spare parts related to aircraft engines.
                Group I Air Carriers
                46.6 Materials—Flight Equipment.

                Record here the cost of materials and supplies consumed directly in the maintenance of flight equipment of all types and classes.
                All Air Carrier Groups
                46.9 Materials—Ground Property and Equipment.

                Record here the cost of materials and supplies consumed directly in the maintenance of ground property and equipment of all types and classes. The cost of materials and supplies consumed in the repair of general ground properties shall be charged to subfunction 5200 Direct Maintenance and materials and supplies consumed in the repair of maintenance buildings and equipment shall be charged to subfunction 5300 Maintenance Burden.

              [ER-755, 37 FR 19726, Sept. 21, 1972, as amended by ER-1401, 50 FR 245, Jan. 3, 1985]
              47 Rentals.
              Record here rentals, fee, or charges incurred in the use of property and equipment provided by others. When a lease arrangement provides that the amounts paid include charges for maintenance, insurance, or taxes, the amounts related thereto shall not be recorded in this account but in the appropriate expense account to which related.
              49 Shop and Servicing Supplies.
              Record here the cost of supplies and expendable small tools and equipment used in maintaining, servicing and cleaning property or equipment the cost of which cannot be directly assigned to a specific job or type of work.
              50 Stationery, Printing and Office Supplies.
              Record here the cost of stationery and forms used by the air carrier including the cost of engineering and shipping supplies.
              51 Passenger Food Expense.
              (a) Record here the cost of food and refreshments served passengers except food costs arising from interrupted trips.
              (b) If the air carrier prepares its own food, the initial cost and expenses incurred in the preparation thereof shall be accumulated in a clearly identified clearing account through which the cost of food shall be cleared to this account, to profit and loss account 36 Personnel Expenses, and to profit and loss account 10 Hotel, Restaurant and Food Service on bases which appropriately allocate the cost of food served passengers, the cost of food provided employees without charge and the cost of food sold.
              53 Other Supplies.
              Record here the cost of supplies consumed and not provided for otherwise.
              54 Inventory Adjustments.
              Record here adjustments for overage, shortage or shrinkage of inventories carried in balance sheet account 1300 Spare Parts and Supplies. Adjustment of aircraft fuel and oil inventories due to retroactive price increases and decreases shall not be included in this account but in profit and loss account 45 Aircraft Fuels and Oils. Gains or losses from retirements of materials and supplies shall not be recorded in this account but in profit and loss account 88.5 Capital Gains and Losses—Operating Property.
              [ER-980, 42 FR 37, Jan. 3, 1977]
              55 Insurance—General.
              Record here the cost of public liability and property damage insurance and all other general insurance except insurance covering liability for injuries, loss, and damage to passengers and cargo, and insurance carried for the protection or welfare of employees.
              [ER-948, 41 FR 12295, Mar. 25, 1976]
              56 Insurance—Traffic Liability.
              Record here the cost of purchased insurance covering liability for injuries, loss and damage to passengers and cargo.
              [ER-980, 42 FR 37, Jan. 3, 1977]

              57 Employee Benefits and Pensions.
              (a) Record here all costs for the benefit or protection of employees including all pension expenses whether for payments to or on behalf of retired employees or for accruals or annuity payments to provide for pensions; and all expenses for accident, sickness, hospital, and death benefits to employees or the cost of insurance to provide these benefits. Include, also, expenses incurred in medical, educational, or recreational activities for the benefit of employees. Do not include vacation and sick leave pay, or salaries of doctors, nurses, trainees, or instructors, which shall be recorded in the regular salary accounts.
              (b) [Reserved]
              [ER-755, 37 FR 19726, Sept. 21, 1972, as amended by ER-980, 42 FR 37, Jan. 3, 1977; ER-1188, 45 FR 48871, July 22, 1980]
              58 Injuries, Loss and Damage.
              Record here the remainder of gains, losses or costs resulting from accidents, casualties or mishandlings, after offsetting insurance recoveries, as accumulated until finally determined in balance sheet account 1890 Other Assets and Deferred Charges. This account shall not include gains or losses from retirement of property and equipment resulting from casualties. Such gains or losses shall be recorded in appropriate capital gains or losses accounts.
              [Amdt. 241-58, 54 FR 5596, Feb. 6, 1989]
              59 Schedules and Timetables.
              Record here the production and distribution cost, excluding compensation of air carrier personnel, of all operating schedules, timetables, circulars and related quick reference charts.
              [ER-1401, 50 FR 245, Jan. 3, 1985]
              60 Advertising.
              Record here the cost, excluding compensation of air carrier personnel, of all space, direct mail, spot and other advertising for the purpose of increasing air travel, disseminating air travel information and publicizing services offered by the air carrier.
              61 Foreign Exchange Gains and Losses.
              Record here gains or losses from transactions involving currency translations resulting from normal, routine, current fluctuations in rates of foreign exchange. Gains or losses of a nonroutine abnormal character and gains or losses which arise from long-term debt principal and interest transactions shall not be entered in this account but in profit and loss account 85, Foreign Exchange Gains and Losses.
              [Amdt. 241-58, 54 FR 5596, Feb. 6, 1989]
              62 Other Promotional and Publicity Expenses.
              Record here the costs, excluding compensation of air carrier personnel, of producing and distributing publicity releases and other expenses, not chargeable to profit and loss accounts 59 and 60, incurred for the purpose of publicizing or improving the public relations of the air carrier generally.
              63 Interrupted Trips Expense.
              Record here expenses allowed or paid for the care and serving of passengers because of unscheduled interruptions in passenger journeys. Transportation refunds and the cost of forwarding traffic by surface common carrier or otherwise as a result of such interruptions shall not be charged to this account but to the appropriate operating revenue account.
              64 Memberships.
              Record here the cost of membership dues in trade associations, chambers of commerce, or other business associations and organizations together with special assessments related thereto.
              65 Corporate and Fiscal Expenses.
              Record here corporate and fiscal fees and expenses of the air carrier and all expenses in connection with exchange and transfer of capital stock excluding expenses in connection with original issuance of capital stock.
              66 Uncollectible Accounts.

              Record here losses from uncollectible accounts and allowance provisions and adjustments thereto, for such losses. When allowances for uncollectible accounts are established, losses as realized shall be charged against such allowances and shall not be charged to this account.
              [ER-980, 42 FR 37, Jan. 3, 1977]
              67 Clearance, Customs and Duties.
              Record here clearance, customs, duties and brokerage fees and charges applicable to clearing aircraft and traffic.
              68 Taxes—Payroll.
              Record here all taxes levied against the air carrier based upon or directly relating to compensation of personnel.
              69 Taxes—Other Than Payroll.
              (a) Record here all taxes levied against the air carrier not otherwise provided for including nonrefundable aircraft fuel and oil taxes. Interest and penalties on delinquent taxes shall not be charged to this account but to profit and loss accounts 82 Other Interest and 89.9 Other Miscellaneous Nonoperating Debits, respectively.
              (b) Entries to this account shall clearly reveal each kind of tax and the governmental agency to which paid or payable.
              [ER-755, 37 FR 19726, Sept. 21, 1972, as amended by ER-980, 42 FR 37, Jan. 3, 1977]
              71 Other Expenses.
              Record here all expenses ordinarily associated with air transportation and its incidental services not provided for otherwise.
              72 Aircraft Overhauls.
              (a) Record here airframe and aircraft engine overhauls of the current period which are transferred to balance sheet subaccounts 1601.2 Unamortized Airframe Overhauls or 1602.2 Unamortized Aircraft Engine Overhauls. This account shall also include the amount of deferred overhauls costs being amortized for the current period. For carriers which elect to continue accruing for aircraft overhauls for aircraft types acquired before January 1, 1976, as well as for other aircraft of the same type acquired after January 1, 1976, the related provisions and charges shall be recorded in the appropriate subaccounts of this account.
              (b) This account shall be subdivided as follows by all carrier groups:

                72.1 Airworthiness Allowance Provisions—Airframes.

                Record here current provisions for effecting an equitable distribution of airframe overhaul costs between different accounting periods. Record here also credits for airframe overhaul costs incurred in the current period which have been charged against related airworthiness allowances.
                72.3 Airframe Overhauls Deferred.

                Record here airframe overhauls of the current period transferred to subaccount 1601.2, Unamortized Airframe Overhauls, and the amount of deferred airframe overhaul costs amortized for the current period.
                72.6 Airworthiness Allowance Provisions—Aircraft Engines.

                Record here current provisions for effecting an equitable distribution of aircraft engine overhauls costs between different accounting periods. Record here also credits for aircraft engine overhaul costs incurred in the current period which have been charged against related airworthiness allowances.
                72.8 Aircraft Engine Overhauls Deferred.

                Record here airframe overhauls of the current period transferred to subaccount 1602.2, Unamortized Aircraft Engine Overhauls, and the amount of deferred aircraft engine overhaul costs amortized for the current period.

              [ER-948, 41 FR 12295, Mar. 25, 1976, as amended by ER-1401, 50 FR 245, Jan. 3, 1985]
              73 Provisions for Obsolescence and Deterioration—Expendable Parts.
              (a) Where allowances for loss in value of flight equipment expendable parts are established, provisions for accruals to such allowances shall be charged to this account and credited to balance sheet account 1311 Allowance for Obsolescence in accordance with the provisions of that account.
              (b) This account shall be subdivided as follows by all air carrier groups:

                73.1 Current provisions.

                Record here provisions during the current period for losses in value of expendable parts.
                73.2 Inventory decline credits.

                Record here credits applicable to the current period for any adjustments for excess inventory allowance levels determined pursuant to section 6-1311.

              [ER-980, 42 FR 37, Jan. 3, 1977]

              74 Amortization.
              (a) Record here amortization of deferred changes attaching to the air transportation services conducted by the air carrier which are not prepayments of recurrent expenses ordinarily requiring expenditures of working capital within one year.
              (b) This account shall be subdivided as follows by all air carrier groups:

                74.1 Developmental and Preoperating Expenses

                Record here amortization of the cost of projects carried in balance sheet account 1830 Unamortized Developmental and Preoperating Costs.
                74.2 Other Intangibles.

                Record here mortization of the cost of intangibles not provided for otherwise.

              [ER-755, 37 FR 19726, Sept. 21, 1972, as amended by ER-980, 42 FR 38, Jan. 3, 1977; Amdt. 241-58, 54 FR 5596, Feb. 6, 1989]
              75 Depreciation.
              (a) Record here provisions for depreciation of property and equipment carried in balance sheet accounts 1601 through 1640, inclusive.
              (b) This account shall be subdivided as follows:

                All Air Carrier Groups
                75.1 Depreciation—Airframes.

                Record here provisions for depreciation of property and equipment carried in balance subaccount 1601.1 Airframes.
                75.2 Depreciation—Aircraft Engines.

                Record here provisions for depreciation of property and equipment carried in balance sheet subaccount 1602.1 Aircraft Engines.
                Group II and Group III Air Carriers
                75.3 Depreciation—Airframe Parts.

                Record here provisions for depreciation of spare airframe instruments and parts carried in balance sheet subaccount 1608.1 Airframe Parts and Assemblies.
                75.4 Depreciation—Aircraft Engine Parts.

                Record here provisions for depreciation of spare aircraft engine instruments and parts carried in balance sheet subaccount 1608.5 Aircraft Engine Parts and Assemblies.
                All Air Carrier Groups
                75.5 Depreciation—Other Flight Equipment.

                Record here provisions for depreciation of property and equipment carried in balance sheet account 1607 Improvements to Leased Flight Equipment (exclusive of capitalized overhauls accounted for on a deferral and amortization basis) and balance sheet subaccount 1608.9 Other Parts and Assemblies. Group I air carriers shall also include in this subaccount provisions for depreciation of property carried in balance sheet account 1608 Flight Equipment Rotable Parts and Assemblies.
                75.6 Depreciation—Flight Equipment.

                This classification is established only for purposes of control by the BTS and shall include all charges to operating expenses for depreciation of flight equipment of all types and classes.
                75.8 Depreciation—Maintenance Equipment and Hangars.

                Record here provisions for depreciation of maintenance property and equipment included in balance sheet accounts 1630 Equipment, 1639 Improvements to Leased Buildings and Equipment, and 1640.1 Maintenance Buildings and Improvements.
                75.9 Depreciation—General Ground Property.

                Record here provisions for depreciation of property and equipment included in balance of property and equipment included in balance sheet accounts 1630 through 1640, exclusive of provision for depreciation of maintenance property and equipment included in account 75.8.

              [ER-755, 37 FR 19726, Sept. 21, 1972, as amended by ER-948, 41 FR 12296, Mar. 25, 1976; ER-980, 42 FR 38, Jan. 3, 1977; 60 FR 66723, Dec. 26, 1995]
              76 Amortization Expense—Capital Leases.
              (a) Record here amortization charges applicable to assets recorded under capital leases in Account 1695—Leased Property under Capital Leases.
              (b) This account shall be subdivided as follows by all air carrier groups:

                76.1 Amortization—Capitalized Flight Equipment.

                Record here amortization charges applicable to flight equipment acquired under capital leases.
                76.2 Amortization—Capitalized Other Property and Equipment.

                Record here the amortization charges applicable to property and equipment, other than flight equipment, acquired under capital leases.

              [ER-1401, 50 FR 245, Jan. 3, 1985]

              77 Uncleared Expense Credits.
              (a) Record here credits to operating expenses, which have not been cleared to the objective accounts to which applicable.
              (b) Each air carrier shall credit, or charge as appropriate, the objective account prescribed for each expense element which may be involved in distribution of expenses between separate reporting entities or nontransport divisions of the air carrier. At the option of the air carrier, either the individual applicable objective accounts or this account may be credited with amounts capitalized, charged against incidental services, or otherwise assigned to other than separate operating entities of the air carrier provided the aggregate credits to this account in each function do not, for any accounting year, distort the individual objective accounts of the function to which related and all expense credits applicable to complete individual transactions are consistently credited either to this account or the individual objective accounts to which related. Each air carrier using this account shall establish such standard practices as may be prescribed by the BTS or, such standard practices as will prevent credits to this account from significantly distorting the individual objective accounts of each function to which related.
              (c) This account shall not be credited with amounts applicable to objective accounts of the Flying Operations, Depreciation, and Direct Maintenance functions. Credits applicable to such functions shall be carried to the individual objective accounts to which applicable.
              (d) This account shall be subdivided as follows by all air carrier groups:

                77.8 Uncleared Interchange Expense Credits.

                Record here credits to operating expenses, from operations performed for others under aircraft interchange agreements, which have not been cleared to the objective accounts to which applicable.
                77.9 Other Uncleared Expense Credits.

                Record here credits to operating expenses, from other than operations under aircraft interchange agreements, which have not been cleared to the objective accounts to which applicable.

              [ER-755, 37 FR 19726, Sept. 21, 1972, as amended at 60 FR 66723, Dec. 26, 1995]
              78 Direct Maintenance—Flight Equipment.
              This classification is established for purposes of control by the BTS and shall include all charges to operating expenses for maintenance of flight equipment of all types and classes.
              [ER-755, 37 FR 19726, Sept. 21, 1972, as amended at 60 FR 66723, Dec. 26, 1995; Doc. No. DOT-OST-2014-0140, 84 FR 15931, Apr. 16, 2019]
              79 Applied Burden Debit/Credit.
              (a) This classification is established only for purposes of control by the BTS and reporting on Form 41 by air carriers, and shall reflect all maintenance burden applied in accordance with the provisions of section 24, schedule P-5 of this system of accounts and reports.
              (b) This classification shall be subdivided as follows by all air carrier groups:

                79.6 Applied Burden—Flight Equipment.

                79.8 Applied Burden—General Ground Property.

              [ER-755, 37 FR 19726, Sept. 21, 1972, as amended by ER-979, 38 FR 10926, May 3, 1973; 60 FR 66723, Dec. 26, 1995]

              Section 14
              Objective Classification—Nonoperating Income and Expense
              80 Interest Income.
              Included under account 89 Other Nonoperating Income and Expense—Net.
              [ER-1401, 50 FR 245, Jan. 3, 1985]
              81 Interest on Long-term Debt and Capital Leases.
              (a) Record here interest expense applicable to long-term debt and capitalized leases.
              (b) This account shall be subdivided as follows by all air carrier groups:

                81.1 Interest expense—long-term debt.

                Record here interest on all classes of long-term debt. This includes interest expense applicable to all portions of long-term debt which are classified as either current (Account 2000) or long-term (Account 2210) for balance sheet classification purposes.

                81.2 Interest expense—capital leases.

                Record here for all capitalized leases, that portion of each lease payment which represents interest expense.

              [ER-1013, 42 FR 37516, July 21, 1977]
              82 Other Interest.
              (a) This account shall be subdivided as follows by all air carrier groups:

                82.1 Interest Expense—Short-Term Debt.

                Record here interest on all classes of short-term debt.
                83.1 Imputed Interest Capitalized—Credit.

                Record here credits related to imputed interest capitalized and recorded in asset accounts.
                83.2 Imputed Interest Deferred—Debit.

                Record here debits related to imputed interest deferred in balance sheet account 2390, Other deferred credits.
                83.3 Imputed Interest Deferred—Credit.

                Record here periodic credits for imputed interest, cleared to this account as the amount of such interest in the asset accounts is amortized.
                83.4 Interest Capitalized—Credit.

                Record here interest which is capitalized and recorded in asset accounts.
                84.1 Amortization of discount and expense on debt.

                Record here for all classes of debt the amortizations of discount and expense on short-term and long-term obligations.
                84.2 Amortization of premium on debt.

                Record here for all classes of debt the amortizations of premium on short-term and long-term obligations.

              (b) [Reserved]
              [ER-1401, 50 FR 245, Jan. 3, 1985, as amended by Amdt. 241-58, 54 FR 5596, Feb. 6, 1989]
              83 Capitalized Interest.
              Included under account 82 Other Interest.
              [ER-1401, 50 FR 245, Jan. 3, 1985]
              84 Amortization of Debt Discount, Premium and Expense.
              Included under account 82 Other Interest.
              [ER-1401, 50 FR 245, Jan. 3, 1985]
              85 Foreign exchange gains and losses.
              Record here gains and losses from transactions involving currency translations resulting from nonroutine abnormal changes in rates of foreign exchange and gains or losses which arise from translations of long-term debt principal and interest transactions.
              [Amdt. 241-58, 54 FR 5596, Feb. 6, 1989]
              86 Income from Nontransport Ventures.
              Included under account 89 Other Non-Operating Income and Expense—Net.
              [ER-980, 42 FR 38, Jan. 3, 1977]
              87 Equity in Income of Investor Controlled Companies.
              Included under account 89 Other Nonoperating Income and Expense—Net.
              [ER-1401, 50 FR 245, Jan. 3, 1985]
              89 Other Nonoperating Income and Expense—Net.
              (a) Record here all debits and credits of a nonoperating character which are not otherwise provided for in this section.
              (b) This account shall be subdivided as follows by all air carrier groups:

                80.0 Interest Income.

                (a) Record here interest income from all sources. This account shall include as an increase or reduction of interest received the proportionate amortization of any discount or premium on the purchase price of securities of others held by the air carrier.
                (b) This account shall not include interest on securities issued or assumed by the air carrier and subsequently reacquired.
                86.0 Income from Nontransport Ventures.

                (a) Record here the gross revenues and expenses applicable to operations not reasonably considered as incidental to the commercial air transport services of the accounting entity; rents from nonoperating properties used by others; income or loss from nontransport divisions; and other income or loss from activities of the air carrier which are extraneous to the air transport and incidental services of the accounting entity.

                (b) This account shall include revenues and expenses applicable to nonscheduled transport services performed for the defense establishment when separate reports for such services are required in accordance with section 21 “Introduction to System of Reports.” Where the foregoing transport services are not required to be separately reported, gross revenues from such services shall be included in profit and loss account 07 Charter, or other appropriate revenue account, and gross expenses shall be included in the appropriate operating expense functions.
                87.0 Equity in Income of Investor Controlled Companies.

                Record here the equity in the current earnings or losses of investor controlled companies. Dividends declared on the stock of such companies shall not be included in this account as income but shall be entered in balance sheet subaccount 1510.1 Investments in Investor Controlled Companies as a return on investment.
                88.1 Intercompany Transaction Adjustment—Credit.

                Record here all intercompany credits for any differences between amounts at which transactions between the air carrier and its nontransport divisions or associated companies are initially recorded and are to be settled.
                88.2 Dividend income.

                Record here income from dividends declared on stocks of other than investor controlled companies. Dividends declared on stock of investor controlled companies shall not be included in this account but shall be entered in balance sheet subaccount 1510.1 Investments in Investor Controlled Companies.
                88.3 Net Unrealized Gain or Loss on Marketable Equity Securities.

                Record here the net unrealized gain or loss on the valuation of marketable equity securities.
                88.4 Net Realized Gain or Loss on Marketable Equity Securities.

                Record here the net realized gain or loss on the valuation of marketable equity securities.
                88.5 Capital gains and losses—operating property.

                Record here gains or losses on retirements of operating property and equipment, flight equipment expendable parts, or miscellaneous materials and supplies sold or otherwise retired in connection with a general retirement program as opposed to incidental sales performed as a service to others.
                88.6 Capital gains and losses—other.

                Record here gains or losses not required to be reported in accounts 88.3, 88.4 and 88.5 such as gains or losses on retirement of nonoperating property and equipment, investments in other than marketable equity securities, and the transfer of assets in a troubled debt restructuring.
                88.7 Unapplied cash discounts.

                Record here cash discounts on routine purchases of materials, repair parts or supplies. Cash discounts on classes of assets included in property and equipment accounts shall not be recorded in this account but shall be applied as a reduction of the cost of such accounts.
                88.9 Other miscellaneous nonoperating credits.

                Record here all credits of a nonoperating character not provided for otherwise, such as royalties from patents, gains from reacquisition and retirement or resale of debt securities issued by the air carrier, and gains resulting from troubled debt restructurings.
                89.1 Intercompany Transaction Adjustment—Debit.

                Record here all intercompany debits for any differences between amounts at which transactions between the air carrier and its nontransport divisions or associated companies are initially recorded and are to be settled.
                89.9 Other Miscellaneous Nonoperating Debits.

                Record here all debits of a nonoperating character not provided for otherwise, such as the following:
                (a) Fines or penalties imposes by governmental authorities;
                (b) Costs associated with employment discrimination that include the following:
                (1) Fines or penalties paid by the carrier as a result of a judicial or administrative decree; or the amount paid to the complainant in settling or securing a consent decree;
                (2) Back pay awards as a result of a judicial or administrative decree or a compromise settlement regardless of admission of guilt;
                (3) Attorneys' fees or court costs awarded to the complainant by a judicial or administrative decree or as a result of a compromise settlement regardless of admission of guilt;
                (4) The fees of outside legal counsel or of experts retained in the unsuccessful defense of a discrimination suit or in securing a compromise settlement or consent decree, unless the amounts attributable to the discrimination are not reasonably identifiable; or
                (5) Any other expenses, such as employee salaries, resulting from employment practices that were found to be discriminatory or that were the subject of a compromise settlement or consent decree where the amounts attributable to discrimination are reasonably identifiable.

                (c) Amortization expense attributable to capital leases recorded in balance sheet Account 1795, Leased Property under Capital Leases;

                (d) Costs related to property held for future use;
                (e) Donations for charitable, social or community welfare purposes;
                (f) Losses on reacquired and retired or resold debt securities of the air carrier;
                (g) Losses resulting from troubled debt restructurings;
                (h) Losses on uncollectible nonoperating receivables; or
                (i) Accruals to allowance for uncollectible nonoperating receivables.

              (Secs. 204, 404, 407, and 1002 of the Federal Aviation Act of 1958, as amended, 72 Stat. 743, 760, 766, 788, (49 U.S.C. 1324, 1374, 1377, 1482))
              [ER-980, 42 FR 38, Jan. 3, 1977, as amended by ER-1013, 42 FR 37516, July 21, 1977; ER-1027, 42 FR 60128, Nov. 25, 1977; ER-1076, 43 FR 46296, Oct. 6, 1978; ER-1401, 50 FR 245, Jan. 3, 1985; Amdt. 241-58, 54 FR 5596, Feb. 6, 1989]

              Section 15
              Objective Classification—Income Taxes for Current Period
              91 Provision for Income Taxes.
              (a) Record here quarterly provisions for accruals of Federal, State, local, and foreign taxes based upon net income, computed at the normal tax and surtax rates in effect during the current accounting year. In general, this account shall reflect provisions within each period for currently accruing tax liabilities as actually or constructively computed on tax returns, and any subsequent adjustments. This account shall include credits for refund claims arising from the carryback of losses in the year in which the loss occurs, credits for the carry-forward of losses in the year to which the loss is carried, and investment tax credits in the year in which each credit is utilized to reduce the liability for income taxes.
              (b) Income taxes shall be allocated among the transport entities of the air carrier, its nontransport divisions, and members of an affiliated group. Under circumstances in which income taxes are determined on a consolidated basis by an air carrier and other members of an affiliated group, the income tax expense to be recorded by the air carrier shall be the same as would result if determined for the air carrier separately for all time periods, except that the tax effect of carryback and carryforward operating losses, investment tax credits, or other tax credits generated by operations of the air carrier shall be recorded by the air carrier during the period in which applied in settlement of the taxes otherwise attributable to any member, or combination of members, of the affiliated group. Any difference between the income tax so recorded and the amount at which settlement is to be made shall be recorded in subaccount 88.1 Intercompany Transaction Adjustment—Credit or in subaccount 89.1 Intercompany Transaction Adjustment—Debit, as is appropriate.
              (c) This account shall be subdivided as follows by all carrier groups:

                91.1 Income Taxes Before Investment Tax Credits.

                Record here accruals of income taxes based upon taxable income of the period.
                91.2 Investment Tax Credits Utilized.

                Record here investment tax credits utilized to reduce the accrued liability for income taxes.

              [Amdt. 241-58, 54 FR 5596, Feb. 6, 1989]
              92 Provisions for Deferred Income Taxes.
              (a) Record here income tax debits and credits deferred in accordance with the provisions of balance sheet account 2340 Deferred Income Taxes for all material timing differences.
              (b) This account shall be subdivided as follows by all air carrier groups:

                92.1 Current Provisions for Deferred Taxes.

                92.2 Application of Taxes Deferred.

                92.3 Adjustments of Deferred Taxes.

              [ER-948, 41 FR 12296, Mar. 25, 1976]
              93 Investment Tax Credits Deferred and Amortized.
              (a) Record here investment tax credits of the current period which are transferred to balance sheet account 2345 Deferred Investment Tax Credits in accordance with the provisions of balance sheet account 2130 Accrued Taxes. This account shall also include amounts for previously deferred investment tax credits amortized during the current period.
              (b) This account shall be subdivided as follows by all carrier groups:

                93.1 Investment Tax Credits Deferred.

                93.2 Amortization of Deferred Investment Tax Credits.

              [ER-755, 37 FR 19726, Sept. 21, 1972, as amended by ER-980, 42 FR 39, Jan. 3, 1977]

              Section 16
              Objective Classification—Discontinued Operations
              95 Discontinued Operations.
              (a) Record here the earnings (losses) of discontinued nontransport operations. For the purposes of this system of accounts and reports discontinued operations shall refer to the disposal of investor controlled companies and nontransport ventures whether sold, abandoned, spun off, or otherwise disposed of. This account shall not include earnings or losses from discontinued transport or transport-related operations.
              (b) This account shall be subdivided as follows by all air carrier groups:

                95.1 Income from Discontinued Operations.

                Record here the results of operations of the discontinued operations.
                95.2 Loss of Disposal of Discontinued Operations.

                Record here the gain or loss on the disposal of an operation. If loss is anticipated it should be provided for at the measurement date. If gain is anticipated it should be recognized when realized.

              [ER-948, 41 FR 12296, Mar. 25, 1976]

              Section 17
              Objective Classification—Extraordinary Items
              96 Extraordinary Items.
              Record here material items characterized by their unusual nature and infrequent occurrence. Events or transactions which are material and either unusual or nonrecurring, but not both, shall be recorded in the profit and loss accounts to which they relate and disclosed on BTS Form 41 Schedule P-2 with identification as to their nature and financial effects.
              [Amdt. 241-58, 54 FR 5596, Feb. 6, 1989, as amended at 60 FR 66723, Dec. 26, 1995]
              97 Income Taxes Applicable to Extraordinary Items.
              Record here income taxes allocable to items of income included in profit and loss account 96 Extraordinary Items and income tax assessments that do not constitute ordinary adjustments of a recurrent nature. Records supporting entries to this account shall be maintained with sufficient particularity to identify the nature and gross amount of each extraordinary credit and each extraordinary debit.
              [ER-948, 41 FR 12296, Mar. 25, 1976]

              Section 18
              Objective Classification—Cumulative Effect of Changes in Accounting Principles
              98 Cumulative Effect of Changes in Accounting Principles.
              Record here the difference between the amount of retained earnings at the beginning of the period of a change in accounting principle and the amount of retained earnings that would have been reported at that date if the new accounting principle had been applied retroactively for all periods which would have been affected and by recognizing only the direct effects of a change and the related income tax effect.
              [ER-948, 41 FR 12296, Mar. 25, 1976]

            Operating Statistics Classifications

              Section 19
              Uniform Classification of Operating Statistics

              Sec. 19-1
              Applicability.
              (a) United States air carrier. Each large certificated U.S. air carrier shall file with the Department, on a monthly basis, Form 41 Schedule T-100 “U.S. Air Carrier Traffic and Capacity Data By Nonstop Segment and On-flight Market,” and summary data as prescribed in this section and in sections 22 and 25 of this part.
              (b) Foreign (non-U.S.) air carrier: Each foreign air carrier as required by part 217 of this chapter shall file Form 41 Schedule T-100(f) “Foreign Air Carrier Traffic Data by Nonstop Segment and On-flight Market.” The “Instructions to Foreign Air Carriers for Reporting Traffic Data on Form 41 Schedule T-100(f),” (Instructions-Foreign Air Carriers) are included in the Appendix to § 217.10 of this chapter.

              (c) Reports required by this section shall be submitted to the Bureau of Transportation Statistics in a format specified in accounting and reporting directives issued by the Bureau of Transportation Statistics' Director of Airline Information.
              (d) On-flight market and nonstop segment detail data by carrier shall be made public only as provided in section 19-6.
              [53 FR 46305, Nov. 16, 1988; 53 FR 52404, Dec. 28, 1988, as amended at 60 FR 66723, Dec. 26, 1995; 67 FR 49223, July 30, 2002; 75 FR 41583, July 16, 2010]

              Sec. 19-2
              Maintenance of data.
              (a) Each air carrier required to file Form 41 Schedule T-100 data shall maintain its operating statistics, covering the movement of traffic in accordance with the uniform classifications prescribed. Codes are prescribed for each operating element and service class. All traffic statistics shall be compiled in terms of each flight stage as actually performed.
              (b) Each carrier shall maintain data applicable to the specified traffic and capacity elements prescribed in section 19-5 and section 25, and by general service classes prescribed in section 19-4 of this part.
              (c) Operating statistics shall be maintained in accordance with the type of record, either nonstop segment or on-flight market.
              (d) Schedule T-100 collects summarized flight stage data and on-flight market data. All traffic statistics shall be compiled in terms of each revenue flight stage as actually performed. The detail T-100 data shall be maintained in a manner permitting monthly summarization and organization into two basic groupings: The nonstop segment information that must be summarized by equipment type, within class of service, within pair-of-points, without regard to individual flight numbers. The second grouping requires that the enplanement/deplanement information be broken out into separate units called “on-flight market records.” These records must be summarized by class of service, within pair-of-points, without regard for equipment type or flight number.
              (e) The Department may authorize joint-service operations between two direct air carriers. Examples of these joint-services are blocked-space agreements, part-charter agreements, code-share agreements, wet-lease agreements, and other similar arrangements. Joint services operations are reported by the air carrier in operational control of the aircraft. The traffic moving under these agreements is reported on Schedule T-100 the same way as any other traffic on the aircraft.

              (f) Any questions regarding T-100 should be e-mailed to T100.Support@dot.gov.

              [53 FR 46305, Nov. 16, 1988, as amended at 75 FR 41583, July 16, 2010]

              Sec. 19-3
              Accessibility and transmittal of data.
              (a) Each reporting air carrier shall maintain its prescribed operating statistics in a manner and at such locations as will permit ready accessability for examination by representatives of the Department. The record retention requirements are prescribed in part 249 of this chapter.
              (b) [Reserved]
              (c) Form 41 Schedule T-100 reports shall be transmitted in accordance with the standard practices established by the Department, and must be received by the Department within 30 days following the end of each reporting month.
              [53 FR 46305, Nov. 16, 1988; 53 FR 52404, Dec. 28, 1988, as amended at 67 FR 49223, July 30, 2002]

              Sec. 19-4
              Service classes.
              The statistical classifications are designed to reflect the operating elements attributable to each distinctive class of service offered. The operating elements shall be grouped in accordance with their inherent characteristics as follows:
              (a) Scheduled services. Scheduled services shall include traffic and capacity elements applicable to air transportation provided pursuant to published schedules and extra sections to scheduled flights. Scheduled Passenger/Cargo (Service Class F) is a composite of first class, coach, and mixed passenger/cargo service. The following classifications shall be reported, as applicable:

                U.S. Air Carriers:
                 K—Scheduled Services (F + G)

                 F—Scheduled Passenger/Cargo
                 G—Scheduled All-Cargo
                Foreign Air Carriers:
                 F—Scheduled Passenger/Cargo
                 G—Scheduled All-Cargo

              (b) Nonscheduled services. Nonscheduled services shall include all traffic and capacity elements applicable to the performance of nonscheduled aircraft charters, and other air transportation services not constituting an integral part of services performed pursuant to published flight schedules. The following classifications shall be reported, as applicable:

                U.S. Air Carriers:
                 V—Nonscheduled Services (L + N + P + R)
                 L—Nonscheduled Civilian Passenger/Cargo
                 P—Nonscheduled Civilian Cargo
                 N—Nonscheduled Military Passenger/Cargo
                 R—Nonscheduled Military Cargo
                Foreign Air Carriers:
                 L—Nonscheduled Civilian Passenger Cargo
                 P—Nonscheduled Civilian All-Cargo Charters
                 Q—Nonscheduled Services (Other than Charter)

              (c) All Services. This classification shall reflect, for the applicable elements, the aggregate amounts for all services performed by the operating entity:

                U.S. Air Carriers:
                 Z—All Services (V + K)

              Sec. 19-5
              Air transport traffic and capacity elements.
              (a) Within each of the service classifications prescribed in section 19-4, data shall be reported as applicable to specified air transport traffic and capacity elements.
              (b) These reported items are as follows:

                  Code
                  Description
                  Segment
                  Market
                  Computed by DOT

                  Carrier, carrier entity code
                  S
                  M

                  Reporting period date
                  S
                  M

                  Origin airport code
                  S
                  M

                  Destination airport code
                  S
                  M

                  Service class code
                  S
                  M

                  Aircraft type code
                  S

                  110
                  Revenue passengers enplaned

                  M

                  130
                  Revenue passengers transported
                  S

                  140
                  Revenue passenger-miles

                  CFD *

                  210
                  Revenue cargo tons enplaned

                  CFD *

                  217
                  Enplaned freight

                  M

                  219
                  Enplaned mail

                  M

                  230
                  Revenue tons transported

                  CFD *

                  237
                  Transported freight
                  S

                  239
                  Transported mail
                  S

                  240
                  Revenue ton-miles

                  CFD *

                  241
                  Revenue ton-miles passenger

                  CFD *

                  247
                  Revenue ton-miles freight

                  CFD *

                  249
                  Revenue ton-miles mail

                  CFD *

                  270
                  Available capacity payload
                  S

                  280
                  Available ton-miles

                  CFD *

                  310
                  Available seats, total
                  S

                  320
                  Available seat-miles

                  CFD *

                  410
                  Revenue aircraft miles flown

                  CFD *

                  430
                  Revenue aircraft miles scheduled

                  CFD *

                  501
                  Inter-airport distance

                  CFD *

                  510
                  Revenue aircraft departures performed
                  S

                  520
                  Revenue aircraft departures scheduled
                  S

                  610
                  Revenue aircraft hours (airborne)
                  S

                  630
                  Aircraft hours (ramp-to-ramp)
                  S

                  650
                  Total aircraft hours (airborne)
                  S

                * CFD = Computed by DOT from detail Schedule T-100 and T-100(f) data.

              (c) These reported items are further described as follows:
              (1) Reporting period date. The year and month or quarter to which the reported data are applicable.
              (2) Carrier, Carrier entity code. Each foreign air carrier shall report its name and code (assigned by DOT). Each U.S. air carrier shall report its name and entity code (a five digit code assigned by DOT that identifies both the carrier and its entity) for its particular operations. The Office of Airline Information (OAI) will assign or confirm codes upon request; OAI's address is in the Appendix to section 25 of this part and the Appendix to § 217.10 of this chapter.
              (3) Service class code. The service class codes are prescribed in section 19-4 of this part. In general, classes are divided into two broad categories, either K (scheduled) or V (nonscheduled), where K = F + G for all carriers and V = L + N + P + R for U.S. air carriers and comprises L + P and Q for foreign air carriers. Refer to section 19-4 for the more information on service class codes F, G, L, N, P, R and Q.
              (4) Record type code. This code indicates whether the data pertain to nonstop segment (record type S) or on-flight market (record type M).
              (5) Aircraft type code. This code represents the aircraft types, as described in the Appendix to section 25 of this part.
              (6) Origin, Destination airport code(s). These codes represent the industry designators described in the Appendix to section 25 of this part. A common private industry source of these industry designator codes is the Official Airline Guides (OAG). OAI will assign codes upon request if not listed in the OAG.
              (7) 110 Revenue passengers enplaned. The total number of revenue passengers enplaned at the origin point of a flight, boarding the flight for the first time; an unduplicated count of passengers in a market. Under the T-100 system of reporting, these enplaned passengers are the sum of the passengers in the individual on-flight markets. Report only the total revenue passengers enplaned in item 110. For all air carriers and all entities, item 110 revenue passengers enplaned is reported on Form 41 Schedule T-100 in column C-1, as follows:

                  Col.
                  All carrier groups and entities

                  C-1
                  110
                  Revenue passengers enplaned.

              (8) 130 Revenue passengers transported. The total number of revenue passengers transported over single flight stage, including those already on board the aircraft from a previous flight stage. Report only the total revenue passengers transported in item 130. For all air carriers and all entities, item 130 revenue passengers transported is reported on Form 41 Schedule T-100 in Column B-7, as follows:

                  Col.
                  All carrier groups and entities

                  B-7
                  130
                  Revenue passengers transported.

              (9) 140 Revenue passenger-miles. Computed by multiplying the interairport distance of each flight stage by the number of passengers transported on that flight stage.
              (10) 210 Revenue cargo tons enplaned. The total number of cargo tons enplaned. This data element is a sum of the individual on-flight market figures for each of the following categories: 217 Freight and 219 mail. This element represents an unduplicated count of the revenue traffic in a market.
              (11) 230 Revenue tons transported. The number of tons of revenue traffic transported. This element is the sum of the following elements: 231 Passengers transported-total, 237 Freight, and 239 Mail.
              (12) 240 Revenue ton-miles—total. Ton-miles are computed by multiplying the revenue aircraft miles flown (410) on each flight stage by the number of tons transported on that stage. This element is the sum of 241 through 249.
              (13) 241 Revenue ton-miles—passenger. Equals the number of passengers times 200, times interairport distance, divided by 2000. A standard weight of 200 pounds per passenger, including baggage, is used for all operations and service classes.
              (14) 247 Revenue ton-miles—freight. Equals the volume of freight in whole tons times the interairport distance.
              (15) 249 Revenue ton-miles—mail. Equals the volume of mail in whole tons times the interairport distance.
              (16) 270 Available capacity-payload. The available capacity is collected in pounds. This figure shall reflect the payload or total available capacity for passengers, mail and freight applicable to the aircraft with which each flight stage is performed.
              (17) 280 Available ton-miles. The aircraft miles flown on each flight stage multiplied by the available capacity on the aircraft in tons.

              (18) 310 Available seats. The number of seats available for sale. This figure reflects the actual number of seats available, excluding those blocked for safety or operational reasons. Report the total available seats in item 310. For all air carriers and all entities, item 310 available seats, total is reported on Form 41 Schedule T-100 in column B-4, as follows.

                  Col.
                  All carrier groups and entities

                  B-4
                  310
                  Available seats, total.

              (19) 320 Available seat-miles. The aircraft miles flown on each flight stage multiplied by the seat capacity available for sale.
              (20) 410 Revenue aircraft miles flown. Revenue aircraft miles flown are computed in accordance with the airport pairs between which service is actually performed; miles are generated from the data for scheduled aircraft departures (Code 520) times the interairport distances (Code 501).
              (21) 430 Revenue aircraft miles scheduled. The number of revenue aircraft miles scheduled. All such data shall be maintained in conformity with the airport pairs between which service is scheduled, whether or not in accordance with actual performance.
              (22) 501 Interairport distance. The great circle distance, in official statute miles as prescribed in part 247 of this chapter, between airports served by each flight stage. Official interairport mileage may be obtained from the Office of Airline Information at the address included in section 25 of this part.
              (23) Revenue aircraft departures performed. The number of revenue aircraft departures performed.
              (24) 520 Revenue aircraft departures scheduled. The number of revenue aircraft departures scheduled, whether or not actually performed.
              (25) 610 Revenue aircraft hours (airborne). The elapsed time, computed from the moment the aircraft leaves the ground until its next landing.
              (26) 630 Aircraft hours (ramp-to-ramp). The elapsed time, computed from the moment the aircraft first moves under its own power from the boarding ramp at one airport to the time it comes to rest at the ramp for the next point of landing. This data element is also referred to as “block” and block-to-block aircraft hours.
              (27) 650 Total aircraft hours (airborne). The elapsed time, computed from the moment the aircraft leaves the ground until it touches down at the next landing. This includes flight training, testing, and ferry flights.
              (28) 810 Aircraft days assigned to service—carrier's equipment. The number of days that aircraft owned or acquired through rental or lease (but not interchange) are in the possession of the reporting air carrier and are available for service on the reporting carrier's routes plus the number of days such aircraft are in service on routes of others under interchange agreements. Includes days in overhaul, or temporarily out of service due to schedule cancellations. Excludes days that newly acquired aircraft are on hand, but not available for productive use, days rented or leased to others (for other than interchange) and days in possession but formally withdrawn from air transportation service.
              (29) 820 Aircraft days assigned to service—carrier's routes. The same as “aircraft days assigned to service—carrier's equipment,” but excluding the number of days that the reporting carrier's owned or rented equipment are in the possession of others under interchange agreements and including the number of days aircraft of others are in the possession of the reporting air carrier under interchange agreements.
              (30) 921 Aircraft fuels issued (gallons). The amount of aircraft fuels issued, in U.S. gallons, during the reporting period for both revenue and nonrevenue flights.
              [53 FR 46305, Nov. 16, 1988, as amended by Amdt. 241-58, 54 FR 7184, Feb. 17, 1989; 60 FR 66723, Dec. 26, 1995; 62 FR 6718, Feb. 13, 1997; 67 FR 49224, July 30, 2002]

              Sec. 19-6
              Public disclosure of traffic data.

              (a) Detailed domestic on-flight market data and nonstop segment data except military data shall be made publicly available after processing. Domestic data are defined as data from air transportation operations from a place in any State of the United States, the District of Columbia, the Commonwealth of Puerto Rico and the Virgin Islands, or a U.S. territory or possession to a place in any State of the United States, the District of Columbia, the Commonwealth of Puerto Rico and the Virgin Islands, or a U.S. territory or possession. Domestic military operations are reported under service codes N or R.
              (b) Detailed international on-flight market and nonstop segment data in Schedule T-100 and Schedule T-100(f) reports, except military data, shall be publicly available immediately following the Department's determination that the database is complete, but no earlier than six months after the date of the data. Military operations are reported under service codes N or R. Data for on-flight markets and nonstop segments involving no U.S. point shall not be made publicly available for three years. Industry and carrier summary data may be made public before the end of six months or the end of three years, as applicable, provided there are three or more carriers in the summary data disclosed. The Department may, at any time, publish international summary statistics without carrier detail. Further, the Department may release nonstop segment and on-flight market detail data by carrier before the end of the confidentiality period as follows:
              (1) To foreign governments as provided in reciprocal arrangements between the foreign country and U.S. Government for exchange of on-flight market and/or nonstop segment data submitted by air carriers of that foreign country and U.S. carriers serving that foreign country;
              (2) To parties to any proceeding before the Department under 49 U.S.C. Subtitle VII, as required by the Administrative Law Judge or other decisionmaker of the Department. Parties may designate agents or consultants to receive the data in their behalf, provided the agents or consultants agree to abide by the disclosure restrictions. Any data to which access is granted pursuant to this provision may be introduced into evidence, subject to the normal rules of admissibility of evidence.
              (3) To agencies and other components of the U.S. Government for their internal use only.
              [Amdt. 241-59, 56 FR 2845, Jan. 25, 1991, as amended at 62 FR 6719, Feb. 13, 1997; 67 FR 49224, July 30, 2002; Doc. No. DOT-OST-2014-0140, 84 FR 15931, Apr. 16, 2019]

              Sec. 19-7
              Passenger origin-destination survey.

              (a) All U.S. large certificated air carriers conducting scheduled passenger operations (except helicopter carriers) shall participate in a Passenger Origin-Destination (O & D) Survey covering domestic and international operations, as described in the instructions manual entitled, Instructions to Air Carriers for Collecting and Reporting Passenger Origin-Destination Survey Statistics (Appendix A to this section), and in Passenger Origin-Destination Directives issued by the Department's Bureau of Transportation Statistics (BTS), Office of Airline Information (OAI). Copies of these Instructions and Directives are provided to each large carrier participating in the Survey. Copies are also available from the Office of Airline Information, RTS-42, U.S. Department of Transportation, 1200 New Jersey Avenue, SE., Washington, DC 20590. Copies of these Instructions and Directives are available on the BTS Web page at (http://www.bts.gov/programs/airline_information/).
              (b) Reports required by this section shall be submitted to the Bureau of Transportation Statistics in a format specified in accounting and reporting directives issued by the Bureau of Transportation Statistics' Director of Airline Information.

              (c) A statistically valid sample of light coupons shall be selected for reporting purposes. The sample shall consist of at least 1 percent of the total lifted ticket flight coupons for all large domestic markets listed in the Instructions and 10 percent for all others—including domestic and international markets. The sample shall be selected and reported in accordance with the requirements of paragraph (a) of their section, except that the participating O & D carriers with nonstandard ticketing procedures, or other special operating characteristics, may propose alternative procedures. Such departures from standard O & D Survey practices shall not be authorized unless approved in writing by the Director, Office of Airline Information under the procedures in Sec. 1-2 of 14 CFR part 241. The data to be recorded and reported from selected lifted ticket flight coupons, as stipulated in the Instructions and Directives shall include the following data elements: Point of origin, carrier on each flight-coupon stage, fare-basis code for each flight-coupon stage, points of stopover or connection (interline and intraline), point of destination, number of passengers, and total dollar value of ticket (fare plus tax).
              (d) Data covering the operations of foreign air carriers that are similar to the information collected in the Passenger Origin-Destination Survey are generally not available to the Department, the U.S. carriers, or U.S. interests. Therefore, because of the damaging competitive impact on U.S. carriers and the adverse effect upon the public interest that would result from unilateral disclosure of the U.S. survey data, the Department has determined its policy to be that the international data in the Passenger Origin-Destination Survey shall be disclosed only as follows:
              (1) To an air carrier directly participating in and contributing input data to the Survey or to a legal or consulting firm designated by an air carrier to use on its behalf O & D data in connection with a specific assignment by such carrier.
              (2) To parties to any proceeding before the Department to the extent that such data are relevant and material to the issues in the proceeding upon a determination to this effect by the Administrative Law Judge or by the Department's decision-maker. Any data to which access is granted pursuant to this section may be introduced into evidence subject to the normal rules of admissability of evidence.
              (3) To agencies and other components of the U.S. Government.
              (4) To other persons upon a showing that the release of the data will serve specifically identified needs of U.S. users which are consistent with U.S. interests.
              (5) To foreign governments and foreign users as provided in formal reciprocal arrangements between the foreign and U.S. governments for the exchange of comparable O & D data.
              (e) The Department reserves the right to make such other disclosures of the O & D data as is consistent with its regulatory functions and responsibilities.

                Appendix A to § 19-7—Instructions to Air Carriers for Collecting and Reporting Passenger Origin-Destination Survey Statistics

                All questions, comments, extension and waiver requests should be e-mailed to ODsurvey.Support@dot.gov.

                  EC30SE91.007

                B. Narrative Description
                A single O&D Survey is conducted continuously by the large U.S. certificated air carriers. Foreign air carriers do not directly participate in the Survey, although some of their data are captured in the Survey, since passengers who share a ticketed itinerary between a U.S. carrier and a foreign carrier may be sampled by the U.S. carrier. The authority for these instructions is found in 14 CFR part 241, sec. 19-7.
                The Survey samples revenue passenger trips moving in whole or in part on domestic and/or international scheduled services of the carriers participating in the Survey. In general, these requirements do not apply to small certificated, all-cargo and all charter carriers.
                The source documents for the Survey data are passenger tickets. These data are collected from the “lifted” flight coupons of tickets (a portion of a multi-part ticket booklet of three 1
                   or more coupons, including one for each stage of the passenger's trip itinerary which is lifted by the carrier as the passenger boards a particular flight segment).

                    1 Each ticket booklet is comprised of one or more flight coupons for passenger travel in a city-pair market, plus a passenger coupon (the traveler's receipt) and the auditor coupon (for the carrier's internal controls).

                The Survey data are taken from the coupon that is lifted by a participating carrier, unless it is apparent from the lifted coupon that another participating carrier has already recorded and reported the data, in which instance the ticket coupon is non-reportable for the second honoring/participating carrier. The complete passenger itinerary, and related data on type of fare and dollar value of the ticket, is recorded as one entry from the sampled, reportable flight coupon.
                The recording of data from the sampled flight coupon normally consists of transcribing the information exactly as indicated on the ticket. The detail recorded for each trip shows the complete routing from the origin city (airport code) to the destination city (airport code) including, in sequence from the origin, each point of transfer and stopover (intraline and interline), the summarized fare-basis code shown for each flight coupon stage of the itinerary, and the total dollar value of the fare and tax for the entire ticket.
                Prior to 1987, the Survey was generally based on a 10-percent sample of passenger tickets. Beginning July 1, 1987, the Survey is collected primarily on the basis of a stratified, scientific sample of at least 1 percent of tickets in domestic major markets and 10 percent of tickets in all other domestic and in all international city-pair markets. The Survey data are taken from the selected flight coupons of the tickets sampled: single-coupon or double-coupon round trips in domestic major markets where the ticket serial number ends in double zero (00) and all other ticket coupons ending in zero (0). This procedure yields a “two-tiered” stratified sample.

                Group tickets are included on the basis of a 10-percent sample when the number of passengers on such a group ticket is 10 or less. Group tickets with more than 10 passengers on each ticket are included on the basis of a 100 percent census, i.e., all such tickets are sampled, regardless of serial number, and the total data listed are conformed to a 10 percent sample for inclusion in the O&D Survey.
                Following the selection of reportable flight coupons and the recording of data, each participating carrier shall edit and summarize 2
                   the data into a quarterly report to the Department.

                    2 These summarization procedures include showing two or more passengers with the same itinerary as one O&D record and compressing extremely lengthy itineraries (such as around-the-world tickets) into a standard trip stage length limit (which may be either seven or twenty-three stages, at the carrier's option), as explained in Section V.D.

                II. Effective Date of Instructions
                These data collection and reporting instructions are effective on and after July 1, 1987 and apply to all flight coupons lifted on or after July 1, 1987.
                III. Carriers Participating in Survey
                A. Participating carriers. As defined in section 19-7 of the Department's Economic Regulations (14 CFR part 241), the participants in the O&D Survey include all large certificated air carriers conducting scheduled passenger services (except helicopter carriers). These participating carriers collect and report data in accordance with these Instructions, and supplemental Passenger Origin-Destination Directives that may be issued periodically. The list of participating carriers will be issued by reporting directive under the authority in 14 CFR 385.27(b).
                B. Amendments to list of participating carriers. As new carriers begin service, they will be required to file O&D Survey Data. These carriers will not be added to the participating carrier list automatically, but will be added when the next annual review is made.
                IV. Submission of Reports
                A. Period covered by reports. Reports are to be filed for each calendar quarter of the year as shown below:

                    Report
                    Time period covered

                    1st quarter
                    Jan. 1 through Mar. 31.

                    2nd quarter
                    Apr. 1 through June 30.

                    3rd quarter
                    July 1 through Sept. 30.

                    4th quarter
                    Oct. 1 through Dec. 31.

                B. Filing date for reports. Reports are to be filed with the Department on or before the dates listed below. The mailing address is on the inside cover to these instructions.

                    Report
                    Due date 1

                    1st quarter
                    May 15

                    2nd quarter
                    Aug. 15

                    3rd quarter
                    Nov. 15

                    4th quarter
                    Feb. 15

                    1 Due dates falling on Saturday, Sunday or national holiday will become effective the first following work day.

                C. Format of the Report. Reports required by this section shall be submitted to the Bureau of Transportation Statistics in a format specified in accounting and reporting directives issued by the Bureau of Transportation Statistics' Director of Airline Information.
                D. [Reserved]
                E. All reports shall be filed with the Bureau of Transportation Statistics in a format specified in accounting and reporting directives issued by the Bureau of Transportation Statistics' Director of Airline Information.
                V. Selection of Sample and Recording of Data. 4

                    4 Upon approval of the Director, Office of Airline Information, carriers may continue current reporting procedures (up to twenty-three stages of a passenger flight) and may report a uniform 10 percent sample of tickets lifted (each zero ending lifted coupon) without reducing the sample size from 10 percent to 1 percent for domestic major markets. Note that the domestic major markets will be reviewed each year at June 30, based on the prior 12 months O&D data, and the list amended as necessary. The list could remain static for more than a year, although it will be reviewed annually. Necessary amendments will be effective on January 1 of the following year.

                A. Sampling Basis. Each participating carrier in this O&D Survey shall search all listed flight coupons, whether the coupons are its own ticket stock or on the ticket stock of another U.S. or foreign carrier (either standard IATA and ARC ticket stock or nonstandard ticket stock), and is to select for reporting purposes the following flight coupons:
                (1) Major domestic markets. All single-passenger flight coupons that are either a single flight coupon ticket or part of a round trip, two coupon ticket where the ticket serial number ends in the digits double-zero (00).

                  Note.
                  The list of major domestic markets will be issued by reporting directive under the authority in 14 CFR 385.27(b).

                (2) International markets and all other domestic markets. (a) All single-passenger flight coupons with ticket serial numbers ending with the digit zero (0);
                (b) Those group-ticket flight coupons with 10 or fewer passengers with ticket serial numbers ending with the digit zero (0);
                (c) Those group-ticket flight coupons with 11 or more passengers without regard to serial number; and
                (d) Itineraries in major domestic markets that comprise more than two coupons are sampled on a uniform 10 percent basis, by selecting all ticket serial numbers ending with the digit zero (0).
                B. Selection of Reportable Flight Coupons. The flight coupons identified above are to be examined to isolate the reportable flight coupons, i.e. coupons from which data are to be recorded. Flight coupon data are reported only by the first honoring and participating carrier (operating carrier). Such carriers shall report the required data for the entire ticketed itinerary.
                If a participating carrier has preceded an examining carrier on any stage in the trip itinerary, including any stage in a conjunction itinerary and any stage in a reissued ticket (either before or after reissue) that coupon is not reportable.
                For conjunction tickets, the ticket number for the first ticket booklet determines if the conjunction tickets should be reported in the Survey. Otherwise, conjunction tickets do not require special treatment and are governed by the rules for regular tickets.
                No adjustment is made in the Survey for alterations or changes in the trip itinerary subsequent to the stage covered by the reportable coupon.
                C. Optional Use of Other Sampling Procedures.

                (1) Alternative sampling procedures or alternative O&D data systems may be proposed by participating carriers with nonstandard ticketing procedures, or other special operating characteristics. Data reported under proposed alternative procedures must approximate the usefulness and statistical validity of the O&D Survey.
                (2) Such departures from the prescribed O&D Survey practices shall not be authorized unless approved in writing by the Director, Office of Airline Information (address inside front cover). The proposed alternative O&D Survey procedures must be described in detail in the letter requesting the waiver.
                D. Recording of Data from Reportable Flight Coupons. (1) The following items are to be reported from the reportable flight coupons:
                (a) Point of origin,
                (b) Operating carrier on each flight stage (if unknown, identify ticketed carrier),
                (c) Ticketed carrier on each flight stage,
                (d) Fare-basis on each flight coupon, C, D, F, G, X or Y,
                (e) Points of stopover or connection (interline and intraline),
                (f) Point of destination,
                (g) Number of passengers, and
                (h) Total dollar value of ticket (fare plus tax and other charges, such as Passenger Facility Charges).
                (2) The individual items are to be recorded in the sequence of occurrence in the itinerary as follows:
                (a) All entries for points (airport codes 5

                  ) in an itinerary are to be recorded in three-letter airport code data to fit into the stage-length limitation (seven or twenty-three stages at the carrier's option), all airport codes are to be reported, including data on commuter, foreign, intra-state and other carriers' portions of itineraries. Normally codes are recorded as they appear on the ticket. However, if a code is obviously incorrect, record the correct code. For instance, if a ticket is coded DCA-NYC or Washington/National to New York when the flight stage actually operated from Washington, Dulles to Newark (EWR), record the correct airport code. When only name spellings of a city appear on the ticket for multi-airport cities (such as Washington, New York, San Francisco, or Los Angeles), record the specific three letter airport code. In cases where two airport codes are shown on the ticket for a point, such as when the passenger arrives at an airport such as San Francisco and departs from another local airport such as Oakland, record the code for the arrival airport, enter a surface segment indicator (—) to the departure airport, and record the departure airport code. (When the surface portion is at the beginning or end of an itinerary, the surface indicator is to be omitted). For example:

                    5 Codes to be used are those appearing in the Official Airline Guide at the time the data are being recorded. If a code is not found in the OAG, contact the Director, Office of Airline Information (address inside front cover).

                    000001
                    UCA
                    YV
                    UA
                    Y
                    JFK
                    TW
                    TW
                    X

                    Passenger(s)
                    Utica
                    MesaOperating
                      Carrier

                    UnitedTicketed
                      Carrier

                    Fare Code
                    New YorkKennedy
                      Airport

                    TWAOperating
                      Carrier

                    TWATicketed
                      Carrier

                    Fare Code

                  Surface Transportation

                    SFO

                    (Blank space)

                    San Francisco
                    Operating Carrier
                    Ticketed Carrier
                    Fare Code

                    OAK
                    UA
                    UA
                    G
                    LAX
                    DL
                    DL
                    F

                    Oakland
                    UnitedOperating
                      Carrier

                    UnitedTicketed
                      Carrier

                    Fare
                    Los Angeles
                    DeltaOperating
                      Carrier

                    DeltaOperating
                      Carrier

                    Fare Code

                    SLC
                    NW
                    NW
                    D
                    PHX
                    AA
                    AA
                    C
                    LAX

                    Salt Lake City
                    NorthwestOperating
                      Carrier

                    NorthwestTicketed
                      Carrier

                    Fare Code
                    Phoenix
                    AmericanOperating
                      Carrier

                    AmericanTicketed
                      Carrier

                    Fare Code
                    Los Angeles

                    JL
                    JL
                    C
                    NRT
                    04596

                    Japan Air LinesOperating
                      Carrier

                    Japan Air LinesTicketed
                      Carrier

                    Fare Code
                    Tokyo Narita
                    Dollars of Fare + Tax

                In the above example, the passenger trip stages or segments are compressed into the maximum of 7 stages so that several intermediate city-pairs (Los Angeles to Seattle to Anchorage, or LAX—SEA—Anc) and the related carriers have not been recorded, as prescribed below in this Section V.D.(3)(e). In addition, after the fourth city-pair (Los Angeles-Salt Lake City), the passenger trip itinerary moves from the initial four-part ticket booklet onto another “conjunction” ticket, and the summary fare code data are not recorded beyond the initial four-part ticket.
                (b) All entries for operating and ticketed carriers for a coupon stage of an itinerary are to be recorded using two character IATA-assigned or DOT codes, as in the above example. Note that the fare code summary was properly inserted after the ticketed carrier's code, i.e., UA for United Air Lines and Y for unrestricted coach class service. When a two-character carrier code is shown on the ticket, record that code for the ticketed carrier. However, if a code is obviously incorrect, record the correct carrier code. If the reporting carrier does not know the operating carrier on a downline code-share segment, it would use the ticketed carrier's code for both the operating and ticketed carriers. The reporting carrier is not responsible for knowing the operating carrier of a downline code-share where it is not a party to the code-share segment. Except for the infrequent compression of data to fit into the stage-length limitation (7 or 23 stages at the carrier's option), all carrier codes are to be recorded, including data on air taxis, commuters, intra-state, and other carrier portions of itineraries. On tickets involving interchange service or other cooperative carrier arrangements, the juncture point(s) where the passenger moves from one carrier system to another is to be recorded as an intermediate point in the itinerary, even when not shown on the ticket and even though the flight may overfly the juncture point.

                (c) Entries for fare-basis codes are to be taken from the “fare basis” and “fare description” portions of the ticket and simplified into the appropriate category, as shown below. No attempt shall be made to determine and record fare-basis codes for that portion of a conjunction ticket appearing in the ticket. Fare-basis codes are to be recorded in one-character alphabetic codes. The fare-basis codes are recorded as follows:

                C—Unrestricted Business Class
                D—Restricted Business Class
                F—Unrestricted First Class
                G—Restricted First Class
                X—Restricted Coach/Economy Class
                Y—Unrestricted Coach/Economy Class

                U—Unknown (This fare category is used when none is shown on a ticket coupon, or when a fare category is not discernible, or when two or more carrier fare codes are compressed into a single stage of a passenger trip).

                (d) In recording the number of passengers, each single-passenger ticket is to be recorded as one passenger. Tickets for infants under two years of age not occupying a seat are not to be counted. A revenue passenger is defined in Section X.

                For group tickets of 10 or fewer passengers per ticket record the actual number of passengers on each ticket, i.e., either 2, 3, 4, 5, 6, 7, 8, 9 or 10. For group tickets with 11 or more passengers (those sampled at a 100-percent rate) record the actual number of passengers traveling on each ticket, but keep these entries separate from the group ticket records with 10 or fewer passengers and from the single-passenger ticket records. Group tickets with 11 or more passengers are to be sorted and summarized to combine all passengers for all itineraries which are identical in every respect, i.e., points, carriers, fare basis codes, and average dollar value (as defined in paragraph (e), below). The total number of passengers on each summarized record is to be divided by 10, rounding to the nearest whole passenger. If the quotient ends in 0.5 or more, raise to the next whole passenger. If the quotient ends in less than 0.5, drop the fraction. These large group-ticket records, after division by 10 for compatibility with the other data, are to be merged with the single-passenger records and with the group-ticket entries from tickets of 10 or fewer passengers for the quarterly O&D Survey report.
                (e) The total dollar value shall be taken from the “Total” box on each ticket and shall be the sum of the fare plus tax for the entire ticket. Record this amount in whole U.S. dollars, with the cents dropped. Do not round cents to nearest whole dollar.

                Amounts on tickets stated in foreign currency are to be converted to U.S. dollar equivalents. For all group tickets, the dollar value to be recorded shall be the average amount per passenger, determined by dividing the total dollar value for the entire group by the number of passengers on the group ticket, dropping cents in the average amount.
                (3) The length of the itineraries to be recorded is limited to a maximum of seven stages or twenty-three stages, at the carrier's option. This recognizes that the vast majority of tickets sampled have seven stages or fewer and that the rare occurrences of extremely lengthy itineraries do not impact the overall Survey results enough to justify their reporting burden. Therefore, trips longer than these limits are compressed to fall within the stated maximums. The ticketed origin and destination are retained, but the intermediate routing is compressed by applying the following rules, in sequence:
                (a) Combine any contiguous open, unknown carrier, or surface stages eliminating the connecting point, and ignoring the fare-basis codes, if different:
                (b) Combine any contiguous stages via the same non-U.S. carrier, eliminating the connecting point, and ignoring the fare-basis codes, if different;
                (c) Combine any contiguous stages via different non-U.S. carrier, making the carrier “UK”, eliminating the connecting point, and ignoring fare-basis codes, if different:
                (d) Combine any contiguous stages via the same U.S. carrier, eliminating the connecting point, and ignoring the fare-basis codes, if different, and;
                (e) If the trip, after applying the four steps above, is still too long, record the compressed routing through to the stage length limitation city (seventh or twenty-third city), enter UK as the final carrier, and then record the ticketed destination as the next (the 8th or 24th) city.
                VI. Summarization of Recorded Data
                A. General. Prior to the submission of each quarterly report to the Department, each carrier is to summarize the data in accordance with the rules in Section VI.B. In special hardship cases, carriers may submit a waiver request (with justification under Section 1-2 of 14 CFR part 241) requesting permission to report their flight coupon records exactly as represented on their lifted tickets. Waiver requests must provide the documentation described in Section VI.C. so that the Department can develop the necessary procedures and edit routines to ensure the accuracy and reliability of the overall O&D Survey results. The granting of such waivers will depend upon the availability of resources for the Department to assume this additional burden, which can only be determined on a case by case basis, after evaluating each carrier's need.
                B. Rules for Summarization. Sort the recorded entries into sequence by the entire record (excluding the passenger field) i.e., by origin, complete routing (including fare-basis codes), tickets destination, and dollar value of ticket. All identical records are then to be combined into one summary record. The number of passengers on the summary record is to be the sum of the passenger amounts of all the individual records combined. Passengers are only summarized where records are identical in all respects except in the number of passengers including dollar value of ticket. Note: Do not summarize dollars over identical records. This summarization is to include the entries from group tickets, but only after the entries for group tickets with 11 or more passengers have been summarized and divided by 10, as stated in Section V.D.(2)(d).
                C. Waiver Requests. Requests for permission to depart from the required O&D Survey procedures should include a procedural statement describing the process the carrier proposed to employ in examining, selecting and editing the data from reportable flight coupons for the O&D Survey, as well as a flow chart diagramming the proposed procedures.
                D. Quantity and Quality Controls. Carriers are expected to establish and maintain continuous quantity and quality controls on the flow of all lifted flight coupons through their system processes to determine the total number of coupons handled and the number of reportable coupons selected. Such data controls and tests have not been specified by the Department, and necessarily must be developed by each carrier. Each participating carrier shall develop and use on a continuous basis such control tests as are necessary to ensure that all reportable coupons are being selected, recorded and reported as intended by these O&D Survey Instructions. Such controls should extend over all ADP processing, both in-house and that from external service bureaus.
                VII. Editing of Recorded Data
                A. City and Airport Codes. Prior to submission of O&D Survey reports, each carrier is to edit the recorded data to validate city and airport codes. This edit is to verify that the codes recorded are valid official codes, and it is independent of whether or not the carriers shown actually operated into or out of the airport shown. Any questions about airport codes should be addressed to the Director, Office of Airline Information (see inside of cover).
                B. Edit Responsibility of Carriers. Each carrier is responsible for developing edit procedures and internal controls over its data entry and processing procedures so that valid and reliable data are captured in the O&D Survey inputs and are properly summarized in the outputs. Since the carriers have many different statistical systems, it is not practicable for the Department of Transportation to prescribe specific controls in this area, and each carrier is responsible for developing the appropriate internal control procedures to edit the O&D Survey data and ensure the integrity of these data. The Department will control the accuracy of its processing of the sampled data upon receipt from the carriers.
                C. System Documentation of Edits. Carriers are required to maintain written O&D Survey procedural statements and flow charts. As provided in Section VIII, these must be established, or re-certified as of July 1, 1987, and thereafter when significant procedural revisions occur.
                VIII. Control of Sample Selection and Data Recording
                A. Sample Accuracy and Reliability. In order to maximize the accuracy and reliability of the sample selection and data recording, each carrier is to:
                (1) Develop a written statement describing the procedures it will employ in examining and selecting reportable flight coupons and in recording, summarizing, editing, and testing the Survey data.
                (2) Submit any proposed changes in the above procedures to the Department's Office of Airline Information, prior to implementation of such changes.
                (3) Establish continuous quantity controls on the flow of all lifted flight coupons through the carrier's accounting processing to determine the total number of coupons handled, and the number of reportable coupons selected. Tests are to be made continuously to assure that all reportable coupons are being selected and the data recorded. Such tests should be completed while the “lifted” flight coupons (representing earned passenger revenues for flight segments operated) remain in the possession of the carrier. Establish such other internal control procedures as are necessary for supervising and monitoring the accuracy of the recording of data from reportable flight coupons.
                B. Staff Review. The OAI staff will review the carrier procedures and practices and may request modifications or the use of special procedures necessary to improve the sample or to bolster the controls for accuracy and reliability.
                [Reserved]
                X. Glossary of Terms
                Selected terms used in the foregoing instructions are here defined and explained in the context of the O&D Survey.

                  ADP. An abbreviation for automated data processing, which is the term applied to all forms of machine processed data.

                  Carrier. Any scheduled air carrier, U.S. or foreign, that appears on a coupon stage in a ticketed itinerary, including helicopter, air taxi, commuter, intra-Alaska carriers, and intra-state carriers.

                  City or origin. (See origin.)

                  Conjunction ticket. Two or more tickets concurrently issued to a passenger and which together constitute a single contract of carriage.

                  Connecting point. An intermediate point in an itinerary at which the passenger deplanes from one flight and boards another flight, either on the same carrier or from the flight of one carrier to a flight of another carrier, for continuation of the journey.

                  Coupon stage. (See flight-coupon stage.)

                  Destination. The last point in the itinerary and the last point at which the passenger is to deplane at the completion of the journey. (In roundtrip itineraries, the destination and the origin are the same.)

                  Dollar value of ticket. (See total dollar value of ticket.)

                  Domestic. Itineraries within or between the 50 U.S. States and the District of Columbia are considered domestic for this Survey.

                  Fare basis code. The alphabetic code(s) or combination of alphabetic and numeric codes appearing in the “Fare basis” box on the flight coupon which describe the applicable service and discount to which the passenger is entitled. All fare basis codes are summarized into basic categories; namely C—Unrestricted Business Class, D—Restricted Business Class, F—Unrestricted First Class, G—Restricted First Class, X—Restricted Coach/Economy Class, Y—Unrestricted Coach/Economy Class, and U—Unknown (This fare category is used when none is shown on a ticket coupon, or when a fare category is not discernible, or when two or more carrier fare codes are compressed into a single stage of a passenger trip).

                  Fare ladder. The “For-issuing-office-only” box of a ticket.

                  Flight-coupon stage. The portion of an itinerary which lies between two contiguous points in the itinerary and between which points the passenger is to travel on a single flight.

                  Group ticket. A single ticket valid for the transportation of two or more passengers over the same itinerary.

                  Interline transfer. An occurrence at an intermediate point in an itinerary where a passenger changes from one carrier to another carrier, with or without a stopover.

                  Intermediate point. Any point in an itinerary, other than the origin or destination, at which the passenger makes an interline or intraline connection or stopover.

                  International. The world area outside the 50 U.S. States and the District of Columbia. Itineraries between points outside the 50 States are considered as international for this Survey, as well as itineraries between the 50 States and U.S. possessions, and between or within U.S. possessions.

                  Intraline transfer. An occurrence at an intermediate point in an itinerary where a passenger changes from a flight of one carrier to another flight of that same carrier, with or without stopover, or where the passenger changes from one class of service to another class of service on the same flight.

                  Itinerary. All points in the passenger journey, beginning with the origin, followed by the routing, and ending with the destination, in the sequence shown on the ticket.

                  Operating air carrier. Under a code-share arrangement, the air carrier whose aircraft and flight crew are used to perform a flight segment.

                  Origin. The first point in the itinerary and the point where the passenger first boards a carrier at the beginning of the itinerary.

                  Participating carrier. A carrier which is governed by the Survey data collection and reporting instructions contained herein and which is required to file Survey reports with the Department of Transportation.

                  Point. A city or airport (always identified by its airport code).

                  Reissued ticket. A ticket issued in exchange for all or part of the unused portion of a previously issued ticket.

                  Reportable flight coupon. A flight coupon in an itinerary in which the carrier examining the coupon is the first participating carrier to lift a flight coupon in the itinerary and from which coupon the examining carrier records the Survey data.

                  Reporting carrier. The carrier in a given itinerary which has lifted the reportable flight coupon in that itinerary and which carrier is required to record the Survey data for that itinerary for the report to the Department.

                  Routing. The carrier on each flight-coupon stage in an itinerary and the intermediate points of routing stopover or connection (interline or intraline) in the sequence of occurrence in the movement of the passenger from origin to destination. The routing also includes fare-basis summary codes on each flight-coupon stage, to the extent these are available from the ticket.

                  Scheduled service. Transport service operated on a certificated large air carrier's routes pursuant to published flight schedules, including extra sections of scheduled flights.

                  Stage. (See flight-coupon stage.)

                  Ticketed air carrier. Under a code-share arrangement, the air carrier whose two-character air carrier code is used for a flight segment, whether or not it actually operates the flight segment.

                  Total dollar value of ticket. The sum of the fare plus tax for the entire ticketed itinerary, in whole U.S. dollars with cents dropped. For a group ticket, the amount is the average per passenger. For fares stated in foreign currency, it is the equivalent in U.S. dollars.

                  Transfer. (See interline transfer and intraline transfer.)

              [Reserved]
              [Amdt. 241-55, 52 FR 6529, Mar. 5, 1987, as amended at 60 FR 66723, 66724, Dec. 26, 1995; 62 FR 43280, Aug. 13, 1997; 67 FR 58690, Sept. 18, 2002; 75 FR 41584, July 16, 2010; Doc. No. DOT-OST-2014-0140, 84 FR 15931, Apr. 16, 2019]

            General Reporting Provisions—Large Certificated Air Carriers

              Section 21
              Introduction to System of Reports
              (a) Each large certificated air carrier shall file with the BTS, monthly, quarterly, semiannually, and annually BTS Form 41 Reports of financial and operating statistics as prescribed herein unless waiver has been made by the BTS.

              (b) The system prescribed provides for the submission by each air carrier of four classes of financial and operating statistics, on individual schedules of the BTS Form 41 Report, grouped as follows:

                A. Certification.
                B. Balance Sheet Elements.
                P. Profit and Loss Elements.
                T. Traffic and Capacity Elements.

              (c) The prescribed system of reports provides that the frequency of reporting shall be monthly for some schedules, quarterly for some, semiannually for some and annually for others. It also provides in some areas for the classification of large certificated air carriers into Group I, Group II, and Group III with the form and content differentiated as between groups.
              (d) Each schedule of the prescribed BTS Form 41 Report has been assigned a specific code. The prefix alphabetical codes A, B, P and T, respectively, have been employed to denote certification, balance sheet, profit and loss, and traffic and capacity. The digits immediately following the alphabetical prefix designate the particular schedule.
              (e) [Reserved]
              (f) [Reserved]
              (g) Four separate air carrier entities shall be established for large certificated air carriers conducting scheduled service for the purpose of submitting the prescribed reports. They are as follows: (1) Domestic operations; (2) operations via the Atlantic Ocean; (3) operations via the Pacific Ocean; and (4) operations in Latin American areas. With respect to the first classification, the domestic entity shall embrace all operations within and between the 50 States of the United States, the District of Columbia, the Commonwealth of Puerto Rico and the U.S. Virgin Islands, and shall also include Canadian transborder operations. The reports to be submitted by each entity shall be comparable to those required of a distinct legal entity whether the reporting entity constitutes such an entity, a semiautonomous physically separated operating division of the carrier, or an entity established for reporting purposes only.
              (h) Two separate entities shall be established for large certificated air carriers predominantly engaged in conducting charter activities for the purpose of submitting the prescribed reports: (1) Domestic operations; and (2) international operations. The domestic entity includes all operations within and between the 50 States of the United States, the District of Columbia, the Commonwealth of Puerto Rico, and the U.S. Virgin Islands. All other operations will be in the international entity.
              (i) The entities for which separate reports shall be made by the different route and charter air carriers will be set semiannually by the Office of Airline Information.
              (j) As a general rule separate reports shall be filed for the air carrier and for each associated company air carriers as defined in section 03 which is an air carrier. However, transactions of associated companies in which 100 percent equity control resides in the reporting air carrier shall be consolidated with transactions of the reporting air carrier when such associated companies perform services related to the transport operations of the reporting air carrier almost exclusively and are not engaged in air transportation for their own account.

              (k) Generally, route air carriers' nonscheduled services shall be treated as an integral part of the reporting entity to which most closely related without regard to the geographic area in which such nonscheduled services may actually be performed. However, supplemental reports shall be made of nonscheduled services (including service for the Department of Defense) in areas not encompassed by the prescribed reporting entity in any month in which the available ton-miles of such nonscheduled services exceed 5 percent of the available ton-miles of the reporting entity. Such supplemental reports shall continue until waived by the BTS upon a showing that such nonscheduled operations will not in the subsequent 12-month period exceed the 5-percent limit. The supplemental reports to be filed each month or calendar quarter, as applicable, shall be comprised of report Schedules P-5, T-1, and T-2. Transport and nontransport revenues pertaining to such separately reported nonscheduled services shall be reported on Schedule P-2 each quarter.
              (l) When and as required in the national interest, any air carrier which performs nonscheduled transport services for the Department of Defense shall, when directed by the Department, make separate reports for such services as if they were conducted by a physically separate transport entity, such reports shall consist of Schedules P-1 through P-7, T-1, and T-2. The letter “D” shall be inserted on such reports, following the schedule number of each P and T schedule. When a carrier has more than one reporting entity, nonscheduled transport and nonscheduled Defense services shall be assigned to the reporting entity to which more closely related.
              [ER-1027, 42 FR 60128, Nov. 25, 1977, as amended by ER-1073, 43 FR 40453, Sept. 12, 1978; ER-1073, 44 FR 1970, Jan. 9, 1979; ER-1188, 45 FR 48871, July 22, 1980; ER-1297, 47 FR 32919, July 30, 1982; ER-1400, 50 FR 12, Jan. 2, 1985; ER-1401, 50 FR 247, Jan. 3, 1985; Amdt. 241-56, 52 FR 9130, Mar. 23, 1987; Amdt. 241-60, 56 FR 12658, Mar. 27, 1991; 60 FR 66724, Dec. 26, 1995; 75 FR 41584, July 16, 2010; Doc. No. DOT-OST-2014-0140, 84 FR 15931, Apr. 16, 2019]

              Section 22
              General Reporting Instructions
              (a) One copy of each schedule in the BTS Form 41 report shall be filed with the BTS and shall be received on or before the due date indicated for each such schedule in the list titled “Due Dates of Schedules in BTS Form 41 Report.”

                List of Schedules in BTS Form 41 Report
                [See footnotes at end of table]

                  Schedule No.
                  Title
                  Filing frequency
                  Applicability by carrier group
                  I
                  II
                  III

                  A
                  Certification
                  Q
                  (1)
                  X
                  X

                  B-1
                  Balance sheet
                  Q
                  (1)
                  X
                  X

                  B-1.1
                  Balance sheet
                  SA
                  (2)
                  NA
                  NA

                  B-7
                  Airframe and aircraft engine acquisitions and retirements
                  Q
                  NA
                  X
                  X

                  B-12
                  Statement of changes in financial position
                  Q
                  (1)
                  X
                  X

                  B-43
                  Inventory of airframes and aircraft engines
                  A
                  X
                  X
                  X

                  P-1.1
                  Statement of operations
                  SA
                  (2)
                  NA
                  NA

                  P-1.2
                  Statement of operations
                  Q
                  (1)
                  X
                  X

                  P-1(a)
                  Interim operations report
                  M
                  X
                  X
                  X

                  P-2
                  Notes to BTS Form 41 report
                  Q
                  (1)
                  X
                  X

                  P-5.1
                  Aircraft operating expenses
                  Q(1), SA(2)
                  X
                  NA
                  NA

                  P-5.2
                  Aircraft operating expenses
                  Q
                  NA
                  X
                  X

                  P-6
                  Operating expenses by objective groupings
                  Q
                  (1)
                  X
                  X

                  P-7
                  Operating expenses by functional groupings—Group III air carriers
                  Q
                  NA
                  NA
                  X

                  P-10
                  Employment statistics by labor category
                  A
                  (1)
                  X
                  X

                  P-12(a)
                  Fuel consumption by type of service and entity
                  M
                  (1)
                  X
                  X

                  T-100
                  U.S. air carrier traffic and capacity data by nonstop segment and on-flight market
                  M
                  X
                  X
                  X

                  T-100(f)
                  Foreign air carrier traffic data by nonstop segment and on-flight market
                  M

                  (see 14 CFR 217)

                  T-8
                  Report of all-cargo operations
                  A
                  (3)
                  (3)
                  (3)

                M = Monthly, Q = Quarterly, SA = Semiannually, A = Annually, NA = Not Applicable, X = All Carriers.
                (1) Applicable to Group I Air Carriers with annual operating revenues of $20 million or more.
                (2) Appilcable to Group I Air Carriers with annual operating revenues below $20 million.
                (3) Applicable to Air Carriers conducting 49 U.S.C. 41103 all-cargo operations.

                Due Dates of Schedules in BTS Form 41 Report

                  Due dates 1

                  Financial data on schedule No.
                  Traffic and capacity data on schedule No.

                  January 20
                  P-12(a)

                  January 30
                  P-1(a)
                  T-100, T-100(f)

                  February 10 2

                  A, B-1, B-1.1, B-7, B-12, P-1.1, P-1.2, P-2, P-5.1, P-5.2, P-6, P-7, P-10.

                  February 20
                  P-12(a)

                  March 1
                  P-1(a)
                  T-100, T-100(f),

                  March 20
                  P-12(a)

                  March 30
                  B-43, P-1(a).
                  T-100, T-100(f), T-8

                  April 20
                  P-12(a)

                  April 30
                  P-1(a)
                  T-100, T-100(f)

                  May 10
                  A, B-1, B-7, B-12, P-1.2, P-2, P-5.1, P-5.2, P-6, P-7.

                  May 20
                  P-12(a)

                  May 30
                  P-1(a)
                  T-100, T-100(f)

                  June 20
                  P-12(a)

                  June 30
                  P-1(a)
                  T-100, T-100(f)

                  July 20
                  P-12(a)

                  July 30
                  P-1(a)
                  T-100, T-100(f)

                  August 10
                  A, B-1, B-1.1, B-7, B-12, P-1.1, P-1.2, P-2, P-5.1, P-5.2, P-6, P-7.

                  August 20
                  P-12(a)

                  August 30
                  P-1(a)
                  T-100, T-100(f)

                  September 20
                  P-12(a)

                  September 30
                  P-1(a)
                  T-100, T-100(f)

                  October 20
                  P-12(a)

                  October 30
                  P-1(a)
                  T-100, T-100(f)

                  November 10
                  A, B-1, B-7, B-12, P-1.2, P-2, P-5.1, P-5.2, P-6, P-7.

                  November 20
                  P-12(a)

                  November 30
                  P-1(a)
                  T-100, T-100(f)

                  December 20
                  P-12(a)

                  December 30
                  P-1(a)
                  T-100, T-100(f)

                  1 Due dates falling on a Saturday, Sunday or national holiday will become effective the first following work day.

                  2 Reporting due dates on Form 41 Schedules B and P are extended to March 30 if preliminary schedules are filed at the Department by February 10

              (b) Each large certificated air carrier shall file the applicable schedules of the BTS Form 41 Report with the BTS in accordance with the above instructions with the following exceptions:
              (1) The time for filing B and P report schedules for the final quarter or semiannual period of each calendar year may be extended to the following March 30 if the preliminary Schedules B-1 or B-1.1 and P-1.1 or P-1.2 are submitted, as applicable, and are received on or before their respective due dates.
              (2) For the third month of any calendar quarter, Schedule P-1(a) need not be filed if Schedule P-1.1 or P-1.2 for the quarter or semiannual period, as applicable, is received on the due date prescribed for Schedule P-1(a).
              (3) Income and expense data on Schedule P-1(a) for each month will be withheld by the BTS from public disclosure, until such time as (i) the semiannual or quarterly financial reports are due, (ii) the semiannual or quarterly financial reports are filed, or (iii) information covered by monthly reports is publicly released by the carrier concerned, whichever occurs first. Before that time, income and expense data reported on Schedule P-1(a) will be disclosed to parties to any proceeding before the DOT to the extent that such data are relevant and material to the issues in the proceeding upon a determination to this effect by the administrative law judge assigned to the case or by the DOT. Any data to which access is granted may be introduced into evidence, subject to the normal rules of admissibility of evidence. The DOT will make other disclosure of these data upon its own motion or upon application of any interested person, when the DOT finds the public interest so requires. The BTS may, from time to time, publish summary information compiled from Schedule P-1(a) in a form which will not identify the individual carrier. At the request of an air carrier, and upon a showing by such air carriers that public disclosure of its preliminary year-end report would adversely affect its interests and would not be in the public interest, the BTS will withhold such preliminary year-end report from public disclosure until such time as (i) the final report is filed, (ii) the final report is due, or (iii) information covered by the preliminary report is publicly released by the carrier concerned, whichever occurs first.

              (c) If circumstances prevent the filing of a report on or before the prescribed due date, consideration will be given to the granting of an extension upon receipt of a written request therefor. To provide ample time for consideration and communication to the air carrier of the action taken, such a request must be delivered to the BTS in writing at least three (3) days in advance of the due date, setting forth good and sufficient reason to justify the granting of the extension and the date when the report can be filed. Except in cases of emergency, no such request will be entertained which is not in writing and received by the BTS at least three (3) days before the prescribed due date. If a request is denied, the air carrier remains subject to the filing requirements to the same extent as if no request for extension of time had been made.
              (d) [Reserved]
              (e) All financial data reported on B, P and G schedules shall reflect the status of the air carrier's books of account for the period for which the report is being made and shall conform to the instructions contained in this Uniform System of Accounts and Reports. At the option of the air carrier, Group III air carriers may round reported financial data to the nearest thousands of dollars by typing “($000)” at the top of each amount column. All Group I and Group II air carriers may, at their option, round reported financial data to the nearest whole dollars by dropping the cents. All rounded amounts must be balanced within and between schedules. This option applies only to the submission of hardcopy reports. Instructions for the submission of data in ADP format are contained in the Accounting and Reporting Directives, which are available from OAI.
              (f) Traffic and other operational statistics included in schedules of the BTS Form 41 reports shall reflect data pertaining to the month, quarter or 12-months-to-date period for which the report is being made.
              (g) Adjustments correcting errors in previously reported traffic and other operational statistics shall not be included in data reported in schedules for the current period but shall be effected by submission of corrected schedules for the period to which applicable or, if only a few items are involved, by written notice and authorization to the BTS to correct previously filed reports except that any correction which amounts to less than one-half of one percent (0.5%) of the corrected amount for the month to which related may be included in the report for the current month provided the amount of the correction is clearly noted on the Form 41 Report.
              (h) All letters and statements of correction or revision of reported data shall be a part of the BTS Form 41 reports.
              (i) All changes in accounting methods having a material impact upon the particular financial elements involved, and all changes in methods of computing and reporting traffic and capacity statistics having a material impact upon the particular statistic involved shall be adequately explained and identified in the report first reflecting such changes. Such explanations related to financial position or financial results shall be made on BTS Form 41 Schedule P-2. Changes in methods for computing or reporting traffic and capacity statistics shall be identified and explained on a separate sheet attached to the first report affected. (See sec. 2-16.) The reporting requirements shall not be construed, in any sense, as relieving the air carrier of the responsibility for conforming its procedures to those otherwise prescribed in this system of accounts and reports.
              (j) All financial statements released by carriers to the public reflecting a financial position or operating results for dates or reporting periods not covered by reports on file with the BTS shall be filed with the Board simultaneously with their public release.
              (Approved by the Office of Management and Budget under control number 2138-0013)
              [ER-755, 37 FR 19726, Sept. 21, 1972]

                Editorial Note:
                For Federal Register citations affecting part 241, section 22, see the List of CFR Sections Affected, which appears in the Finding Aids section of the printed volume and at www.govinfo.gov.

            Financial Reporting Requirements

              Section 23
              Certification and Balance Sheet Elements

                Schedule A—Certification

                (a) The certification of the BTS Form 41 Report shall be signed by an elective corporate officer, executive, or director. Other persons may be authorized by the carrier to sign the certification provided a written authorization disclosing the individual's name and title is forwarded to the Department of Transportation. Since corrections or revisions of reported data are a part of the BTS Form 41 Report, all correspondence relating to such matters shall be signed only by the person(s) authorized to sign the certification.
                (b) The certification of the Form 41 reports, embodied in Schedule A thereof, shall read as follows:
                I, the undersigned (Title of officer in charge of accounts) ____ of the (Full name of the reporting company) ___ do certify that this report and all schedules, ADP-media submissions, Passenger Origin-Destination Survey submissions and supporting documents which are submitted herewith or have been submitted heretofore as parts of this report filed for the above indicated period have been prepared under my direction; that I have carefully examined them and declare that they correctly reflect the accounts and records of the company, and to the best of my knowledge and belief are a complete and accurate statement, after adjustments to reflect full accruals, of the operating revenues and expenses, income items, assets, liabilities, capital, retained earnings, and operating statistics for the periods reported in the several schedules, the Schedule T-100 ADP-media submissions, and the Passenger Origin-Destination Survey; that the various items herein reported were determined in accordance with the Uniform System of Accounts and Reports for Large Certificated Air Carriers prescribed by the Department of Transportation; and that the data contained herein are reported on a basis consistent with that of the preceding report except as specifically noted in the financial and statistical statements.
                Schedule B-1 Balance Sheet
                (a) This schedule shall be filed by all Group II and Group III air carriers and Group I air carriers that have annual operating revenues of $20 million or more.
                (b) This schedule shall reflect the balances at the close of business on the last day of each calendar quarter for the overall or system operations of each air carrier in conformance with the provisions of sections 4, 5 and 6.
                (c) Individual proprietors or partners shall report the aggregate capital contributed by the proprietor or partners in account 2890 Additional Capital Invested.
                Schedule B-1.1—Balance Sheet
                (a) This schedule shall be filed semiannually by Group I air carriers with annual operating revenues below $20 million.
                (b) Each carrier shall insert in the space provided for “OAG Code” its carrier code as contained in the Official Airlines Guide (OAG). If the OAG does not contain a carrier code for the reporting carrier, a code will be provided by the Office of Airline Information upon request. This code will then be inserted in the space provided for “carrier code.”
                (c) This schedule shall show the account balances at the close of business on June 30 or December 31, as applicable, of each semiannual reporting period.
                (d) “Current Assets” shall include all resources that may reasonably be expected to be realized in cash or sold or consumed within one year. This group of assets is classified into three basic accounts:
                (1) “Cash and Equivalents” shall include cash on hand and on deposit, U.S. Government securities, and other temporary cash investments.
                (2) “Notes and Accounts Receivable-Net” shall include general traffic accounts receivable, government receivables, notes and receivables from associated companies, officers, employees and others, and a deduction for a reasonable allowance for bad debts.
                (3) “Other Current Assets” shall contain all other current assets not provided for in the above classifications. This account shall include, but is not limited to, short-term prepayments, expendable spare parts, supplies and other inventories of flight equipment replacement parts that are usually replaced rather than repaired, and materials and supplies held in stock, such as fuel and oil, expendable tools, office supplies and food service supplies. Spare parts may be reduced by an allowance for obsolescence to provide for losses in value.
                (e) “Property and Equipment” shall be segregated into that which is owned and that which is leased under capital leases. All property and equipment, with the deception of land, shall be reported net of accumulated depreciation or amortization.
                (f) “Other Assets” shall included all assets not included in the above categories, such as long-term investments, long-term prepayments, long-term receivables, deferred charges, intangible assets, equipment purchase deposits, and construction work in progress.
                (g) “Current Liabilities” shall include all obligations, the liquidation of which is reasonably expected to require the use of existing resources within one year. This group of liabilities is classified into three basic accounts:
                (1) “Notes and Accounts Payable” shall include any payments on long-term debt, short-term notes and accounts payable, and accrued expenses that are payable within one year.

                (2) “Accrued Taxes” shall include tax liabilities, such as those imposed on income, property and payroll, which are reasonably expected to be liquidated within one year.
                (3) “Other Current Liabilities” shall include all current liabilities which are not provided for elsewhere, such as air traffic liabilities for unused transportation sold (includes sales of transportation on both the reporting carrier and other carriers).
                (h) “Long-Term Debt” shall include all obligations which are not reasonably expected to be liquidated within one year. Typical examples include bonds payable, long-term notes payable, lease obligations, and pension obligations.
                (i) “Other Liabilities” shall include any debts or obligations which are not properly listed in the “Current Liabilities” or “Long-Term Debt” sections.
                (j) “Deferred Credits” shall include all credit balances of a general clearing nature, including credits held in suspense pending receipt of further information necessary for final disposition. Included in this account are deferred income taxes and deferred investment tax credits.
                (k) “Stockholder's Equity” shall be reported as follows:
                (1) “Capital Stock” shall be segregated as between common and preferred. The number of shares outstanding, along with the par or stated value of the stock, shall be reported. In the case of no-par stock without stated value, the full consideration received shall be reported.
                (2) “Other Paid-In Capital” shall include the difference between the price at which the capital stock is sold and the par or stated value of the stock.
                (3) “Retained Earnings” shall represent the net income or loss from all operations of the corporate entity less dividends.
                (4) “Treasury Stock” shall represent the cost of stock issued by the carrier and reacquired by it but not retired or cancelled.
                (l) The statement of certification shall be signed by the carrier's chief accounting officer.
                (m) All substantive matters that may materially influence interpretations or conclusions in regard to the financial condition or the earnings position of the air carrier which are not clearly identified in the body of the schedule or which represent information that cannot be expressed adequately in monetary terms shall be completely and clearly stated in a note attached to this schedule and cross-referenced to the affected account or accounts.
                Schedule B-7 Airframe and Aircraft Engine Acquisitions and Retirements
                (a) This schedule shall be filed by all Group II and Group III air carriers.
                (b) Data applicable to acquisitions and data applicable to retirements shall be grouped and reported separately. The data reported within each group (acquisitions; retirements) shall be further subgrouped and reported as follows:
                (1) Acquisitions: the indicated data shall be reported for each individual airframe, identified by type, model, and design of cabin as to use for passengers exclusively, cargo exclusively, or both passengers and cargo in combination. Data pertaining to aircraft engines shall be reported in aggregate for each type or model; however, leased aircraft engines shall be separately reported under captions entitled: Capital Leases—Aircraft Engines; and Operating Leases—Aircraft Engines. Airframe units leased from others for a period of more than 90 days shall be reported in a separate subsection of this schedule, captioned as follows: Capital Leases—Airframe Units; and Operating Leases—Airframe Units. In addition, a notation shall be made by license number of airframe units of the air carrier returned after lease to others for a period of more than 90 days. Airframe units obtained through interchange lease arrangements shall not be so reported.

                (2) Retirements: The indicated data shall be reported for the sale or retirement of each airframe, each type of aircraft engine (stating the number of units retired) and, to the extent retired along with airframes and engines, in aggregates by accounts, operating property and equipment included in accounts 1607 and 1608 and nonoperating property and equipment included in accounts 1707 and 1708. Disposition of properties in accounts 1608 and 1708 not related to airframe and aircraft engine retirements shall be reported in a separate group for each account. Airframe units leased from others for a period of more than 90 days shall be reported, upon return to the lessor, in a separate subsection of this schedule and captioned as follows: Capital Leases—Airframe Units; and Operating Leases—Airframe Units. In addition, a notation shall be made by license number and name of lessee of airframe units leased to others for a period of more than 90 days; moreover, airframe units leased to others under sales-type or direct financing leases shall be separately captioned and reported on this schedule. Airframe units leased under interchange arrangements shall not be so reported. Aircraft engines leased from others for a period of more than 90 days shall be reported, upon return to the lessor, in a separate subsection of this schedule and captioned as follows: Capital Leases—Aircraft Engines; and Operating Leases—Aircraft Engines. In addition, a notation shall be made by model number, number of units, and name of lessee of aircraft engines leased to others for a period of more than 90 days; moreover, aircraft engines leased to others under sales-type or direct financing leases shall be separately captioned and reported on this schedule. Aircraft engines leased under interchange arrangements shall not be so reported.

                (c) All dates shall indicate the day, the month and the year; shall be provided on a unit basis for airframes only, and, shall be reported for each aircraft engine group by date of transaction.
                (d) Column 1, “Year of First Delivery—Airframe,” shall reflect, for each reported airframe, the year that the airframe was first delivered by its manufacturer.
                (e) Column 2, “Airframe Manufacturer's Serial Number,” shall reflect the serial number assigned to each reported airframe by its manufacturer.
                (f) Column 4, “Acquisitions or Retirements,” shall be used to indicate, for each item entered, whether it represents an acquisition or retirement. This shall be indicated by inserting in Column 4 an “A” for acquisition or an “R” for retirement.
                (g) Column 8, “Maximum Seating Capacity,” shall reflect the number of passenger seats installed in each airframe acquired. When airframes are designed for multiple adjustable seating configurations, the maximum number of seats for which designed shall be reported. When the seating configuration of airframes is modified subsequent to original acquisition, the revised passenger capacity of each airfame shall be reported in the quarter in which modified and referenced to identify original capacity reported.
                (h) Column 9, “Cost,” shall reflect the book cost of reported airframe and aircraft engine acquisitions and retirements.
                (i) Column 10, “Amortization/Depreciated Cost,” shall reflect the book cost, less amortization or depreciation expense, for airframes and aircraft engines that have been retired.
                (j) Column 11, “Realization,” shall reflect the proceeds from the disposition of airframes and aircraft engines, including any insurance proceeds.
                (k) Column 12, “Acquired From/Disposition,” shall reflect: (1) for acquisitions: the name of the person or organization from which airframes and aircraft engines are acquired and (2) for dispositions (retirements): the name of the person or organization to which airframes and aircraft engines are sold or a notation as to the nature of the retirement and the account to which any depreciated cost has been charged, if not sold. Items included in accounts 1607, 1608, 1707, and 1708, sold as a part of an airframe or aircraft sales transaction, shall also be identified by the name of the buyer. Other sales of items included in these accounts shall be reported in a separate group in aggregate for each property account affected.
                Schedule B-12—Statement of Cash Flows
                (a) This Schedule shall be filed quarterly by all Group II and Group III air carriers and Group I air carriers that have annual operating revenues of $20 million or more.
                (b) This schedule shall be filed for the overall or system operations of the air carrier.
                (c) The statement of cash flows shall separately disclose the amount of net cash provided or used during the reporting period from the carrier's operating activities, investing activities and financing activities. The effect on cash and cash equivalents of the total amount of net cash provided or used during the quarter from each of the above activities shall be clearly disclosed so as to reconcile beginning and ending cash and cash equivalents.
                (d) Carriers may use either the direct or indirect method of reporting cash flows. Under either method, the reporting of cash flows from investing and financing activities will remain the same. However, the reporting of cash flows from operating activities does differ between the two methods.
                (e) For carriers electing to use the direct method, cash flows from operating activities are reported as gross amounts of the principal components of cash receipts and cash payments from operating activities, such as cash received from passengers and shippers, cash paid to suppliers, and cash paid to employees. Each carrier using the direct method shall provide as part of its statement of cash flows, a separate schedule that reconciles net income (as reported on Schedule P-1.2 in Account 9899) to cash flow from operating activities.
                (f) For carriers electing to use the indirect method, cash flows from operating activities shall reflect net income (as reported on Schedule P-1.2 in Account 9899) along with the adjustments necessary to reconcile net income (Account 9899) to net cash for the period (Net Cash Provided or Used By Operating Activities).
                (g) Regardless of the method used, the statement of cash flows shall reflect the amount of net cash flow provided or used by operating activities during the reporting period.
                (h) The balance of “Cash and Cash Equivalents,” at the beginning and ending of the quarterly period covered by the report, should equal the sum of Accounts 1010, “Cash,” and 1100, “Short-term Investments,” as reported on the immediately preceding and current quarterly Schedule B-1, “Balance Sheet.” If the sum of these two accounts does not equal the total “Cash and Cash Equivalents” reported on the statement of cash flows, then a footnote explaining the difference shall be provided as part of the statement of cash flows.

                (i) Carriers shall submit Schedule B-12 in a format specified in accounting and reporting directives issued by the Bureau of Transportation Statistics' Director of Airline Information.

                Schedule B-43—Inventory of Airframes and Aircraft Engines
                (a) This schedule shall be filed by all Group I, Group II and Group III air carriers.
                (b) The indicated data shall be reported for each individual airframe, identified by type, model and design of cabin (main deck) as to use for passengers exclusively, cargo exclusively, or both passengers and cargo in combination. Type and model refers to aircraft models such as B-707-100, B-707-200, DC-10-40, Beech-18, Piper PA-32, etc. Aircraft type designations are prescribed in Accounting and Reporting Directive No. 178, “List of Aircraft Type Numeric Codes.” Copies of this directive and subsequent updates to the list of aircraft type codes are available from the Department's Office of Airline Information. Airframes that are authorized for operation over water under FAA regulation FAR 121 shall be so indicated by asterisk.
                (c) Data pertaining to aircraft engines shall be reported on a group basis by type of engine and by type of aircraft to which related.
                (d) Data in this schedule shall be grouped and subtotaled as data pertaining to airframes and data pertaining to aircraft engines. Data pertaining to nonoperating airframes and aircraft engines shall be reported in a group below the data for operating equipment. Data pertaining to airframes and aircraft engines obtained under operating and capital leases shall be reported, by type of lease, in a separately captioned grouping below nonoperating airframes and aircraft engines and subgrouped within those groups according to operating and nonoperating equipment.
                (e) Column 1, “Year of First Delivery—Airframe,” shall reflect, for each reported airframe, the year that the airframe was first delivered by its manufacturer.
                (f) Column 2, “Airframe Manufacturer's Serial Number,” shall reflect the serial number assigned to each reported airframe by its manufacturer.
                (g) Data pertaining to airframes and aircraft engines obtained under operating leases shall be listed in Columns 1 through 9; the cost of improvements to equipment under operating leases shall be reported in Columns 10 through 12.
                (h) Column 9, “Available Capacity (Weight),” shall reflect, for each reported aircraft type, the available capacity (stated in pounds) that is used in computing the available ton-miles reported on Schedules T-100, T-1, and T-2.
                (i) Column 10, “Acquired Cost or Capitalized Value,” shall include (1) the acquisition cost of owned airframes and aircraft engines; (2) the total capitalized cost of obtaining airframes and engines under capital leases; and (3) the cost of improvements to airframes and engines obtained under operating leases.
                (j) Column 11, “Allowance for Depreciation or Amortization,” shall include (1) the accumulations of all provisions for losses due to use and obsolescence that are applicable to owned airframes and aircraft engines, (2) the amount of amortization recorded for amortizing the value of airframes and engines obtained under capital leases, and (3) the amount of amortization recorded for amortizing the value of improvements to airframes and aircraft engines obtained under operating leases.
                (k) Column 12, “Depreciated Cost or Amortized Value,” shall be calculated as either (1) Acquired Cost (Column 10) less the Allowance for Depreciation (Column 11) or (2) Capitalized Value (Column 10) less Amortization (Column 11).
                (l) Column 13, “Estimated Residual Value,” shall state, in dollars, the residual value assigned to owned and capital-leased airframes and aircraft engines, including any overhaul value not subject to depreciation.
                (m) Column 14, “Estimated Depreciable or Amortizable Life (Months),” shall state the estimated depreciable or amortizable life from the date of acquisition of each airframe and each group of aircraft engines.

              [ER-755, 37 FR 19726, Sept. 21, 1972]

                Editorial Note:
                For Federal Register citations affecting part 241, section 23, see the List of CFR Sections Affected, which appears in the Finding Aids section of the printed volume and at www.govinfo.gov.

              Section 24
              Profit and Loss Elements

                Schedule P-1.1—Statement of Operations
                (a) This schedule shall be filed semiannually by Group I air carriers with annual operating revenues below $20 million. Data reported on this schedule shall be for the overall or system operations of the air carrier.
                (b) This schedule shall show the results of operations for six-month periods ending June 30 and December 31. Data reported in the “12 Months-to-Date” column shall represent for each individual item the sum of the amount reported in the “Current Period” column and the next previous six-month period.
                (c) Each carrier shall insert in the space provided for “OAG Code” its carrier code as contained in the Official Airlines Guide (OAG). If the OAG does not contain a carrier code for the reporting carrier, a code will be provided by the Office of Airline Information upon request. This code will then be placed in the space provided for “carrier code.”
                (d) “Operating Revenue” shall be put in categories as follows:
                (1) “Transport Revenue” shall include the revenue generated by the performance of air transportation services. This category shall be subdivided as follows:

                (i) “Scheduled Service” shall include all transport revenue derived from operations between pairs of points which are served on a regularly scheduled basis. Transport revenue received from scheduled service operations shall be subdivided as follows:
                (A) Passengers. Revenue generated from the transportation of passengers shall be included in this category.
                (B) Other. Revenue generated by the transportation of property and mail shall be included in this category.
                (ii) “Nonscheduled Service” shall include all transport revenue derived from operations between pairs of points which are not served on a regularly scheduled basis.
                (2) “Transport-Related Revenue” shall include monies received for providing air transportation facilities associated with the performance of services which flow from and are incidental to air transportation services performed by the air carrier. This category shall be subdivided as follows:
                (i) Public Service Revenue. This category shall include amounts of compensation paid to the carrier under 49 U.S.C 41733.
                (ii) Other. This category shall include other transport-related revenue such as in-flight sales, restaurant and food service (ground), rental of property or equipment, limousine service, interchange sales, and cargo pick-up and delivery charges.
                (e) “Operating Expense” shall be segregated as follows:
                (1) “Flying Operations” shall include expenses incurred directly in the in-flight operation of aircraft and expenses incurred in the holding of aircraft and aircraft operation personnel in readiness for assignment to an in-flight status.
                (2) “Maintenance” shall include all expenses which are specifically identifiable with the repair and upkeep of property and equipment used in the performance of air transportation.
                (3) “General and Administrative” shall include that portion of all expenses of a general corporate nature and all other expenses not provided for elsewhere which are related to air transport operations either directly or indirectly.
                (4) “Depreciation and Amortization” shall include all depreciation and amortization expenses applicable to property and equipment used in providing air transportation services. These expenses shall be segregated between those applicable to owned property and equipment and those applicable to property and equipment which is leased.
                (5) “Transport-Related Expense” shall include all expenses associated with the transport-related revenues reported on line 5 of this schedule.
                (f) “Operating Profit (Loss)” shall be computed by subtracting the total operating expenses from the total operating revenues.
                (g) “Nonoperating Income and Expense” shall include all revenues and expenses resulting from commercial ventures which are not inherently related to the performance of air transport services. For example, the revenues and expenses related to operating a hotel or motel would be reported under this category. This category shall also include the total interest expense incurred from all sources and shall be subdivided as follows:
                (1) Interest Expense.
                (2) Other Nonoperating (Net).
                (h) “Income Tax” shall reflect the provisions for accruals of Federal, State, local, and foreign taxes based upon taxable income, and computed at the normal and surtax rates in effect during the current accounting year.
                (i) “Discontinued Operations, Extraordinary Items or Accounting Changes” shall reflect any earnings or losses from discontinued operations, the net of the tax amount of extraordinary items, and the cumulative effect of any changes in accounting principles.
                (j) Any air carrier that does not file Schedule P-1(a) in accordance with the filing option described in section 22—General Reporting Instructions shall, for the sixth month of any semi-annual period during which the option is exercised, type in the bottom margin of this statement of operations the total number of full-time and part-time employees to be labeled as such and calculated in accordance with paragraph (d) of the reporting instructions for Schedule P-1(a).
                Schedule P-1.2—Statement of Operations
                (a) This schedule shall be filed quarterly by all Group II and Group III air carriers and Group I air carriers that have annual operating revenues of $20 million or more.
                (b) Route and charter carriers shall file separate statements of operations for each separate operating entity and for the overall, or system operations.
                (c) Data reported on this schedule shall conform with the instructions pertaining to profit and loss classifications within this Uniform System of Accounts and Reports.
                (d) Data reported in the “12 Months-to-Date” column shall represent for each item the sum of amounts reported in the “Quarter” column for the current and next previous three quarters.
                (e) Group III air carriers shall subdivide total Transport Revenues-Passenger (Account 3901) between Accounts 3901.1, Passenger-Flight Class and Account 3901.2 Passenger-Coach, only for operations that are reported in the international entity (Atlantic, Pacific and Latin American). First class and coach passenger revenues associated with transport operations reported in the domestic entity shall be reported as a combined total in Account 3901 Transport Revenues-Passenger.

                (f) All Group I and Group II air carriers shall report first class and coach passenger revenues as a combined total in Account 3901 Transport Revenues-Passenger, for both domestic and international entity operations. However, U.S. air carriers in any carrier group that elect to do so may continue to report first class and coach revenue data, if they consider such voluntary reporting to be less burdensome than changing their existing financial reporting system.
                (g) Any air carrier that does not file Schedule P-1(a) in accordance with the filing option described in section 22—General Reporting Instructions shall, for the third month of any calendar quarter during which the option is exercised, type in the bottom margin of the system statement of operations the total number of full-time and part-time employees to be labeled as such and calculated in accordance with paragraph (d) of the reporting instructions for Schedule P-1(a).
                Schedule P-1(a)—Interim Income Statement
                (a) This schedule shall be filed by all air carriers.
                (b) This schedule shall be filed for the overall or system operations of the air carrier.
                (c) Data reported on this schedule shall reflect the results of operations for the month covered by the report and shall conform to the instructions pertaining to profit and loss classifications within this Uniform System of Accounts and Reports.
                (d) Air carriers shall report on this schedule:
                (1) Total operating revenues,
                (2) Total operating expenses,
                (3) Operating profit or loss,
                (4) Net income,
                (5) Passenger revenues—scheduled service,
                (6) Public service revenues (subsidy) and other information on
                (7) The total number of full-time and
                (8) Part-time employees. Total number of full-time employees and total number of part-time employees shall reflect for the overall or system operations of the air carrier the total number of full-time and part-time employees, respectively, who worked or received pay for any part of the pay period(s) ending nearest the 15th day of the month. For the purposes of this part, “part-time employees” means those employees hired to work less than the number of hours that is customary or standard for their occupational specialty.

                (e) In the event of a labor strike, the “number of employees” to be reported on this schedule shall be determined on and actual payroll basis. Actual payroll shall be determined in accordance with paragraph (d) of these reporting instructions. An air carrier that on October 24, 1978, held a certificate issued under 49 U.S.C. 41102 shall also report in a footnote on this schedule the number of full-time employees who were deprived of employment because of a strike (i.e., the number of full-time employees who, but for a strike, would have been included in the number reported in accordance with paragraph (d)(7)).
                Schedule P-2—Notes to BTS Form 41 Report
                (a) This schedule shall be filed quarterly by all Group II and Group III air carriers and Group I air carriers with annual revenues of $20 million or more. Carriers shall submit Schedule P-2 in a format specified in accounting and reporting directives issued by the Bureau of Transportation Statistics' Director of Airline Information.
                (b) Route and charter air carriers shall file this schedule for each separate operating entity and for the overall, or system operations of the carrier.
                (c) All substantive matters which may influence materially interpretations or conclusions in regard to the financial condition or the earnings position of the air carrier which are not clearly identified in the body of the Form 41 report or which represent information that cannot be expressed adequately in monetary terms shall be completely and clearly stated in this schedule and cross-referenced to the affected account or accounts. The informative disclosure on this schedule for the system operations of the air carrier shall conform, at the end of each carrier's fiscal or calendar year, with the footnotes prepared for audited financial statements.
                (d) The amounts and estimated delivery dates of any purchase commitments of material size and not of a recurrent routine character shall be explained on this schedule. In the case of commitments involving flight equipment, the amount for each equipment type may be given in total, including any engines, airframes and spares; but the number of airframes and the number of engines by type shall be given, as well as the estimated delivery date for each complete aircraft. Reports on commitments other than for flight equipment are required only in the December 31 report of each calendar year.
                (e) Each scheduled air carrier shall include on this schedule a description of each interruption in air transport operations, the aggregate effect of which is ten (10) percent or more of the scheduled revenue plane-miles which, except for the interruption, would have been operated during the month or either of 2 consecutive months affected. The information to be reported for each such interruption in operations shall consist of:
                (1) For the report period in which partial or complete interruption first occurs, the nature of the interruption and dates of partial and/or complete cessation of operations, as applicable;

                (2) For each report period until full resumption of operations, an estimate of the revenue plane-miles canceled in each month of the quarter because of the interruption; and

                (3) For the report period in which scheduled operations are resumed, dates of partial and/or complete resumption, as applicable.
                Schedule P-5.1—Aircraft Operating Expenses
                (a) This schedule shall be filed by all Group I air carriers. Group I air carriers that have annual operating revenues of $20 million or more shall file this schedule quarterly and only report direct operating expense data (lines 1 thru 9). Group I air carriers with annual operating revenues below $20 million shall file this schedule semiannually and report both direct and indirect operating expense data (lines 1 thru 16).
                (b) Subject to the provisions of Section 22(a), quarterly reports are due on May 10, August 10, November 10 and February 10 for the first, second, third and fourth calendar quarters, respectively. Semiannual reports are due on August 10 and February 10.
                (c) Each carrier shall indicate in the space provided its full corporate name and an “X” shall be inserted in the appropriate box to indicate whether the data being reported are quarterly or six months data. The period-ending data shall be indicated in the space provided.
                (d) Route and charter air carriers subject to the quarterly filing requirement shall file this schedule for each operating entity of the air carrier. Air carriers subject to the semiannual filing requirement shall file this schedule for the overall or system operations of the air carrier.
                (e) This schedule shall show the direct and indirect expenses incurred in aircraft operations plus total aircraft hours, gallons of fuel issued, and aircraft days assigned to service. Direct expense data applicable to each aircraft type operated by the carrier shall be reported in separate colums of this schedule. Each aircraft type reported shall be identified at the head of each column in the space provided. “Aircraft Type” refers to aircraft models such as B-707-100, B-707-200, DC-10-40, Beech-18, Piper PA-32, etc, Aircraft Type designations are prescribed in the Accounting and Reporting Directives, which is available from the Office of Airline Information, RTS-42. In the space provided for “Aircraft Code” carriers shall insert the four digit code which is prescribed in the Accounting and Reporting Directives for the reported aircraft type.
                (f) Direct aircraft operating expenses shall be reported in the following categories:
                (1) Line 2 “Flying Operations (Less Rental)” shall be subdivided as follows:
                (i) Line 3 “Pilot and Copilot” expense shall include pilots' and copilots' salaries, and related employee benefits, pensions, payroll taxes and personnel expenses.
                (ii) Line 4 “Aircraft Fuel and Oil” expense shall include the cost of fuel and oil used in flight operations and nonrefundable aircraft fuel and oil taxes.
                (iii) Line 5 “Other” expenses shall include general (hull) insurance, and all other expenses incurred in the in-flight operation of aircraft and holding of aircraft and aircraft operational personnel in readiness for assignment to an in-flight status that are not provided for otherwise on this schedule.
                (2) Line 6 “Total Flying Operations (Less Rentals)” shall equal the sum of lines 3, 4 and 5.
                (3) Line 7 “Maintenance-Flight Equipment” shall include the cost of labor, material and related overhead expended by the carrier to maintain flight equipment, general services purchased for flight equipment maintenance from associated or other outside companies, and provisions for flight equipment overhauls.
                (4) Line 8 “Depreciation and Rental-Flight Equipment” expense shall include depreciation of flight equipment, amortization of capitalized leases for flight equipment, provision for obsolescence and deterioration of spare parts, and rental expense of flight equipment.
                (5) Line 9 “Total Direct Expense” shall equal the sum of lines 6, 7 and 8.
                (g) Line 10 Indirect aircraft operating expenses shall be reported only in total for all aircraft types and shall be segregated according to the following categories:
                (1) Line 11 “Flight Attendant Expense” shall include flight attendants' salaries, and related employee benefits, pensions, payroll taxes and personnel expenses.
                (2) Line 12 “Traffic Related Expense” shall include traffic solicitor salaries, traffic commissions, passenger food expense, traffic liability insurance, advertising and other promotion and publicity expenses, and the fringe benefit expenses related to all salaries in this classification.
                (3) Line 13 “Departure Related (Station) Expense” shall include aircraft and traffic handling salaries, landing fees, clearance, customs and duties, related fringe benefit expenses and maintenance and depreciation on ground property and equipment.
                (4) Line 14 “Capacity Related Expense” shall include salaries and fringe benefits for general management personnel, recordkeeping and statistical personnel, lawyers, and law clerks, and purchasing personnel; legal fees and expenses; stationery; printing; uncollectible accounts; insurance purchased-general; memberships; corporate and fiscal expenses; and all other expenses which cannot be identified or allocated to some other specifically identified indirect cost category.
                (h) Line 15 “Total Indirect Expense” shall equal the sum of lines 11, 12, 13 and 14.
                (i) Line 16 “Total Operating Expense” shall equal the sum of lines 9 and 15.

