(2) Where the association acts as a conduit to the Board of factual information gathered from the members, as distinguished from presentation of opinions or positions on issues; or

(3) Where the association represents certain named members at their request and a copy of a resolution authorizing such participation and signed by each such carrier is submitted to the Board: Provided, That upon motion of any interested person or upon its own initiative the Board may issue an order requiring the association to withdraw from the case on the ground of significant divergency of interest or position in respect of issues in the proceeding between the members represented and other members of the association.

or within the classification of "International Air Freight Forwarders" established by Part 297 of this chapter.

(b) "Direct air carrier" means any air carrier directly engaged in the operation of aircraft, pursuant to a certificate of public convenience and necessity issued under section 401 of the Act, or pursuant to exemption authority conferred under section 416(b) (other than air carriers under Part 298 of this chapter) or pursuant to interim operating authority under Public Law 86-661, dated July 14, 1960.

(c) "Interlocking relationship" means any of the relationships set forth in section 409 (a) of the Act which are set forth in Appendix I of this part.

(d) "Aircraft manufacturer" means any person engaged in the design and final fabrication of an integrated, major assembly or subassembly who:

(1) Makes civil aircraft, or engines and propellers for use therewith, or

(2) Makes any appliances (as that term is defined in section 101(11) of the Federal Aviation Act of 1958, as amended) for use aboard civil aircraft and whose sales of such appliances to any air carrier with whom it has an interlocking relationship exceed $100,000 at any time during a calendar year.

(e) "Affiliated" means a relationship wherein a person engaged in a phase of aeronautics or a common carrier directly or indirectly (1) is controlled by an air carrier; (2) controls an air carrier; (3) is under common control with an air carrier; or (4) where the power to exercise such control presently exists.

(f) "Commercial lending institution" means a bank or insurance company which is a person engaged in a phase of aeronautics solely by virtue of engaging in transactions involving the purchase of aircraft and lease thereof to air carriers. [ER-344, 26 F.R. 11891, Dec. 13, 1961, as amended by ER-455, 31 F.R. 5122, Mar. 30, 1966]

§ 287.2 Exemption of indirect air carriers with respect to certain interlocking relationships.

Subject to the other provisions of this part, indirect air carriers are hereby relieved from the provisions of section 409 (a) of the Act and Part 251 of this chapter with respect to any interlocking

relationship between any such air carrier and, respectively:

(a) Air taxi operators as defined in Part 298 of this chapter;

(b) Any indirect surface common carrier not affiliated directly or indirectly, with any direct surface common carrier except those covered by paragraph (c) of this section;

(c) Any direct surface common carrier who operates only intrastate routes or whose certificated interstate routes can be encompassed within the geographic area of any arbitrarily centered circle having a radius of 50 miles or less which can be drawn; and

(d) Any person engaged in a phase of aeronautics otherwise than as an air carrier, but not

(1) Foreign air carriers,

(2) Persons engaged in either private or common carriage by air for compensation or hire, who are not subject to Board regulation as statutory "air carriers," and

(3) Persons whose principal business is the holding of stock in, or control of, any other person engaged in any phase of aeronautics to whom the exemption provided by this paragraph does not apply.

(e) Any surface common carrier which is engaged only in pipeline or communications operations or in the transportation of passengers.

(f) Any company which is, directly or indirectly, affiliated with such air carriers, provided such affiliation has previously been expressly authorized by the Board by approval under section 408 of the Act, or by exemption therefrom, and is currently so authorized.

Provided, however, That no exemption conferred by this section shall extend to a relationship with respect to any common carrier or person engaged in a phase of aeronautics which is, directly or indirectly, affiliated with any air carrier unless such affiliation has previously been expressly authorized by the Board by approval under section 408 of the Act, or by exemption therefrom, and is currently so authorized.

[ER-344, 26 F.R. 11891, Dec. 13, 1961, as amended by ER-455, 31 F.R. 5122, Mar. 30, 1966]

§ 287.3 Exemption of direct air carriers with respect to certain interlocking relationships.

