Petition for Writ of Certiorari — World Airways, Inc. v. Pan American World Airways, Inc.

Supreme Court brief1968

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INDEX

: ' Opinions below TERNS een ee RN Se eaeReeTO ICED

- Jurisdiction Lcciisciiesancassadbaank Raaisencsiitant tilly aes

Questiori RRS reer ibeissihisiaieteti

Statute ETRE a HORE ALOT SLR

- Statement ............ elidssiccms ere tani eran nectecalesneee |

_ Reasons for granting the writ wosieniyemewereasensnenenenstod phadanasibics

Conclusion TCP oR one eaprauionaepiain eee

EE ART Cen Oa Pre tn Ne 11

Pe ienicinngietindinacmcemagh.

Appendix COREE ORR Ce eT es eed 97

Appendix D ............... ERATE LITE SER Diibkce keane Sane

SS IRD ART ER ee

ie CITATIONS

Cases:

diiabhiis Airlines v. Civil Aeronautics heind. 235

_ ._. F, 2d 845 certiorari denied, 353 U.S: 905............ 3.

American Airlines Vv. Civil Aeronautics Board, 348

Mie fC CREE Dy ee 9 bate Ser eT we 4

American. — v. C tuyl ‘haomeiaiies Board, 365

ER EERIE TIC Tinie Sener gem 5,9

C. & S. Air Lines Vv. Waterman S.S. Corp:, 333

*) a Te I a nca EOCENE Sem. SOR PEPERE SS AN On OO am eS

“National Labor Relations Board Vv. Coca Cola Bot. ;

Co., 350 U.S. 264 ......... ies: OE LO I EO OC 10

Tauck Tours, Inc., Extension—New York,52MCC °.

373, affirmed, National Bus Traffic Association

v. United States, 143 F. Supp. 689, affirmed 7

omen, Be UR He <8

aan V. Tome, S50 U8. 2 10

United Air Lines v. Civil:Aeronautics Board, 273.

F. 2d 446 vacated, 364 U.S, 297.......... Sanagecsechtoneeomne : 3

Statutes and Redalations: a ghee ae & Page

Federal Aviation Act of 1958, 72 Stat. 731; as.

amended, 49 U. S.C..1801 et'seq:

Sec. 101(10), 49 U-S.C, 1801(10) nes 7 111.

Sec. 101(32), 49 U.S.C. 1801(32) 00

- See. 101(33), 49 V.SC. 1801(38).................... , 2, i

Sec. 401(a), 49 U.S.C..1871 (a) .eceeeeeceecoeneee- i 2a

Sec. 401(d) (3), 49 U.S.C. 1371 (d) | eee 2,3, 112

Sec. 801, 49 2 voy er mde nares ---2, 4, 118

Sec. 1006(a), 49.U.S.C. 1486 (a) POSS Ne AE TE 113

_ P.L, 87-528, 76 Stat, | _—_SA ENE Er ee 3

Board’s Special en, Part 378 . ciltaltaneseuicdeeias 3

Congressional material : | Eitan

H. Rep. No. 1177, 87th oes. 1 Oe... 4, 7,68

S. Rep. No. 1567, 86th Cong., 2d Sess ..................-. eon

_ S. Rep: No. 688, 87th Cortig., 1st: Sess....:..............---- 8

@ ;

an the Renin Court af the United States

i —— TERM, ‘1967 © ae

CIVIL AERONAUTICS BOARD, PETITIONER

ee ee oe ate

‘PAN AMERICAN WoRLD AIRWAYS, INC, ‘TRANS WorLD

AIRLINES, INC., AND AMERICAN AIRLINES, ae.

_ PETITION FOR A WRIT-OF CERTIORARI TO THE

UNITED STATES COURT OF APPEALS FOR

@ . . THE SECOND CIRCUIT .-

The Solicitor General, on behalf of the Civil hae.

_ nauties Board, petitions for a writ of certiorari to |

review the judgment of the United States Court of

Appeals for the iia Circuit, = in this case

- on — 20, 1967. :

- OPINION id BELOW

The opinion of the court of appeals (App. A, on <n

‘pp. 11-36) is reported at 380 F. 2d 770.* The Board’s

. orders under review ‘in this case (App. B, infra, pp.

37-96). adopted by reference its discussion of the ju-

risdictional question presented in Order E-23350, is-

. et coe (1).

sued on March im 1966, treating the identical issue ~ =

In the-domestic phase of the same consolidated pro-

ceeding (App. C, infra, PP: 97-108).

e . »

J URISDICTION

.. The judgment of the court of enintale was sare:

on July 20, 1967 (App. D, infra, pp. 109-110). Timely.

petitions for rehearing and rehearing en banc were

_ -denied on September 29; 1967.. The jurisdiction of

this Court. is invoked under 49 U.S. C. sie and

28 U.S.C. 1254 (1).

QUESTION PRESENTED

Whether the Civil Aeronautics Board has the power

. to authorize supplemental air carriers to carry in- .

| clusive. tour charters.

STATUTE INVOLVED

pe penn provisions of the Federal ‘Aviation Act of |

. 1958, 72 Stat. 731, as amended, 49 U.S.C. 1301 et

_ 8e9., are set forth in Appendix E, infra, PP. 111-114.

_ STATEMENT ie

“This ease involves several orders adopted by the

Civil Aeronautics Board, with the approval of the

; President, pursuant to: Sections 401(d)(8) and 801

of the. Federal Aviation Act (49 U.S.C. 1871(d) (3), -

1461, -App. EK, infra, pp. 112-118), which awarded.

certificates of public convenience: and necessity to °*

| various supplemental air carriers authorizing them to

engage in “supplemental air transportation (includ-®

~<a

ing inclusive tour authority) with respect to persons

and property” between points in the United States

and various foreign points (R. 566-593, 1083-1086,

1107-1118).

In 1962. Satins amended the a Aviation }

_. Act to empower the CAB to grant certificates of pub-

lic convenience and necessity for “supplemental air

transportation”? (49 U.S.C. 1871(d) (3), App. E,

_ infra, p. 112). “Supplemental air transportation” was

defined as “charter trips in air transportation *:* * to

supplement the scheduled service” which regular route ae

carriers. are authorized: to provide. (49 U.S.C. 1361

(33), App. E, infra, p.. 111). : :

*The supplemental air carriers are a group of. carriers, :

known at earlier stages of their historical development as.

“non-schéduled”: or “large “irregular” air carriers, which cs

instituted operations after the close of. World War II undér a

’ then-existing. blankét, exemption for non-scheduled operations. :

‘Generally spéakin? ‘ “inclusive tours” are synonymous with —_

_ the familiar “all-expense” or “package” tour which includes

not only the basic air transportation but various land arrange- |

ments, such as hotel accommodations, meals, sightseeing, etc.,-

and “inclusive tour charters” .are arrangements by which

the air carrier charters the aircraft. to a “tour opérator”, a

travel specialist who sells the entire package to the ebiie:

for a-single price. All such charters must be conducted in .

conformity. with the detailed requirements of Part 378 of the

Board’s Special Regulations (R. 414, 604). (“R.” citations

refer to the pages of the J oint Appendix filed in the: court

below).

?P.L. 87-528, 76 Stat.-143. As a result ‘of the decisions i in

_ American Airlines v. Civil Aeronautics Board, 235 F. 2d

845 “(C.A.D.C.), certiorari denied, 353 U.S. 905, and United

Air Lines v. Civil Aeronautics Board, 278 F, 2d 446 (C.A.

D.C.), vacated, 364 U.S. 297, the statutory basis under then-

existing law for continued operations by this class of carriers

was placed in doubt and this led to enactment of P.L, 87-528.

<->

On March 11, 1966, the Board aidopted three sets of

- orders, involving the domestic and ° international

phases of supplemental carrier operations, each of |

which concluded that inclusive tour charters were’

charter trips and that such services should be author-

ized (R. 332, 543, 1060).* The Board determined that

ms it had statutory power to authorize inclusive tour x

charters because: (a)" such charters fall within the

_ generally. accepted concept of charter operations, Na-

_ tional Bus Traffic Association v. United States, 143

- F. Supp. 689 (D.N.J.),- affirmed per curiam, 352 U.S.

1020; (b) Congress intended that the interpretation

and. application of the term “charter trips” used in | . |

the statute be left largely to the Board, American Air- |

lines v. Civil Aeronautics Board, 348 F..2d 349 (C. A. |.

D.C.) ; and (c) such authorization would further the ©

overall purpose of the 1962 amendments to the Federal

Aviation ‘Act, which was to strengthen “the economic. Be

‘ outlook for the industry. ” 4 Since under Sectiori 801, 49

U.S.C. 1461 (App. E, infra, p. 118); supplemental air ° |

transportation awards involving international routes .

~ must be approved by the President before publication, .

only that order of the Board dealing with domestic

> service was immediately subject to judicial review.

_ Respondents sought review of that order in the

3 Court of =e for the District of Columbia, con-

’ Two sets of orders ¥ were ep reee in- the Stenplenedital Air

Service Proceeding (Docket No. 13795) and the third was.

entered in the Transatlantic Charter Tiwestigation (Docket .

No. 11908).

*H. Rep. No. 1177, 87th Cong, ist Sess. 17.

tending that the inclusive tour chaNers were. not

“charter trips’ and that the. Board awards were

_ therefore in excess of statutory power. ‘The° court |

“rejected respondents’ contention. and - affirmed the

Board order, holding that the Board’s interpretation. —

of its statutory power “comports with the overall:

statutory intention of Congress, ” American Airlines es

v. Civil, Aeronautics weenie 365 F, 2d 939, 944, 948,

(C.A.D.C.). .

_ A few: months after the decision of the ae of

* Appeals for the District of Columbia, the awards for

international inclusive-tour charters were approved by.

the President and released to the public. Abandoning :

the affirmative steps they had taken to seek review-by

this Court of the decision of the Court 8 Appea]s for

the District of Columbia sustaining the domestic or-

der, respondents sought review of the international —

inclusive-tour authority in the court. below. “The

court set aside the Board’s orders, ‘holding that “the

. term ‘charter trips was.not intended to embrace the

inclusive tour charters authorized by the Board’s or-

ders” e (App. A, infra, p.. 24).

5 Resvondente also eontentiea ‘below that the cnters were

invalid by reason. of -certain procedural defects. The court

did not reach these issues because of its determination that

the award of inclusive tour authority was in anysevent beyond |

is re

the Board’s statutory power. The Board argued below and, if . |

- ,certiorari“is granted, will argue here that consideration. of

these contentions is barred under the Waterman Steamship

- doctrine (C. & S: Air Lines v. Waterman S.S. Corp., 333 U.S.

103). Thus, we will urge that the proper disposition of this

. case, if thix Court upholds the authority of the Board to

* award inclusive tour charters, would be to reverse and re-

mand to the c of appéals with instructions to enter sane

ment atin the orders under review.

6 ‘

"REASONS FOR GRANTING THE WRIT.

This case presents a direct conflict ‘iviiin the Dis-

trict of Columbia Circuit and.the Second Circuit con- .

cerning the meaning and scope of ‘a fundamental pro-

vision of the Federal Aviation Act.- ~The issue which :

divides the courts is of continuing and major signifi-

cance, for it ‘involves determinations by the Board ‘and.

the President. as to the future plaée of ‘supplemental

air carriers in the nation’s air-transportation system. ~

4; Unless the judgment below is reviewed by this

Court, there will be left standing separate decisions

of two: circuits which cannot be. reconciled.” As for

mulated by the court below (App. A, infra, p. 24),

“The question before us is whether the Board’s statu-

- tory authority to issue certificates of public conven-

ience and necessity for ‘supplemental air transporta- -

‘tion,’ definéd as ‘charter trips in air. transportation,’ Mo

* * * includes the power’ to authorize inclusive tour.

charters.” Upon the basis of the pertinent legis-:

lative’ history and judicial precedent, the District .

of Columbia Circuit answered the question in the

affirmative. Invoking precisely the same legislative

history and judicial precedent, the: court below an-

swered the same question in the negative. _As mat-

ters presently stand, supplemental car riers” may : Op-

erate domestic inclusive tours, while“ the identical

‘charters in overseas and’ ‘foreign air transportation

a are ‘unlawful. * In these ,circumstances, this Court

*It is of no moment that the awards sustained by the D.C.

Circuit were for domestic operations, while those held un-

lawful below were for international operations,“ The statu-

. 8

, AL

o > , ae

“*

| should resolve the. sictadiues conflict so that the Act may 3

be uniformly: administered.

. warranted, even if there were not a conflict in the cir-

cuits.. Congress:has recognized that the supplemental:

- air carrier industry is a “significant and valuable

- part of the Nation’s air transportation system.”? The _

“basic purpose” of the consolidated cases which*eul-+

: minated in the awards challenged below was to make

4 a “comprehensive and cohesive” determination as to

the appropriate place of supplemerital’ carriers-in that ~

system (R. 54). Many factors of national. import-

ance entered inte the Board’s decision, including the

_ potentially favorable effect which the. operations au-

thorized would have gn the balance of payments defi- -

cit problem (R. 549-553), and the importance of -

. Strengthening the economie position -of the supple-

‘mental carriers in order to. enable them to maintain

and increase their already recognized value as @ na-~

_ tional defense asset (R. 72-84), Moreover, sincd_ the

Board’s decision required Presidential approval, the :

challenged- awards reflect the President’s determina-

om tion as to the appropriate role of word supplemental

tory definition of “supplemental air transportation,” i.é.,

_ “charter trips, in air transportation,”. is the same for in-

terstate, ‘overseas, and foreign operations since “air trans-

portation” by definition embraces all three without distinction

(Section 101(10),- 49 U.S.C, 1901{ 10), pat E, infra, p.

111).

7S, Ses, No. 1567, 6th be. od Sess., p. 5. ica

‘H. Rep. No. 1177, 87th Cong. 1st Sess., es 16. .2

‘

od ; xe ° , \" ‘ &

_ 2. Moreover, the issue involved in this case is. of #

such consequence that review by this Court would be.

“8 ah my si ee mie

Sngusteg in ‘eteinsidians air ineneiiobeation” We sub-

7, mit that-a a decision of 4 court of appeals which strikes

Mek “\down a progtam of such significance merits review by

Ff N ‘this Court.*~ , Saperts Inala a be a

ft \ 3.° A. careful analysis’ "oe" ‘the: legislative history of

the statute supperts the conclusion that the Board is ‘

‘engage in inclusive tour: operations. | “The Senate Com- ,

\ mittee specifically stated that inclusive tour charters

mee of the sort authorized by | the Board. “conform to the

; : every. different sort of Séivice ‘from individually tic cket-

fed Aransportation” (S. ‘Rep.: No. 688, 87th Cong., Ist;

Jes, pp. 13-44), and the Senate version of the:legis-:

“Jation. expressly. embodied the: inclusive tor ‘charter

“t Teoncept. into''a statutory’ definition of “charter sérv-

a ‘ice. _ The House | Committee;,on the other hand, took — Es

ae } thie 1 view: that authority - to define, charter ‘services e.

“that Cy ‘€. S. Atrlines v:: ‘Wate erman. S:S. Corp., 333 U.S. 103, *

= ~ precludes review of. Presidentially. ‘approved, orders ‘author-

‘izing\U..S. .¢arriers/‘to engage in’ international air trans- °

side cs portation so long as review is confined to thé issue: of statutory.

Be Faery ae “power. ‘to’ make the: award, * “As” noted ° above, see note 5,.,

‘yf *é * gupra, the. Board ‘eontendéd. 1éd; only, th that. allegations. concerning |

~s*

judicial-réview.. . 7 o.° a

_ Nationa. Bus Traffic Association V, United States,’ 143 F.

: ia 689 . Nv. ), eee per curiam, , B52. U. ‘1020. 7

2 oa

_ , a

os “ye i ../2 . te 6 ee .

: ;

ys JOS 5 A -*

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P 4

Re ee Te ae “a , '

e “ Care - : : o—ew’ - P se i ad :

s . a ei o pore is = - . a _ * ,

’ s 7, F me . <i ios > am - ao 4 - ae

P is a

whee, mentary eae : . .. D dosz ic . "

os % ‘ . rome yee

ee, o- - oe?

ane * empowered to authorize ‘the supplemental, carriers to

"traditional igoncept, ‘of: charter” ‘ , becauise “this a

es 8 Foaeaie to various: statchopnta tk the opinion below they. aes

A infea; pp: 20-22), the Board did not and does not. claim.

_procedural, defects in the iF proceedinig were net aaa a. kee

\. wwe It should be. noted “that mt tera “charter’”1 ‘in “the Motor o “af

we Miers —ACt has’ been: held to. include such tours. Tauck —

' Tours, Inc:; Extension—Neéw- York; 50 MCC ‘873, -affirmed,. ~ .

_ Should be left, as at present, ‘with.the Board” because.

_ “this is a very difficult subject and any effort to freeze

a definition of charter service into law could well lead ~

into complications” (H. Rep. No. 1177, 87th Cong.,

\ Ist Sess.;,p. 11). For.this reason the House version

_ contained no definition .of “charter trip” and it was

'» this version which was ultimately enacted. -These re-

|. ports indicate, as the District of Columbia Circuit

e, said, that Congress intended “that the Board should

. be frée to evolve a definition” df charter service

- In accordance with the’ needs of the air transportation

"system, so°long as it preserved “the distinction be-_

, . tween group ‘and individually ticketed travel” (365

\ .F.2datp.949), °° | - nee

__\,- - In reaching the opposite conclusion, the court below

\ relied on various statements: made by members. of the ©

| \ponference committee during the debates: which fol-

_~ + Towed the Senate-House conference, * In light of the

ce fact that neither of the original Senate or House bills

would have precluded the Board from authorizing in-

-clusive tours as‘a part of charter service, we believe the

court below was in error in giving controlling weight

to the remarks of a few Senators and Congressmen.”

ae * oa

_. ™ Of the statements relied on by the Court“below only those ,

of Senators Scott.and Cotton conetusively support the propo-

_ sition that the Board was not to have authority to authorize

. inclusive tours. The other statentents are consistent with the

_ , View that there shouldbe no fixed definition of “charter trips”

~ . 80 that the Board would “be ‘in a position to. deal effectively

-. .with any efforts to abuse the meaning of charter” (App. -B,

_ infra, p. 31) and could insure that the charter concept would -

~ not ke. employed as a subterfuge for performance of individu- -__

_ ally ticketéd point-to-point transportation. (App: B, infra, .~

— ‘Pp. 32). . Se 9. ta ae 3 . .

