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certificated helicopter carrier is authorized to serve under an area exemption order, an air taxi operator will be prohibited from carrying mail therein only if there is an approved flight pattern with respect to such market under Part 376 of this chapter (Board's special regulations). The rules applicable to final mail rate proceedings set forth in Part 302 of this chapter shall govern the procedure for establishing a final mail rate of an air taxi operator for purposes of this part. (See §§ 302.300 through 302.321, excluding § 302.310 of this chapter.)

[ER-317, 25 F.R. 12910, Dec. 16, 1960, as amended by ER-438, 30 F.R. 9205, July 23, 1965; ER-445, 30 F.R. 12669, Oct. 5, 1965; ER448, 30 F.R. 14044, Nov. 6, 1965]

§ 298.22 Operation of large aircraft. (a) Prohibition of operation of large aircraft in air transportation. Nothing in this part shall be construed as authorizing the operation of aircraft having a maximum take-off weight of more than 12,500 pounds by air taxi operators in air transportation.

(b) Reporting of interest in large aircraft. Every air taxi operator shall report to the Board any proprietary interest, direct or indirect, in any large aircraft or any enterprise operating large aircraft. Such reports shall be filed in duplicate within 30 days of the effective date of this part and thereafter within 5 days of acquisition of such interests. They shall be addressed to the Civil Aeronautics Board, Washington, D.C., 20428, attention of the Chief, Routes and Agreements Division, Bureau of Economic Regulation.

(c) Reporting of operations with large aircraft. Any air taxi operator which operates or intends to operate large aircraft for compensation or hire shall file with the Board a description of the method or proposed method of operations and state why such operations are believed not to constitute air transportation. Such reports shall state, among other pertinent matters, whether State lines or the boundaries of the United States will be crossed; the ultimate origin and destination (not only the places between which carriage is provided) of the persons or property carried; and the persons with whom contracts for transportation have been made or are expected to be made. In case operations not falling within the description on file with the Board are to be undertaken, a report

containing the same data shall be filed within 3 days after the particulars of such operations have been decided upon. These reports shall be submitted in duplicate, by airmail if mailed more than 200 miles from Washington, D.C., addressed to the Civil Aeronautics Board, Washington, D.C., 20428, attention of the Chief, Routes and Agreements Division, Bureau of Economic Regulation.

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

[ER-317, 25 F.R. 12910, Dec. 16, 1960, as amended by ER-438, 30 F.R. 9205, July 31, 1965]

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(a) It shall be an express condition upon the exercise of the privileges herein granted and the operating authorizations issued hereunder, that any air taxi operator, in holding out to the public and in performing air transportation services, shall do so only in a name or names in which its air carrier operating certificate is issued pursuant to section 604 of the Act by the Administrator of the Federal Aviation Agency: Provided, That the Board may require an air taxi operator to change such name or names where they appear contrary to the public interest.

(b) Slogans shall not be considered names for the purposes of this section, and their use is not restricted hereby.

(c) Neither the provisions of this section nor the grant of a permission hereunder shall be deemed to constitute a finding for purposes other than for this section, or to effect a waiver of, or exemption from any provisions of the Act, or orders, rules or regulations issued thereunder.

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In case of any violation of the provisions of the Act, or this part, or any other rule, regulation, or order issued under the Act, the violator may be subject to a proceeding pursuant to sections 1002 and 1007 of the Act before the Board or a United States District Court, as the case may be, to compel compliance therewith, or, in the case of a willful violation, to criminal penalties pursuant to the provisions of section 902(a) of the Act; or other lawful sanctions including revocation of operating authority.

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AUTHORITY: The provisions of this Part 299 issued under sec. 204(a), 72 Stat. 743; 49 U.S.C. 1324. Interpret or apply sec. 416(b), 72 Stat. 771; 49 U.S.C. 1386.

§ 299.1 Definitions.

For the purposes of this part:

(a) "Aircraft" means any aircraft, together with spare parts, appurtenances and accessories maintained for installation or use therein.

