(4) The total amount of stock or other interests (by class and issue) having voting or conversion rights which have been actually issued by the issuing company and are outstanding (whether or not held by the affiliate reporting hereunder). If convertible, an explanation of the option shall be set forth, and the total amount convertible shall be stated.

(c) For each person or company named in the report, including the affiliate but excluding the air carrier:

(1) A description of the principal occupation of each individual,

(2) A description of the business activities of each company, including, with respect to any company performing common carrier service, the geographical area authorized to be served, and the nature of any license held by such company to perform such services.

[ER-146, 14 F.R. 3540, June 29, 1949, as amended by ER-469, 31 F.R. 10075, July 26, 1966]

The reports required in § 246.2 need not be filed as of December 31 of any year by any such affiliate:

(a) If such affiliate is an air carrier required to file a report as of December 31 of the same year, pursuant to section 407 (b) of the act; or

(b) If such affiliate is an individual required to file a report as an officer or director of any air carrier, on or before March 1 of the following year, pursuant to section 407 (c) of the act: Provided. however, That if between said December 31 and March 1 of the following year any such individual should be relieved of the requirement of filling said report as an officer or director of any air carrier, then the exception herein created shall immediately terminate as to said individual, and said individual shall file, on or before April 1, the report required in § 246.2 (b).

PART 247-DIRECT AIRPORT-TO-
AIRPORT MILEAGE recordS

§ 247.1 Official mileage record of the Board.

The direct airport-to-airport mileage record now maintained, and as hereafter amended or revised from time to time by the Schedule Records Unit of the Office of the Secretary of the Civil Aeronautics Board in the regular per

formance of its duties, is hereby adopted as the official mileage record of the Board 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 Titles IV and X of the Federal Aviation Act of 1958, as amended, or any rule, regulation, or order of the Board pursuant thereto.

(Secs. 204, 407, 72 Stat. 743, 766; 49 US.C. 1324, 1377) [ER-444, 30 F.R. 12249, Sept. 24, 1965]

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 Board, 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, submitted with or separately, as a part of the audit report.

(b) Each air carrier, subject to § 248.1, which 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 Board, as a part of its periodic reports, a statement that no such audit has been performed.

Destruction of records in violation of this regulation will be deemed substantial evidence of the carrier's unwillingness to comply with the Act and the Board's regulations thereunder.

(Sec. 204(a), 72 Stat. 743; 49 U.S.C. 1324. Interpret or apply sec. 401, as amended, and 407, 72 Stat. 754, 766; 76 Stat. 143-145; and sec. 10 of Public Law 87-528 of July 10, 1962, 76 Stat. 149; 49 U.S.C. 1871, 1377) [27 FR. 9911, Oct. 9, 1962]

Subpart A-Air Carriers Other Than Air Freight Forwarders and International Air Freight Forwarders

§ 249.1 Applicability.

Except as otherwise provided in this subpart or other parts of this subchapter, the provisions of this subpart shall apply to (a) air carriers, as defined in section 101 (3) of the Act, which hold certificates of public convenience and necessity, supplemental air carriers, subject to the reporting requirements of Part 241 of the subchapter and former Part 242 of this subchapter, (b) holders of a permit authorizing the navigation in the United States of foreign civil aircraft pursuant to Part 375 of this chapter (Board's special regulations), and (c) foreign air carriers, as defined in section 101(19) of the Act.

[ER-440, 30 FR. 9579, July 31, 1965] § 249.2 Definitions.

For the purposes of this part:

"Certified description" means permanently retained instrument which (1) identifies records by date and/or period covered; (2) describes such records in accordance with the applicable section of this part prescribing retention categories; and (3) has been certified to be correct in an instrument executed by a responsible officer of an air carrier.

"Certificated route air carrier” means the holder of a certificate of public convenience and necessity issued by the Civil Aeronautics Board under section 401(d) (1) and (2) of the Act, authorizing the holder to provide unlimited scheduled service over designated routes.