« ~* ° F} ad \

= e .

-10

Certainly, the legislative history. does not so clearly :

compel a contrary result ‘as to justify the court below .

in abandoning the normal rule that the construction

of a statutory term by those charged’with the admin- -

istration of a statute, if reasonable, is entitled to ju-

dicial.respect even though another construction might

also be-reasonable. See Udall v. Tallman, 380 U.S. -

1, 16; National Labor Relations Board v. Coca-Cota

Bot. Co., 350 US. 264. "ea:

CONCLUSION

| For the foregoing reasons, , this petition for a writ

of certiorari should be granted.

Respectfully “sabeilined: "ies

- ERWIN N. GRISWOLD, |

Solicitor General. - . y

‘DomALp F, TURNER,

' Assistant Attorney General. a

GREGORY B. HOVENDON,

ROBERT ELIoT EASTON,

a 2 _: Attorneys.

JOSEPH B. GOLDMAN,

_ General Counsel,

O. ‘D. OZMENT,

. Deputy General Counsel,

"WARREN L. SHARFMAN,

. Associate General Counsel,

Litigation & Legislation,

Ropert L, TOOMEY,

Attorney, |

Givil Aeronautics Board. |

APPENDIX A

UNITED STATES CouRT OF APPEALS. oo --.

FOR THE SECOND CIRCUIT

~ Nos, 510-11—September Term, 1966.

. (Argued June 15,1967 ~ Decided July 20, 1967.) a

“Docket. Nos. 30947-30948 - :

PAN AMERICAN WORLD AIRWAYS, INC., TRANS WORLD -

_AIRLINES, INC., AMERICAN AIRLINES, INC.,

et '.' * ‘PETITIONERS. |

. eee

CIVIL AERONAUTICS BOARD, RESPONDENT

WORLD AIRWAYS, INC., ET AL., INTERVENORS

- Before: | Erie a |

| Hays and FEINBERG, Circuit Judges,

and MCLEAN, District Judge.*

Petition to review orders of the Civil ‘Aeronautics

Board. awarding certain. supplemental air carriers

certificates which authorize them, inter alia, to op-

erate so-called “inclusive tours” between: points in the

United States and various foreign points,

Orders set aside to the extent that they authorize

“inclusive tours.” Case remanded for further pro-

ceedings not inconsistent with this opinion. |

_” * Of'the Southern District of New York, sitting by desig-

. nation.

12.

EDWARD R. NEAHER, New York, New York (Carl S.

.Rowe, Gertrude S. Rosenthal and, Chadbourne, ©

Parke, Whiteside & Wolff, on the. brief )s ile Peti-

tioners.

WARREN LL. : SHARFMAN, Associate General Counnel,

Litigation and Legislation, Civil Aeronautics Board

(Donald F. Turner, Assistant Attorney General,

- Joseph B. Goldman, General Counsel, Civil Aero- ’.

- nauties Board, O. D. Ozment, Deputy General —

. Counsel, , Civil ‘Aeronautics Board, Robert L. —

Toomey, Attorney, Civil Aeronautics Board and

Howard EK, Shapiro, Attorney, gaan of Jas-

tice, on the brief), for Respondent.

CHARLES A. Hoss, Washington, D.C. (Glen AL ‘Wil-

kinson, Paul S: Quinn and Wilkinson, Cragun: &.

Barker, on the brief), for Intervenor American So-" :

_ etety of Travel Agents, Inc. :

CLAYTON L. BURWELL, Washington, D. C., Counsel

for Trans International Airlines, Inc., and Ray-

_ MOND J. RASENBERGER, Washington, D. C, ‘Counsel

-for Purdue Aeronautics Corp., and. World "Airways

Ine. (Stephen D. Potts, Washington, D. C., Counsel

for American Flyers Airlines, Inc., George Berko-

- witz,, New York, New York, Counsel for Capitol

; Airways, Inc., and Leonard. N. Bebchick, Washing- ©

ton, D. C., Counsel for Saturn Airways, Ine., on the

brief P ‘for the Intervenor Supplemental Air Car-

riers: ‘

Hays, Circuit Judge: ° Sain:

This is a petition to review five orders of the Civil

_. Aeronautics Board awarding certain.suppleméntal air

‘garriers, intervenors in this action, certificates which ©

(a et eth

13 -

- authorize them to operate so-called “inclusive tours” 2

between points in the Unitetl States and various for;

eigw points, P&titioners’ principal contention is that

the Board lacked the power to authorize inclusive:

‘tours. The jurisdiction of this court is invoked under

‘Section 1006 of the Federal Aviation Act of 1958, .49

‘U.S. C, § 1486. We hold that the Board lacked the.

. power to authorize “inclusive tours” and that the

_ challenged provisions should be stricken from the cer-

tificates awarded to’ the intervening carriers, .

| |

Petitioners are three air carriers holding ‘certifi-

cates of public convenience and necessity issued by the

_Civil Aeronautics Board under Section 401(d)(1) of |

the Federal Aviation Act, 49 U.S. C. § 1871 (d) (1), .

authorizing them to engage in air transportation be-

tween the United States and. various points abroad.

- Each of’ the intervenors, with the exception of the

American Society .of Travel Agents, Inc., is a supple- |

‘Mental air carrier * defined under Section 101(32)_

1 The term “inclusive tour” is, generally speaking, synony-

mous with the more familiar “al] expense” or “package” tour.

Such a- tour includes various land arrangements, for example,

hotel accomodations, meals and sightseeing, as well as “air

transportation. “Inclusive tour charters” are arrangements

by which the air carrier charters a plane to a “tour operator” _-

‘or: travel agent who sells the entire package to the public

. for a single price per person. In this opinion we adopt this ©

terminology which was. used by the Board although not “by:

the hearing examiner, ca zs

2 At earlier stages of their development these carriers were

known variously as “non-scheduled” or “large irregular’ air

‘ carriers. Their history has beeri marked by frequent con-

troversy and litigation. See, e.g., Great Lakes Airlines, Inc.

V. Civil Aeronautics Board, 294 F. 24 217, 221, n. 6 and cases

‘- there cited (D. C. Cir.), cert. denied, 366 U.S. 965 (1961).- - |

6.¢ t

14 ¥

of the ja 49 U.S. C. § 1301 (32), as “an air carrier

holding a certificate of public convenience and neces-_

sity. authorizing it to engage in supplemental air

. . transportation.” As the name implies, the services of

. supplemental air carriers are intended to supplement -

those of ‘the gcheduled carriers. See Section 101 (33).

of the Act, 49 U. S. C. § 1801(33).

In July 1962, Congress enacted Public Law 87-528,

16 Stat. 143, amending: the Federal, Aviation Act of

1958. The amendment established a éomprehensivé 7

system for the certification and regulation of supple-

-. mental air Carriers. In particular, “it empowered the

Civil Aeronautics Board to grant certificates of public

convenience and necessity. authorizing these carriers

to engage in “supplemental air transportation.” Sec-

tion 401(d) (3), 49 U. S. C. §1871(d) (3) “Sup-

plemental air transportation” was defined as “charter —

trips in<air transportation . . . to ‘supplement the ©

- scheduled —. which = route carriers such as

——

* § 1371. Certificate of public convenience and ee

(d) Issuance

. * * x

(3) In ii case of an application for a certificate to engage

in supplemental air transportation, the Board may issue a

certificate, to any applicant not holding a certifitate under

paragraph (1) or (2) of this. subsection, authorizing the

whole or any part thereof, and for such periods,.as may be -

required by the public convenience and necessity, if it finds °

that the applicant is fit, willing, and able properly to perform

the transportation covered by the application and to conform

_to the provisions of this chapter and the rules, regulations,

and requirements of the-Board hereunder. Any certificate

- issued pursuant to this paragraph shall contain such limita-

tions-as the Board shall find necessary to assure that the serv-

ice rendered pursuant thereto will be limited to supplemental

air ee. as defined in this chapter.

petitioners are authorized to provide. Section 101

(33), 49 U. S. C. § 1301(33).. ea

On March 11, 1966 the Board handed down opin-

ions and orders in’proceedings known as the Supple-

_ mental Air Service Proceeding and the Reopened

‘Transatlantic Charter Investigation».

_ | One ofthe orders, issued in the Supplemental Air

Service Proceeding, Docket No. 13795, approved the

“certification of certain supplemental air carriers in

‘ the domestic area and authorized them to operate in-

clusive tour charters. CAB. Order No. E-23350

(March 11, 1966). Other orders issued under the ©

Same name and docket number, (1) approved the cer-

tification of certain supplemental ‘carriers to op-—

erate in various overseas and foreign areas‘ and au-

* Section 101 (21) of the Act, 49 U.S.C. § 1301(21) provides: -

“Interstate air transportation,” “overseas air transporta- . |

tion,” and “foreign air transportation,” respectively, mean

_the carriage by aircraft of persons or property as a common

carrier for compensation or hire or the carriage of mail by

aircraft, in commerce between, respectively— ae

_ (a) a place in any State of the United States, or the .

District of Columbia, and a place in any other State of the _

United States, or the District of Columbia; or between

places in the same State of the United States through

the airspace over any place outside thereof ; or between

places in the same Territory or possession of the United

States, or the District of Columbia; % = ouge

(b) a place in any State of the United ‘States, or the.

District of Columbia, and any place in a Territoty: or ~~

possession of the United States; or between a place in a

Territory or possesion of the United States, and a place

in any other Térritory or possesion of the United States;

and s ee ; ; nae

*(c) a place in the Ynited States and any place outside

_ thereof; nt ey aa

_. Whether such commerce moves wholly by aircraft or partly by

\ aircraft and partly by other forms of ‘transportation.

KB,

* thorized thém to operate inclusive tours (CAB Order

No.: E-24237 (March 11, 1966) ), ‘and (2) adopted

proposed regulations defining various terms and: set-.

ting out the scope of the carriers’ inclusive tour au-

_ thorization (CAB Order No. E-24238 . (March 11,

-, ERS) ).

Two other orders ‘were issued the same day under |

ja the title Reopened Transatlantic Charter Investiga- -

= ‘tion (All-Expense Tour Phase), Docket No. 11908.

' _- Under the first of these orders, the right. to operate

inclusive tours was added to the wertificates previous-

‘ly granted to’ Capitol Airways and Saturn Airways

authorizing them to engage in supplemental air

transportation in the tranatlantic: area. CAB Order

No. E-24240 (March 11, 1966). The second order

adopted for. the authorized transatlantic supplemental es

* earriers the regulations referred to above. CAB Or- |

der No. E-24241 (March 11, 1966). abe

. Under the statute the orders concerned with fon |

-eign air transportation entered in the Reopened —

Transatlantic and Supplemental Air Service cases

- were subject to the President’s approval. See Section

801 of the et 49 U.S. C. § 1461. > Those are. the

5 “g 1461.. The President of the United States

The. issuance, denial, transfer, amendment, cancellation, °

<9, Suspension,: or revocation of, and the terms, -conditions, ~

s° limitations contained in, any certificate authorizing an ai |

carrier to engage in overseas or foreign air trarisportation, ee

_ or‘air transportation between places in the same ‘Territory or

possession, or any permit issuable to any foreign air carrier

: under section 1372 of this title, shall be.subject to the approval -

* of the President. Copies of all applications in respect of such

certificates and permits sWall be transmitted to the President.

by the Board before hearing thereon, and all decisions thereon

by the Board shall be submitted to the Presideftt ee pub-—

lication. thereof. :

: proval was required for the domestic orders entered.

lems now before us for review. No presidential ap-

in the Supplemental Air.Service Proceeding.. They

immediately became final and sybject to judicial re-

view. The.petitioners in the instant case were among

the parties who sought judicial review of the Board’s

- domestic orders in the Court of Appeals for the Dis-

- trict of Columbia Circuit, contending primarily that

the Board exceeded its statutory powers in ‘granting

supplemental. carriers inclusive tour authority. That —

court kad previously decided the “split charter” * case,

American Airlines, Inc. v. Civil Aeronautics Board, —

348 es 2d. 349° (D. C. Cir. ipeiacsad in Which it ane |

sald:

‘Caden intended, although not without: lim-

its, that the Board. should be free to evolve a defi- -

* nition. [of ‘charter trips, 49 U. S, C. §§ 1301

(38) ] in relation to such ’ variable factors as

changing needs:and — aircraft. can, oe. ee

F.2d at 354, ~

Relying in part on the niche statement atid: in ont

on its own analysis of the relevant legislative history, -

the court rejected the contention that Congress had

not empowered the Board to aifthorize inclusive tours. ~

Amergan Airlines v. Civil Aeronautics Board, 365 F.

2d 93g (D. C. Cir. 1966). '

Thereafter, on September 27, 1966, the iwilere ¢ con-.

cerning foreign air transportation: “were approved by .

the President. ‘Petitioners now seek review: of the or-

. ders in n this court contending that the — exceeded

6A split charter “ig simply the process of chartering one

half of an aircraft to each of two unrelated. charter groups.”

Amerivan Airlines V. Civil Aeronautics Board, 348 F.2d 349,

354 (D.C. was suas

‘its statutory powers in granting inclusive tour. au.

thority to supplemental air carriers. They also urge -

that the Board erred in denying them a hearing be- -

fore it granted inclusive tour authority to the supple- :

mental carriers involved in the Reopened Transatlan- -

- ‘tic Charter, Investigation and that the orders are un-

lawful under the statute since they were approved by —

only two members of the five: man Board, one member |

dissenting and two not participating. *

- In view of our decision that the grant of authority a

for inclusive tours was beyond the. Board’s power, we

find it unnecessary to reach the other aa raised

by gy ae

9 It, also argues that its power with Tie to

the orders in question was conclusively determined in

_ «the prior action involving these petitioners, American

.. Airlines v. Civil Aeronautics Board, supra, 365 F. 2d.

_ 989, and that the doctrine -of. res judicata precludes

relitigation’ of this.issue. i

ae ee ek

i the moved that the appeal’be dismissed ©

or transferred to the Court of Appeals. for. the Dis-

trict of Columbia Circuit. It. is conceded that our

court has jurisdiction of the petition and that venue —

"is proper under Section 1006 of the Act, 49 U.S. C.

§ 1486. However, the Board argues that petitioners

are guilty of forum-shopping, seeking a determination

from this court contrary to that reached by the Dis-

trict of Columbia Gircuit, thus .enhancing their op-

portunity for review: in the Supreme: Court of. the

legal issues-hére tendered. We are urged to transfer

the appeal, either under the provisions of 28 U. S.C.

‘ a

19 6 eo g

§ 2112," or in the exercise of our inherent discretion-

“ary power. eat a

Section 2112 authorizes transfer only where “pro-

cebilings have been instituted in -two or more courts

of appeals with respect to the same order,” It is clear

that. the orders before us are not the same as those —

reviewed b§the Court of Appeals for the District of

Columbia -Circitit. See Far East’ Conference v. Fed-

eral Maritime Comm’n, 337 F. 24-146, 148 n. 1 (D.C.

Cir. 1964), cert. denied, 379 U. S. 991 (1965). _

Even assuming that this court has inherent discre+

tionary power’to transfer a case to another court of 3

appeals, in the’ interests of orderly judicial adminis-

_. tration (but see Gulf Oil Corp. v. Federal Power

Comm’n, 330 F. 2d 824 (5th Cir. 1964) ); we find noth- |

ing in the decided cases that would justify us in trans-

i. § 2112, Record on review -and enforcement of agency |

- orders, )

- (a) The several courts of appeals shall have power. to

| adopt, with the -approval of .the Judicial Conference of the

United States, rules, which so far as practicable shall be uni-

form ‘in all such courts prescribing the time’ and manner of -

filing and the contents of the record in all proceedings insti-

tuted in the.courts of appeals to enjoin, set aside, suspend, .-

modify, or otherwise review or:enforce orders of administra-

tive agencies, boards, commissions, and officers, to-the extent -

that the applicable statute does not specifically prescribe such

time or manner of filing or contents of the record. . . ae.

proceedings have been instituted in two or more courts of

appeals. with respect to the same order the agency, board,

commission, or officer concerned’ shall file the record, in that’

one of such courts in which a proceeding with respect to such

order was: first instituted. The other courts in which sush pro-

ceedings are -pending shall thereupon. transfer. them to the

court of’ appeals in which the record has been filed. For-the

_ convenience of the parties in the interest of justice such court

. may’ thereafter transfer all the proceedings with respect to

such order to. any other court of appeals. -

ep 20°

. ferring-this case to the District of ‘Cilsnite Circuit. |

>. We have jurisdittion’ of the action-and,. ‘since peti-

tioners’ principal place of business is in the Second

Circuit, venue is properly laid. : Cf. Panhandle East- -

ern Pipe Line Co. v. Federal. Power Comm’n, 343

2d 905 (8th Cir. 1965) ; Panhandle Eastern Pipe Line he

Co. v.-Federal Power Comm'n, 337 F. 2d 249 (10th

Cir. 1964). ‘Reaching the merits in this case will not -

- require us to construe:a prior order of another circuit

(ef. Pacific Gas & Electric Co. v. Federal Power,

~ Comm'n, 272 F. 2d 510 (D. C. Cir. 1958) (accepting bos

. transfer from 9th-Circuit) ) and’ we are ‘not presented -

with the very unusual:circumstances thought by the

court to justify transfer in Eastern Air Lines.v. Civil

Aerqnautics Board, 354. F. 2d 507 (D..C. Cir. 1965).

‘In the absence of any showing of inconvenience to

respondent, we are not convinced that there are any

interests of sound ‘judicial administation which sug- |

gest that ‘this case should. be transferred. We can

‘perceive no. reason for treating” this case as an excep-.

tion te the principle affording ‘ litigant wjde latitude

in his selection of @ forum where Congress has given

ces him a choice; :

Tit.

“The Board’s motion to dismiss is*based on its*con-

tention that the doctrine of Chicago & S. Air Lines.n.

Waterman S. S.Co., 333 U. S, 103 (1948), precludes. _

review of the Board’s challenged orders and that, in

any event, principles of res judicata prevent petition- ,

_ers-from relitigating the issues. We hold that neither

the Waterman doctritie nor principles of res judicata

~ bar.us from deciding the merits of petitioners’ claim.

