en route, refusals after mail is accepted by the air carrier, and transfers to an air carrier other than as ordered in dispatch forms.

(c) Accident report. Air carriers must make an immediate telegraph or telephone report of any accident resulting in possible damage to or loss of mail. The report must be made to the transportation division, in the region concerned. Mail should not be disturbed, except to prevent further damage. It must be guarded until the arrival of a postal official.

(d) Bomb aboard situations. Postal units must immediately report bomb situations to the local postal inspector or Inspector in Charge and to the local director, transportation division; make delayed mail report, and complete Forms 2734 when necessary. § 531.7

Submission of claims.

(a) Domestic-(1) Forms used. Air carriers operating over domestic routes shall use the following forms, as required by the Bureau of Transportation and International Services: Form 2703, Carrier's Claim for Airmail Transportation; Form 2729, Airmail Dispatch and Billing Record; Form 2734, Airmail Exception Record; Form 2732, Monthly Summary of Airmail Carried; and Form 2747, Air Carrier Statement of Settlement of Air Transportation Charges. Samples of these forms may be obtained from the Air Transportation Branch, Bureau of Transportation and International Services.

(2) Preparation of bills. Separate Forms 2703 or bills shall be prepared for each postal accounting period, or for such lesser period as may be agreed to by an air carrier and the Air Transportation Branch, and must include all airmail transported during that period. Trunklin, local service, helicopter, Intra- and States-Alaska, Intra- and States-Hawaii, States-Puerto Rico and Intra- Puerto Rico-Virgin Islands air carriers must prepare and support air transportation bills according to the minimum requirements established by the Bureau of Transportation and International Services.

(b) Designated postal data centers. (1) Domestic air carriers, other than as provided in subparagraphs (2) and (3) of this paragraph will be paid for the carriage of domestic airmail by the postal data centers as shown in this section. The region number, regions served, and

§ 531.8 Irregularities, deductions, and fines.

(a) Irregularities. Irregular handling of mail by airline carrier personnel shall be promptly reported on Form 2759, Report of Irregular Handling of Airmail, by the postal employee who observes the irregularity or who is informed of irregular performance through receipt at a postal unit of the post office accounting copies of Form 2734, by the air carrier. See § 533.7 of this chapter for types of irregularities that will be reported and for instructions on preparation of the form.

(b) Deductions. Form 2734 provides for the adjustment of compensation for service ordered and paid for but not performed.

(c) Fines. Air carriers transporting mail must observe all applicable postal laws and all applicable regulations issued by the Post Office Department. Air carriers may be subject to fines and deductions for failure to comply therewith. § 531.9 Correspondence concerning air service.

(a) Local. Correspondence on local operations of mutual concern shall be handled direct between the local carrier and local air stop postal unit heads or field service representatives. Matters coming within the scope of § 531.92 shall be referred to the transportation division.

(b) Regional. Correspondence to and from air carriers relating to policy, schedules, operations, fining, quarters, mileages and rates; irregularities and changes in dispatch billing procedures and forms; omissions and failures of carriers to perform; division of mail; service requirements, actions involving CAB orders and rulings, first-class mail by air; and other matters of regional nature, shall be conducted by the transportation division within the scope of regional delegations. Questions of interregional impact or of departmental concern, as specified elsewhere in the regulations, will be forwarded to the Department for decision.

SOURCE: The provisions of this Part 532 appear at 32 F.R. 10918, July 26, 1967, unless otherwise noted.

§ 532.1 Description, authority, and general.

(a) Description. Air star route service is established and operated under contracts awarded by the Postmaster General for air transportation in areas where such service is in the public interest, and the nature of the terrain is such that surface transportation is impractical or inadequate. This service may include any or all classes of mail.

(b) Authority. The Air Star Route Law (49 U.S. Code, sec. 6303) authorizes the Postmaster General to contract for this service after receiving proper certificate from the Civil Aeronautics Board.

