1 All-cargo rate applicable on flights designated as all-cargo where limited services for the personnel who may be carried are required under the DOD contract.

Rate applicable on flights designated as mixed where full passenger services are required under the DOD contract.

Provided, That subject to the provisions of § 288.8, the minimum rates set forth above shall not be applicable to passengers or cargo carried on a particular trip in excess of the amount that the contract calls for DOD to supply and the carrier to provide space: And provided further, That if a carrier performs a oneway charter flight carrying nonmilitary traffic for a nonmilitary user, the carrier may charter the return flight of that aircraft to DOD at a published one-way charter tariff rate that is in fact available to the general public for equivalent services: Provided, however, That effective December 1, 1975, the total minimum compensation pursuant to the rates set forth in paragraph (a) (1) of this section for (i) services performed with regular jet, wide-bodied jet, and DC-8F61/63 aircraft, (ii) Pacific interisland services performed with B-727 aircraft, and (iii) all other services performed with B-727 aircraft shall be increased by

Provided, however, That, effective January 15, 1974, if the price of any fuel product purchased from DOD for such services varies from the base levels specified below, the total minimum compensation for the transportation provided shall be adjusted (either upward or downward, as the case may be) by the difference in the price per gallon for such product paid by the carrier and the price specified for such product below, times the number of U.S. gallons of such product purchased by the carrier from DOD for the transportation provided. The base levels are as follows:

(c) The compensation for substitute service shall not be less than that which the prime contractor would have received under his contract with DOD.

(d) For Category A transportation services performed on and after January 17, 1975:

(1) Passengers. 5.119 cents per passenger-mile.

(2) Cargo. 16.504 cents per ton-mile. Provided, That effective December 1, 1975, the total minimum compensation pursuant to the rates specified in paragraphs (d) (1) and (2) of this section shall be increased by a surcharge of 3.45 percent.

(3) The foregoing rates per passenger-mile and per ton-mile shall be

1 The surcharge provisions for services performed with B-727 aircraft will be applied to all other common-rated aircraft types.

applied to the shortest mileage between' the commercial air carrier points as set forth in the latest IATA Mileage Manual used to compute point-to-point passenger fares and cargo rates per pound.

(4) For cargo services to/from military bases outside the United States, the rates per pound shall not be less than the rates to/from the nearest commercial point, computed in accordance with paragraphs (d) (2) and (3) of this section.

(5) The cargo charges determined in accordance with paragraphs (d) (2) through (4) of this section shall be applied on the basis of a standard weight per pallet of 3,750 pounds: Provided, That it is not required that cargo be tendered in pallets.

(e) [Reserved]

(f) For suspension charges, 36 percent of the charge based on the passenger charter minimum rate and 38 percent of the charge based on the cargo charter minimum rate otherwise applicable to the suspended flight.

(Secs. 401, 404, 72 Stat. 754, 760; 49 U.S.C. 1371, 1374, and 5 U.S.C. 552) [ER-494, 32 F.R. 7908, June 1, 1967, as amended by ER536, 33 FR 6651, May 1, 1968; ER-699, 36 FR 4541, Mar. 9, 1971; ER-853, 39 FR 18072, May 23, 1974; ER-896, 40 FR 3583, Jan. 23, 1975; ER-896, 40 FR 8073, Feb. 25, 1975; 40 FR 10663, Mar. 7, 1975; ER-919, 40 FR 28078, July 3, 1975; ER-940, 40 FR 56653, Dec. 4, 1975]

§ 288.8 Minimum aircraft loads.

The minimum charges established in § 288.7(a) shall be deemed economic only when the resulting revenues are at least the equivalent of such charges applied to the following minimum loads:

Provided, That for the purpose of this section, compensation equal to the minimum rate applied to the load that actually can be accommodated shall be considered economic whenever a carrier is prevented from accommodating a load equal to the minimum specified above, for reasons other than adverse weather, off-loading by DOD, or the bulk of the cargo supplied by DOD, but in no event less than 90 percent of the above minimum loads. For purpose of this proviso, failure by the carrier to accommodate more than 12 loaded pallets on the B707-320/B/C and DC-8F aircraft, and 16 loaded pallets on the DC-8-61/63 aircraft, irrespective of the total weight thereof, on the all-cargo segment of any convertible charter flight, due to the presence of galley equipment and/or crew facilities on the main deck of the aircraft for use on that convertible charter flight, is deemed to be due to the bulk of the cargo supplied by DOD. [ER-896, 40 FR 3584, Jan. 23, 1975] § 288.9 Round-trip services.