In the Waterman. case petitioner sought to invali- —

date a Board order awarding route’ authority for

overseas and foreign air transportation. In aceord-

= Tee:

“ , e*: . oe Me f>. << . 7 : a ’

Moe | oe yes

te” | |

"2 anee with’ Section 801 ‘of the statute, 49 U. S. C:.

| .§ 1461-( reprinted: in footnote 5 supra), the order had

. been submitted to the President and: had been ~-ap-

proved by him. Petitioner . did ° ‘not challenge the .

= regularity of the Board’s proceedings ‘and apparently - 5

raised no issue as to the Board’s statutory. authority ;

‘oan instead it attacked the correctness of the Board's find-

ings cand. the adequacy of the evidence supporting "

them. ~The Supreme Court held thats. —

“TOjrders of the Board as to certificates for‘

_ Overseas, or foreign air transportation are not

_|mature and are therefore not susceptible of. ju-

. .dicial réview at any time before they are final- = se

ized by Presidential approval. . After such ap-"

. proval has been given, the final: orders embody

| = Presidential discretion as to political matters be-

yond the. competence of the eourts to adjudicate.” 2 fe ,

"833 U. S. at 114."

We need not decide ‘whether, a as has been scgui eas

the Waterman. decision rests on a misinterpretation .

_ of Section 1006 of the Act, 49 U. S. C. § 1486 pro-

viding for judicial review of the Board’s orders. See

Miller, the Waterman Doctrine Revisited, 54 Geo. L.

J. 5, 6-9 (1965). We agree with the Court of. Ap-

Es peals for the District of Columbia Circuit that the

Waterman case does not -“govern a situation where

the. action of the Board, before the matter reaches the |

President,’ is beyond ‘the Board’s power to act.”

American: Airlines v. Civil Aeronautics Board, supra, -

348 F. 2d at 352. As the court there stated :

“Clearly, Waterman presupposes lawfully ex-

‘ ercised. congressional authority in the . Board’s

action, in the first instance, as an indispensable

predicate, without which there is Doting Presi-

rae .

= we

dential action can approve. ”- Ibid: ef. id. at.

354-55 (concurring opinion) ; See eae, ‘Mil-

» ler?.op. cit. supra. .

Waterman, therefore, presents no ‘obstagle to. the.

attack on the Board’s. orders i in this case.

We also reject the Board’s contention that the. doc-

sues now before us,

&.-°

* trine‘of res judicata bars f urther litigation of the is-

‘The principles to be applied were, eummiarieed by aro

- Supreme Court in: Conamissioner. v. Sunnen,,

U.S. 591 (1948) =

“[I]f the. very same facts and no others q

volved in the second case . . . the prior. judgi

will be’ conclusive as to the same legal issues

which appear, assuming no intervening doctrinal

_.. change. . But if the relevant faets in the two

“cases are separable, even though they be similar

or: identical, collateral. estoppel does not govern -

the legal. issues which recur in ‘the second case.”

- 833 U.S. at 601 (footnote omitted) ; see Consoli-

dated Edison Co. v. United States, 279 F. 2d 152,

". 154 (2d Cir. 1960), aff’d 366 U. S. 380 (1961) ;

_- ef, Federal Power Comm’n v, Amerada Petrole-

um Corp., 879 U. S. 687, 690 (1965) ; United

States v. Stone & Downer Co., 274 U. S. 225

(1927) ; Grandview Dairy Vv. Jones, 157 F. 2d 5,

9, 10 (2d Cir.), cer. denied, 329 U.S. 787_

(1946) ; see cage § Developments in the Law

—Res Judica a, 65 Harv. L. Rev. 818, 843-44

(1952).

More recently, in Yates v. United States, 354 U.S.

* 298 (1957), the Court said that the

’ “doctrine makes conclusive in subsequent pro--

ceedings only determinations of fact, and- mixed

. ee

— 28 ‘|

: Ap

\' fact arid law, that were essential to the decision. -

Commissioner v. Sunnen, 333 U. S.591, 601-602;

Tait v. Western Maryland R. Co.,289 U. S. 620

~ [1933]; The Evergreens v. Nunen, 141 F. 2d. B

927, 928-[ (2d Cir.), cert. denied, 323 U.S. 720°:

(1944)].” 354: U. S. at. 336; see Restatement,

wy Judgments § 70, commente, =.

_. and international air transportation, are different

“ from those before the District 8f Columbia Circuit in.

the domestic charter case. ‘Separate exhibits relating |

* The operative facts ‘in-this case, invoving overseas.

~ to each afea wére admitted in the procedings béfore

the Board. In their opinions the Board and examiner |

. considered each area separately, noting, for example,

the. different amounts of charter traffic involved and.

the different. consequences, in terms of pctential diver-

sion of passengers from the regularly ssheduled car- _

riers, that inclusive tours would have ineach market.

The orders here challenged became final at a different — .

time and are clearly distinguishable frm those in- ...

. volved in the domestic charter litigation = -

None of the cases cited by the Board supportsthe

- litigation of the question of law here involved; For.

example, the “order” challenged in Citie: Service Co.

v. Securities and Exchange Comm'n, 257 F. 2d‘ 926

(3d Cir. 1958) was merely a phase of theorder which

had‘ been previously upheld by this cowt in Cities

Service Co. v. Securities and Exchange Commin, 247

— “conclusion that principles of res: judicita preclude |

qg0C

_ F. 2d 646 (2d Cir. 1957), cert.denied; ‘355 U.S. 912 -

> (1958). Petitioner was ‘thus properly precluded

from relitigating the issue. Bartsch v.. Washington

Metropolitan Area Transit Comm’n, 35% F. 2d 923.

_ (4th Cir. 1966) is distinguishable on simiar grounds.

This court has said. that “the law ¢ collateral .

“estoppel is ‘growing law.’ ” United States v. Russell

ae 0 24 e | |

| Mfg. Co., 349 F. 2d 13, 18-19 (2d Cir. 1965) ; see also

.B.R. DeWitt, Ine. v. ‘Hall, 19 N. Y..2d 141, 278 N. Y.”

S. 2d 596. (1967 ).: Nevertheless judicial aversion to

forum shopping-is ‘not a sufficient ground for preclud-

ing litigation of a question of law-by extending the ~

_ «doctrine of. res judicata into areas traditionally gov-

- . erned by “the ordinary rule of stare decisis.” Com-

missioner v. Sunnen, supra, 333 U. S.-at 601; cf. Is-

land Airlines, Inc. v. Civil Aeronautics Board, 363 F. |

2d 120, 123 (9th Cir. 1966). We therefore consider

ourselves free “to make an independent examination |

. of the legal matters at issue.” Commissioner v. Sun-

“men, wer S38 U.S. at 601. oe

WV.

‘The question before’ us -is whether es ‘Board’s

"Statutory. authority to issue certifieates of public con- |

venience and necessity for “supplemental air trans-

tation,” (Section 101(33) of the.-Act;49-U.S. C.

— $1801 (38)) includes the power to authorize iriclusive —

- + ‘tour charters.® Consideration of the legislative his-

tory of the Act leads. us to the conclusion that.thé |

portation,” defined as “charter trips in air transpox- __

term “charter trips” was not intended to embrace the . -

inclusive tour charters, authorized by the Board’s or-

. ders, :

The provisions in ssasiton: i were addéd. to: the Fed: .

__-eral_ Aviation Act by Public Lay Law 87-528. As we have

8 " ithe a question peenented is not whether Congress withdrew

from the Board a pre-existing power to grant inclusive tour.;;

authority. “(Prior to 1962 the Beard had never. authorized

inclusive tour authority for the supplemenials. *” American: Air-

- . lines v, Civil Aeronautics Board, supra, 365 F. 2d at 946,

See also Hearings: Before the Aviation Subcommittee of the

, Senate Committee on Commerce, ‘87th Cong. * Ist Sess. 111

-f sehamde

><" House was a. bill proposed by’ the supplemental air

"pointed out: this amendatory legislation established a ne

comprehensive system: for the certification and ‘regu-

__, lation of.supplemental air carriers, Its principal pur-

“Poses ‘were to clarify the permissible field of opera- -

tions of the ‘supplemental - carriers,’ to assure their

economic, viability, to eliminate marginal and unsafe

_ Operators and “to maintain the regulatory: scheme of.

*the Federal Aviation Act and the protection of the -

certificated carriers such as petitioners by eliminating -

_ unregulated individually ticketed point-to-point com- _

-_ Petition from the supplementals.” American Airlines, -

‘Ine. v. Civil Aeronautics Board, supra, 365 F. 2d a

~ 944-45; see authorities cited id, atn.8 +. e

. The bill which evolved into Public Law 87-528 was

_ ‘prepared by the Board and introduced in both houses ~ a3

_ of Congress early in the 87th Congress. See S. 1969,

S7th Cong.,’ Ist. Sess._(1961); H. R. -7318 87th

Cong., Ist Sess. (1961). Also introduced in the -

carriers, H, R.'7512, 87th Cong., 1st Sess. (1961).

The definition of “supplemental air transportation”

' found in the Board’s bill would have permitted the

_.* The statute’ was in part a response to the decision’ in

' United Air. Lines v, Civil Aeronautics Board, 278 F. 2d 446.

. (D.C..-Cir.), Vacated, 364 U.S. 297 (1960) and American

Aitlines v. Civil Aeronqutics' Baard, 235 F. 2d 845 (D.C. Cir.

1956), cert. denied, 353 U.S. 905 (1957), Which the Board:

thought had placed in doubt the statutory basis for the con.

(1961) ; Hearings Before a Subcommittee of the House Com- ~

mittee on Interstate and Foreign’ Commerce, 87th ‘Cong., 1st

_ Sess. 10, 18, 29 (1961). 4 :

_%° The Board’s bill provided :

“(32) ‘Suppleméntal air carrier’ means an air carrier

holding a Certificate ef public convenience and necessity

. bd ““

COD NN, »

| ut : . . ys.

: 26 * a ye ” |

: Fy

Board to certify supplemental air carriers to perform =

a broad range of services including not only existing. ~~

' . charter services but. also the limited individually .

ticketed transportation for. the general_-public ‘that

was . then’ permitted under orary~ legislation - :

ic ‘Law. 86-661, 74 Stat.

! passed by Congress. Se

527 (1960); H.-R7318,- Section 2, 87th Cong., ist -

“Sess. (1961) ; see also Public Law 87-528, Section 7,

_—-reprinted after 49 USC § 1871. ‘The definition con-

tained in the bill proposed:.by’ ‘the supplemental car-

riers went even further.’ It would have authorized

_ “unlimited charter operations on a planeload basis for - :

‘the carriage of passengers and property .. . with the —

word ‘charter’ herein being defined as air ‘transporte- ‘

‘tion: performed pursuant to an agreement for the use’

of the entire capacity of-an aircraft...... .” H.R.

- 1512, 87th Cong., 1st’ Sess: (1961). It also would

have permitted “individually ticketed passenger .

operations . in jnterstate, overseas | and ee

air, transportation.” Ibid.

Hearings at which representatives of the Board,

, the scheduled ‘aircarriers and the supplementals all

testified were held. i in June,.1961, before the Aviation

| Subcommittee of the Senate Committee on Commerce

and. before a Subcommittee of the House Committee

- on ‘Interstate and Foreign. commerce. At the shear

‘quthorizing’ i it is eee in: supplemental 2 air acetal

tion. .

Rees ‘Supplemental . air transportation’ means air

i ‘transportation rendered pursuant to a certificate of public

convenience and necessity which contains such limita-. \

tions as to frequency of service, size or type of equip-

ment, or otherwise, as will assure that the service so

authorized remains supplemiental to the service authorized

'. - by certificates of public convenience and necessity issued

5 ae to sections 401 1(d) 1) 4 and (2) of this Act.” "

re : ¢ 5 .

F / is . F ‘

re : ee fies

a 4 sa. .

* ‘

ings the Board made clear its opposition to any ar-~

_ Fangement that would permit travel agents to solicit

the general: blic in forming charter groups. See, .

e.g., Senate Hearings, supra: n, 9, at 29. ©

Following thé hearings each committee reported out 7

its own bill.” Under the Senate Bill the Board was

expressly empowered to ‘authorize supplemental car-

riers’to operate inclusive tours." - With the express

“exception, of the “all expense-paid: tour,” the Senate - a

__ bill was intended: to preverit the Board from authoriz-~

ing “individually ticketed service whether. offered by

an air carfier directly or by a travel agent.” §S, Rep.

No. 688, 87th .Cong., Ist. Sess, 13-14 (1961). How-

ever it did not, as the Board contends, require that .-

supplementals be certificated to operate inclusive tours.

Its language was merely 'perinissive, authorizing the-

- Board to grant such authority when required by the

. public need and consistent with the capability and in-

“terests ofthe particular carrier. “(T]he bill does not-

require the Board to grant every supplemental ‘car-

rier any particular charter authority.” See §. Rep. - 3

No, 688, 87th Cong., 1st Sess. 12-13 (194@]). kgs

~~. The bill passed. the Senate on August 28, #961. tc

+,°

" The bill defined “charter service” to mean:

“air transportation performed by an air carrier holding

a certificate of public convenience and necessity where

the entire capacity of oné or more aircraft has been |

engaged for the movement of persons and their: baggage

or- for the movement of pronerty ona time, mileage, or

trip basis, but shall not include transportation services

offered by an air carrier to individual members of the

general public or performed by an air carrier under an

arrangement with any person who provides or offers to

provide transportation services to: individual members

of the general public, other than.as 4 member of a group e:

.on an ail-expense-paid tour.”

‘6

e ‘ 28 |

Ta oe : | Kf As . - | a ba

The bill reported out by the House Committee, like -

the Senate bill, worked substantial changes in the leg- -

~ islation drafted by the B . However, unlike: the

:, Senate bill, the House version\did not define the term

_ charter although that term is found -in the bill’s defi-.

nition of supplemental“ air transportat.on.” The »

definition of “suppleniental ‘air transportation” in- *

cluded. in the House: bill was ultimately enacted by.

Congress as. part of Public ‘Law. 87-528. See 49 ;

U.S, C. § 1301(33)- |

Of particular Seer in deciding what was’ ‘ies :

intended scope of the Board’s. powers under this bill

which* was -passed’ by the House on September 18,

1961, is the statement of the House Committee that _

> its bill “would give the Board some, but not all, of the

~ . atithority requested by it. “The committee substitute , .

would establish guidelines for the-Board to follow in. |

exercising its authority to certificate supplemental —

carriers, especially, i inthe field of individually ticket-

Fe ed_operatigns. ” H.R. Rep.. -No. 1177, 87th Cong., Ist.

. Sess. 6-7 (1961).

- In‘deciding whether grant of includivé tour iiibion

ity violates the limitations of the statute it must be

remembered “that a prime concern of Congress was

to maintain the integrity of the charter concept—to

preserve the distinction between group and individ-.

‘ually ticketed travel.” American Airlines v. Civil .

Aeronautics Board, supra, 348 F.2d at 354. See Con-

ference Report, H. R. Rep. ‘No. 1950, 87th Cong., 2d

“Sess, 14 (1RG7)— ©

[1 (33) ‘enplemiatal air " transportation’ means charter

trips in air transportation, other than the transportation of

mail by aircraft, | rendered pursuant to a certificate of public

convenience and necessity issued pursuant to Section 401 (d)

(3) of. this Act to-supplement the scheduled service author-

ized by certificates of public convénience and necessity issued

pursuant to sections 401(d) (1) and (2) of this Act.”

e ,

r- +

}

ich -we now turn: | |

substitute

Law 87-528, -

- ence report that one. pu m )

~ adopting the provisions of the House ‘bill was to pro-

of Public Law i cs ebcor a two year period, now expired,

‘during which the

Reprinted following 49 U.8.C. § 1871; See Conference Report,

HL R. Rep. No. 1950, 87th Cong., 2d Sess. 7, 14- (1962). The

Second authorizes the Board to issue a “special operating ©

authorization” for a period of 30 days subjeét to renewal for ..

- a maximum of 60 additional days. Such authorization, enabling

«Rae conflicting House and Senate bills were submit.

ted to wConference Committee which reported: out a:

Nl that was ultimately. enacted as Public:

rd could authorize such services in order | se

“to permit an-orderly transition to an all-charter operation.” - -

Rep. No. 1950, 87th Cong., 2d Sess. 14 (1962).

'_» Even more direct and more persuasive evidence is

‘available concerning the intention of. the, conferees in

striking from the bill the provision that would have

permitted. all expense package tours. Several of the ~

bill’s Hoor managers addressed themselves to this sub-

ject during the debate on the bill in their ‘respective

“houses. They were unanimous in declaring that the

“all-expense tours that were provided for ‘in:the Sen- -

-ate definition were not aceepted by the House, and the

~ Senate receded‘ and concurred in [the House’s] posi-

tion on that.” 108 Cong: Rec. 12822 (June 29,

‘ 1962). (remarks of Rep. Williams) ; see remarks of

Rep. Walter, ibid. Their statements. as to this limi-

tation on the Board’s authority went unchallenged.

For example, Senator Scott stated:

“The Senate bill preposed to nest the estab-

lised concept of charter. by permittin -charters: to.

‘a group on an_all-expense-paid tour.’ -Such a ~

group. could have been assembled from the gen-

eral public .

The saeninitioe, of conference wisaly eliminated —

the Senate provision. The bill thus, in effect,

confirms the — law as to-4 charter | in air.

a « supplemental carrier to engage in individually ticketed

operations, could be issued. only on a showing that “the

capacity for air transportgtion being offered by the holder

of a certificate of public convenience and necessity between

particular points in the United States is, or will be, tempor-

| arily insufficient to meet ‘the r uirements of the public or

_ the postal service,” or that there is‘-a temporary require-

ment for such service between two points not’ regularly ©

‘served by a scheduled carrier. Section- 417 of r the Act, 49

rrA oOo eC 4#Aane, ee ee ee eee eS

awl,

— US.C. § 1387: “see: Conference Report, . R. Rep. No. 1950,

87th Cong., 2d Sess. 4 (1962) ; H. R. Rep. ‘No. 1177, 87th .

"Cong., Ast Sess, 2, 12-13, (1961).

eae

- transportation. There should be no question

about that, The.Congress has considered, and.

has rejected, a proposal to change the established

meaning of charter so as to have permitted. travel

agent charters for all-expense tours, Such char-

ters have no place in air transportation.” - 108 .

