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(5) Description of circumstances creating the emergency;

(6) Date of initial contact by the chartering carrier regarding the charter;

(7) Reasons why the trafic in question was not or could not be carried by other carriers certificated to serve the particular market. (ER-579, 34 F.R. 9552, June 18, 1969)

PROTECTION OF CUSTOMERS' DEPOSITS & 295.7 Escrow of cash or trust for pro

tection of customers' deposits. (a) Except as provided in § 295.8, no supplemental air carrier shall engage in air transportation unless it maintains, in accordance with the following standard, an escrow of cash or a trust as security for customers' deposits with the carrier for prepayment of air transportation.

(b) Whenever the gross amount of customers' deposits exceeds 25 percent of the carrier's net worth, as defined herein, computed as of the last day of each month, the carrier shall, on or before the 30th day of the succeeding month, place in escrow or in trust with a bank, cash in an amount at least equal to the amount by which such deposits exceed 25 percent of its net worth: Provided, That negotiable securities may be substituted for cash, but the market value thereof shall at all times be not less than the amount of cash for which they are substituted.

(c) The escrow agreement or the trust agreement between a bank and the air carrier shall not be effective until approved by the Board. Claims against the escrow or trust may be made only with respect to the nonperformance of air transportation. As used in this section, the term “bank” includes a bank, savings and loan association, or other financial institution insured by the Federal Deposit Insurance Corporation or the Federal Savings and Loan Insurance Corporation. (ER-650, 35 F.R. 15985, Oct. 10, 1970) $ 295.8 Performance bond in lieu of

escrow of cash or trust. The carrier may elect, in lieu of placing cash in escrow or creating a trust pursuant to $ 295.7, to file with the Board's Bureau of Operating Rights, in a form satisfactory to the Bureau, a performance bond which guarantees to the U.S.

Government the performance of air transportation pursuant to contracts entered into by such carrier, but to be performed, in whole or in part, after the date of execution of the bond. The amount of such bond shall be not less than the amount of cash that would be required to be placed in escrow or in trust by the carrier pursuant to $ 295.7. Claims under the bond may be made only with respect to the nonperformance of air transportation. [ER-650, 35 F.R. 15985, Oct. 10, 1970) § 295.9 No priority in payment of claims.

If an air carrier is required to maintain cash in escrow or in trust for the protection of customers' deposits pursuant to § 295.7, there shall be no priority in the payment of claims against such funds held in escrow or in trust or against the bonding company in the event that a performance bond is filed by the carrier in lieu of placing cash in escrow, or in trust, but such claims shall be processed and paid on a pro rata basis. (ER-650, 35 F.R. 15986, Oct. 10, 1970) Subpart A-Provisions Relating to

Pro Rata Charters 8 295.10 Applicability of this subpart.

This subpart sets forth the special rules applicable to pro rata charters. REQUIREMENTS RELATING TO AIR CARRIERS 8 295.11 Solicitation and formation of

a chartering group. (a) A carrier shall not engage, directly or indirectly, in any solicitation of individuals (through personal contact, advertising, or otherwise) as distinguished from the solicitation of an organization for a charter trip, except after a charter contract has been signed.

(b) A carrier shall not employ, directly or indirectly, any person for the purpose of organizing and assembling members of any organization, club, or other entity into a group to make the charter fight, except after a charter contract has been signed. 8 295.12 Pretrip notification.

Upon a charter filght date being reserved by the carrier or its agent, the carrier shall provide the prospective charterer with a copy of this part 295. The charter contract shall include a provision that the charterer, and any agent thereof, shall only act with regard to the charter in a manner consistent with this part and that the charterer shall within due time submit to the carrier the information specified in 8 295.35. The carrier shall also require that the charterer and any travel agent involved shall furnish it in due time for review before flight the information required in $$ 295.36 and 295.22, respectively. & 295.13 Tariffs to be on file.

(a) No air carrier shall perform any supplemental air transportation unless such air carrier shall have on file with the Board a currently effective tariff showing all rates, fares, and charges for the use of the entire capacity, or less than the entire capacity as defined in § 295.2 (b) (2), of one or more aircraft in such supplemental air transportation and showing all rules, regulations, practices, and services in connection with such supplemental air transportation, including eligibility requirements for charter groups not inconsistent with those established in this part.

