Appendix — World Airways, Inc. v. Pan American World Airways, Inc.

Supreme Court brief1968

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What actually matters in this document.

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fm a ed gaa SMe ek SS _ Issued parsuant. to

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—. No. H-24237

‘UniTED stares oF 5 aatca .

| fe Onn, "AERONAUTICS Boaz ‘4

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ee * Wasuniofon, D. ©. .

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Se ah Centirigare OF : Pyeue Convenrexce \yxp Néceasiry .

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Ry is 2 - Anesntchoy Fosans AIRLINE Corr. ae

hereby ahithorind, subject. to the provisions ‘hereing’ ter |

. set forth, the provisions: of Title -IV of the Federal Avia® —

hg ‘Act. of 1958, -and the -orders, ‘Fules, and rogalation®;

_issued thereunder, to, engage. in supplemental air trans-

-- portation (including inclusive tour charter authority). ‘with

a ‘Bitween: any point ; in any State! of the- United Siates

ae 7 or — District of Columbia, on the one hand, and

(a): points in 1 Canlada, ind Mexico, on the other -hand;

—t—<* ov

) oints i in J ainaica, the Bahama Islands, Bermuda,.

ie Haiti, the’ Dominican Republic, Puerto Rico, the

fas © Virgin Islands, Trinidad, Araba, the Leeward.

mi ees f a, ‘cel! 2 ging Windward Istanas; and any other: place lo-

‘ " gited’s in the Gulf of Mexico.o or the. Caribbean Sea,

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567a

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In overseas and foreign. air r transportation, anti in air

| transportation between places in the same territory

or possession of the United States, pursuant to con- .

a with the Department of Defense. =

*.. The service herein authorised.’ is subject to the terms,

eonditions, and limitations prescribed by thie Board’s Reg-

ulations for supplemental. air transportation and to-the

following additional terms, conditions, and limitations :

(1) Notwithstanding any other provisions of this cer-’.

_ tificate, the holder shall at all times conduct its opera-~

_ : tions in accordance with all. treaties and agreements

-+. between the United States and other countries, and the

exercise | ‘of the privileges granted by this certificate

‘shall be subject to compliance with such treaties and

, agreements and to any orders of the Board issued pur- .

‘guant to, or for the.purpose of requiring compliance _

sith, such treaties and agreements.

Ao

(2) ‘The exercise of the authority granted am shall

be subject to there first being obtained from the ap-.

propriate foreign governments such operating rights °.

as may be necessary. The exercise of the privileges

| granted by this certificate shall be subject to such other -

reasonable terms, conditions, and limitations required

es by the ‘public interest as may from time to time be

preseribed by the Board.

-(3)° ‘Charter. -services performed by the holder for Ahe

Department of Defensé ‘shall be furnished at the rates

and compensation ‘computed on a basis no lower than’

‘a the basis of eomputation of : compensation now or here-

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568a

after sonal by the Board in applicable Tules, Tegu- |

lations, or orders. |

This certificate shall be effective on Nov ‘ember 26, 1966:

Provided, how ever, That prior to the.date on- -which this

certificate would otherwise become effective the. Board, —

either on its own initiative or upon the timely. filing of a

petition or petitions seeking reconsideration of the Board’s

_ order of March 11, 1966 (Order E-24237), insofar as such

order authorizes the. issuance of - this certificate, may - by-

order or orders extend such effective date from time ss

Ps ‘

a

time. - « ;

The authority to engage in supplemental air transporta-

tion as provided in paragraph ‘1 shall terminate five years

' . after the effective date of this certificate.

In Witness Wuereo?, the Civil Aeronautics Board has

caused this certificate to be executed by the Secretary of

the. Board, and the. seal of the Board to be affixed hereto, -

on the 11th wad of saris 1966.

-Harotp R. SanpErson”

aes f Secretary

| (Beat)

Issuance of this certificate

‘to the holder approved by the

President of the United States

on September 27, 1966

in Order E-24237.

a : . '569a rhe

Bes at (12153)

12153

Issued ‘ pursuant i: 2:

Order No. E- 24237

UNITED STATES OF AMERICA

-Civin Aarne Boarp

WASHINGTON, D. C.

cea

CertTiFICATE OF PuBLic CoNVENIENCE AND ‘NECESSITY

FOR SuppLeMEnTaL AIR TRANSPORTATION

’ CaPITOoL Arways, Inc. hc

is hereby authorized, subject to the provisions isteiden

_ set forth, the provisions of Title IV of the Federal Avia-

‘tion Act of 1958, and the orders, rules, and regulations

issued -thereunder, to engage in supplemental air trans-

portation (including inclusive tour charter authority) w ith

respect to persons and property, as follows:

1. Between any walk in any State of: the United States

or the District of: Columbia, on the one hand, and

points in Jamaica, the Bahama Islands, Bermuda,

Haiti, the Dominican Republic, Puerto Rico, the Vir-

- gin Islands, Trinidad, Aruba, the Leeward and Wind-

ward Islands, and any other place located:in the Gulf

of Mexico or the Caribbean Sea, on the other hand.

2. In overseas and foreign air transportation, and in AS.

air transportation between places in the same terri-. ;

Rae ha EE Re

i . Sa. . |

ss, 12154) ss jd Aa joe

. tory or possession of the United States, pursuant to

contracts with the Department of Defense.

The service herein authorized is subject’ to the terms, —

conditions, and limitations prescribed by the Board’s Regu-

lations for supplemental air transportation and to the

following additional terms, conditions, and limitations:

(1) Notwithstanding any other provisions of this cer-

tificate, the holder shall at all times conduct its opera-

tions in accordance with all treaties and agreements

- - between the United. States and other countries, and

~ the exercise of the privileges granted. by this cer?

tificate shall be subject to compliance with such treaties

' and agreements and to any orders of the Board issued

pursuant to, or for the purpose of requiring compli-

ance with, such treaties and agreements. |

e: Beeee 12154

_ (2) "The exereise of the authority granted herein shall —

be subject to there first being obtained from the’ appro-

priate foreign governments such operating rights as.

may be necessary.’ The exercise of the ‘privileges

granted by this certificate shall be subject to such other

reasonable terms, conditions, and limitations required

by the public interest as may from time to time be

prescribed by the Board.

(3) Charter services performed by the holder for the “2

Department of Defense shall be furnished at the rates _

_ and compensation computed on a basis no lower than. .

_. the basis of computation of compensation now or here- .

after specified by the- Board in applicable rules, regu-

lations, or orders. :

d71a

This cértifiente shall be effective on Soin 26, 1966:

} Provided, however, That prior to the date on which this

certificate would oth®rwise become effective the Board,

(12154) a

e

either on its own initiative er upon thé timely filing of a -

_ -petition or petitions seeking reconsideration of the Board’s

order of March 11; 1966 (Order E-24237), insofar as such -

order authorizes the issuance of: this certificate, may by

order or orders extend such effective date from time to

time.

_ tion as provided in paragraph 1 shall terminate five years

after’ the effective date of this certificate. :

In Wityess Wueneor, the Civil ‘Aeronautics Board has

‘ caused this certificate to be executed by the Secretary of

The authority to engage in subeileaneniat aar snliioginte

the Board,-and the sea) of the Board to be affixed hereto, re

on the 11th day of March, 1966.

_Harorp R. Saxperson

(Sear) |

Issuance of this certificate

to the holder approved by the

President of the United States

_ on September 27,1966. -

in Order E-24237. .

SV RGR OI LEE CO

Secretary |

(12155)

yee ey

‘Issued pursuant to i. S

Order ‘No. [-24237

UNITED STATES: OF AMERICA

8

Certs. AERONAUTICS Boarp

WasHINGTON, D.C.

| CenriricaTe OF : Pusuic Coirvienmnce AND N RORSSITY..

FOR SUPPLEMENTAL Ar TRANSPORTATION

———

*»

J OHNSON | — SERVICE, Inc.

is hereby authorized, ‘subject to the provisions hereinafter

_ set forth, the provisions of Title IV of the Federal Avia-

tion. Act of 1958, and the order's, rules, and regulations

~ issued. thereunder, to engage in supplemental air transpor-

tation (including inclusive tour charter authority) with -

respect to persons and property, as follows:

1 Between any point in any State of the United States

or the District of Columbia, on the one hand, and

points in Canada, on the other hand.

2. In overseas and. foreign air ‘transportation, and in

air transportation between places in the same terri-

tory or possession of the United States, pursuant to

contracts with the Department of Defense.

oS

— such treaties and agreements.

5738.

(12155, 12156)

- The service herein authorized is subject to the terms,

conditions, and limitations prescribed’ by. the Board’s Regu-

lations for supplemental air. transportation and to the fol- -

lowing additional terms,®conditions, and limitations:

- (1) N otwithstanding any other provisions of this cer- —

_tificate, the holder shall at all times conduct its opera- _

a in accordance with all treaties and ‘agreements

tween the United States. and other countriés, and

| tlie exercise of the privileges granted by this certificate

shall be subject to compliance with such treaties and

agreements and to-any orders of the Board issued

pursuant to, or for the purpose of requiring compliance

©

(2) The exercise of the authority granted herein shall

be subject to fhere first being obtained from the Cana-

dian Government such operating rights - as may be

necessary. The exercise of the: privileges granted by

this certifjcate shall be subject to such other reasonable

terms, conditions, and limitations required by the pub- -

_lie interest as may from time to time be prescribed

by the Board.

12156

(3) Charter services performed by the holder for the .

Department of Defense shall be furnished at the rates

and compensation computed on a basis no: lewer than

the basis of computation of compensation now or here-

_after specified by the Board in spuieens rules, ‘Tegula-

tions, or orders, ©

. ¥: —

-(12186) Se ec!

This certificate shall be effective oni on 26, 1966:

Provided, however, That prior to the date on which this

certificate’ would otherwise become effective . the Board,

either on its own initiative or upon the timely filing of a —

petition or petitions seeking reconsideration of the Board’s

order of March 11, 1966 (Order E-24237), insofar as such

order authorizes the issuance of this certificate, may by ~

‘order or orders extend such effective date from time to

. time.

The authority to engage in etiaiinalai air : earth:

‘tion as provjded in paragraph 1 shall terminate five years

after the effective date of this certificate. :

The Wrmvess Wuezeor, the Civil ‘Aeronautics Board has

caused this certificate to be executed by the Secretary of.

. the Board, and the seal of the Board to be affixed hereto, ©

on the 11th day of March, 1966. ae > :

_ Haroup R, iiimuninnie

Secretary cs

(Sear)

Issuance of this certificate

to the holder approved by the

. President: of the United States”

on September 27, 1966

ies in Order E-24237.

—>

(12157)

_ Issued pursuant to

Order No 0. ‘B-24237

UNITED STATES OF AMERICA

CrviL -AnronAavtics Boarp

Waseincroy, D.C.

* Certiricatz or Pusiic ConveNIENcE aND NECESSITY

FOR SUPPLEMENTAL Aim TRANSPORTATION

oe

Mopgern Am TRansrorr, Inc.

is hereby autliariged, subject to the provisions hereinafter

set forth, the provisions of Title IV of the Federal Avia-.

tion Act of 1958, and the orders, rules, and regulations

issued thereunder, to engage-in supplemental air transpor-

tation (ineluding inclusive tour charter authority) with

respect to persons and property, as follows: ; ie

1. Between any point in any State of.the United States

or the District of Columbia, on the one hand, and

points {f Canada and Mexico, on the other hand. .

: 2. In overseas and foreign, air transportation, and in

air transportation between places in the same terri-

tory or possession of the United States, pursuant to-

-contracts with the Department of Defense.

‘The service ~~ authorized is subject to the terms,

conditions, and limitations prescribed by the Board’s Regu.

tate

| 576a

(12157, 12158) -

lations for supplemental air transportation and to the fol-

lowing additional terms, conditions, and limitations:

(1): N otwithstanding any other provisions of this cer-

tificate, the holder shall at all times conduct its opera-

- tions in accordance with. all- treaties and agreements

"between the United. States and other countries, and

the exercise of the privileges granted by this certificate _

shall be subject to compliance’ with such treaties and

agreements and to any orders of ‘the Board issued

pursuant to, or for the purpose of. requiring compliance

~ with, such treaties and agreements.

( 2) The exercise of the authority emt herein shall

be subject to there ‘first being obtained from the ap-

propriate foreign governments such operating rights

as may be necessary. The exercise of the privileges

granted by this certificate shall be subject to such other

- reasonable terms, conditions, and’ limitations required

by the public interest as may from time to time be

prescribed bythe Board. —

. SS ‘

'(3) Charter services performed. by the holder for the

Department of Defense shall be furnished at the rates

_ and compensation computed on a basis no. lower than |

' .the basis of computation of compensation now or here- -

after specified by the Board in n applicable — regula-

tions, or + orders. ue |

This oartilinnde shall be affective on November 26, 1966:

‘ Provided, however, That prior to the date on ‘which this

- certificate would otherwise become effective the Board,

vn

87Ta

either. on its own initiative or upon the timely filing of a

petition a on pe titions seeking reconsideration of the Board’s'

order of Ma 11, 1966 (Order E-24237), insofar as such

order authorizés.the issuance of this certificate, may ‘by.

order or orders extend such effective date ~— time to -

tk

time.

The authority to euighge a supplemental air transporta-

_tion as provided in paragraph 1 shall. terminate five years

after the effective date of this certificate..

Ty WITNESS Wirsnor,; *the Civil Acronauties Board has

caused this certificate to be executed by the Secretary of

‘the Board, and the séal of the Board to be affixed murat,

on the 11th iia’ of March, 1966.

Haro R, Sanperson

ts Secretary

(Szau)

-_ Issuance of this certificate

to the holder approved by the

_ President of the United States 3 )

: September 27, 1966 _ a

in Order E-24237. — : 3

~ (42188) :

-

— ee . Me, of

(12159) :

~ ; 12159 :

he He - 6 ‘ : 20 Issued: pniteent’ to -.

- SEU Fig eso Order No. 24937 7

UN ITED STATES OF ‘AMERICA

Ov AxRoNAvTics Boanp -

“+. > | Wasmineton, D.C. -

: : 4 ; . 4

aE . soe

a lke, Ee

CERTIFICATE -OF Puli Chénuadiasien AND ‘Necsserrr

- FOR SUPPLEMENTAL Am TRANSPORTATION '

>»

Pumus ABRONAUTIOS Conronanior

is ‘hereby authorized, subject to. the provisions. hereinafter

set forth, the provisions of Title IV .of the Federal Avia-

" tion Act of 71958, and the orders, rules,.and fegulations —

issued thereunder, to engage in supplementdl air transpor-

~ tation- (including inclusive tour. charter ‘authority) with

respect to persons and property, as follows: :

A Between any point in any State of the United States |

or the District of Columbia, on the one hand, and

points i in Canada, on the other hand. “

ee In overseas and foreign air transportation, ona in

air transportation between places in the same terri-

-tory or possession of ‘the United States, pursuant to

contracts with the Department of Defense.

‘The service > harein authorized’is subject to the terms,

conditions, and muntetone prescribed’ ny, the Board’s Regu-

“ations for supplemental air transportation and to the fol- Ee

5798

ati P ele @ *,

4 * > : e eo

- lowing additional terms, conditions, ‘and limitations :

(1) Notwithstanding any other provisions of this cer-

tificate, the holder shalt at all times conduct its opera;

tions in. accordance with all treaties and agreements .- .

: between the United States and other countries, and

the exercise of the priviléges granted by this certificate ‘s

shall be ‘subject. to compliance with such treaties and. aa.

agreements and to ‘any orders. of the Board issued —

pursuant to, ¢ or for the purpose of requiring compliance

gto with, such treaties and cateonne”

(2) The exercise of the aythority ted herein shall

be subject to there first being obtained from the Cana-

Re dian Government such operating rights as may “ts

necessary. The exercise of the privileges granted b

_, this certificate shall be subject to such other aeaeialile

terms, conditions, and limitations required. by the pub-

lic interest as may from time :to- time be prescribed oo

by\thé. Board. . : | Poy ie

\ * s 12160 : :

(3) Charter ‘services performed by the holder for the

¢: Department of Defense shall be furnished at the rates

and compensation computed on a basis no lower than

the basis of computation of compensation now or here--

after specified by the Board i in — — regula-

tions, or orders.

This eniieain shall be. sdieties on N ovember 26, 1966: :

__ Provided, however, That prior to the date on which this

certificate . would a beocane effective the: Board, .

—_

(12159, 12160) :

ne ee

nes me a 580a ~ ae

(i260) * Sa 3 ‘

either on its own. initiative or upon 1 ‘the tiinely filing of a:

- - petition or petitions seeking reconsideration of the Board’s

order of March 11, 1966 (Order E-24237), insofar as such af

. order authorizes | the issnance of this certificate, may by :

_ order or orders extend such effective -date ae times to’

ee time. ve

The anthotity to. engage in supplemental air - transporta-

tion ‘as provided in paragraph 1 shall_terminate five years

after the effective date of this certificate. . ee f :

In Wrrness Wuerror, the Civil Aeronauties/ Board has, —

- caused this certificate to- be executed by the Secretary ee

the-Board, and the seal of the Board to be axed hereto, &

on the 11th day of March, 1966. .

" | Harotp R. Sanperson

bens peers | Secretary

ce |

Issuance of this certificate

* to. the holder approved by. the aes

Presjdent @f the United States Maran

. on September’ 27, 1966 ue

_ **~ in Order E-24237. Race toeeeir iain: F sea ace argo

{ . a dene es % DPE AN te, OT RRR AON PENT

SPELT TASER ENS HENRI TRE IT HM NE \ oe ‘ anew . °

\ ; ; . | oF : ; ate |

»

“ (42161)

(Cnr Deane tlitaes th heme at nests mame os dat

st Fie

pe eds Je my Issued pursuant’ to =

* heron” © °.* Order No. B-24237—

UNITED STATES OF AMERICA

1 se ae Wik Civ AERONAUTICS Boarp Ge ae

eee Sane Wasnineron, D. ©.

' as CERTiFIcare | or. Pusiic ConvVENIENCE AND Nuchasiey’ - : ae ate \

. FOR - SUPPLEMENTAL Aa TRANSPORTATION ) = |

Sarury AIRWAYS, Inc.

is hereby thetials subject to the provisions hereinafter

‘set forth, the provisions of Title IV of the Federal Avia-

tion Act of 1958® and the orders, rules, and regulations: :

__ issued thereunder, to engage in supplemental air transpor- ;

tation (including inclusive tour charter ‘authority) with

* respect to persons and property, as. follows:

"Between a any. \point in any State of: the United States

ge a District of Columbia, on the one hand, and —

points in Ji amaica, the Bahama Islands, Bermuda, -

Haiti, the Dominican Republic, Puerto ‘Rico, the Vir.. _

gin Islands, Trinidad, Aruba, the Leeward and Wind. —

ee _ward Islands, and’ any other place located in the Gulf -

. - _ of Mexico or the Caribbean Sea, on the otherhand..

+ 2, In overseas and foreign air transportation, and in

pul? air transportation between: places,in the same terri--

(12161, 12162) Se

" tory or possession of the United States, pursuant to

: contracts. with the Department of Defense. i

‘The service barein' authorized is subject to the ‘terms,

conditions, ‘and limitations prescribed by the Board’s Regu-

lations for supplemental air transportation and to the fol-

. lowing additional terms, conditions and limitations :

(1) Notwithstanding any other provisions, of this cer-

\tifieate, the holder shall at all times conduct its opera- ..

tions in ‘accordance with all treaties and agreements |

between the United States and other countries, and

: the exercise of the privileges granted by this ce te

- shall be’subject’ to compliance with such treaties and

agreements and to any orders of . th the Board issued’: ©

pursuant to, or for the purpose of requiring compliance =

with, such treaties and agreements. |

12162

(2) The exercise of the authority granted herein shall ae

be subject to there first. being obtained from: the | ap--

a Propriate foreign governments such operating rights

as maybe necessary. . The . exercise of the privileges

anted by this certificate shall be suk to such other |

' Feasonable terms, conditions, and limi tions: required: ~~

by the public interest as may from time to time be

- prescribed by. the Board. a. ec. *

+. 5

(3) ere pepederde pry for the .

or ferise shall be furnished at the rates’

and compensation computed on a basis no lower than a

the basis of computation of compensation now or here- .

*% . - . . ee * 2 EEE AE FROLE AE AT T

— ~ eseres ; :

Pree eRe ee a * aaa)

‘after specified m= the Board i in applicable rales regula.

tions, or orders. ot )

tees

q

This certificate shall be effective ¢ on metinee: ‘26, 1966:

Provided however, That prior. to the date on which this

- certificate would otherwise become effective the Board,

| - either on its own initiative or upon the timely filing of a

_ ‘petition or petitions seeking reconsideration of the Board’s

order of March 11, 1966, (Order E-24237), insofar as such

order authorizes the issuance of this certificate, may by

LPIA IS en oe

= order or orders extend such effective date from time to

a3 The authority to engage in supplemental air transporta-

tion as provided in paragraph 1 shall terminate five years.

eg after the effective date of this. certificate. a

= In Witness Wueneor, the Civil Aeronauties Board has 7

caused this certificate. to be executed by the Secretary of

the Board, .and the seal of the Board to be = hereto,

1 -~~ on the 11th’ ~~ of March, 1966. , :

Aer . -Harotp R.- Siwpinsdr "

Batra lee cgi : + Seeretary .-

eS (Sub) rn ns res es cae

i ‘

Issuance of tliis certificate.

i... to,the holder approved -by the ©

ac ee President of the United States - .

on September 27, 1966 Beeson yo .

in Qrder E-242877 =

= 9g

- Order No. 5 a

Go tage

*_-—*Wasuineroy, D.C. .

SOT aud. ( ” Cerriricate oF Bostic: ConvENtENcE AND NEcESSITY

| f: Se 8 SUPPLEMENTAL Aik 'I'RANSPORTATION

ae ee. 2 ike

P pee ar or -Sourmny Am Taansronr, Inc.

A : _ is hereby authorized, subject to ‘the provisions heteinafter |

| set forth, the provisions of Title IV of the Federal Avia-

ce ' tion Act of 1958, and.the orders, rules, and regulations i is-

‘sued thereunder, to Pit 4n €upplemental air transporta-

tion (including. inclusive tour ‘charter authority) with

ns -Tespect to persons, and property, as. follows:

1: Between any point in any State of: the United States —

or the District of Columbia, on the one hand, and,

(a), Ameri¢an Samoa, Guam, J ohnston Island, ‘the

Marshall Islands, Okinawa, Wake Island, and —

‘points in Australasia, Indonesia, and Asia as far

_west as longitude 70 degrees east. via a trans-

. pacific routing, on. the other hand;-

Haiti, the Dominican Republic, Puerto. Rico, the

‘Issued pursuant to -~"

(b) points in J amaica, the Bahama Islands, Bermuda, ae

|

\

and’ Windward Isla

Sea, | on the. other ar

.2. In overseas and foreign air transportation, and in air:

transportation between places in the same territory

5850 tere? Crete Neue aes

£8, oe (12168, 12164).

ae Virgin Tsinaiie, Tied “Aruba, the “Leeward a

and any other -place lo- -

cated in the Gulf of Mexico or, the. Cafibbean a

or possession of the United States pursuant to. con- i

tracts with the Department of Defense. -

The service herein authorized i is subject to the terms, con-

. ditions, and limitations prescribed by. the Board’s Regula-,

tions for supplemental air transportation and to the fol-

Sw gir tn additional terms,.¢ conditions, and, limitations;

saa achalasia adie bar ae aha ala

12164

e-

t

(1) Notwithstanding any other provisions of t this cer- |

_ tifieate, the holder shall at all ‘times conduct its opera-

tions in aceordance with all treaties and agreements

between the United States and other countries, and the

exercise of the privileges granted by this certificate ,

shall be subjeet to compliance with such treaties and ‘ek:

agreements and- ‘to any orders of the Board. issued pur-

‘suant-to, or for the _purpose of requiring, ‘compliance

<with, such treaties and agreements...

(2) The exercise of the authority: granted herein shall

be subject to there first being obtained from the appro- ©

priate foreign governments such operating rights as

‘may, be necessary.. The exercise of the privileges —

granted by this certificate shall be subject to such other |

_ reasonable terms, conditions, and limitations required —

by. the public interest as may: from time to time’ be |

‘ prescribed by the Board. ae

a (Seat)

5868 (lt

—

cate) ge Ot ee Ns oan

(3). Charter: services i peiteimesia by't e holder for the

| ‘Department of Defense shall be fur ed vat the rates".

and compensation ; computéd on; a basis no lower than

‘the basis of computation of compensation now or here- |

‘after specified by the Board in Ss rules, ‘regu-

cassia anne Pe greg, oe Mee :

‘This coxtilionta shall be effective on ‘ieiaiaia 26, 1966:

_ Provided however, That, prior to the date on which this‘cer-

tificate would otherwise become effective the Board, either

. on its own initiative or upon:the timely filing of a petition

or petitions seeking reconsideration of the Board’s order of

March 11, 1966 (Order B-24237); insofar as. such order

authorizes the issuance of. this certificate, may by order or

orders extend such effective date from time te time.

The authority to engage in supplemental air -transporta-' °

- tion as provided i in paragraph 1 shall terminate five years

F after the effective. date of this certificate. :

In WItNEss Wuentor, the Civil Aeronautics Board is

‘caused this certificate to be executed by the Secretary of the

Board, and the seal of the Board tc be affixed hereto, on the ,

7 11th — * March, 1966.

. o .

of: Hanow R. SanpERSON

es :

Issuance of this ceettifiea ta - Sie

the holder approved by RO re Soar hs Br

. President of the United eg ri -

on a 27, 1966 1 in Order = ae

a ai a vt

| ae aS Bess Pa ae. 5878 Sh at Se re

ae 12165 : “ | 7 : :

‘ha ‘pursuant, ‘to! .

Order No. EBT ee

owes i, UNITED ‘STATES OF “AMERICA vt

7 ah Crvii Azroxautics Boanp | ols

Wasuineron, D. ae ae Sere

' Cuiemniinns OF ‘Pusuc ConvENtEnce AND Necessrry :

<= = SurrimcanTa AR TRANSPORTATION

. a ‘TRANS feeeainn Amurwes, Inc. |

is s hereby authorized, subject to the provisions Saoclaaties’

set. forth, the provisions of ‘Title IV. of the Federal Avia- .

. tion Act of 1958, and the orders, rules, arid regulations i is-

_ sued thereunder, to engage in supplemental air transporta-

~ tion . (including inclusive, tour charter authority) with so

respect to persons and property, as follows:

PA A er AR A hel NO Nh ts eal tr Ta Re at SDR IDs ae tgh ME ibe ipit oe ee Pre AE ti A eid te ales ~* Re

ve 3 a

FAP raat. babe

1. Between any point in-any State ‘of the United States . :

. or the District of Columbia, on the one hand;and —

: Rea (a). American Samoa, Guam, Johnston Island, the

: Nh tree: ‘Marshall Islands, Okinawa, Wake Island, and

points in Anstralasia, Tadonesia, and Asia‘as far .

q aac ~ west as longitude 70 degrees east’ via a trans-

; pacific. routing, on. the other hand; |

(b). ‘points in J amaica, the Bahama Islands, Bitmatia, :

Haiti, the Dominican Republic, Puerto. Rico, ‘the -

Og Ce OE LONER TS AIRE TON et AN CT: IS as FEET eRe Tee eT Site deities amr aicae e

.

«121685, 42166)

3

-

‘

a :

\ rs

‘ ot o88a

= Virgin Islands, Trinidad, nie, the Leeward and

Windward Islands, and any other:place located in

thé. Gulf of Mexico or the Caribbean Sea, on the

| other hand . 6 a ee

i. ) points: ik, British Honduras, the Canal . Zone,

- Guatemala, Honduras, El Salvador, Nicaragua, -

. Costa Rica, Panama, and in the countries on the.

‘continent of South America, on the other hand. .

In overseas and foreign air transportation, and 1 in-air |

transportation between places in the same territory

‘or possession of the United States pursuant to con- ~

. tracts with the Department of Defense.

The service herein authorized is. subj “to the terms,

conditions, and limitatiens prescribed by e Board’s Regu-.

lations for supplemental air transportation and to the fol-

. lowing additional terms, conditions, and limitations:

12166

, (1) N Stirithetending any other provisions. of this cer-_

" tificate, the holder shall at all times conduct its opera-_

tions\in accordance with all treaties and agreements

between the United States and other countriés, and the

exercise of the privileges granted by this. certificate

shall be subject to compliance with such treaties and

‘agreements and.to any orders of the Board issued pur- |

‘suant to, or for the purpose of Teguiring compliance

with, such treaties and agreements.

" (2) The exercise of the authority grant@l herein shall

be subject to there first being obtained from the appro-

priate foreign governments such operating rights as

smay be necessary. The exercise of the. privileges

(12166)

-

granted. _ this certificate shall bé subject to such other

reasonable terms, conditions, and limitations required a

. by the public interest as may from time to time be pre- . ;

ys sctibed by the Board, : P

(3) Charter. services iactiicaalt by the holder for the

‘Department of Defense shall.be furnished at the rates _

and compensation computed. on a basis no ‘lower than ~

_ the basis of computation of compensation: now or here-

after specified by the ae: in applicable rules, regu-

lations, or orders. — .

This certificate shall be effective on November 26, 1966:

Provided however, That prior to the date on which this cer- .

tificate would otherwise become effective the Board, either

on its own initiative or upon the timely filing of a petition

or petitions seeking reconsideration of the Board’s order

of March 11, 1966 (Order E-24237), insofar. as such order

authorizes the issuance of this certificate, may by. orde¥ or _

os ~ .,orders extend: such effective date from time to time.

~ The authority to engage in supplemental air ‘transporta- |

-tion as provided in paragraph 1 shall terminate five years.

after the effective date of this certificate.

¢ «In Witsess Wueneor, the Civil Aeronaitics Board has

caused this certificate to-be executed by the Secretary of

the_Board, and the seal of ‘the. Board to be affixed ‘hereto,

on the 1th day of March, 1966. : *

Haroip R. SANDERSON

Secretary

(Sean)

Issuance of this certificate to’ aa

_* the -holder approved by the — \ ae

President of the United States on

September 27, 1966. in Onter

| -24237.

Issued pursuant to.

Order No. E-24237

UNITED STATES OF AMERICA |

Crvm. -AERonavtTics Boarp

Wasuincrton, -D. C.

CERTIFICATE OF PusLIC CONVENIENCE AND NECESSITY

FoR SUPPLEMENTAL AIR TRANSPORTATION

\

Wortp Amwats, Inc.

is hereby. puthorined, subject to the provisions hereinafter

set forth, the provisions of Title IV of the Federal Aviation

' . Act of 1958, and the orders, rules, and regulations issued

thereunder, to engage in supplemental air transportation

(including inclusive tour charter authority) with respect ;

to persons and property, as follows:

1. Between any point in any State of the United States

or the District of Columbia, on the one hand, and

' (a): American Samoa, Guam, Johnston Island, the

Marshall Islands, Okinawa, ‘Wake Island, and

points in Australasia, Indonesia, and Asia as far

west as longitude 70 degrees east via a aaa

pacific routing, on the other hand;

(b) points i in Jamaica, the Bahama Islands, Bermuda,

Haiti, the Dominican Republic, Puerto Rico, the

| 591a

(12167, 12168)

Virgin Islands, Trinidad, Aruba, the Leeward

and Windward Islands, and any other place

~ located in the Gulf of Mexico or the Caribbean

Sea, on \ the other hand ; | |

(c) points in ‘British Honduras, the Cinal - Zone,

Guatemala, Honduras, El Salvador, Nicaragua,

Costa Rica, Panama, and in the countries on the

_ continent of South America, on the other hand.

, In overséas and foreign air transportation,‘and in

air transportation between places in the same terri-

tory or possession of the United States pursuant to

contracts with the Department of Defense.

- The service herein anthoriaed is subjtct to the terms,

conditions, and limitations prescribed by the Board’s Regn-

dations for supplemental air transportation and to the fol-

lowing additional terms, conditions, and limitations :

ie 12168

(1) Notwithstanding any other. provisions of this

certificate, the holder shall at all times conduct its

operations in accordante with all treaties and agree-°

ments between the United States and other countries,

.and the exercise of the privileges granted by this

certificate shall be subject to compliance. with such

treaties and agreements . and to any orders of the

Board issued pursuant to,,or for the purpose of re-

quiring. compliance with, such treaties and agreements.

(2) The exercise of the authority granted herein shall

_ be subject to there first. being obtained from the

appropriate foreign governments such operating

rights as may be necessary. The exercise of the

Lae i ca

592a

- (22168) \

privileges granted by this certificate shall be pinaigae to

_ such other reasonable terms, conditions, and limitations

_. required by the public interest as may from time. to.

-time be prescribed by the Board.

(3)° Charter services performed. by the. holder for the

Department of Defense shall ‘be furnished at the rates

* and compensation computed on a basis no lower than -

_ the basis’ of computation of compensation now or here- :

after specified by the Board in ——— my regu-

lations, or orders. oe

: This certificate shall be effective on ‘N woeaibies 26, “1966:

Provided however, That prior to the’ date on which this

certificate ‘would: otherwise ‘become effective the Board,:

either on its own initiative or upon the timely filing of a

petition or petitions seeking reconsideration of the Board’s

- ‘order of March 11, 1966 (Order E-24237), insofar as such

order authorizes the issuiance of this certificate, may by -

3 order or orders extend: such effective date from time to

ee ere

time. @ : ee

em authority to engage | in n supplemental air transporta-.

tion as provided in paragraph 1 shall terminate five years,

after the effective date of this certificate. |

In Witness WHeEneor, the Civil Aeronautics Board has

caused this certificate to be executed by thé Secretary of

’ the Board, and the seal of the Board to be. affixed hereto, on

the 11th day of March, 1966.

\Harorp R. SANDERSON

: (Szau) aces | Secretary -

Issuance of this certificate

to the holder approved by —-. oe

_ President of the United States , aes

on September 97, 1966:

". in Order E-24237: -

WAR TREE OP Sarr pt hage Oma RH ye >

(12169) :

*

3

:

2

z

=

“

?

ry

3

:

;

' 12169

‘Issued pursuant to

- Order No. E- 24237

UNITED STATES OF AMERICA

Civ ‘AERONAUTICS Boarp

~

a ‘Wasuineton, D.C.

CERTIFICATE OF PuBLic CONVENIENCE AND NECESSITY

FOR SUPPLEMENTAL AIR TRANSPORTATION

, Zaxror’ AIR Tuameccen, ie.

is hereby authorized, subject to the provisions hereinafter

’ set forth, the provisions of Title IV of the Federal-Aviation _ |

_ Act of 4958, and the orders, Tales, and regulations issued *

~-—— thereunder, to. engage in supplemental air transportation .

(including: inclusive tour charter authority) ™ respect ‘to

‘persons and property, as follows:

_ 1. Between any point in any ; State of the United | States

or the District of Columbia, on the one land, and

‘points in Canada and Mexico, on the other hand.

BA tir oes MN gtr * *

2. In overseas and foreign air transportation, and in air

. transportation between places in the same territory

5 or possession of the United States, pursuant to con-

: tracts with the Department of Defense. |

‘The service herein authorized is subject to the terms,

conditions, and limitations prescribed by the Board’s

ee eee ee ee eee!

(12169, 12170) ae at i

‘ . * .

" Regulations tee rogplenaital air transportation and to the .

following additional terms, conditions, and limitations :

(1) Notwithstanding any other provisions of: this --

certifftate, the holder shall at all.;times conduct its -

‘operations in accordancé with treaties and agree-

ments between the United States and other. countries, |

and the -exercise of the privileges granted by this’ |

certificate shall be subject to compliance with such

treaties and agreements and to any orders of the Board

issued pursuant to, or for the-purpose « of - ‘requiring f

compliant such treaties and agreements.

w (2) The exercise of the authority granted herein shall

| be subject to there first being obtained from the appro-

_ priate forgign governments such operating rights as -

may be “necessary. The exercise of the privileges

- grantéd by this. certificate shall be subject to such

other ‘reasonable terms, conditions, and limitations —

_ required by the public interest as may from time to

time be prescribed by the Board. :

a Re: 12170 |

(3) -Charter services performed by the holder for the.

Department of Defense shald be furnished at the rates

and compensation computed on a basis no lower than

the basis of computation of compensation now or here-

after specified by the Board in cagteme rules,

regulations, . or orders. . , :

4

This certificate shail be effective ¢ on November 26,1966:

Provided however, That prior to the date on which this —s_—

certificate would otherwise become effective the Board, — ;

me ,

- - . . nee eee — BNE LE COTO RP te RT ey MEMES CET 2 de Sey RT tite enhgten hs

EE SE Pte UR RMR Rh IER RDS BET TS" : : PRESEN TIT ‘ s

Pod 595a° | |

See ee

either on its own initiative or upon the timely filing of a

petition or petitions seeking reconsideration of the Board’s -

order of March 11, 1966 (Order E-24237), insofar as such

order authorizes the issuance of this certificate, may by

order or orders extend such effective date from time to.

. > time.

_ on the 11th day of, March, 1966.

_ (Szax).

: _The authority to engage in supplemerital air transporta- .

tion as provided in paragraph 1 shall terminate five years

_ after the éffettive date’ of this certificate.

In Wrrness ‘Wurneor, the Civil Aeronautics Board has

caused this certificate to be executed by the ecretary of »

the Board, and the seal of the Board to be afffked hereto,

Harotp R. SawDERsON

‘Secretary

a *

Issuance of this certificate

to the holder approved by the

President of the United States -

on September 27, 1966

in. Order E-24237.

_ 596a

(12171) ag

12171

we "Order No. E- 24238

UNITED STATES OF AMERICA. .

—Crvm, Arronavutics Boarp

WasHINGTON, D.C.

Adopted by the Civil- Acronanties Board”

at its office in Washington, ‘D. -:

: on the 11th day of March, 1966 /

| Docket 13795. et al.

+

SUPPLEMENTAL ‘Agr. Senvice Préce CEEDING |

——

ORDER ‘

A full public hesrine having been held in the shove.

entitled proceeding and the Board, upon ‘consideration of |

the record, having issued its opinion. containing its findings, ©

_ conclusions, amd decision, which is attached hereto. and.