. Cong, Rec, 12284-85- (June 29, 1962). _ ge

Senator Thurmond stated: =~ a

“Tam advised that the CAB Bureau of.Eco- | -

_ nomics has advocated that a’ so-called all-expense —

_ tour concept be grafted onto the existing charter

definition. This would be intolerable, and has

been. expressly rejected by the conferees, The

Senate receded from its charter definition which

. included this all-expense tour: provision.” 108

- Cong. Ree. 12285 (June 29, 1962). 3

‘In the Housé, Representative ‘Harris, Chairman of _

_ the House Interstate Commerce Commission, made

clear that while “the Senate proposed ‘to change the -

well established meaning of ‘charter,’ ” the House ob-*

jected to the change, ~ i . ;

“A charter in the aviation field has, always

/ Meant the engagement: of the entire capacity of .

the aircraft for a particular purpose by a single -

engaging pafty. Travel ages, being agents for.

_. transportation services, rather. than carriers

' themselves, have never been allowed: to engage °*

airplanes in their own name for their own ac-

* count.. Nor should they be allowed to. That is

why - the ‘House objected to the proposal of the

_ _ Senate including the ‘aU-exvenga toy tula~ Tanguage.

- . As explained ’in the House report, we felt the

’ Board should be in a position to deal effectively

with any ‘efforts to abuse the meaning of char-.

ter.” 108 Cong. Rec. 12322: (June 29, 1962).

"5 “a @. \.. — = :

| 32 ‘ i

_ He went on. to_read a statement, identical to one

- submitted later by Representative Collier:

| “The bill, as reported by the coriference com-

* “mittee, contains no definition of charter. The

_lawis well established that, in air transportation, °

charter means essentially the lease of the entire:

capacity of an aircraft for a period of time or —

a particular trip, for the transportation of cargo

or persons and baggage, on: a basis which does .

not include solicitation of the general public, or -

‘ . amy device where individually ticketed services

would be offered or performed under guise of

charter. The basic concept being thus clear, it.

is important that the Civil Aeronautics Board,

by regulation and other appropriate measures,

_ make sure that charter serves its planelead serv- |, ~

_ ice concept and is not employed as a subterfuge —

to perform individually ticketed services. Mani-

festly, the nature of such subterfuge may change -

from time to time, and the regulatory agency -

needs some flexibility to modify its regulations to

guard against any new subterfuges that may

emerge. For this reason, the House committee

objected to any attempt to freeze into the act a

definition of charter service which would prevent

the Board from dealing effectively with abuses.

‘Thus the bill, as passed by the House, contained .

° no definition of charter. .

' The Senate bill, on the other hand, contained

--a definition of charter service. This was neces- -

sary, in large part, because the Senate proposed.

andifiw tha astohlichod anmnan Pe SR FG

“Orde er to permit carriage, as chartér of ‘a group

‘on an all-expense paid tour.’ The Senate con-

‘ferees having receded from insistence on the all-

expense-paid tour exception, it followed that the ..

remainder of the Senate desinition was ‘superflu-

ous since it merely stated established law and

policy.” 108 Cong. Ree. -12322 (June 29, 1962) ;.

see id. at 12324 (remarks of Rep. Collier).

‘ Senator Cotton said:

_ ° “The conferees agreed to drop the language in

the Senate bill which defined charter service, and

. permitted the sale of tickets on charter flights to -

individual members of the general public who

were on all-expense-paid tours. I am wholly in

accord with the ‘action ‘in eliminating :the all-ex-.

pense tour provision and thus refusing to confer

this power on the Board.” 108 Cong. Rec. 12284

(Jtne 29, 1962)..° . i. Se

Thése statements are specific in rejecting the notion

that the term charter can be construed to include all

expense tours. We therefore reject the argument that.

the legislators’ concern was with abuses growing out

of the Board’s prior practice of allowing supplemen-

tal carriers to perform limited scheduled individual- |

ly ticketed travel.. Regardless of the extent to which _

there’ may have been legislative concern based on this:

prior experience, indeed whether or not the expression

of concern was misguided or wholly unwarranted, it

was in fact manifested in a congressional declaration

binding on both the Board and this court, that was

clearly intended to forbid the Board to authorize in-

clusive tours. | |

The Board also argues that many of the statements

made on the floor of Congress were directed against

onlit ahawtase~ wen JM asi Guar Clie DUAYG Ss power to

authorize such charters has nevertheless been upheld.

See American Airlines v. Civil Aeronautics Board, . -

supra, 348 F.2d 349. While we have no occasion to

pass on the question of the propriety of split charters

we note that Congressional concern with their poten-

tial impact is much less clear from the Committee re-

ports and hearings than is the intention to prohibit

individually ticketed dperations in whatever guise, by

supplemental carriers. Moreover, the legislative his-

_ tory involved in the inclusive tour question, with one

house passing legislation that would have specifically

empowered the Board to cect package tours only

to have the provision deleted by the Conference Com-.

mittee with the floor managers unanimous in their —

explanations of the change, is not repeated in the case -

of split charters. See; e.g., 108 Cong. Rec. —*

(June 29, 1962) (remarks of Sen. Monroney).

_ the contrary, the provision deleted from the Teo

bill would in fact have forbidden split charters.: ‘See

Section 101(13) of the bill, S. Rep. No. 688, 87th

- -Cong.,; 1st ens: 13, 22 (1961) . (reprinted n. 11

supra).

. But the hound urges ‘that i in construing the statute ,

_ we should not give any weight to statements_made akon

_ power to authorize. inclusive tours, the Board, finding

- the statute and committee reports’ ‘clear, detlared that .. -

there was “no sound reason for attempting | to. analyze

the statements made at the time of the passage of the _

bill by certain. of its floor managers.” Board Order |

E-23350 (March 11, 1966).

‘We do not agree.: That Congress adopted - ‘the.

~ House version of the bill, specifically rejecting the.

Senate’s conflicting version, is of course an extremely.

| significant factor in determining what was Congress’

intention with. respect. to the matters in issue. Ser,

e.g., First Nat’l Bank v. Walker Bank, 385 U. S. 252,

258 (1966). It would be foolish, indeed, to disregard

the one source of legislative history that explains the

reasons for the conference committee’s action.

‘

. 85

Nor ‘are we here concerned with general remarks

- . made in debate which contradict either the face of the

_- Statute or statements in committee reports. On the

contrary, we have before us on the one hand a statute ;

that is-not clear on its face and committee reports.

' that seem to support petitioners’ view although they

_-can-perhaps be deemed ambiguous. On. the other

hand we have statements made by the floor managers

‘that fully explain the changes in the bill. These floor —

managers were members of the legislative committees

that held extensive hearings and were responsible for

formulating ‘the legislation. De ,

Only recently, in circumstances similar to those in ‘

the instant case, a unanimous Supreme Court relied

on’ statements made in debate, not only by a sponsor —

of legislation and by.a. member of the Conference

Committee but also by. other members of Congress,

and regarded such statements _as. authoritative: indi-

& '__cators of congressional intent. First, Nat’t Bank v.

| Walker Bahk, supra; 385 U.S. at 258-60; see also

“_ Brown Shoe Co. v. United States, 370 U. S. 294,.311-

23 (1962); -. oe ae

The authorities cited by the Board do not support —

the view that we may disregard or give little or no

weight to statements made on.the floor of Congress

under the circumstances of this case. In United *

States v. International United. “Automobile Workers

(UAW-CIO), 352 U. S. 567 (1957) although the ©

* Court did say that debate is not entitled to the same

** For example, Representative Harris‘ was the Chairman -

of the House Committee on Interstate and Foreign Commerce, _

Representative Williams was Chairman of the Subcommittee:

on Transportation and Aeronautics of which Representative _

_ Collier was a member, Senator Monroney was chairman of the -

Subcommittee on Aviation, Senators Thurmond, Cotton, Mor:

ton and Scott were on that committee, a ae

weight “as carefully considered committee ‘reports,”

it still examined the debate, finding that it confirmed ~

‘what was contained in the reports. 352 U. S. at 586-

> 87 & n. 1. . Duplex Printing Presg:Co. v. Deering, .

254 U.S. 448, 474-75 (1921) exhibits a similar tréat-

‘ment of Congressiongl debate. Nicholas v. Denver & |

Rio Grande W. R. Ff, 195 F. 2d 428, 431-32 (10th:

Cir. 1952), whatever dictum the opinion may contain

to the’ contrary, fully supports nani position that-we

take here. ~ ; a

If, as we hold , Congress-did” seh give the Board

- . péwer to-authorize inclusive tours, it is immaterial :

‘whether, as the Board contends, the proposed regula-’

tions will be effective in curbing abuses of the inclu- |

sive tour certificates. _

Since. the Motor Carrier Act is quite different from

_ the Federal Aviation Act in language, statutory

~ structure and legislative history; the fact that all ex-

pense tours have been approved under the Motor Car-

rier Act (see National Bus Traffic Ass’n v. United

States, 143: F. Supp. 689 (D. N: J. 1956), aff’d per.

curiam, 352 U. S. 1020 (1957), is not at all persua-

sive in construing Public Law 87-528, even if we as-

sume that the tours there authorized are similar to

those approved, by the Board in this case, an assump-

tion that petitioners vigorously contest,

We hold that the certificates before us awarding i in-

elusive tour authority to supplemental air carriers in |

foreign and overseas transportation are invalid.

Since our conclusion that the Board acted in excess

of its statutory powers is dispositive of the case, we

~ need not pass on the other points raised by petition-

ers.

- The orders are ‘set aside and the case reinanded to

the Board for further proceedings not - ineonsistent

with this opinion, | ee

. 3 | i = 37 7

7 | APPENDIX B

hs Grler No, B-24240 '

UNJTED STATES OF AMERICA

' CIVIL AERONAUTICS BOARD

* WASHINGTON, D: C..

, Adopted by the Civil Aeronautics Board

at its office'in Washington, D.C...

on the 11th day of March, 1966

Docket 11908 et al,

REOPENED TRANSATLANTIC CHARTER INVESTIGATION

_ (ALL EXPENSE Tour PHasE)

ORDER mee

_ A full public hearing having’ been held in the. above-

entitled proceeding and the Board, upon considera-

tion of the record, having issued its opinion contain-

ing its .findings, conclusions, and_ decision. which is

attached hereto. and made a part hereof; --

IT Is ORDERED;

. ~. That amended certificates of public convenience

and necessity for transatlantic supplemental air trans- -

portation in the forms attached hereto be issued to

Capitol Airways; Inc., and Saturn Airways, Ine. ©

_ 2. That said certificates shall be signed on behalf

of the Board by its Secretary, shall have affixed there- 7

to the seal of the Board, and, subject to extension of _—&

their effective dates in accordance with the provisions»

of said certificates, shall be effective on N ovember 26,

1966. . ‘ ;

8. That inclusive tour charter authority. be award-

7 ed to any supplemental air carrier hereafter certifi-

. ‘eated in the Reopened Transatlantic Charter Investi-

gation, Docket 11908 et.al ., Such authority to termi- ©

nate on April 18, 1969.. ,

4. That this order shall be effective upon’i* date

By. the Civil Acronautiés Board:

Praeger er HAROLD R. SANDERSON

Free aD ae Secretary -.

(SEAL).

THE ‘WHITE HOUSE 7 fos

ST:

LyNDoN B, JOHNSON ea tela AS

_ September 27, 1966 3

—_—

of its approval by ‘the President of the United States. aoe

: =

- NECES@##ry FoR SUPPLEMENTAL AIR. TRANSPORTATIO

Issued pursuant. to

ig Ses _ Order’ No. E-24240 -

UNITED STATES OF AMERICA

CIVIL AERONAUTICS BOARD

Laks WASHINGTON, D.C. | :

. bide

CERTIFICATE OF PUBLIC CONVENIENCE AND

. CaPrro, AIRWAys, INC’.

is hereby authorized, subject to the provisions herein-.

after set forth, the provisions of Title IV of the Fed-

-eral Aviation Act of 1958, and the orders, rules, and

regulations issued thereunder, to engage in supple--

mental air -transportation (including: “in¢lusive tour

-charter authority) with respect to persons and their ;

personal. baggage, as*follows: ee:

Between points in the 48 contiguous States of

~ the United States of America, on 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.

The ‘service herein authorized is Subject to the =

terms, conditions, and limitations prescribed by the

~~ Board’s Regulations for transatlantic supplemental

air transportation. - : a

The holder shall not (a) advertise its serviées or’.

hold itself out to the public as an air carrier author-

ized to engage in air transportation unless it includes

the words “supplemental air carrier” in’ such adver-

tising; or (b) conduct business in any name other.

. than that set forth in’ this certificate, except as ex-

pressly authorized by the Board. | ga

Control of the holder shall not, without prior ap-

_ plication to and approval by the Board, be transferred,

’ -

Rene PT Re Om DY

directly or ‘indirectly, ‘by’ assignment, transfer of..vot-

ing stock, or otherwise, to ‘any person. who controlled,

‘or participated in control of, as a partner, offieer, or :

director, any air-‘carrier theretofore found by the

Board. to have committed knowing and ‘willful viola-

tions of the Civil Aeronautics Act of 1938, as amend-

. ed, the Federal Aviation Act of 1958, or any order,

rule, or regulation issued: pursuant to said Acts dur-

ing the period such person controlled or participated

in the control of said air carrier. Any such applica-° —

tion:may. be approved by the Board with or without |

‘hearing. No such application shall be denied unless’ -

the Board: finds, after notice to the holder and the.

a parties, to the proposed transfer, and after: opportu-

nity for hearing, that; in the event the proposed trans-.

fer is consummated, the holder will thereby be ren-*

dered unfit, unwilling, or. unable to:-cdnform to. the.

. provisions of the Federal Aviation Act of 1958, and

. the rules, regulations, and requirements of .the Board.

thereunder.” For the purposes of this paragraph, a

__ transfer of 20 per cent or more of the voting. stock

~ of the holder shall be deemed to constitute prima: facie:

: evidence of a:transfer of control so as to require the

filing of an appropriate: application with the Board.

Notwithstanding. any other provisions of this cer-

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

ations in accordance with all treaties and. agreements

Dy,

between the United States and other countries, and -

_ the exercise of the privileges granted by ‘this certifi- -

cate shall. be subject to compliance with such treaties

“and agreements and to any orders of the Board issued

: pursuant, to, or for the purpose of requiring, compli-

ance with, such treaties and agreements. _—

' The exercise of the privileges granted: by this cer-

—— shall - subject to auch other Pi arr na es 3 :

ys, :

: conditions, and limitations required by the, public in- |

. ‘terest as may from time to time be prescribed by the . ”

Board. - |

| Pec, va os ‘ ¢ .

’ . This certificate shall be effective on November 26,

1966, and shall terminate on April 18, 1969.: Provided,

however, That prior to the date on which this certifi-

cate would: otherwise: become effective . the. Board, .

. \ either on its ow initiative ‘or ‘upon the timely filing

(sea)

of a petition or. petitions Seeking -reconsideraton of

the _Board’s order of March 11, 1966 (Order E-

24240), insofar as such order authorizes the-issuance

_ of this certificate, may by order or orders extend such

effective date from.time to time. a cay eee

IN WITNEss WHEREOF, the Civil Aeronautics Board

“retary of the Board, and the seal of the Board to be.

affixed hereto, on the 11th day of March, 1966...

HAROLD R. SANDERSON

~ | /Seeretary:°

Issuance of this certificate to the holder approved ~

by the President of the United States on September. . |

_ 87, 1966 in Order E-24240,

[The certificate issued to Saturn: Airways, Inc,

-which is identica] to the above has been omittéd] /

e. .

\.. as

Onder No. B-24241

UNITED STATES OF AMERICA

-CIVIL AERONAUTICS BOARD

| WASHINGTON, ae

- Adopted by the Civil Aeronautics Board

at its office in Washington, D. C.

on the 11th day of March, 1966 -

Docket 11908 et al.

REOPENED TRANSATLANTIC CHARTER —_—— «

_ (ALL-EXPENSE TOUR PHASE)

_ ORDER

A full public fearing having been HEM the above- :

entitled proceeding and the

. tion of the record, yer issued its opinion which is

attached hereto and made a part —

It Is ORDERED:

1: That there be and hendiy are > adopted and issued

oard upon, “eonsidera- .

concurrently herewith amendments to Parts 295 and

’’. 378 of the Board’s Regulations, which are attached

hereto and made a part hereof.’

2. That said oe shall be effective on N O-

vember 26, 1966.

By. the Civil’ Aeronautics Board:

ies, is HAROLD R. SANDERSON"

ep wt 0. 6Seeretary — |

(SEAL) arate 4 ae

-1 For adeidabite ativé convenience we have embined into a -

single amendment to Part 378 the revisions required by the

_ decision in the instant proceeding as Well as the decision in

thé foreign phase of the Supplemental. Air Service Proceed-

ing, Doeket 13795 et al.

. ae

” | cas S Regulation No: ER-475 a

UNITED STATES OF AMERICA -

“CIVIL AERONAUTICS BOARD

WASHINGTON, D. C.

conomic Regulations Amendment No. 7.to Part 295.

Seer, Effective: November 26,1966 “+ -

ee te -» Adopted: March 11, 1966 7

PART 295—TRANSATLANTIC SUPPLEMENTAL AIR ”

TRANSPORTATION: REDEFINITION OF. “CHARTER

FLIGHT” TO INCLUDE INCLUSIVE TOUR CHARTERS

S 3

‘= ‘The Board has determined in the Reopened Trans- ~

atlantic Charter Investigation © (All-expense Tour

Phase),. Docket 11908, et al., to grant inclusive tour -

charter’. authority te*Capitol Airways, Inc., Saturn

Airways, Inc., and any supplemental air carrier sub-

Sequently certificated in the transatlantic market in

that proceeding.’ Such authority involves the charter

of supplemental carrier aireraft to-tour operators who

in turn sell the inclusive tours to individual members

of the general public.” It therefore becomes necessary

. to contemporaneously expand the definition of “char-

“~~ ter flight,” as contained in Part 295 of the Economic

a Regulations, to include inclusive tour charters? In-

1 Order E-24240, eer ae ew,

i 2 Part 378 of the Board’s Special “Regulations, which con-

tains the regulatory a inclusive tour op-

erations,’ is being amended’ concurrently herewith to cover

__ transatlantic inclusive tours. : a. gi

- 3In view-of the extensive application and reporting require- .

ments’ imposed. by Part 378, the operation of inclusive’tour

charters is being exempted from the condition that a “State.

ment of Supporting Information” -be executed prior to any |

supplemental air transportation performed pursuant to Part

+ 2052. * ay | Sesaas

se ete ak aa ae

dais Keni S . .

pene? ‘Ltt Shp Dhoiitiae

wai ' “

-asmuch as the question of whether such charters. .

should be authorized in the transatlantic ‘market has

been fully litigated in Docket 11908, et al:; we believe . -

that further notice. and public procédure on this

- amendment are unnecessary and not in the public

- interest.

Accordingly, the - ‘Board hereby heidi. Part 295 ee

of its Economic Regulations effective November 26,

: 1966, as follows:

. requires—

1. By amending § 295. 2(b) to read as s follows:

§ 295. 2 Definitions. .

As used in this* part, unless the context otherwise

+ - * . * : ;

(b) “Charter flight” means air transportation per-

formed by a direct air carrier on a time, mileage or

trip basis where (1) the entire capacity. of one or

more airéraft has been engaged for the movement of

persons and their personal baggage—

(i). By a person for his own use (including a direct

air-carrier when such aircraft is engaged solely for .

the transportation of company personnel or commer-

. @ial passenger traffic in cases of emergency) ; .

(ii) By a,representative (or representatives acting

jointly) of a group for the use of such group (pro-

vided no such representative is professionally engaged

in the formation ‘of groups for the transportation or

in the solicitation or sale of nite ines services) ; ts

( iii) By a tour mace as defined by Part.378 of.

this chapter; or (2) one-half the capacity of an air-

craft has been engaged by a person for his own use

or by a representative or representatives of a group

for the use of such — and the remaining half of

the capacity of such aircraft has been engaged by

another person for his own use or by a, representative -

' or representatives of a second group (provided no

such representative is professionally engaged in the

formation of: groups-for the transportation or in the

solicitation or sale of trahsportation services).

With the consent-of the charterer, the direct air car-

rier may utilize any unused space for the transporta-

tion of the carrier’s own personnel and property:

2. By revising § 295.5 (a)-to read ag follows:

§ 295.5. Records and record retention. °

(a) Prior to performing any supplemental’ air .

transportation pursuant to this part, the carrier shall

execute, and require the travel agent (if any) and

charterer. to execute, the form “Statement of Support- -

ing Information” attached hereto and made a part

hereof: Provided, That this requirement shall not ap- |

ply to inclusive tour charters.

(Section 204(a) of the Federal Aviation Act of 1958;

‘. 72 Stat. 743; 49 U.S.C. 1324. Interpret or apply sec-

tions 401(d) (3), 401(n) ; 76 Stat. 143, 144; 49 U.S.C.

MN SE ae :

By the Civil Aeronauti¢s Board:

HAROLD R. SANDERSON -

Sécretary

(SEAL)

NoTE: This is amendment No. 7 to.Part 295 effective |

April 30, 1964. an a,

_ Regulation No. SPR-16 _

UNITED STATES OF AMERICA

- CIVIL AERONAUTICS BOARD

WASHINGTON, D. C.. phe

“Special Reguiatione, Amendment No. 2 to Part 378

Effective: November 26, —

Adopted: March 11, 1966.

_— 378—INCLUSIVE TOURS By SUPPLEMENTAL

AIR CARRIERS AND TOUR OPERATORS *

EXPANSION OF COVERAGE TO OVERSEAS AND

FOREIGN AIR TRANSPORTATION . |

Part 378 of the Board’s Special Regulations (14

CFR Part 378), which contains the regulatory provi- _

sions governing the operation of inclusive tour char- —

~ ters, was originally issued‘ in conjunction with-the

Board’s decision in-the domestic phase of the Supple-

mental Air Service Proceeding, 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 inclu-

sive tours in interstate air. transportation. e

- To correspond with authorizations being awarded —

as a result of the-Board’s final decisions in the foreign

. and overseas phase of the Supplemental case * and in

-the Reopened Transatlantic Charter Investigation

( All-expense Tour Phase ), Docket 11908, et al:,* which

“crane Regulation . No. SPR-14, adopted March 11, 1966, and

published in 31 F.R. 4779.

- 2.Order E-23350. -. , ‘

‘ §Order E-24237.. His eae em

“4 Order E-24240, |

are being issued coricurrently herewith, we are amend-

ing 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

| _- to the rule making were heretofore given the oppor-

are unnecessary and not in the public interest.

- its Special Regulations effective November 26, 1966,

- _ as follows: |

1. By revising § 378.1 to read as follows:

—-§ 378.1 Applicability. ' 1 ae

This part establishes the terms and conditions gov-

erning the furnishing of inclusive tours in interstate,

overseas. and foreign air transportation by supple-

_ also relieves tour operators from various provisiens of

the Act and the Board’s regulations for the purpose

bers of the general public utilizing aircraft chartered

this regulation shall not be construed as limiting any

. other authority to engage in air transportation issued

‘by the Board. Nothing contained in this part shall

* Part 378 as originally proposed pertained.to interstate and

_ SPDR-6, January 5, 1965, 80 F.R. 281). Moreover, the pro-

-posed regulation was arnended to cover foreign air transporta-

tion (Supplemental Notice of -Proposed Rule Making, SPDR-

6B, October 11, 1965, 30 F.R. 18077). Comments concerning

both of these Notices’ were received, as set forth in SPR-14,

supra, and have been considered by the Board. _

mental air carriers and tour operators...This_ part.

- the above-mentioned proceedings, and because parties 7

tunity to comment on.this matter *, further notice and _

public procedure on the amendments ‘involved herein’

Accordingly, the Board hereby amends Part 378 of |

a> ¢

of enabling them to provide inclusive tours to mem- -

from supplemental air carriers. The provisions of —

overseas air transportation (Notice of Proposed Rule Making ~

be construed as repealing or amending any provision

' of any of the Board’s regulations, unless the coritext .

_ SO requires.

oe)

3° By revising § 378. RC) to" read as follows:

~ $378. 2 _ Definitions.

As used in this part, unless the context otherwise

requires—

(a) “Inclusive tour shartar” means the charter’ of

an entire aircraft by a tour operator for the carriage

by a supplemental air carrier of persons traveling in

air transportation. on inclusive tours. 6 |

(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.S.C. 1324;. |

72 Stat. 754 as amended by 76 Stat. 143; 49 U.S.C.

1371; 72 Stat. 768; 49 U.S. C. 1379; 7 “72 Stat. 770; -

49 U. S.C. 1384) and. section 7 of Public Law 87-528

(76 Stat. 146; 49 U.S.C. 1371).) , |

‘ By the Civil Aeronautics Board:

HAROLD R. SANDERSON _

Secretary

(SEAL) |

Note: This is : iain No. 2 to Part 378 effec-

tive ay 13, 1966.

: Aeronautics Corp., Saturn Airways, Inc., Southern

ee Order No. E-24237

UNITED STATES OF AMERICA

CIVIL AERONAUTICS BOARD |

. WASHINGTON, D.C. -

Adopted by the Civil Aeronautics Board

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

_ on the 11th day of March, 1966

Docket 13794 et al. -

SUPPLEMENTAL AIR SERVICE PROCEEDING

oe ORDER | |

A full public hearing having been-held in the above-

entitled proceeding ‘and the Board, upon considera-

tion of the reeord, having issued its opinion contain-

ing its findings, conclusions, and decision;

It Is ORDERED: ,

1. That certificates of public convenience and ne-

cessity for supplemental air transportation in the

forms attached hereto be issued to American Flyers .

Airline Corp., Capitol Airways, Inec., Johnson Flying

Service, Ine, Modern Air Transport, Inc., Purdue.

Air Transport, Inc., Trans International Airlines,

Inc., World: Airways, Ine., and Zantop Air Transport, |

“ety , ii ‘ | .

2. That said certificates shall be signed on behalf’

_ of the Board by its Secretary, shall have affixed there-. ~

to the seal of the Board, and, subject to extension of.

their effective dates in accordance with the provisions"

of said certificates, shall be effective on November 26," -.

Se Red es | aes

3. That all applications senniiiliniod herein for

supplemental. certificates insofar as such applications ,

seek authority for overseas and/or foreign air trans-

“4 portation and/or air transportation between places: in

the same territory\or possession heretofore filed by’ -

Conner Air Lines, Inc:, Holiday Airways, Inc., Stew- .

. art Air Service, and United States Overseas Airlines,

Inc., be and they hereby are denied. - coat

-.° 4, That, except to the extent otherwise indicated,

all appliéatidns con@lidated herein for supplemental

certificates, insofar. as such applications_seek author-

ity for overseas and/or foreign air transportation

and/or air transportation between places in the same —

territory or possession, heretofore filed by the car-

riers listed in paragraph 1 of this order be and they.

hereby are denied.

5. That this order shall be effective upon the date 7

of its approval by the President of the United States. |

By the Civil Aeronautics Board:

HaRow R. SANDERSON

oo: Secretary

(SEAL) | < 2

THE WHITE House

APPROVED: ees | aA

_ LYNDON B. JoHNSON

September 27, 1966

Issued seisiamaie to

Order No. E-24237

UNITED STATES OF AMERICA.

‘CIVIL AERONAUTICS BOARD

WASHINGTON, D. Ce

CERTIFICATE OF PUBLIC CONVENYENCE AND

N ECESSITY FOR SUPPLEMENTAL AIR TRANSPORTATION

AMERICAN FLYERS AIRLINE CORP.

a haveby authorized, subject to the provisions herein-

_, after set forth, the provisions of Title IV of the Fed-

- eral Aviation Act of 1958, and the orders, rules, and

regulations issued thereunder, to engage in supple-.

mental air transportation (including inclusive tour

charter authority) with respect to yneine and prop-

erty, as follows: »

, 1. Between-any point in any State of the United

States or the District’ of Columbia; on the one

hand, and ©

| (2). points i in Canada and Mexico, on the other -

hand;

(b). points in Jamaica, the Bahama Islands,.

Bermuda, Haiti, the Dominican Republic,

Puerto Rico, the Virgin Islands, Trinidad, —

Aruba, the Leeward and Windward -Is- —

° * lands, and any other place located in the

att Gulf of Mexico or the Caribbean: Sea, on

_ the other hand. —

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

‘in air transportation between places in the same

\ territory or possession be: the United States,

. 62

-pursuaht to. contracts swith the Department of

Defense.

The service herein authorized is subject pet the

terms, conditions, and limitations prescribed by the —

Board’s Regulations for supplemental air transporta-_

tion and to the following additional terms, conditions,

and limitations: ft |

(Tt): Nobwiehiimedicig: any other provisions “of

- this certificate, the holder shall at ‘all times con-

duct its operations in accordance ‘with all trea-

ties and agreements between the United States

and other countries, ‘and the exercise of the priv-

+ ileges 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 granted herein

shall. be subject.to there first being obtained from

_*the appropriate foreign. governments such oper-

ating rights as may’ be necessary. The exercise ©

_ of the privileges granted by this certificate*shall

be subject to such other reasonable terms, condi- .

tions, and limitations required by the public in- . _

terest as may from time to time be ee see

~ the Board. ae

(3) Charter services: eutienia 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 com-

- pensation ‘now or hereafter specified by the Board

in applicable rules, regulations, or orders.

‘This certificate shall be effective on N ovember 26, .

tae: Provided, sas — prior te the date on.

ilar leiiantn heetuentiate ys dean ied AQUA AMCAIIOADS Ny sen nytt il ins A ata tesa tg A Wa a

4 ‘ ‘

oe Te eee

‘py

58)

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 ee. on ©

sideration of: the Board’s order of ‘March 11, ‘1966 \ .

(Order E-24237), insofar as such order bsithortees.:) -

the issuance of this certificate, may by order or orders

extend such effective date from time to time. it nota

The authority to engage in ‘supplemental air trans-. ~

portation as provided in paragraph 1 shall terminate

’ five years after the effective date of this certificate.

IN WITNESS WHEREOF, the Civil Aeronautics Board

~ has caused this certificate to be.executed by the Sepg™

retary of the Board, and the seal of the Board to-be.

_ affixed hereto; on the 11th day of March, 1966.

HAROLD R. SANDERSON |

Secretary '

(SEAL)

Issuance of this certificate to the holder approved

by the President of the United States on —

27, 1966. in Order E-24237, |

os N ECESSITY FOR | ‘SUPPLEMENTAL AIR. TRANSPORTATION

N\A:

is hereby authorized, subject to the provisions herein-

after set forth, the provisions of Title IV of the Fed-_

eral Aviation ‘Act of 1958, and the orders, rules, and

@ i pursuant to

Order No. E-24237. -

UN ITED STATES OF AMERICA

- CIVIL AERONAUTICS BOARD. . ee

WASHINGTON, D. C. serene

CERTIFICATE OF PUBLIC CONVENIENCE AND:

CAPITOL AmRways, INC.

regulations issued thereunder, to engage in supple-

. mental air transportation: (including inclusive. tour - }

charter authority) with respect to persons ——

erty, as follows:

Between any point’ in any State of the United

t States or the District of . Columbia, on: the ane _

. hand, and points in Jamaiea, the Bahama. Is- °

-» lands, Bermuda, .Haiti,; the Dominican Repub- .

- Puerto Rico? the Virgin Islands, Trinidad,

‘Aruba, the. Leeward and Windward Islands, .

--and any other place located in the Gulf of — -

_ ied or.the Caribbean Sea, on the: other hand. : _

; In overseas and foreign: air transportation, and |

in air transportation between places in the same

| territory or possession of the United States, pur- ee

-\. ‘suamt to contracts with. ‘the Department of De-" raes

\ fense. — eet ware ess

The service herein authorized: ‘is subject. to the. -

. terms, -conditions, and limitations prescribed by the

Boards sa price tagttcs for supplemental air transporta-

a °

t cae :

caliente ati ce Ma ok ges ea

Cee

tion and to the following additional terms, conditions,—

and limitations: © =—*-- ._ a

(1) Notwithstanding any ‘other provisions of

this certificate, the holder shall at all times con-— —

. duct its operations 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 com- |

come pliance with such treaties and agreements and to

_ + any orders’ of the Board issued pursuant to,-or « ”