                (j) Line 17 “Total Aircraft Hours” shall equal the sum of revenue and nonrevenue aircraft hours.

                (k) Line 18 “Gallons of Fuel Issued” shall equal the aircraft fuels issued (account Z921).
                (l) Line 19 “Aircraft Days Assigned to Service” equals the number of days that aircraft owned or acquired through rental or lease are in the possession of the reporting air carrier and are available for service on the reporting carrier's routes plus the number of days such aircraft are in service on routes of others under wet-lease agreements. Includes days in overhaul, or temporarily out of service due to schedule cancellations. Excludes days that newly acquired aircraft are on hand but not available for productive use, days dry-leased or rented to others, and days in possession but formally withdrawn from air transportation service.
                Schedule P-5.2—Aircraft Operating Expenses and Related Statistics
                (a) This schedule shall be filed by all Group II and Group III air carriers.
                (b) Route and charter air carriers shall file this schedule for each operating entity of the air carrier.

                (c) Data applicable to each aircraft type operated by the air carrier shall be reported in separate columns of this schedule. “Aircraft Type” refers to aircraft models (such as B-707-100, B-707-300, DC-9-30, etc.) that are prescribed in the Accounting and Reporting Directives, which is available from the Office of Airline Information. In the space provided for “Aircraft Code” carriers shall insert the four digit code which is prescribed in the Accounting and Reporting Directives for the reported aircraft type. For route air carriers, expenses of operating aircraft provided by other carriers under interchange agreements shall be separately reported in total for all such aircraft as if for a distinct aircraft type. Interchange expenses applicable to aircraft of the same type as those owned or operated by the air carrier shall be distributed in summary memo form as item 98.1 and 98.2 to each aircraft type owned or operated by that air carrier. Aircraft types not generally used in revenue service shall be separately reported. If more than one type of aircraft is involved, a separation of data relating to each type of aircraft shall not be required.
                (d) Each aircraft type for which a report is being made shall be identified at the head of each column in the space provided. Data applicable to aircraft designed primarily for cargo services and only incidentally used for passenger services shall be reported in separate columns, and the word “cargo” shall be inserted after the aircraft type at the head of the column. The prescribed reporting by aircraft types may be reviewed from time to time upon request by individual air carriers, or upon the initiative of the BTS, and groupings of aircraft types for reporting purposes may be prescribed or amended in specific instances.
                (e) Italicized codes and item titles do not constitute accounts or account numbers prescribed for air carrier accounting, but shall be used for reporting purposes only.
                (f) Item 79.6 “Applied Maintenance Burden” shall reflect a memorandum allocation by each air carrier of the total expenses included in subfunction 5300 “Maintenance Burden” between maintenance of flight equipment, by aircraft type, and maintenance of ground property and equipment. The allocation of subfunction 5300 (maintenance burden) shall include the net effect of charges and credits to profit and loss account 5272 Flight Equiment Airworthiness Provisions.
                (g) Item 73 “Obsolescence and Deterioration—Expendable Parts” shall reflect (for obsolescence and deterioration of flight equipment expandable parts) the gross provisions for losses in value of expendable parts during the current accounting period offset by any credits applicable to the current period for adjustments for excess inventory levels determined pursuant to section 6-1311.
                (h) The total of function 5100 “Flying Operations” reported on this schedule shall agree with corresponding amounts reported on Schedule P-1.2.
                Schedule P-6—Operating Expenses by Objective Groupings
                (a) This schedule shall be filed quarterly by all Group II and Group III air carriers and Group I air carriers that have annual operating revenues of $20 million or more.
                (b) Route and charter air carriers shall file this schedule for each separate operating entity.
                (c) Line 36 “Total Operating Expenses” shall agree with the corresponding amount reported on Schedule P-1.
                Schedule P-7—Operating Expenses by Functional Groupings—Group III Air Carriers
                (a) This schedule shall be filed by all Group III air carriers.
                (b) Route and charter air carriers shall file this schedule for each operating entity of the air carrier.
                (c) Line 38 “Total Operating Expenses” shall agree with the corresponding amount reported on Schedule P-1.2.
                Schedule P-10—Employment Statistics by Labor Category
                (a) This schedule shall be filed annually by all Group II and Group III air carriers and Group I air carriers that have annual operating revenues of $20 million or more.

                (b) Separate sets of this schedule shall be filed for each operating entity of the air carrier. Employees will be allocated to the reporting entities on a basis consistent with that used in the allocation of salaries for Form 41 financial reporting purposes.

                (c) Column 3, “Number of Employees,” shall reflect, for each category in column 1, the weighted average number of full-time employees who received pay for any part of the calendar year. In determining the weighted average, all temporary or part-time employees shall be restated, based on their hours paid, as an equivalent number of full-time employees. The calculation shall be based on a standard full-time 2,080/hour year with overtime hours excluded from the computation.
                (d) Labor category description—“Other personnel” shall include all employees whose salary is chargeable to accounts 30, 32, 34 and 35 in this Uniform System of Accounts and Reports.
                (e) Labor category description—“Transport-related” shall include all employees whose salary is not chargeable to one of the various salary accounts contained in the Uniform System of Accounts and Reports. For example, this category would include those employees who work in transport-related operations and other activities for which a separate payroll account is not prescribed. The number of employees reported as transport-related shall be calculated in accordance with paragraph (c) of these reporting instructions.
                Schedule P-12(a)—Fuel Consumption by Type of Service and Entity
                (a) This schedule shall be filed monthly by all Group II and Group III air carriers and Group I air carriers that have annual operating revenues of $20 million or more.
                (b) A single copy (original only) of this schedule shall be filed to report monthly fuel consumption data by type of service and entity.
                (c) For the purposes of this schedule, type of service shall be either scheduled service or nonscheduled service as those terms are defined in section 03 of part 241.
                (d) For the purpose of this schedule, scheduled service shall be reported separately for: (1) Intra-Alaskan operations; (2) domestic operations, which shall include all operations within and between the 50 States of the United States (except Intra-Alaska), the District of Columbia, the Commonwealth of Puerto Rico and the United States Virgin Islands and Canadian transborder operations; (3) Atlantic operations (excluding Bermuda); (4) Pacific operations which shall include the North/Central Pacific, South Pacific (including Australia) and the Trust Territories; and (5) Latin American operations which shall include the Caribbean (including Bermuda and the Guianas), Mexico and South/Central America.
                (e) For the purpose of this schedule, nonscheduled service shall be reported separately for domestic operations and international operations as defined in paragraph (d) above, except that domestic and international MAC operations shall be reported on separate lines.
                (f) The cost data reported on each line shall represent the average cost of fuel, as determined at the station level, consumed in that entity.

                (g) The cost of fuel shall include shrinkage but exclude (1) “through-put” and “in to plane” fees, i.e., service charges or gallonage levies assessed by or against the fuel vendor or concessionaire and passed on to the carrier in a separately identifiable form and (2) nonrefundable Federal and State excise taxes. However, “through-put” and “in to plane” charges that cannot be identified or segregated from the cost of fuel shall remain a part of the cost of fuel as reported on this schedule.
                (h) Each air carrier shall maintain records for each station showing the computation of fuel inventories and consumption for each fuel type. The periodic average cost method shall be used in computing fuel inventories and consumption. Under this method, an average unit cost for each fuel type shall be computed by dividing the total cost of fuel available (Beginning Inventory plus Purchases) by the total gallons available. The resulting unit cost shall then be used to determine the ending inventory and the total consumption costs to be reported on this schedule.
                (i) Where amounts reported for a specific entity include other than Jet A fuel, a footnote shall be added indicating the number of gallons and applicable costs of such other fuel included in amounts reported for that entity.
                (j) Where any adjustment(s) recorded on the books of the carrier results in a material distortion of the current month's schedule, carriers shall file a revised schedule P-12(a) for the month(s) affected.
                (k) Data reported on this schedule shall be withheld from public release until the quarterly Form 41 P schedules for the calendar quarter to which the monthly schedules relate are due at the BTS. However, aggregate data may be released before that time without identifying individual carriers. Provisions governing the due dates for submitting the quarterly P schedules are contained in paragraphs (a) and (b) of section 22 of this part. Individual carrier fuel data withheld from public disclosure may be disclosed by the BTS to:
                (1) Parties to any proceeding before the DOT to the extent such material is relevant and material to the issues in the proceeding upon a determination to this effect by the administrative law judge assigned to the case or by the DOT;

                (2) Agencies and other components of the Federal Government for their internal use only; and

                (3) Such persons and in such circumstances as the BTS determines to be in the public interest or consistent with its regulatory functions and responsibilities.

              (Approved by the Office of Management and Budget under control number 2138-0013)
              [ER-755, 37 FR 19726, Sept. 21, 1972, as amended by Amdt. 241-58, 54 FR 5597, Feb. 6, 1989]

                Editorial Note:
                For Federal Register citations affecting part 241 section 24, see the List of CFR Sections Affected, which appears in the Finding Aids section of the printed volume and at www.govinfo.gov.

            Traffic Reporting Requirements

              Section 25
              Traffic and Capacity Elements

                  General Instructions. (a) All prescribed reporting for traffic and capacity elements shall conform with the data compilation standards set forth in section 19—Uniform Classification of Operating Statistics.
                (b) Carriers submitting Schedule T-100 shall use magnetic computer tape or IBM compatible disk for transmitting the prescribed data to the Department. Upon good cause shown, OAI may approve the request of a U.S. air carrier, under section 1-2 of this part, to use hardcopy data input forms or submit data via e-mail.
                Schedule T-8—Report of all-cargo operations.
                (a) This schedule shall be filed annually by all air carriers that conduct all-cargo operations under certificates issued under 49 U.S.C. 41103.
                (b) [Reserved]
                (c) Statement of operations. This statement shall include the following elements:
                (1) Total operating revenue, categorized as follows:
                (i) Transport revenues from the carriage of property in scheduled and nonscheduled service;
                (ii) Transport revenues from the carriage of mail in scheduled and nonscheduled service; and
                (iii) Transport-related revenues.
                (2) Total operating expenses; and
                (3) Operating profit or loss, computed by subtracting the total operating expenses from the total operating revenues.
                (d) Summary of traffic and capacity statistics. This summary shall include the following elements:
                (1) Total revenue ton-miles, which are the aircraft miles flown on each flight stage times the number of tons of revenue traffic carried on that stage. They shall be categorized as follows:
                (i) Property; and
                (ii) Mail.
                (2) Revenue tons enplaned, reflecting the total revenue tons of cargo loaded on aircraft during the annual period;
                (3) Available ton-miles, reflecting the total revenue ton-miles available for all-cargo service during the annual period, and computed by multiplying aircraft miles flown on each flight stage by the number of tons of aircraft capacity available for that stage;
                (4) Aircraft miles flown, reflecting the total number of aircraft miles flown in cargo service during the annual period;
                (5) Aircraft departures performed, reflecting the total number of take-offs performed in cargo service during the annual period; and
                (6) Aircraft hours airborne, reflecting the aircraft hours of flight (from take-off to landing) performed in cargo service during the annual period.
                Schedule T-100 U.S. Air Carrier Traffic and Capacity Data By Nonstop Segment and On-Flight Market
                (a) Schedule T-100 collects detailed on-flight market and nonstop segment data on all revenue flights flown by U.S. certificated air carriers. This schedule is filed monthly. Separate data shall be reported for each operating entity (Latin America, Atlantic, Pacific; International, or Domestic) of the air carrier. Data for each operating entity shall be reported using the five digit entity code prescribed under section 19-5(c) of this part.
                (b) Guidelines for reporting the automated monthly Schedule T-100 are included in the Appendix to this section.
                (c) Reported data shall be compiled as aggregates of the basic data elements and service classes contained in sections 19-4 and 19-5 of this part.
                (d) Joint-service operations. The air carrier in operational control of the aircraft (the carrier that uses its flight crews under its own FAA operating authority) must report joint-service operations.

              (Approved by the Office of Management and Budget under control number 2138-0013)
              [ER-755, 37 FR 19726, Sept. 21, 1972]

                Editorial Note:
                For Federal Register citations affecting part 241, section 25, see the List of CFR Sections Affected, which appears in the Finding Aids section of the printed volume and at www.govinfo.gov.

          Pt. 243
          PART 243—PASSENGER MANIFEST INFORMATION

            Sec.
            243.1
            Purpose.
            243.3
            Definitions.
            243.5
            Applicability.
            243.7
            Information collection requirements.

            243.9
            Procedures for collecting and maintaining the information.
            243.11
            Transmission of information after an aviation disaster.
            243.13
            Filing requirements.
            243.15
            Conflicts with foreign laws.
            243.17
            Enforcement.

            Authority:
            49 U.S.C. 40101, 40101nt., 40105, 40113, 40114, 41708, 41709, 41711, 41501, 41702, 41712, 44909, 46301, 46310, 46316; section 203 of Pub. L. 101-604, 104 Stat. 3066 (22 U.S.C. 5501-5513), Title VII of Pub. L. 104-264, 110 Stat. 3213 (22 U.S.C. 5501-5513) and Pub. L. 105-148, 111 Stat. 2681 (49 U.S.C. 41313.)

            Source:
            Docket No. OST-95-950, 63 FR 8280, Feb. 18, 1998, unless otherwise noted.

            § 243.1
            Purpose.
            The purpose of this part is to ensure that the U.S. government has prompt and adequate information in case of an aviation disaster on covered flight segments.

            § 243.3
            Definitions.

              Air piracy means any seizure of or exercise of control over an aircraft, by force or violence or threat of force or violence, or by any other form of intimidation, and with wrongful intent.

              Aviation disaster means:
            (1) An occurrence associated with the operation of an aircraft that takes place between the time any passengers have boarded the aircraft with the intention of flight and the time all such persons have disembarked or have been removed from the aircraft, and in which any person suffers death or serious injury, and in which the death or injury was caused by a crash, fire, collision, sabotage or accident;
            (2) A missing aircraft; or
            (3) An act of air piracy.

              Contact means a person not on the covered flight or an entity that should be contacted in case of an aviation disaster. The contact need not have any particular relationship to a passenger.

              Covered airline means:
            (1) certificated air carriers, and

            (2) foreign air carriers, except those that hold Department of Transportation authority to conduct operations in foreign air transportation using only small aircraft (i.e., aircraft designed to have a maximum passenger capacity of not more than 60 seats or a maximum payload capacity of not more than 18,000 pounds).

              Covered flight segment means a passenger-carrying flight segment operating to or from the United States (i.e., the flight segment where the last point of departure or the first point of arrival is in the United States). A covered flight segment does not include a flight segment in which both the point of departure and point of arrival are in the United States.

              Full name means the given name, middle initial or middle name, if any, and family name or surname as provided by the passenger.

              Passenger means every person aboard a covered flight segment regardless of whether he or she paid for the transportation, had a reservation, or occupied a seat, except the crew. For the purposes of this part, passenger includes, but is not limited to, a revenue and non-revenue passenger, a person holding a confirmed reservation, a standby or walkup, a person rerouted from another flight or airline, an infant held upon a person's lap and a person occupying a jump seat. Airline personnel who are on board but not working on that particular flight segment would be considered passengers for the purpose of this part.

              United States means the States comprising the United States of America, the District of Columbia, and the territories and possessions of the United States, including the territorial sea and the overlying airspace.

              U.S. citizen means United States nationals as defined in 8 U.S.C. 1101(a)(22).

            § 243.5
            Applicability.
            This part applies to covered flight segments operated by covered airlines. (See § 243.3 of this part)

            § 243.7
            Information collection requirements.
            (a) For covered flight segments, each covered airline shall:
            (1) Collect, or cause to be collected, the full name for each passenger who is a U.S. citizen. U.S.-citizen passengers for whom this information is not obtained shall not be boarded;

            (2) Solicit, or cause to be solicited, a name and telephone number of a contact from each passenger who is a U.S. citizen; and

            (3) Maintain a record of the information collected pursuant to this section.
            (b) The covered airline operating the flight segment shall be responsible for ensuring compliance with paragraph (a) of this section.

            § 243.9
            Procedures for collecting and maintaining the information.
            Covered airlines may use any method or procedure to collect, store and transmit the required information, subject to the following conditions:
            (a) Information on individual passengers shall be collected before each passenger boards the aircraft on a covered flight segment.
            (b) The information shall be kept until all passengers have disembarked from the covered flight segment.
            (c) The contact information collected pursuant to section 243.7(a)(2) of this part shall be kept confidential and released only to the U.S. Department of State, the National Transportation Safety Board (upon NTSB's request), and the U.S. Department of Transportation pursuant to oversight of this part. This paragraph does not preempt other governments or governmental agencies that have an independent, legal right to obtain this information.
            (d) The contact information collected pursuant to section 243.7(a)(2) of this part shall only be used by covered airlines for notification of family members or listed contacts following an aviation disaster. The information shall not be used for commercial or marketing purposes.

            § 243.11
            Transmission of information after an aviation disaster.
            (a) Each covered airline shall inform the Managing Director of Overseas Citizen Services, Bureau of Consular Affairs, U.S. Department of State immediately upon learning of an aviation disaster involving a covered flight segment operated by that carrier. The Managing Director may be reached 24 hours a day through the Department of State Operations Center at (202) 647-1512.
            (b) Each covered airline shall transmit a complete and accurate compilation of the information collected pursuant to § 243.7 of this part to the U.S. Department of State as quickly as possible, but not later than 3 hours, after the carrier learns of an aviation disaster involving a covered flight segment operated by that carrier.
            (c) Upon request, a covered airline shall transmit a complete and accurate compilation of the information collected pursuant to § 243.7 of this part to the Director, Transportation Disaster AssistanceNational Transportation Safety Board.
            [Docket No. OST-95-950, 63 FR 8280, Feb. 18, 1998, as amended by Doc. No. DOT-OST-2014-0140, 84 FR 15932, Apr. 16, 2019 ]

            § 243.13
            Filing requirements.
            (a) Each covered airline that operates one or more covered flight segments shall file with the U.S. Department of Transportation a brief statement summarizing how it will collect the passenger manifest information required by this part and transmit the information to the Department of State following an aviation disaster. This description shall include a contact at the covered airline, available at any time the covered airline is operating a covered flight segment, who can be consulted concerning information gathered pursuant to this part.
            (b) Each covered airline shall file any contact change as well as a description of any significant change in its means of collecting or transmitting manifest information on or before the date the change is made.
            (c) All filings under this section should be submitted to OST Docket 98-3305, Dockets Management Facility (M-90) U.S. Department of Transportation, 1200 New Jersey Avenue, SE., Washington, DC 20590. The statement shall be filed prior to the date a covered airline operates a covered flight segment.
            [Docket No. OST-95-950, 63 FR 8280, Feb. 18, 1998, as amended by Doc. No. DOT-OST-2014-0140, 84 FR 15932, Apr. 16, 2019 ]

            § 243.15
            Conflict with foreign laws.

            (a) If a covered airline obtains a waiver in the manner described in this section, it will not be required to solicit, collect or transmit information under this part in countries where such solicitation or collection would violate applicable foreign law, but only to the extent it is established by the carrier that such solicitation or collection would violate applicable foreign law.
            (b) Covered airlines that claim that such solicitation, collection or transmission would violate applicable foreign law in certain foreign countries shall file a petition requesting a waiver in the Docket Facility, on or before October 1, 1998, or on or before beginning service between that country and United States. Such petition shall include copies of the pertinent foreign law, as well as a certified translation, and shall include opinions of appropriate legal experts setting forth the basis for the conclusion that collection would violate such foreign law. Statements from foreign governments on the application of their laws will also be accepted.
            (c) The U.S. Department of Transportation will notify the covered airline of the extent to which it has been satisfactorily established that compliance with all or part of the data collection requirements of this part would constitute a violation of foreign law.
            (d) The U.S. Department of Transportation will maintain an up-to-date listing in OST Docket 98-3305 of countries where adherence to all or a portion of this part is not required because of a conflict with applicable foreign law.
            [Doc. No. OST-95-950, 63 FR 8280, Feb. 18, 1998; 63 FR 9413, Feb. 25, 1998]

            § 243.17
            Enforcement.
            The U.S. Department of Transportation may at any time require a covered airline to produce a passenger manifest including emergency contacts and phone numbers for a specified covered flight segment to ascertain the effectiveness of the carrier's system. In addition, it may require from any covered airline further information about collection, storage and transmission procedures at any time. If the Department finds a covered airline's system to be deficient, it will require appropriate modifications, which must be implemented within the period specified by the Department. In addition, a covered airline not in compliance with this part may be subject to enforcement action by the Department.

          Pt. 244
          PART 244—REPORTING TARMAC DELAY DATA

            Sec.
            244.1
            Definitions.
            244.2
            Applicability.
            244.3
            Reporting of tarmac delay data.

            Authority:
            49 U.S.C. 40101(a)(4), 40101(a)(9), 40113(a), 41702, and 41712.

            Source:
            Docket No. DOT-OST-2010-0140, 76 FR 23160, Apr. 25, 2011, unless otherwise noted.

            § 244.1
            Definitions.

              Arrival time is the instant when the pilot sets the aircraft parking brake after arriving at the airport gate or passenger unloading area. If the parking brake is not set, record the time for the opening of the passenger door. Also, for purposes of section 244.3 carriers using a Docking Guidance System (DGS) may record the official “gate-arrival time” when the aircraft is stopped at the appropriate parking mark.

              Cancelled flight means a flight operation that was not operated, but was listed in an air carrier or a foreign air carrier's computer reservation system within seven calendar days of the scheduled departure.

              Certificated air carrier means a U.S. carrier holding a certificate issued under 49 U.S.C. 41102 to conduct passenger service or holding an exemption to conduct passenger operations under 49 U.S.C. 40109.

              Commuter air carrier means a U.S. carrier that has been found fit under 49 U.S.C. 41738 and is authorized to carry passengers on at least five round trips per week on at least one route between two or more points according to a published flight schedule using small aircraft as defined in 14 CFR 298.2.

              Covered carrier means a certificated carrier, a commuter carrier, or a foreign air carrier operating to, from, or within the United States, conducting scheduled passenger service or public charter service with at least one aircraft having a designed passenger seating capacity of 30 or more seats.

              Diverted flight means a flight which is operated from the scheduled origin point to a point other than the scheduled destination point in the carrier's published schedule. For example, a carrier has a published schedule for a flight from A to B to C. If the carrier were to actually fly an A to C operation, the A to B segment is a diverted flight, and the B to C segment is a cancelled flight. The same would apply if the flight were to operate from A to an airport other than B or C.

              Foreign air carrier means a carrier that is not a citizen of the United States as defined in 49 U.S.C. 40102(a) that holds a foreign air carrier permit issued under 49 U.S.C. 41302 or an exemption issued under 49 U.S.C. 40109 authorizing direct foreign air transportation.

              Gate departure time is the instant when the pilot releases the aircraft parking brake after passengers have boarded and aircraft doors have closed. In cases where the flight returned to the departure gate before wheels-off time and departs a second time, the reportable gate departure time for purposes of this part is the last gate departure time before wheels-off time. In cases of a return to the gate after wheels-off time, the reportable gate departure time is the last gate departure time before the gate return. If passengers were boarded without the parking brake being set, the reportable gate departure time is the time that the last passenger door was closed. Also, the official “gate-departure time” may be based on aircraft movement for carriers using a Docking Guidance System (DGS). For example, one DGS records gate departure time when the aircraft moves more than 1 meter from the appropriate parking mark within 15 seconds. Fifteen seconds is then subtracted from the recorded time to obtain the appropriate “out” time.

              Gate Return time means the time that an aircraft that has left the boarding gate returns to a gate or other position at an airport for the purpose of allowing passengers the opportunity to disembark from the aircraft.

              Large hub airport means an airport that accounts for at least 1.00 percent of the total enplanements in the United States.

              Medium hub airport means an airport accounting for at least 0.25 percent but less than 1.00 percent of the total enplanements in the United States.

              Non-hub airport means an airport with 10,000 or more annual enplanements but less than 0.05 percent of the total enplanements in the United States.

              Small hub airport means an airport accounting for at least 0.05 percent but less than 0.25 percent of the total enplanements in the United States.

              Tarmac delay means the holding of an aircraft on the ground either before taking off or after landing with no opportunity for its passengers to deplane.

            § 244.2
            Applicability.
            (a) Except as provided in paragraph (b) of this section, this part applies to U.S. certificated air carriers, U.S. commuter air carriers and foreign air carriers that operate passenger service to or from a U.S. airport with at least one aircraft that has an original manufacturer's design capacity of 30 or more seats. Covered carriers must report all passenger operations that experience a tarmac time of more than 3 hours at a U.S. airport.
            (b) For foreign air carriers that operate charter flights from foreign airports to U.S. airports, and return to foreign airports, and do not pick up any new passengers in the U.S., the charter flights are not flights subject to the reporting requirements of this part.
            (c) U.S. carriers that submit Part 234 Airline Service Quality Performance Reports must submit 3-hour tarmac delay information for public charter flights and international passenger flights to or from any U.S. large hub airport, medium hub airport, small hub airport and non-hub airport. These carriers are already required to submit such information for domestic scheduled flights to or from U.S. large hub airports under art 234 of this chapter. These carriers that are covered by part 234 need only submit information for flights with tarmac delays of more than 3 hours under this part 244 for domestic scheduled passenger flights to or from any U.S. medium hub airport, small hub airport and non-hub airport to the extent they do not report such information under 14 CFR 234.7.
            [Docket No. DOT-OST-2010-0140, 76 FR 23160, Apr. 25, 2011, as amended by Dockt. No. DOT-OST-2014-0056, 81 FR 76827, Nov. 3, 2016]

            § 244.3
            Reporting of tarmac delay data.
            (a) Each covered carrier shall file BTS Form 244 “Tarmac Delay Report” with the Office of Airline Information of the Department's Bureau of Transportation Statistics setting forth the information for each of its covered flights that experienced a tarmac delay of more than 3 hours, including diverted flights and cancelled flights on which the passengers were boarded and then deplaned before the cancellation. The reports are due within 15 days after the end of any month during which the carrier experienced any reportable tarmac delay of more than 3 hours at a U.S. airport. The reports shall be made in the form and manner set forth in accounting and reporting directives issued by the Director, Office of Airline Information, and shall contain the following information:
            (1) Carrier code
            (2) Flight number
            (3) Departure airport (three letter code)
            (4) Arrival airport (three letter code)
            (5) Date of flight operation (year/month/day)
            (6) Gate departure time (actual) in local time
            (7) Gate arrival time (actual) in local time
            (8) Wheels-off time (actual) in local time
            (9) Wheels-on time (actual) in local time
            (10) Aircraft tail number
            (11) Total ground time away from gate for all gate return/fly return at origin airports including cancelled flights
            (12) Longest time away from gate for gate return or canceled flight
            (13) Three letter code of airport where flight diverted
            (14) Wheels-on time at diverted airport
            (15) Total time away from gate at diverted airport
            (16) Longest time away from gate at diverted airport
            (17) Wheels-off time at diverted airport
            (b) The same information required by paragraph (a)(13) through (17) of this section must be provided for each subsequent diverted airport landing.
            [Docket No. DOT-OST-2010-0140, 76 FR 23160, Apr. 25, 2011, as amended by Docket No. DOT-OST-2014-0056, 81 FR 76827, Nov. 3, 2016]

          Pt. 247
          PART 247—DIRECT AIRPORT-TO-AIRPORT MILEAGE RECORDS

            Sec.
            247.1
            Official mileage record of the Department of Transportation.
            247.2-247.10
            [Reserved]

            Authority:
            49 U.S.C. chapter 401.

            Source:
            Amdt. 247-2, 56 FR 67170, Dec. 30, 1991, unless otherwise noted.

            § 247.1
            Official mileage record of the Department of Transportation.
            The direct airport-to-airport mileage record now maintained, and as hereafter amended or revised from time to time by the Office of Airline Information of the Bureau of Transportation Statistics of the Department of Transportation in the regular performance of its duties, is hereby adopted as the official mileage record of the Department and the mileages set forth therein shall be used in all instances where it shall be necessary to determine direct airport-to-airport mileages pursuant to the provisions of 49 U.S.C. Subtitle VII (Transportation)or any rule, regulation, or order of the Department pursuant thereto.
            [Amdt. 247-2, 56 FR 67170, Dec. 30, 1991, as amended at 60 FR 66725, Dec. 26, 1995; Doc. No. DOT-OST-2014-0140, 84 FR 15932, Apr. 16, 2019]

            §§ 247.2-247.10
            [Reserved]

          Pt. 248
          PART 248—SUBMISSION OF AUDIT REPORTS

            Sec.
            248.1
            Applicability.
            248.2
            Filing of audit reports.
            248.4
            Time for filing reports.
            248.5
            Withholding from public disclosure.

            Authority:
            49 U.S.C. 329, 41102, 41708, and 41709.

            Source:
            ER-420, 29 FR 13799, Oct. 7, 1964, unless otherwise noted.

            § 248.1
            Applicability.
            The requirements of this part shall be applicable to all air carriers subject to the requirements of part 241 of this subchapter.

            § 248.2
            Filing of audit reports.
            (a) Whenever any air carrier subject to § 248.1 shall have caused an annual audit of its books, records, and accounts to be made by independent public accountants, such air carrier shall file with the Office of Airline Information, in duplicate, a special report consisting of a true and complete copy of the audit report submitted by such independent public accountants, including all schedules, exhibits, and certificates included in, attached to, or submitted with or separately as a part of, the audit report.
            (b) Each air carrier subject to § 248.1 that does not cause an annual audit to be made of its books, records, and accounts for any fiscal year shall, at the close of such fiscal year file with the Bureau of Transportation Statistics' (BTS) Office of Airline Information, as a part of its periodic reports, a statement that no such audit has been performed.
            (c) Carriers shall submit their audit reports or their statement that no audit was performed in a format specified in accounting and reporting directives issued by the Bureau of Transportation Statistics' Director of Airline Information.
            (Approved by the Office of Management and Budget under control number 2138-0004)
            [ER-1351, 48 FR 32756, July 19, 1983, as amended by ER-1362, 48 FR 46265, Oct. 12, 1983; 60 FR 66725, Dec. 26, 1995; 75 FR 41584, July 16, 2010; Doc. No. DOT-OST-2014-0140, 84 FR 15932, Apr. 16, 2019]

            § 248.4
            Time for filing reports.
            The report required by this part shall be filed with the Office of Airline Information within 15 days after the due date of the appropriate periodic BTS Form 41 Report, filed for the 12-month period covered by the audit report, or the date the accountant submits its audit report to the air carrier, whichever is later.
            [ER-1351, 48 FR 32756, July 19, 1983, as amended at 60 FR 66725, Dec. 26, 1995]

            § 248.5
            Withholding from public disclosure.
            The special reports required to be filed by § 248.2 shall be withheld from public disclosure, until further order of the BTS, if such treatment is requested by the air carrier at the time of filing.
            [ER-420, 29 FR 13799, Oct. 7, 1964, as amended at 60 FR 66725, Dec. 26, 1995]

          Pt. 249
          PART 249—PRESERVATION OF AIR CARRIER RECORDS

              Subpart A—General Instructions
              Sec.
              249.1
              Applicability.
              249.2
              Definitions.
              249.3
              Preservation of records.
              249.4
              Photographic copies.
              249.5
              Storage of records.
              249.6
              Destruction of records.
              249.7
              Restrictions on record destruction.
              249.8
              Premature loss or destruction of records.
              249.9
              Carriers going out of business.
              249.10
              Waiver of requirements.

              Subpart B—Preservation of Records by Carrier
              249.20
              Preservation of records by certificated air carriers.
              249.21
              Preservation of records by public charter operators and overseas military personnel charter operators.

              Subpart C—Regulations Relating to the Truth-in-Lending Act
              249.30
              Applicability.
              249.31
              Preservation and inspection of evidence of compliance.

            Authority:
            49 U.S.C. 329 and chapters 401, 411, 413, 417.

            Source:
            ER-1214, 46 FR 25415, May 6, 1981, unless otherwise noted.

            Note:
            The recordkeeping requirements contained in this part have been approved by the Office of Management and Budget under control number 2138-0006.

            Subpart A—General Instructions

              § 249.1
              Applicability.
              Subparts A and B of this part apply to:

              (a) Air carriers, as defined in 49 U.S.C. 40102, that hold either certificates of public convenience and necessity or certificates for all-cargo air service.

              (b) Public charter operators, as defined in part 380 of this chapter.
              (c) Overseas military personnel charter operators, as defined in part 372 of this chapter.
              [ER-1214, 46 FR 25415, May 6, 1981, as amended at 60 FR 66725, Dec. 26, 1995]

              § 249.2
              Definitions.
              For the purposes of this part:

                Authorized representatives of the DOT means any persons, including special agents and auditors, designated by the DOT to perform inspections, audits, or examinations within the purview of the DOT's authority.

                Certificated air carrier means the holder of a certificate of public convenience and necessity issued by the Department of Transportation under 49 U.S.C. 41102 or a certificate for all-cargo air service issued by the Department of Transportation under 49 U.S.C. 41103.

                Final adjudication means the expiration date of the last possible period of review or reconsideration of a given case, by the DOT or by a court, that is provided by applicable statute or regulation.

                Open mail rate period means the time interval between the date of institution of a new mail rate proceeding or the start of service over a new route for which no mail rate has previously been fixed, and the date upon which a DOT order setting the final mail rate becomes legally effective.

                Pending case means any case that the DOT is empowered to hear before its final adjudication.

                Records include all documents that are related to, or constitute integral links in developing the history of, or facts regarding, financial transactions or physical operations of a particular segment, operating division, or entire system of the carrier's operations. The term includes any copy of initially prepared documents which bear approvals, comments, or notations which were added and are of significance to a full explanation of recorded facts or information. The term records means not only accounting records in a limited technical sense but all other evidentiary accounts of events such as memoranda, correspondence, working sheets, tabulating equipment listings punched cards, computer-produced listings, microfilm, and magnetic storage media (i.e., magnetic tapes, disks). The term records also means microform and/or tape reproductions of documents made as authorized by this subpart. In addition, the term records includes any of the above-described materials coming into the possession of the air carrier through merger, consolidation, succession, transfer, or other acquisition.

                Supporting papers (records) means any group of documentary papers, such as memoranda, correspondence, working sheets, etc., that assist in upholding the accuracy or clarity of related records.
              [ER-1214, 46 FR 25415, May 6, 1981, as amended at 60 FR 66725, Dec. 26, 1995]

              § 249.3
              Preservation of records.
              (a) All records listed in §§ 249.20 and 249.21 may be preserved on either paper or nonerasable microfilm (see § 249.4). However, a paper or microfilm record need not be created to satisfy the requirements of this part if the record is initially prepared in a machine-readable medium such as punched cards, magnetic tapes, and disks. The records maintained in machine-readable media and the underlying data used in their preparation shall be preserved for the periods prescribed in §§ 249.20 and 249.21. A paper or microfilm record shall not be destroyed after transfer to a machine-readable medium before expiration of the prescribed period: however, a waiver permitting the early destruction of paper or microfilm records transferred to a machine-readable medium may be granted by the Director, Office of Airline Information, when it is demonstrated by the requesting carrier that the substantive purpose of the retention requirement will be met by retention of the information in machine-readable form (see § 249.10).

              (b) Each record kept in a machine-readable medium shall be accompanied by a statement clearly indicating the type of data included in the record and certifying that the information contained in it is complete and accurate. This statement shall be executed by a person having personal knowledge of the facts contained in the records. The records shall be indexed and retained in such a manner so that they are easily accessible, and the carrier shall have the facilities available to locate, identify and reproduce the records in readable form without loss of clarity. Authorized representatives of the DOT shall be given immediate access to the carrier's facilities upon request.
              (c) If any record which must be retained under the provisions of §§ 249.20 and 249.21 is included as an exhibit to another document which must also be retained, the carrier need only keep in its files one copy of the record to satisfy these record retention requirements. In these cases, the carrier shall establish adequate cross-references to assist in locating the record.
              (d) The provisions in this part do not excuse noncompliance with requirements of any other governmental body, Federal or State, prescribing longer retention periods for any records.
              [ER-1214, 46 FR 25415, May 6, 1981, as amended at 60 FR 66725, Dec. 26, 1995]

              § 249.4
              Photographic copies.
              (a) Any record may be transferred to nonerasable microfilm (including microfiche, computer output microfilm, and aperture cards) at any time. Records so maintained on microfilm shall satisfy the minimum requirements listed in paragraphs (b) through (f) of this section.
              (b) The microfilm shall be of a quality that can be easily read and that can be reproduced in paper similar in size to an original without loss of clarity or detail during the periods the records are required to be retained in §§ 249.20 and 249.21.
              (c) Microfilm records shall be indexed and retained in such a manner as will render them readily accessible, and the company shall have facilities available to locate, identify and read the microfilm and reproduce in paper form. Authorized representatives of the DOT shall be given immediate access to these facilities upon request.
              (d) Any significant characteristic, feature, or other attribute which microfilm will not preserve shall be clearly indicated at the beginning of each roll of film or series of microfilm records if applicable to all records on the roll or series, or on the individual record, as appropriate.
              (e) The printed side of printed forms need not be microfilmed for each record if nothing has been added to the printed matter common to all such forms, but an identified specimen of the form shall be on the film for reference.
              (f) Each roll of film or series of microfilm records shall include a microfilm of a certificate stating that the photographs are direct and facsimile reproductions of the original records and they have been made in accordance with prescribed regulations. Such a certificate shall be executed by a person having personal knowledge of these facts. Where the microfilm is computer output, the microfilm certificate shall state that the information is complete and accurate.
              [ER-1214, 46 FR 25415, May 6, 1981, as amended at 60 FR 66725, Dec. 26, 1995]

              § 249.5
              Storage of records.
              Each carrier shall provide reasonable protection from damage by fire, floods, and other hazards for records subject to the provisions of this part.

              § 249.6
              Destruction of records.
              (a) Upon the expiration of the period of preservation prescribed in this part, records may be destroyed at the option of the carrier.
              (b) Unless otherwise specified, duplicate copies of records may be destroyed at any time if they contain no significant information not shown on the originals.
              [ER-1214, 46 FR 25415, May 6, 1981, as amended by Doc. No. DOT-OST-2014-0140, 84 FR 15932, Apr. 16, 2019]

              § 249.7
              Restrictions on record destruction.
              (a) Each carrier that has been named a party to a pending mail rate case shall retain all records remaining in its custody as of the beginning of an “open mail rate period” until the occurrence of one of the following contingencies, whichever is first:
              (1) Final adjudication of a DOT order fixing the final mail compensation payable for services rendered during an “open mail rate period.”

              (2) Receipt of a notice issued by the Director, Office of Airline Information in response to a written application filed by the carrier, authorizing the destruction of specifically identified categories of records. An application should be filed when the carrier believes that certain categories of records are not relevant to the proper processing of a pending mail proceeding. The application should list those categories of records which the carrier wants to destroy and its reasons for believing that the records are not necessary or useful in determining its satutory mail pay.
              (b) Each carrier shall preserve records supporting the computation of subsidy mail pay in accordance with the provisions of § 249.20 unless the carrier has been advised that these computations are subject to further review and disposition by the Department. When the DOT is still reviewing the compensation amount after expiration of the normal retention period specified in § 249.20, these records must be retained until the carrier is notified by the Director, Office of Airline Information, that the records may be destroyed.
              (c) Each carrier that has been named a party to an enforcement proceeding or against whom a third-party complaint has been filed shall retain all records relating to the case until the receipt of formal notification from the Director, Office of Airline Information, following a written application from the carrier, which authorizes the destruction of these records.
              (d) Each carrier that has been named a party to a pending case which is not of a type discussed in paragraphs (a), (b), and (c) of this section, shall preserve all records according to the provisions of § 249.20 unless the Director, Office of Airline Information, notifies the carrier in writing that specific records shall be preserved until final adjudication of the pending case.
              (e) Each carrier that is a party to litigation in a Federal court of which the DOT is also a party shall retain all records relating to the case until the receipt of formal notification from the Director, Office of Airline Information, following a written application from the carrier, which authorizes the destruction of these records.
              [ER-1214, 46 FR 25415, May 6, 1981, as amended at 60 FR 66725, Dec. 26, 1995; Doc. No. DOT-OST-2014-0140, 84 FR 15932, Apr. 16, 2019]

              § 249.8
              Premature loss or destruction of records.
              If records are destroyed or lost before the expiration of the prescribed retention period, a statement shall be prepared and submitted to the Director, Office of Airline Information, which lists, as accurately as possible, the unavailable records and describes the circumstances under which they became unavailable.
              [ER-1214, 46 FR 25415, May 6, 1981, as amended at 60 FR 66725, Dec. 26, 1995]

              § 249.9
              Carriers going out of business.
              The records referred to in these regulations may be destroyed after the business is discontinued and the carrier is completely liquidated. The records may not be destroyed until dissolution is final and all transactions and litigations are completed. When a carrier is merged with another company which is regulated by the DOT, the successor company shall preserve records of the merged company in accordance with this part.
              [ER-1214, 46 FR 25415, May 6, 1981, as amended at 60 FR 66725, Dec. 26, 1995; Doc. No. DOT-OST-2014-0140, 84 FR 15932, Apr. 16, 2019]

              § 249.10
              Waiver of requirements.
              A waiver from any provision of this part may be made by the Director, Office of Airline Information, upon the Director's own initiative or upon submission of a written request by a carrier or group of carriers. Each request for waiver shall demonstrate that unusual circumstances warrant a departure from prescribed retention periods, procedures, or techniques, or that compliance with the prescribed requirements would impose an unreasonable burden on the carrier, and that granting the waiver would be in the public interest.
              [ER-1214, 46 FR 25415, May 6, 1981, as amended at 60 FR 66726, Dec. 26, 1995; Doc. No. DOT-OST-2014-0140, 84 FR 15932, Apr. 16, 2019]

            Subpart B—Preservation of Records by Carrier

              § 249.20
              Preservation of records by certificated air carriers.
              Each certificated air carrier shall retain its records according to the provisions of this section. Unless otherwise specified in the “Schedule of Records,” each retention period shall begin on the date when the records are created or otherwise come into the possession of the carrier.

                Schedule of Records
                [See footnote at end of table]

                  Category of records
                  Retention period

                  1. General and subsidiary ledgers or their equivalents:

                  (a) General ledgers; subsidiary or auxiliary ledgers
                  3 years.

                  (b) Indexes to general and subsidiary ledgers
                    Do.

                  2. Journals and journal vouchers:

                  (a) General and subsidiary journals, and journal vouchers
                  3 years.

                  (b) Papers forming a part of, or necessary to explain, journal entries; entry numbers
                    Do.

                  3. Voucher distribution registers or their equivalent
                    Do.

                  4. Accounts receivables and payables:

                  (a) Traffic accounts receivable or payable, detailed journals and ledgers or their equivalents, together with supporting papers
                    Do.

                  (b) General accounts receivable or payable, detailed journals and ledgers or their equivalents, together with supporting papers
                    Do.

                  (c) Copies of invoices issued by the carrier which have been settled and all supporting papers
                  1 year.

                  (d) Copies of Postal Service Forms: Weekly Summary of Airmail Dispatch (No. 2729) and POD Airmail Exemption Record (No. 2734) supporting mail pay claims which have been settled
                  30 days.

                  5. Subsidy records:

                  (a) For each calendar year, all monthly records of operations, such as tabulations and summaries of miles flown and passenger-miles flown, pertaining to or part of operational records relevant to computation of subsidy mail pay
                  3 years.

                  (b) For each calendar year, all basic original documents, such as pilots' flight logs and passenger lists relevant to a determination of the validity of a carrier's operations described in item (a) above
                    Do.

                  6. The papers, records, or other evidence supporting financial and statistical reports to the BTS. These should include among others the following specific records: Internal administrative or operating reports; system reports of aircraft movements by trip number, showing arrivals, departures, flight delays and related information; bonds and other long-term debt records; stock records; corporate organization records; financial data in support of subsidy claims; minutes of meetings; carrier internal reports on internal controls and other internal audits and procedural studies; operational, management, accounting, financial, and legal service contracts and agreements; records and agreements relating to the lease or purchase and sale of company assets, including title papers, deeds, and similar records; insurance records; property and equipment records; tax records; accountants' and auditors' reports; records of receipts and disbursements including bank statements, check registers and cancelled checks; payroll registers of salaries and wages paid; cost accounting records for work orders; inventories of materials and supplies; and other source documents
                    Do.

                  7. Funds reports and estimates of funds
                  1 year.

                  8. Consumer complaints:

                  (a) Initial correspondence and record of action taken
                  3 years.

                  (b) Initial trip reports:

                  (1) Traffic Data: Basic documents showing the number of passengers, and pounds of mail and property carried
                  (1).

                  (c) Reservations reports and records:

                  (1) Cards and charts constituting original source of passengers' names, telephone numbers, etc
                  2 months.

                  (2) Telegrams and radio messages relating to the clearance of space, passenger dispatching, etc
                  1 month.

                  (d) System report of airplane movements by trip number showing arrivals, departures, delays and related information
                  3 years.

                  (e) Sales reports:

                  (1) Sales ticket or other similar reports from stations, offices and agents
                  2 years.

                  (f) Auditors' coupons
                  1 year.

                  (g) Air waybills
                    Do.

                  (h) Flight coupons
                    Do.

                  (i) Ticket refund claims records and reports
                    Do.

                  (j) Records and reports relating to errors, oversales, irregularities and delays in handling passengers
                    Do.

                  9. All documents which relate to the furnishing of transportation to candidates for political office or persons acting on their behalf which are required to be maintained following § 374a.7 of the subchapter
                  2 years.

                  10. Correspondence and working papers relating to rate and route proceedings
                  3 years.

                  1 One year-mail-property; 2 years-passengers.

              [ER-1214, 46 FR 25415, May 6, 1981, as amended at 60 FR 66726, Dec. 26, 1995]

              § 249.21
              Preservation of records by public charter operators and overseas military personnel charter operators.
              Each operator authorized under parts 372 and 380 of this chapter shall retain the following records for 6 months after completion or cancellation of the flight or series of flights. The records shall be made available upon request of an authorized representative of the DOT.
              (a) All receipts and statements of travel agents and all other documents which show deposits made by each charter participant or which show refunds to charter participants.
              (b) All receipts and statements of travel agents and all other documents which show or reflect commissions received, paid to, or deducted by travel agents in connection with the flight or series of flights.
              (c) All statements, invoices, bills, and receipts from suppliers for furnishing of goods or services in connection with the tour or series of tours.
              (d) All customer reservations records for each flight.
              (e) All contracts with individual tour participants.
              (f) All bank statements and reconciliations for escrow bank accounts opened and maintained in accordance with DOT regulations.
              [ER-1214, 46 FR 25415, May 6, 1981, as amended at 60 FR 66726, Dec. 26, 1995]

            Subpart C—Regulations Relating to the Truth-in-Lending Act

              § 249.30
              Applicability.
              This subpart is applicable to all air carriers and foreign air carriers as defined in 49 U.S.C. 40102, including, without limitation, direct carriers, air taxi operators registered under part 298 of this chapter, indirect air carriers registered under part 296 of this chapter, charter operators authorized under parts 372 and 380 of this chapter, and foreign air carriers holding permits to engage in indirect foreign air transportation issued under 49 U.S.C. 41302.
              [ER-1214, 46 FR 25415, May 6, 1981, as amended at 60 FR 66726, Dec. 26, 1995]

              § 249.31
              Preservation and inspection of evidence of compliance.

              Air carriers and foreign air carriers shall preserve evidence of compliance with the requirements imposed under Regulation Z of the Board of Governors of the Federal Reserve System (12 CFR part 226), implementing the provisions of Title I (Truth in Lending) and Title V (General Provisions) of the Consumer Credit Protection Act, as amended (15 U.S.C. 1601 et seq.) other than the advertising requirements under § 226.10 of regulation Z. This evidence shall be preserved for no less than 2 years after the date each disclosure is required to be made and shall be made available for inspection by authorized representatives of the DOT.
              [ER-1214, 46 FR 25415, May 6, 1981, as amended at 60 FR 66726, Dec. 26, 1995]

          Pt. 250
          PART 250—OVERSALES

            Sec.
            250.1
            Definitions.
            250.2
            Applicability.
            250.2a
            Policy regarding denied boarding.
            250.2b
            Carriers to request volunteers for denied boarding.
            250.3
            Boarding priority rules.
            250.5
            Amount of denied boarding compensation for passengers denied boarding involuntarily.
            250.6
            Exceptions to eligibility for denied boarding compensation.
            250.7
            [Reserved]
            250.8
            Denied boarding compensation.
            250.9
            Written explanation of denied boarding compensation and boarding priorities, and verbal notification of denied boarding compensation.
            250.10
            Report of passengers denied confirmed space.
            250.11
            Public disclosure of deliberate overbooking and boarding procedures.

            Authority:
            49 U.S.C. 329 and chapters 41102, 41301, 41708, 41709, and 41712.

            Source:
            ER-1306, 47 FR 52985, Nov. 24, 1982, unless otherwise noted.

            § 250.1
            Definitions.

              Airport means the airport at which the direct or connecting flight, on which the passenger holds confirmed reserved space, is planned to arrive or some other airport serving the same metropolitan area, provided that transportation to the other airport is accepted (i.e., used) by the passenger.

              Alternate transportation means air transportation with a confirmed reservation at no additional charge, operated by a carrier as defined below, or other transportation accepted and used by the passenger in the case of denied boarding.

              Carrier means: (1) a direct air carrier, except a helicopter operator, holding a certificate issued by the Department of Transportation pursuant to 49 U.S.C. 41102 or that has been found fit to conduct commuter operations under 49 U.S.C. 41738, or an exemption from 49 U.S.C. 41102, authorizing the scheduled transportation of persons; or (2) a foreign air carrier holding a permit issued by the Department pursuant to 49 U.S.C. 41302, or an exemption from that provision, authorizing the scheduled foreign air transportation of persons.

              Class of service means seating in the same cabin class such as First, Business, or Economy class, or in the same seating zone if the carrier has more than one seating product in the same cabin such as Economy and Premium Economy class.

              Confirmed reserved space means space on a specific date and on a specific flight and class of service of a carrier which has been requested by a passenger, including a passenger with a “zero fare ticket,” and which the carrier or its agent has verified, by appropriate notation on the ticket or in any other manner provided therefore by the carrier, as being reserved for the accommodation of the passenger.

              Fare means the price paid for air transportation including all mandatory taxes and fees. It does not include ancillary fees for optional services.

              Stopover means a deliberate interruption of a journey by the passenger, scheduled to exceed 4 hours, at a point between the place of departure and the final destination.

              Zero fare ticket means a ticket acquired without a substantial monetary payment such as by using frequent flyer miles or vouchers, or a consolidator ticket obtained after a monetary payment that does not show a fare amount on the ticket. A zero fare ticket does not include free or reduced rate air transportation provided to airline employees and guests.
            [ER-1306, 47 FR 52985, Nov. 24, 1982, as amended by ER-1337, 48 FR 29680, June 28, 1983; 68 FR 52836, Sept. 8, 2003; Doc. No. OST-01-9325, 73 FR 21033, Apr. 18, 2008; Doc. No. DOT-OST-2010-0140, 76 FR 23161, Apr. 25, 2011]

            § 250.2
            Applicability.
            This part applies to every carrier, as defined in § 250.1, with respect to scheduled flight segments using an aircraft that has a designed passenger capacity of 30 or more passenger seats, operating in (1) interstate air transportation or (2) foreign air transportation with respect to nonstop flight segments originating at a point within the United States.
            [Doc. No. OST-01-9325, 73 FR 21033, Apr. 18, 2008]

            § 250.2a
            Policy regarding denied boarding.
            In the event of an oversold flight, every carrier shall ensure that the smallest practicable number of persons holding confirmed reserved space on that flight are denied boarding involuntarily.

            § 250.2b
            Carriers to request volunteers for denied boarding.
            (a) In the event of an oversold flight, every carrier shall request volunteers for denied boarding before using any other boarding priority. A “volunteer” is a person who responds to the carrier's request for volunteers and who willingly accepts the carriers' offer of compensation, in any amount, in exchange for relinquishing the confirmed reserved space. Any other passenger denied boarding is considered for purposes of this part to have been denied boarding involuntarily, even if that passenger accepts the denied boarding compensation.
            (b) Every carrier shall advise each passenger solicited to volunteer for denied boarding, no later than the time the carrier solicits that passenger to volunteer, whether he or she is in danger of being involuntarily denied boarding and, if so, the compensation the carrier is obligated to pay if the passenger is involuntarily denied boarding. If an insufficient number of volunteers come forward, the carrier may deny boarding to other passengers in accordance with its boarding priority rules.
            (c) If a carrier offers free or reduced rate air transportation as compensation to volunteers, the carrier must disclose all material restrictions, including but not limited to administrative fees, advance purchase or capacity restrictions, and blackout dates applicable to the offer before the passenger decides whether to give up his or her confirmed reserved space on the flight in exchange for the free or reduced rate transportation. If the free or reduced rate air transportation is offered orally to potential volunteers, the carrier shall also orally provide a brief description of the material restrictions on that transportation at the same time that the offer is made.
            [ER-1337, 48 FR 29680, June 28, 1983, as amended at 68 FR 52836, Sept. 8, 2003; Doc. No. OST-01-9325, 73 FR 21034, Apr. 18, 2008; Doc. No. DOT-OST-2010-0140, 76 FR 23161, Apr. 25, 2011; Docket No. DOT-OST-2014-0056, 81 FR 76827, Nov. 3, 2016]

            § 250.3
            Boarding priority rules.
            (a) Every carrier shall establish priority rules and criteria for determining which passengers holding confirmed reserved space shall be denied boarding on an oversold flight in the event that an insufficient number of volunteers come forward. Such rules and criteria shall reflect the obligations of the carrier set forth in §§ 250.2a and 250.2b to minimize involuntary denied boarding and to request volunteers, and shall be written in such manner as to be understandable and meaningful to the average passenger. Such rules and criteria shall not make, give, or cause any undue or unreasonable preference or advantage to any particular person or subject any particular person to any unjust or unreasonable prejudice or disadvantage in any respect whatsoever.
            (b) Boarding priority factors may include, but are not limited to, the following:
            (1) A passenger's time of check-in;
            (2) Whether a passenger has a seat assignment before reaching the departure gate for carriers that assign seats;
            (3) The fare paid by a passenger;
            (4) A passenger's frequent-flyer status; and
            (5) A passenger's disability or status as an unaccompanied minor.
            [ER-1306, 47 FR 52985, Nov. 24, 1982, as amended by ER-1337, 48 FR 29680, June 28, 1983; Doc. No. OST-01-9325, 73 FR 21034, Apr. 18, 2008]

            § 250.5
            Amount of denied boarding compensation for passengers denied boarding involuntarily.
            (a) Subject to the exceptions provided in § 250.6, a carrier to whom this part applies as described in § 250.2 shall pay compensation in interstate air transportation to passengers who are denied boarding involuntarily from an oversold flight as follows:

            (1) No compensation is required if the carrier offers alternate transportation that, at the time the arrangement is made, is planned to arrive at the airport of the passenger's first stopover, or if none, the airport of the passenger's final destination not later than one hour after the planned arrival time of the passenger's original flight;
            (2) Compensation shall be 200% of the fare to the passenger's destination or first stopover, with a maximum of $675, if the carrier offers alternate transportation that, at the time the arrangement is made, is planned to arrive at the airport of the passenger's first stopover, or if none, the airport of the passenger's final destination more than one hour but less than two hours after the planned arrival time of the passenger's original flight; and
            (3) Compensation shall be 400% of the fare to the passenger's destination or first stopover, with a maximum of $1,350, if the carrier does not offer alternate transportation that, at the time the arrangement is made, is planned to arrive at the airport of the passenger's first stopover, or if none, the airport of the passenger's final destination less than two hours after the planned arrival time of the passenger's original flight.
            (b) Subject to the exceptions provided in § 250.6, a carrier to whom this part applies as described in § 250.2 shall pay compensation to passengers in foreign air transportation who are denied boarding involuntarily at a U.S. airport from an oversold flight as follows:
            (1) No compensation is required if the carrier offers alternate transportation that, at the time the arrangement is made, is planned to arrive at the airport of the passenger's first stopover, or if not, the airport of the passenger's final destination not later than one hour after the planned arrival time of the passenger's original flight;
            (2) Compensation shall be 200% of the fare to the passenger's destination or first stopover, with a maximum of $675, if the carrier offers alternate transportation that, at the time the arrangement is made, is planned to arrive at the airport of the passenger's first stopover, or if not, the airport of the passenger's final destination more than one hour but less than four hours after the planned arrival time of the passenger's original flight; and
            (3) Compensation shall be 400% of the fare to the passenger's destination or first stopover, with a maximum of $1,350, if the carrier does not offer alternate transportation that, at the time the arrangement is made, is planned to arrive at the airport of the passenger's first stopover, or if not, the airport of the passenger's final destination less than four hours after the planned arrival time of the passenger's original flight.
            (c) Carriers may offer free or reduced rate air transportation in lieu of the cash or check due under paragraphs (a) and (b) of this section, if—
            (1) The value of the transportation benefit offered, excluding any fees or other mandatory charges applicable for using the free or reduced rate air transportation, is equal to or greater than the cash/check payment otherwise required;
            (2) The carrier fully informs the passenger of the amount of cash/check compensation that would otherwise be due and that the passenger may decline the transportation benefit and receive the cash/check payment; and
            (3) The carrier fully discloses all material restrictions, including but not limited to, administrative fees, advance purchase or capacity restrictions, and blackout dates applicable to the offer, on the use of such free or reduced rate transportation before the passenger decides to give up the cash/check payment in exchange for such transportation. (See also § 250.9(c)).
            (d) The requirements of this section apply to passengers with “zero fare tickets.” The fare paid by these passengers for purposes of calculating denied boarding compensation shall be the lowest cash, check, or credit card payment charged for a ticket in the same class of service on that flight.

            (e) The Department of Transportation will review the maximum denied boarding compensation amounts prescribed in this part every two years except for the first review, which will take place in 2012 in order to put the reviews specified in this section on the same cycle as the reviews of domestic baggage liability limits specified in 14 CFR 254.6. The Department will use any increase in the Consumer Price Index for All Urban Consumers (CPI-U) as of July of each review year to calculate the increased maximum compensation amounts. The Department will use the following formula:

            (1) Current Denied Boarding Compensation limit in section 250.5(a)(2) multiplied by (a/b) rounded to the nearest $25 where:

              a = July CPI-U of year of current adjustment
              b = the CPI-U figure in August, 2011 when the inflation adjustment provision was added to Part 250.

            (2) The Denied Boarding Compensation limit in § 250.5(a)(3) shall be twice the revised limit for § 250.5(a)(2).
            (3) The Denied Boarding Compensation limit in paragraph (b)(2) shall be the same as the revised limit for paragraph (a)(2) of this section, and the Denied Boarding Compensation limit in paragraph (b)(3) shall be twice the revised limit for paragraph (a)(2) of this section.
            (f) In addition to the denied boarding compensation specified in this part, a carrier shall refund all unused ancillary fees for optional services paid by a passenger who is voluntarily or involuntarily denied boarding. The carrier is not required to refund the ancillary fees for services that are provided with respect to the passenger's alternate transportation.
            [Doc. No. DOT-OST-2010-0140, 76 FR 23162, Apr. 25, 2011, as amended by Doc. No. DOT-OST-2015-0104, 80 FR 30147, May 27, 2015; Doc. No. DOT-OST-2014-0056, 81 FR 76827, Nov. 3, 2016]

            § 250.6
            Exceptions to eligibility for denied boarding compensation.
            A passenger denied boarding involuntarily from an oversold flight shall not be eligible for denied boarding compensation if:
            (a) The passenger does not comply fully with the carrier's contract of carriage or tariff provisions regarding ticketing, reconfirmation, check-in, and acceptability for transportation;
            (b) The flight for which the passenger holds confirmed reserved space is unable to accommodate that passenger because of substitution of equipment of lesser capacity when required by operational or safety reasons; or, on an aircraft with a designed passenger capacity of 60 or fewer seats, the flight for which the passenger holds confirmed reserved space is unable to accommodate that passenger due to weight/balance restrictions when required by operational or safety reasons;
            (c) The passenger is offered accommodations or is seated in a section of the aircraft other than that specified on the ticket at no extra charge, except that a passenger seated in a section for which a lower fare is charged shall be entitled to an appropriate refund; or
            (d) The carrier arranges comparable air transportation, or other transportation used by the passenger at no extra cost to the passenger, that at the time such arrangements are made is planned to arrive at the airport of the passenger's next stopover or, if none, at the airport of the final destination not later than 1 hour after the planned arrival time of the passenger's original flight or flights.
            [ER-1337, 48 FR 29680, June 28, 1983, as amended at Doc. No. OST-01-9325, 73 FR 21034, Apr. 18, 2008]

            § 250.7
            [Reserved]

            § 250.8
            Denied boarding compensation.
            (a) Every carrier shall tender to a passenger eligible for denied boarding compensation, on the day and place the denied boarding occurs, except as provided in paragraph (b), cash or an immediately negotiable check for the appropriate amount of compensation provided in § 250.5.
            (b) Where a carrier arranges, for the passenger's convenience, alternate means of transportation that departs before the payment can be prepared and given to the passenger, tender shall be made by mail or other means within 24 hours after the time the denied boarding occurs.
            [ER-1394, 49 FR 43625, Oct. 31, 1984]

            § 250.9
            Written explanation of denied boarding compensation and boarding priorities, and verbal notification of denied boarding compensation.

            (a) Every carrier shall furnish passengers who are denied boarding involuntarily from flights on which they hold confirmed reserved space immediately after the denied boarding occurs, a written statement explaining the terms, conditions, and limitations of denied boarding compensation, and describing the carriers' boarding priority rules and criteria. The carrier shall also furnish the statement to any person upon request at all airport ticket selling positions which are in the charge of a person employed exclusively by the carrier, or by it jointly with another person or persons, and at all boarding locations being used by the carrier.
            (b) The statement shall read as follows:

              Compensation for Denied Boarding

              If you have been denied a reserved seat on (name of air carrier), you are probably entitled to monetary compensation. This notice explains the airline's obligation and the passenger's rights in the case of an oversold flight, in accordance with regulations of the U.S. Department of Transportation.

              Volunteers and Boarding Priorities
              If a flight is oversold (more passengers hold confirmed reservations than there are seats available), no one may be denied boarding against his or her will until airline personnel first ask for volunteers who will give up their reservation willingly, in exchange for compensation of the airline's choosing. If there are not enough volunteers, other passengers may be denied boarding involuntarily in accordance with the following boarding priority of (name of air carrier): (In this space the carrier inserts its boarding priority rules or a summary thereof, in a manner to be understandable to the average passenger.)
              Compensation for Involuntary Denied Boarding
              If you are denied boarding involuntarily, you are entitled to a payment of “denied boarding compensation” from the airline unless:
              (1) you have not fully complied with the airline's ticketing, check-in and reconfirmation requirements, or you are not acceptable for transportation under the airline's usual rules and practices; or
              (2) you are denied boarding because the flight is canceled; or
              (3) you are denied boarding because a smaller capacity aircraft was substituted for safety or operational reasons; or
              (4) on a flight operated with an aircraft having 60 or fewer seats, you are denied boarding due to safety-related weight/balance restrictions that limit payload; or
              (5) you are offered accommodations in a section of the aircraft other than specified in your ticket, at no extra charge (a passenger seated in a section for which a lower fare is charged must be given an appropriate refund); or
              (6) the airline is able to place you on another flight or flights that are planned to reach your next stopover or final destination within one hour of the planned arrival time of your original flight.
              Amount of Denied Boarding Compensation
              Domestic Transportation
              Passengers traveling between points within the United States (including the territories and possessions) who are denied boarding involuntarily from an oversold flight are entitled to: (1) No compensation if the carrier offers alternate transportation that is planned to arrive at the passenger's destination or first stopover not later than one hour after the planned arrival time of the passenger's original flight; (2) 200% of the fare to the passenger's destination or first stopover, with a maximum of $675, if the carrier offers alternate transportation that is planned to arrive at the passenger's destination or first stopover more than one hour but less than two hours after the planned arrival time of the passenger's original flight; and (3) 400% of the fare to the passenger's destination or first stopover, with a maximum of $1,350, if the carrier does not offer alternate transportation that is planned to arrive at the airport of the passenger's destination or first stopover less than two hours after the planned arrival time of the passenger's original flight.

                  0 to 1 hour arrival delay
                  No compensation.

                  1 to 2 hour arrival delay
                  200% of one-way fare (but no more than $675).

                  Over 2 hours arrival delay
                  400% of one-way fare (but no more than $1,350).

              International Transportation

              Passengers traveling from the United States to a foreign point who are denied boarding involuntarily from an oversold flight originating at a U.S. airport are entitled to: (1) No compensation if the carrier offers alternate transportation that is planned to arrive at the passenger's destination or first stopover not later than one hour after the planned arrival time of the passenger's original flight; (2) 200% of the fare to the passenger's destination or first stopover, with a maximum of $675, if the carrier offers alternate transportation that is planned to arrive at the passenger's destination or first stopover more than one hour but less than four hours after the planned arrival time of the passenger's original flight; and (3) 400% of the fare to the passenger's destination or first stopover, with a maximum of $1,350, if the carrier does not offer alternate transportation that is planned to arrive at the airport of the passenger's destination or first stopover less than four hours after the planned arrival time of the passenger's original flight.

                  0 to 1 hour arrival delay
                  No compensation.

                  1 to 4 hour arrival delay
                  200% of one-way fare (but no more than $675).

                  Over 4 hours arrival delay
                  400% of one-way fare (but no more than $1,350).

              Alternate Transportation
              “Alternate transportation” is air transportation with a confirmed reservation at no additional charge (by any scheduled airline licensed by DOT), or other transportation accepted and used by the passenger in the case of denied boarding.
              Method of Payment
              Except as provided below, the airline must give each passenger who qualifies for involuntary denied boarding compensation a payment by cash or check for the amount specified above, on the day and at the place the involuntary denied boarding occurs. If the airline arranges alternate transportation for the passenger's convenience that departs before the payment can be made, the payment shall be sent to the passenger within 24 hours. The air carrier may offer free or discounted transportation in place of the cash payment. In that event, the carrier must disclose all material restrictions on the use of the free or discounted transportation before the passenger decides whether to accept the transportation in lieu of a cash or check payment. The passenger may insist on the cash/check payment or refuse all compensation and bring private legal action.
              Passenger's Options
              Acceptance of the compensation may relieve (name of air carrier) from any further liability to the passenger caused by its failure to honor the confirmed reservation. However, the passenger may decline the payment and seek to recover damages in a court of law or in some other manner.

            (c) In addition to furnishing passengers with the carrier's written statement as specified in paragraphs (a) and (b) of this section, if the carrier orally advises involuntarily bumped passengers that they are entitled to receive free or discounted transportation as denied boarding compensation, the carrier must also orally advise the passengers of any material restrictions or conditions applicable to the free or discounted transportation and that they are entitled to choose a check instead (or cash if that option is offered by the carrier).
            (Approved by the Office of Management and Budget under control number 3024-0003)
            [ER-1306, 47 FR 52985, Nov. 24, 1982, as amended by ER-1337, 48 FR 29681, June 28, 1983; ER-1392, 49 FR 40401, Oct. 16, 1984; ER-1394, 49 FR 43625, Oct. 31, 1984; 68 FR 52836, Sept. 8, 2003; Doc. No. OST-01-9325, 73 FR 21034, Apr. 18, 2008; Doc. No. DOT-OST-2010-0140, 76 FR 23162, Apr. 25, 2011; Doc. No. DOT-OST-2015-0104, 80 FR 30147, May 27, 2015]

            § 250.10
            Report of passengers denied confirmed space.
            (a) Each reporting carrier as defined in § 234.2 of this chapter and any carrier that voluntarily submits data pursuant to § 234.7 of this chapter shall file, on a quarterly basis, the information specified in BTS Form 251. The reporting basis shall be flight segments originating in the United States operated by the reporting carrier. The reports must be submitted within 30 days after the end of the quarter covered by the report. The calendar quarters end March 31, June 30, September 30 and December 31. “Total Boardings” on Line 7 of Form 251 shall include only passengers on flights for which confirmed reservations are offered. Data shall not be included for inbound international flights.
            (b) For air transportation taking place on or after January 1, 2018, each reporting carrier and voluntary reporting carrier shall file a separate BTS Form 251 for all flight segments originating in the United States marketed under only the reporting carrier's code, and operated by a code-share partner that is a certificated air carrier or commuter air carrier using aircraft that have a designed passenger capacity of 30 or more seats.
            [Docket No. DOT-OST-2014-0056, 81 FR 76827, Nov. 3, 2016]

            § 250.11
            Public disclosure of deliberate overbooking and boarding procedures.

            (a) Every carrier shall cause to be displayed continuously in a conspicuous public place at each desk, station and position in the United States which is in the charge of a person employed exclusively by it, or by it jointly with another person, or by any agent employed by such air carrier or foreign air carrier to sell tickets to passengers, a sign located so as to be clearly visible and clearly readable to the traveling public, which shall have printed thereon the following statement in boldface type at least one-fourth of an inch high:

              Notice—Overbooking of Flights
              Airline flights may be overbooked, and there is a slight chance that a seat will not be available on a flight for which a person has a confirmed reservation. If the flight is overbooked, no one will be denied a seat until airline personnel first ask for volunteers willing to give up their reservation in exchange for compensation of the airline's choosing. If there are not enough volunteers, the airline will deny boarding to other persons in accordance with its particular boarding priority. With few exceptions, including failure to comply with the carrier's check-in deadline (carrier shall insert either “of _ minutes prior to each flight segment” or “(which are available upon request from the air carrier)” here), persons denied boarding involuntarily are entitled to compensation. The complete rules for the payment of compensation and each airline's boarding priorities are available at all airport ticket counters and boarding locations. Some airlines do not apply these consumer protections to travel from some foreign countries, although other consumer protections may be available. Check with your airline or your travel agent.

            (b) Every carrier shall include with each ticket sold in the United States the notices set forth in paragraph (a) of this section, printed in at least 12-point type. The notice may be printed on a separate piece of paper, on the ticket stock, or on the ticket envelope. The last two sentences of the notice shall be printed in a type face contrasting with that of the rest of the notice.
            (c) It shall be the responsibility of each carrier to ensure that travel agents authorized to sell air transportation for that carrier comply with the notice provisions of paragraphs (a) and (b) of this section.
            (d) [Reserved]
            (e) Any air carrier or foreign air carrier engaged in foreign air transportation that complies fully with this part for inbound traffic to the United States need not use the last two sentences of the notices required by paragraph (a) of this subsection.
            (Approved by the Office of Management and Budget under control number 3024-0018)
            [ER-1306, 47 FR 52985, Nov. 24, 1982, as amended by ER-1392, 49 FR 40401, Oct. 16, 1984; Doc. No. OST-01-9325, 73 FR 21035, Apr. 18, 2008]

          Pt. 251
          PART 251—CARRIAGE OF MUSICAL INSTRUMENTS

            Sec.
            251.1
            Definitions.
            251.2
            Applicability.
            251.3
            Small musical instruments as carry-on baggage.
            251.4
            Large musical instruments as carry-on baggage.
            251.5
            Large musical instruments as checked baggage.

            Authority:
            49 U.S.C. 41724.

            Source:
            80 FR 166, Jan. 5, 2015, unless otherwise noted.

            § 251.1
            Definitions.
            As used in this part:

              Certificated air carrier means a U.S. carrier holding a certificate issued under 49 U.S.C. 41102 to conduct passenger service or holding an exemption to conduct passenger operations under 49 U.S.C. 40109.

              Commuter air carrier means a U.S. carrier that has been found fit under 49 U.S.C. 41738 and is authorized to carry passengers on at least five round trips per week on at least one route between two or more points according to a published flight schedule using small aircraft as defined in 14 CFR 298.2.

              Covered carrier means a certificated carrier, a commuter carrier, an air taxi, or a U.S. indirect carrier operating to, from, or within the United States, conducting scheduled passenger service or public charter service.

              Indirect carrier means a person not directly involved in the operation of an aircraft who sells air transportation services to the general public other than as an authorized agent of a carrier.
            [80 FR 166, Jan. 5, 2015, as amended by Doc. No. DOT-OST-2014-0140, 84 FR 15932, Apr. 16, 2019]

            § 251.2
            Applicability.
            This part applies to U.S. certificated air carriers, U.S. commuter air carriers, air taxis, and U.S. indirect carriers that operate passenger service to, from, or within the United States.

            § 251.3
            Small musical instruments as carry-on baggage.
            Each covered carrier shall permit a passenger to carry a violin, guitar, or other small musical instrument in the aircraft cabin, without charging the passenger a fee in addition to any standard fee that carrier may require for comparable carry-on baggage, if:
            (a) The instrument can be stowed safely in a suitable baggage compartment in the aircraft cabin or under a passenger seat, in accordance with the requirements for carriage of carry-on baggage or cargo established by the FAA; and
            (b) There is space for such stowage at the time the passenger boards the aircraft.

            § 251.4
            Large musical instruments as carry-on baggage.
            Each covered carrier shall permit a passenger to carry a musical instrument that is too large to meet the requirements of § 251.3 in the aircraft cabin, without charging the passenger a fee in addition to the cost of an additional ticket described in paragraph (e) of this section, if:
            (a) The instrument is contained in a case or covered so as to avoid injury to other passengers;
            (b) The weight of the instrument, including the case or covering, does not exceed 165 pounds or the applicable weight restrictions for the aircraft;
            (c) The instrument can be stowed in accordance with the requirements for carriage of carry-on baggage or cargo established by the FAA;
            (d) Neither the instrument nor the case contains any object not otherwise permitted to be carried in an aircraft cabin because of a law or regulation of the United States; and
            (e) The passenger wishing to carry the instrument in the aircraft cabin has purchased an additional seat to accommodate the instrument.

            § 251.5
            Large musical instruments as checked baggage.
            Each covered carrier shall transport as baggage a musical instrument that is the property of a passenger traveling in air transportation that may not be carried in the aircraft cabin if
            (a) The sum of the length, width, and height measured in inches of the outside linear dimensions of the instrument (including the case) does not exceed 150 inches or the applicable size restrictions for the aircraft;
            (b) The weight of the instrument does not exceed 165 pounds or the applicable weight restrictions for the aircraft; and
            (c) The instrument can be stowed in accordance with the requirements for carriage of carry-on baggage or cargo established by the FAA.

          Pt. 252
          PART 252—SMOKING ABOARD AIRCRAFT

            Sec.
            252.1
            Purpose.
            252.2
            Applicability.
            252.3
            Definitions.
            252.4
            Smoking ban: air carriers.
            252.5
            Smoking ban: foreign air carriers.
            252.8
            Extent of smoking restrictions.
            252.9
            Ventilation systems.
            252.11
            Aircraft on the ground.
            252.17
            Enforcement.

            Authority:
            Pub. L. 101-164; 49 U.S.C. 40102, 40109, 40113, 41701, 41702, 41706 as amended by section 708 of Pub. L. 106-181 and section 401 of Pub. L. 112-95, 41711, and 46301.

            Cross Reference:
            For smoking rules of the Federal Aviation Administration, see 14 CFR 121.317(c), 121.571(a)(1)(i), 129.29, 135.117(a)(1), and 135.127(a).

            Source:
            Docket No. DOT-OST-2000-7473, 65 FR 36775, June 9, 2000, unless otherwise noted.

            § 252.1
            Purpose.
            This part implements a ban on smoking as defined in § 252.3, including the use of electronic cigarettes and certain other devices, on flights by air carriers and foreign air carriers.
            [Docket DOT-OST-2011-0044, 81 FR 11427, Mar. 4, 2016]

            § 252.2
            Applicability.

            This part applies to operations of air carriers engaged in interstate, intrastate and foreign air transportation and to foreign air carriers engaged in foreign air transportation.
            [Docket DOT-OST-2011-0044, 81 FR 11427, Mar. 4, 2016]

            § 252.3
            Definitions.
            As used in this part:

              Air carrier means a carrier that is a citizen of the United States undertaking to provide air transportation as defined in 49 U.S.C. 40102.

              Foreign air carrier means a carrier that is not a citizen of the United States undertaking to provide foreign air transportation as defined in 49 U.S.C. 40102.

              Smoking means the use of a tobacco product, electronic cigarettes whether or not they are a tobacco product, or similar products that produce a smoke, mist, vapor, or aerosol, with the exception of products (other than electronic cigarettes) which meet the definition of a medical device in section 201(h) of the Federal Food, Drug and Cosmetic Act, such as nebulizers.
            [Docket DOT-OST-2011-0044, 81 FR 11427, Mar. 4, 2016]

            § 252.4
            Smoking ban: air carriers.
            Air carriers shall prohibit smoking on the following flights:
            (a) Scheduled passenger flights.
            (b) Nonscheduled passenger flights, except for the following flights where a flight attendant is not a required crewmember on the aircraft as determined by the Administrator of the Federal Aviation Administration:
            (1) Single entity charters.
            (2) On-demand services of air taxi operators.
            (c) Nothing in this section shall be deemed to require air carriers to permit smoking aboard aircraft.
            [Docket DOT-OST-2011-0044, 81 FR 11427, Mar. 4, 2016]

            § 252.5
            Smoking ban: foreign air carriers.
            (a)(1) Foreign air carriers shall prohibit smoking on flight segments that occur between points in the United States, and between the United States and any foreign point, in the following types of operations:
            (i) Scheduled passenger foreign air transportation.
            (ii) Nonscheduled passenger foreign air transportation, if a flight attendant is a required crewmember on the aircraft as determined by the Administrator of the Federal Aviation Administration or a foreign carrier's government.
            (2) Nothing in this section shall be deemed to require foreign air carriers to permit smoking aboard aircraft.
            (b) A foreign government objecting to the application of paragraph (a) of this section on the basis that paragraph (a) provides for extraterritorial application of the laws of the United States may request and obtain a waiver of paragraph (a) from the Assistant Secretary for Aviation and International Affairs, provided that an alternative smoking prohibition resulting from bilateral negotiations is in effect.
            [Docket DOT-OST-2011-0044, 81 FR 11427, Mar. 4, 2016]

            § 252.8
            Extent of smoking restrictions.
            The restrictions on smoking described in §§ 252.4 and 252.5 shall apply to all locations within the aircraft.
            [Docket DOT-OST-2011-0044, 81 FR 11428, Mar. 4, 2016]

            § 252.9
            Ventilation systems.
            Air carriers shall prohibit smoking whenever the ventilation system is not fully functioning. Fully functioning for this purpose means operating so as to provide the level and quality of ventilation specified and designed by the manufacturer for the number of persons currently in the passenger compartment.

            § 252.11
            Aircraft on the ground.
            (a) Air carriers shall prohibit smoking whenever the aircraft is on the ground.
            (b) With respect to the restrictions on smoking described in § 252.5, foreign air carriers shall prohibit smoking from the time an aircraft begins enplaning passengers until the time passengers complete deplaning.

            § 252.17
            Enforcement.

            Air carriers and foreign air carriers shall take such action as is necessary to ensure that smoking by passengers or crew is not permitted where smoking is prohibited by this part, including but not limited to aircraft lavatories.
            [Docket DOT-OST-2011-0044, 81 FR 11428, Mar. 4, 2016]

          Pt. 253
          PART 253—NOTICE OF TERMS OF CONTRACT OF CARRIAGE

            Sec.
            253.1
            Purpose.
            253.2
            Applicability.
            253.3
            Definitions.
            253.4
            Incorporation by reference in the contract of carriage.
            253.5
            Notice of incorporated terms.
            253.6
            Explanation of incorporated terms.
            253.7
            Direct notice of certain terms.
            253.8
            Qualifications to notice requirements.
            253.9
            Retroactive changes to contracts of carriage.
            253.10
            Notice of contract of carriage choice-of-forum provisions.

            Authority:
            49 U.S.C. 40113, 40114, 41501, 41504, 41506, 41509, 41510, 41511, 41702, and 41711.

            Source:
            ER-1302, 47 FR 52134, Nov. 19, 1982, unless otherwise noted.

            § 253.1
            Purpose.
            The purpose of this part is to set uniform disclosure requirements, which preempt any State requirements on the same subject, for terms incorporated by reference into contracts of carriage for scheduled service in interstate and overseas passenger air transportation.
            [ER-1302, 47 FR 52134, Nov. 19, 1982, as amended by Doc. No. DOT-OST-2014-0140, 84 FR 15932, Apr. 16, 2019]

            § 253.2
            Applicability.
            This part applies to all scheduled direct air carrier operations in interstate and overseas air transportation. It applies to all contracts with passengers, for those operations, that incorporate terms by reference.
            [ER-1323, 48 FR 6318, Feb. 11, 1983, as amended by Doc. No. DOT-OST-2014-0140, 84 FR 15932, Apr. 16, 2019]

            § 253.3
            Definitions.

              Large aircraft means any aircraft designed to have a maximum passenger capacity of more than 60 seats.

              Passenger means any person who purchases, or who contacts a ticket office or travel agent for the purpose of purchasing, or considering the purchase of, air transportation.

              Ticket office means station, office, or other location where tickets are sold that is under the charge of a person employed exclusively by the carrier, or by it jointly with another person.

            § 253.4
            Incorporation by reference in the contract of carriage.

            (a) A ticket or other written instrument that embodies the contract of carriage may incorporate contract terms by reference (i.e., without stating their full text), and if it does so shall contain or be accompanied by notice to the passenger as required by this part. In addition to other remedies at law, an air carrier may not claim the benefit as against the passenger of, and the passenger shall not be bound by, any contract term incorporated by reference if notice of the term has not been provided to that passenger in accordance with this part.
            (b) Each air carrier shall make the full text of each term that it incorporates by reference in a contract of carriage available for public inspection at each of its airport and city ticket offices.
            (c) Each air carrier shall provide free of charge by mail or other delivery service to passengers, upon their request, a copy of the full text of its terms incorporated by reference in the contract. Each carrier shall keep available at all times, free of charge, at all locations where its tickets are sold within the United States information sufficient to enable passengers to order the full text of such terms.
            (The notice requirements contained in paragraphs (b) and (c) were approved by the Office of Management and Budget under control number 3024-0061)
            [ER-1302, 47 FR 52134, Nov. 19, 1982, as amended by ER-1309, 47 FR 54764, Dec. 6, 1982]

            § 253.5
            Notice of incorporated terms.

            Except as provided in § 253.8, each air carrier shall include on or with a ticket, or other written instrument given to a passenger, that embodies the contract of carriage and incorporates terms by reference in that contract, a conspicuous notice that:

            (a) Any terms incorporated by reference are part of the contract, passengers may inspect the full text of each term incorporated by reference at the carrier's airport or city ticket offices, and passengers have the right, upon request at any location where the carrier's tickets are sold within the United States, to receive free of charge by mail or other delivery service the full text of each such incorporated term;
            (b) The incorporated terms may include and passengers may obtain from any location where the carrier's tickets are sold within the United States further information concerning:
            (1) Limits on the air carrier's liability for personal injury or death of passengers, and for loss, damage, or delay of goods and baggage, including fragile or perishable goods;
            (2) Claim restrictions, including time periods within which passengers must file a claim or bring an action against the carrier for its acts or omissions or those of its agents;
            (3) Rights of the carrier to change terms of the contract. (Rights to change the price, however, are governed by § 253.7);
            (4) Rules about reconfirmation of reservations, check-in times, and refusal to carry;
            (5) Rights of the carrier and limitations concerning delay or failure to perform service, including schedule changes, substitution of alternate air carrier or aircraft, and rerouting.
            (Approved by the Office of Management and Budget under control number 3024-0061)
            [ER-1302, 47 FR 52134, Nov. 19, 1982, as amended by ER-1309, 47 FR 54764, Dec. 6, 1982; ER-1370, 48 FR 54591, Dec. 6, 1983; ER-1375, 49 FR 5064, Feb. 10, 1984]

            § 253.6
            Explanation of incorporated terms.
            Each air carrier shall ensure that any passenger can obtain from any location where its tickets are sold within the United States a concise and immediate explanation of any terms incorporated by reference, concerning the subjects listed in § 253.5(b).
            (Approved by the Office of Management and Budget under control number 3024-0061)
            [ER-1302, 47 FR 52134, Nov. 19, 1982, as amended by ER-1309, 47 FR 54764, Dec. 6, 1982]

            § 253.7
            Direct notice of certain terms.
            A carrier may not impose any terms restricting refunds of the ticket price, imposing monetary penalties on passengers, or raising the ticket price consistent with § 399.88 of the chapter, unless the passenger receives conspicuous written notice of the salient features of those terms on or with the ticket.
            [Doc. No. DOT-OST-2010-0140, 76 FR 23163, Apr. 25, 2011, as amended by Doc. No. DOT-OST-2014-0140, 84 FR 15932, Apr. 16, 2019]

            § 253.8
            Qualifications to notice requirements.
            (a) If notice is not provided in accordance with § 253.5 at a ticket sales location outside of the United States that is not a U.S. air carrier ticket office, the price paid for the portion of such ticket that is for interstate and overseas air transportation shall be refundable without penalty if the passenger refuses transportation by the carrier. Each air carrier shall ensure that passengers who have bought tickets at those locations without the notice required in § 253.5 are given that notice not later than check-in for the travel in interstate or overseas air transportation, and that conspicuous notice is included on or with the ticket stating that the price for that travel is refundable without penalty.

            (b) An air taxi operator (including a commuter air carrier) not operating under subpart I of part 298 of this chapter shall not be considered to have incorporated terms by reference into its contract of carriage merely because a passenger has purchased a flight segment on that carrier that appears on ticket stock that contains a statement that terms have been incorporated by reference. However, such an air taxi operator may not claim the benefit as against the passenger of, and the passenger shall not be bound by, any contract term incorporated by reference if notice of the term has not been provided to the passenger in accordance with this part.
            [ER-1370, 48 FR 54591, Dec. 6, 1983]

            § 253.9
            Retroactive changes to contracts of carriage.
            An air carrier may not retroactively apply to persons who have already bought a ticket any material amendment to its contract of carriage that has significant negative implications for consumers.
            [Doc. No. DOT-OST-2007-0022, 74 FR 69002, Dec. 30, 2009]

            § 253.10
            Notice of contract of carriage choice-of-forum provisions.
            No carrier may impose any contract of carriage provision containing a choice-of-forum clause that attempts to preclude a passenger, or a person who purchases a ticket for air transportation on behalf of a passenger, from bringing a claim against a carrier in any court of competent jurisdiction, including a court within the jurisdiction of that passenger's residence in the United States (provided that the carrier does business within that jurisdiction).
            [Doc. No. DOT-OST-2010-0140, 76 FR 23163, Apr. 25, 2011]

          Pt. 254
          PART 254—DOMESTIC BAGGAGE LIABILITY

            Sec.
            254.1
            Purpose.
            254.2
            Applicability.
            254.3
            Definitions.
            254.4
            Carrier liability.
            254.5
            Notice requirement.
            254.6
            Periodic adjustments.

            Authority:
            49 U.S.C. 40113, 41501, 41504, 41510, 41702, and 41707.

            Source:
            ER-1374, 49 FR 5071, Feb. 10, 1984, unless otherwise noted.

            § 254.1
            Purpose.
            The purpose of this part is to establish rules for the carriage of baggage in interstate and intrastate air transportation. The part sets permissible limitations of air carrier liability for loss, damage, or delay in the carriage of passenger baggage and requires air carriers to provide certain types of notice to passengers.
            [ER-1374, 49 FR 5071, Feb. 10, 1984, as amended at 64 FR 70575, Dec. 17, 1999]

            § 254.2
            Applicability.
            This part applies to any air carrier that provides charter or scheduled passenger service in interstate or intrastate air transportation.
            [ER-1374, 49 FR 5071, Feb. 10, 1984, as amended at 64 FR 70575, Dec. 17, 1999]

            § 254.3
            Definitions.

              Large aircraft means any aircraft designed to have a maximum passenger capacity of more than 60 seats.

            § 254.4
            Carrier liability.
            On any flight segment using large aircraft, or on any flight segment that is included on the same ticket as another flight segment that uses large aircraft, an air carrier shall not limit its liability for provable direct or consequential damages resulting from the disappearance of, damage to, or delay in delivery of a passenger's personal property, including baggage, in its custody to an amount less than $3,500 for each passenger.
            [72 FR 3943, Jan. 29, 2007, as amended at 73 FR 70592, Nov. 21, 2008; 78 FR 14914, Mar. 8, 2013; 80 FR 30147, May 27, 2015]

            § 254.5
            Notice requirement.
            In any flight segment using large aircraft, or on any flight segment that is included on the same ticket as another flight segment that uses large aircraft, an air carrier shall provide to passengers, by conspicuous written material included on or with its ticket, either:
            (a) Notice of any monetary limitation on its baggage liability to passengers; or
            (b) The following notice: “Federal rules require any limit on an airline's baggage liability to be at least $3,500 per passenger.”
            [72 FR 3943, Jan. 29, 2007, as amended by Doc. N. oDOT-OST-2008-0332, 73 FR 70592, Nov. 21, 2008; 78 FR 14914, Mar. 8, 2013; 80 FR 30147, May 27, 2015]

            § 254.6
            Periodic adjustments.

            The Department of Transportation will review the minimum limit of liability prescribed in this part every two years. The Department will use the Consumer Price Index for All Urban Consumers as of July of each review year to calculate the revised minimum liability amount. The Department will use the following formula:

            $2500 × (a/b) rounded to the nearest $100 where:

              a = July CPI-U of year of current adjustment
              b = the CPI-U figure in December 1999 when the inflation adjustment provision was added to part 254.

            [64 FR 70575, Dec. 17, 1999, as amended by Doc. No. DOT-OST-2008-0332, 73 FR 70592, Nov. 21, 2008]

          PART 255 [RESERVED]

          Pt. 256
          PART 256—ELECTRONIC AIRLINE INFORMATION SYSTEMS

            Sec.
            256.1
            Purpose.
            256.2
            Applicability.
            256.3
            Definitions.
            256.4
            Prohibition on undisclosed display bias.
            256.5
            Minimum disclosure requirements for biased displays.
            256.6
            No requirement to provide access to systems.

            Authority:
            49 U.S.C. 40101 and 41712.

            Source:
            Docket No. DOT-OST-2014-0056, 81 FR 76828, Nov. 3, 2016, unless otherwise noted.

            § 256.1
            Purpose.
            (a) The purpose of this part is to set forth requirements for the display of flight options by electronic airline information systems that provide air carrier or foreign air carrier schedule, fare, or availability information, including, but not limited to, global distribution systems (GDSs), corporate booking tools, and internet flight search tools, for use by consumers, carriers, ticket agents, and other business entities so as to prevent unfair or deceptive practices in the distribution and sale of air transportation.
            (b) Nothing in this part exempts any person from the operation of the antitrust laws set forth in subsection (a) of the first section of the Clayton Act (15 U.S.C. 12).

            § 256.2
            Applicability.

            (a) This part applies to any air carrier, foreign air carrier, or ticket agent that operates an electronic airline information system, e.g., GDS, corporate booking tool, or internet flight search tool, that combines the schedules, fares or availability information of more than one air carrier or foreign air carrier for the distribution or sale in the United States of interstate or foreign air transportation.
            (b) This part applies only if the electronic airline information system is displayed on a Web site marketed to consumers in the United States or on a proprietary display available to travel agents, business entities, or a limited segment of consumers of air transportation in the United States.

            § 256.3
            Definitions.
            For purposes of this part:

              Availability means information provided in displays with respect to the ability to make a reservation on a particular flight.

              Display means the presentation of air carrier or foreign air carrier schedules, fares, or availability to a consumer or agent or other individual involved in arranging air travel for a consumer by means of a computer or mobile electronic device.

              Electronic airline information system or EAIS means a system that combines air carrier or foreign air carrier schedule, fare, or availability information for transmission or display to air carriers or foreign air carriers, ticket agents, other business entities, or consumers.

              Integrated display means any display that includes the schedules, fares or availability of more than one listed carrier.

            § 256.4
            Prohibition on undisclosed display bias.
            Each air carrier, foreign air carrier, and ticket agent that operates an EAIS must comply with the requirements of this section.

            (a) Each EAIS that uses any factor, not based on user selection or corporate contract travel arrangement, directly or indirectly relating to carrier identity in ordering the information contained in an integrated display must clearly disclose as provided for in § 256.5 that the identity of the carrier is a factor in the order in which information is displayed.
            (b) An EAIS's integrated display must not give any carrier's flights a system-imposed preference over any other carrier's flights in that market based on carrier identity unless the preference is prominently disclosed as provided for in § 256.5.

            (c) Each EAIS must display information in an objective manner based on search criteria selected by the user (e.g., lowest fare, lowest total cost, date and time of travel, class of service, stopovers, total elapsed time or duration of travel, number of stops, limitations on carriers to be used, particular airport(s), number of passengers, etc.) When providing information in response to a search by a user of the EAIS, the EAIS must order the information provided so that the flight options that best satisfy the parameters of the user-selected search criteria are displayed conspicuously and no less prominently (e.g., in the same or larger font size and the same or more noticeable font color) than any other flight option displayed. Flight options may be presented in sequence, matrix, or other formats, but the flight options that best satisfy the parameters of the user-selected search criteria must be ranked in lists above other flight options, or identified more prominently than other flight options in a matrix or other format. This does not preclude systems from setting default display parameters that are not deceptive or offering users the option to choose a variety of display methods within those parameters.

            § 256.5
            Minimum disclosure requirements for biased displays.
            To the extent an EAIS engages in display bias based on carrier identity, it must clearly and conspicuously disclose that fact at the top of each search result display presented to the user in response to the user-selected search criteria. The notice must state that the flights are not displayed in neutral order and that certain airlines' fare, schedule or availability information is given preferential treatment in how it is displayed.

            § 256.6
            No requirement to provide access to systems.
            Nothing in this section requires an air carrier, foreign air carrier, or ticket agent to allow a system to access its internal computer reservation system or to permit “screen scraping” or “content scraping” of its Web site; nor does it require an air carrier or foreign air carrier to permit the marketing or sale of the carrier's services through any ticket agent or other carrier's system. “Screen scraping” as used in this paragraph refers to a process whereby a company uses computer software techniques to extract information from other companies' Web sites without permission from the company operating the targeted Web site.

          Pt. 257
          PART 257—DISCLOSURE OF CODE-SHARING ARRANGEMENTS AND LONG-TERM WET LEASES

            Sec.
            257.1
            Purpose.
            257.2
            Applicability.
            257.3
            Definitions.
            257.4
            Unfair and deceptive practice.
            257.5
            Notice requirement.
            257.6
            Effective and compliance dates.

            Authority:
            49 U.S.C. 40113(a) and 41712.

            Source:
            64 FR 12851, Mar. 15, 1999, unless otherwise noted.

            § 257.1
            Purpose.
            The purpose of this part is to ensure that ticket agents doing business in the United States, air carriers, and foreign air carriers tell consumers clearly when the air transportation they are buying or considering buying involves a code-sharing arrangement or a long-term wet lease, and that they disclose to consumers the transporting carrier's identity.

            § 257.2
            Applicability.
            This part applies to the following:
            (a) Direct air carriers and foreign air carriers that participate in code-sharing arrangements or long-term wet leases involving scheduled passenger air transportation; and

            (b) Ticket agents doing business in the United States that sell scheduled passenger air transportation services involving code-sharing arrangements or long-term wet leases.

            § 257.3
            Definitions.
            As used in this part:

              Air transportation means foreign air transportation or interstate air transportation as defined in 49 U.S.C. 40102 (a)(23) and (25) respectively.

              Carrier means any air carrier or foreign air carrier as defined in 49 U.S.C. 40102(2) or 49 U.S.C. 40102(21), respectively, that is engaged directly in scheduled passenger air transportation, including by wet lease.

              Code-sharing arrangement means an arrangement whereby a carrier's designator code is used to identify a flight operated by another carrier.

              Designator code means the airline designations originally allotted, administered, and prescribed by the Department of Transportation (DOT), by operation of law, pursuant to 49 U.S.C. Subtitle VII or its predecessor's statutory provisions still in effect by law.

              Long-term wet lease means a lease by which the lessor provides both an aircraft and crew dedicated to a particular route(s), and which either:
            (1) Lasts more than 60 days; or
            (2) Is part of a series of such leases that amounts to a continuing arrangement lasting more than 60 days.

              Operating carrier means the carrier that is operating the aircraft in a code-sharing arrangement or long-term wet lease.

              Ticket agent has the meaning ascribed to it in 49 U.S.C. 40102(45).
            [64 FR 12851, Mar. 15, 1999, as amended by Docket No. DOT-OST-2014-0056, 81 FR 76828, Nov. 3, 2016, as amended by Doc. No. DOT-OST-2014-0140, 84 FR 15932, Apr. 16, 2019]

            § 257.4
            Unfair and deceptive practice.
            The holding out or sale of scheduled passenger air transportation involving a code-sharing arrangement or long-term wet lease is prohibited as unfair and deceptive in violation of 49 U.S.C. 41712 unless, in conjunction with such holding out or sale, carriers and ticket agents follow the requirements of this part.

            § 257.5
            Notice requirement.
            (a) Notice in flight itineraries and schedules. Each air carrier, foreign air carrier, or ticket agent providing flight itineraries and/or schedules for scheduled passenger air transportation to the public in the United States and to the Official Airline Guides and comparable publications, and, where applicable, computer reservation systems, shall ensure that each flight on which the designator code is not that of the operating carrier is clearly and prominently identified and contains the following disclosures. If there is more than one operating carrier for a particular flight (e.g., change of gauge), the required disclosures shall be made for each flight segment where the designator code is not that of the operating carrier.
            (1) In flight schedule information provided by an air carrier, foreign air carrier, or ticket agent to U.S. consumers on desktop browser-based Web sites or applications in response to any requested itinerary search, for each flight in scheduled passenger air transportation that is operated by a carrier other than the one listed for that flight, the corporate name of the transporting carrier and any other name under which the service is held out to the public must appear prominently in text format, with font size not smaller than the font size of the flight itinerary itself, on the first display following the input of a search query, immediately adjacent to each code-share flight in that search-results list. Roll-over, pop-up and linked disclosures do not comply with this paragraph.

            (2) In flight schedule information provided by an air carrier, foreign air carrier, or ticket agent to U.S. consumers on mobile browser-based Web sites or applications in response to any requested itinerary search, for each flight in scheduled passenger air transportation that is operated by a carrier other than the one listed for that flight, the corporate name of the transporting carrier must appear prominently in text format, with font size not smaller than the font size of the flight itinerary itself, on the first display following the input of a search query, immediately adjacent to each code-share flight in that search-results list. Roll-over, pop-up and linked disclosures do not comply with this paragraph.
            (3) For static written schedules, each flight in scheduled passenger air transportation that is operated by a carrier other than the one listed for that flight shall be identified by an asterisk or other easily identifiable mark that leads to disclosure of the corporate name of the operating carrier and any other name under which that service is held out to the public.
            (4) Each air carrier and foreign air carrier that provides flight schedule information to any computer reservation system or global distribution system that receives and distributes the U.S. or foreign carrier's fare, schedule, or availability information shall ensure that each flight on which the designator code is not that of the operating carrier is clearly and prominently identified and the corporate name of the transporting carrier and any other name under which the service is held out to the public appears prominently in text format, with font size that is not smaller than the font size of the flight itinerary itself, immediately adjacent to each code-share flight in that search-results list.
            (b) Notice in oral communications with prospective consumers. In any direct oral communication in the United States with a prospective consumer, and in any telephone call placed from the United States by a prospective consumer, concerning a flight within, to, or from the United States that is part of a code-sharing arrangement or long-term wet lease, a ticket agent doing business in the United States or a carrier shall inform the consumer, the first time that such a flight is offered to the consumer, or, if no such offer was made, the first time a consumer inquires about such a flight, that the operating carrier is not the carrier whose name or designator code will appear on the ticket and shall identify the transporting carrier by its corporate name and any other name under which that service is held out to the public.
            (c) Notice in ticket confirmations. At the time of purchase, each selling carrier or ticket agent shall provide written disclosure of the actual operator of the flight to each consumer of scheduled passenger air transportation sold in the United States that involves a code-sharing arrangement or long-term wet lease. For any flight on which the designator code is not that of the operating carrier the notice shall state “Operated by” followed by the corporate name of the transporting carrier and any other name in which that service is held out to the public. The following form of statement will satisfy the requirement of this paragraph:

              Important Notice: Service between XYZ City and ABC City will be operated by Jane Doe Airlines d/b/a QRS Express. At the purchaser's request, the notice required by this part may be delivered in person, or by fax, electronic mail, or any other reliable method of transmitting written material.
            (d) In any written advertisement distributed in or mailed to or from the United States (including those that appear on an internet Web site that is marketed to consumers in the United States) for service in a city-pair market that is provided under a code-sharing arrangement or long-term wet lease, the advertisement shall prominently disclose that the advertised service may involve travel on another carrier and clearly indicate the nature of the service in reasonably sized type and shall identify all potential operating carriers involved in the markets being advertised by corporate name and by any other name under which that service is held out to the public. In any radio or television advertisement broadcast in the United States for service in a city-pair market that is provided under a code-sharing or long-term wet lease, the advertisement shall include at least a generic disclosure statement, such as “Some flights are operated by other airlines.”
            [Docket No. DOT-OST-2014-0056, 81 FR 76828, Nov. 3, 2016]

            § 257.6
            Effective and compliance dates.
            (a) This Part is effective as of August 25, 1999.
            (b) Compliance with the following sections is mandatory as of August 25, 1999:

            (1) § 257.1, § 257.2, § 257.3, § 257.4, § 257.5(d), and § 257.6.

            (2) § 257.5(b) to the extent that it requires sellers of air transportation to give consumers oral notice before booking transportation involving a code-share arrangement
            (i) Of the fact that the selling carrier is not the transporting carrier and
            (ii) Of the transporting carrier's identity (as shown by its two-letter designator code in CRS displays).
            (c) Compliance with the following sections is mandatory as of March 15, 2000:
            (1) § 257.5(a) and § 257.5(c) in their entirety.
            (2) § 257.5(b) insofar as it requires sellers of air transportation to give consumers
            (i) Oral notice before booking transportation involving a code-share arrangement of the transporting carrier's corporate name and any other name under which the service is held out to the public and
            (ii) The same disclosures for long-term wet leases as for code-sharing arrangements.
            [64 FR 46821, Aug. 27, 1999]

          Pt. 258
          PART 258—DISCLOSURE OF CHANGE-OF-GAUGE SERVICES

            Sec.
            258.1
            Purpose.
            258.2
            Applicability.
            258.3
            Definitions.
            258.4
            Unfair and deceptive practice.
            258.5
            Notice requirement.
            258.6
            Effective and compliance dates.

            Authority:
            49 U.S.C. 40113(a) and 41712.

            Source:
            64 FR 12860, Mar. 15, 1999, unless otherwise noted.

            § 258.1
            Purpose.
            The purpose of this part is to ensure that consumers are adequately informed before they book air transportation or embark on travel involving change-of-gauge services that these services require a change of aircraft en route.

            § 258.2
            Applicability.
            This part applies to the following:
            (a) Direct air carriers and foreign air carriers that sell or issue tickets in the United States for scheduled passenger air transportation on change-of-gauge services or that operate such transportation; and
            (b) Ticket agents doing business in the United States that sell or issue tickets for scheduled passenger air transportation on change-of-gauge services.

            § 258.3
            Definitions.
            As used in this part:
            (a) Air transportation has the meaning ascribed to it in 49 U.S.C. 40102(5).
            (b) Carrier means any air carrier or foreign air carrier as defined in 49 U.S.C. 40102(2) or 49 U.S.C. 40102(21), respectively, that engages directly in scheduled passenger air transportation.
            (c) Change-of-gauge service means a service that requires a change of aircraft en route but has only a single flight number.
            (d) Ticket agent has the meaning ascribed to it in 49 U.S.C. 40102(a)(45).
            [64 FR 12860, Mar. 15, 1999, as amended by Doc. No. DOT-OST-2014-0140, 84 FR 15933, Apr. 16, 2019]

            § 258.4
            Unfair and deceptive practice.
            The holding out or sale of scheduled passenger air transportation that involves change-of-gauge service is prohibited as an unfair or deceptive practice or an unfair method of competition within the meaning of 49 U.S.C. 41712 unless, in conjunction with such holding out or sale, carriers and ticket agents follow the requirements of this part.

            § 258.5
            Notice requirement.
            (a) Notice in schedules. Carriers holding out or operating change-of-gauge services to, from, or within the United States shall ensure that in the written and electronic schedule information they provide to the public, to the Official Airline Guide and comparable publications, and to computer reservations systems, these services are shown as requiring a change of aircraft.
            (b) Oral notice to prospective consumers. In any direct oral communication with a consumer in the United States concerning a change-of-gauge service, any carrier or ticket agent doing business in the United States shall tell the consumer before booking scheduled passenger air transportation to, from, or within the United States that the service requires a change of aircraft en route.
            (c) Written notice. At the time of sale in the United States of transportation that includes a change-of-gauge service to, from, or within the United States, or, if no ticket is issued, no later than the time when the passenger checks in at the airport for the first flight in an itinerary that includes such a service, the selling carrier or ticket agent shall provide the following written notice:

              Notice: Change of Aircraft Required
              For at least one of your flights, you must change aircraft en route even though your ticket may show only one flight number and have only one flight coupon for that flight. Further, in the case of some travel, one of your flights may not be identified at the airport by the number on your ticket, or it may be identified by other flight numbers in addition to the one on your ticket. At your request, the seller of this ticket will give you details of your change of aircraft, such as where it will occur and what aircraft types are involved.

            § 258.6
            Effective and compliance dates.
            (a) This Part is effective as of August 25, 1999.
            (b) Compliance with the following sections is mandatory as of August 25, 1999: § § 258.1, 258.2, 258.3, 258.4, 258.5(a), 258.5(b), and 258.6.
            (c) Compliance with § 258.5(c) is mandatory as of March 15, 2000.
            [64 FR 46821, Aug. 27, 1999]

          Pt. 259
          PART 259—ENHANCED PROTECTIONS FOR AIRLINE PASSENGERS

            Sec.
            259.1
            Purpose.
            259.2
            Applicability.
            259.3
            Definitions.
            259.4
            Contingency plan for lengthy tarmac delays.
            259.5
            Customer Service Plan.
            259.6
            Posting of contracts of carriage, tarmac delay contingency plans and customer service plans on websites.
            259.7
            Response to consumer problems.
            259.8
            Notify passengers of known delays, cancellations, and diversions.

            Authority:
            49 U.S.C. 40101(a)(4), 40101(a)(9), 40113(a), 41702, and 41712.

            Source:
            74 FR 69002, Dec. 30, 2009, unless otherwise noted.

            § 259.1
            Purpose.
            The purpose of this part is to mitigate hardships for airline passengers during lengthy tarmac delays and otherwise to bolster air carriers' accountability to consumers.

            § 259.2
            Applicability.
            This part applies to all the flights of a certificated or commuter air carrier if the carrier operates scheduled passenger service or public charter service using any aircraft originally designed to have a passenger capacity of 30 or more seats, and to all flights to and from the U.S. of a foreign carrier if the carrier operates scheduled passenger service or public charter service to and from the U.S. using any aircraft originally designed to have a passenger capacity of 30 or more seats, except as otherwise provided in this part. This part does not apply to foreign carrier charters that operate to and from the United States if no new passengers are picked up in the United States.
            [Doc. No. DOT-OST-2010-0140, 76 FR 23163, Apr. 25, 2011]

            § 259.3
            Definitions.

              Certificated air carrier means a U.S. carrier holding a certificate issued under 49 U.S.C. 41102 to conduct passenger service or holding an exemption to conduct passenger operations under 49 U.S.C. 41102.

              Commuter air carrier means a U.S. carrier that has been found fit under 49 U.S.C. 41738 and is authorized to carry passengers on at least five round trips per week on at least one route between two or more points according to a published flight schedule using small aircraft as defined in 14 CFR 298.2.

              Covered carrier means a certificated carrier, a commuter carrier, or a foreign air carrier operating to, from or within the United States, conducting scheduled passenger service or public charter service with at least one aircraft having a designed seating capacity of 30 or more seats.

              Foreign air carrier means a carrier that is not a citizen of the United States as defined in 49 U.S.C. 40102(a) that holds a foreign air carrier permit issued under 49 U.S.C. 41302 or an exemption issued under 49 U.S.C. 40109 authorizing direct foreign air transportation.

              Large hub airport means an airport that accounts for at least 1.00 percent of the total enplanements in the United States.

              Medium hub airport means an airport accounting for at least 0.25 percent but less than 1.00 percent of the total enplanements in the United States.

              Non-hub airport means an airport with 10,000 or more annual enplanements but less than 0.05 percent of the country's annual passenger boardings.

              Small hub airport means an airport accounting for at least 0.05 percent but less than 0.25 percent of the total enplanements in the United States.

              Tarmac delay means the holding of an aircraft on the ground either before taking off or after landing with no opportunity for its passengers to deplane.
            [Doc. No. DOT-OST-2010-0140, 76 FR 23164, Apr. 25, 2011]

            § 259.4
            Contingency Plan for Lengthy Tarmac Delays.
            (a) Adoption of Plan. Each covered carrier shall adopt a Contingency Plan for Lengthy Tarmac Delays for its scheduled and public charter flights at each U.S. large hub airport, medium hub airport, small hub airport and non-hub airport at which it operates or markets such air service and shall adhere to its plan's terms.
            (b) Contents of Plan. Each Contingency Plan for Lengthy Tarmac Delays shall include, at a minimum, the following:
            (1) For domestic flights, assurance that the covered U.S. air carrier will not permit an aircraft to remain on the tarmac for more than three hours before allowing passengers to deplane unless:
            (i) The pilot-in-command determines there is a safety-related or security-related reason (e.g. weather, a directive from an appropriate government agency) why the aircraft cannot leave its position on the tarmac to deplane passengers; or
            (ii) Air traffic control advises the pilot-in-command that returning to the gate or another disembarkation point elsewhere in order to deplane passengers would significantly disrupt airport operations.
            (2) For international flights operated by covered carriers that depart from or arrive at a U.S. airport, assurance that the carrier will not permit an aircraft to remain on the tarmac at a U.S. airport for more than four hours before allowing passengers to deplane, unless:
            (i) The pilot-in-command determines there is a safety-related or security-related reason why the aircraft cannot leave its position on the tarmac to deplane passengers; or
            (ii) Air traffic control advises the pilot-in-command that returning to the gate or another disembarkation point elsewhere in order to deplane passengers would significantly disrupt airport operations.
            (3) For all flights, assurance that the carrier will provide adequate food and potable water no later than two hours after the aircraft leaves the gate (in the case of a departure) or touches down (in the case of an arrival) if the aircraft remains on the tarmac, unless the pilot-in-command determines that safety or security considerations preclude such service;
            (4) For all flights, assurance of operable lavatory facilities, as well as adequate medical attention if needed, while the aircraft remains on the tarmac;
            (5) For all flights, assurance that the passengers on the delayed flight will receive notifications regarding the status of the delay every 30 minutes while the aircraft is delayed, including the reasons for the tarmac delay, if known;
            (6) For all flights, assurance that the passengers on the delayed flight will be notified beginning 30 minutes after scheduled departure time (including any revised departure time that passengers were notified about before boarding) and every 30 minutes thereafter that they have the opportunity to deplane from an aircraft that is at the gate or another disembarkation area with the door open if the opportunity to deplane actually exists;
            (7) Assurance of sufficient resources to implement the plan; and

            (8) Assurance that the plan has been coordinated with airport authorities (including terminal facility operators where applicable) at each U.S. large hub airport, medium hub airport, small hub airport and non-hub airport that the carrier serves, as well as its regular U.S. diversion airports;
            (9) Assurance that the plan has been coordinated with U.S. Customs and Border Protection (CBP) at each large U.S. hub airport, medium hub airport, small hub airport and non-hub airport that is regularly used for that carrier's international flights, including diversion airports; and
            (10) Assurance that the plan has been coordinated with the Transportation Security Administration (TSA) at each U.S. large hub airport, medium hub airport, small hub airport and non-hub airport that the carrier serves, including diversion airports.
            (c) Code-Share Responsibility. The tarmac delay contingency plan of the carrier under whose code the service is marketed governs, if different from the operating carrier, unless the marketing carrier specifies in its contract of carriage that the operating carrier's plan governs.
            (d) Amendment of plan. At any time, a carrier may amend its Contingency Plan for Lengthy Tarmac Delays to decrease the time for aircraft to remain on the tarmac for domestic flights covered in paragraph (b)(1) of this section, for aircraft to remain on the tarmac for international flights covered in paragraph (b)(2) of this section, and for the trigger point for food and water covered in paragraph (b)(3) of this section. A carrier may also amend its plan to increase these intervals (up to the limits in this section), in which case the amended plan shall apply only to departures that are first offered for sale after the plan's amendment.
            (e) Retention of records. Each carrier that is required to adopt a Contingency Plan for Lengthy Tarmac Delays shall retain for two years the following information about any tarmac delay that lasts more than three hours:
            (1) The length of the delay;
            (2) The precise cause of the delay;
            (3) The actions taken to minimize hardships for passengers, including the provision of food and water, the maintenance and servicing of lavatories, and medical assistance;
            (4) Whether the flight ultimately took off (in the case of a departure delay or diversion) or returned to the gate; and

            (5) An explanation for any tarmac delay that exceeded 3 hours (i.e., why the aircraft did not return to the gate by the 3-hour mark).
            (f) Unfair and deceptive practice. A carrier's failure to comply with the assurances required by this section and contained in its Contingency Plan for Lengthy Tarmac Delays will be considered to be an unfair and deceptive practice within the meaning of 49 U.S.C. 41712 that is subject to enforcement action by the Department.
            [Doc. No. DOT-OST-2010-0140, 76 FR 23164, Apr. 25, 2011; Doc. No. DOT-OST-2014-0140, 84 FR 15933, Apr. 16, 2019]

            § 259.5
            Customer Service Plan.
            (a) Adoption of Plan. Each covered carrier shall adopt a Customer Service Plan applicable to its scheduled flights and shall adhere to the plan's terms.
            (b) Contents of Plan. Each Customer Service Plan shall address the following subjects and comply with the minimum standards set forth:
            (1) Disclosing on the carrier's website, at the ticket counter, or when a customer calls the carrier's reservation center to inquire about a fare or to make a reservation, that the lowest fare offered by the carrier may be available elsewhere if that is the case;
            (2) Notifying consumers of known delays, cancellations, and diversions as required by 14 CFR 259.8 of this chapter;
            (3) Delivering baggage on time, including making every reasonable effort to return mishandled baggage within twenty-four hours, compensating passengers for reasonable expenses that result due to delay in delivery, as required by 14 CFR part 254 for domestic flights and as required by applicable international agreements for international flights, and reimbursing passengers for any fee charged to transport a bag if that bag is lost;

            (4) Allowing reservations to be held at the quoted fare without payment, or cancelled without penalty, for at least twenty-four hours after the reservation is made if the reservation is made one week or more prior to a flight's departure;

            (5) Where ticket refunds are due, providing prompt refunds, as required by 14 CFR 374.3 and 12 CFR part 226 for credit card purchases, and within 20 days after receiving a complete refund request for cash and check purchases, including refunding fees charged to a passenger for optional services that the passenger was unable to use due to an oversale situation or flight cancellation;
            (6) Properly accommodating passengers with disabilities, as required by part 382 of this chapter, and other special-needs passengers as set forth in the carrier's policies and procedures, including during lengthy tarmac delays;
            (7) Meeting customers' essential needs during lengthy tarmac delays as required by § 259.4 of this chapter and as provided for in each covered carrier's contingency plan;
            (8) Handling “bumped” passengers with fairness and consistency in the case of oversales as required by part 250 of this chapter and as described in each carrier's policies and procedures for determining boarding priority;
            (9) Disclosing cancellation policies, frequent flyer rules, aircraft seating configuration, and lavatory availability on the selling carrier's website, and upon request, from the selling carrier's telephone reservations staff;
            (10) Notifying consumers in a timely manner of changes in their travel itineraries;
            (11) Ensuring responsiveness to consumer problems as required by § 259.7 of this chapter; and
            (12) Identifying the services it provides to mitigate passenger inconveniences resulting from flight cancellations and misconnections.
            (c) Self-auditing of plan and retention of records. Each carrier that is required to adopt a Customer Service Plan shall audit its own adherence to its plan annually. Carriers shall make the results of their audits available for the Department's review upon request for two years following the date any audit is completed.
            [Doc. No. DOT-OST-2010-0140, 76 FR 23165, Apr. 25, 2011; 76 FR 45181, July 28, 2011]

            § 259.6
            Posting of Contracts of Carriage, Tarmac Delay Contingency Plans and Customer Service Plans on websites.
            (a) Each U.S. air carrier that has a website and each foreign air carrier that has a website marketed to U.S. consumers, and that is required to adopt a contingency plan for lengthy tarmac delays, shall post its current contingency plan on its website in easily accessible form.
            (b) Each U.S. air carrier that has a website and each foreign air carrier that has a website marketed to U.S. consumers, and that is required to adopt a customer service plan, shall post its current customer service plan on its website in easily accessible form.
            (c) Each U.S. air carrier that has a website and each foreign air carrier that has a website marketed to U.S. consumers shall post its current contract of carriage on its website in easily accessible form.
            [Doc. No. DOT-OST-2010-0140, 76 FR 23165, Apr. 25, 2011]

            § 259.7
            Response to consumer problems.
            (a) Designated advocates for passengers' interests. Each covered carrier shall designate for its scheduled flights an employee who shall be responsible for monitoring the effects of flight delays, flight cancellations, and lengthy tarmac delays on passengers. This employee shall have input into decisions on which flights to cancel and which will be delayed the longest.
            (b) Informing consumers how to complain. Each covered carrier shall make available the mailing address and e-mail or web address of the designated department in the airline with which to file a complaint about its scheduled service. This information shall be provided on the U.S. carrier's website (if any) and the foreign carrier's website (if marketed to U.S. consumers), on all e-ticket confirmations and, upon request, at each ticket counter and boarding gate staffed by the carrier or a contractor of the carrier.
            (c) Response to complaints. Each covered carrier shall acknowledge in writing receipt of each complaint regarding its scheduled service to the complainant within 30 days of receiving it and shall send a substantive written response to each complainant within 60 days of receiving the complaint. A complaint is a specific written expression of dissatisfaction concerning a difficulty or problem which the person experienced when using or attempting to use an airline's services.
            (d) Social networking sites. Each covered carrier that uses a social networking site (e.g. Facebook, Twitter) and that does not intend for that site to be a vehicle for receipt of written consumer complaints subject to this section shall clearly indicate on the carrier's primary page on that social networking site that it will not reply to consumer complaints on that site and shall direct consumers to the carrier's mailing address and e-mail or website location for filing written complaints.
            [Doc. No. DOT-OST-2010-0140, 76 FR 23165, Apr. 25, 2011]

            § 259.8
            Notify passengers of known delays, cancellations, and diversions.
            (a) Each covered carrier for its scheduled flights to, from or within the U.S. must promptly provide to passengers who are ticketed or hold reservations, and to the public, information about a change in the status of a flight within 30 minutes after the carrier becomes aware of such a change in the status of a flight. A change in the status of a flight means, at a minimum, a cancellation, diversion or delay of 30 minutes or more in the planned operation of a flight that occurs within seven calendar days of the scheduled date of the planned operation. The flight status information must at a minimum be provided in the boarding gate area for the flight at a U.S. airport, on the carrier's website, and via the carrier's telephone reservation system upon inquiry by any person.

            (1) With respect to any U.S. air carrier or foreign air carrier that permits passengers and other interested persons to subscribe to flight status notification services, the carrier must deliver such notification to such subscribers, by whatever means the carrier offers that the subscriber chooses.
            (2) The U.S. carrier or foreign air carrier shall incorporate such notification service commitment into its Customer Service Plan as specified in section 259.5 of this chapter.
            (b) For its scheduled flights to, from or within the U.S, within 30 minutes after the carrier becomes aware of a flight cancellation, a flight delay of 30 minutes or more, or a flight diversion, each covered carrier must update all flight status displays and other sources of flight information that are under the carrier's control at U.S. airports with information on that flight irregularity.
            (c) If an airport-controlled display system at a U.S. airport accepts flight status updates from carriers, covered carriers must provide flight irregularity information to that airport for the carrier's scheduled flights to, from or within the U.S. within 30 minutes after the carrier becomes aware of such a change in the status of a flight. Flight irregularity refers to flight cancellations, flight delays of 30 minutes or more, and diversions.
            [Doc. No. DOT-OST-2010-0140, 76 FR 23166, Apr. 25, 2011; Docket No. DOT-OST-2014-0056, 81 FR 76829, Nov. 3, 2016]

          Pt. 271
          PART 271—GUIDELINES FOR SUBSIDIZING AIR CARRIERS PROVIDING ESSENTIAL AIR TRANSPORTATION

            Sec.
            271.1
            Purpose.
            271.2
            Definitions.
            271.3
            Carrier subsidy need.
            271.4
            Carrier costs.
            271.5
            Carrier revenues.
            271.6
            Profit element.
            271.7
            Subsidy payout formula.
            271.8
            Rate period.
            271.9
            Discrimination prohibited.

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

            Source:
            ER-1398, 49 FR 49846, Dec. 24, 1984, unless otherwise noted.

            § 271.1
            Purpose.

            This part establishes the guidelines required by 49 U.S.C. 41736 to be used by the Department in establishing the fair and reasonable amount of compensation needed to ensure the continuation of essential air service to an eligible place under 49 U.S.C. 41731 and 41734. These guidelines are intended to cover normal carrier selection cases and rate renewal cases, and not necessarily emergency carrier selection cases.
            [60 FR 43524, Aug. 22, 1995]

            § 271.2
            Definitions.
            As used in this part:

              Eligible place means a place in the United States that meets the specified criteria outlined in 49 U.S.C. Chapter 417.

              Essential air service is that air transportation which the Department has found to be essential under Subchapter II of Chapter 417 of the Statute.
            [60 FR 43524, Aug. 22, 1995, as amended by Doc. No. DOT-OST-2014-0140, 84 FR 15933, Apr. 16, 2019]

            § 271.3
            Carrier subsidy need.
            In establishing the subsidy for an air carrier providing essential air service at an eligible place, the Department will consider the following:
            (a) The reasonable projected costs of a carrier in serving that place;
            (b) The carrier's reasonable projected revenues for serving that place;
            (c) The appropriate size of aircraft for providing essential air service at that place; and
            (d) A reasonable profit for a carrier serving that place.
            [ER-1398, 49 FR 49846, Dec. 24, 1984, as amended at 60 FR 43524, Aug. 22, 1995]

            § 271.4
            Carrier costs.
            (a) The reasonable costs projected for a carrier providing essential air service at an eligible place will be evaluated:
            (1) For costs attributable to the carrier's flying operations (direct expenses), by comparing the projected costs submitted by the carrier with the following:
            (i) The carrier's historical direct operating costs with the same or similar aircraft types;
            (ii) The direct operating unit costs of similar carriers using the same or similar equipment; and
            (iii) Data supplied by the manufacturer of the carrier's aircraft.
            (2) For other costs, by one or more of the following methods:
            (i) By direct assignment where the indirect costs are attributable to the carrier's operations at the eligible place;
            (ii) By comparing the carrier's systemwide indirect operating expenses to those submitted by the carrier for the eligible place; or
            (iii) By comparing the indirect operating expenses submitted by the carrier with the ratio of indirect to direct costs that have been experienced by the carrier in other markets or to costs that are representative of the industry.
            (3) By considering the unique circumstances of the carrier or the community being served that justify deviations from the costs that would otherwise be established for that carrier under this paragraph.
            (4) By determining whether the aircraft to be used by the carrier at the eligible place, and on which its costs are derived, are appropriate for providing essential air service there. The appropriateness of the aircraft to be used is based on the following characteristics of the eligible place:
            (i) Traffic levels;
            (ii) The level of air service that the Department has decided is essential for the eligible place;
            (iii) Distance to the designated hub;
            (iv) The altitude at which the carrier must fly to the designated hub; and
            (v) Other operational elements involved.
            (b) When the essential air service would be made part of the carrier's linear system, the Department might, instead of the factors in paragraph (a) of this section, consider only the incremental costs that the carrier will incur in adding that service to its system.
            [ER-1398, 49 FR 49846, Dec. 24, 1984, as amended at 60 FR 43524, 43525, Aug. 22, 1995]

            § 271.5
            Carrier revenues.
            (a) The projected passenger revenue for a carrier providing essential air service at an eligible place will be calculated by multiplying the following:

            (1) A reasonable projected net fare, which is the standard fare expected to be charged for service between the eligible place and the designated hub less any dilution caused by joint fare arrangements, discount fares that it offers, or prorates of fares for through one-line passengers; and

            (2) The traffic (including both local and beyond traffic) projected to flow between the eligible place and the designated hub or hubs, which is based on the carrier's own estimates, Department estimates, and on traffic levels in the market at issue when such data are available.
            (b) The reasonableness of a carrier's passenger revenue projections will be evaluated by:
            (1) Comparing the carrier's proposed fare with the fare charged in other city-pair markets of similar distances and traffic densities; and
            (2) Comparing the carrier's proposed pricing structure with historical pricing practices in the market at issue, with the pricing practices of that carrier in other markets, and with any standard industry pricing guidelines that may be available.
            (c) An estimate of freight and other transport-related revenue will be included as a component of projected revenues and will be based on recent experience in the market involved and on the experience of the carrier involved in other markets.
            [ER-1398, 49 FR 49846, Dec. 24, 1984, as amended at 60 FR 43524, Aug. 22, 1995]

            § 271.6
            Profit element.
            The reasonable return for a carrier for providing essential air service at an eligible place generally will be set at a flat percentage, typically 5 percent of that carrier's projected operating costs as established under § 271.4, plus any applicable interest expenses on flight equipment.
            [ER-1398, 49 FR 49846, Dec. 24, 1984, as amended at 60 FR 43524, 43525, Aug. 22, 1995]

            § 271.7
            Subsidy payout formula.
            (a) Subsidy will be paid by the Department to the air carrier monthly, based on the subsidy rate established by the Department for the carrier under this part. Payments will not vary except as provided in this section.
            (b) While a carrier's subsidy rate will not vary even if actual revenues or costs differ from projections, the actual amount of each payment may vary depending on the following factors:
            (1) Seasonal characteristics of the carrier's operations at the eligible place;
            (2) The actual number of flights completed, aircraft miles flown, available seat-miles flown, or variations in other operational elements upon which the subsidy rate is based; or
            (3) Adjustments to the carrier's subsidy required by § 271.8(b).
            (c) Payments will continue for the duration of the rate term established under § 271.8 provided that the carrier continues to provide the required service.
            [ER-1398, 49 FR 49846, Dec. 24, 1984, as amended at 60 FR 43524, 43525, Aug. 22, 1995]

            § 271.8
            Rate period.
            (a) The subsidy rate generally will be set for a 2-year period, or two consecutive 1-year periods. The Department may set the rate for a shorter period in the following situations:
            (1) A commuter air carrier is replacing a larger certificated carrier at the eligible place;
            (2) Traffic at the eligible place has substantially decreased;
            (3) The Department considers the cost or revenue projections of the carrier for the second year to be unrealistic;
            (4) It is likely that there will be changes in the eligible place essential air service level; or
            (5) The uncertainties of the market or other circumstances warrant a shorter rate period.
            (b) The subsidy rate established for a carrier under this part will not be changed during the rate period unless an adjustment is required in the public interest.
            (c) At the end of the rate period, the carrier will not have a continuing right to receive subsidy for providing essential air service at the eligible place.
            [ER-1398, 49 FR 49846, Dec. 24, 1984, as amended at 60 FR 43524, 43525, Aug. 22, 1995]

            § 271.9
            Discrimination prohibited.
            (a) All air carriers receiving subsidy under this part shall comply with the following:
            (1) The Age Discrimination Act of 1975;

            (2) The Civil Rights Act of 1964 and 49 CFR part 21; and
            (3) The Rehabilitation Act of 1973, 49 CFR part 27, and part 382 of this chapter.
            (b) Within 1 year after it first receives a subsidy under this part, the carrier shall evaluate its practices and procedures for accommodating the handicapped in accordance with § 382.23 of this chapter.
            (c) All air carriers seeking a subsidy under this part shall include in their subsidy application the assurances required by 49 CFR parts 20, 21, 27 and 29, and § 382.21 of this chapter.
            [ER-1398, 49 FR 49846, Dec. 24, 1984, as amended at 60 FR 43525, Aug. 22, 1995]

          PART 272—[Reserved]

          Pt. 291
          PART 291—CARGO OPERATIONS IN INTERSTATE AIR TRANSPORTATION

              Subpart A—General
              Sec.
              291.1
              Applicability.
              291.2
              Definitions.

              Subpart B—All-Cargo Air Transportation Certificates
              291.10
              Applications.

              Subpart C—General Rules for All-Cargo Air Transportation
              291.20
              Applicability.
              291.22
              Aircraft accident liability insurance requirement.
              291.23
              Record retention.
              291.24
              Waiver of Department Economic Regulations.

              Subpart D—Exemptions for Cargo Operations in Interstate Air Transportation
              291.30
              General.
              291.31
              Exemptions from the Statute.

              Subpart E—Reporting Rules
              291.40
              [Reserved]
              291.41
              Financial and statistical reporting—general.
              291.42
              Section 41103 financial and traffic reporting.
              291.43
              Statement of operation for section 41103 operations.
              291.44
              BTS Schedule P-12(e), Fuel Consumption by Type of Service and Entity.
              291.45
              BTS Schedule T-100, U.S. Air Carrier Traffice and Capacity Data by Nonstop Segment and On-Flight Market.
              Appendix A to Subpart E of Part 191—Instructions to U.S. Air Carriers for Reporting Traffic and Capacity Data on Schedule T-100

              Subpart F—Enforcement
              291.50
              Enforcement.

              Subpart G—Public Disclosure of Data
              291.60
              Public disclosure of data.

            Authority:
            49 U.S.C. 329, 41103, 41708, and 41709.

            Source:
            ER-1080, 43 FR 53635, Nov. 16, 1978, unless otherwise noted.

            Subpart A—General

              § 291.1
              Applicability.
              This part applies to cargo operations in interstate air transportation by air carriers certificated under section 41102 or 41103 of 49 U.S.C. Subtitle VII. It also applies to applicants for an all-cargo air transportation certificate under section 41103 of 49 U.S.C. Subtitle VII.
              [60 FR 43525, Aug. 22, 1995, as amended by Doc. No. DOT-OST-2014-0140, 84 FR 15933, Apr. 16, 2019]

              § 291.2
              Definitions.

                All-cargo air transportation means the transportation by aircraft in interstate air transportation of only property or only mail, or both.

                Interstate air transportation means the transportation of passengers or property by aircraft as a common carrier for compensation, or the transportation of mail by aircraft—
              (1) Between a place in—
              (i) A State, territory, or possession of the United States and a place in the District of Columbia or another State, territory, or possession of the United States;
              (ii) Hawaii and another place in Hawaii through the airspace over a place outside Hawaii;
              (iii) The District of Columbia and another place in the District of Columbia; or

              (iv) A territory or possession of the United States and another place in the same territory or possession; and

              (2) When any part of the transportation is by aircraft.

                Reporting carrier for Schedule T-100 purposes means the air carrier in operational control of the aircraft, i.e., the carrier that uses its flight crew under its own FAA operating authority.

                Section 41102 carrier means an air carrier certificated under section 41102 of 49 U.S.C. Subtitle VII to transport persons, property and mail or property and mail only.

                Section 41103 carrier means an air carrier holding a certificate issued under section 41103 of 49 U.S.C. Subtitle VII to provide all-cargo air transportation.

                Service, scheduled cargo means transport service operated pursuant to published flight schedules including extra sections. There is no requirement on the number of weekly flights nor is there a requirement that the schedule be published in the Official Airline Guide.

                Wet-Lease Agreement means an agreement under which one carrier leases an aircraft with flight crew to another air carrier.
              [60 FR 43525, Aug. 22, 1995, as amended at 67 FR 49226, July 30, 2002; Doc. No. DOT-OST-2014-0140, 84 FR 15933, Apr. 16, 2019]

            Subpart B—All-Cargo Air Transportation Certificates

              § 291.10
              Applications.
              Applications for all-cargo air service certificates shall comply with the provisions of part 201 and subpart B of part 302 of this chapter with regard to filing procedures, and with the provisions of part 204 of this chapter with regard to evidentiary requirements.
              (Approved by the Office of Management and Budget under control number 2106-0023)
              [Doc. No. 47582, 57 FR 38770, Aug. 27, 1992, as amended at 65 FR 6456, Feb. 9, 2000]

            Subpart C—General Rules for All-Cargo Air Transportation

              § 291.20
              Applicability.
              The rules in this subpart apply to cargo operations in interstate air transportation performed by air carriers certificated under sections 41102 or 41103 of 49 U.S.C. Subtitle VII. Section 41103 carriers that operate passenger-only or combination aircraft under section 41102, part 298 of this chapter, or other Department authority, must comply with the rules in this subpart in connection with cargo operations in interstate air transportation, whether provided on all-cargo or combination aircraft, operated pursuant to this authority or otherwise. In case a carrier may operate a particular flight under either a section 41102 certificate or a section 41103 certificate, the flight is presumed to be operated under the carrier's section 41103 authority.
              [60 FR 43526, Aug. 22, 1995 as amended by Doc. No. DOT-OST-2014-0140, 84 FR 15933, Apr. 16, 2019]

              § 291.22
              Aircraft accident liability insurance requirement.
              No air carrier shall operate all-cargo aircraft or provide all-cargo air transportation unless such carrier has and maintains in effect aircraft accident liability coverage that meets the requirements of part 205 of this chapter.
              [ER-1255, 46 FR 52583, Oct. 27, 1981, as amended at 60 FR 43526, Aug. 22, 1995]

              § 291.23
              Record retention.
              (a) The provisions of 14 CFR part 249, Preservation of air carrier accounts, records and memoranda, shall apply to all carriers, except that records pertaining to transportation provided on aircraft eligible to be operated under part 298 of this title, and records concerning transportation outside the geographic scope of interstate air transportation, need not be maintained unless required by other Department regulations.

              (b) Each carrier shall retain for 1 year a copy of each rate sheet, airwaybill contract, and other document reflecting changed, new, or other previously unreported general or special prices or rules governing the carriage of freight in interstate air transportation (except mail), unless the transportation was performed in accordance with an effective tariff on file with the Department. Each carrier shall retain for 1 year a copy of any formula based on standard weight, mileage, or other method used to determine an individual airbill or contract.
              (Approved by the Office of Management and Budget under control number 3024-0022)
              [ER-1080, 43 FR 53635, Nov. 16, 1978, as amended by ER-1270, 46 FR 63220, Dec. 31, 1981; Doc. No. 47582, 57 FR 38770, Aug. 27, 1992; 60 FR 43526, Aug. 22, 1995]

              § 291.24
              Waiver of Department Economic Regulations.
              Except for this part and those parts of the Department's Economic Regulations (parts 200 through 299 of this title) specifically referred to in this part, carriers providing cargo operations in interstate air transportation are, with respect to that transportation, relieved from all obligations imposed on air carriers by those economic regulations. Flights operated entirely within interstate air transportation shall be free from those obligations, even though they may also carry shipments to or from points outside that geographic area. This waiver shall not apply to the requirements of part 239 of this title.
              [ER-1080, 43 FR 53635, Nov. 16, 1978, as amended by Doc. No. 47582, 57 FR 38770, Aug. 27, 1992; 60 FR 43526, Aug. 22, 1995]

            Subpart D—Exemptions for Cargo Operations in Interstate Air Transportation

              § 291.30
              General.
              The following exemptions, except as otherwise specifically noted, apply only to cargo operations in interstate air transportation. They do not relieve a carrier from obligations derived from other transportation.
              [ER-1080, 43 FR 53635, Nov. 16, 1978, as amended at 60 FR 43526, Aug. 22, 1995]

              § 291.31
              Exemptions from the Statute.
              (a) Each section 41102 or 41103 air carrier providing cargo operations in interstate air transportation is, with respect to such transportation, exempted from the following portions of 49 U.S.C. Subtitle VII only if and so long as it complies with the provisions of this part and the conditions imposed herein, and to the extent necessary to permit it to conduct cargo operations in interstate air transportation:
              (1) Sections 41310, 41705,
              (2) Chapter 415, and
              (3) Chapter 419 for all-cargo operations under section 41103.
              (b) Each air carrier providing cargo operations in interstate air transportation under section 41103 of 49 U.S.C. Subtitle VII is exempted from the provisions of section 41106(a) of 49 U.S.C. Subtitle VII to the extent necessary to permit it to compete for and operate cargo charters in interstate air transportation for the Department of Defense under contracts of more than 30 days' duration.
              (c) The Department of Defense is exempted from section 41106(a) of 49 U.S.C. Subtitle VII to the extent necessary to permit it to negotiate and enter into contracts of more than 30 days' duration with any section 41103 carrier for operation of cargo charters in interstate air transportation.
              [60 FR 43526, Aug. 22, 1995, as amended by Doc. No. DOT-OST-2014-0140, 84 FR 15933, Apr. 16, 2019]

            Subpart E—Reporting Rules

              § 291.40
              [Reserved]

              § 291.41
              Financial and statistical reporting—general.
              (a) Carriers providing cargo operations in interstate air transportation that also conduct other operations under section 41102 shall comply with the provisions of part 241 of this title.
              (b) Carriers providing cargo operations in interstate air transportation under section 41103 certificates shall comply with § 291.42.
              (c) Carriers providing cargo operations in interstate air transportation under section 41103, and also providing other services under part 298 of this title, shall report their cargo operations in interstate air transportation operations in accordance with § 291.42, and shall report all other traffic in accordance with the provisions of subpart F of part 298.
              [ER-1080, 43 FR 53635, Nov. 16, 1978, as amended at 60 FR 43526, Aug. 22, 1995]

              § 291.42
              Section 41103 financial and traffic reporting.
              (a) General instructions. Carriers operating under section 41103 certificates that are not subject to part 241 of this chapter shall file Form 291-A, “Statement of Operations for Section 41103 Operations”, Schedule T-100, “U.S. Air Carrier Traffic and Capacity Data by Nonstop Segment and On-Flight Market”, and Schedule P-12(a), “Fuel Consumption by Type of Service and Entity” with the Department's Bureau of Transportation Statistics (BTS).
              (1) A single copy of the BTS Form 291-A report shall be filed annually with the Office of Airline Information (OAI) for the year ended December 31, to be received on or before February 10 of the immediately following year. A single copy of the monthly BTS Schedule P-12(a) is due at OAI within 20 days after the end of each month. An electronic filing of the monthly Schedule T-100 is due at OAI within 30 days after the end of each month. Due dates falling on a Saturday, Sunday or Federal holiday will become effective on the next work day.
              (2) Reports required by this section shall be submitted to the Bureau of Transportation Statistics in a format specified in accounting and reporting directives issued by the Bureau of Transportation Statistics' Director of Airline Information.
              (b) Statement of Operations and Statistics Summary for section 41103 operations. This statement shall include the following elements:
              (1) Total operating revenue, categorized as follows:
              (i) Transport revenues from the carriage of property in scheduled and nonscheduled service;
              (ii) Transport revenue from the carriage of mail in scheduled and nonscheduled service; and
              (iii) Transport-related revenues.
              (2) Total operating expenses;
              (3) Operating profit or loss, computed by subtracting the total operating expenses from the total operating revenues; and
              (4) Net income, computed by subtracting the total operating and nonoperating expenses, including interest expenses and income taxes, from the total operating and nonoperating revenues.
              (c) Summary of traffic and capacity statistics. This summary shall include the following elements:
              (1) Total revenue ton-miles, which are the aircraft miles flown on each flight stage times the number of tons of revenue traffic carried on that stage. They shall be categorized as follows:
              (i) Property; and
              (ii) Mail.
              (2) Revenue tons enplaned, reflecting the total revenue tons of cargo loaded on aircraft during the annual period;
              (3) Available ton-miles, reflecting the total revenue ton-miles available for all-cargo service during the annual period, and computed by multiplying aircraft miles flown on each flight stage by the number of tons of aircraft capacity available for that stage;
              (4) Aircraft miles flown, reflecting the total number of aircraft miles flown in cargo service during the annual period;
              (5) Aircraft departures performed, reflecting the total number of take-offs performed in cargo service during the annual period; and
              (6) Aircraft hours airborne, reflecting the aircraft hours of flight (from takeoff to landing) performed in cargo service during the annual period.
              [ER-1350, 48 FR 32757, July 19, 1983, as amended by Doc. No. 47582, 57 FR 38770, Aug. 27, 1992; 60 FR 43526, Aug. 22, 1995; 60 FR 66726, Dec. 26, 1995; 67 FR 49226, July 30, 2002; 75 FR 41585, July 16, 2010]

              § 291.43
              Statement of operation for section 41103 operations.
              Form 291-A contains the following data elements:
              (a) Total operating revenue, categorized as follows:
              (1) Transport revenues from the carriage of property in scheduled and nonscheduled service;
              (2) Transport revenues from the carriage of mail in scheduled and nonscheduled service; and
              (3) Transport-related revenues;
              (b) Total operating expenses;
              (c) Operating profit or loss, computed by subtracting the total operating expenses from the total operating revenues; and

              (d) Net income, computed by subtracting the total operating and nonoperating expenses, including interest expenses and income taxes, from the total operating and nonoperating revenues.
              [Doc. No. OST-98-4043, 67 FR 49227, July 30, 2002]

              § 291.44
              BTS Schedule P-12(a), Fuel Consumption by Type of Service and Entity.
              (a) For the purposes of BTS schedule P-12(a), type of service shall be either scheduled service or nonscheduled service as those terms are defined in § 291.45(c)(2) and (3).
              (b) For the purpose of this schedule, scheduled service shall be reported separately for:
              (1) Intra-Alaskan operations;
              (2) Domestic operations, which shall include all operations within and between the 50 States of the United States (except Intra-Alaska), the District of Columbia, the Commonwealth of Puerto Rico and the United States Virgin Islands, or a U.S. territory or possession to a place in any State of the United States the District of Columbia, the Commonwealth of Puerto Rico and the United States Virgin Islands, or a U.S. territory or possession;
              (3) International operations are flight stages with one or both terminals outside the 50 States of the United States, the District of Columbia, the Commonwealth of Puerto Rico and the United States Virgin Islands, or a U.S. territory or possession.
              (c) For the purpose of this schedule, nonscheduled service shall be reported separately for domestic operations and international operations as defined in paragraphs (b)(2) and (b)(3) of this section, except that domestic and international Military Airlift Command (MAC) operations shall be reported on separate lines.
              (d) The cost data reported on each line shall represent the average cost of fuel, as determined at the station level, consumed in that geographic entity.
              (e)(1) The cost of fuel shall include shrinkage, but excludes:
              (i) “Throughput” and “in to plane” fees, i.e., service charges or gallonage levies assessed by or against the fuel vendor or concessionaire and passed on to the carrier in a separately identifiable form; and
              (ii) Nonrefundable Federal and State excise taxes.
              (2) However, “through-put” and “in to plane” charges that cannot be identified or segregated from the cost of fuel shall remain a part of the cost of fuel as reported on this schedule.
              (f) Each air carrier shall maintain records for each station showing the computation of fuel inventories and consumption for each fuel type. The periodic average cost method shall be used in computing fuel inventories and consumption. Under this method, an average unit cost for each fuel type shall be computed by dividing the total cost of fuel available (Beginning Inventory plus Purchases) by the total gallons available. The resulting unit cost shall then be used to determine the ending inventory and the total consumption costs to be reported on this schedule.
              (g) Where amounts reported for a specific entity include other than Jet A fuel, a footnote shall be added indicating the number of gallons and applicable costs of such other fuel included in amounts reported for that entity.
              (h) Where any adjustment(s) recorded on the books of the carrier results in a material distortion of the current month's schedule, carriers shall file a revised Schedule P-12(a) for the month(s) affected.
              [Doc. No. OST-98-4043, 67 FR 49227, July 30, 2002]

              § 291.45
              BTS Schedule T-100, U.S. Air Carrier Traffic and Capacity Data by Nonstop Segment and On-Flight Market.
              (a) Each section 41103 all-cargo air carrier shall file Schedule T-100, “U.S. Air Carrier Traffic and Capacity Data by Nonstop Segment and On-Flight Market”.
              (b) Schedule T-100 shall be filed monthly.

              (1) Schedule T-100 collects summarized flight stage data and on-flight market data for revenue flights. All traffic statistics shall be compiled in terms of each flight stage as actually performed. The detail T-100 data shall be maintained in such a manner as to permit monthly summarization and organization into two basic groupings. First, the nonstop segment information which is to be summarized by equipment type, within class of service, within pair-of-points, without regard to individual flight number. The second grouping requires that the enplanement/deplanement information be broken out into separate units called on-flight market records, which shall be summarized by class of service, within pair-of-points, without regard for equipment type or flight number.
              (2) Joint-service operations. The Department may authorize joint-service operations between two direct air carriers. Examples of these joint-service operations are: blocked-space agreements; part-charter agreements; code-sharing agreements; wet-lease agreements, and similar arrangements.
              (i) Joint-service operations are reported by the carrier in operational control of the flight, i.e., the carrier that uses its flight crews under its own FAA operating authority. The traffic moving under these agreements is reported on Schedule T-100 the same way as any other traffic on the aircraft.
              (ii) If there are questions about reporting a joint-service operation, contact the BTS Assistant Director—Airline Information (fax no. 202 366-3383, telephone no. 202 366-4373). Joint-service operations are reported in Schedule T-100 in accordance with this paragraph (b).
              (iii) Operational control. The air carrier in operational control of the aircraft (the carrier that uses its flight crews under its own FAA operating authority) must report joint services.
              (c) Service classes. (1) The statistical classifications are designed to reflect the operating characteristics attributable to each distinctive type of service offered. The combination of scheduled and nonscheduled operations with passenger, all-cargo, and military services are placed into service classes as follows:

                  Code
                  Type of service

                  F
                  Scheduled Passenger/Cargo.

                  G
                  Scheduled All-Cargo.

                  L
                  Nonscheduled Civilian Passenger/Cargo/

                  P
                  Nonscheduled Civilian Cargo.

                  N
                  Nonscheduled Military Passenger/Cargo.

                  R
                  Nonscheduled Military Cargo.

              (2) Scheduled services include traffic and capacity elements applicable to air transportation provided pursuant to published schedules and extra sections of scheduled flights. Scheduled Passenger/Cargo (Service Class F) is a composite of first-class, coach, and mixed passenger/cargo service.
              (3) Nonscheduled services include all traffic and capacity elements applicable to the performance of nonscheduled aircraft charters, and other air transportation services not constituting an integral part of services performed pursuant to published flight schedules.
              (d) Air transport traffic and capacity elements. Within each of the service classifications, carriers shall report air transport traffic and capacity elements. The elements are reported on segment and/or market records as follows:

                  Code
                  Description
                  Segment
                  Market
                  Computed by DOT

                  Carrier, carrier entity code
                  S
                  M

                  Reporting period date
                  S
                  M

                  Origin airport code
                  S
                  M

                  Destination airport code
                  S
                  M

                  Service class code
                  S
                  M

                  Aircraft type code
                  S

                  110
                  Revenue passengers enplaned

                  M

                  130
                  Revenue passengers transported
                  S

                  140
                  Revenue passenger-miles

                  CFD*

                  210
                  Revenue cargo tons enplaned

                  CFD*

                  217
                  Enplaned freight

                  M

                  219
                  Enplaned mail

                  M

                  230
                  Revenue tons transported

                  CFD*

                  237
                  Transported freight
                  S

                  239
                  Transported mail
                  S

                  240
                  Revenue ton-miles

                  CFD*

                  241
                  Revenue ton-miles passenger

                  CFD*

                  247
                  Revenue ton-miles freight

                  CFD*

                  249
                  Revenue ton-miles mail

                  CFD*

                  270
                  Available capacity payload
                  S

                  280
                  Available ton-miles

                  CFD*

                  310
                  Available seats, total
                  S

                  320
                  Available seat-miles

                  CFD*

                  410
                  Revenue aircraft miles flown

                  CFD*

                  430
                  Revenue aircraft miles scheduled

                  CFD*

                  501
                  Inter-airport distance

                  CFD*

                  510
                  Revenue aircraft departures performed
                  S

                  520
                  Revenue aircraft departures scheduled
                  S

                  610
                  Revenue aircraft hours (airborne)
                  S

                  630
                  Aircraft hours (ramp-to-ramp)
                  S

                  650
                  Total aircraft hours (airborne)
                  S

                * CFD = Computed by DOT from detail Schedule T-100 and T-100(f) data.

              (e) These reported items are further described as follows:
              (1) Reporting period date. The year and month to which the reported data are applicable.
              (2) Carrier, Carrier entity code. Each air carrier shall report its name and entity code (a five digit code assigned by BTS that identifies both the air carrier and its entity) for its particular operations. The Office of Airline Information (OAI) will assign or confirm codes upon request. Such requests should be transmitted by e-mail to T100.Support@DOT.gov.

              (3) Service class code. The service class codes are prescribed in section 298.45(c). In general, classes are divided into two broad categories, either scheduled or nonscheduled, where scheduled = F + G and nonscheduled = L + N + P + R.
              (4) Record type code. This code indicates whether the data pertain to non-stop segment (record type S) or on-flight market (record type M).
              (5) Aircraft type code. This code represents the aircraft types, as described in the BTS' Accounting and Reporting Directives.
              (6) Origin, Destination airport code(s). These codes represent the industry designators. An industry source of these industry designator codes is the Official Airline Guide (OAG). OAI assigns codes, upon request, if not listed in the OAG.
              (7) 110 Revenue passengers enplaned. The total number of revenue passengers enplaned at the origin point of a flight, boarding the flight for the first time; an unduplicated count of passengers in a market.
              (8) 130 Revenue passengers transported. The total number of revenue passengers transported over a single flight stage, including those already on the aircraft from a previous flight stage.
              (9) 140 Revenue passenger-miles. Computed by multiplying the inter-airport distance of each flight stage by the number of passengers transported on that flight stage.
              (10) 210 Revenue cargo tons enplaned. The total number of cargo tons enplaned. This data element is a sum of the individual on-flight market figures for each of the following categories: 217 Freight and 219 Mail. This element represents an unduplicated count of the revenue traffic in a market.
              (11) 217 Enplaned freight. The total weight of revenue freight enplaned at the origin point of a flight, loaded onto the flight for the first time; an unduplicated count of freight in a market.
              (12) 219 Enplaned mail. The total weight of mail enplaned at the origin point of a flight, loaded onto the flight for the first time; an unduplicated count of mail in a market.
              (13) 230 Revenue tons transported. The number of tons of revenue traffic transported. This element is the sum of the following elements: 231 Passengers transported-total, 237 Freight, and 239 Mail.
              (14) 237 Transported freight. The total weight of freight transported over a single flight stage, including freight already on the aircraft from a previous flight stage.
              (15) 239 Transported mail. The total weight of mail transported over a single flight stage, including mail already on the aircraft from a previous flight stage.
              (16) 240 Revenue ton-miles—total. Ton-miles are computed by multiplying the revenue aircraft miles flown (410) on each flight stage by the number of tons transported on that stage. This element is the sum of 241 through 249.
              (17) 241 Revenue ton-miles—passenger. Equals the number of passengers times 200, times inter-airport distance, divided by 2000. A standard weight of 200 pounds per passenger, including baggage, is used for all operations and service classes.
              (18) 247 Revenue ton-miles—freight. Equals the volume of freight in whole tons times the inter-airport distance.
              (19) 249 Revenue ton-miles—mail. Equals the volume of mail in whole tons times the inter-airport distance.
              (20) 270 Available capacity-payload. The available capacity is collected in pounds. This figure shall reflect the payload or total available capacity for passengers, mail and freight applicable to the aircraft with which each flight stage is performed.
              (21) 280 Available ton-miles. The aircraft miles flown on each flight stage multiplied by the available capacity on the aircraft in tons.
              (22) 310 Available seats. The number of seats available for sale. This figure reflects the actual number of seats available, excluding those blocked for safety or operational reasons. In the domestic entity, report the total available seats in item 130. Scheduled and nonscheduled available seats are reported in item 130.
              (23) 320 Available seat-miles. The aircraft miles flown on each flight stage multiplied by the seat capacity available for sale.
              (24) 410 Revenue aircraft miles flown. Revenue aircraft miles flown are computed based on the airport pairs between which service is actually performed; miles are generated from the data for scheduled aircraft departures (Code 520) times the inter-airport distances (Code 501).
              (25) 430 Revenue aircraft miles scheduled. The number of revenue aircraft miles scheduled. All such data shall be maintained in conformity with the airport pairs between which service is scheduled, whether or not in accordance with actual performance.
              (26) 501 Inter-airport distance. The great circle distance, in official statute miles as prescribed in part 247 of this chapter, between airports served by each flight stage. Official inter-airport mileage may be obtained from the Office of Airline Information.
              (27) 510 Revenue aircraft departures performed. The number of revenue aircraft departures performed.
              (28) 520 Revenue aircraft departures scheduled. The number of revenue aircraft departures scheduled, whether or not actually performed.
              (29) 610 Revenue aircraft hours (airborne). The elapsed time, computed from the moment the aircraft leaves the ground until its next landing.
              (30) 630 Aircraft hours (ramp-to-ramp). The elapsed time, computed from the moment the aircraft first moves under its own power from the boarding ramp at one airport to the time it comes to rest at the ramp for the next point of landing. This data element is also referred to as ‘block’ and ‘block-to-block’ aircraft hours.
              (31) 650 Total aircraft hours (airborne). The elapsed time, computed from the moment the aircraft leaves the ground until it touches down at the next landing. This includes flight training, testing, and ferry flights.
              (f) Public availability of Schedule T-100 data. Detailed domestic on-flight market and nonstop segment data in Schedule T-100, except military data, shall be publicly available after processing. Domestic data are defined as data from air transportation operations from a place in any State of the United States, the District of Columbia, the Commonwealth of Puerto Rico and the Virgin Islands, or a U.S. territory or possession to a place in any State of the United States, the District of Columbia, the Commonwealth of Puerto Rico and the Virgin Islands, or a U.S. territory or possession.
              [Doc. No. OST-98-4043, 67 FR 49227, July 30, 2002, as amended at 75 FR 41585, July 16, 2010; DOT-OST-2014-0140, 84 FR 15933, Apr. 16, 2019]

              Pt. 191, Subpt. E, App. A
              Appendix A to Subpart E of Part 291—Instructions to U.S. Air Carriers for Reporting Traffic and Capacity Data on Schedule T-100
              (a) Format of reports—(1) Automatic Data Processing (ADP) magnetic tape. Refer to paragraph (d) of this appendix for instructions pertaining to mainframe and minicomputer reporting. The Department will issue “Accounting and Reporting Directives” to make necessary technical changes to these T-100 instructions. Technical changes which are minor in nature do not require public notice and comment.
              (2) Microcomputer diskette—(i) Optional specification. If an air carrier desires to use its personal computers (PC's), rather than mainframe or minicomputers to prepare its data submissions, the following specifications for filing data on diskette media apply.
              (ii) Reporting medium. Microcomputer ADP data submission of T-100 information must be on IBM compatible disks. Carriers wishing to use a different ADP procedure must obtain written approval to do so from the BTS Assistant Director—Airline Information. Requests for approval to use alternate methods must disclose and describe the proposed data transmission methodology. Refer to paragraph (i) of this appendix for microcomputer record layouts.
              (iii) Microcomputer file characteristics. The files will be created in ASCII delimited format, sometimes called Data Interchange Format (DIF). This form of recording data provides for variable length fields (data elements) which, in the case of alphabetic data, are enclosed by quotation marks (“) and separated by a comma (,) or tab. Numeric data elements that are recorded without editing symbols are also separated by a comma (,) or tab. The data are identified by their juxtaposition within a given record. Therefore, each record must contain the exact number of data elements, all of which must be juxtapositionally correct. Personal computer software including most spreadsheets, data base management programs, and BASIC are capable of producing files in this format.
              (b) Filing date for reports. The reports must be received at BTS within 30 days following the end of each reporting period.
              (c) Address for filing. Data Administration Division, RTS-42, Office of Airline Information, Bureau of Transportation Statistics, U.S. Department of Transportation, 1200 New Jersey Avenue SE, Washington, DC 20590-0001.
              (d) ADP format for magnetic tape—(1) Magnetic tape specifications. IBM compatible 9-track EBCDIC recording. Recording density of 6250 or 1600 bpi. The order of recorded information is:
              (i) Volume label.
              (ii) Header label.
              (iii) Data records.
              (iv) Trailer label.
              (2) [Reserved]
              (e) External tape label information. (1) Carrier name.
              (2) Report date.
              (3) File identification.
              (4) Carrier address for return of tape reel.
              (f) Standards. It is the policy of the Department to be consistent with the American National Standards Institute and the Federal Standards Activity in all data processing and telecommunications matters. It is our intention that all specifications in this application are in compliance with standards promulgated by these organizations.
              (g) Volume, header, and trailer label formats—(1) Use standard IBM label formats. The file identifier field of the header labels should be “T-100.SYSTEM”.
              (h) Magnetic tape record layouts for T-100—(1) Nonstop segment record layout.

                  Field No.
                  Positions
                  Mode
                  Description

                  1
                  1
                  1T
                  Record type code (S = nonstop segment).

                  2
                  2-6
                  5T
                  Carrier entity code.

                  3
                  7-12
                  6T
                  Report date (YYYYMM).

                  4
                  13-15
                  3T
                  Origin airport code.

                  5
                  16-18
                  3T
                  Destination airport code.

                  6
                  19
                  1T
                  Service class code (F, G, L, N, P or R).

                  7
                  20-23
                  4T
                  Aircraft type code.

                  8
                  24-28
                  5N
                  Revenue departures performed (F, G, L, N, P, R510).

                  9
                  29-38
                  10N
                  Available capacity payload (lbs) (F, G, L, N, P, R270).

                  10
                  39-45
                  7N
                  Available seats (F, L, N310).

                  11
                  46-52
                  7N
                  Passengers transported (F, L, N130).

                  12
                  53-62
                  10N
                  Rev freight transported (F, G, L, N, P, R237) (in lbs).

                  13
                  63-72
                  10N
                  Revenue mail transported (F, G, L, N, P, R239) (in lbs).

                  14
                  73-77
                  5N
                  Revenue aircraft departures scheduled (F, G520).

                  15
                  78-87
                  10N
                  Rev hrs, ramp-to-ramp (F, G, L, N, P, R630) (in minutes).

                  16
                  88-97
                  10N
                  Rev hrs, airborne (F, G, L, N, P, R610) (in minutes).

                T = Text.
                N = Numeric.

              (2) On-flight market record layout.

                  Field No.
                  Positions
                  Mode
                  Description

                  1
                  1
                  1T
                  Record type: M = on-flight market record.

                  2
                  2-6
                  5T
                  Carrier entity code.

                  3
                  7-12
                  4T
                  Report date (YYYYMM).

                  4
                  13-15
                  3T
                  Origin airport code.

                  5
                  16-18
                  3T
                  Destination airport code.

                  6
                  19
                  1T
                  Service class code (F, G, L, N, P or R).

                  7
                  20-26
                  7N
                  Total passengers in market (F, L, N110).

                  8
                  27-36
                  10N
                  Rev freight in market (F, G, L, N, P, R217) (in lbs).

                  9
                  37-46
                  10N
                  Revenue mail in market (F, G, L, N, P, R219) (in lbs).

                T = Text.
                N = numeric.

              (i) Record layouts for microcomputer diskettes. The record layouts for diskette are generally identical to those shown for magnetic tape, with the exception that delimiters (quotation marks, tabs and commas) are used to separate fields. It is necessary that the order of fields be maintained in all records.
              (1) File characteristics. The files will be created in ASCII delimited format, sometimes called Data Interchange Format (DIF). This form of recording data provides for variable length fields (data elements) which, in the case of alphabetic data, are enclosed by quotation marks (”) and separated by a comma (,) or tab. Numeric data elements that are recorded without editing symbols are also separated by a comma (,) or tab. The data are identified by their juxtaposition within a given record. Therefore, it is critical that each record contain the exact number of data elements, all of which must be juxtapositionally correct. PC software including most spreadsheets, data base management programs, and BASIC produce minidisk files in this format.
              (2) File naming conventions for diskettes. For microcomputer reports, each record type should be contained in a separate DOS file on the same physical diskette. The following DOS naming conventions should be followed:
              (i) Record type S = SEGMENT.DAT
              (ii) Record type M = MARKET.DAT
              [Doc. No. DOT-OST-2014-0140, 84 FR 15933, Apr. 16, 2019]

            Subpart F—Enforcement

              § 291.50
              Enforcement.
              In case of any violation of any of the provisions of 49 U.S.C. Subtitle VII , or this part, or any other rule, regulation, or order issued under the Statute, the violator may be subject to a proceeding pursuant to section 46101 of 49 U.S.C. Subtitle VII before the Department, or sections 46106 through 46108 of 49 U.S.C. Subtitle VII before a U.S. District Court, as the case may be, to compel compliance therewith; or to civil penalties pursuant to the provisions of section 46301 of 49 U.S.C. Subtitle VII.
              [60 FR 43526, Aug. 22, 1995, as amended by DOT-OST-2014-0140, 84 FR 15933, Apr. 16, 2019]

            Subpart G—Public Disclosure of Data

              § 291.60
              Public disclosure of data.
              (a) Detailed domestic on-flight market data and nonstop segment data, except military data, shall be made publicly available after processing. Domestic data are defined as data from air transportation operations from a place in any State of the United States, the District of Columbia, the Commonwealth of Puerto Rico and the Virgin Islands, or a U.S. territory or possession to a place in any State of the United States, the District of Columbia, the Commonwealth of Puerto Rico and the Virgin Islands, or a U.S. territory or possession. Domestic military operations are reported under service codes N or R.
              (b) Detailed international on-flight market and nonstop segment data in Schedule T-100 and Schedule T-100(f) reports, except military data, shall be publicly available immediately following the Department's determination that the database is complete, but no earlier than six months after the date of the data. Military operations are reported under service codes N or R. Data for on-flight markets and nonstop segments involving no U.S. points shall not be made publicly available for three years. Industry and carrier summary data may be made public before the end of six months or the end of three years, as applicable, provided there are three or more carriers in the summary data disclosed. The Department may, at any time, publish international summary statistics without carrier detail. Further, the Department may release nonstop segment and on-flight market detail data by carrier before the end of the confidentiality period as follows:
              (1) To foreign governments as provided in reciprocal arrangements between the foreign country and the U.S. Government for exchange of on-flight market and/or nonstop segment data submitted by air carriers of that foreign country and U.S. carriers serving that foreign country.
              (2) To parties to any proceeding before the Department under 49 U.S.C. Subtitle VII (Transportation) as required by an Administrative Law Judge or other decision-maker of the Department. Parties may designate agents or consultants to receive the data in their behalf, provided the agents or consultants agree to abide by the disclosure restrictions. Any data to which access is granted pursuant to this provision may be introduced into evidence, subject to the normal rules of admissibility.
              (3) To agencies or other components of the U.S. Government for their internal use only.
              [Doc. No. OST-98-4043, 67 FR 49230, July 30, 2002, as amended by DOT-OST-2014-0140, 84 FR 15933, Apr. 16, 2019]

          Pt. 292
          PART 292—INTERNATIONAL CARGO TRANSPORTATION

              Subpart A—General
              Sec.
              292.1
              Applicability.
              292.2
              Definitions.

              Subpart B—Exemption From Filing Tariffs
              292.10
              Exemption.
              292.11
              Revocation of exemption.

              Subpart C—Effect of Exemption
              292.20
              Rule of construction.
              292.21
              Incorporation of contract terms by reference.
              292.22
              Effectiveness of tariffs on file.

            Authority:
            49 U.S.C. 40101, 40105, 40109, 40113, 40114, 41504, 41701, 41707, 41708, 41709, 41712, 46101; 14 CFR 1.56(j)(2)(ii).

            Source:
            Docket No. 48827, 60 FR 61478, Nov. 30, 1995, unless otherwise noted.

            Subpart A—General

              § 292.1
              Applicability.
              This part applies to direct air carriers providing scheduled transportation of cargo in foreign air transportation.

              § 292.2
              Definitions.
              For purposes of this part:

                Cargo means property other than baggage accompanied or checked by passengers, or mail.

                Cargo tariff means a tariff containing rates, charges or provisions governing the application of such rates or charges, or the conditions of service, applicable to the scheduled transportation of cargo in foreign air transportation.

                Direct air carrier means an air carrier or foreign air carrier directly engaged in the operation of aircraft under a certificate, regulation, order, exemption or permit issued by the Department or its predecessor, the Civil Aeronautics Board.

            Subpart B—Exemption From Filing Tariffs

              § 292.10
              Exemption.
              Direct air carriers are exempted from the requirement to file cargo tariffs with the Department of Transportation provided in 49 U.S.C. 41504 and 14 CFR Part 221.

              § 292.11
              Revocation of exemption.
              (a) The Department, upon complaint or upon its own initiative, may, immediately and without hearing, revoke, in whole or in part, the exemption granted by this part with respect to a carrier or carriers, when such action is in the public interest.
              (b) Any such action will be taken in an order issued by the Assistant Secretary for Aviation and International Affairs, and will identify:
              (1) The tariff matter to be filed; and
              (2) The deadline for carrier compliance.
              (c) Revocations under this section will have the effect of reinstating all applicable tariff requirements and procedures specified in the Department's regulations for the tariff material to be filed, unless otherwise specified by Department order.

            Subpart C—Effect of Exemption

              § 292.20
              Rule of construction.

              Carriers holding an effective exemption from the duty to file tariffs under this part shall not, unless otherwise directed by order of the Department, be subject to tariff posting, notification or subscription requirements set forth in 49 U.S.C. 41504 or 14 CFR part 221, except as provided in § 292.21 of this part.

              § 292.21
              Incorporation of contract terms by reference.

              (a) Carriers holding an effective exemption from the duty to file tariffs under this part may incorporate contract terms by reference (i.e. without stating their full text) into the waybill or other document embodying the contract of carriage for the scheduled transportation of cargo in foreign air transportation, provided that:

              (1) The notice, inspection, explanation and other requirements set forth in 14 CFR 221.177(a)(1), (a)(2), (a)(4), (b), (c) and (d) are complied with, to the extent applicable, except that the notice required under 14 CFR 221.177(b)(1) shall refer to the title or general nature of the publication(s) or document(s) containing the full text of the referenced terms rather than to “terms and conditions filed in public tariffs with U.S. authorities”;
              (b) In addition to other remedies at law, a carrier may not claim the benefit as against a shipper or consignee of, and a shipper or consignee shall not be bound by, any contract term which is incorporated by reference under this part unless the requirements of paragraph (a)(1) of this section are complied with, to the extent applicable; and
              (c) The purpose of this section is to set uniform disclosure requirements, which preempt any State requirements on the same subject, for terms incorporated by reference into contracts of carriage for the scheduled transportation of cargo in foreign air transportation.

              § 292.22
              Effectiveness of tariffs on file.
              (a) Cargo rate tariffs on file with the Department, including related classification and/or applicability rules, cease to be effective as tariffs under 49 U.S.C. 41504 and 41510, as well as under the provisions of 14 CFR Part 221, and they are canceled by operation of law.
              (b) As of March 1, 1996, all remaining cargo tariffs on file with the Department cease to be effective as tariffs under 49 U.S.C. 41504 and the provisions of 14 CFR part 221, and are cancelled by operation of law. Any such tariffs may be cancelled voluntarily prior to that date. With respect to terms expressly agreed in the contract of carriage, carriers, agents and other persons are relieved from the requirement of adherence to filed tariffs in 49 U.S.C. 41510 and the related provisions of 14 CFR part 221 as of November 30, 1995.
              (c) Applications for filing and/or effectiveness of any cargo tariffs pending on November 30, 1995 are dismissed by operation of law. No new filings or applications will be permitted except as provided under § 292.11.

          Pt. 293
          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).

            Source:
            64 FR 40674, July 27, 1999, unless otherwise noted.

            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, or are subject to the provisions of paragraph (c) of this section.
              (ii) In Category B markets, carriers are exempted from the duty to file all passenger tariffs except those setting forth one-way economy-class fares and governing provisions thereto, unless they are nationals of countries listed in Category C, or are subject to the provisions of paragraph (c) of this section.
              (iii) In Category C markets, carriers shall continue to file all passenger tariffs, except as provided in § 293.10(b);
              (2) The Assistant Secretary will list country-pair markets falling in Categories A and C, taking into consideration the factors in paragraphs (a)(2) (i) through (iv) of this section. All country-pair markets not listed in Categories A or C shall be considered to be in Category B and need not be specifically listed.

              (i) Whether the U.S. has an aviation agreement in force with that country providing double-disapproval treatment of prices filed by the carriers of the Parties;
              (ii) Whether the country's Government has disapproved or deterred U.S. carrier price leadership or matching tariff filings in any market;
              (iii) Whether the country's Government has placed significant restrictions on carrier entry or capacity in any market; and
              (iv) Whether the country's government is honoring the provisions of the bilateral aviation agreement and there are no significant bilateral problems.
              (b) By notice of the Assistant Secretary, new country-pair markets will be listed in the appropriate category, and existing country-pair markets may be transferred between categories.
              (c) Notwithstanding a determination that a country is in Category A or B, if the Assistant Secretary finds that effective price leadership opportunities for U.S. carriers are not available between that country and any third country, carriers that are nationals of such country may be required to file tariffs, as provided under part 221 or as otherwise directed in the notice, for some or all of their services between the U.S. and third countries.
              (d) Air carriers and foreign air carriers are exempted from the duty to file governing rules tariffs containing general conditions of carriage with the Department of Transportation, as required by 49 U.S.C. 41504 and 14 CFR part 221. A description of the general conditions of carriage will be included in the Assistant Secretary's initial notice.
              (e) Notwithstanding paragraph (d) of this section, air carriers and foreign air carriers shall file and maintain a tariff with the Department to the extent required by 14 CFR 203.4 and other implementing regulations.
              (f) Authority for determining what rules are covered by paragraph (d) of this section and for determining the filing format for the tariffs required by paragraph (e) of this section is delegated to the Director of the Office of International Aviation.

              § 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 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) One hundred and eighty days after the date of effectiveness of the Assistant Secretary's notice, passenger tariffs on file with the Department covered by the scope of the exemption will cease to be effective as tariffs under 49 U.S.C. 41504 and 41510, and the provisions of 14 CFR part 221, and will be canceled by operation of law.
              (b) One hundred and eighty days after the date of effectiveness of the Assistant Secretary's notice, pending applications for filing and/or effectiveness of any passenger tariffs covered by the scope of the exemption, will be dismissed by operation of law. No new filings or applications will be permitted after the date of effectiveness of the Assistant Secretary's notice except as provided under § 293.12.

          Pt. 294
          PART 294—CANADIAN CHARTER AIR TAXI OPERATORS

            Editorial Note:
            Nomenclature changes to part 294 appear at 84 FR 15934, Apr. 16, 2019.

              Subpart A—General
              Sec.
              294.1
              Applicability and purpose.
              294.2
              Definitions.
              294.3
              General requirements for Canadian charter air taxi operators.

              Subpart B—Exemption
              294.10
              Exemption authority.

              Subpart C—Registration for Exemption
              294.20
              Applying for registration.
              294.21
              Procedure on receipt of registration form.
              294.22
              Notification to the Department of change in operations or identifying information.

              Subpart D—General Rules for Registrants
              294.30
              Scope of service and equipment authorized.
              294.31
              Use of business name.
              294.32
              Security arrangements for operating Public Charters.
              294.33
              Compliance with the regulations of the Federal Aviation Administration.
              294.34
              Advance approval by the Department.

              Subpart E—Insurance Requirements
              294.40
              Aircraft accident liability insurance requirements.

              Subpart F—Cancellation of Registration and Presidential Review
              294.50
              Cancellation, revocation, or suspension of registration.
              294.51
              Presidential review.

              Subpart G—Authorizations and Waivers
              294.60
              Applications for authorization to conduct individual operations or programs not otherwise permitted by this part.
              294.61
              Waivers.

              Subpart H—Violations
              294.70
              Enforcement.

              Subpart I—Terms, Conditions, and Limitations of This Part
              294.80
              Waiver of sovereign immunity.
              294.81
              Local traffic prohibited.
              294.83
              Compliance with certain international agreements.
              294.84
              Air competency requirements.
              294.85
              Charterworthiness standards.
              294.86
              Industrial/agricultural/other nontransport air operations prohibited.
              294.87
              Compliance with Canadian licenses.

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

            Source:
            ER-1257, 46 FR 52591, Oct. 27, 1981, unless otherwise noted.

            Subpart A—General

              § 294.1
              Applicability and purpose.

              This part establishes a classification of foreign air carriers known as “Canadian charter air taxi operators,” and establishes registration procedures for these carriers operating or seeking to operate transborder services between Canada and the United States. This part also exempts Canadian charter air taxi operators from certain provisions of the Subtitle VII of Title 49 of the United States Code (Transportation), and establishes rules applicable to their operations in the United States. This part does not provide exemption from the safety regulatory provisions of 49 U.S.C. Subtitle VII that are administered by the U.S. Department of Transportation through the Federal Aviation Administration (FAA), and Canadian charter air taxi operators in the conduct of their operations must observe all applicable safety standards and requirements.
              [ER-1257, 46 FR 52591, Oct. 27, 1981, as amended at 60 FR 43526, Aug. 22, 1995]

              § 294.2
              Definitions.
              As used in this part:
              (a) Agreement means the Air Transport Agreement Between the Government of the United States and the Government of Canada, signed at Ottawa, February 24, 1995, with Annexes and any amendments, supplements, reservations, or supersessions to it.
              (b) Canadian charter air taxi operator means a foreign air carrier that is substantially owned and effectively controlled by Canadian citizens, the Government of Canada, or both, whose foreign air transportation operations are limited to charter air service between points in Canada and points in the United States, and that does not use large aircraft in those operations.
              (c) Charter air service means nonscheduled commercial air transportation of persons and their accompanied baggage, and of property, on a time, mileage, or trip basis where the entire planeload capacity of one or more aircraft has been engaged, or the transportation of mail by aircraft.
              (d) Large aircraft means any aircraft that are not small aircraft as defined in this section.
              (e) Maximum authorized takeoff weight has the meaning assigned to it in regulations of the Canadian Transport Commission.
              (f) Maximum certificated takeoff weight means the maximum takeoff weight authorized by the terms of the aircraft airworthiness certificate. This weight may be found in the airplane operating record or in the airplane flight manual that is incorporated by regulation into the airworthiness certificate.
              (g) Maximum passenger capacity means the maximum number of passenger seats for which an aircraft is configured.
              (h) Maximum payload capacity means the maximum certificated takeoff weight of an aircraft less the empty weight as defined in section 03 of part 241 of this chapter, less all justifiable aircraft equipment, and less the operating load (consisting of minimum fuel load, oil, flight crew, steward's supplies, etc.). For purposes of this part, the allowance for weight of the crew, oil and fuel is as follows:
              (1) Crew—200 pounds per crew member required under FAA regulations in 14 CFR chapter I, (2) oil—350 pounds, (3) fuel—the minimum weight of fuel required under FAA regulations in 14 CFR chapter I for a flight between domestic points 200 miles apart, assuming VFR weather conditions and flights not involving extended overwater operations. However, in the case of aircraft for which a maximum zero fuel weight is prescribed by the FAA, maximum payload capacity means the maximum zero fuel weight less the empty weight, less all justifiable aircraft equipment, and less the operating load (consisting of minimum flight crew, steward's supplies, etc., but not including disposable fuel or oil).
              (2) [Reserved]
              (i) Small aircraft means any aircraft designed to have:
              (1) A maximum passenger capacity of not more than 30 seats and a maximum payload capacity of not more than 7,500 pounds, and/or
              (2) maximum authorized takeoff weight on wheels not greater than 35,000 pounds.
              [ER-1257, 46 FR 52591, Oct. 27, 1981, as amended by Doc. No. 47939, 57 FR 40102, Sept. 2, 1992; 60 FR 43526, Aug. 22, 1995; 71 FR 49347, Aug. 23, 2006]

              § 294.3
              General requirements for Canadian charter air taxi operators.
              A Canadian charter air taxi operator shall conduct charter air service between the United States and Canada only if it:
              (a) Has been registered by the Department under this part;
              (b) Does not directly or indirectly utilize large aircraft in charter air services;
              (c) Has and maintains in effect liability insurance coverage that complies with the requirements set forth in subpart E of this part and has and maintains a current certificate of insurance evidencing such coverage on file with the Department;
              (d) Has and maintains in effect and on file with the Department a signed counterpart of Agreement 18900 (OST Form 4523) and complies with all other requirements of part 203 of this chapter;
              (e) Has effective authority from the Government of Canada to conduct charter air service between the United States and Canada.
              (f) Has been granted Federal Aviation Administration operations specifications required under part 129 of this title (the Federal Aviation Regulations);
              (g) Is substantially owned and effectively controlled by Canadian citizens, or the Government of Canada, or a combination of both; and
              (h) Complies with the terms, conditions, and limitations of this part.
              (The reporting requirements contained in paragraph (d) were approved by the Office of Management and Budget under control number 3024-0064)
              [ER-1257, 46 FR 52591, Oct. 27, 1981, as amended by ER-1332, 48 FR 8051, Feb. 25, 1983; ER-1342, 48 FR 31015, July 6, 1983; Doc. No. 47939, 57 FR 40102, Sept. 2, 1992; 71 FR 49347, Aug. 23, 2006]

            Subpart B—Exemption

              § 294.10
              Exemption authority.
              Canadian charter air taxi operators registered under this part are exempt from the following provisions of 49 U.S.C. Subtitle VII to the extent necessary to perform charter air service between the United States and Canada, and as long as they comply with the terms, conditions, and limitations of this part:
              (a) Section 41302 (permits).
              (b) Section 41501 (carrier's duty to observe reasonable rates).
              (c) Section 41310 (discrimination).
              (d) Section 41313 (aviation disaster family assistance plans for foreign air carriers).
              [ER-1257, 46 FR 52591, Oct. 27, 1981, as amended at 60 FR 43526, Aug. 22, 1995; 71 FR 49347, Aug. 23, 2006; DOT-OST-2014-0140, 84 FR 15934, Apr. 16, 2019]

            Subpart C—Registration for Exemption

              § 294.20
              Applying for registration.
              To apply for registration under this part, a Canadian charter air taxi operator shall file with the Department's Office of International Aviation, U.S. Air Carrier Licensing/Special Authorities Division, the following:
              (a) A currently effective certificate of insurance (see § 294.40); and
              (b) Three copies of OST Forms 4523 and 4505, which may be obtained from the Department's Office of International Aviation, U.S. Air Carrier Licensing/Special Authorities Division. All the information required by OST Form 4505 shall be filled in, and it shall be certified by a responsible officer of the applicant Canadian charter air taxi operator.
              (Approved by the Office of Management and Budget under control number 3024-0051)
              [ER-1257, 46 FR 52591, Oct. 27, 1981; 46 FR 62054, Dec. 22, 1981, as amended by ER-1363, 48 FR 46265, Oct. 12, 1983; Doc. No. 47939, 57 FR 40102, Sept. 2, 1992; 60 FR 43526, Aug. 22, 1995; 71 FR 49347, Aug. 23, 2006]

              § 294.21
              Procedure on receipt of registration form.
              (a) The Department will list the names and addresses of all persons applying for registration under this part in its Weekly Summary of Filings.

              (b) Any person objecting to the registration of a Canadian charter air taxi operator shall file an objection with the Office of International Aviation, U.S. Air Carrier Licensing/Special Authorities Division, and serve a copy on the applicant within 28 days after the Department receives the properly completed registration application. Objections shall include any facts and arguments upon which they are based.
              (c) Any answers to objections shall be filed within 14 days after the date that the objections were due.
              (d) After receipt of OST Form 4505, the Department may request additional information.
              (e) After the period for objections and answers has expired, the Department will take one of the following actions:
              (1) Issue the registration by stamping its effective date on OST Form 4505 and sending a copy of it to the carrier.
              (2) Reject the application for failure to comply with this part;
              (3) Issue the registration subject to such terms, conditions, or limitations as may be consistent with the public interest; or
              (4) Institute evidentiary proceedings to consider whether the registration should be issued.
              (f) An action described in paragraph (e) of this section will normally be taken within 60 days after the registration application is received. The Department will consider requests for faster action that include a full explanation of the need for expedited action.
              (g) A registration shall not be issued until the Department receives evidence that the applicant has effective authority issued by the Government of Canada. The applicant must provide copies of its Air Carrier Operating certificate and non-scheduled international license issued by the Government of Canada.
              (h) Rejection of an application for registration will not preclude the filing of a new application by the same carrier.
              [ER-1257, 46 FR 52591, Oct. 27, 1981, as amended by Doc. No. 47939, 57 FR 40102, Sept. 2, 1992; 60 FR 43526, Aug. 22, 1995; 71 FR 49347, Aug. 23, 2006]

              § 294.22
              Notification to the Department of change in operations or identifying information.
              Registrants shall refile a copy of OST Form 4505 with the Department's Office of International Aviation, U.S. Air Carrier Licensing/Special Authorities Division, upon any of the following events. The refiling shall be sent by electronic mail, or other means, so as to be received by the Department not later than 30 days after the reported event has occurred.
              (a) The carrier changes its name. When a carrier refiles OST Form 4505 to indicate a change of name:
              (1) A registration ceases to be in effect unless the Government of Canada amends the registrant's Air Carrier Operating Certificate to reflect the registrant's new name within 60 days of the name change and the registrant submits to the Department a copy of its amended Canadian authority.
              (2) The registrant must also refile three copies of Agreement 18900 (OST Form 4523) under its new name;
              (3) The registrant must also refile its certificate of insurance under its new name; and
              (4) The registrant must also advise the appropriate FAA office referred to in § 294.33 of the carrier's new name.
              (b) The carrier changes its designated agent.
              (c) A change occurs in the carrier's ownership and control resulting in a person acquiring a beneficial or voting interest in the registrant of 10 percent or more. The name(s), address(es), citizenship(s), and percentages of ownership of the new owners shall be indicated on the form. Acquisition of ownership interest by persons who are not citizens of the country of citizenship of the registrant may invalidate the registration.
              (d) The carrier temporarily or permanently ceases operations.
              (Approved by the Office of Management and Budget under control number 3024-0051)
              [ER-1257, 46 FR 52591, Oct. 27, 1981, as amended by ER-1363, 48 FR 46265, Oct. 12, 1983; Doc. No. 47939, 57 FR 40102, Sept. 2, 1992; 60 FR 43526, Aug. 22, 1995; 71 FR 49347, Aug. 23, 2006]

            Subpart D—General Rules for Registrants

              § 294.30
              Scope of service and equipment authorized.

              (a) Upon fulfillment of the requirements of § 294.3 of this part, the registrant will have Department authority to engage in charter air services between any point or points in Canada and any point or points in the United States using small aircraft.

              (b) Nothing in this part shall be construed as authorizing the operation of large aircraft in charter air service, and the exemption provided by this part to Canadian charter air taxi operators that register with the Department extends only to the direct operations of charter air service in accordance with the limitations and conditions of this part using aircraft designed to have:
              (1) A maximum passenger capacity of no more than 30 seats and a maximum payload capacity of no more than 7,500 pounds, and/or
              (2) A maximum authorized takeoff weight on wheels not greater than 35,000 pounds.
              (c) A Canadian charter air taxi operator shall not use large aircraft for charter air service until it has been granted a permit by the Department under section 41302 of 49 U.S.C. Subtitle VII or granted an exemption under 49 U.S.C. 40109 of 49 U.S.C. Subtitle VII. Its application for such a permit or exemption should refer to the registration under this part. Registration under this part will be canceled when a section 41302 permit has been granted by the Department for the use of large aircraft in foreign charter air service.
              [ER-1257, 46 FR 52591, Oct. 27, 1981, as amended by Doc. No. 47939, 57 FR 40102, Sept. 2, 1992; 60 FR 43526, Aug. 22, 1995; DOT-OST-2014-0140, 84 FR 15934, Apr. 16, 2019]

              § 294.31
              Use of business name.
              (a) A Canadian charter air taxi operator, in holding out charter air service to the public and performing its charter operations, shall do so only in the names in which its registration is issued under this part. The Department may require a Canadian charter air taxi operator to change such names where they appear to be inconsistent with the public interest.
              (b) [Reserved]

              § 294.32
              Security arrangements for operating Public Charters.
              When a Canadian charter air taxi operator performs a Public Charter under part 380 of this chapter, either:
              (a) The Canadian charter air taxi operator shall meet the bonding or escrow requirements applicable to foreign air carriers as set forth in § 212.8 of this chapter.
              (b) The Canadian charter air taxi operator shall ensure that it does not receive any payments for the charter until after the charter has been completed. In this case, its contracts with the charter operator and the charter operator's depository bank, if any, shall state that the charter operator or bank, as applicable, shall retain control of and responsibility for all participant funds intended for payment for charter air service until after the charter has been completed, notwithstanding any provision of part 380.
              [ER-1257, 46 FR 52591, Oct. 27, 1981, as amended by Doc. No. 2006-25691, 71 FR 49347, Aug. 23, 2006]

              § 294.33
              Compliance with the regulations of the Federal Aviation Administration.
              (a) Registrants under this part shall obtain FAA operations specifications required under part 129 or other applicable rules of this title (the Federal Aviation Regulations) prior to beginning operations into the United States. Registrants should write to the FAA office at one of the following addresses to obtain instructions on how to apply for FAA authority.
              (b) If the registrant's business address is located on or east of 76 degrees West Longitude (in or east of Ottawa, Ontario) it should write to: Federal Aviation Administration, General Aviation District Office No. 1, Albany County Airport, Albany, New York 12211.
              (c) If the registrant's business address is located on or east of 100 degrees West Longitude (in or east of Winnipeg, Manitoba) and west of 76 degrees West Longitude (west of, but not including, Ottawa, Ontario) it should write to: Federal Aviation Administration, Flight Standards District Office, 1 Airport Way, Rochester, New York 14624.

              (d) If the registrant's business address is west of Winnipeg, Manitoba, it should write to: Federal Aviation Administration, General Aviation District Office, 1601 Lind Avenue, SW., Renton, Washington 98055.
              [ER-1257, 46 FR 52591, Oct. 27, 1981, as amended by Doc. No. 47939, 57 FR 40102, Sept. 2, 1992]

              § 294.34
              Advance approval by the Department.
              The Department, by order or regulation and without hearing, may require advance approval of individual charter trips conducted by the registrant under the authority granted by this part, if it finds such action to be consistent with the public interest.

            Subpart E—Insurance Requirements

              § 294.40
              Aircraft accident liability insurance requirements.
              No Canadian charter air taxi operator shall engage in charter air service unless such carrier has and maintains in effect aircraft accident liability coverage that meets the requirements of part 205 of this chapter. Evidence of such insurance coverage, in the form of a certificate of insurance, as required in part 205 of this chapter, shall be maintained on file with the Department's Office of International Aviation, U.S. Air Carrier Licensing/Special Authorities Division, at all times.
              (Approved by the Office of Management and Budget under control number 3024-0050)
              [ER-1257, 46 FR 52591, Oct. 27, 1981, as amended by ER-1342, 48 FR 31015, July 6, 1983; Doc. No. 47939, 57 FR 40102, Sept. 2, 1992; 60 FR 43526, Aug. 22, 1995; 71 FR 49347, Aug. 23, 2006]

            Subpart F—Cancellation of Registration and Presidential Review

              § 294.50
              Cancellation, revocation, or suspension of registration.
              The registration of a carrier subject to this part may be revoked, canceled, suspended, modified, or otherwise subjected to additional terms and conditions by the Department if:
              (a) The carrier files with the Department a written notice that it is discontinuing operations;
              (b) The carrier is the holder of a section 41302 permit to perform large aircraft charters under the Agreement;
              (c) Substantial ownership or effective control is acquired by persons who are not (1) citizens of Canada, (2) the Government of Canada, or (3) a combination of both;
              (d) The Government of Canada terminates or suspends authority it granted to the registrant to conduct charter air service between the United States and Canada.
              (e) The Agreement between the two countries is terminated;
              (f) The registrant fails to have proper insurance coverage, or fails to file or keep a current insurance certificate on file with the Department;
              (g) The registrant fails to comply with the terms, conditions, or limitations of this part;
              (h) The carrier's operations specifications issued by the FAA are suspended or terminated;
              (i) The Department finds that it is in the public interest to do so.
              [ER-1257, 46 FR 52591, Oct. 27, 1981, as amended at 60 FR 43526, Aug. 22, 1995; 71 FR 49347, Aug. 23, 2006]

              § 294.51
              Presidential review.
              A Department order under § 294.50 (e), (g) or (i) shall be subject to stay or disapproval by the President within 60 days.

            Subpart G—Authorizations and Waivers

              § 294.60
              Applications for authorization to conduct individual operations or programs not otherwise permitted by this part.
              (a) Where the terms, conditions, or limitations of this part, particularly § 294.81, require prior approval of individual flights or charter programs, the registrant shall apply for such approval by filing three copies of OST Form 4540 with the Office of International Aviation, Foreign Air Carrier Licensing Division. OST Form 4540 may be obtained from the Foreign Air Carrier Licensing Division.

              (b) Action on the application for authorization filed under paragraph (a) of this section will normally be taken within 30 days after the application is filed. The Department will consider requests for faster action that include a full explanation of the need for expedited action.
              [ER-1257, 46 FR 52591, Oct. 27, 1981, as amended by Doc. No. 47939, 57 FR 40103, Sept. 2, 1992; 71 FR 49347, Aug. 23, 2006]

              § 294.61
              Waivers.
              The Department upon application or on its own initiative may waive any of the provisions of this part if it finds such action to be in the public interest.

            Subpart H—Violations

              § 294.70
              Enforcement.
              In case of any violation of any of the provisions of 49 U.S.C. Subtitle VII , or this part, or any other rule, regulation, or order issued under the Statute, the violator may be subject to a proceeding under section 46101 of 49 U.S.C. Subtitle VII before the Department, or sections 46106 through 46108 of 49 U.S.C. Subtitle VII before a U.S. District Court, as the case may be, to compel compliance; or to impose civil penalties under the provisions of section 46301 of 49 U.S.C. Subtitle VII; or in the case of a willful violation, to impose criminal penalties under the provisions of section 46316 of 49 U.S.C. Subtitle VII; or to impose other lawful sanctions, including revocation of registration.
              [ER-1257, 46 FR 52591, Oct. 27, 1981, as amended at 60 FR 43527, Aug. 22, 1995]

            Subpart I—Terms, Conditions, and Limitations of This Part

              § 294.80
              Waiver of sovereign immunity.
              By accepting an approved registration under this part, a registrant waives any right it may possess to assert any defense of sovereign immunity in any action or proceeding instituted against it in any court or other tribunal in the United States based upon any claim arising out of its operations under this part.

              § 294.81
              Local traffic prohibited.
              (a) Except as set forth in paragraph (b) of this section or § 294.60, a registrant shall not carry passengers, cargo, or mail between two or more United States points for compensation or hire.
              (b) A registrant may grant stopover privileges at any point or points in the United States to passengers and their accompanied baggage as part of a single continuous operation to or from Canada.
              [ER-1257, 46 FR 52591, Oct. 27, 1981, as amended by Doc. No. 2006-25691, 71 FR 49347, Aug. 23, 2006]

              § 294.83
              Compliance with certain international agreements.
              A registrant shall not operate any aircraft under this part unless it:
              (a) Complies with operational safety requirements at least equivalent to Annex 6 of the Chicago Convention;
              (b) Complies with all applicable provisions of the Agreement; and
              (c) Complies with all applicable provisions of any treaty, convention, or agreement affecting international air transportation to which the United States and Canada are parties.

              § 294.84
              Air competency requirements.
              Registrants shall conform to the airworthiness and airman competency requirements prescribed by the Government of Canada for Canadian international air service.

              § 294.85
              Charterworthiness standards.
              (a) Registrants may perform U.S.-originating charters authorized under Annex B (III)(A) of the Agreement as follows: Commercial air transportation of passengers and their accompanied baggage, and of property, on a time, mileage, or trip basis, where the entire planeload capacity of one or more aircraft has been engaged by a person for his own use or by a person for the transportation of a group of persons and/or their property, as agent or representative of such group, or other small aircraft operations as may be authorized under any amendments, supplements, reservations, or supersessions of the Agreement.

              (b) Registrants may perform Canadian-originating charters authorized by Annex B (III)(B) of the Agreement and any amendments, supplements, reservations or supersessions of it. Such charters may be performed only to the extent authorized by the Air Carrier Regulations of the Canadian Transport Commission applicable to operations by small aircraft.

              § 294.86
              Industrial/agricultural/other nontransport air operations prohibited.
              A registrant shall not engage in flights for the purpose of industrial or agricultural operations (e.g., crop dusting, pest control, pipeline patrol, mapping, surveying, banner towing, skywriting, aerial photography) within the United States unless it has obtained a permit from the Department under part 375 of this chapter.

              § 294.87
              Compliance with Canadian licenses.
              A registrant shall not, in the performance of operations authorized by this part, use any aircraft or conduct any operations except in accordance with the authority and conditions contained in the registrant's applicable Canadian licenses.

          Pt. 295
          PART 295—AIR CHARTER BROKERS

              Subpart A—General
              Sec.
              295.1
              Purpose.
              295.3
              Applicability.
              295.5
              Definitions.
              295.7
              Agency relationships.

              Subpart B—Exemption Authority
              295.10
              Grant of economic authority; exemption from the Statute.
              295.12
              Suspension or revocation of exemption authority.

              Subpart C—Consumer Protection
              295.20
              Use of duly authorized direct air carriers.
              295.22
              Prohibited unfair or deceptive practices or unfair methods of competition.
              295.23
              Advertising.
              295.24
              Disclosures.
              295.26
              Refunds.

              Subpart D—Violations
              295.50
              Enumerated unfair or deceptive practices or unfair methods of competition.
              295.52
              Enforcement.

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

            Source:
            Dockt. No. DOT-OST-2007-27057, 83 FR 46874, Sept. 17, 2018, unless otherwise noted.

            Subpart A—General

              § 295.1
              Purpose.
              Air charter brokers, defined as an indirect air carrier, foreign indirect air carrier or a bona fide agent, provide indirect air transportation of passengers on single entity charters aboard large and small aircraft. This part grants exemptions to such air charter brokers from certain provisions of Subtitle VII of Title 49 of the United States Code (Transportation), and establishes rules, including consumer protection provisions, for the provision of such air transportation by air charter brokers.

              § 295.3
              Applicability.

              This part applies to any person or entity acting as an air charter broker as defined in this part with respect to single entity charter air transportation that the air charter broker, as an indirect air carrier, foreign indirect air carrier, or a bona fide agent, holds out, sells or undertakes to arrange aboard large and small aircraft.

              § 295.5
              Definitions.
              For the purposes of this part:
              (a) Air transportation means interstate or foreign air transportation, as defined in 49 U.S.C. 40102(a)(5), 40102(a)(23), and 40102(a)(25).
              (b) Air charter broker means a person or entity that, as an indirect air carrier, foreign indirect air carrier, or a bona fide agent, holds out, sells, or arranges single entity charter air transportation using a direct air carrier.
              (c) Bona fide agent means a person or entity that acts as an agent on behalf of a single entity charterer seeking air transportation or a direct air carrier seeking to provide single entity charter air transportation, when such charterer or direct air carrier, as principal, has appointed or authorized such agent to act on the principal's behalf.
              (d) Charterer means the person or entity that contracts with an air charter broker, direct air carrier, or foreign direct air carrier, for the transportation of the passengers flown on a charter flight.

              (e) Charter air transportation means charter flights in air transportation authorized under Part A of Subtitle VII of Title 49 of the United States Code.
              (f) Direct air carrier and foreign direct air carrier mean a U.S. or foreign air carrier that provides or offers to provide air transportation and that has control over the operational functions performed in providing that transportation.
              (g) Indirect air carrier and foreign indirect air carrier mean a person or entity that, as a principal, holds out, sells, or arranges air transportation and separately contracts with direct air carriers and/or foreign direct air carriers.
              (h) Single entity charter means a charter for the entire capacity of the aircraft, the cost of which is borne by the charterer and not directly or indirectly by individual passengers, except when individual passengers self-aggregate to form a single entity for flights to be operated using small aircraft.
              (i) Statute means Subtitle VII of Title 49 of the United States Code (Transportation).
              (j) Large aircraft means any aircraft originally designed to have a maximum passenger capacity of more than 60 seats or a maximum payload capacity of more than 18,000 pounds.
              (k) Small aircraft means any aircraft originally designed to have a maximum passenger capacity of 60 seats or fewer or a maximum payload capacity of 18,000 pounds or less.

              § 295.7
              Agency relationships.
              An air charter broker acting as an indirect air carrier or foreign indirect air carrier may choose to act as a bona fide agent in individual cases where a charterer, direct air carrier, or foreign direct air carrier has expressly authorized such agency relationship.

            Subpart B—Exemption Authority

              § 295.10
              Grant of economic authority; exemption from the statute.
              To the extent necessary to permit air charter brokers, acting as indirect air carriers or foreign indirect air carriers, to hold out, sell, and undertake to arrange single entity charter air transportation, such air charter brokers are exempted from the following provisions of Subtitle VII of Title 49 of the United States Code, except for the provisions noted, only if and so long as they comply with the provisions and the conditions imposed by this part: 49 U.S.C. 41101-41113, 49 U.S.C. 41301-41313, and 49 U.S.C. 41501-41511. Air charter brokers are not exempt from the following provision: 49 U.S.C. 41310 (nondiscrimination) with respect to foreign air transportation.

              § 295.12
              Suspension or revocation of exemption authority.
              The Department reserves the power to alter, suspend, or revoke the exemption authority of any air charter broker acting as an indirect air carrier, without a hearing, if it finds that such action is in the public interest or is otherwise necessary to protect the traveling public.

            Subpart C—Consumer Protection

              § 295.20
              Use of duly authorized direct air carriers.
              Air charter brokers are not authorized under this part to hold out, sell, or otherwise arrange charter air transportation to be operated by a person or entity that does not hold the requisite form of economic authority from the Department and appropriate safety authority from the Federal Aviation Administration and, if applicable, a foreign safety authority. Air charter brokers are not authorized under this part to hold out, sell, or arrange air transportation to be performed by a direct air carrier or direct foreign air carrier that the direct carrier is not authorized in its own right to hold out, sell, or operate. Only direct air carriers that are citizens of the United States as defined in 49 U.S.C. 40102(a)(15) may provide direct air transportation operations in interstate or intrastate air transportation.

              § 295.22
              Prohibited unfair or deceptive practices or unfair methods of competition.
              An air charter broker shall not engage in any unfair or deceptive practice or unfair method of competition.

              § 295.23
              Advertising.
              (a) All solicitation materials and advertisements, including internet web pages, published or caused to be published by air charter brokers shall clearly and conspicuously state that the air charter broker is an air charter broker, and that it is not a direct air carrier or a direct foreign air carrier in operational control of aircraft, and that the air service advertised shall be provided by a properly licensed direct air carrier or direct foreign air carrier.
              (b) Air charter brokers may display their name and logo on aircraft provided the name of the direct air carrier is displayed prominently and clearly on the aircraft and consumers are not otherwise misled into thinking that the air charter broker is a direct air carrier or direct foreign air carrier.

              § 295.24
              Disclosures.
              (a) Before entering a contract for a specific flight or series of flights with charterers, air charter brokers must disclose to the charterer the information in paragraphs (a)(1),(2), and (6) of this section. Before entering a contract for a specific flight or series of flights with charterers, air charter brokers must, upon request of the charterer, disclose to the charterer the information in paragraphs (a)(3), (4), and (5) of this section. The six disclosures may be accomplished through electronic transmissions.
              (1) The corporate name of the direct air carrier or direct foreign air carrier in operational control of the aircraft on which the air transportation is to be performed and any other names in which that direct carrier holds itself out to the public.

              (2) The capacity in which the air charter broker is acting in contracting for the air transportation, i.e., as an indirect air carrier, indirect foreign air carrier, as an agent of the charterer, or as an agent of the direct air carrier or direct foreign air carrier that will be in operational control of the flight.
              (3) If the air charter broker is acting as the agent of the charterer, the air charter broker must disclose the existence of any corporate or business relationship, including a preexisting contract, between the air charter broker and the direct air carrier or direct foreign air carrier that will be in operational control of the flight that may have a bearing on the air charter broker's selection of the direct carrier that will be in operational control of the flight.
              (4) The total cost of the air transportation paid by the charterer to or through the air charter broker, including any air charter broker or carrier-imposed fees or government-imposed taxes and fees. Specific individual fees, taxes, or costs may, but are not required to be itemized.
              (5) The existence of any fees and their amounts collected by third-parties, if known (or a good faith estimate if not known), including fuel, landing fees, and aircraft parking or hangar fees, for which the charterer will be responsible for paying directly.
              (6) The existence or absence of liability insurance held by the air charter broker covering the charterer and passengers and property on the charter flight, and the monetary limits of any such insurance.
              (b) If any of the information in paragraph (a) of this section that is required to be disclosed to the charterer or requested by the charterer to be disclosed is not known at the time the contract is entered into or changes thereafter, air charter brokers must provide the information to the charterer within a reasonable time after such information becomes available to the air charter broker, such that the charterer has enough time to make an informed decision as to whether to accept the additional information or accept the change.
              (c) If the information in paragraph (a) of this section that is required to be disclosed to the charterer or requested by the charterer to be disclosed is not provided to the charterer within a reasonable time after such information becomes available to the air charter broker, air charter brokers must provide the charterer with the opportunity to cancel the contract for charter air transportation, including any services in connection with such contract, and receive a full refund of any monies paid for the charter air transportation and services.

              (d) In all circumstances, air charter brokers must disclose prior to the start of the air transportation the information in paragraph (a) of this section that is required to be disclosed or that the charterer has requested to be disclosed.
              (e) If the information in paragraph (a) of this section that is required to be disclosed to the charterer or requested by the charterer to be disclosed changes after the air transportation covered by the contract has begun, air charter brokers must provide information regarding any such changes to the charterer within a reasonable time after such information becomes available to the air charter broker.
              (f) If the changes in information described in paragraph (e) of this section are not provided to the charterer within a reasonable time after becoming available to the air charter broker, air charter brokers must provide the charterer with the opportunity to cancel the remaining portion of the contract for charter air transportation, including any services paid in connection with such contract, and receive a full refund of any monies paid for the charter air transportation and services not yet provided.

              § 295.26
              Refunds.
              Air charter brokers must make prompt refunds of all monies paid for charter air transportation when such transportation cannot be performed or when such refunds are otherwise due, as required by 14 CFR 374.3 and 12 CFR part 226 for credit card purchases, and within 20 days after receiving a complete refund request for cash and check purchases.

            Subpart D—Violations

              § 295.50
              Enumerated unfair or deceptive practices or unfair methods of competition.
              (a) Violations of this Part shall be considered to constitute unfair or deceptive practices or unfair methods of competition in violation of 49 U.S.C. 41712.
              (b) In addition to paragraph (a) of this section, the following enumerated practices, among others, by an air charter broker are unfair or deceptive practices or unfair methods of competition in violation of 49 U.S.C. 41712:
              (1) Misrepresentations that may induce members of the public to reasonably believe that the air charter broker is a direct air carrier or direct foreign air carrier when that is not the case.
              (2) Misrepresentations as to the quality or kind of service or type of aircraft.
              (3) Misrepresentations as to the time of departure or arrival, points served, route to be flown, stops to be made, or total trip-time from point of departure to destination.
              (4) Misrepresentations as to the qualifications of pilots or safety record or certification of pilots, aircraft, or air carriers.
              (5) Misrepresentations that passengers are directly insured when they are not so insured. For example, where the only insurance in force is that protecting the direct air carrier or air charter broker in event of liability.
              (6) Misrepresentations as to fares or charges for air transportation or services in connection therewith.
              (7) Misrepresentations as to membership in or involvement with an organization that audits air charter brokers, direct air carriers, or direct foreign air carriers, or that the air charter broker or any direct carriers to be used for a particular flight meets a standard set by an auditing organization.
              (8) Representing that a contract for a specified direct air carrier, direct foreign air carrier, aircraft, flight, or time has been arranged without a binding commitment with a direct air carrier or direct foreign air carrier for the furnishing of such transportation as represented.
              (9) Selling or contracting for air transportation while knowing or having reason to know or believe that such air transportation cannot be legally performed by the direct air carrier or foreign direct air carrier that is to perform the air transportation.
              (10) Misrepresentations as to the requirements that must be met by charterers to qualify for charter flights.

              (11) Using or displaying or permitting or suffering to be used or displayed the name, trade name, slogan or any abbreviation thereof, of the air charter broker in advertisements, on or in places of business, or on or in aircraft or any other place in connection with the name of an air carrier or foreign air carrier or with services in connection with air transportation, in such manner that it may mislead or confuse potential consumers with respect to the status of the air charter broker.

              § 295.52
              Enforcement.
              In case of any violation of any of the provisions of the Statute, or of this part, or any other rule, regulation, or order issued under the Statute, the violator may be subject to a proceeding under 49 U.S.C. 46101 before the Department, or 49 U.S.C. 46106-46108 before a U.S. District Court, as the case may be, to compel compliance. The violator may also be subject to civil penalties under the provisions of 49 U.S.C. 46301, or other lawful sanctions, including revocation of the exemption authority granted in this part. In the case of a willful violation, the violator may be subject to criminal penalties under the provisions of 49 U.S.C. 46316.

          Pt. 296
          PART 296—INDIRECT AIR TRANSPORTATION OF PROPERTY

              Subpart A—General
              Sec.
              296.1
              Purpose.
              296.2
              Applicability.
              296.3
              Indirect cargo air carrier.
              296.4
              Joint loading.
              296.5
              Agency relationships.
              296.6
              Public disclosure of cargo liability limits and insurance.

              Subpart B—Exemption for Indirect Air Transportation of Property
              296.10
              Exemption from the Statute.

              Subpart C—Violations
              296.20
              Enforcement.

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

            Source:
            ER-1261, 46 FR 54727, Nov. 4, 1981, unless otherwise noted.

            Subpart A—General

              § 296.1
              Purpose.
              This part establishes rules for the indirect air transportation of property. It creates a class of air carriers to provide this air transportation and grants exemptions from certain provisions of the Subtitle VII of Title 49 of the United States Code (Transportation).
              [ER-1257, 46 FR 52591, Oct. 27, 1981, as amended at 60 FR 43527, Aug. 22, 1995]

              § 296.2
              Applicability.
              This part applies to air transportation of property by indirect cargo air carriers, and to persons entering into control relationships with indirect cargo air carriers.

              § 296.3
              Indirect cargo air carrier.
              An indirect cargo air carrier is any U.S. citizen who undertakes to engage indirectly in air transportation of property, and uses for the whole or any part of such transportation the services of an air carrier or a foreign air carrier that directly engages in the operation of aircraft under a certificate, regulation, order, or permit issued by the Department of Transportation or its predecessor to the extent that those actions, by law, are still in effect, or the services of its agent, or of another indirect cargo air carrier.
              [ER-1261, 46 FR 54727, Nov. 4, 1981, as amended by Doc. No. 47939, 57 FR 40103, Sept. 2, 1992; DOT-OST-2014-0140, 84 FR 15934, Apr. 16, 2019]

              § 296.4
              Joint loading.
              Nothing in this part shall preclude joint loading, meaning the pooling of shipments and their delivery to a direct air carrier for transportation as one shipment, under an agreement between two or more indirect air carriers or foreign indirect air carriers.

              § 296.5
              Agency relationships.
              An indirect cargo air carrier may act as agent of a shipper, or of a direct air carrier that has authorized such agency, rather than as an air carrier, if it expressly reserves the option to do so when the shipment is accepted.

              § 296.6
              Public disclosure of cargo liability limits and insurance.

              Every indirect cargo air carrier shall give notice in writing to the shipper, when any shipment is accepted, of the existence or absence of cargo liability accident insurance, and of the limits on the extent of its liability, if any. The notice shall be clear and conspicuously included on or attached to all of its rate sheets and airwaybills.

            Subpart B—Exemption for Indirect Air Transportation of Property

              § 296.10
              Exemption from the Statute.
              (a) Indirect cargo air carriers are exempted from the provisions of 49 U.S.C. Subtitle VII only if and so long as they comply with the provisions of this part and its conditions, and to the extent necessary to permit them to organize and arrange their air freight shipments to provide indirect air transportation, except for the following sections:
              (1) Section 41510(b) (solicitation of rebates). However, indirect cargo air carriers are exempt from section 41510(b) to the extent necessary to permit them to solicit, accept, or receive fees from direct air carriers.
              (2) Section 41702 to the extent required to provide safe service, equipment, and facilities in connection with air transportation.
              (3) Section 41310 (nondiscrimination) with respect to foreign air transportation.
              (4) Section 41708 (accounts, records, and reports) and section 41709 (inspection of accounts and property);
              (5) Section 41712 (unfair or deceptive practices or method of competition);
              (6) Section 40102(b) (form of control); and
              (7) Section 41711 (inquiry into air carrier management).
              (b)-(c) [Reserved]
              (d) Direct air carriers are exempted from Chapter 415 of 49 U.S.C. Subtitle VII to the extent necessary to permit them to pay, directly or indirectly, fees to indirect cargo air carriers.
              [ER-1261, 46 FR 54727, Nov. 4, 1981, as amended by ER-1335, 48 FR 22705, May 20, 1983; ER-1381, 49 FR 25226, June 20, 1984, 50 FR 31142, July 31, 1985; 60 FR 43527, Aug. 22, 1995; DOT-OST-2014-0140, 84 FR 15934, Apr. 16, 2019]

            Subpart C—Violations

              § 296.20
              Enforcement.
              In case of any violation of any of the provisions of 49 U.S.C. Subtitle VII, or of this part, or any other rule, regulation, or order issued under the Statute, the violator may be subject to a proceeding under section 46101 of 49 U.S.C. Subtitle VII before the Department, or sections 46106 through 46108 of 49 U.S.C. Subtitle VII before a U.S. District Court, as the case may be, to compel compliance. The violator may also be subject to civil penalties under the provisions of section 46301 of 49 U.S.C. Subtitle VII, or other lawful sanctions.
              [ER-1261, 46 FR 54727, Nov. 4, 1981, as amended by Doc. No. 47939, 57 FR 40103, Sept. 2, 1992; 60 FR 43527, Aug. 22, 1995; DOT-OST-2014-0140, 84 FR 15934, Apr. 16, 2019]

          Pt. 297
          PART 297—FOREIGN AIR FREIGHT FORWARDERS AND FOREIGN COOPERATIVE SHIPPERS ASSOCIATIONS

              Subpart A—General
              Sec.
              297.1
              Purpose.
              297.2
              Applicability.
              297.3
              Definitions.
              297.4
              Joint loading.
              297.5
              Foreign air freight forwarder as agent.
              297.6
              Foreign cooperative shippers association as agent.

              Subpart B—Exemption for Foreign Indirect Air Transportation of Property
              297.10
              Exemption from the Statute.
              297.11
              Disclaimer of jurisdiction.
              297.12
              General requirements.

              Subpart C—Registration for Foreign Air Freight Forwarders and Foreign Cooperative Shippers Associations
              297.20
              Filing for registration.
              297.21
              Objections to registration application.
              297.22
              Procedure on receipt of registration application.
              297.23
              Waiver of sovereign immunity.
              297.24
              Notification to the Department of change of operations.
              297.25
              Cancellation or conditioning of registration.

              Subpart D—General Rules for Foreign Indirect Air Carriers
              297.30
              Public disclosure of cargo liability insurance.
              297.31
              Preparation of airwaybills and manifests.

              Subpart E [Reserved]

              Subpart F—Violations
              297.50
              Enforcement.

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

            Source:
            ER-1159, 44 FR 69635, Dec. 4, 1979, unless otherwise noted.

            Subpart A—General

              § 297.1
              Purpose.
              This part establishes registration procedures and operating rules for foreign air carriers that engage indirectly in interstate or foreign air transportation of property. It relieves these carriers from certain provisions of Subtitle VII of Title 49 of the United States Code (Transportation), and establishes simplified reports for them.
              [ER-1294, 47 FR 19684, May 7, 1982, as amended at 60 FR 43527, Aug. 22, 1995]

              § 297.2
              Applicability.
              This part applies to interstate air transportation of property and to foreign air transportation of property outbound from the United States by foreign indirect air carriers. It also applies to applications for registration as a foreign indirect air carrier of property.
              [ER-1294, 47 FR 19684, May 7, 1982, as amended at 60 FR 43527, Aug. 22, 1995]

              § 297.3
              Definitions.
              For purpose of this part:
              (a) Foreign air freight forwarder means a foreign indirect air carrier that is responsible for the transportation of property from the point of receipt to point of destination, and utilizes for the whole or any part of such transportation the services of a direct air carrier or its agent, of another foreign indirect cargo air carrier as defined in part 296 of this chapter.
              (b) Foreign cooperative shippers association means a bona fide association of shippers operating as a foreign indirect air carrier on a nonprofit basis that undertakes to ship property by air for the account of such association or its members, and utilizes for the whole or any part of such transportation the services of a direct air carrier or its agent, of a foreign indirect cargo air carrier as defined in part 296 of this chapter.
              (c) Direct air carrier means an air carrier or foreign air carrier directly engaged in the operation of aircraft under a certificate, regulation, order, or permit issued by the Department of Transportation or the Civil Aeronautics Board.
              (d) Foreign indirect air carrier means any person, not a citizen of the United States, who undertakes indirectly to engage in the air transportation of property.
              [ER-1159, 44 FR 69635, Dec. 4, 1979, as amended by ER-1294, 47 FR 19684, May 7, 1982; Doc. No. 47939, 57 FR 40103, Sept. 2, 1992; DOT-OST-2014-0140, 84 FR 15934, Apr. 16, 2019]

              § 297.4
              Joint loading.
              Nothing in this part shall preclude joint loading, meaning the pooling of shipments and their delivery to a direct air carrier for transportation as one shipment, under an agreement between two or more indirect air carriers or foreign indirect air carriers.

              § 297.5
              Foreign air freight forwarder as agent.
              A foreign air freight forwarder may act as agent of a shipper, or of a direct air carrier that has authorized such agency, if it expressly reserves the option to do so when the shipment is accepted. A foreign air freight forwarder shall not act as the agent of any direct air carrier with respect to shipments accepted for forwarding.

              § 297.6
              Foreign cooperative shippers association as agent.
              A foreign cooperative shippers association may act as agent of a shipper, or of a direct air carrier that has authorized such agency, if it expressly reserves the option to do so when the shipment is accepted. A cooperative shippers association shall not act as an agent of any direct air carrier with respect to shipments accepted in its capacity as an indirect air carrier.
              [ER-1235, 46 FR 38496, July 28, 1981]

            Subpart B—Exemption for Foreign Indirect Air Transportation of Property

              § 297.10
              Exemption from the Statute.
              (a) Foreign indirect air carriers with an effective registration under this part are exempted from the following provisions of 49 U.S.C. Subtitle VII only if and so long as they comply with the provisions of this part and the conditions imposed herein, and to the extent necessary to permit them to arrange their air freight shipments:
              (1) Section 41302 (Permits);
              (2) Sections 41504 and 41510(a) (Tariffs);
              (3) Section 41510(b) (Solicitation of rebates) to the extent necessary to permit them to solicit, accept, or receive fees from direct air carriers;
              (4) Section 41501 (Carrier's duty to establish just and reasonable rates, etc.); and
              (5) If awarded interstate air transportation operating rights, any other provision of 49 U.S.C. Subtitle VII that would otherwise prohibit them from engaging in the interstate indirect air transportation of property.
              (6) Section 41310 (nondiscrimination) with respect to interstate and overseas air transportation.
              (b) Direct air carriers are exempted from Chapter 415 of 49 U.S.C. Subtitle VII to the extent necessary to permit them to pay, directly or indirectly, fees to foreign air freight forwarders and foreign cooperative shippers associations on consolidated shipments.
              [ER-1336, 48 FR 22705, May 20, 1983, as amended by ER-1382, 49 FR 25226, June 20, 1984; Doc. No. 47939, 57 FR 40103, Sept. 2, 1992; 60 FR 43527, Aug. 22, 1995; DOT-OST-2014-0140, 84 FR 15934, Apr. 16, 2019]

              § 297.11
              Disclaimer of jurisdiction.
              The Department declines to exercise its jurisdiction over foreign indirect air carriers of property with respect to shipments that originate in a foreign country. The Department reserves the right to exercise its jurisdiction over any foreign indirect air carrier of property at any time it finds that such action is in the public interest.

              § 297.12
              General requirements.
              (a) The direct air transportation provided must be performed by direct air carriers that hold authority under section 41102, 41103, 41302, or 41701 of 49 U.S.C. Subtitle VII or are operating under part 298 of this chapter;
              (b) Only U.S. citizen direct air carriers may provide direct air transportation operations in interstate air transportation.
              (c) Foreign indirect air carriers that hold authority to engage in foreign air transportation must apply additionally for permission to consolidate freight in interstate air transportation.
              [ER-1294, 47 FR 19684, May 7, 1982, as amended at 60 FR 43527, Aug. 22, 1995; DOT-OST-2014-0140, 84 FR 15934, Apr. 16, 2019]

            Subpart C—Registration for Foreign Air Freight Forwarders and Foreign Cooperative Shippers Associations

              § 297.20
              Filing for registration.
              (a) Not later than 60 days before the start of operations as a foreign indirect air carrier, every foreign air freight forwarder and foreign cooperative shippers association shall apply for registration with the Department, unless upon a showing of good cause, the Director, Office of International Aviation, allows application at a later time.
              (b) Application shall consist of filing with the Department's Office of International Aviation, U.S. Air Carrier Licensing/Special Authorities Division, two copies of completed OST Form 4506, which may be obtained from the Department of Transportation, U.S. Air Carrier Licensing/Special Authorities Division.
              [ER-1159, 44 FR 69635, Dec. 4, 1979, as amended by ER-1265, 46 FR 56602, Nov. 18, 1981; Doc. No. 47939, 57 FR 40103, Sept. 2, 1992; 60 FR 43527, Aug. 22, 1995; DOT-OST-2014-0140, 84 FR 15934, Apr. 16, 2019]

              § 297.21
              Objections to registration application.

              Persons objecting to registration by a foreign air freight forwarder or foreign cooperative shippers association shall file their objections with the Office of International Aviation, U.S. Air Carrier Licensing/Special Authorities Division, within 28 days of the filing date of the registration forms. The Department will list the names and nationality of all persons applying for registration in its Weekly Summary of Filings.
              [ER-1159, 44 FR 69635, Dec. 4, 1979, as amended by Doc. No. 47939, 57 FR 40103, Sept. 2, 1992; 60 FR 43527, Aug. 22, 1995; DOT-OST-2014-0140, 84 FR 15934, Apr. 16, 2019]

              § 297.22
              Procedure on receipt of registration application.
              After review of a registration form filed under § 297.20, the Department will take one or more of the following actions:
              (a) Indicate by stamp on OST Form 4506 the effective date of registration, and return to the carrier the duplicate copy of OST Form 4506 as evidence of registration with the Department under this part;
              (b) Reject an application for registration for failure to comply with this part, for reasons relating to the failure of effective reciprocity, or if the Department finds that it is in the public interest to do so.
              (c) Request additional information from the applicant;
              (d) Issue an order subjecting a carrier's exercise of authority under this part to such terms, conditions, or limitations as may be required by the public interest; or
              (e) Institute a proceeding under section 41302 of 49 U.S.C. Subtitle VII.
              [ER-1159, 44 FR 69635, Dec. 4, 1979, as amended by ER-1294, 47 FR 19685, May 7, 1982; Doc. No. 47939, 57 FR 40103, Sept. 2, 1992; 60 FR 43527, Aug. 22, 1995; DOT-OST-2014-0140, 84 FR 15934, Apr. 16, 2019]

              § 297.23
              Waiver of sovereign immunity.
              By accepting an approval registration form under this part, a carrier waives any right it may possess to assert any defense of sovereign immunity from suit in any action or proceeding instituted against the carrier in any court or other tribunal in the United States based upon any claim arising out of operations by the carrier under this part.

              § 297.24
              Notification to the Department of change of operations.
              (a) Not later than 30 days before any change in its name or address or any temporary or permanent cessation of operations, each foreign indirect air carrier shall notify the Department's Office of International Aviation, U.S. Air Carrier Licensing/Special Authorities Division, of the change by resubmitting OST Form 4506.
              (b) The registrant shall apply for an amendment of its registration not later than 30 days after any person listed on its existing registration as owning or holding beneficial ownership of 10 percent or more of the registrant's stock no longer has an interest of 10 percent or more, or after any person not so listed becomes an owner or holder of 10 percent or more. Application for amendment shall be made by resubmitting OST Form 4506, but the existing registration shall remain valid pending Department action on the amendment.
              [ER-1159, 44 FR 69635, Dec. 4, 1979, as amended by Doc. No. 47939, 57 FR 40103, Sept. 2, 1992; 60 FR 43527, Aug. 22, 1995; DOT-OST-2014-0140, 84 FR 15934, Apr. 16, 2019]

              § 297.25
              Cancellation or conditioning of registration.
              The registration of a foreign indirect air carrier may be canceled or subjected to additional terms, conditions or limitations if:
              (a) It files with the Department a written notice that it is discontinuing foreign indirect air carrier activities;
              (b) It fails to perform air transportation services as authorized;
              (c) It fails to file the reports required by this part;
              (d) A substantial ownership or control interest is acquired by persons who are not citizens of the country of citizenship of the registrant;
              (e) There is a failure of effective reciprocity; or
              (f) The Department finds that it is in the public interest to do so.
              [ER-1159, 44 FR 69635, Dec. 4, 1979, as amended by ER-1294, 47 FR 19685, May 7, 1982]

            Subpart D—General Rules for Foreign Indirect Air Carriers

              § 297.30
              Public disclosure of cargo liability insurance.
              Every foreign air freight forwarder shall give notice in writing to the shipper, when any shipment is accepted, of the limits of its cargo liability insurance, or of the absence of such insurance, and the limits of its liability, if any. The notice shall be included clearly and conspicuously on all of its rate sheets and airwaybills, and on any other documentation that is given to a shipper at the time of acceptance of the shipment.

              § 297.31
              Preparation of airwaybills and manifests.
              (a) Each registered foreign indirect air carrier shall prepare an accurate airwaybill describing completely all services rendered to or on behalf of the shipper, including the conditions under which the contract will be completed, in its capacity as a foreign indirect air carrier. A copy of the airwaybill shall be given to the consignor and to the consignee.
              (b) Each registered foreign indirect air carrier shall prepare an accurate manifest showing every individual shipment included in each shipment consigned for transportation to a direct air carrier.
              (c) A waiver of paragraph (a) of this section may be granted by the Department upon a written application by the foreign indirect air carrier not less than 30 days before the shipment to which it relates is transported, if the waiver is in the public interest, and is warranted by special or unusual circumstances.

            Subpart E [Reserved]

            Subpart F—Violations

              § 297.50
              Enforcement.
              In case of any violation of any of the provisions of 49 U.S.C. Subtitle VII , or this part, or any other rule, regulation or order issued under the Statute, the violator may be subject to a proceeding under section 46101 of 49 U.S.C. Subtitle VII before the Department, or sections 46106 through 46108 of 49 U.S.C. Subtitle VII before a U.S. District Court, as the case may be, to compel to compliance; or to civil penalties under the provisions of section 46301 of 49 U.S.C. Subtitle VII; or in the case of willful violation, to criminal penalties under the provisions of section 46316 of 49 U.S.C. Subtitle VII; or other lawful sanctions including cancellation of registration.
              [ER-1159, 44 FR 69635, Dec. 4, 1979, as amended at 60 FR 43527, Aug. 22, 1995; DOT-OST-2014-0140, 84 FR 15934, Apr. 16, 2019]

          Pt. 298
          PART 298—EXEMPTIONS FOR AIR TAXI AND COMMUTER AIR CARRIER OPERATIONS

              Subpart A—General
              Sec.
              298.1
              Applicability of part.
              298.2
              Definitions.
              298.3
              Classification.
              298.4
              Requests for statement of authority.

              Subpart B—Exemptions
              298.11
              Exemption authority.
              298.12
              Duration of exemption.

              Subpart C—Registration for Exemption by Air Taxi Operators
              298.21
              Filing for registration by air taxi operators.
              298.22
              Processing by the Department.
              298.23
              Notifications to the Department of change in operations.
              298.24
              Cancellation of the registration.

              Subpart D—Limitations and Conditions on Exemptions and Operations
              298.30
              Public disclosure of policy on consumer protection.
              298.31
              Scope of service and equipment authorized.
              298.32
              Limitations on operations to eligible places.
              298.33
              Security requirements
              298.34
              [Reserved]
              298.35
              Limitations on carriage of mail.
              298.36
              Limitations on use of business name.
              298.37
              Prohibition of services not covered by insurance.
              298.38
              Financial security arrangements for operating Public Charters.

              Subpart E—Commuter Air Carrier Authorizations
              298.50
              Applications.
              298.51
              Processing by the Department.

              298.52
              Air taxi operations by commuter air carriers.
              298.53
              Suspension or revocation of authority.

              Subpart F—Reporting Requirements
              298.60
              General reporting instructions.
              298.61
              Reporting of traffic statistics.
              298.62
              Reporting of financial data.
              298.63
              Reporting of aircraft operating expenses and related statistics by small certificated air carriers.
              298.65
              Requests for extensions of time within which to file reports or for waivers from reporting requirements.
              298.66
              Reporting exemption for State collection of data.

              Subpart G—Public Disclosure of Data
              298.70
              Public disclosure of data.

              Subpart H—Violations
              298.80
              Disclosures.

              Subpart I—Violations
              298.90
              Prohibited unfair or deceptive practices or unfair methods of competition.
              298.92
              Enforcement.

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

            Source:
            ER-929, 40 FR 42855, Sept. 17, 1975, unless otherwise noted.

            Subpart A—General

              Source:
              70 FR 25768, May 16, 2005.

              § 298.1
              Applicability of part.
              This part establishes classifications of air carriers known as “air taxi operators” and “commuter air carriers,” provides certain exemptions to them from some of the economic regulatory provisions of Subtitle VII of Title 49 of the United States Code (Transportation), specifies procedures by which such air carriers may obtain authority to conduct operations, and establishes rules applicable to their operations in interstate and/or foreign air transportation in all States, Territories and possessions of the United States. This part also establishes reporting requirements for commuter air carriers and small certificated air carriers.

              § 298.2
              Definitions.
              As used in this part:

                Air taxi operator means an air carrier as established by § 298.3(a).

                Air transportation means interstate air transportation, foreign air transportation, or the transportation of mail by aircraft as defined by the Statute. 1

                  1 Interstate air transportation is defined in section 40102(a)(25) as the transportation of passengers or property by aircraft as a common carrier for compensation, or the transportation of mail by aircraft (1) between a place in (i) a State, territory, or possession of the United States and a place in the District of Columbia or another State, territory, or possession of the United States; (ii) Hawaii and another place in Hawaii through the airspace over a place outside Hawaii; (iii) the District of Columbia and another place in the District of Columbia; or (iv) a territory or possession of the United States and another place in the same territory or possession; and (2) when any part of the transportation is by aircraft. Note: Operations wholly within the geographic limits of a single State are not considered interstate air transportation if in those operations the carrier transports no more than a de minimis volume of passengers or property moving as part of a continuous journey to or from a point outside the State.
                Foreign air transportation is defined in section 40102(a)(23) of 49 U.S.C. Subtitle VII as the transportation of passengers or property by aircraft as a common carrier for compensation, or the transportation of mail by aircraft, between a place in the United States and a place outside the United States when any part of the transportation is by aircraft.
                Air transportation also is defined to include the transportation of mail by aircraft. Section 5402 of the Postal Reorganization Act, 39 U.S.C. 5402, authorizes the carriage of mail by air taxi operators and commuter air carriers in some circumstances under contract with the U.S. Postal Service.

                Aircraft-hours means the airborne hours of aircraft computed from the moment an aircraft leaves the ground until it touches the ground at the end of a flight stage.

                Aircraft miles means the miles (computed in airport-to-airport distances) for each flight stage actually completed, whether or not performed in accordance with the scheduled pattern.

                Certificated air carrier means an air carrier holding a certificate issued under section 41102 of 49 U.S.C. Subtitle VII.

                Citizen of the United States means:

              (1) An individual who is a citizen of the United States;
              (2) A partnership each of whose partners is an individual who is a citizen of the United States; or
              (3) A corporation or association organized under the laws of the United States or a state, the District of Columbia, or a territory or possession of the United States, of which the president and at least two-thirds of the board of directors and other managing officers are citizens of the United States, which is under the actual control of citizens of the United States, and in which at least 75 percent of the voting interest is owned or controlled by persons that are citizens of the United States.

                Commuter air carrier means an air carrier as established by § 298.3(b) that carries passengers on at least five round trips per week on at least one route between two or more points according to its published flight schedules that specify the times, days of the week, and places between which those flights are performed.

                Departure means takeoff from an airport.

                Eligible place means a place in the United States that meets the specified criteria outlined in 49 U.S.C. Chapter 417.

                Flight stage means the operation of an aircraft from takeoff to landing.

                Large aircraft means any aircraft originally designed to have a maximum passenger capacity of more than 60 seats or a maximum payload capacity of more than 18,000 pounds.

                Maximum certificated takeoff weight means the maximum takeoff weight authorized by the terms of the aircraft airworthiness certificate. 2

                  2 This weight may be found in the airplane operating record or in the airplane flight manual, which is incorporated by regulation into the airworthiness certificate.

                Maximum passenger capacity means the maximum number of passenger seats for which an aircraft is configured.

                Maximum payload capacity means: (1) The maximum certificated take-off weight of an aircraft, less the empty weight,3
                 less all justifiable aircraft equipment, and less the operating load (consisting of minimum fuel load, oil, flight crew, steward's supplies, etc.). For purposes of this part, the allowance for the weight of the crew, oil, and fuel is as follows:

                  3 Empty weight is defined in section 03 of part 241 as follows: the weight of the airframe, engines, propellers, and fixed equipment. Empty weight excludes the weight of the crew and payload, but includes the weight of all fixed ballast, unusable fuel supply, undrainable oil, total quantity of engine coolant, and total quantity of hydraulic fluid.

              (i) Crew—200 pounds per crew member required under FAA regulations in 14 CFR chapter I,
              (ii) Oil—350 pounds,
              (iii) Fuel—the minimum weight of fuel required under FAA regulations in 14 CFR chapter I for a flight between domestic points 200 miles apart, 4

                  4 Assumes VFR weather conditions and flights not involving extended overwater operations.

              (2) Provided, however, That in the case of aircraft for which a maximum zero fuel weight is prescribed by the FAA, 5
                 maximum payload capacity means the maximum zero fuel weight, less the empty weight, less all justifiable aircraft equipment, and less the operating load (consisting of minimum flight crew, steward's supplies, etc., but not including disposable fuel or oil).

                  5 The maximum zero fuel weight is the maximum permissible weight of an airplane with no disposable fuel or oil. The zero fuel weight figure may be found in the FAA's type certificate data sheets, and/or in FAA-approved flight manuals.

                Mile means a statute mile, i.e., 5,280 feet.

                Nonrevenue passenger means a person traveling free or under token charges, except those expressly named in the definition of revenue passenger; a person traveling at a fare or discount available only to employees or authorized persons of air carriers or their agents or only for travel on the business of the carriers; and an infant who does not occupy a seat. (This definition is for 14 CFR part 298 traffic-reporting purposes and may differ from the definitions used in other parts by the Federal Aviation Administration and the Transportation Security Administration for the collection of Passenger Facility Charges and Security Fees.) The definition includes, but is not limited to, the following examples of passengers when traveling free or pursuant to token charges:
              (1) Directors, officers, employees, and others authorized by the air carrier operating the aircraft;
              (2) Directors, officers, employees, and others authorized by the air carrier or another carrier traveling pursuant to a pass interchange agreement;
              (3) Travel agents being transported for the purpose of familiarizing themselves with the carrier's services;
              (4) Witnesses and attorneys attending any legal investigation in which such carrier is involved;
              (5) Persons injured in aircraft accidents, and physicians, nurses, and others attending such persons;
              (6) Any persons transported with the object of providing relief in cases of general epidemic, natural disaster, or other catastrophe;
              (7) Any law enforcement official, including any person who has the duty of guarding government officials who are traveling on official business or traveling to or from such duty;
              (8) Guests of an air carrier on an inaugural flight or delivery flights of newly-acquired or renovated aircraft;
              (9) Security guards who have been assigned the duty to guard such aircraft against unlawful seizure, sabotage, or other unlawful interference;
              (10) Safety inspectors of the National Transportation Safety Board or the FAA in their official duties or traveling to or from such duty;
              (11) Postal employees on duty in charge of the mails or traveling to or from such duty;
              (12) Technical representatives of companies that have been engaged in the manufacture, development or testing of a particular type of aircraft or aircraft equipment, when the transportation is provided for the purpose of in-flight observation and subject to applicable FAA regulations in 14 CFR chapter I;
              (13) Persons engaged in promoting air transportation;
              (14) Air marshals and other Transportation Security officials acting in their official capacities and while traveling to and from their official duties; and
              (15) Other authorized persons, when such transportation is undertaken for promotional purpose.

                Passengers carried means passengers on board each flight stage.

                Point when used in connection with any territory or possession of the United States, or the States of Alaska and Hawaii, means any airport or place where aircraft may be landed or taken off, including the area within a 25-mile radius of such airport or place; when used in connection with the continental United States, except Alaska, it shall have the same meaning except be limited to the area within a 3-mile radius of such airport or place: Provided, That for the purposes of this part, West 30th Street Heliport and Pan Am Building Heliport, both located in New York City, shall be regarded as separate points.

                Reporting carrier for Schedule T-100 purposes means the air carrier in operational control of the flight, i.e., the carrier that uses its flight crews under its own FAA operating authority.

                Revenue passenger means a passenger for whose transportation an air carrier receives commercial remuneration. (This definition is for 14 CFR part 298 traffic-reporting purposes and may differ from the definitions used in other parts by the Federal Aviation Administration and the Transportation Security Administration for the collection of Passenger Facility Charges and Security Fees.) This includes, but is not limited to, the following examples:
              (1) Passengers traveling under publicly available tickets including promotional offers (for example two-for-one) or loyalty programs (for example, redemption of frequent flyer points);
              (2) Passengers traveling on vouchers or tickets issued as compensation for denied boarding or in response to consumer complaints or claims;
              (3) Passengers traveling at corporate discounts;
              (4) Passengers traveling on preferential fares (Government, seamen, military, youth, student, etc.);
              (5) Passengers traveling on barter tickets; and
              (6) Infants traveling on confirmed-space tickets.

                Revenue passenger-mile means one revenue passenger transported one mile. Revenue passenger-miles are computed by multiplying the aircraft miles flown on each flight stage by the number of revenue passengers carried on that flight stage.

                Revenue seat-miles available means the aircraft-miles flown on each flight stage multiplied by the number of seats available for sale on that flight stage.

                Revenue ton-mile means one ton of revenue traffic transported one mile. Revenue ton-miles are computed by multiplying the aircraft-miles flown on each flight stage by the number of pounds of revenue traffic carried on that flight stage and converted to ton-miles by dividing total revenue pound-miles by 2,000 pounds.

                Revenue ton-miles available means the aircraft-miles flown on each flight stage multiplied by the number of pounds of aircraft capacity available for use on that stage and converted to ton-miles by dividing total pound-miles available by 2,000 pounds.

                Scheduled service means transport service operated over routes pursuant to published flight schedules or pursuant to mail contracts with the U.S. Postal Service.

                Small aircraft means any aircraft originally designed to have a maximum passenger capacity of 60 seats or less or a maximum payload capacity of 18,000 pounds or less.

                Small certificated air carrier means an air carrier holding a certificate issued under section 41102 of 49 U.S.C. Subtitle VII that provides scheduled passenger air service within and between only the 50 States of the United States, the District of Columbia, the Commonwealth of Puerto Rico, and the U.S. Virgin Islands with small aircraft as defined in this section.

                Ton means a short ton, i.e., 2,000 pounds.

                Wet-Lease Agreement means an agreement under which one carrier leases an aircraft with flight crew to another air carrier.
              [70 FR 25768, May 16, 2005, as amended by DOT-OST-2014-0140, 84 FR 15934, Apr. 16, 2019]

              § 298.3
              Classification.
              (a) There is hereby established a classification of air carriers, designated as “air taxi operators,” which directly engage in the air transportation of persons or property or mail or in any combination of such transportation and which:
              (1) Do not directly or indirectly utilize large aircraft in air transportation;
              (2) Do not hold a certificate of public convenience and necessity and do not engage in scheduled passenger operations as specified in paragraph (b) of this section;
              (3) Have and maintain in effect liability insurance coverage in compliance with the requirements set forth in part 205 of this chapter and have and maintain a current certificate of insurance evidencing such coverage on file with the Department;
              (4) If operating in foreign air transportation or participating in an interline agreement, subscribe to Agreement 18900 (OST Form 4523 or OST Form 4507) and comply with all other requirements of part 203 of this chapter; and
              (5) Have registered with the Department in accordance with subpart C of this part.
              (b) There is hereby established a classification of air carriers, designated as “commuter air carriers,” which directly engage in the air transportation of persons, property or mail, and which:
              (1) Do not directly or indirectly utilize large aircraft in air transportation;
              (2) Do not hold a certificate of public convenience and necessity;
              (3) Carry passengers on at least five round trips per week on at least one route between two or more points according to its published flight schedules that specify the times, days of the week, and places between which those flights are performed;
              (4) Have and maintain in effect liability insurance coverage in compliance with the requirements set forth in part 205 of this chapter and have and maintain a current certificate of insurance evidencing such coverage on file with the Department;

              (5) Have and maintain in effect and on file with the Department a signed counterpart of Agreement 18900 (OST Form 4523) and comply with all other requirements of part 203 of this chapter; and

              (6) Hold a Commuter Air Carrier Authorization issued in accordance with subpart E of this part.
              (c) A person who does not observe the conditions set forth in paragraph (a) or (b) of this section shall not be an air taxi operator or commuter air carrier within the meaning of this part with respect to any operations conducted while such conditions are not being observed, and during such periods is not entitled to any of the exemptions set forth in this part.

              § 298.4
              Requests for statement of authority.
              In any instance where an air taxi operator or commuter air carrier is required by a foreign government to produce evidence of its authority to engage in foreign air transportation under the laws of the United States, the Director, Office of Aviation Analysis (X-50), Office of the Secretary, 1200 New Jersey Avenue, SE., Washington, DC 20590, will, upon request, furnish the carrier with a written statement, outlining its general operating privileges under this part for presentation to the proper authorities of the foreign government.

            Subpart B—Exemptions

              Source:
              70 FR 25768, May 16, 2005.

              § 298.11
              Exemption authority.
              Air taxi operators and commuter air carriers are hereby relieved from the following provisions of 49 U.S.C. Subtitle VII only if and so long as they comply with the provisions of this part and the conditions imposed herein, and to the extent necessary to permit them to conduct air taxi or commuter air carrier operations:
              (a) Section 41101;
              (b) Section 41504; except that the requirements of that section shall apply to:
              (1) Tariffs for through rates, fares, and charges filed jointly by air taxi operators or commuter air carriers with air carriers or with foreign air carriers subject to the tariff-filing requirements of Chapter 415; and
              (2) Tariffs required to be filed by air taxi operators or commuter air carriers which embody the provisions of the counterpart to Agreement 18900 as specified in part 203 of this chapter;
              (c) Section 41702, except for the requirements that air taxi operators and commuter air carriers shall:
              (1) Provide safe service, equipment, and facilities in connection with air transportation;
              (2) Provide adequate service insofar as that requires them to comply with parts 252 and 382 of this chapter;
              (3) Observe and enforce just and reasonable joint rates, fares, and charges, and just and reasonable classifications, rules, regulations and practices as provided in tariffs filed jointly by air taxi operators or commuter air carriers with certificated air carriers or with foreign air carriers; and
              (4) Establish just, reasonable, and equitable divisions of such joint rates, fares, and charges as between air carriers participating therein which shall not unduly prefer or prejudice any of such participating air carriers;
              (d) Section 41310, except that the requirements of that subsection shall apply to through service provided pursuant to tariffs filed jointly by air taxi operators or commuter air carriers with certificated air carriers or with foreign air carriers and to transportation of the handicapped to the extent that that is required by part 382 of this chapter;
              (e) Section 41902;
              (f) Section 41708.

              § 298.12
              Duration of exemption.
              The exemption from any provision of 49 U.S.C. Subtitle VII provided by this part shall continue in effect only until such time as the Department shall find that enforcement of that provision would be in the public interest, at which time the exemption shall terminate or be conditioned with respect to the person, class of persons, or service (e.g., limited-entry foreign air transportation market) subject to the finding.

            Subpart C—Registration for Exemption by Air Taxi Operators

              Source:
              70 FR 25768, May 16, 2005.

              § 298.21
              Filing for registration by air taxi operators.
              (a) Every air taxi operator who plans to commence operations under this part shall register with the Department not later than 30 days prior to the commencement of such operations, unless, upon a showing of good cause satisfactory to the Manager, Technical Programs Branch (AFS-260), Federal Aviation Administration, registration within a lesser period of time is allowed.
              (b) The registration of an air taxi operator shall remain in effect until it is amended by the carrier or canceled by the Department.
              (c) Registration by all air taxi operators shall be accomplished by filing with the Department at the address specified in paragraph (d) of this section the following:
              (1) Air Taxi Registration (OST Form 4507), executed in duplicate. 6
                 This form shall be certified by a responsible official and shall include the following information:

                  6 OST Form 4507 can be obtained from the Manager, Technical Programs Branch, Federal Aviation Administration, AFS-260 at (202) 267-8166, or on the internet at https://www.faa.gov/about/office_org/headquarters_offices/avs/offices/afx/afs/afs200/afs260/exemptions/

              (i) The name of the carrier and its mailing address;
              (ii) The carrier's principal place of business, if different from its mailing address, and its telephone number and fax number;
              (iii) The carrier's FAA certificate number, if any, and the address and telephone number of the carrier's local FAA office;
              (iv) The type of service the carrier will offer (scheduled passenger, 7
                 scheduled cargo, mail under a U.S. Postal Service contract, on-demand passenger, on-demand cargo, or other service such as air ambulance operations, firefighting or seasonal operations);

                  7 Companies proposing to provide scheduled passenger service at the level established by this Part for commuter air carriers are not permitted to conduct such operations under their air taxi registration; such companies must first be found fit, willing and able to operate and be issued a Commuter Air Carrier Authorization by the Department.

              (v) A list of the aircraft that the carrier proposes to operate, or, in the case of an amendment to the registration, the aircraft that it is currently operating in its air taxi operations, and the aircraft type, FAA registration number and passenger capacity of each aircraft;
              (vi) For initial registration, the proposed date of commencement of air taxi operations;
              (vii) For amendments, whether the carrier has carried passengers in foreign air transportation during the previous 12 months;
              (viii) Whether the carrier is a citizen of the United States; and

              (ix) A certification that the registration is complete and accurate and that, if the carrier is engaged in foreign air transportation, or participating in an interline agreement, it subscribes to the terms of Agreement 18900 (see OST Form 4523).
              (2) A certificate of insurance (OST Form 6410) which is currently effective (or in case of initial registration, is to become effective), as defined in part 205 of this chapter;
              (3) An 8 dollar ($8) registration filing fee in the form of a check, draft, or postal money order payable to the Department of Transportation.
              (d) Registrations required in paragraph (c) of this section shall be submitted to the Department of Transportation, Federal Aviation Administration,Technical Programs Branch (AFS-260), 800 Independence Avenue SW, Room 831, Washington, DC 20591. For those air taxi operators that have a mailing address in the State of Alaska, the registrations shall be filed with the Department of Transportation, Federal Aviation Administration, Alaskan Region Headquarters (AAL-230), 222 West 7th Avenue, Box 14, Anchorage, Alaska 99513.
              [70 FR 25768, May 16, 2005, as amended by DOT-OST-2014-0140, 84 FR 15935, Apr. 16, 2019]

              § 298.22
              Processing by the Department.

              After examination of the OST Form 4507 submitted by the carrier, the Department will stamp the effective date of the registration on the form and return the duplicate copy to the carrier to confirm that it has registered with the Department as required by this part. The effective date of the registration shall not be earlier than the effective date of the insurance policy or policies named in the certificate of insurance filed by the carrier under § 298.21(c)(2).

              § 298.23
              Notifications to the Department of change in operations.
              (a) If any of the information contained on its registration changes, an air taxi operator shall submit an amendment reflecting the updated information. This amendment shall be filed no later than 30 days after the change occurs. There is no filing fee for submitting an amendment.
              (b) An amendment shall be made by resubmitting OST Form 4507 to the Department of Transportation, Federal Aviation Administration, Technical Programs Branch (AFS-260), 800 Independence Avenue SW, Room 831, Washington, DC 20591. If the air taxi operator has a mailing address in the State of Alaska, the form shall be mailed to the Department of Transportation, Federal Aviation Administration, Alaskan Region Headquarters Technical Standards Branch, (AAL-231), 222 West 7th Avenue, Box 14, Anchorage, Alaska 99513.
              [70 FR 25768, May 16, 2005, as amended by DOT-OST-2014-0140, 84 FR 15935, Apr. 16, 2019]

              § 298.24
              Cancellation of the registration.
              The registration of an air taxi operator may be canceled by the Department if any of the following occur:
              (a) The operator ceases its operations;
              (b) The operator's insurance coverage changes or lapses;
              (c) The operator fails to file an amended registration when required by § 298.23;
              (d) The operator's Air Carrier Certificate and/or Operations Specifications is revoked by the Federal Aviation Administration;
              (e) The operator fails to qualify as a citizen of the United States;
              (f) The Department determines that it is otherwise in the public interest to do so.

            Subpart D—Limitations and Conditions on Exemptions and Operations

              Source:
              70 FR 25768, May 16, 2005.

              § 298.30
              Public disclosure of policy on consumer protection.
              (a) Every air taxi and commuter air carrier shall cause to be displayed continuously in a conspicuous public place at each desk, station and position in the United States that is in charge of a person employed exclusively by it, or by it jointly with another person, or by any agent employed by it to sell tickets to passengers, a sign located so as to be clearly visible and readable to the traveling public, containing a statement setting forth the air taxi and commuter air carrier's policy on baggage liability and denied boarding compensation.
              (b) An air taxi or commuter air carrier shall provide a written notice on or with a passenger's ticket concerning baggage liability as provided in § 254.5 of this chapter. These ticket notices are required only for passengers whose ticket includes a flight segment that uses large aircraft (more than 60 seats).
              (c) If the substantive terms of the counter sign and ticket notice required by this section differ, the terms contained in the required ticket notice govern.

              § 298.31
              Scope of service and equipment authorized.
              Nothing in this part shall be construed as authorizing the operation of large aircraft in air transportation, and the exemption provided by this part to air taxi operators and commuter air carriers that register with the Department extends only to the direct operation in air transportation in accordance with the limitations and conditions of this part of aircraft originally designed to have a maximum passenger capacity of 60 seats or less or a maximum payload capacity of 18,000 pounds or less.

              § 298.32
              Limitations on operations to eligible places.

              No person shall provide scheduled passenger service as a commuter air carrier at an eligible place unless it has been found by the Department to be fit, willing, and able to conduct such service and issued a Commuter Air Carrier Authorization as provided in subpart E of this part.

              § 298.33
              Security requirements.
              In conducting operations under this part, an air taxi operator or a commuter air carrier is required to adhere to all security requirements established by the Department of Transportation and the Department of Homeland Security applicable to such operations.

              § 298.34
              [Reserved]

              § 298.35
              Limitations on carriage of mail.
              An air taxi operator or commuter air carrier is not authorized to carry mail except pursuant to contract with the U.S. Postal Service entered into pursuant to section 5402 of the Postal Reorganization Act (39 U.S.C. 5402).

              § 298.36
              Limitations on use of business name.
              (a) An air taxi operator or commuter air carrier in holding out to the public and in performing its services in air transportation shall do so only in the name or names in which its air carrier certificate is issued pursuant to section 44702 of 49 U.S.C. Subtitle VII by the Federal Aviation Administration, and in which it is registered with the Department under this part, or in which its Commuter Air Carrier Authorization is issued or other trade name is registered.
              (b) Slogans shall not be considered names for the purposes of this section, and their use is not restricted hereby.
              (c) Commuter air carriers are subject to the provisions of part 215 of this chapter with regard to the use and change of air carrier names.
              (d) Neither the provisions of this section nor the grant of a permission hereunder shall preclude Department intervention or enforcement action should there be evidence of a significant potential for, or of actual, public confusion.

              § 298.37
              Prohibition of services not covered by insurance.
              An air taxi operator or commuter air carrier shall not operate in air transportation or provide or offer to provide air transportation unless there is in effect liability insurance which covers such transportation and which is evidenced by a current certificate of insurance on file with the Department as required by part 205 of this chapter.

              § 298.38
              Financial security arrangements for operating Public Charters.
              When an air taxi operator or commuter air carrier performs a Public Charter under part 380 of this chapter, either:
              (a) The air taxi operator or commuter air carrier shall meet the bonding or escrow requirements applicable to certificated air carriers as set forth in § 212.8 of this chapter; or
              (b) The air taxi operator or commuter air carrier shall ensure that it does not receive any payments for the charter until after the charter has been completed. In this case, its contracts with the charter operator and the charter operator's depository bank, if any, shall state that the charter operator or bank, as applicable, shall retain control of and responsibility for all participant funds intended for payment for air transportation until after the charter has been completed, notwithstanding any provision of part 380 of this chapter.

            Subpart E—Commuter Air Carrier Authorizations

              Source:
              70 FR 25768, May 16, 2005.

              § 298.50
              Application.
              (a) Any person desiring to provide air transportation as a commuter air carrier must first obtain a Commuter Air Carrier Authorization. This shall be accomplished by filing with the Department—

              (1) An application in accordance with the requirements of parts 201 and 302 of this chapter;

              (2) Data in accordance with part 204 of this chapter to support a determination by the Department that the person is “fit, willing, and able” to operate the proposed commuter service; and
              (3) A $670 filing fee submitted in accordance with the provisions of § 389.21 of this chapter.
              (b) An executed original and two true copies of an application for a Commuter Air Carrier Authorization shall be filed with Docket Operations Office, U.S. Department of Transportation, 1200 New Jersey Avenue, SE., Washington, DC 20590.
              [70 FR 25768, May 16, 2005, as amended by DOT-OST-2014-0140, 84 FR 15935, Apr. 16, 2019]

              § 298.51
              Processing by the Department.
              In processing applications filed in accordance with § 298.50, the Department will generally follow the procedures set forth in §§ 302.207 through 302.211 of this chapter.

              § 298.52
              Air taxi operations by commuter air carriers.
              (a) A commuter air carrier that holds an effective Commuter Air Carrier Authorization and otherwise meets the requirements of this part is also authorized to conduct air taxi operations (e.g., scheduled cargo, mail under a U.S. Postal Service contract, on-demand passenger, on-demand cargo, or other service such as air ambulance operations, firefighting or seasonal operations) without having to meet the registration requirements of subpart C of this part, except as provided in paragraph (b) of this section.

              (b) Should a commuter air carrier cease conducting all scheduled passenger operations and its Commuter Air Carrier Authorization is suspended pursuant to §§ 298.53 and/or 204.7 of this chapter, it may continue to conduct air taxi operations provided that the carrier maintains in effect liability insurance coverage as required for such operations by part 205 of this chapter and, within 10 days of the cessation of scheduled passenger operations, registers as an air taxi operator in accordance with subpart C of this part; and provided further that the carrier continues to hold authority from the Federal Aviation Administration to conduct such air taxi operations.

              § 298.53
              Suspension or revocation of authority.
              A Commuter Air Carrier Authorization may be suspended or revoked if any of the following occur:
              (a) The operator fails to maintain insurance coverage as required by part 205 of this chapter for commuter operations;
              (b) The scheduled passenger authority under the operator's Air Carrier Certificate is suspended or revoked by the Federal Aviation Administration;
              (c) The operator does not commence operations for which it has been found fit, or the operator ceases those operations as provided in § 204.7 of this chapter;
              (d) The Department finds that the carrier is not fit, willing, and able to conduct scheduled service or fails to qualify as a citizen of the United States; or
              (e) The Department determines that it is otherwise in the public interest to do so.

            Subpart F—Reporting Requirements

              § 298.60
              General reporting instructions.
              (a) Each commuter air carrier and each small certificated air carrier shall file with the Department's Bureau of Transportation Statistics (BTS) the applicable schedules of BTS Form 298-C, “A Report of Financial and Operating Statistics for Small Aircraft Operators”, and Schedule T-100, “U.S. Air Carrier Traffic and Capacity Data by Nonstop Segment and On-Flight Market”, as required by this section.

              (b) A single copy of the BTS Form 298-C report shall be filed quarterly with the Office of Airline Information (OAI) for the periods ended March 31, June 30, September 30 and December 31 of each year to be received on or before May 10, August 10, November 10, and February 10, respectively. An electronic filing of the monthly Schedule T-100 is due at OAI within 30 days after the end of each month. Due dates falling on a Saturday, Sunday or Federal holiday will become effective on the next work day.
              (c) Reports required by this section shall be submitted to the Bureau of Transportation Statistics in a format specified in accounting and reporting directives issued by the Bureau of Transportation Statistics' Director of Airline Information.
              [ER-1399, 50 FR 19, Jan. 2, 1985, as amended by Doc. No. 47939, 57 FR 40104, Sept. 2, 1992; 60 FR 66726, Dec. 26, 1995; 67 FR 49231, July 30, 2002; 75 FR 41585, July 16, 2010; DOT-OST-2014-0140, 84 FR 15935, Apr. 16, 2019]

              § 298.61
              Reporting of traffic statistics.
              (a) Each commuter air carrier and small certificated air carrier shall file Schedule T-100, U.S. Air Carrier Traffic and Capacity Data by Nonstop Segment and On-Flight Market.”
              (b) Schedule T-100 shall be filed monthly as set forth in§ 298.60.
              (1) Schedule T-100 collects summarized flight stage data and on-flight market data from revenue flights. All traffic statistics shall be compiled in terms of each flight stage as actually performed. The detail T-100 data shall be maintained in such a manner as to permit monthly summarization and organization into two basic groupings. The first grouping, the nonstop segment information, is to be summarized by equipment type, within class of service, within pair-of-points, without regard to individual flight number. The second grouping requires that the enplanement/deplanement information be broken out into separate units called on-flight market records, which shall be summarized by class of service, within pair-of-points, without regard for equipment type or flight number.
              (2) Joint-service operations. The Department may authorize joint service operations between two direct air carriers. Examples of these joint-service operations are: blocked-space agreements; part-charter agreements; code-sharing agreements; wet-lease agreements, and similar arrangements.
              (i) Joint-service operations are reported by the carrier in operational control of the flight, i.e., the carrier that uses its flight crews under its own FAA operating authority. The traffic moving under these agreements is reported on Schedule T-100 the same way as any other traffic on the aircraft.
              (ii) If there are questions about reporting a joint-service operation, contact the BTS Assistant Director—Airline Information (fax no. 202 366-3383, telephone no. 202 366-4373). Joint-service operations are reported in Schedule T-100 in accordance with this paragraph (b).
              (iii) Operational control. The air carrier in operational control of the aircraft (the carrier that uses its flight crews under its own FAA operating authority) must report joint-service operations.
              (c) Service classes. (1) The statistical classifications are designed to reflect the operating characteristics attributable to each distinctive type of service offered. The combination of scheduled and nonscheduled operations with passenger, all-cargo, and military services are placed into service classes as follows:

                  Code
                  Type of Service

                  F
                  Scheduled Passenger/Cargo

                  G
                  Scheduled All-Cargo

                  L
                  Nonscheduled Civilian Passenger/Cargo

                  P
                  Nonscheduled Civilian Cargo

                  N
                  Nonscheduled Military Passenger/Cargo

                  R
                  Nonscheduled Military Cargo

              (2) Scheduled services include traffic and capacity elements applicable to air transportation provided pursuant to published schedules and extra sections of scheduled flights. Scheduled Passenger/Cargo (Service Class F) is a composite of first class, coach, and mixed passenger/cargo service.
              (3) Nonscheduled services include all traffic and capacity elements applicable to the performance of nonscheduled aircraft charters, and other air transportation services not constituting an integral part of services performed pursuant to published flight schedules.
              (d) Air transport traffic and capacity elements. (1) Within each of the service classifications, carriers shall report air transport traffic and capacity elements. The elements are reported on segment or market records as follows:

                  Code
                  Description
                  Segment
                  Market
                  Computed by DOT

                  Carrier, carrier entity code
                  S
                  M

                  Reporting period date
                  S
                  M

                  Origin airport code
                  S
                  M

                  Destination airport code
                  S
                  M

                  Service class code
                  S
                  M

                  Aircraft type code
                  S

                  110
                  Revenue passengers enplaned

                  M

                  130
                  Revenue passengers transported
                  S

                  140
                  Revenue passenger-miles

                  CFD*

                  210
                  Revenue cargo tons enplaned

                  CFD*

                  217
                  Enplaned freight

                  M

                  219
                  Enplaned mail

                  M

                  230
                  Revenue tons transported

                  CFD*

                  237
                  Transported freight
                  S

                  239
                  Transported mail
                  S

                  240
                  Revenue ton-miles

                  CFD*

                  241
                  Revenue ton-miles passenger

                  CFD*

                  247
                  Revenue ton-miles freight

                  CFD*

                  249
                  Revenue ton-miles mail

                  CFD*

                  270
                  Available capacity payload
                  S

                  280
                  Available ton-miles

                  CFD*

                  310
                  Available seats, total
                  S

                  320
                  Available seat-miles

                  CFD*

                  410
                  Revenue aircraft miles flown

                  CFD*

                  430
                  Revenue aircraft miles scheduled

                  CFD*

                  501
                  Inter-airport distance

                  CFD*

                  510
                  Revenue aircraft departures performed
                  S

                  520
                  Revenue aircraft departures scheduled
                  S

                  610
                  Revenue aircraft hours (airborne)
                  S

                  630
                  Aircraft hours (ramp-to-ramp)
                  S

                  650
                  Total aircraft hours (airborne)
                  S

                *CFD = Computed by DOT from detail Schedule T-100 and T-100(f) data.

              (2) [Reserved]
              (e) These reported items are further described as follows:
              (1) Reporting period date. The year and month to which the reported data are applicable.
              (2) Carrier, Carrier entity code. Each air carrier shall report its name and entity code (a five digit code assigned by BTS that identifies both the carrier and its entity) for its particular operations. The Office of Airline Information (OAI) will assign or confirm codes upon request; OAI's address is Office of Airline Information, BTS, DOT, RTS-42, 1200 New Jersey Avenue, SE., Washington, DC 20590-0001.
              (3) Service class code. The service class codes are prescribed in section 298.61(c). In general, classes are divided into two broad categories, either scheduled or nonscheduled, where scheduled = F + G and nonscheduled = L + N + P + R.
              (4) Record type code. This code indicates whether the data pertain to non-stop segment (record type S) or on-flight market (record type M).
              (5) Aircraft type code. This code represents the aircraft types, as described in the BTS' Accounting and Reporting Directives.
              (6) Origin, Destination airport code(s). These codes represent the industry designators. An industry source of these industry designator codes is the Official Airline Guide (OAG). OAI assigns codes upon request if not listed in the OAG.
              (7) 110 Revenue passengers enplaned. The total number of revenue passengers enplaned at the origin point of a flight, boarding the flight for the first time; an unduplicated count of passengers in a market. Under the T-100 system of reporting, these enplaned passengers are the sum of the passengers in the individual on-flight markets. In the domestic entity, report only the total revenue passengers enplaned in item 110.
              (8) 130 Revenue passengers transported. The total number of revenue passengers transported over a single flight stage, including those already on the aircraft from a previous flight stage. In the domestic entity, report only the total revenue passengers transported in item 130.
              (9) 140 Revenue passenger-miles. Computed by multiplying the inter-airport distance of each flight stage by the number of passengers transported on that flight stage.
              (10) 210 Revenue cargo tons enplaned. The total number of cargo tons enplaned. This data element is a sum of the individual on-flight market figures for each of the following categories: 217 Freight and 219 Mail. This element represents an unduplicated count of the revenue traffic in a market.
              (11) 217 Enplaned freight. The total weight of revenue freight enplaned at the origin point of a flight, loaded onto the flight for the first time; an unduplicated count of freight in a market.
              (12) 219 Enplaned mail. The total weight of mail enplaned at the origin point of a flight, loaded onto the flight for the first time; an unduplicated count of mail in a market.
              (13) 230 Revenue tons transported. The number of tons of revenue traffic transported. This element is the sum of the following elements: 231 Passengers transported-total, 237 Freight, and 239 Mail.
              (14) 237 Transported freight. The total weight of freight transported over a single flight stage, including freight already on the aircraft from a previous flight stage.
              (15) 239 Transported mail. The total weight of mail transported over a single flight stage, including mail already on the aircraft from a previous flight stage.
              (16) 240 Revenue ton-miles—total. Ton-miles are computed by multiplying the revenue aircraft miles flown (410) on each flight stage by the number of tons transported on that stage. This element is the sum of 241 through 249.
              (17) 241 Revenue ton-miles—passenger. Equals the number of passengers times 200, times inter-airport distance, divided by 2000. A standard weight of 200 pounds per passenger, including baggage, is used for all operations and service classes.
              (18) 247 Revenue ton-miles—freight. Equals the volume of freight in whole tons times the inter-airport distance.
              (19) 249 Revenue ton-miles—mail. Equals the volume of mail in whole tons times the inter-airport distance.
              (20) 270 Available capacity-payload. The available capacity is collected in pounds. This figure shall reflect the payload or total available capacity for passengers, mail, and freight applicable to the aircraft with which each flight stage is performed.
              (21) 280 Available ton-miles. The aircraft miles flown on each flight stage multiplied by the available capacity on the aircraft in tons.
              (22) 310 Available seats. The number of seats available for sale. This figure reflects the actual number of seats available, excluding those blocked for safety or operational reasons. In the domestic entity, report the total available seats in item 130. Scheduled and nonscheduled available seats are reported in item 130.
              (23) 320 Available seat-miles. The aircraft miles flown on each flight stage multiplied by the seat capacity available for sale.
              (24) 410 Revenue aircraft miles flown. Revenue aircraft miles flown are computed based on the airport pairs between which service is actually performed; miles are generated from the data for scheduled aircraft departures (Code 520) times the inter-airport distances (Code 501).
              (25) 430 Revenue aircraft miles scheduled. The number of revenue aircraft miles scheduled. All such data shall be maintained in conformity with the airport pairs between which service is scheduled, whether or not in accordance with actual performance.
              (26) 501 Inter-airport distance. The great circle distance, in official statute miles as prescribed in part 247 of this chapter, between airports served by each flight stage. Official inter-airport mileage may be obtained from the Office of Airline Information.
              (27) 510 Revenue aircraft departures performed. The number of revenue aircraft departures performed.
              (28) 520 Revenue aircraft departures scheduled. The number of revenue aircraft departures scheduled, whether or not actually performed.
              (29) 610 Revenue aircraft hours (airborne). The elapsed time, computed from the moment the aircraft leaves the ground until its next landing.
              (30) 630 Aircraft hours (ramp-to-ramp). The elapsed time, computed from the moment the aircraft first moves under its own power from the boarding ramp at one airport to the time it comes to rest at the ramp for the next point of landing. This data element is also referred to as ‘block’ and ‘block-to-block’ aircraft hours.
              (31) 650 Total aircraft hours (airborne). The elapsed time, computed from the moment the aircraft leaves the ground until it touches down at the next landing. This includes flight training, testing, and ferry flights.
              (f) Public availability of Schedule T-100 data. Detailed domestic on-flight market and nonstop segment data in Schedule T-100, except military data, shall be publicly available after processing. Domestic data are defined as data from air transportation operations from a place in any State of the United States, the District of Columbia, the Commonwealth of Puerto Rico and the Virgin Islands, or a U.S. territory or possession to a place in any State of the United States, the District of Columbia, the Commonwealth of Puerto Rico and the Virgin Islands, or a U.S. territory or possession.
              [Doc. No. OST-98-4043, 67 FR 49231, July 30, 2002, as amended by Doc. No. OST-2006-26053, 75 FR 41585, July 16, 2010; DOT-OST-2014-0140, 84 FR 15935, Apr. 16, 2019 ]

              § 298.62
              Reporting of financial data.
              (a) Each commuter air carrier and each small certificated air carrier shall file BTS Form 298-C, Schedule F-1 “Report of Financial Data.” This report shall be filed quarterly as set forth in § 298.60 of this part.
              (b) Each carrier shall indicate in the space provided, its full corporate name and the quarter for which the report is filed.
              (c) This schedule shall be used to report financial data for the overall or system operations of the carrier. At the option of the carrier, the data may be reported in whole dollars by dropping the cents. Financial data shall be reported in the following categories:
              (1) Line 1 “Total Operating Revenues” shall include gross revenues accruing from services ordinarily associated with air transportation and air transportation-related services. This category shall include revenue derived from scheduled service operations, revenue derived from nonscheduled service operations, amounts of compensation paid to the carrier under section 41732 of 49 U.S.C. Subtitle VII and other transport-related revenue such as in-flight sales, restaurant and food service (ground), rental of property or equipment, limousine service, cargo pick-up and delivery charges, and fixed-base operations involving the selling or servicing of aircraft, flying instructions, charter flights, etc.
              (2) Line 2 “Total Operating Expenses” shall include expenses of a character usually and ordinarily incurred in the performance of air transporation and air transportation services. This category shall include expenses incurred: directly in the in-flight operation of aircraft; in the holding of aircraft and aircraft personnel in readiness for assignment to an in-flight status; on the ground in controlling and protecting the in-flight movement of aircraft; landing, handling or servicing aircraft on the ground; selling transportation; servicing and handling traffic; promoting the development of traffic; and administering operations generally. This category shall also include expenses which are specifically identifiable with the repair and upkeep of property and equipment used in the performance of air transportation, all depreciation and amortization expenses applicable to property and equipment used in providing air transportation services, all expenses associated with the transport-related revenues included on line 1 of this schedule, and all other expenses not specifically mentioned which are related to transport operations. Interest expense and other nonoperating expenses attributable to financing or other activities which are extraneous to and not an integral part of air transportation or its incidental services shall not be included in this category.
              (3) Line 3 “Net Income or (Loss)” shall reflect all operating and nonoperating items of profit and loss recognized during the period except for prior period adjustments.
              (4) Line 4 “Passenger Revenues-Scheduled Service” shall include revenue generated from the transportation of passengers between pairs of points which are served on a regularly scheduled basis.
              (d) Data reported on this schedule shall be withheld from public release for a period of 3 years after the close of the calendar quarter to which the report relates.
              [ER-1399, 50 FR 20, Jan. 2, 1985, as amended by 53 FR 48528, Dec. 1, 1988; 60 FR 43528, Aug. 22, 1995; 60 FR 66726, Dec. 26, 1995; 67 FR 49234, July 30, 2002; DOT-OST-2014-0140, 84 FR 15935, Apr. 16, 2019]

              § 298.63
              Reporting of aircraft operating expenses and related statistics by small certificated air carriers.
              (a) Each small certificated air carrier shall file BTS Form 298-C, Schedule F-2 “Report of Aircraft Operating Expenses and Related Statistics.” This schedule shall be filed quarterly as prescribed in § 298.60. Data reported on this report shall be for the overall or system operations of the air carrier.

              (b) Each carrier shall indicate in the space provided its full corporate name and the quarter for which the report is filed.

              (c) This schedule shall show the direct and indirect expenses incurred in aircraft operations. Direct expense data applicable to each aircraft type operated by the carrier shall be reported in separate columns of this schedule. Each aircraft type reported shall be identified at the head of each column in the space provided for “Aircraft Type.” “Aircraft Type” refers to aircraft models such as Beech-18, Piper PA-32, etc. Aircraft Type designations are prescribed in the Accounting and Reporting Directives, which is available from the BTS' Office of Airline Information. In the space provided for “Aircraft Code” carriers shall insert the three digit code prescribed in the Accounting and Reporting Directives for the reported aircraft type. (Note: Aircraft of the same type but different cabin configuration may be grouped into a single classification; therefore, carriers are not required to report the fourth digit of an aircraft code indicating cabin configuration.)
              (d) Line 1 Direct aircraft operating expenses shall be reported in the following categories:
              (1) Line 2 “Flying Operations (Less Rental)” shall be subdivided as follows:
              (i) Line 3 “Pilot and Copilot” expense shall include pilots' and copilots' salaries, and related employee benefits, pensions, payroll taxes and personnel expenses.
              (ii) Line 4 “Aircraft Fuel and Oil” expense shall include the cost of fuel and oil used in flight operations and nonrefundable aircraft fuel and oil taxes.
              (iii) Line 5 “Other” expenses shall include general (hull) insurance, and all other expenses incurred in the in-flight operation of aircraft and holding of aircraft and aircraft operational personnel in readiness for assignment to an in-flight status, which are not provided for otherwise on this schedule.
              (2) Line 6 “Total Flying Operations (Less Rentals)” shall equal the sum of lines 3, 4 and 5.
              (3) Line 7 “Maintenance-Flight Equipment” shall include the cost of labor, material and related overhead expended by the carrier to maintain flight equipment, general services purchased for flight equipment maintenance from associated or other outside companies, and provisions for flight equipment overhauls.
              (4) Line 8 “Depreciation and Rental-Flight Equipment” expense shall include depreciation of flight equipment, amortization of capitalized leases for flight equipment, provision for obsolescence and deterioration of spare parts, and rental expense of flight equipment.
              (5) Line 9 “Total Direct Expense” shall equal the sum of lines 6, 7 and 8.
              (e) Line 10 Indirect aircraft operating expenses shall be reported only in total for all aircraft types and shall be segregated according to the following categories:
              (1) Line 11 “Flight Attendant Expense” shall include flight attendants' salaries, and related employee benefits, pensions, payroll taxes and personnel expenses.
              (2) Line 12 “Traffic Related Expense” shall include traffic solicitor salaries, traffic commissions, passenger food expense, traffic liability insurance, advertising and other promotion and publicity expenses, and the fringe benefit expenses related to all salaries in this classification.
              (3) Line 13 “Departure Related (Station) Expense” shall include aircraft and traffic handling salaries, landing fees, clearance, customs and duties, related fringe benefit expenses and maintenance and depreciation on ground property and equipment.
              (4) Line 14 “Capacity Related Expense” shall include salaries and fringe benefits for general management personnel, recordkeeping and statistical personnel, lawyers and law clerks, and purchasing personnel; legal fees and expenses; stationery; printing; uncollectible accounts; insurance purchased-general; memberships; corporate and fiscal expenses; and all other expenses which cannot be identified or allocated to some other specifically identified indirect cost category.
              (f) Line 15 “Total Indirect Expense” shall equal the sum of lines 11, 12, 13 and 14.
              (g) Line 16 “Total Operating Expense” shall equal the sum of lines 9 and 15.

              (h) Line 17 “Total Gallons of Fuel Issued” shall include the gallons of fuel used in flight operations related to fuel cost reported in total and by aircraft type on Line 4.
              [ER-1399, 50 FR 20, Jan. 2, 1985, as amended by Doc. No. 47939, 57 FR 40104, Sept. 2, 1992; 60 FR 66726, Dec. 26, 1995; 67 FR 49234, July 30, 2002]

              § 298.65
              Requests for extensions of time within which to file reports or for waivers from reporting requirements.
              (a) If circumstances prevent the filing of BTS Form 298-C on or before the due date, a written request for an extension may be submitted. Except in cases of emergency, the request must be delivered to the BTS's Office of Airline Information in writing at least three days in advance of the due date. The request must state good and sufficient reason to justify the granting of the extension and the date when the reports can be filed. If the request is denied, the air carrier remains subject to the filing requirements to the same extent as if no request for extension of time had been made.
              (b) The Office of Airline Information may waive any reporting requirements contained in §§ 298.61, 298.62, 298.63 and 298.64 of this part, upon its own initiative or upon written request from any air carrier if the waiver is in the public interest and the request demonstrates that:
              (1) Unusual circumstances warrant such a departure;
              (2) A specifically defined alternative procedure or technique will result in a substantially equivalent or more accurate portrayal; and
              (3) The application of the alternative procedure will maintain or improve uniformity in reporting between air carriers.
              [ER-1399, 50 FR 21, Jan. 2, 1985, as amended by Doc. No. 47939, 57 FR 40104, Sept. 2, 1992; 60 FR 66726, Dec. 26, 1995]

              § 298.66
              Reporting exemption for State collection of data.
              (a) The Office of Airline Information may exempt a commuter air carrier from the reporting requirements of § 298.61 of this part if a State government collects the information specified in that section and provides it to the Department by the dates specified. The data provided to the Department in this manner must be at least as reliable as if they were collected by the Department directly.
              (b) The Office of Airline Information will provide assistance to any State agency interested in participating in this exemption program.
              [ER-1399, 50 FR 21, Jan. 2, 1985, as amended by Doc. No. 47939, 57 FR 40104, Sept. 2, 1992; 60 FR 66726, Dec. 26, 1995]

            Subpart G—Public Disclosure of Data

              § 298.70
              Public disclosure of data.
              (a) Detailed domestic on-flight market data and nonstop segment data except military data shall be made publicly available after processing. Domestic data are defined as data from air transportation operations from a place in any State of the United States, the District of Columbia, the Commonwealth of Puerto Rico and the Virgin Islands, or a U.S. territory or possession to a place in any State of the United States, the District of Columbia, the Commonwealth of Puerto Rico and the Virgin Islands, or a U.S. territory or possession. Domestic military operations are reported under service codes N or R.
              (b) Detailed international on-flight market and nonstop segment data in Schedule T-100 and Schedule T-100(f) reports, except military data, shall be publicly available immediately following the Department's determination that the database is complete, but no earlier than six months after the date of the data. Military operations are reported under service codes N or R. Data for on-flight markets and nonstop segments involving no U.S. points shall not be made publicly available for three years. Industry and carrier summary data may be made public before the end of six months or the end of three years, as applicable, provided there are three or more carriers in the summary data disclosed. The Department may, at any time, publish international summary statistics without carrier detail.

              (c) Schedule F-1 “Report of Financial Data” shall be withheld from public release for a period of 3 years after the close of the calendar quarter to which the report relates.

              (d) The Department may release nonstop segment and on-flight market detail data by carrier or individual Schedule F-1 “Report of Financial Data” before the end of the confidentiality period as follows:
              (1) To foreign governments as provided in reciprocal arrangements between the foreign country and the U.S. Government for exchange of on-flight market and/or nonstop segment data submitted by air carriers of that foreign country and U.S. carriers serving that foreign country.
              (2) To parties to any proceeding before the Department under 49 U.S.C. Subtitle VII (Transportation), as required by an Administrative Law Judge or other decision-maker of the Department. Parties may designate agents or consultants to receive the data in their behalf, provided the agents or consultants agree to abide by the disclosure restrictions. Any data to which access is granted pursuant to this provision may be introduced into evidence, subject to the normal rules of admissibility.
              (3) To agencies or other components of the U.S. Government for their internal use only.
              [Doc. No. OST-98-4043, 67 FR 49234, July 30, 2002, as amended by DOT-OST-2014-0140, 84 FR 15935, Apr. 16, 2019]

            Subpart H—Violations

              § 298.80
              Disclosures.
              (a) Before entering a contract for a specific flight or series of flights with charterers, air taxi operators and commuter air carriers must disclose to the charterer the information in paragraphs (a)(1) and (2) of this section. Before entering a contract for a specific flight or series of flights with charterers, air taxi operators and commuter air carriers must, upon request of the charterer, disclose to the charterer the information in paragraphs (a)(3), (4), and (5) of this section. The disclosures may be accomplished through electronic transmissions.
              (1) That the flight will be performed by another direct air carrier or direct foreign air carrier if that is the case. The corporate name of the direct air carrier or direct foreign air carrier in operational control of the aircraft on which the air transportation is to be performed and any other names in which that direct carrier holds itself out to the public.

              (2) If the flight is to be performed by another direct air carrier or direct foreign air carrier, the capacity in which the air taxi operator or commuter air carrier is acting in contracting for the air transportation, i.e., as a principal, as an agent of the charterer, or as an agent of the direct air carrier that will be in operational control of the flight.
              (3) If the flight is to be performed by another direct air carrier or foreign direct air carrier and the air taxi operator or commuter air carrier is acting as the agent of the charterer, the air taxi operator or commuter air carrier must disclose the existence of any corporate or business relationship, including a preexisting contract, between the air taxi operator or commuter air carrier and the direct carrier that will be in operational control of the flight that may have a bearing on the air taxi operator's or commuter air carrier's selection of the direct carrier that will be in operational control of the flight.
              (4) The total cost of the air transportation paid by the charterer to or through the air taxi operator or commuter air carrier, including any carrier-imposed fees or government-imposed taxes and fees. Specific individual fees, taxes, or costs may, but are not required to be itemized.
              (5) The existence of any fees and their amounts collected by third parties, if known (or a good faith estimate if not known), including fuel, landing fees, and aircraft parking or hangar fees for which the charterer will be responsible for paying directly.

              (b) If any of the information in paragraph (a) of this section that is required to be disclosed to the charterer or requested by the charterer to be disclosed is not known at the time the contract is entered into or changes thereafter, air taxi operators and commuter air carriers must provide the information to the charterer within a reasonable time after such information becomes available to the air taxi operator or commuter air carrier, such that the charterer has enough time to make an informed decision as to whether to accept the additional information or accept the change.
              (c) If the information in paragraph (a) of this section that is required to be disclosed to the charterer or requested by the charterer to be disclosed is not provided to the charterer within a reasonable time after such information becomes available to the air taxi operator or commuter air carrier, air taxi operators and commuter air carriers must provide the charterer with the opportunity to cancel the contract for air transportation, including any services in connection with such contract, and receive a full refund of any monies paid for the charter air transportation and services.
              (d) Except in exigent circumstances particular to a passenger, air taxi operators and commuter air carriers must disclose prior to the start of the air transportation the information in paragraph (a) of this section that is required or requested to be disclosed.
              (e) If the information in paragraph (a) of this section that is required to be disclosed to the charterer or requested by the charterer to be disclosed changes after the air transportation covered by the contract has begun, air taxi operators and commuter air carriers must provide information regarding any such changes to the charterer within a reasonable time after such information becomes available to the air taxi operator or commuter air carrier.
              (f) If the changes in information described in paragraph (e) of this section are not provided to the charterer within a reasonable time after becoming available to the air taxi operator or commuter air carrier, air taxi operators and commuter air carriers must provide the charterer with the opportunity to cancel the remaining portion of the contract for charter air transportation, including any services paid for in connection with such contract, and receive a full refund of any monies paid for the charter air transportation and services not yet provided.
              [Dockt. No. DOT-OST-2007-27057, 83 FR 46877, Sept. 17, 2018]

            Subpart I—Violations

              Source:
              Dockt. No. DOT-OST-2007-27057, 83 FR 46877, Sept. 17, 2018, unless otherwise noted.

              § 298.90
              Prohibited unfair or deceptive practices or unfair methods of competition.
              (a) Violations of this Part shall be considered to constitute unfair or deceptive practices or unfair methods of competition in violation of 49 U.S.C. 41712.
              (b) In addition to paragraph (a) of this section, the following enumerated practices, among others, by an air taxi operator or commuter air carrier are unfair or deceptive practices or unfair methods of competition in violation of 49 U.S.C. 41712:
              (1) Misrepresentations that may induce members of the public to reasonably believe that the air taxi operator or commuter air carrier will be, or is, in operational control of a flight when that is not the case.
              (2) Misrepresentations as to the quality or kind of service or type of aircraft.
              (3) Misrepresentations as to the time of departure or arrival, points served, route to be flown, stops to be made, or total trip-time from point of departure to destination.
              (4) Misrepresentations as to the qualifications of pilots or safety record or certification of pilots, aircraft, or air carriers.
              (5) Misrepresentations that passengers are directly insured when they are not so insured. For example, where the only insurance in force is that protecting the air taxi operator or commuter air carrier in the event of liability.
              (6) Misrepresentations as to fares or charges for air transportation or services in connection therewith.
              (7) Misrepresentations as to membership in or involvement with an organization that audits direct air carriers or that the direct air carrier to be used for a flight meets a standard set by an auditing organization.

              (8) Representing that a contract for a specified direct air carrier, aircraft, flight, or time has been arranged without a binding commitment with a direct air carrier for the furnishing of such transportation as represented.
              (9) Selling or contracting for air transportation while knowing or having reason to know or believe that such air transportation cannot be legally performed by the direct air carrier or foreign direct air carrier that is to perform the air transportation.
              (10) Misrepresentations as to the requirements that must be met by charterers in order to qualify for charter flights.
              (11) Using or displaying or permitting or suffering to be used or displayed the name, tradename, slogan or any abbreviation thereof, of an air charter broker in advertisements, on or in places of business, or on or in aircraft or any other place in connection with the name of the air taxi or commuter air carrier in such manner that it may mislead or confuse potential consumers with respect to the status of the air charter broker.

              § 298.92
              Enforcement.
              In case of any violation of the provisions of 49 U.S.C. Subtitle VII, or this part, or any other rule, regulation, or order issued under the Statute, the violator may be subject to a proceeding pursuant to section 46101 of 49 U.S.C. Subtitle VII before the Department, or sections 46106 through 46108 of 49 U.S.C. Subtitle VII before a U.S. District Court, as the case may be, to compel compliance therewith; or to civil penalties pursuant to the provisions of section 46301 of 49 U.S.C. Subtitle VII; or, in the case of a willful violation, to criminal penalties pursuant to the provisions of section 46316 of 49 U.S.C. Subtitle VII; or other lawful sanctions including revocation of operating authority.
              [Doc. No. DOT-OST-2007-27057, 83 FR 46877, Sept. 17, 2018, as amended by DOT-OST-2014-0140, 84 FR 15935, Apr. 16, 2019]

        SUBCHAPTER B—PROCEDURAL REGULATIONS

          Pt. 300
          PART 300—RULES OF CONDUCT IN DOT PROCEEDINGS UNDER THIS CHAPTER

            Sec.
            300.0
            Applicability.
            300.1
            Judicial standards of practice.
            300.2
            Prohibited communications.
            300.3
            Reporting of communications.
            300.4
            Separation of functions in hearing cases.
            300.5
            Prohibited conduct.
            300.6
            Practitioners' standards of conduct.
            300.7
            Conciseness.
            300.8
            Opinions or rulings by the General Counsel.
            300.9
            Disqualification of partners of DOT employees.
            300.10
            Motions to disqualify DOT employee in review of hearing matters.
            300.11
            Use of confidential information.
            300.12
            Violations.

            Authority:
            49 U.S.C. subtitle I and chapters 401, 411, 413, 415, 417, 419, 421, 449, 461, 463, and 465.

            Source:
            Docket No. 82, 50 FR 2380, Jan. 16, 1985, unless otherwise noted.

            § 300.0
            Applicability.
            The rules of conduct set forth in this part except as otherwise provided in this or any other DOT regulation shall govern the conduct of the parties and their representatives, and the relationships between the Office of the Secretary of Transportation, the Office of the Assistant Secretary for Aviation and International Affairs, and the Office of the General Counsel, including regular personnel, and officials, special Government employees, consultants, or experts under contract to the Department of Transportation (DOT) and administrative law judges (hereinafter referred to as “DOT employee(s)”) and all other persons in all DOT matters involving aviation economic and enforcement proceedings.
            [Doc. No. 82, 50 FR 2380, Jan. 16, 1985, as amended by Amdt. 1-261, 59 FR 10061, Mar. 3, 1994; 60 FR 43528, Aug. 22, 1995]

            § 300.1
            Judicial standards of practice.
            Certain of DOT's functions involving aviation economic and enforcement proceedings are similar to those of a court, and parties to cases before DOT and those who represent such parties are expected—in fact and in appearance—to conduct themselves with honor and dignity as they would before a court. By the same token, any DOT employee or administrative law judge carrying out DOT's quasi-judicial functions and any DOT employee making recommendations or advising them are expected to conduct themselves with the same fidelity to appropriate standards of propriety that characterize a court and its staff. The standing and effectiveness of DOT in carrying out its quasi-judicial functions are in direct relation to the observance by DOT, DOT employees, and the parties and attorneys appearing before DOT of the highest standards of judicial and professional ethics. The rules of conduct set forth in this part are to be interpreted in light of those standards.
            [Doc. No. 82, 50 FR 2380, Jan. 16, 1985, as amended at 60 FR 43528, Aug. 22, 1995]

            § 300.2
            Prohibited communications.
            (a) Basic requirement. Except as provided in paragraphs (c), (d) and (e) there shall be no substantive communication in either direction between any concerned DOT employee and any interested person outside DOT, concerning a public proceeding, until after final disposition of the proceeding, other than as provided by Federal statute or published DOT rule or order.
            (b) Definitions. For purposes of this part:
            (1) A “substantive communication” is any written or oral communication relevant to the merits of the proceeding.
            (2) The “DOT decisionmaker” is defined in 14 CFR 302.2 and 302.18.
            (3) A “concerned DOT employee” is a DOT employee who is or may reasonably be expected to be directly involved in a decision which is subject to a public proceeding.
            (4) A “public proceeding” is one of the following:
            (i) A hearing proceeding (i.e., proceeding conducted on-the record after notice and opportunity for an oral evidentiary hearing as provided in §§ 302.17-302.38)
            (ii) A rulemaking proceeding involving a hearing as described in paragraph (b)(4)(i) of this section or an exemption proceeding covered by this chapter. (Other rulemaking proceedings are covered by the ex parte communication policies of DOT Order 2100.2.)
            (iii) A tariff filing after DOT has ordered an investigation or a complaint has been filed or docketed.
            (iv) A proceeding initiated by DOT show-cause order, after the filing in the docket of an identifiable written opposition to the order's tentative findings.
            (v) Any other proceeding initiated by a docket filing, other than a petition for generally applicable rulemaking, after the filing in the docket of an identifiable written opposition to the initiating document.
            (c) General exceptions. Paragraph (a) of this section shall not apply to the following:
            (1) Informal communications between legal counsel, including discussions about stipulations and other communications considered proper in Federal court proceedings.
            (2) Information given to a DOT employee who is participating in a hearing case on behalf of an office that is a party, to another DOT employee who is reviewing that work, or to his or her supervisors within that office.
            (3) Communications made in the course of an investigation to determine whether formal enforcement action should be begun.
            (4) Settlement discussions and mediation efforts.
            (5) Information given at the request of a DOT employee acting upon a specific direction of DOT, in a case other than a hearing proceeding as described in paragraphs (b)(4) (i) and (ii) (a “nonhearing case”), where DOT has decided that emergency conditions exist and this section would otherwise prevent the obtaining of needed information in a timely manner.
            (6) Information given at the request of a DOT employee in a tariff matter after a complaint is filed but before an investigation is ordered.
            (7) Nonhearing cases that are to be decided within 30 days after the filing of the initiating document.
            (8) Nonhearing cases arising under 49 U.S.C. 41731-42.
            (9) In nonhearing cases, communications with other Federal agencies not exempted by paragraph (e) of this section, provided the agencies have not participated as parties in the proceeding by making filings on-the-record.
            (10) Information given at the request of a DOT career employee in the course of investigating or clarifying information filed, or pursuant to a waiver granted to an applicant or other interested person, in docketed proceedings involving determinations of fitness and/or U.S. citizenship only, for that portion of the proceeding that precedes the issuance of a show-cause order or an order instituting a formal proceeding. Motions for such waivers and any answers shall be filed in the applicable docket in accordance with § 302.11 of the Department's Procedural Regulations (14 CFR 302.11) and served upon all parties to the proceeding.
            (d) Status and expedition requests. Paragraph (a) of this section shall not apply to oral or written communications asking about the status, or requesting expeditious treatment, of a public proceeding. However, any request for expeditious treatment should be made in accordance with the Rules of Practice, particularly Rule 11, § 302.11 of this chapter.
            (e) National defense and foreign policy. In nonhearing cases, paragraph (a) of this section shall not apply to communications concerning national defense or foreign policy matters, including international aviation matters. In hearing cases, any communications on those subjects that would be barred by paragraph (a) of this section are permitted if the communicator's position with respect thereto cannot otherwise be fairly presented, but such communications shall not be included as part of the record on which decisions must be made.
            (f) Communications not considered. A communication in violation of this section shall not be considered part of a record, or included as available material, for decision in any proceeding.
            [Doc. No. 82, 50 FR 2380, Jan. 16, 1985, as amended by Amdt. 300-7, 52 FR 18904, May 20, 1987; 60 FR 10312, Feb. 24, 1995; 60 FR 43528, Aug. 22, 1995; 60 FR 43528, Aug. 22, 1995; 65 FR 6456, Feb. 9, 2000; Doc. No. DOT-OST-2014-0140, 84 FR 15935, Apr. 16, 2019]

              Effective Date Note:
              At 84 FR 71717, Dec. 27, 2019, § 300.2 was amended by revising paragraph (b)(4)(ii), effective Jan. 27, 2020. For the convenience of the user, the revised text is set forth as follows:

                  § 300.2
                  Prohibited Communications.

                  (b) * * *
                  (4) * * *
                  (ii) A rulemaking proceeding involving a hearing as described in paragraph (b)(4)(i) of this section or an exemption proceeding covered by this chapter. (Other rulemaking proceedings are covered by the ex parte communication policies of DOT Order 2100.6 and 49 CFR 5.19.)

            § 300.3
            Reporting of communications.
            (a) General. The following types of substantive communication shall be reported as specified in paragraph (b) of this section:
            (1) Any communication in violation of § 300.2(a) of this chapter.
            (2) Information given upon determination of an emergency under § 300.2(c)(5) of this chapter.
            (3) Information given at the request of a DOT employee in a tariff matter under § 300.2(c)(6) of this chapter.
            (4) Communications in nonhearing cases to be decided within 30 days under § 300.2(c)(7) of this chapter.
            (5) Communications in nonhearing cases arising under 49 U.S.C. 41731-42, made under § 300.2(c)(8).
            (b) Public filing. (1) A written communication shall be placed onto the electronic docket management system (http://www.regulations.gov) in the file of the docket number corresponding to the proceeding, which shall be available for inspection and copying during business hours in Office of Docket Operations.
            (2) An oral communication shall be summarized by the DOT employee receiving it. One copy shall be put into a public file as described in paragraph (b) (1) of this section, and another copy shall be mailed to the communicator.

            (3) Electronic copies of written communications and oral summaries shall be posted to the DOT's electronic docket. Such docketed materials may be searched, viewed, and downloaded through the Internet at www.regulations.gov

            (4) Copies of all filings under this part dealing with discontinuances or reductions of air transportation shall be mailed to the directly affected local communities, State agencies, and airport managers.
            (c) Status and expedition requests. A DOT decisionmaker who receives a communication asking about the status or requesting expeditious treatment of a public proceeding, other than a communication concerning national defense or foreign policy (including international aviation), shall either:
            (1) Refer the communicator to Office of Docket Operations.
            (2) If the DOT decisionmaker responds by advising on the status, put a memorandum describing the exchange in the public file as described in paragraph (b)(1) of this section.
            [Doc. No. 82, 50 FR 2380, Jan. 16, 1985, as amended at 60 FR 43528, Aug. 22, 1995; Doc. No. DOT-OST-2002-12200, 67 FR 30325, May 6, 2002; Doc. No. DOT-OST-2014-0140, 84 FR 15935, Apr. 16, 2019]

            § 300.4
            Separation of functions in hearing cases.
            (a) This section applies after the initiation of a hearing or enforcement case by the Department.

            (b) A DOT employee who is participating in a hearing case on behalf of an office that is a party, another DOT employee who is in fact reviewing the position taken, or who has participated in developing the position taken in that case, or, in cases involving accusatory or disciplinary issues (including all enforcement cases) such employees' supervisors within that office, shall have no substantive communication with any DOT decisionmaker, administrative law judge in the case, or other DOT employee advising them, with respect to that or any factually related hearing case, except in accordance with a published DOT rule or order. In addition, each bureau or office supervisor of a DOT employee who is participating in a hearing case on behalf of that office when it is a party shall have no substantive communication with any administrative law judge in the case, or DOT employee advising the judge, in that or any factually related hearing case, except in accordance with a published DOT rule or order. For each hearing case, bureau or office heads shall maintain a publicly available record of those employees who are participating or are in fact reviewing the position taken, or who have participated in developing the position taken in that case.
            (c) In hearing cases involving fares or rates, or applications for a certificate or permit under 49 U.S.C. 41102 and 41302, or applications by a holder for a change in a certificate or permit, a supervisor who would not be permitted to advise the DOT decisionmaker under paragraph (b) of this section may advise the DOT decisionmaker in the following manner: The supervisor's advice must either be made orally in an open DOT meeting or by a memorandum placed in the docket or other public file of such matter. Oral advice must be summarized in writing by the supervisor and placed in the docket or file of the matter. A copy of such written memorandum or summary of oral advice must be served on each party to the proceeding within 3 business days after such advice is given to the concerned DOT decisionmaker. Each of the parties may comment in writing on such advice within 5 business days after service or the summary. In no event, however, may a supervisor advise the DOT decisionmaker if he or she acted as the office's counsel or witness in the matter.
            (d) In enforcement cases, the Office of the Assistant General Counsel for Aviation Enforcement and Proceedings, under the supervision of the career Deputy General Counsel and the General Counsel, will conduct all enforcement proceedings and related investigative functions, while the non-career Deputy General Counsel will advise the DOT decisionmaker in the course of the decisional process. The Office of the Assistant General Counsel for Aviation Enforcement and Proceedings will report to the career Deputy General Counsel and the General Counsel. To ensure the independence of these functions, this Office and the General Counsel, for the purpose of this section, shall be considered an “office” as that term is used in paragraph (b) of this section, separate from the non-career Deputy General Counsel and the rest of the Office of the General Counsel.
            [Doc. No. 82, 50 FR 2380, Jan. 16, 1985, as amended at 60 FR 43528, Aug. 22, 1995; Doc. No. DOT-OST-2014-0140, 84 FR 15935, Apr. 16, 2019]

            § 300.5
            Prohibited conduct.
            No person shall: (a) Attempt to influence the judgment of a concerned DOT employee by any unlawful means such as deception or the payment of money or other consideration; or
            (b) Disrupt or interfere with the fair and orderly disposition of a DOT proceeding.

            § 300.6
            Practitioners' standards of conduct.
            Every person representing a client in matters before DOT in all contacts with DOT employees, should:
            (a) Strictly observe the standards of professional conduct;
            (b) Refrain from statements or other actions designed to mislead DOT or to cause unwarranted delay;
            (c) Avoid offensive or intemperate behavior;
            (d) Advise all clients to avoid improprieties and to obey the law as the attorney believes it to be; and
            (e) Terminate the professional relationship with any client who persists in improprieties in proceedings before DOT.

            § 300.7
            Conciseness.
            Every oral or written statement made in a DOT proceding shall be as concise as possible. Verbose or redundant presentations may be rejected.

            § 300.8
            Opinions or rulings by the General Counsel.

             The General Counsel is authorized to render opinions or rulings to the public on the application of the provisions of this part. When written request is made for such opinions and rulings, they shall be transmitted to DOT and shall be available to the public in the Documentary Services Division after any appeal to or review by the Secretary has been completed or after the time for review has expired. Identifying details shall normally be stricken from copies available to the public unless the public interest requires disclosure of such details.
            [Docket No. 82, 50 FR 2380, Jan. 16, 1985. Redesignated and amended by Doc. No. DOT-OST-2014-0140, 84 FR 15935, Apr. 16, 2019]

            § 300.9
            Disqualification of partners of DOT employees.
            No partner of a DOT employee shall act as agent or attorney for anyone other than the United States in any DOT proceeding or matter in which such employee participates or has participated personally and substantially through decision, approval, disapproval, recommendation, rendering advice, investigation, or otherwise, or which is the subject of his or her official responsibility.
            [Docket No. 82, 50 FR 2380, Jan. 16, 1985. Redesignated and amended by Doc. No. DOT-OST-2014-0140, 84 FR 15935, Apr. 16, 2019]

            § 300.10
            Motions to disqualify DOT employee in review of hearing matters.
            In cases to be determined on an evidentiary record, a party desiring that a concerned DOT employee disqualify himself or herself from participating in a DOT decision shall file a motion supported by an affidavit setting forth the grounds for such disqualification in the form and within the periods prescribed in § 302.11 of this chapter. Where review of the administrative law judge's decision can be obtained only upon the filing of a petition for discretionary review, such motions must be filed on or before the date answers are due pursuant to § 302.32. In cases where exceptions are filed to recommended, initial, or tentative decisions or where the DOT decisionmaker orders review of an initial or recommended decision on his or her own initiative, such motions must be filed on or before the date briefs are due pursuant to § 302.35 or § 302.218, as applicable. Failure to file a timely motion will be deemed a waiver of disqualification. Applications for leave to file an untimely motion seeking disqualification of a concerned DOT employee must be accompanied by an affidavit setting forth in detail why the facts relied upon as grounds for disqualification were not known and could not have been discovered with reasonable diligence within the prescribed time.
            [Doc. No. OST-97-2090, 65 FR 6456, Feb. 9, 2000. Redesignated and amended by Doc. No. DOT-OST-2014-0140, 84 FR 15935, Apr. 16, 2019]

            § 300.11
            Use of confidential information.
            No former CAB member or employee or DOT employee, or any person associated with him or her, shall ever use or undertake to use in any DOT proceeding or matter any confidential facts or information which came into the possession of such Member or employee or to his or her attention by reason of his or her employment with the CAB or DOT without first applying for and obtaining the consent of the appropriate ethics counselor for the use of such facts or information.
            [Docket No. 82, 50 FR 2380, Jan. 16, 1985. Redesignated and amended by Doc. No. DOT-OST-2014-0140, 84 FR 15935, Apr. 16, 2019]

            § 300.12
            Violations.
            (a) DOT may disqualify, and deny temporarily or permanently the privilege of appearing or practicing before it in any way to, any person who is found by DOT after written notice of charges and hearing to have engaged in unethical or improper professional conduct. Any violation of this part shall be deemed to be such conduct.

            (b) When appropriate in the public interest, DOT may deny any application or other request of a party in a proceeding subject to this part where DOT finds after hearing that such party has, in connection with any DOT proceeding, violated any of the provisions of this part or any of the provisions of Chapter 11 of Title 18 of the United States Code. DOT may also condition its further consideration of such party's application or other request or the effectiveness of any order granting such application or other request upon such party's first taking such action as DOT may deem necessary or appropriate to remedy the violation of this part or Chapter 11 of Title 18 of the United States Code to prevent or deter any repetition of such violation. DOT may in addition issue a cease and desist order against any repetition of such or similar misconduct.
            (c) The actions authorized by this section may take place within the framework of the matter during or concerning which the violations occur or in a separate matter, as the DOT decisionmaker or the presiding administrative law judge may direct. A complaint alleging that a violation has occurred in the course of a matter shall be filed in the docket or appropriate public file of such matter unless such complaint is made after DOT's decision of the matter has become final, in which event such complaint may be filed pursuant to part 302, subpart D of the rules of practice. A violation in the course of a matter which may be attributable to or affect the fitness of a party will ordinarily either be disposed of within the framework of such matter or be considered within the context of any subsequent matter involving the interests of such party. Other violations will ordinarily be disposed of in a separate proceeding.
            (d) In the case of any violation of the provisions of this part, the violator may be subject to civil penalties under the provisions of 49 U.S.C. 46301. The violator may also be subject to a proceeding brought under 49 U.S.C. 46101 before the Department, or sections 46106 through 46108 of the Statute before a U.S. District Court, as the case may be, to compel compliance with civil penalties which have been imposed.
            [Doc. No. 82, 50 FR 2380, Jan. 16, 1985, as amended at 60 FR 43528, Aug. 22, 1995; 65 FR 6456, Feb. 9, 2000. Redesignated and amended by Doc. No. DOT-OST-2014-0140, 84 FR 15935, Apr. 16, 2019]

          Pt. 302
          PART 302—RULES OF PRACTICE IN PROCEEDINGS

            Sec.
            302.1
            Applicability and description of part.
            302.2
            Definitions.

              Subpart A—Rules of General Applicability
              302.3
              Filing of documents.
              302.4
              General requirements as to documents.
              302.5
              Amendment of documents.
              302.6
              Responsive documents.
              302.7
              Service of documents.
              302.8
              Computation of time.
              302.9
              Continuances and extensions of time.
              302.10
              Parties.
              302.11
              Motions.
              302.12
              Objections to public disclosure of information.
              302.13
              Consolidation of proceedings.
              302.14
              Petitions for reconsideration.

                Non-Hearing Proceedings
                302.15
                Non-hearing procedures.

                Rulemaking Proceedings
                302.16
                Petitions for rulemaking.

                Oral Evidentiary Hearing Proceedings
                302.17
                Administrative law judges.
                302.18
                DOT decisionmaker.
                302.19
                Participation by persons not parties.
                302.20
                Formal intervention.
                302.21
                Appearances.
                302.22
                Prehearing conference.
                302.23
                Hearing.
                302.24
                Evidence.
                302.25
                Subpoenas.
                302.26
                Depositions.
                302.27
                Rights of witnesses; attendance fees and mileage.
                302.28
                Transcripts of hearings.
                302.29
                Argument before the administrative law judge.
                302.30
                Briefs to the administrative law judge.
                302.31
                Initial and recommended decisions; certification of the record.
                302.32
                Petitions for discretionary review of initial or recommended decisions; review proceedings.
                302.33
                Tentative decision of the DOT decisionmaker.
                302.34
                Exceptions to tentative decisions of the DOT decisionmaker.
                302.35
                Briefs to the DOT decisionmaker.
                302.36
                Oral argument before the DOT decisionmaker.
                302.37
                Waiver of procedural steps after hearing.
                302.38
                Final decision of the DOT decisionmaker.

              Subpart B—Rules Applicable to U.S. Air Carrier Certificate and Foreign Air Carrier Permit Licensing Proceedings
              302.201
              Applicability.
              302.202
              Contents of applications.
              302.203
              Service of documents.
              302.204
              Responsive documents.
              302.205
              Economic data and other facts.
              302.206
              Verification.

                Disposition of Applications
                302.207
                Cases to be decided on written submissions.
                302.208
                Petitions for oral presentation or judge's decision.
                302.209
                Procedures for deferral of applications.
                302.210
                Disposition of applications; orders establishing further procedures.
                302.211
                Procedures in certificate cases involving initial or continuing fitness.
                302.212
                Procedures in certificate cases involving international routes.
                302.213
                Procedures in foreign air carrier permit cases.
                302.214
                Oral evidentiary hearing.
                302.215
                Briefs to the administrative law judge.
                302.216
                Administrative law judge's initial or recommended decision.
                302.217
                Exceptions to administrative law judge's initial or recommended decision.
                302.218
                Briefs to the DOT decisionmaker.
                302.219
                Oral argument before the DOT decisionmaker.
                302.220
                Final decision of the Department.

              Subpart C—Rules Applicable to Exemption and Certain Other Proceedings
              302.301
              Applicability.
              302.302
              Filing of applications.
              302.303
              Contents of applications.
              302.304
              Service of documents.
              302.305
              Posting of applications.
              302.306
              Dismissal or rejection of incomplete applications.
              302.307
              Answers to applications.
              302.308
              Replies to answers.
              302.309
              Requests for hearing.
              302.310
              Exemptions on the Department's initiative.
              302.311
              Emergency exemptions.

              Subpart D—Rules Applicable to Enforcement Proceedings
              302.401
              Applicability.
              302.402
              Definitions.
              302.403
              Informal complaints.
              302.404
              Formal complaints.
              302.405
              Responsive documents.
              302.406
              Procedure for responding to formal complaints.
              302.407
              Commencement of enforcement proceeding.
              302.408
              Answers and replies.
              302.409
              Default.
              302.410
              Consolidation of proceedings.
              302.411
              Motions to dismiss and for summary judgment.
              302.412
              Admissions as to facts and documents.
              302.413
              Evidence of previous violations.
              302.414
              Prehearing conference.
              302.415
              Hearing.
              302.416
              Appearances by persons not parties.
              302.417
              Settlement of proceedings.
              302.418
              Motions for immediate suspension of operating authority pendente lite.
              302.419
              Modification or dissolution of enforcement actions.
              302.420
              Saving clause.

              Subpart E—Rules Applicable to Proceedings With Respect to Rates, Fares and Charges for Foreign Air Transportation
              302.501
              Applicability.
              302.502
              Institution of proceedings.
              302.503
              Contents and service of petition or complaint.
              302.504
              Dismissal of petition or complaint.
              302.505
              Order of investigation.
              302.506
              Complaints requesting suspension of tariffs; answers to such complaints.
              302.507
              Computing time for filing complaints.

              Subpart F—Rules Applicable to Proceedings Concerning Airport Fees
              302.601
              Applicability.
              302.602
              Complaint by a carrier; request for determination by an airport owner or operator.
              302.603
              Contents of complaint or request for determination.
              302.604
              Answers to a complaint or request for determination.
              302.605
              Replies.
              302.606
              Review of complaints or requests for determination.
              302.607
              Decision by administrative law judge.
              302.608
              Petitions for discretionary review.
              302.609
              Completion of proceedings.
              302.610
              Final order.

              Subpart G—Rules Applicable to Mail Rate Proceedings and Mail Contracts
              302.701
              Applicability.

                Final Mail Rate Proceedings
                302.702
                Institution of proceedings.
                302.703
                Order to show cause or instituting a hearing.
                302.704
                Objections and answers to order to show cause.
                302.705
                Further procedures.
                302.706
                Hearing.

                Provision for Temporary Rate
                302.707
                Procedure for fixing temporary mail rates.

                Informal Mail Rate Conference Procedure
                302.708
                Invocation of procedure.
                302.709
                Scope of conferences.
                302.710
                Participants in conferences.

                302.711
                Conditions upon participation.
                302.712
                Information to be requested from an air carrier.
                302.713
                DOT analysis of data for submission of answers thereto.
                302.714
                Availability of data to the U.S. Postal Service.
                302.715
                Post-conference procedure.
                302.716
                Effect of conference agreements.
                302.717
                Waiver of participant conditions.

                Processing Contracts for the Carriage of Mail in Foreign Air Transportation
                302.718
                Filing.
                302.719
                Explanation and data supporting the contract.
                302.720
                Service.
                302.721
                Complaints.
                302.722
                Answers to complaints.
                302.723
                Further procedures.
                302.724
                Petitions for reconsideration.
                Appendix A to Part 302—Index to Rules of Practice

            Authority:
            39 U.S.C. 5402; 42 U.S.C. 4321, 49 U.S.C. Subtitle I and Chapters 401, 411, 413, 415, 417, 419, 461, 463, and 471.

            Source:
            Docket No. OST-97-2090, 65 FR 6457, Feb. 9, 2000, unless otherwise noted.

            Editorial Note:
            Nomenclature changes to part 302 appear at 84 FR 15935, Apr. 16, 2019.

            § 302.1
            Applicability and description of part.
            (a) Applicability. This part governs the conduct of all aviation economic proceedings before the Department whether instituted by order of the Department or by the filing with the Department of an application, complaint, petition, motion, or other authorized or required document. This part also contains delegations to administrative law judges and to the DOT decisionmaker of the Department's function to render the agency decision in certain cases and the procedures for review of those decisions. This part applies unless otherwise specified by order of the Department.
            (b) Description. Subpart A of this part sets forth general rules applicable to all types of proceedings. Each of the other subparts of this part sets forth special rules applicable to the type of proceedings described in the title of the subpart. Therefore, for information as to applicable rules, reference should be made to subpart A and to the rules in the subpart relating to the particular type of proceeding, if any. In addition, reference should be made to Subtitle VII of Title 49 of the United States Code (Transportation) (“the Statute”), and to the substantive rules, regulations and orders of the Department relating to the proceeding. Wherever there is any conflict between one of the general rules in subpart A and a special rule in another subpart applicable to a particular type of proceeding, the special rule will govern.
            (c) Reference to part and method of citing rules. This part may be referred to as the “Rules of Practice”. Each section, and any paragraph or subparagraph thereof, may be referred to as a “Rule”. The number of each rule need include only the numbers and letters at the right of the decimal point. For example, “302.7 Service of documents”, may be referred to as “Rule 7”.

            § 302.2
            Definitions.

              Administrative law judge as used in this part means an administrative law judge appointed pursuant to 5 U.S.C. 3105.

              DOT Decisionmaker as used in this part is the official authorized to issue final decisions of the Department as set forth in § 302.18. This includes the Assistant Secretary for Aviation and International Affairs, the senior career official in the Office of the Assistant Secretary for Aviation and International Affairs, the Deputy Secretary, and the Secretary.

              Hearing case or oral hearing case means any proceeding that the Department has determined will be conducted on the record using oral evidentiary procedures subject to 5 U.S.C. 556 and 557.

              Non-hearing case means any proceeding not involving oral evidentiary procedures.

              Party as used in this part includes the person initiating a proceeding, such as an applicant, complainant, or petitioner; any person filing an answer to such filing; and any other persons as set forth in § 302.10.
            [Docket No. OST-97-2090, 65 FR 6457, Feb. 9, 2000, as amended by Doc. No. DOT-OST-2014-0140, 84 FR 15936, Apr. 16, 2019]

            Subpart A—Rules of General Applicability

              § 302.3
              Filing of documents.
              (a) Filing address, date of filing, hours. (1) Documents required by any section of this part to be filed with the Department must be filed with Department of Transportation Dockets at the Department's offices in Washington, DC. Documents may be filed either on paper or by electronic means using the process set at http://www.regulations.gov.
              (2) Such documents will be deemed to be filed on the date on which they are actually received by the Department. Documents must be filed between the hours of 9:00 a.m. and 5:00 p.m., eastern standard or daylight savings time, whichever is in effect in the District of Columbia at the time, Monday to Friday, inclusive, except on legal holidays. Electronic filings may be made at any time under the process set by the Department. Electronic filings that are received after the specified Dockets Facility hours shall be deemed to be constructively received on the next Dockets Facility business day.
              (b) Formal specifications of documents. (1) Documents filed under this part must be on white paper not larger than 81/2 by 11 inches, including any tables, charts and other documents that may be included. Ink must be black to provide substantial contrast for scanning and photographic reproduction. Text must be double-spaced (except for footnotes and long quotations which may be single-spaced) using type not smaller than 12 point. The left margin must be at least 11/2 inches; all other margins must be at least 1 inch. The title page and first page must bear a clear date and all subsequent pages must bear a page number and abbreviated heading. In order to facilitate automated processing in document sheet feeders, documents of more than one page should be held together with removable metal clips or similar retainers. Original documents may not be bound in any form or include tabs, except in cases assigned by order to an Administrative Law Judge for hearing, in which case the filing requirements will be set by order. Section 302.35 contains additional requirements as to the contents and style of briefs.
              (2) Papers may be reproduced by any duplicating process, provided all copies are clear and legible. Appropriate notes or other indications must be used, so that the existence of any matters shown in color on the original will be accurately indicated on all copies.
              (c) Number of copies. Unless otherwise specified, an executed original, along with the number of true copies set forth below for each type of proceeding, must be filed with Department of Transportation Dockets. The copies filed need not be signed, but the name of the person signing the original document, as distinguished from the firm or organization he or she represents, must also be typed or printed on all copies below the space provided for signature. Electronic filers need only submit one copy of the document, which must conform to the submission requirements given in the electronic filing instructions at http://www.regulations.gov and in this part, as applicable.

                  Numberof copies

                  Airport Fees
                  9

                  Agreements:

                  International Air Transport Association (IATA)
                  6

                  Other (under 49 U.S.C. 41309)
                  9

                  Complaints:

                  Enforcement
                  5

                  Mail Contracts
                  4

                  Rates, Fares and Charges in Foreign Air Transportation
                  6

                  Unfair Practices in Foreign Air Transportation
                  7

                  Employee Protection Program (14 CFR 314)
                  7

                  Exemptions:

                  Computer Reservations Systems (14 CFR 255)
                  8

                  Slot Exemptions (under 49 U.S.C. 41714)
                  7

                  Tariffs (under 49 U.S.C. Chapter 415 or 14 CFR 221)
                  5

                  Other (under 49 U.S.C. 40109)
                  7

                  Foreign Air Carrier Permits/Exemptions
                  7

                  International Authority for U.S. Air Carriers (certificates, exemptions, allocation of limited frequencies, designations, or charters)
                  7

                  Mail Rate Proceedings
                  4

                  Name Change/Trade Name Registrations
                  4

                  Suspension of Service (14 CFR 323)
                  4

                  Tariff Justifications to exceed Standard International Fare Level
                  6

                  U.S. Air Carrier Certificates (involving Initial or Continuing Fitness)
                  6

                  Other matters
                  3

              (d) Prohibition and dismissal of certain documents. (1) No document that is subject to the general requirements of this subpart concerning form, filing, subscription, service or similar matters will be accepted for filing by the Department, and will not be physically incorporated in the docket of the proceeding, unless:
              (i) Such document and its filing by the person submitting it have been expressly authorized or required in the Statute, any other law, this part, other Department regulations, or any order, notice or other document issued by the DOT decisionmaker, the Chief Administrative Law Judge or an administrative law judge assigned to the proceeding, and

              (ii) Such document complies with each of the requirements of this paragraph and 302.7, and for those electronically filed, the requirements specified at http://www.regulations.gov, and is submitted as a formal application, complaint, petition, motion, answer, pleading, or similar paper rather than as a letter, telegram, or other informal written communication; Provided, however, That for good cause shown, pleadings of any public body or civic organization or comments concerning tariff agreements that have not been docketed, may be submitted in the form of a letter.
              (2) If any document initiating, or filed in, a proceeding is not in substantial conformity with the applicable rules or regulations of the Department as to the contents thereof, or is otherwise insufficient, the Department, on its own initiative, or on motion of any party, may reject, strike or dismiss such document, or require its amendment.
              (e) Official docket copy. With respect to all documents filed under this part, the electronic record produced by the Department shall thereafter be the official docket copy of the document and any subsequent copies generated by the Department's electronic records system will be usable for admission as record copies in any proceeding before the Department.
              (f) Retention of documents by the Department. All documents filed with or presented to the Department Dockets will be retained in the permanent docket of the Department of Transportation.
              [Docket No. OST-97-2090, 65 FR 6457, Feb. 9, 2000, as amended by Doc. No. DOT-OST-2014-0140, 84 FR 15936, Apr. 16, 2019]

              § 302.4
              General requirements as to documents.
              (a) Contents. (1) In case there is no rule, regulation, or order of the Department that prescribes the contents of a formal application, petition, complaint, motion or other authorized or required document, such document shall contain a proper identification of the parties concerned, a concise but complete statement of the facts relied upon and the relief sought, and, where required, such document shall be accompanied by an Energy Statement, in conformity with the provisions of part 313 of this chapter.
              (2)(i) Each document must include with or provide on its first page:
              (A) The docket title and subject;
              (B) The relevant operating administration before which the application or request is filed;
              (C) The identity of the filer and its filing agent, if applicable;
              (D) The name and mailing address of the designated agent for service of any documents filed in the proceeding, along with the telephone and facsimile numbers and, if available, electronic mail address of that person; and
              (E) The title of the specific action being requested.

              (ii) Department of Transportation Dockets has an Expedited Processing Sheet that filers can use to assist in preparing this index for submission of paper documents, and an electronic registration for electronic filing at http://www.regulations.gov.
              (3) All documents filed under this part consisting of twenty (20) or more pages must contain a subject index of the matter in such document, with page references.
              (b) Verification: The following certification shall be included with every pleading filed under this part: “Pursuant to Title 18 United States Code Section 1001, I [the individual signing the pleading, who shall be a principal owner, senior officer, or internal counsel of the pleader], in my individual capacity and as the authorized representative of the pleader, have not in any manner knowingly and willfully falsified, concealed or failed to disclose any material fact or made any false, fictitious, or fraudulent statement or knowingly used any documents which contain such statements in connection with the preparation, filing or prosecution of the pleading. I understand that an individual who is found to have violated the provisions of 18 U.S.C. section 1001 shall be fined or imprisoned not more than five years, or both.” In addition, electronic subscription requirements shall be those specified at http://www.regulations.gov.
              [Docket No. OST-97-2090, 65 FR 6457, Feb. 9, 2000, as amended by Doc. No. DOT-OST-2014-0140, 84 FR 15936, Apr. 16, 2019]

              § 302.5
              Amendment of documents.
              (a) An application may be amended prior to the filing of answers thereto, or, if no answer is filed, prior to the issuance of an order establishing further procedures, disposing of the application, or setting the case for hearing. Thereafter, applications may be amended only if leave is granted pursuant to the procedures set forth in § 302.11.
              (b) Except as otherwise provided, if properly amended, a document and any statutory deadline shall be made effective as of the date of original filing but the time prescribed for the filing of an answer or any further responsive document directed towards the amended document shall be computed from the date of the filing of the amendment.

              § 302.6
              Responsive documents.
              (a) Answers. Answers to applications, complaints, petitions, motions or other documents or orders instituting proceedings may be filed by any person. In hearing cases, answers may be filed by any party to such proceedings or any person who has a petition for intervention pending. Except as otherwise provided, answers are not required.
              (b) Further responsive documents. Except as otherwise provided, a reply to an answer, reply to a reply, or any further responsive document is not authorized.
              (c) Motions for leave to file otherwise unauthorized documents. (1) The Department will accept otherwise unauthorized documents for filing only if leave has been obtained from the DOT decisionmaker or, if applicable, the administrative law judge, on written motion and for good cause shown.
              (2) Such motions shall contain a concise statement of the matters relied upon as good cause and shall be attached to the pleading or other document for which leave to file is sought, or the written motion may be incorporated into the otherwise unauthorized document for which admission is sought. In such event, the document filed shall be titled to describe both the motion and the underlying documents.
              (3) Where unauthorized responsive documents are not permitted, all new matter contained in an answer filed pursuant to paragraph (a) of this section shall be deemed controverted.
              (d) Time for filing. Except as otherwise provided, an answer, motion, or other further responsive document shall be filed within seven (7) days after service of any document, order, or ruling to which the proposed filing is responsive and must be served on all parties to the proceeding.

              § 302.7
              Service of documents.
              (a) Who makes service—(1) The Department. Formal complaints, notices, orders, and similar documents issued by the Department will be served by the Department upon all parties to the proceeding.
              (2) The parties. Answers, petitions, motions, briefs, exceptions, notices, protests, or memoranda, or any other documents filed by any party or other person with the Department shall be served by such party or other person upon all parties to the proceeding in which it is filed; including, where applicable, all persons who have petitioned for intervention in, or consolidation of applications with, such proceeding. Proof of service shall accompany all documents when they are filed. The Department may require additional service of any document(s).
              (b) How service may be made. Service may be made by first class mail, express mail, priority mail, registered or certified mail, facsimile transmission, personal delivery, or by electronic mail. The Department may prescribe other means of service by order or notice. The means of service selected must be done in such manner so as to have the same attributes as section 46103 of 49 U.S.C. Subtitle VII, which provides for service of notices and processes in a proceeding by personal service or registered or certified mail.
              (c) Who may be served. Service upon a party or person may be made upon an individual, or upon a member of a partnership or firm to be served, or upon the president or other officer of the corporation, company, firm, or association to be served, or upon the assignee or legal successor of any of the foregoing, or upon any attorney of record for the party, or upon the agent designated by an air carrier or foreign air carrier under section 46103 of 49 U.S.C. Subtitle VII, but it shall be served upon a person designated by a party to receive service of documents in a particular proceeding in accordance with § 302.4(a)(2)(i)(D) once a proceeding has been commenced.
              (d) Where service may be made. Service shall be made at the principal place of business of the party to be served, or at his or her usual residence if he or she is an individual, or at the office of the party's attorney of record, or at the office or usual residence of the agent designated by an air carrier or foreign air carrier under section 46103 of 49 U.S.C. Subtitle VII, or at the post office or electronic address or facsimile number stated for a person designated to receive service pursuant to§ 302.4(a)(2)(i)(D).
              (e) Proof of service. Proof of service of any document shall consist of one of the following:
              (1) A certificate of mailing executed by the person mailing the document.
              (2) A certificate of successful transmission executed by the person transmitting the document by facsimile or electronic mail, listing the facsimile numbers or electronic mail address to which the document was sent, and stating that no indication was received that any transmission had failed. In the event of an electronic transmission failure, any other authorized means of service may be substituted and the appropriate proof of service provided.
              (f) Date of service. The date of service by post office or electronic mail is the date of mailing. Whenever proof of service by personal delivery or facsimile transmission is made, the date of such delivery or facsimile transmission shall be the date of service.
              (g) Freely Associated State Proceedings. In any proceeding directly involving air transportation to the Federated States of Micronesia, the Marshall Islands, or Palau, the Department and any party or participant in the proceeding shall serve all documents on the President and the designated authorities of the government(s) involved. This requirement shall apply to all proceedings where service is otherwise required, and shall be in addition to any other service required by this chapter.
              [Docket No. OST-97-2090, 65 FR 6457, Feb. 9, 2000, as amended by Doc. No. DOT-OST-2014-0140, 84 FR 15936, Apr. 16, 2019]

              § 302.8
              Computation of time.
              In computing any period of time prescribed or allowed by this part, by notice, order or regulation or by any applicable statute, the day of the act, event, or default after which the designated period of time begins to run is not to be included. The last day of the period so computed is to be included, unless it is a Saturday, Sunday, or legal holiday for the Department, in which event the period runs until the end of the next day that is neither a Saturday, Sunday, nor holiday. When the period of time prescribed is seven (7) days or fewer, intermediate Saturdays, Sundays, and holidays shall be excluded in the computation, unless otherwise specified by the DOT decisionmaker or the administrative law judge assigned to the proceeding, as the case may be.

              § 302.9
              Continuances and extensions of time.
              (a) Whenever a party has the right or obligation to take action within a period prescribed by this part, by a notice given thereunder, or by an order or regulation, the DOT decisionmaker or the administrative law judge assigned to the proceeding, as appropriate, may:
              (1) Before the expiration of the prescribed period, with or without notice, extend such period, or

              (2) Upon motion, permit the act to be done after the expiration of the specified period, where good cause for the failure to act on time is clearly shown.

              (b) Except where an administrative law judge has been assigned to a proceeding, requests for continuance or extensions of time, as described in paragraph (a) of this section, shall be directed to the DOT decisionmaker. Requests for continuances and extensions of time may be directed to the Chief Administrative Law Judge in the absence of the administrative law judge assigned to the proceeding.

              § 302.10
              Parties.
              (a) In addition to the persons set forth in § 302.2, in hearing cases, parties shall include Department staff designated to participate in the proceeding and any persons authorized to intervene or granted permission to participate in accordance with §§ 302.19 and 302.20. In any proceeding directly involving air transportation to the Federated States of Micronesia, the Marshall Islands or Palau, these governments or their designated authorities shall be a party.
              (b) Upon motion and for good cause shown, the Department may order a substitution of parties, except that in case of the death of a party, substitution may be ordered without the filing of a motion.
              (c) An association composed entirely or in part of air carriers may participate in any proceedings of the Department to which the Department's procedural regulations apply if the association represents members that are identified in any documents filed with the Department, and that have specifically authorized the positions taken by the association in that proceeding. The specific authorizations may be informal and evidence of them shall be provided only upon request of the Department. Upon motion of any interested person or upon its own initiative, the Department may issue an order requiring an association to withdraw from a case on the grounds of significant divergence of interest or position within the association.

              § 302.11
              Motions.
              (a) Generally. An application to the DOT decisionmaker or an administrative law judge for an order or ruling not otherwise specifically provided for in this part shall be by motion. If an administrative law judge is assigned to a proceeding and before the issuance of a recommended or initial decision or the certification of the record to the DOT decisionmaker, all motions shall be addressed to the administrative law judge. At all other times, motions shall be addressed to the DOT decisionmaker. All motions shall be made at an appropriate time depending upon the nature thereof and the relief requested therein. This paragraph should not be construed as authorizing motions in the nature of petitions for reconsideration.
              (b) Form and contents. Unless made during a hearing, motions shall be made in writing in conformity with §§ 302.3 and 302.4, shall state their grounds and the relief or order sought, and shall be accompanied by any affidavits or other evidence desired to be relied upon. Motions made during hearings, answers to them, and rulings on them, may be made orally on the record unless the administrative law judge directs otherwise. Written motions shall be filed as separate documents, and shall not be incorporated in any other documents, except where incorporation of a motion in another document is specifically authorized by the Department, or where a document is filed that requests alternative forms of relief and one of these alternative requests is properly to be made by motion. In these instances the document filed shall be appropriately titled and identified to indicate that it incorporates a motion; otherwise, the motion will be disregarded.
              (c) Answers to motions. Within seven (7) days after a motion is served, or such other period as the DOT decisionmaker or the administrative law judge may fix, any party to the proceeding may file an answer in support of or in opposition to the motion, accompanied by such affidavits or other evidence as it desires to rely upon. Except as otherwise provided, no reply to an answer, reply to a reply, or any further responsive document shall be filed.
              (d) Oral arguments; briefs. No oral argument will be heard on motions unless the DOT decisionmaker or the administrative law judge otherwise directs. Written memoranda or briefs may be filed with motions or answers to motions, stating the points and authorities relied upon in support of the position taken.
              (e) Requests for expedition. Any interested person may by motion request expedition of any proceeding or file an answer in support of or in opposition to such motions.
              (f) Effect of pendency of motions. The filing or pendency of a motion shall not automatically alter or extend the time to take action fixed by this part or by any order of the Department or of an administrative law judge (or any extension granted thereunder).
              (g) Disposition of motions. The DOT decisionmaker shall pass upon all motions properly submitted to him or her for decision. The administrative law judge shall pass upon all motions properly addressed to him or her, except that, if the administrative law judge finds that a prompt decision by the DOT decisionmaker on a motion is essential to the proper conduct of the proceeding, the administrative law judge may refer such motion to the DOT decisionmaker for decision.
              (h) Appeals to the DOT decisionmaker from rulings of administrative law judges. Rulings of administrative law judges on motions may not be appealed to the DOT decisionmaker prior to his or her consideration of the entire proceeding except in extraordinary circumstances and with the consent of the administrative law judge. An appeal shall be disallowed unless the administrative law judge finds, either on the record or in writing, that the allowance of such an appeal is necessary to prevent substantial detriment to the public interest or undue prejudice to any party. If an appeal is allowed, any party may file a brief with the DOT decisionmaker within such period as the administrative law judge directs. No oral argument will be heard unless the DOT decisionmaker directs otherwise. The rulings of the administrative law judge on a motion may be reviewed by the DOT decisionmaker in connection with his or her final action in the proceeding or at any other appropriate time irrespective of the filing of an appeal or any action taken on it.

              § 302.12
              Objections to public disclosure of information.
              (a) Generally. Part 7 of the Office of the Secretary regulations, Public Availability of Information, governs the availability of records and documents of the Department to the public. (49 CFR 7.1 et seq.)
              (b) Information contained in written documents. Any person who objects to the public disclosure of any information filed in any proceeding, or pursuant to the provisions of 49 U.S.C. Subtitle VII, or any Department rule, regulation, or order, shall segregate, or request the segregation of, such information into a separate submission and shall file it separately in a sealed envelope, bearing the caption of the enclosed submission, and the notation “Confidential Treatment Requested Under § 302.12.” At the time of filing such submission (or, when the objection is made by a person who is not the filer, within five (5) days after the filing of such submission), the objecting party shall file a motion to withhold the information from public disclosure, in accordance with the procedure outlined in paragraph (d) or (f) of this section, as appropriate. Notwithstanding any other provision of this section, copies of the filed submission and of the motion need not be served upon any other party unless so ordered by the Department.
              (c) Information contained in oral testimony. Any person who objects to the public disclosure of any information sought to be elicited from a witness or deponent on oral examination shall, before such information is disclosed, make his or her objection known. Upon such objection duly made, the witness or deponent shall be compelled to disclose such information only in the presence of the administrative law judge or the person before whom the deposition is being taken, as the case may be, the official stenographer and such attorneys for and representative of each party as the administrative law judge or the person before whom the deposition is being taken shall designate, and after all present have been sworn to secrecy. The transcript of testimony containing such information shall be segregated and filed in a sealed envelope, bearing the title and docket number of the proceeding, and the notation “Confidential Treatment Requested Under § 302.12 Testimony Given by (name of witness or deponent).” Within five (5) days after such testimony is given, the objecting person shall file a motion in accordance with the procedure outlined in paragraph (d) of this section, to withhold the information from public disclosure. Notwithstanding any other provision of this section, copies of the segregated portion of the transcript and of the motion need not be served upon any other party unless so ordered by the Department.
              (d) Form of motion. Motions to withhold from public disclosure information covered by paragraphs (b) and (c) of this section shall be filed with the Department in accordance with the following procedure:
              (1) The motion shall include:
              (i) An index listing the information or document sought to be withheld by an identifying number, and including its title, description and number of pages, and, if relevant, the specific location within a document;
              (ii) A statement explaining how and why the information falls within one or more of the exemptions from the Freedom of Information Act (5 U.S.C. 552(b)(1)-(9)); and
              (iii) A statement explaining how and why public disclosure of the information would adversely affect the interests of the objecting persons and is not required in the interest of the public.
              (2) Such motion shall be filed with the person conducting the proceeding, or with the person with whom said application, report, or submission is required to be filed. Such motion will be denied when the complete justification required by this paragraph is not provided.
              (3) During the pendency of such motion, the ruling official may, by notice or order, allow limited disclosure to parties' representatives, for purposes of participating in the proceeding, upon submission by them of affidavits swearing to protect the confidentiality of the documents at issue.
              (e) Conditions of disclosure. The order, notice or other action of the Department containing its ruling upon each such motion will specify the extent to which, and the conditions upon which, the information may be disclosed to the parties and to the public, which ruling shall become effective upon the date stated therein, unless, within five (5) days after the date of the entry of the Department's order with respect thereto, a petition is filed by the objecting person requesting reconsideration by the Department, or a written statement is filed indicating that the objecting person in good faith intends to seek judicial review of the Department's order.
              (f) Objection by Government departments or representative thereof. In the case of objection to the public disclosure of any information filed by or elicited from any United States Government department or agency, or representative thereof, under paragraph (b) or (c) of this section, the department or agency making such objection shall be exempted from the provisions of paragraphs (b), (c), and (d) of this section insofar as said paragraphs require the filing of a written objection to such disclosure. However, any department, agency, or representative thereof may, if it so desires, file a memorandum setting forth the reasons why it is claimed that a public disclosure of the information should not be made. If such a memorandum is submitted, it shall be filed and handled as is provided by this section in the case of a motion to withhold information from public disclosure.

              § 302.13
              Consolidation of proceedings.
              (a) Initiation of consolidations. The Department, upon its own initiative or upon motion, may consolidate for hearing or for other purposes or may contemporaneously consider two or more proceedings that involve substantially the same parties, or issues that are the same or closely related, if it finds that such consolidation or contemporaneous consideration will be conducive to the proper dispatch of its business and to the ends of justice and will not unduly delay the proceedings. Although the Department may, in any particular case, consolidate or contemporaneously consider two or more proceedings on its own motion, the burden of seeking consolidation or contemporaneous consideration of a particular application shall rest upon the applicant and the Department will not undertake to search its docket for all applications that might be consolidated or contemporaneously considered.
              (b) Time for filing. Unless the Department has provided otherwise in a particular proceeding, a motion to consolidate or contemporaneously consider an application with any other application shall be filed within 21 days of the original application in the case of international route awards under section 41102 of 49 U.S.C. Subtitle VII (see § 302.212), or, where a proceeding has been set for hearing before an administrative law judge, not later than the prehearing conference in the proceeding with which consolidation or contemporaneous consideration is requested. If made at such conference, the motion may be oral. All motions for consolidation or consideration of issues that enlarge, expand, or otherwise change the nature of the proceeding shall be addressed to the DOT decisionmaker, unless made orally at the prehearing conference, in which event the presiding administrative law judge shall present such motion to the DOT decisionmaker for his or her decision. A motion that is not timely filed, or that does not relate to an application pending at such time, shall be dismissed unless the movant shall clearly show good cause for failure to file such motion or application on time.
              (c) Answer. If a motion to consolidate two or more proceedings is filed with the Department, any party to any of such proceedings, or any person who has a petition for intervention pending, may file an answer to such motion within such period as the DOT decisionmaker may permit. The administrative law judge may require that answers to such motions be stated orally at the prehearing conference in the proceeding with which the consolidation is proposed.

              § 302.14
              Petitions for reconsideration.
              (a) Department orders subject to reconsideration; time for filing. (1) Unless an order or a rule of the Department specifically provides otherwise:
              (i) Any interested person may file a petition for reconsideration of any interlocutory order issued by the Department that institutes a proceeding; and

              (ii) Any party to a proceeding may file a petition for reconsideration, rehearing, or reargument of final orders issued by the Department (See § 302.38), or an interlocutory order that defines the scope and issues of a proceeding or suspends a provision of a tariff on file with the Department.
              (2) Unless otherwise provided, petitions for reconsideration shall be filed, in the case of a final order, within twenty (20) days after service thereof, and, in the case of an interlocutory order, within ten (10) days after service. However, neither the filing nor the granting of such a petition shall operate as a stay of such final or interlocutory order unless specifically so ordered by the DOT decisionmaker. Within ten (10) days after a petition for reconsideration, rehearing, or reargument is filed, any party to the proceeding may file an answer in support of or in opposition. Motions for extension of time to file a petition or answer, and for leave to file a petition or answer after the time for the filing has expired, will not be granted except on a showing of unusual and exceptional circumstances, constituting good cause for the movant's inability to meet the established procedural dates.
              (b) Contents of petition. A petition for reconsideration, rehearing, or reargument shall state, briefly and specifically, the matters of record alleged to have been erroneously decided, the ground relied upon, and the relief sought. If a decision by the Secretary or Deputy Secretary is requested, the petition should describe in detail the reasons for such request and specify any important national transportation policy issues that are presented. If the petition is based, in whole or in part, on allegations as to the consequences that would result from the final order, the basis of such allegations shall be set forth. If the petition is based, in whole or in part, on new matter, such new matter shall be set forth, accompanied by a statement to the effect that petitioner, with due diligence, could not have known or discovered such new matter prior to the date the case was submitted for decision. Unless otherwise directed by the DOT decisionmaker upon a showing of unusual or exceptional circumstances, petitions for reconsideration, rehearing or reargument or answers thereto that exceed twenty-five (25) pages (including appendices) in length shall not be accepted for filing by Department of Transportation Dockets.
              (c) Successive petitions. A successive petition for rehearing, reargument, reconsideration filed by the same party or person, and upon substantially the same ground as a former petition that has been considered or denied will not be entertained.

              Non-Hearing Proceedings

                § 302.15
                Non-hearing procedures.
                In cases where oral evidentiary hearing procedures will not be used, § 302.17 through § 302.37, relating to hearing procedures, shall not be applicable except to the extent that the DOT decisionmaker shall determine that the application of some or all of such rules in the particular case will be conducive to the proper dispatch of its business and to the public interest. References in these and other sections of this part to powers or actions by administrative law judges shall not apply.

              Rulemaking Proceedings

                § 302.16
                Petitions for rulemaking.

                Any interested person may petition the Department for the issuance, amendment, modification, or repeal of any regulation, subject to the provisions of part 5, Rulemaking Procedures, of the Office of the Secretary regulations (49 CFR 5.1 et seq.).
                § 302.16, Nt.

                  Effective Date Note:
                  At 84 FR 71717, Dec. 27, 2019, § 302.16 was revised, effective Jan. 27, 2020. For the convenience of the user, the revised text is set forth as follows:

                      § 302.16
                      Petitions for rulemaking.
                      Any interested person may petition the Department for the issuance, amendment, modification, or repeal of any regulation or guidance document, or for the Department to perform a retrospective review of an existing rule, subject to the provisions of part 5, Rulemaking Procedures, of the Office of the Secretary regulations (49 CFR 5.13(c) and 5.43).

              Oral Evidentiary Hearing Proceedings

                § 302.17
                Administrative law judges.
                (a) Powers and delegation of authority. (1) An administrative law judge shall have the following powers, in addition to any others specified in this part:
                (i) To give notice concerning and to hold hearings;
                (ii) To administer oaths and affirmations;
                (iii) To examine witnesses;
                (iv) To issue subpoenas and to take or cause depositions to be taken;
                (v) To rule upon offers of proof and to receive relevant evidence;
                (vi) To regulate the course and conduct of the hearing;
                (vii) To hold conferences before or during the hearing for the settlement or simplification of issues;
                (viii) To rule on motions and to dispose of procedural requests or similar matters;
                (ix) To make initial or recommended decisions as provided in § 302.31;
                (x) To take any other action authorized by this part or by the Statute.
                (2) The administrative law judge shall have the power to take any other action authorized by part 385 of this chapter or by the Administrative Procedure Act.
                (3) The administrative law judge assigned to a particular case is delegated the DOT decisionmaker's function of making the agency decision on the substantive and procedural issues remaining for disposition at the close of the hearing in such case, except that this delegation does not apply in cases where the record is certified to the DOT decisionmaker, with or without an initial or recommended decision by the administrative law judge, or in cases requiring Presidential approval under section 41307 of 49 U.S.C. Subtitle VII. This delegation does not apply to the review of rulings by the administrative law judge on interlocutory matters that have been appealed to the DOT decisionmaker in accordance with the requirements of § 302.11.

                (4) The administrative law judge's authority in each case will terminate either upon the certification of the record in the proceeding to the DOT decisionmaker, or upon the issuance of an initial or recommended decision, or when he or she shall have withdrawn from the case upon considering himself or herself disqualified.
                (b) Disqualification. An administrative law judge shall withdraw from the case if at any time he or she deems himself or herself disqualified. If, prior to the initial or recommended decision in the case, there is filed with the administrative law judge, in good faith, an affidavit of personal bias or disqualification with substantiating facts and the administrative law judge does not withdraw, the DOT decisionmaker shall determine the matter, if properly presented by exception or brief, as a part of the record and decision in the case. The DOT decisionmaker shall not otherwise consider any claim of bias or disqualification. The DOT decisionmaker, in his or her discretion, may order a hearing on a charge of bias or disqualification.

                § 302.18
                DOT decisionmaker.
                (a) Assistant Secretary for Aviation and International Affairs. Except as provided in paragraphs (b) and (c) of this section, the Assistant Secretary for Aviation and International Affairs is the DOT decisionmaker. The Assistant Secretary shall have all of the powers set forth in § 302.17(a)(1) and those additional powers delegated by the Secretary. The Assistant Secretary may delegate this authority in appropriate non-hearing cases to subordinate officials.
                (b) Oral hearing cases assigned to the senior career official. Carrier selection proceedings for international route authority that are set for oral hearing and such other oral hearing cases as the Secretary deems appropriate will be assigned to the senior career official in the Office of the Assistant Secretary for Aviation and International Affairs, who will serve as the DOT decisionmaker. In all such cases, the administrative law judge shall render a recommended decision to the senior career official, who shall have all of the powers set forth in § 302.17(a)(1) and those additional powers delegated by the Secretary.
                (1) Decisions of the senior career official are subject to review by, and at the discretion of, the Assistant Secretary for Aviation and International Affairs. Petitions for discretionary review of decisions of the senior career official will not be entertained. A notice of review by the Assistant Secretary will establish the procedures for review. Unless a notice of review is issued, the decision of the senior career official will be issued as a final decision of the Department and will be served fourteen (14) days after it is adopted by the senior career official.
                (2) Final decisions of the senior career official may be reviewed upon a petition for reconsideration filed pursuant to § 302.14. Such a petition shall state clearly the basis for requesting reconsideration and shall specify any questions of national transportation policy that may be involved. The Assistant Secretary will either grant or deny the petition.
                (3) Upon review or reconsideration, the Assistant Secretary may either affirm the decision or remand the decision to the senior career official for further action consistent with such order of remand.
                (4) Subject to the provisions of paragraphs (b)(1) through (3) of this section, final decisions of the senior career official will be transmitted to the President of the United States when required under 49 U.S.C. 41307.
                (c) Secretary and Deputy Secretary. The Secretary or Deputy Secretary may exercise any authority of the Assistant Secretary whenever he or she believes a decision involves important questions of national transportation policy.

                § 302.19
                Participation by persons not parties.

                Any person, including any State, subdivision thereof, State aviation commission, or other public body, may appear at any hearing, other than in an enforcement proceeding, and present any evidence that is relevant to the issues. With the consent of the administrative law judge or the DOT decisionmaker, such person may also cross-examine witnesses directly. Such persons may also present to the administrative law judge a written statement on the issues involved in the proceeding. Such written statements shall be filed and served on all parties prior to the close of the hearing.

                § 302.20
                Formal intervention.
                (a) Who may intervene. Any person who has a statutory right to be made a party to an oral evidentiary hearing proceeding shall be permitted to intervene. Any person whose intervention will be conducive to the public interest and will not unduly delay the conduct of such proceeding may be permitted to intervene.
                (b) Considerations relevant to determination of petition to intervene. In passing upon a petition to intervene, the following factors, among other things, will be considered and will be liberally interpreted to facilitate the effective participation by members of the public in Department proceedings:
                (1) The nature of the petitioner's right under the statute to be made a party to the proceeding;
                (2) The nature and extent of the property, financial or other interest of the petitioner;
                (3) The effect of the order that may be entered in the proceeding on petitioner's interest;
                (4) The availability of other means whereby the petitioner's interest may be protected;
                (5) The extent to which petitioner's interest will be represented by existing parties;
                (6) The extent to which petitioner's participation may reasonably be expected to assist in the development of a sound record; and
                (7) The extent to which participation of the petitioner will broaden the issues or delay the proceeding.
                (c) Petition to intervene—(1) Contents. Any person desiring to intervene in a proceeding shall file a petition in conformity with this part setting forth the facts and reasons why he or she thinks he or she should be permitted to intervene. The petition should make specific reference to the factors set forth in paragraph (b) of this section.
                (2) Time for filing. Unless otherwise ordered by the Department:
                (i) A petition to intervene shall be filed with the Department prior to the first prehearing conference, or, in the event that no such conference is to be held, not later than fifteen (15) days prior to the hearing.
                (ii) A petition to intervene filed by a city, other public body, or a chamber of commerce shall be filed with the Department not later than the last day prior to the beginning of the hearing.
                (iii) A petition to intervene that is not timely filed shall be dismissed unless the petitioner shall clearly show good cause for his or her failure to file such petition on time.
                (3) Answer. Any party to a proceeding may file an answer to a petition to intervene, making specific reference to the factors set forth in paragraph (b) of this section, within seven (7) days after the petition is filed.
                (4) Disposition. The decision granting, denying or otherwise ruling on any petition to intervene may be issued without receiving testimony or oral argument either from the petitioner or other parties to the proceeding.
                (d) Effect of granting intervention. A person permitted to intervene in a proceeding thereby becomes a party to the proceeding. However, interventions provided for in this section are for administrative purposes only, and no decision granting leave to intervene shall be deemed to constitute an expression by the Department that the intervening party has such a substantial interest in the order that is to be entered in the proceeding as will entitle it to judicial review of such order.

