# Appendix Petitioners Brief — World Airways, Inc. v. Pan American World Airways, Inc. > Briefs, arguments, decisions, and more. URL: https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385001_1111%3A11 ## Record - **Collection:** Supreme Court brief - **Document type:** Appendix Petitioners Brief - **Published:** January 1, 1968 - **Citation:** 391 U.S. 461 ## Text ; a» | ax. « Vv. : . oS . | a hoe Pan AMERICAN Wortp Airways, =~ -TRANS Wort © AIRLINES, Inc: and AMERICAN AIRLINES, Inc.,; ee ; ues os “Respondents, | “No, 969 So. Sheet - AMpRIcay: Society or TRAVEL AGENTS, Inc. , Petitioner, 7] ‘. 2 - Pan Aoiaaatas Wort iii Tivo., Trans 1. Woatz _ATRLINEs, Ino. ham AMERICAN Arun, Ino., . - eapendente. ‘ ; ; ne » , : « «* ’ - . . a) e ° . - i os ” i : ’ . e — . . . . . ° : B : ~ . . . 2 * ‘ e : . e ’ {~~ . ' s ; : P 7 i i ; ; : » . a : 3 s . P ° * -- — _—— . : - a ene ‘ ra ~ ~ - —— 5 ee . e | ! . . . ; ? m . . i . a c : : é ‘ a od ’ ’ i ee ; f “a . . 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H ‘ - , af ' ss : a INDEX: TO LEGISLATIVE MATERIAL ‘Senate Bill, S..1969 ab House of ‘Representatives Bill, H, R 7318 .. 7 House of Representatives Bill, HER 7512 - 13b _- Housg Report No. 1177) ee 17> &> 3 Senate ‘Report No. 688 Vanna 91b | Conference Report, House Report No. 1950 173b~ Hearings i in the House of — 267 Hearings in the Senate- 217% Congressional Record: | . . House of Representatives. — 229b Senate - a 234b ‘Public Law 96-661". 240b * lb LEGISLATIVE MATERIALS * - Senate Bill, S. 1969 87th Congress, 1st Session a A BILL To amend the Federal Aviation Act of 1958, as amended, to provide for a class of supplemental air carriers, and for other purposes o Be at enacted by the Senate and House of Reoreainy ' tives F the United States of America in Congress ‘a bled, That section 10i of the Federal Aviation Act of - August 23, 1958, as amended, is amended by redesignating paragraphs (32) and (33) as (34) and (35), respectively, and inserting therein two new: paragraphs to. read as fol- . lows: “(32) ‘Supplemental air carrier’ means an air carrier holding a certificate of public convenience and necessity authorizing it:to engage in ‘supplemental air transportation. *. (33) ‘Supplemental air transportation’ means air trans- portation rendéred pursuant to a certificate of public con- _ veniente and necessity which contains such limitations as to freq lency of service, size or type of equipment, or other- ‘ wise, as will assure that the service so authorized remains supplemental to. the service authorized by certificates of . public convenience and necessity issued pursuant 0 sec- - tions 401(d) (1) and (2) of. this Act.”*’. Sec."2. Section 401 of the Federal Aviation Act is amended by adding to subsection (d) thereof a new para- ' graph (3) to read: 2b Senate Bill, Ss. 1969 - Pi “(3) (i) In the case of an gupltealion for 3 a certificate to engage in-air transportation as a supplemental air carrier, j _ the Board may issue a certificate authorizing the whole or. i any part thereof for such peridds 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 can service of a supplemental air carrier and to conform to. the provisions of: this Act and the rules, regulations, and - requirements of the Board hereunder. “In determining : | whether an applicant for such a certificate is fit, willing, eee and able within the meaning of this paragraph the Board shall give consideration to the conditions peculiar to sup- . plemental air transportation, including the nature of the public need found.to exist and the extent of the obligation imposed on an air earrier engaging in such air transporta- tion to provide the. service. authorized--by the certificate. Any certificate issued: pursuant to this paragraph shall “contain such limitations as the Board shall find necessary to assure that the service rendered pursuant thereto will ‘be limited to supplemental air transportation-as defined _ in this -Act. : = ne ae ~~ tifieate for supplemental air transportation within thirty days after the date of ennenannan of this paragraph shall show— - . . “(A). that it, or its predecessor in interest, was an’ air carrier authorized to furnish service between places '. within the United States either by a certificate of pub- lic convenience and necessity issued by the Civil Aero- nauties Board pursuant to order E-13436, adopted “(ii) If any applicant. who makes application for a cer- *'- oe a 8 Senate Bill, 8.1969 e January 28, 1959, or alia E- 14196, acehea July 8, 1959, or that it or its predecessor has: received interim operating authority from the Board pursuant to sec- tion 1(2) of Public Law 86- 66 l of July 14, 1960, 74 Stat. 527; ° A ' 4(B) that between the effective date of the patiteste or interim operating authority and the date of enact- . ment hereof, the applicant or his predecessor in interest lawfully performed either (1) any portion of the sér- ‘vice authorized by the eertificate or interim operating - authority, or (2) any operations for the Military Estab- lishment of the United States — by: the Board ; - and “«(C) that: such certificate. er. tseies operating au- - - thority had not been revoked or otherwise terminated m by the Board: or had not otherwise expired prior to the enactment of this. paragraph, and is held by the- » original grantee or has been transferred .with Board approval pursuant to sectien 401(h) ; Provided, That - application under this paragraph may also be made by - a person who on the date of enactment hereof had on file an application to the Board: for the approval of 2 transfer to him of a certificate for supplemental air - transportation or interim operating authority, in which ° - ease the Board shall i issue a certificate hereunder if it approves the transfer pursuant to section 401(h) of this Act; : ae a _ the Board, upon proof of gach facts only, shall issue a: cer- - tificate authori izing such applicant to plemental air transportation shall designate the terminal — _ and intermediate points only insofar as the Board shall deem practicable and may designate only the geographical area or areas within which service may be. rendered. Noth- ing in this subsection shall prevent the Board in specifying _ the service to be rendered under: a certificate for supple- . mental air transportation from placing ‘such limitations on such certificate as it may find to be necessary to assure that the services are limited to supplemental air transportation: Provided, That the Board std such limitations AO paragraphs (1) and (2) of subsection (4). f Src. 4, (a) Any air carrier entitled to certification under section 401(d)(3)(ii) of the Federal Aviation Act, as amended herein, may perform operations under its existing. authority for thirty days from the date of enactment of this Act, and if it has filed application pursuant to said sec- tion 401(d) (3) (ii) within said thirty days, until the Board | oP a 5b | Senate Bill, S. 1969 has acted upon such application. Any air. carrier whose application for, certification’as a supplemental air carrier is’ pending before the Board and which (A) has operated ' in interstate air transportation” as a supplemfental air car- rier’ pursuant to: authority: granted -under Board order E-9744.of November 15, 1955, and (B) had an application . for a certificate as a supplemental air carrier pending be- fore the Board on July 14, 1960, may continue to operate in interstate. air transportation under its existing authority until the. effective date of an order of -the Board disposing of such application. Any carriér whose operating authority in interstate air transportation under Board order E-9744 is continuing solely by virtue of a judicial stay of a Board order, insofar as such order would otherwise terminate.such operating authority, i is hereby authorized to continue to op- erate, subject to all conditions and limitations contained in order E-9744 or imposed by. the court, until the court shall lift such stay or until the final disposition of judicial review proceeding, whichever shall first occur. (b) The provisions of this Act shall in in no way affect any enforcement or compkance proceeding or action against the holder of a certificate of public convenience and necessity ‘issued pursuant to order E-13436 or order E-14196 or . against the holder of-interim authority issued under section _. 1(1) of Public Law 86- 661 pending before the Board on the | ‘date of enactment of Public Law 86-661 or this Act, or the power of the ‘Board to institute any enforcement or com- pliance action against such holder subsequent to the date of enactment of this Act with respect to violations of the: Federal -Aviation Act or provisions of the certificate or nt ih, we “ 6b Senate Bill, S. 1969 ; | interim authority or ‘the Board’s. regulations which may have occurred prior to such date. Any sanction which the Board might lawfully have imposed ‘on ‘the operating au- ° thority of an air’ carrier for violations occurring prior to “* the issuang tp such cagrier of a certificate of public con- - venience and eet, Fi supplemental air transportation under paragraph (3)(i) or (ii) of ‘section 401(d) of the Federal Aviation Act as amended by this Act may be’ im- posed upon a. certificate issued to ‘such air carrier under ~ such paragraph. . &) Any application of an air carrier heretofore consoli- dated into the Board proceeding known as the Large Irregu- lar Air Carrier Investigation, Docket Numbered 5132 et al., ‘shall be deemed to have been finally disposed of by the | Board insofar as said application seeks authority to engage ‘ in interstate air transportation, (1) upon the effective. date of’a certificate of public convenience and‘necessity issued to such. carrier pursuant to the provisions of seétion. 401 (d)(3)(i) or: (ii) of the Federal Aviation Act; (2) upon the effective date of an order of the Board denying any application of such carrier for a certificate of public eon: venience and necessity ‘under section 401(d)(3)(i) or (ii) ; - or (3)°in the event such carrier was issue@ authority: by . order E-13436 or E-14196 or interim authority under Public ‘Law 86-661 and ‘fails to file application for a certificate pur- . - guant-to said section,on the thirty-first day after the date of enactment of this Act. RS graph &) to read: . Tb om of Representatives Bill, H. R. 7318 87th Congress, Ist sre -A BILL To amend the Federal Aviation Act 0f”1958, as amended, ‘to provide for a class’ of supplemental air carriers, and for other purposes: “Bett ‘oie by the Senate and House of Representatives : . of the United States of America in Congress assembled; . That. section 101 of the Federal Aviation Act of. August 23, 1958, as amended, is amended: by redesignating paragraphs (32) and (33) as (34). and (35), respectively, and inserting therein two new peragrapns: to read as follows: (32). ‘Supplemental air carrier’ means an air carrier 7 holding a certificate of public convenience and necessity au- thorizing it to engage in’ supplemental air transportation. (33) ‘Supplemental air transportation’ means ait trans- portation rendered ptirsuant to a certificate of public con- venience and necessity which contains such limitations as > . . %) . to frequency of service, size ar type of equipment, or other- _wise, as will assure that the service so authorized remains supplemental to the service authorized by certificates of | public convenience and necessity issued pursuant to sec- . tions 401(d) (1). and (2) of this “Act.” ‘ Sec. 2.