(b) Every charter tariff shall contain the following provision: Payments for a charter flight made to any person to whom the carrier, directly or indirectly, has paid a commission or has agreed to pay a commission with respect to such flight, shall be considered payment to the carrier: Provided, however, That this requirement shall not be applicable to foreign-originated charters. (ER-561, 34 F.R. 3612, Feb. 28, 1969, as amended by ER-620, 35 F.R. 7298, May 9, 1970; ER-642 35 F.R. 13574, Aug. 26, 1970) 8 295.13a Written contracts with char

terers. (a) Every agreement to perform a charter trip, except charters for the Department of Defense, shall be in writing and signed by an authorized representative of the supplemental air carrier and the charterer prior to operation of a

charter flight: Provided, That where execution of a contract prior to commencement of flight is impracticable because the charter has been arranged on short notice, compliance with the provision hereof shall be effected within seven (7) days after commencement of the flight. The written agreement shall include, without limitation:

(1) Date and place of execution of the contract or agreement;

(2) Signature, printed or typed name of each signatory, and official position of each;

(3) Dates of flights and points involved;

(4) Type of aircraft and number of passenger seats available; and

(5) Rates, fares, and charges applicaable to the charter trip, including the charter price, live and ferry mileage charges, and layover and other nonflight charges.

(b) No term or condition of the charter contract shall, on its face, be incon. sistent with any provision of the carrier's published tariff. 8 295.14 Terms of service.

(a) The total charter price and other terms of service rendered pursuant to this part shall conform to those set forth in the applicable tariff on Ale with the Board and in force at the time of the respective charter flight, and the contract must be for the entire capacity, or less than the entire capacity as defined in $ 295.2(b) (2), of one or more aircraft. Where a carrier's charter charge computed according to a mileage tariff includes a charge for ferry mileage, the carrier shall refund to the charterer any sum charged for ferry mileage which is not in fact flown in the performance of the charter: Provided, That the carrier shall not charge the charterer for ferry mileage flown in addition to that stated in the contract unless such mileage is flown for the convenience of and at the express direction of the charterer.

(b) Insurance coverage shall be maintained in compliance with the insurance requirements of Part 208 of this subchapter.

(c) The air carrier shall assume, and publish as part of the rules and regulations of its tariffs, the following obligations without prejudice, and in addition,

1 Copies of this part are available by purchase from the Superintendent of Documents, Washington, D.C. 20402. Single copies will be furnished without charge on written request to the Publications Section, Civil Aeronautics Board, Washington, D.C. 20428.

to any other rights or remedies of passengers under applicable law:

(1) Substitute air transportation. (1) On all charter Aights, unless the air carrier causes an aircraft to finally enplane each passenger and commence the takeoff procedures at the airport of departure before the forty-eighth hour following the time scheduled for the departure of such fight, it shall provide substitute transportation in accordance with the provisions of this subparagraph.

(ii) As soon as the air carrier discovers, or should have discovered by the exercise of reasonable prudence and forethought. that the departure of any such charter flight will be delayed more than fortyeight hours, such air carrier shall arrange for and pay the costs of substitute air transportation for the charter group on another charter flight, operated by any other air carrier or foreign air carrier.

(iii) When neither the charter transportation contracted for nor substitute transportation has been performed before the expiration of forty-eight hours following the scheduled departure time of any such charter flight, the charterer, or his duly authorized agent, may arrange for substitute air transportation of the members of the charter group, at economy or tourist class fares, on individually ticketed fights and the chartered air carrier shall pay the costs of such air transportation to the substitute air carrier or foreign air carrier.

(iv) In determining the period of time during which the departure of a charter fight has been delayed within the purview of this subparagraph, periods of delay caused by the prohibition of flights from the airport of departure because of weather or other operational conditions shall be excluded if, and while, the air carrier had an airworthy aircraft which is capable of transporting the charter group in a condition of operational readiness posted at such airport.

(V) Air carriers may subcontract the performance of transatlantic passenger charter services which they have contracted to perform, only to air carriers authorized by the Board to perform such services.

