apply to the report due within 45 days after December 31, 1960: Provided, how(ever, That, (a) Any Statements of Insurance Coverage, which may be due to be filed after June 30, 1960, shall be prepared and filed pursuant to the instant revision of this part; and (b) the report due within 45 days after June 30, 1960 shall be prepared and filed with the Board pursuant to the provisions of this part which became effective March 27, 1959.

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

PART 245-REPORTS OF OWNERSHIP OF STOCK AND OTHER INTERESTS Sec.

245.1 Reports required. 245.2 Time for reporting. 245.3 Schedule of data.

AUTHORITY: The provisions of this Part 245 Issued under secs. 204, 407, 72 Stat. 743, 766; 19 U.S.C. 1324, 1377.

SOURCE: The provisions of this Part 245 contained in ER-146, 14 F.R. 3540, June 29, 1949, unless otherwise noted.

$245.1 Reports required.

At the times and in the manner provided in this part, each officer and each director of each air carrier shall transnit to the Board a report describing the shares of stock or other interests held by him in any air carrier, any person enaged in any phase of aeronautics, or any common carrier, and in any person whose principal business, in purpose or n fact, is the holding of stock in, or conErol of, air carriers, other persons engaged in any phase of aeronautics, or Common carriers.

245.2 Time for reporting.

Not more than 30 days after such officer or director is first elected or appointed, a report shall be filed covering he period from January 1 of the preeding year to the date of election or ppointment; subsequently, a report hall be filed, on or before March 1 of ach year, covering such portion of the receding calendar year as has not been reviously reported, or the full year if e so desires.

SCHEDULE

I. Data as to individual reporting. The categories for which data shall be set forth are as follows:

(1) Name.

(2) Address.

(3) Principal occupation.

(4) All air carrier positions held (indicate title of position and name of air carrier);

(5) Positions held as officer, director, or member of:

(a) Common carriers (other than air); (b) Enterprises engaged in any other phases of aeronautics;

(c) Enterprises whose principal business is that of holding securities and/or control of air carriers, common carriers, and enterprises which are engaged in any other phases of aeronautics (giving title of position and name of company or enterprise);

(6) Append the following declaration to the report:

"I hereby declare that this report, including documents attached hereto, has been examined by me, and to the best of my knowledge and belief is a true, correct, and complete report, made in good faith, for the period stated." Execute the declaration, affixing date and signature.

II. Data as to stock or other interests. The categories for which data shall be set forth are as follows:

(1) Interests held in air carriers;

(2) Interests held in other common carriers;

(3) Interests held in any enterprise engaged in any phase of aeronautics other than air carriers;

(4) Interests held in enterprises whose principal business is that of holding securities and/or control of air carriers, other common carriers, or enterprises which are engaged in any phase of aeronautics other than air carrier. For each of the foregoing categories, the following data shall be set forth:

A. Name of enterprise (corporate or otherwise) in which interest is or was held at any time during the period covered by report.

B. Class of interest, such as common stock, preferred stock, rights, options, etc.; and description of bonds, notes, or other instruments evidencing interest or ownership. (Give names and addresses of all persons (1) by whom any part of the foregoing items were held for reporting individual, (2) for whom any part of the foregoing items were held by reporting individual, (3) who held joint interest with reporting individual in any part of the foregoing items, and state nature of the relationship and the principal business of such persons.)

C. Number of shares or amount of each item reported under "B" held as of the last day of the period covered by report.

D. On all items reported under "C" which equal 5 percent or more of the total outstanding amount of the same class, show such percentages.

E. Indicate by (yes) or (no) whether reporting individual controlled and/or exercised all the voting rights of the items reported under (B) that were held by him, for him, or held jointly with other persons during the period covered by the report. If the answer is "No," state amount of voting rights not controlled or exercised by reporting individual and give the names, addresses, and principal business of persons controlling and/or exercising such voting rights.

F. Maximum amount held during period covered by report.

G. On all items reported under “F” which equal 5 percent or more of the then outstanding total amount of the same class show such percentages.

H. Minimum amount held during period covered by report.

[ER-146, 14 FR. 3540, June 29, 1949, as amended by ER-226, 22 F.R. 10076, Dec. 17, 1957]

PART 246-REPORTS OF STOCK OWNERSHIP OF AFFILIATES OF AIR CARRIERS

For the purposes of this part a person shall be deemed to be an affiliate of an air carrier if it has direct or indirect control over such air carrier. A person who owns, directly or indirectly, 10 percent or more of the outstanding issued capital stock of an air carrier, in the absence of a proper showing to the Board that he does not control the air carrier despite his stock ownership, shall be deemed to control the carrier for purposes of this part. A brokerage firm which holds record ownership of securities merely for the convenience of the customer beneficially owning the stock shall not be deemed a person owning stock for purposes of this part.

[ER-469, 31 F.R. 10075, July 26, 1966] § 246.2

Stock reports.

Except as provided in § 246.3, every affiliate of an air carrier shall submit on or before March 1 of each year:

(a) A report showing, as of the preceding December 31:

(1) The names and addresses of each of its stockholders or members holding more than 5 percent of the entire capital stock or capital, as the case may be of such affiliate, together with the name and address of any person for whose account, if other than the holder, such stock is held;

(2) The number of shares, and percentage of the total shares issued, held by each such stockholder, and indicating whether such shares are voting, nonvoting, common, or preferred; and

(b) A report setting forth, as of the preceding December 31, a description of the shares of stock or other interests held by the affiliate, or for its account, in any common carrier, air carrier, foreign air carrier, or any person engaged in any phase of aeronautics, and a description of the shares of stock or other interests held by the affiliate or for its account in any person whose principal business, in purpose or in fact, is the holding of stock in, or control of, common carriers, air carriers, foreign air carriers, or persons engaged in any phase of aeronautics, indicating:

(1) The name of the issuing company;

(2) Whether such stock or other interest is voting, nonvoting, common or preferred, convertible or nonconvertible. (If convertible an explanation of the option shall be set forth.)

(3) The par and book value of such stock or other interests held by the affiliate or for its account, and the amount pledged, unpledged, and held in fund and deposit accounts, and

(4) The total amount of stock or other interests (by class and issue) having voting or conversion rights which have been actually issued by the issuing company and are outstanding (whether or not held by the affiliate reporting hereunder). If convertible, an explanation of the option shall be set forth, and the total amount convertible shall be stated.

(c) For each person or company named in the report, including the affiliate but excluding the air carrier:

(1) A description of the principal occupation of each individual,

(2) A description of the business activities of each company, including, with respect to any company performing common carrier service, the geographical

area authorized to be served, and the nature of any license held by such company to perform such services.

[ER-146, 14 F.R. 3540, June 29, 1949, as amended by ER-469, 31 F.R. 10075, July 26, 1966]

§ 246.3 Exceptions.

The reports required in § 246.2 need not be filed as of December 31 of any year by any such affiliate:

(a) If such affiliate is an air carrier required to file a report as of December 31 of the same year, pursuant to section 407 (b) of the act; or

(b) If such affiliate is an individual required to file a report as an officer or director of any air carrier, on or before March 1 of the following year, pursuant to section 407 (c) of the act: Provided, however, That if between said December 31 and March 1 of the following year any such individual should be relieved of the requirement of filing said report as an officer or director of any air carrier, then the exception herein created shall immediately terminate as to said individual, and said individual shall file, on or before April 1, the report required in § 246.2 (b).

PART 247-DIRECT AIRPORT-TO-
AIRPORT MILEAGE RECORDS

§ 247.1 Official mileage record of the Board.