Subject to the other provisions of this part, direct air carriers are hereby relieved from the provisions of section 409 (a) of the Act and Part 251 of the Economic Regulations with respect to any interlocking relationship between any such air carrier and, respectively:

(a) Any surface common carrier which is engaged only in pipeline or communications operations;

(b) Any surface common carrier which is engaged only in local transit operations by providing street, railway or bus transportation (except for airport limousines) for passengers and has certificated or franchised routes which can be encompassed within the geographic area of any arbitrarily centered circle having a radius of 50 miles or less which can be drawn;

(c) Any surface common carrier which is engaged only in the transportation of cargo by motor vehicle, rail or water and which operates only intrastate routes or whose certificated interstate routes can be encompassed within the geographic area of any arbitrarily centered circle having a radius of 50 miles or less which can be drawn; and

(d) Any persons engaged in any phase of aeronautics otherwise than as an air carrier, except

(1) Foreign air carriers, travel or ticket agents,

(2) Aircraft manufacturers,

(3) Persons engaged in private or common carriage by air, for compensation or hire, who are not subject to Board regulation as statutory "air carriers", and persons whose principal business is the holding of stock in, or control of, any other person engaged in any phase of aeronautics to whom the exemption provided by this paragraph does not apply.

(e) Any company which is, directly or indirectly, affiliated with such air carrier, provided such affiliation has previously been expressly authorized by the Board by approval under section 408 of the Act, or by exemption therefrom, and is currently so authorized.

Provided, however, That no interlocking relationship shall be exempted under this paragraph if the transactions between the air carrier and the person engaged in any phase of aeronautics in

volved exceed $100,000 at any time during a calendar year, excluding transactions involving the furnishing of transportation service by an air carrier pursuant to tariff rates duly filled with the Board and published. For the purpose of determining whether the qualifying conditions specified in paragraphs (a), (b), and (c) of this section are met, both the operations of the surface carrier's own system and those of its subsidiaries or parent companies shall be considered. Furthermore, any direct air carrier, which has been exempted under the provisions of this paragraph, shall use reasonable diligence in determining when the $100,000 limit specified in § 287.1(d) or paragraph (d) of this section has been exceeded.

Provided, further, That no exemption conferred by this section shall extend to a relationship with respect to any common carrier or person engaged in a phase of aeronautics which is, directly or indirectly, affiliated with any air carrier unless such affiliation has previously been expressly authorized by the Board by approval under section 408 of the Act, or by exemption therefrom, and is currently so authorized.

(ER-344, 26 F.R. 11891, Dec. 13, 1961, as amended by ER-455, 31 F.R. 5122, Mar. 30, 1966]

§ 287.3a

Exemption of air carriers with respect to interlocking relationships with commercial lending institutions. In addition to the exemptions provided in §§ 287.2 and 287.3, and subject to the other provisions of this part, air carriers are hereby relieved from the provisions of section 409(a) of the Act and Part 251 of this chapter with respect to any interlocking relationship between any such air carrier and a commercial lending institution which does not lease aircraft to the air carrier: Provided, however, That such exemption shall expire on April 30, 1971, and shall extend only to the relationship involving a director of the air carrier who is not an officer or employee of the air carrier or a stockholder holding a controlling interest in the air carrier (or the representative or nominee of any such person) and who is not a member of the commercial lending institution: Provided further, That in order to qualify for an exemption under this section air carriers shall file

with the Bureau of Operating Rights annual reports on or before April 1 of each year showing for the previous calendar year (a) the names and addresses of all directors of the air carrier who were also directors, officers, or employees of commercial lending institutions; (b) the names and addresses of such commercial lending institutions; and (c) a description of all transactions between the air carrier (and/or its directors who were also officers or directors of commercial lending institutions) and such commercial lending institutions.

(Sec. 416, 72 Stat. 771, 49 U.S.C. 1386) [ER614, 35 F.R. 7110, May 6, 1970]

§ 287.4 Approval of certain interlocking relationships.

To the extent that any officer, director or member of an air carrier, or stockholder holding a controlling interest in an air carrier (or the representative or nominee of any such person) would, without prior approval of the Board, be in violation of any provision of section 409(a) of the Act, by reason of any interlocking relationship directly involving such air carrier which has been exempted under this part, such relationship is hereby approved for the duration of such exemption.

$287.7 Effect of exemption on existing interlocking relationships.

The exemption and approval granted by this Part shall supersede any approval (including any conditions thereto) previously granted by the Board in respect to a specific interlocking relationship when the following conditions obtain:

(a) The air carrier concerned has furnished written notice to the Board of its election to invoke the provisions of this section with respect to such interlocking relationship, and

(b) The circumstances surrounding such interlocking relationship fully meet the conditions specified in this part, and

(c) A period of 90 days after the date of such written notice has elapsed during which the Board has not notified the air carrier concerned, in writing, that it does not wish to make the exemption and approval conferred by this part retroactively effective with respect to such interlocking relationship.

APPENDIX I

SEC. 409. [72 Stat. 768, 49 U.S.C. 1379]. (a) It shall be unlawful, unless such relationship shall have been approved by order of the Board upon due showing, in the form and manner prescribed by the Board, that the public interest will not be adversely affected thereby

(1) For any air carrier to have and retain an officer or director who is an officer, director, or member, or who as a stockholder holds a controlling interest, in any other person who is a common carrier or is engaged in any phase of aeronautics.