° Section 401 of the Federal Aviation. Act ig | amended by adding to subsection (d) thereot a new para- | ‘ome 2 ? ‘Ny : “(3)(i)> In the case of an application for a certificate to - engage in air, transpor tation as a supplemental air carrier, 8b | Rome ‘a Representatives Bill, H. ‘AR. 7318 . the beard may. issue a curtifieate authorizing. the whole ¢ or any part thereof for such periods as may be required bv the public convenience-and necessity, if it finds that the applicant’ is fit, willing, and able properly to perform the service of a supplemental air carrier and to conform to the.‘ provisions of this Act and the rules, regulations, and re- quirements of the Board hereunder. * In determining whether. an applicant for such a certificate is fit, willing, and:able within the meaning of. this paragraph the’ Board shall give consideration to the conditions: “peculiar to sup- . ‘plemental air transportation, including the nature of the ee public need found to exist and’the extent of the obligation imposed on an air carrier engaging in such air transporta- tion to provide the service authorized by the certificate. Any certificate issued pursuant to this paragraph shall con- tain such limitations as the Board shall find necessary to assure that the service rendered pursuant theréto will be limited , to supplemental air transportation as defines in this Act. | “(ii) If any applicant who makes application for a cer- tificate for supplemental air transportation within thirty. days after the oes of enactment of this paragraph ‘shall « show— se — “(A) that it, or its predecessor in interest, was an . air carrier authorized to furnish service between places — _ within the United States either by a certificate of pub-— lic convenience and necessity issued by the Civil Aero- nautics Board . pursuant to order E-15436, ° adopted January 28, 1959, or order E-14196,. pinntind July 8, 1959, or that it or its predecessor has, received interim | . ‘ House : ‘of Representatives Bil, i. R. 7318 : \ operating authority from the Board pursuant to ‘see- ‘tion 1(2) of Public Law 86- 661 of July 14, 1960, 74 “. Stat. 527; ) “(B) that. between the effective date of the eertifi- cate or interim operating authority and the date’ of enactinent hereof, the applicant or his predecessor in : interest lawfully performed either (1) any. portion of | the service authorized by the certificate or interim oper- — ating authority, or (2) any operations for the Military ‘Establishment of the United States authorized ‘by. the Board ; and eg ord Bares eee “(C): that such certificate. or ‘interim operating au-. thority had not been revoked or otherwise terminated by-the Board or had not otherwise expired prior to — the enactment. of this paragraph, and. is: held by the. original grantee or has been ‘transferred with Boatd approval pursuant to section 401(h): Provided; That. | application under this paragraph may also be made by a person who on the date of. enactment hereof had on file an application to the Board for the approval of ‘transfer: to him of - a ‘certificate for supplemental air transportation er interim operating authority, in which ‘ease the Board shall issue a certificate hereender if ‘it approves the transfer pursuant to section 401 (h) ‘of. this Act; eee ae yt the Board, upon proof ‘of stats facts only, shall issue. a ‘cer- , tificate authorizing such applicant: to engage in supplemen- tal air transpor tation to the same extent autliorized in the aepeeeets certificate. or interi im bamactncd ,and subject to :. | House of Representatives &" ‘A. R. 7318 ’ the terms, conditions; ‘and Sleidiatons. attached ther eto “for ; ‘ such period as the Board: deems: proper: “Provided, That - this period sha]l not extend beyond the effective date of an order of the Board denying renewal of the certificate or interim operating authority in a renewal procecding ‘pend- 2h ey ing at the time of enactment hereof. . Oo: a: ‘Sue. 3. Siiseiiie (e) of section 401 of the Federal Avia- eu \ tion Act is amended by adding the follow ing text: “A cer- \ tificate issued under: this section to engage in supplemental | air transpo~tation shall designate the terminal and inter- “ mediate points only insofar as the ‘Board shall deem prac-. . ticable and may designate ‘only’ the geographical area- or areas within which service may be rendered. Nothing | in. r ee ; this subsection shall ‘prevent. the. Board in specifying the. - ‘service to be-rendered under a, certificate. for supplemental . air transportation from. placing such limitations, on such certificate as it may find’ to be-necessary to assure that the serv riees are limited to supplemental air tr ansportation : Provided, That the. Bogrd may not impose such Jimitations upon cértificates issued pursuant to paragraphs: (1) and (2) ‘of subsection (d).” 3 -SEc. 4,- (a) Any air carrier entitled to eertlifieation un. : der section 401(d) (3) (ii) of the Federal Av iation Act, as amended ‘herein, may perform operations under its existing Spurs for thirty days from the. date ‘of enactment of this AC and if it has filed application pur suant to said séction’ _. 4014) (3) (ii) within said thirty days, ‘until. the Board has © ae -acted \upon*such application. “Any: ‘air. ‘carrier w hose. ap- 3 plication for certiteatienty a suppleme ntal air catricr is. 11b House of Representatives Bill,. H. R.7318 Noe _ pending before the Board and which (A) has operated in interstate air transportation as a supplemental | air carrier -- ‘pursuant to authority granted: ‘under Board order 15-9744: of; November: 15, 1955, and (B) yhad.an application’ for a certificate as a supplemental air -carrier pending before the Board on July 14, 1960, may continue to. operate. in : interstate air transportation under its existing” authority until the effective date of an order of the Beard’ disposing of such application. Any carrier whose operating authority in interstate air transportation under Board order E-9744 ‘is continuing solely by virtué of a judicial sfay of a Board. ~order,. ‘insofar as sueh order would otherwise terminate. ~” such. operating authority, is hereby authorized to continue _ to operate, subject to all conditions and. limitatiqns con- ‘ tained in order E-9744 or imposed by the court, until the “eourt shall lift such stay or until the final disposition - Judicial review: proceeding, whichever shall first-oceur. = of enactment of Public Law 86- 661 or this Act, or the power -* i of the: Board to. institute any enforcement or- compliance = _attion against such holder subsequent to the date of enact- - (b) The provisions of this Act shall in no way affect any enforcement or compliance proceeding or action against the holder of a certificate of public convenience and necessity is- sued pursuant to order H-13436 or order E- 14196 or against ‘the holder of interim authority. issied under section 1(1) of Public Law 86-661 pending before the Board on the date: ‘ment of this ‘Act with respect to violations of the Federal tion Act or provisions of the certificate or interim au- -thority or-the Board’s regulations which may have occurred prior ‘to such date. Any sanction which the Board : might ‘lawfally have alien on the operating authority of an air let od | fe Fe aidan vel reaba hegre Tce. arog Abe Bip, LOR Sie hae Nabe esc ToRtiee eee hpi 2a 7th Arcot a ae ° . ; : ; ¢ House of pie ssinasarars Bull, H. R. 7318 f : carrier for ‘Anlidiene occurring prior to the issuance to such carrier of a certificate of public convenience: and neces-" sity for supplemental air transportation under paragraph } - (3) (i) or (ii), of section 401(d) of the Federal Aviation Act as amended by this Act may be. imposed upon a.cer-. tificate issued to such air carrier,under such paragraph. (ec) Any application of-an air carrier heretofore ¢onsoli- . dated into the Board’ proceeding known as. the Large Ir- . regular Air Carrier Investigation, Docket Numbered 5132 et al.; shall be deemed to have been finally disposed of by _ the hand insofar as said application seeks authority to. engage in iriterstate air transportation, (1) upon the effec- tive daté ‘of a certificate of public convenience and necessity issued to such carrier pursuant to the provisions of section 401(d)(3) (i) or (ii) of the Federal Aviation Act; (2) upon - the effective date of” ‘an. order of the Board dentine any application of such carrier for a certificate of public con- venience and necessity under section 401(d)(3) (i) or (ii) ; or (3) in the event such carrier was issued authority py. order K-13436 or E-14196 or interim authority under Public. _ Law 86-661 and. fails to file application for a certificate pur- ‘ suant ‘to’ said section, onthe thirty-first day after = date of — ofthis Act. | : Sc siignasnrsbaartada 13b tae House of Representatives Bill, H. R. 7512 87th Congress, Ist Session | A BILL To amend the Federal Aviation Act of 1958, as i amended, to provide for a class of supplemental air - carriers, and for other purposes Be at pa by the Senate and H ouse of iniasenbalices the United States of America in Congress assembled, That section 101 of the Federal Aviation Act of August 23, 1958, as amended, is amended by redesignating paragraphs . (32) and (33) as (34) and (35) respectively, and =e therein two new paragraphs to read as follows: ~“(32y ‘upplematal air carrier’ means an air carrier holding a certificate of public convenience and necessity au- thorizing it to engage in supplemental air transportation. “(33) ‘Supplemental air transportation’ means air trans- portation rendered. pursuant to a certificate of public con- venience and necessity which limits the holder to perform- | ance of (1) unlimited charter operations on a planeload basis for the carriage pf passengers: ‘and property in inter- state, . oversea, and