§ 298.66 Public disclosure of schedule T-1 data.

Data reported on schedule T-1 of CAB Form 298-C shall not be disclosed, prior to 12 months following the close of the calendar year to which the data relate, except as follows:

(1) To parties to any proceeding before the Board to the extent that such data are relevant and material to the issues in the proceeding upon a determination to this effect by the hearing examiner assigned to the case or by the Board. Any data to which access is granted pursuant to this section may be introduced into evidence, subject to the normal rules of admissibility of evidence.

(2) To agencies and other components of the U.S. Government. The Board will make other disclosure of the subject data, upon its own motion or upon appliIcation of any interested person, when the Board finds the public interest so requires. The Board may, from time to time, publish summary information compiled from the traffic data in a form which would not identify individual carrier data.

(Sec. 1104, 72 Stat. 797, 49 U.S.C. 1504) [ER605, 35 F.R. 3897, Feb. 28, 1970]

Subpart G-Waver of Liability Limits Under the Warsaw Convention

§ 298.70

Waiver of liability limitations. Every air taxi operator which:

(a) Is a "commuter air carrier" as defined in Subpart A of this part;

(b) Is a party to an interline agreement with a certificated air carrier or a foreign air carrier; or

(c) Is engaged in the carriage of passengers in air transportation between any point in the United States and any point outside thereof,

shall file with the Board's Docket Section a signed counterpart to Agreement CAB 18900, an agreement relating to liability limitations of the Warsaw Convention and Hague Protocol approved by Board Order E-23680 dated May 13, 1966, in the form attached hereto as Appendix B (CAB Form 263), and a signed counterpart of any amendment or amendments to such agreement which may be approved by the Board and to which the air taxi operator becomes a party. Such carriers shall file, in addition, a tariff with the Board's Tariffs Section embodying the provisions of the counterpart in the form attached hereto

as Appendix A (CAB Form 298-B). As used in this subpart, "interline agreement" refers to an agreement between an air taxi operator, on the one hand, and one or more certificated air carriers or foreign air carriers, on the other hand, whereby the air taxi operator is authorized to ticket its passengers over the system of the air carrier or foreign air carrier and/or the latter is authorized to ticket its passengers over the system of the air taxi operator.

[ER-621, 35 F.R. 7695, May 19, 1970]

NOTE: Special Economic Reg. ER-625, Amdt. 6, 35 F.R. 8927, June 10, 1970, provides as follows:

SECTION 1. The date for reregistration for all air taxi operators including commuter air carriers as defined in Part 298 (14 CFR Part 298) for the year 1970 shall be July 31, 1970.

SEC. 2. The effective date of Regulation ER-621 (Amendment No. 6 to Part 298), 35 F.R. 7695, titled "Waiver of Liability Limits under Warsaw Convention by Certain Air Taxi Oporators; Modification of Permissive Exclusionary Provision in Liability Insurance Policies of Air Taxi Operators," shall be July 31, 1970.

In case of any violation of the provisions of the Act, or this part, or any other rule, regulation, or order issued under the Act, the violator may be subject to a proceeding pursuant to sections 1002 and 1007 of the Act before the Board or a U.S. District Court, as the case may be, to compel compliance therewith; or to civil penalties pursuant to the provisions of section 901(a) of the Act; or, in the case of a willful violation, to criminal penalties pursuant to the provisions of section 902 (a) of the Act; or other lawful sanctions including revocation of operating authority.

[ER-574, 34 F.R. 7126, May 1, 1969. Redesignated by ER-621, 35 F.R. 7695, May 19, 1970]

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

Sec.

299.3 Filing requirements. 299.4 Termination of exemption. 299.5

Effect of exemption.

AUTHORITY: The provisions of this Part 299 issued under secs. 204, 416, 72 Stat. 743; 49 U.S.C. 1324, 1386.

§ 299.1 Definitions.

For the purposes of this part:

(a) "Aircraft" means any aircraft, together with spare parts, appurtenances and accessories maintained for installation or use therein.

(b) "Certificated Air Carrier" means any air carrier which holds a certificate of public convenience and necessity issued under section 401 of the Act, other than an air carrier which holds a certificate of public convenience and necessity for supplemental air service.

