(c) Timeliness. The application must be filed and served in compliance with applicable provisions of law and the Board's regulations not later than 60 days before the expiration date of the outstanding temporary authorization to which it relates. In the case of certificates of public convenience and necessity issued under section 401, it must be filed not later than 180 days before the expiration date thereof: Provided, That (1) nothing herein shall supersede a requirement for earlier filing in any provision of law, the Board's Regulations, any Board orders or any temporary authorization; (2) where an authorization pursuant to section 401 of the Act terminates by its terms upon the happening of an event which could not be foreseen, a renewal application filed within 30 days from the time the carrier has notice that the event will occur, or has occurred, shall be deemed timely; and (3) applications for renewal by substantially equivalent certificate authority of fixed-term route authorizations granted by exemption and for interim extension of the exemption, submitted pursuant to §§ 302.909 and 399.18 of this chapter shall be filed not later than 90 days before the expiration of such exemption authorizations.

(d) Effect. In the case of authorizations which constitute licenses with reference to activities of a continuing nature within the meaning of section 9 (b) of the Administrative Procedure Act, the filing of an application complying in all respects with the requirements of paragraphs (a) through (c) of this section shall extend the authorization to which it relates as then outstanding in its entirety, together with all applicable terms, conditions and limitations, until the application has been finally determined by the Board. In the case of routes granted under section 401 of the Act, the duty to render adequate service continues to attach to every point as provided in the expired authorization which is extended pursuant to this provision. The date of final determination of the application shall be the date when the final order determining the application takes effect, or when the applicable period for filing of petitions for rehearing, reargument or reconsideration expires, or when a timely filed petition therefor is denied, whichever occurs latest.

(Secs. 401, 416(b), 72 Stat. 754, 771; 49 U.S.C. 1371, 1386) [SPR-7, 26 F.R. 11288, Nov. 30,

1961, as amended by SPR-9, 28 F.R. 3586, Apr. 12, 1963]

§ 377.11 Processing of defective renewal applications.

When the Board determines that a renewal application does not comply with the requirements of this part, or that it does not relate to a license with reference to an activity of a continuing nature, it will so notify the applicant. The applicant may amend his application to cure the deficiency as a matter of right at any time prior to the date when the application was due pursuant to § 377.10(c).

This part establishes the terms and conditions governing the furnishing of inclusive tours in interstate, overseas, and foreign air transportation by supplemental air carriers, certain foreign air carriers and tour operators, and in foreign air transportation by foreign tour operators. This part also relieves tour operators from various provisions of the Act and the Board's regulations for the purpose of enabling them to provide inclusive tours to members of the general public utilizing aircraft chartered from supplemental air carriers and certain foreign air carriers. It also sets forth the circumstances and conditions under which supplemental air carriers may charter to foreign tour operators, and contains a limited declination of exercise of jurisdiction over the latter. The provisions of this regulation shall not be construed as limiting any other authority to engage in air transportation issued by the Board. Nothing contained in this part shall be construed as repealing or amending any provisions of any of the Board's regulations, unless the context so requires.

§ 378.2 Definitions.

As used in this part, unless the context otherwise requires―

(a) "Inclusive tour charter" means the charter of the entire capacity of an aircraft or of less than the entire capacity of an aircraft (provided that the remaining capacity of the aircraft is under charter by a person or persons authorized to charter aircraft under § 208.6(c) of this chapter) by a tour operator or, with respect to tours which originate in a foreign country, by a foreign tour operator for the carriage by a supplemental air carrier of persons traveling in air transportation on inclusive tours.

(b) "Inclusive tour" means a roundtrip tour which combines air transportation pursuant to an inclusive tour charter and land services, and which meets all of the following requirements:

(1) A minimum of seven (7) days must elapse between departure and return;

(2) The land portion of the tour must provide overnight hotel accommodations at a minimum of three places other than the point of origin, such places to be no less than 50 air miles from each other;

(3) The tour price shall include, at a minimum, all hotel accommodations and necessary air or surface transportation between all places on the itinerary, including transportation to and from air and surface carrier terminals utilized at such places other than the point of origin;

(4) The charge to the passengers for the tour, as set forth in the tour prospectus, shall be not less than 130 percent of any "bulk inclusive tour" 1 fare charged by a certificated route air carrier or combination of such carriers (including charge for stopovers) or not less than 110 percent of any available fare or fares charged by a certificated route air carrier or combination of such carriers (including charge for stopovers) for individually ticketed service on the circle route beginning at the point of origin, to the various points where stopovers are made, and return to the point of origin: Provided, That the tour shall be subject to the terms and conditions which are applicable to such fare or fares, as set forth in the tariff of the certificated route carrier or carriers. For purposes of this provision, the term "available fare" includes promotional or discount fares, such as family fares, children's fares, excursion fares, fares applicable to special classes of persons, group fares, etc. Where similar promotional or discount fares are offered on both jet and propeller aircraft, the available fare shall be that charged for jet services. Where no regularly scheduled service is provided between the points involved, the available fare shall be based on the fares to the nearest point served by a certificated route air carrier; and

(5) An aircraft under charter to one tour operator or foreign tour operator may carry any number of tour groups, provided that if more than one group is carried, each of the groups shall consist of 40 or more tour participants.

(c) An "inclusive tour group" means an aggregate of persons who are assembled by a tour operator or a foreign tour operator for the purpose of participation as a single unit in an inclusive

1 As defined in § 378a.2 of this chapter.

I tour: Provided, however, That nothing contained herein shall preclude a tour =operator or a foreign tour operator from utilizing any unused space on an aircraft chartered by it for an inclusive tour, for the transportation, on a free or reducedrate basis, of such tour operator's or = foreign tour operator's employees, directors, and officers, and the parents and immediate families of such persons, subEject to the provisions of Part 223 of this chapter.

(d) "Tour operator" means any citizen of the United States, as defined in section 101(13) of the Federal Aviation -Act, 49 U.S.C. 1301(13) (other than a supplemental air carrier), authorized hereunder to engage in the formation of groups for transportation on inclusive tours.

(d-1) "Foreign tour operator" means any person who is not a U.S. citizen (other than a direct foreign air carrier):

(i) Who is engaged in the formation of groups for transportation on inclusive tours which originate in a foreign country and over whom the board by § 378.3a has declined to exercise its jurisdiction; and/or

(ii) Who is engaged in the formation of groups for transportation on inclusive tours which originate in the United States and who holds a permit issued pursuant to section 402 of the Act authorizing such transportation. “Foreign tour operator" as used in §§ 378.7, 378.10378.14, 378.16, 378.16a, 378.17, 378.18, and 378.20 is confined to the meaning set forth in this subparagraph.

(e) "Tour participant" means a member of the inclusive tour group.

(f) "Supplemental air carrier" means (1) a supplemental air carrier as defined in § 200.8 of this chapter (Board's economic regulations) and authorized under section 401 (d) (3) of the Act to perform inclusive tour charters, or (2) a foreign air carrier which holds a permit issued under section 402 of the Act authorizing it to perform inclusive tour charters, but only to the extent that such tours are to be performed subject to the provisions of this regulation.

(g) "Tour price" means the total amount of money paid by the tour participant to the tour operator for the inclusive tour.

[SPR-40, 35 F.R. 14613, Sept. 18, 1970, as amended by SPR-42, 36 F.R. 2505, Feb. 5, 1971; SPR-47, 36 F.R. 8726, May 12, 1971]

The Board declines to exercise its jurisdiction over foreign tour operators with respect to inclusive tours which originate in a foreign country. The Board reserves the right to exercise its jurisdiction over any foreign tour operator at any time if it finds that such action is in the public interest.

§ 378.4 Approval of certain interlocking relationships.

