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ber of the air carrier's airwaybill under which the shipment is transported.

(3) Date of shipment.

(4) Weight of each individual shipment and the total weight of consolidated shipment.

(5) When a consolidated shipment consists of a combination of shipments to be transported to points in the United States and foreign points outside thereof, a clear statement that shipments with a foreign destination are included in the consolidated shipment. Subpart F-Authorization of Long

Haul Motor Carriers of General Commodities as International Air Freight Forwarders SOURCE: The provisions of this Subpart F contained in ER-594, 34 F.R. 19343, Dec. 6, 1969, unless otherwise noted. $ 297.60 Applicability of subpart.

This subpart sets forth the special rules applicable to the processing of applications of long-haul motor carriers, as defined in § 297.1(e), for authorization to operate in their own names as international air freight forwarders. The regulation does not govern requests of motor carriers for Board approval of control relationships created when they apply through subsidiaries or other affiliates for authorization as international air freight forwarders. Action on such applications for approval of control shall be governed by section 408 of the Act and by $ 399.20 of the Board's policy statements. $ 297.61 Applicability of other subparts.

Unless otherwise provided in this subpart, the provisions of Subparts A through E of this part shall be applicable to the processing of applications of longhaul motor carriers for authority to operate as international air freight forwarders, and to the conduct of such operations. & 297.62 Applicability of policy state

ment. The provisions of $399.20 of the Board's policy statements (14 CFR Part 399) shall be applicable to the processing of applications of long-haul motor carriers for authority under this subpart. § 297.63 Application for operating au

thorization. In addition to the requirements set

forth in § 297.32, a long-haul motor carrier applicant must show:

(a) A plan to conscientiously promote air cargo. This showing shall include, inter alia:

(1) A statement as to whether the long-haul motor carrier plans to solicit existing surface customers for air cargo and, if so, the extent of such plans;

(2) A traffic estimate showing what traffic is newly-generated or presently shipped by surface means;

(3) An estimate of what portion of the long-haul motor carrier's existing surface traffic is subject to diversion to air;

(4) An estimate of beyond-terminalarea traffic moving by surface transportation over the routes of the long-haul motor carrier or via interline agreements; and

(5) A statement of the proposed air cargo sales force and facilities.

(b) A statement of the long-haul motor carrier's authority from the Interstate Commerce Commission or other regulatory agency, including a description of surface transportation authorized and offered at the stations at which air forwarding operations are proposed.

(c) A statement of any other advantages which would result from approval of the application. § 297.64 Notice.

Notice of applications will be published in the FEDERAL REGISTER and in the Board's weekly publication of applications filed.' & 297.65 Objections.

Within thirty (30) days after publication of notice of application in the FEDERAL REGISTER, any interested person may file an objection thereto. The objection must set forth an adequate factual showing of

(a) The party's interest in the matter;

(b) His reasons for believing that the long-haul motor carrier or its affiliate will not promote air cargo; and

(c) Any other reasons why the application does not meet the licensing criteria of $ 297.66. If a hearing is requested, the objection must set forth the economic data and other facts which the party will offer to prove.

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50-031-71---24

Sec. 298.3 Classification. 298.4 Requests for statement of authority. 298.5 Separability.

Subpart B-Exemptions 298.11 Exemption authority. 298.12 Effect of exemption on anti-trust

laws. 298.13 Duration of exemption. 298.14 Approval of certain interlocking

relationships. Subpart - limitations on Exemptions 298.21 Scope of service authorized; geo

graphical, equipment and mail service limitations; insurance and

reporting requirements. 298.22 Operation of large aircraft. 298.23 Business name of air taxi operator. 298.24 Authority to carry mall in competi

tive markets.

8 297.66 Criteria for authorization.

The Board will approve the application if it appears that:

(a) The applicant is capable of performing the proposed air transportation and of conforming to the provisions of the Act and all rules and requirements thereunder;

(b) The applicant will conscientiously promote air cargo and will benefit air transportation, and

(c) The applicant's operations, alone or together with those of other similar carriers granted air forwarding authority, will not create a monopoly or monopolies and thereby restrain competition or jeopardize another air carrier, or otherwise be inconsistent with the public interest." $ 297.67 Conditions.

An authorization may be limited geographically or by classes of traffic. Additional conditions and restrictions may be imposed without hearing. $ 297.68 Duration.

Unless sooner suspended or revoked, an authorization will continue in effect until it expires by its terms or until this subpart is terminated or revoked. 8 297.69 Revocation or suspension.