for the purpose of requirinig compliance with, -

oo such treaties and agreements. _ eae

~~~" (2) ‘The exercise of the authority granted herein’: .

op shall. be subject to there first being obtained from. a

the appropriate foreign, governments such oper-

ating rights as may be necessary. The-exercise |

. of the privileges granted by this certificate shall -

_ +be subject to such: other reasonable terms, condi-

tions, ahd limitations required by the public in-

terest as may from time to time be prescribed -

_ by the Board. - eens sha

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

_ the Department of Defense shall be furnished at... —

the rates and compensation computed‘on a basis

.. ho lower than the basis of computation of com-

_ pensation now or hereafter. specified by the- Board

in applicable rules, regulations, or orders. Oe

pee This certificate shall be effective on November 26,

~~ (1966: Provided, however, THat prior to the date on

_ which this certificate would otherwise become effec-.

| _..tive the Board, either pn its own initiative or upon

/-°." * the timely filing of a petition or petitions seekipg re- _

_.’, consideration of the Board’s order of March 11,1966

EO eens . oo .

56 |

(Order: E-24237 ); insofar as such order authorizes

the issuance of this certificate, may by order or orders

extend such effective date from time to time.

. The authority ‘to engage in supplemental air trans-

: portation as provided i in paragraph 1 shall terminate

-. five years after the effective date of this certificate.

IN WITNESS WHEREOF, the Civil ‘Aeronautics Board

has caused this certificate tobe executed by the Sec-

retary of the Board, and the seal of the Board to be

. affixed hereto, on ‘the 11th day of March, 1966.

_. Harotp R. SANDERSON -

Secretary

i *S

Issuance of this certificate to the holder approved

27, 1966. in Order E-24237.

ant

57 a

| | Issued pursuant to

Order No. E-24237

UNITED STATES.OF AMERICA

'. CIVIL AERONAUTICS BOARD

| _ WASHINGTON, D. C. -

_ CERTIFICATE OF PUBLIC CONVENIENCE AND

NECESSITY FOR SUPPLEMENTAL. AIR TRANSPORTATION

MODERN AIR TRANSPORT, INC,

_is hereby’ authorized, subject to the provisions herein- -

after set forth, the provisions of Title IV of the Fed-

eral Aviation Act of 1958, and the orders, rules, and

regulations issued thereunder, to engage in supple-

mental air transportation (including inclusive.tour _

charter authority) with respect to persons and prop- —

’ erty, as follows:

1. Between any point in any State of the United

States or the District of Columbia,’on the one

_ hand, and points in Canada and Mexico, on the

. other hand. ; : 3 3

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

_ in air transportation between places in the same -

territory or possession of the United States, pur-

suant to contracts with the Department of De-

fense. op ee ites lanes

The. service herein authorized is subject. to’ the

_ terms, conditions, and limitations prescribed by. the

Board’s Regulations for supplemental air transporta-

tion and to the following additional terms, conditions,

- and limitations:

(1) N otwithstanding any other | provisions of

- . this certificate, the holder. shall at all times con-

_ duct its operations in accordance with all treaties cs

Sn . - dette MGS Net eee 2 oe

and agreements between the United States >

other countries, and the exercise of the privileges |

granted by this certificate shall be subject to com-

plianee with such treaties and agreements and

to any orders of the Board issued pursuant to, or

for the purpose of requiring: sacs ommameae wae,

such treaties and agreements. .

(2) The exercise of the authority granted nein |

.» Shall be subject to-there first being obtained from

the appropriate foreign governments such oper-

ating rights as may be necessary. The exercise

of the privileges granted by this certificate shall

be subject to such other reasonable terms, condi-

tions, and limitations required by .the public ‘in-

‘terest as may from time. to time be auaiien by

the Board. |

(3) Charter services taba = 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 com- -

pensation now or hereafter specified by the Board

in applicable rules, regulations, or orders.

This certificate shall be effective on November 26,

1966: Provided, however, That prior to the date on

which this certificate would otherwise. become effec-

tive the Board, either on its own. initiative or upon:

- the timely filing of a petition or petitions seeking re-

~ consideration 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. ~

_. Fhe authority to engage in supplemental air trans-—

portation | as provided i in paragraph 1 shall terminate

‘ five years after the — date of this’ certificate.

‘ °

, ‘ pips amitcanaas ‘ ff...

: ° .

IN WITNESS WHEREOF, the Civil Aeronautics Board

: has caused this certificate to be executed by the Sec-

" retary of the Board, andthe seal of the Board to be

| affixed hereto, on the 11th day of March, 1966.

| , HaROLD-R. SANDERSON .

a aire 7 Secretary

(SEAL) ~

Issuance of this certificate to the holder approved

. by the President of the United States on September.”

27, 1966 in Order E-24237. 7 |

“Issued warsiinit ae

Order No. E-24237 .

| UNITED STATES OF AMERICA

CIVIL AERONAUTICS BOARD *

: WASHINGTON, D. C. -

: _ CERTIFICATE OF PUBLIC CONVENIENCE AND

NECESSITY FOR SUPPLEMENTAL AIR TRANSPORTATION

JOHNSON FLYING SERVICE, INC.

is hereby authorized, subject to the provisions here-

inafter set forth, the provisions of Title IV of the

Federal Aviation Act of 1958, and the orders, rules, | _

and regulations issued thereunder, to engage in sup-

_ plemental air transportation (including inclusivé tour —

charter authority) with es to persons and — ae

erty, as follows: |

1. Between any silk tn any State of the United

_States or the District of Columbia, on the one

-hand, and points in Canada, on the other hand.

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

in air transportation between places in the same

territory or possession of the United-States; pur-

‘suant to contracts with the Department of De- .

fense. | ¢ a

‘The service herein authorized is subject ‘to ‘the °

terms, conditions, and limitations prescribed by: the

Board’s Regulations for supplemental air transporta-

tion and to the following, additional terms, conditions,

and limitations: . ,

(1) Notwithstanding . any other pxpvisions of

this certificate, the holder shall at.all times con-

— its operations 1 in accordance with all treaties

C5 hates, wee ae NE at Re PS a nh 6 a Sai Gn a SORT Mati tits 2 oneal RCNP HAS eee oS S88

Sn a

ahd ae,

“ 61 .

and agreements between the United States and

‘other countries, and the exercise of the privileges —

granted by this certificate shall be subject to com-

pliance 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 granted herein’

shall be subject’ to there first being obtained from

_ the Canadian Government such operating rights

as may. be necessary. The exercise of the privi-

leges granted by this certificate shalf be subject

to such other reasonable ‘terms, conditions, and - |

limitations required by the public interest as may

_ from time to time be prescribed by the Board.’ —

(3) Charter services performed by the holder for

the Department of- Defense shall “furnished at _

_ _the®rateseand compensation computed on a basis *

no lower than the basis of £omputation of com-

pensation now or hereafter specified by the Board

in applicable rules, regulations, or orders, -

This certificate‘ shall be effective.on November 26, -

1966: Provided, however, That prior to the date on

which this certificate would otherwise ‘become effec-

tive the Board, either on its own initiative or upon

‘the timely filing of a petition or petitions seeking re-

consideration of the Board’s. order of March 11,1966

(Order E-24237) , insofar as such order authorizes

the issuance of this certificate, may by order or orders

_. extend such effective date from time to time.

The authority te engage in supplemental air trans-

portation. as provided ‘in paragraph 1 shall terminate

five years after the effective date of this certificate.

.62

IN WITNESS WHEREOF, the Civil Aeronautics Board

-has caused this certificate to be executed by the Sec-

retary of the Board, and the seal of the Board to be

, affixed hereto, on the 11th day of March, 1966.° .

HAROLD R. SANDERSON

Secretary

(SEAL)

eere of this certificate to the bitter: approved

by the President of the United States on. a ;

27, 1966 in Order E-24287. See

Soca lenocicas

Issued pursuant to -

. Order No. E-24237 —

UNITED STATES OF AMERICA —

_ CIVIL AERONAUTICS BOARD.

ee D. C.

! Catroncate ¢ OF PUBLIC CONVENIENCE A AND ?

‘ NECESSITY FOR SUPPLEMENTAL AIR TRANSPORTATION

~ PURDUE AERONAUTICS CORPORATION _

is hereby authorized, subject to the provisions here-

inafter set forth, the provisions of Title IV of the

Federal Aviation Act of 1958, and the orders, rules, \

and regulations issued thereunder, to emgage in sup-

plemental air transportation (including inclusive tour

charter authority) with respect to persons and prop-

erty, as follows:

ae Between any point in. any State ‘of the United

States or the District of Columbia, on the one

_,hand, and points in Canada, on the other hand. 7

_-2. In overseas and foreign air transportation, and *-§

“in air trahsportation between places'in the same

- territory or possession:of the United States, pur- _.

suant to comtracts with the aaa tata of De- —

fense. on

’ The service herein authorized is subject. tn. the

terms, conditions, and limitations prescribed by the

> Board’s Regulations for supplemental air transporta-

tion and to the following additional terms, ooneitions,

and limitations: "

_~ (1) Notwithstanding any. plline provisions of _

3 this certificate, the holder shall at all times con- °

duct its operations in accordance with all treaties

. | Weta

and agreements between the United States and

other countries, and the exercise of the privileges -

granted by this certificate shall be subject to com-

pliance with,ysuch treaties and agreements and

to any orders of the Board issued pursuant _

or for the purpose of requiring compliance with,

such treaties and agreements.

(2).The exercise of the authority granted herein

_ shall be’ subject to there-first being obtained from

‘the Canadian Government such operating rights

as may be necessary. The exercise of the privi-

leges granted by this certificate shall be subject -

to such other reasonable terms; conditions, and ~

limitations required by the public interest as may.

from time to time be prescribed by the Board.

(3) Charter services performed bythe holder for |

the Department of Defense shall be furnished at

no lower than the basis of computation of com-

| pensation now or hereafter specified by the Board

in applicable rules, regulations, or orders.

‘This certificate shall be effective on November 26,

1966: Provided, however, That prior to the date on

which this - certificate would otherwise become effec-

tive the Board, either on its own. initiative or upon

the timely filing of a: petition or petitions seeking re-

consideration 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

exténd such effective date from time to time. |

The authority to engage in supplemental air trans-

portation ‘as provided in paragraph 1-shall terminate -

five years after the effective date of this ————

the rates and compensation computed on a basis -

IN WITNESS WHEREOF, the Civil Aeronautics Board .

“has caused this certificate to be executed hy. the Sec--_

retary of the Board, and the seal of the,Board to be

affixed hereto, on the 11th day of March, 1966.

HaRotp R. SANDERSON: -

Re Secretary

i eS:

Issuance of this certifiéate. to the holder approved

by the President of the United States on September

27, 1966 in Order E-24237. —

ie vis heréby. authorized, subject to the provisions here-' *:

* Teated pursuant to

Order No. B-24237

UNITED. STATES OF AMERICA.

, OTVIL, AERONAUTICS BOARD

WASHINGTON, D.C.

| - CerrTiFieaTE OF PUBLIC CONVENIENCE AND

N ECESSITY ‘FOR SUPPLEMENTAL ‘AIR TRANSPORTATION .

db, - x

- SATURN AIRWAYS, INC.

* tip, *

inafter set~forth, the provisions of Title IV ofthe ~..

Federal “Aviation. Act of 1958> and. the orders, : rules, Aoraa

and fegulations issued thereunder, to engage" in-sup-

ied uid

rT em,

cor aS Fe:

. .. splethental-air transportation (ineluding inclusive tour

: charter authorit; ) with neepect to. persons and sites, |

| ‘erty, as follows: :

—_

I. Between’ aay polnt in ‘any. ‘State of + the United ; ;

” States or the: District of Columbia, on thé one

“hand, -and points in’ Jamaica, the: Bahama ‘Is-

lands, ‘Bermuda, Haiti; the ‘Dominican -Repub-

Hie: Puerto. Rico, the Virgin Islands, Trinidad, .

ruba, ‘the Leeward and Windward. Islands,

and any other. place located in the Gulf-of.Mex- ...

__ico or the Caribbean: ‘Sea,-on: the other hand. a Deis.

2. ‘In overseas “and foreign air transportation, ‘and PN

“An ‘air’ transportation between places in the same -

ig territory or possession, of the United States, pur-:”

. suant to contracts ‘with. the: bicubic of De-

: fense.. :

| The servive. Revein -qtithorized: is. subject to the /

- _ terms, conditions, and limitations’ prescribed by , the -

«, Board's Regulations for supplemental air r transporta-

- & .

a . . $

. “s

ane, _— ° 4 ot - . -

a ae * vw

~ #7 *

+= tion and to the following additional terms, conditions P

‘and limitations: , , :

(1) Notwithstanding any other provisions of

this certificate, the holder shall-at all times con- -—

duct its operations in accordance with all treaties .

and. agréements between the United States and

other countries, and the exercise of the privileges

- granted by this certificate shall be subject to com-

pliance 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 granted herein

- shall be subject to there first being obtained from

the appropriate foreign governments such oper- * ~

- . ating rights as may be necesSary. The exercise ~

of the privileges grarted by this certificate shall

besubject,to such other. reasonable terms, condi-

tions, and limitations’ required by the public in-

terest as may from time to time be prescribed

by the Board. :

(8): Charter services per formed’ by the hoitier for i

«the Department of Defense shall be furnished at

the rates and compensation computed on a basis ©

no lower than the basis of computation of com-

tos pensation now or hereafter specified: by the Board °

in applicablefules, regulations, or orders,

This certificate- shall be effective on ‘November 26,

1966: Provided, however, That prior to the date on

which this certificate would. otherwise become effec-

tive the Board, either on its own initiative or upon °

‘the timely filing of a petition or petitions seeking re-- |

+ consideration of the Board’s.order of March-11, 1966

(Order. E-24237), insofar as such order ‘authorizes a

abated tin heirtidenasted Wilteves tata 4 = >.

. .

er nae

e re

HOP ORM gS PA Ka SYS

Lint Beedle LCi eaatae Ap iiavule diel shied ib

Seieliiie Attiasa) 2

ene ote mee Oleg eee en

+ 68.

~ the issuance of this certificate, may by order or orders

extend such effective date from time to time.

The authority to engage in supplemental air trans-

portation as proyided in paragraph 1 shall terminate

‘five years after the effective date of this certificate.

IN WITNESS WHEREOF, the Civil Aeronautics Board

| hes caused this certificate to be executed by the Sec- |

retary of the Board, and the seal of the Board to be

2 affixed hereto, on the 11th day of March, 1966.

HAR R. SANDERSON ~

Secretary

(SEAL)

Issuance of this certificate to the holder approved

| by the President of the United States on September

27, 1966 in Order ae

see

Issued pursuant to-

; apne _ Order No, E-24237

UNITED STATES OF AMERICA *

CIVIL AERONAUTICS BOARD

_ ° WASHINGTON, D.C.

CERTIFICATE OF PUBLIC CONVENIENCE AND

_ NECESSITY FOR SUPPLEMENTAL AIR TRANSPORTATION

SOUTHERN AIR TRANSPORT, INC.

_ -is hereby .authorized, subject to the. provisions here-

_Inafter set forth, the provisions of Title IV of the

Federal Aviation Act of 1958, and the orders, les, .

and regulations, issued thereunder, to engage in sup-

plemental air transportation ( including inclusive tour .

‘charter authority) with respect to persons and prop-

erty, as follows: re Abe ee

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

_ ‘States or the District ‘of Columbia, on the one

hand, and a

(a) American Samoa, Guam, Johnston Island,

_ the Marshall. Islands, Okinawa, Wake Is-

land, and points in Australasia, Indonesia,

and Asia as far west as longitude 70 de,

grees east via a transpacific routing, on the

other hand; : ae Ee

(b) points in Jamaica, the Bahama Islands,

Bermuda, Haiti, the ‘Dominican Republig, |

Puerto Rico, the Virgin Islands, Trinidad,

Aruba, the Leeward and Windward Is-_

lands, and any other place located in the

Gulf of Mexico or the Caribbean Sea, on

the other hand. age

A rey

SA ee

lat ii il i i i i

2 In overseas and foreign air transportation, and

~.in air transportation between places in the same

territory or possession’of the United States pur-

—suant to contracts with the Department of De-

fense. Pie ,

‘The service herein authorized - is: subject to the

-. terms, conditions, and limitations prescribed by the-

Board’s Regulations for supplemental air transporta-

tion and to the following additional terms, conditions,

and limitations: |

—————

{1) Nudeikiitandien any other iat’ of 3

this certificate, the holder shall at all times -con-

duct: its operations 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 com-

—— 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 granted herein | |

shall be subject to'there first being obtained from

‘the appropriate foreign governments such oper-

ating rights as may be necessary. The exercise

of the privileges granted by this certificate shall

be subject ‘to such other reasonable terms, con-

ditions, and limitations required by the public’

interest as may = time to time be prescribed

by the Board.

(8) Charter services performed re ie 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 com-

eae

nm.

pensation now or hereafter specified by the Board :.

in applicable‘rules, regulations, or orders.

___ This certificate shall be effective on November 26,

1966: Provided however, That prior. to the date on

_ which this certificate would otherwise become effec- si

tive the Board, either on its own initiative or upon _

the timely filing of a petition or petitions seeking re- _

consideration of the Board’s order of March 11, 1966 -

(Order E-24237), insofar as such order authorizes

the issuance of this certificate, may by order or orders

extend such effective date from time to time: =~

The authority to engage in Supplemental air trans-

portation as provided in paragraph 1 shall terminate

five years after the effective date of this certificate.

; ‘In WITNEss WHEREOF, the Civil Aeronautics Board -

. has caused this certificate to be executed by the Sec- |

retary of the Board, and the seal of the Board to be ©

_ affixed hereto, on the 11th day of March, 1966. ©

—_

_ HAROLD R: SANDERSON |

‘Secretary :

(SEAL) -

“Issuance of this certificate to the holder approved

by the President of the United States on September

‘27, 1966 in Order F-24237, La

a Pe

Issued pursuant to .

_ Order No. E-24237

‘UNITED STATES OF AMERICA ° |

CIVIL AERONAUTICS BOARD.

WASHINGTON, D. C. Boe a ,

Czeriricate OF : PUBLIC CONVENIENCE AND, °

NECESSITY FOR SUPPLEMENTAL, ae i asta

TRANS. INTERNATIONAL AIRLINES, INC.

ae =

is Hereby authorized, subject to the. provisions here- —

_ inafter set forth, the provjsions of Title IV of the

Federal Aviation Act of 1958, and the orders, rules,

- and regulations: issued thereunder, to engage in sup-

plemental‘air transportation (including inclusive tour

charter authority) with respect, to persons and prop-.

erty, as follows:

1. Between any point in any State of the United

States or the District of Columbia, on the one

‘hand, and :

(a)

American Samoa, Gand, Johnston Island,

the Marshall Islands, Okinawa, Wake Is-

_ » land, and points in Australasia, Indonesia, ©

and Asia as far west as longitude 70 de-

grees east via a transpacific routing, on

.(b)

the other hand;

points in- Jamaica, the Bahama Islands,

Bermuda, Haiti, the Dominican Republic, —

Puerto Rico, the Virgin Islands, Trinidad;

Aruba, the Leeward and Windward Is-

lands, and any other place located in the

Gulf of Mexico or the Caribbean. Sea, on

oe” the other hand;

73 ©

Guatemala, Honduras, El Salvador, Nica-

ragua, Costa Rica; Panama; and in the 3

*” countries on the continent of South Amer-

ica, on the other hand. es

2. In overseas and foreign air transportation, and

in air transportation between places in the same —

territory or possession of the United States pur-

‘suant to contracts with the Department of De-

fense. - eae an |

The.-service herein authorized is subject to the

terms, conditions, and limitations prescribed by the

_Baard’s Regulations for supplemental air transporta- ~*

tion and to the following additional terms, conditions,

and limitations: a

'- this certificate, the holder shall at all times con-

