n the services contribute. Charges roviding aircraft capacity including ges for depreciation and interest on capital related to the flight equipprovided shall be included in func5100 Flying Operations.

This account shall be subdivided llows by each air carrier group: ROUP II AND GROUP III AIR CARRIERS Airframe anies.

Repairs-Associated Com

cord here charges by associated coms for maintenance or repair of airframes pare parts related to airframes owned ased by the air carrier. Charges by lated companies for maintenance of mes provided under aircraft interge agreements shall not be included in ubaccount but in subaccount 42.7 AirInterchange Charges Associated

anies.

Aircraft Engine Repairs-Associated Companies.

cord here charges by associated coms for maintenance or repair of aircraft es including spare parts related to airengines owned or leased by the air r. Charges by associated companies maintenance of aircraft engines provided aircraft interchange agreements shall be included in this subaccount but in ccount 42.7 Aircraft Interchange ges-Associated Companies.

Other Flight Equipment RepairsIssociated Companies.

cord here charges by associated coms for maintenance or repair of flight жnent (including instruments) owned ased by the air carrier, other than aires, aircraft engines, and spare parts ed to airframes and aircraft engines. uments shall include all gauges, meters, uring devices, and indicators, together appurtenances thereto for installation rcraft and aircraft engines, which are tained separately from airframes and aft engines. Charges by associated comes for maintenance of flight equipment ded under aircraft interchange agreeis shall not be included in this subunt but in subaccount 42.7 Aircraft Inange Charges Associated Companies.

GROUP I AIR CARRIERS

Flight Equipment Repairs Associated Companies.

cord here charges by associated comes for maintenance or repair of flight pment of all types and classes owned or d by the air carrier. Charges by assod companies for maintenance of flight pment provided under aircraft interge agreements shall not be included in subaccount but in subaccount 42.7 Airt Interchange Charges Associated panies.

ALL AIR CARRIER GROUPS

42.7 Aircraft Interchange Charges-Associated Companies.

Record here charges by associated companies for providing aircraft capacity or services related to the direct operation or maintenance of flight equipment under aircraft interchange agreements.

42.8 General Interchange Service ChargesAssociated Companies.

Record here charges by associated companies for services provided the air carrier under aircraft interchange agreements, other than charges related to the direct operation or maintenance of flight equipment, including all charges for maintenance and repair of ground properties, as well as fees or charges for traffic solicitation and sales, or supervision and administration covered by the aircraft interchange agreements. Charges for depreciation or interest on capital related to flight equipment provided under interchange agreements shall not be included in this subaccount but in subaccount 42.7 Aircraft Interchange ChargesAssociated Companies.

42.9 Other Services-Associated Companies. a. Record here charges for services performed by associated companies not provided for elsewhere.

b. This subaccount shall include only those charges for services, not provided for in profit and loss accounts 37 to 41, inclusive, and subaccounts 42.1 to 42.8, inclusive, embracing a complete activity or service provided by associated companies, such as the operation of traffic offices or other facilities used jointly with the air carrier, which do not represent reimbursement of specific expense elements incurred expressly for the benefit of the air carrier. Reimbursement of expenses incurred expressly for the beneft of the air carrier shall be entered in appropriate personnel compensation or other objective expense accounts. The cost of services received in the repair of general ground properties shall be charged to subfunction 5200 Direct Maintenance; and services received in the repair of maintenance buildings and equipment shall be charged to subfunction 5300 Maintenance Burden.

service, such as the operating of jointly used ground facilities, shall be included in this account for each operating function to which the services contribute. Charges for providing aircraft capacity, including charges for depreciation and interest on the capital related to the flight equipment provided, shall be included in function 5100 Flying Operations.

(c) This account shall be subdivided by each air carrier group, as follows:

GROUP II AND GROUP III AIR CARRIERS 43.1 Airframe Repairs-Outside.

Record here charges for maintenance or repair of airframes and spare parts related to airframes owned or leased by the air carrier. Charges by others for maintenance of airframes provided under aircraft interchange agreements shall not be included in this subaccount but in subaccount 43.7 Aircraft Interchange Charges-Outside.

43.2 Aircraft Engine Repairs—Outside.

Record here charges for maintenance or repair of aircraft engines, including spare parts related to aircraft engines owned or leased by the air carrier. Charges by others for maintenance of aircraft engines provided under aircraft interchange agreements shall not be included in this subaccount but in subaccount 43.7 Aircraft Interchange Charges Outside.

