§ 208.11 Minimum limits of liability. The minimum limits of liability insurance carried by a supplemental air carrier shall be as follows:

(a) Liability for bodily injury to or death of aircraft passengers: A minimum of $50,000 for any one passenger, and a minimum total amount for each accident in any one aircraft equal to the sum produced by multiplying $50,000 by 75 percent of the total number of seats.

(b) Liability for bodily injury to or death of persons not aboard the aircraft: A minimum of $50,000 for one person in any one accident, and a minimum of $500,000 for each accident.

(c) Liability for loss of or damage to property: A minimum of $500,000 for each accident. § 208.12

Terms and conditions of insurance coverage.

With respect to insurance required by this part:

(a) Insurance contracts shall provide for payment by the insurer on behalf of the insured, within the specified minimum limits of liability, of all sums which the insured shall become legally obligated to pay for bodily injury to or death of any person, or loss of or damage to property of others, resulting from negligence of the insured, or his duly authorized agent, in the operation, maintenance, or use of any aircraft on a flight conducted by a supplemental air carrier pursuant to authority granted by the Civil Aeronautics Board, or under an invalid claim of such authority.

(b) The liability of the insurer shall apply to any and all such flights conducted by the insured air carrier, irrespective of whether the aircraft involved in such liability are specifically described in the policy, and shall not be subject to any exclusion by virtue of violations, by said carrier, of any applicable safety provisions of the Federal Aviation Act of 1958, as amended, or of any rule, regulation, order or other legally imposed safety requirement prescribed by the Federal Aviation Agency.

(c) Such liability shall not be contingent upon the financial condition, solvency or freedom from bankruptcy of the insured. The limits of the insurer's liability for the amounts prescribed herein shall apply separately to each accident, and any payment under the policy because of any one accident shall not reduce the liability of the insurer for

payment of other damages resulting from any other accident.

(d) Within the limits of liability herein prescribed, the insurer shall not be relieved from liability by any condition in the policy or any endorsement thereon, or violation thereof by the insured air carrier, other than the exclusions set forth in § 208.13, or such other exclusions as may be individually approved by the Board. Such policy shall not be subject to cancellation, change or suspension, by either party, except in compliance with the provisions of § 208.14 (a).

§ 208.13 Authorized exclusions of liability.

Unless other exclusions are individually approved by the Board, any policy or policies of insurance required by this part may contain only one or more of the following authorized exclusions:

The insurance afforded under this policy shall not apply to:

(1) Any loss against which the named Insured has other valid and collectible insurance, except that the limits of liability provided under this policy shall be excess of the limits provided by such other valid and collectible insurance but in no event exceeding the limits of liability expressed elsewhere in this policy;

(2) Liability assumed by the Insured under any contract or agreement, unless such liability would have attached to the Insured even in the absence of such contract or agreement;

(3) Bodily injury, sickness, disease, mental anguish or death of any employee of the Insured while engaged in the duties of his employment, or any obligation for which the Insured or any Company as his Insurer may be held liable under any Workmen's Compensation or occupational disease law;

(4) Loss of or damage to property owned, rented, occupied, or used by the Insured and/or property in the care, custody, or control of the Insured otherwise than for transportation pursuant to tariffs filed with the Civil Aeronautics Board;

(5) Personal injuries or death or damage to or destruction of property, caused directly or indirectly, by hostile or warlike action, including action in hindering, combating or defending against an actual, impending or expected attack by any government or sovereign power, de jure or de facto, or military, naval, or air forces, or by an agent of such government, power, authority, or forces; the discharge, explosion, or use of any weapon of war employing atomic fission or atomic fusion, or radio-active material; insurrection, rebellion, revolution, civil war or usurped power, including any action in hindering, combating, or defending against such an oc

currence; or confiscation by any government or public authority.

(6) Loss of or damage to passengers' baggage and/or personal belongings.

[ER-304, 27 F.R. 9940, Oct. 10, 1962, as amended by ER-368, 27 F.R. 12259, Dec. 12, 1962]

§ 208.14 Filing of policy and certificate of insurance.

(a) Each supplemental air carrier shall file with the Board a copy of the policy or policies of insurance required by this part and all endorsements thereof and a duly executed certificate of insurance, signed by an authorized representative of the insurer. In case of cancellation or suspension of an insurance policy or a change therein, 30 days' notice of the cancellation or suspension shall be given to the Board by registered or certified mail, and in the case of changes in the policy a new certificate of insurance shall be filed with the Board at least 30 days prior to the proposed effective date of the change, and such certificate shall be accompanied by a copy of the new endorsement or endorsements made to such policy: Provided, That changes in an existing policy which are not in conflict with the minimum standards prescribed in the regulations in this part may be filed within five days after their effective date if accompanied by a certificate of the insurer to the effect that the changes are not in conflict with the regulations in this part. All documents required to be filed with respect to liability insurance shall be filed with the Office of Carrier Accounts and Statistics at the Board's Washington, D.C., office.

