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and 1381; and secs. 3 and 4 of the Adminis passengers holding confirmed reserved trative Procedure Act, 81 Stat. 54, 80 Stat. space shall be denied boarding on an 383; 5 U.S.C. 552 and 553.

oversold flight. Every carrier shall file SOURCE: The provisions of this Part 250 with the Board two copies of such rules contained in ER-503, 32 F.R. 11942, Aug. 18, and criteria, including that portion of its 1967, unless otherwise noted.

company manual instructing employees $ 250.1 Definitions.

on the order of boarding priorities in case

of an oversold flight. Such rules and criFor the purposes of this part:

teria shall not make, give or cause any "Airport” means the airport at which

undue or unreasonable preference or adthe direct or connecting flight, on which

vantage to any particular person or subthe passenger holds confirmed reserved

ject any particular person to any unjust space, is planned to arrive or some other

discrimination of any und le or unreaairport serving the same metropolitan

sonable prejudice or disadvantage in any area that is served by the former, pro

respect whatsoever. vided that transportation to the other airport is accepted (i.e., used) by the

§ 250.4 Filing of denied boarding compassenger.

pensation tariffs. "Carrier" means an air carrier, except Subject to the exceptions provided in a helicopter operator or an air carrier

$ 250.6, every carrier shall file tariffs conducting intra-Alaska service exclu providing compensation to a passenger sively, holding a certificate issued by the holding confirmed reserved space who Board pursuant to section 401(d) (1)

presents himself for carriage at the and (2) of the Act, authorizing the appropriate time and place, having comtransportation of persons.

plied fully with the carrier's requirements “Comparable air transportation" as to ticketing, check-in and reconfirmameans transportation provided by air tion procedures and being acceptable for carriers or foreign air carriers holding transportation under the carrier's tariff, certificates of public convenience and and the flight for which the passenger necessity or foreign permits issued by holds confirmed reserved space is unable the Board.

to accommodate the passenger and de"Confirmed reserve space" means space parts without him. on a specific date and on a specific flight

NOTE: See $ 221.38(a)(7) of this chapter. and class of service of a carrier which has been requested by a passenger and which $ 250.5 Amount of denied boarding the carrier or its agent has verified, by compensation. appropriate notation on the ticket, as

Subject to the exceptions provided in being reserved for the accommodation of § 250.6, the tariffs required by this part the passenger.

shall provide for compensation to be paid "Stopover” means a deliberate inter

a passenger holding confirmed reserved ruption of a journey by the passenger, space, as described in $ 250.4, at the scheduled to exceed 4 hours, at a point rate of 100 percent of the value of the between the place of departure and the first remaining flight coupon with a place of destination.

$25 minimum and a $200 maximum. “Value of the first remaining flight coupon" means the applicable oneway

$ 250.6 Exceptions to eligibility for defare, including any surcharge, less any

nied boarding compensation. applicable discount.

A passenger shall not be eligible for (ER-588, 34 F.R. 14282, Sept. 11, 1969]

denied boarding compensation if:

(a) The flight for which the passenger $ 250.2 Applicability.

holds confirmed reserved space is unable This part applies to all carriers as de.

to accommodate him because of: (1) fined in $ 250.1 and applies to flights or

Government requisition of space; or (2) portions of flights originating or termi substitution of equipment of lesser canating in the United States, its territories pacity when required by operational or possessions, but excludes flights origi and/or safety reasons; or nating and terminating within the State

(b) The carrier arranges for comparaof Alaska.

ble air transportation or for other trans§ 250.3 Priority rules.

portation accepted (i.e., used) by the

passenger, which, at the time either such Every carrier shall establish priority arrangement is made, is planned to arrules and criteria for determining which rive at the airport of the passenger's next

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stopover or, if none, at the airport of his destination earlier than, or not later than 2 hours after, the time the direct or connecting flight, on which confirmed reserved space is held, is planned to arrive in the case of interstate and overseas air transportation, or 4 hours after such time in the case of foreign air transportation; or