(2) Incidental expenses. (1) On all charter flights bound from a point outside the continent where the charter originated to the point where it terminates, unless the air carrier causes an aircraft to finally enplane each passenger and commence the take-off procedures at the airport of departure before the sixth hour following the time scheduled for the departure of such flight, it shall pay incidental expenses in accordance with the provisions of this subparagraph. Such payments shall be made at the air. port of departure as soon as they become due to the charterer, or its duly authorized agent, for the account of each passenger, including infants and children traveling at reduced fares.

(ii) Such payments shall be made at the rate of $16.00 for each full twentyfour hour period of delay following the scheduled departure time. However, the sum of $8.00 shall be paid for each passenger delayed six hours following the scheduled departure time. Thereafter, during the succeeding 18 hours of delay, an additional sum of $8.00 shall be paid for each passenger delayed in installments of $4.00 for the first and second succeeding six-hour period of delay, or any fractional part thereof. If the delay continues beyond a period of 24 hours following the scheduled departure time, such payments shall be made in equal in. stallments of $4.00 for each further sixhour period of delay, or any fractional part thereof: Provided, however, That the air carrier may, at its option, discharge this obligation by providing free meals and lodging in lieu of making such payments. The obligation of the air carrier to pay incidental expenses or provide free meals and lodging shall cease when substitute air transportation is provided in accordance with the provisions of subparagraph (1) of this paragraph.

(d) Each and every contract for å transatlantic charter to be operated

. Although the requirements with respect to providing incidental expenses are made expressly applicable only to the return leg of a charter flight, the alr carriers are expected, in the case of delay in departure of the originating leg of a dight, to furnish such incidental expenses to charter passengers whose homes are not located within a res. sonable distance from the point of origination of the charter.


hereunder shall incorporate the provi- REQUIREMENTS RELATING TO TRAVEL sions of paragraphs (b) and (c) of this

AGENTS section concerning insurance, substitute

8 295.20 Prohibition against double transportation, and incidental expenses. (e) The carrier shall require full pay

compensation. ment of the total charter price or the

A travel agent may not receive a composting of a satisfactory bond for full

mission from both the direct air carrier payment prior to the commencement of

and the charterer for the same service. the air transportation.

§ 295.21 Prohibition against payments (f) In the case of round trip

or gratuities. charter, one-way passengers shall not be carried except that up to 5 percent of

A travel agent shall make no payments the charter group may be transported

nor extend gratuities of any kind, directone way in each direction. This provision

ly or indirectly, to any member of a shall not be construed as permitting

chartering organization whether in relaknowing participation in any plan where

tion to air transportation or otherwise. by each leg of a round trip is chartered

Nothing in this section shall restrict a separately in order to avoid the 5-percent

travel agent from offering to each memlimitation aforesaid. In the case of a

ber of the charter group such advertischarter contract calling for two or more

ing and good will items as are customarround trips, there shall be no intermin

ily extended to individually ticketed pasgling of passengers and each planeload sengers (e.g., a canvas traveling bag or & group, or less than planeload group as

money exchange computer). defined in § 295.2(b) (2), shall move as & 295.22 Statement of supporting ina unit in both directions.

formation. (ER-521, 32 F.R. 16251, Nov. 29, 1967, as

Travel agents shall execute, and furnamended by ER-561, 34 F.R. 3612, Feb. 28,

ish to air carriers, Section A of Part II of 1969)

the Statement of Supporting Informa$ 295.15 Agent's commission.

tion attached hereto and made a part The carrier shall not pay its agent a

hereof, at such time prior to flight as re

quired by the carrier to afford it due time commission or any other benefits, directly

for review thereof. or indirectly, in excess of five percent of the total charter price as set forth in the REQUIREMENTS RELATING TO THE carrier's charter tariff on file with the

CHARTERING ORGANIZATION Board, or more than the commission re

$ 295.30 Solicitation of charter particilated to charter flights paid to an agent

pants. by a carrier certificated to render regular service on the same route, whichever is

As the following terms are defined in greater. The carrier shall not pay any

$ 295.2, members of the charter group commission whatsoever to an agent if

may be solicited only from among the the agent receives a commission from the

bona fide members of an organization, charterer for the same service.

club or other entity, and their immediate

families, and may not be brought to§ 295.16 Prohibition against payments gether by means of a solicitation of the or gratuities.

general public. A carrier shall make no payments nor § 295.31 Passengers on charter flights. extend gratuities of any kind, directly Only bona fide members of the charor indirectly, to any member of a char

terer, and their immediate families (extering organization in relation either to

cept as provided in § 295.32), may parair transportation or land tours or other

ticipate as passengers on a charter filght. wise. Nothing in this section shall prer

The charterer must maintain a central clude a carrier from paying a commission

membership list, available for inspection (within the limits of $ 295.15) to a mem

by the carrier or board representative, ber of a chartering organization if such

which shows the date each person bemember is its agent, or restrict a carrier

came a member. Where the charterer is from offering to each member of the charter group such advertising and good

3 Where the charter is based on emplog. will items as are customarily extended to

ment in one entity or student status at a individually ticketed passengers (e.g., college, records of the corporation, agency, canvas traveling bag or a money ex- or college will sumce to meet this requirechange computer).



engaging round trip transportation, oneway passengers shall not participate in the charter flight except as provided in $ 295.14(f). When more than one round trip is contracted for, intermingling between flights or reforming of planeload or less than planeload groups shall not be permitted and each charter group shall move as a unit in both directions. (ER-561, 34 F.R. 3612, Feb. 28, 1969) $ 295.32 Participation of immediate

families in charter flights. The immediate family of any bona fide member of a charter organization may participate in a charter flight: Provided, however, That this section shall not apply to study group charters as defined herein (§ 295.2(m)). $ 295.33

Charter costs. (a) The costs of charter flights shall be prorated equally among all charter passengers and no charter passenger shall be allowed free transportation; except that (1) children under twelve years of age may be transported at a charge less than the equally prorated charge; (2) children under two years of age may be transported free of charge.

(b) The charterer shall not make charges to the charter participants which exceed the actual costs incurred in consummating the charter arrangements, nor include as a part of the assessment for the charter flight any charge for purposes

of charitable donations. All charges related to the charter flight arrangements collected from the charter participants which exceed the actual costs thereof shall be refunded to the participants in the same ratio as the charges were collected.

(c) Reasonable administrative costs of organizing the charter may be divided among the charter participants. Such costs may include a reasonable charge for compensation to members of the charter organization for actual labor and personal expenses incurred by them. Such charge shall not exceed $300 (or $500 where the charter participants number more than 80) per round-trip flight. Neither the organizers of the charter, nor any member of the chartering organization, may receive any gratuities or compensation, direct or indirect, from the carrier, the travel agent, or any organization which provides any service to the chartering organization whether of an air transportation nature or otherwise. Nothing in this section shall preclude &

member of a chartering organization who is the carrier's agent from receiving a commission from the carrier (within the limits of § 295.15), or prevent any member of the charter group from accepting such advertising and good will items as are customarily extended to individually ticketed passengers (e.g., a canvas traveling bag

a money exchange computer).

(d) If the total expenditures, including among other items compensation to members of the chartering organization, referred to in paragraph (c) of this section, but exclusive of expenses for air transportation or land tours, exceed $750 per round-trip flight, such expenditures shall be supported by properly authenticated vouchers. & 295.34 Statements of charges.

Any announcements or statements by the charterer to prospective charter participants of the anticipated individual charge for the charter shall clearly identify the portion of the charges to be separately paid for the air transportation, for the land tour, and for the administrative expenses of the charterer. & 295.35 Passenger manifests.

(a) Prior to each one-way or round. trip flight a manifest shall be filed by the charterer with the air carrier showing the names and addresses of the persons to be transported and specifying the relationship of each such person to the charterer (by designating opposite his name one of the three relationship categories hereinafter described). The manifest may include "stand-by" participants (by name, address and relationship to charterer).

(b) The relationship of a prospective passenger shall be classified under one of the following categories and specified on the passenger manifest as follows:

(1) A bona fide member of the chartering organization at the time the organization first gave notice to its members of firm charter plans and will have been a bona fide member of the chartering organization for at least six months prior to the starting flight date. Specify on the passenger manifest as “(1) member."

(2) The spouse, dependent child or parent of a bona fide member who lives in such member's household. Specify on the passenger manifest as "(2) spouse" or “(2) dependent child” or “(2) parent.” Also give name and address of

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