(b) "Certificated Air Carrier" means any air carrier which holds a certificate of public convenience and necessity issued under section 401 of the Act, other than an air carrier which holds a certificate of public convenience and necessity for supplemental air service.

(c) "Stockholder" means a person who directly or beneficially owns 5 percent or more of the outstanding stock of a company.

[ER-252, 24 F.R. 759, Feb. 4, 1959]

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1 This exemption does not release a party to an aircraft sale or lease agreement from conditions in any Board order prohibiting or limiting transactions involving such party. It should be further noted that an air carrier subject to Part 42 of this title must, as required by § 42.11, have the exclusive use of all large aircraft operated by it for the carriage of goods or persons for compensation or hire. Section 42.1 defines the exclusive "use of an aircraft for flight arising from either (i) a lease or other agreement or arrangement under which the air carrier is to have the right to such possession, control, and use for a period of at least six consecutive months from the date of such lease or other agreement or arrangement, or (ii) ownership of the aircraft."

been entered into after arm's length bargaining and does not involve:

(a) A purchase, lease, or lease with purchase option by an air carrier:

(1) Which has an officer, director, proprietor, member, partner, employee or stockholder who is, or has a representative or nominee who represents such person as, an officer, director, proprietor, member, owner, partner, or stockholder of the person whose aircraft are being purchased or leased;

(2) Which owns, directly or beneficially, any financial interest in the person whose aircraft are being purchased or leased;

(3) In which any financial interest is owned, directly or beneficially, by the person whose aircraft are being purchased or leased;

(4) Which controls, is controlled by, or is under the common control with, a person whose aircraft are being purchased or leased;

(5) Which has an officer or director who is an officer or director of a corporation or member of a firm which is a stockholder of the person whose aircraft are being purchased or leased; or

(6) Which is a party to an executory agreement with the person whose aircraft are being purchased or leased which will, or may upon consummation thereof, result in any of the relationships set forth in this paragraph.

(b) A purchase, lease, or lease with purchase option by an air carrier from a certificated air carrier of aircraft of more than

(1) $10,000,000 in market value, or (2) 10 in number, or

(3) 20 percent of either the total number, total market value, or total lift capacity (pay load) of aircraft of a certificated air carrier,

whichever is less, either in a single transaction or in successive transactions within a six month period. For purposes of computing total aircraft in accordance with subparagraph (3) of this paragraph, all aircraft of the certificated air carrier shall be included except aircraft which is under lease to such carrier for six months or less, and aircraft which is owned by such carrier but is under lease to some other person for a period of more than six months.

(c) A lease with crew or an aircraft interchange agreement.

(d) An aircraft purchase or lease agreement wherein the payment to the

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The attached agreement was entered into 19, and is being filed with the Board by pursuant to Part 299 of the Board's Economic Regulations. In submitting this agreement, the undersigned

'To the extent that an agreement coming within this regulation is also subject to section 412, the air carrier must comply separately with the filing requirements of Part 261 of this chapter and, if involving supplemental carriers, with any prior approval requirements imposed on them. An outright sale or lease of aircraft without crew is not deemed to be within the purview of section 412.

herein certifies that such agreement (1) has been entered into after arm's length bargaining, (2) to his best knowledge and belief and so far as he could reasonably determine does not involve any of the relationships set forth in paragraph (a) (4) of § 299.2, and (3) does not involve any of the other prohibited relationships set forth in paragraph (a) of 299.2.

Insofar as applicable, a statement should also be submitted containing a recital of the specific data relied upon by the air carrier in concluding that the transaction does not exceed any of the limitations of § 299.2(b).

[ER-252, 24 F.R. 759, Feb. 4, 1959, as amended by ER-283, 24 F.R. 8720, Oct. 28, 1959] § 299.4 Termination of exemption.

The exemption granted by this part may be terminated by the Board, under appropriate procedures, with respect to any transaction that the Board finds to be inconsistent with the public interest. [ER-283, 24 F.R. 8720, Oct. 28, 1959] § 299.5

Effect of exemption.

The exemption granted by this part shall not be deemed to constitute a determination for rate-making purposes of the reasonableness of the transaction or an "order made under sections 408, 409 and 412" within the meaning of section 414 of the act.

