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767, 770 and 771; 49 U.S.C. 1325, 1371, 1373, tion; and (b) from section 403 of the 1378, 1382 and 1386.

Act insofar as the provisions thereof SOURCE: The provisions of this part 290 would prevent such air carrier from encontained in ER-480, 31 FR. 16526, Dec. 28, gaging in such air transportation in ac1966.

cordance with the financial provisions of § 290.1 Definitions.

its lease agreement with the CRAF

operator. (a) "CRAF” (Civil Reserve Air Fleet) means those air carrier aircraft allocated

$ 290.4 Reports. by the Secretary of Commerce to the (a) Two true and complete copies of Department of Defense to meet essential all leases and related agreements aumilitary needs in the event of an thorized under this part, and all amendemergency.

ments thereto, shall be filed with the (b) "CRAF Operator" means an air Board within 15 days after the date of carrier which has been required by the execution. Government, under the expanded capa- (b) The Board may require additional bility provisions of an airlift procurement reports from any CRAF operator or other contract or other CRAF contract be- air carrier with regard to trafic, revenue, tween such air carrier and the Military or any other matter related to operations Airlift Command, to furnish increased authorized under this part. airlift to the Government upon a deter

& 290.5 Effect of exemption. mination that an airlift or national emergency exists or upon the activation The exemption granted by this part of CRAF.

shall not be deemed to constitute an

"order made under sections 408, 409, and § 290.2 Exemption for lease of aircraft.

412" within the meaning of section 414 Any CRAF Operator shall be exempt of the Act. from sections 408(a) (2) and 412 of the

& 290.6 Extension. Federal Aviation Act of 1958 insofar as the provisions thereof relate to the lease The exemption granted under this part of aircraft by such operator with or with- may be extended beyond 90 days only out crew from other carriers to replace upon individual application filed with the the aircraft which such operator has Board no later than 30 days prior to the been required to furnish under the ex- expiration of such exemption. When panded capability provisions of its con- such an application has been filed, the tract with the Government in an emer- exemption granted herein shall remain gency. Such lease agreements may also in effect pending disposition of the appliinclude provisions for maintenance and cation by the Board. all other ground facilities and services

$ 290.7 Termination of exemption. related to the operation of the aircraft. The exemption under this part shall be The exemption granted by this part subject to the following conditions: may be terminated by the Board, upon (a) No CRAF operator shall lease an

reasonable notice, but without hearing, aircraft from another air carrier for at any time with respect to any lease more than 90 days.

agreement or arrangement or any op(b) No CRAF operator may have

erations thereunder which the Board under lease from other air carriers at finds to be incɔnsistent with the public any one time pursuant to this regulation, Interest. more aircraft than it has been required to furnish to the Government.

PART 292_CLASSIFICATION AND EX& 290.3 Exemption for operations.

EMPTION OF ALASKAN AIR CARAn air carrier whose aircraft are leased

RIERS to a CRAF operator pursuant to this Sec. part, shall be exempt: (a) From section

292.1 Classification, 401 of the Act insofar as the provisions 292.2 Charter trips and special services. thereof would prevent such air carrier 292.3 Procedural requirements. from engaging in air transportation,

292.4 Off-route schedules; Aling require

ments and effect thereof. pursuant to the terms of the lease, between points between which the CRAF

AUTHORITY: The provisions of this Part 292 operator is authorized by certificate or issued under secs. 204, 401, 416, 72 Stat. 743; exemption to engage in air transporta- 49 U.S.O. 1324, 1971, 1386.

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SOURCE: The provisions of this part 292 (b) Posting and preservation of docucontained in ER-410, 29 F.R. 9822, July 22,

ments. The Alaska Office copies of all 1964, unless otherwise noted.

documents subject to this part which 8 292.1 Classification.

are required by the Act, or by the reguThere is hereby established, within the

lations, orders, or rules of the Board

thereunder to be posted in the offices of meaning of section 416(a) of the Federal

the Board in Washington, D.C., shall be Aviation Act of 1958, a classification of air carriers which engage in air trans

posted in the office of the authorized portation (a) solely between points

representative of the Board in the Alaska

Liaison Office; and the Alaska Ofice within the State of Alaska or (b) solely between points within the State of

copies of documents which are required

by section 1103 of the Act to be preAlaska and between points within the

served as public records in the custody State of Alaska and points in Canada, said classification to be designated as

of the Secretary of the Board shall be Alaskan air carriers.

preserved as public records in the cus

tody of the authorized representative of $ 292.2 Charter trips and special serv- the Board in the Alaska Liaison Office ices.

under such reasonable arrangements as An Alaskan air carrier which holds &

he may make for public inspection therecertificate of public convenience and ne

of. Such posting and preservation as cessity issued by the Board may make

public records shall be in addition to charter trips and render other special

those in the Board's offices in Washingservices between points on routes which

ton, D.C. it is authorized by its certificate to serve. $ 292.4 Off-route schedules ; filing reCharter trips and other special services quirements and effect thereof. may also be rendered to or from any

(a) An Alaskan air carrier which deother point within or without Alaska:

sires to include in schedules which it Provided, however, That such trips origi

files under section 405(b) of the Act any nate at or are destined to a point in Alas

new off-route point, pursuant to a proka which is named in the carrier's cer

vision in its certificate of public contificate or which is located within 25 miles of the airline course over the car

venience and necessity authorizing it to

serve as an intermediate point any point rier's regular route and is actually being

not more than 25 miles off the airline served by the carrier as an intermediate point pursuant to a schedule on file with

course over its regular route, shall file the Board under section 405(b) of the

such schedule not later than 30 days Act; And provided further, That all such

prior to the desired effective date. The trips to and from points outside of

schedule shall be accompanied by a stateAlaska are casual, occasional, or infre

ment setting out all applicable economic quent, and are not made in such manner

data bearing on the need for the proas to result in establishing a regular or

posed service: Provided, That the Board scheduled service.

may permit the filing of such schedules

within less than 30 days prior to the $ 292.3 Procedural requirements.

desired effective date upon a showing Notwithstanding the requirements of that the public interest will thereby be any other regulation, order or rule of served. the Board, the following special provi- (b) A flight schedule filed pursuant to sions shall apply in the case of Alaskan this section may be operated according air carriers:

to its terms unless, at least five days prior (a) Filing of documents with Alaska to the effective date thereof, the Board Liaison Office. A true copy of every ap- notifies the carrier that Inauguration of plication, motion, petition or complaint such service shall be deferred. Nothing filed with the Board by or in behalf of herein contained shall alter the provision any Alaskan air carrier or in connection in an Alaskan air carrier's certificate with air transportation performed or whereby the Board may require the sought to be performed by such air car- holder, without advance notice and withrier shall be sent simultaneously by air out hearing, to suspend indefinitely, or mall to the Board's Alaska Liaison Office, for some other period, further operation Anchorage, Alaska. Such copy need not of any such service which may have been bear original signatures.

inaugurated.

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PART 295-TRANSATLANTIC SUPPLE

MENTAL AIR TRANSPORTATION Sec. 295.1 Applicability. 295.2 Definitions. 295.3 Waiver. 295.4 Separability. 295.5 Records and record retention. 295.6 Reports of emergency commercial

charters for other direct carriers. PROTECTION OF CUSTOMERS' DEPOSITS 295.7 Escrow of cash or trust for protection

of customers' deposits. 295.8 Performance bond in lieu of escrow

of cash or trust. 295.9 No priority in payment of claims. Subpart A-Provisions Relating to Pro Rata

Charters 295.10 Applicability of this subpart.

REQUIREMENTS RELATING TO AIR CARRIERS 295.11 Solicitation and formation of

chartering group. 295.12 Pretrip notification. 295.13 Tariffs to be on file. 295.13a Written contracts with chartereri. 295.14 Terms of service. 295.16 Agent's commission. 295.16 Probibition against payments Or

gratuities. REQUIREMENTS RELATING TO TRAVEL AGENTS 295.20 Prohibition against double compen

sation. 295.21 Prohibition against payments or

gratuities. 295.22 Statement of supporting Information. REQUIREMENTS RELATING TO THE CHARTERINO

ORGANIZATION 295.30 Solicitation of charter participants. 295.31 Passengers on charter fights. 295.32 Participation of immediate familles

in charter flights. 295.33 Charter costs. 295.34 Statements of charges. 295.35 Passenger manifests. 295.36 Statement of supporting information. Subpart BProvisions Relating to Single Entity

Charters 295.39 Applicability of subpart. 295.40 Tariffs to be on file. 295.41 Terms of service. 295.42 Commissions paid to travel agents. Subpart C—Provisions Relating to Mixed Charters 295.50 Applicable rules. Subpart D Procedure for Advisory Opinion on

the Eligibility of a Charterer 295.60 Advisory opinion.

AUTHORITY: The provisions of this part 295 issued under secs. 204, 204(a), 401, 403, 404, 411, Federal Aviation Act of 1958, as amended,

72 Stat. 743, 754 (as amended by 76 Stat. 143, 82 Stat. 867), 758 (as amended by 74 Stat. 445), 760, 769; 49 U.S.C. 1324, 1371, 1373, 1374, 1381.

SOURCE: The provisions of this part 295 contained in ER-521, 32 F.R. 16251, Nov. 29, 1967, unless otherwise noted. 8 295.1 Applicability.

This part establishes the terms, conditions, and limitations of transatlantic supplemental air transportation. § 295.2 Definitions.

As used in this part, unless the context otherwise requires

(a) “Transatlantic supplemental air transportation" means charter flights in air transportation performed pursuant to a certificate of public convenience and necessity issued under section 401(d) (3) of the Act authorizing the holder to engage in supplemental air transportation of persons and their personal baggage between points within the 48 contiguous States of the United States, on the one band, and points in Greenland, Iceland, the Azores, Europe, Africa, and Asia, as far east as (and including) India, on the other hand.

(b) "Charter flight” means air transportation performed by a direct air carrier on a time, mileage or trip basis where (1) the entire capacity of one or more aircraft has been engaged for the movement of persons and their personal baggage

(1) By a person for his own use (including a direct air carrier or direct foreign air carrier when such aircraft is engaged solely for the transportation of company personnel and their personal baggage, or in cases of emergency, of commercial passenger traffic: Provided, That emergency charters for commercial passenger trafic shall be reported in accordance with § 295.6);

(ii) By a representative (or representatives acting jointly) of a group for the use of such group (provided no such representative is professionally engaged in the formation of groups for the transportation or in the solicitation or sale of transportation services); or

(iii) By a tour operator or a foreign tour operator as defined in Part 378 of this chapter; or

(2) Less than the entire capacity of an aircraft has been engaged

(1) By a person for his own use (including a direct air carrier or direct for

eign air carrier when such aircraft is engaged solely for the transportation of company personnel and their personal baggage, or in cases of emergency, of commercial passenger traffic: Provided, That emergency charters for commercial passenger traffic shall be reported in accordance with § 295.6);

(ii) By a person (no part of whose business is the formation of groups or the consolidation of shipments for transportation or the solicitation or sale of transportation services) for the transportation of a group of persons and their personal baggage, as agent or representative of such group; or

(iii) By two or more persons acting jointly for the transportation of themselves and their personal baggage or a group of persons and their personal baggage: Provided, That with respect to subparagraph (2), a maximum of three groups may be chartered on one aircraft and each group shall consist of 40 or more passengers; and Provided, further, That subparagraph (2) of this paragraph shall not be construed to apply to the charter of less than the entire capacity of an aircraft by a tour operator or a foreign tour operator. With the consent of the charterer, the direct air carrier may utilize any unused space for the transportation of (1) the carrier's own personnel and property and/or (2) the directors, officers, and employees of a foreign air carrier or another air carrier traveling pursuant to a pass interchange arrangement.

(c) "Pro rata charter" means a charter the cost of which is divided among the passengers transported.

(d) “Single entity charter" means a charter the cost of which is borne by the charterer and not by individual passengers, directly or indirectly.

(e) "Mixed charter" means a charter the cost of which is borne, or pursuant to contract may be borne, partly by the charter participants and partly by the charterer.

(f) “Person" means any individual, firm, association, partnership, or corporation.

(g) "Travel agent" means any person engaged in the formation of groups for transportation or in the solicitation or sale of transportation services.

(h) “Charter group" means that body

of individuals who shall actually participate in the charter flight.

(1) "Charter organization" means that organization, group or other entity from whose members (and their immediate families) a charter group is derived.

(j) "Immediate family" means only the following persons who are living in the household of a member of a charter organization, namely, the spouse, dependent children, and parents, of such member.

