(f) Columns 6 and 7 shall reflect the balance outstanding at the end of the reporting period in accounts 2210 LongTerm Debt and 2010 Current Notes Payable on Schedule B-1, respectively.

(g) Columns 8 and 9 shall reflect the name and address of holders of more than 5 percent of the issue or $500,000, whichever is smaller, showing for each such holder the amount held as at the end of the reporting period.

Schedule B-47-Lease Obligations—
Flight Equipment

(a) This schedule shall be filed by each supplemental air carrier and shall reflect information pertaining to each flightequipment lease obligation with annual rental of $500,000 or 1 percent of total debt and equity capital, whichever is less, but excluding leases with annual rental of less than $100,000.

(b) A single set of this schedule shall be filed for the overall corporate or other legal entity comprising the air carrier.

(c) Column 1 shall reflect a description of each item of flight equipment under lease by the reporting carrier of the magnitude specified in paragraph (a).

(d) Column 2 shall reflect the beginning date of the lease.

(e) Column 3 shall reflect the life of the lease and any renewal periods. Where a lease is not renewable, the word "none" shall be reported.

(f) Column 4 shall reflect the name and address of the lessor.

(g) Column 5 shall reflect the aggregate amount of the contractural obligation payable over the full life of the lease, including interest and other charges.

(h) Column 6 shall reflect the total amount due and payable under the lease in the ensuing twelve-month period including interest and other charges. If the lease is conditional, the minimum amount due in the twelve months shall be stated with explanation. Where the amount varies from year to year, a schedule of payments shall be attached.

(1) Column 7 shall indicate whether the lease contains purchase option provisions by insertion of the word "yes" or "no".

Interim Balance Sheet

Each supplemental air carrier shall file each month two copies of a balance sheet as at the end of each month, which may be in the form prepared for man

agement purposes: Provided, That such balance sheet need not be filed as at the close of calendar quarters where the amount reflected in the "Stockholder Equity" section thereof agrees with similar data reflected on Schedule B-1 as at the same date: And provided further, That a balance sheet for the third month of the fourth calendar quarter need not be filed if the preliminary fourth-quarter Form 41 report is filed within a 30-day period rather than the prescribed 40-day period.

[ER-369, 27 F.R. 12822, Dec. 29, 1962, as amended by ER-417, 29 F.R. 13532, Oct. 1, 1964; ER-423, 29 F.R. 14875, Nov. 3, 1964; ER-425, 30 F.R. 746, Jan. 23, 1965]

Section 34-Profit and Loss Elements Schedule P-1.1-Income StatementGroup I Air Carriers

(a) This schedule shall be filed by each supplemental air carrier.

(b) Data shall be reported only in the column headed "Quarter." Cumulative "12 Months to Date" information is not required from supplemental air carriers. The caption "operation" is not applicable to supplemental air carriers.

(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) "Unappropriated Retained Earnings--Beginning of Period" shall be the sum of Account 2940 "Unappropriated Retained Earnings" and Account 2941 "Net Income" reported on the balance sheet as at the close of the previous quarter.

(e) "Unappropriated Retained Earnings-End of Period" shall be the sum of Account 2940 "Unappropriated Retained Earnings" and Account 2941 "Net Income" reported on the balance sheet as at the close of the current quarter. Schedule P-2-Notes to Income Statement

(a) This schedule shall be filed by each supplemental air carrier.

(b) All substantive matters which may influence materially interpretations or conclusions in regard to the earnings position of the air carrier which are not clearly identified in the body of the income statement shall be completely and clearly stated in this schedule and crossreferenced to the affected profit and loss account.

Schedule P-3.1-Transport Revenues (a) This schedule shall be filed by each supplemental air carrier.

(b) The schedule shall reflect the distribution of revenues by geographic area. (See section 31(h).)

(c) Revenues reported shall reflect the aggregate revenue from each indicated class of traffic. In the case of military contracts, type of service shall be reported under the appropriate objective account. Abbreviations may be used in reflecting type of service, such as CAMS (Commercial Air Movements), CAFS (Commercial Air Freight Movements), MATS-FC (Military Air Transport Service Fixed Contracts), MATSCC (Military Air Transport Service Call Contracts). The type of aircraft shall also be reported for each type of service, e.g., CAMS-DC-4. Type of service would also include Maintenance, Equipment Modification, Personnel Training, Etc.