territorial air transportation, with the word atten’ herein being defined as air transportation . performed . pursuant to an agreement for the use of the- entire capacity of an aircraft, (2). individually ticketed passenger or individually waybilled cargo operations - in _ the frequency: of ‘one -hundred and _ ninety-two flights. per year in the same direction between any single pair of points - in any calendar year, in interstate, oversea, and territorial _ - air transportation, and (3) supplemental air carriers shall have the right of first refusal in the operation of all charter trips in interstate, oversea, and foreign air transportation. ummm - caielamaian = iain j ic... Bes 14b- ecrie House of Representatives Bil, H.R. 7512 | ‘The Board shall implement this section by appropriate | regulations.” | Src. 2. Seetion 401 of the Weders. Aviation Act is- = amended by adding to subsection (d) thereof a. new. para- 4 graph (3) to read : a (3) (i). ‘te the case of an eer ees for a certificate o engage in air transportation as a supplemental air carrier, the Board may issue a temporary or permanent certificate authorizing the whole or any part thereof if it finds that the. applicant is fit, willing; and able properly to perform sup- plemental air transportation: as defined herein, and to. eon- form to the provisions of this Act and the rules, regulations, and requirements of the Board hereunder and if the: Board finds after public hearing’ that such certificate is required | by the public convenience and necessity. - BRAN N M EOD! 5 88 “(ii) If’ any applicant who makes application for a cer-* . tificate for supplemental air transportation within one hun- ; ae dred and twenty days after thedate of.enactment of this | paragraph shall show (A) that, on such date it or its prede- cessor in interest, was an air carrier furnishing services between places within the United States authorized by. a ‘ certificate of public convenience and necessity issued by. ‘the Civil Aeronautics Board pursuant to order B-13436, ~ adopted January 28, 1959, or order E-14196, adopted July _ 8, 1959, to render. such service, and that any portion of .- gueh service for any class of traffic was performed pursuant- to such certificate during such period and (B).that, such’ certificate had not been revoked or otherwise terminated by the Board prior to the enactment of this paragraph, the Board, upon proof of such facts only; shall issue ‘a cer- - 15b House of Representatives Bul, H. R. 7512 posed by: the court: until the court shall lift such i or until the final disposition of the judicial review proceeding, — shall first occur. (b) The provisions of this Act shall inno’ way affect any enforcement or compliance proceeding or action against the .holder of a certificate of public convenience and neces- sity issued pursuant to order E-13436 or order F-14196 pending before the Board on. the date of enactment thereof, or the power of the Board to institute any enforcement or compliance action against such holder subsequent to the date of enactment of this Act with respect to violations of thé Federal ‘Aviation Act or provisions of the certificate or the Board’s regulations which may have occurred prior to such date. Any sanction which the Board might lawfully have imposed on the operating authority of an air carrier of a certificate of public convenience and necessity for supple- ‘mental air transportation under paragraph (3) (ii) of sec- _ tion 401 (d) of the Federal Aviation Act:as amended by this ” Act may be imposed upon a certificate issued to such air carrier under such ae. 16b. House of Represéntatives Bill, H. R..7512 er. tificate or certificates of indefinite duration authorizing such applicant to engage in supplemental air ss aed tion, as defined herein.” *- 3 Src. 3. Subecction (e) of section. 401 of the —e Avi- ation Act is amended, by adding. the following text: “A | certificate issued under this section. to engage in supple-— - mental air transportation shall designate the. terminal and internfediate points-only insofar as the Board shall deem practicable and may designate only the geographical afea or areas within which service may be rendered. Nothing ‘in this subsection shall prevent the Board from placing .° — - such limitations on such certificates as it may find to ‘be - necessary to assure that'the services are limited to supple- : mental air transportation as defined herein.” Sec. 4. (a), Any air carrier presently operating: in in- -terstate air transportation as a “supplemental air carrier” - pursuant to, authority received under order of: the Board : whose application for certification as.a supplemental air | carrier is pending before the Board or is filed. with the ° . Board within a period of one hundred and twenty days . from the enactment of this section, may continue to operate. in interstate, oversea, and territorial supplemental air — transportation as defined herein until the effective date of - an order of the Board disposing of such application.. Any catrier whose operating authority in interstate air trans- _ portation. under Board Order E-9744, adopted November 15, 1955, is continuing solely by virtue of a judicial sta hereby authorized to continue to operate, subject to all conditions and limitations contained in such order or im- © "8 _ Ciel ies ree 17b . -- House, Report No. 1177 + 87th Congress, Ist Session SUPPLEMENTAL AIR CARRIERS ¢ ‘SErremeEn 13, 1961 —Committed to the Committee of the ‘Whole House on the State of the ‘Union and . ordered to be —: hats 5 Mr. Harris, from the Committee on Interstate and Foreign _ Commerce, submitted the following REPORT - [Zo accompany H. R. 7 518] “The Cominittes. on Interstate and Foreign Commerce, to _. whom was referred the bill (H.R. 7318) to amend the Fed- eral Aviation Act of 1958, as amended, to provide for. a _class of supplemental air carriers, and for other purposes, having considéred the same, report favorably thereon with an amendment and recommend that ‘the bill as amended’ do pass. — ~The amendment is as follows: Strike oul all after the enacting clause and insert: That section 101 of the Federal Aviation Act of. 1958 (49 U.S.C. 1301) is amended by redesignating paragraphs (32) and (33) as (34) and (35), respectively, arid by inserting immediately after paragraph (31) the ee new para. graphs: -. * Numbers within dase, used 0 on the right, are the ‘original numbers ‘of the document. These are ‘ee numbers referred to in Petitioners’ Brief.. ~18b_ House Report No.1177,0—~C—iwi(“ ' 24b _ House Report No. 1177 the’ sii of, transfer to him of a s sertifichtt for . supplemental air transportation or. interim operating _ authority, in which case the Board shall issue to such | person a new interim certificate or new interim oeper- ating authority under this section if it approves. the transfer pursuant to section 401 (h) of the: Federal ‘After eiteaied hearings, the ery in 1954, with some 30 applicants remaining to be heard, decided to expedite | , the proceedings by splitting it into two parts— (1) ‘The public ager issues (the Tole ‘to be i assigned the irregular carriers and the scope of oper- ~ ations to be authorized) ; and. %» (2) Consideration of individual qualifications. - Exemption authority for supplementals an On -November 15, 1955, the Board, with three inembore - for and two against, issued a decision (order }-9744) on ° \ . . > e 4 ; e “Re . ° ‘ 2 : — cae 38% | “oan ; House Report No: 1177 - the public interest aspects of the. cage, finding that ‘the -. irregulars: -comprise a “separate: class of carriers” perform- Certification of Aipplementals ". ing varied and flexible sérvices. The Beard found that the -operations ofthese carriers would not adversely affect the certificated route carriers.’ The— Board. determined that” unlimnited charter authority ‘should: be_ granted, ‘together with authority | to perform individually ticketed or waybilled service not to exceed 10 flights per month in. each directions? between any 2 points. The 10-flight limitation. was arrived. at by averaging. the 8 to 12 flights permitted under igs regulations... ‘ This new authorization was granted to all ineiabiers of the class on an interim exemption ° basis, pending the - Board’s final decision on the qualifications of individual carriers and the SS of whether the final authority should be by certi ate or by, exemption. The - ‘Board’s. decision of, November °15, 1955, was: _ » challenged. by the certificated - industry, ahd on July 19, 1956, the Court of Appeals for the: District of Columbia’ —. Cireuit held the order invalid’ beeause th the Board had not -made appropriate findings to support its conclusion that a requirement of certification would be an undue burden on, | the carriers. The Supreme: Court denied a petition for —9— writ of certiorari. On- December . 21, 1956, the court of appeals stayed the issuance of its mandate until 60 days: after the date of the final Board Yecision , tothe Tange ~ OP er q een 5 “ Y ‘ “ . ’ . . : 22 ABD v4 ... ’ 8 ‘ ‘House Report No. 177. at Catan oe The Legislation: proposed hy the Board. woudl have per-” mitted the issuance of certificates authorizing individually — ticketed Service “for sygh ‘periods as _ be required for | ‘the public’ convenience and necessity.” ° One. of the. principal reasons which the ein iad * in its opinion in United Airlines v. CAB for invalidating . the Board’s | action in granting supplemental - certificates. was that the certificates permitted operations between " points selected by, the. carrier and did not speqify the terminal points between whith’ the carrier was-authorized =) engage in| air. _transportation | as required by! section | 401(e) of the ‘act. The limitation on: the: number of trips, . by the court/to violate the provisions. -of . that subsection $n ES * in Tiea of mene the terminal points, was likewise held* prohibiting he ‘Board from. placing a limitation in.a certificate restricting the — of an air cartier to add to... '_ orchange schedules. — - ‘In the hearings, hoth. the Civik “‘Kircudetics. Board. and -~ : the supplemental air carriers testified that such limited individually ‘ticketed operations to supplement service by the scheduled carriers filled a real public need, were essen- . tial to’ ‘the continued survival of the supplementals, and. resulted i in no demonstrable injury to the scheduled carriers. The scheduled carriers opposed any authority for supple- mentals to’ conduct individually ticketed oper ations as a . : Serious threat to the health and prosperity of the scheduled fe industry, citing the poor earnings of the scheduled carriers, for the past 5 