(c) General. (1) Upon receipt of a request from the Department for the certification, the CAB is required to promptly publish in the FEDERAL REGISTER, and to send to such persons as the Board may by regulation determine, a notice describing the proposed air star route. The CAB shall afford interested persons a reasonable opportunity to submit written data, views, or arguments, with or without opportunity to present the same orally or in any manner.

(2) Contractors for service awarded under an air star route contract will be required to provide fully adequate and suitable aircraft for the carriage of the mail and to transport the whole of said mail, whatever may be its size, weight, or increase during the terms of the contract, with celerity, certainty, and security on each and every trip as required by the advertisement. Contractors may be required to convey without extra charge (i) all post office blanks, mail bags, locks and keys and other postal supplies that may be offered to them, and (ii) postal inspectors and other agents and officials of the Department, on regular scheduled trips on which mail is handled and between the points specified in the official statement of the route, when the space or weight limits of the plane permits.

(3) The acceptance of a bid and the execution of a contract for the performance of air star route service does not authorize the contractor or carrier to engage in the transportation of persons or property, for compensation, between the points or over the route described in the contract without compliance with applicable Federal and State statutes

and with applicable rules and regulations of the FAA and of the CAB.

(4) Bidders for proposed air star routes and their sureties will acquaint themselves with Federal laws relating to contracts for carrying the mail.

(5) All accepted bidders under an advertisement for air star routes will be required to execute contracts with sureties acceptable to the Department. A list of acceptable surety companies is shown in § 521.3 (c) (2) of this chapter.

(6) Contracts must be executed and filed in the Department within 60 days from the date of acceptance of the bid, otherwise the accepted bidder may be considered as having failed. The Department reserves the right to (1) suspend the award of contract on any route for a period not exceeding 60 days from the date of the expiration of the advertisement and allow a corresponding extension of time for the execution of the contract, and (ii) to rescind the acceptance of a proposal at any time before the signing of the formal contract on behalf of the United States without allowing indemnity.

(7) Where there is rail service or good highway facilities, or a combination of both, generally an air star route could not be justified. However, prospective applicants for air star routes should communicate with the Regional Director, Post Office Department, of the postal region in which the proposed route is located. When the official approves the application and forwards an appropriate recommendation to the Bureau of Transportation and International Services, necessary certification by the CAB will be requested if approved by that Bureau.

(8) Air star route contractors, except in Alaska, will be required to comply with such economic regulations as may be prescribed from time to time by the CAB.

(9) Contracts will comply with all provisions of Executive Order No. 10925 of March 5, 1961, and of the rules, regulations, and relevant orders of the President's Committee on Equal Employment Opportunity.

proposals for air transportation of mail between the points and on the terms stated. Copies of the advertisement are furnished to postmasters for posting at terminal offices.

(2) Requirements of bidders. Bidders must meet the following requirements: (i) Eligibility. (a) No proposal for a contract for air star route service shall be considered unless the bidder is a resident of, or is qualified to do business as a common carrier by air, in a State within which one or more points to be served under the proposed contract are located. The term "State" as used here includes the several States, and the District of Columbia.

(b) Only bidders holding an appropriate operating certificate issued by the FAA will be considered for award of a contract for air star route service.

(c) For further eligibility requirements, see § 521.3 (c) (2) (1) of this chapter.

(li) Bonds. See § 521.3(c)(b)(iii) of this chapter.

(3) Obtaining proposal forms. See § 521.3(c) (5) of this chapter.

(4) Submitting bids. See § 521.3 (c) (6) of this chapter.

(b) Award of contract. See § 521.3 (d) of this chapter.

(c) Application of contract regulations. If there is no conflict, all laws and regulations governing surface star routes in general apply to contracts made under the air star route law.

(d) Payments. See § 521.3 (h) of this chapter.

(e) Cancellation of air star route contract. A contract shall be canceled by the Post Office Department upon the issuance by the CAB of an authorization to any air carrier to engage in the transportation of mail by aricraft between any of the points named in the air star route contract.