To the extent that any officer or director of a tour operator would be in violation of any of the provisions of section 409(a) (3) and (6) by participating in interlocking relationships covered by the exemption granted by § 378.3, such participation is hereby approved by the Board.

§ 378.5 Effect of exemption on antitrust laws.

The relief granted by §§ 378.3 and 378.4 from sections 408, 409, and 412 of the Act shall not constitute an order under such sections within the meaning of section 414 of the Act, and shall not confer any immunity or relief from operation of the "antitrust laws" or any other statute (except the Act) with respect to any transaction, interlocking relationship, or agreement otherwise within the purview of such sections.

§ 378.6 Suspension of exemption authority.

The Board reserves the power to suspend the exemption authority of any tour

operator, without hearing, if it finds that such action is necessary in order to protect the rights of the traveling public. § 378.7 Record retention.

(a) Every tour operator or foreign tour operator conducting a tour pursuant to this part shall retain for 2 years after completion of the tour or series of tours true copies of the following documents at its principal or general office in the United States:

(1) All receipts and statements of travel agents, and all other documents which evidence or reflect deposits made by each tour participant;

(2) A receipts and statements of travel agents, and all other documents which evidence or reflect commissions received by, paid to or deducted by travel agents in connection with the tour or series of tours;

(3) All statements, invoices, bills, and receipts from suppliers or furnishers of goods or services in connection with the tour or series of tours.

(b) Every tour operator or foreign tour operator shall make the documents listed in this section available in the United States upon request by an authorized representative of the Board and shall permit such representative to make such notes and copies thereof as he deems appropriate.

[SPR-47, 36 F.R. 8726, May 12, 1971]

Subpart B-Conditions and
Limitations

(a) No inclusive tour or series of tours shall be operated, nor shall any tour operator or foreign tour operator sell or offer to sell, solicit, or advertise such tour or tours, unless there is on file with the Board a Tour Prospectus satisfying the requirements of § 378.13. If a series of tours is to be operated for one tour operator or foreign tour operator pursuant to one charter contract, the Prospectus may cover the entire series, pro

6 Whoever, in any matter within the jurisdiction of any department or agency of the United States knowingly and willfully falsifies, conceals or covers up by any trick, scheme, or device a material fact, or makes any false, fictitious or fraudulent statements or representations, or makes or uses any false writing or document knowing the same to contain any false, fictitious, or fraudulent statement or entry, shall be fined not more than $10,000 or imprisoned not more than 5 years, or both. Title 18 U.S.C. § 1001.

vided the elapsed time between the commencement of the first tour and the departure of the last tour shall not exceed 1 year. The Tour Prospectus shall be filed at least 60 days before commencement of the tour or tours. Late filing of the Prospectus will not be permitted except for good cause shown.

(b) In the event of any change in the facts as reflected in the Prospectus, an amended Prospectus shall be filed no later than five (5) days following such change. Deviations from the Tour Prospectus, or the amended Prospectus, may not be made except where they are compelled by circumstances beyond the control of the carrier or tour operator and there is insufficient time to file an amended Prospectus.

[SPR 40, 35 F.R. 14613, Sept. 18, 1970, as amended by SPR-47, 36 F.R. 8726, May 12, 1971]

No tour operator or foreign tour operator shall make, give, or cause any undue or unreasonable preference or advantage to any particular person, port, locality, or description of traffic in air transportation in any respect whatsoever or subject any particular person, port, locality, or description of traffic in air transportation to any unjust discrimination or any undue or unreasonable prejudice or disadvantage in any respect whatsoever. [SPR-47, 36 F.R. 8726, May 12, 1971] § 378.12 Methods cf competition.

No tour operator or foreign tour operator shall engage in unfair or deceptive practices or unfair methods of competition in air transportation or the sale thereof. Advertising by tour operators or foreign tour operators of tour prices shall be limited to the total tour price without a breakdown into component parts, except that additional charges for optional services or facilities may be reflected. [SPR-47, 36 F.R. 8726, May 12, 1971] § 378.13 Tour prospectus.

The prospectus shall include copies of the charter contract, the contract between the tour operator or foreign tour operator and tour participants, the tour operator's or foreign tour operator's surety bond and, where applicable, a copy of the depository agreement with a bank as provided in § 378.16(b) (2), and shall contain the following information:

(a) Name and address of the tour operator or the foreign tour operator;

(b) The proposed date and time of each flight;

(c) Equipment to be used, including the aggregate number of each type of aircraft and capacity;

(d) The tour itinerary, including hotels (name and length of stay at each), and sightseeing or other arrangements, if any;

(e) The tour price per passenger; (f) The number of persons expected to participate in the tour;

(g) Charter price of the aircraft; (h) The individually ticketed air fare, computed as provided in § 378.2(b) (4);

(i) Samples of solicitation material proposed by the tour operator or foreign tour operator (all sales advertising and solicitation materials employed by the tour operator or foreign tour operator shall state the name of the supplemental air carrier to be utilized). [SPR-47, 36 F.R. 8726, May 12, 1971]

§ 378.14 Charter contract.

The charter contract between the tour operator or foreign tour operator and the supplemental carrier shall evidence a binding commitment on the part of the carrier to furnish the air transportation required for the tour or tours covered by the contract.

[SPR-47, 36 F.R. 8726, May 12, 1971]

§ 378.15 Tariffs to be filed for charter trips.

No supplemental air carrier shall perform any charter trips for inclusive tours unless such air carrier shall have on file with the Board a currently effective tariff showing all rates, fares, and charges for such charter trips and showing the rules, regulations, practices, and services in connection with such transportation. § 378.16 Surety bond.

(a) Except as provided in paragraph (b) of this section, the tour operator or foreign tour operator shall furnish a surety bond in one of the following amounts dependent upon the length of the tour: (1) For a tour of 2 weeks or less, a bond in an amount of not less than the charter price for the air transportation to be furnished in connection with such tour; (2) for a tour of more than 2 weeks but less than 4 weeks, a bond in an amount of not less than twice the charter price; and (3) for a tour of 4 weeks or more, a bond in an amount of not less than three times the charter price: Provided, however, That the liability of the

surety to any tour participant shall not exceed the tour price.

(b) The supplemental air carrier and the prospective tour operator or foreign tour operator may elect, in lieu of furnishing a surety bond as provided under paragraph (a) of this section, to comply with the requirements of subparagraphs (1) and (2) of this paragraph as follows:

(1) The tour operator or foreign tour operator shall furnish a surety bond in a minimum amount of $10,000 per flight up to a maximum amount of $200,000 for a series of 20 or more flights, for the protection of the tour participants, the bond to continue in effect until completion of the tour or series of tours: Provided, however, That the liability of the surety to any tour participant shall not exceed the tour price.

(2) The supplemental air carrier and tour operator or foreign tour operator shall enter into an agreement with a designated bank, the terms of which shall provide that all deposits by tour participants paid to tour operators or foreign tour operators and their retail travel agents shall be deposited with and maintained by the bank subject to the following conditions:

(i) On sales made to tour participants by tour operators or foreign tour operators the participant shall pay by check or money order payable to the bank; on sales made to tour participants by retail travel agents, the retail travel agent may deduct his commission and remit the balance to the designated bank by check or money order: Provided, That, the travel agent agrees in writing with the tour operator or foreign tour operator that if the tour is canceled, the travel agent shall remit to the bank the full amount of commission previously deducted or received within 10 days after receipt of notification of cancellation of the tour;

(ii) The bank shall pay the supplemental air carrier the charter price for the transportation not earlier than 60 days (including day of departure) prior to the scheduled day of departure of the originating or returning flight, upon certification of the departure date by the supplemental air carrier: Provided, That, in the case of a round-trip charter contract to be performed by one carrier, the total round-trip charter price shall be paid to the carrier not earlier than 60 days prior to the scheduled day of departure of the originating flight;