_ made a part hereof; |

Tris ORDERED : :

‘ 1. That there be and biilioe are hliiaelh aid load con-

ae currently herewith amendments to Parts 208 and 378 of the

Board’s Regulations, _— are attached hereto and made

a part hereof, . |

_ 2. That said amendments shall be effective on N endian”

26,1966.

- By the Civil Aeronautics Board:

_-Harotp R. Seooansos

(Sear) : ee ee Seciktary

. 2 For edministnativs conveniencé we lene combined ‘into a she

. amendment to Part’ 378 the revisions required by the decision in ~

the instant proceeding as. well as the decision in the Reopened

Transatlantic Charter. Investigation seein sre: Tour Fhane),

Docket 11908 et ian! | te

, (12172)

Regulation No. ER-474

UNITED STATES OF AMERICA -

Crvm AgrronavtTics Boarp °

* WaSfincton, -D. C.

‘ . : . eo -

| ns, bio Eéonomic Regulations

| | _Amendment. No. 2 to Part 208.

” “Bffective November 26, 1966

' Adopted: March 11, 1966

. Part 208—Terms, Conprrions anp Limitations oF

' * Crrtircares To. ENcacr in SUPPLEMENTAL

Am Teansromeaiiet ne Saas

ny OF Covaniaii TO edeialinis AND ——

CERTIFICATED SuPPLEMENTAL AIR TRANSPORTATION

- Part 208 of the Board’s Economie Regulations (14 CFR

‘Part 208), which contains, inter alia, certain terms, condi-

tions and limitations of .interim certificates issued pursuant

‘to section 7:of Public Law 87-528 and of certificates. issued .

‘pursuant to section 401(d)(3) of the Act, was revised and

reissued* in conjunction with the Board’s decision in the

domestic phase of the Supplemental ‘Air Service Proéeed-

, ing, Docket 13795 et al.2 In ordér to correspond with the -

, > Regulation ER-454, adopted on. March 11; 1966, and .published

in 31 F. R. 4771, | ali 7

*Order B-23350.

= 12173). )

- seope of authority granted to supplemental air carriers:

in that decision, the regulation as then adopted pertains

only to authorizations to perform interstate air ——, 3

tion.’

To uneninl’ with eithoriaations being awardéd : as a

result of the Board’s final decision in the foreign and over- .

» seas ~_— of the Supplemental case,* which is being issued

* 12173

- concurrently herewith, we are amending Part 208 to ex- >

pand its coverage to certificated supplemental overseas

and foreign air transportation. In view of the: fact. that

the regulatory problems with respect to such authority

were dealt with by the Board in the akgve-mentioned pro-

ceeding, further notice and public procedure on’ the amend-

‘ments involved herein are unnecessary and not in‘-the ..

public interest. . a m

‘Accordingly, the Board hereby dinalin Part 208 of its -

Economic Regulations (14 CFR Part 208), effective Novem-

_ ber 26,. 1966, as follows:

1. ‘Amend the table of contents by piling $208. 32a ont

by revising §208.33 to read as follows: -

208.328 Flight delays and substitute air’ r* transportation

. (foreign). :

208. 33 Flight déleys and substitute air transportation,

" (interstate and overseas). :

¢

* Between any point i in any State. of. the United States or the i

District of Columbia, and:.any other point in any. State - the

United States or the District or Columbia.

“ Order E-24237.

; . > ;

3 meres + CR ON par rita ose’

of a es a ee * canta, 19174) |

2. Amend $208.3 by revising a raphs: () and bs

thereof to read as follows: |

(@) “Supplemental air eign tons (other than op-

cnntiens subject to Part 295 of this subchapter) means ~

charter flights in air transportation’ ‘performed pursuant to

(1) .an ‘interim. certificate or. ‘authorization issued under

|... seetion 7 of Public Law 87-528, or (2). a certificate of public’

/ -. © eonvenience and necessity issued under section 401(d) (3)

of the Act authorizing the holder to engage in supplemental —

‘air transportation of persons and property between any .

point in. any State of the United States or the District of

" Columbia, and any other nit in any. State of the: aoe

Wee ee 3

* States or the District-of Columbia. (eaelusivd.of of air: trans-

portation within the State of Alaska) ar, in. foreign or

a: overseas supplemental air transportation.

a os

e.,

jullie + it

>

*)

.

Se Saat CCB es

oe “Substitute Service” means the performance -by an.

a - air. carrier of foreign or overseas air transportation, or air |

oe transportation between the 48 contiguous states, on ‘the one

*

mal. ‘“ e

Bal ARN NETS pS ds ale, etm

.

hand, in planeload lots pursuant ‘to an agreement with an-_

i tual obligation to perform. such.air transportation for the 7

ie _ Department. of Defense and when the performance of. such.

‘air transportation is “not to ‘take place ‘daring a =

longer $ban three, weeks, , 7

% Amend §208. 32(d). to an as follows: .

§208.32 Tariffs and terms of service.

&

hand, and the state of Alaska or Hawaii, on the other — |

| other air carrier to-fulfill such other air carrier’s contrac.

| vit law:

(12174; 12175)

(d) Each and every contract for a charter to be operated*.

hereunder shall incorporate. the provisions of 4§208.10° :

through 208. 15, inclusive, and 208.32a, 208.33 and 208.33a.

where applicable, concerning insurance’ and substitute

transportation.

4. Add a new §208.32a entitled “Plight delays and ‘sub-

. a air transportation (foreign)? to read as follows:

>

- 208. 32a Flight delays ‘and substitute aur transportation

f foreign ).

Supplemental air carriers shall assume, ‘aad publish as

part of the rules and regulations of their tariffs applicable

to passenger service in foreign air transportation, the fol- |

lowing obligations without nds pan and in additign,‘ te.

any other rights or seems 0;

12175 —

(a). Substitute atr : transportation. r

(1) On all charter flights, unless the air carrier causes

an aircraft to finally enplane each passenger and commence

the takeoff procedures at the’ airport of departure before

the forty-eighth hour following the time scheduled for the:

departure of such ‘flight, it shall: provide substitute trans-

portation in accordance with. the provisions of this para-

graph.

(2) As soon as the air carrier discovers, or should have

discovered by the exercise of. reasonable prudence and

forethought, that the departure of: any such charter flight .

will-be delayed more than fgrty-eight hours, such air car-

rier ‘shall arrangé for and. pay the costs of substitute air

ssengers under oe "eae

——~n Ce

°

-

a3.

~. (12175, 12176)

transportation for the charter group on another charter

flight, operated by any other carrier or foreign air carrier.

«(3) When neither the charter-transportation contracted

for nor substitute transportation has been performed be-

fore the expiration of forty-eight hours following the

scheduled departure time of any such charter flight, the

charterer, or his duly*authorized agent, may arrange for. |

substitute air ‘transportation of the members of the charter

group, at economy or tourist class fares, on ihdividuaily

ticketed flights and, the chartered air carrier shall pay the

costs of such air transportation to the substitute air carrier.

_or foreign air —

(4) In avetabsing the period of time during which the |

_* departute of a charter flight has been delayed within the

- purview of this paragraph, ‘periods of delay caused by the

prohibition of flights* from the airport of departure because >

of weather or other operational conditions shall be excluded

if, and while, the air carrier had'an airworthy aircraft which

is capable of transporting the charter group in a condition

of operational readiness posted at such airport.

-(b) Incidental expenses.*

(1) On all charter flights bound from a point siatatiie the

continent where the charter originated to the point where

S Although the requirements with respect to providing incidental

expenses are-made expressly applicable only to the return leg of a

charter flight, the air carriers are expected, in the case’ of delay in

departure of the originating ‘leg of a flight, to furnish such. inci-

dental expenses to charter passengers whose homes are not located _

within a reasonable distance from the. wean of a of the

QO:

(12176, 12177)

6028 |

‘ . . ————

it terminates, unless the air carrier causes an aircraft to

finally enplane each passenger and commence the takeoff _

- procedures at the airport of departure before the sixth o

“hour following the time scheduled for the departure vil 7

such flight, it shall pay incidental expenses in accordance a

with the provisions of this paragraph. Such’ payments

shall be made at the airport of departure as soon as they |

become due to the charterer, or its duly authorized agent,

for the account of each passenger, including infants and

children traveling at reduced fares.

(2) Such payments shall be. made at the rate of $16. 00

for each full twenty-four hour: period of delay following |

the scheduled departure time. However, the ‘ sum-of $8.00

shall be paid for each passenger delayed six hours follow-

ing the schedtled departure time. Thereafter, during the

succeeding 18 hours of delay, an additional sum of $8.00

shall be paid for each passenger delayed in installments

_ of $4.00 for the first and second succeeding six-hour period —

7 | 12177 : Ras

of delay, or any fractional part thereof. If the delay con-

_ tinues beyond a period of 24 hours following the scheduled

departure time, such payments shall be made in equal in-

stallments of $4.00 for each further six-hour period of

delay, or any. fractional part thereof: Provided, however,

- That the air carrier may, at its option, discharge this obli- _

gation by providing free meals and lodging in lieu of mak-

ing such payments. The obligation of the air carrier to pay

incidental expenses or provide free meals ahd lodging shall:

cease when substitute air transportation is provided in

accordance with the provisions of paragraph (a) of this

“section. nee

idea Ni Al As agen,

§208.33 Flight delays and substitute air transportation,

_ §208.302. Terms of service.

603a

(12177)

5. Amend the title of §208. 33 -to read as follows:

t

( interstate and overseas).

6. Amend §208.302(b) to read as follows:

O°

* e¢. @ e .@

4

(b) The terms of service prescribed i in §§208.10 through

208.15, inclusive, 208.32(d), 208.32a, 208. 33 and 208.33a

shall be applicable i in the case of single entity charters.

(Section 204(a), 72 Stat. 743, 49 U. S. C. 1324. Interpret or

apply sees. 401(d) (3), 401(n), 407 and 417 of .the Federal

Aviation Act, 76 Stat. 143, 49 U. S..C. 1371; 76 Stat. 144,

49 U.S. C. 1371; 72 Stat. 766, 49 U. S. C. 1377; 76 Stat. 145,

"49 U. S. C. 1387; and sec. 7 of Public Law 87-528,.76 Stal.

146.)

By the Civil Aeronautics Board:

Harotp R. Sanperson -

: 3 . . _ Secretary

(Sea) Teen:

Note: This is Anjendment No. 2- to Part 208 effective

May 1 13, 1966. | )

Goa.

(12178)

12178

Regalation No. SPR- 16

UNITED STATES OF AMERICA *

CiviL AERONAUTICS Boarp

eS

WasHincton, >. c

Special Regulations

Amendment No. 2 to Part 378

* Effective: November 26, 1966

_-Adopted: March 11, 1966

‘Parr 378—IncLUsIVE Tours BY Seccinemniinitinen,

‘Arr CarRRIERS AND Tour OPERATORS

EXPANSION OF COVERAGE TO OVERSEAS AND

_-Foreicn Atm TransportTaTION

Part 378 of the Board’s Special Regulations -(14 CFR

‘Part, 378), which contains the regulatory provisions gov-

_ erning the operation of inclusive tour charters, was origi-.

nally issued? in conjunction with the Board’s decision in the

[i . domestic phase of the Supplemental Air Service Proceed- ,

| | ing, Docket 13795, et al.? In order to correspond with the

scope of authority granted to supplemental air carriers in.

that decision, the regulation as then adopted pertains only

to inclusive tours in interstate air ‘transportation.

1 Regulation No. SPR-14, adopted March 11, 1966, and published ©

in 81 F. R. 4779. :

. 2? Order E-23350.

. »

ail ae 6058 | ae

aes (12178, 12179)

To correspond with authorizations being ‘awarded as a

_ result of the Board’s final decisions in the foreign and over-

- seas phase of the Supplemental case® and in the Reopened © cane

Transatlantic? Charter Investigation (All-expense- Pour ~

—_—

Phase), Docket 11908, et al,,* which are being issued ' con-

Lo ,

“currently. herewith, we are amending Part 378° to expand

its coverage to inclusive tours in overseas and foreign air

transportation. In view of the fact that the. regulatory

problems with respect-to such authority were dealt with

by the Board in the above-mentioned proceedings, and be-

‘cause parties to the rule making were heretofore given the

opportunity to comment on this matter,® further noficé and

public procedure on the amendments involved herein are

unnecessary and not in the public interest.

Accordingly, the Board hereby amends Part 378 of its

Special Regulations effective November 26, 1966, as fol-’

lows: | nae p

1. By revising (378.1 to read as follows:

5 Order E-24237.

* Order E-24240.

° Part 378 as originally. proposed pertained to interstate and

overseas air transportation (Notice of Proposed - Rule Making

SPDR-6, January. 5, 1965, 30 F. R. 281). Moreover, the proposed

regulation was amended to cover foreign air transportation (Sup-

plemental Notice of Proposed Rule Making, SPDR-6B, October 11,

1965, 30 F. R. 13077). Comments concerning both of these Notices

were received, as set forth in SPR-14, supra, and have been con-

sidered by the Board. . pe

"a

(12179, 12180)

* §378.1 Applicability.

>

- This part establishes the terms and conditions governing

_ the _furnishing of inclusive tours in interstate, overseas

and fi foreign n air traiisportation by supplemental air carriers

and tour operators. This part also relieves tour operators

_ from various provisions ‘of the Act and the Board’s regula-

tions for the purpose of enabling them to provide inclusive

tours to :members of the general public utilizing aircraft

chartered from supplemental air carriers. The provisions

of this regulation shall not be construed as limiting any

12180

other authority to engage in air transportation issued by

the Board. Nothing contained in this part shall be con-

strued as repealing or aménding any provision of any of

the Board's regulations, unless the context 80 requires.

2. By revising §378. 2(a) to read as tolipws eee

§378.2 Definitions.

As used in this Part, unless the context otherwise re- |

quires— ~

(a) “Inclusive tour charter” means the charter of an

- entire aircraft by a tour operator for the carriage by a

supplemental air carrier of persons traveling i in air trans-

portation on inclusive tours.

- (Sections 101(3); 204(a), 401, 409 and 414 of the Federal

Aviation Act of 1958, as amended, (72 Stat. 737; 49 U. S. C..

1301 ; 72 Stat. 743; 49 U. 8. C. 1324; 72 Stat. 754 as amended

by 76 Stat. 143; 49 U. S. C. 1371; 72 Stat. 768; 49 U. S.C.

EE Dati iia dd sat PRE ie head vases

.

Pos,

(12180)

1379; 72 Stat. 770; 49 U.S. C. 1384) g and section 7 of Public

Law 87- 528 (76 Stat. 146; 49 U. S. C. 1371).)

By. the Civil Aeronautics Board:

Haroxp BR. Sanpzrson P

Secretary

(SzaL) | | :

| ' Note: ‘This is Amendment No. 2 to Past 378 silat

May 13, 1966.. : | °

(12181)

12181 |

oy | -.. Order.No. H-24989

UNITED STATES OF AMERICA |

Crvin Azronavtics Boarp |

Wasmincr0n, x ¢.’

Adepted by the Civil Aef®nautics Board —

at its office in Washington, at ae

on the 11th day of March, 1966 °

Docket 13795 et al)

‘SurPiemenrat Am Service Procerpine-

ORDER | ;

A full: public hearing having been held in the shane:

entitled proceeding and the Board, *upon consideration of:

the record and on the basis of the findings and conclusions _—

set forth in the Board’s decision of March 11, 1966, Order >

E-23350, having issued its opinion containing its findings, ~

conclusions, and decision -which is attached marety and

made a part hereof ;

Tr Is. OnpEREp: heer anh ae oo

1. That the interim certificates and interim authority

‘ __» for supplemental air service, to the extent. not, previously *

| ordered terminated by Order E-23350, March 11, 1966, shall

‘. terminate with respect to each of the carriers whose names

are set forth in paragraph 1 of Order E-24237, issued con- _

OE ON SAREE AIT EINES AMD fr aOR sete os GOA le IOC? TR Op NO TE METS > ” «pet Lom ee «tern oe

eee ap See fy

temporaneously herewith, upon the. eiflectivences of the

certificates respectively issued thereunder. |

2. That this order shall be effective upon: the date of the —

approval by the President of the United States of Order ~

- E-24237, issued contemporaneously_ herewith, * ~

By the Civil ganxteneaie Board:

. . Q i

Hined 2 SANDERSON .

. Secretary ©

(Snax)

a\ ° >

> od on areneenamtanrnes Ano ORR a aes

faire Blox —_ ‘ +3 ee 7 OE AQUOS RD TEEN: amd Wi deecine PRE PRI NO » ETS ‘ oe oe

Sep i ; 4 :

, -. \

ees 610a

(12322) :

* Order No. B-24431

“UNITED STATES OF AMERICA * |

“Crvit AERONAUTICS Boas .

Pe)

| Wasemxerox, D. C.

Adopted by the Civil hattvaivelten ae

at its- office in Washington, D.C. }

on the 22nd ay of November, 1966

o*

“a:

Doéket 13795, « ‘et al.

SUPPLEMENTAL Am Service :

* PROCEEDING :

Docket 11908, et al.

Réopenep TRansaTLaNtic CHARTER

ae INVESTIGATION :

‘ORDER DENYING RECONSIDERATION"

*By Orders E}-24237 through E-24242, issued on Septem-

ber 30, 1966, following Presidential approval i in the above-

entitled proceedings, including the all-expense tour phase

of Docket 11908, the Board granted certificate authority to

various supplemental. air carriers to engage in civilian and

~ military charter. flights, including inclusive tour charters,

with — to persons and property’. in the foreign and’

_ 2.Those carriers granted transatlantic authority, however, were -—

‘not — to — cargo charters. :

. °

‘Z |

'

‘* ‘ ° _- & - 2

7 - *. : : ° e .

a af ; ° ‘

« ma . . .

aie ae 9 *

pigien iain’ PE Te ¥ ‘ ERIN LY AIG le aaa al | Teen “ ALIA TE LI NCEA LRN LE TRUE

: - . ty bs

> i

4 “ae.

, . °

°

. /

/

_- Saturn Airways in that area.?

i. ae 4 _

?

\

ee . .

‘6lla : io Y:

| _ (12322,

7 overseas areas specified in the respective certificates. The

- foregoing authority was granted for a five-year term from ..

the effective date of the certificates (November 26, -1966),

with the exception of the’transatlantic certificates which

expire on April 18, 1969, in order to coincide with the

- authority previously granted to. Capitol Airways _ and

Petitions for reconsideration of the above Board ‘orders, —

and for other relief, have been filed by various parties.*

Answers in support of, or in opposition to, the petitions.

_ have also been filed.‘ eres = ;

Upon. consideration of the aforesaid pétitions, we find

- that the matters set forth therein do-not establish error in

the Board’s decisions or otherwise demonstrate. that the

relief requested is warranted.’ ec ,

va

” *See Orders. E-20530 and. E-20531, February 24, 1964..

