79.8

(d) Items 79.6 Applied Maintenance Burden-Flight Equipment and Applied Maintenance Burden-General Ground Property, respectively, shall reflect a memorandum allocation by each air carrier of the total expenses included in subfunction 5300 Maintenance Burden between maintenance of flight equipment (by aircraft types) and maintenance of ground property and equipment (exclusive of maintenance equipment and maintenance buildings for which costs are included in subfunction 5300). Where airframe and aircraft engine overhauls are accounted for on the accrual basis to produce a matching of costs with the operation of aircraft, the allocation of maintenance burden shall give effect to charges and credits to profit and loss account 5272 Flight Equipment Airworthiness Provisions in order to effect an equitable allocation of such maintenance burden costs. Each supplemental air carrier shall file with the Civil Aeronautics Board a statement as a supplement to this schedule in which the procedures to be followed in allocating maintenance burden are fully explained.

Revisions in such allocation procedures shall not be effected for 30 days following written notice to the Civil Aeronautics Board. (See section 32(d).)

At the option of the supplemental air carrier, standard burden rates may be employed for quarterly allocations of maintenance burden provided the rates are reviewed at least once each accounting year and the amounts allocated are adjusted to reflect the actual costs incurred for the full accounting year.

Any differences between actual burden costs incurred during each quarter and amounts applied at standard rates shall be entered as item 79.9 Over or Under Applied Burden.

(e) The sum of the totals of subfunctions 5200 Direct Maintenance and 5300 Maintenance Burden shall agree with the corresponding amount reported in function 5400 on schedule P-1.1. The total of function 6900 General Services and Administration reported in this schedule by supplemental air carriers shall agree with the corresponding amount reported on schedule P-1.1.

Interim Income Statement

(a) Each supplemental air carrier shall file each month two copies of a monthly income statement, which may be in the form 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 411 report is filed within a 30-day period rather than the prescribed 40-day period.

[ER-369, 27 F.R. 12824, Dec. 28, 1962; as amended by ER-417, 29 F.R. 13533, Oct. 1, 1964]

Section 35-Traffic and Capacity Elements

General Instructions

(a) The prescribed reporting for traffic and capacity elements is designed to reflect the physical factors related to air transport operations as actually conducted.

(b) All statistics to be reported in the following 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, tonmile and aircraft-mile statistics applicable to a particular service or operation shall be compiled on a direct airport-toairport mileage basis in terms of a consistent measurement of aircraft movement by flight stages. All statistics pertaining to actual operations shall be compiled in terms of each flight stage as actually performed.

(c) As a general rule, the traffic and capacity measurements to be reported on these schedules are designed to repre

1 Form filed as part of the original document.

sent 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 schedule T-3.1, small single-engine aircraft types may be grouped in accordance with the instructions in section 34, schedule P-5.1, paragraph (c).

Schedule T-3.1-Statement of Traffic and Capacity Statistics

(a) This schedule shall be filed by each supplemental air carrier.

(b) Separate schedules shall be filed for (1) domestic, (2) territorial-Alaska/ Hawaii, (3) territorial/other, and (4) international including Canadian transborder by aircraft types. (See section 31(h)).

(c) Each schedule shall reflect a distribution of data by individual sales, charter or military services.

(d) All mileage data shall be based upon direct airport-to-airport distances as distinguished from course-flown distances. Mileage related to flights which are not measurable in terms of airportto-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.

(e) Aircraft hours data shall be based upon the time each aircraft becomes airborne on takeoff to the time of ground contact upon landing.

(f) Daily utilization by aircraft type shall reflect the sum of the number of days that each aircraft owned by the reporting carrier and each aircraft rented, leased or borrowed from others is in the possession of the carrier. For reporting purposes, part of a day shall be considered a full day. Daily utilization need not be reported separately for domestic, territorial, and international operations, but may be reported in total on the domestic sheet.

(g) Available ton-miles shall be computed by multiplying the miles flown per each interstation trip in revenue service by the available load for that trip. In

determining the available load, the supplemental carrier may use either the actual capacity for each trip or an average for each type of aircraft which represents the capacity actually available for sale in its operations.

(h) Available seat-miles shall be computed by multiplying the miles flown per each interstation trip by the number of seats available on that trip for the carriage of passengers. In determining the number of available seats, the supplemental carrier may use either the actual capacity for each trip or a standard which represents an average for each type of aircraft used in the carrier's operations.

(i) Each supplemental air carrier shall submit to the Civil Aeronautics Board a detailed statement of its method of computing available ton-miles and available seat-miles 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 32(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".)

(j) Revenue passenger originations shall represent an unduplicated count of passengers originating journeys on the lines of each reporting entity. (See Section 03 "Passenger originations.")

(k) Revenue passenger-miles shall be computed by multiplying the revenue miles flown per each interstation trip by the number of revenue passengers carried on that trip.

(1) Revenue freight-ton-miles shall be computed by multiplying the revenue miles flown per each interstation trip by the number of tons of freight carried on that trip.

(m) The number of employees shall represent the total number of full and

art-time employees, both permanent nd temporary, who worked or received ay for any part of the pay period(s) nding nearest the 15th of the final onth during the current quarter.

ER-369, 27 F.R. 12825, Dec. 28, 1962, as mended by ER-417, 29 F.R. 13533, Oct. 1, 64; ER-423, 29 F.R. 14875, Nov. 3, 1964; R-424, 30 F.R. 1191, Feb. 4, 1965]

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

Section 36-General Corporate
Elements

chedule G-41-Persons Holding More Than 5 Per Centum of Respondent's Capital Stock or Capital

(a) This schedule shall be filed by each ipplemental air carrier.

(b) This schedule shall reflect the ame, address and number of shares of ach class of stock held by all persons olding more than five (5) per centum

the issued and outstanding capital ock or, in cases of unincorporated busiess enterprises, more than five (5) per entum of the total invested capital of le reporting carrier as of the close of le year.

(c) Column 3, "Held for Own Acunt", shall reflect by the word "yes" "no" whether or not the interest is eld for the account of the person named 1 column 1. In cases where the anver is "no" the name and address of le persons for whose account the inrest is held shall be indicated by >otnotes.

chedule G-42-Compensation and Expenses of All General Officers and Directors and of Management Personnel Receiving $20,000 or More per Annum for Personal Services

(a) This schedule shall be filed by ach supplemental air carrier.

(b) The indicated data shall be reorted individually for each elective cororate officer, executive and director. 'he dates to be reported in column 3 hall be the dates each such elective offier, executive and director was first lected to the office held at the date of he report. Reports shall be made in agregate for all management personnel eceiving compensation for personal ervices of $20,000 or more per annum. The name of each elective officer, execuive and director and the number of lanagement personnel receiving $20,000

or more per annum shall be entered in column 1; the annual compensation and reimbursed expenses paid during the calendar year to each officer, executive and director, and the aggregate thereof for all such management personnel, shall be entered in columns 5, 6, and 7, respectively; and the upper and lower limits in the range of compensation and expenses paid to management personnel shall be separately stated in such columns 5, 6 and 7.

(c) Management personnel shall include all general supervisory and administrative personnel not directly responsible for the in-flight operation of aircraft or engaged directly in the performance of maintenance activities. Management personnel, as distinguished from elective officers and directors, for whom report is to be made shall include those who receive $20,000 or more compensation for personal services during the previous calendar year and those initially employed during the current calendar year at an annual compensation rate of $20,000 or more.

(d) Indirect compensation in column 6 shall include payments made by persons holding management contracts providing for management of, or services to, the air carrier or its associated cornpanies.

(e) Expenses borne by the supplemental air carrier to be reported in column 7 shall include all reimbursements to the persons listed in column 1, regardless of whether for goods or services used by the persons listed or by others; whether in the form of per diem or other allowances, or reimbursement for specific expenditures; and whether for amounts reimbursed directly to the persons listed or, except for standby hotel or other facilities maintained for the air carrier's personnel generally, indirectly through vendors who bill the air carrier directly.

(f) Columns 8 through 11 shall reflect securities of the supplemental air carrier owned by officers, directors, or management personnel as at December 31. Column 8 shall reflect the class of capital stock, bonds or other securities of the air carrier owned; columns 9 and 10, respectively, shall reflect the number of shares of stock held in the name of, or for the account of, each general officer, and director, and all management personnel receiving $20,000 or more per annum; and column 11 shall reflect the principal amount of bonds or other securities held in the name of, or

for the account of, each general officer and director and all management personnel receiving $20,000 or more per annum for personal services.

Schedule G-43-Compensation and Expenses of Persons and Firms (Other Than Directors, Officers and Employees) Receiving $5,000 or More During the Calendar Year

(a) This schedule shall be filed by each supplemental air carrier.

(b) The indicated data shall be reported for each person or firm, other than directors, officers and employees of the supplemental air carrier, receiving compensation or expense reimbursements of $5,000 or more during the calendar year.

(c) Compensation and expenses to be reported in this schedule shall include fees, retainers, gifts, commissions, contributions, allowance for expenses or any form of payments amounting in the aggregate to $5,000 or more during the year. In addition to expense reimbursements paid directly to the recipients reflected in column 1, this schedule shall include expenses incurred by the persons or firms named in column 1 which have been paid directly to vendors by the supplemental air carrier. Expenses to be reported in this schedule shall encompass payments, such as for legal, medical, engineering, advertising, accounting, statistical, educational, or charitable purposes but shall exclude payments for services which both as to their nature and amount may reasonably be regarded as ordinarily connected with the routine physical operation or maintenance of an air carrier such as payments for rent of buildings or property, for heat, light, power, telegraph, and telephone or payments to other carriers for interchange of equipment or settlement of interline traffic balances.

(d) "Persons or firms" shall be construed to mean individuals, partnerships, corporations or other legal entities.

Schedule G-44-Corporate and
Securities Data

(a) This schedule shall be filed by each supplemental air carrier.

(b) The information to be reported on this schedule shall be prepared in accordance with the detailed instructions set forth on the schedule, as follows: (Corporations shall complete all of the following items; partnerships and sole proprietorships are not required to report items 4, 5, and 7.)

(1) The supplemental air carrier's exact name at the close of the year. Also, indicate whether the supplemental air carrier is a corporation, partnership or sole proprietorship.

(2) Date of incorporation or other organization.

(3) State or other sovereign power under which incorporated or otherwise organized.

(4) Date of termination of charter. (5) Date and place of annual meetings.

(6) A complete statement setting forth dates of all consolidations, mergers, reorganizations, changes in name, etc., occurring during the year. If, during the year, an original charter of incorporation or a modification of an existing charter was granted, furnish the name of each Government, State or Territory, and reference to each statute under which such grant was made.

(7) With respect to any options outstanding at the close of the fiscal year to purchase securities of the air carrier from the air carrier, the following information shall be reported:

(i) The amount, with the title of the issue, called for by such options.

(ii) A brief outline of the prices, expiration dates, and other material conditions on which such options may be exercised.

(iii) The name and address of each person holding such options calling for more than 5 percent of the total amount subject to option, and the amount called for by the options of each person.

(iv) For each class of such options not previously reported, state the consideration for the granting thereof.

(Interpret or apply secs. 401, 417, as amended 72 Stat. 754, 76 Stat. 143-6; 49 U.S.C. 1371 1387; secs. 7, 9, 76 Stat. 146, 148; 49 U.S.C 1371 note) [ER-369, 27 F.R. 12826, Dec. 28 1962]

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

Sec.

242.7 Schedule P-Operating StatementScheduled All-Cargo Services.

242.8 Schedule T-Aircraft StatisticsScheduled All-Cargo Services.

AUTHORITY: The provisions of this Part 242 issued under sec. 204 and 407, 72 Stat. 743, 49 U.S.C. 1324, 1377.

SOURCE: The provisions of this Part 242 are contained in ER-430, 30 F.R. 2857, Mar. 5, 1965, unless otherwise noted.

§ 242.1 Applicability.

(a) This part applies to all route air carriers except local service air carriers, helicopter air carriers, and exclusively intra-Alaskan or intra-Hawaiian air carriers. Upon its own initiative or upon written carrier application, the Board may exempt any air carrier from compliance with this part or waive any provision thereof where it finds that unusual circumstances justify such exemption or waiver.

(b) This part shall expire July 1, 1968, unless earlier rescinded by the Board. § 242.2 CAB Form 242; filing require

(2) Schedule B-Invested CapitalScheduled All-Cargo Services;

State

(3) Schedule P-Operating ment Scheduled All-Cargo Services; (4) Schedule T-Aircraft StatisticsScheduled All-Cargo Services; and

(5) A statement of the various allocation procedures by which the financial results of scheduled all-cargo services are separated from results for other services.

(b) Schedule B shall be prepared as of June 30 and December 31 of each year, and schedules P and T shall be prepared for the 12 months ending June 30 and December 31 of each year. The allocation statement shall be filed with the Initial report, and with any subsequent report for a period in which the allocaion procedures changed. Form 242 shall be filed (postmarked) with the Board not more than 45 days after the end of the June 30 reporting period and not more Chan 95 days after the end of the De1 CAB Form 242 may be obtained from the Publications Section, Civil Aeronautics Board, Washington, D.C., 20428.

cember 31 reporting period. The report shall be addressed to the Civil Aeronautics Board, attention of the Bureau of Accounts and Statistics, Washington, D.C. 20428.

[ER-430, 30 F.R. 2857, Mar. 5, 1965, as amended by ER-468, 31 F.R. 9992, July 22, 1966]

§ 242.3

Extension of filing time.

If circumstances prevent the filing of a report within the prescribed time limit, consideration will be given to the granting of an extension upon receipt of a written request therefor. Such a request must give good and sufficient reason to justify granting the extension, must set forth the date when the report can be filed, and be submitted sufficiently in advance of the due date to permit proper time for consideration and communication to the air carrier of the action taken. Except in cases of emergency, no such request will be entertained which is not received in sufficient time to enable the Board to pass thereon before the prescribed due date. If a request is denied, the air carrier remains subject to the filing requirements to the same extent as if no request for extension of time had been made.

(a) Each air carrier shall submit with its initial report on CAB Form 242 a statement of the various allocation procedures by which the investment in and operating results of scheduled all-cargo services are separated from those of other services. The statement shall clearly and completely describe the bases used in reporting each indicated balance sheet classification on Schedule B-Invested Capital, and each profit and loss classification on Schedule P-Operating Statement.

(b) Whenever allocation procedures are subsequently revised, a supplementary statement shall be filed with the Form 242 report for the period in which such revisions are made, and shall clearly and completely describe the procedures upon which such revised reports are based. The effect of such change in procedures on the current report and reports previously filed shall be clearly and completely described in the supplementary statement.