the above authorized service in air nsportation, or holding out to the blic expressly or by course of conduct it it renders such service, regularly with a reasonable degree of reguity. Air taxi operators may also nsport over postal routes Nos. 78150 d 78151 or such other designation as y be assigned thereto, and over postal ites designated by the Postmaster neral as "gratuitous routes", such il as may be tendered by the Postster of Alaska for transportation over ch routes: Provided, That the forego; restrictions on frequency of service air transportation shall not apply to è carriage of such mail.

(d) Special limitation. No service by licopter, STOL or VTOL aircraft shall offered or performed by an air taxi erator between any two points beeen which scheduled helicopter, STOL VTOL aircraft service is provided by holder of a certificate of public connience and necessity authorizing such 'vice.

NOTE: Service shall be deemed to be reguwithin the meaning of this section uns it is of such infrequency as to preclude implication of uniform pattern or normal sistency of operations between, or withsuch designated points.

(e) Regular air taxi service in Hawaii. r taxi operators may provide service a regular and/or frequent basis in waii (1) in tourist sightseeing service defined in this part, and (2) in other transportation: Provided, That the thorization contained in this subparaaph (2) is conditioned upon the air xi operator's filing with the Board thin 15 days after each semiannual riod terminating on June 30 and Dember 31 of each year a report setting rth for the applicable period (i) all irs of airports or places between which gular or frequent service was operated; ) the number of one-way trips opered for each pair of airports or places; d (iii) the number of one-way pasngers carried for each pair of airports places. The data required by the ove proviso may be submitted in such itten form as the carrier may choose on CAB Form 298 which the Board will ovide upon request.14 This report all be addressed to the Civil Aeronau

4 Available from Publications Section, vil Aeronautics Board, Washington, D.C., 128.

tics Board, Washington, D.C. 20428, Attention: Director, Bureau of Accounts and Statistics.

(f) Limitations on carriage of mail within the 48 contiguous States and Hawaii. Within the 48 contiguous States and Hawaii, an air taxi operator shall not be authorized to carry mail between any pair of points (1) when there is no final mail rate, or agreed-upon mail rate filed pursuant to § 298.24 (e) for such carriage; (2) when an air carrier holds a certificate of public convenience and necessity pursuant to section 401(d) (1) or (2) of the Act which authorizes service between such pair of points and such authority has not been suspended; or (3) when 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 between such pair of points by reason of an exemption authorization issued pursuant to section 416 (b) (1) of the Act: Provided, however, That with respect to a market which a certificated helicopter carrier is authorized to serve under an area exemption order, an air taxi operator will be prohibited from carrying mail therein only if there is an approved flight pattern with respect to such market under Part 376 of this chapter (Board's special regulations): Provided further, That this subsection shall not preclude an air taxi operator from carrying mail between any pair of points regarding which there is in effect a notice of intent to use air taxi mail service, as provided in § 298.24. The rules applicable to final mail rate proceedings set forth in Part 302 of this chapter shall govern the procedure for establishing a final mail rate of an air taxi operator for purposes of this part. (See §§ 302.300 through 302.321, excluding § 302.310 of this chapter.)

(g) Prohibition of services not covered by insurance. An air taxi operator is prohibited from providing air transportation, or holding out to the public expressly or by course of conduct, that it provides any air transportation for which there is not in effect liability insurance which complies with the requirements of Subpart D of this part and which covers such transportation.

(h) Interim prohibition of certain character services not covered by insurance. Until the effective date of paragraph (g) of this section, an air taxi operator is prohibited from providing air transportation, or holding out to the public expressly or by course of conduct, that

it provides any air transportation in turbojet aircraft over 12,500 pounds certificated takeoff weight under the authority of this section for which there is not in effect

(1) Liability insurance which complies with the requirements of Subpart D of this part as set forth in ER-548, or (2) Insurance which meets the requirements of §§ 208.11-208.13 of the Board's economic regulations of this chapter,

and which covers such transportation.

(i) Filing of reports by operators of turbojet aircraft. Air taxi operators which engage in air transportation with turbojet aircraft whose maximum certificated takeoff weight is over 12,500 pounds shall file with the Board's Bureau of Accounts and Statistics, not later than 15 days after the end of each calendar quarter, a report setting forth the points between which each charter flight performed with such aircraft is operated during such quarter and, with respect to each flight, the number of passengers and/or pounds of cargo transported, the charter price, and the model aircraft used.

(Sec. 407, 72 Stat. 766, 49 U.S.C. 1377; sec. 406, 72 Stat. 763, 49 U.S.C. 1371, 1376) [ER317, 25 F.R. 12910, Dec. 16, 1960, as amended by ER-438, 30 F.R. 9205, July 23, 1965; ER448, 30 F.R. 14044, Nov. 6, 1965; ER-481, 32 F.R. 490, Jan. 18, 1967; ER-514, 32 F.R. 14321, Oct. 17, 1967; ER-549, 33 F.R. 18234, Dec. 7, 1968]

§ 298.22 Operation of large aircraft.

(a) Prohibition of operation of large aircraft in air transportation. Nothing in this part shall be construed as authorizing the operation of aircraft having a maximum takeoff weight of more than 12,500 pounds by air taxi operators in air transportation other than turbojet aircraft authorized for use by air taxi operators pursuant to § 298.21.

(b) Reporting of interest in large aircraft. Every air taxi operator shall report to the Board any proprietary interest, direct or indirect, in any large aircraft or any enterprise operating large aircraft. Such reports shall be filed in duplicate within 30 days of the effective date of this part and thereafter within 5 days of acquisition of such interests. They shall be addressed to the Civil Aeronautics Board, Washington, D.C., 20428, attention of the Chief, Routes and Agreements Division, Bureau of Economic Regulation.

(c) Reporting of operations with lar aircraft. Any air taxi operator whi operates or intends to operate large af craft for compensation or hire shall with the Board a description of method or proposed method of oper tions and state why such operations believed not to constitute air transpor tation. Such reports shall state, amon other pertinent matters, whether Sta lines or the boundaries of the Unite States will be crossed; the ultimate orig and destination (not only the places b tween which carriage is provided) of persons or property carried; and the pe sons with whom contracts for transp tation have been made or are expecte to be made. In case operations not fal ing within the description on file wil the Board are to be undertaken, a reps containing the same data shall be fil within 3 days after the particulars such operations have been decided upo These reports shall be submitted in di plicate, by airmail if mailed more th 200 miles from Washington, D.C., at dressed to the Civil Aeronautics Boat Washington, D.C., 20428, attention of Chief, Routes and Agreements Divisie Bureau of Economic Regulation.

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

(49 U.S.C. 1371) [ER-317, 25 F.R. 129 Dec. 16, 1960, as amended by ER-438, 30 F 9205, July 31, 1965; ER-549, 33 F.R. 182 Dec. 7, 1968]

(a) It shall be an express conditio upon the exercise of the privileges here granted and the operating authorization issued hereunder, that any air taxi ope ator, in holding out to the public an in performing air transportation ser ices, shall do so only in a name or name in which its air carrier operating certi cate is issued pursuant to section 604 the Act by the Administrator of Federal Aviation Agency: Provided, Th the Board may require an air taxi oper tor to change such name or names whe they appear contrary to the publ interest.

(b) Slogans shall not be considere names for the purposes of this section and their use is not restricted hereby.

(c) Neither the provisions of this se tion nor the grant of a permission here under shall be deemed to constitute

1g for purposes other than for this on, or to effect a waiver of, or exion from any provisions of the Act, rders, rules or regulations issued under.

1.24 Authority to carry mail in competitive markets.

General scope. An air taxi operanay carry mail between a pair of is named in a notice of intent to use axi mail service which is effective lant to this section. Such a notice be filed only by the Post Office Denent and shall be conspicuously led either regular notice of intent e air taxi mail service or expedited e of intent to use air taxi mail

ce.

› Regular notice of intent to use air mail service. A notice filed under subsection shall state the name of ir taxi operator who will engage in carriage of mail if known; the locaof the points between which mail be carried; and the reasons, together supporting data, why the Post Office rtment deems the proposed service ired to meet the needs of the Postal em.