* Capitol Airways, Johnson Flying Service, Modern’ Air Trans. -

‘port, Overseas National Airways, Saturn Airways, Trans Carib-

bean Airways and Zantop.Air Transport. : ie

¢ American Flyers Airline, Bureau of Operating Rights, Capitol

irways, Overseas National Airways, Pan American: World Air-~

“ ways, Trans Caribbean Airways, Trans. World Airlines,’ Vance

International Airways, and Zantop Air Transport. : In addition, a -

late-filed answer was submitted by Seaboard World Airlines, and

a.reply to the Bureau’s answer was filed by Saturn, both of which

we have determined to accept. - , “3

5 The. petitions for reconsideration filed by. Overseas National .

Airways and Capitol Airways also Tequested that certain'amend.

ments be made to Parts 208 and 295 of the Board’s Economic

. Regulations. These matters are treated separately in Regulations -

_ ER-478 and ER-479, which are being issued concurrently herewith.

bas

° ee oe

. ’ : 5 .

4 *

Se " . " * HI SRS cag

RPE NERA E AON EMER TCR ETE NIRROR IS (sane APO NORMS E Taga prime Perna nar :

. ™ ‘ ‘. > s

i ; e

ae aeons age 612 |

oS ot pe ere

_ ACCORDINGLY, Ir Is ORDERED THatT.. ; ;

fe The motions o Seahoard, World ainis and Saturn

Airways for leave to file otherwise unauthorized docu-

ments be and they hereby are granted; and»

2.. The petitions for reconsideration and other relief

filed herein. be and they hereby are denied. .

By the Civil Aeronauties Board:

2

- Harotp R. SANDERSON

\ .

hs Warder | ee ry

s 3 ‘a

(SEax) ; :

% -

a

a

> . = °.

; ‘ .

; } ‘

ie , 2° c

: tie

. Pf io e

\ 1

> " . \ ‘

‘\

re “ ‘

\

\

} - ( ; i

‘ea ag B

‘ 7 ee ¢ » .

. de

3

s ‘ e »

( \ Ba

_ 6l3a °- ao : es : ;

: . } ae : ‘ . r a y a ‘

[Reg. No. ER-478] io -

_ Part 208—Terrms, Conprrions anp Luarrations or CERTIFI

" Gétss "To Encace ux SuprtementaL Ain TRANSPORTATION

. Substitute Air Transportation; Foreign

Adopted by ‘the Civil Aeronautics Board at its office. in

Washington, D. C., on the 22d day of’ November 1966. °

_- In conjunctioff with its decision in the foreign and over.

seas phase of the’ Supplemental Air Service ‘Proceeding,

Docket 13795, et al,’ the Board concurrently amended Part |

208 of its Economic Regulations, which contains the froi- _.—s«.. &

sions governing. the charter operations of certificated sup- i Se

____Plemental air carriers except those’ rules applicable to — )

inclasive tour charters,.to expand the coverage of that a

‘regulation to foreign and overseas air transportation.? In _

- <itS petition for reconsideration of the above decision, Over-

seas National Airways ‘Tequests that §208.32a as adopted ~

_ -therein* be amended (1) to.exclude those delays caused: by

the prohibition of flights to, as’ well as from, the airport

of departure becausé. of weather. or other operational con-

ditions, and (2):to delete the requirement that the delay

will be excluded only if it occurs while the air carrier has:

aOF

; a ,Onders 1.24937, B.24938, and E.24239, issied on Sept. 30, |

__* Regulation ER-474, which was attached to and incorporated in _

. * Section 208.3 ovides, inter alia, that following a delay of

, fe of a charter flight. substitute afr trans-

¢

es

an airworthy aircraft available at the departure airports

The only reply to ONA’s petition was filed by the Board’s

Bureau of Operating Rights, which concurred in the first

proposal but made no comment with respect to the second.

On reconsideration, we have determined to amend

§208.32a in the first respect set forth above in order to ex-

' pand the exculpatory efféct of that provision to situations _

where the carrier is prevented by weather or othér opera-

tional conditions from positioning an aircraft at the airport

of departure. However, we shall deny ONA’s petition with

respect to its second request since it is not unreasonable

in our view to require a carrier to maintain an aircraft in

_operational readiness during the period of delay.*

For the reasons: set forth in Regulation ER474, the

_ Board finds that further notice and public procedure hereon

are not in the public interest. Accordingly, the Board

hereby amends Part 208 of its Economic Regulations (14

CFR Part 208), effective November 26, 1966. °

“If ONA’s second proposal were sini a carrier = com-

. mence maintenance on‘an aircraft during a period of delay caused

by. adverse weather and, if the weather suddenly abated, the

aircraft — not be in. ‘condition to —- depart.

a 615a

3

12327-12329 _

(Reg. No. ER-479]

Past 905—"Taaweatiawnsc SUPPLEMENTAL

Arm TRANSPORTATION

- Definitions; Charter Flight

Adopted by the Civil Aeronautics Board at its office in

Washington, D. C., on the 22d day of November 1966.

In conjunction with its decision in the Reopened Trans-

(12327-12329) _

atlantic Charter Investigation ( All-expense Tour Phase), ; eae

Docket. 11908, et al.,' the Board amended §295.2(b) of its -

Economic Regulations to expand the definition of trans-

atlantic.“charter flight” to include inclusive tour charters.”

Subsequent to the adoption of the above amendment (ER-

475).on March 11, 1966, but prior to its issuance on Sep-

‘tember 30, 1966, the Board issued a separate: amendment

(ER-467)* revising §295.2(b) so as to authorize the trans- —

atlantic supplemental air carriers to furnish free and re-

. duced rate transportation to employees of other carriers

‘under certain conditions. Since ER-475 does not include

the language adopted in ER-467, it now becomes necessary

to amend §295.2(b) so as to —— the provision con-

cerning free air nee. .

.* Orders E-24240 and E-24241, issued on Sept. 30, 1966.

? Regulation ER-475, welch was attached to and incorporated in

the above. orders. :

* ER-467 was adopted on June 24, 1966.

?

™™

. - 616a_—

(12887-12929) eee

Capitol Airways ‘in its petition for reconsideration of

Order E-24241 and Regulation ER-475, issued. on Septem-

ber 30, 1966, has ‘requested that Part 295 be amended so

that foreign as well as domestic persons would be ‘author-

ized to become tour operators. This matter was not liti-

_ gated in the reopened proceeding and it raises special prob- f

lems as to the extent to which the ‘Board ‘should assert

. jurisdiction over and regulate foreign tour operators. Ac-_

cordingly, we will defer the matter for future consideration

‘inarule making proceeding. :;

.Inasmuch as the regulation involved herein involves

only an administrative correction, we find that further

noticé and public procedure hereon are unnecessary and —

not in the public interest. Accordingly, the Board hereby

amends §295.2(b): of its Economic ens effective.

November 26, 1966. :

Abie td en

* me Ay Pris Peeper ooh rape Pari ee < 4 te '

Pe my eho aN Gagr REA eS 9 NAR AS Sees Nia het risa! Sn initia DO A Det nips lite ans

“a .

aa My,

(3585)

Ordex No. E- 16023

: ‘UNITED STATES OF AMERICA

Cw Axnowavrics Boagrp

~Wasurnerton, D. C. : 7 ae :

Adopted by the Civil Aeronautics Board

‘at its office in Washington,: D.C.

on the 14th day of November, 1960

Docket o

‘TRANSATLANTIC CHARTER

INVESTIGATION

ORDER OF INVESTIGATION AND CONSOLIDATION

gAS detailed i in. the Notice of Proposed Rule Making i is-

sued contemporaneously: herewith (EDR-21, Docket 11907,

Part 295), we have concluded that the continuing develop-

_ ment of transatlantic passenger charter transportation”

warrants review in a formal proceeding to determine

whether the: public canvenience ‘and necessity require a

more permanent authorization of transatlantic charter ser-

vice by air carriers not possessing certificated route author-

ity for individually ticketed passenger service across the

Atlantic. Our order herein institutes such an investiga-

tion and directs consolidation therewith of pending applica-

tions for certificates of public convenience and necessity .

to — transatlantic passenger charter flights.

| on

? e “——

=

ORR ONE RENEE

eee 618a

(12885, 12886),

; THEREFORE, Ir Is Oteuien:

‘1. That an investigation, Docket 11908, be and sade

is instituted to determine whether the public convenience

and necessity require the certification of one or more air

‘carriers to conduct transatlantic passenger charters from —

or to points in the United States and, if *. under what

i terms and conditions; E

2. That the applications of the iii anual. carriers

in the. dockets noted be and hereby are consolidated with

the investigation instituted ‘herein by ordering ition

No.1:

aN, Applicant | _. “Deeket No.

Overseas National Airways, Inc... 8056

United States Overseas Airlines, Inc... - 8951

3. That this proceeding be set down for prehearing con-

ference before an examiner of. the Board at a time and

place hereafter to be designated;

4. That this order be served on all supplemental air

carriers, on all applicants for supplemental air carrier

authority, and on all other air carriers holding certificates _

of public convenience and necessity.

This order will be published in the Federal Register.

By the Civil Acronanties Board:

Ty, — C. Lesren

- Robert C. Lester

- (Szar)

A, ip ew rd tg rrcner

, 2

SARs AE ER NL Hier te:

. ae ’

NT ah et ASS ee That ea S toa wise as ohbood

eT

= a NPR EME BARRE MORES ayo OE

Ds ex

Shit es

‘

(12348)

12348

EDR-21

UNITED STATES OF AMERICA

3 Crvm Agronautics Boakp

Wasuinecrton, D.C.

¢

Economic eine

Docket No. 11907.

| Dated: November 16 1960:

Part 295—TRawsaTLantic on Tarrs

| "NOTICE OF PROPOSED RULE MAKING

Notice is hereby given that the Civil Aeronautics Board

has under consideration. Proposed amendments of Part 295

of its Economic Regulations to eliminate the requirement

of prior Board authorization or approval of transatlantic -

passenger charter flights a within the scope of this

regulation. |

This regulation is: proposed enise the authority of Sec:

tions 204(a) and 416 of the Federal Aviation Act of 1958

- (72 Stat. 743 and 771; 49 U.S. C. 1324 and 1386). -

Interested persons may participate in the proposed rule

making through submission of ten (10) copies of written

Uata, views or arguments pertaining thereto, addressed to

the Docket Section, Civil Aeronautics Board, Washington |

25, D. C. All relevant matter in communications received |

on or before December 16, 1960, will be considered by the

Board before taking final action. on the proposed rule.

Copies of such communications will be available on and

od

6208

(12848, 12349)

after ‘December 16, 1960, for examination by interested

persons in the Docket Section of the Board, Room 711,

ase | 19349

_ Universal Building, 1825 Connecticut “‘Avenné, N. W., Wash-

ington, D. C.

By the ——s Aacemnsillne Board:

/s/ Rosert C. Lester

| Robert C. Lester

3 ; yaa nc aie ‘Secretary

(SEAL) Seas

EXXPLANATORY STATEMENT:

There are now three classes of air earriers which pro- '

vide. the bulk of transatlantic passenger charter service.

These are the United States flag route carriers which. are

os certificated to carry passengers across the ‘Atlantic, cer- “

-taint foreign air carriers, and the United States supple- ,

mental and cargo carriers. Prior to 1955, only the first

‘two classes were available to provide charter service for —

the traveling public. In that year, the Board issued a new

policy—called the: Transatlantic Charter Policy—which

- gave rise to a new category of carriers which provide addi-

LPR EEE Let t=

tional charter service. In adopting a policy of granting ;

individual exemptions to the Supplemental air.carriers and

the certificated cargo route carriers for transatlantic char-

‘ter service, the Board -was moved in part by indications

that during the peak travel season, it was difficult if not

impossible to obtain an aircraft charter. Since adoption of

621a

ee eal emamay

the Charter Policy, there has been a substantial ‘and a

tained growth in the use of ‘charter service in which this ©

new class of carrier has played a substantial part.

For example, in 1957, there were 524. one-way transat- ,

lantic charter flights carrying approximately 38,700 peo-

ple during the charter season April 1 through September

30. In the current year comparable figures ‘are 1,532 one--

way flights carrying approximately 129,600 people. The -

‘growth of charter service has more than kept pace with

normal traffic growth. Since 1957 charter traffic itself has

been growing at a rate which is bélieved to approach 50

- percent each year. During this same period, individually- -

ticketed traffic across the Atlantic has also increased ~

rapidly—its growth rate exceeds 20 percent annually. In

1957, we estimate that charter flights carried about 614

percent of the total transatlantic traffic in the April-Sep-

tember period; in 1960, the figure exceeded 11 percent.

' The Board has Kad ag ‘its major objective the develop. ~

inent of the large potential mass international travel mar-

ket in the United States without undue diversion from the

United States and foreign flag operators, and in particular

from their regularly-scheduled, individually-ticketed ser-

‘ vices. In furtherance of this objective, the Board has from.

12351

time to time redefined the sinintiglie for charter eligibility

~ and established appropriate administrative techniques to

‘inform the public and to obtain their compliance i in order

1It is questionshle-ihowever, whether. the aircraft supply has

ever met the service demand; it is still difficult to obtain aircraft

charters in-the acre direction or season.

2 .

(12351, 12352) _

_ to assure the performance of the flight by the carrier and |

the obtaining of necessary foreign landing rights therefor. ‘-

Thus, in 1957, we amplified the general criteria for charter —

eligibility which we followed in 1955 and 1956. These cri-

teria were largely those that had previously been developed

by the carriers and the Board, and which were embodied

in IATA Resolution 045, the requirements established by_

-— Jn 1958, we adapted these standards to specific criteria

- more susceptible of precise application which have since

been the cornerstone of our policy. .And in 1959, we em:

bodied them with minor modification i in an Economic Regu-

~ lation (Part. 295), giving them greater stability, and‘legal ©

effect than theretofore. In 1959, we also concluded the .

Foreign Off-Route Charter ‘Investigation, Docket 7173, in

which foreign air carriers were for the first time author-

ized ‘to perform off-route charters in air transportation.

In addition to amending their permits to provide this au-

thority, we promulgated a new Economic Regulation (Part

212) establishing as guides for issuance of a charter au-

thorization standards similar to those in Part 295. In 1960,

after the IATA carriers had finally undertaken, upon our

request, to provide: more definitive and. enforceable. stan-

12352 ap

dards for their own operations, we undertook to ‘eal

5 and 212 in order to conform our requirements

tial respects to those now provided in IATA

_ Resoaluti O45. P Comma, at the present time charter

It was die necessary to impose as conditions to approval of

Resolution 045 certain standards, especially with respect to travel

agency’ participation in charters, which IATA a not. provided

for in the a ,

_ the national flag route ‘operators for their own operations. - |

°

‘ . ¥

pare Gains A CAEP EMORL DH TL OR CG Qe prnnsparveginngs Ee:

2 . 4

3 ec. 5

623a

requirements for all classes. of earriers. are ebetatil

similar.

During the dedneeiidtt senin of. this program, the

‘Board has considered it necessary and desirable to retain |

power to disapprove individual charter flights arranged

by the supplemental and certificated ‘cargo route carriers.

Basically, we have been concerned that there not un-

wittingly develop any such widescale violation of appro-

priate. charter requirements as would lead to a breakdown

. in the proper distinction between charter and individually- .

"ticketed service, ‘and thus have a serious adverse effect on

_ the operations of the regularly scheduled services.’ It now

“appears to the Board that*standards for charter eligibility

‘are sufficiently precise and understandable as to preclude

- inadvertent violations on any wholesale basis. ‘Under such.

12353

circumstances, the Board no longer believes that’ this rea-

son warrants retention of the requirement for .

of individual charter flights. _

As wé have heretofore noted, there has been a substan-

tial and sustained growth pf transatlantic charter traffic

by all classes of carriers participating in it: However, even

in the recent summer season when the supply: of aircraft

for charters was substantially increased as a result of the

jet reequipment program and the availability of otherwise |

idle piston aircraft capacity, there was no: apparént over-

supply of charter service. In fact, the contrary appeared to,

*The Board does not ‘believe that a carrier could mamneinbally

‘ undertake deliberately to flout its requirements for charter eligibil-

ity without such fact becoming public knowledge and ne

the violator to _———— and effective sanctions.

,

Ps ,

Rade

——"

(12883, 13354)" cn ee

-

+

e tlie-case. ‘ Recogniticn, sional my given ‘t the fact. that

"hie routé carriers may over the-long run find it uneconomic

- ‘to. maintain ‘appropriate facilities, to yperate piston air-

craft merely to serve. a seasonal charter market. And as

practical matter, jet ‘capacity and costs may be such as to

ffect substantially the potential of jet ‘aircraft for charter - 3 |

‘service. .Under all’ these eiréumstances, . it appears to be

in the public interest ‘for the Board to set down for hear-

pues ing an investigation into: whether ‘the* “public. convenience :

wea sand necessity require the authorization, iby certification or ~

: ie otherwise, of: one or’ more. carriers to provide transatlan- :

. tie passenger chiarter setvice--- Re ene

: ya ae ee

ee —Peatgnig a sunk determination i in “this. proceeding we .

z could as a matter’ ofpolicy ‘continne our current polic Of

satan each charter fliglit* by\granting a special.exemp- -

/ tion order. However, as we ‘have: ‘previously noted, we are

now. satisfied that retention of the: power to ‘disapprove

"individual charter. flights—which is ‘the principal substan:..

tive purpose. of this. procedure—is. mo. longer administra- | Af

“tively: ecessary.:. ~Moreover, we are concerned: that the

- economics and administrative burden which this procedure

imposes ‘on the: relatively. small’ carriers: -which participate

in this activity i is so ‘substantial and disproportionate as to

_ greatly “handicap them in their ability to operate these

oN " setviges: Brofitablys, In this: ‘connection, the Board notes ;

; reel sors ates eel

ae ‘One foreige flag carrier” sought exirngndiuary: rélief iii the Aa

___, Iigitations‘of- Part 212 ‘on off-route charters on-the ground that the.

ae be i mt refs would otherwise be unable to = accommodated. No car- -

~

ia ae ides ae ee - (42854, 12355)

, that the identity of carriers participating i in this traffic has —

_ shifted from year to year. In prior years, the’ certificated

‘cargo carriers were major factors’ in the market; in recent

.. years their efforts have greatly diminished. . Again, ‘sup-.

_ ‘plementals which in the last season were among the larger

_ participants had either not participated i in fhe market be- .

fore or only in token amounts. In: this connection, we have

2a % = have been substantial. factors’ in: causing with-

‘ * dagwal from: the market of: seemingly successful sitilialinis:

--Fukther, ‘we recognize that at best the market is a highly

_ Seasonal one.* Consequently, from an economic standpoint,

___ ~~~ been advised that both the cost of processing applications. —

ae ~.'-for approval of individual charter flights and the disad-.-

Ce ce ‘vantage of adherence to’& procedure not required of com-. _

its attractiveness is. limited. Under these circumstances, . ~

_ telatively small impediments can loom as meee! factors in’

eh decision to devote resources to it.