The Board may institute proceedings to revoke the authorization of one or more long-haul motor carriers or a group of motor carriers if it has cause to believe that the continued operations of such carrier or carriers are contrary to the above-stated licensing criteria ($ 297.66). Pending completion of revocation proceedings, the Board may without hearing suspend or limit the authorization of such motor carrier or motor carriers in accordance with procedures specified by $ 297.43.

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

Subpart D-Liability Insurance Requirements 298.41 Basic requirements. 298.42 Minimum limits of lability. 298.43 Terms and conditions of insurance

coverage. 298.44 Authorized exclusions of liability. 298.45 Cancellation, withdrawal, modifica

tion, expiration or replacement of

insurance coverage. Subpart Registration for Exemption 298.50 Filing for registration by air tax

operators. 298.51 Processing by the Board. Subpart F-Reporting of Scheduled Operations by

Commuter Air Carriers 298.60 Report of scheduled air taxi opera

tions. 298.61 Filing of flight schedules-current

schedules and subsequent modifi

cations. 298.62 Extension of filing time. 298.63 Certification, 298.64 Reporting instructions. 298.65 Data processing. 298.66 Public disclosure of schedule T-1

data.

Subpart G-Waiver of Liability Limits Under the

Warsaw Convention 298.70 Waiver of liability limitations.

Subpart H_Violations 298.80 Enforcement.

PART 298-CLASSIFICATION AND

EXEMPTION OF AIR TAXI OPERA-
TORS

Subpart A-General
Sec.
298.1 Applicability of part.
298.2 Definitions.

AUTHORITY: The provisions of this part 298 issued under sections 204, 204(a), 403, 406, 407, 409, 411, 416, 901, 902, 72 Stat. 743, 753, 49 U.S.C. 1324; 72 Stat. 763 as amended by 76 Stat. 145, 80 Stat. 942, 49 U.S.C. 1376; 72 Stat. 766, 49 U.S.C. 1377; 72 Stat. 768, 49 U.S.C. 1379; 76 Stat. 769, 49 U.S.C. 1381; 72 Stat. 771, 49 U.S.C. 1386; 72 Stat. 783, as amended by 76 Stat. 149, 49 U.S.C. 1471; 72 Stat. 784, as

• Section 399.20 (Policy Statements) articulates decisional standards in this area.

amended by 75 Stat. 466, 76 Stat. 150, 76 Stat. 921, 49 U.S.C. 1472.

SOURCE: The provisions of this Part 298 contained in ER-574, 34 F.R. 7126, May 1, 1969, unless otherwise noted.

Subpart A-General 8 298.1 Applicability of part.

This part establishes a classification of air carriers known as “air taxi operators," provides certain exemptions from Title IV of the Federal Aviation Act of 1958, as amended, for such air carriers, and establishes rules and regulations applicable to their operations. This part applies to operations of air taxi operators in air transportation in all States, Territorie an possessions of the United States of America. $ 298.2 Definitions.

As used in this part:

“Act” means the Federal Aviation Act of 1958, as amended.

"Air taxi operator" means an air carrier coming within the classification of “air taxi operators" established by $ 298.3.

Air transportation" means interstate, overseas, or foreign air transportation or the transportation of mail by aircraft. This includes carriage by aircraft as a common carrier between places in the same State (a) through airspace outside that State (over other States or the District of Columbia or the open sea or foreign territory) or (b) where such carriage is part of the movement of the passengers or property carried, in interstate, overseas or foreign air commerce.20

Commuter air carrier" means an air taxi operator which (1) performs at least five round trips per week between two or more points and publishes flight schedules which specify the times, days of the week and places between which such flights are performed, or (2) transports mail by air pursuant to a current contract with the Post Office Department.

"Competitive market” means a pair of points between which an air carrier holding a certificate of public convenience and necessity pursuant to section 401(d) (1) or (2) of the Act has authority to serve by reason of such certificate, and such authority has not been suspended, or by reasor. of an exemption authorization issued pursuant to section 416(b) (1) of the Act.

"Large aircraft" means an aircraft whose maximum certificated takeoff weight is greater than 12,500 pounds.

"Maximum certificated takeoff weight" means the maximum takeoff weight authorized by the terms of the aircraft airworthiness certificate. (This is found in the airplane operating record or in the airplane flight manual which is incorporated by regulation into the airworthiness certificate.)

“Maximum passenger capacity" means the maximum passenger capacity listed in the applicable Federal Aviation Administration (FAA) type certificate data sheet (including supplemental type certificates).