› Expedited notice of intent to use axi mail service. In addition to the mation required by § 298.24(b), a ce filed under this subsection shall ain a factual representation that the Office Department has ascertained no interested certificated route carobjects to air taxi mail service ben the subject pair of points. Such ce shall also identify each interested ficated route carrier with which the - Office has discussed the proposed axi mail service. For purposes of this ection, an interested certificated e carrier is defined as (1) an air ier holding a certificate of public enience and necessity pursuant to on 401(d) (1) or (2) of the Act which orizes service between such pair of ts and such authority has not been ended; or (2) an air carrier holding ertificate of public convenience and essity pursuant to section 201(d) (1) 2) of the Act which has authority to e between such pair of points by on of an exemption authorization ed pursuant to section 416(b) of the

1) Effective date of notice-protests objections. Subject to the provisions aragraph (e) of this section, a regunotice of intent to use air taxi mail

service filed under paragraph (b) of this section shall be effective to authorize the proposed service upon the expiration of 10 days after the filing of such notice, unless within such 10-day period (1) the Board shall issue an order suspending such notice or (2) any person shall file a written protest and objection setting forth grounds why such service would be contrary to the public interest. Subject to the provisions of paragraph (e) of this section, an expedited notice of intent to use air taxi mail service filed under paragraph (c) of this section shall be effective to authorize the proposed service upon the expiration of 5 days after the filing of such notice, unless within such 5-day period (1) the Board shall issue an order suspending such notice or (2) any person shall file a telegraphic or other written protest stating opposition to the proposed service. Within 10 days after the filing of a notice under paragraph (c) of this section, any person who filed a timely protest thereto shall also file a written objection setting forth grounds why such service would be contrary to the public interest. Within 7 days after an objection has been filed, the Post Office Department may file an answer thereto. Where a protest has been filed, a notice under paragraph (b) or (c) of this section shall not be effective unless and until the Board so orders.

(e) Establishment of mail rate. No notice filed under paragraph (b) or (c) of this section shall be effective until the Post Office Department and the affected air taxi operator have jointly filed with the Board a petition setting forth a mutually agreed-upon rate for the carriage of mail and requesting the Board to fix a final mail rate pursuant to section 406 of the Act. Where a notice filed pursuant to paragraph (b) or (c) of this section states that the Post Office Department has been authorized to petition for such rate by the affected air taxi operator, the Department may file the petition required herein either separately or as part of said notice. If the Board fails to fix a final mail rate by the date when such notice becomes effective, the mutually agreed-upon rate shall be the basis for temporary payment, subject to upward or downward adjustment upon the determination of a final mail rate which shall be retroactive to the date when service was inaugurated.

(f) Service of documents. A copy of each notice or answer filed by the Post

Office Department with the Board under paragraph (b), (c), or (d) of this section shall be served upon the chief executive of each interested certificated route carrier, as that term is defined in paragraph (c) of this section. A copy of each protest and objection shall be served upon the Post Office official subscribing the notice and upon any air taxi operator named therein. Service of each notice filed under paragraph (c) of this section shall be made personally or by telegram. Service of each notice filed under paragraph (b) of this section shall be made personally, by airmail, or, if as expeditious as airmail, by first-class mail. Service of any answer or protest upon any person may be made by personal service, or by first-class or airmail. Each copy of a notice served pursuant to this subsection shall be accompanied by a letter of transmittal stating that such service is being made pursuant to this part.

(g) Filing of documents. An executed original and nine copies of each notice, answer or objection and protest shall be filed with the Docket Section of the Civil Aeronautics Board, Washington, D.C. 20428. Each such copy shall be accompanied by a statement that service has been made in accordance with the provisions of paragraph (f) of this section.

(h) Other procedural provisions. Except as otherwise specifically provided herein, the requirements of Part 302 of the Board's procedural regulations shall govern notices and other pleadings filed pursuant to this section.

(Sec. 406, 72 Stat. 763, 49 U.S.C. 1376) [ER-514, 32 F.R. 14321, Oct. 17, 1967]

Subpart D-Liability Insurance
Requirements

(a) Each air taxi operator engaging in air transportation shall maintain in effect liability insurance coverage which complies with the requirements of this subpart and which is evidenced by a currently effective policy of insurance, with an attached standard endorsement, available for inspection by the Board and the public at its principal place of business. Notwithstanding the provisions of § 298.44 (b), (g), (h), and (j), no liability insurance will be deemed to comply with this subpart unless it covers all aircraft which the operator operates in air transportation and all services

which the operator performs transportation.

(b) "Certificate of insurance," as herein, means one or more certifi evidencing the following: Issuance or more insurers of one or more curr effective policies of aircraft liabilit surance in compliance with this su and properly endorsed, which alon in combination provide the mini coverage prescribed in § 298.42. more than one insurer is involved in viding the minimum coverage prescr herein, the limits and types of lial assumed by each insurer shall be cle stated in the certificate of insurance, certificate of insurance shall also whether the policy of insurance prov coverage for liability for bodily in to or death of aircraft passengers. In dition, the certificate of insurance s state whether the policy of insurance cludes coverage for operations with aircraft falling within the group specified in § 298.44 (j). Each certifi of insurance, and each endorsem limiting the permitted exclusions, s be signed in ink by an authorized off or agent of the insurer and shall be forms prescribed and furnished by Board.