(c) The passenger is accommodated on the flight for which he holds confirmed reserved space, but is offered accommodations or is seated in a section of the aircraft other than that specified in his ticket at no extra charge: Provided, That a passenger seated in a section for which a lower fare is charged shall be entitled to an appropriate refund. (ER-503, 32 F.R. 11942, Aug. 18, 1967, as amended by ER-588, 34 F.R. 14282, Sept. 11, 1969) $ 250.7 Denied boarding compensation

as liquidated damages. The tariffs required by this part shall specify that the carrier will tender, on the day and place the denied boarding occurs, compensation in the amount specified above, which, if accepted by the passenger, shall constitute liquidated damages for all damages incurred by the passenger as a result of the carrier's failure to provide the passenger with confirmed reserved space. 8 250.8 Denied boarding compensation

drafts. Every carrier shall tender to a passenger eligible for denied boarding compensation, on the day and place the denied boarding occurs, a draft for the appropriate amount of compensation provided in $ 250.5, and the reverse side of such draft shall include a release stating that when the draft is endorsed by the passenger, the passenger thereby relieves the carrier from liability for all claims for damages which might accrue to the passenger as a result of the carrier's failure to provide the passenger with space on the flight in question, provided that the draft is endorsed and paid within 30 days of the date on which the denied boarding occurs: Provided, however, That where a carrier arranges, for the passenger's convenience, alternate means of transportation which departs before the draft can be prepared and tendered the passenger, tender shall be made by mail or other means within 24

hours after the time the denied boarding occurs. $ 250.9 Written explanation of denied

boarding compensation. Every carrier shall furnish passengers who are denied boarding on flights on which they hold confirmed reserved space, immediately after the denied boarding occurs, a written statement explaining the terms, conditions and limitations of the denied boarding compensation provided by this part. Each carrier shall, prior to the effective date of this rule, file three copies of the statement with the Bureau of Operating Rights, and the statement shall include the language hereinafter set forth; Provided, however, That where a carrier desires to use a statement of its own making which contains the substance of the following language, it may do so after it has submitted the statement to the Board and the Board has approved it.

Tariffs filed by this carrier with the Civil Aeronautics Board provide denied boarding compensation to passenger holding confirmed reserved space where the flight for which the passenger holds such space is unable to accommodate him and departs without him.

Passengers eligible for denied boarding compensation shall be compensated at the rate of 100 percent of the value of the first remaining flight coupon on their tickets with a $200 maximum and a $25 minimum. The carrier is required to tender to each such passenger, on the day and place the denied boarding occurs, a draft in the amount specified above which, 1 endorsed and paid within 30 days, shall relieve the carrier from liability for all claims for damages which might accrue to the passenger as a result of the carrier's fallure to provide the page senger with space on the flight in question. Where, however, the carrier arranges, for the passenger's convenience, alternate means of transportation which departs before tho draft can be prepared and tendered the passenger, tender will be made by mall or other means within 24 hours after the timo the denied boarding occurs.

In order to qualify for such compensation a passenger must have complied fully with the carrier's requirements as to ticketing, check-in, and reconiirmation procedures and be acceptable for transportation under the carrier's tariff. However, a passenger is not eligible for compensation if (a) the flight for which the passenger holds confirmed reserved space is unable to accommodate him because of Government requisition of space or substitution of equipment of lesser capacity for operational and/or safety reasons; (b) the carrier arranges for comparable air transpor

Form 251)." These reports may be on a system basis or limited to those stations accounting for 67 percent of the carrier's total enplanements, or the top 15 stations, whichever number is greater. The information in Item 4 shall be limited to the passengers enplaned at the reported stations and not the system total. Further, a list of the stations included should be appended to each report. These reports are to be submitted within 30 days after the month covered by the report. Those carriers with both domestic and international operations shall file separate reports for each. Reports covering international operations shall be withheld from public disclosure.

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

tation or for other transportation accepted (1.e., used) by the passenger, which, at the time either such arrangement is made, 18 planned to arrive at the airport? of the pas. senger's next stopover or, if none, at the airports of his destination earlier than, or not later than 2 hours after, the time the direct or connecting flight, on which confirmed reserved space is held, is planned to arrive in the case of interstate and overseas air transportation, or 4 hours after such time in the case of foreign air transportation; or (c) the passenger is accommodated on the flight for which he holds confirmed reserved space, but is offered accommodations or is seated in a section of the aircraft other than that specified in his ticket at no extra charge: Provided, That a passenger seated in a section for which a lower fare is charged shall be entitled to an appropriate refund. (ER-503, 32 F.R. 11942, Aug. 18, 1967, as amended by ER-588, 34 F.R. 14282, Sept. 11, 1969) $ 250.10 Reports of unaccommodated

passengers. Carriers shall file reports with the Bureau of Accounts and Statistics, in CAB Form 250 (Appendix A of this part), with respect to the applicable markets specified hereinafter, of the total number of revenue passengers boarded and the number of unaccommodated passengers in three categories: denied boarding on aircraft, downgrades and upgrades. The markets for which such reports shall be filed are those for which on-time reporting is filled in accordance with Part 234 of the Board's Economic Regulations and, in addition, New York-San Juan. Local service carriers shall, in addition to reports which may be required by Part 234, file such data for the five topranking markets of each. The reports shall cover the third month in each calendar quarter and shall be filed within 45 days after the month covered by the report. In addition, carriers shall file, on a monthly basis, the information requested in Appendix B of this part (CAB