years. A w itness for the industry testified . that i in 1960 the 12 domestic trunklines had a net profit of $1,188,000 on gross ‘operating revenues of almost $2 billion. mere aii ei Renee acta ow a e inmnbemmmaninahandes 2 ; ie eeey eer em ‘ . ‘s as ; eC \ : be ee : oe : ee P nate , 44b. a A s e ee 2 a = ie a - bok Ree ar -*. House Report No..1177 . . Regulatory concepts of existing law . The. ‘s0-called certificates issued ‘by the Civil hinsitiititiien Board to thé supplementals were illegal. This illegality | "was not. a mere technical infraction of the act. It was fundamental. The 10-flight individually ‘ticketed grant : violated basic principles of, the economic regulatery philos- ophy of the Federal Aviation Act of 1958. Thus,.the. act recognizes that a carrier’s ability to provide good -public _ - service should not be hampered by artifieial limits on the _ number of regular schedules for. ticketed traffic it can. ' operate: over its routes. The act rejects the restrictionist philosophy. prevalent -in, some foreign countries that. a- governmental bureau should divide the market’ by tan each carrier an allowed.number of flights. - The committee has carefully considered the testimony and ajl- ‘available evidence and failed to: find any Sound © reason why these fundamental principles of the act should ‘be changed. From the standp®int of good public service, and from the standpaint of opportunity ‘for each carrier to ‘ compete and deyelop its business, any air carrier certificated to operate individually ticketed ser rvige over a route should | _be able to do so without: CAB-imposed limitations on’ the ‘frequency of service. If there is room for.competition over a route, the CAB has authority in section 401 to certificate additional carriers. If there is not room for such com. | petition, the Board should not be free to avoid the con- . sequences of competition by limiting the volame of eral to be provided by ane, some, or ‘all of ‘the carriers in th market. Moreover, the committée does -not consider it either feasible or desirable to authorize_an air transpof . / > nein Drege a Dt ee ee House: Report No. 17 | _ & and Walf unregulated. € committee recognizes, however, that: there may be * exceptional circumstances ir which, for a limited period of. -. time} it’ may be desirable for a carrier’ not regularly — certificated for a route to, be authorized to condutt ticketed operations over the. route. ‘Thus, during fhe /Christmas holidays and other periads of peak or. unusual traffic de- _ mand, where, the eapacity yf the carrier 6r carriers serving the routé may be insufficieht to meet thd demand, it may be desirable and economicglly: sound fgr: the’ Board to permit’ another carrier: to pro 4 ppplemental service for a temporary period.. The special operating authorization ‘under the new section 417 is designed to meet this situation. “~ to cover violations of the economic provisions of title IV ~-and of certificates issued thereunder. This has been ac- complished by incorporating into the reported bill the ~. . provisions of H:R. 7303, a bill, recommended by the Civil Aeronautics Board to authorize the imposition of civil pen-. alties in certain cases, to permit a civil aed of not to exceed$1,000 for each violation. INTERIM OPERATING AUTHORITY | ' The interim operating authority in the nature of “orand- _ father” provisions in sections 5 and 6 of the reported bill are designed to permit the existing supplemental carriers "48 ee House ~— No. 1177 to operate. until such time as the Dent: can pass upon: _earriers involved. ‘applications for new certificates. under the terms of this | legislation. ‘The committee believes that the provisions of sections 5 and 6 strengthen the bill and will have the effect of eliminating various ‘complexities resulting from a series of exemptions, orders, and stays, without. injustice. to the som : - —14— Section 6 of the bill requires any carrier desiring to con- tinue to operate in the future as a supplemental air carrier to.file a new application under section 401(d)(3) seeking such certificate within 30 days from the timé of enactment . of the bill. If no application for a new certificate is filed within that: period, the carrier’s present: authority will terminatg, whether derived from an exemption, a. , certifi. ——_. _ cate, _or interim - operating authority. ‘under Public Law ‘86-661. Any carrier which files an application for a certifi. . cate within 30.days is permitted to continue to operate ’ under its present authority until the Board acts under: | = section 5 of the bill. When the Board acts under section 5, . the existing authority of a carrierawill terminate, whether that authority is derived from a certificate, an. exemption, 7 or. interim operating authority under Public Law 86-661, If a carrier files a new application for a eertificate as a~ , ... supplemental air carrier under section 401(d) (3) withm 30 days after enactment of this bill, the Board will next con- sider whether such carrier should be issued new interim _ authority to engage in supplemental air transportation pending Board action on ‘the certificate application. The committee is aware that the. issuance of -new interjm au- | thority identical to that which the carriers now hold, rather e: 4 9b | "ewe ‘Report No. 1177 than an . extension of their’ present certificate o or exemption, may appear to be an ‘unnecessary step.. Only those who have been forced to wind their. way through the Chinese ‘maze of orders and exemptions can appreciate how directly the: public interest would be.served"by the issuance of a new single order clearly specifying what carriers are permitted. to conduct what — pending action on - ‘their certificate ‘applications.- | The Board is directed to issue. new interim’ authority to . . four categories of carriers. As of this time the first cate- gory .consists of a single carrier, Vance Roberts, which - was given operating’ authority by, the Board pursuant to — section 1(2) of Public. Law 86-661. Since the Board has __ just acted on this application: within the last few w months, - aoe the bill requires the automatit-issuance by the Board of jean A "eee ae oper ating authority without any further show- ing by ‘the carrier... . Ried ‘The. remaining three categories. of carriers s holding some form of operating authority.from the Board must satisfy certain specific requirements before the Board is required toissue new interim operating authority. to them. These requirements have been included in section 5 by: the com- mittee to insure that. the effect of the grandfather provi- sions is. to avoid hardship by permitting legally operating — ° carriers to continue to operate, and not to revive dormant / 2 —earriers which have not operated. A earrier which is not je now operating will have the same right as a new applicant to apply for and receive a certificate as a supplemental air carrier.- Justice does not require that such a carrier be permitted.to begin operations® prior to the time that the Board has passed on its application for a certificate. ® ~/ . . _ °5Ob House Report No. 1177 A carrier in one of these three categories must hi dita to showghat between the’dates of issuance of its operating’ authority and of the enactment of this bill, it performed a substantial portion of the servicetfputhorized by its certifi- cate or other oper ating authority or substantial operations in overseas or foreign. air transportation authorized by the - Board or substantial operations for the Military Estab-- — lishment as authorized by the pick oa certificate or operating ‘authority has-no been revoked or otherwise. terminated b¥ thé Board; and that the certificate or operat- ing authority: is held = the eens grantee or has been / ifm ‘ ‘qematorred with the Board’s approval. Special provision is made for. an application for transfer -which may be pend- ° ing at the time of enactment of‘ the bill.. The following, . then, are the three categories of carriers which may be” entitled to receive new operating authority under section . §, The categories are mutually exclusive. A earrier is in one category, and one only, or in none. ' The following carriers were authorized to furnish ser- . vice between places: within the United States by a certifi- . cate issued ‘by the Board pufsuant. to order E-13436, of ‘’ January 28, 1959. Special circumstances relating to such carriers. are noted. In the absence. of such notation; the committee is aware of no circumstance ‘which would pre-. ‘vent their receiving interim ‘operating authority. ee ier | é S1b - House Report No. 1177 oh CARRIERS > American “Flyer s “Airline. Corp. Seg a Inc. hasanabi + Ine. Aviation Corp.: of Seattle, d/b/a Westair Transport - Blatz Airlines, Inc. Capitol Airways, Inc. Coastal Air Lines (formerly Coastal, Cargo Co., Inc.) _ Conner Air Lines, Ine. ....... | Sas ee General Airways, Inc. ..... cee Imperial. Airlines, Inc. (for- merly Regina Cargo Air- lines, Inc.) - - Johnson Flying Services, Ine. ~ Paul Mantz Air Services = “Associated Air Transport, ; COMMENT Certificate expired May. 30, 1961; no application for : renewal was filed. Author- ity terminated by Board | Order . E- -16734 of. April 28, 1961. | e , “Application for transfer and renewal of certificate pend-- ing. : 3 No transport operations per- formed in supplemental — air service’ during” test period. : Certificate sold by trustee in _ bankruptcy but no appli- cation for. transfer to the purchaser has been filed. eles PTE Are RIE LEC President Airlines, Inc. (for- - Ce ues: - Stewart-Air Service —. i ad °. 4 . FLOR! NGI ELE LRAT OILY PITS DAG iE PRB ie aT ‘operate i in interstate air a as a ) pannel 52b. . ar - : House Raper No: 1177 .! “CARRIERS | # % ‘wonibinte ~. Modern Air Transport, Inc. * Overseas National Airways merly California Eastern . Aviation; Ine.) — c Saturn, Airways, Inc. (for- : merly All-American ,Air- rs ways, Inc.) ° as Sourdough Air Transport ” Southeln. Air Transport, ee eee Standard Airways, Inc. ‘Transocean Airlines 2 ¢ °° |. given exemption authority: for suppléimental air service by Order E-9744, but lave. no ‘applications | for. certificates * - pending before: the Board because their operating author- ity under the exemption order was specifically. terminated - by the Board ih Order E-13436. .These carriers. appealed ' er denying a certificate and. revoking their thority to the courts and are now operafing » under a judigial stay pending review. Certiorari has been. denied by, the Supreme ‘Court, but a petition for recon-. sideration of this action is pending. Cc riers. in this cate- . gory are Central Air Transport, Inc., Curry: Air: sTransport, Ltd., Great Lakes’ Airlines, Inc., and Wans-Alaskan ‘Air- : * lines. Section 6 provides that these carriers ure ‘author- to continue Yd operate subject to all conditions: con- | * ‘inka rer E-9744 or imposed by the.court until the: . ‘court shall lift its’ stay or until final disposition of the jateinlgpeeanting: ) NEED FOR LEGISLATION ip The supplemental carriers, constitute an * important ele- ° ath in national defense. During -the Berlin airlift; with. ~ only 5 percent of: the Nation’s civil air transport capacity, _ these carriers’ moved approximately 25 percent of the pas- sengers and 57: percent of -the cargo, carried by civilian aircraft. In 1950, the supplementals supported the Korean a airlift by supplying over half the commercial capability _ requested by the military. The supple entalfew the first . = d planes to Vienna in 1956 to provide airlift for : refugees. In the Lebanon crisis, the suppleme als offered the military 38 four-engine, aircraft within 4 hours. . a : : . . 