43.3 Other Flight Equipment RepairsOutside.

Record here charges for maintenance or repair of flight equipment (including instruments) owned or leased by the air carrier, other than airframes, aircraft engines, and spare parts related to airframes and aircraft engines. Instruments shall include all gauges, meters, measuring devices, and indicators, together with appurtenances thereto for installation in aircraft and aircraft engines, which are maintained separately from airframes and aircraft engines. Charges by others for maintenance of flight equipment provided under aircraft interchange agreements shall not be included in this subaccount but in subaccount 43.7 Aircraft Interchange Charges-Outside.

GROUP I AIR CARRIERS

43.6 Flight Equipment Repairs-Outside. Record here charges for maintenance or repair of flight equipment of all types and classes owned or leased by the air carrier. Charges by others for maintenance of flight equipment provided under aircraft interchange agreements shall not be included in this subaccount but in subaccount 43.7 Aircraft Interchange Charges Outside.

ALL AIR CARRIER GROUPS 43.7 Aircraft Interchange Charges-Outside. Record here charges by other than associated companies for providing aircraft ca

pacity or services related to the operation or maintenance of flight equ under aircraft interchange agreement

48.8 General Interchange Service Ch Outside.

Record here charges by others, exc sociated companies, for services provid air carrier under aircraft interchange ments, other than charges related direct operation or maintenance of equipment, including all charges for tenance and repair of ground proper well as fees or charges for traffic solic and sales, or supervision and adminis covered by the aircraft interchange ments. Charges for depreciation or 1 on capital related to flight equipmen vided under interchange agreements sh be included in this subaccount but i account 43.7 Aircraft Interchange Cha Outside.

43.9 Other Services-Outside.

Record here charges for maintenan repair of ground property and equipm all types and classes and other charg services performed by others not pr for elsewhere. This subaccount shall ir only those charges for services not pro for elsewhere in profit and loss accou to 43 embracing a complete activity or s provided by other than associated comp such as the operation of traffic offic other facilities used jointly with the ai rier which do not represent reimburse of specific expense elements incurre pressly for the benefit of the air c Reimbursement of expenses incurred pressly for the benefit of the air carrier be entered in appropriate personnel co sation or other objective expense acc The cost of services received in the rep general ground properties shall be ch to subfunction 5200 Direct Maintenance services received in the repair of mainte buildings and equipment shall be charg subfunction 5300 Maintenance Burden 44 Rentals and Landing Fees.

(a) Record here rentals, fees charges incurred in the use of pro and equipment provided by others for the landing or storing of aircraf

(b) This account shall be subdi as follows by all air carrier groups 44.1 Rentals.

Record here charges for use of pro and equipment.

44.2 Landing Fees.

Record here aircraft landing charges fees.

45 Aircraft Fuels and Oils.

(a) Record here the cost of fuels oils issued from stocks of the air car or delivered directly by others, to air

Materials-Aircraft Engines.

cord here the cost of materials and supconsumed directly in maintenance of aft engines and spare parts related to aft engines.

Materials-Other Flight Equipment. cord here the cost of materials and supconsumed directly in maintenance of t equipment (including instruments) than airframes and aircraft engines, or parts related to airframes and aircraft nes. Instruments shall include all es, meters, measuring devices, and indi8, together with appurtenances thereto installation in aircraft and aircraft mes, which are maintained separately airframes and aircraft engines.

GROUP I AIR CARRIERS Materials Flight Equipment.

cord here the cost of materials and supconsumed directly in the maintenance ght equipment of all types and classes.

ALL AIR CARRIER GROUPS Materials Ground Property and Equipment.

cord here the cost of materials and supconsumed directly in the maintenance

of ground property and equipment of all types and classes. The cost of materials and supplies consumed in the repair of general ground properties shall be charged to subfunction 5200 Direct Maintenance and materials and supplies consumed in the repair of maintenance buildings and equipment shall be charged to subfunction 5300 Maintenance Burden.

49 Shop and Servicing Supplies.

Record here the cost of supplies and expendable small tools and equipment used in maintaining, servicing and cleaning property or equipment the cost of which cannot be directly assigned to a specific job or type of work.

50 Stationery, Printing and Office Supplies.

Record here the cost of stationery and forms used by the air carrier including the cost of engineering and shipping supplies.

51 Passenger Food Expense.

(a) Record here the cost of food and refreshments served passengers except food costs arising from interrupted trips. (b) If the air carrier prepares its own food, the initial cost and expenses incurred in the preparation thereof shall be accumulated in a clearly identified clearing account through which the cost of food shall be cleared to this account, to profit and loss account 36 Personnel Expenses, and to profit and loss account 10 Hotel, Restaurant and Food Service on bases which appropriately allocate the cost of food served passengers, the cost of food provided employees without charge and the cost of food sold.

53 Other Supplies.

Record here the cost of supplies consumed and not provided for otherwise. 54 Inventory Adjustments.