                § 302.21
                Appearances.
                (a) Any party to a proceeding may appear and be heard in person or by a designated representative.
                (b) No register of persons who may practice before the Department is maintained and no application for admission to practice is required.
                (c) Any person practicing or desiring to practice before the Department may, upon hearing and good cause shown, be suspended or barred from practicing.

                § 302.22
                Prehearing conference.
                (a) Purpose and scope of conference. At the discretion of the administrative law judge, a prehearing conference may be called prior to any hearing. Written notice of the prehearing conference shall be sent by the administrative law judge to all parties to a proceeding and to other persons who appear to have an interest in such proceeding. The purpose of such a conference is to define the issues and the scope of the proceeding, to secure statements of the positions of the parties and amendments to the pleadings, to schedule the exchange of exhibits before the date set for hearing, and to arrive at such agreements as will aid in the conduct and disposition of the proceeding. For example, consideration will be given to:
                (1) Matters that the DOT decisionmaker can consider without the necessity of proof;
                (2) Admissions of fact and of the genuineness of documents;
                (3) Requests for documents;
                (4) Admissibility of evidence;
                (5) Limitation of the number of witnesses;
                (6) Reducing of oral testimony to exhibit form;
                (7) Procedure at the hearing; and
                (8) Use of electronic media as a basis for exchange of briefs, hearing transcripts and exhibits, etc., in addition to the official record copy.
                (b) Actions during prehearing conference. The administrative law judge may require a further conference, or responsive pleadings, or both. If a party refuses to produce documents requested by another party at the conference, the administrative law judge may compel the production of such documents prior to a hearing by subpoena issued in accordance with the provisions of § 302.25 as though at a hearing. Applications for the production prior to hearing of documents in the Department's possession shall be addressed to the administrative law judge, in accordance with the provisions of § 302.25(g), in the same manner as provided therein for production of documents at a hearing. The administrative law judge may also, on his or her own initiative or on motion of any party, direct any party to the proceeding (air carrier or non-air carrier) to prepare and submit exhibits setting forth studies, forecasts, or estimates on matters relevant to the issues in the proceeding.
                (c) Report of prehearing conference. The administrative law judge shall issue a report of prehearing conference, defining the issues, giving an account of the results of the conference, specifying a schedule for the exchange of exhibits and rebuttal exhibits, the date of hearing, and specifying a time for the filing of objections to such report. The report shall be served upon all parties to the proceeding and any person who appeared at the conference. Objections to the report may be filed by any interested person within the time specified therein. The administrative law judge may revise his or her report in the light of the objections presented. The revised report, if any, shall be served upon the same persons as was the original report. Exceptions may be taken on the basis of any timely written objection that has not been met by a revision of the report if the exceptions are filed within the time specified in the revised report. Such report shall constitute the official account of the conference and shall control the subsequent course of the proceeding, but it may be reconsidered and modified at any time to protect the public interest or to prevent injustice.

                § 302.23
                Hearing.
                The administrative law judge to whom the case is assigned or the DOT decisionmaker shall give the parties reasonable notice of a hearing or of the change in the date and place of a hearing and the nature of such hearing.

                § 302.24
                Evidence.
                (a) Presenting evidence. Presenting evidence at the hearing shall be limited to material evidence relevant to the issues as drawn by the pleadings or as defined in the report of prehearing conference, subject to such later modifications of the issues as may be necessary to protect the public interest or to prevent injustice, and shall not be unduly repetitious. Evidence shall be presented in such form by all parties as the administrative law judge may direct.
                (b) Objections to evidence. Objections to the admission or exclusion of evidence shall be in short form, stating the grounds of objections relied upon, and the transcript shall not include argument or debate except as ordered by the administrative law judge. Rulings on such objections shall be a part of the transcript.
                (c) Exhibits. When exhibits are offered in evidence, one copy must be furnished to each of the parties at the hearing, and two copies to the administrative law judge, unless the parties previously have been furnished with copies or the administrative law judge directs otherwise. If the administrative law judge has not fixed a time for the exchange of exhibits, the parties shall exchange copies of exhibits at the earliest practicable time, preferably before the hearing or, at the latest, at the commencement of the hearing. Copies of exhibits may, at the discretion of the administrative law judge or the DOT decisionmaker, be furnished by use of electronic media in lieu of or in addition to a paper record copy.
                (d) Substitution of copies for original exhibits. In his or her discretion, the administrative law judge may permit a party to withdraw original documents offered in evidence and substitute true copies in lieu thereof.
                (e) Designation of parts of documents. When relevant and material matter offered in evidence by any party is embraced in a book, paper, or document containing other matter not material or relevant, the party offering the same shall plainly designate the matter so offered. The immaterial and irrelevant parts shall be excluded and shall be segregated insofar as practicable. If the volume of immaterial or irrelevant matter would unduly encumber the record, such submission will not be received in evidence, but may be marked for identification, and, if properly authenticated, the relevant or material matter may be read into the record, or, if the administrative law judge so directs, a true copy of such matter, in proper form, shall be received as an exhibit, and like copies delivered by the party offering the same to opposing parties or their attorneys appearing at the hearing, who shall be afforded an opportunity to examine the submission, and to offer in evidence in like manner other portions of the exhibit.
                (f) Records in other proceedings. In case any portion of the record in any other proceeding or civil or criminal action is offered in evidence, a true copy of such portion shall be presented for the record in the form of an exhibit unless:
                (1) The portion is specified with particularity in such manner as to be readily identified;
                (2) The party offering the same agrees unconditionally to supply such copies later, or when required by the DOT decisionmaker;
                (3) The parties represented at the hearing stipulate upon the record that such portion may be incorporated by reference, and that any portion offered by any other party may be incorporated by like reference upon compliance with paragraphs (f)(1) and (2) of this section; and
                (4) The administrative law judge directs such incorporation or waives the requirement in paragraph (f)(3) of this section with the consent of the parties.
                (g) Official notice of facts contained in certain documents. (1) Without limiting, in any manner or to any extent, the discretionary powers of the DOT decisionmaker and the administrative law judge to notice other matters or documents properly the subject of official notice, facts contained in any document within the categories enumerated in this subdivision are officially noticed in all formal economic proceedings except those subject to subpart D of this part. Each such category shall include any document antedating the final Department decision in the proceeding where such notice is taken. The matters officially noticed under the provisions of this paragraph are:
                (i) Air carrier certificates or applications therefor, together with any requests for amendment, and pleadings responding to applications when properly filed.
                (ii) All Form 41 reports required to be filed by air carriers with the Department.
                (iii) Reports of Traffic and Financial Data of all U.S. Air Carriers issued by the Department or by its predecessor.

                (iv) Airline Traffic Surveys and Passenger Origin-Destination Surveys, Domestic or International, compiled by the Department or its predecessor and published and/or made available either to the public or to parties in proceedings.

                (v) Compilations of data relating to competition in the airline industry and made available to the public by the Department or its predecessor.
                (vi) Passenger, mail, express, and freight data submitted to the Department and its predecessor as part of ER-586 Service Segment Data by U.S. carriers, or similar data submitted to the Department by U.S. air carriers (T-100) or (T-100F) that are not confidential.
                (vii) All tariffs, including the electronic versions, and amendments thereof, of all air carriers, on file with the Department.
                (viii) Service Mail Pay and Subsidy for U.S. Certificated Air Carriers published by the Department or its predecessor, including any supplemental data and subsequent issues published by the Department or its predecessor.
                (ix) Airport Activity Statistics of Certificated Air Carriers compiled and published by the Federal Aviation Administration (FAA) or the Department.
                (x) Air Traffic Activity Data issued by the FAA.
                (xi) National Plan of Integrated Airport Systems (NPIAS) issued by the FAA.
                (xii) Chart Supplements, issued by the FAA.
                (xiii) The Airman's Information Manual issued by the FAA.
                (xiv) Monthly, quarterly and annual reports of the Immigration and Naturalization Service, U.S. Department of Justice.
                (xv) All forms and reports required by the U.S. Postal Service to be filed by air carriers authorized to transport mail.
                (xvi) All orders of the Postmaster General designating schedules for the transportation of mail.
                (xvii) Publications of the Bureau of the Census of the U.S. Department of Commerce (DOC) relating, but not necessarily limited, to population, manufacturing, business, statistics, and any yearbooks, abstracts, or similar publications published by DOC.
                (xviii) All Official Airline Guides, including the North American, Worldwide, All-Cargo and quick reference editions, including electronic versions.
                (xix) Official Railways Guide and Russell's Official National Motor Coach Guide.
                (xx) The Rand McNally Commercial Atlas and Marketing Guide, and the Rand McNally Road Atlas, United States, Canada, and Mexico.
                (xxi) The Rand McNally Commercial Atlas and Marketing Guide, and the Rand McNally Road Atlas, United States, Canada, and Mexico.
                (xxii) Survey of Buying Power published by Sales Management Magazine.
                (2) Any fact contained in a document belonging to a category enumerated in paragraph (g)(1) of this section shall be deemed to have been physically incorporated into and made part of the record in such proceedings. However, such taking of official notice shall be subject to the rights granted to any party or intervener to the proceeding under section 7(d) of the Administrative Procedure Act (5 U.S.C. 557(d)).
                (3) The decisions of the Department and its administrative law judges may officially notice any appropriate matter without regard to whether or not such items are contained in a document belonging to the categories enumerated in paragraph (g)(1) of this section. However, where the decision rests on official notice of a material fact or facts, it will set forth such items with sufficient particularity to advise interested persons of the matters that have been noticed.
                (h) Receipt of documents after hearing. No document or other writings shall be accepted for the record after the close of the hearing except in accordance with an agreement of the parties and the consent of the administrative law judge or the DOT decisionmaker.
                (i) Exceptions. Formal exceptions to the rulings of the administrative law judge made during the course of the hearing are unnecessary. For all purposes for which an exception otherwise would be taken, it is sufficient that a party, at the time the ruling of the administrative law judge is made or sought, makes known the action he or she desires the administrative law judge to take or his or her objection to an action taken, and his or her grounds therefor.
                (j) Offers of proof. Any offer of proof made in connection with an objection taken to any ruling of the administrative law judge rejecting or excluding proffered oral testimony shall consist of a statement of the substance of the evidence that counsel contends would be adduced by such testimony, and if the excluded evidence consists of evidence in documentary or written form or of reference to documents or records, a copy of such evidence shall be marked for identification and shall constitute the offer of proof.
                [Docket No. OST-97-2090, 65 FR 6457, Feb. 9, 2000, as amended by Doc. No. DOT-OST-2014-0140, 84 FR 15936, Apr. 16, 2019]

                § 302.25
                Subpoenas.
                (a) An application for a subpoena requiring the attendance of a witness at a hearing or the production of documentary evidence may be made without notice by any party to the administrative law judge or, in the event that an administrative law judge has not been assigned to a proceeding or is not available, to the DOT decisionmaker or the Chief Administrative Law Judge, for action.
                (b) An application for a subpoena shall be in duplicate except that if it is made during the course of a hearing, it may be made orally on the record with the consent of the administrative law judge.
                (c) All such applications, whether written or oral, shall contain a statement or showing of general relevance and reasonable scope of the evidence sought, and shall be accompanied by two copies of a draft of the subpoena sought that, in the case of evidence, shall describe the documentary or tangible evidence to be subpoenaed with as much particularity as is feasible, or, in the case of a witness, the name of the witness and a general description of the matters concerning which the witness will be asked to testify.
                (d) The administrative law judge or DOT decisionmaker considering any application for a subpoena shall issue the subpoena requested if the application complies with this section. No attempt shall be made to determine the admissibility of evidence in passing upon an application for a subpoena, and no detailed or burdensome showing shall be required as a condition to the issuance of a subpoena.
                (e) Where it appears during the course of a proceeding that the testimony of a witness or documentary evidence is relevant to the issues in a proceeding, the administrative law judge, Chief Administrative Law Judge or DOT decisionmaker may issue on his or her own initiative a subpoena requiring such witness to attend and testify or requiring the production of such documentary evidence.
                (f) Subpoenas issued under this section shall be served upon the person to whom directed in accordance with § 302.7(b). Any person upon whom a subpoena is served may within seven (7) days after service or at any time prior to the return date thereof, whichever is earlier, file a motion to quash or modify the subpoena with the administrative law judge or, in the event an administrative law judge has not been assigned to a proceeding or is not available, to the DOT decisionmaker or the Chief Administrative Law Judge for action. If the person to whom the motion to modify or quash the subpoena has been addressed or directed, has not acted upon such a motion by the return date, such date shall be stayed pending his or her final action thereon. The DOT decisionmaker may at any time review, upon his or her own initiative, the ruling of an administrative law judge or the Chief Administrative Law Judge denying a motion to quash a subpoena. In such cases, the DOT decisionmaker may order that the return date of a subpoena be stayed pending action thereon.
                (g) The provisions of this section are not applicable to the attendance of DOT employees or the production of documentary evidence in the custody thereof at a hearing. The attendance of DOT employees and the production of documentary evidence in their custody are governed by 49 CFR Parts 9 and 7, respectively.

                § 302.26
                Depositions.

                (a) For good cause shown, the DOT decisionmaker or administrative law judge assigned to a proceeding may order that the testimony of a witness be taken by deposition and that the witness produce documentary evidence in connection with such testimony. Ordinarily an order to take the deposition of a witness will be entered only if:

                (1) The person whose deposition is to be taken would be unavailable at the hearing,
                (2) The deposition is deemed necessary to perpetuate the testimony of the witness, or
                (3) The taking of the deposition is necessary to prevent undue and excessive expense to a party and will not result in an undue burden to other parties or in undue delay.
                (b) Any party desiring to take the deposition of a witness shall make application therefor in duplicate to the administrative law judge or, in the event that an administrative law judge has not been assigned to a proceeding or is not available, to the DOT decisionmaker or Chief Administrative Law Judge, setting forth the reasons why such deposition should be taken, the name and residence of the witness, the time and place proposed for the taking of the deposition, and a general description of the matters concerning which the witness will be asked to testify. If good cause be shown, the administrative law judge, the DOT decisionmaker, or the Chief Administrative Law Judge, as the case may be, may, in his or her discretion, issue an order authorizing such deposition and specifying the witness whose deposition is to be taken, the general scope of the testimony to be taken, the time when, the place where, the designated officer (authorized to take oaths) before whom the witness is to testify, and the number of copies of the deposition to be supplied. Such order shall be served upon all parties by the person proposing to take the deposition a reasonable period in advance of the time fixed for taking testimony.
                (c) Witnesses whose testimony is taken by deposition shall be sworn or shall affirm before any questions are put to them. Each question shall be recorded and the answers shall be taken down in the words of the witness.
                (d) Objections to questions or evidence shall be in short form, stating the grounds of objection relied upon, but no transcript filed by the designated officer shall include argument or debate. Objections to questions or evidence shall be noted by the designated officer upon the deposition, but he or she shall not have power to decide on the competency or materiality or relevance of evidence, and he or she shall record the evidence subject to objection. Objections to questions or evidence not made before the designated officer shall not be deemed waived unless the ground of the objection is one that might have been obviated or removed if presented at that time.
                (e) The testimony shall be reduced to writing by the designated officer, or under his or her direction, after which the deposition shall be signed by the witness unless the parties by stipulation waive the signing or the witness is ill or cannot be found or refuses to sign, and certified in usual form by the designated officer. If the deposition is not signed by the witness, the designated officer shall state on the record this fact and the reason therefor. The original deposition and exhibits shall be forwarded to Department of Transportation Dockets and shall be filed in the proceedings.

                (f) Depositions may also be taken and submitted on written interrogatories in substantially the same manner as depositions taken by oral examination. Ordinarily such procedure will be authorized only if necessary to achieve the purposes of an oral deposition and to serve the balance of convenience of the parties. The interrogatories shall be filed in quadruplicate with two copies of the application and a copy of each shall be served on each party. Within seven (7) days after service any party may file with the person to whom application was made two copies of his or her objections, if any, to such interrogatories and may file such cross-interrogatories as he or she desires to submit. Cross-interrogatories shall be filed in quadruplicate, and a copy thereof together with a copy of any objections to interrogatories, shall be served on each party, who shall have five (5) days thereafter to file and serve his or her objections, if any, to such cross-interrogatories. Objections to interrogatories or cross-interrogatories, shall be served on the DOT decisionmaker or the administrative law judge considering the application. Objections to interrogatories shall be made before the order for taking the deposition issues and if not so made shall be deemed waived. When a deposition is taken upon written interrogatories, and cross-interrogatories, no party shall be present or represented, and no person other than the witness, a reporter, and the designated officer shall be present at the examination of the witness, which fact shall be certified by the designated officer, who shall ask the interrogatories and cross-interrogatories to the witness in their order and reduce the testimony to writing in the witness's own words. The provisions of paragraph (e) of this section shall be applicable to depositions taken in accordance with this paragraph.
                (g) All depositions shall conform to the specifications of § 302.3 except that the filing of three copies thereof shall be sufficient. Any fees of a witness, the reporter, or the officer designated to take the deposition shall be paid by the person at whose instance the deposition is taken.
                (h) The fact that a deposition is taken and filed in a proceeding as provided in this section does not constitute a determination that it is admissible in evidence or that it may be used in the proceeding. Only such part or the whole of a deposition as is received in evidence shall constitute a part of the record in such proceeding upon which a decision may be based.

                § 302.27
                Rights of witnesses; attendance fees and mileage.
                (a) Any person appearing as a witness in any proceeding governed by this part, whether in response to a subpoena or by request or permission of the Department, may be accompanied, represented, and advised by counsel and may be examined by that counsel after other questioning.
                (b) Any person who submits data or evidence in a proceeding governed by this part, whether in response to a subpoena or by request or permission of the Department, may retain, or, on payment of lawfully prescribed costs, procure, a copy of any document so submitted or a copy of any transcript made of such testimony.

                (c) No person whose attendance at a hearing or whose deposition is to be taken shall be obliged to respond to a subpoena unless upon a service of the subpoena he or she is tendered attendance fees and mileage by the party at whose instance he or she is called in accordance with the requirements of paragraphs (c)(1) and (2) of this section; Provided, That a witness summoned at the instance of the Department or one of its employees, or a salaried employee of the United States summoned to testify as to matters related to his or her public employment, need not be tendered such fees or mileage at that time.

                (1) Witnesses who are not salaried employees of the United States, or such employees summoned to testify on matters not related to their public employment, shall be paid the same per diem, subsistence, and mileage fees paid to witnesses for like service in the courts of the United States that are in effect at the time of travel; Provided, That no employee, officer, or attorney of an air carrier who travels under the free or reduced rate provisions of section 41511 of 49 U.S.C. Subtitle VII shall be entitled to any fees or mileage; And provided further, That such fees and mileage shall not be applicable for witnesses summoned to testify in Alaska, and that, in Alaska, where permitted by section 41511 of 49 U.S.C. Subtitle VII, the witness may, at his or her option, accept a pass for travel by air. Such witnesses shall be furnished appropriate forms and instructions for the submission of claims for attendance fees, subsistence, and mileage from the Government before the close of the proceedings that they are required to attend. Only persons summoned by subpoena shall be entitled to claim attendance fees, subsistence, or mileage from the Government.
                (2) Witnesses who are salaried employees of the United States and who are summoned to testify on matters relating to their public employment, irrespective of at whose instance they are summoned, shall be paid in accordance with applicable Government regulations.

                § 302.28
                Transcripts of hearings.

                (a) Hearings shall be recorded and transcribed under supervision of the administrative law judge, by a reporting firm under contract with the Department. Copies of the transcript that may, at the discretion of the administrative law judge, be furnished by use of electronic media in addition to the official copy, shall be supplied to the parties to the proceeding by said reporting firm, at the contract price for copies.
                (b) The administrative law judge shall determine whether “ordinary transcript” or “daily transcript” (as those terms are defined in the contract) will be necessary and required for the proper conduct of the proceeding and the Department will pay the reporting firm the cost of reporting its proceedings at the contract price for such type of transcript. If the administrative law judge has determined that ordinary transcript is adequate, and has notified the parties of such determination (in the notice of hearings, or otherwise), then any party may request reconsideration of such determination and that daily transcript be required. In determining what is necessary and required for the proper conduct of the proceeding, the administrative law judge shall consider, among other things:
                (1) The nature of the proceeding itself;
                (2) The DOT decisionmaker's needs as well as the reasonable needs of the parties;
                (3) The cost to the Department; and
                (4) The requirements of a fair hearing.
                (c) If the administrative law judge has determined that ordinary transcript is adequate, or, upon reconsideration, has adhered to such determination, then any party may request the reporting firm to provide daily transcript. In that case, pursuant to its contract with the Department, the reporting firm will be obligated to furnish to the Department daily transcript upon the agreement by the requesting party to pay to the reporting firm an amount equal to the difference between the contract prices for ordinary transcript and daily transcript, provided that the requesting party makes such agreement with the reporting firm at least twenty-four (24) hours in advance of the date for which such transcript is requested.
                (d) Any party may obtain from the Office of the Assistant Secretary for Administration, the name and address of the private reporting company with which the Department currently has a contract for transcripts and copies, as well as the contract prices then in effect for such services.
                (e) Copies of transcripts ordered by parties other than the Department shall be prepared for delivery to the requesting person at the reporting firm's place of business, within the stated time for the type of transcript ordered. The requesting party and the reporting firm may agree upon some other form or means of delivery (mail, messenger, electronic media, etc.) and the reporting firm may charge for such special service, provided that such charge shall not exceed the reasonable cost of such service.
                (f) Changes in the official transcript may be made only when they involve errors affecting substance. A motion to correct a transcript shall be filed with Department of Transportation Dockets, within ten (10) days after receipt of the completed transcript by the Department. If no objections to the motion are filed within ten (10) days thereafter, the transcript may, upon the approval of the administrative law judge, be changed to reflect such corrections. If objections are received, the motion and objections shall be submitted to the official reporter by the administrative law judge together with a request for a comparison of the transcript with the reporter's record of the hearing. After receipt of the report of the official reporter an order shall be entered by the administrative law judge settling the record and ruling on the motion.

                § 302.29
                Argument before the administrative law judge.
                (a) The administrative law judge shall give the parties to the proceeding adequate opportunity during the course of the hearing for the presentation of arguments in support of or in opposition to motions, and objections and exceptions to rulings of the administrative law judge.

                (b) When, in the opinion of the administrative law judge, the volume of the evidence or the importance or complexity of the issues involved warrants, he or she may, either on his or her own motion or at the request of a party, permit the presentation of oral argument, and may impose such time limits on the argument as he or she may determine appropriate. Such argument shall be transcribed and bound with the transcript of testimony and will be available to the Department decisionmaker for consideration in deciding the case.

                § 302.30
                Briefs to the administrative law judge.
                Within such limited time after the close of the reception of evidence fixed by the administrative law judge, any party may, upon request and under such conditions as the administrative law judge may prescribe, file for his or her consideration briefs which may include proposed findings of fact and conclusions of law that shall contain exact references to the record and authorities relied upon.

                § 302.31
                Initial and recommended decisions; certification of the record.
                (a) Action by administrative law judge after hearing. Except where the DOT decisionmaker directs otherwise, after the taking of evidence and the receipt of briefs which may include proposed findings of fact and conclusions of law, if any, the administrative law judge shall take the following action:
                (1) Initial decision. If the proceeding does not involve foreign air transportation, the administrative law judge shall render an “initial decision.” Such decision shall encompass the administrative law judge's decision on the merits of the proceeding and on all ancillary procedural issues remaining for disposition at the close of the hearing.
                (2) Recommended decision. In cases where the action of the Department involves foreign air transportation and is subject to review by the President of the United States pursuant to section 41307 of 49 U.S.C. Subtitle VII, the administrative law judge shall render a “recommended decision.” Such decision shall encompass the administrative law judge's decision on the merits of the proceeding and on all ancillary procedural issues remaining for disposition at the close of the hearing.
                (b) Certification to the DOT decisionmaker for decision. At any time prior to the close of the hearing, the DOT decisionmaker may direct the administrative law judge to certify any question or the entire record in the proceeding to the DOT decisionmaker for decision. In cases where the record is thus certified, the administrative law judge shall not render a decision but shall make a recommendation to the DOT decisionmaker as required by section 8(a) of the Administrative Procedure Act (5 U.S.C. 558(a)) unless advised by the DOT decisionmaker that he or she intends to issue a tentative decision.
                (c) Every initial or recommended decision issued shall state the names of the persons who are to be served with copies of it, the time within which exceptions to, or petitions for review of, such decision may be filed, and the time within which briefs in support of the exceptions may be filed. In addition, every such decision shall recite that it is made under delegated authority, and contain notice of the provisions of paragraph (d) of this section. In the event the administrative law judge certifies the record to the DOT decisionmaker without an initial or recommended decision, he or she shall notify the parties of the time within which to file with the DOT decisionmaker briefs which may include proposed findings of fact and conclusions of law.
                (d) Unless a petition for discretionary review is filed pursuant to § 302.32, exceptions are filed pursuant to § 302.217, or the DOT decisionmaker issues an order to review upon his or her own initiative, the initial decision shall become effective as the final order of the Department thirty (30) days after service thereof; in the case of a recommended decision, that decision shall be transmitted to the President of the United States under 49 U.S.C. 41307. If a petition for discretionary review or exceptions are timely filed or action to review is taken by the DOT decisionmaker upon his or her own initiative, the effectiveness of the initial decision or the transmission of the recommended decision is stayed until the further order of the DOT decisionmaker.

                § 302.32
                Petitions for discretionary review of initial or recommended decisions; review proceedings.
                (a) Petitions for discretionary review. (1) Review by the DOT decisionmaker pursuant to this section is not a matter of right but is at the sole discretion of the DOT decisionmaker. Any party may file and serve a petition for discretionary review by the DOT decisionmaker of an initial decision or recommended decision within twenty-one (21) days after service thereof, unless the DOT decisionmaker sets a different period for filing.
                (2) Petitions for discretionary review shall be filed only upon one or more of the following grounds:
                (i) A finding of a material fact is erroneous;
                (ii) A necessary legal conclusion is without governing precedent or is a departure from or contrary to law, the Department's rules, or precedent;
                (iii) A substantial and important question of law, policy or discretion is involved; or
                (iv) A prejudicial procedural error has occurred.
                (3) Each issue shall be separately numbered and plainly and concisely stated. Petitioners shall not restate the same point in repetitive discussions of an issue. Each issue shall be supported by detailed citations of the record when objections are based on the record, and by statutes, regulations or principal authorities relied upon. Any matters of fact or law not argued before the administrative law judge, but that the petitioner proposes to argue on brief to the DOT decisionmaker, shall be stated.
                (4) Petitions for discretionary review shall be self-contained and shall not incorporate by reference any part of another document. Except by permission of the DOT decisionmaker, petitions shall not exceed twenty (20) pages including appendices and other papers physically attached to the petition.
                (5) Requests for oral argument on petitions for discretionary review will not be entertained by the DOT decisionmaker.
                (b) Answers. Within fifteen (15) days after service of a petition for discretionary review, any party may file and serve an answer of not more than fifteen (15) pages in support of or in opposition to the petition. If any party desires to answer more than one petition for discretionary review in the same proceeding, he or she shall do so in a single document of not more than twenty (20) pages.
                (c) Orders declining review. The DOT decisionmaker's order declining to exercise the discretionary right of review will specify the date upon which the administrative law judge's decision shall become effective as the final decision of the Department. A petition for reconsideration of a Department order declining review will be entertained only when the order exercises, in part, the DOT decisionmaker's discretionary right of review, and such petition shall be limited to the single question of whether any issue designated for review and any issue not so designated are so inseparably interrelated that the former cannot be reviewed independently or that the latter cannot be made effective before the final decision of the Department in the review proceeding.
                (d) Review proceedings. (1) The DOT decisionmaker may take review of an initial or recommended decision upon petition or on his or her own initiative or both. The DOT decisionmaker will issue a final order upon such review without further proceedings on any or all the issues where he or she finds that matters raised do not warrant further proceedings.
                (2) Where the DOT decisionmaker desires further proceedings, he or she will issue an order for review that will:
                (i) Specify the issues to which review will be limited. Only those issues specified in the order shall be argued on brief to the DOT decisionmaker, pursuant to § 302.35, and considered by the DOT decisionmaker;
                (ii) Specify the portions of the administrative law judge's decision, if any, that are to be stayed as well as the effective date of the remaining portions thereof; and
                (iii) Designate the parties to the review proceeding.

                § 302.33
                Tentative decision of the DOT decisionmaker.
                (a) Except as provided in paragraph (b) of this section, whenever the administrative law judge certifies the record in a proceeding directly to the DOT decisionmaker without issuing an initial or recommended decision in the matter, the DOT decisionmaker shall, after consideration of any briefs submitted by the parties, prepare a tentative decision and serve it upon the parties. Every tentative decision of the DOT decisionmaker shall state the names of the persons who are to receive copies of it, the time within which exceptions to such decision and briefs, if any, in support of or in opposition to the exceptions may be filed, and the date when such decision will become final in the absence of exceptions thereto. If no exceptions are filed to the tentative decision of the DOT decisionmaker within the period fixed, it shall become final at the expiration of such period unless the DOT decisionmaker orders otherwise.
                (b) The DOT decisionmaker may, in his or her discretion, omit a tentative decision in proceedings under subpart B. Final decisions of the DOT decisionmaker are subject to review as provided in § 302.18.

                § 302.34
                Exceptions to tentative decisions of the DOT decisionmaker.
                (a) Time for filing. Within ten (10) days after service of any tentative decision of the DOT decisionmaker, any party to a proceeding may file exceptions to such decision with the DOT decisionmaker.
                (b) Form and contents of exceptions. Each exception shall be separately numbered and shall be stated as a separate point, and appellants shall not restate the same point in several exceptions. Each exception shall state, sufficiently identify, and be limited to, an ultimate conclusion in the decision to which exception is taken (such as, selection of one carrier rather than another to serve any point or points; points included in or excluded from a new route; imposition or failure to impose a given restriction; determination of a rate at a given amount rather than another). No specific exception shall be taken with respect to underlying findings or statements, but exceptions to an ultimate conclusion shall be deemed to include exceptions to all underlying findings and statements pertaining thereto; Provided, however, That exceptions shall specify any matters of law, fact, or policy that were not argued before the administrative law judge but will be set forth for the first time on brief to the DOT decisionmaker.
                (c) Effect of failure to file timely and adequate exceptions. No objection may be made on brief or at a later time to an ultimate conclusion that is not expressly made the subject of an exception in compliance with the provisions of this section; Provided, however, That any party may file a brief in support of the decision and in opposition to the exceptions filed by any other party.

                § 302.35
                Briefs to the DOT decisionmaker.
                (a) Time for filing. Within such period after the date of service of any tentative decision by the DOT decisionmaker as may be fixed therein, any party may file a brief addressed to the DOT decisionmaker in support of his or her exceptions to such decision or in opposition to the exceptions filed by any other party. Briefs to the DOT decisionmaker on initial or recommended decisions of administrative law judges shall be filed only in those cases where the DOT decisionmaker grants discretionary review and orders further proceedings, pursuant to § 302.32(d)(2), and only upon those issues specified in the order. Such briefs shall be filed within thirty (30) days after date of service of the order granting discretionary review unless otherwise specified in the order. In cases where, because of the limited number of parties and the nature of the issues, the filing of opening, answering, and reply briefs will not unduly delay the proceeding and will assist in its proper disposition, the DOT decisionmaker may direct that the parties file briefs at different times rather than at the same time.
                (b) Effect of failure to restate objections in briefs. In determining the merits of an appeal, the DOT decisionmaker will not consider the exceptions or the petition for discretionary review but will consider only the brief. Each objection contained in the exceptions or each issue specified in the DOT decisionmaker's order exercising discretionary review must be restated and supported by a statement and adequate discussion of all matters relied upon, in a brief filed pursuant to and in compliance with the requirements of this section.
                (c) Formal specifications of briefs—(1) Contents. Each brief shall discuss every point of law, fact, or precedent that the party submitting it is entitled to raise and that it wishes the DOT decisionmaker to consider. Each brief shall include a summary of the argument not to exceed five (5) pages. Support and justification for every point raised shall include itemized references to the pages of the transcript of hearing, exhibit or other matter of record, and citations of the statutes, regulations, or principal authorities relied upon. If a brief or any point discussed in the brief is not in substantial conformity with the requirement for such support and justification, no motion to strike or dismiss such document shall be made but the DOT decisionmaker may disregard the points involved. Copies of briefs may be furnished by use of electronic media in a format acceptable to the Department and the parties.
                (2) Incorporation by reference. Briefs to the DOT decisionmaker shall be completely self-contained and shall not incorporate by reference any portion of any other brief or pleading; Provided, however, That instead of submitting a brief to the DOT decisionmaker a party may adopt by reference specifically identified pages or the whole of his or her prior brief to the administrative law judge if the latter complies with all requirements of this section. In such cases, the party shall file with Department of Transportation Dockets a letter exercising this privilege and serve all parties in the same manner as a brief to the DOT decisionmaker.
                (3) Length. Except by permission or direction of the DOT decisionmaker, briefs shall not exceed fifty (50) pages including pages contained in any appendix, table, chart, or other document physically attached to the brief, but excluding maps and the summary of the argument. In this case “map” means only those pictorial representations of routes, flight paths, mileage, and similar ancillary data that are superimposed on geographic drawings and contain only such text as is needed to explain the pictorial representation.

                § 302.36
                Oral argument before the DOT decisionmaker.
                (a) If any party desires to argue a case orally before the DOT decisionmaker, he or she shall request leave to make such argument in his or her exceptions or brief. Such request shall be filed no later than the date when briefs before the DOT decisionmaker are due in the proceeding. The DOT decisionmaker will rule on such request, and, if oral argument is to be allowed, all parties to the proceeding will be advised of the date and hour set for such argument and the amount of time allowed to each party. Requests for oral argument on petitions for discretionary review will not be entertained.
                (b) Pamphlets, charts, and other written data may be offered to the DOT decisionmaker at oral argument only in accordance with the following rules: All such material shall be limited to facts in the record of the case being argued and shall be served on all parties to the proceeding with four (4) copies transmitted to Department of Transportation Dockets at least five (5) calendar days in advance of the argument.

                § 302.37
                Waiver of procedural steps after hearing.
                The parties to any proceeding may agree to waive any one or more of the procedural steps provided in § 302.29 through § 302.36.

                § 302.38
                Final decision of the DOT Decisionmaker.
                When a case stands submitted to the DOT decisionmaker for final decision on the merits, he or she will dispose of the issues presented by entering an appropriate order that will include a statement of the reasons for his or her findings and conclusions. Such orders shall be deemed “final orders” within the purview of § 302.14(a), in the manner provided by § 302.18.

            Subpart B—Rules Applicable to U.S. Air Carrier Certificate and Foreign Air Carrier Permit Licensing Proceedings

              § 302.201
              Applicability.
              (a) This subpart sets forth the specific rules applicable to proceedings on:
              (1) U.S. air carrier certificates of public convenience and necessity and U.S. all-cargo air service certificates under Chapter 411 of 49 U.S.C. Subtitle VII, including renewals, amendments, modifications, suspensions and transfers of such certificates.
              (2) Foreign air carrier permits under Chapter 413 of 49 U.S.C. Subtitle VII , including renewals, amendments, modifications, suspensions, and transfers of such permits.
              (b) Except as modified by this subpart, the provisions of subpart A of this part apply.

              § 302.202
              Contents of applications.
              (a) Certificate applications filed under this subpart shall contain the information required by part 201 of this chapter and, where applicable, part 204 of this chapter, and foreign air carrier permit applications shall contain the information required by part 211 of this chapter, along with any other information that the applicant desires the Department to notice officially.
              (b) Applications shall include a notice on the cover page stating that any person may support or oppose the application by filing an answer and serving a copy of the answer on all persons served with the application. The notice shall also state the due date for answers. Amendments to applications will be considered new applications for the purpose of calculating the time limitations of this subsection.
              (c) Applications shall include a list of the names and addresses of all persons who have been served in accordance with § 302.203.
              (d) Where required, each application shall be accompanied by an Energy Statement in conformity with part 313 of this chapter.

              § 302.203
              Service of documents.
              (a) General requirements. (1) Applicants shall serve on the persons listed in paragraph (b) of this section a notice that an application has been filed, and upon request shall promptly provide those persons with copies of the application and supporting documents. The notice must clearly state the authority sought and the due date for other pleadings.
              (2) Applicants shall serve a complete copy of the application on the Manager of the FAA Flight Standards District Office responsible for processing the application for any FAA authority needed to conduct the proposed operations.
              (3) After an order under § 302.210 has been issued, parties need only serve documents on those persons listed in the service list accompanying the order.
              (4) In the case of an application sought to be consolidated, the applicant shall serve the notice required in paragraph (a)(1) of this section on all persons served by the original applicant.
              (b) Persons to be served—(1) U.S. air carriers. (i) In certificate proceedings, except for those proceedings that involve charter-only authority under section 41102(a)(3) of 49 U.S.C. Subtitle VII:
              (A) Applicants for certificates to engage in interstate air transportation and other persons who file a pleading in the docket shall serve:
              (1) The airport authority of each airport that the applicant initially proposes to serve, and
              (2) Any other person who has filed a pleading in the docket.
              (B) Applicants for certificates to engage in foreign air transportation and other persons who file a pleading in the docket shall serve:
              (1) All U.S. air carriers (including commuter air carriers) that publish schedules in the Official Airline Guide or in the Air Cargo Guide for the country-pair market(s) specified in the application,
              (2) The airport authority of each U.S. airport that the applicant initially proposes to serve, and
              (3) Any other person who has filed a pleading in the docket.

              (ii) In certificate proceedings involving charter-only authority under 41102(a)(3) of 49 U.S.C. Subtitle VII, applicants and other persons who file a pleading in the docket shall serve any other person who has filed a pleading in the docket.
              (2) Foreign air carriers. (i) In permit proceedings, except for those proceedings involving charter-only authority, applicants and other persons who have filed a pleading in the docket shall serve:

              (A) All U.S. air carriers (including commuter air carriers) that publish schedules in the Official Airline Guide or the Air Cargo Guide for the country-pair market(s) specified in the application,
              (B) The U.S. Department of State,
              (C) The airport authority of each U.S. airport that the applicant initially proposes to serve, and
              (D) Any other person who has filed a pleading in the docket.
              (ii) In foreign air carrier permit proceedings for charter-only authority, applicants and other persons who file a pleading in the docket shall serve the U.S. Department of State and any other person who has filed a pleading in the docket.
              (c) Additional service. The Department may, at its discretion, order additional service upon such persons as the facts of the situation warrant. Where only notices are required, parties are encouraged to serve copies of their actual pleadings where feasible. In any proceeding directly involving air transportation to the Federated States of Micronesia, the Marshall Islands or Palau, the Department and any party or participant in the proceeding shall serve all documents on the President and the designated authorities of the government(s) involved.

              § 302.204
              Responsive documents.
              (a) Any person may file an answer in support of or in opposition to any application. Answers shall set forth the basis for the position taken, including any economic data or other facts relied on. Except as otherwise provided in § 302.212(d), answers shall be filed within twenty one (21) days of the original or amended application and shall be served in accordance with § 302.203.
              (b) Replies to answers shall be filed within fourteen (14) days after the filing of the answer.
              (c) Persons having common interests shall, to the extent practicable, arrange for the joint preparation of pleadings.

              § 302.205
              Economic data and other facts.
              Whenever economic data and other facts are provided in any pleading, such information shall include enough detail so that final results can be obtained without further clarification. Sources, bases, and methodology used in constructing exhibits, including any estimates or judgments, shall be provided.

              § 302.206
              Verification.
              Any pleading filed under this subpart shall include a certification as provided in § 302.4(b).

              Disposition of Applications

                § 302.207
                Cases to be decided on written submissions.
                (a) Applications under this subpart will be decided on the basis of written submissions unless the DOT decisionmaker, on petition as provided in § 302.208 or on his or her own initiative, determines that an oral presentation or an administrative law judge's decision is required because:
                (1) Use of written procedures will prejudice a party;
                (2) Material issues of decisional fact cannot adequately be resolved without oral evidentiary hearing procedures; or
                (3) Assignment of an application for oral evidentiary hearing procedures or an initial or recommended decision by an administrative law judge is otherwise required by the public interest.
                (b) The standards employed in deciding cases under § 302.210(a)(1) or (5) shall be the same as the standards applied in cases decided under § 302.210(a)(4). These are the standards set forth in the Statute as interpreted and expanded upon under that Statute.

                § 302.208
                Petitions for oral presentation or judge's decision.
                (a) Any person may file a petition for oral evidentiary hearing, oral argument, an initial or recommended decision, or any combination of these. Petitions shall demonstrate that one or more of the criteria set forth in § 302.207 are applicable to the issues for which an oral presentation or judge's decision is requested. Such petitions shall be supported by a detailed explanation of the following:
                (1) Why the evidence or argument to be presented cannot be submitted in the form of written evidence or briefs;
                (2) Which issues should be examined by an administrative law judge and why such issues should not be presented directly to the DOT decisionmaker for decision;
                (3) An estimate of the time required for the oral presentation and the number of witnesses whom the petitioner would present; and
                (4) If cross-examination of any witness is desired, the name of the witness, if known, the subject matter of the desired cross-examination or the title or number of the exhibit to be cross-examined, what the petitioner expects to establish by the cross-examination, and an estimate of the time needed for it.
                (b) Petitions for an oral hearing, oral argument, or an administrative law judge's decision shall be filed no later than the due date for answers in proceedings governed by §§ 302.211, 302.212 and 302.213, and be accompanied with the information specified in paragraphs (a)(1) and (a)(2) of this section. Filing of the information required in paragraphs (a)(3) and (a)(4) of this section may be deferred until the DOT decisionmaker has decided to hold a formal proceeding.
                (c) Where a stipulation of disputed facts would eliminate the need for an oral presentation or an administrative law judge's decision, parties shall include in their petitions an offer to withdraw the request should the stipulation be made.

                § 302.209
                Procedures for deferral of applications.
                Within twenty-eight (28) days after the filing of an application under this subpart, the DOT decisionmaker may defer further processing of the application until all of the information necessary to process that application is submitted. The time periods contained in this subpart with respect to the disposition of the application shall not begin to run until the application is complete. In addition, the DOT decisionmaker may defer action on a foreign air carrier permit application for foreign policy reasons.

                § 302.210
                Disposition of applications; orders establishing further procedures.
                (a) General requirements. The DOT decisionmaker will take one of the following actions with respect to all or any portion of each application:
                (1) Issue an Order to Show Cause why the application should not be granted, denied or dismissed, in whole or in part.
                (2) Issue a Final Order granting the application if the DOT decisionmaker determines that there are no material issues of fact that warrant further procedures for their resolution.
                (3) Issue a Final Order dismissing or rejecting the application for lack of prosecution or if the application does not comply with this subpart or is otherwise materially deficient.
                (4) Issue an order setting the application for oral evidentiary hearing. The order will establish the scope of the issues to be considered and the procedures to be employed, and will indicate whether one or more attorneys from the Office of the Assistant General Counsel for Aviation Enforcement and Proceedings will participate as a party. All of the procedures set forth in §§ 302.214 through 302.218 will apply unless the DOT decisionmaker decides otherwise.

                (5) Begin to make a determination with respect to the application under simplified procedures without oral evidentiary hearing. In this event, the DOT decisionmaker may indicate which, if any, of the procedural steps set forth in §§ 302.215 through 302.219 will be employed. The DOT decisionmaker may also indicate that other non-oral evidentiary hearing procedures will be employed.

                (b) Additional evidence. An order establishing further procedures under paragraph (a)(1), (4) or (5) of this section may provide for the filing of additional evidence.
                (c) Petitions for reconsideration. Petitions for reconsideration of an order issued under this section will not be entertained except to the extent that the order dismissed or rejected all or part of an application. If a petition for reconsideration results in the reinstatement of all or part of an application, the deadline for final Department decision established in § 302.220 will be calculated from the date of the order reinstating the application.

                § 302.211
                Procedures in certificate cases involving initial or continuing fitness.
                (a) Applicability. This section applies to cases involving certificate authority under sections 41102 and 41103 of 49 U.S.C. Subtitle VII , including applications for new authority, renewals, amendments, modifications, suspensions, and transfers of such certificates, where the issues involve a determination of the applicant's fitness to operate. Where such applications propose the operation of scheduled service in limited entry international markets, the provisions of § 302.212 also apply.
                (b) Order establishing further procedures. Within 90 days after a complete application is filed, the DOT decisionmaker will take action as provided in § 302.210.

                § 302.212
                Procedures in certificate cases involving international routes.
                (a) Applicability. This section applies to cases involving certificates under section 41102 of 49 U.S.C. Subtitle VII that involve international routes, including applications to obtain, renew, amend, transfer, or remove restrictions in such certificates.
                (b) Answers to applications. Answers shall be filed within twenty one (21) days after the filing of the original application.
                (c) Conforming applications or motions to modify scope. Any person may file an application for the same authority as sought in an application to obtain, renew, or amend a certificate filed under paragraph (a) of this section. Requests to modify the issues to be decided and to consolidate applications filed in other dockets shall be filed as a “motion to modify scope.” Motions and applications under this section shall include economic data, other facts, and any argument in support of the person's position and must be filed within twenty one (21) days after the original application is filed. Later-filed competing applications shall conform to the base and forecast years used by the original applicant and need not contain traffic and financial data for markets for which data have already been submitted by another person.
                (d) Answers to conforming applications or motions to modify scope. Answers to conforming applications and motions to modify scope filed in accordance with paragraph (b) of this section shall be filed within fourteen (14) days after the filing of the conforming application or motion. Answers may argue that an application should be dismissed. Answers may also seek to consolidate an application filed in another docket if that application conforms to the scope of the proceeding proposed in the motion to modify scope and includes the information prescribed in § 302.202. Answers and applications shall not, however, propose the consideration of additional markets.
                (e) Order establishing further procedures. Within 90 days after a complete application is filed, the DOT decisionmaker will issue an order as provided in § 302.210.

                § 302.213
                Procedures in foreign air carrier permit cases.
                (a) Applicability. This section applies to cases involving foreign air carrier permits under section 41302 of 49 U.S.C. Subtitle VII, including applications for new authority, renewals, amendments, modifications, suspensions, and transfers of such permits.
                (b) Executive departments. In addition to the standards set forth in § 302.207(b), the views of other executive agencies, such as the Department of State, and the Federal Aviation Administration's evaluation of the applicant's operational fitness, may be sought in determining the appropriate action on applications filed under this section.

                (c) Order establishing further procedures. As soon as possible after the date that answers are due and all information needed to reach a decision is filed, the DOT decisionmaker will issue an order as provided in § 302.210.

                § 302.214
                Oral evidentiary hearing.
                If the DOT decisionmaker determines under § 302.210(a)(4) that an oral evidentiary hearing should be held, the application or applications will be set for oral hearing before an administrative law judge. The issues will be those set forth in the order establishing further procedures. The procedures in §§ 302.17 to 302.38 governing the conduct of oral evidentiary hearings will apply.

                § 302.215
                Briefs to the administrative law judge.
                Briefs to the administrative law judge shall be filed within the following periods, as applicable:
                (a) Fourteen (14) days after the close of the oral evidentiary hearing, unless the administrative law judge determines that, under the circumstances of the case, briefs are not necessary or that the parties will require more time to prepare briefs; or
                (b) Fourteen (14) days after the filing of additional evidence called for in the order establishing further procedures if no oral evidentiary hearing is called for, unless the DOT decisionmaker determines that some other period should be allowed.

                § 302.216
                Administrative law judge's initial or recommended decision.
                (a) In a case that has been set for oral evidentiary hearing under § 302.210(a)(4), the administrative law judge shall adopt and serve an initial or recommended decision within one hundred thirty-six (136) days after the issuance of the order establishing further procedures unless:
                (1) The DOT decisionmaker, having found extraordinary circumstances, has by order delayed the initial or recommended decision by a period of not more than thirty (30) days; or
                (2) An applicant has failed to meet the procedural schedule adopted by the judge or the DOT decisionmaker. In this case, the administrative law judge may, by notice, extend the due date for the issuance of an initial or recommended decision for a period not to exceed the period of delay caused by the applicant.
                (b) In a case in which some of the issues have not been set for oral hearing under § 302.210(a)(4), the administrative law judge shall adopt and serve an initial or recommended decision within the time established by the DOT decisionmaker in the order establishing further procedures, except that that due date may be extended in accordance with paragraph (a)(2) of this section.
                (c) The initial or recommended decision shall be issued by the administrative law judge fourteen (14) days after it is served. Unless exceptions are filed under § 302.217 or the DOT decisionmaker issues an order to review on his or her own initiative, an initial decision shall become effective as the final order of the Department the day it is issued. Where exceptions are timely filed or the DOT decisionmaker takes action to review on his or her own initiative, the effectiveness of the initial decision is stayed until further order of the DOT decisionmaker.
                (d) In all other respects, the provisions of § 302.31 shall apply.

                § 302.217
                Exceptions to administrative law judge's initial or recommended decision.
                (a) Within seven (7) days after service of any initial or recommended decision of an administrative law judge, any party may file exceptions to the decision with the DOT decisionmaker.
                (b) If timely and adequate exceptions are filed, review of the initial or recommended decision is automatic.
                (c) In all other respects, the provisions of § 302.34 shall apply.

                § 302.218
                Briefs to the DOT decisionmaker.
                (a) In a case in which an initial or recommended decision has been served and exceptions have been filed, any party may file a brief in support of or in opposition to any exceptions. Such briefs shall be filed within fourteen (14) days after service of the initial or recommended decision.

                (b) In a case in which no exceptions have been filed, briefs shall not be filed unless the DOT decisionmaker has taken review of the initial or recommended decision on his or her own initiative and has specifically provided for the filing of such briefs.
                (c) In all other respect, the provisions of § 302.35 shall apply.

                § 302.219
                Oral argument before the DOT decisionmaker.
                If the order establishing further procedures provides for an oral argument, or if the DOT decisionmaker otherwise decides to hear oral argument, all parties will be notified of the date and hour set for that argument and the amount of time allowed each party. The provisions of § 302.36(b) shall also apply.

                § 302.220
                Final decision of the Department.
                In addition to the provisions of § 302.38, the following provisions shall apply:
                (a) In the case of a certificate application that has been set for oral evidentiary hearing under § 302.210(a)(4), the Department will issue its final order within ninety (90) days after the initial or recommended decision is issued. If an application has failed to meet the procedural schedule established by the Department, the DOT decisionmaker may, by notice, extend the date for a final decision for a period equal to the period of delay caused by the applicant.
                (b) If the DOT decisionmaker does not act in the time period established in paragraph (a) of this section:
                (1) in the case of an application for a certificate to engage in foreign air transportation, the recommended decision shall be transmitted to the President of the United States under 49 U.S.C. 41307; or
                (2) in the case of an application not subject to review by the President of the United States, the initial decision shall become effective as the final order of the Department.
                (c) In the case of a certificate application that has been processed under § 302.210(a)(1) or (5), the Department will issue its final order within one hundred eighty (180) days after the order establishing further procedures. If an applicant has failed to meet the procedural schedule established by the Department, the DOT decisionmaker may, by notice, extend the due date for a final decision for a period equal to the period of delay caused by the applicant.

            Subpart C—Rules Applicable to Exemption and Certain Other Proceedings

              § 302.301
              Applicability.
              (a) This subpart sets forth the specific rules applicable to proceedings for exemptions under sections 40109 and 41714 of 49 U.S.C. Subtitle VII, including the granting of emergency exemptions, as well as applications for frequency allocations and other limited authority under international agreements. Except as modified by this subpart, the provisions of subpart A of this part apply.
              (b) Proceedings for the issuance of exemptions by regulation are subject to the provisions governing rulemaking.

              § 302.302
              Filing of applications.
              (a) Except as provided in paragraphs (b) and (c) of this section, applications for exemption shall conform to the requirements of §§ 302.3 and 302.4.
              (b) Applications for exemption from section 41101 or 41301 of 49 U.S.C. Subtitle VII (including those that incorporate an exemption from section 41504) that involve ten (10) or fewer flights may be submitted to the U.S. Air Carrier Licensing Division or the Foreign Air Carrier Licensing Division (as appropriate), Office of International Aviation, on OST Form 4536. However, that form may not be used for:
              (1) Applications filed under section 40109(g) of 49 U.S.C. Subtitle VII;
              (2) Applications by persons who do not have either:
              (i) An effective air carrier certificate or foreign air carrier permit from the Department, or
              (ii) A properly completed application for such a certificate or permit, and an effective exemption from the Department for operations similar to those proposed;

              (3) Successive applications for the same or similar authority that would total more than ten (10) flights; or

              (4) Any other application for which the Department decides the requirements of §§ 302.3 and 302.4 are more appropriate. Upon a showing of good cause, an application may be filed by cablegram, telegram, facsimile, electronic mail (when available), or telephone; all such telephonic requests must be confirmed by written application within three (3) business days of the original request.
              (c) Applications for exemption from Chapter 415 of 49 U.S.C. Subtitle VII, from tariffs (except for waivers filed under subpart Q of part 221 of this chapter), or from Department regulations concerning tariffs may be submitted by letter. Three copies of such applications shall be sent to Department of Transportation Dockets. Upon a showing of good cause, the application may also be filed by cablegram, telegram, facsimile, electronic mail (when available), or telephone; all such requests must be confirmed by written application within three (3) business days of the original request.
              (d) Applications filed under paragraph (a) of this section shall be docketed and any additional documents filed shall be identified by the assigned docket number.
              (e) Applications filed under paragraph (b) or (c) of this section will normally not be docketed. The Department may require such applications to be docketed if appropriate. The Department will publish a notice of such applications in its Weekly List of Applications Filed.

              § 302.303
              Contents of applications.
              (a) Title. An application filed under § 302.302(a) shall be entitled “Application for . . .” (followed by the type of authority request, e.g., exemption, frequency allocation) and, where applicable, shall state if the application involves renewal and/or amendment of existing exemption authority.
              (b) Factual statement. Each application shall state:
              (1) The section(s) of 49 U.S.C. Subtitle VII or the rule, regulation, term, condition, or limitation from which the exemption is requested;
              (2) The proposed effective date and duration of the exemption;
              (3) A description of how the applicant proposes to exercise the authority (for example, applications for exemption from section 41101 or 41301 of 49 U.S.C. Subtitle VII should include at least: places to be served; equipment types, capacity and source; type and frequency or service; and other operations that the proposed service will connect with or support); and
              (4) Any other facts the applicant relies upon to establish that the proposed service will be consistent with the public interest.
              (c) Supporting evidence. (1) Each application shall be accompanied by:
              (i) A statement of economic data, or other matters or information that the applicant desires the Department to officially notice;
              (ii) Affidavits, or statements under penalty of 18 U.S.C. 1001, establishing any other facts the applicant wants the Department to rely upon; and
              (iii) Information showing the applicant is qualified to perform the proposed services.
              (2) In addition to the information required by paragraph (c)(1) of this section, an application for exemption from section 41101 or 41301 of 49 U.S.C. Subtitle VII (except exemptions under section 40109(g)) shall state whether the authority sought is governed by a bilateral agreement or by principles of comity and reciprocity. Applications by foreign carriers shall state whether the applicant's homeland government grants U.S. carriers authority similar to that requested. If so, the application shall state whether the fact of reciprocity has been established by the Department and cite the pertinent finding. If the fact of reciprocity has not been established by the Department, the application shall include documentation to establish such reciprocity.
              (d) Emergency cabotage. Applications under section 40109(g) of 49 U.S.C. Subtitle VII shall, in addition to the information required in paragraphs (b) and (c) of this section, contain evidence showing that:

              (1) Because of an emergency created by unusual circumstances not arising in the normal course of business, traffic in the markets requested cannot be accommodated by air carriers holding certificates under section 41102 of 49 U.S.C. Subtitle VII;
              (2) All possible efforts have been made to accommodate the traffic by using the resources of such air carriers (including, for example, the use of foreign aircraft, or sections of foreign aircraft, under lease or charter to such air carriers, and the use of such air carriers' reservation systems to the extent practicable);
              (3) The authority requested is necessary to avoid unreasonable hardship for the traffic in the market that cannot be accommodated by air carriers; and
              (4) In any case where an inability to accommodate traffic in a market results from a labor dispute, the grant of the requested exemption will not result in an unreasonable advantage to any party in the dispute.
              (e) Renewal applications. An application requesting renewal of an exemption or other limited authority under this subpart that is intended to invoke the automatic extension provisions of 5 U.S.C. 558(c) shall comply with, and contain the statements and information required by part 377 of this chapter.
              (f) Record of service. An application shall list the parties served as required by § 302.304.

              § 302.304
              Service of documents.
              (a) General requirements. (1) An application for exemption and responsive pleadings shall be served as provided by § 302.7.
              (2) Applicants shall serve on the persons listed in paragraph (b) of this section a complete copy of the application and any supporting documents. Responsive pleadings shall be served on the same persons as applications.
              (b) Persons to be served. (1) Applicants for scheduled interstate air transportation authority shall serve:

              (i) All U.S. air carriers (including commuter air carriers) that publish schedules in the Official Airline Guide or the Air Cargo Guide for the city-pair market(s) specified in the application,
              (ii) The airport authority of each U.S. airport that the applicant proposes to serve, and
              (iii) Any other person who has filed a pleading in a related proceeding under section 41102, 41302, or 40109 of 49 U.S.C. Subtitle VII.
              (2) Applicants for scheduled foreign air transportation authority shall serve:

              (i) All U.S. air carriers (including commuter air carriers) that publish schedules in the Official Airline Guide or in the Air Cargo Guide for the country-pair market(s) specified in the application,
              (ii)The airport authority of each U.S. airport that the applicant proposes to serve, and
              (iii) Any other person who has filed a pleading in a related proceeding under section 41102, 41302, or 40109 of 49 U.S.C. Subtitle VII.
              (3) Applicants for charter-only or nonscheduled-only authority shall serve any person who has filed a pleading in a related proceeding under section 41102, 41302, or 40109 of 49 U.S.C. Subtitle VII. However, applicants that file fewer than sixteen (16) days prior to the proposed start of service must also serve:
              (i) Those U.S. carriers (including commuter carriers) that are known to be operating in the general market(s) at issue and
              (ii) Those persons who may be presumed to have an interest in the subject matter of the application.
              (4) Applicants for slot exemptions under section 41714 of 49 U.S.C. Subtitle VII shall serve:

              (i) All U.S. air carriers (including commuter air carriers) that publish schedules in the Official Airline Guide or the Air Cargo Guide for the airport(s) specified in the application,
              (ii) The manager of each of the affected airports,
              (iii) The mayor of the city that each affected airport serves,
              (iv) The Governor of the State in which each affected airport is located, and
              (v) Any other person who has filed a pleading in a related proceeding under section 41714 of 49 U.S.C. Subtitle VII.
              (5) Additional service. The Department may, in its discretion, order additional service upon any other person.
              [Doc. No. OST-97-2090, 65 FR 6457, Feb. 9, 2000; 65 FR 7418, Feb. 14, 2000]

              § 302.305
              Posting of applications.
              A copy of every docketed application for exemption shall be posted in Department of Transportation Dockets and listed in the Department's Weekly List of Applications Filed. A copy of every undocketed application shall be posted in the Licensing Division's lobby of the Office of International Aviation.

              § 302.306
              Dismissal or rejection of incomplete applications.
              (a) Dismissal or rejection. The Department may dismiss or reject any application for exemption that does not comply with the requirements of this part.
              (b) Additional data. The Department may require the filing of additional data with respect to any application for exemption, answer, or reply.

              § 302.307
              Answers to applications.
              Within fifteen (15) days after the filing of an application for exemption, any person may file an answer in support of or in opposition to the grant of a requested exemption. Such answer shall set forth in detail the reasons why the exemption should be granted or denied. An answer shall include a statement of economic data or other matters the Department is requested to officially notice, and shall be accompanied by affidavits establishing any other facts relied upon.

              § 302.308
              Replies to answers.
              Within seven (7) days after the last day for filing an answer, any interested party may file a reply to one or more answers.

              § 302.309
              Requests for hearing.
              The Department will not normally conduct oral evidentiary hearings concerning applications for exemption. However, the Department may, in its discretion, order such a hearing on an application. Any applicant, or any person opposing an application, may request an oral evidentiary hearing. Such a request shall set forth in detail the reasons why the filing of affidavits or other written evidence will not permit the fair and expeditious disposition of the application. A request relying on factual assertions shall be accompanied by affidavits establishing such facts. If the Department orders an oral evidentiary hearing, the procedures in subpart A of this part shall apply.

              § 302.310
              Exemptions on the Department's initiative.
              The Department may grant exemptions on its own initiative when it finds that such exemptions are required by the circumstances and consistent with the public interest.

              § 302.311
              Emergency exemptions.
              (a) Shortened procedures. When required by the circumstances and consistent with the public interest, the Department may take action, without notice, on exemption applications prior to the expiration of the normal period for filing answers and replies. When required in a particular proceeding, the Department may specify a lesser time for the filing of answers and replies, and notify interested persons of this time period.
              (b)(1) Applications. Applications for emergency exemption need not conform to the requirements of this subpart or of subpart A of this part (except as provided in this section and in § 302.303(d) concerning emergency cabotage requests). However, an application for emergency exemption must normally be in writing and must state in detail the facts and evidence that support the application, the grounds for the exemption, and the public interest basis for the authority sought. In addition, the application shall state specific reasons that justify departure from the normal exemption application procedures. The application shall also identify those persons notified as required by paragraph (c) of this section. The Department may require additional information from any applicant before acting on an application.
              (2) Oral requests. The Department will consider oral requests, including telephone requests, for emergency exemption authority under this section in circumstances that do not permit the immediate filing of a written application. All oral requests must, however, provide the information required in paragraph (b)(1) of this section, except that actual evidence in support of the application need not be tendered when the request is made. All oral requests must be confirmed by written application, together with all supporting evidence, within three (3) business days of the original request.
              (c) Notice. Except when the Department decides that no notice need be given, applicants for emergency exemption shall notify, as appropriate, those persons specified in § 302.304(b) of this subpart. Such notification shall be made in the same manner, contain the same information, and be dispatched at the same time, as the application made to the Department.

            Subpart D—Rules Applicable to Enforcement Proceedings

              § 302.401
              Applicability.
              This subpart contains the specific rules that apply to Department proceedings to enforce the provisions of the Statute, and the rules, regulations, orders and other requirements issued by the Department, as well as the filing of informal and formal complaints. Except as modified by this subpart, the provisions of subpart A of this part apply.
              [Docket No. OST-97-2090, 65 FR 6457, Feb. 9, 2000, as amended at 84 FR 15936, Apr. 16, 2019]

              § 302.402
              Definitions.

                Assistant General Counsel, when used in this subpart, refers to the Assistant General Counsel for Aviation Enforcement and Proceedings.

                Complainant refers to the person filing a complaint.

                Parties, when used in this subpart, include the Office of the Assistant General Counsel, the respondent, the complainant, and any other person permitted to intervene under § 302.20.

                Respondent refers to the person against whom a complaint is filed.

              § 302.403
              Informal complaints.
              Any person may submit in writing to the Assistant General Counsel an informal complaint with respect to anything done or omitted to be done by any person in contravention of any provision of 49 U.S.C. Subtitle VII or any requirement established thereunder. Such informal complaints need not otherwise comply with the provisions of this part. Matters so presented may, if their nature warrants, be handled by correspondence or conference with the appropriate persons. Any matter not disposed of informally may be made the subject of an enforcement proceeding pursuant to this subpart. The filing of an informal complaint shall not bar the subsequent filing of a formal complaint.

              § 302.404
              Formal complaints.
              (a) Filing. Any person may make a formal complaint to the Assistant General Counsel about any violation of the economic regulatory provisions of 49 U.S.C. Subtitle VII or of the Department's rules, regulations, orders, or other requirements. Every formal complaint shall conform to the requirements of §§ 302.3 and 302.4, concerning the form and filing of documents. The filing of a complaint shall result in the institution of an enforcement proceeding only if the Assistant General Counsel issues a notice instituting such a proceeding as to all or part of the complaint under § 302.406(a) or the General Counsel does so under § 302.406(c).
              (b) Amendment. A formal complaint may be amended at any time before service of an answer to the complaint. After service of an answer but before institution of an enforcement proceeding, the complaint may be amended with the permission of the Assistant General Counsel. After institution of an enforcement proceeding, the complaint may be amended only on grant of a motion filed under § 302.11.
              (c) Insufficiency of formal complaint. In any case where the Assistant General Counsel is of the opinion that a complaint does not sufficiently set forth matters required by any applicable rule, regulation or order of the Department, or is otherwise insufficient, he or she may advise the complainant of the deficiency and require that any additional information be supplied by amendment.
              (d) Joinder of complaints or complainants. Two or more grounds of complaints involving substantially the same purposes, subject or state of facts may be included in one complaint even though they involve more than one respondent. Two or more complainants may join in one complaint if their respective causes of complaint are against the same party or parties and involve substantially the same purposes, subject or state of facts. The Assistant General Counsel may separate or split complaints if he or she finds that the joinder of complaints, complainants, or respondents will not be conducive to the proper dispatch of the Department's business or the ends of justice.
              (e) Service. A formal complaint, and any amendments thereto, shall be served by the person filing such documents upon each party complained of, upon the General Counsel, and upon the Assistant General Counsel.
              [Docket No. OST-97-2090, 65 FR 6457, Feb. 9, 2000, as amended at 84 FR 15936, Apr. 16, 2019]

              § 302.405
              Responsive documents.
              (a) Answers. Within fifteen (15) days after the date of service of a formal complaint, each respondent shall file an answer in conformance with and subject to the requirements of § 302.408(b). Extensions of time for filing an answer may be granted by the Assistant General Counsel for good cause shown.
              (b) Offers to satisfy. A respondent in a formal complaint may offer to satisfy the complaint through submission of facts, offer of settlement or proposal of adjustment. Such offer shall be in writing and shall be served, within fifteen (15) days after service of the complaint, upon the same persons and in the same manner as an answer. The submittal of an offer to satisfy the complaint shall not excuse the filing of an answer.
              (c) Motions to dismiss. Motions to dismiss a formal complaint shall not be filed prior to the filing of a notice instituting an enforcement proceeding with respect to such complaint or a portion thereof.

              § 302.406
              Procedure for responding to formal complaints.
              (a) Within a reasonable time after an answer to a formal complaint is filed, the Assistant General Counsel shall either:
              (1) Issue a notice instituting a formal enforcement proceeding in accordance with § 302.407 or
              (2) Issue an order dismissing the complaint in whole or in part, stating the reasons for such dismissal.
              (b) An order dismissing a complaint issued pursuant to paragraph (a)(2) of this section shall become effective as a final order of the Department thirty (30) days after service thereof.
              (c) Whenever the Assistant General Counsel has failed to act on a formal complaint within a reasonable time after an answer is due, the following motions may be addressed to the General Counsel:
              (1) By the complainant to institute an enforcement proceeding by docketing the complaint upon a showing that it is in the public interest to do so; and
              (2) By the respondent to dismiss the complaint upon a showing that it is in the public interest to do so.
              (d) The General Counsel may grant, deny, or defer any of the motions, in whole or in part, and take appropriate action to carry out his or her decision.
              [Docket No. OST-97-2090, 65 FR 6457, Feb. 9, 2000, as amended at 84 FR 15936, Apr. 16, 2019]

              § 302.407
              Commencement of enforcement proceeding.
              (a) Whenever in the opinion of the Assistant General Counsel there are reasonable grounds to believe that any economic regulatory provision of 49 U.S.C. Subtitle VII, or any rule, regulation, order, limitation, condition, or other requirement established pursuant thereto, has been or is being violated, that efforts to satisfy a complaint as provided by § 302.405 have failed, and that the investigation of any or all of the alleged violations is in the public interest, the Assistant General Counsel may issue a notice instituting an enforcement proceeding before an administrative law judge.

              (b) The notice shall incorporate by reference the formal complaint submitted pursuant to § 302.404 or shall be accompanied by a complaint by an attorney from the Office of the Assistant General Counsel. The notice and accompanying complaint, if any, shall be formally served upon each respondent and each complainant.

              (c) The proceedings thus instituted shall be processed in regular course in accordance with this part. However, nothing in this part shall be construed to limit the authority of the Department to institute or conduct any investigation or inquiry within its jurisdiction in any other manner or according to any other procedures that it may deem necessary or proper.
              (d) Whenever the Assistant General Counsel seeks an assessment of civil penalties in an enforcement proceeding, he or she shall serve on all parties to the proceeding a notice of the violations alleged and the amount of penalties for which the respondent may be liable. The notice may be included in the notice instituting a formal enforcement proceeding or in a separate document.
              (e) In any proceeding in which civil penalties are sought, any decisions issued by the Department shall state the amount of any civil penalties assessed upon a finding of violation, and the time and manner in which payment shall be made to the United States.
              [Docket No. OST-97-2090, 65 FR 6457, Feb. 9, 2000, as amended at 84 FR 15936, Apr. 16, 2019]

              § 302.408
              Answers and replies.
              (a) Within fifteen (15) days after the date of service of a notice issued pursuant to § 302.407, the respondent shall file an answer to the complaint attached thereto or incorporated therein unless an answer has already been filed in accordance with § 302.405. Any requests for extension of time for filing of an answer to such complaint shall be filed in accordance with § 302.11.
              (b) All answers shall be served in accordance with § 302.7 and shall fully and completely advise the parties and the Department as to the nature of the defense and shall admit or deny specifically and in detail each allegation of the complaint unless the respondent is without knowledge, in which case, his or her answer shall so state and the statement shall operate as a denial. Allegations of fact not denied or controverted shall be deemed admitted. Matters alleged as affirmative defenses shall be separately stated and numbered and shall, in the absence of a reply, be deemed to be controverted. Any answer to a complaint, or response to a notice, proposing the assessment of civil penalties shall specifically present any matters that the respondent intends to rely upon in opposition to, or in mitigation of, such civil penalties.
              (c) The DOT decisionmaker or the administrative law judge may, in his or her discretion, require or permit the filing of a reply in appropriate cases; otherwise, no reply may be filed.

              § 302.409
              Default.

              Failure of a respondent to file and serve an answer within the time and in the manner prescribed by § 302.408 shall be deemed to authorize the DOT decisionmaker or administrative law judge, as a matter of discretion, to find the facts alleged in the complaint incorporated in or accompanying the notice instituting a formal enforcement proceeding to be true and to enter such orders as may be appropriate without notice or hearing, or, as a matter of discretion, to proceed to take proof, without notice, of the allegations or charges set forth in the complaint or order; Provided, that the DOT decisionmaker or administrative law judge may permit late filing of an answer for good cause shown.

              § 302.410
              Consolidation of proceedings.
              The DOT decisionmaker or Chief Administrative Law Judge may, upon his or her own initiative, or upon motion of any party, consolidate for hearing or for other purposes, or may contemporaneously consider, two or more enforcement proceedings that involve substantially the same parties or issues that are the same or closely related, if he or she finds that such consolidation or contemporaneous hearing will be conducive to the dispatch of business and to the ends of justice and will not unduly delay the proceedings.

              § 302.411
              Motions to dismiss and for summary judgment.

              (a) At any time after an answer has been filed, any party may file with the DOT decisionmaker or the administrative law judge a motion to dismiss or a motion for summary judgment, including supporting affidavits. The procedure on such motions shall be in accordance with the Federal Rules of Civil Procedure (28 U.S.C.), particularly Rules 6(d), 7(b), 12, and 56, except that answers and supporting papers to a motion to dismiss or for summary judgment shall be filed within seven (7) days after service of the motion.
              (b) Parties may petition the DOT decisionmaker to review any action by the administrative law judge granting summary judgment or dismissing an enforcement proceeding under the procedure established for review of an initial decision in § 302.32.

              § 302.412
              Admissions as to facts and documents.
              (a) At any time after an answer has been filed, any party may file with the DOT decisionmaker or administrative law judge and serve upon the opposing side a written request for the admission of the genuineness and authenticity of any relevant documents described in and exhibited with the request or for the admission of the truth of any relevant matters of fact stated in the request with respect to such documents.
              (b) Each of the matters of which an admission is requested shall be deemed admitted unless within a period designated in the request, not less than ten (10) days after service thereof, or within such further time as the DOT decisionmaker or the administrative law judge may allow upon motion and notice, the party to whom the request is directed serves upon the requesting party a sworn statement either denying specifically the matters of which an admission is requested or setting forth in detail the reasons why he or she cannot truthfully either admit or deny such matters.
              (c) Service of such request and answering statement shall be made as provided in § 302.7. Any admission made by a party pursuant to such request is only for the purposes of the pending proceeding, or any proceeding or action instituted for the enforcement of any order entered therein, and shall not constitute an admission by him or her for any other purpose or be used against him or her in any other proceeding or action.

              § 302.413
              Evidence of previous violations.
              Evidence of previous violations by any person or of any provision of 49 U.S.C. Subtitle VII or any requirement thereunder found by the Department or a court in any other proceeding or criminal or civil action may, if relevant and material, be admitted in any enforcement proceeding involving such person.

              § 302.414
              Prehearing conference.
              A prehearing conference may be held in an enforcement proceeding whenever the administrative law judge believes that the fair and expeditious disposition of the proceeding requires one. If a prehearing conference is held, it shall be conducted in accordance with § 302.22.

              § 302.415
              Hearing.
              After the issues have been formulated, whether by the pleadings or otherwise, the administrative law judge shall give the parties reasonable written notice of the time and place of the hearings. Except as may be modified by the provisions of this subpart, the procedures in §§ 302.17 to 302.38 governing the conduct of oral evidentiary hearings will apply.

              § 302.416
              Appearances by persons not parties.
              With consent of the administrative law judge, appearances may be entered without request for or grant of permission to intervene by interested persons who are not parties to the proceeding. Such persons may, with the consent of the administrative law judge, cross-examine a particular witness or suggest to any party or counsel therefor questions or interrogations to be asked witnesses called by any party, but may not otherwise examine witnesses and may not introduce evidence or otherwise participate in the proceeding. However, such persons may present to both the administrative law judge and the DOT decisionmaker an oral or written statement of their position on the issues involved in the proceeding.

              § 302.417
              Settlement of proceedings.

              (a) The General Counsel and the respondent may agree to settle all or some of the issues in an enforcement proceeding at any time before a final decision is issued by the DOT decisionmaker. The General Counsel shall serve a copy of any proposed settlement on each party and shall submit the proposed settlement to the administrative law judge for approval. The submission of a proposed settlement shall not automatically delay the proceeding.
              (b) Any party to the proceeding may submit written comments supporting or opposing the proposed settlement within ten (10) days from the date of service.
              (c) The administrative law judge shall approve the proposed settlement, as submitted, if it appears to be in the public interest, or otherwise shall disapprove it.
              (d) Information relating to settlement offers and negotiations will be withheld from public disclosure if the General Counsel determines that disclosure would interfere with the likelihood of settlement of an enforcement proceeding.

              § 302.418
              Motions for immediate suspension of operating authority pendente lite.
              All motions for the suspension of the economic operating authority of an air carrier during the pendency of proceedings to revoke such authority shall be filed with, and decided by, the DOT decisionmaker. Proceedings on the motion shall be in accordance with § 302.11. In addition, the DOT decisionmaker shall afford the parties an opportunity for oral argument on such motion.

              § 302.419
              Modification or dissolution of enforcement actions.
              Whenever any party to a proceeding, in which an order of the Department has been issued pursuant to section 46101 of 49 U.S.C. Subtitle VII or an injunction or other form of enforcement action has been issued by a court of competent jurisdiction pursuant to section 46106 of 49 U.S.C. Subtitle VII, believes that changed conditions of fact or law or the public interest require that said order or judicial action be modified or set aside, in whole or in part, such party may file with the Department a motion requesting that the Department take such administrative action or join in applying to the appropriate court for such judicial action, as the case may be. The motion shall state the changes desired and the changed circumstances warranting such action, and shall include the materials and argument in support thereof. The motion shall be served on each party to the proceeding in which the enforcement action was taken. Within thirty (30) days after the service of such motion, any party so served may file an answer thereto. The Department shall dispose of the motion by such procedure as it deems appropriate.

              § 302.420
              Saving clause.
              Repeal, revision or amendment of any of the economic regulatory provisions of 49 U.S.C. Subtitle VII or of the Department's rules, regulations, orders, or other requirements shall not affect any pending enforcement proceeding or any enforcement proceeding initiated thereafter with respect to causes arising or acts committed prior to said repeal, revision or amendment, unless the act of repeal, revision or amendment specifically so provides.

            Subpart E—Rules Applicable to Proceedings With Respect to Rates, Fares and Charges for Foreign Air Transportation

              § 302.501
              Applicability.
              This subpart sets forth the special rules applicable to proceedings with respect to rates, fares and charges in foreign air transportation under Chapter 415 of 49 U.S.C. Subtitle VII. Except as modified by this subpart, the provisions of subpart A apply.

              § 302.502
              Institution of proceedings.
              A proceeding to determine the lawfulness of rates, fares, or charges for the foreign air transportation of persons or property by aircraft, or the lawfulness of any classification, rule, regulation, or practice affecting such rates, fares or charges, may be instituted by the filing of a petition or complaint by any person, or by the issuance of an order by the Department.

              § 302.503
              Contents and service of petition or complaint.
              (a) If a petition or complaint is filed it shall state the reasons why the rates, fares, or charges, or the classification, rule, regulation, or practice complained of are unlawful and shall support such reasons with a full factual analysis.
              (b) A petition or complaint shall be served by the petitioner or complainant upon the air carrier against whose tariff provision the petition or complaint is filed.
              (c) Answers to complaints, other than those filed under § 302.506, shall be filed within seven (7) working days after the complaint is filed.

              § 302.504
              Dismissal of petition or complaint.
              If the Department is of the opinion that a petition or complaint does not state facts that warrant an investigation or action on its part, it may dismiss such petition or complaint without hearing.

              § 302.505
              Order of investigation.
              The Department, on its own initiative, or if it is of the opinion that the facts stated in a petition or complaint warrant it, may issue an order instituting an investigation of the lawfulness of any present or proposed rates, fares, or charges for the foreign air transportation of persons or property by aircraft or the lawfulness of any classification, rule, regulation, or practice affecting such rates, fares, or charges, and may assign the proceeding for hearing before an administrative law judge. If a hearing is held, except as modified by this subpart, the provisions of § 302.17 through § 302.38 of this part shall apply.

              § 302.506
              Complaints requesting suspension of tariffs; answers to such complaints.
              (a) Formal complaints seeking suspension of tariffs pursuant to section 41509 of 49 U.S.C. Subtitle VII shall fully identify the tariff and include reference to:
              (1) The issued or posting date,
              (2) The effective date,
              (3) The name of the publishing carrier or agent,
              (4) The Department number, and
              (5) Specific items or particular provisions protested or complained against. The complaint should indicate in what respect the tariff is considered to be unlawful, and state what complainant suggests by way of substitution.
              (b) A complaint requesting suspension of a tariff ordinarily will not be considered unless made in conformity with this section and filed no more than ten (10) days after the issued date contained within such tariff.
              (c) A complaint requesting suspension, pursuant to section 41509 of 49 U.S.C. Subtitle VII, of an existing tariff for foreign air transportation may be filed at any time. However, such a complaint must be accompanied by a statement setting forth compelling reasons for not having requested suspension within the time limitations provided in paragraph (b) of this section.
              (d) In an emergency satisfactorily shown by the complainant, and within the time limits herein provided, a complaint may be sent by facsimile, telegram, or electronic mail (when available) to the Department and to the carrier against whose tariff provision the complaint is made. Such complaint shall state the grounds relied upon, and must be confirmed in writing within three (3) business days and filed and served in accordance with this part.
              (e) Answers to complaints shall be filed within six (6) working days after the complaint is filed.

              § 302.507
              Computing time for filing complaints.
              In computing the time for filing formal complaints pursuant to § 302.506, with respect to tariffs that do not contain a posting date, the first day preceding the effective date of the tariff shall be the first day counted, and the last day so counted shall be the last day for filing unless such day is a Saturday, Sunday, or legal holiday for the Department, in which event the period for filing shall be extended to the next successive day that is not a Saturday, Sunday, or holiday. The computation of the time for filing complaints as to tariffs containing a posting date shall be governed by § 302.8.

            Subpart F—Rules Applicable to Proceedings Concerning Airport Fees

              § 302.601
              Applicability.
              (a) This subpart contains the specific rules that apply to a complaint filed by one or more air carriers or foreign air carriers (“carriers”), pursuant to 49 U.S.C. 47129(a), for a determination of the reasonableness of a fee increase or a newly established fee for aeronautical uses that is imposed upon the carrier by the owner or operator of an airport. This subpart also applies to requests by the owner or operator of an airport for such a determination. An airport owner or operator is considered to have imposed a fee on a carrier when it has taken all steps necessary under its procedures to establish the fee, whether or not the fee is being collected or carriers are currently required to pay it.
              (b) This subpart does not apply to—
              (1) A fee imposed pursuant to a written agreement with a carrier using the facilities of an airport;
              (2) A fee imposed pursuant to a financing agreement or covenant entered into prior to August 23, 1994, or
              (3) Any other existing fee not in dispute as of August 23, 1994.
              (c) Except as modified by this subpart, the provisions of subpart A of this part apply.

              § 302.602
              Complaint by a carrier; request for determination by an airport owner or operator.
              (a) Any carrier may file a complaint with the Secretary for a determination as to the reasonableness of any fee imposed on the carrier by the owner or operator of an airport. Any airport owner or operator may also request such a determination with respect to a fee it has imposed on one or more carriers. The complaint or request for determination shall conform to the requirements of this subpart and §§ 302.3 and 302.4 concerning the form and filing of documents.
              (b) If a carrier has previously filed a complaint with respect to the same airport fee or fees, any complaint by another carrier and any airport request for determination shall be filed no later than seven (7) calendar days following the initial complaint. In addition, all complaints or requests for determination must be filed on or before the sixtieth (60th) day after the carrier receives written notice of the imposition of the new fee or the imposition of the increase in the fee.
              (c) To ensure an orderly disposition of the matter, all complaints and any request for determination filed with respect to the same airport fee or fees will be considered in a consolidated proceeding, as provided in § 302.606.

              § 302.603
              Contents of complaint or request for determination.
              (a) The complaint or request for determination shall set forth the entire grounds for requesting a determination of the reasonableness of the airport fee. The complaint or request shall include a copy of the airport owner or operator's written notice to the carrier of the imposition of the fee, a statement of position with a brief, and all supporting testimony and exhibits on which the filing party intends to rely. In lieu of submitting duplicative exhibits or testimony, the filing party may incorporate by reference testimony and exhibits already filed in the same proceeding.
              (b) All exhibits and briefs prepared on electronic spreadsheet or word processing programs should be accompanied by standard-format electronic media containing those submissions. Parties should submit three copies the electronic media to Department of Transportation Dockets Operations Office: One copy for the docket, one copy for the Office of Hearings, and one copy for the Office of Aviation Analysis. Filers should ensure that files on the electronic media are unalterably locked.
              (c) When a carrier files a complaint, it must also certify:

              (1) That it has served on the airport owner or operator and all other carriers serving the airport the complaint, brief, and all supporting testimony and exhibits, and that those parties have received or will receive these documents no later than the date the complaint is filed. Such service shall be by hand, by electronic transmission, or by overnight express delivery. (Unless a carrier has informed the complaining carrier that a different person should be served, service may be made on the person responsible for communicating with the airport on behalf of the carrier about airport fees.);
              (2) That the carrier has previously attempted to resolve the dispute directly with the airport owner or operator;
              (3) That when there is information on which the carrier intends to rely that is not included with the brief, exhibits, or testimony, the information has been omitted because the airport owner or operator has not made that information available to the carrier. The certification shall specify the date and form of the carrier's request for information from the airport owner or operator; and
              (4) That any submission on computer diskette is a true copy of the data file used to prepare the printed versions of the exhibits or briefs.
              (d) When an airport owner or operator files a request for determination, it must also certify:
              (1) That it has served on all carriers serving the airport the request, brief, and all supporting testimony and exhibits, and that those parties have received or will receive these documents no later than the date the request is filed. Such service shall be in the same manner as provided in § 302.603(c)(1).
              (2) That the airport owner or operator has previously attempted to resolve the dispute directly with the carriers; and
              (3) That any submission on computer diskette is a true copy of the data file used to prepare the printed versions of the exhibits or briefs.
              [Docket No. OST-97-2090, 65 FR 6457, Feb. 9, 2000, as amended by Doc. No. DOT-OST-2014-0140, 84 FR 15936, Apr. 16, 2019]

              § 302.604
              Answers to a complaint or request for determination.
              (a)(1) When a carrier files a complaint under this subpart, the owner or operator of the airport and any other carrier serving the airport may file an answer to the complaint as provided in paragraphs (b) and (c) of this section.
              (2) When the owner or operator of an airport files a request for determination of the reasonableness of a fee it has imposed, any carrier serving the airport may file an answer to the request.
              (b) The answer to a complaint or request for determination shall set forth the answering party's entire response. When one or more additional complaints or a request for determination has been filed pursuant to § 302.602(b) with respect to the same airport's fee or fees, the answer shall set forth the answering party's entire response to all complaints and any such request for determination. The answer shall include a statement of position with a brief and any supporting testimony and exhibits on which the answering party intends to rely. In lieu of submitting duplicative exhibits or testimony, the answering party may incorporate by reference testimony and exhibits already filed in the same proceeding.
              (c) Answers to a complaint shall be filed no later than fourteen (14) calendar days after the filing date of the first complaint with respect to the fee or fees in dispute at a particular airport. Answers to a request for determination shall be filed no later than fourteen (14) calendar days after the filing date of the request.
              (d) All exhibits and briefs prepared on electronic spreadsheet or word processing programs should be accompanied by standard-format computer diskettes containing those submissions as provided in § 302.603(b).
              (e) The answering party must also certify that:
              (1) it has served the answer, brief, and all supporting testimony and exhibits by hand, by electronic transmission, or by overnight express delivery on the carrier filing the complaint or the airport owner or operator requesting the determination, and that those parties have received or will receive these documents no later than the date the answer is filed; and
              (2) that any submission on computer diskette is a true copy of the data file used to prepare the printed versions of the exhibits or briefs.

              § 302.605
              Replies.

              (a) The carrier submitting a complaint may file a reply to any or all of the answers to the complaint. The airport owner or operator submitting a request for determination may file a reply to any or all of the answers to the request for determination.
              (b) The reply shall be limited to new matters raised in the answers. It shall constitute the replying party's entire response to the answers. It shall be in the form of a reply brief and may include supporting testimony and exhibits responsive to new matters raised in the answers. In lieu of submitting duplicative exhibits or testimony, the replying party may incorporate by reference testimony and exhibits already filed in the same proceeding.
              (c) The reply shall be filed no later than two (2) calendar days after answers are filed.
              (d) All exhibits and briefs prepared on electronic spreadsheet or word processing programs should be accompanied by standard-format computer diskettes containing those submissions as provided in § 302.603(b).
              (e) The carrier or airport owner or operator submitting the reply must certify that it has served the reply and all supporting testimony and exhibits on the party or parties submitting the answer to which the reply is directed, and that those parties have received or will receive these documents no later than the date the reply is filed, and that any submission on computer diskette is a true copy of the data file used to prepare the printed versions of the exhibits or briefs.

              § 302.606
              Review of complaints or requests for determination.
              (a) Within thirty (30) days after a complaint or request for determination is filed under this subpart, the Secretary will determine whether the complaint or request meets the procedural requirements of this subpart and whether a significant dispute exists, and take appropriate action pursuant to paragraph (b), (c), or (d) of this section. When both a complaint and a request for determination have been filed with respect to the same airport fee or fees, the Secretary will issue a determination as to whether the complaint, the request, or both meet the procedural requirements of this subpart and whether a significant dispute exists within thirty (30) days after the complaint is filed.
              (b) If the Secretary determines that a significant dispute exists, he or she will issue an instituting order assigning the complaint or request for hearing before an administrative law judge. The instituting order will—
              (1) Establish the scope of the issues to be considered and the procedures to be employed;
              (2) Indicate the parties to participate in the hearing;
              (3) Consolidate into a single proceeding all complaints and any request for determination with respect to the fee or fees in dispute; and
              (4) Include any special provisions for exchange or disclosure of information by the parties.
              (c) If the Secretary determines that the complaint or request does not meet the procedural requirements of this subpart, the complaint or request for determination will be dismissed without prejudice to filing a new complaint. The order of the Secretary will set forth the terms and conditions under which a revised complaint or request may be filed.
              (d) If the Secretary finds that no significant dispute exists—
              (1) If the proceeding was instituted by a complaint, the Secretary will issue an order dismissing the complaint, which will contain a concise explanation of the reasons for the determination that the dispute is not significant.
              (2) If the proceeding was instituted by a request for determination, the Secretary will either issue a final order as provided in § 302.610 or set forth the schedule for any additional procedures required to complete the proceeding.

              § 302.607
              Decision by administrative law judge.
              The administrative law judge shall issue a decision recommending a disposition of a complaint or request for determination within sixty (60) days after the date of the instituting order, unless a shorter period is specified by the Secretary.

              § 302.608
              Petitions for discretionary review.

              (a) Within five (5) calendar days after service of a decision by an administrative law judge, any party may file with the Secretary a petition for discretionary review of the administrative law judge's decision.
              (b) Petitions for discretionary review shall comply with § 302.32(a). The petitioner must also certify that it has served the petition by hand, by electronic transmission, or by overnight express delivery on all parties to the proceeding and that those parties have received or will receive the petition no later than the date it is filed.
              (c) Any party may file an answer in support of or in opposition to any petition for discretionary review. The answer shall be filed within four (4) calendar days after service of the petition for discretionary review. The answer shall comply with the page limits specified in § 302.32(b).

              § 302.609
              Completion of proceedings.
              (a) When a complaint or a request for determination with respect to an airport fee or fees has been filed under this subpart and has not been dismissed, the Secretary will issue a determination as to whether the fee is reasonable within 120 days after the complaint or request is filed.
              (b) When both a complaint and a request for determination have been filed with respect to the same airport fee or fees and have not been dismissed, the Secretary will issue a determination as to whether the fee is reasonable within 120 days after the complaint is filed.

              § 302.610
              Final order.
              (a) When a complaint or request for determination stands submitted to the Secretary for final decision on the merits, he or she may dispose of the issues presented by entering an appropriate order, which will include a statement of the reasons for his or her findings and conclusions. Such an order shall be deemed a final order of the Secretary.
              (b) The final order of the Secretary shall include, where necessary, directions regarding an appropriate refund or credit of the fee increase or newly established fee which is the subject of the complaint or request for determination.
              (c) If the Secretary has not issued a final order within 120 days after the filing of a complaint by an air carrier or foreign air carrier, the decision of the administrative law judge shall be deemed to be the final order of the Secretary.

            Subpart G—Rules Applicable to Mail Rate Proceedings and Mail Contracts

              § 302.701
              Applicability.
              (a) This subpart sets forth the special rules applicable to proceedings for the establishment of mail rates by the Department for foreign air transportation and air transportation between points in Alaska, and certain contractual arrangements between the U.S. Postal Service and certificated air carriers for the carriage of mail in foreign air transportation entered into pursuant to 39 U.S.C. 5402(a), 84 Stat. 772.
              (b) Such contracts must be for the transportation of at least 750 pounds of mail per flight, and no more than five (5) percent, based on weight, of the international mail transported under any such contract may consist of letter mail.

              Final Mail Rate Proceedings

                § 302.702
                Institution of proceedings.
                (a) Proceedings for the determination of rates of compensation for the transportation of mail may be commenced by the filing of a petition by an air carrier whose rate is to be fixed, or the U.S. Postal Service, or upon the issuance of an order by the DOT decisionmaker.
                (b) The petition shall set forth the rate or rates sought to be established, a statement that they are believed to be fair and reasonable, the reasons supporting the request for a change in rates, and a detailed economic justification sufficient to establish the reasonableness of the rate or rates proposed.
                (c) In any case where an air carrier is operating under a final mail rate uniformly applicable to an entire rate-making unit as established by the DOT decisionmaker, a petition must clearly and unequivocally challenge the rate for such entire rate-making unit and not only a part of such unit.

                (d) All petitions, amended petitions, and documents relating thereto shall be served upon the U.S. Postal Service by sending a copy to the Assistant General Counsel, Transportation Division, Washington, DC 20260-1124, by registered or certified mail, postpaid, prior to the filing thereof with the Department. Proof of service on the U.S. Postal Service shall consist of a statement in the document that the person filing it has served a copy as required by this section.
                (e) Answers to petitions shall be filed within twenty (20) days after service of the petition.

                § 302.703
                Order to show cause or instituting a hearing.
                Whether the proceeding is commenced by the filing of a petition or upon the Department's own initiative, the DOT decisionmaker may issue an order directing the respondent to show cause why it should not adopt such findings and conclusions and such final rates as may be specified in the order to show cause, or may issue an order setting the matter for hearing before an administrative law judge.

                § 302.704
                Objections and answers to order to show cause.
                (a) Where an order to show cause is issued, any person having objections to the rates specified in such order shall file with the DOT decisionmaker an answer within forty-five (45) days after the date of service of such order or within such other period as the order may specify.
                (b) An answer to an order to show cause shall contain specific objections, and shall set forth the findings and conclusions, the rates, and the supporting exhibits that would be substituted for the corresponding items in the findings and conclusions of the show cause order, if such objections were found valid.
                (c) An answer filed by a person who is neither a party nor a person ultimately permitted to intervene in an oral evidentiary hearing if such proceeding is established shall be treated as a memorandum filed under § 302.706.

                § 302.705
                Further procedures.
                (a) If no answer is filed within the designated time, or if a timely filed answer raises no material issue of fact, the DOT decisionmaker may, upon the basis of the record in the proceeding, enter a final order fixing the rate or rates.
                (b) If an answer raising a material issue of fact is filed within the time designated in the Department's order, the DOT decisionmaker may then issue an order authorizing additional pleadings and/or establishing further procedural steps, including setting the matter for oral evidentiary hearing before an administrative law judge.

                § 302.706
                Hearing.
                (a) If a hearing is ordered under § 302.705, the issues at such hearing shall be formulated in accordance with the instituting order, except that at a prehearing conference, the administrative law judge may permit the parties to raise such additional issues as he or she deems necessary to make a full determination of a fair and reasonable rate.
                (b)(1) The parties to the proceeding shall be the air carrier or carriers for whom rates are to be fixed, the U.S. Postal Service, the Office of the Assistant General Counsel for Aviation Enforcement and Proceedings and any other person whom the DOT decisionmaker or administrative law judge permits to intervene in accordance with § 302.20.
                (2) In addition to participation in hearings in accordance with § 302.19, persons other than parties may, within the time fixed for filing an answer to an order to show cause as provided in § 302.704, submit a memorandum of opposition to, or in support of, the position taken in the petition or order. Such memorandum shall not be received as evidence in the proceeding.
                (c) All direct evidence shall be in writing and shall be filed in exhibit form within the times specified by the DOT decisionmaker or by the administrative law judge.
                (d) Except as modified by this subpart, the provisions of §§ 302.17 through 302.38 of this part shall apply.

              Provision for Temporary Rate

                § 302.707
                Procedure for fixing temporary mail rates.

                At any time during the pendency of a proceeding for the determination of final mail rates, the DOT decisionmaker, upon his or her own initiative, or on petition by the air carrier whose rates are in issue or by the U.S. Postal Service, may fix temporary rates of compensation for the transportation of mail subject to downward or upward adjustment upon the determination of final mail rates.

              Informal Mail Rate Conference Procedure

                § 302.708
                Invocation of procedure.
                (a) Conferences between DOT employees, representatives of air carriers, the U.S. Postal Service and other interested persons may be called by DOT employees for the purpose of considering and clarifying issues and factual material in pending proceedings for the establishment of rates for the transportation of mail.
                (b) At the commencement of an informal mail rate conference pursuant to this section, the authorized DOT employees conducting such conference shall issue to each person present at such conference a written statement to the effect that such conference is being conducted pursuant to this section and stating the time of commencement of such conference; and at the termination of such conference the DOT employees conducting such conference shall note in writing on such statement the time of termination of such conference.

                § 302.709
                Scope of conferences.
                The mail rate conferences shall be limited to the discussion of, and possible agreement on, particular issues and related factual material in accordance with sound rate-making principles. The duties and powers of DOT employees in rate conferences essentially will not be different, therefore, from the duties and powers they have in the processing of rate cases not involving a rate conference. The employees' function in both instances is to present clearly to the DOT decisionmaker the issues and the related material facts, together with recommendations. The DOT decisionmaker will make an independent determination of the soundness of the employees's analyses and recommendations.

                § 302.710
                Participants in conferences.
                The persons entitled to be present in mail rate conferences will be the representatives of the carrier whose rates are in issue, the staff of the U.S. Postal Service, and the authorized DOT employees. No other person will attend unless the DOT employees deem his or her presence necessary in the interest of one or more purposes to be accomplished, and in such case his or her participation will be limited to such specific purposes. No person, however, shall have the duty to attend merely by reason of invitation by the authorized DOT employees.

                § 302.711
                Conditions upon participation.
                (a) Nondisclosure of information. As a condition to participation, every participant, during the period of the conference and for ninety (90) days after its termination, or until the Department takes public action with respect to the facts and issues covered in the conference, whichever is earlier:
                (1) Shall, except for necessary disclosures in the course of employment in connection with conference business, hold the information obtained in conference in absolute confidence and trust;
                (2) Shall not deal, directly or indirectly, for the account of himself or herself, his or her immediate family, members of his or her firm or company, or as a trustee, in securities of the air carrier involved in the rate conference except that under exceptional circumstances special permission may be obtained in advance from the DOT decisionmaker; and

                (3) Shall adopt effective controls for the confidential handling of such information and shall instruct personnel under his or her supervision, who by reason of their employment come into possession of information obtained at the conference, that such information is confidential and must not be disclosed to anyone except to the extent absolutely necessary in the course of employment, and must not be misused. (The term “information”, as used in this section, shall refer only to information obtained at the conference regarding the future course of action or position of the Department or its employees with respect to the facts or issues discussed at the conference.)
                (b) Signed statement required. Every representative of an air carrier actually present at any conference shall sign a statement that he or she has read this entire instruction and promises to abide by it and advise any other participant to whom he or she discloses any confidential information of the restrictions imposed above. Every representative of the U.S. Postal Service actually present at any conference shall, on his or her own behalf, sign a statement to the same effect.
                (c) Presumption of having conference information. A director of any air carrier that has had a representative at the conference, who deals either directly or indirectly for himself or herself, his or her immediate family, members of his or her firm or company, or as a trustee, in securities of the air carrier involved in the conference, during the restricted period set forth above, shall be presumed to have come into possession of information obtained at the conference knowing that such information was subject to the restrictions imposed above; but such presumption can be rebutted.
                (d) Compliance report required. Within ten (10) days after the expiration of the time specified for keeping conference matters confidential, every participant, as defined in paragraph (e) of this section, shall file a verified compliance report with Department of Transportation Dockets stating that he or she has complied in every respect with the conditions of this section, or if he or she has not so complied, stating in detail in what respects he or she has failed to comply.
                (e) Persons subject to the provisions of this section. For the purposes of this section, participants shall include:
                (1) Any representative of any air carrier and any representative of the U.S. Postal Service actually present at the conference;
                (2) The directors and the officers of any air carrier that had a representative at the conference;
                (3) The members of any firm of attorneys or consultants that had a representative at the conference; and
                (4) The members of the U.S. Postal Service staff who come into possession of information obtained at the conference, knowing that such information is subject to the restrictions imposed in this section.

                § 302.712
                Information to be requested from an air carrier.
                When an air carrier is requested to submit detailed estimates as to traffic, revenues and expenses by appropriate periods and the investment that will be required to perform the operations for a future period, full and adequate support shall be presented for all estimates, particularly where such estimates deviate materially from the air carrier's experience. With respect to the rate for a past period, essentially the same procedure shall be followed. Other information or data likewise may be requested by the DOT employees. All data submitted by the air carrier shall be certified by a responsible officer.

                § 302.713
                DOT analysis of data for submission of answers thereto.
                After a careful analysis of these data, the DOT employees will, in most cases, send the air carrier a statement of exceptions showing areas of differences. Where practicable, the air carrier may submit an answer to these exceptions. Conferences will then be scheduled to resolve the issues and facts in accordance with sound ratemaking principles.

                § 302.714
                Availability of data to the U.S. Postal Service.

                The representatives of the U.S. Postal Service shall have access to all conference data and, insofar as practicable, shall be furnished copies of all pertinent data prepared by the DOT employees and the air carrier, and a reasonable time shall be allowed to review the facts and issues and to make any presentation deemed necessary; Provided, That in cases other than those involving an issue as to the service mail rates payable by the U.S. Postal Service pursuant to section 41901 of 49 U.S.C. Subtitle VII, representatives of the U.S. Postal Service shall be furnished with copies of data under this provision only upon their written request.

                § 302.715
                Post-conference procedure.
                No briefs, argument, or any formal steps will be entertained by the DOT decisionmaker after the rate conferences. The form, content and time of the staff's presentation to the DOT decisionmaker are entirely matters of internal procedure. Any party to the mail rate proceeding may, through an authorized DOT employee, request the opportunity to submit a written or oral statement to the DOT decisionmaker on any unresolved issue. The DOT decisionmaker will grant such requests whenever he or she deems such action desirable in the interest of further clarification and understanding of the issues. The granting of an opportunity for such further presentation shall not, however, impair the rights that any party might otherwise have under the Statute and this part.

                § 302.716
                Effect of conference agreements.
                No agreements or understandings reached in rate conferences as to facts or issues shall in any respect be binding on the Department or any participant. Any party to mail rate proceedings will have the same rights to file an answer and take other procedural steps as though no rate conference had been held. The fact, however, that a rate conference was held and certain agreements or understandings may have been reached on certain facts and issues renders it proper to provide that, upon the filing of an answer by any party to the rate proceeding, all issues going to the establishment of a rate shall be open, except insofar as limited in prehearing conference in accordance with § 302.22.

                § 302.717
                Waiver of participant conditions.
                After the termination of a mail rate conference hereunder, the air carrier whose rates were in issue may petition the DOT decisionmaker for a release from the obligations imposed upon it and all other persons by § 302.711. The DOT decisionmaker will grant such petition only after a detailed and convincing showing is made in the petition and supporting exhibits and documents that there is no reasonable possibility that any of the abuses sought to be prevented will occur or that the Department's processes will in any way be prejudiced. There will be no hearing or oral argument on the petition and the DOT decisionmaker will grant or deny the request without being required to assign reasons therefor.

              Processing Contracts for the Carriage of Mail in Foreign Air Transportation

                § 302.718
                Filing.
                Any air carrier that is a party to a contract to which this subpart is applicable shall file three (3) copies of the contract in the Office of Aviation Analysis, X-50, Department of Transportation, Washington, DC 20590, not later than ninety (90) days before the effective date of the contract. A copy of such contract shall be served upon the persons specified in § 302.720 and the certificate of service shall specify the persons upon whom service has been made. One copy of each contract filed shall bear the certification of the secretary or other duly authorized officer of the filing air carrier to the effect that such copy is a true and complete copy of the original written instrument executed by the parties.

                § 302.719
                Explanation and data supporting the contract.
                Each contract filed pursuant to this subpart shall be accompanied by economic data and such other information in support of the contract upon which the filing air carrier intends that the Department rely, including, in cases where pertinent, estimates of the annual volume of contract mail (weight and ton-miles) under the proposed contract, the nature of such mail (letter mail, parcel post, third class, etc.), together with a statement as to the extent to which this traffic is new or diverted from existing classes of air and surface mail services and the priority assigned to this class of mail.

                § 302.720
                Service.

                A copy of each contract filed pursuant to § 302.718, and a copy of all material and data filed pursuant to § 302.719, shall be served upon each of the following persons:

                (a) Each certificated and commuter (as defined in § 298.2 of this chapter) air carrier, other than the contracting carrier, that is actually providing scheduled mail services between any pair of points between which mail is to be transported pursuant to the contract; and
                (b) The Assistant General Counsel, Transportation Division, U.S. Postal Service, Washington, DC 20260-1124.

                § 302.721
                Complaints.
                Within fifteen (15) days of the filing of a contract, any interested person may file with the Office of Aviation Analysis, X-50, Department of Transportation, Washington, DC 20590, a complaint with respect to the contract setting forth the basis for such complaint and all pertinent information in support of same. A copy of the complaint shall be served upon the air carrier filing the contract and upon each of the persons served with such contract pursuant to § 302.720.

                § 302.722
                Answers to complaints.
                Answers to the complaint may be filed within ten (10) days of the filing of the complaint, with service being made as provided in § 302.720.

                § 302.723
                Further procedures.
                (a) In any case where a complaint is filed, the DOT decisionmaker shall issue an order dismissing the complaint, disapproving the contract, or taking such other action as may be appropriate. Any such order shall be issued not later than ten (10) days prior to the effective date of the contract.
                (b) In cases where no complaint is filed, the DOT decisionmaker may issue a letter of notification to all persons upon whom the contract was served indicating that the Department does not intend to disapprove the contract.
                (c) Unless the DOT decisionmaker disapproves the contract not later than ten (10) days prior to its effective date, the contract automatically becomes effective.

                § 302.724
                Petitions for reconsideration.
                Except in the case of a Department determination to disapprove a contract, no petitions for reconsideration of any Department determination pursuant to this subpart shall be entertained.

              Pt. 302, App. A
              Appendix A to Part 302—Index to Rules of Practice

              Appendix A shows the subjects covered by part 302 and the section numbers used before and after the final rule revising part 302, published in the Federal Register on February 9, 2000 and became effective on March 10, 2000.