(b) Each certificate of insurance shall expressly certify that the insurance company has issued to the insured air carrier a policy (or policies) which:

(1) Incorporates the minimum limits of liability set forth in § 208.11;

(2) Contains the specific terms and conditions of coverage set forth in § 208.12; and

(3) Incorporates only exclusions which have been specifically authorized in § 208.13 or individually approved by the Board.

PERFORMANCE REQUIREMENTS

§ 208.20 Assumption of performance obligations in tariffs.

Supplemental air carriers shall assume, and publish as part of the rules

and regulations of their tariffs applicable to passenger service in interstate and overseas air transportation, the following obligations without prejudice, and in addition, to any other rights or remedies of passengers under applicable law:

(a) In case of flight delays of more than six hours beyond the departure time stated in the charter contract or four hours beyond the time of departure stated on an individual flight ticket, the carrier, upon request and at the passenger's or charterer's option, must provide alternative air transportation at no additional cost to the passenger or charterer, or immediately refund the full value of the unused ticket or the unperformed charter contract.

(b) In case of additional flight delays enroute exceeding six hours for charter flights or two hours for individually ticketed flights, the carrier must, upon request and at the passenger's or charterer's option, furnish alternative transportation to the specified destination, or immediately refund the full value of unperformed transportation. The en route delays shall be calculated without inclusion of any delay at departure but all additional delays at intermediate stops en route shall be added up in determining whether the limit of delay has been reached.

(c) In case of flight cancellations or flight delays, refunds shall be paid immediately upon presentation of an unused flight coupon or upon demand of the charterer or his representative to the air carrier or its agent.

(d) The rules and regulations in the carrier's tariffs governing immediate refunds or alternative transportation may provide for an exception in case of unavoidable delays due solely to weather. § 208.21 Substitution or subcontracting.

Supplemental air carriers may subcontract the performance of services which they have contracted to perform, only to air carriers authorized by the Board to perform such services.

MINIMUM EXTENT OF SERVICE

§ 208.25 Minimum service requirements. Each supplemental air carrier shall perform services authorized by its certificate or authority to engage in supplemental air transportation for at least 500 hours of revenue flight in any two consecutive calendar quarters. Failure to perform such minimum services will

be deemed to constitute a prima facie case for suspension of the carrier's operating authority pursuant to the provisions of section 401 (n) (5) of the Act: Provided, That the carrier may, within 15 days after the end of the two consecutive calendar quarters in which such failure occurred, show unusual circumstances constituting good cause why its operating authority should not be suspended.

MINIMUM COMPENSATION FOR MILITARY

SERVICES

§ 208.30 Minimum rates and compensation for planeload flights performed for the military establishment.

The authority conferred upon a supplemental air carrier pursuant to section 7 of Public Law 87-528, insofar as it encompasses the right to perform planeload flights pursuant to contract with the military establishment of the United States or any branch thereof in foreign and overseas air transportation, and air transportation between the 48 contiguous states on the one hand and the states of Alaska and Hawaii on the other hand, shall be subject to the condition that the rate or compensation received by the carrier for any such flight is not less than that set forth in § 288.7 of this chapter, irrespective of whether such contract or charter flight falls within the definition of short notice MATS charter service contained in § 288.1 of this chapter.

that Canadian operators filing applications for foreign air carrier permits authorizing casual, occasional and infrequent flights with small aircraft across the Canada-United States borders shall file one original and seven true copies of the application. The verifications shall be subscribed and sworn to before a Notary Public or other officer authorized to administer oaths in the jurisdiction in which such application is executed. Notwithstanding the laws of the country of applicant's citizenship, an application verified before a United States consular officer will be deemed to have met the requirements of this section. 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.

[ER-385, 28 F.R. 8283, Aug. 13, 1963]

§ 211.2 Filing and service.

Applications for foreign air carrier permits shall be forwarded to the Board, through diplomatic channels, by the government of the applicant's country of citizenship, and shall be deemed to have been filed on the date such applications are actually received by the Board: Provided, That applications by Canadian operators for foreign air carrier permits authorizing casual, occasional and infrequent flights with small aircraft across the Canada-United States borders shall be filed directly with the Board. Each applicant shall furnish such additional copies of its application, and shall make such service thereof upon such other persons as the Board may at any time require.

[ER-385, 28 F.R. 8283, Aug. 13, 1963]

§ 211.4 Incorporation by reference.

