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"SEC. 303. As used in this part

“(a) 'Air carrier' means any citizen of the United States who or which undertakes, whether directly or by a lease or any other arrangement, to transport by aircraft, (1) as a common carrier, passengers or property in interstate, overseas, or foreign commerce, or (2) mail.

“(b) 'Aircraft' means any contrivance of whatever description which is used, or is capable of being or intended to be used, as a means of transportation by air.

"(c) 'Certificate' means a certificate of public convenience and necessity issued under this part.

“(d) 'Citizen of the United States' means (1) an individual who is a citizen of the United States, or (2) a partnership of which each member is an individual who is a citizen of the United States, or (3) a corporation or association created or organized in the United States or under the law of the United States or of any State, Territory, or possession of the United States, of which the president and two-thirds or more of the board of directors or other managing officers thereof, as the case may be, are individuals who are citizens of the United States and in which at least 51 percentum of the voting interest is controlled by persons who are citizens of the United States.

“(e) 'Commission' means the Interstate Commerce Commission.

“(f) 'Foreign commerce' means commerce between any place in the United States, and any place in a foreign country, whether such commerce moves wholly by air or partly by air and partly by other forms of transportation.

“(g) 'Interstate air transportation', ‘overseas air transportation', and 'foreign air transportation' mean transportation by aircraft in interstate commerce, overseas commerce, and foreign commerce, respectively, including the use of any and all facilities and instrumentalities of shipment or carriage, irrespective of any contract, express or implied, for the use thereof, and any and all services in or in connection with such shipment or carriage.

“(h) 'Interstate commerce' means commerce between a State of the United States, or the District of Columbia, and any other State of the United States, or the District of Columbia ; or between places in the same State of the United States through the air space over any place outside thereof; or between places in the same Territory or possession of the United States, or the District of Columbia, whether such commerce moves wholly by air or partly by air and partly by other forms of transportation.

“(i) 'Mail' means, except when used specifically in reference to mail of foreign countries, (1) mail of the United States prepaid at the rate prescribed by section 2 (b) (1) of the act of June 12, 1934, or, in the case of mail originating at any point in the United States for overseas or foreign air transportation, prepaid at such rate as the Postmaster General may fix from time to time for the transportation by aircraft of first-class mail to the destination concerned, and (2) foreign transit mail received by the Postmaster General for transportation by aircraft.

“(j) 'Overseas commerce' means commerce between a State of the United States, or the District of Columbia, and a Territory or possession of the United States; or between Territories or possessions of the United States, whether such commerce moves wholly by air or partly by air and partly by other forms of transportation.

“(k) 'Person' means any individual, firm, copartnership, corporation, company, association, joint-stock association, or body politic; and includes any trustee, receiver, assignee, or other similar representative thereof.

(1) 'United States' means the several States, the District of Columbia, and the several Territories and possessions of the United States, including the Territorial waters and the overlying air space thereof. Possessions of the United States shall include Puerto Rico, notwithstanding the provisions of the Act of March 2, 1917, to provide a civil government for Puerto Rico, and any other Act or Acts which are inconsistent with the provisions of this part; and any other possession of the United States; including, for the purposes of this part, the Canal Zone.

"GENERAL DUTIES AND POWERS OF THE COMMISSION

"SEC. 304. (a) It shall be the duty of the Commission

(1) To regulate air carriers as provided in this part, and administer, execute, and enforce all of its provisions, and to that end the Commission shall have authority to make and amend necessary orders in connection therewith, and to prescribe general or special rules, regulations, and procedure for such

administration: Provided, That in the exercise of its duties under this part in respect of foreign air transportation, the Commission shall take into consideration all treaties, conventions, and agreements between the United States and foreign countries, and all applicable laws and requirements of foreign countries.

“(2) To promote the development of efficient interstate, overseas, and foreign air transportation by prescribing, and revising from time to time, general standards respecting the character and quality of service to be rendered in such transportation, and to make such standards effective on such dates as it may determine after due consideration of the time required to conform to such standards.

“(3) To inquire into the organization of air carriers and into the management of their business; to keep itself informed as to the manner and method in which such organization and management are conducted ; and to transmit to Congress from time to time such recommendations as to additional legislation relating to such carriers as the Commission may deem necessary.

"(4) To approve or disapprove, in whole or in part, any and all applications made after the date of the passage of this part for or in connection with any loan from the United States or any agency thereof to or for the benefit of any air carrier; and no such loan shall be made without such approval.