(d) The sum of the subdivisions of each objective account reported in this schedule shall agree with the corresponding amounts reported in schedule P-1.1, Income Statement.

Schedule P-5.1-Aircraft Operating
Expenses-Group I Air Carriers

(a) This schedule shall be filed by each supplemental air carrier.

(b) The schedule shall be filed for quarterly data only. The caption "Operation" at the head of each column is not applicable to supplemental air carriers.

(c) Data applicable to each aircraft type operated by the air carrier shall be reported in separate columns of this schedule and each aircraft type for which report is being made shall be identified at the head of each column in the space provided opposite "Aircraft Type." However, each air carrier may group, on a uniform basis, data applicable to small single-engine aircraft types of approximately equivalent size, flight principles and characteristics. For this purpose two groups, with subdivision as between fixed wing and rotary wing aircraft types, and between reciprocal engine, turbojet and turboprop aircraft types are established as follows: (1) single-engine aircraft with maximum continuous horsepower of 300 or under; (2) singleengine aircraft with maximum continuous horsepower of 301 to 450, inclusive. All other aircraft types, including larger

single-engine and small twin-engine types, are to be separately reported. Aircraft types not generally used in revenue services 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) "Aircraft type" refers to models, such as DC-6, DC-6A, CV-240, L-649, etc., as designated by the manufacturer. 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 Board, 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 types, and maintenance of ground property and equipment (exclusive of maintenance equipment and maintenance buildings) in accordance with item (d) of the instructions for schedule P-6. The amount reported for this item, in aggregate for all aircraft types, shall agree with the amount reported for the same item reflected on schedule P-6.

(g) Item 73.1 Current Provisions (for obsolescence and deterioration of flight equipment expendable parts) shall reflect the gross provisions for losses in value of expendable parts during the current accounting period.

(h) Item 73.2 Inventory Decline Credits shall reflect credits applicable to the current period for any adjustments for excess inventory levels determined pursuant to section 6-1311.

(i) The total of function 5100 Flying Operations reported on this schedule shall agree with corresponding amounts reported on schedule P-1.1, and the total of item 5278 Total Direct MaintenanceFlight Equipment shall agree with the

corresponding amount reported in schedule P-6.

Schedule P-6—Maintenance, Passenger Service, and General Services and Administration Expense Functions (a) This schedule shall be filed by each supplemental air carrier.

(b) The schedule shall be filed for quarterly data only. The caption "Operation" at the head of each column is not applicable to supplemental air carriers.

(c) Supplemental air carriers shall report the indicated data for all except function 5500 Passenger Service.

79.8

(d) Items 79.6 Applied Maintenance Burden-Flight Equipment and Applied Maintenance Burden-General Ground Property, respectively, 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 types) and maintenance of ground property and equipment (exclusive of maintenance equipment and maintenance buildings for which costs are included in subfunction 5300). Where airframe and aircraft engine overhauls are accounted for on the accrual basis to produce a matching of costs with the operation of aircraft, the allocation of maintenance burden shall give effect to charges and credits to profit and loss account 5272 Flight Equipment Airworthiness Provisions in order to effect an equitable allocation of such maintenance burden costs. Each supplemental air carrier shall file with the Civil Aeronautics Board a statement as a supplement to this schedule in which the procedures to be followed in allocating maintenance burden are fully explained. Revisions in such allocation procedures shall not be effected for 30 days following written notice to the Civil Aeronautics Board. (See section 32 (d).)

At the option of the supplemental air carrier, standard burden rates may be employed for quarterly allocations of maintenance burden provided the rates are reviewed at least once each accounting year and the amounts allocated are adjusted to reflect the actual costs incurred for the full accounting year.

Any differences between actual burden costs incurred during each quarter and amounts applied at standard rates shall be entered as item 79.9 Over or Under Applied Burden.

51-028-66- -16

(e) The sum of the totals of subfunctions 5200 Direct Maintenance and 5300 Maintenance Burden shall agree with the corresponding amount reported in function 5400 on schedule P-1.1. The total of function 6900 General Services and Administration reported in this schedule by supplemental air carriers shall agree with the corresponding amount reported on schedule P-1.1.

