ule shall embrace for all air carrier groups direct maintenance, and depreciation expenses applicable to general ground properties recorded in subfunction 5200 Direct Maintenance, exclusive of account 78 Direct MaintenanceFlight Equipment, plus subaccount 75.9 Depreciation-General Ground Property and, in the case of Group I route air carriers, expenses recorded in function 6900 General Services and Administration and, in the cases of Group II and Group III air carriers, expenses recorded in functions or subfunctions of 6400 Aircraft and Traffic Servicing and 6700 Promotion and Sales.

(d) Line 1 shall reflect the aggregate expenses incurred at all airports, or other geographic locations, served in nonscheduled services only and related traffic offices. Downtown traffic offices maintained at off-line points for the purpose of selling or soliciting traffic for scheduled services shall be considered as on-line installations. Line 2 shall reflect "Regional and System" expenses, which are those directly chargeable to administering activities performed at a number of different localities. For this purpose expenses attaching to such as central space control installations and centralized inter-airport flight control installations shall be considered "Regional and System" expenses.

(e) Column 1, "Location" shall reflect in alphabetic sequence the name of each certificated point served by the air carrier under certificates of public convenience and necessity, subdivided to reflect in alphabetic order the name of each airport through which each certificated point is served and, in a separate group, the name of each city at which off-line traffic offices, maintained for the purpose of selling or soliciting traffic for scheduled services, are located.

(f) Column 2, "Number of Employees" shall reflect the number of persons employed at each on-line airport and all city traffic offices maintained at each point during the payroll period nearest the 15th of the last month of the quarter. (g) Expenses which are directly chargeable to activities performed at each specific locality shall be entered in the indicated classification directly opposite its name; other expenses applicable to each certificated point shall be entered in the indicated classifications opposite the name of each certificated point; and expenses applicable to each

noncertificated point where installations are maintained or used for certificated services shall be entered in the indicated classifications opposite its name.

Schedule P-10-Payroll

(a) This schedule shall be filed by all route air carriers.

(b) Separate sets of this schedule shall be filed for personnel employed within the Continental limits of the United States and for personnel employed, by each separate operating entity of the air carrier, who are employed outside the Continental limits of the United States. Flight personnel and other personnel subject to travel shall be reported in accordance with the location at which normally based.

(c) Column 3, "Number of Employees" shall reflect, for each classification in column 1 the number of full and parttime employees, both permanent and temporary, who worked or received pay for any part of the pay period (s) ending nearest the 15th day of the last month of the quarter whether paid weekly, monthly or otherwise.

(d) Column 4, "Total All Employees" shall reflect expansions to annual rates of the amounts of compensation paid each person included in column 3 for the payroll period ended nearest the 15th day of the last month of the quarter. Compensation shall include total pay, including overtime, paid sick leave, holidays and vacations but shall exclude bonuses (unless earned and paid regularly each pay period) and cash payments for vacations not taken.

(e) Column 5, "Average per Employee" shall reflect the averages obtained by dividing the amount of compensation shown in column 4 by the number of employees reported in column 3.

(f) Data with respect to each employee shall be included in the classification to which most of his salary is charged, even though the compensation of such employee is normally prorated to two or more classifications.

(g) The term "payroll period" denotes the collective payroll periods of various groups of employees, irrespective of the difference in the length of the pay periods. The amounts reported in this schedule may, therefore, represent a composite of data relating to two or more separate payrolls covering different periods of time, although the data with

respect to any one group of employees shall not reflect more than one payroll period.

Schedule P-41-Taxes

(a) This schedule shall be filed by all route air carrier groups.

(b) A single set of this schedule shall be filed for the overall corporate or other legal entity comprising the air carrier.

(c) This schedule shall reflect in the detail indicated the taxes levied against the air carrier paid or accrued during the accounting year.

(d) The "Grand Total" of taxes reported on this schedule shall agree with the sum of the amounts reported in accounts 68, 69, and 93.9 for the 12 months ended December 31.

Interim Income Statement

(a) Each route air carrier shall file each month two copies of a monthly income statement, which may be in the form prepared for management purposes. Such income statement need not show a separation of revenues and expenses between operating entities unless such a separation is generally prepared for management purposes.

(b) An income statement for the third month of the fourth calendar quarter need not be filed if the preliminary fourth-quarter Form 41 report is filed within a 30-day period rather than the prescribed 40-day period.

[ER-327, 26 F.R. 4222, May 16, 1961, as amended by ER-369, 27 F.R. 12820, Dec. 28, 1962; ER-417, 29 F.R. 13531, Oct. 1, 1964; ER-435, 30 F.R. 7704, July 15, 1965, ER-437, 30 F.R. 8830, July 14, 1965]

Section 25-Traffic and Capacity
Elements

General instructions. (a) The prescribed reporting for traffic and capacity elements is designed to reflect, on a uniform basis, the physical factors relating to air transport operations as actually conducted. Schedules T-1 through T-41, reflecting traffic carried, capacity operated and other operating statistics, correlate similar information for the various services regardless of the schedule on which reported. The four-letter codes used on Schedules T-1, T-2 and T-3 are systematically assigned for each item of information to facilitate use of

the data irrespective of the schedule in which they appear. Thus, the first digit of the four-letter code denotes basic class of service; for example, 1xxx indicates scheduled First-Class Services, 2xxx Scheduled Coach Services, 8xxx Nonscheduled Services and 9xxx All Services. The second digit denotes the basic operating element involved; for example, x0xx indicates passenger count, x1xx passenger-miles and x9xx unclassified. The last two digits denote the particular detailed operating element involved; for example, xx11 indicates firstclass passengers/passenger seats, xx18 nonrevenue passengers, and xx31 through xx53 nonpassenger revenue traffic classes.

(b) When the same item is required to be reported on a monthly, quarterly and/or 12-month basis, the 12-month total shall agree with the sum of the quarterly or monthly data reported for the 12-month period, and the quarterly total shall agree with the sum of the monthly data reported in the quarter, whether the data are reported on the same or different schedules.

(c) All statistics to be reported on these schedules shall be compiled in accordance with the definitions set forth in section 03 Definitions for Purposes of this System of Accounts and Reports. In principle, elements which are common to different statistics, shall be measured on a consistent basis for all statistics of which they are a component. Thus, all passenger-mile, seat-mile, ton-mile, and aircraft mile statistics applicable to a particular service or operation shall be compiled on a direct airport-to-airport mileage basis in terms of a consistent measurement of aircraft movement by flight stages. Similarly, all scheduled mileages and all scheduled departures shall be compiled as each flight is scheduled to be performed pursuant to the air carrier's published flight schedules, while scheduled miles performed and scheduled departures performed shall both be compiled in accordance with the pattern through which each point scheduled for service is actually served. Consistent with this principle, all statistics pertaining to actual operations shall be compiled in terms of each flight stage as actually performed.

(d) As a general rule, the traffic and capacity measurements to be reported on these schedules are designed to represent the physical operations reflected by the revenues and expenses, respectively, for the same period. Thus, except as separately provided for, aircraft capacity elements associated with deferred costs are not to be included in reported statistics whereas the revenue traffic elements associated with flights for which costs but not revenues are deferred shall be reported as if carried on other flights and the amounts so included shall be disclosed by footnote to the applicable item. For purposes of reporting by aircraft types on schedules T-3 and T-4 small single-engine aircraft types may be grouped in accordance with the instructions in section 24, schedules P-5.1 and P-5.2, paragraph (d).

Schedule T-1-Monthly Statement of Summarized Traffic and Capacity Statistics

Schedule T-2-Monthly Statement of Scheduled Services Traffic and Capacity Statistics

(a) These schedules shall be filed by all route air carriers.

(b) Separate sets of these schedules shall be filed for each separate operating entity of the air carrier.

(c) Two sets of these schedules shall be filed each month for each operating entity. One set for each schedule shall reflect the indicated data applicable to the current month. The other set for each schedule shall reflect the indicated data applicable to the twelve months ended with the current month. shall be inserted in the box designated "Mo" at the head of each column of the report covering monthly data. An "x" shall be inserted in the box designated "Yr" at the head of each column of the report covering 12-month data.

An “x”

(d) The indicated data shall be reported on these schedules for each class of service performed by the air carrier with both owned and rented aircraft including aircraft of others used on the air carrier's routes under interchange agreements. These schedules, except to the extent otherwise specifically provided for, shall not include traffic or capacity statistics related to flight facilities used

by other air carriers, the revenue from which is includible in profit and loss accounts 11 Rents, 13 Interchange SalesAssociated Companies, 15 Interchange Sales Outside, or 18 Other Incidental Revenues. Traffic and capacity statistics shall not be included in these schedules for interrupted traffic of the air carrier where the responsibility for the forwarded traffic becomes that of other carriers, thus conforming to the provision that the direct cost of forwarding traffic by others, as a result of interrupted trips, shall be charged to the appropriate revenue account.

(e) All mileage data shall be based upon direct airport-to-airport distances as distinguished from course-flown distances. Miles performed and traffic carried on flights scheduled to begin in one month and terminate in the next shall be included in the month in which the flight is scheduled to depart, provided that such flights in territorial and international operations shall not be considered to extend beyond the first crew change point.

(f) All utilization and performance factors and average load data shall be computed one place beyond the decimal point.

(g) Item 016, "Number of Revenue Passenger Originations" shall reflect an unduplicated count of passengers originating journeys on the lines of each reporting entity. (See section 03-Passenger originations.)

(h) Item 017, "Number of Revenue Passenger Enplanements" shall reflect a count of the total number of passengers boarding aircraft. This count may be measured on the basis of a standard number of passenger enplanements per on-line originating passenger.

(i) Item 217 "Passenger" ton-miles shall be computed at the standard passenger weights (including free baggage) set forth in section 03 in the definition for "weight, passenger". The prescribed passenger weights may be reviewed from time to time upon request of individual air carriers, or upon the Board's initiative, and other weights may be prescribed in specific instances.

(j) Item 253, "Excess Baggage" tonmiles may be determined either by direct computation from flight records or, fol

lowing approval by the Civil Aeronautics Board, by application of appropriate standards.

(k) Item 997, "Number of Employees based in Continental United States" shall reflect the total number of full and part-time employees, both permanent and temporary, who worked or received pay for any part of the pay period (s) ending nearest the 15th day of the month, whether paid daily, weekly, monthly or otherwise, and who were based in Continental United States. Persons based in the United States but employed on transoceanic flights should be included. Include salaried officers of the corporation and employees on paid sick leave, holidays and vacations but do not include pensioners, members of the armed forces, or persons on leave of absence without pay.

(1) Item 998, "Number of Employees Based Outside Continental United States" shall reflect the total number of employees who were assigned to locations outside Continental United States.

(m) Item 999, "Total Number of Employees" shall reflect the sum of items 997 and 998.

(n) The filing of Schedule T-2 is waived for those reporting entities operating a single class of scheduled service, provided the class of service operated is identified in the heading of the "All Scheduled Service" column of schedule T-1.

Schedule T-1(a)-Monthly Statement of Traffic and Capacity Statistics by Component Operations

(a) These schedules shall be filed by all route air carriers.

(b) Separate sets of this schedule shall be filed for each reporting entity of the air carrier (see section 21(i)) which covers, in scheduled or nonscheduled services, more than one of the categories of "domestic", "territorial" or "international" operations, as defined in section 03. Carriers not filing schedule T-1(a) shall add the word "exclusive" to the description of the operation in the heading of each column on schedule T-1.

(c) Two sets of these schedules shall be filed each month for each operating entity. One set of each schedule shall

reflect the indicated data applicable to the current month. The other set of each schedule shall reflect the indicated data applicable to the twelve months ended with the current month. An “x” shall be inserted in the box designated "Mo" at the head of each column of the report covering monthly data. An “x” shall be inserted in the box designated "Yr" at the head of each column of the report covering 12-month data.

(d) The indicated data shall be reported for all operations of the reporting entity in the column designated "Total" and for the "domestic", "territorial", and "international" operations, as defined in section 03, encompassed by such entity in the separate columns provided therefor. For purposes of reporting on this schedule, domestic flight stages operated between points where authorized service is restricted to international or territorial traffic and which are an integral part of such international or territorial operation, shall be combined therewith. The reporting entity as set forth in section 21(i), shall be identified in each column opposite the heading "Operation". Each item on this schedule shall be reported on the same basis as the corresponding item reported on schedule T-1. The amounts, except for "Number of revenue passenger originations", reported for each item in the "Total" column under "Scheduled Services" and "Nonrevenue Flights", respectively, shall agree with the corresponding amounts reported in the "All Scheduled Services" and "All Services" columns, respectively, of schedule T-1. The amounts reported for each item in the "Total" column under "Nonscheduled Services" shall agree with the sum of the corresponding amounts reported in the "Irregular Services Excluding Charter" and "Charter Service" columns of schedule T-1.

(e) The digit after the decimal in the code assigned each item on this schedule is for CAB control purposes. "Domestic" operations are, for all items, denoted by the decimal digit "1", "Territorial" operations by the decimal digit “2” and "International" operations by the decimal digit "3". The balance of each code number corresponds to the codes assigned to corresponding items reported on schedules T-1 and T-3, except for the

prefix "8" in the code assigned nonscheduled services which represents an aggregation of "Irregular Services Excluding Charter" and "Charter Services" reported on schedule T-1.

Schedule T-3-Quarterly Statement of Aircraft Operating Statistics

(a) These schedules shall be filed by all route air carriers.

(b) Separate sets of this schedule shall be filed for each separate operating entity of the air carrier.

(c) Two sets of this schedule shall be filed each quarter for each operating entity. One set shall reflect the indicated data applicable to the current quarter. The other set shall reflect the indicated data applicable to the twelve months ended with the current quarter. An "x" shall be inserted in the box designated "Qr" at the head of each column of each report covering quarterly data and an "x" shall be inserted in the box designated "Yr" at the head of each column of each report covering 12month data.

(d) Data applicable to each aircraft type operated by the air carrier shall be reported in separate columns of this schedule and each aircraft type for which report is being made shall be identified at the head of each column in the space provided opposite "Aircraft Type": Provided, however, Each air carrier may group, on a uniform basis, data applicable to small single-engine aircraft of approximately equivalent size. Refer to section 24 schedules P-5.1 and P-5.2, paragraph (d), for policy regarding the grouping of small aircraft types. All other aircraft types, including larger single-engine and small twin-engine types are to be separately reported. Aircraft not generally used in revenue service shall be reported in a group as a single type. For purposes of reporting on this schedule, versions of each aircraft type designed exclusively for cargo services, and only incidentally for passenger service, shall be considered as distinct aircraft types.

(e) All mileage data shall be based upon direct airport-to-airport distances as distinguished from course-flown distances in accordance with the instructions relating thereto on schedules T-1 and T-2. Mileage related to flights

which are not measurable in terms of airport-to-airport distances shall be determined by applying a typical airport-to-airport speed for each aircraft type to the aircraft hours flown by each aircraft type in such flights.

(f) All aircraft hours data shall be based upon the time each aircraft becomes airborne on take-off to the time of ground contact upon landing and shall be included in the month in which the aircraft miles to which related are reported. Aircraft hours flown, items 9668 through 9679, shall include hours flown for which related costs have been charged directly against income during the current accounting period and shall not include hours flown applicable to costs which have been deferred. Such hours shall be reported in item 9978, "Aircraft Hours in Capitalized Projects". Refer to paragraph (d) of the General Instructions for reporting Traffic and Capacity Elements for policy regarding flights for which costs are capitalized. Minutes or fractional hours shall not be shown in reporting aircraft hours.

(g) Each air carrier shall submit to the Civil Aeronautics Board a detailed statement of its method of computing available ton-miles and available seatmiles for each type of aircraft operated. Also, any future changes in methods of computation shall be submitted, subject to review and approval by the Civil Aeronautics Board. (See section 22(d).) The measurement of available aircraft capacity may reflect company minimum fuel requirements in lieu of the requirements under Civil Air Regulations, provided that the use of such company fuel requirements is indicated in the above statement and that the statement contain certification by a responsible company official that said fuel loads are not in excess of company safety requirements. The reason for exclusion of any installed seats in the computation of available seat-miles with respect to any aircraft type and the provisions made for protecting against the sale of such seats, shall be described in this statement and shall be certified to by a responsible company official. (See section 03 "seats available".)

(h) Item 9680, "Aircraft Days Assigned to Service-Carrier's Equipment"