"Final adjudication" shall be deemed to have occurred upon the first applicable date specified below:

(1) Where the Board has finally disposed of any case, with or without reconsideration, and no petition for judicial review has been filed by any party entitled to file such a petition under section 1006(a) of the Act, midnight of the last day prescribed for the filing of such a petition.1

(2) Where such a petition has been filled, the day of issuance of a final decision, by the highest court to have entertained the proceeding, fully disposing of such petition for review and of all further review proceedings arising therefrom and, where applicable, until the expiration of the time prescribed for the filing of a petition for further review.

(3) Where proceeding has been remanded to the Board for further action, the applicable date specified in subparagraph (1) or (2) of this paragraph in respect of the proceeding on remand.

"Microfilms" means photographic reproductions of original documents which have been made in compliance with the requirements of § 249.7.

"Open mail rate period" means the whole or any part of the time interval between the date of institution of a new mail rate proceeding, under Rule 303 of the Board's rules of practice (§ 302.303 of this chapter) or of the inauguration of service over a new route or routes, for which no mail rate has previously been fixed, and the date upon which a Board order prescribing the rate of final mail compensation, payable for periods subsequent to the date of adoption thereof, becomes legally effective under sections 1005 and/or 1006 of the Act.

"Original documents" means any record initially acquired, processed or sub

1 For the purposes of this part, the statutory period prescribed for the filing of a petition for judicial review shall be deemed to have expired as follows: (a) Where no timely petition for reconsideration has been filed with the Board, in accordance with its rules of practice, on the sixtieth day following entry of final Board order disposing of all issues in a pending case; and (b) where a timely petition for reconsideration has been filled with the Board, in accordance with its rules of practice, on the sixtieth day following the entry of an order disposing of such a petition.

sequently modified in connection with each constituent step involved in an evidentiary account of historical events. The term "original documents" also embraces any copy of initially prepared documents bearing subsequently added approvals, comments or notations of significance to a full explanation of recorded facts or information.

"Pending case" means any hearing case that the Board is empowered to conduct prior to final adjudication thereof.

"Records" means original documents,' or microfilms thereof, made as authorized herein, constituting integral links in developing the history of, or facts regarding financial transactions or physical operations. The term “records” embraces not only accounting records in a limited technical sense but all other evidentiary accounts of events such as memoranda, correspondence, working sheets, and tabulating equipment listings or tapes. The term "records" also encompasses any material coming into the possession of the air carrier through merger, consolidation, succession, transfer, or other acquisition.

"Records relating to an accounting year" means "records" which record transactions or events either occurring, or necessitating accounting entries to be made, in any twelve-month period which an air carrier has been authorized to use for purposes of accounting and reporting to the Board.

"Subsidy" means that portion of the rate of compensation for the transportation of mail, established pursuant to section 406 of the Act, which is paid by the Board in accordance with the provisions of section 406(c) of the Act.

"Supplemental air carrier" shall mean any air carrier holding a certificate issued under section 401 (d) (3) of the Federal Aviation Act of 1958, as amended, or a special operating authorization issued under section 417 of the Federal Aviation Act, or operating authority issued pursuant to section 7 or 9 of Public Law 87-528.

[ER-328, 26 F.R. 4090, May 12, 1961 as amended by ER-440, 30 F.R. 9579, July 81, 1965]

Relating to a particular segment, operating division, or entire system of the carrier's operations.

§ 249.3 Preservation of records.

All records shall be preserved by each air carrier in accordance with the retention requirements respectively prescribed in §§ 249.8 to 249.13. Records not covered by the provisions of such sections may be microfilmed or destroyed at the discretion of the air carrier. Records which are used in lieu of those specified in any of such sections shall be preserved for the periods prescribed with respect to such specified records. Nothing contained in either this part or subchapter shall be construed to excuse noncompliance with requirements of any other governmental body, Federal or State, prescribing longer retention periods for any category of records. [ER-328, 26 F.R. 4090, May 12, 1961]

§ 249.4 Waivers of requirements of this subpart.