Interim Income Statement

(a) Each supplemental air carrier shall file each month two copies of a monthly income statement, which may be in the form prepared for management purposes.

(b) An income statement for the third month of the fourth calendar quarter need not be filed if the preliminary fourth-quarter Form 411 report is filed within a 30-day period rather than the prescribed 40-day period.

[ER-369, 27 F.R. 12824, Dec. 28, 1962; as amended by ER-417, 29 F.R. 13533, Oct. 1, 1964]

Section 35-Traffic and Capacity Elements

General Instructions

(a) The prescribed reporting for traffic and capacity elements is designed to reflect the physical factors related to air transport operations as actually conducted.

(b) All statistics to be reported in the following schedules shall be compiled in accordance with the definitions set forth in section 03 Definitions for Purposes of This System of Accounts and Reports. In principle, elements which are common to different statistics shall be measured on a consistent basis for all statistics of which they are a component. Thus, all passenger-mile, seat-mile, tonmile and aircraft-mile statistics applicable to a particular service or operation shall be compiled on a direct airport-toairport mileage basis in terms of a consistent measurement of aircraft movement by flight stages. All statistics pertaining to actual operations shall be compiled in terms of each flight stage as actually performed.

(c) As a general rule, the traffic and capacity measurements to be reported on these schedules are designed to repre

1 Form filed as part of the original docu

ment.

sent the physical operations reflected by the revenues and expenses, respectively, for the same period. Thus, except as separately provided for, aircraft capacity elements associated with deferred costs are not to be included in reported statistics whereas the revenue traffic elements associated with flights for which costs but not revenues are deferred shall be reported as if carried on other flights and the amounts so included shall be disclosed by footnote to the applicable item. For purposes of reporting by aircraft types on schedule T-3.1, small single-engine aircraft types may be grouped in accordance with the instructions in section 34, schedule P-5.1, paragraph (c).

Schedule T-3.1-Statement of Traffic and Capacity Statistics

(a) This schedule shall be filed by each supplemental air carrier.

(b) Separate schedules shall be filed for (1) domestic, (2) territorial-Alaska/ Hawaii, (3) territorial/other, and (4) international including Canadian transborder by aircraft types. (See section 31(h)).

(c) Each schedule shall reflect a distribution of data by individual sales, charter or military services.

(d) All mileage data shall be based upon direct airport-to-airport distances as distinguished from course-flown distances. Mileage related to flights which are not measurable in terms of airportto-airport distances shall be determined by applying a typical airport-to-airport speed for each aircraft type to the aircraft hours flown by each aircraft type in such flights.

(e) Aircraft hours data shall be based upon the time each aircraft becomes airborne on takeoff to the time of ground contact upon landing.

(f) Daily utilization by aircraft type shall reflect the sum of the number of days that each aircraft owned by the reporting carrier and each aircraft rented, leased or borrowed from others is in the possession of the carrier. For reporting purposes, part of a day shall be considered a full day. Daily utilization need not be reported separately for domestic, territorial, and international operations, but may be reported in total on the domestic sheet.

(g) Available ton-miles shall be computed by multiplying the miles flown per each interstation trip in revenue service by the available load for that trip. In

determining the available load, the supplemental carrier may use either the actual capacity for each trip or an average for each type of aircraft which represents the capacity actually available for sale in its operations.

(h) Available seat-miles shall be computed by multiplying the miles flown per each interstation trip by the number of seats available on that trip for the carriage of passengers. In determining the number of available seats, the supplemental carrier may use either the actual capacity for each trip or a standard which represents an average for each type of aircraft used in the carrier's operations.

(i) Each supplemental air carrier shall submit to the Civil Aeronautics Board a detailed statement of its method of computing available ton-miles and available seat-miles for each type of aircraft operated. Also, any future changes in methods of computation shall be submitted, subject to review and approval by the Civil Aeronautics Board. (See section 32(d).) The measurement of available aircraft capacity may reflect company minimum fuel requirements in lieu of the requirements under Civil Air Regulations, provided that the use of such company fuel requirements is indicated in the above statement and that the statement contain certification by a responsible company official that said fuel loads are not in excess of company safety requirements. The reason for exclusion of any installed seats in the computation of available seat-miles with respect to any aircraft type and the provisions made for protecting against the sale of such seats shall be described in this statement and shall be certified to by a responsible company official. (See section 03 "seats available".)

