(iii) "Nonrevenue aircraft miles flown" shall reflect the number of aircraft miles flown in nonrevenue cargo service during the semiannual period.

(iv) "Revenue aircraft departures performed" shall reflect the total number of takeoffs performed in revenue cargo service during the semiannual period.

(v) "Nonrevenue aircraft departures performed" shall reflect the total number of takeoffs performed in nonrevenue cargo service during the semiannual period.

(vi) "Revenue aircraft hours (airborne)" shall reflect the aircraft hours of flight (from takeoff to landing) performed in revenue cargo service.

(vii) "Nonrevenue aircraft hours (airborne)" shall reflect the aircraft hours of flight (from takeoff to landing) performed in nonrevenue cargo service.

In case of any violation of any 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 section 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 suspension or revocation of operating authority.

NOTE: The requirement to file an application in § 291.11, the recordkeeping requirement in § 291.23, and the reporting requirement in § 291.33 have been approved by the U.S. General Accounting Office under Number B-180226 (R0574).

PART 292-CLASSIFICATION EXEMPTION OF ALASKAN CARRIERS

Sec.

292.1 Classification.

Sec. 292.4 Off-route schedules; filing requirements and effect thereof.

AUTHORITY: Secs. 204, 401, 416, 72 Stat. 743; 49 U.S.C. 1324, 1371, 1386.

SOURCE: ER-410, 29 FR 9822, July 22, 1964, unless otherwise noted.

§ 292.1 Classification.

There is hereby established, within the meaning of section 416(a) of the Federal Aviation Act of 1958, a classification of air carriers which engage in air transportation (a) solely between points within the State of Alaska or (b) solely between points within the State of Alaska and between points within the State of Alaska and points in Canada, said classification to be designated as Alaskan air carriers.

§ 292.2 Charter trips and special services.

An Alaskan air carrier which holds a certificate of public convenience and necessity issued by the Board may make charter trips and render other special services between points on routes which it is authorized by its certificate to serve. Charter trips and other special services may also be rendered to or from any other point within or without Alaska: Provided, however, That such trips originate at or are destined to a point in Alaska which is named in the carrier's certificate or which is located within 25 miles of the airline course over the carrier's regular route and is actually being served by the carrier as an intermediate point pursuant to a schedule on file with the Board under section 405(b) of the Act: And provided further, That all such trips to and from points outside of Alaska are casual, occasional, or infrequent, and are not made in such manner as to result in establishing a regular or scheduled service.

§ 292.3

AND AIR

292.2 Charter trips and special services. 292.3 [Reserved]

[Reserved]

§ 292.4 Off-route schedules; filing requirements and effect thereof.

(a) An Alaskan air carrier which desires to include in schedules which it files under section 405(b) of the Act

80-038 0-81--28

any new off-route point, pursuant to a provision in its certificate of public convenience and necessity authorizing it to serve as an intermediate point any point not more than 25 miles off the airline course over its regular route, shall file such schedule not later than 30 days prior to the desired effective date. The schedule shall be accompanied by a statement setting out all applicable economic data bearing on the need for the proposed service: Provided, That the Board may permit the filing of such schedules within less than 30 days prior to the desired effective date upon a showing that the public interest will thereby be served.

(b) A flight schedule filed pursuant to this section may be operated according to its terms unless, at least five days prior to the effective date thereof, the Board notifies the carrier that inauguration of such service shall be deferred. Nothing herein contained shall alter the provision in an Alaskan air carrier's certificate whereby the Board may require the holder, without advance notice and without hearing, to suspend indefinitely, or for some other period, further operation of any such service which may have been inaugurated.

PART 293-OPERATIONS BY AIR TAXIS IN ALASKAN BUSH ROUTES PURSUANT ΤΟ SUBCONTRACT AGREEMENTS WITH CERTIFICATED AIR CARRIERS

Sec.