9 ° ‘ - 3 % L a Section : pA House Report No. 1177 7 The Départment of the Air Foree, in a letter fiateded , hereafter in this report, stated that continued existence of © the supplementals is a real value in terms of national > vers fense. | | The Civil Aeronautics Board in ‘December 1955 shenen: terized the supplementals as: oN ‘Yeserve air fleet, capable _°. of being called into’ action to meét emergency. transporta- - tion needs witha minimum 1 amqunt of notice.” 1 Enactment of .this legislation will give the eiiiiiabaiteelt | industry a more permanent role in ait transpoftation. It will permit the industry to make plans for the future and to complete financial arrangements , for the purchase of | modern. equipment requiring” amortization over a period of years., A more: permanent status will brighten the eco- nomic outlook for the industry which, a witness testified «i an’ | E the hearings, has shown losses from 1957 to ‘daté, after : making a profit in 5 of the’7 on between 1950 and 1957. o o maniens Fy ii 6: TION E XPLAN ATION OF THE “COMM ITTEE AMEN DMEN'’ t os The’ legislation por pheoneiik 3 is ; needed to stabilize © as ‘the supplemental industry, which has existed i in an. atmnee- phére of uncertainty for many years- X. ad The delbivitsine is a section-by-seetion sinihdaininltan of the — substitute amendment repor ‘ted by the committee. Unless- otherwise indicated, existing: law- airs ict to is the Federal : Aviation Act of 1958. - * ~ | an eo . O * This section would ‘amend section 101 of existing law by : adding a new paragraph (32) defining the term “supple; - ° ‘ a eh \ i or _*% ¥ ~56b * 4 House Report No. 1177 mental air carrier” anda new ‘paragraph (33) defining ' the term “supplemental air transportation.” Pet ys “Supplemental.air carrier” would ‘be defined as an air - carrier holding a certificate of public convenience and ne- ‘cessity authorizing such air carrier to engage in supple-— mental‘air transportation. sa one - “Supplemental air transportation” would be’ defined as ‘charter trips in air transportation rendered pursuant to a. certificate. issued by the. Civil Aeronautics Board to sup- plement the scheduled service authorized to be performed : by. the certificated route air « riers, but would not:ifelude the transportation of-mail ‘aircraft. . i! nee Section 2 7 ee This section would amend section 401(d) of existing _ law by adding a new paragraph (3) which‘would authorize the Civil Aeronautics Board to issue to any applicant, other . than a certificated route air carrier, a certificate of public convenience and necessity to engage in all or any part of the supplemental air transportation covered by the appli- ‘ cation. The Board could issue .such certificate for such periods as it determines that the transportation for which _ authority is sought is required by. the public convenience and necessity: Before issuing such a certificate, the Board | _ would be required to make a détermination that the appli- - ¢ant is fit, willing arid able to perform ‘the transportation authorized by the certifieate and to conform to the provi- « , Sions of existing law and the regulations of the Board issued thereunder. Under the Amendment to ‘éxisting§ law made by section 3 of the committee substitute, each supple- " mental gertificate. would designate the terminal and inter- 35 ; © » 4 a 7 ee e m we 2 ‘fe, j ; . ~ . = ws . House Report No. 1177 ® mediate points between which the air carrier concerned ‘could operate, or, if the Board determines that such desig- . nation is not preticable, the certificate would designate the geographical area or-areas: within or betweén’ which such air carrier éould operate. The standard of fitness to - be. applied by the Board'to an ‘applicant for a supplemenfal certificate could vary according to the scope of the trans- portation authority granted by the certificate. It is-obvious,’’ for. example, that fhe fitness requirements of the Board os -. @ - | with respect to the nancial resources of? an applicant .- eould vary considerably as between an applicant seeking - unlimited authority to engage*in supplemental air trans- portation within a large geographical: area and an appli- - cant seeking limited authority to engage in such transpor- . ‘tation between two specific points. The Board also wefild be required to include-in each, supplemental certificate such limitations as it finds necessary: to insure that the service _rendered thereunder will be supplemental to.the scheduled service authorized . be performed by certificated route air carriers. Section 3 This section would amentl section 401(e) of existing. aie by dividing it into’ six numbered paragraphs as follows: e &, Paragraphs (1) and (2) would repeat “provisi "presently contained in section 401 (e) ofexisting law * lating to terms of certificates held d by air carriers) without : substantive change. 2: Paragraph (3) woud be added to such section 401(e) a of existing law. sO as to require that each ee : ‘ . / é : ‘ Ly / ' : : : : , 98b _ House Report No. 1177 certificate towne’. -by the Civil Xeronauties Board designate the terminal and intermediate ‘points between which. the | air carrier is authorized to operate, unless the Board de- termines that such designation of points is not practicable. If the Board determines that such designation of points is | not practicable, it would’ be required to designate the © geographical area or areas within or between. which’ the ’ air carrier is authorized to operate. . Paragraph. (4) would repdat the provision of such section 401(e) of: existing law which prohibits the imposi- tion of limitations on a certificate of public convenience. 3 and necessity restricting the right of an air carrier to change schedules, equipment, accommodations, and facil- - ities for. performing the authorized transportation as may ' be required by the development of the business and the public demand. This provision’ would be amended so- as to permit the Board to impose such limitations on a sup- plemental certificate whenever the Board deems it neces- A sary in order. to insure that the service’ rendcred there- under will be supplemental to the service authorized to be rendered by-certificated route air carriers. The imposition of such limitations would: continue to be prohibited with . respect to certificates, issued to scheduled route air earriers, 4 Paragraph (5) would repeat the provisions of section | 401(e) of existing law (relating to operations of air car- | riers — an: emergency) neces substantive change. _* Siiaiiad (6) repeats the 5 provision of section 401(e) | of existing law authorizing any air carrier to perform charter trips or any other special service, under Board oe t 59> House Report No. 1177_ t regulation, without regard to points specified in its certif- icate. This provision would be amended so as to exclude _ from this authorization any air carrier” hojding a supple- ~ mental certificate issued by the Board under the proposed ~ | new section 401 (d) (3). Section 4 : ‘This section would add a new section 417 to existing law ‘ to permit the Civ# Aeronautics Board to issue to a sup- | plemental air carrier a special operating authorization - under which such air carrier would have limited authority . to eigage in air transportation, temporarily, between speci- fied points. It would be under this provision of the com- " mittee substitute that supplemental air earriers could be a authori to engage in individually ticketed and individ- ually waybilled operations. Subseetion (a) of the proposed tiew section 417 would z grant the-Board authority to issue: a special operating au- — thorization to a supplemental air carrier (but not to a certificated route air carrier) to engage in air transporta- tion temporarily between specified points. Such’ authoriza- tion could be issued only if the Board finds, after an inves- _ tigation, that the capacity for air transportation between particular points in the United States is, or will be, tempo-. rarily insufficient to meet the requirements of the public or | the postal service, or, that there is a temporary require- ment for air transportation between two points, one or both. of which are not regularly served by any air carrier. The Board also would be required to find that a supplemental air carrier can provide the additional service temporarily snes in the public interest. ee ee ee 60b _ House Report No. 1177 Subsection (b) of the proposed new section 417 would require, in effect, that each’ special operating authoriza- tion contain such limitations as the Board determines to be necessary to insure-that the air transportation author- ized thereunder will alleviate the temporary insufficiency — in air transportation found to exist; without a significant _ diversion of traffic from certificated route air carriers hold- . ing certificates authorizing them to engage in air transpor- ‘- tation between-the points involved. No such special operat- ing authorizatien could be issued for more than 30 days. However, the Board could extend a special operating au- — _ thorization for additional periods aggregating not more than 60 days, thus enabling the holder of such authorization to continue operations for a total of- not more than 90 days. ‘This subsection also would provide that a special operat- ing authorization shall not. be deemed ‘a license within the meaning of section 9(b) of the Administrative Procedure © - Act. The purpose of this provision is-to make it clear that such authorization is not to be considered a license to engage in ‘any activity of a continuing nature such as _ would enable the holder thereof to file an applicgtion for . | renewal before the expiration of the authority granted ° and continue to operate until the. Board could dispose ‘of such renewal application. This provision. would not pre- vent the holder of a. special operating authorization from applying for a renewal thereof, subject to the limitations: contained in the proposed new. section -417, but it would ' prevent such holder from continuing to operate after the expiration of such authorization unless the Board had: _ affirmatively renewed it. Subsection (¢) of the proposed new section 417 would re- . ‘ . quire the Board to prescribe regulations establishing proce- ear ~_ 61b- House Report No. 1177 dures for the expeditious handling of requests for special wa operating authorizations. ‘The Board would be required-to include ‘in such procedures written. notice to certificated / Toute air-earriers authorized. to engage in air transporta- | “tion between the points involved so as to give such air car- riers»an opportunity to protest the issuance of a special — operating authorization affecting. : such points. Since the | issuance of a special operating authorization would de- pend upon the fact that air transportation being offered . between particular points had been found ‘to be tempo- rarily insufficient to meet the needs of the public or the postal. service, it is obvious that the Board must be able to act with reasonable speed i in order to- alleviate such tempo- ~ rary insufficiency of air transportation. Therefore, there is no specific requirement that the. Board conduct a hear- | se | a a _ ing at which it would be required” to. take evidence from opposing parties, and oral argument before the Board is left to its discretion. The Board could conduct such a hearing and provide for oral argument if the circumstancés of the case would permit such procedures without eausing undue delay in the issuance of the special operating au- . thorization involved. The diseretion vested in the Board ‘ _is necessary to enable it to carry out its duty, under the ‘proposed new section 417, of handling requests for special’ operating authorizations as expeditiously as possible, tak- . ~ ing into account the degree of emergenéy involved. ‘Section 5 Under. subsection (a) of this section the Board would be. required to issue a new interim certificate or new interim operating authority (in the nature of temporary grand- oS ee Z 62b House Report No. sai cs ' father rights) to any applicant who, within 30 days after: “the enaetment. of.this legislation, app ies to the Board for a certificate to engage in supplemental ir transportation and can show the ae ‘ pial : (1) that it holds authority previously granted by the : Board to engage in interstate air transportation as a supplemental air ¢arrier and has an application pend- ing before the Board for certification as a supplemental air carrier which was filed before July: 14, 1960 (the date of eriactment of Public Law 86- €61, enabling -the Board to authorize supplemental air transportation on — _ @ temporary basis) ; 4 (2) that it has conducted substantial operations under such authority, or substantial operations (au- thorized by the Board) in oversea | 6 foreign air trans- . portation as a supplemental or large irregular air car-_ zz ‘Tier, or’ substantial operations (authorized by the Board) for the Military Establishment of the United - States; (3) that the operating authority held by the ap- plicant had not been terminated by the Board, or had not expired, before the enactment of this legislation (such authority would be deemed to have been so ter- ‘minated if-the Board had issued a final order to that effect on or before the date of enactment of this legis- S. lation, notwithstanding a pending judicial review of _ such Board order) ; and - (4) that such operating authority is. held a the original ee or "has been transferred to the ap- - 63b ‘House Report No. 1177 " ° plicant with Board approval. (Provision is also made forthe extension of grandfather rights under this see- tion to a person who has an application pending before the Board for approval of a-transfer to hiin of operat- | ing authority referred to in this sectién, but the Beard “gould not extend grandfather rights to such person - unless it approves such bei sounded . | The new ‘Interim anitidaii or new interim authority is- sued by the Board under this. section would replace the certificate or interim operating authority held by-the ap- plicant at.the time of the enactment of this legislation and‘ would be valid until the Board. grants or denies the applicant’s request for the supplemental certificate au-- . thorized to be issued by: the Board under the cia new section 401(d) (3). Subsection (b) of this saaidion would enable : an air carrier - which holds interim. operating authority to engage in sup- _plemental air arabe under Public Law 86- -661 to oo qualify for new interim sethieatiy (in the nature of tem- porary grandfather rights) by applying for a supple- mental certificate under the proposed new section 401(d) (3)... . within the 30-day period following the enactment of this legislation ‘and by showing that it or its predecessor re- ceived interim operating authority under such Public Law - 86-661." Subsection (c) of this. section ‘week prowide that a a new interim certificate or new interinf authority issued under this section shall not be deemed to be a license within the . meaning of section 9(b) of the Administrative Procedure _ Act. The purpose of,,this provision is to make it clear _ E ; { $ 64> "House ii No. ier . that any ‘ugh certificate or authority would: be valid only ay until the Board grants or denies the applicant’s request for “@ supplemental certificate under the new section 401¢d) (3) proposed by section 2 of- the committee substitute.. °In | other words, the certificate or authority issuéd under sec-- tion 5 shall not be eghsidered a license to engage in any activity of a continuing ‘nature sMas to enable the holder thereof to file an application for renewal and continue- to’ ° operate until the Board can dispose of salle bcnsiumen ap- - plication. , | Section 6 Subsection? (a) sa (b) of this section’ would enable any - air carrier, with certain exceptions noted in the. explana- tion of subsection (c) of this section, which is presently operating in air transportation as a supplemental air car- rier under authority previously granted by the Board to continue its operations, for a limite? period of time;. under _ the terms of such authority. If such air carrier does not as file an. application with the Board for a supplemental cer- tificate under the. proposed new section .401(d) (3) within the 30-day period following thé enactment thereof, its au- - thority to operate i in air transportation as a suppleniental ; air carrier, previously granted by the Board, would be: terminated upon the expiration of such 30-day period. ‘If such air carrier does file: such. an application within. such - 30-day period, it would. be able to continue its operations * _ under the terms of the authority previously granted, until - ’ the Board grants or denies the isstiance to such air carrier of a new interim certificate or new interim _— ( tem. ro 8 + House Report No, 1177. porary grandfather right) andes section: 5 of the. commit- | tee substitute. As- noted previously in the explanation of. such séction 5, the new certificate or authority issued there- : “under would be valid until the Board grants or denies such air carrier’s request for a supplemental certificate authorized to be issued by the Board under the erponed : new section 401(d) (3). -. Subsection: (ce) of this: section would permit certain air. carriers who pieviously received authority from the Board . _ to operate in air transportation ‘as supplemental air car- riers, and who are presently continuing. their operations solely by virtue of a judicial stay of an order of the Board - terminating such authority, to continue their operations , until such judicial stay.i is lifted or until the final disposition of the judicial review proceeding of: such Board order, | | ~ whichever first occurs. The significance of this provision is that it would permit a group of air carriers (referred to’as ‘the “Great Lakes group”) to continue operations until the .courts have finally disposed of :their case. The © operating authority of this group was previously ter- “minated by the Board because they were found to’ have operated. illegally. Of course, this provision does not. - prevent any air carrier in the so-called Great Lakes group from applying for a new supplemental certificate au- thorized to pe issued by the Board under the proposed new section aah (3).. Section 7 \ This section would preserve to the Board authority to —, or maintain enforcement proceedings against any ten > 66D. - House Report No..1177" air carrier which titi a new. interim certificate or new interim authority under the grandfather. previsions of this legislation, or obtains a new supplemental: certificate _ authorized to be issued by the Board under the -proposed new section 401(d) (3), for violations committed by such ’ sair carrier: with respect to the provisions of existing law, : _ the terms of .any certificate or other operating authority held by such air carrier, or. Board. regulations, . without regard to when such; violations occurred. This provision also would permit the. Board to impose sanctions for such: violations pon (1) the existing authority held by the air - carrier concerned, (2) the new interim certificate or new mak interim authority issued under the grandfather provisions of this legislation, or (3) the supplemental certificate issued under the Proposed new section weRSIKe Section 8 This section seovidie that applications of. air carriers’ filed ‘in the Large. Irregular Air Carrier Investigation (Docket No. 5132, and others) would be deemed to have been finally disposed of by the Board on the enactment of ° this legislation. The investigation referred to was begun by the Board in 1951 and had as one of its purposes the | - determination by the Board of the proper role. of supple- mental air carriers in this Nation’s system of air transpor- — tation. Since this legislation would amount to a policy _ declaration by the Congress as to the role of supplemental ' air carriers in our system of air transportation, it is appro- ' priate to provide for’ the termination of the Board’s investigation into this question upon. the enactment of this —— | ' | | ". House Report No. 1177 ‘Section 9 | '~—w This section would aménd section 901(a) of existing law so..as to enable the Board to impose civil penalties for» | violations ‘of the economic provisions of existing law, and . the regulations and orders of the Board issued thereunder. At the present time such. violations are subject to criminal » . “prosecution, under section 902(a) of existing law, if such violations are committed-“knowingly and willfully. ” In the case of minor violations or actions falling short of knowing © -and willful misconduct, criminal prosecution may be too drastic or inappropriate. The availability of the. civil penalty wouldtenable the Board, in acting upon less serious ° violations, to improve the enforcement program with: . respect to economic violations by speedily imposing civil’ ~ - penalties, thus avoiding situations such as have existed in the ‘past where. offenders have been: able to persist in- violations during the time required to prosecute a. formal proceeding or court action. This section also would add to .- the civil penalties section of existing law a’ provision. ( similar to the provision applicable ‘in. the case of criminal penalties) that, if any economic vidlation is a continuing one, each day of such violation shall constitute a separate offense: No change is made in the amount of the: civil penalty which could be imposed, which amount is set forth - in existing law as “a civil penalty | of not to exceed $1,000” for each violation. The Board would have authority to . compromise any “eivil penalty imposed by. it. | The amendments to the civil penalties section, of existing law proposed by this section of the committee substitute would. not be limited in application to violations com- House Report ‘No. 1177 mitted by supplemental air carriers, but would include - violations by ndasataiaes route air carriers or any other . ‘ _ person. Since this section of the, committee suibatitate would not ~. take effect until the date of enactment of this. legislation, ‘the Board could not impose civil penalties for economic violations committed before such date of enactment. ce Section 10 so as to preserve the criminal penalties contained in such section’ for knowing and willful violations ns. of the economic S - provisions of existing law. ‘Such section 902(a) contains _ an exception clausé which excepts from. the provisions ‘of. such section’ violations “for which no penalty is otherwise herein provided.” Under the amendment miade by section 9 of this legislation, economic violations would be subject . to the civil: penalties. provided for in section ‘901(a) of. oe existing law. If the ‘phrase “for which no penalty i is other- . wise herein provided” contained in section-902(a) of exist-. ‘This "tyetion would. arn section 902 (2) ‘of extntini law ing law is.interpreted to refer to violations for which’no . | penalty i is otherwise provided in the Federal Aviation Act of 1958, rather than violations for ‘which no ‘penalty, is oye i. otherwise provided i ‘in ‘such section 902(a), the application _ of civil — to economic violations would place such - _ violations within the exception clausé of: such section | _ 902 (a). To prevent the possibility of such an interpreta-- . _ tion, the language ¢ of the exception clause ‘would be- changed. - - . . oe te _ to read as. follows: “for which no penalty is. otherwise | - . : provided i in this section. 4 Thus, it would be clear that the - criminal penallties remain applicable | 0 economic violations. a ag he ? . oA - 2 : iat ; . ; et a j 68b eee ; ; . —a, - -- House Report No, 1177 oe : ‘Bection.21 . Re ON ae EN pce Oh cS Roe eee This section would make. technical amendments to. con- form the table’ of contents contained in the first section ‘of - existing law with the changes made. ’ ‘by the committee substitute. a Pato ater CHANGES IN EXISTING LAW In aniline with clause 3 of Ryle XIII of the gules of the House ~-of Representatives, changes in existing law __made by the bill, as introduced, are. shown as follows (existing law proposed | to be omitted i is enclosed in black -. - brackets, new matter is printed i in italics, existing law in : + which no change is proposed is shown in roman): |. "FEDERAL. AVIATION ACT OF 1958 Ee & ease ® ‘TITLE I—~GENERAL PROVISIONS a DEFINITIONS _ "Sze. 101, As wied in this. Act, unless the ‘context ig. wise requires— “i A 2 _ * . « *. “(32) ‘Supplemental au carviee” means an air carrier. holding a certificate’ of public convenience and necessity. ; authorizin 4b 0 engage in ee: aur transportation. 33) “Supplemental air transportation” means. ar trans- : aes portation rendered pursuant to a certificaté of public con-— ventence and necessity which. contains such limitations as , to frequency of service, sige or type of equipment, or " obnerwosee, 4 as will assure that the service - -$0 authorized ae Bier ee - aie ee er Tn bee “- 70b House Réport No. 1177 remains supplemental to the service authorized by certifi- ‘cates of publie convenience and necessity issued pursuant, — to sections 401 (d) (2) and (2) of this Act. ow [(32)] (34) “Ticket agent” means any person, not an air carrier or a foreign air carrier and not a, boria fide employee _of an air carrier or foreign air carrier, who, as principal or agent, sells or offers for sale any air transportation, or negotiates for, or holds: himself out by solicitation, advertisement, or otherwise as one who sells, provides, furnishes, contracts or arranges for, such transportation. [(33)], (35) . “United States”: means. the several States, | "the. District of Columbia; and the several Territories and possessions of the United States, including the territorial ; , waters. and the overlying airspace thereof. e * * * * TITLE IV—AIR CARRIER ECONOMIC REGULATION | ‘CERTIFICATE OF Pustic. ConVENIENCE AND > Necesstry CERTIFICATE REQUIRED “Gao. ‘401: (a) No air carrier shall engage in any air transportation unless there is in.force a certificate issued by the Board authorizing such air carrier to engage in such transportation. | APPLICATION FOR CERTIFICATE | . Go a (b) Application for a certificate:shall -be made in writing to the Board and shall be so verified, shall be. in such form. and contain such information, and shall be accompanied: -_ by such proof of service upon such interested persons, as _ the Board shall by regulation require. « ¥ > 7b | ra Ho ouse Report No. 117 NOTICE OF APPLICATION ~ (e) ‘Upon the filing of any such application, the Board shall give due notice thereof to the public by posting a’ notice of such application in the office of the secretary of thé Board and to such other. persons as the Board may by | regulation. determine. Any interested person may file with - the Boarda protest or memorandum of opposition to or in support of the issuance of a certificate. Such application shall be set‘for public hearing, and the Board shall dispose _ _of such application as speedily as possible. ASSUANCE -OF CERTIFICATE ; (d) (1) The Board shall issue a ‘certificate authorizing the whole or any part of the transportation covered by the application, if it finds that the applicant is fit, willing, and able to perform such transportation properly, and to con- form to the provisions of this Act and the rules, regulations, ‘and: requirements of the Board: hereunder, and that such transportation is weeiinell by fhe public convenience and aie otherwise such application shall be. denied. ' (2) Inthe case: of an application for.a certificate to _ engage in temporary air‘ transportation, the Board -may issue a certificate authorizing the whole or any part thereof: - for such limited 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 such transporta- tion and to conform to the provisions of this Act and the Tules,’ regulations, and requirements of the Board here- _ under. m™« 712b House Report No. 1177 ~ (3)(i) In the case of an application jon a certificate to “engage in air transportation as a supplemental air carrier, the Board may issue a certificate. authorizing the whole or any part thereof 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. _- service of a supplemental air carrier: and to conform to the provisions of. this Act and the rules, regulations, and requirements of the Board hereunder. In determining ‘whether an applicant for such a certificate is fit, willing, | and able within the meaning of this paragraph the Board shall give consideration to the conditions peculiar to supple- mental air transportation, including the: nature of the’ public need found to exist and the extent of the obligation imposed on an air carrier engaging in such air transporta- . tion to provide the service authorized by the certificate. Any certificate issued pursuant to ths paragraph’ shall. : contain such limitations as the Board shall find necessary to assure that the‘service rendered pursuant thereto will be limited to supplemental air transportation as defined im this Act. (ui) If any applicant who makes ariptiontion for a . certificate for supplemental air transportation within thirty: o days after the date ei — of this paraoreen shall show—" os (A) that it, or its predecessor in interest, was an air carrier authorized to furnish service between places - within the United States either by a certificate of pub- lic: convenience and necessity issued by the Cwil — Aeronautics Board pursuant to order E-13436, ddépted 73b.. House ‘Report No. 1177 January 28, 1959, or arder E-14196, adopted July 8,. 1959, or that itor its predecessor has received interim operating authority from the Board pursuant to sec- . tion 1(2) of Public Law 86-661 of July 14, 1960, 7 Stat..527; . | (B) that Kehooen the nil date of the Certificate or interim: operating authority and the date of enact- ment hereof, t the applicant or his predecessor in in- terest lawfully performed either (1) any portion of * | the service authorized. by the certificate or interim. operating | authority, or (2) any operations for the | Military Establishment of the United States authorized by the Board; and (C) that such certificate or interim operating au- . thority had not been revoked or otherwise terminated by the Board or had not otherwise expired prior to the enactment of this paragraph, and 1s held by the orig- _ - imal grantee or has béen transferred with Board ap- proyal pursuant to’ section. 