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233.1 Postal employees to be carried free 233.2 Credentials and requests for free carriage.

233.3 Requests to be filed.

233.4 Issuance of credentials and transportation request forms by Post Office Department.

AUTHORITY: The provisions of this Part 233 issued under secs. 204, 405, 72 Stat. 743, 760; 49 U.S.C. 1324, 1375.

SOURCE: The provisions of this Part 233 contained in ER-213, 21 F.R. 8422, Nov. 3, 1956, unless otherwise noted.

§ 233.1 Postal employees to be carried free.

Every air carrier transporting the mails shall carry, on any fight that it operates and without charge therefor, the persons in charge of mails when on duty, and the following officers, agents and inspectors of the Post Office Department, when such persons are traveling on official business relating to the transportation of mail by aircraft and are duly accredited as provided in this part: (a) The Postmaster General.

(b) The Deputy Postmaster General. (c) The two Executive Assistants to the Postmaster General; the three Special Assistants to the Postmaster General; the two Executive Assistants to the Deputy Postmaster General; and one Deputy Executive Assistant to the Postmaster General.

(d) The six Assistant Postmasters General and the General Counsel; the deputies of the Assistant Postmasters General and of the General Counsel; the Director for Engineering and the Director for Research and Development, Bureau of Research and Engineering; and the Assistant Deputy Assistant Postmaster General, Regional Administration, Bureau of Operations.

(e) The Chief Postal Inspector; the Deputy Chief Postal Inspector; and the Assistant Chief Inspector, Criminal Investigations.

(f) The Director, Distribution and Routing Division; the Director, Air Transportation Branch; the Director, International Service Division, Bureau of Operations; the Assistant General Counsel, Transportation; the Regional Director in each of the 15 Postal Regions; the Postal Inspector-in-Charge

in each of the 15 Postal Regions; and the Field Officers in Alaska.

(g) Any inspector of the Post Office Department, other than a Postal Inspector-in-Charge.

(h) Any additional agent or officer of the Post Office Department designated by the Postmaster General.

[ER-213, 21 F.R. 8422, Nov. 3, 1956, as amended by ER-249, 24 F.R. 456, Jan. 20, 1959; ER-442, 30 F.R. 10949, Aug. 24, 1965; ER-582, 34 F.R. 9854, June 26, 1969; ER-600, 34 F.R. 20420, Dec. 31, 1969; ER-607, 35 F.R. 5113, Mar. 26, 1970]

§ 233.2 Credentials and requests for free carriage.

(a) Any person described in § 233.1 (a) to (f) shail be deemed to be duly accredited upon presentation to an air carrier of a certificate of the Postmaster General that the bearer is one of the persons so described and is entitled to free air transportation when traveling on official business relating to the transportation of mail by aircraft, and bearing the signature of the person so described.

(b) Any person described in § 233.1 (g) and (h) shall be deemed to be duly accredited upon presentation of proper credentials evidencing that he is an inspector, officer, employee, or agent of the Post Office Department, and upon presentation of a "Request for Access to Aircraft or Free Transportation" on U. 8. Government Standard Form No. 160, executed in duplicate, stating (1) the points from and to which the person desires free air transportation, and (2) the official position of such traveler and that such travel is on official business relating to the transportation of mail by aircraft. § 233.3 Requests to be filed.

Each air carrier shall insert the tariff value of the transportation to be furnished on each "Request for Access to Aircraft or Free Transportation", shall retain one copy of such request, and on or before the 10th day of each month shall forward one copy of all such requests accepted by it during the second preceding calendar month to the Secretary of the Civil Aeronautics Board. Washington 25, D.C.

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AUTHORITY: The provisions of this Part 234 issued under secs. 204, 404. 405, 411, 72 Stat. 743, 760, 769; 49 U.S.C. 1324, 1374, 1375, 1381, unless otherwise noted.

SOURCE: The provisions of this Part 234 contained in ER-223, 22 F.R. 6756, Aug. 22, 1957, unless otherwise noted.