                  Subject
                  Old rule
                  New rule

                  ADMINISTRATIVE LAW JUDGES:

                  Actions after hearings
                  § 302.27(b)
                  § 302.31(a)

                  Actions during prehearing conference
                  § 302.23(a)
                  § 302.22(b)

                  Arguments before
                  § 302.25
                  § 302.29

                  Briefs
                  § 302.26
                  § 302.30

                  Licensing cases
                  § 302.1752
                  § 302.215

                  Certification for decision
                  § 302.22(d)
                  § 302.31(b)

                  Definition
                  § 302.22(a)
                  § 302.2

                  Delegation of authority
                  § 302.27(a)
                  § 307.17(a)(3)

                  Exceptions
                  § 302.27(a)
                  § 307.17(a)(3)

                  Interlocutory matters
                  § 302.27(a)
                  § 307.17(a)(3)

                  Disqualification
                  § 302.22(b)
                  § 302.17(b)

                  Exceptions
                  § 302.24(e)
                  § 302.24(i)

                  Licensing cases
                  § 302.1754
                  § 302.217

                  Hearings before
                  § 302.24
                  § 302.23

                  Initial decision (see Initial Decision)

                  Powers
                  § 302.22(c)
                  § 302.17(a)

                  Prehearing conference report
                  § 302.23(b)
                  § 302.22(c)

                  Recommended decision (see Recommended Decision)

                  Termination of authority
                  § 302.22(c)
                  § 307.17(a)(4)

                  ADMISSIONS:

                  Enforcement proceeding
                  § 302.212
                  § 302.412

                  Limitation on use
                  § 302.212
                  § 302.412(c)

                  AIRPORT FEES:

                  Administrative law judge decision
                  § 302.615
                  § 302.607

                  Complaints by U.S. or foreign air carriers
                  § 302.603(a)
                  § 302.602(a)

                  Answers
                  § 302.607
                  § 302.604

                  Additional complaints
                  § 302.603(b)
                  § 302.602(b)

                  Contents
                  § 302.605
                  § 302.603

                  Format of exhibits and briefs
                  § 302.605(b)
                  § 302.603(b)

                  Service
                  § 302.605(c)(1)
                  § 302.603(c)(1)

                  Replies
                  § 302.609
                  § 302.605

                  Consolidation of proceedings
                  § 302.603(c)
                  § 302.602(c)

                  Dismissal
                  §§ 302.611(c), (d)
                  §§ 302.606(c), (d)

                  Final order
                  § 302.621
                  § 302.610

                  Timing
                  § 302.619
                  § 302.609

                  Instituting order
                  § 302.611(b)
                  § 302.606(b)

                  Petitions for discretionary review
                  § 302.617
                  § 302.608

                  Answers
                  § 302.617(c)
                  § 302.608(c)

                  Request for determination by airport owner/operator
                  § 302.603(a)
                  § 302.602(a)

                  Answers
                  § 302.607
                  § 302.604

                  Contents
                  § 302.605
                  § 302.603

                  Format of exhibits and briefs
                  § 302.605(b)
                  § 302.603(b)

                  Service
                  § 302.605(d)(1)
                  § 302.603(d)(1)

                  Replies
                  § 302.609
                  § 302.605

                  Review procedures
                  § 302.611
                  § 302.606

                  Significant dispute determination
                  § 302.611(b)
                  § 302.606(b)

                  AMENDMENTS OF DOCUMENTS (see Documents)

                  ANSWERS (see also Replies):

                  Airport fees
                  § 302.607
                  § 302.604

                  Certificate applications:

                  Initial fitness
                  § 302.1730(c)
                  § 302.204

                  International route awards

                  Conforming applications
                  § 302.1720(d)
                  § 302.212(d)

                  Motions to modify scope
                  § 302.1720(e)
                  § 302.212(d)

                  New authority
                  § 302.1720(d)
                  § 302.212(b)

                  Complaints

                  Air mail contracts
                  § 302.1506
                  § 302.722

                  Airport fees
                  § 302.607
                  § 302.604

                  Enforcement matters
                  § 302.204(b)
                  § 302.405

                  Suspension of tariffs
                  § 302.505
                  § 302.506

                  Consolidation of proceedings
                  § 302.12(c)
                  § 302.13(c)

                  Enforcement proceeding, notice instituting
                  § 302.207
                  § 302.408

                  Exemption applications
                  § 302.406
                  § 302.307

                  Foreign air carrier permit applications
                  § 302.1740(c)
                  § 302.204

                  Generally
                  § 302.6
                  § 302.6

                  Mail rate proceedings show cause orders
                  § 302.305
                  § 302.704

                  Motions, generally
                  § 302.18(c)
                  § 302.11(c)

                  Motions to consolidate
                  § 302.12(c)
                  § 302.13(c)

                  Motions to dismiss and for summary judgment
                  § 302.212
                  § 302.411

                  Motions for modification/dissolution of enforcement proceedings
                  § 302.218
                  § 302.419

                  Petitions for discretionary review
                  § 302.28(b)
                  § 302.32(b)

                  Petitions for final mail rates
                  § 302.303
                  § 302.702(e)

                  Petitions for intervention
                  § 302.15(c)(3)
                  § 302.20(c)(3)

                  Petitions for reconsideration
                  § 302.37a
                  § 302.14

                  Requests for determination of airport fees
                  § 302.607
                  § 302.607

                  APPEALS:

                  Administrative Law Judge's ruling
                  § 302.18(f)
                  § 302.11(h)

                  Enforcement complaints
                  § 302.206(b)
                  § 302.406(c)

                  APPEARANCES:

                  Generally
                  § 302.11
                  § 302.21

                  Application for admission to practice unnecessary
                  § 302.11(a)
                  § 302.21(b)

                  Copy of transcript
                  § 302.11(c)
                  § 302.27(b)

                  Retention of counsel
                  § 302.11(b)
                  § 302.27(a)

                  Enforcement proceedings
                  § 302.214
                  § 302.416

                  APPLICATIONS:

                  Admission to practice unnecessary
                  § 302.11(a)
                  § 302.21(b)

                  Suspension from practicing before DOT
                  § 302.11(a)
                  § 302.21(c)

                  Amendment
                  § 302.5
                  § 302.5

                  Certificates for international route awards
                  §§ 302.1701-1713, 1720
                  §§ 302.201-206

                  Conforming applications
                  § 302.1720(c)
                  § 302.212(c)

                  Certificates involving initial fitness
                  §§ 302.1701-1713, 1730
                  §§ 302.201-206

                  Consolidation
                  § 302.12
                  § 302.13

                  Exemptions
                  §§ 302.401-405
                  §§ 302.302-304

                  Exemptions, emergency
                  §§ 302.410(b), (c)
                  § 302.311

                  Foreign Air Carrier Permits
                  §§ 302.1701-1713, 1740
                  §§ 302.201-206

                  Licensing cases
                  §§ 302.1701-1790
                  §§ 302.201-206

                  ARGUMENT:

                  Before Administrative Law Judge
                  § 302.25
                  § 302.29

                  Oral (see Oral Arguments)

                  ATTENDANCE FEES AND MILEAGE
                  § 302.21
                  § 302.27(c)

                  BRIEFS:

                  Accompanying motions or answers
                  § 302.18(d)
                  § 302.11(d)

                  Failure to restate objections
                  § 302.31(b)
                  § 302.35(b)

                  Filing time
                  § 302.31(a)
                  § 302.35(a)

                  Formal specifications
                  § 302.31(c)
                  § 302.35(c)

                  Incorporation by reference
                  § 302.31(b)
                  § 302.35(c)(2)

                  Licensing cases
                  §§ 302.302.1752, 1755
                  §§ 302.215, 218

                  To Administrative Law Judge
                  § 302.26
                  § 302.30

                  Licensing cases
                  § 302.1752
                  § 302.215

                  To DOT decisionmaker
                  § 302.31
                  § 302.35

                  Licensing cases
                  § 302.1755
                  § 302.218

                  CERTIFICATE CASES FOR U.S. AIR CARRIERS:

                  Application:

                  Answers to
                  §§ 302.1720(d) 1730(d)
                  § 302.204(a)

                  Contents of
                  § 302.1704
                  § 302.202

                  Incomplete
                  § 302.1713
                  § 302.209

                  Replies to answers

                  § 302.204(b)

                  Service of
                  § 302.1705
                  § 302.203

                  Supporting evidence
                  § 302.1710
                  §§ 302.202(a), 205

                  Verification
                  § 302.1707
                  § 302.206

                  Continuing Fitness
                  § 302.1730
                  § 302.211

                  Non-hearing procedures
                  § 302.1712(a)
                  § 302.207

                  Generally
                  §§ 302.1701-1790
                  §§ 302.201-220

                  Initial Fitness
                  § 302.1730
                  § 302.211

                  International Route Awards
                  § 302.1720
                  § 302.212

                  Oral evidentiary hearing proceedings
                  §§ 302.1751-1757
                  §§ 302.214-220

                  Petition for
                  § 302.1712(b)
                  § 302.208

                  CERTIFICATION:

                  Documents
                  § 302.4(b)
                  § 302.4(b)

                  Record
                  §§ 302.22(d), 27, 29
                  § 302.31(b)

                  CHARGES (see Rates, Fairs, and Charges; Airport Fees)

                  CITATION OF RULES
                  § 302.2
                  § 302.1(c)

                  CIVIL PENALTIES
                  § 302.206(a)
                  §§ 302.407(d), (e)

                  COMPLAINANTS, JOINDER
                  § 302.13
                  § 302.404(d)

                  COMPLAINTS:

                  Airport fees
                  §§ 302.603-605
                  §§ 302.602-603

                  Contracts for transportation of mail
                  §§ 302.1505-1507
                  § 302.721

                  Enforcement proceedings
                  §§ 302.200-204
                  §§ 302.403-404

                  Joinder
                  § 302.13
                  § 302.404(d)

                  Rates, fares, and charges
                  §§ 302.501-508
                  §§ 302.501-507

                  Suspension of tariffs
                  §§ 302.505-508
                  § 302.506

                  COMPUTATION OF TIME (see also Time)
                  § 302.16
                  § 302.8

                  CONSOLIDATION OF PROCEEDINGS
                  § 302.12
                  § 302.13

                  Airport fees
                  § 302.603(c)
                  § 302.602(c)

                  Answer to motion for
                  § 302.12(c)
                  § 302.13(c)

                  Enforcement proceedings
                  § 302.210(a)
                  § 302.410

                  Filing time
                  § 302.12(b)
                  § 302.13(b)

                  Initiation of
                  § 302.12(a)
                  § 302.13(a)

                  CONTINUING FITNESS CERTIFICATE CASES
                  § 302.1701-1713
                  § 302.212

                  CONTRACTS (see Mail Contracts)

                  DECISIONS:

                  Final
                  § 302.36
                  §§ 302.38, 220

                  Initial (see Administrative Law Judges)

                  Recommended (see Administrative Law Judges)

                  Tentative
                  § 302.29
                  § 302.33

                  Exceptions to
                  § 302.30
                  § 302.34

                  DEFINITIONS
                  NA
                  §§ 302.2, 402

                  DELEGATION OF AUTHORITY
                  § 302.27
                  §§ 302.17(a), 18(a)

                  DEPOSITIONS:

                  Application by party for
                  § 302.20(b)
                  § 302.26(b)

                  Criteria for order to issue
                  § 302.20(a)
                  § 302.26(a)

                  Evidential status
                  §§ 302.20(h)
                  § 302.26(h)

                  Objections to questions or evidence
                  § 302.2(d)
                  § 302.26(d)

                  Specifications
                  § 302.20(g)
                  § 302.26(g)

                  Subscription by witness
                  § 302.20(e)
                  § 302.26(e)

                  Written interrogatories
                  § 302.20(f)
                  § 302.26(f)

                  DISCRETIONARY REVIEW:

                  Initial and Recommended decisions
                  § 302.28
                  § 302.32

                  Answers in opposition or support
                  § 302.28(b)
                  § 302.32(b)

                  Formal requirements
                  § 302.28(a)(3)
                  §§ 302.32(a)(3), (4)

                  Grounds for
                  § 302.28(a)(2)
                  § 302.32(a)(2)

                  Orders declining review
                  § 302.28(c)
                  § 302.32(c)

                  Oral arguments
                  § 302.28(a)(5)
                  § 302.32(a)(5)

                  Petitions for
                  § 302.28(a)(1)
                  § 302.32(a)(1)

                  Review proceedings
                  § 302.28(d)
                  § 302.32(d)

                  DISSOLUTION OF ENFORCEMENT ACTION
                  § 302.218
                  § 302.419

                  DOCUMENTS:

                  Amendments
                  § 302.5
                  § 302.5

                  Leave of Department
                  § 302.5
                  § 302.5(a)

                  Timing of
                  § 302.5
                  § 302.5(b)

                  Answers (see Answers)

                  Briefs (see Briefs)

                  Dismissal
                  § 302.5
                  § 302.3(d)

                  Electronic filing
                  NA
                  § 302.3(c)

                  Exhibits
                  §§ 302.24(g)
                  § 302.24(c)

                  Filing
                  § 302.3
                  § 302.3

                  Address
                  § 302.3(a)
                  § 302.3(a)

                  Date
                  § 302.3(a)
                  § 302.3(a)

                  Improper filing
                  § 302.4e
                  § 302.3(d)

                  Formal specifications
                  § 302.3(b)
                  § 302.3(b)

                  General requirements
                  § 302.4
                  § 302.4

                  Contents
                  § 302.4(a)
                  § 302.4(a)(2)

                  Designation of person to receive service
                  § 302.4(c)
                  § 302.4(a)

                  Subscription
                  § 302.4(b)
                  § 302.4(b)

                  Memoranda of opposition or support
                  § 302.6(c)
                  § 302.706(b)(2)

                  Number of copies
                  § 302.3(c)
                  § 302.3(c)

                  Objections to public disclosure
                  § 302.39(b)
                  § 302.12

                  Official Notice of facts
                  § 302.24(n)
                  § 302.24(g)

                  Partial relevance of
                  § 302.24(I)
                  § 302.24(e)

                  Presented at oral argument
                  § 302.32(b)
                  § 302.36(b)

                  Receipt after hearing
                  § 302.24(k)
                  § 302.24(h)

                  Responsive
                  § 302.6
                  § 302.6

                  Retention
                  § 302.7
                  § 302.3(f)

                  Service (see Service)

                  Table of contents/Index
                  § 302.3(d)
                  § 302.4(a)(3)

                  Unauthorized
                  § 302.4(f)
                  § 302.6(c)

                  DOT DECISIONMAKER:

                  Briefs to
                  § 302.31
                  § 302.35

                  Licensing cases
                  § 302.1755
                  § 302.218

                  Certification of record to
                  § 302.22(d)
                  § 302.31(b)

                  Definition
                  § 302.22a
                  §§ 302.2, 18

                  Final decision
                  § 302.36
                  § 302.38

                  Licensing cases
                  § 302.1757
                  § 302.220

                  Oral argument
                  § 302.32
                  § 302.36

                  Licensing cases
                  § 302.1756
                  § 302.219

                  Petitions for reconsideration
                  § 302.37
                  § 302.14

                  Review of Administrative Law Judge decision
                  § 302.38
                  § 302.32

                  Tentative decision
                  § 302.29
                  § 302.33

                  Exceptions
                  § 302.30
                  § 302.34

                  ENFORCEMENT PROCEEDINGS:

                  Admissions as to facts and documents
                  § 302.212
                  § 302.412

                  Complaints:

                  Formal
                  § 302.201
                  § 302.404

                  Informal
                  § 302.200
                  § 302.403

                  Insufficiency of
                  § 302.203
                  § 302.404(c)

                  Consolidation of proceedings
                  § 302.210a
                  § 302.410

                  Evidence of previous violations
                  § 302.216
                  § 302.413

                  Generally
                  §§ 302.200-217
                  §§ 302.401-420

                  Hearings
                  § 302.213
                  § 302.415

                  Modification or dissolution of enforcement action
                  § 302.218
                  § 302.419

                  Motions to dismiss
                  § 302.212
                  § 302.411

                  Motions for summary judgment
                  § 302.212
                  § 302.402

                  Settlement proceedings
                  § 302.215
                  § 302.417

                  EVIDENCE:

                  Exhibits
                  §§ 302.24(g), (h)
                  §§ 302.24(c), (d)

                  Generally
                  § 302.24(c)
                  § 302.24(a)

                  Objections to
                  § 302.24(d)
                  § 302.24(b)

                  Offers of proof
                  § 302.24(f)
                  § 302.24(j)

                  Official notice of facts in certain documents
                  § 302.24(n)
                  § 302.24(g)

                  Partial relevance of
                  § 302.24(I)
                  § 302.24(e)

                  Previous violations
                  § 302.216
                  § 302.413

                  Records in other proceedings
                  § 302.24(j)
                  § 302.24(f)

                  EXAMINERS (see Administrative Law Judges)

                  EXCEPTIONS:

                  Administrative Law Judge's rulings
                  § 302.24(e)
                  § 302.24(i)

                  Initial decisions
                  § 302.30
                  § 302.31(c)

                  Licensing cases
                  § 302.1754
                  § 302.217

                  Recommended decisions
                  § 302.30
                  § 302.31(c)

                  Request for oral argument
                  § 302.32
                  § 302.36

                  Tentative decisions
                  § 302.30
                  § 302.34

                  Waiver
                  § 302.33
                  § 302.37

                  EXEMPTION PROCEEDINGS:

                  Application:

                  Answers to
                  § 302.406
                  § 302.307

                  Contents of
                  § 302.402
                  § 302.303

                  Filing of
                  § 302.401
                  § 302.302

                  Incomplete
                  § 302.405
                  § 302.306

                  Posting of
                  § 302.404
                  § 302.305

                  Service of
                  § 302.403
                  § 302.304

                  Reply to answer
                  § 302.407
                  § 302.308

                  Supporting evidence
                  § 302.402(c)
                  § 302.302(c)

                  DOT's initiative
                  § 302.409
                  § 302.310

                  Emergencies
                  § 302.410
                  § 302.311

                  Cabotage
                  § 302.402(d)
                  § 302.303(d)

                  Hearing request
                  § 302.408
                  § 302.309

                  EXHIBITS (see also Evidence):

                  Generally
                  § 302.24(g)
                  §§ 302.24(c), (d)

                  FARES (see Rates, Fares, and Charges)

                  FEE (see Airport Fees)

                  FINAL MAIL RATE PROCEEDINGS (see Mail Rate Proceedings)

                  FINAL ORDERS (see Orders)

                  FITNESS CASES (see Certificate Cases)

                  FOREIGN AIR CARRIER PERMIT CASES:

                  Application:

                  Answers to
                  § 302.1740(c)
                  § 302.204(a)

                  Contents of
                  § 302.1704
                  § 302.202

                  Incomplete
                  § 302.1713
                  § 302.209

                  Replies to answers

                  § 302.204(b)

                  Service of
                  § 302.1705
                  § 302.203

                  Supporting evidence
                  § 302.1710
                  §§ 302.202(a), 205

                  Verification
                  § 302.1707
                  § 302.206

                  Non-hearing procedures
                  § 302.1712(a)
                  § 302.207

                  Generally
                  §§ 302.1701-1713, 1740-1790
                  §§ 302.201-220

                  Oral evidentiary hearing proceedings
                  § 302.1751-1757
                  §§ 302.214-220

                  Petition for
                  § 302.1712(b)
                  § 302.208

                  HEARINGS:

                  Airport fee dispute proceedings
                  § 302.611(b)
                  § 302.606(b)

                  Argument before Administrative Law Judge
                  § 302.25
                  § 302.29

                  Change in rates, fares, or charges
                  § 302.506
                  § 302.706

                  Consolidated (see Consolidation of Proceedings)

                  Documents of partial relevance
                  § 302.24(i)
                  § 302.24(e)

                  Enforcement proceedings
                  § 302.213
                  § 302.415

                  Evidence (see Evidence)

                  Expedition of
                  § 302.14(a)
                  § 302.11(e)

                  Generally
                  § 302.24
                  § 302.23

                  Intervention
                  § 302.15
                  § 302.20

                  Licensing cases
                  § 302.1751
                  § 302.214

                  Notice
                  § 302.24(b)
                  § 302.23

                  Offers of proof
                  § 302.24(f)
                  § 302.24(j)

                  Official notice of facts in certain documents
                  § 302.24(n)
                  § 302.24(g)

                  Participation by non parties
                  § 302.14(b)
                  § 302.19

                  Receipt of documents after hearing
                  § 302.24(k)
                  § 302.24(h)

                  Records in other proceedings
                  § 302.24(j)
                  § 302.24(f)

                  Request for, on application for exemption
                  § 302.408
                  § 302.309

                  Shortened procedure
                  § 302.35
                  § 302.15

                  Transcripts
                  §§ 302.24(l), (m)
                  § 302.28

                  INITIAL DECISION:

                  Answer in support or opposition
                  § 302.28(b)
                  § 302.32(b)

                  Contents
                  § 302.27(b)
                  § 302.31(c)

                  Effect of
                  § 302.27(c)
                  § 302.31(d)

                  Licensing cases
                  § 302.1753
                  § 302.216

                  Exceptions to
                  § 302.1754
                  § 302.217

                  Oral arguments
                  § 302.28(a)(5)
                  § 302.32(a)(5)

                  Orders declining review
                  § 302.28(c)
                  § 302.32(c)

                  Petitions for discretionary review
                  § 302.28
                  § 302.32

                  Service
                  § 302.27(b)
                  § 302.31(c)

                  Scope
                  § 302.27(a)
                  § 302.31(a)(1)

                  INITIAL FITNESS CERTIFICATE CASES (see Certificate Cases)

                  INSTITUTING ORDERS (see Orders)

                  INTERROGATORIES (see Depositions)

                  INTERVENTION:

                  Generally
                  § 302.15
                  § 302.20

                  JOINDER OF COMPLAINTS OR COMPLAINANTS
                  § 302.13
                  § 302.404(d)

                  JOINT PLEADINGS:

                  Enforcement cases
                  § 302.13
                  § 302.404(d)

                  Licensing cases
                  § 302.1708
                  § 302.204(c)

                  LAW JUDGE (see Administrative Law Judges)

                  LICENSING CASES (see Certificate Cases; Foreign Air Carrier Permit Cases

                  MAIL CONTRACTS:

                  Complaint against contract
                  §§ 302.1505-1507
                  §§ 302.721-723

                  Data supporting contract
                  § 302.1503
                  § 302.719

                  Explanation of contract
                  § 302.1503
                  § 302.719

                  Filing of contract
                  § 302.1502
                  § 302.718

                  Petition for reconsideration
                  § 302.1508
                  § 302.724

                  Service of contract
                  § 302.1504
                  § 302.720

                  MAIL RATE CONFERENCES:

                  Availability of data to Postal Service
                  § 302.317
                  § 302.714

                  Conditions upon participation
                  § 302.314
                  § 302.711

                  Compliance report
                  § 302.314(d)
                  § 302.711(d)

                  Non-disclosure of information
                  § 302.314(a)
                  § 302.711(a)

                  Signed statement required
                  § 302.314(b)
                  § 302.711(b)

                  DOT analysis of data for submission of answers
                  § 302.316
                  § 302.713

                  Effect of conference agreements
                  § 302.319
                  § 302.716

                  Information to be requested from carrier
                  § 302.315
                  § 302.712

                  Participants in conferences
                  § 302.313
                  § 302.710

                  Post conference procedure
                  § 302.318
                  § 302.715

                  Scope of conferences
                  § 302.312
                  § 302.709

                  Time of commencing and terminating conference
                  § 302.321
                  § 302.708(b)

                  Waiver of participant conditions
                  § 302.320
                  § 302.717

                  MAIL RATE PROCEEDINGS:

                  Evidence
                  § 302.308
                  § 302.706(c)

                  Further procedures
                  § 302.306, 307
                  § 302.705

                  Hearing
                  § 302.309
                  § 302.706

                  Institution of proceedings
                  § 302.302
                  § 302.702

                  Objections and answers to show cause order
                  § 302.305
                  § 302.704

                  Order to show cause
                  § 302.303
                  § 302.703

                  Parties and persons other than parties
                  § 302.301, 302
                  § 302.706(b)

                  MILEAGE FEES
                  § 302.21
                  § 302.27(c)

                  MODIFICATION OF ENFORCEMENT ACTION
                  § 302.218
                  § 302.419

                  MOTIONS (see also Petitions):

                  Answers to
                  § 302.18(c)
                  § 302.11(c)

                  Appeals from rulings of Administrative Law Judges
                  § 302.18(f)
                  § 302.11(h)

                  Briefs
                  § 302.18(d)
                  § 302.11(d)

                  Consolidation of proceedings
                  § 302.12
                  § 302.13

                  Enforcement cases
                  § 302.210a
                  § 302.410

                  Continuances and extension of time
                  § 302.17
                  § 302.9

                  Disposition of
                  § 302.18(e)
                  § 302.11(g)

                  Effect of pendency
                  § 302.18(g)
                  § 302.11(f)

                  Expedition of case
                  § 302.14(a)
                  § 302.11(e)

                  For suspension of operating authority pendente lite
                  § 302.217
                  § 302.418

                  For modification or dissolution of orders
                  § 302.218
                  § 302.419

                  Form and contents
                  § 302.18(b)
                  § 302.11(b)

                  Generally
                  § 302.18
                  § 302.11(a)

                  Oral arguments
                  § 302.18(d)
                  § 302.11(d)

                  Substitution of parties
                  § 302.10
                  § 302.10(b)

                  To correct transcripts
                  § 302.24(m)
                  § 302.28(f)

                  To dismiss and for summary judgment
                  § 302.212
                  § 302.411

                  To dismiss formal complaint
                  § 302.204
                  § 302.405(c)

                  To file unauthorized documents
                  § 302.4(f)
                  § 302.6(c)

                  To modify scope in Licensing cases
                  § 302.1720(c)
                  § 302.212(b)

                  To quash or modify subpoena
                  § 302.19(f)
                  § 302.25(f)

                  To whom motions addressed
                  § 302.18(a)
                  § 302.11(a)

                  To withhold information from public disclosure
                  §§ 302.39(b), (e), (f)
                  §§ 302.12(d), (e)

                  NON-HEARING PROCEDURES
                  § 302.35
                  § 302.15

                  Licensing cases
                  § 302.1712(a)
                  § 302.207

                  OBJECTIONS (see also Answers):

                  To Public Disclosure of Information
                  § 302.39
                  § 302.12

                  OFFERS OF PROOF
                  § 302.24(f)
                  § 302.24(j)

                  OFFICIAL NOTICE
                  § 302.24(n)
                  § 302.24(g)

                  ORAL ARGUMENTS:

                  Before DOT decisionmakers
                  § 302.32
                  § 302.36

                  Request for leave
                  § 302.32(a)
                  § 302.36(a)

                  Rules on documentary evidence
                  § 302.32(b)
                  § 302.36(b)

                  Before Administrative Law Judges
                  § 302.25
                  § 302.29

                  Discretionary review
                  § 302.28(a)(5)
                  § 302.32(a)(5)

                  Licensing cases
                  § 302.1756
                  § 302.219

                  Waivers
                  § 302.33
                  § 302.37

                  ORAL EVIDENTIARY HEARINGS (see Hearings)

                  ORDERS:

                  Declining review of initial decisions
                  § 302.28(c)
                  § 302.32(c)

                  Dismissal:

                  Airport fee dispute proceedings
                  §§ 302.611(c), (d)
                  §§ 302.606(c), (d)

                  Enforcement complaints
                  § 302.205
                  § 302.406

                  Licensing cases
                  § 302.1750(a)(2)
                  § 302.210(a)(3)

                  Establishing further procedures (Licensing cases)
                  § 302.1750
                  § 302.210

                  Final
                  § 302.36
                  § 302.38

                  Airport fee dispute proceedings
                  § 302.621
                  § 302.610

                  Licensing cases
                  § 302.1750
                  § 302.210

                  Mail contracts
                  § 302.1507(a)
                  § 302.723(a)

                  Mail rate proceedings
                  § 302.306
                  § 302.705

                  Instituting oral evidentiary hearing:

                  Airport fee dispute proceedings
                  § 302.611(b)
                  § 302.606(b)

                  Licensing cases
                  § 302.1750(a)(1)
                  § 302.210(a)(4)

                  Mail rate proceedings
                  §§ 302.307, 309
                  §§ 302.703, 705(b)

                  Instituting investigation of rates, fares, and charges
                  § 302.504
                  § 302.505

                  Show cause:

                  Licensing cases
                  § 302.1730(d)
                  § 302.210(a)(1)

                  Mail rate proceedings
                  § 302.304
                  § 302.703

                  PARTIES:

                  Appearances of
                  § 302.11
                  § 302.21(a)

                  Defined
                  § 302.9
                  § 302.2, 10(a)

                  Enforcement proceedings
                  § 302.210
                  § 302.402

                  Licensing cases
                  § 302.1709
                  § 302.210(a)(4)

                  Mail rate proceedings
                  § 302.301
                  § 302.706(b)

                  Participation by Air Carrier Associations
                  § 302.10(a)
                  § 302.10(c)

                  Persons other than parties
                  § 302.14
                  § 302.19

                  Substitution of
                  § 302.10
                  § 302.10(b)

                  PETITIONS:

                  Determination of rates, fares, or charges
                  § 302.502(a)
                  § 302.502-503

                  Discretionary review (see Discretionary Review)

                  Filing Time
                  § 302.37(a)
                  § 302.14(a)

                  Institution of mail rate proceedings
                  § 302.303
                  § 302.302

                  Intervention
                  § 302.15(c)
                  § 302.20

                  Orders subject to reconsideration
                  § 302.37(a)
                  § 302.14(a)

                  Repetitive
                  § 302.37(c)
                  § 302.14(c)

                  Reconsideration
                  § 302.37
                  § 302.14

                  Rulemaking
                  § 302.38
                  § 302.16

                  PREHEARING CONFERENCE
                  § 302.23
                  § 302.22

                  Actions during
                  § 302.23(a)
                  § 302.22(b)

                  Enforcement proceeding
                  § 302.211
                  § 302.414

                  Purposed § 302.23(a)
                  § 302.23(a)
                  § 302.22(a)

                  Report of
                  § 302.23(b)
                  § 302.22(c)

                  Scope
                  § 302.23(a)
                  § 302.22(a)

                  PROCEEEDINGS:

                  Airport fee dispute proceedings
                  §§ 302.601-621
                  §§ 302.601-610

                  Consolidation of (see Consolidation)

                  Contemporaneous consideration (see Consolidation)

                  Enforcement
                  §§ 302.200-217
                  § 302.401-420

                  Exemption
                  §§ 302.400-410
                  § 302.301-311

                  Licensing cases
                  §§ 302.1701-1790
                  § 302.201-220

                  Mail rate
                  §§ 302.300-321
                  § 302.701-717

                  Rates, fares, and charges
                  §§ 302.500-508
                  § 302.501-507

                  PUBLIC DISCLOSURE OF INFORMATION:

                  Documents
                  § 302.39(b)
                  § 302.12(b)

                  Generally
                  § 302.39(a)
                  § 302.12(a)

                  Objection to by government
                  § 302.39(d)
                  § 302.12(f)

                  Oral testimony
                  § 302.39(c)
                  § 302.12(c)

                  RATES, FARES, AND CHARGES—PROCEEDINGS (see also Mail Rate Proceedings; Airport Fees):

                  Institution of
                  § 302.501
                  § 302.502

                  Order of investigation
                  § 302.504
                  § 302.505

                  Petition
                  § 302.501
                  § 302.503

                  Contents
                  § 302.502(a)
                  § 302.503(a)

                  Dismissed
                  §§ 302.503
                  § 302.504

                  Service
                  § 302.502(b)
                  § 302.503(b)

                  Suspension of tariffs
                  § 302.505
                  § 302.506

                  Answers
                  § 302.505
                  § 302.506(e)

                  Complaints
                  § 302.505
                  § 302.506

                  Time for filing complaint
                  § 302.508
                  § 302.507

                  RECOMMENDED DECISIONS (see Decisions)

                  Answer in support or opposition
                  § 302.28(b)
                  § 302.32(b)

                  Contents
                  § 302.27(b)
                  § 302.31(c)

                  Effect of
                  § 302.27(c)
                  § 302.31(d)

                  Licensing cases
                  § 302.1753
                  § 302.216

                  Exceptions to
                  § 302.1754
                  § 302.217

                  Oral arguments
                  § 302.28(a)(5)
                  § 302.32(a)(5)

                  Orders declining review
                  § 302.28(c)
                  § 302.32(c)

                  Petitions for discretionary review
                  § 302.28
                  § 302.32

                  Service
                  § 302.27(b)
                  § 302.31(c)

                  Scope
                  § 302.27(a)
                  § 302.31(a)(2)

                  RECONSIDERATION, REHEARING, REARGUMENT (see Petitions for Reconsideration):

                  RECORD, CERTIFICATION
                  §§ 302.22(d), 27(a), 29(a)
                  § 302.31(b)

                  REPLIES:

                  Airport fee dispute proceedings
                  § 302.609
                  § 302.605

                  Exemption cases
                  § 302.407
                  § 302.308

                  Generally
                  § 302.6(b)
                  § 302.6(b)

                  Licensing cases

                  § 302.204(b)

                  Motions
                  § 302.18(c)
                  § 302.11(c)

                  Enforcement proceedings
                  § 302.209
                  § 302.408

                  RESPONSIVE DOCUMENTS (see Answers; Replies):

                  REVIEW (see Discretionary Review):

                  ROUTE PROCEEDINGS (see also Certificate Cases):

                  International route awards
                  §§ 302.1701-1790
                  § 302.201-220

                  RULEMAKING PETITIONS
                  § 302.38
                  § 302.16

                  SERVICE:

                  Airport fee dispute proceedings
                  §§ 302.605(c)(1), (d)(1)
                  §§ 302.603(c)(1), (d)(1)

                  By the Department
                  § 302.8(a)(1)
                  § 302.7(a)(1)

                  Date of
                  § 302.8(f)
                  § 302.7(f)

                  Enforcement complaints
                  § 302.204(a)
                  § 302.404(e)

                  Exemption cases
                  § 302.403
                  § 302.304

                  Generally
                  § 302.8
                  § 302.7

                  Licensing cases
                  § 302.1705
                  § 302.203

                  Mail rate petitions
                  § 302.303(c)
                  § 302.702(d)

                  Persons eligible for service
                  § 302.8(c)
                  § 302.7(c), (g), (h)

                  Procedures
                  § 302.8(b)
                  § 302.7(b)

                  Proof of
                  § 302.8(e)
                  § 302.7(e)

                  Rates, fares, and charges complaints
                  § 302.502(b)
                  § 302.503(b)

                  Where to be made
                  § 302.8(d)
                  § 302.7(d)

                  SETTLEMENT OFFERS:

                  Enforcement proceedings
                  § 302.215
                  § 302.417

                  Public disclosure
                  § 302.215(d)
                  § 302.417(d)

                  SHORTENED PROCEDURE
                  § 302.35
                  § 302.15

                  SHOW CAUSE ORDERS (see Orders):

                  SUBPOENAS
                  § 302.19
                  § 302.25

                  SUSPENSION OF PRACTICE BEFORE DOT
                  § 302.11(a)
                  § 302.25(f)

                  TARIFFS:

                  Complaints requesting suspension
                  § 302.505
                  § 302.506

                  TEMPORARY RATE PROCEEDINGS
                  § 302.310
                  § 302.707

                  TENTATIVE DECISIONS (see Decisions):

                  TESTIMONY (see Witnesses):

                  TIME:

                  Computation of
                  § 302.16
                  § 302.8

                  Continuances of
                  § 302.17
                  § 302.9

                  Extensions of
                  § 302.17
                  § 302.9

                  Licensing cases
                  §§ 302.1706, 1711
                  § 302.209

                  TRANSCRIPTS OF HEARINGS
                  § 302.24(l)
                  § 302.28

                  U.S. AIR CARRIER CERTIFICATION (see Certificate Cases):

                  VERIFICATION:

                  Licensing cases
                  § 302.1707
                  § 302.206

                  WAIVERS OF PROCEDURAL STEPS
                  § 302.33
                  § 302.37

                  WITNESSES:

                  Attendance fees and mileage
                  § 302.21
                  § 302.27(c)

                  Cross-examination by nonparties
                  § 302.14(b)
                  § 302.19

                  Depositions
                  § 302.20
                  § 302.26

                  Objections to public disclosure of testimony
                  § 302.39(c)
                  § 302.12(c)

                  Represented by counsel
                  § 302.11(a)
                  § 302.27(a)

                  Subpoenas
                  § 302.19
                  § 302.25

                  VIOLATIONS—EVIDENTIAL STATUS IN ENFORCEMENT PROCEEDINGS
                  § 302.216
                  § 302.413

          Pt. 303
          PART 303—REVIEW OF AIR CARRIER AGREEMENTS

              Subpart A—General Provisions
              Sec.
              303.01
              Purpose.
              303.02
              Definitions.
              303.03
              Requirement to file application.
              303.04
              General rules governing application content, procedure and conditions of approval.
              303.05
              Applications requesting antitrust immunity.
              303.06
              Review of antitrust immunity.
              303.07
              Transitional rule.

              Subpart B [Reserved]
              303.10-303.19
              [Reserved]

              Subpart C [Reserved]
              303.20-303.24
              [Reserved]

              Subpart D—Section 41309 Applications
              303.30
              General provisions concerning contents of applications.
              303.31
              Justification for the application.
              303.32
              Service of the application.
              303.33
              Modifications and cancellations.

              Subpart E—Procedures Upon Application or Review
              303.40
              Determination of compliance.
              303.41
              Notice.
              303.42
              Comments on application.
              303.43
              Action following the comment period.
              303.44
              Show cause proceedings.
              303.45
              Evidentiary hearings.
              303.46
              Decision by the Assistant Secretary.

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

            Source:
            50 FR 31142, July 31, 1985, unless otherwise noted.

            Subpart A—General Provisions

              § 303.01
              Purpose.
              This part sets forth the procedures by which applications may be made to the Department of Transportation under 49 U.S.C. 41308 and 41309 and procedures governing proceedings to enforce these provisions. These procedures supplement the rules described in part 302 of this chapter, which also apply to the review of air carrier agreements.
              [Doc. No. DOT-OST-2014-0140, 84 FR 15936, Apr. 16, 2019]

              § 303.02
              Definitions.
              (a) The term Assistant Secretary means the Assistant Secretary for Aviation and International Affairs, or as delegated. As provided in 49 CFR 1.21, the Secretary or Deputy Secretary may exercise any authority in lieu of the Assistant Secretary under the provisions of this part.
              (b) The term documents means:

              (1) All written, recorded, transcribed or graphic matter including letters, telegrams, memoranda, reports, studies, forecasts, lists, directives, tabulations, logs, or minutes and records of meetings, conferences, telephone or other conversations or communications; and
              (2) All information contained in data processing equipment or materials. The term does not include daily or weekly statistical reports in whose place an annual or monthly summary is submitted.
              (c) The term hearing means either a show-cause proceeding as provided in § 303.44 or a full evidentiary hearing as provided in § 303.45, whichever is determined by the Assistant Secretary to be appropriate.
              (d)-(g) [Reserved]
              (h) The term Section 41309 transaction means any contract, agreement or discussion of a cooperative working arrangement within the scope of 49 U.S.C. 41309.
              (i) [Reserved]
              [Doc. No. DOT-OST-2014-0140, 84 FR 15936, Apr. 16, 2019]

              § 303.03
              Requirement to file application.

              A person who seeks approval of a section 41309 transaction must file the application with the Docket Operations Office, M-30, U.S. Department of Transportation, 1200 New Jersey Avenue SE, Washington, DC 20590, or by electronic submission at http://www.regulations.gov. The application must conform to the requirements set forth in §§ 303.04 and 303.05.
              [Doc. No. DOT-OST-2014-0140, 84 FR 15937, Apr. 16, 2019]

              § 303.04
              General rules governing application content, procedure and conditions of approval.
              (a) Unless specifically exempted by this part or by an order of the Assistant Secretary, a person filing an application pursuant to § 303.03 of this part shall prepare and file the application in the manner specified in this section. The application shall also contain the information required by subpart D of this part. An application may be deemed incomplete if it is not in substantial compliance with these requirements.
              (b) The parties to the transaction may file either separate applications or one joint application so long as all the information required herein is submitted for each party to the transaction. The Assistant Secretary or Administrative Law Judge, if the matter has been assigned to a judge, upon his or her initiative or upon application, may order the target company or other persons to submit some or all of the information required by this subpart, or other information under 14 CFR 302.25.
              (c) Each page of the application and each document submitted with the application shall be marked with the name, initials, or some other identifying symbol of the applicant. The application shall also indicate the date of preparation and the name and corporate position of the preparer.
              (d) Where the required information is in data processing equipment, on microfilm, or is otherwise not eye-readable, the applicant shall provide such information in eye-readable form.
              (e) The information provided by the applicant shall be updated in a timely fashion throughout the period of consideration of the application.
              (f) If any information or documents required by the applicable subpart are not available, the applicants shall file an affidavit executed by the individual responsible for the search explaining why they cannot be produced.
              (g) The Assistant Secretary or the Administrative Law Judge may order any applicant to submit information in addition to that required by the applicable subpart.
              (h) An applicant may withhold a document required by this part on the grounds that it is privileged, but each document so withheld shall be identified and the applicant shall supply a brief description of the nature of the document, a written statement indicating the basis of the privilege claimed, and the names of the preparers and recipients of the document. If any interested party contests the assertion of privilege, the document shall be promptly submitted to the Assistant Secretary, or the Administrative Law Judge, if the matter has been assigned to a Judge. Where appropriate, an in camera inspection may be ordered.

              (i) The person submitting the application to the Department shall send a complete copy of the application to the Chief, Transportation Section, Antitrust Division of the Department of Justice, at the same time as it is filed with the Docket Operations Office.
              (j) The applicant shall, if requested, be responsible for expeditiously providing the application to any interested person, whether or not a party.
              (k) Unless otherwise specified in this subpart, all applications shall conform generally to the requirements set forth in 14 CFR part 302, subpart A.
              (l) In exceptional circumstances, the Assistant Secretary may waive or alter the procedural requirements of this part to permit a transaction to proceed on an expedited basis.
              [50 FR 31142, July 31, 1985, as amended by Amdt. 302-2, 54 FR 33499, Aug. 15, 1989; 65 FR 6456, Feb. 9, 2000; Doc. No. DOT-OST-2014-0140, 84 FR 15937, Apr. 16, 2019]

              § 303.05
              Applications requesting antitrust immunity.
              (a) Each application must state explicitly whether or not the applicant seeks antitrust immunity under the provisions of 49 U.S.C. 41308. If antitrust immunity is requested, the application should specify whether the applicant seeks full immunity or immunity only from the provisions of sections 4, 4a and 4c of the Clayton Act, 15 U.S.C. 15, 15a, 15c. Each application seeking antitrust immunity shall contain a statement explaining why the applicant believes immunity is in the public interest and necessary in order for the transaction to proceed.
              (b) [Reserved]

              (c) Any material misrepresentation of fact in such an application shall be grounds for rescission nunc pro tunc of any antitrust immunity granted as a result of the misrepresentation.
              (d) A request for renewal of any immunity granted does not operate under section 558 of Administrative Procedure Act, 5 U.S.C. 558(c), to extend the period of immunity conferred.
              [50 FR 31142, July 31, 1985, as amended by Amdt. 303-2, 54 FR 33499, Aug. 15, 1989; Doc. No. DOT-OST-2014-0140, 84 FR 15937, Apr. 16, 2019]

              § 303.06
              Review of antitrust immunity.
              The Assistant Secretary may initiate a proceeding to review any antitrust immunity previously conferred by the Department's predecessor or the Department in any section 41309 transaction. The Assistant Secretary may terminate or modify such immunity if the Assistant Secretary finds after notice and hearing that the previously conferred immunity is not consistent with the provisions of section 41308. In any proceeding to review such immunity, the proponents of the immunity shall have the burden of justifying the continuation of previously conferred immunity under the provisions of section 41308.
              [Doc. No. DOT-OST-2014-0140, 84 FR 15937, Apr. 16, 2019]

              § 303.07
              Transitional rule.
              If a section 41309 application or a request for antitrust immunity under section 41308 is pending on May 16, 2019, such application or request shall be deemed made pursuant to the provisions of this part as amended May 16, 2019.
              [Doc. No. DOT-OST-2014-0140, 84 FR 15937, Apr. 16, 2019]

            Subpart B [Reserved]

              §§ 303.10-303.19
              [Reserved]

            Subpart C [Reserved]

              §§ 303.20-303.24
              [Reserved]

            Subpart D—Section 41309 Applications

              § 303.30
              General provisions concerning contents of applications.
              A section 41309 application shall contain the following general information:
              (a) The name, mailing address and primary line of business of each party to the contract, agreement or request for authority to discuss a possible cooperative working arrangement.

              (b) If the contract or agreement for which approval is sought is not evidenced by a resolution of an air carrier association, the application shall contain a copy of the contract or agreement that is certified to be true and complete by each party to the contract of agreement. If the contract or agreement is set forth in an exchange of correspondence, copies of all such correspondence must be submitted and must be certified as true and complete by all parties to the contract or agreement. If the contract or agreement is oral, a memorandum fully describing the agreement must be submitted and must be certified as true and complete by all parties to the contract or agreement. If approval is sought for a request for authority to discuss a possible cooperative working arrangement, the application shall contain a complete description of the possible cooperative working arrangement and all matters to be discussed. The description shall be certified to be true and complete by each party to the proposed discussion.
              (c) If the contract, agreement or request for authority to discuss a cooperative working arrangement is evidenced by a resolution or other action of an air carrier association, the application shall contain the resolution or other action and a certification by an authorized employee of the association that the resolution or other action was duly adopted on a certain date. The authorized employee shall also specify in such certification the name of each air carrier that concurred in such resolution or other action and the name of each air carrier member that did not concur.
              [50 FR 31142, July 31, 1985, as amended by Doc. No. DOT-OST-2014-0140, 84 FR 15937, Apr. 16, 2019]

              § 303.31
              Justification for the application.
              A section 41309 application shall explain the nature and purpose of the contract, agreement or request to discuss a cooperative working arrangement and describe how it changes any price, rule, or practice existing under a previously approved application. The application also, consistent with Department of Transportation and the precedent of DOT's predecessor, shall contain factual material, documentation, and argument in support of the application. Economic analyses, when required, shall include full explanatory details, including data sources and allocation methods. If the applicants intend to rely upon market data sources, other than those available to the public by the Department, the complete market data shall be included with the application at the time of filing. If the applicants intend to rely on public benefits to justify approval, they shall describe these benefits, including foreign policy and comity considerations.
              [Doc. No. DOT-OST-2014-0140, 84 FR 15937, Apr. 16, 2019]

              § 303.32
              Service of the application.
              (a) Except as provided in paragraph (b) of this section, a section 41309 application described in § 303.30(c) of this subpart and any related pleadings shall be served on any person or organization that has previously advised the air carrier association of its desire for service of such agreements. Each application shall contain the names and addresses of all persons served and a notice that any party in interest may within 21 days of the date of the application file comments with the Assistant Secretary in support or opposition to the application.
              (b) Service of IATA Traffic Conference agreements and amendments thereto upon any person or organization that previously has advised IATA of its desire for service of agreements may be accomplished by sending a summary notice specifying the filing date; the IATA memorandum number; the particular Conferences involved; the subject matter (e.g., cargo/passenger, tariffs/agency matters/ procedures); the proposed effective date(s); the markets or Conference areas affected; the names of the carriers participating in the agreement; the names of all persons served; and a notice that any party in interest may within 21 days of the date of filing of the application file comments with the Assistant Secretary in support of or opposition to the application. A request for a complete copy of the application can be made under the provisions of § 303.04(j).
              [50 FR 31142, July 31, 1985, as amended by Doc. No. DOT-OST-2014-0140, 84 FR 15937, Apr. 16, 2019]

              § 303.33
              Modifications and cancellations.
              This subpart also applies to all modifications or cancellations of contracts or agreements or requests for authority to discuss a possible cooperative working arrangement.

            Subpart E—Procedures Upon Application or Review

              § 303.40
              Determination of compliance.
              (a) Within 10 days after an application is filed pursuant to § 303.03, the Assistant Secretary will determine whether the application complies with the requirements of §§ 303.04 and 303.05.
              (b) If the Assistant Secretary determines that the application is incomplete, he or she may issue a notice dismissing the application without prejudice. If the application is dismissed, and statutory time period for completion of proceedings will not begin to run until a completed application is filed.

              § 303.41
              Notice.

              (a) The Documentary Service Division shall compile a weekly list of all applications filed under §§ 303.04 and 303.05. The list shall include a description of the application, the docket number, date of filing, state that it may be reviewed in the Documentary Services Division, and indicate that interested parties may comment on the application or request a hearing within 21 days of the date of filling or other period as specified. The weekly list will normally be prepared on the following Monday, or as soon as possible, and will be posted on a public bulletin board in the Documentary Services Division. The list also shall be submitted for publication in the Federal Register.

              (b) In appropriate case, particularly when an application concerns a matter of broad public significance, the Assistant Secretary may cause a notice of an application and request for public comment to be published separately in the Federal Register.

              § 303.42
              Comments on application.

              (a) Unless a different comment period is specified by notice or order, or in a notice of filing published in the Federal Register, any person may file comments, responses to the application, and/or a request for a hearing, within 21 days of the filing of an application.
              (b) Comments supporting or opposing an application or proposing conditions and responses thereto shall state with particularity the factual basis on which the person commenting relies, and provide affidavits or other material in support of the factual basis, if appropriate.
              (c) Requests for a formal oral evidentiary hearing must set out with specificity the material issues of fact in dispute that cannot be resolved without such a hearing. Vague, unsupported allegations will not suffice.
              [50 FR 31142, July 31, 1985, as amended by Doc. No. DOT-OST-2014-0140, 84 FR 15937, Apr. 16, 2019]

              § 303.43
              Action following the comment period.
              (a) [Reserved]
              (b) Section 41309 applications. After the period for which comments, requests for a hearing or responses to an order to show cause are due concerning a section 41309 application, the Assistant Secretary may proceed by order requesting further information or justification or by order of approval or disapproval or, in appropriate cases, may proceed by order to show cause or by order instituting a full evidentiary hearing.

              (c) Notice to the public of any full evidentiary hearing or order to show cause concerning an application shall be made by publication in the Federal Register.

              [50 FR 31142, July 31, 1985, as amended by Amdt. 303-2, 54 FR 33500, Aug. 15, 1989; Doc. No. DOT-OST-2014-0140, 84 FR 15937, Apr. 16, 2019]

              § 303.44
              Show cause proceedings.

              If the Assistant Secretary determines that an application, or review of a previously granted application, will be considered in a show cause proceeding, a tentative decision shall be issued inviting interested persons to show cause why the tentative decision should not be made final. Interested persons may respond to the order within the time specified in the order. Replies to such responses shall be permitted within the time specified in the order. Persons wishing to introduce additional facts into the record should incorporate such information in their responses or replies by affidavit. In the case of applications, show cause orders may be issued after the receipt of initial comments on the application.

              § 303.45
              Evidentiary hearings.
              (a) If the Assistant Secretary determines that an application, or review of a previous granted application, should be the subject of a full evidentiary hearing, he or she shall issue an order so stating. The term “full evidentiary hearing” includes any hybrid format set out in the instituting order. This order shall set forth the issues that are to be considered in such hearing.
              (b) After the issuance of an order for a full evidentiary hearing, the Chief Administrative Law Judge shall promptly appoint an Administrative Law Judge to conduct such hearing in accordance with section 7 of the Administrative Procedure Act, 5 U.S.C. 556, and the Rules of Practice in part 302 of this chapter.
              (c) The applicants and the Assistant General Counsel for Aviation Enforcement and Proceedings shall be parties in any full evidentiary hearing held under this part. The Assistant Attorney General, Antitrust, shall be a party upon notice filed with the Administrative Law Judge. Other persons may intervene as parties as provided by § 302.20 of this chapter.
              (d) Within the time specified in the order instituting the full evidentiary hearing, the Administrative Law Judge shall recommend to the Assistant Secretary that the application be approved or denied or that the previously granted exemption approval or immunity should be terminated or continued in accordance with the standards of the Act. The recommendation shall be in writing, shall be based solely on the hearing record, and shall include a statement of the Administrative Law Judge's findings and conclusions, and the reasons or basis therefore, or all material issues of fact, law or discretion presented on the record. Copies of the recommendation shall be served on each party.
              (e) Within 10 days after the date the Administrative Law Judge serves his or her recommendation, any party may file written exceptions to the recommendation for consideration by the Assistant Secretary. Within 21 days after the service date of the judge's recommendation, any party may file a brief in support of or in opposition to any exceptions. This period may be altered by order of the Assistant Secretary, who may also authorize the filing of reply briefs.
              [50 FR 31142, July 31, 1985, as amended at 65 FR 6456, Feb. 9, 2000; as amended by Doc. No. DOT-OST-2014-0140, 84 FR 15937, Apr. 16, 2019]

              § 303.46
              Decision by the Assistant Secretary.
              The Assistant Secretary shall decide, on the basis of the record and in accordance with the procedures prescribed in part 302 of this chapter, whether to grant or deny, in whole or in part, the application. A copy of the Assistant Secretary's final decision shall be served on all parties.

          Pt. 305
          PART 305—RULES OF PRACTICE IN INFORMAL NONPUBLIC INVESTIGATIONS

            Sec.
            305.1
            Applicability.
            305.2
            Definition.
            305.3-305.4
            [Reserved]
            305.5
            Initiation of investigation.
            305.6
            Appearance of witnesses.
            305.7
            Issuance of investigation subpenas.
            305.8
            [Reserved]
            305.9
            Rights of witnesses.
            305.10
            Nonpublic character of proceedings.
            305.11
            Procedures after investigation.
            305.12
            Motions to quash or modify an investigation subpena.

            Authority:
            49 U.S.C. chapters 401, 417, 461; 5 U.S.C. 555, 556.

            Source:
            Docket No. 82, 50 FR 2421, Jan. 16, 1985, unless otherwise noted.

            § 305.1
            Applicability.

            The provisions of this part shall govern informal nonpublic investigations, as distinguished from formal investigations and adjudicatory proceedings, undertaken by the Office of the Assistant General Counsel for Aviation Enforcement and Proceedings with a view to obtaining information from any person. While the Department seeks and encourages voluntary cooperation and believes that it is in the best interest of all parties concerned, it will utilize the procedures provided by this part to compel the disclosure of information by any person where DOT wishes to determine whether such person, or any other person, has been or is violating any provisions of 49 U.S.C. Subtitle VII, Chapter 411 or 49 U.S.C. 40102(2), 41502, 41507, 41508, 41509, 41702, 41703, or 46101, or any rule, regulation, order, certificate, permit, or letter or registration issued pursuant thereto by DOT and when the information appears to be relevant to the matter under investigation. This part shall not apply to employees or records of other agencies of the U.S. Government, the District of Columbia, or the several States and their political subdivisions.
            [Docket No. 82, 50 FR 2421, Jan. 16, 1985, as amended by Doc. No. DOT-OST-2014-0140, 84 FR 15937, Apr. 16, 2019]

            § 305.2
            Definition.
            For the purpose of, and as used in this part, the term investigation means a non-adjudicatory, informal nonpublic investigation for the purpose of determining whether formal enforcement action should be instituted with respect to alleged violations of law.

            §§ 305.3-305.4
            [Reserved]

            § 305.5
            Initiation of investigation.
            An investigation may be initiated by order of the Department. Attorneys of the Office of the Assistant General Counsel for Aviation Enforcement and Proceedings shall conduct such investigations pursuant to the provisions of this part and they shall be designated Investigation Attorneys. Investigation Attorneys, administrative law judges and the DOT decisionmaker are hereby authorized to exercise and perform their duties and functions under this part in accordance with the provisions of the Act and the rules and regulations of the Department.

            § 305.6
            Appearance of witnesses.
            Witnesses may be required to appear before any administrative law judge for the purpose of receiving their testimony or receiving from them documents or other data relating to any subject under investigation. Such testimony shall be mechanically or stenographically recorded, and a transcript thereof shall be made and incorporated in the record of the investigation.

            § 305.7
            Issuance of investigation subpenas.
            (a) The General Counsel, the DOT decisionmaker, the chief administrative law judge or the administrative law judge designated to preside at the reception of evidence, may issue a subpena directing the person named therein to appear before a designated administrative law judge at a designated time and place to testify or to produce documentary evidence relating to any matter under investigation, or both. Each such subpena shall briefly advise the person required to testify or submit documentary evidence of the purpose and scope of the investigation, and a copy of the order initiating the investigation shall be attached to the subpena.
            (b) Witnesses subpoenaed to appear shall be paid the fees and mileage prescribed in § 302.27(c) of the Rules of Practice (14 CFR 302.27(c)). Service of such subpoenas shall be made in accordance with the provisions of § 302.7 of the Rules of Practice (14 CFR 302.7).
            [Doc. No. 82, 50 FR 2421, Jan. 16, 1985, as amended at 65 FR 6456, Feb. 9, 2000; Doc. No. DOT-OST-2014-0140, 84 FR 15937, Apr. 16, 2019]

            § 305.8
            [Reserved]

            § 305.9
            Rights of witnesses.
            Any person required to testify or to submit documentary evidence shall be entitled to procure, on payment of lawfully prescribed costs, a copy of any document produced by such person and of his or her own testimony as stenographically reported. Any person compelled to testify or to produce documentary evidence may be accompanied, represented, and advised by counsel.

            § 305.10
            Nonpublic character of proceedings.

            Investigations shall be attended only by the witnesses and their counsel, the administrative law judge, the Investigation Attorney, other DOT personnel concerned with the conduct of the proceeding and the official stenographer. All orders initiating investigations, motions to quash or modify investigation subpenas, orders disposing of such motions, documents, and transcripts of testimony shall be part of the record in the investigation. Unless DOT determines otherwise, all orders initiating investigations which do not disclose the identity of the particular persons of firms under investigation shall be published in the Federal Register. Except as otherwise required by law, the remainder of the record of such proceedings shall constitute internal DOT documents which shall not be available to the general public. The use of such records in DOT proceedings subject to part 302 of the Rules of Practice shall be governed by §§ 302.25(g) and 302.12 of this chapter and by the law of evidence applicable to DOT proceedings.
            [Doc. No. 82, 50 FR 2421, Jan. 16, 1985, as amended at 65 FR 6456, Feb. 9, 2000; Doc. No. DOT-OST-2014-0140, 84 FR 15937, Apr. 16, 2019]

            § 305.11
            Procedures after investigation.
            Upon completion of the investigation, where the General Counsel, determines that no corrective action is warranted, the investigation will be closed. Where remedial action is indicated by the investigation, the General Counsel will proceed pursuant to subpart D of part 302 of this chapter (the Rules of Practice) or will take such other action as may be appropriate.
            [Doc. No. 82, 50 FR 2421, Jan. 16, 1985, as amended at 65 FR 6456, Feb. 9, 2000; Doc. No. DOT-OST-2014-0140, 84 FR 15937, Apr. 16, 2019]

            § 305.12
            Motions to quash or modify an investigation subpena.
            Any person upon whom an investigation subpena is served may, within seven (7) days after such service or at any time prior to the return date thereof, whichever is earlier, file a motion to quash or modify such subpena with the administrative law judge who issued such subpena, or in the event the administrative law judge is not available, with the chief administrative law judge for action by himself or herself or by the DOT decisionmaker. Such motions shall be made in writing in conformity with Rules 3 and 4 of the Rules of Practice (part 302 of this subchapter); shall state with particularity the grounds therefor and the relief sought; shall be accompanied by the evidence relied upon and all such factual matter shall be verified in accordance with the provisions of Rule 4(b) of the aforesaid Rules of Practice. Written memoranda or briefs may be filed with the motions, stating the points and authorities relied upon. No oral argument will be heard on such motions unless the chief administrative law judge, the administrative law judge or the DOT decisionmaker directs otherwise. A subpena will be quashed or modified if the evidence whose production is required is not reasonably relevant to the matter under investigation, or the demand made does not describe with sufficient particularity the information sought, or the subpena is unlawful or unduly burdensome. The filing of a motion to quash or modify an investigation subpena shall stay the return date of such subpena until such motion is granted or denied. The DOT decisionmaker may at any time review, upon his or her own initiative, the ruling of an administrative law judge or the chief administrative law judge denying a motion to quash a subpena. In such cases, the DOT decisionmaker may order that the return date of a subpena which he or she has elected to review be stayed pending DOT action thereon.
            [Doc. No. 82, 50 FR 2421, Jan. 16, 1985, as amended at 65 FR 6457, Feb. 9, 2000]

          Pt. 313
          PART 313—IMPLEMENTATION OF THE ENERGY POLICY AND CONSERVATION ACT

            Sec.
            313.1
            Purpose, scope, and authority.
            313.2
            Policy.
            313.3
            Definitions.
            313.4
            Major regulatory actions.
            313.5
            Energy information.
            313.6
            Energy statements.
            313.7
            Integration with environmental procedures.

            Authority:
            42 U.S.C. 6362(b), 49 U.S.C. Chapter 401.

            Source:
            Docket No. 82, 50 FR 2425, Jan. 16, 1985, unless otherwise noted.

            § 313.1
            Purpose, scope, and authority.

            (a) Chapter 77 (Energy Conservation) of Title 42 (The Public Health and Welfare), authorizes and directs certain actions to conserve energy supplies through energy conservation programs and where necessary, the regulation of certain energy uses, and to provide for improved energy efficiency of motor vehicles, major appliances, and certain other consumer products. In furtherance of these purposes, 42 U.S.C. 6362 requires several transportation regulatory agencies, including DOT, to submit a number of reports to the Congress with respect to energy conservation and efficiency, and where practicable and consistent with the exercise of DOT's authority under other law, to include in any major regulatory action a statement of its probable impact on energy efficiency and energy conservation. 42 U.S.C. 6362(b) directs DOT to define the term “major regulatory action” by rule.
            (b) Section 40113 of Subtitle VII of Title 49 of the United States Code (Transportation)(“the Statute”), authorizes DOT to establish such rules, regulations, and procedures as are necessary to the exercise of its functions and are consistent with the purposes of 49 U.S.C. Subtitle VII.
            (c) The purpose of these regulations is to establish procedures and guidelines for the implementation of DOT's responsibility under 42 U.S.C. 6362 to include in any major regulatory action taken by DOT a statement of the probable impact on energy efficiency and energy conservation.
            (d) These regulations apply to all proceedings before DOT, as provided herein.
            [Doc. No. 82, 50 FR 2425, Jan. 16, 1985, as amended at 60 FR 43528, 43529, Aug. 22, 1995, as amended by Doc. No. DOT-OST-2014-0140, 84 FR 15938, Apr. 16, 2019]

            § 313.2
            Policy.
            (a) General. It is the policy of DOT to view the conservation of energy and the energy efficiency improvement goals of Chapter 77 of Title 42 as part of DOT's overall mandate, to be considered along with the several public interest and public convenience and necessity factors enumerated in section 40101 of 49 U.S.C. Subtitle VII. To the extent practicable and consistent with DOT's authority under the Statute and other law, energy conservation and efficiency are to be weighed in the decisionmaking process just as are DOT's traditional policies and missions.
            (b) Implementation. Implementation of this policy is through the integration of energy findings and conclusions into decisions, opinions, or orders in proceedings involving a major regulatory action, as defined in this part.
            (c) Proceedings in progress. The provisions of this part are intended primarily for prospective application. Proceedings in progress on the effective date of this part, in which an application has been docketed but no final decision made public, shall adhere to § 313.6(a) of this part, provided that the fair, efficient, and timely administration of DOT's regulatory activities is not compromised thereby. Nothing herein shall imply a requirement for new or additional hearings, a reopening of the record, or any other procedures which would tend to delay a timely decision in proceedings in progress.
            (d) Hearings. Public hearings will not normally be held for the purpose of implementing 42 U.S.C. 6362, particularly in connection with proposed actions which do not require notice and hearing as a prerequisite to decision under the Statute. Hearings may be ordered in exceptional circumstances where the proposed action is of great magnitude or widespread public interest and, in addition, presents complex issues peculiarly subject to resolution through evidentiary hearings and the process of cross-examination.
            [Doc. No. 82, 50 FR 2425, Jan. 16, 1985, as amended at 60 FR 43528, 43529, Aug. 22, 1995, as amended by Doc. No. DOT-OST-2014-0140, 84 FR 15938, Apr. 16, 2019]

            § 313.3
            Definitions.
            As used in this part:
            (a) Energy efficiency means the ratio of the useful output of services in air transportation to the energy consumption of such services.
            (b) Energy statement is a statement of the probable impact of a major regulatory action on energy efficiency and energy conservation, contained in a decision, opinion, order, or rule.
            (c) Major regulatory action is any decision by the DOT decisionmaker or administrative law judge requiring an energy statement pursuant to § 313.4 of this part.

            (d) NEPA means the National Environmental Policy Act of 1969.
            [Doc. No. 82, 50 FR 2425, Jan. 16, 1985, as amended at 60 FR 43529, Aug. 22, 1995, as amended by Doc. No. DOT-OST-2014-0140, 84 FR 15938, Apr. 16, 2019]

            § 313.4
            Major regulatory actions.
            (a) Any initial, recommended, tentative or final decision, opinion, order, or final rule is a major regulatory action requiring an energy statement, if it:
            (1) May cause a near-term net annual change in aircraft fuel consumption of 10 million (10,000,000) gallons or more, compared to the probable consumption of fuel were the action not to be taken; or
            (2) Is specifically so designated by DOT because of its precedential value, substantial controversy with respect to energy conservation and efficiency, or other unusual circumstances.
            (b) Notwithstanding paragraph (a)(1) of this section, the following types of actions shall not be deemed as major regulatory actions requiring an energy statement:
            (1) Tariff suspension orders under section 41509 of 49 U.S.C. Subtitle VII, emergency exemptions or temporary exemptions not exceeding 24 months under section 40109 of 49 U.S.C. Subtitle VII and other proceedings in which timely action is of the essence;
            (2) Orders instituting or declining to institute investigations or rulemaking, setting or declining to set applications for hearing, on reconsideration, or on requests for stay;
            (3) Other procedural or interlocutory orders;
            (4) Actions taken under delegated authority; and
            (5) Issuance of a certificate where no determination of public convenience and necessity is required.
            (c) Notwithstanding paragraph (a)(1) of this section, DOT may provide that an energy statement shall not be prepared in a proceeding which may result in a major regulatory action, if it finds that:
            (1) The inclusion of an energy statement is not consistent with the exercise of DOT's authority under the Statute or other law;
            (2) The inclusion of an energy statement is not practicable because of time constraints, lack of information, or other unusual circumstances; or
            (3) The action is taken under laws designed to protect the public health or safety.
            [Doc. No. 82, 50 FR 2425, Jan. 16, 1985, as amended at 60 FR 43529, Aug. 22, 1995; Doc. No. DOT-OST-2014-0140, 84 FR 15938, Apr. 16, 2019]

            § 313.5
            Energy information.
            (a) It shall be the responsibility of applicants and other parties or participants to a proceeding which may involve a major regulatory action to submit sufficient information about the energy consumption and energy efficiency consequences of their proposals or positions in the proceeding to enable the administrative law judge or the DOT decisionmaker, as the case may be, to determine whether the proceeding will in fact involve a major regulatory action for purposes of this part, and if so, to consider the relevant energy factors in the decision and prepare the energy statement.
            (b) In proceedings involving evidentiary hearings, the energy information shall be submitted at such hearings pursuant to DOT's usual procedural regulations and practices, under control of the administrative law judge or other hearing officer.
            (c) In proceedings not involving evidentiary hearings, the energy information shall be submitted at such time as other materials in justification of an application are submitted. Where an application itself is intended as justification for DOT action, the energy information shall be submitted with the application. In rulemakings not involving hearings, the energy information shall normally be submitted along with comments on the notice of proposed rulemaking, or as directed in any such notice or any advance notice.

            § 313.6
            Energy statements.

            (a) Each major regulatory action shall include, to the extent practicable, consideration of the probable impact of the action taken or to be taken upon energy efficiency and conservation. The administrative law judge or the DOT decisionmaker, as the case may be, shall normally make findings and conclusions about:
            (1) The net change in energy consumption;
            (2) The net change in energy efficiency; and
            (3) The balance struck between energy factors and other public interest and public convenience and necessity factors in the decision.
            (b) Energy findings and conclusions contained in any initial or recommended decision are a part of that decision and thus subject to discretionary review by DOT.
            (c) In the case of orders to show cause initiated by DOT, energy findings and conclusions may be omitted if adequate information is not available. In such instances, the energy statement shall be integrated into the final decision.

            § 313.7
            Integration with environmental procedures.
            (a) In proceedings in which an environmental impact statement or a finding of no significant impact is prepared by a responsible official pursuant to DOT's procedures implementing the National Environmental Policy Act of 1969 (NEPA), the energy information called for by this part may be included in that statement or declaration in order to yield a single, comprehensive document. In such instances, the DOT's NEPA procedures shall govern the submission of the energy information. However, it shall remain the responsibility of the administrative law judge or the DOT decisionmaker, as the case may be, to make the findings and conclusions required by § 313.6(a) of this part.
            (b) A determination that a major regulatory action within the meaning of 42 U.S.C. 6362 and this part may be involved in a proceeding is independent from any determination that the proceeding is a “major Federal action significantly affecting the quality of the human environment” within the meaning of NEPA, and vice versa.
            [Doc. No. 82, 50 FR 2425, Jan. 16, 1985, as amended at 60 FR 43528, 43529, Aug. 22, 1995]

          PART 314 [RESERVED]

          Pt. 323
          PART 323—TERMINATIONS, SUSPENSIONS, AND REDUCTIONS OF SERVICE

            Sec.
            323.1
            Applicability.
            323.2
            Definitions.
            323.3
            Who shall file notices.
            323.4
            Contents of notices.
            323.5
            Time for filing notices.
            323.6
            General requirements for notices.
            323.7
            Service of notices.
            323.8
            Exemptions.
            323.9
            Objections to notices.
            323.10
            Time for filing objections.
            323.11
            Answers to objections.
            323.12
            General requirements for objections and answers.
            323.13
            DOT actions.
            323.14
            Temporary suspension authority for involuntary interruption of service.
            323.15
            Report to be filed after strikes.
            323.16
            Listings in schedule publications.
            323.17
            Delays in discontinuing service.
            323.18
            Carriers' obligations when terminating, suspending, or reducing air service.
            323.19
            Withdrawal notice by exemption carriers in certain limited-entry markets.

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

            Source:
            Docket No. 82, 50 FR 2430, Jan. 16, 1985, unless otherwise noted.

            § 323.1
            Applicability.
            This part applies to certificated air carriers who terminate or suspend service to a point, or in a market, and to all air carriers who terminate, suspend, or reduce service below the level of essential air service under 49 U.S.C. 41731-41742.
            [Doc. No. 82, 50 FR 2430, Jan. 16, 1985, as amended by Doc. No. OST-96-1269, 61 FR 19165, May 1, 1996]

            § 323.2
            Definitions.
            As used in this part:

              Certificated carrier means a direct air carrier holding authority to provide air transportation granted by the Department in the form of a certificate of public convenience and necessity under 49 U.S.C. 41102 (Transportation) or an all-cargo air transportation certificate to perform all-cargo air transportation under 49 U.S.C. 41103.

              Eligible place means a place in the United States that meets the specified criteria outlined in 49 U.S.C. Chapter 417.

              Essential air service is that air transportation which the Department has found to be essential under Subchapter II of Chapter 417 of 49 U.S.C. Subtitle VII.

              FAA-designated hub means any airport serving a small, medium, or large air traffic hub listed in the Department of Transportation publication, Airport Activity Statistics of Certificated Route Carriers.

              United States includes the several States, the District of Columbia, and the several territories and possessions of the United States. State includes any of the individual entities comprising the United States.
            [Doc. No. 82, 50 FR 2430, Jan. 16, 1985, as amended by Doc. No. OST-96-1269, 61 FR 19165, May 1, 1996; Doc. No. DOT-OST-2014-0140, 84 FR 15938, Apr. 16, 2019]

            § 323.3
            Who shall file notices.
            (a) Terminations, suspensions, or reductions by certificated carriers. The notice described in § 323.4(a) shall be filed by any certificated carrier that intends to:
            (1) Terminate or suspend all passenger air transportation that it is providing to any eligible place in the United States when that termination or suspension will leave no certificated carriers serving that place. Service shall be considered to be terminated or suspended whenever it is operated less than 5 days per week, with three or more intermediate stops, or in one direction only between the two places;
            (2) Reduce passenger air transportation so that any eligible place receives less than the level of essential air service determined by DOT;
            (3) Terminate or suspend all passenger air transportation that it is providing to any eligible place in the United States for which DOT has not issued an essential air service determination under either § 325.5 or § 325.7 of this chapter, when that termination or suspension will leave only one certificated carrier serving that place. Service shall be considered to be terminated or suspended whenever it is operated less than 5 days per week, with three or more intermediate stops, or in one direction only between the two places;
            (4) Reduce passenger air transportation to any eligible place in Alaska for which DOT has not determined the level of essential air service so that the service between that place and every other place served by a certificated carrier is either:
            (i) Less than two round trip flights per week, or
            (ii) Less than the average weekly number of round trip flights actually provided during calendar year 1976, or
            (iii) Less than the number of flights specified under an agreement between DOT and the State of Alaska; or
            (5) Terminate, suspend, or reduce passenger air transportation at an eligible place for which DOT has issued, or is required to issue, an essential air service determination under section 41731 or section 41733 of 49 U.S.C. Subtitle VII so that the total available seats of all the carriers linking that place to FAA-designated hubs will be reduced by 33 percent or more during a 90-day period. Service to a hub shall be considered to be terminated or suspended whenever it is operated less than 5 days per week, with three or more intermediate stops, or in one direction only between two places.
            (b) [Reserved]
            (c) Uncertificated carriers. The notice described in § 323.4(a) shall be filed by any uncertificated carrier that intends to terminate, suspend, or reduce:
            (1) Air transportation so that any eligible place receives less than the level of essential air service determined by the DOT;
            (2) Passenger air transportation to any eligible place for which DOT has not determined the level of essential air service, other than a place in Alaska, so that there is no FAA-designated hub from which the place receives at least two round trip flights per day, 5 days per week; or
            (3) Passenger air transportation to any eligible place in Alaska, for which DOT has not determined the level of essential air service, so that the service between that place and every other place served by a certificated carrier is either:
            (i) Less than two round trip flights per week, or

            (ii) Less than the average number of weekly round trip flights actually provided during calendar year 1976, or
            (iii) Less than the number of flights specified under an agreement between DOT and the State of Alaska.
            (d) For the purpose of this section, in ascertaining the level of air transportation being provided to a place or between two places, air transportation that has been the subject of a notice filed under this section shall be considered not in operation for the duration of the notice period.
            (e) If a certificated carrier was, before October 24, 1978, granted authority to suspend air transportation, and that authority ends on a stated date, the carrier shall comply with the requirements of this part before continuing the suspension beyond that date.
            (f) If a certificated carrier was, before October 24, 1978, granted authority to terminate or suspend air transportation, but has not suspended service, the carrier shall comply with the requirements of this part before terminating or suspending service.
            [Doc. No. 82, 50 FR 2430, Jan. 16, 1985, as amended by Doc. No. OST-96-1269, 61 FR 19165, 19166, May 1, 1996; Doc. No. DOT-OST-2014-0140, 84 FR 15938, Apr. 16, 2019]

            § 323.4
            Contents of notices.
            (a) The notice required under § 323.3 (a) and (c) shall contain:
            (1) Identification of the carrier, including address and telephone number.
            (2) Statement whether the carrier is a certificated carrier or an uncertificated carrier.
            (3) Names of all other air carriers serving the point at the time of filing.
            (4) Description of the service to be terminated, suspended, or reduced, including:
            (i) Arrival and departure times at the affected points of the flights to be discontinued,
            (ii) Aircraft type used,
            (iii) Routes of the flights to be discontinued, and a statement of which routes, if any, will be left without nonstop or single-plane service from a certificated carrier by the intended change, and
            (iv) Date of intended termination, suspension, or reduction of service.
            (5) A statement whether DOT has determined the level of essential air service for the point, and
            (i) If such a determination has been made, a statement whether the intended termination, suspension, or reduction will reduce air transportation to the place below the essential level; or
            (ii) If such a determination has not been made, and the place is an eligible place, a statement whether the intended termination, suspension, or reduction reasonably appears to deprive the place of essential air service, and an explanation.
            (6) If the place is an eligible place, the calendar date when objections are due under § 323.10.
            (7) Proof of service upon all persons specified in § 323.7(a). The proof of service shall include the names of all carriers served and the names and addresses of all other persons served.
            (b) [Reserved]
            (c) DOT may require any carrier filing notice to supply additional information.
            (Approved by the Office of Management and Budget under control number 3024-0030)
            [Doc. No. 82, 50 FR 2430, Jan. 16, 1985, as amended by Doc. No. OST-96-1269, 61 FR 19165, 19166, May 1, 1996]

            § 323.5
            Time for filing notices.
            (a) Except as specified by paragraph (b) of this section, a notice required by § 323.3 shall be filed at least:
            (1) 90 days before the intended termination, suspension, or reduction, if it is filed by a certificated carrier or by an uncertificated carrier receiving compensation under 49 U.S.C. 41731-41742 for service to the place;
            (2) 30 days before the intended termination, suspension, or reduction, if it is filed by an uncertificated carrier not receiving compensation under section 419 of the Act for service to the place.
            (b) The notice required by § 323.3(a)(3) shall be filed at least 30 days, and the notice required by § 323.3(a)(1) shall be filed at least 60 days, before the intended termination or suspension.
            [Doc. No. 82, 50 FR 2430, Jan. 16, 1985, as amended by Doc. No. OST-96-1269, 61 FR 19165, 19166, May 1, 1996]

            § 323.6
            General requirements for notices.
            (a) Each notice filed under this part shall, unless otherwise specified, conform to the procedural rules of general applicability in subpart A of part 302 of this chapter.
            (b) Each notice filed under this part shall be titled to indicate the place(s) involved, and to indicate whether it is a 30-, 60-, or 90-day notice and whether it involves a termination, a suspension, or a reduction of air transportation.
            [Doc. No. 82, 50 FR 2430, Jan. 16, 1985, as amended by Doc. No. OST-96-1269, 61 FR 19166, May 1, 1996]

            § 323.7
            Service of notices.
            (a) A copy of each notice required by § 323.3 shall be served upon:
            (1) The chief executive of the principal city or other unit of local government at the affected place. The principal city is the one named, or previously named, in the section 41102 certificate by virtue of which the place qualifies as an eligible place. For places in Alaska or Hawaii that are designated as eligible places without having been listed on a section 41102 certificate, the principal city is the most populous municipality at the place.
            (2) [Reserved]
            (3) The State agency with jurisdiction over transportation by air in the State containing any community required to be served under paragraph (a)(1) of this section. If there is no such State agency, the notice shall be sent to the governor of that State.
            (4) The manager of, or other individual with direct supervision over and responsibility for, the airport at any community required to be served under paragraph (a)(1) of this section.
            (5) The Postmaster General (marked for the attention of the Assistant General Counsel, Transportation), if the carrier filing the notice is authorized to transport United States mail to or from any community required to be served under paragraph (a)(1) of this section.
            (6) Each air carrier providing scheduled service to a non-hub or FAA-designated small hub that is directly affected by the notice.
            (7) The DOT Regional Office for the region in which the affected point is located.
            (8) Any other person designated by DOT.
            (b) [Reserved]
            (c) Local communities, State agencies, and airport managers shall be served personally or by registered or certificated mail. All other persons may be served by ordinary mail.
            [Doc. No. 82, 50 FR 2430, Jan. 16, 1985, as amended by Doc. No. OST-96-1269, 61 FR 19166, May 1, 1996]

            § 323.8
            Exemptions.
            Carriers are exempted from paragraphs (a)(1), (a)(3), and (a)(5) of § 323.3 to the extent that those provisions require them to file a notice when terminating or suspending the domestic leg of an international flight (fill-up service).
            [Doc. No. OST-96-1269, 61 FR 19166, May 1, 1996]

            § 323.9
            Objections to notices.
            (a) Any person may file an objection requesting DOT to prohibit any termination, suspension, or reduction of air transportation to an eligible place that is the subject of a notice filed under this part.
            (b) Objections shall contain:
            (1) Identification of the objector, including address and telephone number.
            (2) A statement of DOT action requested.
            (3) The schedules, routes, carriers, and aircraft types for all air transportation to the affected place other than that proposed to be terminated, suspended, or reduced.
            (4) A suggested reasonable level of essential air service to the affected place.
            (5) [Reserved]
            (6) A justification of the suggested level of essential air service.

            (7) Proof of service on the carrier filing the notice objected to, on all airport managers and State and local governments on whom the notice was filed, and any other person designated by DOT. The proof of service shall include the names of all carriers served and the names and addresses of all other persons served.

            (c) Objectors are strongly urged to include in their objections facts to support the suggested level of essential air service (e.g., traffic and enplanement data, other market studies, facts descriptive of the place's isolation or dependence on air transportation).
            (Approved by the Office of Management and Budget under control number 3024-0030)
            [Doc. No. 82, 50 FR 2430, Jan. 16, 1985, as amended by Doc. No. OST-96-1269, 61 FR 19165, 19166, May 1, 1996]

            § 323.10
            Time for filing objections.
            (a) Objections shall be filed not later than:
            (1) 12 days from the date of filing of a 30-day notice;
            (2) 15 days from the date of filing of a 60-day notice; or
            (3) 20 days from the date of filing of a 90-day notice.
            (b) The Department may accept late-filed objections, upon motion, for good cause shown.
            (c) Whenever a notice has been filed earlier than required under § 323.5, the Department may extend the time for filing an objection to that notice.

            § 323.11
            Answers to objections.
            (a) Any person may file an answer to an objection filed under this part.
            (b) An answer must be filed not later than 7 business days after the filing of the objection to which it responds. Late-filed answers may be allowed, and extensions of filing time granted, by the Department for the same reasons as for objections.
            (c) An answer may contain the same type of facts and discussion permitted for objections under this part, and must contain:
            (1) Proof of service on the objector, on all persons on whom the objection was required to be served, and on any other person designated by the Department. The proof of service shall include the names and addresses of all persons served.
            (2) Identification of the answering party, including address and telephone number.
            (Approved by the Office of Management and Budget under control number 3024-0030)

            § 323.12
            General requirements for objections and answers.
            (a) Each objection and answer filed under this part shall, unless otherwise specified, conform to the procedural rules of general applicability in subpart A of part 302 of this chapter.
            (b) Each objection shall be titled “Objection to Termination, Suspension, or Reduction of Air Service,” and shall identify the notice to which it responds. Each answer shall be titled “Answer to Objection to Termination, Suspension, or Reduction of Air Service,” and shall identify the objection to which it responds.

            § 323.13
            DOT actions.
            (a) If an objection has been filed under this part, DOT will dispose of the objection by order.
            (b) If no objection has been filed within the time allowed by § 323.10(a), DOT may:
            (1) By order prohibit a termination, suspension, or reduction that reasonably appears to deprive any eligible place of essential air transportation;
            (2) Issue a notice or a final order that it will take no action on a notice filed under § 323.3; or
            (3) Take no action.
            [Doc. No. 82, 50 FR 2430, Jan. 16, 1985, as amended by Doc. No. OST-96-1269, 61 FR 19166, May 1, 1996]

            § 323.14
            Temporary suspension authority for involuntary interruption of service.
            (a) Any air carrier may temporarily suspend service without filing a notice under § 323.3 for any interruption of service that the carrier cannot reasonably be expected to foresee or control, such as rules, standards, or other action, or inaction, of the Administrator of the Federal Aviation Administration or of a foreign government, emergency measures, strikes, weather conditions, construction work on airports, or disasters. However, the provisions of this paragraph shall apply to interruptions due to airport inadequacies only if the carrier is unable to serve the place through any airport convenient to the place with the type of equipment last regularly used to serve the place.

            (b) In the case of an interruption of service caused by a strike, the carrier shall give immediate notice of the interruption to DOT. Suspension authority under this section due to a strike shall expire 90 days after employees return to work.
            (c) If service to a place is interrupted for more than 3 consecutive days for reasons beyond the carrier's control other than a strike, the holder shall give notice to DOT within 3 days following the date of first interruption, setting forth the date of first interruption and a full statement of the reasons for the interruption.
            (d) The notice required by paragraph (b) or (c) of this section shall be marked for the attention of the Director, Office of Aviation Analysis.
            (Approved by the Office of Management and Budget under control number 3024-0030)
            [Doc. No. 82, 50 FR 2430, Jan. 16, 1985, as amended by Doc. No. OST-96-1269, 61 FR 19166, May 1, 1996]

            § 323.15
            Report to be filed after strikes.
            (a) Within 15 days following resumption of service after a strike, an air carrier shall file a report with DOT containing a list of all flights that were canceled, the date they were canceled, and the date service was resumed.
            (b) The report shall be marked for the attention of the Director, Office of Aviation Analysis.
            (Approved by the Office of Management and Budget under control number 3024-0030)
            [Doc. No. 82, 50 FR 2430, Jan. 16, 1985, as amended by Doc. No. OST-96-1269, 61 FR 19166, May 1, 1996]

            § 323.16
            Listings in schedule publications.
            Each air carrier filing a notice under § 323.3 (a)(2), (a)(4), (a)(5), or (c) shall continue to list the affected flights in all generally-distributed schedule publications in which the flight was listed before the notice. The listings shall continue until DOT permits the flights to be discontinued. The listings may include a notice stating that the flights are “to be discontinued as of (date) subject to government approval.”

            § 323.17
            Delays in discontinuing service.
            If transportation that is the subject of a notice under this part is not discontinued within 90 days of the intended date stated in the notice, a new notice must be filed before the service may be discontinued. However, if DOT requires the carrier to provide service beyond the stated date, the carrier need not file a new notice if it discontinues the service within 90 days after DOT permits it to do so.

            § 323.18
            Carriers' obligations when terminating, suspending, or reducing air service.
            Any air carrier that terminates, suspends, or reduces air service, whether or not subject to the notice requirements of this part, shall make reasonable efforts to contact all passengers holding reservations on the affected flights to inform them of the flights' cancellation.

            § 323.19
            Withdrawal notice by exemption carriers in certain limited-entry markets.
            As a condition on the exemption, an air carrier operating under exemption authority in an international market which is the subject of a carrier selection proceeding shall file a notice with the Department at least ninety days before it terminates service in that market. Once such a notice has been filed, the carrier may not terminate service in that market during the notice period unless the air carrier chosen in the selection proceeding enters the market and the Department grants the operating carrier permission to do so. The Department may allow earlier termination for good cause when in the public interest.
            [Doc. No. 43403, 51 FR 43188, Dec. 1, 1986]

          Pt. 325
          PART 325—ESSENTIAL AIR SERVICE PROCEDURES

            Sec.
            325.1
            Purpose.
            325.2
            Applicability.
            325.3
            Definitions.
            325.4
            State and local participation.
            325.5
            Determinations and designations.
            325.6
            Periodic reviews.
            325.7-325.9
            [Reserved]

            325.10
            Modification of the designated level of essential air service.
            325.11
            Form of documents.
            325.12
            Service of documents.
            325.13
            Environmental evaluations and energy information not required.
            325.14
            Conformity with subpart A of part 302.

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

            Source:
            Docket No. 82, 50 FR 2434, Jan. 16, 1985, unless otherwise noted.

            § 325.1
            Purpose.
            The purpose of this part is to establish procedures to be followed in designating eligible places and in determining essential air transportation levels for eligible places, and in the appeals and periodic reviews of these determinations, under 49 U.S.C. 41732.
            [Docket No. 82, 50 FR 2434, Jan. 16, 1985, as amended by Doc. No. DOT-OST-2014-0140, 84 FR 15938, Apr. 16, 2019]

            § 325.2
            Applicability.
            This part applies to essential air service determinations for communities designated as eligible under 49 U.S.C. 41731 and to eligible place designations and essential air service determinations for communities that qualify under 49 U.S.C. 41732 and 41733. It applies to the gathering of data by the Department, and to the participation of State, local, and other officials and other interested persons in the designation and determination processes.
            Note to § 325.2: Criteria for designating eligible points under section 419(b) are contained in part 270 of this chapter. Guidelines for deciding essential air service levels are contained in part 398 of this chapter.
            [Doc. No. DOT-OST-2014-0140, 84 FR 15938, Apr. 16, 2019]

            § 325.3
            Definitions.
            As used in this part, eligible place means a place in the United States that meets the specified criteria outlined in 49 U.S.C. Chapter 417.
            [Doc. No. DOT-OST-2014-0140, 84 FR 15938, Apr. 16, 2019]

            § 325.4
            State and local participation.
            (a) DOT, on a periodic basis, will send a questionnaire to each eligible place that is served by not more than one certificated air carrier, or is designated as an eligible place under 49 U.S.C. 41731, or for which DOT is reviewing its essential air service needs. The questionnaire will be addressed to:
            (1) The chief executive of the principal city, or other unit of local government at the affected place, that is named or has been previously named in a qualifying section 41102 certificate. For places in Alaska or Hawaii that are named DOT as eligible place without having been listed on a section 41102 certificate, the principal city is the most populous municipality at the place;
            (2) The individual or entity with direct supervision over and responsibility for the airport at the eligible place; and
            (3) The State agency with jurisdiction over air transportation in the State containing the eligible place. If there is no such State agency, the questionnaire will be sent to the governor of that State.
            (b) Within 60 days after receipt of the questionnaire, five copies of the response shall be filed in the Docket Operations Office, unless the Department specifies another date. If no response is received within the period, essential air service for that eligible place may temporarily be set at the minimum level prescribed in 49 U.S.C. 41737.
            (c) Any other interested person may, during the 60-day response period, submit information relevant to the essential air service level of that eligible place by filing in the Docket Operations Office, five copies of a document titled with the name of the place involved.
            (d) As necessary, the DOT may request additional information to supplement the questionnaire.
            (Approved by the Office of Management and Budget under control number 3024-0037)
            [Docket No. 82, 50 FR 2434, Jan. 16, 1985, as amended by Doc. No. DOT-OST-2014-0140, 84 FR 15938, Apr. 16, 2019]

            § 325.5
            Determinations and designations.

            DOT will issue a determination of the essential level of air service for a place within 6 months after each of the following events:

            (a) A notice is received that service to an eligible place will be reduced to only one carrier that holds a section 41102 certificate;
            (b) A place is designated as an eligible place under 49 U.S.C. 41731 and either paragraph (c) or (d) of this section or § 325.7(e); or
            (c) A review was conducted of essential air service of that place under § 325.6.
            [Doc. No. DOT-OST-2014-0140, 84 FR 15938, Apr. 16, 2019]

            § 325.6
            Periodic reviews.
            (a) The Department will start a periodic review of essential air service within 1 year of the date of the previous determination of essential air service for eligible places receiving subsidized service, within 2 years of the date of the previous determination for eligible places in Alaska, and within 3 years of the date of the previous determination for eligible places without subsidized air service.
            (b) The review shall be conducted in accordance with the procedures in §§ 325.4, 325.5 and 325.7.
            (c) The Department may review the designation under 49 U.S.C. 41733 to determine whether the community designated as an eligible place continues to meet the criteria in part 270 of this chapter.
            [Docket No. 82, 50 FR 2434, Jan. 16, 1985, as amended by Doc. No. DOT-OST-2014-0140, 84 FR 15938, Apr. 16, 2019]

            §§ 325.7-325.9
            [Reserved]

            § 325.10
            Modification of the designated level of essential air service.
            (a) Any person may file with DOT a petition titled “Petition for Modification of Essential Air Service Level,” asking to modify the essential air service level at a place.
            (b) The petition shall identify the place affected, and specifically state the reasons why the petitioner believes the designated essential level is inadequate. It should contain any facts and arguments that support its requests, and describe the level of essential air service that should be substituted.
            (c) Any person may, within 30 days after the filing of a petition for modification, file an answer to that petition titled “Answer to Petition for Modification.”
            (d) After review, the Department may seek more information and the procedures of §§ 325.5 and 325.7 will be followed.
            (Approved by the Office of Management and Budget under control number 3024-0037)
            [Docket No. 82, 50 FR 2434, Jan. 16, 1985, as amended by Doc. No. DOT-OST-2014-0140, 84 FR 15938, Apr. 16, 2019]

            § 325.11
            Form of documents.
            All documents filed under this part shall be filed in the Documentary Services Division, U.S. Department of Transportation, 1200 New Jersey Avenue, SE., Washington, D.C. 20590, and on their front page state:
            (a) The title of the document;
            (b) The name of the affected community;
            (c) The name, address, and telephone number of a person who can be contacted for further information concerning the subject of the document; and
            (d) In the case of a responsive document, the docket number of the document to which it responds.

            § 325.12
            Service of documents.
            Any person, except one filing individually as a consumer, who files a document under this part, including responses to the questionnaire, shall serve that document upon those listed in § 325.4(a) of this part and upon the following:
            (a) The governor of the State in which the eligible place is located;
            (b) Each air carrier providing scheduled service to the affected eligible place;
            (c) In the case of a responsive document, the one who filed the document to which it responds; and
            (d) The U.S. Postal Service, Assistant General Counsel, Transportation Division, Law Department, Washington, D.C. 20260.
            [Docket No. 82, 50 FR 2434, Jan. 16, 1985, as amended by Doc. No. DOT-OST-2014-0140, 84 FR 15938, Apr. 16, 2019]

            § 325.13
            Environmental evaluations and energy information not required.
            Notwithstanding any provision of part 312 or part 313 of this chapter, a person filing a petition or appeal under this part is not required to file an environmental evaluation or energy information with the application.

            § 325.14
            Conformity with subpart A of part 302.
            Except where they are inconsistent, the provisions of subpart A of part 302 of this chapter shall apply to proceedings under this part.

          PARTS 330-331 [RESERVED]

        SUBCHAPTER C [RESERVED]

        SUBCHAPTER D—SPECIAL REGULATIONS

          Pt. 372
          PART 372—OVERSEAS MILITARY PERSONNEL CHARTERS

              Subpart A—General Provisions
              Sec.
              372.1
              Applicability.
              372.2
              Definitions.
              372.3
              Waiver.
              372.4
              Enforcement.
              372.5
              Suspension of revocation of authority.

              Subpart B—Exemption
              372.10
              Exemption.

              Subpart C—Conditions and Limitations
              372.20
              Requirement of operating authorization.
              372.21
              Solicitation.
              372.22
              Discrimination.
              372.23
              Methods of competition.
              372.24
              Surety bond, depository agreement, escrow agreement.
              372.25
              Tariffs to be filed for charter trips.
              372.26
              [Reserved]
              372.27
              Name of operator.
              372.28
              Record retention.

              Subpart D—Operating Authorization
              372.30
              Application.
              372.31
              Issuance.
              372.32
              Effective period.
              372.33
              Nontransferability.
              Appendix A to Part 372—Overseas Military Personnel Charter Operator's Surety Bond Under Part 372 of the Regulations of the Department of Transportation (14 CFR Part 372)

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

            Source:
            SPR-54, 37 FR 11163, June 3, 1972, unless otherwise noted.

            Subpart A—General Provisions

              § 372.1
              Applicability.
              This part establishes the terms and conditions governing the furnishing of overseas military personnel charters in air transportation by direct air carriers or foreign air carriers and by overseas military charter operators. This part also relieves charter operators from the provisions of section 41102 of Title 49 of the United States Code (“the Statute”), for the purpose of enabling them to provide overseas military personnel charters utilizing aircraft chartered from such direct air carriers or foreign air carriers. Nothing contained in this part shall be construed as repealing or amending any provisions of any of the Department's regulations, unless the context so requires.
              [SPR-60, 37 FR 19122, Sept. 19, 1972, as amended at 60 FR 43529, Aug. 22, 1995]

              § 372.2
              Definitions.
              As used in this part, unless the context otherwise requires:

                Charter means overseas military personnel charter.

                Charter operator means overseas military personnel charter operator.

                Charter participant means a member of the overseas military personnel charter group.

                Charter price means the total amount of money paid by the charter participant to the charter operator for air transportation.

                Immediate family means only the following persons: the spouse, children, parents, parents of the spouse, children of the parents, and children of the parents of the spouse of (1) military personnel on active duty with the United States Armed Forces (including Coast Guard) stationed outside the contiguous states of the United States and the District of Columbia, and (2) civilian employees of the Department of Defense who are citizens of the United States and are stationed in a foreign country, or in a U.S. territory or possession, where U.S. military personnel are stationed.

                Overseas military personnel charter means a charter, either one-way or round-trip, limited to military personnel on active duty with the U.S. Armed Forces (including the Coast Guard), stationed outside the 48 contiguous States of the United States and the District of Columbia, and/or civilian employees of the Department of Defense who are citizens of the United States and are stationed in a foreign country, or in a U.S. territory or possession, where such U.S. military personnel are stationed, and/or the immediate families of the foregoing persons, where the following conditions are met: (a) All military personnel and civilian employees of the Department of Defense participating in the charter are on official furlough, leave, pass, or other authorized absence from duty, and (b) the transportation is between a place in the 48 contiguous States of the United States or the District of Columbia and a place in Alaska, Hawaii, or a territory or possession of the United States, or a foreign country in which military personnel of the United States are stationed: Provided, however, That nothing contained herein shall preclude an overseas military personnel charter operator from utilizing any unused space on an aircraft chartered by it pursuant to this part for the transportation, on a free or reduced-rate basis, of such charter operator's employees, directors, and officers, and the parents and immediate families of such persons, subject to the provisions of part 223 of this chapter.

                Overseas military personnel charter operator means any citizen of the United States, as defined in section 40102(a)(15) of 49 U.S.C. Subtitle VII authorized hereunder to engage in the formation of overseas military personnel charter groups and who complies with the provisions of this part.

                Person means any individual, firm, association, partnership, or corporation.
              [SPR-54, 37 FR 11163, June 3, 1972, as amended by SPR-69, 38 FR 14164, May 30, 1973; SPR-109, 41 FR 35158, Aug. 20, 1976; 60 FR 43529, Aug. 22, 1995; Doc. No. DOT-OST-2014-0140, 84 FR 15938, Apr. 16, 2019]

              § 372.3
              Waiver.

              A waiver of any of the provisions of this part may be granted by the Department upon its own initiative, or upon the submission by a charter operator of a written request therefor: Provided, That such a waiver is in the public interest and it appears to the Department that special or unusual circumstances warrant a departure from the provisions set forth herein.
              [SPR-54, 37 FR 11163, June 3, 1972, as amended by Doc. No. DOT-OST-2014-0140, 84 FR 15938, Apr. 16, 2019]

              § 372.4
              Enforcement.
              In case of any violation of the provisions of 49 U.S.C. Subtitle VII, or this part, or any other rule, regulation, or order issued under the Statute, the violator may be subject to a proceeding pursuant to section 46101 of 49 U.S.C. Subtitle VII before the Department, or sections 46106 through 46108 of 49 U.S.C. Subtitle VII before a U.S. district court, as the case may be, to compel compliance therewith, to civil penalties pursuant to the provisions of section 46301 of 49 U.S.C. Subtitle VII, or in the case of willful violation, to criminal penalties pursuant to the provisions of section 46316 of 49 U.S.C. Subtitle VII; or other lawful sanctions.
              [SPR-54, 37 FR 11163, June 3, 1972, as amended at 60 FR 43529, Aug. 22, 1995; Doc. No. DOT-OST-2014-0140, 84 FR 15938, Apr. 16, 2019]

              § 372.5
              Suspension or revocation of authority.
              The Department reserves the power to suspend the authority of any charter operator, without hearing, if it finds that such action is necessary in order to protect the rights of the traveling public, or to revoke such authority for cause.

            Subpart B—Exemption

              § 372.10
              Exemption.
              Charter operators are hereby relieved from the provisions of section 41102 of 49 U.S.C. Subtitle VII only if and so long as they comply with the provisions of this part and the conditions imposed herein, and to the extent necessary to permit them to organize and arrange overseas military personnel charters.
              [SPR-176, 46 FR 43960, Sept. 2, 1981, as amended at 60 FR 43529, Aug. 22, 1995; Doc. No. DOT-OST-2014-0140, 84 FR 15938, Apr. 16, 2019]

            Subpart C—Conditions and Limitations

              § 372.20
              Requirement of operating authorization.
              No person shall engage in air transportation as an overseas military personnel charter operator by organizing, providing, selling, or offering to sell, soliciting, or advertising an overseas military personnel charter or charters unless there is in force an operating authorization issued pursuant to § 372.31 authorizing such person to engage in such transportation.
              [Doc. No. 47939, 57 FR 40105, Sept. 2, 1992]

              § 372.21
              Solicitation.
              Solicitation of charter participants through advertising by charter operators shall be restricted to the following:
              (a) Radio and television stations operated by the U.S. Armed Forces;

              (b) Newspapers, periodicals, or other printed media disseminated and distributed primarily among military personnel or civilian employees of the Department of Defense: Provided, however, That any printed advertisement of a charter operator shall include a statement explaining that eligibility for participation in such charters is limited to military servicemen who are stationed outside of the 48 contiguous States and the District of Columbia, and/or U.S. citizen civilian DOD employees who are stationed in a foreign country, or a U.S. territory or possession, where U.S. military personnel are stationed, and their respective immediate families.

              § 372.22
              Discrimination.
              No charter operator shall make, give, or cause any undue or unreasonable preference or advantage to any particular person, port, locality, or description of traffic in air transportation in any respect whatsoever or subject any particular person, port, locality, or description of traffic in air transportation to any unjust discrimination or any undue or unreasonable prejudice or disadvantage in any respect whatsoever.

              § 372.23
              Methods of competition.
              No charter operator shall engage in unfair or deceptive practices or unfair methods of competition in air transportation or the sale thereof.

              § 372.24
              Surety bond, depository agreement, escrow agreement.
              (a) Before selling or offering to sell, soliciting or advertising any charter flight, a charter operator shall comply with one of the three following requirements:

              (1) The charter operator shall furnish a surety bond in an amount not less than the maximum fare held out for charter flights proposed to be operated during each calendar month multiplied by 90 percent of the number of available seats on such flights: Provided, however, That the liability of the surety to any charter participant shall not exceed the charter operator's applicable tariff fare. Such bond shall be filed with the Department not less than 45 days prior to the commencement of the calendar month covered by the bond together with a list of flights proposed to be operated during the month showing charter price, departure dates, equipment to be used for each flight and the seating capacity: Provided, however, That the amount of the bond shall be increased if additional charter flights are proposed or may be reduced if proposed charter flights are canceled, in which event a substitute bond and amended list of proposed flights shall be filed with the Department within 10 days of the date that the charter operator adds flights or cancels flights previously proposed, but in no event later than 2 days prior to the operation of any such additional charter flights; or
              (2) The charter operator shall:

              (i) Furnish and file with the Department a surety bond in the amount of $100,000 for the protection of the charter participants: Provided, however, That the liability of the surety to any charter participant shall not exceed the charter operator's applicable tariff fare; and

              (ii) Enter into an agreement with a bank, the terms of which shall include the following:

              (a) Each participant shall pay for his deposit and subsequent payments comprising the charter participant's tariff fare only by check or money order payable to such bank which shall maintain a separate accounting for each flight: Provided, however, That if the participant makes a cash deposit, the charter operator who receives such cash deposit shall forthwith remit to the designated bank a check for the full amount of the deposit;
              (b) The bank shall not pay the air carrier or foreign air carrier the charter price for the transportation earlier than 60 days (including day of departure) prior to the scheduled day of departure of the originating or returning flight, upon certification of the departure date and price by the charter operator;
              (c) The bank shall reimburse the charter operator for refunds made by the latter to the participants upon written notification from the charter operator;
              (d) If the charter operator notifies the bank that a flight has been canceled, the bank shall make the applicable refunds directly to the participants;
              (e) Except as provided in paragraph (a)(2)(ii)(c) of this section, the bank shall not pay any funds from the account to the charter operator prior to 2 banking days after completion of each flight when the balance in the account shall be paid to the charter operator upon certification of the completion date by the charter operator and direct air carrier;
              (f) Notwithstanding any provisions above, the amount of total cash deposits required to be maintained in the depository account of the bank may be reduced by one or both of the following: The amount of surety bond in the form prescribed herein in excess of the minimum bond required by paragraph (a)(2)(i) of this section; an escrow with the designated bank of Federal, State, or municipal bonds or other securities, consisting of certificates of deposit issued by banks having a stated policy of redeeming such certificates before maturity at the request of the holder (subject only to such interest penalties or other conditions as may be required by law), or negotiable securities which are publicly traded on a securities exchange, all such securities to be made payable to the escrow account: Provided, That such other securities shall be substituted in an amount no greater than 80 percent of the total market value of the escrow account at the time of such substitution: And provided, further, That should the market value of such other securities subsequently decrease, from time to time, then additional cash or securities qualified for investment hereunder shall promptly be added to the escrow account, in an amount equal to the amount of such decreased value; or
              (3) The charter operator shall:

              (i) Furnish and file with the Department a surety bond in the amount of $100,000 for the protection of the charter participants: Provided, however, That the liability of the surety to any charter participant shall not exceed the charter operator's applicable tariff fare; and
              (ii) Enter into an agreement with a bank, the terms of which shall include the following:
              (a) Whenever the gross amount of customers' deposits exceeds 25 percent of the charter operator's net worth, as computed under generally accepted accounting principles, the charter operator shall, on or before the 30th day of the succeeding month, place in escrow or in trust with the bank cash in an amount at least equal to the amount by which such deposits exceed 25 percent of its net worth: Provided, That negotiable securities may be substituted for cash, but the market value thereof shall at all times be not less than the amount of cash for which they are substituted;
              (b) The escrow agreement or the trust agreement between the bank and the operator shall not be effective until approved by the Department. Claims against the escrow or trust may be made only with respect to the nonperformance of air transportation.
              (b) As used in this section, the term bank means a bank insured by the Federal Deposit Insurance Corporation.

              (c) Any bond furnished under this section shall insure the financial responsibility of the charter operator and the supplying of the air transportation in accordance with the contract between the charter operator and the charter participants, and shall be in the form set forth as appendix A to this part. Such bond shall be issued by a bonding or surety company (1) whose surety bonds are accepted by the Interstate Commerce Commission under 49 CFR 1084.6; or (2) which is listed in Best's Insurance Reports (fire and casualty) with a general policyholders' rating of “A” or better. The bonding or surety company shall be one legally authorized to issue bonds of that type in the State in which the charter originates or in which the charter operator is incorporated. For purposes of this section, the term “State” includes any territory or possession of the United States, or the District of Columbia. The bond shall be specifically identified by the issuing surety with a company bond numbering system so that the Department may identify the bond with the specific charter or charters to which it relates: Provided, however, That these data may be set forth in an addendum attached to the bond which addendum must be signed by the charter operator and the surety company. It shall be effective on or before the date the operating authorization becomes effective. If the bond does not comply with the requirements of this section, or for any reason fails to provide satisfactory or adequate protection for the public, the Department will notify the direct air carrier and the charter operator, by registered or certified mail, stating the deficiencies of the bond. Unless such deficiencies are corrected within the time set forth in such notification, the subject charters shall in no event be operated.
              (d) Any bond furnished under this section shall provide that unless the charter participant files a claim with the charter operator, or, if he is unavailable, with the surety, within sixty (60) days after termination of the charter, the surety shall be released from all liability under the bond to such charter participant. The contract between the charter operator and the charter participants shall contain notice of this provision.
              (Secs. 101(3), 204(a), 401, and 402 of the Federal Aviation Act of 1958, as amended, 72 Stat. 737, 743, 754, and 757, as amended, 49 U.S.C. 1301, 1324, 1371 and 1372)
              [SPR-54, 37 FR 11163, June 3, 1972, as amended by SPR-60, 37 FR 19122, Sept. 19, 1972; SPR-63, 37 FR 22849, Oct. 26, 1972; SPR-95, 40 FR 52355, Nov. 10, 1975; Doc. No. 47939, 57 FR 40105, Sept. 2, 1992]

              § 372.25
              Tariffs to be filed for charter trips.
              Effective October 1, 1972, a charter operator shall not operate or sell or offer to sell, solicit or advertise, any charter trips unless such operator shall have on file with the Department a currently effective tariff showing all rates, fares, and charges for such charter trips and showing the rules, regulations, practices, and services in connection with such transportation.

              § 372.26
              [Reserved]

              § 372.27
              Name of operator.
              It shall be an express condition upon the exercise of the exemption herein granted and the operating authorizations issued hereunder, that the charter operator concerned, in holding out to the public and performing air transportation services, shall do so only in a name the use of which is authorized under the provisions of part 215 of this chapter.

              § 372.28
              Record retention. 1

                  1 Whoever, in any matter within the jurisdiction of any department or agency of the United States knowingly and willfully falsifies, conceals, or covers up by any trick, scheme, or device, a material fact, or makes any false, fictitious, or fraudulent statements or representations, or makes or uses any false writing of document knowing the same to contain any false, fictitious, or fraudulent statement or entry, shall be fined not more than $10,000 or imprisoned not more than 5 years, or both. Title 18, U.S.C. sec. 1001.

              (a) Every charter operator conducting a charter pursuant to this part shall retain for 2 years after completion of the charter or series of charters true copies of the following documents at its principal or general office in the United States:
              (1) All documents which evidence or reflect deposits made by, and refunds made to, each charter participant;
              (2) All statements, invoices, bills, and receipts from suppliers or furnishers of goods and services in connection with the charter or series of charters.
              (b) Every charter operator shall make the documents listed in this section available upon request by an authorized representative of the Department and shall permit such representative to make such notes and copies thereof as he deems appropriate.
              [SPR-54, 37 FR 11163, June 3, 1972, as amended by Doc. No. 47939, 57 FR 40105, Sept. 2, 1992]

            Subpart D—Operating Authorization

              § 372.30
              Application.
              (a) Application. Any person desiring to operate as an overseas military personnel charter operator may apply to the Department for an appropriate operating authorization. Contact the Office of International Aviation, Special Authorities Division, for filing instructions. The application shall be certified by a responsible official of such person and shall contain the following information:
              (1) Date;
              (2) Name of applicant, trade names, and name in which authorization is to be issued;
              (3) Address of principal office and mailing address;
              (4) Form of organization (i.e., corporation, partnership, etc.), State under whose laws company is authorized to operate and date company was formed;
              (5) A list containing the names of each officer, director, partner, owner, or member of applicant, and holder of more than 5 percent of outstanding stock if a corporation, or owner of more than a 5-percent interest if other than a corporation; an indication as to whether or not 75 percent or more of the voting interest is owned or controlled by citizens of the United States or one of its possessions; if more than 5 percent of applicant's stock is held by a corporation, an indication must be made as to whether or not 75 percent or more of the voting interest in such corporation is owned or controlled by citizens of the United States or one of its possessions;
              (6) A description of current business activities and of former business experience in, or related to, the transportation field;
              (7) Description of operating authority granted applicant by agencies of the U.S. Government (such as customs broker, surface or air freight forwarder, motor carrier, ocean freight forwarder, etc.), and, if applicable, reasons for revocation or other termination;
              (8) List of names of the officers, owners, etc., of applicants who have at any time applied for any type of authority or registration from the Civil Aeronautics Board or the Department of Transportation and, if applicable, reasons for revocation or other termination;
              (9) List of officers, owners, etc., of applicants who have at any time been employed by or associated with any air carrier authorized to operate by the Civil Aeronautics Board or the Department of Transportation indicating dates of employment and capacity in which employed;
              (10) Any additional information in support of application;
              (11) Balance sheet as of a date not more than 3 months prior to application and profit and loss statement for the full year ending as of date of balance sheet;
              (12) Brief account of any arrangement by which applicant will have available financial sources and facilities of other companies or individuals;
              (13) The charter operator's surety bond and, where applicable, a copy of the depository, escrow or trust agreement with a bank as provided in § 372.24. 2

                  2 The surety bond and, where applicable, a copy of the depository escrow, or trust agreement with the bank should not be filed with the Department until the applicant is notified by the Department to do so.

              (b) Additional information. The applicant shall also submit such other additional information pertinent to its proposed activities as may be requested by the Department with respect to any individual application.
              [SPR-54, 37 FR 11163, June 3, 1972, as amended by Doc. No. 47939, 57 FR 40105, Sept. 2, 1992; 60 FR 43529, Aug. 22, 1995; Doc. No. DOT-OST-2014-0140, 84 FR 15938, Apr. 16, 2019]

              § 372.31
              Issuance.
              (a) If, after the filing of an application for an operating authorization, it appears that the applicant is capable of performing the air transportation authorized by this part as an overseas military personnel charter operator and of conforming to the provisions of the Act and all rules and requirements thereunder, and that the conduct of such operations by the applicant will not be inconsistent with the public interest, the applicant will be notified by letter. Such notification will advise the applicant that, upon the filing of a valid tariff pursuant to § 372.25, an operating authorization will be issued to the applicant.
              (b) If, after the filing of an application for an operating authorization, it appears that the applicant has not made a due showing of capability or that the conduct of operations by the applicant might otherwise be inconsistent with the public interest, the Department shall by letter notify the applicant of its findings to that effect. The Department may dismiss any such application unless within 30 days of the date of the mailing of such letter, the applicant has in writing requested reconsideration and submitted such additional information as it believes will make the necessary showing, or requested that the application be assigned for hearing, in which case the applicant shall outline the evidence to be presented at such hearing and shall show the need for hearing in order properly to present its case.
              (c) In the event that reconsideration or hearing is requested, the Department may, without notice or hearing, enter an order of approval or of disapproval in accordance without notice or hearing, enter an order of approval or of disapproval in accordance with its determination of the public interest upon the showing made, or on its own initiative may assign the application for hearing.

              § 372.32
              Effective period.
              Each operating authorization shall be effective upon the date specified therein, and shall continue in effect, unless sooner suspended or revoked, during such period as the authority provided by this part shall remain in effect, or if issued for a limited period of time, shall continue in effect until the expiration thereof unless sooner suspended or revoked.

              § 372.33
              Nontransferability.
              (a) An operating authorization shall be nontransferable and shall be effective only with respect to the person named therein or his successor by operation of law, subject to the provisions of this section. The following persons may temporarily continue operations under an operating authorization issued in the name of another person, for a maximum period of 6 months from the effective date of succession, by giving written notice of such succession to the Department within 60 days after the succession:
              (1) Administrators or executors of deceased persons;
              (2) Guardians of incapacitated persons;
              (3) Surviving partner or partners collectively of dissolved partnerships; and
              (4) Trustees, receivers, conservators, assignees, or other such persons who are authorized by law to collect and preserve the property of financially disabled persons.
              (b) All operations by successors, as above authorized, shall be performed in the name or names of the prior holder of the operating authorization and the name of the successor, whose capacity shall also be designated. Any successor desiring to continue operations after the expiration of the 6-month period above authorized must file an application for a new operating authorization within 120 days after such succession. If a timely application is filed, such successor may continue operations until final disposition of the application by the Department.

              Pt. 372, App. A
              Appendix A to Part 372—Overseas Military Personnel Charter Operator's Surety Bond Under Part 372 of the Regulations of the Department of Transportation (14 CFR Part 372)
              Know all persons by these presents, that we ___ (name of charter operator) of ___ (address) as Principal (hereinafter called “Principal”), and ___ (name of surety) a corporation created and existing under the laws of the State of ___ (State) as Surety (hereinafter called “Surety”) are held and firmly bound unto the United States of America in the sum of ___ (see § 372.24(a), 14 CFR part 372) for which payment, well and truly to be made, we bind ourselves and our heirs, executors, administrators, successors, and assigns, jointly and severally firmly by these presents.
              Whereas Principal is an overseas military personnel charter operator pursuant to the provisions of part 372 of the Department's regulations and other rules and regulations of the Department relating to security for the protection of charter participants, and has elected to file with the Department of Transportation such a bond as will insure financial responsibility with respect to all monies received from charter participants for services in connection with overseas military personnel charters to be operated subject to part 372 of the Department's Special Regulations in accordance with contracts, agreements, or arrangements therefor, and
              Whereas this bond is written to assure compliance by Principal as an authorized charter operator with part 372 of the Department's regulations, and other rules and regulations of the Department relating to security for the protection of charter participants, and shall inure to the benefit of any and all charter participants to whom Principal may be held legally liable for any damages herein described.
              Now, therefore, the condition of this obligation is such that if Principal shall pay or cause to be paid to charter participants any sum or sums for which Principal may be held legally liable by reason of Principal's failure faithfully to perform, fulfill and carry out all contracts, agreements, and arrangements made by Principal while this bond is in effect with respect to the receipt of moneys from charter participants, and proper disbursement thereof pursuant to and in accordance with the provisions of part 372 of the Department's regulations, then this obligation shall be void, otherwise to remain in full force and effect.
              The liability of Surety with respect to any charter participant shall not exceed the charter price paid by or on behalf of such participant.
              The liability of Surety shall not be discharged by any payment or succession of payments hereunder, unless and until such payment or payments shall amount in the aggregate to the penalty (face amount) of the bond, but in no event shall Surety's obligation hereunder exceed the amount of said penalty.
              Surety agrees to furnish written notice to the Office of International Aviation, Department of Transportation, forthwith of all suits or claims made and judgments rendered, and payments made by Surety under this bond.
              This bond shall cover the following Charters: 1

                  1 These data may be supplied in an addendum attached to the bond.

              Surety company's bond No.
              Date of flight departure
              Place of flight departure
              This bond is effective on the ___ of ___, 20___, 12:01 a.m., standard time at the address of Principal as stated herein and as hereinafter provided. Principal or Surety may at any time terminate this bond by written notice to: U.S. Air Carrier Licensing/Special Authorities Division, Office of International Aviation, U.S. Department of Transportation, 1200 New Jersey Avenue SE, Washington, DC 20590, such termination to become effective thirty (30) days after the actual receipt of said notice by the Department. Surety shall not be liable hereunder for the payment of any damages hereinbefore described which arise as a result of any contracts, agreements, undertakings, or arrangements for the supplying of transportation and other services made by Principal after the termination of this bond as herein provided, but such termination shall not affect the liability of the bond hereunder for the payment of any damages arising as a result of contracts, agreements, or arrangements for the supplying of transportation and other services made by Principal prior to the date that such termination becomes effective. Liability of Surety under this bond shall in all events be limited only to a charter participant or charter participants who shall within sixty (60) days after the termination of the particular charter described herein give written notice of claim to the charter operator or, if it is unavailable, to Surety, and all liability on this bond shall automatically terminate sixty (60) days after the termination date of each particular charter covered by this bond except for claims made in the time provided herein.
              In witness whereof, the said Principal and Surety have executed this instrument on the ___ day of ___, ___.
              PRINCIPAL
              Name

              By: Signature and title
              Witness

              SURETY
              Name
              By: Signature and title
              Witness
              Only corporations may qualify to act as surety and they must meet the requirements set forth in § 372.24(c) of part 372.
              [Doc. No. DOT-OST-2014-0140, 84 FR 15939, Apr. 16, 2019]

          Pt. 374
          PART 374—IMPLEMENTATION OF THE CONSUMER CREDIT PROTECTION ACT WITH RESPECT TO AIR CARRIERS AND FOREIGN AIR CARRIERS

            Sec.
            374.1
            Purpose.
            374.2
            Applicability.
            374.3
            Compliance with the Consumer Credit Protection Act and regulations.
            374.4
            Enforcement procedure.

            Authority:
            15 U.S.C. 1601-1693r; 49 U.S.C., Subtitle VII; and 12 CFR parts 1002 and 1026.

            Source:
            SPR-175, 46 FR 43960, Sept. 2, 1981, unless otherwise noted.

            § 374.1
            Purpose.
            The purpose of this part is to state the Department of Transportation's responsibility to enforce air carrier and foreign air carrier compliance with Subchapters I, III, IV, V and VI of the Consumer Credit Protection Act and Regulations B and Z of the Board of Governors of the Federal Reserve System.
            [62 FR 25841, May 12, 1997]

            § 374.2
            Applicability.
            This part is applicable to all air carriers and foreign air carriers engaging in consumer credit transactions.

            § 374.3
            Compliance with the Consumer Credit Protection Act and regulations.
            (a) Each air carrier and foreign air carrier shall comply with the requirements of the Consumer Credit Protection Act, 15 U.S.C. 1601-1693r. Any violation of the following requirements of that Act will be a violation of 49 U.S.C. Subtitle VII, enforceable by the Department of Transportation:
            (1) The Truth in Lending Act, as supplemented by the Fair Credit Billing Act, 15 U.S.C. 1601-1667, requiring disclosure of credit terms to the consumer and prohibiting inaccurate or unfair credit billing and credit card practices.
            (2) The Fair Credit Reporting Act, 15 U.S.C. 1681-1681 setting forth requirements to be met by consumer credit reporting agencies and persons who use consumer credit reports.
            (b) Each air carrier and foreign air carrier shall comply with the requirements of Regulation B, 12 CFR part 1002, and Regulation Z, 12 CFR part 1026, of the Board of Governors of the Federal Reserve Board. Any violation of the requirements of those regulations will be a violation of 49 U.S.C. Subtitle VII, enforceable by the Department of Transportation.
            [62 FR 25841, May 12, 1997, as amended by Doc. No. DOT-OST-2014-0140, 84 FR 15939, Apr. 16, 2019]

            § 374.4
            Enforcement procedure.
            The statutes and regulations referred to in § 374.3 may be enforced by an enforcement procedure as set forth in part 302 of this chapter or by the assessment of civil penalties under 49 U.S.C. 46301.
            [62 FR 25842, May 12, 1997]

          Pt. 374a
          PART 374a—EXTENSION OF CREDIT BY AIRLINES TO FEDERAL POLITICAL CANDIDATES

            Sec.
            374a.1
            Purpose.
            374a.2
            Applicability.
            374a.3
            Definitions.
            374a.4
            Conditions governing extension of unsecured credit.
            374a.5
            Exemption authority.
            374a.6
            Reporting requirements.
            374a.7
            Record retention requirements.
            374a.8
            Prospective application of part.

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

            Source:
            SPR-53, 37 FR 9388, May 10, 1972, unless otherwise noted.

            § 374a.1
            Purpose.

            The purpose of this part is to issue rules pursuant to the Federal Election Campaign Act of 1971, as amended, in accordance with the Department's responsibility thereunder.
            [Doc. No. DOT-OST-2014-0140, 84 FR 15939, Apr. 16, 2019]

            § 374a.2
            Applicability.
            This part shall be applicable to all air carriers as defined herein.
            [SPR-53, 37 FR 9388, May 10, 1972, as amended by Doc. No. DOT-OST-2014-0140, 84 FR 15939, Apr. 16, 2019]

            § 374a.3
            Definitions.

              Adequate security means (a) a bond, issued by a surety meeting the standards prescribed for sureties in part 380 of this chapter, in an amount not less than one hundred and fifty percent (150%) of the credit limit established by the air carrier for the candidate, or the person acting on behalf of the candidate, as the case may be, by the terms of which bond the surety undertakes to pay to the air carrier any and all amounts (not exceeding the face amount of the bond) for which the assured candidate or the assured person acting on behalf of a candidate, as the case may be, is or may become legally liable to the air carrier for transportation, as defined in this part; or (b) collateral with a market value equal to one hundred and fifty percent (150%) of the established credit limit for such account, which collateral must be deposited in escrow and must consist of Federal, State, or municipal bonds or other negotiable securities which are publicly traded on a securities exchange.

              Air carrier means any air carrier holding a certificate of public convenience and necessity issued under 49 U.S.C. 41102.

              Candidate means an individual who seeks nomination for election, or election, to Federal office, whether or not such individual is elected. For purposes of this part, an individual shall be deemed to seek nomination for election, or election, if he has (a) taken the action necessary under the law of a State to qualify himself for nomination for election, or election, to Federal office; or (b) received contributions or made expenditures, or given his consent for any other person to receive contributions or make expenditures, with a view to bringing about his nomination for election, or election, to such office.

              Election shall have reference to (a) a general, special, primary, or runoff election; (b) a convention or caucus of a political party held to nominate a candidate; (c) a primary election held for the selection of delegates to a national nominating convention of a political party; or (d) a primary election held for the expression of a preference for the nomination of persons for election to Federal office.

              Established credit limit means the dollar limit of credit established by the carrier extending credit.

              Federal office means the office of President or Vice President of the United States, or of Senator or Representative in, or Delegate or Resident Commissioner to, the Congress of the United States.