“(b) The Commission may from time to time establish such just and reasonable classifications of air carriers as the nature of the services performed by such carriers shall require; and such just and reasonable rules, regulations, and requirements, pursuant to and consistent with the provisions of this part, to be observed by the carriers so classified, as the Commission deems necessary or desirable in the public interest.

"(c) Any person complaining of anything done or omitted to be done by any air carrier in contravention of the provisions hereof, or any requirement established pursuant hereto, may file with the Commission a complaint in writing, which shall briefly state the facts. Upon such complaint, or upon its own initiative, the Commission may investigate whether any such carrier has failed to comply with any such provision or with any such requirement established pursuant thereto. If the Commission, after notice and hearing, finds upon such investigation that such carrier has failed to comply with any such provision or requirement, the Commission shall issue an appropriate order to compel such carrier to comply therewith. Whenever the Commission is of the opinion that any complaint does not state reasonable grounds for investigation and action on its part, it may dismiss such complaint without hearing.

"(d) In any proceeding under section 309 or section 310 of this part, there shall not be taken into consideration in determining, or allowed as evidence of, or elements of, the value of the property of any air carrier, either goodwill, earning power, or the certificate of the carrier, and in applying for and receiving a certificate any such carrier shall be deemed to have agreed to the provisions of this paragraph on its own behalf and on behalf of the transferees of such certificate.

"(e) In the exercise of its powers under section 309 or section 310 of this part, the Commission shall give due consideration, among other factors, to the policy declared in section 302 (a) hereof; to the effect of rates, fares, and charges upon the movement of traffic; to the need, in the public interest, of adequate and efficient transportation service by such carriers at the lowest cost consistent with the furnishing of such service; to such standards respecting the character and quality of service to be rendered in air transportation as the Commission may prescribe; to the condition that such carriers may hold certificates and operate thereunder only by providing necessary and adequate facilities and service for the transportation of mail; to the need of each such carrier for compensation for the transportation of mail by aircraft sufficient to insure the performance of such service and, together with all other revenue of the carrier, to enable the carrier, under honest, economical, and efficient management, to maintain and continue the development of air transportation to the extent, and of the character and quality, required in the public interest.

"CERTIFICATES OF PUBLIC CONVENIENCE AND NECESSITY

"Sec. 305. (a) No air carrier shall engage in interstate, overseas, or foreign air transportation or in any transportation of mail by aircraft, unless there is in force a certificate issued by the Commission authorizing such carrier so to engage: Provided, That if an air carrier was so engaged in such transportation on the date of the passage of this part, such carrier may continue so to engage

between the same points for one hundred and twenty days after said date, and thereafter, if said carrier files an application for a certificate as provided for herein within said one hundred and twenty days, until such time as the Commission shall pass upon such application.

“(b) Applications for certificates shall be made in writing to the Commission, be verified under oath, and shall be in such form and contain such information and be accompanied by proof of service upon such interested parties as the Commission shall by regulation require.

"(c) Upon the filing of an application under this section the Commission shall give due notice thereof to the Postmaster General and to the public by posting a notice of such application in the office of the secretary of the Commission; and if the application is for a certificate authorizing foreign air transportation, the Commission also shall give due notice thereof to the representatives of the Departments of State, Treasury, Post Office, and Commerce, comprising the Interdepartmental Committee on International Civil Aviation, or to such other agency as the President may designate for such purpose. Any interested person may file with the Commission a protest or memorandum of opposition to the issuance of the certificate. Such applications shall be set for public hearing and the Commission shall, insofar as practicable, give to the disposition thereof preference over all other proceedings pending before it under this part, and shall dispose of such applications as speedily as possible.