§ 234.1 Definitions.

For the purposes of this part:

(a) "Schedule" means any part of the "general schedule" on file with the Board, pursuant to Part 231 of this chapter.

(b) "Scheduled flight" means any trip periodically operated between terminal points which is separately designated (by flight number or otherwise) in the schedules of the air carrier. (c) "All-cargo flight" means scheduled flight which carries property and does not carry revenue passengers or United States mail.

any

(d) "Scheduled time flight" means a scheduled flight which is completed within the block-to-block time allowed in the schedule, plus 15 minutes, excluding from consideration the on-the-ground time provided in the schedule or actually experienced at the intermediate points, if any, of such scheduled flight.

§ 234.2 Applicability.

This part applies to any route air carrier certificated pursuant to section 401(d) (1) or (2) of the Federal Aviation Act insofar as it is engaged in air transportation, other than helicopter service or community center or interairport

service, within or among any of the 48 mainland States of the United States and District of Columbia or between points within Hawaii with respect to all flights, other than all-cargo flights, scheduled and performed in such transportation: Provided, That the provisions of § 234.8 shall apply also to such air transportation by route air carriers between any point in Hawaii or Alaska and any point in any of the 48 mainland States or the District of Columbia. This part does not apply to supplemental air carriers or to intra-Alaskan air transportation.

(Sec. 102, 72 Stat. 740, 49 U.S.C. 1302; sec. 407, 72 Stat. 766, 49 U.S.C. 1377) [ER-513, 32 F.R. 14598, Oct. 20, 1967]

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§ 234.3 Prohibition of unrealistic scheduling and requirement elapsed time performance.

All flight schedules filed with the Board or published for the guidance of the traveling public shall be designed so as to enable each air carrier subject to this part to safely perform as scheduled time flights (in accordance with all applicable legal requirements of the Federal Government), a minimum of 75 percent of all trips actually flown pursuant to each scheduled flight during any three-month period. Each air carrier subject to this part shall perform as scheduled time flights a minimum of 75 percent of all trips actually flown pursuant to each such scheduled flight during any three-month period. § 234.4 Violation of this part.

Where it is shown that an air carrier subject to this part failed to perform as scheduled time flights a minimum of 75 percent of the trips actually flown pursuant to each scheduled flight in any three calendar months, such failure shall constitute a violation of this part, unless such carrier shows that its performance during such period was due to conditions which are not subject to its control and also could not have been anticipated in the exercise of reasonable prudence.

§ 234.5 Requirement that published

schedules conform to filed schedules. No air carrier subject to this part shall publish any statement of aircraft regularly operated between points duly authorized to be served which sets forth the time of arrival and departure at each such point or any other information concerning such service unless such information is identical in all regards, with

that contained in the schedules filed pursuant to Part 231 of this chapter. This prohibition shall apply to statements included in a system time table, the Official Airline Guide, or any other document available to the general public. § 234.6 Rule of construction.

This part shall not be construed as authorizing schedules so slow as to constitute inadequate service or uneconomical or inefficient management, or to discourage the filing of shorter schedules which are reasonably expected to be realistic.

§ 234.7 Separability.

If any provision of this part or the application thereof to any air transportation, person, class of person, or circumstance is held invalid, the remainder of the part and the application of such provisions to other air transportation, persons, classes of persons or circumstances shall not be affected thereby. § 234.8 Reporting of schedule arrival performance.

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(a) Each certificated route air carrier scheduling nonstop passenger flights between any of the 100 top-ranking pairs of points in terms of revenue-passenger volume as set forth in Table 6 "Domestic City-Pair Summary: Top-Ranked 1000 City Pairs in Terms of Number of Passengers" in the Board's "Domestic Origin-Destination Survey of Airline Passenger Traffic" shall, with respect to any such flights for each month, file in duplicate with the Board a "Monthly Report of Scheduled Arrival Performance on Designated Passenger Flights," CAB Form 438 (Rev. 5-69): Provided, That such report shall not be required with respect to flights between any pair of points which are less than 200 miles apart. The same information may be submitted on any comparable form prepared on automatic data processing equipment. Such substitute form shall be subject to Board approval and shall be submitted in duplicate and contain the same column headings arranged in the same sequence as CAB Form 438. During any period that a carrier's obligation to provide service between a pair of points is suspended by the Board, the report need not be filed for such pair of points. The report shall

1 CAB Form 438 (Rev. 5-69) is filed as part of the original document and can be obtained from the Publications Services Section, Civil Aeronautics Board, Washington, D.C. 20428.

