# Appendix — World Airways, Inc. v. Pan American World Airways, Inc. > Briefs, arguments, decisions, and more. URL: https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385001_1111%3A03 ## Record - **Collection:** Supreme Court brief - **Document type:** Appendix - **Published:** January 1, 1968 - **Citation:** 391 U.S. 461 ## Text m. * m ” eons, ae ee . ‘ . oe t . , ”; >. “ K Ys - # é : ; i a ~ is 2 ‘, ! PP , Fs ba . . 4 F Bg : ~ 9 aw. . : ‘ ry J 7 ‘“ sU Ns a, ] ee _Fegpeet to persons. and: ‘property, as follows: qe si fold heathen te WLR oo _ . a: . i, - ‘ te t . . 566a - ; Bee i 12151 rats Nae : : ‘ oe ; — fm a ed gaa SMe ek SS _ Issued parsuant. to rg —. No. H-24237 ‘UniTED stares oF 5 aatca . | fe Onn, "AERONAUTICS Boaz ‘4 fo : ee * Wasuniofon, D. ©. . ‘ 3 ‘ — ‘ , ef, Se ah Centirigare OF : Pyeue Convenrexce \yxp Néceasiry . - ‘Strruemewtat, Am Transgenition, re Ys a I «.?* a a ae ‘ ) | Oa J « Ca ee enn = on © ' { , see i ie A ’ ie = 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— : _ 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 (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 _ - 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 oo ae a a 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>» 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 . . . — = — ensem ' Re " ; . . . . er . ; : . ‘ 7 , a) . ‘ eo " ‘ . : : . . . 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 ' > = = wt Dai i an Hyon va . : ‘Puen dite ht RNa ia est scitbtle b iF 0 lah IS casa Nl i ee EW i Bont ATi Ole a See Ee i * , oe. 0 . > . “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 - ‘proprietorship to“ Paul Mantz Air Services, Inc., a. cor- ' poration which had been’ organizéd in.1956 to engage in ‘fire-fighting ‘flight operations, air-to-ground photographic ~ mapping’ enterprizes, and the production of films for the movie industry. On October 18, 1961, the certificate of incorporation was amended so as to change Yhe name to that of the present applicant. Paramount has an authorized cauiithlination of 75,000 sharés of common stock at a par value of $1 per share. There is currently issued and outstanding 25,000 shares which are owned by Theo. O. Bodwell, president and direc- tor of the company and a former pilot for Great Lakes Airlines, Inc. Bodwell procured the stock and debentures ~ in the amount of $60, 000 from A. Paul Mantz on February — 11, 1961. The price paid for the stock and debentures _ ‘amounted to $50,000. This sum. was borrowed from Pierce O’Carroll a longtime friend of Bodwell’s. According to the testimony, the loan has been repaid by Bodwell with salary - proceeds .and funds obtained by — some of the - 19461 Paramount commenced domestic flight operations on an individually-ticketed basis on or about March 23, 1961, utilizing an L-1049 Constellation aircraft. After leasing two | _L-749 Constellations during May and June of 1961, Para- mount cancelled the lease of the L-1049 aircraft. It operated - (Mielke Didone 675a . ( 19461, 19462) l tatelibine’ with te two L-749's, using one in CAM _ -opérations. - ‘In February .and March 1962, Paramount leased re DC-7C aircraft and plans to acquire an additional DC- 7CF. cargo convertible type aircraft. Great Lakes Airlines, -_ (Great Lakes) was organized “in 1940 succeeding a ‘partnership by the same name which - began operations in 1945. It continuously engaged in air | transportation services from 1945 to December 1961 when its operations ssceacataed as a result of ee ) action. Great Lakesi is owned by Captain I. ‘E. Hermann and © . Mrs. I: M. Hermann who also own Great ‘Lakes Airlines Maintenance Corp. which has performed major maintenance ' aircraft work for Great.Lakes and other supplemental air — _ which, in turn, owns five Lockheed L-749 Constellations. . - earriers. The Hermann’s also operate, as a partnership, Nevada Aero Trades’ Company which owns three DC-6 is aircraft now under lease to Admiral Airways. They also, own all of. the stock in California Airmotive Corporation — Two of these aircraft are leased to Paramount and the other three to Admiral ‘Airways. : While Great Lakes is not actively engaged i in air trans- portation at this time and has only a skeleton organization . which allegedly is winding up the affairs of the company, the secretary-tréasurer testified that, since California Air- 19462 — motive Corporgtion and Nevada Aero Trades: Company are ‘solely owned by the Hermanns, there would be no problem in reorganizing the Hermann enterprizes so as to make Great Lakes immediately eee with DC-6 and Con- . stellation aireratt. athe Ds Se restos: : ain , * . e SPF Ae no bao Ne 0s 0 te enn Mine Bate. ante hae enn pein ion t Jah, soho -" eS aan 676a - * (19462, 19463) “Riddle Airlines, Inc. (Riddle) is a certificated all-cargo air carrier which holds authority to engage in both domestic | and overseas air transportation. Its certificate for route 120 authorizes property and mail (nonsubsidy) services between the nertheast United States and the Great Lakes, on the one hand, and Florida on the other; and its certificate - for route 109 covers similar authority for services between New York and San Juan via Miami. . Although Riddle has engaged in air transportation fox over ten years its first experience aS a passenger operator came in the summer of 1960 when it converted one of its three DC-4 aircraft to passenger configuration and flew 18 one-way transatlantic charters for nearly 5 million revenue | passenger miles. In the. late summer of 1960 Riddle began altering its DC-7F cargo aircraft so as to make each air- _ eraft a convertible vehicle capable of carrying.either cargo- or passengers or both. These aircraft were used in its transatlantic charter program in 1961 which covered 27 - one-way flights and 11.729 million revenue passenger miles. . i . e Finch eae otis Aimy Se ies At the time of hearing Riddle’s 1962 transatlantic charter .. . ‘program embraced signed contracts for 226 one-way — charters. Approximately 180 of these charter trips will be z European originated.. aL : 19463 ue --Riddle's dinin base of operations is located at Miami, - Florida. Its transatlantic. sales force is maintained in ‘Washington, D. C., where a staff of five sales‘and admin- istrative personriel are located. Riddle also has major sales offices in New York, Los Angeles, London, and Frankfurt, and maintains cargo-passenger sales offices in several other : major cities in the United States. Riddle’s total personnel at the time of hearing numbered between 800 and 900 employees.- This was a decline of © 67a 7 | | 46, 19464) __several hundred employees due to the beinnpiiiinate depen.” Sion of Riddle’s common carriage operations at Chicago, ” (even, Boston, Indianapolis; Tampa/St. ‘Petersburg, - Atlanta, and Philadelphia. Normally, Riddle has in the. neighborhood of 1100 or 1200 employees. Riddle’ s aircraft fleet consists of ten DC- 7F aireraft with a seating capacity .° for 99 to 114 passengers and it also has seven Argosy cargo ° aircraft which it-uses in its military Logair operations plus , | 30 C-46’s and one DC-4. The Flying Tiger Line, Inc. (Flying ese) is the coun- try’s leading domestic. all-cargo carrier. It holds a certifi- -_ eate for Route 100 which. extends from the major cities on the east coast through the midwest:to the principal points on the-west coast. It has engaged in air transportation since 1948 during which time it has provided a highly diversified operation. , It has engaged in substantial com- mon carriage freight services and has performed extensive passenger and cargo operations for the military as wal as commercial ‘selliertis and cargo charters. ‘19464 It engaged in n transatlarttic chartes before the _Board’s ‘Vrapeattantio Charter Policy. However, it was not until ‘1957 that it entered the transatlantic charter market on a large scale. Between 1957 and 1961 it operated a total of 433 one-way transatlantic charters which was the largest number of charters performed by any..Part 295 carrier during that. period. Flying Tiger. led the’ field in 1957 and 1961 and was second to ONA in 1958. In 1959 and 1960 at By Order E- 18184, adopted April 5, 1962, the Board author-. ized Riddle to suspend services at ~— points until December 31, 1962.. 678a : ira woe ts: . Flying Tiger ‘decided not to aggressively pursue trans- _ atlantic. charters because of the rate ‘situation and com- Me petition from foreign — carriers. In those two years it operated pniy 43 one-way charters. In terms of personnel Flying Tiger i is the largest of the Part 295 carriers. It has nearly 1200 employees. Flying Tiger maintains a year-round full-time sales office in New . York City and it has a year-round sales representative in London and Frankfurt. At the time of the hearing Flying * Tiger’s aircraft fleet consisted of 12 1049H Super. Constel- : lations, -10 Canadair CL-44 turboprop aircraft and one C-46. The Constellations will be sold as soon as Flying Tiger has “a reasonable. offer. ” Seaboard World bitiins, Ine. (Seaboard) is a certifi- ip cated all-cargo carrier holding authority to engage in foreign air transportation over Route 119 which extends - from New York to points in the British Isles and Western Europe. It has held this authority since 1955. However, | - Seaboard has been operating transatlantic air services since Aneeit 1947 providing both cargo and passenger opera- _ tions. It began scheduled