(2) For any air carrier, knowingly and willfully, to have and retain an officer or director who has a representative or nominee who represents such officer or director as an officer, director, or member, or as a stockholder holding a controlling interest, in any other person who is a common carrier or is engaged in any phase of aeronautics.

(3) For any person who is an officer or director of an air carrier to hold the position of officer. director or member, or to be a stockholder holding a controlling interest, or to have a representative or nominee who represents such person as an officer, director, or member, or as a stockholder holding a controlling interest, in any other person who is a common carrier or is engaged in any phase of aeronautics.

(4) For any a carrier to have and retain an officer or director who is an officer, director, or member, or who as a stockholder holds a controlling interest, in any person whose principal business, in purpose or in fact, is the holding of stock in, or control

of, any other person engaged in any phase of aeronautics.

(5) For any air carrier, knowingly and willfully, to have and retain an officer or director who has a representative or nominee who represents such officer or director as an officer, director, or member, or as a stockholder holding a controlling interest, in any person whose principal business, in purpose or in fact, is the holding of stock in, or control of, any other person engaged in any phase of aeronautics.

(6) For any person who is an officer or director of an air carrier to hold the position of officer, director, or member, or to be a stockholder holding a controlling interest, or to have a representative or nominee who represents such person as an officer, director, or member, or as a stockholder holding a controlling interest, in any person whose principal business, in purpose or in fact, is the holding of stock in, or control of, any other person engaged in any phase of aeronautics.

"Air carrier" means a citizen of the United States holding economic operating authority to engage in air transportation as a direct air carrier with large aircraft, other than the authority conferred by this part.

"Category A transportation" means the transportation in scheduled service of individually ticketed passengers or individually waybilled cargo in foreign and overseas air transportation and in air transportation between the 48 contiguous States on the one hand and Hawaii or Alaska on the other hand, pursuant to contract with DoD.

"Category X transportation" means the transportation of persons or property inbound to the continental United States in fixed proportion to Category A cargo outbound from the continental United States pursuant to the option provisions of DoD contracts.

"Charter service" means air transportation in planeload lots of persons and/ or property pursuant to contracts with DOD, and includes Logair and Quicktrans services.

"CRAF" means Civil Reserve Air Fleet.

“DOD” means the Department of Defense.

"Large aircraft" means an aircraft of more than 12,500 pounds certificated maximum takeoff weight.

"Logair" means all-cargo charter service over interstate routes principally between Air Force installations pursuant to contracts with DOD.

"North Pacific routing" means a route between a point in the 48 contiguous States and Japan via Alaska.

"Quicktrans" means all-cargo charter service over interstate routes principally between Navy installations pursuant to contracts with DOD.

"Substitute service" means the performance by an air carrier of air transportation in planeload lots pursuant to an agreement with another air carrier to fulfill such other air carrier's contractual obligation to perform such air transportation for DoD.

"Suspension charge" means the minimum amount to be paid by DoD to an air carrier, pursuant to terms and conditions of the contract between the carrier and DoD, when a contract charter flight (other than a Logair or Quicktrans flight) is suspended by DoD.

All terms defined in the Act and not

otherwise defined in this part are used in the sense of their statutory definitions.

[ER-494, 32 F.R. 7908, June 1, 1967, as amended by ER-536, 33 F.R. 6651. May 1, 1968] § 288.2 Applicability.

This part applies to charter service, substitute service, and Category A and X transportation by air carriers that have contractually committed their CRAF aircraft to DoD.

[ER-536, 33 F.R. 6651, May 1, 1968] Subpart B-Exemption, Conditions, and Requirements

The exemption granted in § 288.5 extends only to transportation of persons and/or property under agreements with DoD for charter service and for Category A and X transportation for which minimum-rate conditions are prescribed in this part and to substitute service. This authority is in addition to all other authority to engage in air transportation issued by the Board to any air carrier and I will not be construed as in any manner limiting such other authority. [ER-536, 33 FR. 6651, May 1, 1968] § 288.7

tion.

Reasonable level of compensa

It shall be a condition on the exemption granted by this part that the level of compensation for transportation provided shall not be uneconomically low. In the absence of specific Board approval, the compensation for such services shall not be less than the following:

(a) For charter service in foreign and overseas transportation, in transportation between the 48 contiguous States on the one hand and Hawaii or Alaska on the other hand, and in transportation within Alaska, other than specified in paragraph (c) of this section:

(1) Performed with turbine-powered aircraft: