(b) That goods or services are to be supplied to the airline and the airline is to be required to furnish air transportation to the supplier during a specified period of time which shall not extend more than one year from the effective date of the trade agreement;

(c) That the airline shall not be obligated to furnish any air transportation under a trade agreement unless such transportation is requested and furnished within the period specified therein. Any such agreement may provide, however, that in the event the agreement is terminated by the Board pursuant to § 225.7, the airline shall pay in cash (except to the extent the order of the Board terminating such agreement may permit all or any part, as specified in the order, of such excess to be paid in air transportation) any excess value of goods or services received thereunder prior to such termination over the value of the air transportation it has furnished under the agreement prior thereto;

(d) That in the event the air carrier at the time of expiration of the period during which goods or services are to be supplied to it, or at the time of termination of the agreement pursuant to 225.7, has furnished air transportation having a value in excess of the value of the services or goods which it has received prior to such termination or the end of such period, such excess shall become payable, within not more than 90 days after such expiration or termination, to the airline in cash, goods, or services, or any combination thereof, as the parties may agree either in the original agreement or upon such expiration or termination (except to the extent any order of the Board terminating the agreement may require that all or any part, as specified in the order, of such excess shall be payable only in cash or within a different period);

(e) That, except to the extent provided in paragraph (d) and the last sentence of paragraph (c) of this section, the agreement shall immediately be terminated if at any time the Board shall issue an order to that effect pursuant to § 225.7;

(f) That the air transportation to be furnished pursuant to the agreement shall be used only by the supplier, his officers, directors, employees and their immediate families;

(g) That such air transportation shall not be transferable and shall be used

only by the individuals identified or described in the agreement;

(h) That the published individual tariff rates, fares, and charges of the airline applicable at the time air transportation is furnished shall be used in determining the value of such transportation;

(i) That such agreement will be terminated by the air carrier immediately upon its discovery that air transportation issued under the agreement has been used by an individual not identified or described in the agreement, any excess in values resulting from transactions under the agreement prior to such termination to be settled as provided in paragraph (d) and the last sentence of paragraph (c) of this section;

(j) That the total value of air transportation furnished pursuant to the agreement shall not exceed a fixed amount stated therein;

(k) That the supplier will furnish to the Board such complete and accurate information as it or the airline shall reasonably request concerning the prices for, the value of, and the nature of the services or goods for advertising purposes only supplied or to be supplied to the airline, and the prices which it would customarily charge to others for similar services or goods;

(1) That trunkline air carriers defined in § 225.1(a)(2) shall exchange air transportation only over those certificated routes on which they receive subsidy and only for services or goods for advertising purposes which advertise air transportation over such subsidized routes;

(m) That certificated air carriers defined in § 225.1(a) (4) shall exchange only air transportation conducted between points within the State of Alaska (but not between points on a route between Alaska and other States of the United States unless the air carrier is also authorized to serve such points on a route located wholly within Alaska) for advertising services or goods advertising only air transportation between such points within the State of Alaska; and

(n) That certificated air carriers defined in § 225.1(a) (6) shall exchange only scheduled air transportation conducted with other than fixed-wing aircraft for advertising services or goods advertising only scheduled air transportation by other than fixed-wing aircraft.

§ 225.7

Suspension or termination of trade agreements by the Board.

If at any time after the filing of a trade agreement in accordance with § 225.2 the Board shall have doubt that the transaction is in the public interest, the Board may serve upon the airline an order directing it to show cause why such trade agreement should not be terminated. Upon service of such order performance of the agreement shall, unless otherwise provided in the order, immediately be suspended, and shall not thereafter be commenced or resumed unless and until the Board shall, after hearing upon such order, or other final determination of the matter, permit performance of the trade agreement to be commenced or resumed.

§ 225.8 Exemption from tariff and other requirements.

With respect to air transportation furnished in accordance with the provisions of this part, every airline shall, in connection with the making or performance of trade agreements, be exempt from the provisions of Part 221 of this subchapter and any other regulations hereafter adopted by the Board insofar as any such regulation shall require tariffs to show classifications, rules, regulations, practices, and services, and from the provisions of section 403(b) of the Act only insofar as such provisions would otherwise require that such airline shall not charge or demand or collect or receive a greater or different compensation for the air transportation which it is to furnish pursuant to a

trade agreement, or for any service in connection therewith, than the rates, fares and charges specified in its currently effective tariffs.

§ 225.9 Furnishing of transportation.

(a) Prior to the effective date of any trade agreement entered into under this part, the supplier shall furnish the airline with a list of the individuals who are to use the air transportation to be furnished; provided that changes in the identity of the individuals who are to use the air transportation or other revisions in the list may be made by the supplier after the effective date of the agreement upon prior written notice to the airline;

(b) The airline shall issue to each of the individuals listed an identification card which clearly identifies the individual and states thereon that he is entitled to use transportation furnished pursuant to the named trade agreement during a stated period;

(c) Tickets covering transportation furnished under a trade agreement shall (1) be issued upon the demand of the supplier only; (2) be clearly marked "Non-Transferable"; and (3) be used only by an individual who has previously been issued an identification card described in paragraph (b) of this section;

(d) The airline shall make such other arrangements and provisions as are necessary to ensure that air transportation furnished will not be used by anyone except the individuals identified or described in the agreement; and

(e) No transportation shall be furnished under a trade agreement except in accordance with a ticket issued therefor.

§ 225.10 Accounts and records.

(a) Each airline availing itself of the provisions of this part shall maintain a record of each trade agreement entered into, which record shall be filed in such manner as to be accessible and convenient for examination, and shall contain the following information: (1) The date received and the amount of goods or services supplied; (2) the names and addresses of individuals to whom identification cards were issued under the trade agreement; and (3) the date furnished and the amount of the air transportation furnished under the trade agreement. All correspondence or memorandums relating to trade agreements shall be retained and made a part of the carrier's records; and

(b) In accounting for and reporting financial and traffic data in accordance with Part 241 of this subchapter (the Board's Economic Regulations):

(1) Advertising received in accordance with a trade agreement shall be billed and recorded in the carrier's expense accounts at the going market rate;

(2) Air transportation services provided in accordance with a trade agreement shall be billed and recorded in the carrier's accounts in accordance with its published tariffs. Such amounts shall be carried in the normal revenue account; and

(3) Upon termination of a trade agreement, a reduction shall be made in the carrier's expense accounts to the extent, if any, that the value of advertising services received shall exceed the value of transportation services performed in return therefor, unless such balance is settled in cash, goods, or services of equivalent value.

§ 225.11 Value of air transportation.

For the purposes of this part, the published tariff rates applicable at the time air transportation is furnished pursuant to a trade agreement shall be used in determining the value thereof.

§ 225.12 Value of advertising goods and

For the purpose of this part:

(a) "Furloughed military personnel" means all military personnel of the armed forces of the United States, which are: (1) On an active duty status, (2) stationed outside the continental United States and traveling thereto or domiciled in one of its territories or possessions and traveling thereto, and (3) traveling at their own expense while on official furlough, leave, pass or other authorized absence from duty.

(b) "Reduced rate transportation" means the carriage by a carrier subject to the provisions of this part of any furloughed military personnel or members of the immediate family of military personnel on active duty status and stationed outside the continental United States, for compensation specified in the applicable tariff of such a carrier relating thereto, which compensation is less than that specified in other tariffs of the carrier which would otherwise be applicable.

(c) "Open-jaw trip" shall mean travel which is essentially of a round-trip nature, but the outward point of departure and inward point of arrival and/or outward point of arrival and inward point of departure of which are not the same.

(d) "Immediate Family" means the spouse and dependent children, living in the same household, of a member of the Armed Forces of the United States who is on active duty status and stationed outside the continental United States. [ER-208, 21 F.R. 265, Jan. 13, 1956, as amended by ER-346, 27 FR. 466, Jan. 17, 1962] § 227.2

Conditions governing the furnishing of reduced-rate transportation.

Subject to compliance with the other provisions of this Part and with the limitations imposed in an air carrier's certificate of public convenience and necessity, issued under section 401 of the Act; in the applicable regulation or order of the Board authorizing an air carrier's operation; or in a foreign air

carrier's foreign air carrier permit issued under section 402 of the Act, any air carrier or foreign air carrier may furnish reduced-rate transportation to:

(a) Furloughed military personnel traveling on through tickets calling for overseas or foreign air transportation.

(b) Members of the immediate family of furloughed military personnel traveling on through tickets calling for overseas or foreign air transportation: Provided, That such members are accompanied on the trip by such military personnel.