"(d) The Commission shall issue a certificate authorizing the whole or any part of the transportation covered by the application, if it finds that the applicant is fit, willing, and able properly to perform such transportation and to conform to the provisions of this part and the requirements, rules, and regulations of the Commission hereunder, and that such transportation is or will be required by the present or future public convenience and necessity; otherwise such application shall be denied: Provided, That if any applicant shall show that from December 31, 1936, until the date of the passage of this part, it or its predecessor in interest, was an air carrier, continuously operating as such (except as to interruptions of service over which the applicant or its predecessor in interest had no control) the Commission, upon proof of such facts only, shall issue a certificate or certificates, not limited as to duration, authorizing such applicant to engage in interstate, overseas, or foreign air transportation of all classes of traffic except mail, between the terminal and intermediate points between which it, or its predecessor, so continuously operated during such period, and also authorizing such applicant to transport mail between the terminal and intermediate points between which such applicant, or its predecessor, was engaged in the transportation of mail at any time during the period from December 31, 1936, to the date of the passage of this part: Provided further, That if any applicant qualifying under the foregoing proviso, or any other applicant, shall show that, on the date of the passage of this part, it had been authorized by the Commission or the Postmaster General to engage in any interstate, overseas, or foreign air transportation, or any transportation of mail by aircraft, the Commission, upon proof of such fact only, shall likewise issue a certificate or certificates, not limited as to duration, authorizing such applicant to engage in the transportation of the same classes of traffic, to the same extent, and between the same terminal and intermediate points, as it had been so authorized : And provided further, That any certificate issued under either of the foregoing provisos of this paragraph may be amended to permit the transportation of mail or in other respects, in accordance with paragraph (j) of this section.

“(e) Each certificate shall specify the terminal and intermediate points vetween which the carrier is authorized to engage in transportation, the service which may be rendered, and such reasonable terms, conditions, and limitations as the public convenience and necessity may require, which may be changed from time to time after due notice and hearing: Provided, That a certificate issued under this section to engage in foreign air transportation shall designate such points only insofar as the operation is to take place within territories or territorial waters subject to the soverignty or authority of the United States, and otherwise shall designate only a general trade route, and the foreign markets to be served. No term, condition, or limitation of a certificate shall restrict (1) the right of a carrier to change equipment accommodations, and facilities for performing the authorized transportation and service as the development of the business and the demands of the public shall require; or (2) compliance by a carrier engaged in foreign air transportation with any treaty, agreement, or convention between the United States and a foreign

country, or with any franchise, obligation, right, privilege, duty, or liability granted or imposed by any foreign country, in respect of transportation outside of the United States. No carrier shall be deemed to have violated its certificate by landing or taking off during an emergency at a point not named in its certificate, or by making charter trips or furnishing any other special service under regulations prescribed by the Commission.

"(f) A certificate may include authority to transport such classes of traffic, except mail, as may be approved by the Commission, and may include authority to transport mail as set forth in paragraphs (d) and (m) of this section; and it shall be unlawful for any carrier to transport any class or classes of traffic not authorized in its certificate. Any air carrier holding a certificate for foreign air transportation shall be authorized to handle and transport mail of countries other than the United States.

“(g) No certificate shall be issued, and no air carrier shall hold, or operate under, any certificate, except upon condition that the carrier shall undertake to provide, under such rules and regulations, not inconsistent with the provisions of this part, as the Postmaster General may prescribe, necessary and adequate facilities and service for the transportation of, and to transport, mail, whenever so authorized by such certificate and so required by the Postmaster General; and such carrier shall be entitled to receive compensation therefor as hereinafter provided.

"(h) No certificate shall confer any proprietary, property, or exclusive right in the use of any air space, civil airway, or airport.

“(i) Each certificate shall be effective from the date specified therein, and shall continue in effect until suspended or revoked as hereinafter provided, or until its expiration if issued for a limited time, or until the Commission shall certify that operation thereunder has ceased : Provided, That in the event any service authorized by a certificate is not inaugurated within, or is not operated for, a period of ninety days or such other period as may be designated by the Commission, the Commission may by order, entered after notice and hearing, direct that such certificate shall thereupon cease to be effective to the extent of such service.

“(j) The Commission may, upon application of a holder of a certificate, amend such certificate if it finds such amendment to be consistent with the public convenience and necessity; and it may, upon complaint, or upon its own initiative, after notice and hearing, suspend, amend, or revoke a certificate, in whole or in part, for willful failure to comply with any provision of this part, or with any order, rule, or regulation of the Commission promulgated hereunder, or with any term, condition, or limitation of such certificate: Provided, That no such certificate shall be revoked unless the holder thereof willfully fails to comply, within a reasonable time to be fixed by the Commission, with an order of the Commission, entered after notice and hearing, commanding obedience to the provision, or to the order, rule, regulation, term, condition, or limitation found by the Commission to have been violated: And provided further, That any such certificate shall be suspended in whole or in part by the Commission without notice or hearing, to the extent required by any order of the Secretary of Commerce relative to the safety of operation of aircraft, issued pursuant to the Air Commerce Act of 1926, as amended, and any such suspension shall remain in effect until the Secretary of Commerce certifies to the Commission that such suspension is no longer necessary in the interest of public safety.