"7% + These are reasons which have led us to set this matter

eye) down for hearing and possible award of certificate author-

ity to one of more carriers who would undertake on-a sus-

» tained basis, to meet such | need as may exist for charter

2 ae: services additional’ to those provided by the regular route

? peeione: ‘They are also matters which, i in our eee,

28 Neither the U. S. flag laperntenn, nor the etek flag: hinialinds

“for service over. their route need — individual charter “yal

proval. =. z

8 We, of course, recognize that. the fluctuations in MATS’ tilleg

’ and its effect on the availability of backhauls affect the economy of —

_. charter service and the desirability of participation in this market. Be,

"Order E-16023, issued simultaneously herewith, . ee. a

Transatlantic Charter Investigation, Docket 11908.

/

/

oO Co ates URPREETY

oa BS 626a

(12355, 12356)

warrant our granting an exemption from the provisions of .

Section’401 of the Act, as is hereinafter detailed, — a

final determination i in this proceeding. -

For the period beginning April 1, 1961; we » propose is-

suing exemption orders limited in duration to no more

i than 180 days, authorizing the holder to conduct transat-

_lantic charter service in accordance with the requirements

12356 - :

- Part 295 of the Economic Rasietions. Such orders will

be issued only to persons who are applicants for transat-

, lantic charter-authority, whose applications have been con-

solidated ito the’ Transatlantic Charter Investigation, and

who are actively prosecuting such applications. We shall

_ also require each applicant to present for our considera-

tion the scope of the charter service to he provided and

the ‘program employed to screen charters for proper com- -

_ pliance with Part 295. Each such application will, upon

request, be subject to renewal pending final —* of

- the investigation. : ‘i, aioe

In order to accomplish this change the present provisions

of Part 295 relating to application for operating authority

- and to-reporting, which are geared to individual approval

_ of each charter agreement, will require modification: to re-

flect the new system of limited: temporary blanket author-

izations. Sections 295.13 and 295.40 which provide for ap-

plications for individual charter authority will be eliminated .

and replaced by new Section 295.5 which contains the re-

‘quirements for application for the new exemption anthor-

ied * Compare Pronsatlontic Cargo Case, 21 C. A. B. 671 (1955) 5 >

nd nies Case; 10 C. A. B. 572 (1949).

eS! Brash 1618 Hy an he pene hen we y

as ——o

(12356, 12357, 12358). |

ae ity. All provisions : which relate to Board approval of .

specific aspects of charters not generally permitted under —

. this Part (such as Sections 295. 33(a) and 295. 35(b) (3))

are being omitted. The effect of this is that air carriers |

may not perform charters which do not comply with this:

Part in every. respect unless a waiver has been granted

by the Board pursuant to Section 295.3 of this Part.

_ Similarly, Section 295.17 which required: individual post-

flight reports to the Board is being eliminated. However,

such information will have to be filed with the carrier by

the travel agerit and the chartering group as before. In-

- sofar as Board requirements are concerned, the revised ©

provisions of Part 295 will necessitate only the following -

report by: the carrier within 15 days after the close of

each month concerning charter trips operated during such

month: (a) date of trip; (b) points served; (c) number °

_ of round trip and one-way passengers; (d) name of char-

tering organization; (e) deseription of chartering organ-

ization disclosing basis for conclusion that group is bona-

‘fide; (f) name of travel agent; (g). basis. for construction

of tariff charge, These provisions will be found in new

Section 295.6 which. also contains the necessary record re-

tention Tequirements.

12358

Proposep Rute |

' It is proposed to amend Part 295 of the Board’s

‘Eéonomic Regulations, 14 CFR Part 295, as amended,

1. By — Section 295. 1 as follows:

» ae

e 628a

- (12358, 12359)

a. Amend the first sentence of Section 295.1. in read:

- “This Part‘establishes the requirements governing ‘applica-

tions for, and operations under, exemption orders author-

izing, for periods up to 180 days, the performance of

pro-rata and/or single entity charter flights for tranb-

atlantic passengers by United States flag air carriers other

than carriers ‘certificated to provide unlimited individually

_ ticketed ‘passenger service over designated routes.” _

b. Acwenil the next to last sentence of Section 295.1 fo |

‘read: “Operations under any such individual exempjion

authorizing the performance of transatlantic passenger —

- charter flights shall be conducted . 2’ (remainder. un-

changed)... 3 =

2. By amending the last two sentences of Section 295.2(j)

to read: “Presumptively persons are not. bona fide members |

__of-a charter organization“ unless they are members at the

. _ time the organization first gives notice to its members of.

firm charter plans and unless they have actually. been

members for a minimum period of six months prior to the

starting flight date. This presumption will not be ap-

_ plicable in the case of charters composed of (1) students

and employees of a single school, and immediate families

12359

thereof, (2) siiiaaii: of ‘a single Government agency,

industrial plant, or mercantile establishment, and immedi-

. ate families thereof, or (3) Participants in a formal

academic study course abroad. In the case of all, other 5.

charters, rebuttal to this presumption may be offered for

the Board's consideration by — for waiver.:

é

=

Peep yar!

RY ne Ce. HS Wh NB Mirai 2 Te Bp Conades

he wae es

ia) a

- 629a

.

3. By a the first sien of Section 295.3 to

read: “A Waiver of any of the provisions of this regu-

lation may be granted by the Board upon the submission :

. by an air-carrier of a written request therefor not less

than 30 days iad to the flight. to which it relates, provided

such a waiver .. .” ( remainder unchanged).

4, By inserting new Sections. 295.5 and 295. 6 to read:

§295.5. Application for exemption authority. Proceed- |

' . ings on applications for exemption authority pursuant to

Section 416(b) of the Federal Aviation Act of 1958 to

conduct passenger charter flights. (pro-rata and/or single

entity charters) in foreign air transportation shall be

governed: by Rules 400 to 409 of Part: 302 of the Board’s

- Procedural Regulations, subject, however, to the following

additional or different Provisions:

(ay. Applications may be filed only by air carriers which |

are applicants in good. standing for transatlantic charter ©

.12360

authority in Transatlantic Charter Investigation, ‘Docket

11908, instituted ad Board Order E- 16023 of November

14, 1960.

(b) Applications for exemption: authority shall bé filed _

' with the Board at least 60 days prior to the ee first

| flight, under such authority. , .

(ce) The application shall state ‘ides authority to fly ©

_ pro-rata charters, or single entity. charters, or both, is

requested ; the scope of the charter service to be provided;

and the program to be employed for. screening charters for

. proper sso with Part 295.

Mea AErTewe reine erty ’ ve AT eer errno ey

(12360, 12360)

NTN ENOTES EDT 8 ITN SS EI

6302

c12se0, 12361)

(d) Copies of the distin shall be served on each

: direct air carrier certificated to siti unlimited trans-

atlantic a service.

.. §295.6 Reporting and record retention.

(a). Fifteen days after the end of each calender ok, aie

each carrier holding operating authority purguant to this

Part shall file with the Board’s Bureau of Air Operations ©

a report setting forth the. following information pertaining .

to each charter flight performed during said month pur-

suant to such authority :

*

(1) Date of trip;

: (2). Points served ;

7 (3) Number of ‘round-trip and one-way passengers ;

e aie.

(4) Name of chartering organization ; .

(5) Description. of chartering organization disclosing |

basis for .conclusion that the — is bona fide;

(6) Name of travel agent; and

» (7) Basis for construction of tariff charge.

_ (b) Prior -to perforining any charter flight pursuant to

this Part the carrier shall execute, and require the travel

agent (if any) and charterer to eooene the form “State-

ment of Supporting Information.”

(e) Air carriers holding operating sidheniiy pursuant

to this Part shall preserve the following records for ‘the

periods specified below. -Microfilris may be substituted ~~

retention of the een records at any time.

Berni vicrastorrrer

aie

- . (12861, 12362)

“Category of ._ a Period to be

. records i. ° retained -

1. Every charter confract ) a 8

2. Every “Statement of nee

Supporting Information”...... oo oT

3. All post-flight reports

and vouchers submitted

therewith 2 oe yrs.

- 4, All passenger manifests : |

filed by charterers , 2 yrs.

5. Proof of the commission mere

paid to any travel — by |

the carrier........... , See &

- 12362

. 5. By amending the first sub-title of Subpart A to: read:

- “Requirements Relating to Air Carriers.”

- 6. By amending ‘Section 295.12 to read: “Pre-trip

notification... Upon a-charter flight daté being reserved by

the ‘air, carrier or its agent, the carrier -shall provide the.

prospective charterer with a copy of this Regulation, Part

_ 295." [Footnote 1 to remain unchanged]. The charter con-

_. tract shall include a provision . . .” (remainder as now con-

tained in last sentence of Paragraph(c)).

7. By striking Section 295.13.

8. By amending the first. sentence of Section 295. 15(a) to

read: “The total charter price and other terms of service

rendered pursuant to authority. granted under this Part

shall conform to those set forth in the applicable tariff on

file — the Board and i in force, at the time of the respective

.

2 GO LEER IT TT OT AEP TOM OTT IS TS

te ee ial en

6328.

(12362, 12368)

chaste flight, ‘and the contract. “em be for the entire

. capacity of one or more aircraft.’

9. By striking at the end’ of Section 295. 15(c) the words

“unless special or unusual circumstances are shown in the

application for: exemption authority and the Board ap-_

“proves thereof.”

10. By amending Section 295.16 “* striking the second

_ Sentence which begins — the words “Proof of commis-

Macs"

11. By striking Section 095.17. ee

3 | 12363 |

12. By adding a new Section 295.26 to read as follows:

§295.26 Statement of Supporting Information. Travel

agents shall execute, and furnish to air carriers Section A .

* of Part II of the Statement of Supporting Information.

13. By striking the last sentence of Section 295.33(a).

14, By amending Section 295.34(b) by striking the —

“whichever is authorized”.

15. By amending Section 295. 35 as follows:

a. Amend Paragraph (a) by. striking the words “which- a

ever is authorized”.

‘b. Amend Paragraph (3) of Subsection ¢b) to Saad:

_ “(3) Bona fide members of entities consisting only of per-

sons from a study group, or a college campus, or employed

by a single Government, agency, industrial: plant, or mer-

cantile. company, or persons whose proposed participation

in the charter flight was permitted by the Board pursuant

.

4 ae

‘to request for waiver.. Specify on the passenger man-.

- ifest . : .” (remainder unchanged). ang

_¢. Amend Subsection (d) by striking the language fol-

lowing “(1)” and inserting in Héu thereof : “was a bona fide

- member of. the chartering organization at the time the |

chartering organization first gave notice to its members of

firm charter plans, and will have been a member for at

least six months prior to .the starting flight date, or (2)

_ is -& bona fide member of an entity consisting of (a) stu-

dents and employees of a single school, or (b) employees

of a single Government agency, industrial plant, or

mercantile establishment, (3) is a person whose partici-

‘ee 12364 : nates .

pation has been specifically permitted by the Civil Aero-

_nautigs Board, (4) is the spouse, dependent child, or parent -

of a person described hereinbefore and lives in such.

person’s household, or (5) is a bona fide participant in a

charter composed. of participants in a formal. academic

study courte abroad. | |

( signature) 2

16. By adding a new Section 295.36 to read

§295.36 Statement of Supporting Information. Charter-

ers shall execute. and furnish to air. carriers Section. B of

_ Part II of the Statement ‘of Supporting Information. :

17. By striking Section 295.40.

, 18, By striking the words. “set forth in - sauna

in | Section 295.42.

ae

634a

asta) 12365) — |

3 19. By striking the last éentenee. of Section 295.43.

- 20. By amending Section 295. 60 by striking, at the .

beginning’ thereof, the words: “At any time prior to the

filing of an application pursuant to this Part” and by add- —

_ing to the second sentence thereof the words “in: any

subsequent proceeding in which the lawfulness of the

—— charter may. be in issue. 14

21. By amending the form ‘presently entitled “Applica-"

: tion for Authority to Conduct Transatlantic Passenger —

Charter Flights” as follows : | |

a, Strike the present title rn for Authority

to Conduct Transatlantic Passenger Chartér Flights” so --

that the form remains entitled :. “Statement of Supporting

Information”. .

b. Strike in line following = designation “Part 1” .

the word “applicant”

e. Strike Paragraph “d” of Question 5.

a. Strike footnote 1 and. references to it shroughout. the

form. |

=a ie Strike trom Question 13 the sentence at the end

thereof, beginning with the words “If the answer is

yes... .™.

f. Delete from Question 20 the sentence at the end there-

of, beginning with the words “If the answer is no..

g. Strike from the line “Verification of air carrier a |

cant” the word “applicant”. / ie

eT ee ee 7

« .

“OSTA NI os acta RAG mam gee

ee ee

SLRS AE

a

PF ee Py tel ee =

doles! oy tpg 6358 oF a eee Meat

ge, te * C238, 12366)

h. strik’yfrom the elause “(Signature and title of

authorized offigial of air carrier applicant)” the word

“applicant”, |. ~

& 12366

22. By amending the Ferm “Transatlantic Charter Post

: Flight Report” as follows :

_a. Strike from the instructions the first sentence thereof,

and insert in lieu thereof: “The charterer. shall complete .

_and file a report, in this form with the’air carrier within

15 days of each one-way or round-trip-charter flight.” .

b. Strike Question 3. = |

a ta oe

ey, os hy 5

ee i

my | ;

a a

. (12520) 7 F

: + 12520

| ‘Order No.. E 17190"

‘UNITED STATES OF AMERICA ;

‘Civ AERONAUTICS Boasp | 1

Wasuixatow, D. C.

: bs “Adopted by the. Civil hictaentins Board

ON at its office in Washington, D.C.

| -- on ‘the 18th day of July, 1961...

"Docket. 11908, et al.

Th the sisted of the

TRANSATLANTIC CHantgn Twybstrcarion. ;

| _ SUPPLEMENTAL ORDER OF INVESTIGATION

oS a aaa reeks year

bd

"By Order. BE. 16023, November. 14, 1960, we instituted: this

: investigation to determine whether ‘the: public convenience

\ 4 and necessity require the certification of one or more air |

-earriers to conduct’ transatlantic passenger. charters from }

or to points .in the United States and, if so, ‘under’ what .

“terms and conditions. By that order, we also consolidated .

herein two pending applications for certificates-of public

convenience and necessity to perform passenger charter

flights, namely those:of Overseas National Airways, Inc.

_ (ONA), in Docket 8056, arid of United States Overseas Air- .

* lines, Inc. (USOA), in Docket 8951: More recently, we have

consolidated seven other pending applications herein,

eo es i ey cag, 19821) : | :

oe namely ‘those of Saturn ‘Airways, ties, (Saturn, in-Dopket-- . -"—

11962,. President Airlines, Ine. (President), in Docket

‘er 11931, Capitol Airways, Ine. (Capitol), in Docket 11982, ae

_ ‘Imperial Airlines, Ine, (Imperial), in Docket 11965, -Airline —,

‘Transport Carriers, Ine. d/b/a California-Hawaiian Ar- ~-

: lines (California- Hawaiian), in Docket 11999, The Flying. :

Tiger Line Ine; (Flying Tiger), in Docket 6668, and Sea. Se i

‘board World Airlines, Inc.. (formerly Seaboard & Western owe ae

Airlines, Ine. ) ( Seaboard), i in Docket 11971. |

* It was our intention to consolidate.such applications only —

insofar‘a ‘as they sought. authority to conduct charter service

within the appropriate geographical scope of.this case,

which: we conclude should be” defined by the Araditional:..

= boundaries of transatlantic route proceedings. Since cer- .

‘tain of the applications previously or hereby consolidated

entail requests ‘for authority hepend tlisan’ boundaries, =

appears desirable at this time to specifically limit this pro-

' ceeding to \a consideration of applications for certificated

; trenestlantin passenger | ‘charter authority within the fol-

: lowing area: between points. within the 48 contiguous —

states, o®;,the one hand, and points in Greenland, Iceland,

-, the"Azores, Europe, Africa and Asia as far east as (and

; including) India, on the other hand. ‘Consideration of ap-

plications for authority beyond that area would unduly,

expand this wasted broad Procteding and would, in our

- ._ . The pertinent srtore were: Saturn—Order E- 16967, June 20,

. 1961; President—Order E-17048, June” 29, 1961; Capitol—Order

E- 17049, June 29, 1961; Imperial—Order E- 17050, June 29, 1961;

California-Hawaiian—Order E-17051, June 29, 1961; Flying Tiger

—Order E-17133, July 10, meet and Seaboard—Order E- 17184,

July 10, 1961.

saat

33 °

—

(49581)

;

:

> a

judgment, be: premature. “Therefore, we shall sever out of

. the previously consolidated applications of ONA, USOA,~

Saturn, Capitol, California-Hawaiian, and Seaboard, Te-

quests, for authority beyond fhe geographical limits of this .

* preceeding. In view of our desire to. bring the Board’s

docket to a’ reasonably cutrent basis and thus insure

that important - formal proceedings may be passed upon -

promptly, we shall dismiss the severed portions of the

~ applications, without prejudice to the Tight of those car-

- riers to file new applications for’ such further. and speyific |

authority as they may desite.

The Board also issued a Notice of Proposed Rule’ Making

(EDR-21, Docket 11907, ‘Part 295) contemporaneotsly with

Order E-16023. That rule-making proceeding was con-° .

cluded ‘on April 20, 1961, by the issuance of.a revised Part -

| 295. (ER-326) which establishes the requirements govern-

ing applications” for, and operations: under, » temporary

(seasonal): blanket exemption authority. for transatlantic :

: passenger charter flights. One. of the requirements of: the |

amended Part 29) is that applicants for authority there-—

under must be applicants i in good standing for transatlantic

charter-authority in the instant proceeding (§295. 5(a)). 2.

To establish such: eligibility to apply for the exemption

authority, we shall consolidate all remaining pending appli-

. cations fpr certificates of public corivenience and necessity —

to perform. transatlantic passenger ¢harter. flights. Con-.

sistent with our action herein with regard to tL previously.

— applications, we shall sever out of all such

aes ‘2 Qur_ recent actions in consolidating the Sa of Saturn,

President, Capitol, Imperial, California-Hawaiian, ‘Flying Tiger

- and Seaboard were grounded on this prerequisite to the award of

temporary (seasonal) blanket exemption authority.

. : : > s % : >

4 =

é

a Aas ty SS ge ia ; ‘ier : eS

yw

casa, asm)

— applications requests for authority beyond the _geographi-

eal limits of this proceeding, ard dismiss the severed por- *

tions without prejudice. In total, 31 applications will be

: totally or. partially. consolidated in ‘this proceeding by* -

the instant order and Orders E- 16023, E-16967, E-17048,

' E-17049; E-17050, B-17051, K-17133, and E-17134.

The issues to bé.considered in the instant investigation

are those which arisé under. section 401. of: ‘the Federal

_! Aviation Act of 1958, as amended, namely: (a) whether

' the’ public convenience and necessity require the certifica-

- tion of one or more transatlantic passenger charter. ‘carriers

and, if-so, which carrier or carriers should be selected to.

‘perform such transportation ; (b) whethér the‘ various ap- |

plicants are fit, willing, and able properly to perform the -

proposed transportation and to conform to the provisions’ 3

12522

_ of the Act and the roles, regulations, and requirements of

the Board thereunder ; and, (c) what terms, conditions or

limitations should be attached to’ any certifieates-which the

Board might grant. ; 3

iP placing in issue the terms, conditions. and limitation’s a

—..__-whieh-weuld-attaeh—to ‘any authority ultimately grant granted j

herein, we contemplate a~full. consideration of: the: rules

which should govern such operations. This includes, but

is not limited to, further consideration-of rules established

- by our recent amendment of Part 295 (ER- 326, supra).

‘ As-we stated in issuing that amended regulation, the hear-

ing herein will be directed to the long- range needs and

_ authorizations in the transatlantic passenger charter_field—

(ER-326, supra; at p. 9). In determining rules to govern

the broader and more permanent. operations which inay be

es . : ;

oA

a: :

adthorized herein, it is patent that’ the Board should iets

Se benefit of a’ full évidentiary hearing. We, therefore, .

aed invite the applicants and all parties. not, only. to offer any

suggestions which they may have with regard to the suita-

= bility of the rules of Part 295 for a long-range program, __

| but also to come forward with any new concepts which

‘they may-consider appropriate. — 3 :

a Big > - Tuereror, It Is ORbERED: — ; | ‘

1. That the investigation in “Docket 11908, instituted by

Order E-16023,.N ovember 14, 1960, be and herebiy i is limited

to the consideration of applications . for certificates of pub-

lic cOnvenierice and necessity to conduct: transatlantic,

passenger charter services -between points within the 48

' contiguous states, on the one. hand, and points in Green-

_ land, Iceland, the Azores, Europe; Africa and Asia as far’.

east as (and including) India, on the other hand;

2. That the: investigation in Docket 11908 shall entail:

consideration of the following i issues:

f ieoky (a) Whether the public c convenience and necessity a

_____s _.quire-the certification of one one or more air carriers to per-

_ form trangatlantic passenger ‘charter flights as delineated

in ordering paragraph No. 1 and, if so; which carrier or

carriers should be selected to perform such ialamposdtd,

, and what terms, conditions: or limitations . should be at-

" tached to such certificates; 9 =" a,

Pe aie | (b) Whether + he, vertion ajultientie-t0r-seiectinatie

fod oa a passenger charter authority are fit, willing and able to per-

form such transportation properly, and to conform to the

provisions of the Federal Aviation Act of 1958, as atnended,

and the rules, regulations, and requirements of the Board.

thereunder; :

0 Gy

a eee i. . Sat

ae That the diitnaitins of Grae N ‘lies iiewiga

~. Ine, in Bocket 8056, United States Overseas Airlines, Inc,

“in Dotket 8951, Saturn Airways, ‘Ine,, in’ Docket: 11962,

Capitol Airways, Inc., in Docket 11982, Airline Transport

; bien Ine. d/b/a California-Hawaiian —— ‘in

| 12523 Saag

Docket 11999, ‘and Seaboard World ‘Aitiinea, a ‘(dor-

‘merly Seaboard’ and. Western Airlines, Inc.); in Docket

_ 11971, insofar as: they request authority to conduct passen-_

ger charter Services via other than transatlantic routings

' or between points not within the geographical limits of this

; proceéding as defined by ordering paragraph No. 1, above,

be and they hereby 1 are ‘Severed and dismissed without wi

prejudice;

“4. That Order E-16023; and Orders E-16967, June 20, es

1961, E-17049, June 29, 1961, E-1705t, June 29, 1961, and”

E-17134, July 10, 1961, insofar as they consolidated with

this investigation the-portions of: the applications severed

_*and dismissed by ordering —— No. 3 hereof, ‘be and ;

| they hereby are rescinded ;

'5.. That the unitate of the dehowing named ‘calviege oom

in the dockets noted, insofar as they: entail requests. for ©

» transatlantic passenger charter authority within the geo-

graphical limits established in ordering paragraph No. 1,

above, be and they hereby: are consolidated with ‘the. in-

- vestigation in Docket 11908;" . _

Applicant : | Sinden No. |

| Reiort Airlines, Inc. | ‘eee 8

ve ’ Modern Air Transport, Inc. —_ 11930

* Quaker City Airways, Inc. . ~ 11943.

Settle tial,

Pe ee

. =

642a

* Aerovias Sud ‘Americana, hia, * * 11989

_ Trans International Airlines, Tie./ 11997

. Inasmuch as we understand that certain ‘ Kents of General Air- .

ways, including the right, title and interest in certificates or other

documents of authority. held by that carrgr were sold in a bank--

_Tuptcy proceeding held in the it

nited States District Court for the

District of Oregon (In the Matter of General Airways, Inc., Bank-

rupt, No. Bs44813), and no applicatign has been made for a trans-

- fer. of the certificate pursuant to section 401(h) of. the Act, we

shall consider-General Airways to be an applicant reietaid _—

no operating authority. |

¢In consolidating the prone of Trans-Alaskan, a,

and Great Lakes for hearing herein, we wish to make it clear that

we thereby take no action: inconsistent with our action in Orders

he -E-16050, November 22, 1960, and E-16140, December 15, 1960. In

those orders, we dismissed applications by these three ‘carriers .~

under the specific circumstances therein presented. However, as —

we then stated, our action did not <onstitute any permanent barrier

to the fling of ‘applications by those carriers (Order E-16050, at

p. 7, fn. 6). The applicants will, of course, have the burden of

establishing that they are. now fit, ee ‘and able within the

—. of the Act. :

+

(12528, 12524). |

pe s Applicant 8) Dagket Ne.

Associated: ‘Air Transport, Inc. . | 11947 © .{

- General Airways, Inc? ws s«11948

| Trans-Alaskan Airlines, Inc.‘ ©, a oe

Currey Air Transport Ltd.‘ <r et

Great: (Lakes Airlines, Inc* = -11955_ a

National. Airlines, Inc. _ 21958 i

Standard Airways; In Inc, SS la

z 4 : — acta 12524 aaa

ae outhern Air Transport, Ine. ; ; 11966"

‘Sourdough Air Transport _° - 11968 .

f World Airways, Ine. : es 11981 ©

: Paul Mantz Air Services wept: ll

P - Slick Airways, Inc. aN 11985

: _--Applicant oS ee @ Docket No. ss

Central Air Transport, Inc. “11998 :

we Coastal Air Lines. ; rd 12106 ~

a World Wide Airlines, Inc. | dee hate

Riddle Airlines, Inc, 12152

-: _ Blatz Airlines, Ine, ak. te RE

t

pth 6, That the applications listed in ordering paragraph —

~~ No: 5, above, insofar as they request authority to conduct

.passenger charter services via other than transatlantic .

routings or between’ points not within. the geographical

- limits established in ordering paragraph No. ‘1, above, be’

and they hereby are severed and dismissed without preju-

dice; es PEA Siok .

oO

_. That this proceeding be set‘down promptly for pre- |

| hearing conference before an Examiner of the Board; and .

8. That this proceeding shall be expedited as much as. .

possible. ee ae ee

This Order will be published in the Federal Register.

By the Civil Aeronautics Board: eae

. hot: | “fap Haro R. Sannensow

ae inne R. Sanderson om

| i ‘Secretary

(Gem)

(12703)

e .

© < Adopted by the Civil Aeronautics Board.”

‘UNITED STATES OF AncnRICA

Civ AERONAUTICS Boarp. .

Wigeaenen, dD C.

~ ° .

at its office in Washington, D. C..

_ on the 18th day of October, 1961 _

Docket _— et: al.

In the matter of the

ms TRANSATLANTIC CHARTER Ixvestication

e

ORDER ©

This : investigation: was instituted by Order E-16023

adopted November 14, 1960, to tletermine whether the pub- /

lie convenience and necessity. require the certification. of.

one or more air carriers to conduct transat! antic passenger

‘op

Order No. B E- 17607 %

charters and, _if so under what terms or-conditions.. By’

~ Order E-17190 ‘adopted July 18, 1961, the issues were fur- ©

ther defined and’it'was pointed out that in placing in issue

- the terms, conditions, and limitations which would attach

to any authority ultimately granted, a full consideration a.

‘the rules which should govern the operation w was contem-

_ plated. Thus, the applicants and all parties were invited

. not. only to offer any suggestions which they might have

_ with regard to the suitability of the rules of Part 295 for

a: long-range program but also:to come forward with any i;

. e =

gs

~ ? ‘ i

e:*% . -

;

*h

\.” (1a703, 12704)

fa

tie

new coneepts'which they might consjder appfopriate. The”

order in question also consolidated a number of applica-—. a

tions, including Docket \11958 of National Airlirtes, ‘Tne,,. es

(National) and «Docket 11985 .of- Slick Airways, Inc,

MI Ky OG

Thereafter, pursuant. to notice of the Chief Examiner, ‘

ae _ the proceeding was assigned fr a prehearing. conference .

_ @

and all parties ‘were directed to submit motions, requests *

_ for evidence, etc., on or before August'8,-1961. In accord- © Ye

.

ance with the notice, Oregon Aviation Corporation (Ore-

- gon) and Air Cargo. Express, Inc., (Air Cargo) filed to- ;

tions to consolidate the applications, in Dockets 12878. and

_. , 12884, respectively, which applicatiéns' seek to engage in:

ray transatlantic charter air. transportation with respect. to”

persons, property, and mail;and Capitol Airways, Inc. |

(Capitol) and World Airways, Inc., (World) filed motions |

.t6 consolidate the ap igations in Dockét 12497 and Amend- —

ment No. 2 te Docket. 11981, respectively,/ which applica-. °

tions and amendment seek authority to engage in individu--

ally-ticketed .round. trip all-expense ~ tours. An answer

opposing the motion of Capitol was filed by Pan American.

Following a prehearing conference, statements were

filed with the approval of the Examiner directed to the. -

proposals of Capito] and World and/or to the scope of

any..new charter proposals: which thé Board would enter-

~~

"tain ; and simultaneously National moved to dismiss its

. application in. Docket 11958, and Slick. advised ‘that. it

would not prosecute its application in Docket.11985. | |

Upon consideration of the motions of ‘Oregon and Air :

Cargo, we find. that Poa extent their applications seek.

e .

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aap beth a egg he tS tat BOON caCea ei:

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204) os Sate

‘ engage in ieee charter air transportation ‘of

passengers and their Kelongings, such applications are

within the issues’ ‘and should bé consolidated. Accardingly,

”~ we will consolidate the org portion of these applica- -

tions and. dismiss the requests with reference to mail and’

: “proparty charters, —We also find that the motions of ‘Na-

tional should be granted : and ‘that applications of National

‘ in Docket 11958 and ‘Slick in Docket 11985 should be dis-

missed without prejudiee. ©

4

Further, upon ‘consideration of the ‘motions of Capitol

and World, the answer of Pan American, and various state- A

‘ments of position: filed subsequent to the conference ‘with

respect to the scope of the charter service proposals‘ which |

we would entertain, we wish to point out that it was not

our intention in Order, E-17190 to consider any proposals

for individually-ticketed services such as contemplated in

the application of Capitol i in Docket 12497 and Amendment

No. 2 to World’s application in. Docket 11981. These pro-

posals would permit a carrier . -granted a’ certificate as a

‘ result of this proceeding to sell tickets to individuals who -

are unrelated to any group and would. more or less resem- ~

_ ble the certificated authority of Resort Airlines which we

do not consider to be a charter servite. Accordingly, we -

will deny the motions of Capitol and World to-consodlidate

these proposals. On the.other hand, we cannot agree that

the proposals in this proceeding should be, limited to the

. traditional concept of transatlantic charters or to charters )

_ as defined in Part 295. However, we would expect such —

proposals to fall within the broadly accepted meaning of

charters, viz, the lease of an entire vehicle on a time, mile- ,

~’ age, or trip.basis. This would not preclude proposals which

__ contemplate charters by professionals engaged ‘in the

\

: : (12704, 12705)

formation of groups for. transportation. (travel agents)

currently prohibited under Part 295 of. the Economic

_ Regulations. In other words, the chartering ;of an aircraft

bya travel. agent and the offering by such. agent to the

general public of all-expense group tours would be within |

the scope of the issues in this case.”

* . Tuererorg, Ir Is Onperep: - | :

. 1. That the applications of Oregon. Aviation Corpora-

_ tion and Air Cargo Express, Inc., in Dockets 12878 and

12884, respectively, insofar’as they request authority to

conduct transatlantic charters-of passengers and their be-

longings, be and they are hereby consolidated; that to the

extent such applications request authority to conduct char-

ters of property and mail, they are hereby severed and

. dismissed ; i : ce igh ie es

: 7 92705 -

2><That the applications of National Airlines, Ine., in .

Docket 11958 and Slick Airways,.Inc., in Docket 11985 be’

‘and they: hereby are dismissed; and aby

3. That the motions of Capitol Airways, Inc., and World

AirWays, Ine., be and they hereby are denied. ~

>» By the Civil Aeronautics Board: ae |

oe /s/ Harotp R, Sanperson’

Harold R. Sandersor : .

Secretary So at irae

(Sean) | As z ey ee

o ; m : \ é | y

=

; ale, 4

4 :

' (15082, 15083)

Transcript in Transatlantic Charter Investigation \ .

. Witness, Panur R. Caretiupo for Pan American World

3 | - Airways.

Cross*Examination by Mr. Hobbs:

Q. On page .3 of your testimony, Mr. Capellupo, the

paragraph marked D.in the middle of the page, you speak

: _ of the fact that the Transatlantic.market is an area of high

cost operation. And earlier in your testimony on ¢foss-

: examination you spoke of landing fees being so much in

| London and dwindling down to a much henser amount in

. this country. © :

Do you happen to know how much higher the Dien. |

atlantic run is than domestic runs for comparable length? _

A. Well, to be very specific with you, let’s take flymg ~

: operations. . The pilots’ and co-pilots’ salaries are entirely .

#... _ different for international and domestic.

| i. Examiner Keith; ‘And international is higher?

: oe . The Witness: I believe it is considerably higher

| - Examiner Keith: Is that because of over water? .

| 15088

The Witness: Since it isan international.

_ operation. oi

Examiner Keith: Let me ask * you, becnnne I was -

going to ask this also, ‘would you go into the areas

where the cost of Transatlantic operation is higher

than, say, an operation from . New York to Los -

- i? .

= .

. . F .

. “aie: = -.

a -

a

; ® .

3 °

4 ,

e .

. .

< eee ne She

(15083, 15084) |

Angeles? I know yesterday or the day before you

mentioned in comparison that the airport landing |

fees at domestic points was an area of higher costs.

The Witness: Another area of higher costs is

fuel in the European countries. , 8

_ Examiner Keith: Fuel is higher there?

.The Witness:, Yes, piston engine fuel. ee.

“By Mr. Hobbs: :

Q. What I am trying to get at ultimately is, do you have »

any idea what percent higher it is to run Transatlantic

‘operations? Is it twice as much? A. No, I don’t know.

But-if you look at Pan American’s Transatlantic operations

and compare these costs with the costs included in the

exhibit by the supplemental carriers in this case—

« Examiner Keith: You have got fuel, pilots’ sal-

aries, custom fees and landing fees. How about

stewardesses, do they get the same pay? Are all of

your entire flight personnel higher than domestic?

The Witness: I believe they are, plus the fact that

' 15084 |

_ I believe you have persons stationed in Europe who

in addition to getting salary, have overseas ‘salary

allowances that you don’t have in ‘the United States.

But that is a cost you have to.take into consideration,

- plus the fact that on these. long hauls you have

_ Stationing of crews which may create additional

costs which are not considered by some of these

carriers. | Baw d,

‘Mr. Ryan: Would you explain what you mean by

. 8tationing of crews? ee |

en er coe 650a he ee ees

— (15084, 15085). ae Nee on ead

The Witness: Well, the stationing of crews in- \» |

dicates that you fly with a single crew to a'point - |

~~ and land, and then that crew gets off and a new: crew

gets on. And that particular crew waits, and it may

- wait a-week, if it is a supplemental carrier, before

. the flight comes back and picks up that crew.

' In the meantime it is paying the living expenses

for these pilots while they are out of the country.

Now, in addition, I am sure that most of these

carriers who have ALPA contracts will be

eventually faced with this one-and-four problem,’

which means that for every six hours. that a crew is

stationed away from their home base doing nothing,

they must be paid one hour of flight pay. -

So that means that for every 24 hours that they

lay over, you may think them one hours of flight

@ ° pay.

; _ ‘These are some of the items that represent higher

~ --— costs in the Transatlantic operations. ~ When I say” |

Transatlantic, it is overseas, the same thing hap- _—. :

_ pens in ‘Transpacific. | vs |

- Examiner Keith: Are there any y balancing lower oe

costs?

The Witness: There might be sothe, to the extent —

of hiring some local personnel, but it is: pretty’.

nominal, becapse where you pay less money -to a.

- particular employee, you are not «petting maximum

ns omany | out of the employee.

e ® e e *

%

(15338, 15339)

15338

Transcript in Transatlantic Charter Investigation

Witness, KENNETH L. Briaes for Trans World Airlines.

43 a a a

Hearing Examiner Keith: How do those costs

compare? .Are yofir Trans,Continental and Trans-

Atlantic costs higher and by how mueh?

The Witness: ‘Oh, on an hourly basis, Mr. Exam-

iner, approximately $100 an hour higher in Inter-

national operations.

is 15339

Sidi Examiner’ Keith: $100 an hour higher?

‘ That is your over-all. operations? e

The Witness: Yes, sir. ‘That is using Boeing

707-331 aircraft in both instances, the same airplane.

Transcontinental we have been-running in 1961, I

___-_should'say, the hourly cost, the cost per block hour |

was $555. This is excluding depreciation. In Inter- oN gs, es

_ national operation it was $650. _ ;

.Hearing Examiner Keith: Five hundred and .

_ What?

The Witness: $555 deaaatie.:

‘Hearing Examiner Keith: Domestic?

' The Witness: $650 International.

Mr. Hobbs: Mr. Examiner?

Hearing Examiner Keith: Yes, Mr. Hobbs. - v

__ Mr. Hobbs: I was not a. e'to catch much of what 4a

he said. He was sort of addressing himself to you. -

The figure I was interested:in was $100 an hour

higher -for International. — for jets, is that

‘what you said?

The Witness: Yes, sir.

; :

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——

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.

.

.

es | Rede 6528 | : ee

‘United States Overseas Airways Exhibit No. 106.’ i

The Great Majority of U.S. Passports Issued

: and Repewed are for: Travel To Europe, oe

; the Middle East and Africa

ts Ay The strong tourist attraction of the ara at issue in. this

| proceeding (Europe, Middle East and Africa) is élearly

. indicated by the fact that of the passports issued, and re- |

_. newed during the period July through December, | 1958. ee

Ee. 75.1% listed one of the . are reas.as-its first des-

6 .tination. Oe gc Oe ae ..

j ee. Niort issued ayd renewed by areas of first =

2. . ms destination July through December, 1958

: 3 Area of First Destination , . ie * Number

Europe A : : —: 168, 244

; ._- Middle East” re : «5,785 |

: | Africa. ; 8,279 23

. _ Total passports issued: and renewed for _

| { a travel to points within the. area covered .— .

4 : by Docket No. 11908 et al . * 177,308

ie . North, Central & South America .. 28,976 —

° FarEast | -@ "16,238

| _ Australia and Oceania 13,497 ie

.. Total passports issued toe ne 236,014

_ Percentage of total passports issued ‘and. aweed 7

which listed Europe, Middle East and Africa as-

areas of first destination—75. 1%

_ Source: United States Department of State, Passport

- Office | .m |

6588.

; (17575)

| 17575

‘Trans World Airlines Exhibit No. ‘es 13

. : Compeichiin of Competition —

in Transatlantic ne U.S. _ Transcontinental Markets

. Trans- ee Trans- ‘

‘ atlantic (A) ° * continental (B)

amit icici (C) “1,600,000 1,312,000 -

Number of Airlines - ; ee 5) it 3

Passengers Per Airline - 107,000 ° : 437,000 |

~@ ~:

(A) To and from U. Ss.

(B) Between Boston, Ne ew ‘Yoris, Philadelphia, Baltimore 3

_ and Washington on the one hand, and Los Angeles .

and San Francisco on the other mend

-(C) 12 months ended June 30, —_

(D) TATA airlines

| Sourees: IATA Reports ae

> Competition Among. Air Carriers, CAB. 7

'

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lah IS casa Nl i ee EW i Bont ATi

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“4

aus 5 F 654a

(19438) .

sonad : 19438

RECOMMENDED Decision or Examiner James 8. Kerra —

* UNITED STATES OF AMERICA

_ Crvm Agrronavtics Boarp |

Wasuineron, D: C.

_ TraNsaTtantic Cuanten Ievesrioarion

Docket 11908 et al. -

/

In the matter of an investigation by the Board to determine

whether the public convenience and necessity require the

_ certification’ of oné or more air carriers to engage in

transatlantic passenger charter servicé, and if:so, under

what conditions should the gervice be authorized.

Recommended Decision of Examiner James S. Keith

re ues Served: SEP 21 1962 _

Upop: . ,

Perry H. Taft, Atiomey at a 1 Larch Drive, Ather-.

ton, Calif., for Airline Transport Carriers, d/b/a. Califor-

nia-Hawaiian Airlines.

Theodore I. Seamon, 700 Woodward Bldg. * ‘Washington,

D: C., for:Capitol Airways, Inc. .

‘Norman L. Meyers (Meyers & ‘Batzell), 1201 Shoreham

Bldg ™ Washington. 5, D, C., for The Flying Tiger Line, Ino.

Exceptions, if any, -~ this Recommended Decision mast be filed \.

with the Docket Section of the Civil Aeronautics Board,’ Washing. \

ton 25, D. C., and served upon all parties within 10 10 days of service:

shown above. Briefs may be filed and served on all parties within

~ 20 20 days after the date fixed for filing exceptions.

°

\

\

Pa

ee ee

(29488, 19439)

, Albert F. Beitel, 905 ‘American Security Bldg. A Washing. |

* ton 5, D. C., for Modern. Air Transport, Inc.

Ramsay D. Potts, Jr. (Shaw, Pittman, Potts & Trew: ‘e

bridge), 910—-17th Street, N. W., Washington, 6, D..C., for ~

Overseas N ational Airways, Inc. : .«

Robert E. Fraley (Keatinge & Sterling), 3325 Wilshire ®

Blvd, Room 914, Los Ang&s, Calif., for Great Lakes Air- -

‘lines, Inc., and Paramount Airlines, In¢. ie

| Worrén E. Miller, Suite 308 810—18th Street, N. W,

Washington 6, D. C., for Quaker City Airways, Inc., d/b/a

Admiral Airways, Inc. -

Raymond J. Rasenberger, 500-Wyati Blag. m Washington

_ 5,.D.C.,, for Riddle Airlines, Inc. .

Robert M. Lichtman, 1144 Pennsylvania Blag, ® Washing-

ton 4,D.C., for Saturn Airways, Ine. -

19489

| Jak H. Fisher, 1001 Connecticut ree " N. W., Washing

ton, D. C., for Seaboard World Airlines, Inc.

ey Nathan Calkins ( Galland, Kharasch, Calkins & bie.

man), 1824 R Street, N. W. » Washington 9, D. C., for U.S.

Overseas Airlines, Inc..

Jerrold Scoutt, Jr., 412 Cafritz Bldg., Washington, D. C.,

for World Airways, Inc.

> derry W. Ryan, 135 B. 42nd Street, New York 17, N. wes

. for Pan Amefican World Airways, Inc.

Edmund E. Harvey (Chadbourne, Parke, Whiteside &

Wolff), 25 Broadway, New York, N. Y., for Trans World

Airlines, Ine.

_ Rocco C. Siciliano (Wilkinson, ore & Barker), 1616 ©

‘H Street, N, ;W., ‘Washington 6, D. C., for the American

| Society of Travel Agents,Inc. — - ,

Howard G. Feldman, Bureau of Economic Regulation,

‘Civil Aeronautics Board, Washington 25, D:"C., iad the

Bureau.

- 656a "|

(19440)

? "19440

UNITED STATES. OF AMERICA

CiviL AERONAUTICS Boarp.

' Wasuinerton, D.C.

~ ea @

tai

s

, .

Hae Pe a ee Le Oe ‘

te TRANSATLANTIC Cuanrer INVESTIGATION

yt Docket 11908 et al.

v

It is Recommended that the Board—

_ in transatlantic passenger charter servic® under terms,

conditions, and liniitations. corresponding to those provided

: contained i in Appendix: B hereof;

_ Airways, Ine:, and Saturn Airways, Inc. (upon compliance

“with the insurance réquirements of Part 295. 14(b) of the

© eonveniente and necessity (expiring September 30, 1963)

_ authorizing supplemental air” transportation “of persons

and their baggage between points in the “48 contiguous

in. Greenland, Iceland, the Azores, ‘Hurope, Africa and

and contained in Appendix B hereof; a a

- . ©§ee Notice of Deseened Rulemaking dated Septeinbe 4, 1962,

EDR-43, for comparable provisions to.Part isis 14(b).

ve I. Amend Part 207 of the: Economic feguintions’ SO as

‘to authorize the certificated all-eargo carriers to. engage

II. Issue .to: Capitol Airways, Inc., Gustaiin National

: Recommended Decision of Examiner James s. Keith “

- for in Part.295 of the Economic Regulations as revised and :

. . Economic Regulations) * temporary certificates . of -public

States of the United States, on the one hand, and points . S

oo, Asia, as far east as ‘(and including) India, on the other —

hand, subject to the requirements of Part 295 as revised .

‘¢

o

.

“*

a

° ss

4

. |

« fifa - :

0 eee ores (19440, 19441) “

“TIL Defer final decision. with tefetiginee to J, applica

tions of Capitol Airways, .Ine., Overseas National Air-

ways, Inc., Saturn Airways, og ‘Modern ‘Air ‘Pransport, —

, Inc, US. Overseas “Aiflines, Inc., Quaker City Airways, .

Ine., d/b/a Admiral Airways, Inc., Airli Transport Car- -

riers, Ine.; , d/b/a California-Hawaiian Airlines, and -Para-

_ mount Airlines, Inc., until after the Board’s decision on the -

~ collateral applications of these varrieis under Section - 3

401(d)(3) of the Federal Aviation Act}* for. — to

i engage in supplemental air transportation;

IV: Revise Part’ 295 of the. Economic Regulations in |

accordance with the draft contained, i in Appendix. B hereof;

and. Gc” | rs,

f — 19441

Vv. ‘hain the application of Great Leis ‘Aistines lsd .- 3

Docket 11955,*and dismiss the applications of Th Flying aia

; Tiger Line, Inc., Docket 6668, Riddle Airlines, Inc., Docket

' 12152, and Seaboard World — Ine., >» Docket 11971.

Appearances:

Perry H. Taft, for Airline ‘Transport Carvicks, a/o/n |

California-Hawaiian Airlines.

Theodore I. Seamon, Joseph D. Sullivan and Stephan L. Oy,

Gelband, for Capitol Airways, Ine.

Norman L. , Meyers, and Ivan V. 7K erno, for The Flying =

“e

2 Tiger Line Ine.

Albert #. Beitel and John aH. Pratt for Modern Air :

Transport, ind.

Ramsay D. Potts, Jr. pnd Stephen D. Pots, for Over. “

séas N ational Airways, Ine.

*

: ©

ied,

I asi . : .

% : a Ae

. v

'

clea a Mi 20 oad MBN Ne ht hr tn lg ol tb a win hls sensi stnkaed

es 656a

(19440) :

' - 19440

UNITED STATES OF AMERICA

Civm AERonautics Boarp’ °

Wasuineton, D.C.

‘ Oo .

TRANSATLANTIC CHARTER INVESTIGATION: © *

~ Docket 11908 et al. -

‘Recommended Decision of Examiner James Ss. Keith

Iti is Recommended that the Board— .

ain, #2

I Amend Part 207 of the Econgfnic Regilations sO as

to atfthorize the. certificated ‘all-cargo carriers to engage

in transatlantic: passenger charter Service under. terms,

conditions, and limitations corresponding to those: provided

. for in Part 295 of the Economic Regulations. AS revised and |

contained i in Appendix, B hereof; -

: IIL. Issue to Capitol Airways, Inc., neal National —

_ Airways, Inc., and Saturn Airways, Ine. (upon compliance .

with the insurance requirements of Part 295.14(b) of the .

Economie Regulations)* temporary certificates of public |

convenience and necessity (expiring September 30, 1963)

authorizing supplemental air transportation of persons

_and their baggage between points in the 48 contiguous

States of the United States, on the one hand, and points

ner ee Cee Beene ty ear aE

aan - ¢

in Greenland, Iceland, the . Azores, ‘Europe, Africa and. ! :

- Asia, as far. east as (and ‘inelifiding) India, on the other

hand, subject to the requirements of Part 295 as revised

* and contained i in Appendix B hereof ; ;

bs See Notice af Proposed: Rulemaking dated iniabielier 4, ‘1962, 5

EDR-43, for comparable provisions to Part295. eas

- **

6579;

2 (194, 19441)’

oe

IIL. Defer final decision with reference to the applica.

-vtions of Capitol Airways, Inec., Overseas . National Air-

way® Inc., Saturn Airways, Inc., Modern Air Transport, —

Inc.; US. Overseas Airlines, Inc., Quaker City Airways,

Ine, d/b/a ‘Admiral ‘Airways, Inc., Airline Transport Car- -

riers, Inc., d/b/a California-Hawaiian Airlines, and Para-

. mount Aiaiinan Inc., until after the Boatd’s decision on the °

. eollateral applications of. these- carriers under Section.

- 401(d)(3)-of the Federal Aviation Act, for authority to

' engage in supplemental air transportation; .

IV. ‘Revise Part 298 ‘of the Economic a a in

accordance with the Graft, contained in Appendix B hereof;

~ and . ;

as ' 19441 : 7

V. Deny the applicftion of Great — Airlines, Ine, *

Docket 11955, and dismiss the applications of The Flying

' Tiger Line, Inc., Docket 6668, Riddle Airlines, Inc., Docket

12152, and Seaboard World Airlines, Inc., Docket 11971.

Appearaiices: |

Perry H. Taft, for “Airline Transport Carriers, ayb/a :

_ California-Hawaiian Airlines. 8

> Theodore I. Seamon, Joseph D.. Sullivan and Stephan |

Gelband, for Capitol Airways, -_. .

Norman. ‘L. Meyers, and ses V. ee, eal The Flying

Tiger Line, Inc. :

Albert F. Beitel and John H. Pratt, for Modern Air

Transport, Inc. ae

Ramsay D. Potts, Jr. and Stephen. D. sherad for Over.

. seas National Airways, Ine.

e

is a

AN kb OS AE A TINS A mA A ERG IRE ANAS IE RLM 1 CE Ne

— ere :

F ‘

ar eT sated

°

apa veeniah oe: BA ives Ae Citas) TVS en

pa een

ee ee, a ee

‘

658a

(19441, 1444) iy ot Seat ere

: Robert E. Fraley, for Great Lakes Airlines, Inc., and

Paramount Airlines, Inc.:

Warren E. Miller, for — City arias Inc., d/b/a

Admiral Airways, Ine.

Raymond J. Rasenberger and : Mitchell Strickler, for : =

Riddle Airlines, Ine..

Robert M. name, and Samuel K. Abrams, a Saturn .

Airways, Inc.

Richard A. Fitegerald and Joel Fisher, for ene

- World Airlines, Inc. .

G. Nathan. Calkins, for U. S. Overseas ‘Airlines, aaa

Jerrold Scoutt, Jr., for-World Airways, Inc.

Jerry W. Ryan, for Pan American World Airways, Ine. ©

’ Edmund E. Harvey, for Trans World Airlines, Ine.

“Rocco C. Siciliano, for the American aw of Travel

Agents, Ine.

Howard G. Feldmen, for the Bureau of Economic _— 7

lation.

° .* 28 © # @

19444

ea. . IntRopucTion

This is an investigation instituted by the Board for the

purpose of determining whether the public convenience and

necessity require the certification. of one or more air car-

riers (other than carriers certificated to provide unlimited

passenger service over designated routes) to engage in

- transatlantic passenger charter service to and from points

withip the United States, and if.so, under what conditions

should the service be authorized. In issue are the applica-

tions of eight supplemental air carriers, three certificated

‘ce. i

659a |

(19444, 19445)

: -all-eargo air carriers, a carrier holding interim operating |

authority as a large irregular air carrier and a former rae

large irregular air‘ carrier whose operating authority has |

been revoked. Bae nk

After leave to intervene was granted to Pan American _

World Airways, Inc. (Pan American), Trans World Air-

lines, Inc. (Trans World), the American. Automobile Asso-

-*. ciation and’ the American Society of Travel Agents

(ASTA), and copies of the applications transmitted to the

President of the United States in accordance with Section

-801 of the Federal Aviation Act of 1958, as amended, a

public hearing was held and briefs were filed.

19445

| | , Tue Issues

The geographical scope of this. case is limited to the

traditional boundaries of transatlantic route proceedings.

As defined in the Supplemental Order of Investigation and

; Consolidation,? it encompasses the 48 contiguous States,

on the one hand, and points in Greenland, Iveland, the

Azores, Europe, Africa, and Asia, as far east as (and in-

eluding) India, on the other ena a

The basic: substantive issues are those raised by Section

401 of the Act; they are adeoed by the order in question as—

4 : . .

(a) Whether the public convenience and necessity re-

. quire the certification of one or more air carriers

+ At the time of the public hearing 25 applications were in issve

in this case. However, 12 applicants failed to prosecute their re-

spective proposals and the Board subsequently ‘dismissed them in =.

_ Order E-18319, adopted May 9,1962. —

* Order E-17190, adopted July 18, 1961.

Osi csRtaesth Sisbuiee uae 2 .

we atin iE SOLON PI wand Ce Ce vies. A fi

6608

- (19445, 19446)

' to perform-transatlantic passenger charter flights .

and, if so, which carrier or carriers should be se-

lected to perform such transportation and what

terths, conditions, or limitations should be attached

to such certification, and

~ (b) Whether the. various ei, for transatlantic |

passenger charter. authority. are fit, willing and able

to perform such transportation properly, and. to

conform to the provisions of the Federal Aviation

Act of 1958, as amended, and the-rules, regulations

and requirements of the Board thereunder. |

With reference to any terms, conditions and limitations

that might be attached to any certificate the Board has

‘included the subsidiary question of the suitability of Part: .

295 of the Economic Regulations for a long-range charter

program. The only limitation on any proposed changes in

19446 a:

Part 295 is that they must fall within the. Mrendiy necented

meaning of charters’ and not involve individually-ticketed °

services directly by the carriers.’ Thus, proposals which

contemplate charters by professidnals engaged in the for- -

mation of groups for transportation (travel agents) cur-

rently prohibited under Part 295 are within the issues,‘

and proposals involving split-charters to so-called “affinity”

and ie rincaiieiaa’ groups are also acceptable.°

8 Order E-17607, adopted October = 1961.

* 4 Tbid. : :

. Order E- 18121, — March 19, 1962.

-

66la. -

| Tue APPLICANTS | |

Background. Applicants are one of three groups of

carriers which provide the bulk of transatlantic passenger.

‘ charter service. They came into existence as a class when-—--- ~~~ ~~

oo Board announced a new poligy in 1955 called the Trans-

~—

~ atlantic Charter Policy which established them as an addi.

es _tionalca egory of carriers to provide transatlantic charter

services. Under that hew policy the supplemental and all-

cargo carriers became eligible to provide transatlantic pas-

senger charters upon obtaining individual exemptions from

‘Section 401 of the Act to provide each charter.*

oo |

Since the establishment of its Transatlantic Charter

Policy in'1955 the Board has redefined and amplified the

standards for charter eligibility. Generally, these stan-

dards have followed the rules ‘of the IATA carriers as ap-

proved by the Board. In 1959 these standards, with minor

modifications, became Part 295 of the Board’s Economic »

. Regulations. Following its decision in the Foreign Of -

_ Route ‘Charter Investigation,” in Which ‘foreign air’ car- -

riers were for the first. time- authorized to perform

off-route charters in air transportation, the Board promul-

gated Part 212 of the Economic Regulations which estab-

lished charter standards for the foreign flag-carriers similar

to those applicable to the Part 295 carriers. ‘The next year -

after the IATA carriers improved their. charter standards

_ ©The U.S. flag multiple service route carriers are not. required

to obtain individual exemptions since they Posséss: statutory au- ©

thority to provide off-route charters subject to Board régulations,

They have been regulated under Part 207 of the Economic Regu-

lations since 1951. vs i iG.

"27 CAB 196, (1958).

° .

(19446, 19447)

—-~

See OB AG Ss LOTS, 0 TC ‘pe es |

+ ae

SO ae a

662a

(19447, 19448)

at the Board’s request, Parts 295 and 212 were modified |

© to conform in substantial respects. with the ee require-

" ments..

_ m 1961 Part:295 was again revised, this ine to provide

for individual ‘seasonal. exemptions in place apteeed

exemptions for each charter. This regulation i s/currently

in effect, providing for 180-day ‘individual exemptions —

( terminating not later than September 30 of any year) to

those supplemental and all-cargo carriers which are appli-

cants in good standing in the instant proceeding.

It.appears that this revision of Part 295 was occasioned

‘by the Board’s decision to institute this proceeding and its

conclusion that (1) retention of the power to disapprove

individual charter flights was no longer administratively

19448

necessary and (2) the economic and administrative burden

in obtaining approval for each flight so handicapped the

small carriers as to effect their. ability to operate the ser-

vices profitably.

As may be noted from the historical sketch of each a

‘plicant as hereinafter follows, very few have consistently

availed themselves of the authority conferred by the char-

ter regulations. For the 1962 tourist season 10 of them

filed applications for’ seasonal exemptions but only five —

were approved.’

* The cmnilinabiatin of . ONA, Riddle, Savers, Fiying Tiger and

Capitol were approved while those of Seaboard, Admiral, Cal-

- Hawaiian, USOA, and Paramount were denied. The latter, except

for Seaboard were denied because of lack of definite plans for char- _

ters. Since. Seaboard’s contracts for charters. had been reassigned

to another carrier the Board found that it had no substantial pro- ~

gram. al E-18390 rain May 20, 1962.

o

663a See 7.

(19448, 19449) ae

Capitol Airways; Inc., (Capitol) has been engaged in air

transportation service since 1946. It is one of the larger

‘supplemental air carriers, holding a five-year certificate®

and operating a fleet of 10 owned and 3 leased Constella-

tions and 15 owned and 2 leased (-46’s. | ae,

In. the early years of its existence Capitol operated a

flight arid ground training school along with its charter

service with light aircraft. In addition, it maintained sales,

, servicing and maintenance facilities. In 1951 it branched

out into the domestic military charter field and this busi-

19449

“ness has been a segment : of Capitol’s overall operations

since that time. It became a “Logair” contractor in 1954 2

and while its participation in this business has varied from.

yéar to year Some idea of its important to Capitol can be.

. gleaned from the fact that Capitol presently ‘utilizes 13 —

C-46’s in this. operation. Capitol has also steadily increased

its participation in international military contract service.

Currently, it provides ‘overseas service for MATS with its :

Constellation ‘fleet and it is also a CRAF contractor. :

_, Although Capitol operated a few transatlantic charters

‘in 1958; it did not seriously enter this field until 1959. Its

- 4 @ bd r

® This certificate and those of the other supplemental carrier ap-

plicants. hereinafter .referred to, as well as the interim operating

authority of Airline Transport Carriers, Inc., were cancelled by

Public Law 87-528 enacted July 10, 1962,-76 Stat. 143, 30 days

after enactment. However, authority to continue operations on an

interim. basis pending future certification under Section 401(d) (3)

of the Federal Aviation Act (which section was established by the

new legislation) was provided for upon compliance with certain

- prescribed procedure. Ea Yess |

Speen 2 sain ins sles peri oe = _ wai —

i ae | a 6642 - * ene

: (10808, 19450). ee: 7

q charter record from that time through 1961 is shown in .

: the table below: :

er. Transatlantic Transatlantic ; \ Passengers

Year '_ : Charter Flights Roundtrip Charters \ Carried

3 : ° . T peBy cee

ae ‘1959 a — 83 _ 6,428

a ie 1960 - 201 ar * 8,085.

4 1961. . 87 he et eae 8,375 |

4: - To support.its overseas operations Capitol maintains a

/ . | base at the Greater Wilmington Airpgyt which is leased

1 °° for a period of 9 years terminating in 1968. This base in-

. ’ eludes hangar facilities for maintenance of its Coristella-

tion aircraft and a substantial inventory of rotatable and

spare parts. Maintenance _personnel - (which consists of,

| afnong others, mechanics and experienced supervisors)

- number in excess gf one-hundred. This base also includes

a flight and ground training school “for pilots, flight en-

gineers, navigators, engineers, and stewardesses.

Capitol’s sales department is. composed of seven /per-

sons, two of whom are stationed at Nashvillé, two in’ the

_ New York sales office, two at the Chicago sales office and a

European manager Lenape in Paris.” In — its

“19450

: 2 president and two other high-ranking offiéers are engaged

| _ -in sales activities. However, promotion of its transatlantic

charters has been confined to. contact efforts with ‘agents

and organizations thtough personal visits’ and approschey,

by mail (including charter-brochure mail).

é Overseas National Airways, Inc. (ONA), like Capitol, ©

. is one of the larger supplemental air carriers; it Holds a

- five-year certificate.” ONA has been engaged in air trans-

- 7

psi teins aisalianli ab take ana Activin? othescina oi

yieeee ye

2° See footnote 9 onte.

. 665a

(19450, 19451)

portation § service since i947, during which time it has

. focused its efforts primarily on the development of mili-

tary business. Only for a brief’ period has its operations

been weighted in favor of: civilian. commercial services.

‘This was in 1957 and 1958. ‘In 1959 it again concentrated _

‘its activities in the direction of military ‘business and ‘the

‘bulk. of its service: has been™in this area: since. that time._

- For example, of a total of 405 million revenue passenger

” miles flown in 1959, approximately 333 million were op- |

- eratéd in international military transport service, Corre-..

spondingly, of 1.121 billion. revenue passenger miles op-

" - erated in 1960, nearly 1 1. 100 million. — flown for. the

military services.

Despite its concentration in the villares area ONA was

the largest Part 295 operator in 1958 and 1959. In those

years it flew 250 and 140 charter flights, respectively. How-

-ever, because of low fares. and excess equipment available

‘from foreign carriers in 1960 ONA ‘decided to curtail its.

charter operations. Hence, it _ operated - only 10 flights in

- 1960 and only three in 1961. Because of" the capacity which -

others would offer i in 1962 and the ienpiondine e group fares ,

_ONA decided against entering the market on any large

scale in that year.

ONA’s operations’ are conducted with leased equipment;

‘it does not own any aircraft. At the time of hearing it

leased 10:DC-7’s from the General Aircraft and Leasing

Division of General Dynamics Corp, ( GALCO).’ The terms

of the lease call for its expiration | in June 1962 but ONA

. states that it will enter into negotiations to extend the

lease. In addition, it has taken delivery on two other such _

, ° Lat? We. LY , ot es _

666a ” |

(19451, 19452) :

aircraft under leases with Douglas Aircraft and GALCO,

- respectively.. Sa .

ONA also has a lease arrangement. with Flying Tiger

. for the use of two Canadair CL-44 aircraft. This lease is

‘for one year extending from the date of delivery, of the

- aircraft. So far these aircraft have not been delivered to

the applicant, and it appears that the matter is in —

between the applicant and Flying Tiger:

~ ONA’s principal. operating ‘base is at Oakland National

= Airport, Oakland, California, and-its organization at that

point consists of a large compliment of flight personnel and

a number of other employees.: In New York ONA employs

a small force consisting of station and passenger service -

personnel. During -; 3949 when. it was engaged i in transat-

lantic charter service, this force was augmented by 48 ad-

ditional employees. Besides New -York, a small force,

including the president and his staff, have offices in Wash-

_. ington where financial and gorporate . seemees are main- 5

tained.

‘19452 Shar

Sates ‘Airwnys, In ne., (Saturn) ‘Yolds a Pee

certificate to engage in air transportation as a supplemental

air carrier." It was incorporated under the laws of the

State of Florida in 1948, and has been engaged. in air

transportation services since that time. It was originally :

known’ as AllAmerican Airways, but. in November 1960

it changed that ‘designation :to its present name. ee

For a short period in 1948 Saturn engaged in infrequent

: _individually-ticketed operations between New York and .

Puerto. Rico. When C-46 aircraft were acquired by the

company, laborers were transported under céntract from

_ . 4 See footnote 9 ante.

>;

e-

aes 667a' .

era ke wear ads, 10458)

*& + 7

Puerto ‘Rico to. cette 4 in a United States. From 1951. my

1959 the company 8 aircraft were operated principally un- . ne

der contract with . military. establishments. During this

period approximately 95 percent of: Saturn’ s revenue was :

| derived from CAM business. -

In 1960.Saturn acquired two. DC- 6 aircraft aaa entered . |

‘the domestic charter business. For the fiscal year ended

June 30, 1961, its domestic charter. business consisted of 9

percent” of the company’s total revenue for that period.

In 1961 it established sales offices i in New York and Lon- —

‘don and entered the. transatlantic charter business. In

1961 it operated 17 transatlantic charter flights and during »

the 8 months period ended February 28, 1962, Saturn’s —

‘transatlantic charter program accounted for 20 percent of

_ its total revenue. ; -.

S| 19458 |

Saturn’s present fig consists of two DC-6B sireraft

”

and three C-46’s. The DC:6B’s are owned by the company Lips

and also two of the C-46 aircraft are owned.

‘Saturn uses between 25 and 37 employees in its organ-

ization. The number varies according to the season: of

‘the year. and it includes, among other employees, a sales -

representative in New York, a sales manager and: secretary

in London, England, 8 pilots, 4 flight engineers and one —

‘navigator. Saturn’s aircraft are maintained under a con-

> tract with the All-American Maintenance, Inc., “a aad

. station in San Antonio, Texas. : |

World Airways, Inc., (World) holds a. five-year sdidliate ,

as a supplemental air carrier.* It: was incorporated in

1948 and has engagéd in various types of operations since

that time initluding a * common coreiage

- 7 See footnote 9 ante. :

,

(1945, 10454 ek Saat ae

668a oe

* avis wah service for the iniitinas the latter, er racing Pty

principally MATS, CAMS and oe has been the main- .

stay of World’s operations.

World has not engaged i in transatlantic charters allegedly

beeause of equipment limitations, low fares and: excessive

competition, It has performed some transatlantie passen-

' ger flights between. Newark, N.J., and Germany under

contract with MATS. These — were — on a ;

scheduled basis. ; .

. World’s main base of spiaidinin’ is located at the Oakland

| a Metropolitan ‘Airport where it maintains ifs. executive, .ac-

_counting, operations, and dispatch and -training offices. Its

a amen facilities are 1ocated at Oakland. In addition,

19454 ee

the company has an operations office’ in Honolulu’ and a~

sales office i in Los Angeles. :

At the time of the: ‘hearing World’s payroll cousistad of

"975 to 280 employees, most of whom are flight personnel.

Its ‘executive, administrative, and sales offices consist’ ‘of 10

employees. . cle

‘The company presénily iiseeatn a fleet of ‘eight Douglas -

DC-6a/b’s and five Lockheed 1049- Super Constellations. It _

-owns five of the DC- 6’s, and on June 7;-1962, it executed a *

contract with. the Booth Leasing Corp. .» an. ‘Francisco,

Calif., ‘calling \for the lease (with option: to purchase) of —

= _ two. 707- 320C ss fan jet aircraft, five spare’ engines and °

“spare parts. Th

estimated amount of the contract. is. ‘$16 .

million with World being required to deposit 20 percent :

OF $3, 200,000: by - Septemtber 28, 1962. Acéording to the ;

; testiznony of Worl ’s Director of Finance these aircraft

wilt be in convertible passenger cargo configuration and ie

will se sepa of ore 189 erie Bie ks Sid

en _on the other hand,

- ‘passenger mi

6690, ae ‘ | | ss

| (19454, 19455)

%

Modern Air Tronsport Inc., (Modern) is a smal] supple-

. mental air carrier holding a two-year certificate." It was

incorporated under the laws of the State of New York in

*. 1946 and began Services On an irregular basis in 1947 with

headquarters atMiami. In 1950° Modern transferred‘ its |

_ organization fronr Miami to Newark, and in April 1962 it.

* + moved to’ Mercer eee Airport at Trenton, N. J.

2 19455

Prior to 1952 ‘Métiern’ s operations consistha of “Se

dividually-ticketed passenger services and charters. The

former were concentrated in the New York-Miami and New

-York-San Juan markets and were held to be:in violation of &

- the Civil -Aeronauti¢s. Act. After a. change in Ownership -

and management in 1952 Modern discontinued the violations |

and focused its activities on CAM movements. Its princiffal ©

y business was in this area until 1960. This is illustrated by .

Moderii’s record for the period 1957 thru 1960. In 1957 it

- operated’ 17.283 million revenue. passenger miles: in CAM.

‘operations and only 958,000 miles in domestic > ade and

common carriage. In 1958 it increased its participation in

"domestic charters and common carriage, operating approx-

“imately three million: Tevente, passenger miles in these

: fields as against 15. 892 million revenue passenger. miles in-

CAM?’s. In 1959 Modern’s common carriage and domestic

“charter services ‘accounted for over four million passenger

*.. miles while.CAM movements produced 12.230 million miles.

' In 1960 Modern’s CAM program declined to less than seven 7

million revenue passenger miles. Common carriage service,

veloped nearly 14 million revenue’

— domestic charters produced nearly

*

18 See footnote 9 ante.

|

Fe wy Ah: $e Lele ita bantpex. eee nT ae Ne

° Ld ,.

MH AY A WAR Sal it Meth hab NEBR borer tastes tents sao!

14 See footnote 9 ante.

| ee

(19485, 19456) 7 ee

In 1961 Modern ‘pperated four C-46’s. ations: it dis-.

posed of three of these and acquired five Constellations,

two -of which were made operational and the remaining

three dismantled for spare parts. -Modern’s fleet of aircraft

as of December 31, 1961, consisted of one leased C-46 and’

‘two owned L-1049 Constellations. Its organization consists:

of 33 employees, four of whom are in the general and —

_ administrative department, six in. operations | and main-

tenance and oth in flight: personnel. Its general and adminis-

trative personnel also act as Modern’s sales organization,

and procures its domestic charter business. —

U. S. Overseas: Airlines, Inc., (USOA) is one eof the tigen |

| supplemental air carriefs holding a two-year certificate.”

It was incorporated in 1950 and commenced operations in

1951 under a letter of registration which was originally :

issued i in 1947 to Ralph W. Cox, d/b/a Ocean Air Trade- -

ways. During its existence.USOA has engaged in both

commercial afd military operations and beginning in 1957

it partieipated in all phases of domestic and overseas air

_ transportation open to supplemental air carriers. Domes-

tically it has operated CAM services, cargo services for

the Navy between the major naval bases in the U. S., plane-

load commercial charters for a wide variety of groups, and

regular limited _ individually-ticketed services between .

major points in the United States.

_ Its international and overseas services during the period

¥957-61 included transatlantic and Pacific charters, MATS :

augmentation ‘airlift in the Pacific, and limited aircoach

‘services between California and Hawaii. These operations

for the period from ey 1957 thru. ae 1961

a"

a 671la

= : (19456, 19457)

>

snc for - 116,000. passengers and 316,791 million

revenue passenger miles. Included were nine one-way

transatlantic charters i in 1957, eighteen i in 1958, two in 1959,

' ten in 1960, and six in 1961.

19457 7

~ USOA’s 1960 common carriage. -services, which consisted

of individually-ticketed service and commercial and private

charters, amounted to 41 percent of its business. The bal- —

ance of its operations were in CAM movements, Quicktrans

operations, and MATS services. In 1961 the division was

42 percent common carriage and. 58 percent military... As .

of March 10, 1962, USOA’s MATS operations were

_ Suspended by the military for unsatisfactory performance >

and contradictory financial information. :

In recent years USOA has maintained-a force of nearly

300 employees. In the first half of 1961 it had as many as

577 employees. However, it was suggested that -a large -

number ‘of these employees were specialists in the Navy’s

Quicktrans program and when Slick was selected to operate

this program in 1962 these specialists went over to Slick. ©

USOA’s executive, sales, and accounting offices and its

principal operations and majntenance, base are located at _

Cape May-Wildwood Airport, Wildwood, N. J. ‘The em- |

ployees at this base account for a large part of USOA’s

organization which also ‘includes a tour sales counter at’

LaGuardia Airport. USOA maintains a. ticket office in -

Detroit and counter space at Willow-Run Airport.

Oakland is the location of USOA’s west coast maintenance

base. Counter facilities are also maintained at the airport.

USOA also has sales offices and ticket counters in Burbank 7

and Honolulu.

_ At the time of hearing USOA owned eight C54 aircraft

and six DC-6’s. It leased two €-54’s.

“~

PES 1-850 aah tae HW melieees Se a Se ae foe) ee te eee eT ‘ bith shin ee wwe | .

3 ‘ hana ee Er ae PC pietieeislineetintia AON AeA Rh i Os

. °

. — ; , 4

mn

\ r .

. \ é

e . 2

“4 > .

‘i P , ’

Deitel 1 Ret LORRI NS ABD ie BBLS ie Nt wires PIII Tmt

’ .

' 672a. .

(19458, 19459)

| 19458 ©

Quaker City Airways, Inc., d/b/a Admiral Airways, Inc.,

(Admiral) holds a 2-year certificate as a supplemental air

earrier.* It was organized in 1946 under the laws of the~

‘State of Pennsylvania and has engaged in air transporta-

tion on:an intermittent basis since that time. For a period

of about one year between 1952 and 1953 Admiral.did not

| engage in air transportation services and its operations | _

were suspended for a brief period in 1956. In 1957 and «~

1958 a limited: number -of flights, both in_ individually-

ticketed and for the military, were performed. with C-46 —

_ aircraft; and a limited number of cargo flights were flown

in the first part of 1960. However, no services were oper-.

ated im 1959, or in the latter part of 1960 or early 1961. |

, The present management took’ over the company in

June 1961, immediately leased two L-749 Constellations

from California Airmotive Corp., and began individually-

ticketed services. These services were expanded, and in

December 1961 Admiral’s -new management leased two

DC-6’s from Nevada Aero Trades Company. On February .

14, 1962, Admiral leased an additional DC-6 and in that

month it performed a substantial number of CAM charters

‘in addition to its individually-ticketed ‘services. In April

Admiral added a third Constellation to its fleet of leased

aircraft bringing the total number 7 to.three DC-6’s and’ -

three.L-749’s.

Acéording to the president of the comipany the DC-6’s

havé been allocated to the CRAF program and Admiraliis

presently » awaiting security clearance preparatory to

executing standby-and-call contracts with MATS. As of ©

Pia Se

| December 31, 1961, Admiral’s organization consisted of

68 .employees, 60 of. whom were in flight personnel.

18 See footnote 9 ante.

a age See a ED ee eT

18 See footnote 9 ante:

- 678a

(19459, 19460)

Aitline Transport Carriers, Inc., “d/bsa California-

Hawaiian Airlines (Cal- -Hawaiian) is presently operating

“as a supplemental air carrier under interim operating $

authority.** Except for two brief interruptions i in its service

during 1951-52. (when it suspended operations pending the

disposition by the Board of a Section 408 application for

control of the applicant and California-Central Airlines)

’ and in 1955 (when these companies were adjudicated bank- ‘

rupt)’ Cal-Hawaiian has engaged continuously in air trans-

portation since 1946. During. this time it has used DC-3,

DC-4, Martin 202 and recently Lockheed Constellation air-

craft.

Cal-Hawaiian’s. operations in "1957 were comparatively

light, yielding only a little over $100,000 in. revenue. In |

1958, with contracts and charters accounting for $1,300,000, ~

_Cal- Hawaiian experienced one of its best years. in oper-

ations. In 1959 it operated two transatlantic charter flights

which increased to 35 in 1960 and declined to 13 in 1961: -

‘These chartérs were in addition to individually-ticketed and

other charter services.

* During most of 1961 Cal-Hawaiian employed around 60

empldyees. However, at the time of hearing its personnel

numbered around 45. Its aircraft fleet consisted of one

leased L-1049 Constellation with a seating capacity for 104°

passengers. ‘Two other similar model Constellations which

had been purchased sibs under a ee sales

“194605

~ contract with TWA were returned because of failure to

meet payments. The. secretary-treasurer of Cal-Hawaiian

testified that the market price of these Constellations de-

clined to such a point that it was more favorable for Cal-

ener a

sn is

eT ok ghey

he 28 A OU eB A Oe oh

.

tia cide MAPA Ab et BO BEE 2 MRD Re A et nN

EO TI ee ee ee

(ee ee

’

— 5

Pa Sn weer rere ee,

price. .

-' debentures. |

674a

(19460, 19461)

- Hawaiian to return the siieratt to TWA and to negotiate

with TWA for a cash buy-out ata substantial reduction. i in

e ¥ °

Paramount Airlines, Ine. (Paramount) is an indirect suc-

cessor to Paul Mantz Air Services which prior to October

1960 was an individual proprietorship owned: by A. Paul ~

Mantz. At that tirne the Board approved the transfer-of the -

‘

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Appendix — World Airways, Inc. v. Pan American World Airways, Inc. · 391 U.S. 461 | Frix