The direct airport-to-airport mileage record now maintained, and as hereafter amended or revised from time to time by the Schedule Records Unit of the Office of the Secretary of the Civil Aeronautics Board in the regular performance of its duties, is hereby adopted as the official mileage record of the Board and the mileages set forth therein shall be used in all instances where it shall be necessary to determine direct airport-to-airport mileages pursuant to the provisions of Titles IV and X of the Federal Aviation Act of 1958, as amended, or any rule, regulation, or order of the Board pursuant thereto.

(Secs. 204, 407, 72 Stat. 743, 766; 49 U.S.C. 1324, 1377) [ER-444, 30 F.R. 12249, Sept. 24,

1965]

PART 248-SUBMISSION OF AUDIT AND RECONCILIATION REPORTS

Sec.

248.1 Applicability.

248.2 Filing of audit reports.

The requirements of this part shall be applicable to all air carriers subject to the requirements of Part 241 of this subchapter.

§ 248.2 Filing of audit reports.

(a) Whenever any air carrier, subject to § 248.1, shall have caused an annual audit of its books, records, and accounts to be made by independent public accountants, such air carrier shall file with the Board, in duplicate, a special report consisting of a true and complete copy of the audit report submitted by such independent public accountants, including all schedules, exhibits, and certificates included in, attached to, submitted with or separately, as a part of the audit report.

(b) Each air carrier, subject to § 248.1, which does not cause an annual audit to be made of its books, records, and accounts for any fiscal year, shall, at the close of such fiscal year file with the Board, as a part of its periodic reports, a statement that no such audit has been performed.

§ 248.3

Reconciliation of reports.

Each air carrier required to comply with Part 241 of the Economic Regulations which has caused an annual audit of its books, records, and accounts to be made by independent public accountants shall file with the Board, in duplicate, as a part of its CAB Form 41 reports, a special report consisting of a complete reconciliation of the balance sheet and profit and loss statement included in the audit report with the balance sheet and profit and loss statements filed with the Board as a part of CAB Form 41, Report of Financial and Operating Statistics for Certificated Air Carriers. Such special report shall clearly set forth in all material detail the essential elements of such reconciliation.

The reports required by this part shall be filed with the Board within 15 days after the due date of the appropriate periodic CAB Form 41 report, filed for the twelve-month period covered by the audit report, or the date the accountant submits his audit report to the air carrier, whichever is later.

§ 248.5 Withholding from public disclosure.

The special reports required to be filed by § 248.2 shall be withheld from public disclosure, until further order of the Board, if such treatment is requested by the air carrier at the time of filing.

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

Sec.

249.28 Waivers of requirements of this subpart.

249.29 Effective date.

AUTHORITY: The provisions of this Part 249 issued under sec. 204, 407, 72 Stat. 743; 49 U.S.C. 1324, 1377.

SPECIAL ECONOMIC REGULATION

ER-363

Persons whose applications for a new interim certificate or new interim authority pursuant to section 7 of Public Law 87-528 of July 10, 1962, have been denied and whose applications for a certificate for supplemental air transportation under section 401 (d) (3) of the Federal Aviation Act of 1958, as amended, are pending before the Board, shall retain and preserve each of their records mentioned in § 249.8 and/or § 249.10 of Part 249 of the Economic regulations, whichever provision may apply to them, for the applicable record retention period prescribed by Part 249 or until final disposition of their applications for certification under section 401 (d) (3), whichever period may be longer. This requirement shall also apply to such persons if they withdraw and later refile their applications for certification under section 401(d) (3), or to the successors or assignees of such persons who apply under section 401(d) (3). Destruction of records in violation of this regulation will be deemed substantial evidence of the carrier's unwillingness to comply with the Act and the Board's regulations thereunder.

(Sec. 204 (a), 72 Stat. 743; 49 U.S.C. 1324. Interpret or apply sec. 401, as amended, and 407, 72 Stat. 754, 766; 76 Stat. 143-145; and sec. 10 of Public Law 87-528 of July 10, 1962, 76 Stat. 149; 49 U.S.C. 1871, 1377) [27 F.R. 9911, Oct. 9, 1962]

Subpart A-Air Carriers Other Than Air Freight Forwarders and International Air Freight Forwarders § 249.1 Applicability.

Except as otherwise provided in this subpart or other parts of this subchapter, the provisions of this subpart shall apply to (a) air carriers, as defined in section 101 (3) of the Act, which hold certificates of public convenience and necessity, supplemental air carriers, subject to the reporting requirements of Part 241 of the subchapter and former Part 242 of this subchapter, (b) holders of a permit authorizing the navigation in the United States of foreign civil aircraft pursuant to Part 375 of this chapter (Board's special regulations), and (c) foreign air

For the purposes of this part:

"Certified description” means permanently retained instrument which (1) identifies records by date and/or period covered; (2) describes such records in accordance with the applicable section of this part prescribing retention categories; and (3) has been certified to be correct in an instrument executed by a responsible officer of an air carrier.

"Certificated route air carrier" means the holder of a certificate of public convenience and necessity issued by the Civil Aeronautics Board under section 401(d) (1) and (2) of the Act, authorizing the holder to provide unlimited scheduled service over designated routes.

"Final adjudication” shall be deemed to have occurred upon the first applicable date specified below:

(1) Where the Board has finally disposed of any case, with or without reconsideration, and no petition for judicial review has been filed by any party entitled to file such a petition under section 1006(a) of the Act, midnight of the last day prescribed for the filing of such a petition.1

(2) Where such a petition has been filed, the day of issuance of a final decision, by the highest court to have entertained the proceeding, fully disposing of such petition for review and of all further review proceedings arising therefrom and, where applicable, until the expiration of the time prescribed for the filing of a petition for further review.

(3) Where proceeding has been remanded to the Board for further action, the applicable date specified in subpara

1 For the purposes of this part, the statutory period prescribed for the filing of a petition for judicial review shall be deemed to have expired as follows: (a) Where no timely petition for reconsideration has been filled with the Board, in accordance with its rules of practice, on the sixtieth day following entry of final Board order disposing of all issues in a pending case; and (b) where a timely petition for reconsideration has been filed with the Board, in accordance with its rules of practice, on the sixtieth day following the entry of an order disposing of such a petition.

graph (1) or (2) of this paragraph in respect of the proceeding on remand.

"Microfilms" means photographic reproductions of original documents which have been made in compliance with the requirements of § 249.7.

"Open mail rate period" means the whole or any part of the time interval between the date of institution of a new mail rate proceeding, under Rule 303 of the Board's rules of practice (§ 302.303 of this chapter) or of the inauguration of service over a new route or routes, for which no mail rate has previously been fixed, and the date upon which a Board order prescribing the rate of final mail compensation, payable for periods subsequent to the date of adoption thereof, becomes legally effective under sections 1005 and/or 1006 of the Act.

"Original documents” means any record initially acquired, processed or subsequently modified in connection with each constituent step involved in an evidentiary account of historical events. The term "original documents” also embraces any copy of initially prepared documents bearing subsequently added approvals, comments or notations of significance to a full explanation of recorded facts or information.

"Pending case" means any hearing case that the Board is empowered to conduct prior to final adjudication thereof.

"Records” means original documents,' or microfilms thereof, made as authorized herein, constituting integral links in developing the history of, or facts regarding financial transactions or physical operations. The term "records" embraces not only accounting records in a limited technical sense but all other evidentiary accounts of events such as memoranda, correspondence, working sheets, and tabulating equipment listings or tapes. The term "records" also encompasses any material coming into the possession of the air carrier through merger, consolidation, succession, transfer, or other acquisition.

"Records relating to an accounting year" means "records" which record transactions or events either occurring, or necessitating accounting entries to be made, in any twelve-month period which

2 Relating to a particular segment, operating division, or entire system of the carrier's operations.