(c) "Stockholder" means a person who directly or beneficially owns 5 percent or more of the outstanding stock of a company.

(d) "Financial interest" means any relationship where (1) an air carrier holds directly or beneficially 5 percent or more of the outstanding debt, or 5 percent or more of any class of the capital stock, of the person whose aircraft are being purchased or leased or (2) a person whose aircraft are being purchased or leased holds directly or beneficially 5 percent or more of the outstanding debt, or 5 percent or more of any class of the capital stock, of the air carrier purchasing or leasing such person's aircraft. [ER-252, 24 F.R. 759, Feb. 4, 1959 as amended by ER-610, 35 F.R. 6323, Apr. 18, 1970] § 299.2 Exemption.

An air carrier which engages directly in the operation of aircraft in air transportation shall be exempt from section 408(a) (2) and (3) of the Federal Aviation Act of 1958,1 insofar as the provisions thereof relate to the purchase, lease, or lease with purchase option of aircraft from another air carrier or from any person engaged in any phase of aeronautics, if the underlying agreement has been entered into after arm's length bargaining and does not involve:

(a) A purchase, lease, or lease with purchase option by an air carrier:

(1) Which has an officer, director, proprietor, member, partner, employee or

1 This exemption does not release a party to an aircraft sale or lease agreement from conditions in any Board order prohibiting or limiting transactions involving such party.

stockholder who is, or has a representative or nominee who represents such person as, an officer, director, proprietor. member, owner, partner, or stockholder of the person whose aircraft are being purchased or leased;

(2) Which owns, directly or beneficially, any financial interest in the person whose aircraft are being purchased or leased;

(3) In which any financial interest is owned, directly or beneficially, by the person whose aircraft are being purchased or leased:

(4) Which controls, is controlled by. or is under the common control with, a person whose aircraft are being purchased or leased;

(5) Which has an officer or director who is an officer or director of a corporation or member of a firm which is a stockholder of the person whose aircraft are being purchased or leased; or

(6) Which is a party to an executory agreement with the person whose aircraft are being purchased or leased which will, or may upon consummation thereof, result in any of the relationships set forth in this paragraph.

(b) A purchase, lease, or lease with purchase option by an air carrier from a certificated air carrier of aircraft of more than

(1) $30 million in market value, or (2) 10 in number, or

(3) 20 percent of either the total number, total market value, or total lift capacity (pay load) of aircraft of a certificated air carrier,

either in a single transaction or in successive transactions within a 6-month period. For purposes of computing total aircraft in accordance with subparagraph (3) of this paragraph, all aircraft of the certificated air carrier shall be included except aircraft which are under lease to such carrier for 6 months or less, and aircraft which are owned by such carrier but are under lease to some other person for a period of more than 6 months.

(c) A lease with crew or an aircraft interchange agreement.

(d) An aircraft purchase or lease agreement wherein the payment to the person whose aircraft are being purchased or leased is directly related to the gross revenue or profits derived from the operation of the aircraft.

[ER-252, 24 F.R. 759, Feb. 4, 1959, as amended by ER-283, 24 F.R. 8720, Oct. 28, 1959; ER-418,

29 F.R. 13421, Sept. 29, 1964; ER-610, 35 F.R. 6323, Apr. 18, 1970]

§ 299.3 Filing requirements.

Two copies of the agreement to purchase, lease, or lease with option to purchase aircraft, or a memorandum of oral understanding where the transaction is consummated without written agreement, shall be filed with the Board within 15 days after the date of execution thereof,' together with a statement containing a certification of a duly authorized official of the air carrier in substantially the following form:

lief and so far as he could reasonably determine does not involve any of the relationships set forth in paragraph (a) (4) of § 299.2, and (3) does not involve any of the other prohibited relationships set forth in paragraph (a) of § 299.2.

Insofar as applicable, a statement should also be submitted containing a recital of the specific data relied upon by the air carrier in concluding that the transaction does not exceed any of the limitations of § 299.2(b).

[ER-252, 24 FR. 759, Feb. 4, 1959, as amended by ER-283, 24 F.R. 8720, Oct. 28, 1959] § 299.4 Termination of exemption.

The exemption granted by this part may be terminated by the Board, under appropriate procedures, with respect to any transaction that the Board finds to be inconsistent with the public interest. [ER-283, 24 FR. 8720, Oct. 28, 1959] § 299.5 Effect of exemption.