PART 251-PROHIBITED INTERESTS;

INTERLOCKING RELATIONSHIPS Soc. 251.1 Application for approval. 251.2 Formal requirements of applications. 251.3 General provisions concerning con.

tents of applications. 251.4 Approval of system of amllated and

subsidiary companies. 251.5 Supplements to applications. 261.6 Uninterrupted tenure; no new ap

plications required. 261.7 Notice of changes in positions. 251.8 Extent of authorization to hold po

sition. 251.9 Revocation of authorization to hold

position. 251.10 Kalect of order. 251.11 Reports. 251.12 Prior applications. 251.18 Procedure governing disposition of

applications. Appendix I.

AUTHORITY: The provisions of this Part 251 Issued under secs. 204, 407, 72 Stat. 743, 766; 49 U.S.C. 1324, 1377.

SOURCE: The provisions of this part 251 contained in ER-146, 14 F.R. 3543, June 29, 1949, unless otherwise noted. § 251.1 Application for approval.

If approval by the Board is desired of an interlocking relationship which would otherwise be prohibited by section 409 (a) of the act (referred to in this part as an "interlocking relationship"), an application for such approval shall be filled with the Board by the individual (re

8 "Comparable air transportation" means transportation provided by air carriers or foreign air carriers holding certificates of public convenience and necessity or foreign permits issued by the Board.

7 “Airport” means the airport at which the direct or connecting flight, on which the passenger holds confirmed reserved space, 1.3 planned to arrive or some other airport serving the same metropolitan area that is served by the former: Provided, That transportation to the other airport is accepted (1.e., used) by the passenger.

* Ibid.

1 Appendices A and B Aled as part of the original document.

ferred to in this part as the "individual (3) A complete description of the in. applicant”) occupying or seeking to terlocking relationship for which apoccupy the interlocking relationship and proval is sought, as well as a description by each air carrier (hereinafter in this of any other interlocking relationship part referred to as the “air carrier ap occupied by the individual applicant plicant”) in which such individual holds which has been approved by the Board, or seeks to hold the position of officer or (This description shall include the date director. At their election such appli and manner of the individual applicant's cants may join in a single application. election or appointment to the position If separate applications are submitted or positions which he occupies or seeks it is desirable that all shall be filed at the to occupy, and shall state the name or same time. An application may incor names of the persons primarily reporate by specific reference current sponsible, directly or indirectly, for his information contained in another ap election or appointment. It shall also plication in the same matter or in any include a statement of his present or document then on file with the Board. contemplated duties in connection with

the interlocking relationship for which & 251.2 Formal requirements of appli

approval is sought and the approximate cations.

amount of time devoted or expected to Applications filed pursuant to this be devoted thereto); part shall conform generally to the

(4) The name of the person or peroutline set forth in $ 251.3 and to the re sons, if any, whom the individual appli. quirements of g 302.3 of this chapter, cant represents or will represent on the with the additional requirements that board of directors of each air carrier apeach individual verifying the applica

plicant, together with a statement as to tion shall include in his verification & any financial interest held by such perstatement that he has personally made son or persons in any air carrier, com. a careful investigation of the proposed

mon carrier, person engaged in any interlocking relationship and that the phase of aeronautics otherwise than as application includes all of the informa an air carrier, or person whose principal tion required by this part and that it business, in purpose or in fact, is the contains no misleading statement and holding of stock in, or control of any does not omit information which would other person engaged in any phase of cená to show that the public interest

aeronautics; would be adversely affected by the exist (5) The name and address of each ence of the proposed interlocking rela

business (including but not limited to tionship. If a joint application is filled

corporations, partnerships, trusts, etc.) it shall be verified by the individual ap

of which the individual applicant is an plicant and by a responsible officer of

oficer, director, partner, trustee, re each air-carrier applicant. However,

ceiver, manager, attorney, agent, or conany individual verifying any such joint

trolling stockholder or employee, the application may disclaim responsibility

general character of each such business for any statements therein except state

and a description of the individual apments concerning matters which are

plicant's financial interest therein; peculiarly within his knowledge. In any

(6) A complete description of any such case, however, every allegation

benefit and of the amount of, and basis contained in the application shall be

for, any money or thing of value (1) reverified by one or more qualified indi

ceived by the individual applicant during viduals.