- duct its operations in accordance with al] treaties ®

_ «and agreements between the United States and

_, other countries, and the exercise of the privileges

granted by this certificate shall be subject to‘com- °

_ -pliance 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 granted herein |

shall be subject to there first being obtained from °

-_ ‘the appropriate foreign governments ‘such oper-

ating rights as may be necessary. .The exercise .

of the privileges granted by this certificate shall

be subject to such other reasonable ‘terms, condi--

tions, apd limitations required by the public in-

terest as may from time to time be prescribed’

- by.the Board.

wed UM teh eA Rai alle CCAR tee

P Lele Ret re

Phe

(3) Cartes 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 com-

_ pensation now or hereafter specified by the Board

in applicable rules, regulations, or orders.

‘This certificate shall be effective on November 26; ~

1966: Provided ‘however, That: prior to the date on |

which this certificate would: otherwise become effec- ead

tive the Board, eitherzon its own initiative or upon

? the timely filing of a petition or petitions seeking re- _

- eonsideration of the Board’s order of March 11, 1966 ~

(Order E-24237 ), insofar as such order authorizes

the issuance of this certificate, may by order or orders

extend such effective date from time to time,

The authority to engage in supplemental air trans- —

portation as provided in paragraph 1 shall terminate

five years after the effective date of this certificate.

IN WITNESS WHEREOF, the Civil Aeronautics Board

has caused this certificate to be executed by the Sec-

retary of the Board, and the seal of the Board to be

affixed hereto, on the 11th day of —_— 1966. :

HaroLp R. SANDERSON ~

- Secretary re

(SEAL)

Issuance, of this cotta: to the holder approved

by the President of the United States on —

27, 1966 in Order E-24237. .

- Issued pursuant to

Order No. E-24237

UNITED STATES OF AMERICA

CIVIL AERONAUTICS BOARD

WASHINGTON, D. C.

‘Cherwcire OF PUBLIC CONVENIENCE AND

' NECESSITY FOR SUPPLEMENTAL AIR TRANSPORTATION

is hereby siendead: subject to the provisions divi.

WorLD AIRWAYS, INC.

inafter set forth, the provisions of Title IV of the

Federal Aviation Act of 1958, and-the orders, rules,

and regulations issued thereunder, to engage in sup- - :

, plemental air transportation (including inclusive tour.

fa _ charter authority) with respect, to persons and ileal |

erty, as follows: -

.1. Between ‘any point in any State of the Unite

States or. the District of Colunibia, on. the one -

‘hand, and ! oon

—@) American Samoa, Guam, ‘Johnston Island,

. + (db)

the Marshall, Islands, Okinawa, Wake Is-

land, and point: in Australasia, Indonesia,

and Asia as far west as longitude 70 de-

grees east via a ‘transpacific routing, on the

other hand; E

points in Jamaica, ‘the Bahama. Islands,

_ Bermuda, Haiti, ‘the Dominiean Republic,

Puerto Rico, the Virgin Islands, Trinidad,

Aruba, the Leeward and Windward’ Is-

lands, and any other place located in the |

Gulf of Mexico’ or the. aed Bea, on~

the other hand;

(ce) points in British en the Canal Sone,

Guatemala, Honduras, El Salvador, Nica-

ragua, Costa Rica, Panama, and in the

countries on the continent of South’ Amer- 5

ica, on’ the. other hand.

. In overseas and foreign air tirthnabortition, and _

‘in air transportation between places in the same |

territory or possession of thé United States pur-

suant to contracts with the Department a De-

fense. :

‘The service herein | aitharined is “subject to the

terms, conditions, and. limitations prescribed. by the .

Board’s Regulations for supplemental air transporta-.

tion and to the following additional terms, conditions,

‘and limitations: : .

a agreements between the United: States and -

satin ae Baad

* duct its operations in accordance with all treaties

ther countries, and the exercise of the privileges .

~ grarited by this certificate shall be subject to com-

pliance with such treaties and agreements and

to-any orders of the vr a issued pursuant to,

or for the purpose of requiring compliance with,

such treaties and agreements.

(2) The exercise of the authority granted herein

shall be subject to there first being obtained from

the appropriate foreign governments such oper~

ating rights as may be necessary. The exercise

of the privileges granted by this certificate shall

be. subject to such other reasonable terms, condi-

‘ tions, and limitations required by the public in-

— as may from time to time be prescribed

by the Board. | )

-(1) Notwithstanding ahy other provisions of

this certificate, the holder shall at all times con-.

{

(3) on services nurtadiains = the bikin for .

the Department of Defense shall be furnished at

_the rates and compensation computed | on a basis — rs

"no lower. than the basis of computation of com-

™. pensation now or hereafter specified by the Board

a applicable rules, regulations, or orders.

- This cértificate shall be effective on N ovember 26, _ |

- 1966: Provided however, That prior to the date ori

which this certificate would. otherwise become -efféc-

* tive the Board, either on its own’ initiative or. upon

the timely filing of a petition or petitions seeking re-

- cansideration of the Béard’s order of March x, 1966

(Order E-24237 ), insofar as such order authorizes

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

- extend such effective date fren time to time.

The-authority to engage in supplemental-air trans- ~

te: portation as provided:in paragraph 1 shall terminate -

five years after the effective date of this certificate.

IN WITNESS WHEREOF, the Civil Aeronautics Board

has caused this certificate to be.executed by the Sec-

” yetary. of the Board, and the seal of the Board to be

affixed hereto, on the 11th day of March, 1966.

* HAROLD R. SANDERSON

Secretary *

—

Issuance of this certificate to the holder approved

by ‘the President of the United States on September

27; 1966 in Order B-24237. |

ce - Issued pursuant, to :

: Order No. E-24237.

‘UNITED STATES OF AMERICA.

CIVIL AERONAUTICS BOARD

Wasuincton, D.C:

aN ECESSITY FOR SUPPLEMENTAL AIR TRANSPORTATION

-ZANTOP. Ain: TRANSPORT, INc.

is hereby authorized, subject to the. provisions ° “here-'

_ . inafter set forth, the provisions of Title IV-of -the

Federal Aviation Act of 1958, and the orders, rules,

_and regulations issued thereunder, to engage in sup-

_plemental air transportation. (including inclusive tour |

charter — with. — to persons and Prop-

erty, as follows; avai

i * Between any ‘point in any State of the: United .

States or the District of: Columbia, on thé one.

_hand, and points int Canada and Mexico, on the o

. - other hand. -

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

in air transportation between places in the same _ |

: territory or possession of the United States, pur-

suant to contracts with the Department of De- i.

_ fense. —

7 The «service herein authorized is subject. to‘the —

: terms, conditions, and limitations prescribed by the

Board’s Regulations for supplemental air transporta-

‘tion, and to the following additional terms, conditions,

‘and. limitations: |

(1) Notwithstanding. any idan * provisions of

this certificate, the holder shall at all times con- °

=. Pn

= . +

Ae eee 19° eu. ay

ou duct its eiiehttile in ‘sieihidiiens with all: treaties on

and agreements between the United States and

other countries, and. the exercise of the privileges '

granted by this certificate shall be subject to com- _

plianee with such treaties and agreements and. —

_* to any orders of the Board issued pursuant to,

- or for the purpose of requiring — with,

_ stich treaties and agreements. He

> ae THie exercise of the authority granted herein |

shall be subject t to there first being obtained from:

. the appropriate. foreign governments such oper-

ating rights as may be n 4 greg The exercise

of the. privileges granted by this certificate ‘shall

be subject to such other reasonable terms, con-

ditions, and limitations required by the public

interest as may from time to time be prescribed ae

‘by the Board.’ Pans eee

_ (8) Charter services Fe ae is 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 com-

3 pensation now or hereafter specified by the Board

' in applicable rules, regulations, or orders. ~

This certificate shall be effective on November 26,

-- 1966: -Prayided however, That. prior to the date on

which this certificate would otherwise become effec-

: tive ‘the Board, either on its. own initiative or upon

the timely filing of a petition or petitions seeking re-

' consideration of the Board’s order of March 11, 1966 _

(Order E-24237), insofar as such order authorizes

~ the i issuance of this certificate, may by order or orders"

ge extend. such effective date from time to time.

Nm .

. ‘

Tee

re 80 ie

* 2.

The authority to engage in supplemental, air eran.

‘portation as provided in paragraph 1 “shall terminate

‘five years: after the effective date of this certificate.

_ "IN WItNEss WHEREOF, the Civil Aeronautics Board

has caused this-certificate to be executed by the Sec-

retary of the Board, and the seal of the Board to be

| affixed hereto, on the 11th day of March, A966.

“HAROLD R. Ganpenson

Secretary .

( seAL)

. Lesaknes of this sertticahs to the holder. ‘approved .

_ by the. President of the United States: on or

27, 1966 in Order, eens |

\ ain

oy vw : “* w

. .

eo ee ese eee . o

*§

aay Sema a

fo Steg s Onder No, Bees *

UNITED STATES OF AMERICA 4

CIVIL AERONAUTICS BOARD

: WASHINGTON, D. C. 3

- Adopted: by the Civil Aeronautics Board |

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

on the ilth day of.March, 1966. ~ °

SUPPLEMENTAL AIR SERVICE PROCEEDING;

Se ey ee

“A full’ public hearing having been held in the above- 7

entitled proceeding and the Board, upon considera-. »-

tion of the record,: having issued: its opinion contain-

_ ing its. findings, conclusions, and decision, which is

' ‘attached hereto and made a part hereof ;

IT Is ORDERED:

‘1. That there be.and. hereby- are adopted and is-

- sued concurrently herewith amendments to Parts 208 ae

and 378 of the Board’s Regulations, which are—at-——>

~~ tached hereto and made -a part. hereof.’

bes

2. “That said-amendments shall be effective on No-

vember 26; 1966. ore eo iS

By the Civil Aeronautics Board: | -

ae | _ HAROLD R. SANDERSON —

(SEAL). oe SS

adelaide

* For administrative convenience» we have combined into a

single ameridment to Part. 378 the revisions required by the .

decision in the instant proceeding as well as the decision in the

Reopened Transatlantic Charter Investigation (All-Expense

Four Phase), Docket'11908 et al. ee.

: Rip ae Regulation No. ER-ATA

_* UNITED STATES OF AMERICA Z

'. QIVIL AERONAUTICS BOARD

WasHINGTON, D.C.

Economic Rigviniiend Amendment: No. 2 to Part 208 3

3 Effective: November 26, 1966

- Adopted: March 11, 1966 _

Part 208—Teeos, ‘CONDITIONS AND ‘Dueeninne. OF

° CERTIFICATES TO ENGAGE IN: ‘SUPPLEMENTAL

AIR TRANSPORTATION

- EXPANSION OF COVERAGE TO OVERSEAS AND F@REIGN

Seer SUPPLEMENTAL AIR TRANSPORTATION

eer “Part 208 of the Board’s ‘Economic Regulations (14

aa CFR Part 208), which contains, inter ‘alia, certain ‘

terms, conditions and limitations of interim certifi- ~~

‘cates issued ‘pursuant to section 7 of Public Law 87-

528 and of certificates issued pursuant to. ‘section 401-0

ot | _ (d)(8) of the Act, was Yevised and reissued ' in con-

~~" jynetion with the’ Board’s decision in the domestic

| phase of the Supplemental Air Service Proceeding, -

Docket 13795 et al In order to ‘correspond with the. °

j scope of authority granted to supplemental air car-

SF . riers in that decision, the regulation as then adopted

: ‘pertains only to authorizations 1s to perform interstate 3

air transport = on

——

————

1 Regulation ER-454, adopted on —s 11, 1966, and

‘published in 31, F.R. ATT71.

* Order E-23350. Zu ae baer 2. * a.

" 8 Between any point in any ‘State of the United States or

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

a the United States or the District of cee emerd s

; a pare 83.

To: corttepind with authorizations. being awarded

* as a result of the Board’s final decision in the foreign’ :

. and overseas phase of the ‘Supplemental case,* which

is being issued. concurrently herewith, we are amend-

ing Part 208-to expand: its. coverage to: certificated

supplemental overseas and foreign air. transportation.

_In view of the fact that-the régulatery problems’with .

respect to such authority were dealt with by the Board »

in the above-mentioned proceeding, further notice and

public procedure on the amendments involved herein

are unnecéssary and not in the public interest.

Accordingly, the Board hereby amends Part 208 of

its Eeonomic Regulations (14 CFR Part 208), =

_* tive November 26, 1966, as follows:

1.. Amend the table of contents by adding § 208.3 32a

_ and by revising. § 208. 33 to read as follows: — :

208.32a Flight delays and. substitute air ee |

3 tion (foreign). :

| 208. 33 = Flight delays and substitute air transporta-

| tion (interstate and overseas).

(t) thereof to read as. follows:

—

(ce) “Supplemental air. transportation” (o (other than

operations subject to Part 295 of this subchapter) _

means charter flights in air transportation performed |

pursuant to (1) an interim. certificate or authériza- .

tion issued under section 7 of Public Law: 87-528, or

(2) a.tertificate of public conveniénce and necessity:

- issued under section: 401(d) (3) of the Act authoriz- —

‘ing’ the holder to engage in supplemental air. trans-

portation of persons vo property between any point

"4 Order E-24237.

- 84 i .

in any State of the United States or he District of

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

~ United States or the District of Columbia (exclusive —

_ of air transportation within‘the State of. Alaska) - or-—

in foreign. or overseas supplemental air -tyansporta-

: tion. :: na BO

a “Substitute service” means.t he performance _ ee

+ an aif carrier of | or overseas air transporta- )

oh ae or air-transportation betweén the 48 contiguous

: ue , on’ the one hand, and the-state of Alaska or

, awa on the other hand, in plariéload lots pursuant —

f to an agreement with: another air carrier to fulfill

| ff ‘ “such other air carrier’s contractual obligation to per-

“., form such air transportation for the Department of

Fee Defense and when the. performance of such air trans-

portation is not to take place posing a period longer |

than three weeks.

3. Amend + § 208. 32(d) to sii as follows: 7

§ 208.32 Tariffs and. terms of service.:

a ce aa

‘(d) Each arid every contract for a: charter to be

2 oma hereunder shall incorporate the provisions

, of §§ 208.10 through 208.15, inclusive, and 208.32a,

--- 208.83 and 208.83a where applicable, concerning in- .

surance and substitute transportation. |

4. Add a new § 208.82a entitled “Flight delays and

‘ substitute. air ae ee to read as...

| follows:

‘ § 208. 32a Flight eee and substitute air sic

: tation ( foreign ).

- Supplemental air carriers shall assume, and publish —

applicable to passenger service in foreign air trans- -

as part ofthe rules and regulations of their tariffs

a a -and commence the. takeoff procedures at the airport

| fe 8 ‘oa ‘5

| ee we BB PS

os por tation, the following obligations without prejudice,

ee in. addition, to any other rights -or remedies. of

passengers under apfMicable law: =.

°° (a) Substitute air transportation, ok

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

causes an aircraft to finally enplane each passenger * |

of. departure before’ the forty-eighth hour following °

the tinie scheduled for. the departure of such flight, it . _

shall provide substitute ‘transportation in accordance

with the provisions of this Paragraph... e

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

_* -have discovered by the exercise of reasonable prudence Be"

and forethought, that the departure of any-such char-

ter flight will be delayed more than forty-eight hours, —

such air carrier. shall arrange for and pay the costs

of substitute air transportation for the charter. group .

_ on angther charter flight, operated by any other car- ~

rier or- foreign air carrier... _ ser 7

(8) When neither’ the charter transportation con-

tracted for nor substitute ‘transportation has ‘been

» Performed before the expiration of forty-eight oe *

* following the scheduled ‘departure time of ‘any gy

; charter flight, the charterer, or his duly authori#a

Ft agent, may arrange for substitute air transportation ’

| of the members of the charter group, at economy -or —

“tourist class fares, on individually ticketed flights and

the chartered air carrier Shall pay the costs of such

air transportation. to the substitute air carrier or for-

eign air carrier. — Eye. ae RA Je ean

(4) In determining the period of time dyring which

the departure of a charter flight has been delayed _ .

_ Within the purview of this paragraph, periods of de- °

lay caused by the prohibition of flights from the air- .

port of departure because of weather or other opera-

. ON *«

-—.

- : . “ag Oe) : se

. air-carrier had an airworthy aircraft. which is capa- .

— ble of transporting the charter oh a a condition -

of operational readiness posted. at su airport. : 3

_(b) I neidental expenses.° fe ee

(1) On all charter flights bound from. a podtit out- a

_ side the continent where the charter originated to the _

point, where it. terminates, unless the air carrier

| eauses an aircraft to finally enplane each passenger —

and commence the takeoff procedures’ at ‘the airport

of departure before the sixth hour following the time

scheduled for the departure of such flight, it shall pay

incidental expenses in accordance-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 chil-

- ‘dren 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. following the scheduled departure time.

Thereafter; during the succeeding 18 hours of delay,

- an additional sum of $8.00 shall be paid for each pas-

| senger delayed in installments of. $4.00 for the first

@ “and second succeeding six-hour period of delay, or any

| fractional part ns If the delay continues beyond,

s Although the requirements with respect to sicntiies in- 5

cidental.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 incidental expenses to charter passen-

gers whose homes are not located within a reasonable distance

from the — of origination of the chafter.

. . 88 ‘

| oN 8 ; Regulation No. SPR-16 .

Cae CIVIL AERONAUTICS BOARD. - .-

| _ WASHINGTON, D:.C.° :

‘Special Regul tions Amendment No. 9 to tin 378. :

_: _ Effective: November 26, 1966

acl Adopted: March 11, 1966

PART ofa: Tethieee. TOURS: By. [SUPPLEMENTAL

AIR CARRIERS AND TOUR OPERATORS

+ EXPANSION OF COVERAGE TO OVERSEAS

',- . AND FOREIGN AIR TRANSPORTATION

Part 378 of the Board’s Special Regulations (14

. CFR Part 378), which contains the regulatory provi-

sions governing the operation of ‘inclusive tour char-

ters, was originally’ issued * in- conjunction with the

Board’s decision in the domestic phase of the Supple

mental ‘Air Service Proceeding, 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 inclu- —

‘ sive tours in interstate air transportation. | |

To correspond with authorizatioris being awarded

-as a result of the Board’s final decisions in the for-*

.. eign arid overseas phase of the ag eng case *

, and in the Reopened Transatlantic Charter Investi-

gation (All-expense Tour Phase), Dgeket 11908, et

v2 Regulation No, SPR-14, adopted March. 11, 1966, and pub-

lished in 31 F. R. 4779. F sh - ee

>? Order E-23350. ve re

3 Order "E-24237.

e .

‘ : aoe”

: 3 * 89

1s > kt “ I,

° : -

=. . . :

| portation? (Supplemental. Notice of Proposed Rule Making,

-. SPDR-6B, ‘October 11, 1965, 30 F.R. 13077). Comments con- "

in SPR-14, supra, and have been considered by the Board.

al.,* ‘ which are being issued concurrently herewith, we

are amending Part 378 to expand. its coverage to in-

-clusive tours in overseas and foreign air transporta-

tion. 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 notice and public procedure on the amend-

ments involved herein are. unnegessary and not in the os

-public interest.

Accordingly, the Board hereby anil Part 378 of

its, Special amenning effective November 26, 1966,

“as follows:

A. ‘By revising rg 378.1 to read : as S follows:

§ 378. 1 Applicability. ;

This part establishes. the terms and conditions gov-.

. erning the furnishing of inclusive tours in interstate,

overseas and foreign air transportation by ‘supple-

‘mental air carriers and tour. operators. ‘This part

also relieves tour operators from various provisions

of the Act and the Board’s.regulations for the pur- i

pose of enabling: them. to provide inclusive tours to —

. members of the ‘general public utilizing aircraft char-

‘tered from ere air carriers. ae —

* Order E-24240. | pee a, A

°>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 a onded thine) reg at dans.

cerning both of “these ‘Notices were received, as set forth

=~ *

‘of .this vemulatinn shall not: be construed as Limiting

‘any other authority to engage in air transportation :

issued by the Board. ‘Nothing contained in this part