293.1 Applicability.

293.2 Procedural requirements. 293.3 Standards.

293.4 Reporting requirements.

293.5 Exemption from section 408(a)(5) of the Federal Aviation Act.

AUTHORITY: Secs. 204, 401, 407, 412, 416, 1001, Federal Aviation Act of 1958, as amended, 72 Stat. 743, 754 (as amended), 766, 770, 771 and 788 (49 U.S.C. 1324, 1371, 1377, 1382, 1386 and 1481).

SOURCE: ER-946, 41 FR 9306, Mar. 4, 1976, unless otherwise noted.

§ 293.1 Applicability.

This part sets forth the rules applicable to the processing of, and guidelines applicable to the approval of, sec

tion 412 subcontract agreements involving the operation of scheduled air services by an air taxi operator over Alaskan bush routes of a certificated air carrier.

§ 293.2 Procedural requirements.

An agreement submitted pursuant to this part shall be filed in accordance with the provisions of Subpart P of the Board's Rules of Practice in Economic Proceedings (14 CFR Part 302), and in accordance with the following additional provisions:

(a) A copy of every document subject to this part shall be filed with the Board's Alaska Regional Office.

(b) A copy of every document subject to this part shall be served upon the Alaska Transportation Commission.

(c) A copy of every document subject to this part, shall be served upon the chief executive of each city, town, or other unit of local government affected by the agreement.

(d) Contents of an application for prior Board approval of an agreement submitted pursuant to this part shall include economic and other factual data specifically bearing on each of the criteria for approval prescribed in § 293.3 of this part.

§ 293.3 Standards.

Subcontract agreements filed pursuant to this part shall comply with the following standards: 1

(a) The air taxi party to the agreement must (1) be in compliance with all provisions of Part 298 as an air taxi operator within the definitions of that Part, and (2) have authority from the State of Alaska, or have pending before the State of Alaska a duly filed application for authority, to operate as a common carrier in scheduled services over the route(s) specified in the subject agreement.

(b) The agreement shall be of sufficient duration to justify the necessary investment in equipment and facilities by the air taxi party. Sufficient dura

'The standards listed are not intended to be all-inclusive. The Board remains free to disapprove an agreement as contrary to the public interest even if the agreement complies with these standards.

tion shall be deemed to be at least one year but may be any period of greater duration as the Board may find the public interest to require.

(c) The agreement shall provide that the air taxi party to the agreement be guaranteed sufficient compensation as may be necessary to support the sustained operation of a satisfactory level of service over the routes described in the agreement. Such compensation shall be determined on the basis of best estimates of both parties to the agreement, as evaluated and modified by the Board, of the projected financial results of operations performed pursuant to the agreement during the fiscal year periods for which the agreement will be effective. A detailed description of the method of projected amount of compensation must be included in the application for Board approval of the agreement.

(d) The agreement shall provide that the certificated air carrier party will provide backup support, including extra equipment in emergency situations in which the air taxi party is unable to meet the demands of the subject routes.

(e) The traveling public affected by the agreement shall be informed by appropriate and conspicuous notice that the air taxi party is operating as an agent of the certificated air carrier party and that the certificated air carrier party is responsible for the services rendered.

§ 293.4 Reporting requirements.

An air taxi party to an agreement approved pursuant to this part shall file, in addition to any reports which may be required under Part 298, such other reports (including detailed data of operating income and expenses in subcontracted operations) as may be prescribed in the Board's order approving such agreement.

§ 293.5 Exemption from section 408(a)(5) of the Federal Aviation Act.

An agreement filed with and approved by the Board pursuant to this part shall be exempt from the requirements of Section 408(a)(5) of the Federal Aviation Act to the extent necessary for the implementation of such agreement.

For purposes of this part:

(a) "Air freight forwarder" means an indirect air carrier that is responsible for the transportation of property from the point of receipt to point of destination, and utilizes for the whole or any part of such transportation the services of a direct air carrier or its agent, or of another air freight forwarder.

(b) "Cooperative shippers association" means a bona fide association of shippers operating as an indirect air carrier on a nonprofit basis that undertakes to ship property by air for the account of such association or its members, and utilizes for the whole or any part of such transportation the services of a direct air carrier or its agent, or of an air freight forwarder.