[ER-252, 24 F.R. 760, Feb. 4, 1959. Redesignated by ER-283, 24 F.R. 8720, Oct. 28, 1959]

SUBCHAPTER B-PROCEDURAL REGULATIONS

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Sec.

300.15 Temporary disqualification of former Board members and employees who have acquired particular knowledge.

300.16 Waiver of §§ 300.13 and 300.14. 300.17 Disqualification of partners of Board members and employees.

300.18 Assistance from disqualified persons. 300.19 Use of confidential information. 800.20 Violations.

AUTHORITY: The provisions of this Part 300 issued under sec. 204 (a), 72 Stat. 743; 49 U.S.C. 1324. Interpret or apply secs. 202, 1001, 72 Stat. 741, 788; 49 U.S.C. 1322, 1481. $$ 300.10 to 800.20 also issued under 18 U.S.C. 201-218.

§ 300.0 Applicability.

The rules of conduct set forth in this part shall govern the conduct of parties and their representatives, and the relationships between the Board, its staff, and all other persons in all Board pro

ceedings and matters, except as otherwise provided in any Board regulation. [PR-75, 28 F.R. 2707, Mar. 20, 1963]

§ 300.1 Judicial standards of practice. In many respects the functions of the Board are similar to those of a court and parties to cases before it and those who represent such parties are expected to conduct themselves with honor and dignity. By the same token, the members of the Board, and those of its employees who participate with the Board Members in the determination of cases upon a record, are expected to conduct themselves with the same fidelity to standards of propriety that characterize a court and its staff. The standing and effectiveness of the Board are in direct relation to its observance, that of its staff, and the parties and attorneys appearing before it, of the highest standards of judicial and professional ethics. [PR-10, 16 F.R. 2932, Apr. 4, 1951]

§ 300.2 Hearing cases; improper influ

ence.

It is essential in cases to be determined after notice and hearing and upon a record, or any other cases which the Board by order may designate, that the Board's judicial character be recognized and protected. Therefore, from the time of filing of an application or petition which can be granted by the Board only after notice and hearing, or, in case of other matters, from the time of notice by the Board that such matters shall be determined after notice and hearing and upon a record or that its Rules of Conduct shall be applicable thereto:

(a) A written or oral communication on any substantive or procedural issue in the case to a Member of the Board or its staff, or to the examiner in the case other than in compliance with the Board's Rules of Practice by any person, either in private or public life, shall be deemed a private communication on the merits. Such communications, unless otherwise provided for by law or published rule are hereby prohibited: Provided, That this prohibition shall not be deemed to apply to informal complaints filed with the Board or to communications with staff members of the Board who are in the course of preparing a case, or for the purpose of determining whether a complaint shall be docketed, or to the usual informal com

munications between counsel, including discussions to effectuate a stipulation, or to settlement discussion between parties and the Board's enforcement staff, or investigative activities, or to other communications which are deemed proper in proceedings in the Federal courts. Communications which merely make inquiry as to the status of a proceeding without discussing issues are not considered communications on the merits. Any prohibited communication in writing received by the Board or its staff or the examiner in the case, shall be made public by placing it in the correspondence file of the case which is available for inspection and copying during business hours in the Board's Docket Section, but will not be considered by the Board or the examiner as part of the record for decision.

(b) Requests for expeditious treatment of a pending application will be considered communications on the merits. If made by a party or applicant for intervention, such a request shall be made by motion (§ 302.18). If made by any other interested person, such a request shall be made in accordance with the requirements in § 302.14. A request which is not made in accordance with the Board's rules shall be placed in the public correspondence file and will not be considered by the Board.

(c) It is improper that there be any private communication on the merits of any substantive or procedural issue in the case to a Member of the Board or to the examiner in the case by any members of the Board's staff who participate in the hearing as witnesses or as counsel.

(d) It is improper that there be any effort by any person interested in the case to sway the judgment of the Board by attempting to bring pressure or influence to bear upon the Members of the Board, its staff or the examiner in the case, or that such person or any member of the Board's staff or an examiner, directly or indirectly, give statements to the press or radio, by paid advertisements or otherwise, designed to influence the Board's judgment in the case.