“Noncompetitive market” means market which is not a “competitive market”, as defined in this section.

"Point" when used in connection with any territory or possession of the United States, or the States of Alaska and Hawaii, means any airport or place where aircraft may be landed or taken off, including the area within a 25-mile radius of such airport or place; when used in connection with the continental United States, except Alaska, it shall have the same meaning except be limited to the area within a 3-mile radius of such airport or place: Provided, That for the purposes of this part, West 30th Street Heliport and Pan Am Building Heliport, both located in New York City, shall be regarded as separate points. (ER-574, 34 F.R. 7126, May 1, 1969, as amended by ER-601, 34 F.R. 20421, Dec. 31, 1969)

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20 Section 401(a) of the Federal Aviation Act of 1958, 49 U.S.C. 1371, prohibits any person from engaging in "air transportation" except to the extent he is authorized to do so by the Board. Air transportation as deined in the Act (see section 101 (10) and (21), 49 U.S.C. 1301) refers to (1) the carriage of mail by aircraft, and (2) the carriage by aircraft of persons or property as a common carrier for compensation or hire. With respect to persons or property, the term "air transportation" includes "interstate," "overseas” and “foreign" air transportation. Operations wholly within the geographic limits of a single State are not considered "air transportation" if in those operations the carrier transports no more than a de minimis volume of traffic moving as part of a continuous journey to or from a point outside the State. For a further discussion of what constitutes air transportation, see the preamble to ER-574, pp. 10–11 (mimeo.), 34 F.R. 7124.

§ 298.3 Classification.

(a) There is hereby established a classification of air carriers, designated "air taxi operators” which engage in the direct air transportation of passengers and/or property, and/or in the transportation within the 48 contiguous States, Alaska' or Hawaii of mail by aircraft and which:

(1) Do not, directly or indirectly, utilize in air transportation large aircraft (other than turbojet aircraft authorized for use by air taxi operators pursuant to § 298.21);

(2) Do not hold a certificate of public convenience and necessity or other economic authority issued by the Board;

(3) Have and maintain in effect liability insurance coverage in compliance with the requirements set forth in Subpart D of this part; and

(4) File with the Board's Docket Section a signed counterpart of CAB Agreement 18900 in the form attached hereto as Appendix B (CAB Form 263), and a tariff embodying the provisions of the counterpart in the form attached hereto as Appendix A (CAB Form 298–B), if required by Subpart G of this part.“ Provided, however, That any authority granted in this part to engage in the transportation of mail is limited to the carriage of mail on a nonsubsidy basis; i.e., on a service mail rate to be paid entirely by the Postmaster General, and the air taxi operator shall not be entitled to any subsidy payment with respect to any operations conducted pursuant to any authority granted in this part.

(b) A person who does not observe the conditions set forth in paragraph (a) of this section shall not be an air taxi operator within the meaning of this part with respect to any operations conducted by him while such conditions are not being observed, and during such periods is not entitled to any of the exemptions set forth in this part. (ER-574, 34 F.R. 7126, May 1, 1969, as amended by ER-621, 35 F.R. 7695, May 19, 1970)

§ 298.4 Requests

for

statement of authority. In any instance where an air taxi operator is required by a foreign government to produce evidence of its authority to engage in foreign air transportation under the laws of the United States, the Secretary of the Board will, upon request, furnish the carrier with a written statement, outlining its general operating privileges under this part for presentation to the proper authorities of the foreign government. $ 298.5 Separability,

If any provision of this part or the application thereof to any air transportation, person, class of persons, or circumstances is held invalid, the remainder of the part and the application of such provision to other air transportation, persons, classes of persons, or circumstances shall not be affected thereby.

Subpart B-Exemptions & 298.11 Exemption authority.

Air taxi operators are exempt from the following provisions of Title IV of the Act:

(a) Subsection 401(a);

(b) Section 403, except that the requirements of that section shall apply to (1) tariffs for through rates, fares, and charges filed jointly by air taxi operators and certificated air carriers; and (2) tariffs which embody the terms of the Interim Agreement (CAB 18900), approved by Board Order E-23680, May 13, 1966, and any amendment or amendments to such agreement which may be approved by the Board and to which the air taxi operator becomes a party, filed by air taxi operators subject to Subpart G of this part, in the form attached hereto as Appendix A. With respect to (1) above, Part 221 of the Board's economic regulations (14 CFR Part 221) shall be applicable; with respect to (2) above, Part 221 of the Board's economic regulations shall be applicable, except to the extent that such regulations are inconsistent with the requirements herein.