In general it is desirable that 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. Canadian operators filing applications for renewal of previously granted foreign air carrier permits authorizing casual, occasional and infrequent flights across the Canada-United States borders with small aircraft may incorporate by reference supporting documents previously submitted in connection with their applications for original 402 permits where no substantial changes have occurred since the filing of the original documents. [ER-385, 28 F.R. 8284, Aug. 13, 1963]

§ 211.5 General provisions regarding

contents.

The statements contained in an application shall be restricted to significant and relevant facts. They shall be free from argumentation or from expressions of opinion, except as such may be required by this part. Each application shall give full and adequate information with respect to each of the items set forth in this section. The application may contain such other information and data as the applicant shall deem necessary or appropriate in order to acquaint the Board fully with the particular circumstances of its case. Among other things, every such application shall contain the following information:

(a) The full 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. The citizenship of the applicant should be shown, as well as the percentage of direct and indirect beneficial and nonbeneficial interest in applicant held by each government and aggregate of nationals of each government, other than the government of applicant's citizenship. If the applicant is governmentally owned or controlled in whole or in part, the extent of such governmental ownership or control should be shown.

(b) The name and official address of the competent air authority of applicant's country of cftizenship having regulatory jurisdiction over applicant.

(c) An identification of the route or routes to be covered by the permit for which application is made, specifying the type or types of service (mail, passenger, and property) to be rendered on each such route, and whether or not such services are to be rendered in scheduled operations. The identification of each route shall name every terminal and intermediate point to be served by applicant in connection with the service for which a permit is sought.

(d) A map (which may be attached as an exhibit) drawn approximately to scale, showing all terminal and intermediate points, both in the United States and in all foreign countries to be served by applicant in connection with the service for which the permit is sought, giving the approximate air mileages between all adjacent points, and principal overall distances.

[ER-146, 14 F.R. 3528, June 29, 1949, as amended by ER-367, 27 FR. 11533, Nov. 24, 1962]

212.2 Scope of authorization. 212.3

Tariffs to be filled for off-route charter trips.

212.4 Limitation on the operation of offroute charter trips.

212.5 Statements of Authorization; application.

212.6 Issuance of Statement of Authorization.

212.7 Keeping of records.

AUTHORITY: The provisions of this Part 212 issued under secs. 204, 402, 72 Stat. 743, 757; 49 U.S.C. 1324, 1372.

SOURCE: The provisions of this Part 212 contained in ER-236, 23 F.R. 7062, Sept. 12, 1958.

one or more aircraft has been engaged for the movement of persons and their baggage or for the movement of property, on a time, mileage or trip basis.

(1) By a person for his own use;

(2) By a person (no part of whose business is the formation of groups for transportation or solicitation or sale of transportation services) for the transportation of a group of persons as agent or representative of such group;

(3) By two or more persons acting jointly for the transportation of such group of persons, or their property;

(4) By an air freight forwarder holding a currently effective letter of registration issued under Part 297 of this subchapter for the carriage of property in foreign air transportation or by a foreign indirect air carrier, whether or not the property to be carried is the result of a previous consolidation;

(5) By a direct air carrier or surface carrier when such aircraft is engaged solely for the transportation of company personnel and cargo or commercial traffic in cases of emergency.

With the consent of the charterer, the foreign air carrier may utilize any unused space for the transportation of company personnel or cargo.

(b) Within the meaning of this part, a charter trip shall not be deemed to include transportation services (1) offered by a foreign air carrier to individual members of the general public, (2) performed by a foreign air carrier under an arrangement with a person (other than an arrangement with a person and under the conditions described in paragraph (a) (4) and (5) of this section) who provides or offers to provide transportation to the general public, or (3) engaged by persons paying for such services an amount aggregating in excess of the transporting carrier's duly published charter rate or fare: Provided, That in the case of a charter trip in which the total charge is prorated among the members of a group, this provision shall not be deemed to preclude the reimbursement of the group representative for reasonable administrative expenses actually incurred in arranging the charter.

(c) "Off-route charter trip" means a charter trip performed by a foreign air carrier between points between which it does not have authority under a foreign air carrier permit issued by the

83-577-65

§ 212.3

Tariffs to be filed for off-route charter trips.

No foreign air carrier shall perform any off-route charter trips unless such foreign air carrier shall have on file with the Board 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. § 212.4 Limitation on the operation of off-route charter trips.

A foreign air carrier shall not perform any off-route charter trip unless specific authority in the form of a Statement of Authorization to conduct such charter trip has been granted by the Board. § 212.5 Statements of Authorization; application.

(a) Application for a Statement of Authorization shall be submitted on CAB Form 4331 to the Civil Aeronautics Board, addressed to the attention of the Director, Bureau of Air Operations. Upon a showing of good cause, such application may be transmitted by cablegram or telegram or may be made by telephone. Each applicant shall keep on file with the Director, Bureau of Air Operations a copy of its current standard

1 Copies of this Form available, upon request, in the Publications Section, C. A. B.