For purposes of this part, round-trip services mean charter service other than Logair and Quicktrans services where: (a) Passengers and/or cargo are transported on two or more successive revenue flights and the last revenue flight terminates within 250 statute miles of the point of origin of the first revenue flight or, by mutual consent of DOD and the carrier, at a point within 250 statute miles of the carrier's principal operating base; (b) the scheduling permits departure within 4 hours after arrival at each point to be served except at one point where the aircraft may be scheduled for departure within 72 hours after arrival: Provided, That, on flights serving more than one U.S. departure point, by mutual consent, DOD and the carrier may agree on not more than three points where the aircraft may be scheduled for departure within 72 hours after arrival; and (c) the air carrier operates en route not more than one ferry flight not exceeding 50 statute miles without compensation and not more than one ferry flight not exceeding 1,500 statute miles for compensation equal to not less than 75 percent of the round-trip cargo rate specified in §§ 288.7 and 288.8 where only cargo is carried on the other portions of the whole trip and for compensation equal to not less than 75 percent of the round-trip allpassenger rate specified in §§ 288.7 and

contract. If the direct nonstop airportto-airport distance between the point of origin of the revenue flight to the point of destination of such flight, or between any pair of points comprising a route segment required to be served by the terms of the DOD contract, is 4,000 miles or more and no intermediate points are required to be served by the terms of the contract or are specified in paragraph (b) of this section, the mileage shall be computed via the routings which yield the shortest mileage.

(b) Pacific services. In the case of Pacific services between points specified in the following table, the mileage shall be computed via the indicated routings:

Between

And

Thai- South Philipland

nam

[ER-494, 32 F.R. 7908, June 1, 1967, as amended by ER-786, 38 F.R. 754, Jan. 4, 1973; ER-896, 40 FR 3584, Jan. 23, 1975; 40 FR 5142, Feb. 4, 1975]

§ 288.11 On-loading and off-loading of traffic.

It shall not be deemed a violation of the provisions of this part for an air carrier operating a charter flight to permit DOD to on-load and/or off-load traffic (passenger or cargo) at any operational stops en route made for the carrier's convenience, to the extent that it does not interfere with the carrier's scheduled ground operation: Provided, That the carrier receives minimum compensation consistent with the provisions of this part for resulting load carried on

any flight stage which is in excess of the load paid for under the contract.

§ 288.12 Application for other relief.

Air carriers may make timely applications for authority to engage in air transportation for the military establishment not covered by this part, including relief from any limitations or requirement imposed by this part. Such applications shall be governed by the provisions contained in Part 302, Subparts A and D of this chapter.

Subpart C-Enforcement

(a) With respect to Logair and Quicktrans services and substitute service within the 48 contiguous States, this part shall remain in effect indefinitely.

(b) With respect to foreign and overseas transportation, transportation bebetween the 48 contiguous States, on the one hand, and Hawaii or Alaska, on the other hand, and for transportation within Alaska, including substitute service therefor, this part shall remain in effect indefinitely.

(c) The Board reserves the right to rescind this part or any provision thereof at any time, with or without notice or hearing, as the public interest may require.

(d) The transportation services performed pursuant to the authorization granted in this part do not constitute an activity of a continuing nature within the meaning of 5 U.S.C. 558(c).

[ER-584, 34 FR 11087, July 1, 1969, as amended by ER-602, 35 F.R. 104, Jan. 3, 1970; ER-626, 35 F.R. 10290, June 24, 1970]

tificate of public convenience and necessity issued under section 401(d) (1) or (2) of the Federal Aviation Act of 1958 authorizing unlimited regularly scheduled route service between specified points or, in case of foreign air transportion, along a general route or routes, designated in the certificate.

ร

8

(b) "Indirect air carrier" means any citizen of the United States who engages indirectly in interstate, overseas or foreign air transportation of property only, and who: (1) Does not engage in the operation of aircraft in air transportation, and (2) does not engage in air transportation pursuant to any Board order authorizing air express services under a contract with a direct air carrier.