              Person acting on behalf of a candidate means (a) a political committee acting on behalf of, or a person employed by such candidate or by such political committee to act on behalf of, such candidate in connection with such candidate's campaign for nomination for election, or election, to Federal office; (b) a person acting under a contract with, or as an agent of, such candidate or political committee to engage in activities in connection with such candidate's campaign for nomination for election, or election, to Federal office; or (c) a person for whom such candidate or political committee pays, directly or indirectly, for services purchased by such person. The term includes persons acting on behalf of more than one candidate.

              Payment in advance means payment by cash, check, money order, or by credit card (if the issuer of such card is not an air carrier or a subsidiary, parent, or affiliate thereof) prior to performance of such transportation by an air carrier.

              Political committee means any committee, association, corporation, or organization which accepts contributions, or makes expenditures, for the purpose of supporting a candidate or candidates for nomination for election, or election, to Federal office.

              Transportation means (a) the carriage of persons or property (including services connected therewith) for compensation or hire to or from any place in the United States, or (b) the lease or rental of aircraft, with or without crew.
            [SPR-53, 37 FR 9388, May 10, 1972, as amended by SPR-173, 45 FR 80099, Dec. 3, 1980; Doc. No. DOT-OST-2014-0140, 84 FR 15939, Apr. 16, 2019]

            § 374a.4
            Conditions governing extension of unsecured credit.
            (a) Unless adequate security is posted, or full payment in advance is made, no air carrier shall provide transportation to any person it knows, or has reasons to know, is a candidate or a person acting on behalf of such candidate, in connection with the campaign of such candidate, except in accordance with, and subject to, the following conditions:
            (1) At least once a month the air carrier shall submit to each such candidate or person a statement covering all unsecured credit extended to such candidate or person, as the case may be (whether in connection with the campaign of such candidate or otherwise.)
            (2) Such statements shall be mailed no later than the second business day following the last day of the billing period, covered by the statement.
            (3) The amount of indebtedness shown on each such statement shall be payable in full no later than 25 days after the last day of the billing period, after which time the indebtedness shall be overdue.
            (4)(i) Unsecured credit shall not be extended by an air carrier to a candidate, or to any person acting on his behalf in connection with the campaign of such candidate, so long as any overdue indebtedness of such candidate to such air carrier shall remain unpaid, in whole or in part, or so long as such air carrier shall know that any overdue indebtedness of such candidate to any other air carrier remains unpaid, in whole or in part.
            (ii) Unsecured credit shall not be extended by an air carrier to a person acting on behalf of a candidate, for transportation in connection with the campaign of such candidate, so long as any overdue indebtedness of such person to such carrier shall remain unpaid, in whole or in part, or so long as such air carrier shall know that any overdue indebtedness of such person to any other air carrier remains unpaid, in whole or in part.
            (5)(i) With respect to transportation in connection with the campaign of any candidate to be performed after June 1, 1972, unsecured credit shall not be extended by an air carrier to any person acting on behalf of such candidate unless the carrier is authorized in writing by such candidate to extend such credit. The foregoing sentence shall not be construed as requiring the candidate to assume liability to the carrier for credit so extended.
            (ii) Within 7 days after indebtedness becomes overdue for any unsecured credit extended by an air carrier to a person acting on behalf of a candidate in accordance with paragraph (a)(5)(i) of this section, the carrier shall notify the candidate in writing of the amount of the overdue indebtedness, and, unless paid in full within 25 days after the date of such notice, the overdue indebtedness shall be deemed to be the overdue indebtedness of the candidate, for the purposes of paragraph (b)(4)(i) of this section.
            (b) It shall be presumed that a candidate or person acting on behalf of a candidate intends to use transportation in connection with the campaign of such candidate for nomination for election, or election, to Federal office.
            (Secs. 204, 407 of the Federal Aviation Act of 1958, as amended, 72 Stat. 743, 766; 49 U.S.C. 1324, 1377. Sec. 401 of the Federal Election Campaign Act of 1971, 86 Stat. 19, 2 U.S.C. 451)
            [SPR-53, 37 FR 9388, May 10, 1972, as amended by SPR-169, 45 FR 25796, Apr. 16, 1980; SPR-172, 45 FR 53454, Aug. 12, 1980]

            § 374a.5
            Exemption authority.
            Air carriers are exempt from the following provisions of 49 U.S.C. Subtitle VII:
            (a) Section 41510.
            (b) Section 41310, and any and all other provisions of 49 U.S.C. Subtitle VII, to the extent necessary to enable air carriers to comply with the provisions of this part.
            [Doc. No. DOT-OST-2014-0140, 84 FR 15939, Apr. 16, 2019]

            § 374a.6
            Reporting requirements.
            (a) Air carriers shall make monthly reports to the Bureau of Transportation Statistics with respect to the credit for transportation furnished to candidates, or persons acting on behalf of candidates, during the period from 6 months before nomination, if any, or from 6 months before election, until the date of election. After that 6-month period, air carriers shall file such a report with the Bureau of Transportation Statistics not later than the 20th day following the end of the calendar month in which the election or nomination takes place, and thereafter when any change occurs in that report, until a negative report is filed showing that no debt for such extension of credit is owed to the carrier.
            (b)(1) A separate report shall be filed for each candidate with an aggregate indebtedness balance of over $5,000 on the last day of the month to which the report pertains. The report shall cover all debts incurred by the candidate, whether or not incurred in connection with his campaign, and all debts incurred by persons acting on his behalf in connection with such campaign. The indebtedness accounts reported shall be those which the air carrier knows, or has reason to know, have been incurred by or on behalf of a candidate; and it shall be presumed that the transportation for which the indebtedness has been incurred is intended to be used in connection with the campaign of such candidate for nomination for election, or election, to Federal office.
            (2) The reports required by this paragraph (b) shall be filed with the Office of Airline Information not later than the 20th day following the end of the calendar month to which the report pertains. They shall include the following data: (i) Name of account; (ii) the credit limit established for such account; (iii) the balance, if any, of the amount payable for transportation not paid for in advance; (iv) any unpaid balance of the charges for such transportation as of the last day of the month covered by the report, and the length of time that such balance has remained unpaid; and (v) a description of the type and value of any bond, collateral, or other security securing such unpaid balance.
            (3) The report required by this paragraph (b) shall be in the form attached hereto as appendix A. 1

                1 Filed as part of the original document.

            (c) A separate report shall be filed for each person acting on behalf of any candidate, if the aggregate indebtedness balance of such person to the reporting air carrier (including all debts incurred by such person, whether or not incurred in connection with the campaign of a candidate, as defined in this part) is over $5,000 on the last day of the month to which the report pertains. The report shall be filed with the Office of Airline Information not later than the 20th day following the end of the calendar month to which the report pertains and shall include (1) the credit limitation established for such person; (2) the balance, if any, of the amount payable for transportation not paid for in advance; (3) any unpaid balance of the charges for such transportation as of the last day of the month covered by the report, and the length of time that such balance has remained unpaid; and (4) a description of the type and value of any bond, collateral, or other security securing such unpaid balance.
            [SPR-53, 37 FR 9388, May 10, 1972, as amended by SPR-190, 47 FR 32414, July 27, 1982; 60 FR 66726, Dec. 26, 1995]

            § 374a.7
            Record retention requirements.
            (a) Every air carrier subject to the part shall retain for 2 years after a Federal election true copies of the following documents at its principal or general office in the United States:
            (1) All documents which evidence or reflect the furnishing of transportation to a candidate for political office or a person acting on his behalf;
            (2) All statements, invoices, bills, and receipts with respect to the furnishing of such transportation referred to in paragraph (a)(1) of this section.
            (b) Every air carrier shall make the documents listed in this section available in the United States upon request by an authorized representative of the DOT and shall permit such representative to make such notes and copies thereof as he deems appropriate.
            [SPR-53, 37 FR 9388, May 10, 1972, as amended at 60 FR 66726, Dec. 26, 1995]

            § 374a.8
            Prospective application of part.
            The provisions of this part shall apply only to the extension of credit by an air carrier to a candidate, or to a person acting on his behalf, which is made subsequent to the effective date of this part, and shall not be applicable to debts incurred prior to such date but which are unpaid as of the effective date of this part. The provisions of this part will be applicable, however, to all credit transactions which occur subsequent to the effective date of the part even though the credit account in which the transaction takes place was opened prior to the effective date of the part.

          Pt. 375
          PART 375—NAVIGATION OF FOREIGN CIVIL AIRCRAFT WITHIN THE UNITED STATES

              Subpart A—General
              Sec.
              375.1
              Definitions.
              375.2
              Applicability.
              375.3
              [Reserved]

              Subpart B—Authorization
              375.10
              Certain foreign civil aircraft registered in ICAO member states.
              375.11
              Other foreign civil aircraft.

              Subpart C—Rules Generally Applicable
              375.19
              Nature of privilege conferred.
              375.20
              Airworthiness and registration certificates.
              375.21
              Airmen.
              375.22
              Flight operations.
              375.23
              Maximum allowable weights.
              375.24
              Entry and clearance.
              375.25
              Unauthorized operations.
              375.26
              Waiver of sovereign immunity.

              Subpart D—Authorized Operations
              375.30
              Operations other than commercial air operations.
              375.31
              Demonstration flights of foreign aircraft.
              375.32
              Flights incidental to agricultural and industrial operations outside the United States.
              375.33
              Transit flights, irregular operations.
              375.34
              Indoctrination training.
              375.35
              Free transportation.
              375.36
              Lease of foreign civil aircraft without crew.
              375.37
              Certain business aviation activities using U.S.-registered foreign civil aircraft.
              375.38
              Other foreign civil aircraft: Small unmanned aircraft operated exclusively as model aircraft.

              Subpart E—Operations Requiring Specific Preflight Authorization of Filing
              375.40
              Permits for commercial air operations.
              375.41
              Agricultural and industrial operations within the United States.
              375.42
              Transport operations—occasional planeload charters.
              375.43
              Application for foreign aircraft permit.
              375.44
              Issuance of permit.
              375.45
              Records and reports of occasional planeload charters.

              Subpart F—Transit Flights.
              375.50
              Transit flights; scheduled international air service operations.

              Subpart G—Penalties
              375.60
              Penalties.

              Subpart H—Special Authorization
              375.70
              Special authorization.
              Appendix A to Part 375—Form 4509

            Authority:
            49 U.S.C. 40102, 40103, and 41703.

            Source:
            OST Doc. No. 42547, 51 FR 7254, Mar. 3, 1986, unless otherwise noted.

            Subpart A—General

              § 375.1
              Definitions.
              As used in this part:

                Air transportation means the carriage by aircraft of persons or property as a common carrier for compensation or hire or the carriage of mail by aircraft in interstate, overseas, or foreign commerce (see 49 U.S.C. 40102 (a)(5) and (a)(24));

                Category shall indicate a classification of aircraft such as airplane, helicopter, glider, etc.;

                Commercial air operations shall mean operations by foreign civil aircraft engaged in flights for the purpose of crop dusting, pest control, pipeline patrol, mapping, surveying, banner towing, skywriting, or similar agricultural and industrial operations performed in the United States, and any operations for remuneration or hire to, from or within the United States including air carriage involving the discharging or taking on of passengers or cargo at one or more points in the United States, including carriage of cargo for the operator's own account if the cargo is to be resold or otherwise used in the furtherance of a business other than the business of providing carriage by aircraft, but excluding operations pursuant to foreign air carrier permits issued under 49 U.S.C. 41301, exemptions, and all other operations in air transportation.

                Exemption means an exemption granted, under 49 U.S.C. 40109, authorizing air transportation by a foreign air carrier;

                Foreign air carrier permit means a permit authorizing foreign air transportation by a foreign air carrier pursuant to 49 U.S.C. 41301;

                Foreign aircraft permit means a permit authorizing navigation of foreign civil aircraft in the United States pursuant to 49 U.S.C. 41703 and this part;

                Foreign civil aircraft means (a) an aircraft of foreign registry that is not part of the armed forces of a foreign nation, or (b) a U.S.-registered aircraft owned, controlled or operated by persons who are not citizens or permanent residents of the United States;

                Stop for non-traffic purposes means a landing for any purpose other than taking on or discharging passengers, cargo or mail, and does not include landings for embarking or disembarking stopover passengers or transshipped cargo or mail, or for other than strictly operational purposes.

                Type means all aircraft of the same basic design including all modifications thereto except those modifications that result in a change in handling or flight characteristics.
              [OST Doc. No. 42547, 51 FR 7254, Mar. 3, 1986, as amended at 71 FR 15328, Mar. 28, 2006; Doc. No. DOT-OST-2014-0140, 84 FR 15940, Apr. 16, 2019]

              § 375.2
              Applicability.
              The provisions of this part regulate the admission to, and navigation in, the United States of foreign civil aircraft other than aircraft operated under authority contained in a foreign air carrier permit or exemption. This part also contains provisions that specify the extent to which certain classes of flight operations by foreign civil aircraft may be conducted, and the terms and conditions applicable to such operations. Nothing in this part shall authorize any foreign civil aircraft to engage in air transportation nor be deemed to provide for such authorization by the Department.

              § 375.3
              [Reserved]

            Subpart B—Authorization

              § 375.10
              Certain foreign civil aircraft registered in ICAO member states.
              Subject to the observance of the applicable rules, conditions, and limitations set forth in this part:
              (a) Foreign civil aircraft manufactured in a State that at the time of manufacture was a member of the International Civil Aviation Organization (ICAO), and registered in a State that at the time of flight is a member of ICAO, may be navigated in the United States;
              (b) Foreign civil aircraft manufactured in a State that at the time of manufacture was not a member of ICAO, and registered in a State that at the time of flight is a member of ICAO, may be navigated in the United States,
              (1) If the State of registry has notified ICAO that the requirements under which it issues or renders valid certificates of airworthiness are equal to or above the minimum standards established pursuant to the Chicago Convention, or
              (2) If such notification has not been made to ICAO at the time of flight, there is on file with the Department a statement by the State of registry that, with regard to aircraft of the type that is proposed to be operated hereunder, the requirements under which certificates of airworthiness are issued or rendered valid are equal to or above the minimum standards established pursuant to the Chicago Convention.

              § 375.11
              Other foreign civil aircraft.

              A foreign civil aircraft, including unmanned aircraft as defined in § 1.1 of this title, other than those referred to in § 375.10 may be navigated in the United States only when:

              (a) The operation is authorized by the Department under the provisions of this part, and
              (b) The aircraft complies with any applicable airworthiness standards of the Federal Aviation Administration for its operation.
              [80 FR 78648, Dec. 16, 2015]

            Subpart C—Rules Generally Applicable

              § 375.19
              Nature of privilege conferred.
              The provisions of this part, and of any permit issued hereunder, together with 49 U.S.C. 41703, are designed, among other purposes, to carry out the international undertakings of the United States in the Chicago Convention, in particular Article 5. That article gives foreign aircraft the privilege of “taking on or discharging passengers, cargo or mail” subject to the right of the State where such embarkation or discharge takes place to impose such regulations, conditions or limitations as it may consider desirable. The U.S. Congress by the 1953 amendment to section 6 of the Air Commerce Act of 1926, now designated as 49 U.S.C. 41703, authorizes the Department to permit such operations only where conditions of reciprocity and the interest of the public in the United States are met. Thus, the operator of any foreign registered aircraft is not entitled as a matter of right to the issuance, renewal or freedom from modification or change in a permit issuable pursuant to this authority. Accordingly, any authority conferred by this part may be withheld, revoked, amended, modified, restricted, suspended, withdrawn, or canceled by the Department in the interest of the public of the United States, without notice or hearing.
              [OST Doc. No. 42547, 51 FR 7254, Mar. 3, 1986, as amended by Doc. No. DOT-OST-2014-0140, 84 FR 15940, Apr. 16, 2019]

              § 375.20
              Airworthiness and registration certificates.
              Foreign civil aircraft shall carry currently effective certificates of registration and airworthiness issued or rendered valid by the country of registry and shall display the nationality and registration markings of that country. However, a foreign civil aircraft may carry, in lieu of such certificate of airworthiness, an effective special flight authorization issued by the Federal Aviation Administration for the operations being performed.

              § 375.21
              Airmen.
              Members of the flight crew of a foreign civil aircraft shall have in their personal possession valid airman certificates or licenses authorizing them to perform their assigned functions in the aircraft and for the operation involved issued or rendered valid by the country of registry of the aircraft or by the United States. No such flight crew members shall perform any flight duty within the United States that they are not currently authorized to perform in the country issuing or validating the certificate.

              § 375.22
              Flight operations.
              Flights of foreign civil aircraft in the United States shall be conducted in accordance with the currently applicable rules of the Federal Aviation Administration in 14 CFR chapter I.
              [OST Doc. No. 42547, 51 FR 7254, Mar. 3, 1986, as amended by Doc. No. DOT-OST-2014-0140, 84 FR 15940, Apr. 16, 2019]

              § 375.23
              Maximum allowable weights.
              Foreign civil aircraft that are permitted to navigate in the United States on the basis of foreign airworthiness certificates must conform to the limitations on maximum certificated weights prescribed or authorized for the particular variation of the aircraft type, and for the particular category of use, by the country of manufacture of the aircraft type involved.

              § 375.24
              Entry and clearance.
              All U.S. entry and clearance requirements for aircraft, passengers, crews, baggage and cargo shall be followed.

              § 375.25
              Unauthorized operations.

              No foreign civil aircraft shall be navigated in the United States unless authorized by this part. Commercial air operations (other than those authorized by § 375.36) shall not be undertaken without a permit issued by the Department.

              § 375.26
              Waiver of sovereign immunity.
              Owners and operators of aircraft operated under this part that are engaged in proprietary of commercial activities waive any defense of sovereign immunity from suit in any action or proceeding instituted against any of them in any court or other tribunal in the United States for any claim relating to that operation.

            Subpart D—Authorized Operations

              § 375.30
              Operations other than commercial air operations.
              Foreign civil aircraft that are not engaged in commercial air operations into, out of, or within the United States may be operated in the United States and may carry non-revenue traffic to, from or between points in the United States.

              § 375.31
              Demonstration flights of foreign aircraft.
              Flights of foreign civil aircraft within the United States may be made for the purpose of demonstration of the aircraft or any component thereof (including demonstrations at airshows), provided no persons, cargo or mail are carried for remuneration or hire.

              § 375.32
              Flights incidental to agricultural and industrial operations outside the United States.
              Foreign civil aircraft that are engaged in agricultural or industrial operations to be performed wholly outside the United States may be navigated into, out of, and within the United States in connection with those operations provided that the aircraft is not at the time engaged in the carriage of passengers, cargo, or mail for remuneration or hire.

              § 375.33
              Transit flights, irregular operations.
              Foreign civil aircraft carrying passengers, property or mail for remuneration or hire, but not engaged in scheduled international air services, are authorized to navigate nonstop across the territory of the United States and to make stops for non-traffic purposes. The navigation of foreign civil aircraft in the United States is not authorized under this section when the elapsed time between landing and takeoff at a stop in the United States exceeds 24 hours and passengers are permitted to leave the airport or when passengers, property or mail are transferred to another aircraft. Flights involving stops under such circumstances may, however, be performed in the case of emergency relating to the safety of the aircraft, passengers, cargo or crew.
              [OST Doc. No. 42547, 51 FR 7254, Mar. 3, 1986, as amended by Doc. No. DOT-OST-2014-0140, 84 FR 15940, Apr. 16, 2019]

              § 375.34
              Indoctrination training.
              Foreign civil aircraft may be operated in the United States for the purpose of giving indoctrination training in the operation of the aircraft concerned to a buyer or a buyer's employees or designees. This section does not, however, authorize foreign civil aircraft to be used within the United States for the purpose of flight instruction for remuneration or hire.

              § 375.35
              Free transportation.
              (a) Foreign civil aircraft may be navigated in the United States by a foreign air carrier for the transportation of persons and property specified in paragraph (b) of this section over the following non-traffic segments provided such transportation is not for compensation or hire:
              (1) Between two or more points in the United States;
              (2) Between a point in the United States named in the carrier's section 41301 permit or exemption, and a point outside the United States not so named, when authorized in accordance with the provisions of part 216 of this chapter to carry blind sector traffic to or from such unnamed foreign point; and

              (3) Between a point in the United States and a point outside thereof when the carrier lands at the United States point for non-traffic purposes in exercise of the privilege granted under the International Air Services Transit Agreement.

              (b) Free transportation may be provided under this section for the following categories of persons and property:
              (1) Directors, officers and employees, and their parents and immediate families, of the foreign air carrier operating the aircraft;
              (2) Directors, officers and employees, and their parents and immediate families, of an air carrier or another foreign air carrier traveling pursuant to a pass interchange arrangement;
              (3) Travel agents being transported for the purpose of familiarizing themselves with the carrier's services, if the agents are under no obligation to sell the transporting carrier's services;
              (4) Witnesses and attorneys attending any legal investigation in which any such foreign air carrier is involved;
              (5) Persons injured in aircraft accidents and physicians and nurses attending such persons;
              (6) Any persons or property with the object of providing relief in cases of general epidemic, natural disaster or other catastrophe;
              (7) Any person who has the duty of guarding foreign government officials travelling on official business; and
              (8) Guests of a foreign air carrier (including members of the press) on delivery flights of newly-acquired or newly-renovated aircraft.
              (c) A charge reasonably related to the value of meals and beverages furnished enroute shall not be deemed to constitute compensation or hire for purposes of this section.
              [OST Doc. No. 42547, 51 FR 7254, Mar. 3, 1986, as amended by Doc. No. DOT-OST-2014-0140, 84 FR 15940, Apr. 16, 2019]

              § 375.36
              Lease of foreign civil aircraft without crew.
              Foreign civil aircraft that are leased without crew to an air carrier or citizen or permanent resident of the United States, and used by the lessee in otherwise authorized air transportation or commercial air operations, may be operated into, out of, and within the United States in accordance with any applicable regulations prescribed by the Federal Aviation Administration.

              § 375.37
              Certain business aviation activities using U.S.-registered foreign civil aircraft.
              For purposes of this section, “company” is defined as a person that operates civil aircraft in furtherance of a business other than air transportation. U.S.-registered foreign civil aircraft that are not otherwise engaged in commercial air operations, or foreign air transportation, and which are operated by a company in the furtherance of a business other than transportation by air, when the carriage is within the scope of, and incidental to, the business of the company (other than transportation by air), may be operated to, from, and within the United States as follows:
              (a) Intra-company operations. A company operating a U.S.-registered foreign civil aircraft may conduct operations for a subsidiary or parent or a subsidiary of its parent on a fully-allocated cost reimbursable basis; provided, that the operator of the U.S.-registered foreign civil aircraft must hold majority ownership in, be majority owned by, or have a common parent with, the company for which it provides operations;
              (b) Interchange operations. A company may lease a U.S.-registered foreign civil aircraft to another company in exchange for equal time when needed on the other company's U.S. registered aircraft, where no charge, assessment, or fee is made, except that a charge may be made not to exceed the difference between the cost of owning, operating, and maintaining the two aircraft;
              (c) Joint ownership operations. A company that jointly owns a U.S.-registered foreign civil aircraft and furnishes the flight crew for that aircraft may collect from the other joint owners of that aircraft a share of the actual costs involved in the operation of the aircraft; and
              (d) Time-sharing operations. A company may lease a U.S.-registered foreign civil aircraft, with crew, to another company; provided, that the operator may collect no charge for the operation of the aircraft except reimbursement for:

              (1) Fuel, oil, lubricants, and other additives.

              (2) Travel expenses of the crew, including food, lodging, and ground transportation.
              (3) Hanger and tie-down costs away from the aircraft's base of operations.
              (4) Insurance obtained for the specific flight.
              (5) Landing fees, airport taxes, and similar assessments.
              (6) Customs, foreign permit, and similar fees directly related to the flight.
              (7) In flight food and beverages.
              (8) Passenger ground transportation.
              (9) Flight planning and weather contract services.
              (10) An additional charge equal to 100 percent of the expenses for fuel, oil, lubricants, and other additives.
              [Doc. No. DOT-OST-2003-15511, 71 FR 15328, Mar. 28, 2006]

              § 375.38
              Other foreign civil aircraft: Small unmanned aircraft operated exclusively as model aircraft.
              Foreign civil aircraft that are small unmanned aircraft used exclusively as model aircraft may be operated in the United States only when the individual:
              (a) Completes the registration process in accordance with §§ 48.30, 48.100(b) and (c), 48.105, and 48.115 of this title;
              (b) Identifies the aircraft in accordance with the aircraft marking requirements in §§ 48.200 and 48.205 of this title; and
              (c) Complies with the requirements of Sec. 336 of Pub. L. 112-95 (Feb. 14, 2012).
              [80 FR 78648, Dec. 16, 2015]

            Subpart E—Operations Requiring Specific Preflight Authorization of Filing

              § 375.40
              Permits for commercial air operations.
              (a) Permit required. Except for aircraft being operated under a foreign air carrier permit, an exemption, or as otherwise provided in subpart D or H of this part, foreign civil aircraft may engage in commercial air operations only if there is carried on board the aircraft a permit issued by the Department in accordance with this subpart authorizing the operations involved.
              (b) Aircraft are not authorized to engage in air transportation under this section. Where an operation involves the carriage of persons, property or mail for compensation or hire, the Department will determine whether particular flights for which a permit is sought will be in common carriage, and therefore in air transportation, based on all the facts and circumstances surrounding the applicant's entire operations. The burden rests upon the applicant in each instance to demonstrate by an appropriate factual showing that the contemplated operation will not constitute common carriage from, to or within the United States. In general, an applicant that holds itself out to the public, or to a particular class or segment, as willing to furnish transportation for hire is a common carrier.

              § 375.41
              Agricultural and industrial operations within the United States.
              Foreign civil aircraft shall not be used for such commercial air operations as crop dusting, pest control, pipeline patrol, mapping, surveying, banner towing, skywriting or similar agricultural or industrial operations within the United States, including its territorial waters and overlying airspace, unless a permit has been issued by the Department and the operation is conducted in accordance with all applicable State and local laws and regulations as well as the applicable provisions of this part.

              § 375.42
              Transport operations—occasional planeload charters.

              Occasional planeload charters may be authorized where, because of their limited nature and extent, special equipment or facilities utilized, or other circumstances pertaining to them, it appears that they are not within the scope of the applicant's normal holding out of transportation services to the general public. Such charters are normally limited to those in which the entire capacity of the aircraft is engaged by a single charterer, and since they are occasional in nature, should not exceed for any one applicant more than six flights during a calendar year. This part does not authorize operations that involve solicitation of the general public such as is usually involved in the transportation of individually-ticketed passengers or individually-waybilled cargo, or in which the charterer is a travel agent, a charter operator, a broker, an air freight forwarder or any other organization that holds itself out to the general public to provide transportation services. Carriage of cargo for the operator's own account is governed by the provisions of this section if the cargo is to be resold or otherwise used in the furtherance of a business other than the business of providing carriage by aircraft.

              § 375.43
              Application for foreign aircraft permit.

              (a) Applications for foreign aircraft permits shall be submitted on OST Form 4509 (see appendix A to this part), in duplicate, addressed to the Chief, Foreign Air Carrier Licensing Division, X-45, Office of International Aviation. Applications should be submitted by email; see “Application Procedures under Part 375” at www.transportation.gov/policy/aviation-policy/licensing/foreign-carriers.

              (b) Applications shall contain a proper identification (including citizenship) of the applicant (the operator of the aircraft concerned) and of the owner thereof (if different from the applicant), a description of the aircraft by make, model, and registration marks; and a full description of the operations for which authority is desired, indicating type and dates of operations and number of flights, and routing. In the case of cargo flights, the names of all contractors, agents, if any, and the beneficial owner of the cargo, and a description of the cargo and of the proposed operations shall be provided. In the case of passenger flights, a full identification and description of the group chartering the aircraft, and identification of the travel agent, if any, shall be provided. Applications shall also contain a statement as to whether the applicant's homeland allows operators of U.S.-registered aircraft to conduct similar operations.
              (c) Applications shall be filed at least 15 days in advance of the proposed commencement date of the operations. The Department may direct the applicant to serve copies of its application on additional persons. Late applications may be considered by the Department upon a showing of good cause.
              (d)(1) Any party in interest may file a memorandum supporting or opposing an application. Two copies of each memorandum shall be filed within 7 business days after the application is filed but no later than the proposed commencement date of the operations. Memoranda will be considered to the extent practicable; the Department may act on an application without waiting for supporting or opposing memoranda to be filed.
              (2) Each memorandum shall set forth the reasons why the applications should be granted or denied, accompanied by whatever data, including affidavits, the Department is asked to consider.
              (3) A copy of each memorandum shall be served on the applicant.
              (e)(1) Unless otherwise ordered by the Department, each application and memorandum filed in response shall be available for public inspection at the Licensing Division of the Office of International Aviation immediately upon filing. Notice of the filing of all applications shall be published in the Department's Weekly List of Applications Filed.
              (2) Any person objecting to public disclosure of any information in an application or memorandum must state the grounds for the objection in writing. If the Department finds that disclosure of all or part of the information should be withheld under applicable provisions of law, and the public interest does not require disclosure, it will order that the injurious information be withheld.
              (Approved by the Office of Management and Budget under control number 2106-0002)
              [OST Doc. No. 42547, 51 FR 7254, Mar. 3, 1986, as amended by Doc. No. DOT-OST-2014-0140, 84 FR 15940, Apr. 16, 2019]

              § 375.44
              Issuance of permit.

              (a) The Department will issue a foreign aircraft permit if it finds that the proposed operations meet the requirements of this part and are in the public interest. Foreign aircraft permits may be conditioned or limited by the Department. Permits must be carried aboard the applicant's aircraft during flight over U.S. territory, and are not transferable.
              (b) In determining whether to grant a particular application, the Department will consider, among other factors, the extent to which the country of the applicant's nationality deals with U.S. civil aircraft operators on the basis of substantial reciprocity, and whether the operation is otherwise in the public interest.

              § 375.45
              Records and reports of occasional planeload charters.
              (a) Cargo documents. The holder of a permit for cargo operations shall issue a manifest or shipping document to its shipper with respect to each shipment.
              (b) [Reserved]
              (c) Contents of documents for passenger flights. The holder of a permit for passenger charters originating or terminating in the United States shall require each charterer to file with it prior to flight a list of names and addresses of all passengers to be transported on each flight.
              (d) Reports of unused authority. All foreign operators of occasional planeload charters for which authority is granted must notify the Department, in writing, not later than 15 days after the expiration of their permits, or their failure to use this authority. The unused authority shall otherwise be deemed to have been exercised.

            Subpart F—Transit Flights

              § 375.50
              Transit flights; scheduled international air service operations.
              (a) Requirement of notice. Scheduled international air services proposed to be operated pursuant to the International Air Services Transit Agreement in transit across the United States may not be undertaken by foreign civil aircraft unless the operator of such aircraft, and (if other than the operator) the carrier offering such service to the public, has, not less than 30 days prior to the date of commencement of such service, filed a Notice of Proposed Transit Flights Pursuant to the International Air Services Transit Agreement in accordance with the provisions of paragraphs (b) and (c) of this section.
              (b) Filing of the notice. An original and two copies of the Notice shall be filed with the Chief, Foreign Air Carrier Licensing Division, X-45, Office of International Aviation. Copies of the Notice shall be served upon the Department of State and the Administrator of the Federal Aviation Administration. The filing date shall be the date of actual receipt by the Department.
              (c) Content of notice. A “Notice of Proposed Transit Flights Pursuant to the International Air Services Transit Agreement” shall be clearly labeled as such, and as a minimum shall set forth, with whatever detail may be necessary, the following information:
              (1) The name, country or organization, and citizenship of the operator, and, if other than the operator, of the carrier offering the services to the public. If any interest (direct or indirect) in the operator or offeror of services is held by nationals of a country other than the country of organization or citizenship, the nature and extent of such interest must be fully disclosed. If any officer or director of the operator or carrier offering the services is a national of a country other than the country of organization or citizenship, the position of duties of such officer or director, and the officer and director's relevant position in relation to other officers and directors must similarly be fully disclosed. If the information required in this subsection has been previously supplied to the Department, the applicant may incorporate it by reference.
              (2) The State of registration of the aircraft proposed to be operated.
              (3) A full description of the proposed operations including the type of operations (passenger, property, mail, or combination), date of commencement, duration and frequency of flights, and routing (including each terminal and intermediate point to be served).
              (4) A statement as to whether or not any advertisement or publication of the proposed operations has been made in the United States. If there has been any advertisement or publication of the operations in the United States, copies of all such advertisements or publications shall be included.

              (5) Any change with respect to these matters (minor changes in schedules or routing excepted) shall also be filed with the Department.
              (d) Authorized operations. If the operator and the carrier offering services to the public (if different from the operator) have filed a “Notice of Proposed Transit Flights Pursuant to the International Air Services Transit Agreement,” at least 30 days before the date of commencement of the proposed operations in accordance with paragraphs (a), (b), and (c) of this section, the described operations may be commenced and performed without further authorization from the Department, unless and until the Department issues an order notifying the operator and/or the carrier offering the services to the public that, considering the matters submitted in the Notice, the Department is of the view that a question may exist as to whether:
              (1) The proposed services are authorized pursuant to the terms of the International Air Services Transit Agreement;
              (2) Substantial ownership and effective control are vested in nationals of a State party to the International Air Services Transit Agreement;
              (3) The proposed operations will be in compliance with the laws of the United States, the Department's rules, or the provisions of this section; or
              (4) The operator or its government have performed their obligations under the International Air Services Transit Agreement.
              (e) Prohibited operations. If the Department issues an order of notification as described in paragraph (d) of this section, neither the operator, nor the carrier offering the services to the public, shall commence the proposed operations, or, except as may be otherwise specified in the order, operate any flights subsequent to receipt of the order, unless and until the Department issues a foreign aircraft permit pursuant to the provisions of 49 U.S.C. 41703 and this part specifically authorizing such operations.
              (f) Foreign aircraft permit—application and procedures. If the Department issues an Order of Notification as described in paragraph (d) of this section, the carrier's Notice of Proposed Transit Flights Pursuant to the International Air Services Transit Agreement shall be treated as an application for the required foreign aircraft permit, and further procedures on such application shall be as directed by the Department.
              (g) Short notice filing. Nothing in this section shall be construed as precluding the filing of an application for a foreign aircraft permit to perform transit operations pursuant to the International Air Services Transit Agreement less than 30 days in advance of the proposed operation. No such flights shall be operated, however, unless or until a specific foreign aircraft permit has been issued by the Department.
              (h) Nature of privilege conferred. Air transportation is not authorized under this section, and the burden rests upon each operator and carrier to show that the proposed operations will not constitute air transportation within the meaning of 49 U.S.C. Subtitle VII. In addition, each operator and carrier has the burden of demonstrating that the proposed operations are authorized by the International Air Services Transit Agreement, and that the appropriate authorization should not be withheld pursuant to section 5 of Article I thereof. Stopovers for the convenience or pleasure of the passengers are not authorized under this section and stops other than for strictly operational reasons shall not be made. The consolidation on the same aircraft of an operation under this section with a service authorized under 49 U.S.C. 41301 or 41709 is not authorized by this section. Any authorization or permit granted under this section is nontransferable, and may be withheld, revoked, suspended, withdrawn, or cancelled by the Department, without notice or hearing, if required by the public interest. Operators of aircraft registered in countries not parties to the International Air Services Transit Agreement shall make special application to the Department under § 375.70.
              [OST Doc. No. 42547, 51 FR 7254, Mar. 3, 1986, as amended by Doc. No. DOT-OST-2014-0140, 84 FR 15940, Apr. 16, 2019]

            Subpart G—Penalties

              § 375.60
              Penalties.
              The operation of a foreign aircraft within the United States or over adjacent territorial waters in violation of the provisions of this part constitutes a violation of 49 U.S.C. Subtitle VII and of this chapter, and may, in addition, constitute a violation of the rules of the Federal Aviation Administration. Such operation makes the person or persons responsible for the violation or violations subject to a civil penalty as provided in 49 U.S.C. 46301, and to the alteration, amendment, modification, suspension or revocation of any permit issued under this part and of any U.S. certificate involved as provided in 49 U.S.C. 44709. Engaging in air transportation as defined in 49 U.S.C. Subtitle VII by a foreign aircraft without a foreign air carrier permit issued pursuant to 49 U.S.C. 41301 or an exemption, or in violation of the terms of such authority constitutes not only a violation of this part but of Title 49, subtitle VII, as well, which entails a criminal penalty as set forth in 49 U.S.C. 46316.
              [Doc. No. DOT-OST-2014-0140, 84 FR 15940, Apr. 16, 2019]

            Subpart H—Special Authorization

              § 375.70
              Special authorization.
              Any person desiring to navigate a foreign civil aircraft within the United States other than as specifically provided in this part may petition the Department for a special authorization to conduct the particular flight or series of flights. Such authorization may be issued only if the Department finds that the proposed operation is fully consistent with the applicable law, that the applicant's homeland grants a similar privilege with respect to operators of U.S.-registered aircraft, and that the proposed operation is in the interest of the public of the United States.

              Pt. 375, App. A
              Appendix A to Part 375—Form 4509

                EC30SE91.018

                EC30SE91.019

          Pt. 377
          PART 377—CONTINUANCE OF EXPIRED AUTHORIZATIONS BY OPERATION OF LAW PENDING FINAL DETERMINATION OF APPLICATIONS FOR RENEWAL THEREOF

              Subpart A—General Provisions
              Sec.
              377.1
              Definitions.
              377.2
              Applicability of part.
              377.3
              Authorizations not covered by 5 U.S.C. 558(c).
              377.4
              Certain authorizations with alternative termination dates.
              377.5
              Procedure to obtain Department interpretation.

              Subpart B—Renewal Applications and Procedure Thereon
              377.10
              Requirements for, and effect of, renewal applications.
              377.11
              Processing of defective renewal applications.

            Authority:
            49 U.S.C. Chapters 401, 461; 5 U.S.C. 558, 559.

            Subpart A—General Provisions

              § 377.1
              Definitions.
              As used in this part:

                Authorization means any agency certificate, approval, statutory exemption or other form of permission granted pursuant to 49 U.S.C. 40102, 41102, 41302, 41309, and 41708. Where any operating authorization creates more than one separate route, each of these shall be deemed a separate authorization for the purposes of this part.

                Renewal application means any application filed in conformity with the requirements of this part which requests either a renewal or a new license and is intended to invoke the provisions of the last sentence of 5 U.S.C. 558(c).

                Route means an authorization which permits an air carrier to render unlimited regularly scheduled service between a specifically designated pair of terminal points and intermediate points, if any.
              [SPR-84, 40 FR 24998, June 12, 1975, as amended by SPR-184, 47 FR 7212, Feb. 18, 1982; Doc. No. DOT-OST-2014-0140, 84 FR 15940, Apr. 16, 2019]

              § 377.2
              Applicability of part.

              (a) This part implements the last sentence of 5 U.S.C. 558(c) with regard to temporary authorizations granted by the Department.

                Note:
                The last sentence of 5 U.S.C. 558(c) provides: “When the licensee has made timely and sufficient application for a renewal or a new license in accordance with agency rules, a license with reference to an activity of a continuing nature does not expire until the application has been finally determined by the agency.”

              (b) Nothing in this part prevents the Department from terminating at any time, in accordance with law, any authorization or any extension of an authorization.
              (c) Nothing in this part constitutes a determination that any given authorization is a “license with reference to an activity of a continuing nature” within the meaning of 5 U.S.C. 558(c).
              [SPR-184, 47 FR 7212, Feb. 18, 1982, as amended by Doc. No. DOT-OST-2014-0140, 84 FR 15940, Apr. 16, 2019]

              § 377.3
              Authorizations not covered by 5 U.S.C. 558(c).
              The Department hereby determines that the following authorizations are not licenses “with reference to an activity of a continuing nature” within the meaning of 5 U.S.C. 558(c):
              (a) Authorizations granted for a specified period of 180 days or less; and
              (b) Authorizations, other than those granted under 49 U.S.C. 41102, that by their terms are subject to termination at an uncertain date upon the happening of an event, including fulfillment of a condition subsequent or occurrence of a contingency.
              [SPR-184, 47 FR 7212, Feb. 18, 1982, as amended by Doc. No. DOT-OST-2014-0140, 84 FR 15940, Apr. 16, 2019]

              § 377.4
              Certain authorizations with alternative termination dates.
              Unless granted under 49 U.S.C. 41102, an authorization that by its terms is subject to termination alternatively, either at an uncertain date upon the happening of an event or upon the arrival of a specified date:

              (a) Will not be considered a “license with reference to an activity of a continuing nature” within the meaning of 5 U.S.C. 558(c), if the event occurs before the specified date; and
              (b) Ordinarily (subject to interpretation under § 377.5) will be considered such a license, if the event does not occur before the specified date and that date is more than 180 days after the effective date of the authorization.
              [SPR-184, 47 FR 7212, Feb. 18, 1982, as amended by Doc. No. DOT-OST-2014-0140, 84 FR 15940, Apr. 16, 2019]

              § 377.5
              Procedure to obtain Department interpretation.
              (a) The Department will determine upon written request by the holder of a temporary authorization or by any competitively affected air carrier or foreign air carrier, or upon its own initiative, whether the temporary authorization is a “license with reference to an activity of a continuing nature” within the meaning of 5 U.S.C. 558(c).
              (b) A written request for such a Department determination shall be filed at least 60 days before the deadline set forth in § 377.10 for a timely renewal application.
              (c) The filing of such a written request shall not affect the timeliness requirements for renewal applications that are set forth in § 377.10 or any other applicable Department rule or order.
              [SPR-184, 47 FR 7212, Feb. 18, 1982, as amended by Doc. No. DOT-OST-2014-0140, 84 FR 15940, Apr. 16, 2019]

            Subpart B—Renewal Applications and Procedure Thereon

              § 377.10
              Requirements for, and effect of, renewal applications.
              (a) Identification of authorization covered by renewal application. Each renewal application shall identify the authorization or authorizations to which it is intended to relate. The application shall indicate the applicant's intention to rely upon 5 U.S.C. 558(c) as implemented by this part. In case of applications for renewal of an authorization for route service, the renewal application shall specifically identify the separate routes which the applicant proposes to continue serving pursuant to the expiring authorization, pending final determination of the renewal application.
              (b) Contents of renewal application. The application must contain all the information required by law and the Department's regulations, and meet the requirements thereof as to form. The new authorization sought need not be of the same duration as the expiring authorization. If the application relates to renewal of route authority, it must contain, as a minimum, a request for renewed authority to render route service between the terminals named in each separate route for which renewal is requested.
              (c) Timeliness. The application must be filed and served in compliance with applicable law and the Department's regulations at least 60 days before the expiration date of the outstanding temporary authorization, except that:
              (1) For certificates issued under 49 U.S.C. 41102 with a specified expiration date, the deadline is 180 days before the expiration date;
              (2) For certificates issued under 49 U.S.C. 41102 that terminate by their terms upon the happening of an event that could not be foreseen, the deadline is 30 days after the time that the carrier has notice that the event will occur or has occurred;
              (3) For foreign air carrier permits issued under 49 U.S.C. 41301 and exemptions issued under 49 U.S.C. 41708 to non-U.S. citizens, the deadline is the expiration date itself;
              (4) For renewal by substantially equivalent certificate authority of fixed term route authorizations granted by exemption and for interim extension of the exemption, pursuant to § 399.18 of this chapter, the deadline is 90 days before the expiration date; and
              (5) Nothing in this part supersedes a requirement for earlier filing contained in any law, Department rule or order, or temporary authorization.
              (d) Effect. In the case of authorizations which constitute licenses with reference to activities of a continuing nature within the meaning of 5 U.S.C. 558(c), the filing of an application complying in all respects with the requirements of paragraphs (a) through (c) of this section shall extend the authorization to which it relates as then outstanding in its entirety, together with all applicable terms, conditions and limitations, until the application has been finally determined by the Department. In the case of routes granted under 49 U.S.C. 41102, the duty to render adequate service continues to attach to every point as provided in the expired authorization which is extended pursuant to this provision. The date of final determination of the application shall be the date when the final order determining the application takes effect, or when the applicable period for filing of petitions for rehearing, reargument or reconsideration expires, or when a timely filed petition therefor is denied, whichever occurs latest.
              [SPR-84, 40 FR 24998, June 12, 1975, as amended by SPR-184, 47 FR 7212, Feb. 18, 1982; 65 FR 6457, Feb. 9, 2000; Doc. No. DOT-OST-2014-0140, 84 FR 15940, Apr. 16, 2019]

              § 377.11
              Processing of defective renewal applications.
              When the Department determines that a renewal application does not comply with the requirements of this part, or that it does not relate to a license with reference to an activity of a continuing nature, it will so notify the applicant. The applicant may amend his application to cure the deficiency as a matter of right at any time prior to the date when the application was due pursuant to § 377.10(c).
              [SPR-84, 40 FR 24998, June 12, 1975, as amended by Doc. No. DOT-OST-2014-0140, 84 FR 15940, Apr. 16, 2019]

          Pt. 380
          PART 380—PUBLIC CHARTERS

              Subpart A—General Provisions
              Sec.
              380.1
              Applicability.
              380.2
              Definitions.
              380.3
              General provisions.
              380.4
              Enforcement.

              Subpart B—Conditions and Limitations
              380.10
              Public Charter requirements.
              380.11
              Payment to direct air carrier(s).
              380.12
              Cancellation by charter operator and notice to participants.
              380.13
              Prohibition on sale of round trips with open returns.
              380.14
              Unused space.
              380.15
              Substitution for charter participants.
              380.17
              Charters conducted by educational institutions.

              Subpart C—Requirements Applicable to Charter Operators
              380.20
              Relief from the Statute.
              380.21-380.23
              [Reserved]
              380.24
              Suspension of exemption authority.
              380.25
              Prospectus filing and related requirements.
              380.26
              Discrimination.
              380.27
              Methods of competition.
              380.28
              Charter prospectus.
              380.29
              Charter contract.
              380.30
              Solicitation materials.
              380.31
              General requirements for operator-participant contracts.
              380.32
              Specific requirements for operator-participant contracts.
              380.33
              Major changes in itinerary or price; refunds.
              380.33a
              Operator's option plan.
              380.34
              Security and depository agreements.
              380.34a
              Substitution of direct air carrier's security or depository agreement.
              380.35
              Disbursements from depository account.
              380.36
              Record retention.

              Subpart D—Requirements Applicable to Direct Air Carriers
              380.40
              Charter not to be performed unless in compliance with this part 380.
              380.41-380.42
              [Reserved]
              380.43
              Cancellations by direct air carriers.
              380.45
              Suspension of exemption authority.
              380.46
              Charter trip reporting.

              Subpart E—Registration of Foreign Charter Operators
              380.60
              Purpose.
              380.61
              Operation by foreign charter operators.
              380.62
              Registration applications.
              380.63
              Objections to registration applications.
              380.64
              Department action on a registration application.
              380.65
              Notification of change of operations or ownership.
              380.66
              Cancellation or conditioning of the registration.
              380.67
              Waiver of sovereign immunity.
              Appendix A to Part 380—Public Charter Operator's Surety Bond Under Part 380 of the Regulations of the Department of Transportation (14 CFR Part 380)
              Appendix B to Part 380—Public Charter Operators's Surety Trust Agreement

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

            Source:
            Docket No. OST-97-2356, 63 FR 28241, May 22, 1998, unless otherwise noted.

            Editorial Note:
            Nomenclature changes to part 380 appear at 84 FR 15940, Apr. 16, 2019.

            Subpart A—General Provisions

              § 380.1
              Applicability.
              This part applies to Public Charter air transportation of passengers in interstate or foreign air transportation, whether furnished by direct air carriers or Public Charter operators. This part also relieves such charter operators from various provisions of subtitle VII of Title 49 of the United States Code (statute), for the purpose of enabling them to provide Public Charters utilizing aircraft chartered from such direct air carriers. It also declines jurisdiction over foreign Public Charter operators operating foreign-originating Public Charters.
              [Docket No. OST-97-2356, 63 FR 28241, May 22, 1998, as amended by Doc. No. DOT-OST-2014-0140, 84 FR 15940, Apr. 16, 2019]

              § 380.2
              Definitions.
              For the purposes of this part:

                Certificated air carrier means a U.S. direct air carrier holding a certificate issued under the statute.

                Charter flight means a flight operated under the terms of a charter contract between a direct air carrier and its customer. It does not include scheduled air transportation, scheduled foreign air transportation, or nonscheduled cargo air transportation, sold on an individually ticketed or individually waybilled basis.

                Direct air carrier means a certificated commuter or foreign air carrier, or an air taxi operator registered under part 298 of this chapter, or a Canadian charter air taxi operator registered under part 294 of this chapter, that directly engages in the operation of aircraft under a certificate, authorization, permit or exemption issued by the Department.

                Educational institution means a school that is operated as such on a year-round basis and is empowered to grant academic degrees or secondary school diplomas by any government in the United States or by a foreign government.

                Foreign air carrier means a direct air carrier that holds a foreign air carrier permit issued under the statute or an exemption issued under the statute authorizing direct foreign air transportation.

                Foreign Public Charter operator means an indirect air carrier which is not a citizen of the United States as defined in the statute, that is authorized to engage in the formation of groups for transportation on Public Charters in accordance with this part.

                Indirect air carrier means any person who undertakes to engage indirectly in air transportation operations and who uses for such transportation the services of a direct air carrier.

                Public Charter means a one-way or round-trip charter flight to be performed by one or more direct air carriers that is arranged and sponsored by a charter operator.

                Public Charter operator means a U.S. or foreign Public Charter operator.

                Security agreement means:
              (1) A surety bond issued by a company—
              (i) That is listed in the Best's Insurance Reports (Fire and Casualty) with a general policyholders' rating of “A” or better, or

              (ii) That is listed in the U.S. Department of Treasury's notice listing companies holding Certificates of Authority as acceptable sureties on Federal bonds and as acceptable reinsuring companies, published in the Federal Register in the first week in July; or
              (2) A Surety trust agreement or a letter-of-credit, issued by a Federal Deposit Insurance Corporation-insured financial institution, which provides substantially equivalent protection.

                Sub-operator means a Public Charter operator that has contracted for its charter seats from a Public Charter operator that has contracted from one or more direct air carriers. A sub-operator is itself an indirect air carrier, not an agent of the Public Charter operator from which it has obtained its seat.

                U.S. Public Charter operator means an indirect air carrier that is a citizen of the United States as defined in 49 U.S.C. 40102(a) and that is authorized to engage in the formation of groups for transportation on Public Charters in accordance with this part.
              [Doc. No. OST-97-2356, 63 FR 28241, May 22, 1998, as amended at 70 FR 25773, May 16, 2005; Doc. No. DOT-OST-2014-0140, 84 FR 15940, Apr. 16, 2019]

              § 380.3
              General provisions.
              (a) Public Charters may be operated on a one-way or round-trip basis, with no minimum group or contract size. Public Charters may be sold on an air-only basis, or with mandatory or optional land arrangements.
              (b) A U.S. Public Charter operator operating a Public Charter which originates in a foreign country shall not be subject to the requirements of §§ 380.25, 380.28, 380.30 through 380.35.
              (c) The Department declines to exercise jurisdiction over a foreign Public Charter operator which operates a Public Charter originating in a foreign country, but reserves the right to exercise its jurisdiction over any foreign Public Charter operator at any time its finds that such action is in the public interest.
              (d)(1) An educational institution operating a Public Charter need not comply with the financial security requirements of § 380.34 if each student participant in the charter is enrolled in a formal academic course of study outside the United States, sponsored by or in conjunction with that institution, that is of at least four weeks' duration.
              (2) The spouse, children, and parents of a student participant may accompany the participant on a charter operated under this section.
              (e) The Department, upon application or on its own initiative, may waive any of the provision of this part if it finds such action to be in the public interest.
              [Docket No. OST-97-2356, 63 FR 28241, May 22, 1998, as amended by Doc. No. DOT-OST-2014-0140, 84 FR 15940, Apr. 16, 2019]

              § 380.4
              Enforcement.
              In the case of any violation of the provision of 49 U.S.C. Subtitle VII or of this part, or any other rule, regulations, or order issued under the Statute, the violator may be subject to a proceeding pursuant to the Statute before the Department or a U.S district court, as the case may be, to compel compliance therewith; to civil penalties pursuant to the provisions of 49 U.S.C. Subtitle VII, or to criminal penalties pursuant to the provisions of 49 U.S.C. Subtitle VII, or other lawful sanctions.

            Subpart B—Conditions and Limitations

              § 380.10
              Public Charter requirements.
              Public Charters under this part shall meet the following requirements:
              (a)-(b) [Reserved]
              (c) If the charter is on a round-trip basis, the departing flight and returning need not be performed by the same direct air carrier.
              (d) The air transportation portion of the charter must be performed by direct air carriers that hold authority under Chapter 411 and 413 of 49 U.S.C. Subtitle VII, or are operating under 14 CFR part 298, except that only U.S. citizen direct air carriers may provide air transportation for operations in interstate air transportation.

              § 380.11
              Payment to direct air carrier(s).
              Except for air taxi operators and commuter air carriers (which are governed by 14 CFR 298.38) and Canadian charter air taxi operators (which are governed by 14 CFR 294.32), the direct air carrier(s) shall be paid in full for the cost of the charter transportation (for both legs, if a round-trip charter) prior to the scheduled date of flight departure, as provided for in the basic charter regulations applicable to the direct air carrier(s) under part 212 of this chapter.

              § 380.12
              Cancellation by charter operator and notice to participants.
              (a) The charter operator may not cancel a charter for any reason (including insufficient participation), except for circumstances that make it physically impossible to perform the charter trip, less than 10 days before the scheduled date of departure of the outbound trip.

              (b) If the charter operator cancels 10 or more days before the scheduled date of departure, the operator must so notify each participant in writing within 7 days after the cancellation but in any event not less than 10 days before the scheduled departure date of the outbound trip. If a charter is canceled less than 10 days before scheduled departure (i.e., for circumstances that make it physically impossible to perform the charter trip), the operator must get the message to each participant as soon as possible.

              § 380.13
              Prohibition on sale of round trips with open returns.
              The charter operator shall not accept any participant's payment for return transportation unless the participant has specified a particular return flight.

              § 380.14
              Unused space.
              Nothing contained in this part shall preclude a charter operator from utilizing any unused space on an aircraft by it for a Public Charter for the transportation, on a free or reduced basis, of such charter operator's employees, directors, and officers, and parents and immediate families of such persons.
              [Docket No. OST-97-2356, 63 FR 28241, May 22, 1998, as amended by Doc. No. DOT-OST-2014-0140, 84 FR 15940, Apr. 16, 2019]

              § 380.15
              Substitution for charter participants.
              Substitutes may be arranged for charter participants at any time preceding departure. Participants who provide the charter operator or its sales agent with a substitute participant, or who are substituted for by a participant found by the operator, shall receive a refund of all moneys paid to the operator, except that the operator may reserve the right to retain an administrative fee not to exceed $25 for effecting the substitution.
              [Docket No. OST-97-2356, 63 FR 28241, May 22, 1998, as amended by Doc. No. DOT-OST-2014-0140, 84 FR 15940, Apr. 16, 2019]

              § 380.17
              Charters conducted by educational institutions.
              (a) This section shall apply only to charters conducted by educational institutions for charter groups comprised of bona fide participants in a formal academic course of study abroad which is of at least 4 weeks duration. The charter group may also include a student participant's immediate family (spouse, children, and parents). Except as modified in this section, all terms and conditions of this part applicable to the operation of Public Charters shall apply to charters conducted by educational institutions.
              (b) An educational institution conducting such a charter shall submit to theOffice of International Aviation, U.S. Air Carrier Licensing/Special Authorities Division, a statement, signed by its president, certifying that it meets the definition of “educational institution” set forth in § 380.2.
              (c) An educational institution conducting such a charter need not comply with the requirements of §§ 380.25, 380.28, 380.34, and 380.35.

            Subpart C—Requirements Applicable to Charter Operators

              § 380.20
              Relief from the Statute.
              (a) To the extent necessary to permit them to organize and arrange public charters, charter operators and foreign charter operators are hereby relieved from the following provisions of Subtitle VII of Title 49 of the U.S. Code, only if and so long as they comply with the provisions and the conditions imposed by this part:
              (1) Chapter 411.
              (2) Chapter 413.
              (3) Chapter 415.
              (4) Chapter 419.
              (5) If foreign charter operators receive interstate air transportation rights, any other provision of 49 U.S.C. Subtitle VII that would otherwise prohibit them from organizing and arranging Public Charters in interstate air transportation.
              (b) A charter operator who is a citizen of the United States shall not be subject to the following requirements with respect to Public Charters that originate in a foreign country: §§ 380.25, 380.28, and 380.30 through 380.35.

              §§ 380.21-380.23
              [Reserved]

              § 380.24
              Suspension of exemption authority.
              The Department reserves the power to deny the exemption authority of any charter operator, without hearing, if it finds that such action is necessary in the public interest or is otherwise necessary in order to protect the rights of the traveling public.

              § 380.25
              Prospectus filing and related requirements.
              A charter operator may organize and operate a Public Charter only in accordance with this part, and subject to the following conditions:
              (a) No charter operator shall operate, sell, receive money from any prospective participant for, or offer to sell or otherwise advertise a charter or series of charters until the Office of International Aviation, U.S. Air Carrier Licensing/Special Authorities Division , has accepted a Public Charter prospectus as described in § 380.28.
              (b) If within 10 days after the filing the Department notifies the charter operator that it has rejected the prospectus for noncompliance with this part, the prohibitions set forth in paragraph (a) of this section shall continue until the Department advises that it has accepted the prospectus.
              (c) The following amendments to a filed prospectus may be made:
              (1) The addition or cancellation of any flight;
              (2) A change in any flight, date, origin city or destination city; and
              (3) A change in or addition of any direct air carrier, securer, or depository bank.
              (d) The charter operator shall amend the prospectus to reflect any change described in paragraph (c) of this section. The amendment shall be filed in the manner and form used for the original prospectus. It shall become effective upon filing unless the operator is otherwise notified.
              (e) The charter operator shall notify the depository bank (if any) and the securer of any change described in paragraph (c) of this section not later than when filing a prospectus amendment to reflect the change. If the securer is unable to adjust the security agreement as required by the change, the Office of International Aviation, U.S. Air Carrier Licensing/Special Authorities Division shall be advised of this fact within 2 business days.
              (Approved by the Office of Management and Budget under Control Number 2106-0005)

              § 380.26
              Discrimination.
              No charter operator shall make, give, or cause any undue or unreasonable preference or advantage to any particular person, port, locality, or description of traffic in air transportation in any respect whatsoever, or subject any particular person, port, locality, or description of traffic in air transportation to any unjust discrimination or any undue or unreasonable prejudice or disadvantage in any respect whatsoever.

              § 380.27
              Methods of competition.
              No charter operator shall engage in unfair or deceptive practices or unfair methods of competition in air transportation or the sale thereof.

              § 380.28
              Charter prospectus.
              (a) The charter prospectus shall include an original and two copies of the following:
              (1) From the charter operator and the direct air carrier:
              (i) The proposed flight schedule, listing the origin and destination cities, dates, type of aircraft, number of seats, and charter price for each flight;
              (ii) The tour itinerary (if any) including hotels (name and length of stay at each), and other ground accommodations and services; and
              (iii) A statement that they have entered into a charter contract that covers the proposed flight schedule, that the contract complies with all applicable Department regulations, and that a copy of the schedule has been sent to the depository bank (if any) and the operator's securer. The schedule shall be identified with a number assigned by the charter operator that does not duplicate any schedule numbers assigned by the operator to other proposed flight schedules. The proposed flight schedule, tour itinerary (if any), and statement shall be filed on OST Form 4532.
              (2)(i) From the charter operator and the securer, a statement:
              (A) That they have entered into a security agreement covering the proposed flight schedule that complies with § 380.34, including the amount of the coverage, the number assigned to it by the securer, and the amount of any outstanding claims against it, and

              (B) That the securer has received a copy of the proposed flight schedule. The statement shall identify the proposed flight schedule by the schedule number assigned by the charter operator in accordance with paragraph (a) of this section. If there are any outstanding claims against the agreement, the charter operator and securer shall also state that they have executed a rider or amendment increasing the coverage by the amount of the claims, or that the securer will separately pay any claims for which it may be liable without impairing the agreement or reducing the amount of its coverage.
              (ii) These statements shall be filed an OST Form 4533.
              (3) If a depository agreement is used, a statement from the charter operator, the direct air carrier, and the depository bank:
              (i) That they have entered into a depository agreement covering the proposed flight schedule that complies with § 380.34, and
              (ii) That the bank has received a copy of the proposed flight schedule by the schedule number assigned by the charter operator in accordance with paragraph (a)(1) of this section. This statement shall be filed on OST Form 4534.
              (b) Each of the statements described in paragraph (a) of this section shall also include the names and addresses of the parties to it, and the originals shall be signed by those parties.
              (c) The prospectus may cover a series of charters performed by one charter operator if the departure of the last charter is not more than one year after the departure of the first.
              (d) If the prospectus covers a series of charters and the air transportation will be performed by more than one direct air carrier, the prospectus shall include separate statements in accordance with paragraphs (a)(1) and (a)(3) of this section to cover the flights that will be performed by each direct carrier.
              (Approved by the Office of Management and Budget under Control Number 2106-0005)

              § 380.29
              Charter contract.
              The charter contract between the charter operator or foreign charter operator and the direct air carrier shall evidence a binding commitment on the part of the carrier to furnish the air transportation required for the trip or trips covered by the contract.

              § 380.30
              Solicitation materials.
              (a) All solicitation materials for a Public Charter shall include the name of the charter operator and the name of the direct air carrier.
              (b) Any solicitation material that states a price per passenger shall also include one of the following:
              (1) A statement referring to the operator-participant contract for further information about conditions applicable to the charter; or
              (2) The full text of the operator-participant contract.
              (c) Except as set forth in § 380.33a for operator's option plan contracts, if the charter prospectus names alternative dates or cities, any solicitation material that states a price per passenger shall also state that the actual dates or cities have not yet been selected, if that is the case.
              (d) Any solicitation material that names a hotel but does not name every hotel named in the operator-participant contract shall also state that substitutions may be made.

              (e) In any solicitation material from a direct air carrier, indirect air carrier, or an agent of either, for a charter, charter tour (i.e., a combination of air transportation and ground accommodations), or a charter tour component (e.g., a hotel stay), any price stated for such charter, tour, or component shall be the entire price to be paid by the participants to the air carrier, or agent, for such charter, tour, or component.

              § 380.31
              General requirements for operator-participant contracts.

              (a) Except for telephone sales for which payment is made by credit card as described in paragraph (b) of this section, the charter operator shall not accept payment from or on behalf of a prospective participant unless the participant has agreed to the conditions of the charter by signing an operator-participant contract as described in § 380.32. If a member of a group that will travel together pays for the group, that member may sign the contract on behalf of the group.

              (b) For telephone sales only, the charter operator may accept payment by credit card without the participant having first signed an operator-participant contract provided that the charter operator first advises the customer:
              (1) That he or she has the right to receive the operator-participant contract before making a booking;
              (2) That the operator-participant contract will be mailed to the participant within 24 hours of accepting payment by credit card; and
              (3) That the operator-participant contract must be signed, and the signed portion returned to the operator, before travel.
              (4) A full refund must be made of any amounts charged to a credit card for any participant who cancels before the operator-participant contract is signed.
              (c) The contract form may include a space that participants may check to authorize the charter operator to retain their money while attempting to make other arrangements for them if there is no space available on the flight or on specific alternative flights they have requested.
              (d) If there is no space available on the flight or specific alternative flights requested by the participant the operator shall return all the participant's money within 7 days after receiving it unless the participant, in accordance with paragraph (c) of this section, has authorized the operator to retain the payments while the operator attempts to make other arrangements for the participant. If the operator retains the payments while attempting to make other arrangements for the participant, it shall notify the participant of the fact within 7 days after receiving the payments, but in no event later than the departure. For the purpose of the time periods in this paragraph, receipt of money by a travel agent on behalf of a charter operator will not be considered as receipt by the operator.
              (e) Except as set forth in § 380.33a for operator's option plan contracts, the operator-participant contract shall not specify alternative dates for the outbound or return flights, or alternative origin or destination cities for any flight leg.
              (f) The contract form shall be printed in 7-point or larger type. The statements required by paragraph (a), (f), (h), (l), (r), (s), and (x) of § 380.32 shall be printed so as to contrast with the rest of the contract by the use of bold-faced type, capital letters, or a type size that is at least 50 percent larger than that used for the rest of the contract.
              (g) The contract form shall include a space that participants may check to indicate that they wish to be furnished details of trip cancellation, health, and accident insurance.
              (h) The contract form shall be designed so as to enable participants to retain a copy of the general terms and conditions after signing it. The specific information supplied by participants (such as choices of dates, cities, or other options) need not be retainable.

              § 380.32
              Specific requirements for operator-participant contracts.
              Contracts between charter operators and charter participants shall state:
              (a) The name and complete mailing address of the charter operator;
              (b) The name of the direct air carrier, the dollar amounts of that carrier's liability limitations for participant's baggage, the type and capacity of the aircraft to be used for the flight, and the conditions governing aircraft-equipment substitutions;
              (c) The dates of the outbound and return flights;
              (d) The origin and destination cities of each flight leg;
              (e) The amount and schedule of payments;
              (f) If a depository agreement as provided in § 380.34(b) is used: That all checks, money orders, and credit card drafts must be made payable to the escrow account at the depository bank (identifying bank) 1

                 or, when the charter is sold to the participant by a retail travel agent, checks and money orders may be made payable to the agent, who must in turn make his check payable to the escrow account at the depository bank;

                  1 If the credit card merchant account is separate from the depository account, it must be used solely as a conduit, i.e., all credit card payments toward Public Charter trips must be immediately remitted to the depository account in full, without holdback, or retention of any portion of the participant's payment. If the depository bank is not the credit card merchant bank, the Department must be satisfied that there are adequate procedural safeguards for the protection of participants' payments.

              (g) The tour itinerary, if any, including the name and location of the hotels, length of stay at each, and other ground accommodations and services that are part of the tour;
              (h) That the charter operator may not cancel the charter less than 10 days before the scheduled departure date, except for circumstances that make it physically impossible to perform the charter tip;
              (i) That if a charter is canceled 10 or more days before the scheduled departure date, the operator will notify the participant in writing within 7 days after the cancellation, but in any event at least 10 days before the scheduled departure;

              (j) That if a charter is canceled less than 10 days before departure (i.e., for circumstances that make it physically impossible to perform the charter trip), the operator will get the message to the participant as soon as possible;
              (k) That if the charter is canceled, a refund will be made to the participant within 14 days after the cancellation;
              (l) The right to refunds if the participant changes plans is limited;
              (m) The right to refunds if the participant changes plans, including
              (1) The right to a full refund, for sales made by credit card, until an operator-participant contract is signed; and
              (2) That any participant who wishes to cancel will receive a full refund (less any applicable administrative fee, not to exceed $25) upon providing a substitute participant to the charter operator or its sales agent, or upon being substituted for by a participant found by the charter operator;
              (n) The procedure for obtaining the refunds described in paragraph (m) of this section, including that they will be made within 14 days after the cancellation or substitution;
              (o) The meaning of “major change”, as set forth in § 380.33(a);
              (p) That if the charter operator knows of a major change 10 or more days before scheduled departure, the operator will notify the participant of the change within 7 days after first knowing of it, but in any event at least 10 days before scheduled departure;
              (q) That if the operator first knows of a major change less than 10 days before scheduled departure, the operator will get the message to the participant as soon as possible;
              (r) That within 7 days after receiving a pre-departure notification of a major change but in no event later than departure, the participant may cancel, and that a full refund will be made to the participant within 14 days after canceling;
              (s) That upon a post-departure notification of a major change, the participant may reject the substituted hotel or the changed date, origin, or destination of a flight leg and be sent, within 14 days after the return date named in the contract, a refund of the portion of his payment allocable to the hotel accommodations or air transportation not provided;
              (t) That the participant's rights and remedies set forth in the contract, including the procedures for major changes, shall be in addition to any other rights or remedies available under applicable law, although the operator may condition a refund on the participant's waiver of additional remedies;
              (u) That trip cancellation, health, and accident insurance is available and that the operator will furnish details of the insurance to participants who check the space provided for this purpose on the contract form;

              (v) The name and address of the surety company or bank issuing the security agreement; and that unless the charter participant files a claim with the charter operator or, if he is unavailable, with the securer, within 60 days after termination of the charter, the securer shall be released from all liability under the security agreement to that participant. Termination means the date of arrival (or in the case of a canceled charter, the intended date of arrival) of the return flight. If there is no return flight in a participant's itinerary, termination means the date or intended date of departure of the last flight in the participant's itinerary;

              (w) For international flights only: That additional restrictions may be imposed on the flight by the foreign government involved, and that if landing rights are denied by a foreign government the flight will be canceled with a full refund to the participant. This statement need not be included in the contract if—
              (1) The prospectus includes a certification by the charter operator and the direct air carrier that landing rights have been obtained from all the foreign governments involved, and
              (2) All the foreign governments involved have adopted country-of-origin rules for charterworthiness;
              (x) That the charter operator is the principal and is responsible to the participants for all services and accommodations offered in connection with the charter. However, the contract may expressly provide that the charter operator, unless negligent, is not responsible for personal injury or property damage caused by any direct air carrier, hotel or other supplier of services in connection with the charter.
              [Docket No. OST-97-2356, 63 FR 28241, May 22, 1998, as amended by Doc. No. DOT-OST-2014-0140, 84 FR 15940, Apr. 16, 2019]

              § 380.33
              Major changes in itinerary or price; refunds.
              (a) For the purposes of this section, “major change” means any of the following:
              (1) A change in the departure or return date shown in the operator-participant contract, (or, if the contract states alternative dates, the date designated to the participant by the charter operator in accordance with § 380.33a(b)), unless the change results from a flight delay. In any event, however, a date change that the operator knows of more than 2 days before the scheduled flight date, and any delay of more than 48 hours, will be considered a major change.
              (2) A change in the origin or destination city shown in the operator-participant contract for any flight leg (or, if the contract states alternative cities, the city designated to the participant by the operator in accordance with § 380.33a(b)), unless the change affects only the order in which cities named in a tour package are visited.
              (3) A substitution of any hotel that is not named in the operator-participant contract; and
              (4) A price increase to the participant that occurs 10 or more days before departure and results in an aggregate price increase of more than 10 percent.
              (b) The charter operator shall not increase the price to any participant less than 10 days before departure.
              (c) The charter operator shall notify all participants of major changes, as required by the operator-participant contracts. This notification shall include the participants' rights to refunds required to be described in the operator-participant contract. The operator shall, if applicable, also notify the participants that the acceptance of a refund constitutes a waiver of their legal rights.
              (d) Except as otherwise specified, notifications and refunds required by this part are considered made at the time they are mailed or sent by an equivalent method.
              (e) The charter operator shall make all refunds required to be described in the operator-participant contract within the time limits set forth in paragraphs (k), (n), (r), and (s) of § 380.32, as applicable.

              § 380.33a
              Operator's option plan.
              (a) For the purposes of this part, an operator's option plan contract that states alternative dates for the outbound or return flights, or alternative origin or destination cities for any flight leg.
              (b) Operator's option plan contracts shall state, in addition to the information required by § 380.32, that the selection of the actual dates or cities, as applicable, is at the charter operator's option and will not entitle the participant to a refund, and that the operator will notify the participant of the actual dates or cities at least 10 days before the earliest of any alternative dates for the outbound flight.

              (c) Contract forms for all operator's option plan contracts shall be labeled “OPERATOR'S OPTION PLAN” in bold-faced capital letters at least 1/4 inch high. The statement required by paragraph (b) of this section and the statement of alternative dates (§ 380.32(c)) or alternative cities (§ 380.32(d)), as applicable, shall be printed so as to contrast with the rest of the contract, as set forth in § 380.31(f).
              (d) Any solicitation material that states a price per passenger for an operator's option plan contract shall clearly and conspicuously—
              (1) Identify that price as being for the operator's option plan,
              (2) Name all the possible dates or cities, as applicable, and
              (3) State that the selection of the actual dates or cities is at the charter operator's option.
              (e) Charter operators and their agents shall not misrepresent to prospective participants, orally, in solicitation materials, or otherwise, the probability that any particular city or date will be selected from among the alternatives named in an operator's option plan contract.
              (f) The charter operator shall notify all participants with operator's option plan contracts of the actual dates or cities, as applicable, as required by contracts.

              § 380.34
              Security and depository agreements.
              (a) Except as provided in paragraph (b) of this section, the charter operator or foreign charter operator shall furnish a security agreement in an amount for not less than the charter price for the air transportation, if only air transportation is involved, or, if the charter involves land accommodations in addition to air transportation, a security agreement in one of the following amounts dependent upon the length of the charter or series of charters:
              (1) For a charter or series of charters of 14 days or less, security in an amount of not less than the charter price for the air transportation to be furnished in connection with such charter or series of charters;
              (2) For a charter or series of charters of more than 14 days but less than 28 days security in an amount of not less than twice the charter price; and
              (3) For a charter or series of charters of 28 days or more, security in an amount of not less than three times the charter price: Provided, however, That the liability of the securer to any charter participant shall not exceed amounts paid by that participant to the charter operator with respect to the charter.
              (b) The direct air carrier and the charter operator or foreign charter operator may elect, in lieu of furnishing a security agreement as provided under paragraph (a) of this section, to comply with the requirements of paragraphs (b)(1) and (b)(2) of this section, as follows:
              (1) The charter operator shall furnish a security agreement in an amount of at least $10,000 times the number of flights, except that the amount need not be more than $200,000. The liability of the securer to any charter participant shall not exceed the amount paid by the participant to the charter operator for that charter.
              (2) The direct air carrier and charter operator or foreign charter operator shall enter into an agreement with a designated bank, the terms of which shall provide that all payments by charter participants paid to charter operators or foreign charter operators and their retail travel agents shall be deposited with and maintained by the bank subject to the following conditions:
              (i) On sales made to charter participants by charter operators or foreign charter operators the participant shall pay by check, money order, or credit card draft payable to the bank; 2

                 on sales made to charter participants by retail travel agents, the retail travel agent may deduct his commission and remit the balance to the designated bank by check, money order, or electronic transfer: Provided, That the travel agent agrees in writing with the charter operator or foreign charter operator that if the charter is canceled the travel agent shall remit to the bank the full amount of the commission previously deducted or received within 10 days after receipt of notification of cancellation of the charter; except for the credit card company's usual commission (not to exceed 3 percent), the charter operator shall not permit any portion of a charter participant's payments by credit card to be “held back” by the credit card merchant bank; 3

                  2 See also n.1, supra.

                  3 “Holdback” is an amount in excess of usual commissions that a credit card merchant bank sometimes retains to cover potential charge-backs or other charges.

              (ii) The bank shall pay the direct air carrier the charter price for the transportation not earlier than 60 days (including day of departure) prior to the scheduled day of departure of the originating or returning flight, upon certification of the departure date by the air carrier: Provided, That, in the case of a round trip charter contract to be performed by one carrier, the total round trip charter price shall be paid to the carrier not earlier than 60 days prior to the scheduled day of departure of the originating flight;
              (iii) The bank shall reimburse the charter operator or foreign charter operator for refunds made by the latter to the charter participant upon written notification from the charter operator or foreign charter operator;
              (iv) If the charter operator, foreign charter operator or the direct air carrier notifies the bank that a charter has been canceled, the bank shall make applicable refunds directly to the charter participants;
              (v) After the charter price has been paid in full to the direct air carrier, the bank shall pay funds from the account directly to the hotels, sightseeing enterprises, or other persons or companies furnishing ground accommodations and services, if any, in connection with the charter or series of charters upon presentation to the bank of vendors' bills and upon certification by the charter operator or foreign charter operator of the amounts payable for such ground accommodations and services and the person or companies to whom payment is to be made: Provided, however, That the total amounts paid by the bank pursuant to paragraphs (b)(2) (ii) and (v) of this section shall not exceed either the total cost of the air transportation, or 80 percent of the total deposits received by the bank less any refunds made to charter participants pursuant to paragraphs (b)(2) (ii) and (iv) of this section, whichever is greater;
              (vi) As used in this section, the term “bank” means a bank insured by the Federal Deposit Insurance Corporation;
              (vii) The bank shall maintain a separate accounting for each charter group;
              (viii) Notwithstanding any other provisions of this section, the amount of total cash deposits required to be maintained in the depository account of the bank may be reduced by one or both of the following: The amount of the security agreement in the form prescribed in this section in excess of the minimum coverage required by paragraph (b)(1) of this section; an escrow with the designated bank of Federal, State, or municipal bonds or other securities, consisting of certificates of deposit issued by banks having a stated policy of redeeming such certificates before maturity at the request of the holder (subject only to such interest penalties or other conditions as may be required by law), or negotiable securities which are publicly traded on a securities exchange, all such securities to be made payable to the escrow account: Provided, That such other securities shall be substituted in an amount no greater than 80 percent of the total market value of the escrow account at the time of such substitution: And provided, further, That should the market value of such other securities subsequently decrease, from time to time, then additional cash or securities qualified for investment hereunder shall promptly be added to the escrow account, in an amount equal to the amount of such decreased value; and

              (ix) Except as provided in paragraph (b)(2)(i), (iii), (iv), (v), and (viii) of this section, the bank shall not pay out any funds from the account prior to 2 banking days after completion of each charter, when the balance in the account shall be paid the charter operator or foreign charter operator, upon certification of the completion date by the direct air carrier: Provided, however, That if the Charter involves air transportation only and the bank has paid the direct air carrier(s) the charter price for the originating flight, and the returning flight if any, and has paid all refunds due to participants, as provided in paragraph (b)(2)(ii) and (iii), respectively, of this section, then the bank may pay the balance in the account to the charter operator upon certification by the direct air carrier performing the originating flight that such flight has in fact departed.
              (c)(1) The security agreement required under paragraphs (a) and (b) of this section shall insure the financial responsibility of the charter operator or foreign charter operator and the supplying of the transportation and all other accommodations, services, and facilities in accordance with the contract between the charter operator or foreign charter operator and the charter participants.
              (2) The security agreement may be either:
              (i) A surety bond in the form set forth as appendix A to this part;
              (ii) A surety trust agreement in the form set forth as appendix B to this part; or
              (iii) An arrangement with a bank (for instance, a standby letter of credit) that provides protection of charter participants' funds equivalent to or greater than that provided by the Bond in appendix A. An arrangement that furnishes a lesser degree of protection than would be provided under the bond shall be invalid to that extent, and instead the bank, the charter operator or foreign charter operator, and the charter participants shall have the same rights and liabilities as provided under a bond in the form of appendix A. If the arrangement does not give as much protection as a bond against the risk of the charter operator's bankruptcy, the bank shall be liable in the event of bankruptcy to the same extent as if it had entered into a bond.
              (3) Any agreement under paragraph (c)(2)(iii) of this section shall include a statement that, in the event that the other provisions of the agreement do not provide protection to charter participants comparable to that provided under a bond in the form of appendix A, the bank shall assume, for the benefit of the charter participants, all the liabilities it would have if it entered into the bond.
              (4) The security agreement shall be effective on or before the date the charter prospectus is filed with the Department.
              (5) The security agreement shall be specifically identified by the issuing securer with a numbering system so that the Department can identify the security agreement with the specific charter or charters to which it relates. These data may be set forth in an addendum attached to the security agreement, which addendum must be signed by the charter operator or foreign charter operator and the securer.
              (6) When security is provided by a surety bond, such bond shall be issued by a bonding or surety company that is listed in Best's Insurance Reports (Fire and Casualty) with a general policyholders' rating of “A” or better. The bonding or surety company shall be one legally authorized to issue bonds of that type in the State in which the charter originates. For purposes of this section the term “State” includes any territory or possession of the United States, or the District of Columbia.
              (7) When security is provided by a security agreement other than a bond, the agreement shall be issued by a national bank complying with the provisions of 12 CFR 7.7010(a), or by a State bank complying with applicable State laws that give authority to issue such agreements, and all such banks must be insured by the Federal Deposit Insurance Corporation.
              (d) The security agreement required by this section shall provide that unless the charter participant files a claim with the charter operator or foreign charter operator, or, if it is unavailable, with the securer, within 60 days after termination of the charter, the securer shall be released from all liability under the security agreement to such charter participant. Terminations means the date of arrival (or in the case of a canceled charter, the intended date of arrival) of the return flight. If there is no return flight in a participant's itinerary, termination means the date or intended date of departure of the last flight in the participant's itinerary.
              [Docket No. OST-97-2356, 63 FR 28241, May 22, 1998, as amended by Doc. No. DOT-OST-2014-0140, 84 FR 15941, Apr. 16, 2019]

              § 380.34a
              Substitution of direct air carrier's security or depository agreement.
              (a) A direct air carrier may substitute its own security agreement and/or depository arrangements, as specified in this section, for those required of the charter operator under § 380.34, but only for charter trips in which all the air transportation is provided by one direct air carrier. Charter operators are relieved from § 380.34 to the extent that the direct carrier substitutes its own arrangements.
              (b) The direct air carrier may substitute its security agreement for all of the arrangements required of the charter operator under § 380.34 (a) or (b). Alternatively, it may substitute its depository agreement for the depository agreement required of the charter operator under § 380.34(b)(2). If the direct carrier substitutes its depository agreement, it may also obtain and substitute a security agreement for the one otherwise required of the charter operator under § 380.34(b)(1). If the direct carrier substitutes its depository agreement only, the charter operator must supply the security agreement required under § 380.34(b)(1).
              (c) If the direct carrier substitutes a security agreement for all the charter operator's requirements under § 380.34, the charter operator shall include in the charter prospectus, in place of the information in § 380.28(a)(2) regarding the charter operator's security agreement:
              (1) A statement by the direct air carrier on OST Form 4535 that it will take responsibility for all charter participant payments (including those for ground accommodations and services) and for the fulfillment of all the charter operator's contractual and regulatory obligations to the charter participants.
              (2) A statement from the direct air carrier and its securer (under § 212.12 of this chapter), OST Form 4533, that they have entered into a security agreement assuring the direct air carrier's responsibilities to charter participants under this section in an unlimited amount (except that the liability of the securer with respect to any charter participant may be limited to the charter price paid by or on behalf of such participant), and that the securer has received a copy of the proposed flight schedule identified by the schedule number assigned by the charter operator under this part.
              (d) A substitute depository agreement under this section shall be signed by the direct air carrier, the charter operator, and the depository bank, and shall provide, in addition to existing requirements under § 212.8 of this chapter, that:
              (1) Payments by or on behalf of charter participants shall be allocated to the flight accounts matching the participant's itinerary in the following way: Each account shall have allocated to it the charter cost of the participant's air transportation on that flight. The portion of each payment not intended for air transportation services shall be allocated to the account for the return flight in the participant's itinerary. If there is only one flight in the itinerary, the entire payment shall be allocated to that account.
              (2) The bank shall pay funds from a flight account directly to the hotels, sightseeing enterprises, or other persons or companies furnishing ground accommodations and services, if any, in connection with the charter flight, upon presentation to the bank of vendor's bills and upon certification by the person who contracted for the ground accommodations or services of the amounts payable and the persons or companies to whom payment is to be made, except that no disbursement shall be made that would reduce the balance in the account below the charter cost of the flight.

              (3) On sales made to participants by a person other than a retail travel agent, the participant shall pay by check, money order, or credit card draft payable to the bank. On sales made to participants by a retail travel agent, payments shall be made in the same manner unless the agent deducts its commission and remits the balance to the bank by check, money order, or electronic transfer. The agent may deduct its commission only if it agrees in writing with its principal (the charter operator or direct air carrier, as applicable) that, if the charter is canceled, the agent shall remit to the bank the full amount of the commission previously deducted or received within 10 days after receipt of notification of the cancellation. The depository bank shall pay refunds directly to participants according to the terms of the operator-participant contract and the terms of this part.
              (e) If the direct carrier substitutes a security agreement in addition to substituting a depository agreement, the charter prospectus information must include all the information required by paragraphs (c) and (d) of this section, except for the amount of the security agreement. That agreement shall be in an amount of at least $10,000 times the number of flights, except that the amount need not be more than $200,000.
              (f) A copy of the depository agreement under paragraph (d) of this section shall be filed with the Department, and it shall not be effective until approved by the Department.
              (g) A copy of the security agreement under paragraph (c) or paragraph (e) of this section shall be filed with the Department. It shall insure the financial responsibility of the direct air carrier for supplying the transportation and all other accommodations, services, and facilities in accordance with the contracts between the charter operator and the charter participants. Such security agreement shall meet all the other requirements of § 380.34 (c) and (d).

              § 380.35
              Disbursements from depository account.
              No charter operator or direct air carrier shall cause its agents or the depository bank to make disbursements or payments from deposits except in accordance with the provisions of this part.

              § 380.36
              Record retention.
              Every charter operator conducting a charter pursuant to this part shall comply with the applicable record-retention provisions of part 249 of this chapter.

            Subpart D—Requirements Applicable to Direct Air Carriers

              § 380.40
              Charter not to be performed unless in compliance with this part 380.
              (a) For all Public Charters other than foreign-originating charters organized by foreign charter operators: A direct air carrier shall not perform air transportation in connection with such a charter unless it has made a reasonable effort to verify that all provisions of this part have been complied with and that the charter operator's authority under this part has not been suspended by the Department.
              (b) For foreign-originating Public Charters organized by foreign charter operators: A direct air carrier shall not perform air transportation in connection with such a charter unless—
              (1) The charter is conducted in accordance with subpart B of this part and
              (2) The charter operator conforms to all requirements of this part that are applicable to charter operators within the Department's jurisdiction, other than §§ 380.25, 380.28, 380.30 through 380.36, and 380.50.

              §§ 380.41-380.42
              [Reserved]

              § 380.43
              Cancellations by direct air carriers.
              The direct air carrier shall not cancel any charter under this part less than 10 days before the scheduled departure date, except for circumstances that make it physically impossible to perform the charter trip.

              § 380.45
              Suspension of exemption authority.
              The Department reserves the power to suspend the exemption authority of any air carrier, without hearing, if it finds that such action is necessary in order to protect the rights of the traveling public.

              § 380.46
              Charter trip reporting.
              The direct air carrier shall promptly notify the Office of International Aviation, U.S. Air Carrier Licensing/Special Authorities Division, regarding any charters covered by a prospectus filed under § 380.28 that are later canceled.

            Subpart E—Registration of Foreign Charter Operators

              § 380.60
              Purpose.
              This subpart establishes registration procedures for foreign charter operators intending to engage in the formation of groups for transportation on Public Charters that originate in the United States.

              § 380.61
              Operation by foreign charter operators.
              (a) Each foreign charter operator shall be registered under this subpart and file a prospectus under § 380.25 before organizing groups for transportation on Public Charters that originate in the United States.
              (b) Each foreign charter registered under this subpart shall comply with the other provisions of this part directed to charter operators.

              § 380.62
              Registration applications.
              (a) To be registered under this subpart, a foreign charter operator shall file two copies of an application for registration with the Office of International Aviation, U.S. Air Carrier Licensing/Special Authorities Division. The Department will list the names and nationalities of all persons applying for registration in its Weekly Summary of Filings.
              (b) The application shall be made on OST Form 4530, which can be obtained from the Office of International Aviation, U.S. Air Carrier Licensing/Special Authorities Division.
              (c) The applicant shall clearly indicate in its application for registration whether it requests authority to engage in foreign and/or interstate air transportation.

              § 380.63
              Objections to registration applications.
              Any person objecting to the registration application of a foreign charter operator or to a proposed change in the name or ownership of that operator shall file an objection with the Office of International Aviation, U.S. Air Carrier Licensing/Special Authorities Division, within 28 days after the Department receives the properly completed registration application.

              § 380.64
              Department action on a registration application.
              (a) After a registration is received, one of the following actions will be taken.
              (1) The application will be approved by the stamping of the effective date of registration on OST Form 4530 and returning the duplicate copy of the form to the operator;
              (2) Additional information will be requested for the applicant;
              (3) The applicant will be notified that its application will require further analysis or procedures, or is being referred to the Department for formal action;
              (4)The registration application will be rejected if it does not comply with the filing requirements of this subpart;
              (5) The application will be approved subject to such terms, conditions, or limitations as may be required by the public interest; or
              (6) The registration application will be rejected for reasons relating to the failure of effective reciprocity or if the Department finds that it would be in the public interest to do so.
              (b) One of the actions described in paragraph (a) of this section will normally be taken within 60 days after the registration application is received. The Department will also consider requests for faster action that include a full explanation of the need for expedited action.

              § 380.65
              Notification of change of operations or ownership.
              (a) Not later than 30 days before any change in its name or address or before a temporary or permanent cessation of operations, each foreign charter operator registered under this subpart shall notify the Office of International Aviation , U.S. Air Carrier Licensing/Special Authorities Division, of the change by resubmitting OST Form 4530.
              (b) A foreign charter operator registered under this subpart shall apply for an amendment to that registration not later than 30 days after either of the following events:

              (1) A person listed on its existing registration as owning or holding beneficial interest in at least 10 percent of the operator or of the operator's stock reduces its holding to below 10 percent;

              (2) A person not listed on the existing registration as owning or holding beneficial interest in at least 10 percent of the operator or of the operator's stock becomes an owner or holder of 10 percent or more of the company or of its stock.
              (c) An application for an amendment shall be made by resubmitting OST Form 4530. The existing registration shall remain valid pending Department action on the amendment.

              § 380.66
              Cancellation or conditioning of the registration.
              The registration of a foreign charter operator may be canceled or subjected to additional terms, conditions, or limitations if any of the following occur:
              (a) The operator files a written notice with the Department that it is discontinuing its charter operations;
              (b) A substantial ownership interest is acquired by persons who are not citizens of the same country as the registrant; or
              (c) The Department finds, after notice and an opportunity for responses, that it is in the public interest to do so. In making this finding, the Department will consider whether effective reciprocity exists between the United States and the government of the foreign charter operator.

              § 380.67
              Waiver of sovereign immunity.
              By accepting an approved registration form under this subpart, an operator waives any right it may have to assert any defense of sovereign immunity from suit in any proceeding against it, in any court or other tribunal of the United States, that is based upon a claim arising out of operations by the operator under this part.

              Pt. 380, App. A
              Appendix
              Appendix A to Part 380—Public Charter Operator's Surety Bond Under Part 380 of the Regulations of the Department of Transportation (14 CFR PART 380)
              Know all persons by these presents, that we ___ (name of charter operator) ___ of___ (city) ___ (state) as Principal (hereinafter called Principal), and ___ (name of surety) a corporation created and existing under the laws of the State of ___ (State) as Surety (hereinafter called Surety) are held and firmly bound unto the United States of America in the sum of $______________(see 14 CFR 380.34) for which payment, well and truly to be made, we bind ourselves and our heirs, executors, administrators, successors, and assigns, jointly and severally, firmly by these presents.
              Whereas Principal intends to become a Public Charter operator pursuant to the provisions of 14 CFR part 380 and other rules and regulations of the Department relating to insurance or other security for the protection of charter participants, and has elected to file with the Department of Transportation such a bond as will insure financial responsibility with respect to all moneys received from charter participants for services in connection with a Public Charter to be operated subject to part 380 of the Department's regulations in accordance with contracts, agreements, or arrangements therefore, and
              Whereas this bond is written to assure compliance by Principal as an authorized charter operator with 14 CFR part 380 and other rules and regulations of the Department relating to insurance and other security for the protection of charter participants, and shall inure to the benefit of any and all charter participants to whom Principal may be held legally liable for any damages herein described.
              Now, therefore, the condition of this obligation is such that if Principal shall pay or cause to be paid to charter participants any sum or sums for which Principal may be held legally liable by reason of Principal's failure faithfully to perform, fulfill and carry out all contracts, agreements, and arrangements made by Principal while this bond is in effect with respect to the receipt of moneys from charter participants, and proper disbursement thereof pursuant to and in accordance with the provisions of 14 CFR part 380, then this obligation shall be void, otherwise to remain in full force and effect.
              The liability of Surety with respect to any charter participant shall not exceed the charter price paid by or on behalf of such participant.
              The liability of Surety shall not be discharged by any payment or succession of payments hereunder, unless and until such payment or payments shall amount in the aggregate to the penalty of the bond, but in no event shall Surety's obligation hereunder exceed the amount of said penalty.

              Surety agrees to furnish written notice to the U.S. Air Carrier Licensing/Special Authorities Division, X-44, Office of International Aviation, Department of Transportation, forthwith of all suits or claims filed and judgments rendered, and payments made by Surety under this bond.

              The bond shall cover the following charters 1

                  1 These data may be supplied in an addendum attached to the bond.

              Surety company's bond No.

              Date of flight departure

              Place of flight departure

              This bond is effective on the __ day of _________, 20_, 12:01 a.m., standard time at the address of Principal as stated herein and as hereinafter provided. Principal or Surety may at any time terminate this bond by written notice to: “U.S. Air Carrier Licensing/Special Authorities Division (X-44), Office of International Aviation, U.S. Department of Transportation, 1200 New Jersey Avenue SE, W-86-445, Washington, DC 20590,” such termination to become effective thirty (30) days after the actual receipt of said notice by the Department. Surety shall not be liable hereunder for the payment of any damages hereinbefore described which arise as a result of any contracts, agreements, undertakings, or arrangements for the supplying of transportation and other services made by Principal after the termination of this bond as herein provided, but such termination shall not affect the liability of the bond hereunder for the payment of any damages arising as a result of contracts, agreements, or arrangements for the supplying of transportation and other services made by Principal prior to the date that such termination becomes effective. Liability of Surety under this bond shall in all events be limited only to a charter participant or charter participants who shall within sixty (60) days after the termination of the particular charter described herein give written notice of claim to the charter operator or, if it is unavailable, to Surety, and all liability on this bond shall automatically terminate sixty (60) days after the termination date of each particular charter covered by this bond except for claims made in the time provided herein.

              In witness whereof, the said Principal and Surety have executed this instrument on the __ day of _________, 20_.

              PRINCIPAL
              Name

              By: Signature and title

              Witness

              Bonding or surety company must be listed in Best's Insurance Reports (Fire and Casualty) with a general policyholders' rating of “A” or better or in the Department of the Treasury listing of companies holding certificates of authority as acceptable sureties on Federal bonds. In addition, the bonding or surety company shall be one legally authorized to issue bonds of that type in the State(s) in which the charter flight(s) originate. Agents must provide satisfactory proof that they have the requisite authority to issue this bond.
              [Doc. No. DOT-OST-2014-0140, 84 FR 15941, Apr. 16, 2019]

              Pt. 380, App. B
              Appendix B to Part 380
              Appendix B to Part 380—Public Charter Operators's Surety Trust Agreement
              This Trust Agreement is entered into between ___________ (charter operator) incorporated under the laws of ____________ with its principal place of business being ______________________ (hereinafter called “Operator”), and ____________________(Bank) with its principal place of business being____________________ (hereinafter called “Trustee”), for the purpose of creating a trust to become effective as of the ______ day of ______, 20_, which trust shall continue until terminated as hereinafter provided.
              Operator intends to become a Public Charter operator pursuant to the provisions of part 380 of the Department's regulations and other rules and regulations of the Department relating to insurance or other security for the protection of charter participants, and has elected to file with the Department of Transportation such a Surety Trust Agreement as will insure financial responsibility with respect to all monies received from charter participants for services in connection with a Public Charter to be operated subject to part 380 of the Department's regulations in accordance with contracts, agreements, or arrangements therefore.
              This Surety Trust Agreement is written to assure compliance by Operator with the provisions of part 380 of the Department's regulations and other rules and regulations of the Department relating to insurance or other security for the protection of charter participants. It shall inure to the benefit of any and all charter participants to whom Operator may be held legally liable for any of the damages herein described.
              It is mutually agreed by and between Operator and Trustee that Trustee shall manage the corpus of the trust and carry out the purposes of the trust as hereinafter set forth during the term of the trust for the benefit of charter participants (who are hereinafter referred to as “Beneficiaries.”)
              Beneficiaries of the trust created by this Agreement shall be limited to those charter participants who meet the following requirements:

              1. Those for whom Operator or Operator's agent has received payment toward participation in one or more charters operated by or proposed to be operated by Operator.

              2. Who have legal claim or claims for money damages against Operator by reason of Operator's failure faithfully to perform, fulfill, and carry out all contracts, agreements, and arrangements made by Operator while this trust is in effect with respect to the receipt of monies and proper disbursement thereof pursuant to part 380 of the Department's regulations; and
              3. Who have given notice of such claim or claims in accordance with this Trust Agreement, but who have not been paid by Operator.
              The operator shall convey to Trustee legal title to the trust corpus, which has a value of $_____ by the time of the execution of this Agreement.

              Trustee shall assume the responsibilities of Trustee over the said trust corpus and shall distribute from the trust corpus to any and all Beneficiaries to whom Operator, in its capacity as a Public Charter operator, may be held legally liable by reason of Operator's failure faithfully to perform, fulfill, and carry out all contracts, agreements, and arrangements made by Operator, while this trust is in effect with respect to the receipt of monies and proper disbursement thereof pursuant to part 380 of the Department's regulations in connection with said charters, such damages as will discharge such liability while this trust is in effect; Provided, however, that the liability of the trust to any Beneficiary shall not exceed the charter price (as defined in part 380 of the Department's regulations) paid by or on behalf of any such Beneficiary; Provided, further, that there shall be no obligation of the trust to any Beneficiary if Operator shall pay or cause to be paid to any Beneficiary any sum or sums for which Operator may be held legally liable by reasons of its failure faithfully to perform, fulfill, and carry out all contracts, agreements, and arrangements made by Operator in its capacity as Public Charter Operator while this trust is in effect with respect to the receipt of monies and proper disbursement thereof pursuant to part 380 of the Department's regulations; and provided still further, that the liability of the trust as administered by Trustee shall not be discharged by any payment or succession of payments hereunder, unless and until such payment or payments, shall amount in the aggregate to $_____. Notwithstanding anything herein to the contrary, in no event shall the obligation of the trust or Trustee hereunder exceed the aggregate amount of $_____.
              Trustee agrees to furnish written notice to the U.S. Air Carrier Licensing/Special Authorities Division, X-44, Office of International Aviation, Department of Transportation, forthwith of all suits or claims filed and judgments rendered (of which it has knowledge), and of payments made by Trustee under the terms of this trust.
              The trust shall not be liable hereunder for the payment of any damages hereinbefore described which arise as a result of any contracts, agreements, undertakings, or arrangements for the supplying of transportation and other services made by Operator after the termination of this trust as herein provided, but such termination shall not affect the liability of the trust hereunder for the payment of any damages arising as a result of contracts, agreements, or arrangements for the supplying of transportation and other services made by Operator prior to the date that such termination becomes effective.
              Liability of the trust shall in all events be limited only to a Beneficiary or Beneficiaries who shall within sixty days after the termination of the particular charter give written notice of claim to Operator or, if it is unavailable, to Trustee, and all liability of the trust with respect to participants in a charter shall automatically terminate sixty days after the termination date of each particular charter covered by this trust except for claims made in the time provided herein.
              Sixty-one days after the completion of the last charter covered by this Trust Agreement, the trust shall automatically terminate except for claims of any Beneficiary or Beneficiaries previously made in accordance with this Agreement still pending on and after said sixty-first day. To the extent of such claims, the trust shall continue until those claims are discharged, dismissed, dropped, or otherwise terminated. After all remaining claims which are covered by this Trust Agreement pending on and after the said sixty-first day have been discharged, dismissed, dropped, or otherwise terminated; Trustee shall convey forthwith the remainder of the trust corpus, if any, to Operator.
              Either Operator or Trustee may at any time terminate this trust by written notice to: “U.S. Air Carrier Licensing/Special Authorities Division, X-44, Office of International Aviation, U.S. Department of Transportation, 1200 New Jersey Avenue SE, W-86-445, Washington, DC 20590,” such termination to become effective thirty days after the actual receipt of said notice by the Department.
              In the event of any controversy or claim arising hereunder, Trustee shall not be required to determine same or take any other action with respect thereto, but may await the settlement of such controversy or claim by final appropriate legal proceedings, and in such event shall not be liable for interest or damages of any kind.

              Any Successor to Trustee by merger, consolidation, or otherwise, shall succeed to this trusteeship and shall have the powers and obligations set forth in this Agreement.

              The trust created under this Agreement shall be operated and administered under the laws of the State of _________.

                In Witness Whereof, Operator and Trustee have executed this instrument on the date(s) shown below.

              Operator ____________
              (signature)

              Date

              Name
              (typed or printed)

              Title

              Trustee

              (signature)

              Date

              Name
              (typed or printed)

              Title
              [Doc. No. DOT-OST-2014-0140, 84 FR 15941, Apr. 16, 2019]

          Pt. 381
          PART 381—SPECIAL EVENT TOURS

            Sec.
            381.1
            Purpose.
            381.3
            Applicability.
            381.5
            Definition.
            381.7
            Advertising.
            381.9
            Sales.
            381.11
            Refunds.
            381.13
            Price increases.

            Authority:
            49 U.S.C. 40113(a) and 41712.

            Source:
            Docket No. 49385, 59 FR 61514, Nov. 30, 1994, unless otherwise noted.

            § 381.1
            Purpose.
            The purpose of this part is ensure that air travelers who have purchased tours to special events will receive the promised admission to the event. This part expands the “Super Bowl rule” to other events.

            § 381.3
            Applicability.
            This part applies to Special Event Tours that are in interstate air transportation, or in foreign air transportation originating at a point in the United States. This part applies to U.S. and foreign operators of Special Event Tours, whether they be air carriers or ticket agents. This part applies to scheduled, charter, and other air transportation.

            § 381.5
            Definition.

              Special Event Tour means a tour that is organized for the purpose of attending a sporting, social, religious, educational, cultural, political or other event of a special nature and limited duration, which exists for reasons apart from the tour itself, and which is represented by the operator of the tour as including admission to that event. Examples of such events include, but are not limited to, college and professional sporting events, the Olympics, concerts, the Passion Play in Oberammergau, etc.

            § 381.7
            Advertising.
            No operator of a Special Event Tour or agent of such an operator shall conduct, or cause or allow to be conducted, any advertising, solicitation or other promotion for a Special Event Tour unless:
            (a) The operator is in physical possession of enough tickets for admission to the event to provide such tickets for a substantial number of seats on the tour; or
            (b) The operator has entered into a written contract with an organization that is the distributor of such tickets or an organization that receives such tickets directly from the distributor (e.g., a bowl committee; football conference, league or team; concert promoter or arena; etc.), the terms of which provide for that organization to furnish the operator enough admission tickets to provide such tickets for a substantial number of seats on the tour; or
            (c) The operator has entered into a written contract with another person or organization that has a written contract or series of written contracts with the distributor of such tickets or with an organization that receives such tickets directly from the distributor, the terms of which provide for that organization (the organization with which the operator has contracted) to furnish the operator enough admission tickets to provide such tickets for a substantial number of seats on the tour.

            § 381.9
            Sales.
            (a) Except as provided in paragraph (b) of this section:

            (1) No operator of a Special Event Tour shall accept money for a seat on a Special Event Tour, or authorize an agent to accept such money, unless the operator has physical possession of, or written contracts (in the manner described in § 381.7) for, a ticket for admission to the event for that individual. To the extent that the operator receives an unsolicited booking for which the operator does not have physical possession of or written contracts for a ticket for admission to the event, any payment accompanying that booking must be returned within 3 business days.
            (2) Upon acceptance of the money for a sale, the operator must reserve one event ticket for that individual. An operator may not sell more seats on the tour than it has event tickets in hand or under contract. (An operator need not continue to reserve an event ticket for an individual who withdraws from the tour by providing notice to the operator or by being notified by the operator that the individual's participation has been canceled due to failure to remit a required installment payment.)
            (b) An operator of a Special Event Tour may accept a booking and payment from an individual for whom the operator does not have an event ticket in hand or under contract if that individual agrees in writing that he or she understands that no event ticket has been reserved for him or her. This agreement shall specify whether the person has agreed to participate in the tour without an event ticket and/or the operator has agreed to attempt to acquire an event ticket for this person. If the two parties agree that the operator will attempt to acquire an event ticket, the agreement shall specify any penalties that will apply if the individual later cancels because an event ticket did not become available. If the operator notifies this person that an event ticket has become available, that person shall enjoy all the other protections of this part from that time.

            § 381.11
            Refunds.
            If promised admission to the primary event for which a Special Event Tour was organized is not furnished by the tour operator, at the tour price agreed to before departure (including any increases that the participant has accepted pursuant to § 381.13(a)), the operator must provide each tour participant affected in this way a refund of the total tour price. This refund is to be provided within 14 calendar days after the scheduled return date of the tour.

            § 381.13
            Price increases.
            (a) Should the tour operator increase a participant's tour price by more than 10 percent (aggregate of all increases to that participant), that participant shall have the option of canceling his or her participation in the tour and receiving a full refund within 14 days after the cancellation.
            (b) The tour operator shall not increase the tour price to any participant less than ten days before departure.

          Pt. 382
          PART 382—NONDISCRIMINATION ON THE BASIS OF DISABILITY IN AIR TRAVEL

              Subpart A—General Provisions
              Sec.
              382.1
              What is the purpose of this part?
              382.3
              What do the terms in this rule mean?
              382.5
              When are U.S. and foreign carriers required to begin complying with the provisions of this part?
              382.7
              To whom do the provisions of this part apply?
              382.9
              What may foreign carriers do if they believe a provision of a foreign nation's law conflicts with compliance with a provision of this part?
              382.10
              How does a carrier obtain a determination that it is providing an equivalent alternative to passengers with disabilities?

              Subpart B—Nondiscrimination and Access to Services and Information
              382.11
              What is the general nondiscrimination requirement of this part?
              382.13
              Do carriers have to modify policies, practices, and facilities to ensure nondiscrimination?
              382.15
              Do carriers have to make sure that contractors comply with the requirements of this part?
              382.17
              May carriers limit the number of passengers with a disability on a flight?
              382.19
              May carriers refuse to provide transportation on the basis of disability?
              382.21
              May carriers limit access to transportation on the basis that a passenger has a communicable disease or other medical condition?
              382.23

              May carriers require a passenger with a disability to provide a medical certificate?

              382.25
              May a carrier require a passenger with a disability to provide advance notice that he or she is traveling on a flight?
              382.27
              May a carrier require a passenger with a disability to provide advance notice in order to obtain certain specific services in connection with a flight?
              382.29
              May a carrier require a passenger with a disability to travel with a safety assistant?
              382.31
              May carriers impose special charges on passengers with a disability for providing services and accommodations required by this rule?
              382.33
              May carriers impose other restrictions on passengers with a disability that they do not impose on other passengers?
              382.35
              May carriers require passengers with a disability to sign waivers or releases?

              Subpart C—Information for Passengers
              382.41
              What flight-related information must carriers provide to qualified individuals with a disability?
              382.43
              Must information and reservation services of carriers be accessible to individuals with visual, hearing, and other disabilities?
              382.45
              Must carriers make copies of this part available to passengers?

              Subpart D—Accessibility of Airport Facilities
              382.51
              What requirements must carriers meet concerning the accessibility of airport facilities?
              382.53
              What information must carriers give individuals with a vision or hearing impairment at airports?
              382.55
              May carriers impose security screening procedures for passengers with disabilities that go beyond TSA requirements or those of foreign governments?
              382.57
              What accessibility requirements apply to automated airport kiosks?

              Subpart E—Accessibility of Aircraft
              382.61
              What are the requirements for movable aisle armrests?
              382.63
              What are the requirements for accessible lavatories?
              382.65
              What are the requirements concerning on-board wheelchairs?
              382.67
              What is the requirement for priority space in the cabin to store passengers' wheelchairs?
              382.69
              What requirements must carriers meet concerning the accessibility of videos, DVDs, and other audio-visual presentations shown on- aircraft to individuals who are deaf or hard-of-hearing?
              382.71
              What other aircraft accessibility requirements apply to carriers?

              Subpart F—Seating Accommodations
              382.81
              For which passengers must carriers make seating accommodations?
              382.83
              Through what mechanisms do carriers make seating accommodations?
              382.85
              What seating accommodations must carriers make to passengers in circumstances not covered by § 382.81 (a) through (d)?
              382.87
              What other requirements pertain to seating for passengers with a disability?

              Subpart G—Boarding, Deplaning, and Connecting Assistance
              382.91
              What assistance must carriers provide to passengers with a disability in moving within the terminal?
              382.93
              Must carriers offer preboarding to passengers with a disability?
              382.95
              What are carriers' general obligations with respect to boarding and deplaning assistance?
              382.97
              To which aircraft does the requirement to provide boarding and deplaning assistance through the use of lifts apply?
              382.99
              What agreements must carriers have with the airports they serve?
              382.101
              What other boarding and deplaning assistance must carriers provide?
              382.103
              May a carrier leave a passenger unattended in a wheelchair or other device?
              382.105
              What is the responsibility of carriers at foreign airports at which airport operators have responsibility for enplaning, deplaning, and connecting assistance?

              Subpart H—Services on Aircraft
              382.111
              What services must carriers provide to passengers with a disability on board the aircraft?
              382.113
              What services are carriers not required to provide to passengers with a disability on board the aircraft?
              382.115
              What requirements apply to on-board safety briefings?
              382.117
              Must carriers permit passengers with a disability to travel with service animals?
              382.119
              What information must carriers give individuals with vision or hearing impairment on aircraft?

              Subpart I—Stowage of Wheelchairs, Other Mobility Aids, and Other Assistive Devices
              382.121
              What mobility aids and other assistive devices may passengers with a disability bring into the aircraft cabin?
              382.123
              What are the requirements concerning priority cabin stowage for wheelchairs and other assistive devices?
              382.125

              What procedures do carriers follow when wheelchairs, other mobility aids, and other assistive devices must be stowed in the cargo compartment?

              382.127
              What procedures apply to stowage of battery-powered mobility aids?
              382.129
              What other requirements apply when passengers' wheelchairs, other mobility aids, and other assistive devices must be disassembled for stowage?
              382.131
              Do baggage liability limits apply to mobility aids and other assistive devices?
              382.133
              What are the requirements concerning the evaluation and use of passenger-supplied electronic devices that assist passengers with respiration in the cabin during flight?

              Subpart J—Training and Administrative Provisions
              382.141
              What training are carriers required to provide for their personnel?
              382.143
              When must carriers complete training for their personnel?
              382.145
              What records concerning training must carriers retain?

              Subpart K—Complaints and Enforcement Procedures
              382.151
              What are the requirements for providing Complaints Resolution Officials?
              382.153
              What actions do CROs take on complaints?
              382.155
              How must carriers respond to written complaints?
              382.157
              What are carriers' obligations for recordkeeping and reporting on disability-related complaints?
              382.159
              How are complaints filed with DOT?
              Appendix A to Part 382—Report of Disability-related Complaint Data
              Appendix B to Part 382—Cross-Reference Table

            Authority:
            49 U.S.C. 41705.

            Source:
            Doc. No. DOT-OST-2004-19482, 73 FR 27665, May 13, 2008, unless otherwise noted.

            Subpart A—General Provisions

              § 382.1
              What is the purpose of this part?
              The purpose of this part is to carry out the Air Carrier Access Act of 1986, as amended. This rule prohibits both U.S. and foreign carriers from discriminating against passengers on the basis of disability; requires carriers to make aircraft, other facilities, and services accessible; and requires carriers to take steps to accommodate passengers with a disability.

              § 382.3
              What do the terms in this rule mean?
              In this regulation, the terms listed in this section have the following meanings:

                Air Carrier Access Act or ACAA means the Air Carrier Access Act of 1986, as amended, the statute that provides the principal authority for this part.

                Air transportation means interstate or foreign air transportation or the transportation of mail by aircraft, as defined in 49 U.S.C. 40102. Generally this refers to transportation by aircraft within, to or from the United States.

                Assistive device means any piece of equipment that assists a passenger with a disability to cope with the effects of his or her disability. Such devices are intended to assist a passenger with a disability to hear, see, communicate, maneuver, or perform other functions of daily life, and may include medical devices and medications.

                Automated airport kiosk means a self-service transaction machine that a carrier owns, leases, or controls and makes available at a U.S. airport to enable customers to independently obtain flight-related services.

                Battery-powered mobility aid means an assistive device that is used by individuals with mobility impairments such a wheelchair, a scooter, or a Segway when it is used as a mobility device by a person with a mobility-related disability.

                Carrier means a U.S. citizen (“U.S. carrier”) or foreign citizen (“foreign carrier”) that undertakes, directly or indirectly, or by a lease or any other arrangement, to engage in air transportation.

                Commuter carrier means an air taxi operator as defined in 14 CFR part 298 that carries passengers on at least 5 round trips per week on at least one route between two or more points according to its published flight schedules that specify the times, days of the week and places between which those flights are performed.

                Conforming alternate version means a Web page that allows a corresponding non-conforming Web page on the primary Web site to be included within the scope of conformance as long as it meets the WCAG 2.0 Level AA success criteria, is up-to-date and contains the same information and functionality in the same language as the non-conforming page. At least one of the following applies to a conforming alternative version:
              (1) The conforming version can be reached from the non-conforming page via an accessibility-supported mechanism; or
              (2) The non-conforming version can only be reached from the conforming version; or
              (3) The non-conforming version can only be reached from a conforming page that also provides a mechanism to reach the conforming version.

                CPAP machine means a continuous positive airway pressure machine.

                Department or DOT means the United States Department of Transportation.

                Direct threat means a significant risk to the health or safety of others that cannot be eliminated by a modification of policies, practices, or procedures, or by the provision of auxiliary aids or services.

                Equivalent alternative means a policy, practice, or other accommodation that provides substantially equivalent accessibility to passengers with disabilities, compared to compliance with a provision of this Part.

                Expected maximum flight duration means the carrier's best estimate of the total duration of the flight from departure gate to arrival gate, including taxi time to and from the terminals, based on the scheduled flight time and factors such as (a) wind and other weather conditions forecast; (b) anticipated traffic delays; (c) one instrument approach and possible missed approach at destination; and (d) any other conditions that may delay arrival of the aircraft at the destination gate.

                FAA means the Federal Aviation Administration, an operating administration of the Department of Transportation.

                Facility means a carrier's aircraft and any portion of an airport that a carrier owns, leases, or controls (e.g., structures, roads, walks, parking lots, ticketing areas, baggage drop-off and retrieval sites, gates, other boarding locations, loading bridges) normally used by passengers or other members of the public.

                Flight-related services mean functions related to air travel including, but not limited to, ticket purchase, rebooking cancelled flights, seat selection, and obtaining boarding passes or bag tags.

                High-contrast captioning means captioning that is at least as easy to read as white letters on a consistent black background.

                Indirect carrier means a person not directly involved in the operation of an aircraft who sells air transportation services to the general public other than as an authorized agent of a carrier.