The exemption granted by this part shall not be deemed to constitute a determination for rate-making purposes of the reasonableness of the transaction or an "order made under sections 408, 409 and 412" within the meaning of section 414 of the act.

[ER-252, 24 F.R. 760, Feb. 4, 1959. Redesignated by ER-283, 24 F.R. 8720, Oct. 28, 1959]

PART 300-RULES OF CONDUCT IN BOARD PROCEEDINGS 1

1

Sec.

300.17 Disqualification of partners of Board members and employees. [Reserved]

300.18

300.19 800.20

Use of confidential information.
Violations.

AUTHORITY: The provisions of this Part 300 issued under secs. 202, 204, 1001, 72 Stat. 741; 49 U.S.C. 1322, 1324, 1481. §§ 300.10 to 800.20 also issued under 18 U.S.C. 201-218.

§ 300.0 Applicability.

The rules of conduct set forth in this part shall govern the conduct of parties and their representatives, and the relationships between the Board, its staff, and all other persons in all Board proceedings and matters, except as otherwise provided in any Board regulation. [PR-75, 28 F.R. 2707, Mar. 20, 1963]

§ 300.1 Judicial standards of practice.

In many respects the functions of the Board are similar to those of a court and parties to cases before it and those who represent such parties are expected

to conduct themselves with honor and dignity. By the same token, the members of the Board, and those of its employees who participate with the Board Members in the determination of cases upon a record, are expected to conduct themselves with the same fidelity to standards of propriety that characterize a court and its staff. The standing and effectiveness of the Board are in direct relation to its observance, that of its staff, and the parties and attorneys appearing before it, of the highest standards of judicial and professional ethics. [PR-10, 16 F.R. 2932, Apr. 4, 1951]

§ 300.2 Hearing cases; improper influ

ence.

It is essential in cases to be determined after notice and hearing and upon a record, or any other cases which the Board by order may designate, that the Board's judicial character be recognized and protected. Therefore, from the time of filing of an application or petition which can be granted by the Board only after notice and hearing, or, in case of other matters, from the time of notice by the Board that such matters shall be determined after notice and hearing and upon a record or that its Rules of Conduct shall be applicable thereto:

(a) A written or oral communication on any substantive or procedural issue in the case to a Member of the Board or its staff, or to the examiner in the case other than in compliance with the Board's Rules of Practice by any person, either in private or public life, shall be deemed a private communication on the merits. Such communications, unless otherwise provided for by law or published rule are hereby prohibited: Provided, That this prohibition shall not be deemed to apply to informal complaints filed with the Board or to communications with staff members of the Board who are in the course of preparing a case, or for the purpose of determining whether & complaint shall be docketed, or to the usual informal communications between counsel, including discussions to effectuate a stipulation, or to settlement discussion between parties and the Board's enforcement staff, or investigative activities, or to other communications which are deemed proper in proceedings in the Federal courts. Communications which merely make inquiry as to the status of a proceeding without discussing issues are not con

sidered communications on the merits. Any prohibited communication in writing received by the Board or its staf or the examiner in the case, shall be made public by placing it in the correspondence file of the case which is available for inspection and copying during business hours in the Board's Docket Section, but will not be considered by the Board or the examiner as part of the record for decision.

(b) Requests for expeditious treatment of a pending application will be considered communications on the merits. If made by a party or applicant for intervention, such a request shall be made by motion (§ 302.18). If made by any other interested person, such a request shall be made in accordance with the requirements in § 302.14. A request which is not made in accordance with the Board's rules shall be placed in the public correspondence file and will not be considered by the Board.

(c) It is improper that there be any private communication on the merits of any substantive or procedural issue in the case to a Member of the Board or to the examiner in the case by any members of the Board's staff who participate in the hearing as witnesses or as counsel.

(d) It is improper that there be any effort by any person interested in the case to sway the judgment of the Board by attempting to bring pressure or influence to bear upon the Members of the Board, its staff or the examiner in the case, or that such person or any member of the Board's staff or an examiner, directly or indirectly, give statements to the press or radio, by paid advertisements or otherwise, designed to influence the Board's judgment in the case.