Record here adjustments for overage, shortage or shrinkage of inventories carried in balance sheet accounts 1310 Flight Equipment Expendable Parts and 1330 Miscellaneous Materials and Supplies. Adjustment of aircraft fuel and oil inventories shall not be included in this account but in profit and loss account 45 Aircraft Fuels and Oils. Gains or losses from retirements of materials and supplies shall not be recorded in this account but in profit and loss account 81 Capital Gains and Losses,

56 Insurance-Traffic Liability.

Record here the cost of purchased insurance and provisions for self-insurance covering liability for injuries, loss and damage to passengers and cargo.

57 Employee Benefits and Pensions.

Record here all costs for the benefit or protection of employees including all pension expenses whether for payments to or on behalf of retired employees or for accruals or annuity payments to provide for pensions; and all expenses for accident, sickness, hospital, and death benefits to employees or the cost of insurance or provisions for self-insurance to provide these benefits. Include, also, expenses incurred in medical, educational or recreational activities for the benefit of employees. Do not include vacation and sick leave pay, or salaries of doctors, nurses, trainees, or instructors, which shall be recorded in the regular salary accounts.

[ER 483, 32 F.R. 2811, Feb. 11, 1967] 58 Injuries, Loss and Damage.

Record here the remainder of gains, losses or costs resulting from accidents, casualties or mishandlings, after offsetting insurance recoveries, as accumulated until finally determined, in balance sheet account 1890 Other Deferred Charges. This account shall not include gains or losses from retirement of property and equipment resulting from casualties. Such gains or losses shall be recorded in appropriate capital gains or losses accounts.

59

Tariffs, Schedules and Timetal Record here the production an tribution cost, excluding compen of air carrier personnel, of all t operating schedules, timetables, lars and related quick reference c 60 Advertising.

Record here the cost, excluding pensation of air carrier personnel, space, direct mail, spot and other tising for the purpose of increasi travel, disseminating air travel inf tion and publicizing services offer the air carrier.

62 Other Promotional and Publici penses.

Record here the costs, excluding pensation of air carrier personn producing and distributing publici leases and other expenses, not ch able to profit and loss accounts 5 60, incurred for the purpose of pul ing or improving the public relatio the air carrier generally.

63 Interrupted Trips Expense.

Record here expenses allowed or for the care and serving of passe because of unscheduled interruptio passenger journeys. Transportatio funds and the cost of forwarding t by surface common carrier or othe as a result of such interruptions not be charged to this account but t appropriate operating revenue acc

64 Memberships.

Record here the cost of membe dues in trade associations, chambe commerce, or other business associa and organizations together with SI assessments related thereto.

65 Corporate and Fiscal Expenses

Record here corporate and fiscal and expenses of the air carrier an expenses in connection with exch and transfer of capital stock excl expenses in connection with ori issuance of capital stock.

66 Uncollectible Accounts.

Record here losses from uncolle accounts and reserve provisions adjustments thereto, for such k When reserves for uncollectible acc are established, losses as realized be charged against such reserves shall not be charged to this accou

72.7 Airworthiness Reserve Charges-Aircraft Engines (Credit)

Record here credits for aircraft engine overhaul costs incurred in the current period which have been charged against related airworthiness reserves.

73 Provisions for Obsolescence and Deterioration-Expendable Parts.

(a) Where reserves for loss in value of flight equipment expendable parts are established, provisions for accruals to such reserves shall be charged to this account and credited to balance sheet account 1311 Obsolescence and Deterioration Reserves-Expendable Parts in accordance with the provisions of that account.

(b) This account shall be subdivided as follows by all air carrier groups: 73.1 Current Provisions.

Record here provisions during the current period for losses in value of expendable parts. 73.2 Inventory Decline Credits.

Record here credits applicable to the current period for any adjustments for excess inventory reserve levels determined pursuant to section 6-1311.

74 Amortization.

(a) Record here amortization of deferred charges attaching to the air transportation services conducted by the air carrier which are not prepayments of recurrent expenses ordinarily requiring expenditures of working capital within one year.

(b) This account shall be subdivided as follows by all air carrier groups: 74.1 Developmental and Preoperating Expenses.

Record here amortization of the cost of projects carried in balance sheet account 1830 Developmental and Preoperating Costs as approved or directed by the Civil Aeronautics Board.

74.2 Other Intangibles.

Record here amortization of the cost of intangibles not provided for otherwise as approved or directed by the Civil Aeronautics Board.

75 Depreciation.

(a) Record here provisions for depreciation of property and equipment carried in balance sheet accounts 1601 through 1640, inclusive.

(b) This account shall be subdivided as follows: