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which has been exempted under the pro § 287.4. Approval of certain interlocking visions of this paragraph, shall use rea relationships. sonable diligence in determining when

To the extent that any officer, director the $100,000 limit specified in § 287.1(d)

or member of an air carrier, or stockor paragraph (d) of this section has been

holder holding a controlling interest in exceeded.

an air carrier (or the representative or Provided, further, That no exemption

nominee of any such person) would, conferred by this section shall extend to

without prior approval of the Board, be a relationship with respect to any com in violation of any provision of section mon carrier or person engaged in a phase 409(a) of the Act, by reason of any interof aeronautics which is, directly or indi

locking relationship directly involving rectly, affiliated with any air carrier such air carrier which has been ex-: unless such affiliation has previously empted under this part, such relationbeen expressly authorized by the Board

ship is hereby approved for the duration by approval under section 408 of the Act, of such exemption. or by exemption therefrom, and is currently so authorized.

§ 287.5 Termination of exemptions and [ER-344, 26 F.R. 11891, Dec. 13, 1961, as

approvals. amended by ER-455, 31 F.R. 5122, Mar. 30, Any exemption and approval granted 1966)

by this part may be terminated by the $ 287.3a Exemption of air carriers with

Board at any time, after notice and oprespect to interlocking relationships portunity to submit written views and with commercial lending institutions. data, when the Board finds that the con

tinuance of such exemption and apIn addition to the exemptions proE vided in $$ 287.2 and 287.3 of this part,

proval will adversely affect the public

interest. and subject to the other provisions of this part, air carriers are hereby relieved § 287.6 Effect of exemption on antitrust from the provisions of section 409(a) of

laws. the Act and Part 251 of this chapter with The exemption and approval granted respect to any interlocking relationship herein shall not constitute an order between any such air carrier and a com made under section 409(a) of the Act mercial lending institution which does within the meaning of section 414 of not lease aircraft to the air carrier: Pro the Act and shall not confer any imvided, however, That such exemption munity or relief from operation of the shall expire on March 30, 1969, and shall "antitrust laws" or any other statute extend only to the relationship involv

(except the Federal Aviation Act of 1958, ing a director of the air carrier who is

as amended) with respect to any internot an officer or employee of the air car

locking relationship otherwise within the rier or a stockholder holding a control purview of said section 409(a). ling interest in the air carrier (or the representatives or nominee of any such

$ 287.7 Effect of exemption on existing person) and who is not a member of the

interlocking relationships. commercial lending institution: Provided The exemption and approval granted further, That in order to qualify for an by this Part shall supersede any approval exemption under this section air carriers (including any conditions thereto) previshall file with the Bureau of Operating ously granted by the Board in respect to Rights annual reports on or before March a specific interlocking relationship when 1 of each year showing for the previous the following conditions obtain: calendar year (a) the names and ad (a) The air carrier concerned has furdresses of all directors of the air carrier nished written notice to the Board of its who were also directors, officers, or em election to invoke the provisions of this ployees of commercial lending institu section with respect to such interlocking tions; (b) the names and addresses of relationship, and such commercial lending institutions; (b) The circumstances surrounding and (c) a description of all transactions such interlocking relationship fully meet between the air carrier (and/or its di the conditions specified in this part, and rectors who were also officers or directors (c) A period of 90 days after the date of commercial lending institutions) and of such written notice has elapsed during such commercial lending institutions. which the Board has not notified the (ER-473, 31 F.R. 12518, Sept. 22, 1966) air carrier concerned, in writing, that it

PART 288— EXEMPTION OF AIR

CARRIERS FOR SHORT-NOTICE
MILITARY CONTRACTS AND SUB-
STITUTE SERVICE

Subpart A-General
Sec.
288.1 Definitions.
288.2 Applicability.
Subpart B-Exemption, Conditions and

Requirements 288.5 Exemption. 288.6 Scope of exemption. 288.7 Reasonable level of compensation. 288.8 Application for other relief.

Subpart C-Enforcement 288.15 Violations.

does not wish to make the exemption and approval conferred by this part retroactively effective with respect to such interlocking relationship.

APPENDIX I SEC. 409. (72 Stat. 768, 49 U.S.C. 1979). (a) It shall be unlawful, unless such rela. tionship shall have been approved by order of the Board upon due showing, in the form and manner prescribed by the Board, that the public interest will not be adversely affected thereby

(1) For any air carrier to have and retain an officer or director who is an officer, director, or member, or who as & stockholder holds a controlling interest, in any other person who is a common carrier or is engaged in any phase of aeronautics.

(2) For any air carrier, knowingly and willfully, to have and retain an officer or director who has a representative or nominee who represents such officer or director as an officer, director, or member, or as a stockholder holding a controlling interest, in any other person who is a common carrier or is engaged in any phase of aeronautics.

(3) For any person who is an officer or director of an air carrier to hold the position of officer, director or member, or to be a stockholder holding a controlling interest, or to have a representative or nominee who represents such person as an oficer, director, or member, or as a stockholder holding a controlling interest, in any other person who 18 a common carrier or is engaged in any phase of aeronautics.

(4) For any air carrier to have and retain an officer or director who is an officer, director, or member, or who as a stockholder holds a controlling interest, in any person whose principal business, in purpose or in fact, is the holding of stock in, or control of, any other person engaged in any phase of aeronautics.

(5) For any air carrier, knowingly and willfully, to have and retain an officer or director who has a representative or nominee who represents such oficer or director as an oficer, director, or member, or as a stockholder holding a controlling Interest, in any person whose principal business, in purpose or in fact, is the holding of stock in, or control of, any other person engaged in any phase of aeronautics.

(6) For any person who is an officer or director of an air carrier to hold the position of officer, director, or member, or to be a stockholder holding a controlling interest, or to have a representative or nominee who represents such person as an officer, director, or member, or as a stockholder holding a controlling Interest, in any person whose principal business, in purpose or in fact, is the holding of stock in, or control of, any other person engaged in any phase of aeronautics.

Subpart D-Duration 288.18 Expiration.

AUTHORITY: The Provisions of this part 288 issued under secs. 204 and 416, 72 Stat. 743 and 771; 49 U.S.C. 1324 and 1386.

SOURCE: The provisions of this part 288 appear at ER-456, 31 F.R. 5417, Apr. 6, 1966, unless otherwise noted.

Subpart A-General § 288.1

Definitions.
As used in this part:

“Act" means the Federal Aviation Act of 1958, as amended.

“Air carrier" means a citizen of the United States holding economic operating authority to engage in air transportation as a direct air carrier with large aircraft, other than the authority conferred by this part.

“Large aircraft” means an aircraft of more than 12,500 pounds certificated maximum takeoff weight.

“MAC” means the Military Airlift Command.

“North Pacific routing" means a route between a point in the 48 continguous States and Japan via Alaska.

“Short-notice MAC charter service" means foreign and overseas air transportation, and air transportation between the 48 contiguous States on the one hand and the States of Hawaii or Alaska on the other hand, in planeload lots of persons and/or property pursuant to civil augmentation contracts with MAC whereunder the first flight under an award occurs not more than 3 weeks after the date established by MAC for the submission of proposals by the air

carriers and all flights are to be per

formed within 30 days of the first flight: | Provided, That MAC traffic only is carried on such flights.

"Substitute service" means the performance by an air carrier of foreign or overseas air transportation, or air transportation between the 48 contiguous States, on the one hand, and the States * of Alaska or Hawaii, on the other hand, in planeload lots pursuant to an agreement with another air carrier to fulfill such other air carrier's contractual obligation to perform such air transportation for MAC and when the performance of such air transportation is not to take place during a period longer than 3 weeks.

“Supplemental air carrier" means an air carrier deriving its operating authority from either an interim certificate or interim authority issued pursuant to Section 7 of Public Law 87-528 or a certificate of public convenience and necessity for supplemental air transportation issued pursuant to section 401(d) (3) of the Act. All terms defined in the Act and not otherwise defined in this part are used in the sense of their statutory definitions. $288.2 Applicability.

This part applies to substitute service and short-notice MAC charter service by air carriers holding economic authority from the Board to provide air transportation of persons and/or property by the use of large aircraft and which have contractually committed their CRAF air

craft to the Department of Defense: Provided, That, in the case of shortnotice MAC charter service, the award contains or is accompanied by a written statement of the military establishment that such award is for transportation necessary to fulfill unforeseen military requirements as to which time is of the

sons and/or property by the use of large aircraft and which have contractually committed their CRAF aircraft to the Department of Defense are hereby exempted from the following provisions of Title IV of the Federal Aviation Act of 1958, as amended, and the Board's economic regulations: Section 403 of the Act; Part 221 of this chapter.

(b) Subject to the provisions of this part and the conditions imposed, air carriers, other than supplemental air carriers, holding authority from the Board to engage in air transportation of persons and/or property by the use of large aircraft and which have contractually committed their CRAF aircraft to the Department of Defense, are hereby exempted from the following provisions of Title IV of the Federal Aviation Act of 1958, as amended, and the Board's economic regulations: section 401(a) of the Act; Part 202 of this chapter; Part 207 of this chapter. 8 288.6 Scope of exemption.

The exemptions granted in $288.5 extend only to transportation of persons and/or property under agreements for short-notice MAC charter service as defined herein, where the award contains, or is accompanied by, the written statement set forth in the proviso to § 288.2, and to substitute service as defined herein. This authority is in addition to all other authority to engage in air transportation issued by the Board to any air carrier and will not be construed as in any manner limiting such other authority. 8 288.7 Reasonable level of compensa

tion. It shall be a condition on the exemptions granted by this part that the level of compensation for transportation provided for short-notice MAC charter seryice and substitute service shall not be uneconomically low.

(a) Minimum charges. In the absence specific Board approval, the compensation for such services shall not be less than the following:

(1) For services other than those specified in subparagraph (2) of this paragraph:

essence.

Subpart B-Exemption, Conditions,

and Requirements $ 288.5 Exemption.

(a) Subject to the provisions of this part and the conditions imposed, air carriers holding authority from the Board to engage in air transportation of per

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Regular rates

Rates for North Pacific routing

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Dollars

2.73 2. 53 2. 48 2. 47 2. 26

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2. 57 2. 39 2. 35 2.33 2.14

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4. 79 4. 52 4. 45 4. 42 4. 14

Passenger, per passen

ger-mile:
Round trip

One way.
Cargo, per ton-mile:

Round trip.

One way Convertible: Passenger leg, per

passenger-mile. Cargo leg, per ton

mile Mixed passenger-cargo,

per revenue plane-' mile for following number of passen

gers and pallets: Round trip, variable:

165 and 0.
117 and 3.
105 and 4.
93 and 5.
81 and 6
63 and 7.
51 and 8.

0 and 12..
Round trip, fixed:

165 and 0..
117 and 3
105 and 4.
93 and 5
81 and 6
63 and 7
51 and 8.

0 and 12.
One way, variable:

165 and o.
117 and 3..
105 and 4..
93 and 5.
81 and 6.
63 and 7
51 and 8.

0 and 12.
One way, fixed:

165 and 0.
117 and 3.
105 and 4.
93 and 5.
81 and 6.
63 and 7.
51 and 8.
O and 12.

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Mixed passenger-cargo,

etc.-Continued
B-727, round trip,

variable:
105 and 0..
61 and 2.
50 and 3.
46 and 4.

O and 7.
B-727, round trip,

fixed:
105 and 0.
61 and 2
50 and 3.
46 and 4.

0 an 7.
B-727, one way, var-

iable:
105 and 0.
61 and 2
50 and 3.
46 and 4.

0 and 7..
B-727, one way, fixed:

105 and 0..
61 and 2.
50 and 3.
46 and 4.

0 and 7.
DC-8F-61, round

trip, variable:
219 and 0.
159 and 5.
65 and 12.
47 and 13.

0 and 18.
DC-8F-61, round

trip, fixed:
219 and 0.
159 and 5.
65 and 12.
47 and 13.

0 and 18.
DC-8F-61, one way,

variable:
219 and 0.
159 and 5.
65 and 12.
47 13.

0 and 18.
DC-8F-61, one way,

fixed:
219 and 0.
159 and 5
65 and 12.
47 and 13.
0 and 18..

4. 63 4. 38 4. 32 4. 29 4. 03

4. 71
4. 61
4. 45
4. 42
4. 35

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4. 38
4. 29
4. 15
4. 12
4.05

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8. 21 8. 13 8. 01 7.99 7.92

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7.88 7.81 7.70 7. 68 7. 63

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(2) The compensation for substitute service shall not be less than that which the prime contractor would have received under his contract with MAC.

(b) Minimum aircraft loads. The minimum charges established by paragraph (a) of this section shall be deemed economic only when the resulting revenues are at least the equivalent of such charges applied to the following minimum loads:

Regular

rates

Rates for

North Pacific routing

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Passenger, per passenger

mile:
Round trip.

One way
Cargo, per ton-mile:

Round trip.
One way
Convertible:
Passenger leg, per
passenger-mile.
Cargo leg, per ton-

mile. Mixed passenger-cargo: Round trip, per rev

enue plane-mile,
for following air-
craft and number
of seats installed
at request of

MAC:
DC-6A/B:

0-2
1-44.
45-54
55-64.
65–74.
75-87.

88
DC-7CF, L-1049/

C/E/G/H,

L-1649 A/F:
0-2
1-47.
48-59.
60-71
72-85.
86-92
93 and over

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B-707-320-B/C.
B-707-300 series.
B-707-100 series.
DC-8F-61..
DC-8F.
DC-8 (50 series)
DC-8 (other)
B-727
CV-880.
CL-44.
L-1649A.
L-1049-C/E/G/H.
DC-7-B/C/CF/F.
L-1049A..
DC-7...
DC-6-A/B/C.
DC-4...

165 159 149 219 165 149 147 105 110 148 95 95 95 88 88 83 60

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1 All-cargo rate applicable on flights designated as allargo where limited services for the personnel who may De carried are required under the MAC contract.

2 Rate applicable on flights designated as mixed where ull passenger services are required under the MAC conract.

Provided, That, for the purpose of this paragraph (b), compensation equal to the minimum rate applied to the load that actually can be accommodated shall be considered economic whenever a carrier is prevented from accommodating a load equal to the minimum specified above, for reasons other than adverse weather, off-loading by MAC, or the bulk of the cargo supplied by MAC, but in no event less than 90 percent of the above minimum loads. For purposes of this proviso, failure by the carrier to accommodate more than 12 loaded pallets on the B-707-320B/C and DC-8F aircraft, or 10 loaded pallets on the CL-44 aircraft, irrespective of the total weight thereof, on the all-cargo segment of any convertible charter flight, due to the presence of galley equipment and/or

Provided, That, subject to the provisions of paragraph (b) of this section, he minimum rates specified in subdirisions (i) and (ii) of this subparagraph shall not be applicable to passengers or argo carried on a particular trip in exess of the amount that the contract calls or MAC to supply and the carrier to provide space.

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