(e) It is improper that any person solicit communications to the Board or any of its members or its staff or to the examiner in the case other than proper communications by parties or non-parties permitted under Rules 14 and 15 of the Board's rules of practice. Anybody soliciting the support of another person shall call such person's attention to the provisions of Rules 14 and 15.

[PR-43, 25 F.R. 12432, Dec. 6, 1960, as amended by PR-48, 26 F.R. 4282, May 17, 1961; 26 F.R. 4423, May 23, 1961, PR-75, 28 F.R. 2708, Mar. 20, 1963] § 300.3

Conciseness of presentation.

Persons practicing before the Board should endeavor to present their cases in concise form avoiding cumulative and

repetitious evidence, since the members of the Board participating in the decision of a case, after notice and hearing and upon a record, must familiarize themselves with the evidence in the record and with the arguments made on behalf of the parties orally and in written briefs, and must base their decision solely on the record.

(PR-10, 16 F.R. 2932, Apr. 4, 1951]

§ 300.4 Attorney-client relationship.

Persons practicing or appearing before the Board, whether or not members of the bar, should have due regard for the standards of professional conduct applicable to the lawyer-client relationship and to the relationship between a lawyer and a judicial tribunal.

(a) The nontechnical nature of the Board's procedure calls for special adherence, by practitioners, to scrupulous standards of fairness, candor, and consideration for the rights of others in the pleadings filed, evidence submitted, conduct of the hearing, and briefs and arguments made. In appearing for a client, the practitioner thereby vouches on his honor that in his opinion the client's cause is one proper for determination, and in presenting pleadings and offering evidence he represents that the same are not offered for unwarranted delay and that in his opinion the content thereof is not misleading. Nor should he indulge in offensive personalities, unseemly wrangling, or intemperate accusations or characterizations.

(b) A practitioner, moreover, should advise his client to observe the law according to his conscientious belief as to its permissible meaning and should use his best efforts to restrain his client from improprieties in dealing with the Board or its staff. If a client persists in such improprieties, the practitioner should terminate their relationship.

(PR-10, 16 F.R. 2932, Apr. 4, 1951. Redesignated by PR-75, 28 F.R. 2708, Mar. 20, 1963] §§ 300.5-300.9 [Reserved]

§ 300.10 Gifts and unusual hospitality.

(a) No person, otherwise than as provided by law for the proper discharge of official duty, shall directly or indirectly give, offer, or promise anything of value to any Board Member or employee for or because of any official act performed or to be performed by such Board Member or employee (18 U.S.C.201).

(b) It is improper for persons interested in the business of the Board to provide unusual hospitality to the Board or its staff.

[PR-75, 28 F.R. 2708, Mar. 20. 1963]

§ 300.11

Disqualification of Government officers and employees.

No officer or employee of the Federal Government, who is employed to serve more than 130 days in any period of 365 days, shall represent anyone, otherwise than in the proper discharge of his official duties, in any Board proceeding or matter in which the United States is a party or has a direct and substantial interest. (18 U.S.C. 205(2).) [PR-75, 28 F.R. 2708, Mar. 20, 1963] § 300.12 Practice of special Government employees permitted.

A special Government employee, who qualifies as such under the provisions of 18 U.S.C. 202(a), may participate in Board proceedings only to the extent and in the manner specified in 18 U.S.C. 205. [PR-75, 28 F.R. 2708, Mar. 20, 1963] § 300.13 Permanent disqualification of former Board Members and em. ployees in matters in which they personally participated.

No former Board Member or employee, including a special Board employee, shall act as agent or attorney before the Board for anyone other than the United States in connection with any proceeding, application, request for a ruling or other determination, contract, claim, controversy, charge, accusation, or other particular matter involving a specific party or parties in which the United States is a party or has a direct and substantial interest and in which he participated personally and substantially through decision, approval, disapproval, recommendation, rendering of advice, investigation, or otherwise as a Board Member or employee. (18 U.S.C. 207(a).) [PR-115, 35 F.R. 18193, Nov. 28, 1970] § 300.14 Temporary disqualification of former Board Members and employees in matters formerly under their official responsibility.

Within 1 year after termination of employment with the Board, no former Board Member or employee, including a special Board employee, shall appear personally before the Board on behalf of any person other than the United States in any Board proceeding or mat