AUTHORITY: The provisions of this Part 298 issued under sections 204, 204(a), 403, 406, 407, 409, 411, 416, 901, 902, 72 Stat. 743, 753, 49 U.S.C. 1324; 72 Stat. 763, as amended by 76 Stat. 145, 80 Stat. 942, 49 U.S.C. 1376; 72 Stat. 766, 49 U.S.C. 1377; 72 Stat. 768, 49 U.S.C. 1379; 76 Stat. 769, 49 U.S.C. 1881; 72 Stat. 771, 49 U.S.C. 1386; 72 Stat. 783, as amended by 76 Stat. 149, 49 U.S.C. 1471; 72 Stat. 784, as amended by 75 Stat. 466, 76 Stat. 150, 76 Stat. 921, 49 U.S.C. 1472.

SOURCE: The provisions of this Part 298 contained in ER-574, 34 F.R. 7126, May 1, 1969, unless otherwise noted.

or property carried, in interstate, overseas or foreign air commerce."0

"Commuter air carrier" means an air taxi operator which (1) performs at least five round trips per week between two or more points and publishes flight schedules which specify the times, days of the week and places between which such flights are performed, or (2) transports mail by air pursuant to a current contract with the Post Office Department.

"Competitive market” means a pair of points between which 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 by reason of such certificate, and such authority has not been suspended, or by reason of an exemption authorization issued pursuant to section 416(b) (1) of the Act.

"Large aircraft" means an aircraft whose maximum certificated takeoff weight is greater than 12,500 pounds.

"Maximum certificated takeoff weight" means the maximum takeoff weight authorized by the terms of the aircraft airworthiness certificate. (This is found in the airplane operating record or in the airplane flight manual which is incorporated by regulation into the airworthiness certificate.)

"Maximum passenger capacity” means the maximum passenger capacity listed in the applicable Federal Aviation Administration (FAA) type certificate data sheet (including supplemental type certificates).

20 Section 401(a) of the Federal Aviation Act of 1958, 49 U.S.C. 1371, prohibits any person from engaging in "air transportation" except to the extent he is authorized to do so by the Board. Air transportation as defined in the Act (see section 101 (10) and (21), 49 U.S.C. 1301) refers to (1) the carriage of mail by aircraft, and (2) the carriage by aircraft of persons or property as a common carrier for compensation or hire. With respect to persons or property, the term "air transportation" includes "interstate," "overseas" and "foreign" air transportation. Operations wholly within the geographic limits of a single State are not considered “air transportation" if in those operations the carrier transports no more than a de minimis volume of traffic moving as part of a continuous journey to or from a point outside the State. For a further discussion of what constitutes air transportation, see the preamble to ER-574, pp. 10-11 (mimeo.), 34 F.R. 7124.

"Noncompetitive market" means а market which is not a "competitive market", as defined in this section.

"Point" when used in connection with any territory or possession of the United States, or the States of Alaska and Hawaii, means any airport or place where aircraft may be landed or taken off, including the area within a 25-mile radius of such airport or place; when used in connection with the continental United States, except Alaska, it shall have the same meaning except be limited to the area within a 3-mile radius of such airport or place: Provided, That for the purposes of this part, West 30th Street Heliport and Pan Am Building Heliport, both located in New York City, shall be regarded as separate points. [ER-574, 34 F.R. 7126, May 1, 1969, as amended by ER-601, 34 FR. 20421, Dec. 31, 1969]

(1) Do not, directly or indirectly, utilize in air transportation large aircraft (other than turbojet aircraft authorized for use by air taxi operators pursuant to § 298.21);

(2) Do not hold a certificate of public convenience and necessity or other economic authority issued by the Board;

(3) Have and maintain in effect liability insurance coverage in compliance with the requirements set forth in Subpart D of this part; and

(4) File with the Board's Docket Section a signed counterpart of CAB Agreement 18900 in the form attached hereto as Appendix B (CAB Form 263), and a tariff embodying the provisions of the counterpart in the form attached hereto as Appendix A (CAB Form 298-B), if required by Subpart G of this part."

The authority of air taxis to carry mail in Alaska is limited to the markets where regular service may be provided under this part.

CAB Forms 263 and 298-B are filled as part of the original document and can be obtained from the Publications Services Section, Civil Aeronautics Board, Washington D.C. 20428.

Provided, however, That any authority granted in this part to engage in the transportation of mail is limited to the carriage of mail on a nonsubsidy basis; i.e., on a service mail rate to be paid entirely by the Postmaster General, and the air taxi operator shall not be entitled to any subsidy payment with respect to any operations conducted pursuant to any authority granted in this part.

(b) A person who does not observe the conditions set forth in paragraph (a) of this section shall not be an air taxi operator within the meaning of this part with respect to any operations conducted by him while such conditions are not being observed, and during such periods is not entitled to any of the exemptions set forth in this part. [ER-574, 34 F.R. 7126, May 1, 1969, as amended by ER-621, 35 F.R. 7695, May 19, 1970]

In any instance where an air taxi operator is required by a foreign government to produce evidence of its authority to engage in foreign air transportation under the laws of the United States, the Secretary of the Board will, upon request, furnish the carrier with a written statement, outlining its general operating privileges under this part for presentation to the proper authorities of the foreign government.