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be filed within 45 days of the end of the month which it covers and shall be certified to be correct by a responsible officer of the reporting carrier.

(b) The pairs of points on which reports are to be filed are shown in the current "List of City Pairs for Use in Reporting on CAB Form 438," which is issued by the Board and revised from time to time as the need arises.

[ER-609, 35 F.R. 5942, Apr. 10, 1970]

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

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AUTHORITY: The provisions of this Part 235 issued under secs. 204, 406, 72 Stat. 743; 49 U.S.C. 1324, 1376.

SOURCE: The provisions of this Part 235 contained in ER-276, 24 F.R. 5602, July 11, 1956, unless otherwise noted.

§ 235.1 Definitions.

For the purpose of this part:

(a) "Applicable expenses" means all direct and indirect expenses attributable to the offering, preparation or presentation of the flight equipment for sale or delivery, including but not limited to: (1) Advertising expense;

(2) Broker's and saleman's expense and commissions;

(3) Packaging expense and other costs incident to preparation for shipment;

(4) Reconditioning, refurnishing, painting and other similar expenses;

(5) Transportation and shipping expenses;

(6) Overhaul expense;

(7) Legal fees and other administrative expenses.

(b) "Applicable taxes” means all federal, state, territorial and foreign taxes paid by or refunded to the carrier with respect to each gain or loss upon retirement of flight equipment, including capital gains taxes, deductions for capital losses, transfer taxes and documentary taxes.

(c) "Date of sale or other disposition" means the date on which the transfer or disposition of the flight equipment is final and complete and nothing remains to be done by the air carrier selling or disposing of the flight equipment to entitle it to payment of the consideration or value, regardless of the period over which actual payments are to be made.

(d) "Flight equipment" means airframes, aircraft engines, aircraft propellers, aircraft communications and navigational equipment, miscellaneous flight equipment, improvements to leased flight equipment and flight equipment rotable parts and assemblies, within the meaning of Part 241 (Accounts 1601 through 1608 and 1701 through 1708) of this subchapter.

(e) "Gain" means the amount by which the total proceeds (less applicable expenses and taxes) realized from the sale or other disposition of one or more units of flight equipment in a single transaction exceeds the total depreciated cost of the units of flight equipment sold or disposed of in that transaction: Provided, however, That no gain shall be considered as realized in the case of an exchange of like equipment or in the case of a recovery from the carrier's insurer on account of the loss or destruction of an aircraft, where the insurer exercises an option under the insurance policy to replace such aircraft in kind.

(f) "Investment in flight equipment" means the acquisition of flight equipment in any manner including purchase, exchange, construction, additions and improvements to flight equipment, or payment on account thereof.

(g) "Re-equipment fund" means cash or its equivalent and other liquid assets such as an obligation of the purchaser, a special bank deposit or investment in securities, segregated from the general assets of the air carrier and held for the exclusive purposes of purchasing or constructing flight equipment or retiring debt contracted for the purchase or construction of flight equipment.

(h) "Sale or other disposition" means the retirement of flight equipment by any means, including sale, exchange, abandonment, demolition, or other disposal of flight equipment.

§ 235.2 Eligibility for benefits of section 406(d).

Air carriers seeking to obtain the benefits of section 406(d) of the Federal

Aviation Act of 1958 with respect to all or part of any gain derived from the sale or other disposition of flight equipment, shall comply with the statutory requirements in the manner provided in this part.

§ 235.3 Reinvestment of gains.