commercial all-cargo services over 19465 Route 119 in April 1956 and has continuously provided this service since that time, In addition, it has rendered sub- stantial passenger and. cargo services for the military as well as limited civilian passenger charters to groups and to several foreign flag carriers: Among the civilian. pas-. * senger charters performed directly for groups were 87 one- .way ees er oe the Peri! ‘1957 through D, patie fas re ‘ ‘ ‘ % 679a ; | ° Ese ee a See a see (19465, 19466 " Seaboard’s: ‘main cpeatine base is ; at wie 3 York. where it employs 829 flight and ground personnel. In Europe ' Seaboard maintains offices -i in 17 cities and these offices are ' staffed with approximately 250 employees. Seaboard’s total organization: consists of approximately . 1100 em- « Ployees. Sales offices are located in Los Angeles, San _ Francisco, Atlanta, Boston, Chicago, New York, Cleveland, ~ “and Dallas; and in EKurope—Austria, France, Germany, Ireland, Switzerland, and the United Kingdom. as, Seaboard has an aircraft fleet of five Canadair CL- 44's, fe, _ and one ‘C46. These aircraft are equipped for conversion. a to passenger configuration. f Proposals ( Geographical Scope wil Plan of Operations). ; ‘In response to a request of the Bureau of Economie Regu- . lation each of the applicants submitted a proposed: form of certificate, which, among other things, delineates the. geo- graphical area within which the transatlantic charter serv- - ice would be authorized to operate. These certificates show | that eleven of the applicants ‘seek the broadest possible geographical coverage within the issues of the case, with nine of them proposing suvewes in precisely the same * 19466 language as that used hd the Board i in ae the geo- . graphical scope,” viz, ? a ? Between points within the 48 contizizent States of 5 _the United States, on the: one hand, and points. be- ee eee \. , tweén Greenland, the Azores, Europe, Africa, and : Asia, as. far. east’ as (and including) India, on the: ',, other hand. : , | » :* Wades ae Pa cw ne WI ; a pes and Galitorhia-Hawaiiai ‘pdvoonte: a more : . ** “detailed description of. thé countries sto be: served. ‘The », former would specifically name the ‘eoterminal points in the | are, ‘area: Hat could be’ ‘authorizéd; ;.they do nat propose to serve sae ae Wee ‘some of , the countries in Asia and Africa, _ te say eae At the prehearing conference the Bureau: seach the if Ws . applicants. to submit their proposals, s, \partictflarly. their: ' + oy traffic and finahcial forecasts, on the basis ‘of three dssump-_ Pee eee . tions: (ay That, only one carrier V would be certificated, (2)... we that three. carriers would be « certificated, ahd. (3) that’ six . _-with the | ‘requests nd. most of them agreed that. the Part... ie a a authorizations should not extend to all of the axplicakts. | " “Geveral, however, were, of the-qpinion that” there should. o. ts gh; Demo. Himitation on-the number authorized. Seaboard took | | Pr: : othe position: that a single carrier, viz, Seaboard, should. be oe stg A. Z certificated. ‘The conserisas of | opinion among those coat a, position on ‘the number of carriers that should be author- * ‘ bed § is. that. more than three b bitno- more thai six Should | eeRONG - eerie Oy A er eee ‘' appendix: ‘ sets a hrth in some detail “each applicant's’ DCP? s, or -L-1049.° Constellations. — ‘Ewo of the all-cargo % eae ot hn otnteliions: and Riddle, if. traffic eoniditions warrant, F ae r e* ~~ a °- oe 3*.° F = . ; | : > ; ’ 4% - en ae J Z ¢ ‘ ‘ ” . j vi “~ : 5 “ « ee _ * —s aa wat pao etotnls => é ; » er ee ne : - United States and all éf the. foreign coinitries to be served. a eee Only Admiral. and Paramount seek less than the maximum “i chrriers. would be authorized. ‘Most, applicants complied |» Plan of” ‘operation. it will be. noted that initially most of © _ them. plan, to use ‘piston. ‘engine aircraft, either DC-6’s, .’ arriers, vib, Seaboard: and. Flying Tiger, propose to’ use A ~ . e . bd « - . ——- ~~ -- ‘ . . . : ° aa : and’as one of six carriers: the range is from two to four. Beers excess of $1. million - oh the assumption of being: the sole | three carriers authorized. ‘As one of six carriers the operat-. anette then prec chia at da O staid niet So gtoens ww tt iia rae hi. os “ : ¥ * 68la- ° casser, 19468) : "707's to be detiveted 4 in mid- 1963 and aes will be worked ‘into its proposed charters. 7 The requiréments on the fhhumber of aircraft needed vary considerably under the assumption that -a [Text truncated at 120,000 characters. The full text is on the page linked above.] --- Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385001_1111%3A03. Public record. Not legal advice.