shall be construed as repealing or amending any pro-—

~ vision of any of the Board’s regulations, unless the

context so requires. . .

2.- By revising § 378, 2(a) to read as follows:

§ 378.2 Definitions.

As used in this part, unless the context otherwise

| requires— Te

(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 transportation 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.S.C.. 1324;

72 Stat. 754 as amended by 76 Stat. 143; 49 U.S.C. ..

1371;.72 Stat. 768; 49. U.S.C. 1879; 72 Stat. 770; .

49 U.S.C. 1384) and section 7 of Public Law 87-528

(76 Stat. 146; 49 U.S.C. 1871).)

By the Civil Aeronautics Board: | ie

3 ‘Harotp R. SANDERSON

'. Secretary

— |

Note: This is Amendment N 0. 2 to Part. 378. effec-

ie tive May 13, 1966.

Order No. B-24239°

UNITED STATES OF AMERICA

‘CIVIL AERONAUTICS BOARD

‘WASHINGTON, D. CC.

a Adoated by the Civil Aeronautics. Board

at its office in Washington, D. C.

on the 11th day of March, 1966 —

” Docket 18795 et al. - |

SUPPLEMENTAL AIR SERVICE PROCEEDING —

ORDER ©

A full public hearing having been held i in the sie

entitled proceeding and the Board, upon consideration

of the record dnd 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 hereto and made a part hereof ;

It Is ORDERED:

1. That the interim certificates and interim - ‘aus.

thority 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 para-

graph 1 of Order. E-24237, issued contemporaneously

herewith, upon the effectiveness of the certificates re-

spectively 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-24287, issued contemporaneously | here-

with.

By the Civil Aeronautics Board:

as | ‘eo R. SANDERSON -

(SEAL) 3 rete Secretary .

q .

ee wear EEE —— aa

Order No. 24242 .

“iaereb STATES OF AMERICA

CIVIL AERONAUTICS BOARD

WASHINGTON, D. C.

Adopted by the Civil. Aeronautics Board

at its.office in Washingto :

on the 5th day of .April, 1966

~ Docket 11908 et al.

. REOPENED TRANSATLANTIC CHARTER INVESTIGATION

_ ORDER

A full public hearing having, been held in the above-

‘entitled proceeding and the Board, “upon consideration

of the record, having issued its opinion containing its

| findings, conclusions, and decision ; .

IT Is ORDERED: |

ee Orhat slits of - publi « convenience and ne-

* -eessity for supplemental ‘air transportation in the ~

forms attached hereto be issued to American Flyers

——

—*~

Airline Corp., Overseas National Airways, Inc., Trans:

International. Airlines, Inc., and World Airways, Inc.

2. That said certificates shall be ‘signed on behalf

an the Board by its Secretary, shall have affixed there-

to the seal of the Board, and, subject to extension of

their effective dates in accordance with the provisions

of said certificates, shall ‘be effective on November -_

26, 1966. <

3. That the joint motion of Trans International .

Airlines and World Airways filed herein on February |

1, 1966, be, and it hereby is denied. -

. ° ° ;

all applications, motions, and requests involved herein ;

be and they hereby aré denied. a

_ 5. That this order shall become effective: upon the

.date of its approval by the President of the United

States.

By the*Civil Aeronautics. Board:

HAROLD R. SANDERSON .

meee Secretary

_ (SEAL) .

THE WHITE HousE: |

APPROVED: - : . | ai

LYNDON B, JOHNSON oi Gs ae

September 27, 1966 eee

tee,

94:

Issued pursuant to —

Order No. E-24242 .

UNITED STATES OF AMERICA.

d CIVIL AERONAUTICS BOARD

oe: D. C. aa

CERTIFICATE OF PUBLIC hal eeiaions AND. :

NECESSITY FOR SUPPLEMENTAL AIR TRANSPORTATION,

' es

_ AMERICAN FLYERS AIRLIN Corp.

is hereby”, authorized, subject to the provisions : here-

inafter set forth, the. ‘provisions of. Title IV of the

Federal Aviation Act of 1958, and the orders, rules,

and regulations issued thereunder, to engage in sup-

. -plementak air transportation (including inclusive tour |

charter’ authority) with respect to persons and their

. personal baggage, as follows:

Between points in the 48 contiguous - States of

_ the United States of America, on 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.

The service herein aythorized is subject to. the

terms, conditions, and limitations prescribed by the

Board’s Regulations for transatlantic’ supplemental

air transportation.

The holder shall not (a) advertise its services or

hold itself out to. the public as an-air carrier author-

ized to engage in air transportation unless it includes

the words “supplemental ‘air carrier” in such adver-

_tising; or (b) conduct business in any name other

than that set forth in this certificate, except as ex-

dene herd authorized. 1 by the Board. a

- | ree

. Control of the holder shall not, without prior ap-

plication to. and -approval by the Board, be trans-

. ferred, directly or indirectly, by. assignment, transfer

of voting stock, or otherwise,'to any person who con-

trolled, or participated in control of, as a partner,

officer, or director, any air carrier theretofore found

by the Board to have committed knowing .and. willful

- violations of. the Civil Aeronautics Act of 1938, as .

amended, the .Federal Aviation Act of 1958, or any

‘order, rule,. or regulation ‘issued pursuant to said

Acts. during the period such person controlled or par-

ticipated in the control of said air carrier. Any such

without hearing. No such appli@ttion shall. be denied

‘unless the Board finds, after notice to the holder and |. -

. the parties to the proposed transfer, and after oppor:

tunity for hearing, that, in the event the proposed

transfer is consummated, the holder will thereby. be

rendered -unfit, unwilling, or-unable to conform to the .

provisions of the Fedéral Aviation Act of 1958, and

the rules, regulations, and requirements of the Board

thereunder. For the purposes of this paragraph, a

transfer of 20 percent or more of the voting stock of

the holder shall be. deemed. to constitute prima facie

evidence of a transfer of control so as to. require the

filing of an appropriate application with the Board.

- Notwithstanding any other provisions of this cer-

tificate, the holder shaH at all times conduct its oper- ~

ations in, accordance with all treaties and: agreements

between the United States and other countries, and

- the exercise of the privileges granted by this certifi- |

cate shall be subject to compliance with such treaties

and agreements and to any orders of the Board Assued

pursuant to, or for the purpose of requiring compli-

-anee with, such treaties and agreements. |

. 96

The exercise of the privileges granted by this cer-

tificate shall be subject to such other reasonable terms,

conditions, and limitations required by the public in- -

-.. terest as may from time to time be neue by the *

- Board. |

_ This certificate shall be effective on November .26,

1966, and shall terminate on April 18, 1969: Provided,

ey: however, That prior to the date on which this certifi-

_ cate would otherwise. bécome’ effective the Board, -

_. either on its own initiative or updn. the timely ‘filing.

of a pétition or petitions seeking reconsideration of —

the Board’s order of. April 5, 196 (Order E-24242),

. Insofar as such order authorizes’ the issuance of this .

‘ certificate, may by order or orders extend such effec: a

tive date. from time to time. .

_ IN WITNESS WHEREOF, the » Civil: ‘Aeronautics Board

has caused this certificate to be executed by the Sec-

retary of the Board, and the seal of the Board to be .

es — hereto, on the 5th day of April, 1966.

" HaroLp R. SANDERSON

waa ‘Secretary.

(SEAL) » a. ise

Issuance of this certificate to the holder approved -

* by the President of the United States on —

. 27, 1966. in Order E-24242.

ways, Ine., Trans International Airlines, Ind, and .

World Airways, Inc., which are identical to the |

above certificate have. been. omitted. ].

= era eres a

97 .

APPENDIX.C

'%-23850-.

_ UNITED STATES OF AMERICA

CIVIL AERONAUTIUS BOARD |

" WASHINGTON, D. C. °

- Docket 13795 et al.

| SUPPLEMENTAL AIR SERVICE PROCEEDING

Q :

— x . ®

i . ‘

Decided: March 11, 1966 —

- Certificates issued to American Fryers Airline Corp. “

__Capitol Airways, Johnson Flying Service, Modern

Air Transport, Purdue Aeronautics Corp: ., Saturn

Airways, Southern Air Transport, Trans Interna-

tional Airlines, World. Airways, and Zantop Air ~

_ Transport authorizing civil and military charters:

“of persons and: property between the 50 States of |

the United States and the District. of — :

eo _ Subject to certain conditions. : "

Decision deferred as-to applications of Overseas: Na-

; tional Airlines, Standard Airways,:and Vance In-

of} -ternational Airways for further hearing on isa | |

-i *-* gations, : ty,

_ New Part 378. of the Special Regulations, which

grants indirect air carriér authority to tour opera- .

tors and sets forth: the provisions governing the

conduct of inclusive tour charters by the tour op- —

erators and the supplemental air carriers, being

concurrently, adopted and issued by the Board.

Part: 208 of the Economic. Regulations revised and re-

. issued. so as to‘incorporate therein new definition of* -

charter bai to allow the engagement by the char-

eae. 4

| tering organization of one-third capacity of an air- .

craft for the movement of passengers on a time,

__ mileage, or trip basis and to-set forth therein terms,-

conditions, and limitations governing the operatians

of the supplemental air carriers being issued certi<

ficates under section 401 (d) (3) of the Act.

Except for inclusive tour charters, which are author-

‘ized for a five-year period, certificates are beside is-

sued for an indefinite period. _ -

Decision as to all applicants with respect to overseas

_ and. foreign aspects of supplemental air transporta- .

tion withheld until action: under 6 section ws, of the. -

BS Re se Pence

APPEARANCES: } has

‘Same as in examiner’s decision. and, in n addition, the |

following:

- Berl I: Bovnhand for Allagheny Airlines, Bonanza

Air Lines, Hawaiian Air Lines, Lake Central Air-

— lines, Ozark Air Lines, Pacific Airlines, -Piedmont’ -

Aviation, Southern a and Trans-Texas Air-.

2 ways...

Richard D. Neumann for Holiday Airways.

Howard Boros for Oversea$ National ‘Airways.

_R. P. Smith‘for Purdue Aeronautics Corporation. |

States Overseas Airlines.

OPINION

BY THE BOARD: | Pei sae. e

This is a comaclidusnd proceeding on the applica- °

* tion8 of seventeen applicants seeking certificates of.

aa public convenience and necessity under section. 401 (d)

oe.

‘

> Pa

100,

and six-are not fit, willing, and able; ‘ (5) appropri-— |

ate: regulations should be adopted to implement the

‘authority being granted and preacribe the limitations

thereon. .

Exceptions | and briefs to the Board have beefi filed,

and the Board has heard oral argument.

Upon consideration of the: entire record, we ‘find

that we are in agreement with, the examiner’s dispo-

sition-of the domestié issues with but one significant _

exception. We have decided that rather than final

‘dispose of the applications of ONA, Standard, and

Vance, we-should reopen the record for further hear-

ings before the examiner on the current qualifications -

of the three applicants. Accordingly, except as, qnodi- |

fied herein, we adopt as $u¥ own the findings, ‘conclu-

sions, and recommendations of the examiner on the

, domestic issues contained in his decision which ‘is: at-

_ tached hereto as an appendix."

__ Since -the examiner in his thorough and. carefully

‘considered recommended decision dealt fully with: the

issues in the-case, we will limit our opinion to certain

. A ad

“=

* Conner, ‘Holiday, ONA, Standard, Stewart, and USOA:

——

5 Exceptions ‘and briefs were filed by American Flyers,

Capitol, Conner, Holiday, Johnson, Modern, ONA, Purdue,

Saturn, Southern, Standard, Stewart, TIA, Vance, World,

Zantop, The Flying Tiger Line, Lake Central] Airlines, Local

and Short-haul Carriers, Mackey Airlines, Pan American-

Grace Airways ‘(Panagra), -Trans _Caribbean Airways, and

the Trunkline interveriors.

-..6The examiner. issued-Q single iaidahies covering both ‘the a

domestic issues and the overseas and foreign issues, For con-

_ venience, we are attaching the, examiner’s decision i in its

’ entirety. We obviously do not here adopt the portions the

decision directed to matters that are subject to’ the. — oval

of the Rresident. ’.

f 101

matters raised on exceptions and. our reasons tok the -

a —— reopening.

“Inclusive — Charters

7% major issue in the proceeding involves the ques- _

tion of iriclusive tour charters. These are charters to

tour operators selling packaged tours to ‘individual .

- members of the public. As already indicated, the ’

examiner found that such tour charters could be law-

fully authorized by the Board. and would meet a sub-

stantial public need for low-cost t/ pleasure air -travel.

He further foung that the tour’authorization would

eephomically strengthen - the supplemental | carriers

without hd¥ing a materially adverse effect on the cer-

tificated route carriers. Accordingly, he reeommend- :

‘°ed the gyant of such authority for a five-year period,

subject, however, to a set of comprehensive regulatory

ticketed point-to-point: transportation.

We are in full agreement with these findings and

conclusions and find, in the main, there is no necessity _

to explore them further. However, several. exceptions

warrant comment.

‘Legal Issues. Under the, definition of supplemental.

air transportation in section 101(33) of the Act, we

may authorize supplemental air.-carriers to. engage

solely in “charter trips.” .The an is made that:

- the term “charter trip” does not jaictude charters to

tour operators ‘acting as indirect air carriers for the:

purpose of transporting inclusive tou’ groups. whose

members are gathered from. the general ‘public, and

that charters would be mere subterfuges for individ-

ually ticketed transportation. The argument is based

primarily on the claim'that, while the statute does not

dell out : a — againstinclusive tour dl charters, |

102 ene ae

its legislative history expresses. such an intention.

The examiner correctly rejected this argument.

In our view, the statute on its face clearly leaves to

the Board’s exercise of its sound discretion the power

to define’ the term “charter” so long as we preserve.

the basic distinction between group travel and indi-

vidually ticketed travel. ‘This prin¢iple was estab-

lished in the Transatlantic Charter Investigation,

Docket 11908, and we are persuaded that it governs

this case as well.

In ‘the Transatlantic ease the Board, ‘for the first.

space to two.groups on one aircraft.’ This split- —

chartering was attacked by the certificated route car-

‘riers on the ground that the legislative history of

P.L. 87-528, the Supplemental Air “Carrier Act,

‘demonstrated that Congress intended that the word.

“charter,” as used therein, should not be expanded be- -

- yond its traditional scope. The court “ecisively re-

jected this argument, stating: :

“We are unable to conclude that the term. ‘char- |

ter trips’ has a fixed meaning .... We conclude

Congress intended, although not. without limits,

that the Board should be free to evolve a defini-

tion in relation to such variable facters as chang-

ing needs . . We agree with the -Board that..

_ the legislative history reveals that a prime con-

_. cern of Congress was to mgintain the integrity of

the saier concept—to preserve the distinction

_ between group and individually ticketed travel;

within these limits it is for the Board to evolve

_ reasonable definitions.” *.

2 Orders E-20530, 20581, issued Marci 3, 1964.

* American Airlines, Inc., eteal. Vv. C. A.B. 348 F. 2nd 349

854 (C.A.D.C., 1965). ay aie Mi

Poot

103

Moreover, the sisiaie of novelty, which was pres-

ent in split charters, is absent. here. Inclusive tour

charters are well established in surface transporta-

tion, and their legality has long since been settled, as

against contentions that they are mere subterfuges

~ for individually ticketed transportation. The. question

arose in the leading case of Tauck Tours, and in-

- volved the. issue of whether the Interstate Commerce

Commission .had the power to issue a broker’s license

to a travel agency authorizing the travel agent to

charter buses from motor carriers licensed to en €

only in abarter services. In its first report.

case, Division 5 of the-Commission limited the brok-

er’s authority te sell individual all-expense- tours to

the use of.motor carriers authorized to perform serv-

ices on an individual-ticket basis and at individual-

- ticket rates, on the ground that the proposed services

were not bona fide charters. .On reconsideration,

however, Division 5 concluded that the charters were

lawful. -It recognized that a motor carrier whose au-

thority was limited to charter services could not per-

form individually ticketed services “through the sub-

terfuge of a broker selling tickets to a number of per-

sons who|purchase individual transportation between

two points. ” 1° Such a group would not constitute a

bona fide charter party since “there does not exist an

community of interest among these persons other than

a desire for transportation between identical points.’ aged

. However, a group of. individuals participating in an

all-expense tour venture

®° Tauck Tours, Inc., Extension—New York, N. Y., 49 M. C.C. -

491 (1949).

10 52 M.C.C. 373, 376 (1951).

ar ™ Ibid.

104 -

“have -more than just a mere desire to travel be-

tween the same points. They are participants in

_ * a group which will maintain its identity. for some

* predetermined period of time, be under the direc- .

| tion of a guide, and enjoy substantially identical

accommodations and experiences. Upon further

consideration ‘we are conviticed that individuals

by agreeing to become group members for’ the _ 7

sake of group advantages, achieve a degree of co-

hesiveness such that, even though the group was

organized by applicant, it is entitled through ap-.

plicant as its agent to deal with the carriers as a

group and to buy charter service for the group

from the. carriers PRS eas

| Division 5’s report was stitoned by: the full Commie-

sion applying substantially thé same reasoning. *

A three-judge Federal District Court affirmed the

Commission’s conclusion. In the court’s view “a good —

deal more than bare individual transportation is in-

volved. The tour is attractive. because it is a group

adventure ..... The important thing is that the

Tauck group is a cohesive whole interested in a tour

for pleasure, and not in. mere transportation.” “ This

conclusion was affirmed by the U. S. Supreme Court."

Thus, inclusive tour charters are supported by

precedent =— in the field of surface trans-

12 Ibid, '

18 National Bus Traffic Assn, v. United States, 143 F. Supp.

689, 696-7 (D.C. N.J., 1956). It is true that the court relied

in part on the fact that all-expense tour charters were long’

established in the motor carrier field ‘and upon the absence

of any legislative history evidencing an intention to prohibit .

‘them. However, we agree with.the examiner’s reading of the

decision that these factors were not decisive considerations. _

” 352 U. 3. 1020 basitiek

105

“portation. It is true that the Board has not hitherto

authorized inclusive tour charters in air transporta-

ts tion, but our determinations,not to do so have. been

clearly based on policy rather than legal-grounds. On

_.. the other hand, the Board has not required “affinity”

| of a group before it may itself apply for charter

__-~transportation.“ “And, in the cargo field, it has al-

- - lowed freight forwarders to charter aircraft for

transportation of consolidated cargo, against the —

claim of some parties that this policy. was inconsistent

_ with the Board’s policy of eens agent-ae-

- sembled passenger charters: . |

But it is argued that all of the fovemiing is over-

ridden: by legislative history. It is suggested that be-

cause the Senate bill specifically authorized inclusive

‘tours, whereas the version and nero enacted was

silent on the matter, ‘Congress intended to prohibit

~ such tours. On the contrary, this sequence. of events . ~

_ simply demonstrates that. Congress. intended not to

freeze the definition, but to leave the question open

. for the Board to determine. as a.regulatory matter. _

This conclusion is reinforced by a closer. came of

‘the legislative history.

' During the hearings on the bills, there wasia great

deal of testimony relating to the Board’s regulations

- defining charters as restricted to “homogeneous”

groups. ‘7 The supplementals felt that the term “char-

“. 8 ee, for example, Pan Am. World Airways, et al., IATA :

Agreements, 23 C.A.B. 275, 280-281. (1956) ; IATA ‘Agree

ments, Group Excursion Fares, 26 C.A.B, 55, 756 (1958).

16 International Airfreight Forwarder Inijestigation, _ a

C.A.B. 658, 668-669 (1958).

at Hearings before Subcommittee: of’ Commerce. Committée

°°. on H.R. 7318, H.R. 7512, and H.R. 7679, 87th Cong., 1st Sess.

80, 189, 231 (June 20, 21, and 23, 1961). ao before _

106

ter” should be defined so as to compel the Board to - —

clusive tours as charters. S. 1969, as- reported to the

Senate. on, August 8, 1961, defined charters. so as to

include specifically a ~charter

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