§ 298.5 Separability.

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

Subpart B--Exemptions

§ 298.11

Exemption authority.

Air taxi operators are exempt from the following provisions of Title IV of the Act:

(a) Subsection 401(a);

(b) Section 403, except that the requirements of that section shall apply to (1) tariffs for through rates, fares, and charges filed jointly by air taxi operators and certificated air carriers; and (2) tariffs which embody the terms of the Interim Agreement (CAB 18900), approved by Board Order E-23680, May 13, 1966, and any amendment or amend

ments to such agreement which may be approved by the Board and to which the air taxi operator becomes a party, filed by air taxi operators subject to Subpart G of this part, in the form attached hereto as Appendix A. With respect to subparagraph (1) of this paragraph. Part 221 (other than § 221.176) of the Board's economic regulations (14 CFR Part 221) shall be applicable; with respect to this subparagraph (2), Part 221 of this chapter (other than § 221.176) of the Board's economic regulations shall be applicable, except to the extent that such regulations are inconsistent with the requirements herein.

(c) Subsection 404(a), except the requirements that air taxi operators shall provide safe service, equipment, and facilities in connection with air transportation; shall observe and enforce just and reasonable joint rates, fares, and charges, and just and reasonable classifications, rules, regulations, and practices as provided in tariffs filed jointly by air taxi operators and certificated air carriers; and shall establish just, reasonable, and equitable divisions of such joint rates, fares, and charges as between air carriers participating therein which shall not unduly prefer or prejudice any of such participating air carriers;

(d) Subsection 404(b), except that the requirements of that subsection shall apply to through service provided pursuant to tariffs filed jointly by air taxi operators and certificated air carriers; (e) Subsection 405(b);

(f) Subsections 407(b), (c), and (d);

(g) Subsection 108(a); except that no exemption is granted hereby for any air taxi operator to enter into any of the transactions or relationships prohibited by subsection 408(a) with any person who operates large aircraft for compensation or hire, or who engages in air transportation from which the air taxi operator is excluded by the limitations imposed by § 298.21.

NOTE: The above exemption is applicable to air taxi operations only. It does not relieve other persons subject to section 408 (a) from the obligations of that section with respect to any relationships they may have with respect to air taxi operators. For additional exemptions from section 408(a) applicable to air taxi operators, see Part 299 of the Board's Economic Regulations.

(h) Subsection 409(a); except that no exemption is granted hereby for any air taxi operator to enter into any of the relationships prohibited by subsection

409(a) with any person who operates large aircraft for compensation or hire, or who engages in air transportation from which the air taxi operator is excluded by the limitations imposed by § 298.21.

(i) Subsection 412(a): Provided, That air taxi operators shall not be relieved from filing with the Board a true copy, or, if oral, a true and complete memorandum of every contract or agreement (whether enforceable by provisions of liquidated damages, penalties, bonds, or otherwise) affecting air transportation, between any air taxi operator and any person (excluding air carriers) who operates for compensation or hire, aircraft having a maximum takeoff weight of more than 12,500 pounds.

[ER-574, 34 F.R. 7126, May 1, 1969, as amended by ER-621, 35 F.R. 7695, May 19, 1970; ER-709, 36 F.R. 22230, Nov. 23, 1971]

§ 298.12 Effect of exemption on antitrust laws.

The exemption granted in § 298.11 from sections 408, 409 (a), and 412 of the Act, shall not constitute an order under such sections, within the meaning of section 414 of the Act, and shall not confer any immunity or relief from operation of the "antitrust laws," or any other statute (except the Federal Aviation Act of 1958, as amended) with respect to any transrelationship, action, interlocking agreement otherwise within the purview of such sections.

or

The exemption from any provision of title IV of the Act provided by § 298.11 shall continue in effect only until such time as the Board shall find that enforcement of such provision would be in the public interest or would no longer be a burden on air taxi operators: Provided, That upon such a finding as to any air taxi operator or class of air taxi operators, such exemption shall to that extent terminate with respect to such operator or class of operators: And provided further, That the authorizations to air taxi operators to engage in the transportation of mail by aircraft within the 48 contiguous States, Alaska, and Hawaii shall terminate on June 30, 1974. [ER-589, 34 F.R. 15294, Oct. 1, 1969] § 298.14 Approval of certain interlocking relationships.

To the extent that any officer or director of an air taxi operator would be in

violation of any of the provisions of section 409(a) (3) and (6) by participating in interlocking relationships covered by the exemption granted in § 298.11(h), such participation is hereby approved by the Board, subject, however, to the provisions of § 298.12.

Subpart C-Limitations on Exemptions § 298.21 Scope of service authorized; geographical, equipment and mail service limitations, insurance and reporting requirements.