A waiver from any provision of this subpart may be made by the Board upon its own initiative or upon submission of a written request therefor by any air carrier or air carriers. Each request for waiver shall demonstrate that unusual circumstances warrant a departure from prescribed retention periods, procedures or techniques or that compliance with such prescribed requirements would impose an unreasonable burden upon the air carrier, and that the granting of the waiver would be in the public interest. [ER-440, 30 F.R. 9579, July 31, 1965]

§ 249.5 Accidental loss or destruction of records.

If, during the prescribed period of preservation, records shall become unavailable through loss, destruction, or otherwise, the air carrier shall promptly submit to the Board a statement listing, as far as may be determined, the records destroyed and describing the circumstances of accidental or other premature destruction. This statement shall be authenticated by an officer or some other responsible employee of the air carrier. [ER-328, 26 F.R. 4091, May 12, 1961 as amended by ER-440, 30 FR. 9579, July 31, 1965]

§ 249.6 Permissive destruction of records.

Upon the expiration of the period of preservation prescribed in §§ 249.8 to 249.13, records may be destroyed at the option of the air carrier. Provided,

Microfilms which are prepared in accordance with the requirements of this section may be substituted for original documents with respect to all categories of records where such substitution has been specifically authorized in this subpart. Microfilms may be substituted for those categories of records required to be retained under § 249.13 where, and to the extent that, such substitution is specifically authorized in the "Schedule of Records" therein contained: Provided, however, That all such substitution shall only be made when the records involved are not subject to the retention requirements of § 249.13(e). Microfilms may not be substituted for any category of records required to be retained for the relatively limited time periods prescribed in §§ 249.8 to 249.12 except to the extent that a waiver from this prohibition with respect to any particular category of records is obtained pursuant to § 249.4.

(a) Prior to photographing, the original documents shall be so prepared, arranged, classified, and indexed as readily to permit the subsequent location, examination, and reproduction of the photographs thereof. Any significant characteristic, feature, or other attribute of the records which photography would not clearly reflect (e.g., that the record is a copy or that certain figures thereon are red) shall be indicated on the records at the time of such arrangement, classification, and identification. When a number of records to be microfilmed have in common such a characteristic or attribute, an appropriate notation identifying the characteristic or attribute may be indicated in a statement at the beginning of the roll of film instead of on each individual record. Any notations on the face or reverse side of any document shall be photographed and identified as forming an integral part of the original document.

(b) Each roll of film shall include a microfilm of a certificate or certificates stating that the photographs are direct and facsimile reproductions of the original records and that they have been made in accordance with prescribed in

structions. Such certificate or certificates shall be executed by a person or persons having personal knowledge of the facts covered thereby.

(c) The photographic matter on each roll shall begin and end with a statement as to the nature and order of arrangement of the records reproduced, the name of the photographer, and the date. Rolls of film shall not be cut. Supplemental or retaken film, whether of misplaced or omitted documents or of portions of a film found to be spoiled or illegible or of other matter, shall be attached to the beginning of the roll, and in such event the aforementioned certificate or certificates shall cover also such supplemental or retaken film and shall state the reasons for taking such film.

(d) All film stock shall be of approved permanent-record microfilm type of 16-mm or 35-mm size, either perforated or unperforated, such as meets the minimum specifications of the National Bureau of Standards. (Such film stock may be identified by a manufacture's mark, a solid triangle after the word "safety" in the edge of the film.) The photographing and processing shall be such that reproductions on photographic paper can be made, similar in size without significant loss in clarity of detail, during the period prescribed in these rules for the retention of the records concerned. The air carrier shall be prepared to furnish, at its own expense, appropriate standard facilities for reading the microfilm.

(e) The microfilms shall be indexed and retained in such manner as will render them readily accessible and identifiable. They should be stored in such manner as to provide reasonable protection from hazards such as fire, flood, theft, etc. The films shall be cared for in such manner as to prevent damage such as cracking, breaking or splitting. [ER-328, 26 F.R. 4091, May 12, 1961 as amended by ER-440, 30 FR. 9579, July 81, 1965]

§ 249.8 Period of preservation of records by supplemental air carriers. Each supplemental air carrier shall retain its records in accordance with the provisions of this section. All records of the categories set forth in this section shall be preserved, for the duration of the retention periods set forth below, at the carrier's principal office.