(j) Revenue passenger originations shall represent an unduplicated count of passengers originating journeys on the lines of each reporting entity." (See Section 03 "Passenger originations.")

(k) Revenue passenger-miles shall be computed by multiplying the revenue miles flown per each interstation trip by the number of revenue passengers carried on that trip.

(1) Revenue freight-ton-miles shall be computed by multiplying the revenue miles flown per each interstation trip by the number of tons of freight carried on that trip.

(m) The number of employees shall represent the total number of full and

part-time employees, both permanent and temporary, who worked or received pay for any part of the pay period(s) ending nearest the 15th of the final month during the current quarter.

[ER-369, 27 F.R. 12825, Dec. 28, 1962, as amended by ER-417, 29 F.R. 13533, Oct. 1, 1964; ER-423, 29 F.R. 14875, Nov. 3, 1964; ER-424, 30 F.R. 1191, Feb. 4, 1965]

NOTE: The reporting requirements contained herein have been approved by the Bureau of the Budget in accordance with the Federal Reports Act of 1942.

Section 36-General Corporate
Elements

Schedule G-41-Persons Holding More
Than 5 Per Centum of Respondent's
Capital Stock or Capital

(a) This schedule shall be filed by each supplemental air carrier.

(b) This schedule shall reflect the name, address and number of shares of each class of stock held by all persons holding more than five (5) per centum of the issued and outstanding capital stock or, in cases of unincorporated business enterprises, more than five (5) per centum of the total invested capital of the reporting carrier as of the close of the year.

(c) Column 3, "Held for Own Account", shall reflect by the word "yes" or "no" whether or not the interest is held for the account of the person named in column 1. In cases where the answer is "no" the name and address of the persons for whose account the interest is held shall be indicated by footnotes.

Schedule G-42—Compensation and Ex

penses of All General Officers and Directors and of Management Personnel Receiving $20,000 or More per Annum for Personal Services

(a) This schedule shall be filed by each supplemental air carrier.

(b) The indicated data shall be reported individually for each elective corporate officer, executive and director. The dates to be reported in column 3 shall be the dates each such elective officer, executive and director was first elected to the office held at the date of the report. Reports shall be made in aggregate for all management personnel receiving compensation for personal services of $20,000 or more per annum. The name of each elective officer, executive and director and the number of management personnel receiving $20,000

or more per annum shall be entered in column 1; the annual compensation and reimbursed expenses paid during the calendar year to each officer, executive and director, and the aggregate thereof for all such management personnel, shall be entered in columns 5, 6, and 7, respectively; and the upper and lower limits in the range of compensation and expenses paid to management personnel shall be separately stated in such columns 5, 6 and 7.

(c) Management personnel shall include all general supervisory and administrative personnel not directly responsible for the in-flight operation of aircraft or engaged directly in the performance of maintenance activities. Management personnel, as distinguished from elective officers and directors, for whom report is to be made shall include those who receive $20,000 or more compensation for personal services during the previous calendar year and those initially employed during the current calendar year at an annual compensation rate of $20,000 or more.

(d) Indirect compensation in column 6 shall include payments made by persons holding management contracts providing for management of, or services to, the air carrier or its associated companies.

(e) Expenses borne by the supplemental air carrier to be reported in column 7 shall include all reimbursements to the persons listed in column 1, regardless of whether for goods or services used by the persons listed or by others; whether in the form of per diem or other allowances, or reimbursement for specific expenditures; and whether for amounts reimbursed directly to the persons listed or, except for standby hotel or other facilities maintained for the air carrier's personnel generally, indirectly through vendors who bill the air carrier directly.

(f) Columns 8 through 11 shall reflect securities of the supplemental air carrier owned by officers, directors, or management personnel as at December 31. Column 8 shall reflect the class of capital stock, bonds or other securities of the air carrier owned; columns 9 and 10, respectively, shall reflect the number of shares of stock held in the name of, or for the account of, each general officer, and director, and all management personnel receiving $20,000 or more per annum; and column 11 shall reflect the principal amount of bonds or other securities held in the name of "