(k) "Bona fide members" means those members of a charter organization who have not joined the organization merely to participate in the charter as the result of solicitation directed to the general public. Presumptively, persons are not bona fide members of a charter organization unless they are members at the time the organization first gives notice to its members of firm charter pians and unless they have actually been members for a minimum period of 6 months prior to the starting flight date. This presumption will not be applicable in the case of charters composed of (1) students and educational staff of a single school, and immediate families thereof, (2) employees of a single Government agency, industrial plant, or mercantile establishment, and immediate families thereof, or (3) participants in a study group. In the case of all other charters, rebuttal to this presumption may be offered for the Board's consideration by request for waiver.

(1) "Solicitation of the general public" means:

(1) A solicitation going beyond the bona fide members of an organization (and their immediate families). This includes air transportation services of. fered by an air carrier under circumstances in which the services are advertised in mass media, whether or not the advertisement is addressed to members of a specific organization, and regardless of who places or pays for the advertisIng. Mass media shall be deemed to include radio and television, and newspapers and magazines. Advertising in such media as newsletters or periodicals of membership organizations, industrial plant newsletters, college radio stations and college newspapers shall not be considered advertising in mass media to the extent that

(1) The advertising is placed in a medium of communication circulated mainly to members of an organization

50-031471-22

331

that would be eligible to obtain charter service, and

(1) The advertising states that the charter is open only to members of the organization referred to in subdivision (1) of this subparagraph, or only to members of a subgroup thereof. In this context, a subgroup shall be any group with membership drawn primarily from members of the organization referred to in subdivision (1) of this subparagraph: Provided, That this paragraph shall not be construed as prohibiting air carrier advertising which offers charter services to bona fide organizations, without reference to a particular organization or flight.

(2) The solicitation, without limitation, of the members of an organization so constituted as to ease of admission to membership, and nature of membership, as to be in substance more in the nature of a segment of the public than a private entity.

(m) "Study group" means a charter group comprised of bona fide participants in a formal academic study course abroad and in which (1) the charterer is an educational institution or (2) such study course is for a period of at least 4 weeks' duration at an educational institution abroad. As used in this paragraph, the term "educational institution" means a bona fide school which (i) is empowered to grant college degrees or secondary school diplomas by the government of one of the 50 States of the United States, the District of Columbia, a U.S. territory or possession or a foreign country and (ii) is operated as a school on a year-round basis. An aircraft may carry a maximum of three study groups: Provided, That if more than one group is carried each of the groups shall consist of 40 or more study group participants: And provided, further, That the entire aircraft is chartered to a single study group charterer.

(n) “Net worth" means the net stockholder equity as specified in Form 41 balance sheet account 2995 of the Uniform System of Accounts and Reports. (Sec. 402, 72 Stat. 757, 40 U.S.C. 1372); (ER-521, 32 F.R. 16251, Nov. 29, 1967, as amended by ER-531, 33 F.R. 5156, Mar. 29, 1968; ER-552, 34 F.R. 432, Jan. 11, 1969; ER-579, 34 F.R. 9552, June 18, 1969; ER-650, 35 F.R. 15985, Oct. 10, 1970]

8 295.3 Waiver.

A waiver of any of the provisions of this part may be granted by the Board upon the submission by an air carrier of a written request therefor not less than 30 days prior to the flight to which it relates provided such a waiver is in the public interest and it appears to the Board that special or unusual circumstances warrant a departure from the provisions set forth herein. 8 295.4 Separability.

If any provision of this part or the application thereof to any air transportation, person, class of person, or circumstance is held invalid, neither the remainder of the part nor the application of such provision to other air transportation, persons, classes of persons, or circumstances shall be affected thereby. § 295.5 Records and record retention.

(a) Prior to performing any supplemental air transportation pursuant to this part, the carrier shall execute, and require the travel agent (if any) and charterer to execute, the form “Statement of Supporting Information” attached hereto and made a part hereof: Provided, That this requirement shall not apply to inclusive tour charters.

(b) Each air carrier operating pursuant to this part shall comply with the applicable record-retention provisions of Part 249 of this subchapter, as amended. § 295.6 Reports of emergency commer.

cial charters for other direct carriers. It shall be an express condition upon authority conferred in § 295.2(b) (1) (1) and (2) (i) that each supplemental air carrier which performs an emergency charter transporting commercial passenger traffic for another direct carrier shall file a report with the Bureau of Operating Rights, within 30 days after each charter Alight, containing the following information:

(1) Name of direct carrier performing the charter and the name of the direct carrier for which the charter was performed;

(2) Date of flight or flights;

(3) Points of origin and destination, and intermediate points, if any;

(4) Number of passengers transported;

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