                Individual with a disability means any individual who has a physical or mental impairment that, on a permanent or temporary basis, substantially limits one or more major life activities, has a record of such an impairment, or is regarded as having such an impairment. As used in this definition, the phrase:
              (a) Physical or mental impairment means:
              (1) Any physiological disorder or condition, cosmetic disfigurement, or anatomical loss affecting one or more of the following body systems: neurological, musculoskeletal, special sense organs, respiratory including speech organs, cardio-vascular, reproductive, digestive, genito-urinary, hemic and lymphatic, skin, and endocrine; or
              (2) Any mental or psychological disorder, such as mental retardation, organic brain syndrome, emotional or mental illness, and specific learning disabilities.
              The term physical or mental impairment includes, but is not limited to, such diseases and conditions as orthopedic, visual, speech, and hearing impairments; cerebral palsy, epilepsy, muscular dystrophy, multiple sclerosis, cancer, heart disease, diabetes, mental retardation, emotional illness, drug addiction, and alcoholism.
              (b) Major life activities means functions such as caring for one's self, performing manual tasks, walking, seeing, hearing, speaking, breathing, learning, and working.
              (c) Has a record of such impairment means has a history of, or has been classified, or misclassified, as having a mental or physical impairment that substantially limits one or more major life activities.
              (d) Is regarded as having an impairment means:
              (1) Has a physical or mental impairment that does not substantially limit major life activities but that is treated by an air carrier as constituting such a limitation;
              (2) Has a physical or mental impairment that substantially limits a major life activity only as a result of the attitudes of others toward such an impairment; or
              (3) Has none of the impairments set forth in this definition but is treated by an air carrier as having such an impairment.

                On-demand air taxi means an air taxi operator that carries passengers or property and is not a commuter carrier as defined in this section.

                PHMSA means the Pipeline and Hazardous Materials Safety Administration, an operating administration of the Department of Transportation.

                POC means portable oxygen concentrator.

                Primary (or Main) Web site means the Web site that is accessed upon entering the uniform resource locator (e.g., www.carriername.com,
                www.airline designator code.com) in an Internet browser from a standard desktop or laptop computer where the carrier advertises or sells air transportation to the public.

                Qualified individual with a disability means an individual with a disability—
              (a) Who, as a passenger (referred to as a “passenger with a disability”),
              (1) With respect to obtaining a ticket for air transportation on a carrier, offers, or makes a good faith attempt to offer, to purchase or otherwise validly to obtain such a ticket;
              (2) With respect to obtaining air transportation, or other services or accommodations required by this Part,
              (i) Buys or otherwise validly obtains, or makes a good faith effort to obtain, a ticket for air transportation on a carrier and presents himself or herself at the airport for the purpose of traveling on the flight to which the ticket pertains; and
              (ii) Meets reasonable, nondiscriminatory contract of carriage requirements applicable to all passengers; or
              (b) Who, with respect to accompanying or meeting a traveler, using ground transportation, using terminal facilities, or obtaining information about schedules, fares, reservations, or policies, takes those actions necessary to use facilities or services offered by an air carrier to the general public, with reasonable accommodations, as needed, provided by the carrier.

                Scheduled service means any flight scheduled in the current edition of the Official Airline Guide, the carrier's published schedule, or the computer reservation system used by the carrier.

                Shared-use automated airport kiosk means a self-service transaction machine that is jointly owned, controlled or leased by an airport operator and carriers and/or an independent service provider and that provides carrier software applications which enable customers to independently access flight-related services.

                TSA means the Transportation Security Administration, an agency of the Department of Homeland Security.

                United States or U.S. means the United States of America, including its territories and possessions.
              [Doc. No. DOT-OST-2004-19482, 73 FR 27665, May 13, 2008, as amended at 78 FR 67914, Nov. 12, 2013]

              § 382.5
              When are U.S. and foreign carriers required to begin complying with the provisions of this part?
              As a U.S. or foreign carrier, you are required to comply with the requirements of this part on May 13, 2009, except as otherwise provided in individual sections of this part.

              § 382.7
              To whom do the provisions of this part apply?
              (a) If you are a U.S. carrier, this Part applies to you with respect to all your operations and aircraft, regardless of where your operations take place, except as otherwise provided in this part.

              (b) If you are a foreign carrier, this part applies to you only with respect to flights you operate that begin or end at a U.S. airport and to aircraft used for these flights. For purposes of this part, a “flight” means a continuous journey in the same aircraft or with one flight number that begins or ends at a U.S. airport. The following are some examples of the application of this term:

                Example 1 to paragraph (b):
                A passenger books a nonstop flight on a foreign carrier from New York to Frankfurt, or Frankfurt to New York. Each of these is a “flight” for purposes of this Part.

                Example 2 to paragraph (b):
                A passenger books a journey on a foreign carrier from New York to Prague. The foreign carrier flies nonstop to Frankfurt. The passenger gets off the plane in Frankfurt and boards a connecting flight (with a different flight number), on the same foreign carrier or a different carrier, which goes to Prague. The New York-Frankfurt leg of the journey is a “flight” for purposes of this Part; the Frankfurt-Prague leg is not. On the reverse routing, the Prague-Frankfurt leg is not a covered flight for purposes of this Part, while the Frankfurt-New York leg is.

                Example 3 to paragraph (b):
                A passenger books a journey on a foreign carrier from New York to Prague. The plane stops for refueling and a crew change in Frankfurt. If, after deplaning in Frankfurt, the passengers originating in New York reboard the aircraft (or a different aircraft, assuming the flight number remains the same) and continue to Prague, they remain on a covered flight for purposes of this Part. This is because their transportation takes place on a direct flight between New York and Prague, even though it had an interim stop in Frankfurt. This example would also apply in the opposite direction (Prague to New York via Frankfurt).

                Example 4 to paragraph (b):
                In Example 3, the foreign carrier is not subject to coverage under this Part with respect to a Frankfurt-originating passenger who boards the aircraft and goes to Prague, or a Prague-originating passenger who gets off the plane in Frankfurt and does not continue to New York.

              (c) As a foreign carrier, you are not subject to the requirements of this part with respect to flights between two foreign points, even with respect to flights involving code-sharing arrangements with U.S. carriers. As a U.S. carrier that participates in a code-sharing arrangement with a foreign carrier with respect to flights between two foreign points, you (as distinct from the foreign carrier) are responsible for ensuring compliance with the service provisions of subparts A through C, F through H, and K with respect to passengers traveling under your code on such a flight.

                Example 1 to paragraph (c):
                A passenger buys a ticket from a U.S. carrier for a journey from New York to Prague. The ticket carries the U.S. carrier's code and flight number throughout the entire journey. There is a change of carrier and aircraft in Frankfurt, and a foreign carrier operates the Frankfurt-Prague segment. The foreign carrier is not subject to the provisions of Part 382 for the Frankfurt-Prague segment. However, the U.S. carrier must ensure compliance with the applicable provisions of Part 382 on the Frankfurt-Prague segment with respect to passengers flying under its code, and the Department could take enforcement action against the U.S. carrier for acts or omissions by the foreign carrier.

              (d) As a foreign carrier, if you operate a charter flight from a foreign airport to a U.S. airport, and return to a foreign airport, and you do not pick up any passengers in the U.S., the charter flight is not a flight subject to the requirements of this part.
              (e) Unless a provision of this Part specifies application to a U.S. carrier or a foreign carrier, the provision applies to both U.S. and foreign carriers.
              (f) If you are an indirect carrier, §§ 382.1 through 382.15 of this part apply to you. §§ 382.17 through 382.157 of this part do not apply to you except insofar as provided by § 382.11(b).
              (g) Notwithstanding any provisions of this part, you must comply with all FAA safety regulations, TSA security regulations, and foreign safety and security regulations having legally mandatory effect that apply to you.
              [Doc. No. DOT-OST-2004-19482, 73 FR 27665, May 13, 2008, as amended at 74 FR 11471, Mar. 18, 2009; 75 FR 44887, July 30, 2010]

              § 382.9
              What may foreign carriers do if they believe a provision of a foreign nation's law conflicts with compliance with a provision of this part?
              (a) If you are a foreign carrier, and you believe that an applicable provision of the law of a foreign nation precludes you from complying with a provision of this part, you may request a waiver of the provision of this Part.
              (b) You must send such a waiver request to the following address: Assistant General Counsel for Aviation Enforcement and Proceedings, C-70 U.S. Department of Transportation, 1200 New Jersey Avenue, SE., Room W96-322, Washington, DC 20590.

              (c) Your waiver request must be in English and include the following elements:

              (1) A copy, in the English language, of the foreign law involved;
              (2) A description of how the foreign law applies and how it precludes compliance with a provision of this part;
              (3) A description of the alternative means the carrier will use, if the waiver is granted, to effectively achieve the objective of the provision of this part subject to the waiver or, if applicable, a justification of why it would be impossible to achieve this objective in any way.
              (d) The Department may grant the waiver request, or grant the waiver request subject to conditions, if it determines that the foreign law applies, that it does preclude compliance with a provision of this part, and that the carrier has provided an effective alternative means of achieving the objective of the provisions of this part subject to the waiver or have demonstrated by clear and convincing evidence that it would be impossible to achieve this objective in any way.
              (e)(1) If you submit a waiver request on or before September 10, 2008, the Department will, to the maximum extent feasible, respond to the request before May 13, 2009. If the Department does not respond to the waiver request by May 13, 2009, you may continue to implement the policy or practice that is the subject of your request until the Department does respond. The Department will not take enforcement action with respect to your implementation of the policy or practice during the time prior to the Department's response.
              (2) If you submit a waiver request after September 10, 2008, the Department will, to the maximum extent feasible, respond to the request by May 13, 2009 or within 180 days of receiving it, whichever is later. If the Department does not respond to the waiver request by this date, you may continue to implement the policy or practice that is the subject of your request until the Department does respond. However, the Department may take enforcement action with respect to your implementation of the policy or practice during the time between May 13, 2009 and the date of the Department's response.
              (3) If you submit a waiver request after September 10, 2008, and the request pertains to an applicable provision of the law of a foreign nation that did not exist on September 10, 2008, you may continue to implement the policy or practice that is the subject of your request until the Department responds to the request. The Department will, to the maximum extent feasible, respond to such requests within 180 days of receiving them. The Department will not take enforcement action with respect to your implementation of the policy or practice during the time prior to the Department's response.
              (f) Notwithstanding any other provision of this section, the Department may commence enforcement action at any time after May 13, 2009 with respect to the policy or practice that is the subject of the request if it finds the request to be frivolous or dilatory.
              (g) If you have not submitted a request for a waiver under this section with respect to a provision of this part, or such a request has been denied, you cannot raise the alleged existence of such a conflict as a defense to an enforcement action.

              § 382.10
              How does a U.S. or foreign carrier obtain a determination that it is providing an equivalent alternative to passengers with disabilities?
              (a) As a U.S. or foreign carrier, you may apply to the Department for a determination that you are providing an equivalent alternative to passengers with disabilities.
              (b) You must send your application for an equivalent alternative determination to the following address: Assistant General Counsel for Aviation Enforcement and Proceedings (C-70), U.S. Department of Transportation, 1200 New Jersey Avenue, SE., Room W96-322, Washington, DC 20590.
              (c) Your application must be in English and include the following elements:
              (1) A citation to the specific provision of this part concerning which you are proposing an equivalent alternative.

              (2) A detailed description of the alternative policy, practice, or other accommodation you are proposing to use in place of compliance with the provision of this part that you cite, and an explanation of how it provides substantially equivalent accessibility to passengers with disabilities.
              (d) The Department may grant the application, or grant the application subject to conditions, if it determines that the proposed facilitation does provide substantially equivalent accessibility to passengers with disabilities, compared to compliance with the provision of this part in question.
              (e) If your application is granted, you will be deemed to be in compliance with this Part through implementing the equivalent alternative. If your application is denied, you must implement this part as written.
              (f)(1) If you submit your application on or before September 10, 2008, the Department will respond to the request before May 13, 2009 to the maximum extent feasible. If the Department does not respond to the application by May 13, 2009, you may implement your policy or practice that is the subject of your application until the Department does respond.
              (2) With respect to an application you make after September 10, 2008, you must comply with the provisions of this part without change from May 13, 2009 until the Department responds to your application.

            Subpart B—Nondiscrimination and Access to Services and Information

              § 382.11
              What is the general nondiscrimination requirement of this part?
              (a) As a carrier, you must not do any of the following things, either directly or through a contractual, licensing, or other arrangement:
              (1) You must not discriminate against any qualified individual with a disability, by reason of such disability, in the provision of air transportation;
              (2) You must not require a qualified individual with a disability to accept special services (including, but not limited to, preboarding) that the individual does not request. However, you may require preboarding as a condition of receiving certain seating or in-cabin stowage accommodations, as specified in §§ 382.83(c), 382.85(b), and 382.123(a) of this part.
              (3) You must not exclude a qualified individual with a disability from or deny the person the benefit of any air transportation or related services that are available to other persons, except where specifically permitted by this Part. This is true even if there are separate or different services available for individuals with a disability, except when specifically permitted by another section of this Part; and
              (4) You must not take any adverse action against an individual (e.g., refusing to provide transportation) because the individual asserts, on his or her own behalf or through or on behalf of others, rights protected by this part or the Air Carrier Access Act.
              (b) As an indirect carrier, you must comply with §§ 382.17 through 382.157 of this part when providing facilities or services to passengers that would have otherwise been provided by a direct air carrier.
              [Doc. No. DOT-OST-2004-19482, 73 FR 27665, May 13, 2008, as amended at 75 FR 44887, July 30, 2010]

              § 382.13
              Do carriers have to modify policies, practices, and facilities to ensure nondiscrimination?
              (a) As a carrier, you must modify your policies, practices, and facilities when needed to provide nondiscriminatory service to a particular individual with a disability, consistent with the standards of section 504 of the Rehabilitation Act, as amended.
              (b) This requirement is part of your general nondiscrimination obligation, and is in addition to your duty to make the specific accommodations required by this part.
              (c) However, you are not required to make modifications that would constitute an undue burden or would fundamentally alter your program.

              § 382.15
              Do carriers have to make sure that contractors comply with the requirements of this Part?

              (a) As a carrier, you must make sure that your contractors that provide services to the public (including airports where applicable) meet the requirements of this part that would apply to you if you provided the services yourself.

              (b) As a carrier, you must include an assurance of compliance with this part in your contracts with any contractors that provide services to the public that are subject to the requirements of this part. Noncompliance with this assurance is a material breach of the contract on the contractor's part.
              (1) This assurance must commit the contractor to compliance with all applicable provisions of this Part in activities performed on behalf of the carrier.
              (2) The assurance must also commit the contractor to implementing directives issued by your CROs under §§ 382.151 through 382.153.
              (c) As a U.S. carrier, you must also include such an assurance of compliance in your contracts or agreements of appointment with U.S. travel agents. You are not required to include such an assurance in contracts with foreign travel agents.
              (d) You remain responsible for your contractors' compliance with this part and for enforcing the assurances in your contracts with them.
              (e) It is not a defense against an enforcement action by the Department under this part that your noncompliance resulted from action or inaction by a contractor.

              § 382.17
              May carriers limit the number of passengers with a disability on a flight?
              As a carrier, you must not limit the number of passengers with a disability who travel on a flight. (See also § 382.27(c)(6) of this part.)
              [Doc. No. DOT-OST-2004-19482, 73 FR 27665, May 13, 2008, as amended at 74 FR 11471, Mar. 18, 2009]

              § 382.19
              May carriers refuse to provide transportation on the basis of disability?
              (a) As a carrier, you must not refuse to provide transportation to a passenger with a disability on the basis of his or her disability, except as specifically permitted by this part.
              (b) You must not refuse to provide transportation to a passenger with a disability because the person's disability results in appearance or involuntary behavior that may offend, annoy, or inconvenience crewmembers or other passengers.
              (c) You may refuse to provide transportation to any passenger on the basis of safety, as provided in 49 U.S.C. 44902 or 14 CFR 121.533, or to any passenger whose carriage would violate FAA or TSA requirements or applicable requirements of a foreign government.
              (1) You can determine that there is a disability-related safety basis for refusing to provide transportation to a passenger with a disability if you are able to demonstrate that the passenger poses a direct threat (see definition in § 382.3). In determining whether an individual poses a direct threat, you must make an individualized assessment, based on reasonable judgment that relies on current medical knowledge or on the best available objective evidence, to ascertain:
              (i) The nature, duration, and severity of the risk;
              (ii) The probability that the potential harm to the health and safety of others will actually occur; and
              (iii) Whether reasonable modifications of policies, practices, or procedures will mitigate the risk.
              (2) If you determine that the passenger does pose a direct threat, you must select the least restrictive response from the point of view of the passenger, consistent with protecting the health and safety of others. For example, you must not refuse transportation to the passenger if you can protect the health and safety of others by means short of a refusal.
              (3) In exercising this authority, you must not act inconsistently with the provisions of this part.
              (4) If your actions are inconsistent with any of the provisions of this part, you are subject to enforcement action under Subpart K of this part.

              (d) If you refuse to provide transportation to a passenger on his or her originally-scheduled flight on a basis relating to the individual's disability, you must provide to the person a written statement of the reason for the refusal. This statement must include the specific basis for the carrier's opinion that the refusal meets the standards of paragraph (c) of this section or is otherwise specifically permitted by this part. You must provide this written statement to the person within 10 calendar days of the refusal of transportation.

              § 382.21
              May carriers limit access to transportation on the basis that a passenger has a communicable disease or other medical condition?
              (a) You must not do any of the following things on the basis that a passenger has a communicable disease or infection, unless you determine that the passenger's condition poses a direct threat:
              (1) Refuse to provide transportation to the passenger;
              (2) Delay the passenger's transportation (e.g., require the passenger to take a later flight);
              (3) Impose on the passenger any condition, restriction, or requirement not imposed on other passengers; or
              (4) Require the passenger to provide a medical certificate.
              (b) In assessing whether the passenger's condition poses a direct threat, you must apply the provisions of § 382.19(c)(1)-(2) of this subpart.
              (1) In making this assessment, you may rely on directives issued by public health authorities (e.g., the U.S. Centers for Disease Control or Public Health Service; comparable agencies in other countries; the World Health Organization).

              (2) In making this assessment, you must consider the significance of the consequences of a communicable disease and the degree to which it can be readily transmitted by casual contact in an aircraft cabin environment.

                Example 1 to paragraph (b)(2):
                The common cold is readily transmissible in an aircraft cabin environment but does not have severe health consequences. Someone with a cold would not pose a direct threat.

                Example 2 to paragraph (b)(2):
                AIDS has very severe health consequences but is not readily transmissible in an aircraft cabin environment. Someone would not pose a direct threat because he or she is HIV-positive or has AIDS.

                Example 3 to paragraph (b)(2):
                SARS may be readily transmissible in an aircraft cabin environment and has severe health consequences. Someone with SARS probably poses a direct threat.

              (c) If a passenger with a communicable disease meeting the direct threat criteria of this section gives you a medical certificate of the kind outlined in § 382.23(c)(2) describing measures for preventing transmission of the disease during the normal course of the flight, you must provide transportation to the passenger, unless you are unable to carry out the measures.
              (d) If your action under this section results in the postponement of a passenger's travel, you must permit the passenger to travel at a later time (up to 90 days from the date of the postponed travel) at the fare that would have applied to the passenger's originally scheduled trip without penalty or, at the passenger's discretion, provide a refund for any unused flights, including return flights.
              (e) If you take any action under this section that restricts a passenger's travel, you must, on the passenger's request, provide a written explanation within 10 days of the request.

              § 382.23
              May carriers require a passenger with a disability to provide a medical certificate?
              (a) Except as provided in this section, you must not require a passenger with a disability to have a medical certificate as a condition for being provided transportation.
              (b)(1) You may require a medical certificate for a passenger with a disability—
              (i) Who is traveling in a stretcher or incubator;
              (ii) Who needs medical oxygen during a flight; or
              (iii) Whose medical condition is such that there is reasonable doubt that the individual can complete the flight safely, without requiring extraordinary medical assistance during the flight.
              (2) For purposes of this paragraph, a medical certificate is a written statement from the passenger's physician saying that the passenger is capable of completing the flight safely, without requiring extraordinary medical assistance during the flight.

              (3) To be valid, a medical certificate under this paragraph must be dated within 10 days of the scheduled date of the passenger's initial departing flight.

                Example to paragraph (b)(3):

                A passenger who schedules a flight from New York to London on January 15 with a return on April 15 would have to show a medical certificate dated January 5 or later. The passenger would not have to show a second medical certificate dated April 5 or later.

              (c)(1) You may also require a medical certificate for a passenger if he or she has a communicable disease or condition that could pose a direct threat to the health or safety of others on the flight.
              (2) For purposes of this paragraph, a medical certificate is a written statement from the passenger's physician saying that the disease or infection would not, under the present conditions in the particular passenger's case, be communicable to other persons during the normal course of a flight. The medical certificate must state any conditions or precautions that would have to be observed to prevent the transmission of the disease or infection to other persons in the normal course of a flight. A medical certificate under this paragraph must be dated within 10 days of the date of the flight for which it is presented.

              (d) As a carrier, you may require that a passenger with a medical certificate undergo additional medical review by you if there is a legitimate medical reason for believing that there has been a significant adverse change in the passenger's condition since the issuance of the medical certificate or that the certificate significantly understates the passenger's risk to the health of other persons on the flight. If the results of this medical review demonstrate that the passenger, notwithstanding the medical certificate, is likely to be unable to complete the flight without requiring extraordinary medical assistance (e.g., the passenger has apparent significant difficulty in breathing, appears to be in substantial pain, etc.) or would pose a direct threat to the health or safety of other persons on the flight, you may take an action otherwise prohibited under § 382.21(a) of this part.
              [Doc. No. DOT-OST-2004-19482, 73 FR 27665, May 13, 2008, as amended at 75 FR 44887, July 30, 2010]

              § 382.25
              May a carrier require a passenger with a disability to provide advance notice that he or she is traveling on a flight?
              As a carrier, you must not require a passenger with a disability to provide advance notice of the fact that he or she is traveling on a flight.

              § 382.27
              May a carrier require a passenger with a disability to provide advance notice in order to obtain certain specific services in connection with a flight?
              (a) Except as provided in paragraph (b) of this section and § 382.133(e)(4) and (5) and (f)(5) and (6), as a carrier you must not require a passenger with a disability to provide advance notice in order to obtain services or accommodations required by this part.
              (b) You may require a passenger with a disability to provide up to 72 hours' advance notice and check in one hour before the check-in time for the general public to receive carrier-supplied in-flight medical oxygen on international flights, 48 hours' advance notice and check-in one hour before the check-in time for the general public to receive carrier-supplied in-flight medical oxygen on domestic flights, and 48 hours' advance notice and check-in one hour before the check-in time for the general public to use his/her ventilator, respirator, CPAP machine or POC.
              (c) You may require a passenger with a disability to provide up to 48 hours' advance notice and check in one hour before the check-in time for the general public to receive the following services and accommodations. The services listed in paragraphs (c)(1) through (c)(3) of this section are optional; you are not required to provide them, but you may choose to do so.
              (1) Carriage of an incubator;
              (2) Hook-up for a respirator, ventilator, CPAP machine or POC to the aircraft electrical power supply;
              (3) Accommodation for a passenger who must travel in a stretcher;
              (4) Transportation for an electric wheelchair on an aircraft with fewer than 60 seats;

              (5) Provision of hazardous materials packaging for batteries or other assistive devices that are required to have such packaging;

              (6) Accommodation for a group of ten or more qualified individuals with a disability, who make reservations and travel as a group; and
              (7) Provision of an on-board wheelchair on an aircraft with more than 60 seats that does not have an accessible lavatory.
              (8) Transportation of an emotional support or psychiatric service animal in the cabin;
              (9) Transportation of a service animal on a flight segment scheduled to take 8 hours or more;
              (10) Accommodation of a passenger who has both severe vision and hearing impairments (see § 382.29(b)(4)).
              (d) If the passenger with a disability provides the advance notice you require, consistent with this section, for a service that you must provide (see paragraphs (c)(4) through (c)(10) of this section) or choose to provide (see paragraphs (c)(1) through (c)(3) of this section), you must provide the requested service or accommodation.
              (e) Your reservation and other administrative systems must ensure that when passengers provide the advance notice that you require, consistent with this section, for services and accommodations, the notice is communicated, clearly and on time, to the people responsible for providing the requested service or accommodation.
              (f) If a passenger with a disability provides the advance notice you require, consistent with this section, and the passenger is forced to change to another flight (e.g., because of a flight cancellation), you must, to the maximum extent feasible, provide the accommodation on the new flight. If the new flight is another carrier's flight, you must provide the maximum feasible assistance to the other carrier in providing the accommodation the passenger requested from you.
              (g) If a passenger does not meet advance notice or check-in requirements you establish consistent with this section, you must still provide the service or accommodation if you can do so by making reasonable efforts, without delaying the flight.
              [Doc. No. DOT-OST-2004-19482, 73 FR 27665, May 13, 2008, as amended at 74 FR 11471, Mar. 18, 2009; 75 FR 44887, July 30, 2010; Doc. No. FAA-2014-0554, 81 FR 33120, May 24, 2016]

              § 382.29
              May a carrier require a passenger with a disability to travel with a safety assistant?
              (a) Except as provided in paragraph (b) of this section, you must not require that a passenger with a disability travel with another person as a condition of being provided air transportation.
              (b) You may require a passenger with a disability in one of the following categories to travel with a safety assistant as a condition of being provided air transportation, if you determine that a safety assistant is essential for safety:
              (1) A passenger traveling in a stretcher or incubator. The safety assistant for such a person must be capable of attending to the passenger's in-flight medical needs;
              (2) A passenger who, because of a mental disability, is unable to comprehend or respond appropriately to safety instructions from carrier personnel, including the safety briefing required by 14 CFR 121.571(a)(3) and (a)(4) or 14 CFR 135.117(b) or the safety regulations of a foreign carrier's government, as applicable;
              (3) A passenger with a mobility impairment so severe that the person is unable to physically assist in his or her own evacuation of the aircraft;
              (4) A passenger who has both severe hearing and severe vision impairments, if the passenger cannot establish some means of communication with carrier personnel that is adequate both to permit transmission of the safety briefing required by 14 CFR 121.57(a)(3) and (a)(4), 14 CFR 135,117(b) or the safety regulations of a foreign carrier's government, as applicable, and to enable the passenger to assist in his or her own evacuation of the aircraft in the event of an emergency. You may require a passenger with severe hearing and vision impairment who wishes to travel without a safety assistant to notify you at least 48 hours in advance to provide this explanation. If the passenger fails to meet this notice requirement, however, you must still accommodate him or her to the extent practicable.

              (c)(1) If you determine that a person meeting the criteria of paragraph (b)(2), (b)(3) or (b)(4) of this section must travel with a safety assistant, contrary to the individual's self-assessment that he or she is capable of traveling independently, you must not charge for the transportation of the safety assistant. You are not required to find or provide the safety assistant, however.
              (2) For purposes of paragraph (b)(4) of this section, you may require, contrary to the individual's self-assessment, that an individual with both severe hearing and vision impairments must travel with a safety assistant if you determine that—
              (i) The means of communication that the individual has explained to you does not adequately satisfy the objectives identified in paragraph (b)(4) of this section; or
              (ii) The individual proposes to establish communication by means of finger spelling and you cannot, within the time following the individual's notification, arrange for a flight crew member who can communicate using this method to serve the passenger's flight.
              (3) If a passenger voluntarily chooses to travel with a personal care attendant or safety assistant that you do not require, you may charge for the transportation of that person.
              (d) If, because there is not a seat available on a flight for a safety assistant whom the carrier has determined to be necessary, a passenger with a disability holding a confirmed reservation is unable to travel on the flight, you must compensate the passenger with a disability in an amount to be calculated as provided for instances of involuntary denied boarding under 14 CFR part 250, where part 250 applies.
              (e) For purposes of determining whether a seat is available for a safety assistant, you must deem the safety assistant to have checked in at the same time as the passenger with a disability.
              (f) Concern that a passenger with a disability may need personal care services (e.g., assistance in using lavatory facilities or with eating) is not a basis for requiring the passenger to travel with a safety assistant. You must explain this clearly in training or information you provide to your employees. You may advise passengers that your personnel are not required to provide such services.

              § 382.31
              May carriers impose special charges on passengers with a disability for providing services and accommodations required by this rule?
              (a) Except as otherwise provided in this part you must not, as a carrier, impose charges for providing facilities, equipment, or services that this rule requires to be provided to passengers with a disability. You may charge for services that this part does not require.
              (b) You may charge a passenger for the use of more than one seat if the passenger's size or condition (e.g., use of a stretcher) causes him or her to occupy the space of more than one seat. This is not considered a special charge under this section.
              [Doc. No. DOT-OST-2004-19482, 73 FR 27665, May 13, 2008, as amended at 78 FR 67914, Nov. 12, 2013]

              § 382.33
              May carriers impose other restrictions on passengers with a disability that they do not impose on other passengers?

              (a) As a carrier, you must not subject passengers with a disability to restrictions that do not apply to other passengers, except as otherwise permitted in this part (e.g., advance notice requirements for certain services permitted by § 382.27).
              (b) Restrictions you must not impose on passengers with a disability include, but are not limited to, the following:
              (1) Restricting passengers” movement within the terminal;
              (2) Requiring passengers to remain in a holding area or other location in order to receive transportation, services, or accommodations;
              (3) Making passengers sit on blankets on the aircraft;

              (4) Making passengers wear badges or other special identification (e.g., similar to badges worn by unaccompanied minors); or
              (5) Otherwise mandating separate treatment for passengers with a disability, unless permitted or required by this part or other applicable Federal requirements.

              § 382.35
              May carriers require passengers with a disability to sign waivers or releases?
              (a) As a carrier, you must not require passengers with a disability to sign a release or waiver of liability in order to receive transportation or to receive services or accommodations for a disability.
              (b) You must not require passengers with a disability to sign waivers of liability for damage to or loss of wheelchairs or other assistive devices, or for the loss of, death of, or injury to service animals. Carriers may note pre-existing damage to an assistive device to the same extent that carriers do this with respect to other checked baggage.

            Subpart C—Information for Passengers

              § 382.41
              What flight-related information must carriers provide to qualified individuals with a disability?

              As a carrier, you must provide the following information, on request, to qualified individuals with a disability or persons making inquiries on their behalf concerning the accessibility of the aircraft expected to make a particular flight. The information you provide must be specific to the aircraft you expect to use for the flight unless it is unfeasible for you to do so (e.g., because unpredictable circumstances such as weather or a mechanical problem require substitution of another aircraft that could affect the location or availability of an accommodation). The required information is:

              (a) The specific location of seats, if any, with movable armrests (i.e., by row and seat number);
              (b) The specific location of seats (i.e., by row and seat number) that the carrier, consistent with this part, does not make available to passengers with a disability (e.g., exit row seats);
              (c) Any aircraft-related, service-related or other limitations on the ability to accommodate passengers with a disability, including limitations on the availability of level-entry boarding to the aircraft at any airport involved with the flight. You must provide this information to any passenger who states that he or she uses a wheelchair for boarding, even if the passenger does not explicitly request the information.
              (d) Any limitations on the availability of storage facilities, in the cabin or in the cargo bay, for mobility aids or other assistive devices commonly used by passengers with a disability, including storage in the cabin of a passenger's wheelchair as provided in §§ 382.67 and 382.123 of this part;
              (e) Whether the aircraft has an accessible lavatory; and
              (f) The types of services to passengers with a disability that are or are not available on the flight.

              § 382.43
              Must information and reservation services of carriers be accessible to individuals with visual, hearing, and other disabilities?
              (a) If, as a carrier, you provide telephone reservation and information service to the public, you must make this service available to individuals who use a text telephone (TTY), whether via your own TTY, voice relay, or other available technology, as follows:
              (1) You must provide access to TTY users during the same hours as the telephone service is available to the general public.

              (2) You must ensure that the response time for answering calls and the level of service provided to TTY users is substantially equivalent to the response time and level of service provided to the general public (i.e., non-TTY users).
              (3) You must not subject TTY users to charges exceeding those that apply to non-TTY users of telephone information and reservation service.

              (4) In any medium in which you list the telephone number of your information and reservation service for the general public, you must also list your TTY number if you have one. If you do not have a TTY number, you must state how TTY users can reach your information and reservation service (e.g., via a voice relay service).
              (5) If you are a foreign carrier, you must meet this requirement by May 13, 2010.

              (b) The requirements of paragraph (a) do not apply to you in any country in which the telecommunications infrastructure does not readily permit compliance.

              (c) If you are a U.S. or foreign air carrier that operates at least one aircraft having a designed seating capacity of more than 60 passengers and owns or controls a primary Web site that markets passenger air transportation, or a tour (i.e., a combination of air transportation and ground or cruise accommodations), or tour component (e.g., a hotel stay) that must be purchased with air transportation, you must ensure the public-facing Web pages on your primary Web site are accessible to individuals with disabilities as provided in paragraphs (c)(1) through (4) of this section. Only Web sites that market air transportation to the general public in the United States must be accessible to individuals with disabilities. The following are among the characteristics of a primary Web site that markets to the general public in the U.S.: the content can be viewed in English, the site advertises or sells flights operating to, from, or within the United States, and the site displays fares in U.S. dollars.
              (1) Your primary Web site must conform to all Success Criteria and all Conformance Requirements from the World Wide Web Consortium (W3C) Recommendation 11 December 2008, Web site Content Accessibility Guidelines (WCAG) 2.0 for Level AA as follows:
              (i) Web pages associated with obtaining the following core air travel services and information that are offered on your primary Web site are conformant by December 12, 2015:
              (A) Booking or changing a reservation, including all flight amenities;
              (B) Checking in for a flight;
              (C) Accessing a personal travel itinerary;
              (D) Accessing the status of a flight;
              (E) Accessing a personal frequent flyer account;
              (F) Accessing flight schedules; and
              (G) Accessing carrier contact information.
              (ii) All remaining Web pages on your primary Web site are conformant by December 12, 2016.
              (2) Your primary Web site must be tested in consultation with individuals with disabilities or members of disability organization(s) who use or want to use carrier Web sites to research or book air transportation in order to obtain their feedback on the Web site's accessibility and usability before the dates specified in paragraph (c)(1) of this section. Collectively, such individuals must be able to provide feedback on the usability of the Web site by individuals with visual, auditory, tactile, and cognitive disabilities. Consultation is required to ensure that your Web site is usable by individuals with disabilities by the date specified in paragraph (c)(1).
              (3) You are permitted to use a Level AA conforming alternate version only when conforming a public-facing Web page to all WCAG 2.0 Level AA success criteria would constitute an undue burden or fundamentally alter the information or functionality provided by that page.
              (4) You must assist prospective passengers who indicate that they are unable to use your Web site due to a disability and contact you through other channels (e.g., by telephone or at the ticket counter) as follows:
              (i) Disclose Web-based discount fares to the passenger if his or her itinerary qualifies for the discounted fare.
              (ii) Provide Web-based amenities to the passenger, such as waiving any fee applicable to making a reservation or purchasing a ticket using a method other than your Web site (e.g., by telephone), unless the fee applies to other customers purchasing the same fare online.
              (d) As a carrier covered under paragraph (c) of this section, you must provide a mechanism on your primary Web site for persons with disabilities to request disability accommodation services for future flights, including but not limited to wheelchair assistance, seating accommodation, escort assistance for a visually impaired passenger, and stowage of an assistive device no later than December 12, 2015. You may require individuals who request accommodations using this mechanism to provide contact information (e.g., name, daytime phone, evening phone, and email address) for follow-up by your customer service department or medical desk.

              (e) As a carrier covered under paragraph (c) of this section, you must provide a disclaimer activated when a user clicks a link on your primary Web site to an external Web site or to third-party software informing the user that the Web site or software may not follow the same accessibility policies no later than December 12, 2016.
              [Doc. No. DOT-OST-2004-19482, 73 FR 27665, May 13, 2008, as amended at 74 FR 11471, Mar. 18, 2009; 78 FR 67914, Nov. 12, 2013]

              § 382.45
              Must carriers make copies of this Part available to passengers?
              (a) As a carrier, you must keep a current copy of this part at each airport you serve. As a foreign carrier, you must keep a copy of this part at each airport serving a flight you operate that begins or ends at a U.S. airport. You must make this copy available for review by any member of the public on request.
              (b) If you have a Web site, it must provide notice to consumers that they can obtain a copy of this part in an accessible format from the Department of Transportation by any of the following means:
              (1) For calls made from within the United States, by telephone via the Toll-Free Hotline for Air Travelers with Disabilities at 1-800-778-4838 (voice) or 1-800-455-9880 (TTY),
              (2) By telephone to the Aviation Consumer Protection Division at 202-366-2220 (voice) or 202-366-0511 (TTY),
              (3) By mail to the Air Consumer Protection Division, C-75, U.S. Department of Transportation, 1200 New Jersey Ave., SE., West Building, Room W96-432, Washington, DC 20590, and

              (4) On the Aviation Consumer Protection Division's Web site (http://airconsumer.ost.dot.gov).

            Subpart D—Accessibility of Airport Facilities

              § 382.51
              What requirements must carriers meet concerning the accessibility of airport facilities?
              (a) As a carrier, you must comply with the following requirements with respect to all terminal facilities you own, lease, or control at a U.S. airport:
              (1) You must ensure that terminal facilities providing access to air transportation are readily accessible to and usable by individuals with disabilities, including individuals who use wheelchairs. You are deemed to comply with this obligation if the facilities meet requirements applying to places of public accommodation under Department of Justice (DOJ) regulations implementing Title III of the Americans with Disabilities Act (ADA).

              (2) With respect to any situation in which boarding and deplaning by level-entry loading bridges or accessible passenger lounges to and from an aircraft is not available, you must ensure that there is an accessible route between the gate and the area from which aircraft are boarded (e.g., the tarmac in a situation in which level-entry boarding is not available). An accessible route is one meeting the requirements of the Americans with Disabilities Act Accessibility Guidelines (ADAAG), sections 4.3.3 through 4.3.10.
              (3) You must ensure that systems of intra- and inter-terminal transportation, including, but not limited to, moving sidewalks, shuttle vehicles and people movers, comply with applicable requirements of the Department of Transportation's ADA rules (49 CFR parts 37 and 38).
              (4) Your contracts or leases with airport operators concerning the use of airport facilities must set forth your airport accessibility responsibility under this part and that of the airport operator under applicable section 504 and ADA rules of the Department of Transportation and Department of Justice.
              (5) In cooperation with the airport operator and in consultation with local service animal training organization(s), you must provide animal relief areas for service animals that accompany passengers departing, connecting, or arriving at an airport on your flights.
              (6) You must enable captioning at all times on all televisions and other audio-visual displays that are capable of displaying captions and that are located in any portion of the terminal to which any passengers have access on May 13, 2009. The captioning must be high-contrast insofar as is feasible.

              (7) You must replace any televisions and other audio-visual displays providing passengers with safety briefings, information, or entertainment that do not have high-contrast captioning capability with equipment that does have such capability whenever such equipment is replaced in the normal course of operations and/or whenever areas of the terminal in which such equipment is located are undergoing substantial renovation or expansion.
              (8) If you newly acquire televisions and other audio-visual displays for passenger safety briefings, information, or entertainment on or after May 13, 2009, such equipment must have high-contrast captioning capability.
              (b) As a carrier, you must ensure that passengers with a disability can readily use all terminal facilities you own, lease, or control at a foreign airport. In the case of foreign carriers, this requirement applies only to terminal facilities that serve flights covered by § 382.7 of this part.

              (1) This means that passengers with a disability must be able to move readily through such terminal facilities to get to or from the gate and any other area from which passengers board the aircraft you use for such flights (e.g., the tarmac in the case of flights that do not use level-entry boarding). This obligation is in addition to your obligation to provide enplaning, deplaning, and connecting assistance to passengers.
              (2) You may meet this obligation through any combination of facility accessibility, auxiliary aids, equipment, the assistance of personnel, or other appropriate means consistent with the safety and dignity of passengers with a disability.
              (c) As a foreign carrier, you must meet the requirements of this section by May 13, 2010, except as otherwise indicated in paragraph (a). As a U.S. carrier, you must meet the requirements of paragraph (b) of this section by May 13, 2010.
              [Doc. No. DOT-OST-2004-19482, 73 FR 27665, May 13, 2008, as amended at 74 FR 11471, Mar. 18, 2009; 75 FR 44887, July 30, 2010]

              § 382.53
              What information must carriers give individuals with a vision or hearing impairment at airports?
              (a)(1) As a U.S. carrier, you must ensure that passengers with a disability who identify themselves as persons needing visual or hearing assistance have prompt access to the same information provided to other passengers at each gate, ticketing area, and customer service desk that you own, lease, or control at any U.S. or foreign airport, to the extent that this does not interfere with employees' safety and security duties as set forth in FAA, TSA, and applicable foreign regulations.
              (2) As a foreign carrier, you must make this information available at each gate, ticketing area, and customer service desk that you own, lease, or control at any U.S. airport. At foreign airports, you must make this information available only at gates, ticketing areas, or customer service desks that you own, lease, or control and only for flights that begin or end in the U.S.
              (3) As a U.S. or foreign carrier, at any U.S. airport covered by this paragraph where the airport has effective control over the covered gates, ticketing areas, and customer service desks, you and the airport are jointly responsible for compliance.

              (b) The information you must provide under paragraph (a) of this section includes, but is not limited to, the following: Information concerning flight safety, ticketing, flight check-in, flight delays or cancellations, schedule changes, boarding information, connections, gate assignments, checking baggage, volunteer solicitation on oversold flights (e.g., offers of compensation for surrendering a reservation), individuals being paged by airlines, aircraft changes that affect the travel of persons with disabilities, and emergencies (e.g., fire, bomb threat).
              (c) With respect to information on claiming baggage, you must provide the information to passengers who identify themselves as persons needing visual or hearing assistance no later than you provide this information to other passengers.
              [Doc. No. DOT-OST-2004-19482, 73 FR 27665, May 13, 2008, as amended at 74 FR 11471, Mar. 18, 2009]

              § 382.55
              May carriers impose security screening procedures for passengers with disabilities that go beyond TSA requirements or those of foreign governments?
              (a) All passengers, including those with disabilities, are subject to TSA security screening requirements at U.S. airports. In addition, passengers at foreign airports, including those with disabilities, may be subject to security screening measures required by law of the country in which the airport is located.
              (b) If, as a carrier, you impose security screening procedures for passengers with disabilities that go beyond those mandated by TSA (or, at a foreign airport, beyond the law of the country in which the airport is located), you must ensure that they meet the following requirements:
              (1) You must use the same criteria for applying security screening procedures to passengers with disabilities as to other passengers.
              (2) You must not subject a passenger with a disability to special screening procedures because the person is traveling with a mobility aid or other assistive device if the person using the aid or device clears the security system without activating it.
              (i) However, your security personnel may examine a mobility aid or assistive device which, in their judgment, may conceal a weapon or other prohibited item.
              (ii) You may conduct security searches of qualified individuals with a disability whose aids activate the security system in the same manner as for other passengers.
              (3) You must not require private security screenings of passengers with a disability to a greater extent, or for any different reason, than for other passengers.
              (c) Except as provided in paragraph (d) of this section, if a passenger with a disability requests a private screening in a timely manner, you must provide it in time for the passenger to enplane.
              (d) If you use technology that can conduct an appropriate screening of a passenger with a disability without necessitating a physical search of the person, you are not required to provide a private screening.
              [Doc. No. DOT-OST-2004-19482, 73 FR 27665, May 13, 2008, as amended at 74 FR 11471, Mar. 18, 2009]

              § 382.57
              What accessibility requirements apply to automated airport kiosks?
              (a) As a carrier, you must comply with the following requirements with respect to any automated airport kiosk you own, lease, or control at a U.S. airport with 10,000 or more enplanements per year.
              (1) You must ensure that all automated airport kiosks installed on or after December 12, 2016, are models that meet the design specifications set forth in paragraph (c) of this section until at least 25 percent of automated kiosks provided in each location at the airport (i.e., each cluster of kiosks and all stand-alone kiosks at the airport) meets this specification.
              (2) You must ensure that at least 25 percent of automated kiosks you own, lease, or control in each location at a U.S. airport meet the design specifications in paragraph (c) of this section by December 12, 2022.
              (3) When the kiosks provided in a location at the airport perform more than one function (e.g., print boarding passes/bag tags, accept payment for flight amenities such as seating upgrades/meals/WiFi access, rebook tickets, etc.), you must ensure that the accessible kiosks provide all the same functions as the inaccessible kiosks in that location.
              (4) You must ensure that a passenger with a disability who requests an accessible automated kiosk is given priority access to any available accessible kiosk you own, lease, or control in that location at the airport.
              (5) You must ensure that each automated airport kiosk that meets the design specifications in paragraph (c) of this section is:
              (i) Visually and tactilely identifiable to users as accessible (e.g., an international symbol of accessibility affixed to the front of the device).
              (ii) Maintained in proper working condition.

              (b) As a carrier, you must comply with the following requirements for any shared-use automated airport kiosks you jointly own, lease, or control at a U.S. airport with 10,000 or more enplanements per year.
              (1) You must ensure that all shared-use automated airport kiosks you jointly own, lease, or control installed on or after December 12, 2016, meet the design specifications in paragraph (c) of this section until at least 25 percent of automated kiosks provided in each location at the airport (i.e., each cluster of kiosks and all stand-alone kiosks at an airport) meet this specification.
              (2) You must ensure that at least 25 percent of shared-use automated kiosks you own, lease, or control in each location at the airport meet the design specifications in paragraph (c) of this section by December 12, 2022.
              (3) When shared-use automated kiosks provided in a location at the airport perform more than one function (e.g., print boarding passes/bag tags, accept payment for flight amenities such as seating upgrades/meals/WiFi access, rebook tickets, etc.), you must ensure that the accessible kiosks provide all the same functions as the inaccessible kiosks in that location.
              (4) You must ensure that each automated airport kiosk that meets the design specifications set forth in paragraph (c) of this section is:
              (i) Visually and tactilely identifiable to users as accessible (e.g., an international symbol of accessibility affixed to the front of the device; and
              (ii) Maintained in proper working condition.
              (5) As a carrier, you are jointly and severally liable with airport operators and/or other participating carriers for ensuring that shared-use automated airport kiosks are compliant with the requirements of paragraphs (b) and (c) of this section.
              (c) You must ensure that the automated airport kiosks provided in accordance with this section conform to the following technical accessibility standards with respect to their physical design and the functions they perform:
              (1) Self contained. Except for personal headsets and audio loops, automated kiosks must be operable without requiring the user to attach assistive technology.
              (2) Clear floor or ground space. A clear floor or ground space complying with section 305 of the U.S. Department of Justice's 2010 ADA Standards for Accessible Design, 28 CFR 35.104 (defining the “2010 Standards” for title II as the requirements set forth in appendices B and D to 36 CFR part 1191 and the requirements contained in 28 CFR 35.151) (hereinafter 2010 ADA Standards) must be provided.
              (3) Operable parts. Operable parts must comply with section 309 of the 2010 ADA Standards, and the following requirements:
              (i) Identification. Operable parts must be tactilely discernible without activation;
              (ii) Timing. Where a timed response is required, the user must be alerted visually and by touch or sound and must be given the opportunity to indicate that more time is required;
              (iii) Status indicators. Status indicators, including all locking or toggle controls or keys (e.g., Caps Lock and Num Lock keys), must be discernible visually and by touch or sound; and
              (iv) Color. Color coding must not be used as the only means of conveying information, indicating an action, prompting a response, or distinguishing a visual element.
              (4) Privacy. Automated airport kiosks must provide the opportunity for the same degree of privacy of input and output available to all individuals. However, if an option is provided to blank the screen in the speech output mode, the screen must blank when activated by the user, not automatically.
              (5) Output. Automated airport kiosks must comply with paragraphs (c)(5)(i) through (iv) of this section.
              (i) Speech output enabled. Automated airport kiosks must provide an option for speech output. Operating instructions and orientation, visible transaction prompts, user input verification, error messages, and all other visual information for full use must be accessible to and independently usable by individuals with vision impairments. Speech output must be delivered through a mechanism that is readily available to all users, including but not limited to, an industry standard connector or a telephone handset. Speech output must be recorded or digitized human, or synthesized. Speech output must be coordinated with information displayed on the screen. Speech output must comply with paragraphs (c)(5)(i)(A) through (F) of this section.
              (A) When asterisks or other masking characters are used to represent personal identification numbers or other visual output that is not displayed for security purposes, the masking characters must be spoken (“*” spoken as “asterisk”) rather than presented as beep tones or speech representing the concealed information.
              (B) Advertisements and other similar information are not required to be audible unless they convey information that can be used in the transaction being conducted.
              (C) Speech for any single function must be automatically interrupted when a transaction is selected or navigation controls are used. Speech must be capable of being repeated and paused by the user.
              (D) Where receipts, tickets, or other outputs are provided as a result of a transaction, speech output must include all information necessary to complete or verify the transaction, except that—
              (1) Automated airport kiosk location, date and time of transaction, customer account numbers, and the kiosk identifier are not required to be audible;
              (2) Information that duplicates information available on-screen and already presented audibly is not required to be repeated; and
              (3) Printed copies of a carrier's contract of carriage, applicable fare rules, itineraries and other similar supplemental information that may be included with a boarding pass are not required to be audible.
              (ii) Volume control. Automated kiosks must provide volume control complying with paragraphs (c)(5)(ii)(A) and (B) of this section.
              (A) Private listening. Where speech required by paragraph (c)(5)(i) of this section is delivered through a mechanism for private listening, the automated kiosk must provide a means for the user to control the volume. A function must be provided to automatically reset the volume to the default level after every use.
              (B) Speaker volume. Where sound is delivered through speakers on the automated kiosk, incremental volume control must be provided with output amplification up to a level of at least 65 dB SPL. Where the ambient noise level of the environment is above 45 dB SPL, a volume gain of at least 20 dB above the ambient level must be user selectable. A function must be provided to automatically reset the volume to the default level after every use.
              (iii) Captioning. Multimedia content that contains speech or other audio information necessary for the comprehension of the content must be open or closed captioned. Advertisements and other similar information are not required to be captioned unless they convey information that can be used in the transaction being conducted.
              (iv) Tickets and boarding passes. Where tickets or boarding passes are provided, tickets and boarding passes must have an orientation that is tactilely discernible if orientation is important to further use of the ticket or boarding pass.
              (6) Input. Input devices must comply with paragraphs (c)(6)(i) through (iv) of this section.
              (i) Input controls. At least one input control that is tactilely discernible without activation must be provided for each function. Where provided, key surfaces not on active areas of display screens, must be raised above surrounding surfaces. Where touch or membrane keys are the only method of input, each must be tactilely discernible from surrounding surfaces and adjacent keys.
              (ii) Alphabetic keys. Alphabetic keys must be arranged in a QWERTY keyboard layout. The “F” and “J” keys must be tactilely distinct from the other keys.
              (iii) Numeric keys. Numeric keys must be arranged in a 12-key ascending or descending keypad layout or must be arranged in a row above the alphabetic keys on a QWERTY keyboard. The “5” key must be tactilely distinct from the other keys.
              (iv) Function keys. Function keys must comply with paragraphs (c)(6)(iv)(A) and (B) of this section.
              (A) Contrast. Function keys must contrast visually from background surfaces. Characters and symbols on key surfaces must contrast visually from key surfaces. Visual contrast must be either light-on-dark or dark-on-light. However, tactile symbols required by (c)(6)(iv)(B) are not required to comply with (c)(6)(iv)(A) of this section.
              (B) Tactile symbols. Function key surfaces must have tactile symbols as follows: Enter or Proceed key: raised circle; Clear or Correct key: raised left arrow; Cancel key: raised letter ex; Add Value key: raised plus sign; Decrease Value key: raised minus sign.
              (7) Display screen. The display screen must comply with paragraphs (c)(7)(i) and (ii) of this section.
              (i) Visibility. The display screen must be visible from a point located 40 inches (1015 mm) above the center of the clear floor space in front of the automated kiosk.
              (ii) Characters. Characters displayed on the screen must be in a sans serif font. Characters must be 3/16 inch (4.8 mm) high minimum based on the uppercase letter “I.” Characters must contrast with their background with a minimum luminosity contrast ratio of 3:1.
              (8) Braille instructions. Braille instructions for initiating the speech mode must be provided. Braille must comply with section 703.3 of the 2010 ADA Standards.
              (9) Biometrics. Biometrics must not be the only means for user identification or control, unless at least two biometric options that use different biological characteristics are provided.
              (d) You must provide equivalent service upon request to passengers with a disability who cannot readily use your automated airport kiosks (e.g., by directing a passenger who is blind to an accessible automated kiosk, assisting a passenger in using an inaccessible automated kiosk, assisting a passenger who due to his or her disability cannot use an accessible automated kiosk by allowing the passenger to come to the front of the line at the check-in counter).
              [78 FR 67915, Nov. 12, 2013]

            Subpart E—Accessibility of Aircraft

              § 382.61
              What are the requirements for movable aisle armrests?
              (a) As a carrier, you must ensure that aircraft with 30 or more passenger seats on which passenger aisle seats have armrests are equipped with movable aisle armrests on at least one-half of the aisle seats in rows in which passengers with mobility impairments are permitted to sit under FAA or applicable foreign government safety rules.
              (b) You are not required to provide movable armrests on aisle seats of rows which a passenger with a mobility impairment is precluded from using by an FAA safety rule.
              (c) You must ensure that these movable aisle armrests are provided proportionately in all classes of service in the cabin. For example, if 80 percent of the aisle seats in which passengers with mobility impairments may sit are in coach, and 20 percent are in first class, then 80 percent of the movable aisle armrests must be in coach, with 20 percent in first class.
              (d) For aircraft equipped with movable aisle armrests, you must configure cabins, or establish administrative systems, to ensure that passengers with mobility impairments or other passengers with a disability can readily identify and obtain seating in rows with movable aisle armrests. You must provide this information by specific seat and row number.
              (e) You are not required to retrofit cabin interiors of existing aircraft to comply with the requirements of this section. However, if you replace any of an aircraft's aisle seats with newly manufactured seats, the new seats must include movable aisle armrests as required by this section. However, an aircraft is never required to have movable aisle armrests on more than one half of the aisle seats.

              (f) As a foreign carrier, you must comply with the requirements of paragraphs (a) through (d) of this section with respect to new aircraft you operate that were initially ordered after May 13, 2009 or which are delivered after May 13, 2010. As a U.S. carrier, the requirements of paragraphs (a), (b), (d), and (e) of this section applies to you with respect to new aircraft you operate that were initially ordered after April 5, 1990, or which are delivered after April 5, 1992. As a U.S. carrier, paragraph (c) of this section applies to you with respect to new aircraft you operate that were initially ordered after May 13, 2009 or which were delivered after May 13, 2010.
              (g) As a foreign carrier, you must comply with the requirements of paragraph (e) of this section with respect to seats ordered after May 13, 2009.

              § 382.63
              What are the requirements for accessible lavatories?
              (a) As a carrier, you must ensure that aircraft with more than one aisle in which lavatories are provided shall include at least one accessible lavatory.
              (1) The accessible lavatory must permit a qualified individual with a disability to enter, maneuver within as necessary to use all lavatory facilities, and leave, by means of the aircraft's on-board wheelchair.
              (2) The accessible lavatory must afford privacy to persons using the on-board wheelchair equivalent to that afforded ambulatory users.
              (3) The lavatory shall provide door locks, accessible call buttons, grab bars, faucets and other controls, and dispensers usable by qualified individuals with a disability, including wheelchair users and persons with manual impairments.
              (b) With respect to aircraft with only one aisle in which lavatories are provided, you may, but are not required to, provide an accessible lavatory.
              (c) You are not required to retrofit cabin interiors of existing aircraft to comply with the requirements of this section. However, if you replace a lavatory on an aircraft with more than one aisle, you must replace it with an accessible lavatory.
              (d) As a foreign carrier, you must comply with the requirements of paragraph (a) of this section with respect to new aircraft you operate that were initially ordered after May 13, 2009 or which are delivered after May 13, 2010. As a U.S. carrier, this requirement applies to you with respect to new aircraft you operate that were initially ordered after April 5, 1990, or which were delivered after April 5, 1992.
              (e) As a foreign carrier, you must comply with the requirements of paragraph (c) of this section beginning May 13, 2009. As a U.S. carrier, these requirements apply to you with respect to new aircraft you operate that were initially ordered after April 5, 1990, or which were delivered after April 5, 1992.

              § 382.65
              What are the requirements concerning on-board wheelchairs?
              (a) As a carrier, you must equip aircraft that have more than 60 passenger seats, and that have an accessible lavatory (whether or not having such a lavatory is required by § 382.63 of this Part) with an on-board wheelchair. The Aerospatiale/Aeritalia ATR-72 and the British Aerospace Advanced Turboprop (ATP), in configurations having between 60 and 70 passenger seats, are exempt from this requirement.
              (b) If a passenger asks you to provide an on-board wheelchair on a particular flight, you must provide it if the aircraft being used for the flight has more than 60 passenger seats, even if the aircraft does not have an accessible lavatory.
              (1) The basis of the passenger's request must be that he or she can use an inaccessible lavatory but cannot reach it from a seat without using an on-board wheelchair.
              (2) You may require the passenger to provide the advance notice specified in § 382.27 to receive this service.
              (c) You must ensure that on-board wheelchairs meet the following standards:
              (1) On-board wheelchairs must include footrests, armrests which are movable or removable, adequate occupant restraint systems, a backrest height that permits assistance to passengers in transferring, structurally sound handles for maneuvering the occupied chair, and wheel locks or another adequate means to prevent chair movement during transfer or turbulence.

              (2) The chair must be designed to be compatible with the maneuvering space, aisle width, and seat height of the aircraft on which it is to be used, and to be easily pushed, pulled, and turned in the cabin environment by carrier personnel.

              (d) As a foreign carrier, you must meet this requirement as of May 13, 2010. As a U.S. carrier, you must meet this requirement by May 13, 2009.

              § 382.67
              What is the requirement for priority space in the cabin to store passengers' wheelchairs?
              (a) As a carrier, you must ensure that there is priority space (i.e., a closet, or a row of seats where a wheelchair may be strapped using a strap kit that complies with applicable Federal Aviation Administration or applicable foreign government regulations on the stowage of cargo in the cabin compartment) in the cabin of sufficient size to stow at least one typical adult-sized folding, collapsible, or break-down manual passenger wheelchair, the dimensions of which are 13 inches by 36 inches by 42 inches or less without having to remove the wheels or otherwise disassemble it. This section applies to any aircraft with 100 or more passenger seats and this space must be other than the overhead compartments and under-seat spaces routinely used for passengers' carry-on items.
              (b) If you are a carrier that uses the seat-strapping method to stow a manual passenger wheelchair, you must ensure that there is priority space for at least two such wheelchairs, if stowing the second passenger wheelchair would not displace passengers.
              (c) If you are a carrier that uses a closet as the priority space to stow a manual passenger wheelchair, you must install a sign or placard prominently on the closet indicating that such wheelchairs and other assistive devices are to be stowed in this area with priority over other items brought onto the aircraft by other passengers or crew, including crew luggage, as set forth in § 382.123.
              (d) If passengers holding confirmed reservations are not able to travel on a flight because their seats are being used to stow a passenger's wheelchair as required by paragraph (a) of this section, carriers must compensate those passengers in an amount to be calculated as provided for in instances of involuntary denied boarding under 14 CFR part 250, where part 250 applies.
              (e) As a carrier, you must never request or suggest that a passenger not stow his or her wheelchair in the cabin to accommodate other passengers (e.g., informing a passenger that stowing his or her wheelchair in the cabin will require other passengers to be removed from the flight), or for any other non-safety related reason (e.g., that it is easier for the carrier if the wheelchair is stowed in the cargo compartment).
              (f) As a carrier, you must offer pre-boarding to a passenger stowing his or her wheelchair in the cabin.
              (g) As a foreign carrier, you must meet the requirement of this section for new aircraft ordered after May 13, 2009, or delivered after May 13, 2010. As a U.S. carrier, this section applies to you with respect to new aircraft you operate that were ordered after April 5, 1990, or which were delivered after April 5, 1992.
              [78 FR 67923, Nov. 12, 2013]

              § 382.69
              What requirements must carriers meet concerning the accessibility of videos, DVDs, and other audio-visual presentations shown on-aircraft to individuals who are deaf or hard of hearing?
              (a) As a carrier, you must ensure that all new videos, DVDs, and other audio-visual displays played on aircraft for safety purposes, and all such new audio-visual displays played on aircraft for informational purposes that were created under your control, are high-contrast captioned. The captioning must be in the predominant language or languages in which you communicate with passengers on the flight.
              (b) The requirements of paragraph (a) of this section go into effect with respect to audio-visual displays used for safety purposes on November 10, 2009.

              (c) Between May 13, 2009 and November 9, 2009, U.S. carriers must ensure that all videos, DVDs, and other audio-visual displays played on aircraft for safety purposes have open captioning or an inset for a sign language interpreter, unless such captioning or inset either would interfere with the video presentation so as to render it ineffective or would not be large enough to be readable, in which case these carriers must use an equivalent non-video alternative for transmitting the briefing to passengers with hearing impairments.

              (d) The requirements of paragraph (a) of this section go into effect with respect to informational displays on January 8, 2010.

              § 382.71
              What other aircraft accessibility requirements apply to carriers?
              (a) As a carrier, you must maintain all aircraft accessibility features in proper working order.
              (b) You must ensure that any replacement or refurbishing of the aircraft cabin or its elements does not reduce the accessibility of that element to a level below that specified for new aircraft in this part.
              [Doc. No. DOT-OST-2004-19482, 73 FR 27665, May 13, 2008, as amended at 74 FR 11471, Mar. 18, 2009]

            Subpart F—Seating Accommodations

              § 382.81
              For which passengers must carriers make seating accommodations?
              As a carrier, you must provide the following seating accommodations to the following passengers on request, if the passenger self-identifies to you as having a disability specified in this section and the type of seating accommodation in question exists on the particular aircraft. Once the passenger self-identifies to you, you must ensure that the information is recorded and properly transmitted to personnel responsible for providing the accommodation.
              (a) For a passenger who uses an aisle chair to access the aircraft and who cannot readily transfer over a fixed aisle armrest, you must provide a seat in a row with a movable aisle armrest. You must ensure that your personnel are trained in the location and proper use of movable aisle armrests, including appropriate transfer techniques. You must ensure that aisle seats with movable armrests are clearly identifiable.
              (b) You must provide an adjoining seat for a person assisting a passenger with a disability in the following circumstances:

              (1) When a passenger with a disability is traveling with a personal care attendant who will be performing a function for the individual during the flight that airline personnel are not required to perform (e.g., assistance with eating);
              (2) When a passenger with a vision impairment is traveling with a reader/assistant who will be performing functions for the individual during the flight;
              (3) When a passenger with a hearing impairment is traveling with an interpreter who will be performing functions for the individual during the flight; or
              (4) When you require a passenger to travel with a safety assistant (see § 382.29).
              (c) For a passenger with a disability traveling with a service animal, you must provide, as the passenger requests, either a bulkhead seat or a seat other than a bulkhead seat.
              (d) For a passenger with a fused or immobilized leg, you must provide a bulkhead seat or other seat that provides greater legroom than other seats, on the side of an aisle that better accommodates the individual's disability.

              § 382.83
              Through what mechanisms do carriers make seating accommodations?

              (a) If you are a carrier that provides advance seat assignments to passengers (i.e., offer seat assignments to passengers before the day of the flight), you must comply with the requirements of § 382.81 of this part by any of the following methods:
              (1) You may “block” an adequate number of the seats used to provide the seating accommodations required by § 382.81.
              (i) You must not assign these seats to passengers who do not meet the criteria of § 382.81 until 24 hours before the scheduled departure of the flight.
              (ii) At any time up until 24 hours before the scheduled departure of the flight, you must assign a seat meeting the requirements of this section to a passenger with a disability meeting one or more of the requirements of § 382.81 who requests it, at the time the passenger initially makes the request.

              (iii) If a passenger with a disability specified in § 382.81 does not make a request at least 24 hours before the scheduled departure of the flight, you must meet the passenger's request to the extent practicable, but you are not required to reassign a seat assigned to another passenger in order to do so.
              (2) You may designate an adequate number of the seats used to provide seating accommodations required by § 382.81 as “priority seats” for passengers with a disability.
              (i) You must provide notice that all passengers assigned these seats (other than passengers with a disability listed in § 382.81 of this part) are subject to being reassigned to another seat if necessary to provide a seating accommodation required by this section.
              (ii) You may provide this notice through your computer reservation system, verbal information provided by reservation personnel, ticket notices, gate announcements, counter signs, seat cards or notices, frequent-flier literature, or other appropriate means.
              (iii) You must assign a seat meeting the requirements of this section to a passenger with a disability listed in § 382.81 of this part who requests the accommodation at the time the passenger makes the request. You may require such a passenger to check in and request the seating accommodation at least one hour before the standard check-in time for the flight. If all designated priority seats that would accommodate the passenger have been assigned to other passengers, you must reassign the seats of the other passengers as needed to provide the requested accommodation.
              (iv) If a passenger with a disability listed in § 382.81 does not check in at least an hour before the standard check-in time for the general public, you must meet the individual's request to the extent practicable, but you are not required to reassign a seat assigned to another passenger in order to do so.
              (b) If you assign seats to passengers, but not until the date of the flight, you must use the “priority seating” approach of paragraph (a)(2) of this section.
              (c) If you do not provide advance seat assignments to passengers, you must allow passengers specified in § 382.81 to board the aircraft before other passengers, including other “preboarded” passengers, so that the passengers needing seating accommodations can select seats that best meet their needs.
              (d) As a carrier, if you wish to use a different method of providing seating assignment accommodations to passengers with disabilities from those specified in this subpart, you must obtain the written concurrence of the Department of Transportation. Contact the Department at the address cited in § 382.159 of this part.

              § 382.85
              What seating accommodations must carriers make to passengers in circumstances not covered by § 382.81 (a) through (d)?
              As a carrier, you must provide the following seating accommodations to a passenger who self-identifies as having a disability other than one in the four categories listed in § 382.81 (a) through (d) of this part and as needing a seat assignment accommodation in order to readily access and use the carrier's air transportation services:
              (a) As a carrier that assigns seats in advance, you must provide accommodations in the following ways:
              (1) If you use the “seat-blocking” mechanism of § 382.83(a)(1) of this part, you must implement the requirements of this section as follows:
              (i) When a passenger with a disability not described in § 382.81(a) through (d) of this part makes a reservation more than 24 hours before the scheduled departure time of the flight, you are not required to offer the passenger one of the seats blocked for the use of passengers with a disability listed under § 382.81.
              (ii) However, you must assign to the passenger any seat, not already assigned to another passenger that accommodates the passenger's needs, even if that seat is not available for assignment to the general passenger population at the time of the request.
              (2) If you use the “designated priority seats” mechanism of § 382.83(a)(2) of this part, you must implement the requirements of this section as follows:

              (i) When a passenger with a disability not described in § 382.81 makes a reservation, you must assign to the passenger any seat, not already assigned to another passenger, that accommodates the passenger's needs, even if that seat is not available for assignment to the general passenger population at the time of the request. You may require a passenger making such a request to check in one hour before the standard check-in time for the flight.
              (ii) If such a passenger is assigned to a designated priority seat, he or she is subject to being reassigned to another seat as provided in § 382.83(a)(2)(i) of this subpart.
              (b) On flights where advance seat assignments are not offered, you must provide seating accommodations under this section by allowing passengers to board the aircraft before other passengers, including other “preboarded” passengers, so that the individuals needing seating accommodations can select seats that best meet their needs.
              (c) If you assign seats to passengers, but not until the date of the flight, you must use the “priority seating” approach of section 382.83(a)(2).

              § 382.87
              What other requirements pertain to seating for passengers with a disability?
              (a) As a carrier, you must not exclude any passenger with a disability from any seat or require that a passenger with a disability sit in any particular seat, on the basis of disability, except to comply with FAA or applicable foreign government safety requirements.
              (b) In responding to requests from individuals for accommodations under this subpart, you must comply with FAA and applicable foreign government safety requirements, including those pertaining to exit seating (see 14 CFR 121.585 and 135.129).
              (c) If a passenger's disability results in involuntary active behavior that would result in the person properly being refused transportation under § 382.19, and the passenger could be transported safely if seated in another location, you must offer to let the passenger sit in that location as an alternative to being refused transportation.
              (d) If you have already provided a seat to a passenger with a disability to furnish an accommodation required by this subpart, you must not (except in the circumstance described in § 382.85(a)(2)(ii)) reassign that passenger to another seat in response to a subsequent request from another passenger with a disability, without the first passenger's consent.
              (e) You must never deny transportation to any passenger in order to provide accommodations required by this subpart.
              (f) You are not required to furnish more than one seat per ticket or to provide a seat in a class of service other than the one the passenger has purchased in order to provide an accommodation required by this part.

            Subpart G—Boarding, Deplaning, and Connecting Assistance

              § 382.91
              What assistance must carriers provide to passengers with a disability in moving within the terminal?

              (a) As a carrier, you must provide or ensure the provision of assistance requested by or on behalf of a passenger with a disability, or offered by carrier or airport operator personnel and accepted by a passenger with a disability, in transportation between gates to make a connection to another flight. If the arriving flight and the departing connecting flight are operated by different carriers, the carrier that operated the arriving flight (i.e., the one that operates the first of the two flights that are connecting) is responsible for providing or ensuring the provision of this assistance, even if the passenger holds a separate ticket for the departing flight. It is permissible for the two carriers to mutually agree that the carrier operating the departing connecting flight (i.e., the second flight of the two) will provide this assistance, but the carrier operating the arriving flight remains responsible under this section for ensuring that the assistance is provided.

              (b) You must also provide or ensure the provision of assistance requested by or on behalf of a passenger with a disability, or offered by carrier or airport operator personnel and accepted by a passenger with a disability, in moving from the terminal entrance (or a vehicle drop-off point adjacent to the entrance) through the airport to the gate for a departing flight, or from the gate to the terminal entrance (or a vehicle pick-up point adjacent to the entrance after an arriving flight).
              (1) This requirement includes assistance in accessing key functional areas of the terminal, such as ticket counters and baggage claim.
              (2) This requirement also includes a brief stop upon the passenger's request at the entrance to a rest room (including an accessible rest room when requested). As a carrier, you are required to make such a stop only if the rest room is available on the route to the destination of the enplaning, deplaning, or connecting assistance and you can make the stop without unreasonable delay. To receive such assistance, the passenger must self-identify as being an individual with a disability needing the assistance.
              (c) As a carrier at a U.S. airport, you must, on request, in cooperation with the airport operator, provide for escorting a passenger with a service animal to an animal relief area provided under § 382.51(a)(5) of this part.

              (d) As part of your obligation to provide or ensure the provision of assistance to passengers with disabilities in moving through the terminal (e.g., between the terminal entrance and the gate, between gate and aircraft, from gate to a baggage claim area), you must assist passengers who are unable to carry their luggage because of a disability with transporting their gate-checked or carry-on luggage. You may request the credible verbal assurance that a passenger cannot carry the luggage in question. If a passenger is unable to provide credible assurance, you may require the passenger to provide documentation as a condition of providing this service.

              § 382.93
              Must carriers offer preboarding to passengers with a disability?
              As a carrier, you must offer preboarding to passengers with a disability who self-identify at the gate as needing additional time or assistance to board, stow accessibility equipment, or be seated.

              § 382.95
              What are carriers' general obligations with respect to boarding and deplaning assistance?
              (a) As a carrier, you must promptly provide or ensure the provision of assistance requested by or on behalf of passengers with a disability, or offered by carrier or airport operator personnel and accepted by passengers with a disability, in enplaning and deplaning. This assistance must include, as needed, the services of personnel and the use of ground wheelchairs, accessible motorized carts, boarding wheelchairs, and/or on-board wheelchairs where provided in accordance with this part, and ramps or mechanical lifts.
              (b) As a carrier, you must, except as otherwise provided in this subpart, provide boarding and deplaning assistance through the use of lifts or ramps at any U.S. commercial service airport with 10,000 or more annual enplanements where boarding and deplaning by level-entry loading bridges or accessible passenger lounges is not available.

              § 382.97
              To which aircraft does the requirement to provide boarding and deplaning assistance through the use of lifts apply?
              The requirement of section 382.95(b) of this part to provide boarding and deplaning assistance through the use of lifts applies with respect to all aircraft with a passenger capacity of 19 or more, with the following exceptions:
              (a) Float planes;
              (b) The following 19-seat capacity aircraft models: the Fairchild Metro, the Jetstream 31 and 32, the Beech 1900 (C and D models), and the Embraer EMB-120;
              (c) Any other aircraft model determined by the Department of Transportation to be unsuitable for boarding and deplaning assistance by lift, ramp, or other suitable device.
              The Department will make such a determination if it concludes that—

              (1) No existing boarding and deplaning assistance device on the market will accommodate the aircraft without a significant risk of serious damage to the aircraft or injury to passengers or employees, or

              (2) Internal barriers are present in the aircraft that would preclude passengers who use a boarding or aisle chair from reaching a non-exit row seat.

              § 382.99
              What agreements must carriers have with the airports they serve?
              (a) As a carrier, you must negotiate in good faith with the airport operator of each U.S. airport described in § 382.95(b) to ensure the provision of lifts for boarding and deplaning where level-entry loading bridges are not available.
              (b) You must have a written, signed agreement with the airport operator allocating responsibility for meeting the boarding and deplaning assistance requirements of this subpart between or among the parties. For foreign carriers, with respect to all covered aircraft, this requirement becomes effective May 13, 2010.
              (c) For foreign carriers, the agreement with a U.S. airport must provide that all actions necessary to ensure accessible boarding and deplaning for passengers with a disability are completed as soon as practicable, but no later than May 13, 2011.
              (d) Under the agreement, you may, as a carrier, require that passengers wishing to receive boarding and deplaning assistance requiring the use of a lift for a flight check in for the flight one hour before the standard check-in time for the flight. If the passenger checks in after this time, you must nonetheless provide the boarding and deplaning assistance by lift if you can do so by making a reasonable effort, without delaying the flight.
              (e) The agreement must ensure that all lifts and other accessibility equipment are maintained in proper working condition.
              (f) All carriers and airport operators involved are jointly and severally responsible for the timely and complete implementation of the agreement.
              (g) You must make a copy of this agreement available, on request, to representatives of the Department of Transportation.
              [Doc. No. DOT-OST-2004-19482, 73 FR 27665, May 13, 2008, as amended at 74 FR 11471, Mar. 18, 2009]

              § 382.101
              What other boarding and deplaning assistance must carriers provide?

              When level-entry boarding and deplaning assistance is not required to be provided under this subpart, you must, as a carrier, provide or ensure the provision of boarding and deplaning assistance by any available means to which the passenger consents. However, you must never use hand-carrying (i.e., directly picking up the passenger's body in the arms of one or more carrier personnel to effect a level change the passenger needs to enter or leave the aircraft), even if the passenger consents, unless this is the only way of evacuating the individual in the event of an emergency. The situations in which level-entry boarding is not required but in which you must provide this boarding and deplaning assistance include, but are not limited to, the following:
              (a) The boarding or deplaning process occurs at a U.S. airport that is not a commercial service airport that has 10,000 or more enplanements per year;
              (b) The boarding or deplaning process occurs at a foreign airport;
              (c) You are using an aircraft subject to an exception from the lift boarding and deplaning assistance requirements under § 382.97 (a)-(c) of this subpart;
              (d) The deadlines established in § 382.99(c) have not yet passed; and
              (e) Circumstances beyond your control (e.g., unusually severe weather; unexpected mechanical problems) prevent the use of a lift.

              § 382.103
              May a carrier leave a passenger unattended in a wheelchair or other device?

              As a carrier, you must not leave a passenger who has requested assistance required by this subpart unattended by the personnel responsible for enplaning, deplaning, or connecting assistance in a ground wheelchair, boarding wheelchair, or other device, in which the passenger is not independently mobile, for more than 30 minutes. This requirement applies even if another person (e.g., family member, personal care attendant) is accompanying the passenger, unless the passenger explicitly waives the obligation.

              § 382.105
              What is the responsibility of carriers at foreign airports at which airport operators have responsibility for enplaning, deplaning, and connecting assistance?
              At a foreign airport at which enplaning, deplaning, or connecting assistance is provided by the airport operator, rather than by carriers, as a carrier you may rely on the services provided by the airport operator to meet the requirements of this subpart. If the services provided by the airport operator are not sufficient to meet the requirements of this subpart, you must supplement the airport operator's services to ensure that these requirements are met. If you believe you are precluded by law from supplementing the airport operator's services, you may apply for a conflict of laws waiver under § 382.9 of this part.

            Subpart H—Services on Aircraft

              § 382.111
              What services must carriers provide to passengers with a disability on board the aircraft?
              As a carrier, you must provide services within the aircraft cabin as requested by or on behalf of passengers with a disability, or when offered by carrier personnel and accepted by passengers with a disability, as follows:
              (a) Assistance in moving to and from seats, as part of the enplaning and deplaning processes;
              (b) Assistance in preparation for eating, such as opening packages and identifying food;
              (c) If there is an on-board wheelchair on the aircraft, assistance with the use of the on-board wheelchair to enable the person to move to and from a lavatory;
              (d) Assistance to a semi-ambulatory person in moving to and from the lavatory, not involving lifting or carrying the person; or

              (e) Assistance in stowing and retrieving carry-on items, including mobility aids and other assistive devices stowed in the cabin (see also 382.91(d)). To receive such assistance, the passenger must self-identify as being an individual with a disability needing the assistance.

              (f) Effective communication with passengers who have vision impairments or who are deaf or hard-of-hearing, so that these passengers have prompt access to information the carrier provides to other passengers (e.g. weather, on-board services, flight delays, connecting gates at the next airport).
              [Doc. No. DOT-OST-2004-19482, 73 FR 27665, May 13, 2008, as amended at 75 FR 44887, July 30, 2010]

              § 382.113
              What services are carriers not required to provide to passengers with a disability on board the aircraft?
              As a carrier, you are not required to provide extensive special assistance to qualified individuals with a disability. For purposes of this section, extensive special assistance includes the following activities:
              (a) Assistance in actual eating;
              (b) Assistance within the restroom or assistance at the passenger's seat with elimination functions; and
              (c) Provision of medical services.

              § 382.115
              What requirements apply to on-board safety briefings?
              As a carrier, you must comply with the following requirements with respect to on-board safety briefings:
              (a) You must conduct an individual safety briefing for any passenger where required by 14 CFR 121.571(a)(3) and (a)(4), 14 CFR 135.117(b), or other FAA requirements.
              (b) You may offer an individual briefing to any other passenger, but you may not require an individual to have such a briefing except as provided in paragraph (a) of this section.
              (c) You must not require any passenger with a disability to demonstrate that he or she has listened to, read, or understood the information presented, except to the extent that carrier personnel impose such a requirement on all passengers with respect to the general safety briefing. You must not take any action adverse to a qualified individual with a disability on the basis that the person has not “accepted” the briefing.

              (d) When you conduct an individual safety briefing for a passenger with a disability, you must do so as inconspicuously and discreetly as possible.
              (e) The accessibility requirements for onboard video safety presentations that carriers must meet are outlined in section 382.69.

              § 382.117
              Must carriers permit passengers with a disability to travel with service animals?
              (a) As a carrier, you must permit a service animal to accompany a passenger with a disability.
              (1) You must not deny transportation to a service animal on the basis that its carriage may offend or annoy carrier personnel or persons traveling on the aircraft.
              (2) On a flight segment scheduled to take 8 hours or more, you may, as a condition of permitting a service animal to travel in the cabin, require the passenger using the service animal to provide documentation that the animal will not need to relieve itself on the flight or that the animal can relieve itself in a way that does not create a health or sanitation issue on the flight.
              (b) You must permit the service animal to accompany the passenger with a disability at any seat in which the passenger sits, unless the animal obstructs an aisle or other area that must remain unobstructed to facilitate an emergency evacuation.
              (c) If a service animal cannot be accommodated at the seat location of the passenger with a disability who is using the animal, you must offer the passenger the opportunity to move with the animal to another seat location, if present on the aircraft, where the animal can be accommodated.
              (d) As evidence that an animal is a service animal, you must accept identification cards, other written documentation, presence of harnesses, tags, or the credible verbal assurances of a qualified individual with a disability using the animal.

              (e) If a passenger seeks to travel with an animal that is used as an emotional support or psychiatric service animal, you are not required to accept the animal for transportation in the cabin unless the passenger provides you current documentation (i.e., no older than one year from the date of the passenger's scheduled initial flight) on the letterhead of a licensed mental health professional (e.g., psychiatrist, psychologist, licensed clinical social worker, including a medical doctor specifically treating the passenger's mental or emotional disability) stating the following:
              (1) The passenger has a mental or emotional disability recognized in the Diagnostic and Statistical Manual of Mental Disorders—Fourth Edition (DSM IV);
              (2) The passenger needs the emotional support or psychiatric service animal as an accommodation for air travel and/or for activity at the passenger's destination;
              (3) The individual providing the assessment is a licensed mental health professional, and the passenger is under his or her professional care; and
              (4) The date and type of the mental health professional's license and the state or other jurisdiction in which it was issued.

              (f) You are never required to accommodate certain unusual service animals (e.g., snakes, other reptiles, ferrets, rodents, and spiders) as service animals in the cabin. With respect to all other animals, including unusual or exotic animals that are presented as service animals (e.g., miniature horses, pigs, monkeys), as a carrier you must determine whether any factors preclude their traveling in the cabin as service animals (e.g., whether the animal is too large or heavy to be accommodated in the cabin, whether the animal would pose a direct threat to the health or safety of others, whether it would cause a significant disruption of cabin service, whether it would be prohibited from entering a foreign country that is the flight's destination). If no such factors preclude the animal from traveling in the cabin, you must permit it to do so. However, as a foreign carrier, you are not required to carry service animals other than dogs.

              (g) Whenever you decide not to accept an animal as a service animal, you must explain the reason for your decision to the passenger and document it in writing. A copy of the explanation must be provided to the passenger either at the airport, or within 10 calendar days of the incident.

              (h) You must promptly take all steps necessary to comply with foreign regulations (e.g., animal health regulations) needed to permit the legal transportation of a passenger's service animal from the U.S. into a foreign airport.
              (i) Guidance concerning the carriage of service animals generally is found in the preamble of this rule. Guidance on the steps necessary to legally transport service animals on flights from the U.S. into the United Kingdom is found in 72 FR 8268-8277, (February 26, 2007).
              [Doc. No. DOT-OST-2004-19482, 73 FR 27665, May 13, 2008, as amended at 74 FR 11471, Mar. 18, 2009]

              § 382.119
              What information must carriers give individuals with vision or hearing impairment on aircraft?
              (a) As a carrier, you must ensure that passengers with a disability who identify themselves as needing visual or hearing assistance have prompt access to the same information provided to other passengers on the aircraft as described in paragraph (b) of this section, to the extent that it does not interfere with crewmembers' safety duties as set forth in FAA and applicable foreign regulations.

              (b) The covered information includes but is not limited to the following: information concerning flight safety, procedures for takeoff and landing, flight delays, schedule or aircraft changes that affect the travel of persons with disabilities, diversion to a different airport, scheduled departure and arrival time, boarding information, weather conditions at the flight's destination, beverage and menu information, connecting gate assignments, baggage claim, individuals being paged by airlines, and emergencies (e.g., fire or bomb threat).

            Subpart I—Stowage of Wheelchairs, Other Mobility Aids, and Other Assistive Devices

              § 382.121
              What mobility aids and other assistive devices may passengers with a disability bring into the aircraft cabin?
              (a) As a carrier, you must permit passengers with a disability to bring the following kinds of items into the aircraft cabin, provided that they can be stowed in designated priority storage areas or in overhead compartments or under seats, consistent with FAA, PHMSA, TSA, or applicable foreign government requirements concerning security, safety, and hazardous materials with respect to the stowage of carry-on items.
              (1) Manual wheelchairs, including folding or collapsible wheelchairs;
              (2) Other mobility aids, such as canes (including those used by persons with impaired vision), crutches, and walkers; and

              (3) Other assistive devices for stowage or use within the cabin (e.g., prescription medications and any medical devices needed to administer them such as syringes or auto-injectors, vision-enhancing devices, and POCs, ventilators and respirators that use non-spillable batteries, as long as they comply with applicable safety, security and hazardous materials rules).
              (b) In implementing your carry-on baggage policies, you must not count assistive devices (including the kinds of items listed in paragraph (a) of this section) toward a limit on carry-on baggage.

              § 382.123
              What are the requirements concerning priority cabin stowage for wheelchairs and other assistive devices?
              (a) The following rules apply to the stowage of passengers' wheelchairs or other assistive devices in the priority stowage area provided for in § 382.67 of this part:

              (1) You must ensure that a passenger with a disability who uses a wheelchair and takes advantage of the opportunity to preboard the aircraft can stow his or her wheelchair in this area, with priority over other items brought onto the aircraft by other passengers or crew enplaning at the same airport, consistent with FAA, PHMSA, TSA, or applicable foreign government requirements concerning security, safety, and hazardous materials with respect to the stowage of carry-on items. You must move items that you or your personnel have placed in the priority stowage area (e.g., crew luggage, an on-board wheelchair) to make room for the passenger's wheelchair, even if these items were stowed in the priority stowage area before the passenger seeking to stow a wheelchair boarded the aircraft (e.g., the items were placed there on a previous leg of the flight).
              (2) You must also ensure that a passenger with a disability who takes advantage of the opportunity to preboard the aircraft can stow other assistive devices in this area, with priority over other items (except wheelchairs) brought onto the aircraft by other passengers enplaning at the same airport consistent with FAA, PHMSA, TSA, or applicable foreign government requirements concerning security, safety, and hazardous materials with respect to the stowage of carry-on items.
              (3) You must ensure that a passenger with a disability who does not take advantage of the opportunity to preboard is able to use the area to stow his or her wheelchair or other assistive device on a first-come, first-served basis along with all other passengers seeking to stow carry-on items in the area.
              (b) If a wheelchair exceeds the space provided for in § 382.67 of this part while fully assembled but will fit if wheels or other components can be removed without the use of tools, you must remove the applicable components and stow the wheelchair in the designated space. In this case, you must stow the removed components in areas provided for stowage of carry-on luggage.
              [Doc. No. DOT-OST-2004-19482, 73 FR 27665, May 13, 2008, as amended at 78 FR 67924, Nov. 12, 2013]

              § 382.125
              What procedures do carriers follow when wheelchairs, other mobility aids, and other assistive devices must be stowed in the cargo compartment?
              (a) As a carrier, you must stow wheelchairs, other mobility aids, or other assistive devices in the baggage compartment if an approved stowage area is not available in the cabin or the items cannot be transported in the cabin consistent with FAA, PHMSA, TSA, or applicable foreign government requirements concerning security, safety, and hazardous materials with respect to the stowage of carry-on items.
              (b) You must give wheelchairs, other mobility aids, and other assistive devices priority for stowage in the baggage compartment over other cargo and baggage. Only items that fit into the baggage compartment and can be transported consistent with FAA, PHMSA, TSA, or applicable foreign government requirements concerning security, safety, and hazardous materials with respect to the stowage of items in the baggage compartment need be transported. Where this priority results in other passengers' baggage being unable to be carried on the flight, you must make your best efforts to ensure that the other baggage reaches the passengers' destination on the carrier's next flight to the destination.
              (c) You must provide for the checking and timely return of passengers' wheelchairs, other mobility aids, and other assistive devices as close as possible to the door of the aircraft, so that passengers may use their own equipment to the extent possible, except
              (1) Where this practice would be inconsistent with Federal regulations governing transportation security or the transportation of hazardous materials; or
              (2) When the passenger requests the return of the items at the baggage claim area instead of at the door of the aircraft.
              (d) In order to achieve the timely return of wheelchairs, you must ensure that passengers' wheelchairs, other mobility aids, and other assistive devices are among the first items retrieved from the baggage compartment.

              § 382.127
              What procedures apply to stowage of battery-powered mobility aids?
              (a) Whenever baggage compartment size and aircraft airworthiness considerations do not prohibit doing so, you must, as a carrier, accept a passenger's battery-powered wheelchair or other similar mobility device, including the battery, as checked baggage, consistent with the requirements of 49 CFR 175.10(a)(15) and (16) and the provisions of paragraphs (b) through (f) of this section.

              (b) You may require that passengers with a disability wishing to have battery-powered wheelchairs or other similar mobility devices transported on a flight check in one hour before the check-in time for the general public. If the passenger checks in after this time, you must nonetheless carry the wheelchair or other similar mobility device if you can do so by making a reasonable effort, without delaying the flight.
              (c) If the battery on the passenger's wheelchair or other similar mobility device has been labeled by the manufacturer as non-spillable as provided in 49 CFR 173.159(d)(2), or if a battery-powered wheelchair with a spillable battery can be loaded, stored, secured and unloaded in an upright position, you must not require the battery to be removed and separately packaged. Notwithstanding this requirement, you must remove and package separately any battery that is inadequately secured to a wheelchair or, for a spillable battery, is contained in a wheelchair that cannot be loaded, stowed, secured and unloaded in an upright position, in accordance with 49 CFR 175.10(a)(15) and (16). A damaged or leaking battery should not be transported.
              (d) When it is necessary to detach the battery from the wheelchair, you must, upon request, provide packaging for the battery meeting the requirements of 49 CFR 175.10(a)(15) and (16) and package the battery. You may refuse to use packaging materials or devices other than those you normally use for this purpose.
              (e) You must not disconnect the battery on wheelchairs or other mobility devices equipped with a non-spillable battery completely enclosed within a case or compartment integral to the design of the device unless an FAA or PHMSA safety regulation, or an applicable foreign safety regulation having mandatory legal effect, requires you to do so.
              (f) You must not drain batteries.

              § 382.129
              What other requirements apply when passengers' wheelchairs, other mobility aids, and other assistive devices must be disassembled for stowage?
              (a) As a carrier, you must permit passengers with a disability to provide written directions concerning the disassembly and reassembly of their wheelchairs, other mobility aids, and other assistive devices. You must carry out these instructions to the greatest extent feasible, consistent with FAA, PHMSA, TSA, or applicable foreign government requirements concerning security, safety, and hazardous materials with respect to the stowage of carry-on items.
              (b) When wheelchairs, other mobility aids, or other assistive devices are disassembled by the carrier for stowage, you must reassemble them and ensure their prompt return to the passenger. You must return wheelchairs, other mobility aids, and other assistive devices to the passenger in the condition in which you received them.

              § 382.131
              Do baggage liability limits apply to mobility aids and other assistive devices?
              With respect to transportation to which 14 CFR part 254 applies, the limits to liability for loss, damage, or delay concerning wheelchairs or other assistive devices provided in part 254 do not apply. The basis for calculating the compensation for a lost, damaged, or destroyed wheelchair or other assistive device shall be the original purchase price of the device.

              § 382.133
              What are the requirements concerning the evaluation and use of passenger-supplied electronic devices that assist passengers with respiration in the cabin during flight?
              (a) Except for on-demand air taxi operators, as a U.S. carrier conducting passenger service you must permit any individual with a disability to use in the passenger cabin during air transportation an electronic assistive device specified in paragraph (c) of this section on all aircraft originally designed to have a maximum passenger capacity of more than 19 seats unless:
              (1) The device does not meet applicable FAA requirements for medical portable electronic device; or
              (2) The device cannot be stowed and used in the passenger cabin consistent with applicable TSA, FAA, and PHMSA regulations.

              (b) Except for foreign carriers conducting operations of a nature equivalent to on-demand air taxi operations by a U.S. carrier, as a foreign carrier conducting passenger service you must permit any individual with a disability to use in the passenger cabin during air transportation to, from or within the United States, an electronic assistive device specified in paragraph (d) of this section on all aircraft originally designed to have a maximum passenger capacity of more than 19 seats unless:
              (1) The device does not meet requirements for medical portable electronic devices set by the foreign carrier's government if such requirements exist;
              (2) The device does not meet requirements for medical portable electronic devices set by the FAA for U.S. carriers in circumstances where requirements for medical portable electronic devices have not been set by the foreign carrier's government and the foreign carrier elects to apply FAA requirements for medical portable electronic devices; or
              (3) The device cannot be stowed and used in the passenger cabin consistent with applicable TSA, FAA and PHMSA regulations, and the safety or security regulations of the foreign carrier's government.
              (c) Except as provided in paragraph (a) of this section, as a covered U.S. air carrier, you must accept the passenger supplied electronic assistive device in this paragraph (c):
              (1) A portable oxygen concentrator (POC), a ventilator, a respirator or a continuous positive airway pressure machine that displays a manufacturer's label that indicates the device meets FAA requirements; and
              (2) The following POC models whether or not they are labeled:
              (i) AirSep Focus;
              (ii) AirSep FreeStyle;
              (iii) AirSep FreeStyle 5;
              (iv) AirSep LifeStyle;
              (v) Delphi RS-00400;
              (vi) DeVilbiss Healthcare iGo;
              (vii) Inogen One;
              (viii) Inogen One G2;
              (ix) Inogen One G3;
              (x) Inova Labs LifeChoice;
              (xi) Inova Labs LifeChoice Activox;
              (xii) International Biophysics LifeChoice;
              (xiii) Invacare Solo2;
              (xiv) Invacare XPO2;
              (xv) Oxlife Independence Oxygen Concentrator;
              (xvi) Oxus RS-00400;
              (xvii) Precision Medical EasyPulse;
              (xviii) Respironics EverGo;
              (xix) Respironics SimplyGo;
              (xx) SeQual Eclipse;
              (xxi) SeQual eQuinox Oxygen System (model 4000);
              (xxii) SeQual Oxywell Oxygen System (model 4000);
              (xxiii) SeQual SAROS; and
              (xxiv) VBox Trooper Oxygen Concentrator.
              (d) Except as provided in paragraph (b) of this section, as a covered foreign air carrier, you must accept the supplied electronic assistive devices in this paragraph (d):
              (1) A POC, a ventilator, a respirator or a continuous positive airway pressure machine that displays a manufacturer's label according to FAA requirements in circumstances where requirements for labeling these devices have not been set by the foreign carrier's government; and
              (2) The following POC models whether or not they are labeled:
              (i) AirSep Focus;
              (ii) AirSep FreeStyle;
              (iii) AirSep FreeStyle 5;
              (iv) AirSep LifeStyle;
              (v) Delphi RS-00400;
              (vi) DeVilbiss Healthcare iGo;
              (vii) Inogen One;
              (viii) Inogen One G2;
              (ix) Inogen One G3;
              (x) Inova Labs LifeChoice;
              (xi) Inova Labs LifeChoice Activox;
              (xii) International Biophysics LifeChoice;
              (xiii) Invacare Solo2;
              (xiv) Invacare XPO2;
              (xv) Oxlife Independence Oxygen Concentrator;
              (xvi) Oxus RS-00400;
              (xvii) Precision Medical EasyPulse;
              (xviii) Respironics EverGo;
              (xix) Respironics SimplyGo;
              (xx) SeQual Eclipse;
              (xxi) SeQual eQuinox Oxygen System (model 4000);
              (xxii) SeQual Oxywell Oxygen System (model 4000);
              (xxiii) SeQual SAROS; and
              (xxiv) VBox Trooper Oxygen Concentrator.

              (e) As a U.S. carrier, you must provide information during the reservation process as indicated in paragraphs (e)(1) through (6) of this section upon inquiry from an individual concerning the use in the cabin during air transportation of a ventilator, respirator, continuous positive airway machine, or a POC. The information in this paragraph (e) must be provided:
              (1) Any applicable requirement for a manufacturer-affixed label to reflect that the device has been tested to meet applicable FAA requirements for medical portable electronic devices;
              (2) The maximum weight and dimensions (length, width, height) of the device to be used by an individual that can be accommodated in the aircraft cabin consistent with FAA safety requirements;
              (3) The requirement to bring an adequate number of batteries as outlined in paragraph (h)(2) of this section and to ensure that extra batteries carried onboard to power the device are packaged and protected from short circuit and physical damage in accordance with applicable PHMSA regulations regarding spare batteries carried by passengers in an aircraft cabin;
              (4) Any requirement, if applicable, that an individual contact the carrier operating the flight 48 hours before scheduled departure to learn the expected maximum duration of his/her flight in order to determine the required number of batteries for his/her particular ventilator, respirator, continuous positive airway pressure machine, or POC;
              (5) Any requirement, if applicable, of the carrier operating the flight for an individual planning to use such a device to check-in up to one hour before that carrier's general check-in deadline; and
              (6) For POCs, the requirement of § 382.23(b)(1)(ii) to present to the operating carrier at the airport a physician's statement (medical certificate).
              (f) As a foreign carrier operating flights to, from or within the United States, you must provide the information during the reservation process as indicated in paragraphs (f)(1) through (7) of this section upon inquiry from an individual concerning the use in the cabin during air transportation on such a flight of a ventilator, respirator, continuous positive airway machine, or POC. The information in this paragraph (f) must be provided:
              (1) Any applicable requirement for a manufacturer-affixed label to reflect that the device has been tested to meet requirements for medical portable electronic devices set by the foreign carrier's government if such requirements exist;
              (2) Any applicable requirement for a manufacturer-affixed label to reflect that the device has been tested to meet requirements for medical portable electronic devices set by the FAA for U.S. carriers if requirements for medical portable electronic devices have not been set by the foreign carrier's government and the foreign carrier elects to apply FAA requirements for medical portable electronic devices;
              (3) The maximum weight and dimensions (length, width, height) of the device to be used by an individual that can be accommodated in the aircraft cabin consistent with the safety regulations of the foreign carrier's government;
              (4) The requirement to bring an adequate number of batteries as outlined in paragraph (h)(2) of this section and to ensure that extra batteries carried onboard to power the device are packaged in accordance with applicable government safety regulations;
              (5) Any requirement, if applicable, that an individual contact the carrier operating the flight 48 hours before scheduled departure to learn the expected maximum duration of his/her flight in order to determine the required number of batteries for his/her particular ventilator, respirator, continuous positive airway pressure machine, or POC;
              (6) Any requirement, if applicable, of the carrier operating the flight for an individual planning to use such a device to check-in up to one hour before that carrier's general check-in deadline; and
              (7) Any requirement, if applicable, that an individual who wishes to use a POC onboard an aircraft present to the operating carrier at the airport a physician's statement (medical certificate).

              (g) In the case of a codeshare itinerary, the carrier whose code is used on the flight must either inform the individual inquiring about using a ventilator, respirator, CPAP machine or POC onboard an aircraft to contact the carrier operating the flight for information about its requirements for use of such devices in the cabin, or provide such information on behalf of the codeshare carrier operating the flight.
              (h)(1) As a U.S. or foreign carrier subject to paragraph (a) or (b) of this section, you must inform any individual who has advised you that he or she plans to operate his/her device in the aircraft cabin, within 48 hours of his/her making a reservation or 24 hours before the scheduled departure date of his/her flight, whichever date is earlier, of the expected maximum flight duration of each segment of his/her flight itinerary.
              (2) You may require an individual to bring an adequate number of fully charged batteries onboard, based on the battery manufacturer's estimate of the hours of battery life while the device is in use and the information provided in the physician's statement, to power the device for not less than 150% of the expected maximum flight duration.
              (3) If an individual does not comply with the conditions for acceptance of a medical portable electronic device as outlined in this section, you may deny boarding to the individual in accordance with § 382.19(c) and in that event you must provide a written explanation to the individual in accordance with § 382.19(d).
              [Doc. No. FAA-2014-0554, 81 FR 33120, May 24, 2016]

            Subpart J—Training and Administrative Provisions

              § 382.141
              What training are carriers required to provide for their personnel?
              (a) As a carrier that operates aircraft with 19 or more passenger seats, you must provide training, meeting the requirements of this paragraph, for all personnel who deal with the traveling public, as appropriate to the duties of each employee.
              (1) You must ensure training to proficiency concerning:
              (i) The requirements of this part and other applicable Federal regulations affecting the provision of air travel to passengers with a disability;
              (ii) Your procedures, consistent with this part, concerning the provision of air travel to passengers with a disability, including the proper and safe operation of any equipment used to accommodate passengers with a disability; and
              (iii) For those personnel involved in providing boarding and deplaning assistance, the use of the boarding and deplaning assistance equipment used by the carrier and appropriate boarding and deplaning assistance procedures that safeguard the safety and dignity of passengers.
              (2) You must also train such employees with respect to awareness and appropriate responses to passengers with a disability, including persons with physical, sensory, mental, and emotional disabilities, including how to distinguish among the differing abilities of individuals with a disability.
              (3) You must also train these employees to recognize requests for communication accommodation from individuals whose hearing or vision is impaired and to use the most common methods for communicating with these individuals that are readily available, such as writing notes or taking care to enunciate clearly, for example. Training in sign language is not required. You must also train these employees to recognize requests for communication accommodation from deaf-blind passengers and to use established means of communicating with these passengers when they are available, such as passing out Braille cards if you have them, reading an information sheet that a passenger provides, or communicating with a passenger through an interpreter, for example.
              (4) You must consult with organizations representing persons with disabilities in your home country when developing your training program and your policies and procedures. If such organizations are not available in your home country, you must consult with individuals with disabilities and/or international organizations representing individuals with disabilities.

              (5) You must ensure that all personnel who are required to receive training receive refresher training on the matters covered by this section, as appropriate to the duties of each employee, as needed to maintain proficiency. You must develop a program that will result in each such employee receiving refresher training at least once every three years. The program must describe how employee proficiency will be maintained.
              (6) You must provide, or ensure that your contractors provide, training to the contractors' employees concerning travel by passengers with a disability. This training is required only for those contractor employees who deal directly with the traveling public, and it must be tailored to the employees' functions. Training for contractor employees must meet the requirements of paragraphs (a)(1) through (a)(5) of this section.
              (7) The employees you designate as CROs, for purposes of § 382.151 of this part, must receive training concerning the requirements of this part and the duties of a CRO.
              (8) Personnel subject to training required under this part, who are already employed on May 13, 2009, must be trained one time in the changes resulting from the reissuance of this part.
              (b) If you are a carrier that operates only aircraft with fewer than 19 passenger seats, you must provide training for flight crewmembers and appropriate personnel to ensure that they are familiar with the matters listed in paragraphs (a)(1) and (a)(2) of this section and that they comply with the requirements of this part.

              § 382.143
              When must carriers complete training for their personnel?
              (a) As a U.S. carrier, you must meet the training requirements of § 382.141 by the following times.
              (1) Employees designated as CROs shall receive training concerning the requirements of this part and the duties of a CRO before assuming their duties under § 382.151 (see § 382.141(a)(7)). You must ensure that all employees performing the CRO function receive annual refresher training concerning their duties and the provisions of this regulation. The one-time training for CROs about the changes to Part 382 must take place by May 13, 2009. For employees who have already received CRO training, this training may be limited to changes from the previous version of Part 382.
              (2) The one-time training for existing employees about changes to Part 382 (see § 382.141(a)(8)) must take place for each such employee no later than the next scheduled recurrent training taking place after May 13, 2009 or within one year after May 13, 2009, whichever comes first.
              (3) For crewmembers subject to training requirements under 14 CFR Part 121 or 135 whose employment in any given position commences after May 13, 2009, before they assume their duties; and
              (4) For other personnel whose employment in any given position commences after May 13, 2009, within 60 days after the date on which they assume their duties.
              (b) As a foreign carrier that operates aircraft with 19 or more passenger seats, you must provide training meeting the requirements of § 382.141(a) for all personnel who deal with the traveling public in connection with flights that begin or end at a U.S. airport, as appropriate to the duties of each employee. You must ensure that personnel required to receive training complete the training by the following times:
              (1) Employees designated as CROs shall receive training in accordance with paragraph (a)(1) of this section, by May 13, 2009.
              (2) For crewmembers and other personnel who are employed on May 13, 2009, within one year after that date;
              (3) For crewmembers whose employment commences after May 13, 2010, before they assume their duties;
              (4) For other personnel whose employment in any given position commences after May 13, 2010, or within 60 days after the date on which they assume their duties; and
              (5) For crewmembers and other personnel whose employment in any given position commences after May 13, 2009, but before May 13, 2010, by May 13, 2010 or a date 60 days after the date of their employment, whichever is later.
              [Doc. No. DOT-OST-2004-19482, 73 FR 27665, May 13, 2008, as amended at 74 FR 11472, Mar. 18, 2009]

              § 382.145
              What records concerning training must carriers retain?
              (a) As a carrier that operates aircraft with 19 or more passenger seats, you must incorporate procedures implementing the requirements of this part in the manuals or other guidance or instructional materials provided for the carrier and contract personnel who provide services to passengers, including, but not limited to, pilots, flight attendants, reservation and ticket counter personnel, gate agents, ramp and baggage handling personnel, and passenger service office personnel. You must retain these records for review by the Department on the Department's request. If, upon such review, the Department determines that any portion of these materials must be changed in order to comply with this part, DOT will direct you to make appropriate changes. You must incorporate and implement these changes.
              (b) You must retain for three years individual employee training records demonstrating that all persons required to receive initial and refresher training have done so.

            Subpart K—Complaints and Enforcement Procedures

              § 382.151
              What are the requirements for providing Complaints Resolution Officials?
              (a) As a carrier providing service using aircraft with 19 or more passenger seats, you must designate one or more CROs.
              (b) As a U.S. carrier, you must make a CRO available at each airport you serve during all times you are operating at that airport. As a foreign carrier, you must make a CRO available at each airport serving flights you operate that begin or end at a U.S. airport. You may make the CRO available in person at the airport or via telephone, at no cost to the passenger. If a telephone link to the CRO is used, TTY service or a similarly effective technology must be available so that persons with hearing impairments may readily communicate with the CRO. You must make CRO service available in the language(s) in which you make your services available to the general public.
              (c) You must make passengers with a disability aware of the availability of a CRO and how to contact the CRO in the following circumstances:

              (1) In any situation in which any person complains or raises a concern with your personnel about discrimination, accommodations, or services with respect to passengers with a disability, and your personnel do not immediately resolve the issue to the customer's satisfaction or provide a requested accommodation, your personnel must immediately inform the passenger of the right to contact a CRO and then contact a CRO on the passenger's behalf or provide the passenger a means to do so (e.g., a phone, a phone card plus the location and/or phone number of the CRO available at the airport). Your personnel must provide this information to the passenger in a format he or she can use.
              (2) Your reservation agents, contractors, and Web sites must provide information equivalent to that required by paragraph (c)(1) of this section to passengers with a disability using those services who complain or raise a concern about a disability-related issue.
              (d) Each CRO must be thoroughly familiar with the requirements of this part and the carrier's procedures with respect to passengers with a disability. The CRO is intended to be the carrier's “expert” in compliance with the requirements of this part.
              (e) You must ensure that each of your CROs has the authority to make dispositive resolution of complaints on behalf of the carrier. This means that the CRO must have the power to overrule the decision of any other personnel, except that the CRO is not required to be given authority to countermand a decision of the pilot-in-command of an aircraft based on safety.
              [Doc. No. DOT-OST-2004-19482, 73 FR 27665, May 13, 2008, as amended at 74 FR 11472, Mar. 18, 2009; 75 FR 44887, July 30, 2010]

              § 382.153
              What actions do CROs take on complaints?

              When a complaint is made directly to a CRO for a carrier providing service using aircraft with 19 or more passenger seats, the CRO must promptly take dispositive action as follows:

              (a) If the complaint is made to a CRO before the action or proposed action of carrier personnel has resulted in a violation of a provision of this part, the CRO must take, or direct other carrier personnel to take, whatever action is necessary to ensure compliance with this part.
              (b) If an alleged violation of a provision of this part has already occurred, and the CRO agrees that a violation has occurred, the CRO must provide to the complainant a written statement setting forth a summary of the facts and what steps, if any, the carrier proposes to take in response to the violation.
              (c) If the CRO determines that the carrier's action does not violate a provision of this part, the CRO must provide to the complainant a written statement including a summary of the facts and the reasons, under this part, for the determination.
              (d) The statements required to be provided under this section must inform the complainant of his or her right to pursue DOT enforcement action under this part. The CRO must provide the statement in person to the complainant at the airport if possible; otherwise, it must be forwarded to the complainant within 30 calendar days of the complaint.
              [Doc. No. DOT-OST-2004-19482, 73 FR 27665, May 13, 2008, as amended at 75 FR 44887, July 30, 2010]

              § 382.155
              How must carriers respond to written complaints?

              (a) As a carrier providing service using aircraft with 19 or more passenger seats, you must respond to written complaints received by any means (e.g., letter, fax, e-mail, electronic instant message) concerning matters covered buy this part.
              (b) As a passenger making a written complaint, you must state whether you had contacted a CRO in the matter, provide the name of the CRO and the date of the contact, if available, and enclose any written response you received from the CRO.
              (c) As a carrier, you are not required to respond to a complaint postmarked or transmitted more than 45 days after the date of the incident, except for complaints referred to you by the Department of Transportation.
              (d) As a carrier, you must make a dispositive written response to a written disability complaint within 30 days of its receipt. The response must specifically admit or deny that a violation of this part has occurred.
              (1) If you admit that a violation has occurred, you must provide to the complainant a written statement setting forth a summary of the facts and the steps, if any, you will take in response to the violation.
              (2) If you deny that a violation has occurred, your response must include a summary of the facts and your reasons, under this part, for the determination.
              (3) Your response must also inform the complainant of his or her right to pursue DOT enforcement action under this part.
              [Doc. No. DOT-OST-2004-19482, 73 FR 27665, May 13, 2008, as amended at 75 FR 44887, July 30, 2010]

              § 382.157
              What are carriers' obligations for recordkeeping and reporting on disability-related complaints?
              (a) For the purposes of this section, a disability-related complaint means a specific written expression of dissatisfaction received from, or submitted on behalf, of an individual with a disability concerning a difficulty associated with the person's disability, which the person experienced when using or attempting to use an air carrier's or foreign carrier's services.
              (b) If you are a carrier covered by this part, conducting passenger operations with at least one aircraft having a designed seating capacity of more than 60 passengers, this section applies to you. As a foreign carrier, you are covered by this section only with respect to disability-related complaints associated with any flight segment originating or terminating in the United States.

              (c) You must categorize disability-related complaints that you receive according to the type of disability and nature of complaint. Data concerning a passenger's disability must be recorded separately in the following areas: vision impaired, hearing impaired, vision and hearing impaired, mentally impaired, communicable disease, allergies (e.g., food allergies, chemical sensitivity), paraplegic, quadriplegic, other wheelchair, oxygen, stretcher, other assistive device (cane, respirator, etc.), and other disability. Data concerning the alleged discrimination or service problem related to the disability must be separately recorded in the following areas: refusal to board, refusal to board without an attendant, security issues concerning disability, aircraft not accessible, airport not accessible, advance notice dispute, seating accommodation, failure to provide adequate or timely assistance, damage to assistive device, storage and delay of assistive device, service animal problem, unsatisfactory information, and other.

              (d) You must submit an annual report summarizing the disability-related complaints that you received during the prior calendar year using the form specified at the following internet address: http://382reporting.ost.dot.gov. You must submit this report by the last Monday in January of each year for complaints received during the prior calendar year. You must make submissions through the World Wide Web except for situations where you can demonstrate that you would suffer undue hardship if not permitted to submit the data via paper copies, disks, or e-mail, and DOT has approved an exception. All fields in the form must be completed; carriers are to enter “0” where there were no complaints in a given category. Each annual report must contain the following certification signed by your authorized representative: “I, the undersigned, do certify that this report has been prepared under my direction in accordance with the regulations in 14 CFR Part 382. I affirm that, to the best of my knowledge and belief, this is a true, correct, and complete report.” Electronic signatures will be accepted.
              (e) You must retain correspondence and record of action taken on all disability-related complaints for three years after receipt of the complaint or creation of the record of action taken. You must make these records available to Department of Transportation officials at their request.
              (f)(1) As either carrier in a codeshare relationship, you must comply with paragraphs (c) through (e) of this section for—
              (i) Disability-related complaints you receive from or on behalf of passengers with respect to difficulties encountered in connection with service you provide;
              (ii) Disability-related complaints you receive from or on behalf of passengers when you are unable to reach agreement with your codeshare partner as to whether the complaint involves service you provide or service your codeshare partner provides; and
              (iii) Disability-related complaints forwarded by another carrier or governmental agency with respect to difficulties encountered in connection with service you provide.
              (2) As either carrier in a codeshare relationship, you must forward to your codeshare partner disability-related complaints you receive from or on behalf of passengers with respect to difficulties encountered in connection with service provided by your code-sharing partner.
              (g) Each carrier, except for carriers in codeshare situations, shall comply with paragraphs (c) through (e) of this section for disability-related complaints it receives from or on behalf of passengers as well as disability-related complaints forwarded by another carrier or governmental agency with respect to difficulties encountered in connection with service it provides.
              (h) Carriers that do not submit their data via the Web shall use the disability-related complaint data form specified in appendix A to this part when filing their annual report summarizing the disability-related complaints they received. The report shall be mailed, by the date specified in paragraph (d) of this section, to the following address: U.S. Department of Transportation, Aviation Consumer Protection Division (C-75), 1200 New Jersey Avenue, SE., West Building, Room W96-432, Washington, DC 20590.

              § 382.159
              How are complaints filed with DOT?

              (a) Any person believing that a carrier has violated any provision of this part may seek assistance or file an informal complaint at the Department of Transportation no later than 6 months after the date of the incident by either:

              (1) Going to the web site of the Department's Aviation Consumer Protection Division at http://airconsumer.ost.dot.gov and selecting “Air Travel Problems and Complaints,” or
              (2) Writing to Department of Transportation, Aviation Consumer Protection Division (C-75), 1200 New Jersey Avenue, SE., Washington, DC 20590.
              (b) Any person believing that a carrier has violated any provision of this part may also file a formal complaint under the applicable procedures of 14 CFR part 302.
              (c) You must file a formal complaint under this part within six months of the incident on which the complaint is based in order to ensure that the Department of Transportation will investigate the matter.

              Pt. 382, App. A
              Appendix A to Part 382—Report of Disability-Related Complaint Data

                ER13MY08.000

                ER13MY08.001

              Pt. 382, App. B
              Appendix B to Part 382—Cross-Reference Table
              The Department is providing the following table to assist users familiar with the current Part 382 in finding material in the new, renumbered Part 382.

                Section Numbers: Old and New Rules

                  Old section(382.x)

                  New section(382.x)

                  Subject

                  General provisions:

                  1
                  1
                  Purpose.

                  3
                  7
                  Applicability.

                  5
                  3
                  Definitions.

                  7
                  11, 13
                  Non-discrimination generally.

                  9
                  15
                  Contractors.

                  Aircraft accessibility:

                  21(a)(1)
                  61
                  Movable armrests.

                  21(a)(2)
                  67
                  Stowage space in cabin for passenger wheelchair.

                  21(a)(3)
                  63
                  Accessible lavatories.

                  21(a)(4)
                  65
                  Carrier-supplied on-board wheelchair.

                  21(e) and (f)
                  71
                  Aircraft accessibility: miscellaneous.

                  Airport accessibility:

                  23
                  51
                  General.

                  (New)
                  53
                  Vision/hearing impairments.

                  Services and information:

                  31
                  19
                  Refusal of transportation.

                  31(c)
                  17
                  Number limits.

                  33
                  25, 27
                  Advance notice requirements.

                  35
                  29
                  Safety assistants (formerly “attendants”).

                  37
                  87(a)
                  Seat assignments.

                  38
                  81 through 87
                  Seating accommodations.

                  39(a)
                  91 through 105
                  Enplaning, deplaning and connecting assistance.

                  39(b)
                  111 through 119
                  Assistance in cabin.

                  40 and 40a
                  95, 99
                  Mechanical lifts.

                  41
                  121 through 133
                  Stowage of assistive devices, POCs and other respiratory assistive devices.

                  43(a)
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