The gain from the sale or other disposition of flight equipment shall be applied to investment in flight equipment or to the retirement of debt contracted for investment in flight equipment, or shall be deposited for such purposes in a re-equipment fund not later than 60 days after the date of such sale or other disposition and before the date on which the air carrier files the schedules required by § 235.4. The gain may not be invested in flight equipment delivered to the carrier prior to April 6, 1956. A gain realized prior to the adoption of this part shall be applied or deposited in the manner described herein not later than 60 days after the adoption of the part.

§ 235.4 Notice to Board.

Form 41 Schedule B-8(a) shall be filed by the air carrier, in triplicate, with the Board not later than 60 days after the date of the sale or other disposition of flight equipment from which the air carrier derived a gain. Form 41 Schedule B-7(a) shall also be filed, in triplicate, within the same period if the carrier has applied the gain for investment in flight equipment or to the retirement of debt contracted for investment in flight equipment. If the date of the sale or other disposition was on or after April 6, 1956, but prior to the date of the adoption of this part, the appropriate schedule(s) shall be filed not later than 60 days after the adoption of this part.

§ 235.5 Re-equipment fund.

(a) Any gains deposited in a re-equipment fund shall be applied to investment in flight equipment, or to the retirement of debt contracted for investment in flight equipment, not later than two years after the date of the sale or other disposition of flight equipment from which the air carrier derived the gain, unless the Board, for good cause shown, grants an extension of such time limitation. Gain invested in flight equipment delivered to the carrier prior to April 6, 1956, is not eligible for the benefits of section 406(d).

(b) Not later than 10 days after any change in the assets making up the reequipment fund, the air carrier shall report such change in an amended Schedule B-8(a). Not later than 60 days after the application of the gain deposited in a re-equipment fund, the air carrier shall file Form 41 Schedule B-7(a).

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

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(a) The first sentence of section 407 (e) of the Federal Aviation Act of 1958 is construed as follows: "The Board itself, or through duly accredited special agents or auditors, shall at all times have access to all lands, buildings, records and memoranda, including all documents, papers, and correspondence, now hereafter existing, and kept or required to be kept by air carriers; and any special agents or auditors employed for the purpose shall have authority, when so directed by the Board, to inspect and examine any and all such lands, buildings, equipment, accounts, records, and memoranda and to make such notes and copies thereof as he deems appropriate."

(b) The terms "special agent" and "auditor" are respectively construed to mean (1) any employee of the Bureau of Enforcement, and any other employee of the Board specifically designated by it or by the Director, Office of Facilities and Operations; and (2) any employee of the Field Audits Division, Bureau of Accounts and Statistics.

(c) The issuance in the form set forth below of an identification card and credentials to any such employee shall be construed to be an order and direction of the Board to such individual to inspect and examine the lands, buildings, equipment, accounts, records, and memoranda of air carriers in accordance with the terms of section 407 (e).

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The holder hereof is authorized to investigate violations of the FAA, as amended, collect evidence in cases in which the economic regulatory authority of the Civil Aeronautics Board is or may be involved and perform other duties imposed upon him by law.

Section 407 (e) of the Federal Aviation Act of 1958, as amended, together with Part 240 of the Regulations of the Civil Aeronautics Board, provides in part that the Board, through its duly accredited special agents or auditors, shall at all times have access to, and may inspect and examine, all lands, buildings and equipment of any air carrier and all accounts, records, and memoranda, including all documents, papers, and correspondence, and make copies thereof.

The issuance of these credentials to the holder hereof constitutes an order and direction on the part of the Civil Aeronautics Board to such individual to carry out these duties as aforesaid and as more fully described in Part 240 of the Board's Economic Regulations.

Failure to honor these credentials will result in penalties as provided by law.

UNITED STATES OF AMERICA
CIVIL AERONAUTICS BOARD
WASHINGTON, D.C.

(d) Any identification card and credentials heretofore issued to any such employee of the Board referring to section 407(e) or section 702(c) of the Civil

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