(f) Revocation of FAA certificate. If a contractor for an air star route should have his operating certificate revoked, the air star route contract shall become null and void effective with the date of loss of such certificate, without payment of any indemnity.

§ 532.3 Protection of mail.

The contractor is required to take all necessary steps to protect the mail in accordance with the terms of the advertisement.

§ 532.4 Reports and records.

Postmasters at terminal points must maintain such records and submit such reports as may be directed by the transportation division director.

PART 533-FORMS AND PROCEDURES FOR DISPATCHING AIRMAIL Sec.

533.1 Form 2729, Airmail Dispatch and Billing Record.

533.2 Form 2734, Airmail Exception Record. 533.3 Form 2713-A, Alaskan Airmail Dispatch Record.

533.4 Form 2713-B, Alaskan Airmail Transfer and Exception Record. [Reserved]

533.5 533.6 Form 2753-A. Mail Delivery Receipt. 533.7 Form 2759, Report of Irregular Handling of Airmail.

533.8 Applicability of forms and procedures. 533.9 Airmail and first-class mail forms, titles and sources of supply. AUTHORITY: The provisions of this Part 533 issued under 5 U.S.C. 301, 39 U.S.C. 501.

SOURCE: The provisions of this Part 533 appear at 32 F.R. 10919, July 26, 1967, unless otherwise noted.

§ 533.1 Form 2729, Airmail Dispatch and Billing Record.

(a) Description. Form 2729 covers airmail dispatched to all domestic air carriers operating within and between the 50 United States, Puerto Rico, and the Virgin Islands, and to Canada. See § 533.3 (a) for exception. It is the basic document from which payments to the original and interline air carriers are computed. See § 533.9 for supply.

(b) Preparation. (See Exhibit in this paragraph)

(1) Who prepares. The form is prepared in four-part sets by the designated clerk at the airport mail facility or, at nonairport mail facility points, by the dispatching clerk at the post office.

(2) Heading form-(1) Origin code. Enter the official airline code of the airport from which the mail is due to be dispatched. When more than one postal unit prepares Form 2729 for dispatch through the same airport, refer to Official Airmail Index for airport codes to be used by each office.

(ii) Route number. Enter the route number of the air carrier to which the mail is dispatched.

(iii) Trip number. Enter the trip number of actual dispatch.

(iv) Scheduled trip date. Enter the scheduled date of origin of the trip.

(v) Today's date. Enter the date on which the trip of dispatch is scheduled to depart from the airport.

(vi) Scheduled departure time. Using 24-hour clock, enter time the trip of dispatch is scheduled to depart your airport.

(3) Recording dispatches-(i) Under destination. (a) Using the States dispatch scheme and other applicable pouching instructions, enter in code the final airline destination of the dispatches.

(b) Show each destination in station order of removal from the original trip of dispatch. Listing from left to right, use a separate block for each destination. When volume justifies, bulk list mail to common destinations.

(c) Enter, under the proper destination, mail labeled to that point, mail scheduled to continue from that point by surface transportation, and mail for another air carrier when the transfer is to be effected through the airport mail facility. Use individual actual weights indicated on the labels of pouches, sacks, and outside parcels unless permission has been granted to bulk weigh mail on platform scales direct to the air carrier, or where bulk entries are to be listed (for example, the recording on the form of a consolidated entry of an accumulation of pieces listed on preliminary work sheets). Where bulk weighing has been approved or where bulk entries are listed, it is necessary only that the "total" pieces and weight be entered in the space provided at the bottom of the respective destination column. Do not identify pouches, sacks, outside parcels, or register as such on this form.

(ii) On-line. Use only sections 1 and 3 of the form when making the following dispatches:

(a) Stations served by trip of dispatch. Enter only the destination.

(b) Stations served by the air carrier of dispatch but not by the trip of dispatch. Enter the destination and the first transfer point.