the last year from each air carrier ap

plicant and from any person with whom 8 251.3 General provisions concerning the individual applicant has or seeks to contents of applications.

have an

interlocking relationship, (a) Each application (except one filed

whether for services, reimbursement of pursuant to § 251.4) shall, among other

expenses or otherwise, and (11) which things include the following informa

the applicant contemplates receiving tion:

from any such person during the con

tinuance of the interlocking relation(1) The full name, place of residence,

ship; and citizenship of the individual appli

(7) The names and titles of all ofcant;

ficers and directors of each air carrier (2) The name and address of the

applicant, and of each person with whom major business or professional activity the individual applicant has or seeks to of the individual applicant;

have an interlocking relationship;

(8) With respect to the individual ap plicant has or seeks to have an interlockplicant, a statement that the information ing relationship, together with a full contained in the most recent report filed statement as to any such transactions or by him with the Board pursuant to Part arrangements which it is contemplated 245 of this subchapter is the same as of may be entered into while such interthe date within 30 days of the filing of locking relationship continues. the application pursuant to this part, or (b) Each application shall state fully if such information has changed, a such further facts as the applicants restatement setting forth the details of spectively deem desirable in order to such changes; and with respect to each show that the public interest will not be officer and director of each air carrier adversely affected by the approval by applicant other than the individual ap the Board of the interlocking relationplicant, a statement that there is pres ship. ently on file with the Board a report pursuant to Part 245 of this subchapter for

§ 251.4 Approval of system of affiliated each such individual officer or director

and subsidiary companies. (If no such report is on file with refer

(a) In the event that an individual ence to any such officer or director, in occupies or seeks to occupy an intercluding the individual applicant, it shall locking relationship falling within the be filed concurrently with the applica purview of section 409(a) of the act tion pursuant to this part);

which involves only the holding by him (9) The names (1) of the largest of the position of officer or director in stockholders, not exceeding 20, who hold two or more companies within the same 1 percent or more of the voting capital system of affiliated and subsidiary comstock of any air carrier applicant and panies (as defined in paragraph (b) of (11) of the largest stockholders, not ex this section), an application for apceeding 20, who hold 1 percent or more proval of such relationships need not of the voting capital stock of any per comply with the requirements of $ 251.3 son with whom an interlocking relation (a) (11) but shall comply with all other ship is sought by such application to be requirements of that section. Such apapproved; together with the number of plication shall also include: shares of each class of stock held by each (1) Such information as is necessary of such stockholders and the percentage to disclose the fact that the companies which such shares bear to the total num. in which the individual applicant ocber of shares of the same class authorized cupies or seeks to occupy the interlocking and outstanding, (If all or any part of relationships are members of the syssuch shares are held for the account of tem of affiliated and subsidiary comany person other than the holder, the panies as defined in this section, and names of such persons shall be disclosed. (2) A statement that the individual If the applicant, after making all rea applicant does not occupy or seek to ocsonable efforts, is unable to obtain dis cupy any interlocking relationship fallclosure of such information with respect ing within the purview of section 409 (a) to any of the persons classified under of the act other than those within the subdivision (ii) of this subparagraph, same system of affiliated and subsidiary the application shall state specifically

companies. the efforts made to obtain such infor

(b) The individual applicant may inmation and the reasons why such efforts

clude in any application made by him were unsuccessful);

pursuant to this part a request for an (10) A description of the shares of

order authorizing him to hold generally,

in addition to the positions so specifically stock or other interests held by each air

requested, directorships or offices within carrier applicant or for its account in

the same system of afiliated and subpersons other than itself;

sidiary companies, and it shall not be (11) A full description of any profes

necessary to file a separate application sional, financial or other business trans with respect to each such relationship. actions or arrangements which have been Any applicant assuming a directorship entered into within 1 year prior to the or office pursuant to such authorization date of the filing of the application by shall, not later than 15 days after aseach air carrier applicant with the indi suming such directorship or oifice, make vidual applicant and by each air carrier or cause to be made a full and complete applicant or individual applicant with report thereof to the Board. As used in any person with whom the individual ap this part, the term "system of affiliated

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