(e) It is improper that any person solicit communications to the Board or any of its members or its staff or to the examiner in the case other than proper communications by parties or non-parties permitted under Rules 14 and 15 of the Board's rules of practice. Anybody

soliciting the support of another person shall call such person's attention to the provisions of Rules 14 and 15.

[PR-43, 25 F.R. 12432, Dec. 6, 1960, as amended by PR-48, 26 F.R. 4282, May 17, 1961; 26 F.R. 4423, May 23, 1961, PR-75, 28 F.R. 2708, Mar. 20, 1963]

§ 300.3

Conciseness of presentation.

Persons practicing before the Board should endeavor to present their cases in concise form avoiding cumulative and repetitious evidence, since the members of the Board participating in the decision of a case, after notice and hearing and upon a record, must familiarize themselves with the evidence in the record and with the arguments made on behalf of the parties orally and in written briefs, and must base their decision solely on the record.

(PR-10, 16 F.R. 2932, Apr. 4, 1951]

§ 300.4 Attorney-client relationship.

Persons practicing or appearing before the Board, whether or not members of the bar, should have due regard for the standards of professional conduct applicable to the lawyer-client relationship and to the relationship between a lawyer and a judicial tribunal.

(a) The nontechnical nature of the Board's procedure calls for special adherence, by practitioners, to scrupulous standards of fairness, candor, and consideration for the rights of others in the pleadings filed, evidence submitted, conduct of the hearing, and briefs and arguments made. In appearing for a client, the practitioner thereby vouches on his honor that in his opinion the client's cause is one proper for determination, and in presenting pleadings and offering evidence he represents that the same are not offered for unwarranted delay and that in his opinion the content thereof is not misleading. Nor should

he indulge in offensive personalities, unseemly wrangling, or intemperate accusations or characterizations.

(b) A practitioner, moreover, should advise his client to observe the law according to his conscientious belief as to its permissible meaning and should use his best efforts to restrain his client from improprieties in dealing with the Board or its staff. If a client persists in such improprieties, the practitioner should terminate their relationship.

[PR-10, 16 F.R. 2932, Apr. 4, 1951. Redesignated by PR-75, 28 F.R. 2708, Mar, 20, 1963]

§§ 300.5-300.9

§ 300.10

[Reserved]

Gifts and unusual hospitality.

(a) No person, otherwise than as provided by law for the proper discharge of official duty, shall directly or indirectly give, offer, or promise anything of value to any Board Member or employee for or because of any official act performed or to be performed by such Board Member or employee (18 U.S.C. 201).

(b) It is improper for persons interested in the business of the Board to provide unusual hospitality to the Board or its staff.

[PR-75, 28 F.R. 2708, Mar. 20, 1963]

§ 300.11

Disqualification of Government officers and employees.

No officer or employee of the Federal Government, who is employed to serve more than 130 days in any period of 365 days, shall represent anyone, otherwise than in the proper discharge of his official duties, in any Board proceeding or matter in which the United States is a party or has a direct and substantial interest. (18 U.S.C. 205(2).) [PR-75, 28 F.R. 2708, Mar. 20, 1963]

§ 300.12 Practice of special Government employees permitted.

A special Government employee, who qualifies as such under the provisions of 18 U.S.C. 202(a), may participate in Board proceedings only to the extent and in the manner specified in 18 U.S.C. 205. [PR-75, 28 F.R. 2708, Mar. 20, 1963]

§ 300.13

Permanent disqualification of former Board members and employees in matters in which they personally participated.

No former Board member or employee, including a special Board employee, shall appear before the Board on behalf of, or represent in any other manner, any person in connection with any Board proceeding or matter which he handled or passed upon or in which he participated personally and substantially through decision, approval, disapproval, recommendation, rendering of advice, investigation, or otherwise as a Board member or employee. (18 U.S.C. 207(a).) [PR-75, 28 F.R. 2708, Mar. 20, 1963]

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