(iii) Interline and interchange. Interline dispatches will be entered in sections 1 and 2 of the form for the following dispatches:

(a) In Section 1. (1) Routing involving connection to a trip of another air carrier. Enter the destination and the interline transfer point, plus the route and trip numbers of the second air carrier. This applies also to interchange trips.

(2) Routing via two trips of initial air carrier, plus trip of another air carrier. Enter the destination, the first intraline transfer point, and the interline transfer point, plus the route and trip numbers of the second air carrier.

(3) Routing involving two interline transfers after air carrier of initial dispatch. Enter the destination and the interline transfer point, plus the route and trip number of the second air carrier.

(b) In Section 2-(1) Routing. Enter the route and flight number of the air carrier to which the mail is to be transferred.

(2) Tr. pt. Enter the code of the airport at which the interline connection is to be made.

(3) Carrier dest. Enter off-loading point, either for delivery to post office or for transfer to another carrier.

(4) I. Enter X to identify mail moving over an authorized interchange trip.

(5) Pieces and weight. Enter the mail by totals (obtained from sec. 1 of Form 2729) for each of the destinations involved.

(6) Interline total. Total pieces and weight columns.

(4) Completing the form. (i) Total the pieces and weights for each destination column.

(ii) Total the subtotals for all columns, and enter in the "total mail" space.

(iii) Recap all columns under the actual destinations served by the trip of dispatch. Enter each airport served, with the appropriate total, in section 3.

(iv) Total the "originating load" column, and verify against the previously entered "total mail." If more than one form has been used, the "originating load and total mail" entries must appear on the final form.

(v) At nonairport mail facility points, the post office employees preparing Form 2729 will not total the "dest.", "originating load," and "total mail" columns if the mail messenger or motor vehicle service driver picks up additional mail at the railroad station or other postal unit en route to the airport. On arrival at the airport, the mail must be weighed and proper entry must be made on Form 2729 by the messenger.

(vi) In the "mail ready" space, enter the time at which the mail and forms are ready for delivery to the air carrier at the airport. At nonairport mail facility points, this time must be entered by the mail messenger or vehicle service driver. The messenger or driver must obtain the

signature of the receiving air carrier representative at the time the mail is delivered.

(vii) If the volume of mail is too large to be listed on one Form 2729, use a new numbered form, line through but do not obliterate the printed number, and write in the serial number of the first form. Number the sets consecutively, identifying the last by adding X after the number.

(viii) Add the weights of "total mail" to "interline total" and enter "document pound" total in space provided. This total must be correct as it is used as a control total for processing punch cards for pay purposes.

(ix) Sign Form 2729 in space provided for POD representative's signature.

(5) Corrections to Form 2729. Make corrections to Form 2729 before separating and distributing the four parts of the form. Postal or air carrier personnel shall not make corrections on any part of Form 2729 after it has been separated and distributed.

(c) Distribution of copies. After obtaining the air carrier representative's signature on Form 2729, separate copies and distribute as follows:

(1) P.O. Accounting Copy 1. Arrange forms in ascending serial number order (smallest number on top) and send to designated postal data center daily. Include second and third copies of all forms that have been voided, mutilated, etc. Since these forms are serially numbered, they must be accounted for. At nonairport mail facility points, the first three copies of Form 2729 must accompany the mail. After obtaining carrier's signature, the mail messenger or vehicle service driver must return copy 1 to the post office.

(2) Carrier Billing Copy 2 and Carrier Station Copy 3. To local air carrier representative.

(3) P.O. Station Copy 4. To dispatching postal unit file.

(d) Departure time. Postal units shall spot check actual departure time against "Mail Ready" time on Form 2729 to assure that unreported delays are not occurring.

(e) Interchange trips. (1) Mail moving over more than one airmail route on one aircraft must be properly identified in section 2 of Form 2729. No terminal charge is due at the interchange point, as mail remains on board the aircraft. To enable post office accounting personnel to properly identify this mail,