(c) "Supplemental air carrier” means any air carrier which holds authority from the Board to engage in supplemental air transportation.

[ER-309, 25 F.R. 6614, July 14, 1960, as amended by ER-350, 27 F.R. 1067, Feb. 6, 1962]

§ 289.2 Exemption of air carriers.

Air carriers are hereby exempted from the filing requirements of section 412 (a) of the Act with respect to any type of agreement listed in § 289.3, and amendments thereto, and from filing any subsequent amendment to an agreement which was filed prior to the effective date of this part where such filed agreement and the amendment qualify for an exemption under this part; except that such exemption does not apply to an agreement or an amendment to an agreement that:

(a) Is between "affiliated" carriers within the meaning of that term as it is used in Part 261 of this subchapter; or

(b) Amends an existing agreement which itself is ineligible for exemption under this part; or

(c) Is a resolution or similar action of the members of an association of air carriers; or

(d) Is violative of the "anti-trust laws" as that term is defined in section 1 of the Clayton Act, 15 U.S.C. 12. [ER-350, 27 F.R. 1068, Feb. 6, 1962]

§ 289.3 Types of agreements which need not be filed.

(a) Ground services and facilities. Agreements between certificated route

'As defined in section 101(18) of the Act. As defined in section 101(21) of the Act.

air carriers, or between any such air carrier(s) and any foreign air carrier(s), for the furnishing of ground facilities, ground equipment, ground service, or building or ground space: Provided, That the fees or charges therefor are known or anticipated not to exceed $50,000 during any twelve-month period: And, provided further, That in case the aggregate annual charge under an agreement believed to fall within this exemption at the time of execution thereof exceeds the dollar limitation in any twelve-month period, the carrier shall (1) report promptly the total amount paid, and (2) file the agreement with the Board under section 412(a) of the Act upon request by the Director of the Board's Bureau of Economic Regulation.

(b) Free or reduced-rate transportation. Agreements between certificated route air carriers, or between supplemental air carriers, or between certificated route carriers and supplemental carriers, or between any such air carriers and foreign air carriers for the issuance or interchange of free or reducedrate transportation: Provided, That such agreements do not provide for the issuance or interchange of passes for free or reduced-rate transportation other than as described in documents filed pursuant to § 223.6 of this subchapter.

(c) Pick-up and delivery. Agreements between certificated route air carriers or indirect air carriers on the one hand and surface motor carriers on the other hand for pick-up and delivery of property: Provided, That all of the points named in the agreement and the rates and charges to the public for such service are set forth in tariffs filed by the air carriers with the Board pursuant to Part 221 of this subchapter.

(Interpret or apply secs. 101(3), 412, and 416 (b) of the Act, 72 Stat. 737, 770; 49 U.S.C. 1301, 1882) [ER-350, 27 F.R. 1068, Feb. 6, 1962]

§ 289.4 Effect of exemption.

The exemption granted by this part shall not be deemed to constitute an "order made under sections 408, 409, and 412" within the meaning of section 414 of the Act.

[ER-309, 25 F.R. 6614, July 14, 1960. Redesignated by ER-350, 27 F.R. 1068, Feb. 6, 1962]

(a) "CRAF" (Civil Reserve Air Fleet) means those air carrier aircraft allocated by the Secretary of Commerce to the Department of Defense to meet essential military needs in the event of an emergency.

(b) "CRAF Operator" means an air carrier which has been required by the Government, under the expanded capability provisions of an airlift procurement contract or other CRAF contract between such air carrier and the Military Airlift Command, to furnish increased airlift to the Government upon a determination that an airlift or national emergency exists or upon the activation of CRAF.

§ 290.2 Exemption for lease of aircraft.

Any CRAF Operator shall be exempt from sections 408 (a) (2) and 412 of the Federal Aviation Act of 1958 insofar as the provisions thereof relate to the lease of aircraft by such operator with or without crew from other carriers to replace the aircraft which such operator has been required to furnish under the expanded capability provisions of its contract with the Government in an emergency. Such lease agreements may also include provisions for maintenance and all other ground facilities and services related to the operation of the aircraft. The exemption under this part shall be subject to the following conditions:

(a) No CRAF operator shall lease an aircraft from another air carrier for more than 90 days.