(a) General scope. Subject to the prohibitions of paragraphs (b), (c), (d), (f), and (g) of this section, the exemption authority provided to air taxi operators by this part shall extend to the direct air transportation of persons, property and mail (subject to the limitations imposed in §§ 298.3 (a) and 298.13) (1) in aircraft having a maximum takeoff weight of 12,500 pounds or less, and (2) in planeload charter flights in turbojet aircraft having a maximum certificated takeoff weight of over 12,500 pounds and under 27,000 pounds and a maximum passenger capacity of not more than twelve (12) persons: Provided, however, That the authorization in subparagraph (2) of this paragraph shall not be applicable to operations within the State of Alaska or Hawaii: And provided further, That the aircraft seat limitation in subparagraph (2) above shall not be applicable to the carriage of mail. For purposes of this section, "charter flight" means air transportation performed by an air taxi operator on a time, mileage or trip basis where the entire capacity of one or more aircraft has been engaged (i) for the movement of persons and property (a) by a person for his own use, or (b) 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/or their property, as agent or representative of such group, or (ii) for the transportation of mail for the Post Office Department.

The carriers are cautioned that the safety regulations of the FAA applicable to air taxi aircraft in excess of 12,500 pounds may be different from those applicable to aircraft weighing 12,500 pounds or less and that, as in the case of all operations conducted under this part, the operations with aircraft in excess of 12,500 pounds must be conducted pursuant to applicable safety regulations,

(b) Prohibition of regular service in markets served by certificated helicopter carriers. 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 such transportation regularly or with a reasonable degree of regularity between any points where scheduled helicopter passenger service, or community center and interairport service, is provided by the holder of a certificate of public convenience and necessity either in accordance with such certificate or pursuant to exemption order of the Board: Provided, however, That, subject to the provisions of paragraph (e) of this section, the foregoing limitation shall not apply to an air taxi operator with respect to pairs of points it has served continuously and without interruption (except for involuntary interruption of service for reasons such as those specified in § 205.8 of this chapter) on a regularly scheduled basis with a minimum of five round trips per week since at least 30 days immediately prior to the inauguration or resumption of service between points by the holder of a certificate of public convenience and necessity (See also paragraph (d) of this section): And provided, further, That the foregoing proviso shall not apply where service by the holder of a certificate of public convenience and necessity has been suspended during such 30-day period for involuntary postponement of inauguration or involuntary interruption of service under the provisions of § 205.8 of this chapter or where the Board authorizes a certificated carrier to suspend or postpone inauguration of service in an order providing that the suspension or postponement shall not operate to authorize air taxi operators inaugurating service during such suspension or postponement to continue service after the certificated carrier resumes or inaugurates service.

(c) Air taxi service in Alaska. No service in air transportation shall be offered or performed by an air tax operator between points both of which are in the State of Alaska, or one of which is in Alaska and the other in Canada, unless the air taxi operator also holds authority from the State of Alaska to operate aircraft of a maximum takeoff weight not over 12,500 pounds as a common carrier in intrastate commerce, or has applied to the Board for, and received, special exemption authority (see Subpart D of Part 302 of the procedural regulation):

Provided, That the operator is prohibited from rendering the above authorized service in air transporation, or holding out to the public expressly or by course of conduct that it renders such service, regularly or with a reasonable degree of regularity between points where a certificated carrier schedules two or more single-plane round trips per week, including flag stops.

(d) Limitation on use of helicopter, STOL or VTOL aircraft. No service by helicopter, STOL, or VTOL aircraft shall be offered or performed by an air taxi operator between any two points between which scheduled helicopter, STOL, or VTOL aircraft service is provided by the holder of a certificate of public convenience and necessity authorizing scheduled helicopter service or community center and interairport service: Provided, however, That the foregoing limitation shall not apply to an air taxi operator with respect to pairs of points it has served continuously and without interruption (except for involuntary interruption of service for reasons such as those specified in § 205.8 of this chapter) on a regularly scheduled basis with a minimum of five round trips per week since at least 30 days immediately prior to the inauguration or resumption of service between the points by the holder of a certificate of public convenience and necessity (See also paragraph (b) of this section): And provided, further, That the foregoing proviso shall not apply where service by the holder of a certificate of public convenience and necessity has been suspended during such 30-day period for involuntary postponement of inauguration or involuntary interruption of service under the provisions of § 205.8 of this chapter or where the Board authorizes a certificated carrier to suspend or postpone inauguration of service in an order providing that the suspension or postponement shall not operate to authorize air taxi operators inaugurating service during such suspension or postponement to continue service after the certificated carrier resumes or inaugurates service.

(e) Filing of notice of inauguration of service; publication and filing of flight schedules. An air taxi operator which intends to inaugurate service on a regularly scheduled basis with a minimum of five round trips per week pursuant to the provisions of paragraph (b) of this section shall file a notice with the Director, Bureau of Operating Rights, as to the