“(k) If any person applying for a certificate for foreign air transportation holds a contract, license, permit, concession, or franchise, which was in effect at the date of the passage of this part, permitting such transportation, the Commission shall give preference to such holder over any other applicant, if such holder is fit, willing, and able properly to perform such transportation.

“(1) Except as provided in section 311, any certificate, or any prior right to engage as an air carrier in interstate, overseas, or foreign air transportation granted by this part, may be transferred pursuant to such rules and regulations as the Commission may prescribe.

(m) Whenever, from time to time after the passage of this part, the Postmaster General shall find that the needs of the Postal Service require the transportation of mail by aircraft, in addition to the transportation of mail authorized in certificates then currently effective, between any points within the United States or between the United States and foreign countries, or in a foreign country or between foreign countries, the Postmaster General shall certify such finding to the Commission and file therewith a statement

showing such additional service and the facilities necessary in connection therewith, and a copy of such certification and statement shall be posted for at least twenty days in the office of the secretary of the Commission. If the Commission shall find, after a hearing of interested persons, that the proposed service would not unreasonably impair the ability of any air carrier to continue to engage in any activity authorized under a certificate held by it pursuant to this section, the Commission shall thereupon authorize the transportation of mail by aircraft under any certificate or certificates that may have been issue theretofore for transportation between the points to be served by such additional mail service, by an amendment or amendments thereto pursuant to paragraph (j) of this section, or by granting such authority in any new certificate or certificates issuable to any applicant pursuant to paragraph (d) of this section.

"ACCOUNTS, RECORDS, AND REPORTS

"SEC. 306. (a) The Commission is authorized to require annual, monthly, periodical, and special reports from all air carriers; to prescribe the manner and form in which such reports shall be made; and to require from such carriers specific answers to all questions upon which the Commission may deem information to be necessary. Such reports shall be under oath whenever the Commission so requires. The Commission may also require any air carrier to file with it a true copy of each or any contract, agreement, or arrangement between such carrier and any other air carrier or person in relation to any traffic affected by the provisions of this part, to which he or it may be a party.

"(b) The Commission shall prescribe the forms of any and all accounts, records, and memoranda to be kept by air carriers, and the length of time such accounts, records, and memoranda shall be preserved, including the accounts, records, and memoranda of the movement of traffic, as well as of the receipts and expenditures of money, and it shall be unlawful for such carriers to keep any other accounts, records, or memoranda than those prescribed or approved by the Commission: Provided, That any such carrier may keep additional accounts, records, or memoranda if they do not impair the integrity of those prescribed by the Commission.

"(c) The Commission shall at all times have access to all lands, buildings, or equipment of air carriers used in connection with interstate, overseas, or foreign air transportation and to all accounts, records, and memoranda, including all documents, papers, and correspondence, now or hereafter existing, and kept or required to be kept by air carriers. The members and employees of the Commission shall have authority under its order to inspect and examine any and all such lands, buildings, equipment, accounts, records, and memoranda, including all documents, papers, and correspondence, now or hereafter existing, and kept or required to be kept by air carriers.

“(d) The Commission shall, as soon as practicable, prescribe for air carriers the classes of property for which depreciation charges may properly be included under operating expenses and the rates of depreciation which shall be charged with respect to each of such classes of property, classifying such carriers as it may deem proper for this purpose, and the Commission may, when it deems necessary, modify the classes and rates so prescribed. Thereafter such carriers shall not charge to operating expenses any depreciation on classes of property other than as prescribed by the Commission, or charge with respect to any class of property a rate of depreciation other than that prescribed therefor by the Commission. No such carrier shall in any case include in any form under its operating or other expenses any depreciation or other charge or expenditure included elsewhere as a depreciation charge, or otherwise under its operating or other expenses. The Commission may also prescribe rules and regulations concerning the manner in which depreciation reserves shall be accrued and funded or otherwise used.

"RATES, FARES, CHARGES, CLASSIFICATIONS, AND PRACTICES

"SEC. 307. (a) It shall be the duty of every air carrier engaged in interstate air transportation to provide and furnish such transportation, as authorized by its certificate, upon reasonable request therefor and to provide reasonable through service in connection with other air carriers; to provide safe and adequate service, equipment, and facilities in connection with such transportation; to establish, observe, and enforce just and reasonable individual and joint rates, fares, charges, and classifications and just and reasonable regulations and practices relating thereto, and to the issuance, form, and substance of

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