(c) The insurance coverage and tificate required by this subpart shall obtained from one or more (1) reputa and financially responsible insura companies or associations which are censed to issue aircraft liability polic in any State in the United States or the District of Columbia, or (2) surp line insurers named on a current list approved surplus line insurers prom gated by the insurance regulatory thority of any State in the United Sta or in the District of Columbia: Provid That if any such surplus line insurer p vides more than ten percent (10%) of liability insurance coverage of an taxi operator required by this subp: it shall maintain, in a bank or other nancial institution organized or oper ing under the laws of the United Sta or a State thereof or the District Columbia, a trust fund of at least th hundred thousand dollars ($300,000) the benefit of its policyholders.

(d) Each air taxi operator sh prominently post at each place wher

3 CAB Forms 257 and 262 are filed as of the original document and can be obtai from the Publications Section, Civil A nautics Board, Washington, D.C. 20428.

s with the public a copy of its curly effective certificate or certificates nsurance, and shall file a copy of à with the Board in accordance with provisions of Subpart E of this part.* ertificate of insurance shall be posted ess the policy or policies of insurance which it relates remain in effect. F.R. 18233, Dec. 7, 1968]

8.42 Minimum limits of liability.

) The minimum limits of liability rage maintained by an air taxi opFor who carries passengers in air sportation shall be:

_) Liability for bodily injury to or th of aircraft passengers. A limit for one passenger of at least seventy-five usand dollars ($75,000), and a limit each occurrence in any one aircraft t least an amount equal to the sum duced by multiplying seventy-five isand dollars ($75,000) by seventypercent (75%) of the total number of senger seats installed in the aircraft. 2) Liability for bodily injury to or th of persons (excluding passengers). mit of at least seventy-five thousand ars ($75,000) for any one person in one occurrence, and a limit of at se three hundred thousand dollars 00,000) for each occurrence.

3) Liability for loss of or damage to perty. A limit of at least one hundred usand dollars ($100,000) for each urrence.

b) The minimum limits of liability erage maintained by an air taxi optor who restricts his operations in air nsportation to the carriage of mail or perty, or both, shall be those speciin paragraphs (a) (2) and (3) of 3 section.

F.R. 18233, Dec. 7, 1968]

legally obligated to pay as damages for bodily injury to or death of persons, or for loss or damage to property of others (except as exclusion of coverage is permitted by § 298.44) resulting from the insured operator's negligent operation, maintenance or use of aircraft in "air transportation," as that term is defined by the Federal Aviation Act of 1958.

(b) The liability of the insurer shall apply to all operations by the insured operator in "air transportation," as that term is defined by the Federal Aviation Act of 1958. The liability of the insurer shall not be subject to any exclusion by virtue of violations, by the insured operator, of any applicable safety or economic provision of the Federal Aviation Act or of any applicable safety or economic rule, regulation, order, or other legally imposed requirement prescribed thereunder by the Federal Aviation Administration or the Civil Aeronautics Board or any other State or Federal law or regulation. No special waiver or exemption issued by the Federal Aviation Administration or the Civil Aeronautics Board shall affect the insurance afforded by the policy.

(c) The liability of the insurer shall not be contingent upon the financial condition, solvency, or freedom from bankruptcy of the insured. The limits of the insurer's liability for the amounts prescribed herein shall apply separately to each occurrence. Any payment made under the policy because of any one occurrence shall not reduce the liability of the insurer for payment of other damages resulting from any other occurrence.

(d) Within the limits of liability herein prescribed, the insurer shall not be relieved from liability by any condition, warranty, or exclusion in the policy or any endorsement thereon, or violation thereof by the insured air taxi operator, other than by the exclusions set forth in § 298.44 or such other exclusions as may be individually approved by the Board.

(e) The policy of insurance shall state that, pursuant to any statute of any State, Territory, or District of the United States which makes provision therefor, the insurer designates the Superintendent, Commissioner, or Director of Insurance or other officer specified for that purpose in the statute (or his successor or successors in office) as the insurer's attorney upon whom may be served process in any action arising out of the policy of insurance.

[33 F.R. 18233, Dec. 7, 1968]