(c) "Direct air carrier" means an air carrier or foreign air carrier directly engaged in the operation of aircraft under a certificate, regulation, order, or permit issued by the Board.

(d) "Indirect air carrier" means any citizen of the United States who undertakes indirectly to engage in air transportation of property.

§ 296.4 Joint loading.

Nothing in this part shall preclude joint loading, meaning the pooling of shipments and their delivery to a direct air carrier for transportation as

one shipment, under an agreement between two or more indirect air carriers or foreign indirect air carriers.

§ 296.5 Air freight forwarder as agent.

An air freight forwarder may act as agent of a shipper, or of a direct air carrier that has authorized such agency, if it expressly reserves the option to do so when the shipment is accepted. An air freight forwarder shall not act as the agent of any direct air carrier with respect to shipments accepted for forwarding.

§ 296.6 Cooperative shippers association as agent of shipper.

A cooperative shippers association may act as agent of a shipper, if it expressly reserves the option to do so when the shipment is accepted.

Subpart B-Relief and Exemption for Indirect Air Transportation of Property

§ 296.10 Relief and exemption from the Act.

(a) Indirect air carriers are hereby relieved from the following sections or subsections of the Act:

(1) Section 401 (Certification);

(2) Section 403 (Tariffs), except section 403(b)(2);

NOTE: Tariffs already on file with the Board may be amended as provided in Part 221, and may remain in effect as evidence of the rates and rules of that carrier until March 14, 1979. Notice of any changes in, or exceptions to, tariffs on file shall be filed with the Board, and placed with that tariff.

(3) Section 404(a) (Carrier's duty to provide service, etc.), except the requirement to provide safe service, equipment, and facilities in connection with such transporation;

(4) Section 405 (Postal Rules & Regulations);

(5) Section 406 (Mail Rates); (6) Subsection 407(b) (Disclosure of Stock Ownership);

(7) Subsection 407(c) (Disclosure of Stock Ownership by Officer or Director);

(8) Subsection 407(d) (Form of Accounts);

(9) Section 408 (Consolidation, Merger & Acquisition of Control);

(10) Section 409 (Interlocking Relationships); and

(11) Section 412 (Pooling and other Agreements).

(b) Direct air carriers, common carriers that are not air carriers, and persons substantially engaged in the business of aeronautics are exempted from section 408 of the Act with respect to any control transactions involving indirect air carriers.

(c) Any officer or director of an indirect air carrier is exempted from section 409 of the Act, to the extent of participation in interlocking relationships involving an indirect air carrier. (Sec. 204(a) of the Federal Aviation Act of 1958, as amended, 72 Stat. 743; 49 U.S.C. 1324. Reorganization Plan No. 3 of 1961, 75 Stat. 837, 26 FR 5989; 49 U.S.C. 1324 (note)) [ER-1110, 44 FR 14536, March 13, 1979]

§ 296.11 No relief from antitrust laws.

The relief and exemptions granted in § 296.10 do not constitute orders, within the meaning of section 414 of the Act, and do not confer any immunity or relief from the “antitrust” laws or any other statute except the Act. The relief and exemptions do not relieve any person from the preacquisition notification requirements of the Clayton Act, 15 U.S.C. 18a, which apply to certain transactions involving firms with annual rates or assets of $10 million or more.

Freight Forwarders and Cooperative Shippers Associations

§ 296.20 Filing for registration.

(a) Not later than 30 days before the start of operations as an indirect air carrier, every air freight forwarder and cooperative shippers association shall register with the Board, unless upon a showing of good cause, the Director, Bureau of Pricing and Domestic Aviation, allows registration at a later time.

(b) Registration shall consist of filing with the Board's Bureau of Pricing and Domestic Aviation, Special Authorities Division, two copies of completed CAB Form 296B (obtainable from the Board's Publications Service Division, Washington, D.C. 20428) and