(c) Members of the immediate family of military personnel traveling on a oneway through ticket calling for overseas or foreign air transportation from an overseas or foreign point to the United States, its territories or possessions. [ER-346, 27 FR. 466, Jan. 17, 1962]

(a) No air carrier or foreign air carrier shall sell reduced-rate tickets or furnish reduced-rate transportation, pursuant to this part, to military personnel of the armed forces of the United States unless such personnel: (1) Have in their possession and display, both at the time of sale and at the time when transportation is furnished, their official identification card; (2) have in their possession and display, at the time when transportation is furnished, an authorized furlough, leave, pass or other document evidencing authorized absence from duty and (3) execute and deliver to the representatives of the carrier, at the time of sale, a declaration of eligibility reading as follows:

I declare that I am a member of the United States armed forces on active-duty status and I will be traveling to the United States (to my domicile in case of travel to a territory or possession of the United States) at my own expense while on furlough, leave, pass or other authorized absence from my activeduty station.

(Signed)

(Grade)

(Branch of Service) (Service Number)

(b) Identification of members of the immediate family. No air carrier or foreign air carrier shall sell reduced-rate tickets or furnish reduced-rate transportation, pursuant to this Part, to the immediate family of any member of the Armed Forces of the United States unless such member shall execute and have countersigned by his Commanding Officer and deliver to the representatives of the carrier at the time of sale a declaration of eligibility reading as follows:

I declare that I am a member of the United States Armed Forces on active duty status and stationed outside the continental United States and that I am purchasing a ticket or tickets for who is (are)

my spouse and dependent child (children) and who live(s) in my household for travel in foreign or overseas air transportation.

Notice of termination or modification of embargo.

228.6 Rule of construction.

AUTHORITY: The provisions of this Part 228 issued under secs. 204, 404, 407, 72 Stat. 743, 760, 766; 49 U.S.C. 1324, 1374, 1377.

SOURCE: The provisions of this Part 228 contained in ER-239, 23 F.R. 8788, Nov. 13. 1958, unless otherwise noted.

or

commodities, types or classes of property to which the embargo is applicable, and set forth the area, routes, or points affected, the date of its application and the duration if known, together with the reasons for the application of said embargo. If the embargo is applicable only to property transported on certain types of equipment, the equipment types and flights subject to such embargo shall be specified. In addition, the notice shall specify the date and hour that it was posted in accordance with § 228.4.

§ 228.4 Nature of public notice.

The embargo notice required by this part shall be posted in a conspicuous and public place at each of the carrier's offices where property of the kind affected by the embargo can reasonably be expected to be received. Such notice shall be posted immediately and, unless circumstances beyond the control of the air carrier necessitate a later posting thereof, in no event less than 24 hours before the embargo becomes effective. Upon posting of said notice, one copy thereof shall be sent to each connecting carrier which may be affected by the embargo and two copies shall be mailed to the Tariffs Section of the Civil Aeronautics Board at Washington, D.C. When a notice is not posted 24 hours or more before an embargo takes effect, the air carrier shall attach to the copies mailed to the Board a brief explanation of the circumstances which necessitated the late posting of the notice.

Schedule pages.

231.5 231.6

231.7

Additions and changes.

Number of copies; filing address.
Effect of fling.

AUTHORITY: The provisions of this Part 231 issued under secs. 204, 405, 72 Stat. 743, 760; 49 U.S.C. 1324, 1375.

§ 231.1 Filing of general schedules.

Each air carrier authorized to engage in air transportation shall file with the Board a statement, to be known as a "general schedule," showing the points between which the air carrier is authorized to engage in air transportation, all schedules of aircraft which will be operated by the air carrier between such points on the date the general schedule is to become effective, the time of arrival and departure at each point, and the frequency of each schedule. Prior to the date it engages in any scheduled air transportation each such air carrier shall file a general schedule with the Board. [ER-449, 30 F.R. 14971, Dec. 3, 1965] § 231.2

Form of schedules.

All general schedules and revised pages thereof shall be in loose-leaf form, with sheets 82 by 11 inches in size, and shall be printed, typewritten, planographed, stereotyped, mimeographed, or prepared by other similar durable process, in a clearly legible manner on durable paper in not less than 6-point type. One side