(c) Subsection 404(a), except the requirements that air taxi operators shall provide safe service, equipment, and facilities in connection with air transportation; shall observe and enforce just and reasonable joint rates, fares, and charges, and just and reasonable classifications, rules, regulations, and prac

3 The authority of air taxis to carry mail in Alaska is limited to the markets where regular service may be provided under this part.

* CAB Forms 263 and 298–B are filed as part of the original document and can be obtained from the Publications Services Section, Civil Aeronautics Board, Washington, D.C. 20428.

tices as provided in tariffs filed jointly by $ 298.12 Effect of exemption on antiair taxi operators and certificated air

trust laws. carriers; and shall establish just, rea

The exemption granted in § 298.11 sonable, and equitable divisions of such

from sections 408, 409(a), and 412 of the joint rates, fares, and charges as between

Act, shall not constitute an order under air carriers participating therein which

such sections, within the meaning of secshall not unduly prefer or prejudice any tion 414 of the Act, and shall not confer of such participating air carriers;

any immunity or relief from operation of (d) Subsection 404 (b), except that the

the "antitrust laws,” or any other statute requirements of that subsection shall

(except the Federal Aviation Act of 1958, apply to through service provided pur

as amended) with respect to any transsuant to tariffs filed jointly by air taxi action, interlocking relationship, or operators and certificated air carriers; agreement otherwise within the pur(e) Subsection 405(b);

view of such sections. (f) Subsections 407 (b), (c), and (d); (g) Subsection 408(a); except that no

§ 298.13 Duration of exemption. exemption is granted hereby for any air The exemption from any provision of taxi operator to enter into any of the title IV of the Act provided by $ 298.11 transactions or relationships prohibited shall continue in effect only until such by subsection 408(a) with any person time as the Board shall find that enforcewho operates large aircraft for compen ment of such provision would be in the sation or hire, or who engages in air public interest or would no longer be a transportation from which the air taxi burden on air taxi operators: Provided, operator is excluded by the limitations That upon such a finding as to any air imposed by $ 298.21.

taxi operator or class of air taxi oper

ators, such exemption shall to that extent NOTE: The above exemption is applicable

terminate with respect to such operator to air taxi operations only. It does not relleve other persons subject to section 408(a) from

or class of operators: And provided furthe obligations of that section with respect

ther, That the authorizations to air taxi to any relationships they may have with re

operators to engage in the transportaspect to air taxi operators. For additional ex tion of mail by aircraft within the 48 emptions from section 408(a) applicable to

contiguous States, Alaska, and Hawaii air taxi operators, see Part 299 of the Board's

shall terminate on June 30, 1974. Economic Regulations.

(ER-589, 34 F.R. 15294, Oct. 1, 1969) (h) Subsection 409(a); except that no & 298.14 Approval of certain interlockexemption is granted hereby for any air ing relationships. taxi operator to enter into any of the To the extent that any officer or direcrelationships prohibited by subsection tor of an air taxi operator would be in 409(a) with any person who operates violation of any of the provisions of seclarge aircraft for compensation or hire,

tion 409(a) (3) and (6) by participating or who engages in air transportation

in interlocking relationships covered by from which the air taxi operator is ex

the exemption granted in § 298.11(h), cluded by the limitations imposed by

such participation is hereby approved by

the Board, subject, however, to the pro$ 298.21.

visions of $ 298.12. (i) Subsection 412(a): Provided, That air taxi operators shall not be relieved Subpart C-Limitations on Exemptions from filing with the Board a true copy, $ 298.21 Scope of service authorized; or, if oral, a true and complete memo geographical, equipment and mail randum of every contract or agreement service limitations, insurance and re(whether enforceable by provisions of

porting requirements. liquidated damages, penalties, bonds, or (a) General scope. Subject to the prootherwise) affecting air transportation, hibitions of paragraphs (b), (c), (d), between any air taxi operator and any (f), and (g) of this section, the exempperson (excluding air carriers) who op tion authority provided to air taxi opererates for compensation or hire, aircraft ators by this part shall extend to the dihaving a maximum takeoff weight of rect air transportation of persons, propmore than 12,500 pounds.

erty and mail (subject to the limitations (ER-574, 34 F.R. 7126, May 1, 1969, as amend imposed in $$ 298.3(a) and 298.13) ed by ER-621, 35 F.R. 7695, May 19, 1970) (1) in aircraft having a maximum take

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