401(h): Provided, That application under this paragraph may also be made | by a person who on the date of enactment hereof had. on file an application to the Board forthe approval _of transfer to him of a certaficate for supplemental eo transportation or: ‘interim operating authority, im which case the Board shall issue a certificate here- under if it approves the transfer pursuant to section | - 401(h) of inne Act; ' the Board, upon. proof of such habe only, ‘shall issue.a ~ certificate authorizing such ccd to engage in supple- — - 74b House. Report No. 1177 mental air transportation to. the same extent authorized in the applicant’s certificate or interim authority and ‘sub- * ject to the terms, conditions, and limitations attached thereto for such period as the Board deems proper: -Pro- vided, That this period shall not extend beyond the’ eff ec- tive date of an order of the Board denying renewal of the certificate or interim operating authority im a renewal proceeding pending at the time of enactment hereof. TERMS AND ) CONDITIONS OF CERTIFICATE, (e) Each certificate issued ‘under this section shall spec- ° _ ify the terminal points and intermediate points, if any, be- tween which the air carrier is authorized to engage in. air: transportation and the service to be rendered; and there - ‘Shall be-attached to the exercise of the privileges granted by the certificate, or amendment thereto, such reasonable : terms, conditions, and limitations as the public interest may require. A certificate issued under this ‘section to.en- gage in foreign air transportation shall, insofar as the op- | eration is to take place without the United States, designate the terminal and intermediate points only insofar as -the Board shall deem piacticable, and otherwise shall designate. only the general route or routes to be followed. Any air carrier holding a certificate for foreign air transportation ‘shall be authorized to handle and transport mail of coun- tries other than the United States. No term, condition, or . limitation of a certificate shall restrict the right of an air carrier to add to-or change schedules equipmént, accom: - modations, and facilities for performing thé authorized transportation and service as the development of the busi. "a R — a ee on seein ps ti a nL ncn OTE OA cine 4 wisn sieves oe Fe - '715b House Report No. 4177 ness and ‘the demands of the public. shall require. N o air carrier shall be deemed to have violated any term, condi- ’ tion, or limitation of its certificate by landing or taking off during an emergency ‘ata point not named in its cer- tificate or by operating in an emergency under regulations _ which may be prescribed by the Board, between terminal and intermediate points other than those specified in its certificate. Any air carrier may ‘make charter trips or perform any other special service, without regard to the points named in its certificate, under ‘regulations pre- scribed by the Board. A certificate issued under this. section to engage in supplemental, air transportation shall : _ designate the terminal and intermediate points only insofar as the Board shall deem practicable. and may designate . only the geographical area or areas within which Service - may be rendered. Nothing inthis subsection shall prevent. the Board.in specifying the service to be rendered under a certificate for supplemental air transportation from placing such limitations on “such certificate as it may find:to be necessary to assure that the services are limited to sup- plemental air transportation: Provided, That the Board mgy not impose such limitations upon cértificates issued : | “pursuant to paragraphs (1) and (2) of subsection (d). —27— CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED. For the information of the Members of the House of ; Representatives, changes in existing law made by the bill, as reported, are shown as follows (existing law proposed he ‘to be omitted is enclosed in black ‘brackets, new matter is printed in italies, existing law in which no change is pro-. posed is shown in roman) : ‘ 76b House Report No. 1177 * * * * * : ° | AGENCY REBORTS The committee considered the following letters: EXxecunNvE Orrice OF THE PRESIDENT, _ - Bureav: oF THE Bunce, Washington, D. C., June 16; 1961. -. Hon. i ny Chairman, Conimittee on Interstate wal Foreign Commerce, — House of Representatives, House _— Building, ° 2 _ Washington, D.C. : ras ie _ My Dear Mr: Cramcay: This is in reply to your re-_ quests of June 8 and June 9, 1961, for reports on H.R. 7318 _ and H.R.°7512, bills to amend the Federal Aviation Act of . 1958, as amended, to provide fora class of — air - . carriers, and for’ other purposés. The Department of Commerce and the Grit hii it @ | Board in statements to your committee indicate that the - supplemental air carriers perform a useful public service and help meet the Nation’s air transportation needs. The Bureau of the Budget concurs generally in the statements - of those agencies and recommends enactment of legislation © . Senate Report No. 688 ® , 87th Congress, let Session _aMenpurtegs TO THE ‘FEDERAL AVIATION: ACT OF 1958 TO PROVIDE FOR A CLASS OF SUPPLE- MENTAL AIR ——. Avavet 8, 1961.—Ordered to be printed Mr. Monroney, from the Committee on / Commeree, : “submitted the following R E PORT {to accompany 7S. 1969] ‘The Committee on Commerce, to ‘in was referred the bill- (S. 1969) to amend the Federal Aviation Act of 1958, . *as amended, to provide for a: class of supplemental air. carriers, and for: other purposes, having considered the same, report favorably thereon with an amendment. and s recommend that the bill as amended do pass, - The amendment, in the nature of substitute, is as follows: Strike out all after the enacting clause and insert the following: me therein a new paragraph to read as follows: 2 > * Numbers within dashes, used on the right, are ® the original page . numbers of the document. These are-the numbers referred to in“ asrvramens il Brief. Le ee ° > x; ¢ } ¥ | ; 4 te ; 92b Aen fon ee _ anes ee No. 688 : . a «(18) ‘Charter service’ means air ‘transportation per- . formed by an air carrier holding a certificate of public convenience and necessity where the entire capacity of one’ or more aircraft, has, been engaged. for the movement of persons and their baggage or for the movement of \prop-. ; #3 erty on a time, mileage, or trip basis, but shall not include " transportation Services offeréd by an air carrier to indi- ‘ vidual members of the general public or performed by an . 2 Air. carrier under an arrangement with any person who prov- oe: vides or offers to. provide transportation. services: to indi- : vidual. members of the general public, other: than .as_ a: ‘member of a group on an _all-expense-paid tour. ‘3 . (b) Section 101 of the Federal Aviation Act, as , amended, is further amended by ‘redesignating’ paragraphs (32) and — (33) as (35) and- -(36), respectively, and inserting therein two new -paragraphs to. read as follows: “(33) ‘Supplemental air ‘earréer’ means. an air earrier | holding a certificate of public canvenience and necessity au- thorizing it to. engage in supplemental air transportation. |“ (34) ‘Supplemental air transportation’ means charter service and other air transportation rendered pursuant to ‘a certificate of: public convenience and necessity issued put- ‘-suant to section 401(d)(3) of this Act to supplement the service authorized by certificates of public convenience and necessity ‘issued pursuant to sections 401(d) (1) and _ (2) of this ark ‘ Ske. ». tli 401 of the. Federal Aviation Aet is -samended by adding to subsection. (d) thereof. a new para-. graph (3) to read as follows: . 93b- : ss Senate RefOrt No. 688 re r.. =~ \ r Ps (3) (i) In the case of. an application forae rtificate to. - engage in air transportati nasa supplemental air carrier,. _ the Board may issue a certificate, to any applicant not, . -holding a. certificate under pa raphs (1) or (2) of this subsection, authorizing: the whold.or any part: of the traris- portation covered by the application, and for such petiod, as may be required by the public convenience and necessity, it finds that the applicant is fit, willing,’ and able prop- | erly, to perform such transportation and to conform to the ~. provisions of this Act and the rules,- regulations, and re- . “quirements ~of the Board ‘hereunder. In determining whether an applicant for such a. certificate is fit, willing, -and able within the meaning of ‘this paragraph the Board © shall give consideration to the conditions pec ar to the type ¢ of supplemental air transportation for which author- ity is sought, including the“ nature. of. the public weed >= _ therefor and the extent fo which the applicant: will be : required to provide such air transpdrtation. “(iy Any certificate issued pursuant to this paragraph _authorizing individually ticketed or waybilled service shall . contain. such limitations, including the term thereof, as the Board finds are-required to insure that such. service. will-not result in significant diversion of traffic from any _ “air carrier authorized to render. Service between: the same _ points by a certificate. or certificates of. public convenience’: © and necessity issued pursuant to panegeages bade and (2) of this: subsection.” 2 Sec. 3. Subsection (e) * séction 401 of the. eaten) Aviation Act 1 is amended to read’ as follows : : ah DH hsl a ih - ; : See. 5. Title IV oft the Federal Aviation Act i is amended © a ~~by adding at the end theréof a new section to read as a - follows: - “SPECIAL OPERATING AUTHORIZATIONS | Sol "ne of Board To Issue - 4 - “Seo, 417. (a) If. the Board. finds upon an 1 investigation conducted on its own initiative. or upon request of an air carnier— | . x » ye | ole ee . acter . o Senate Report No. 688 “(1) ‘that, the Yapacity. for air - transportation being «. , offered by the holder of a certificate of public con- ST cher nw, venience and necessity betweén particular points in’: | -- “ thé United ‘States is, or will be, temporarily ‘insufficient to meet the requireménts of the: _— or the postal | | ‘service ; 3 or \ ene, : oa, Rta ee «(dy that there is a ‘temporary transportation between two points : ™ not regularly esti by — air . a : e on public interest; the Board may issue rm such supplemental ave a special operating authorization to engage in air transportation between such points. ip \ Sst : pace ee “Terms of Auticriation oy ORS een . specal operating authorization issued hereunder ‘shall— 3 a 1) contain om limitations or requirements - as to’ frequency of serviee, - size or type of equipment, or _*S ar ‘ . . * * Pee 1006 © a * AY a er hs , ae dik we Seriate Report Ne: 688 a Ae ; y 401 (h) of the Federal. viation Act: -revided, That | application under this ragtaph. may alsd\be made by a person, who on. the date of enactrient hireot had on file an application , to the Board for the ‘ipproval . | of transfer to him of a certificate for supplemental air ‘ transportation or interim operating authority, in which: © -case the Board shall extend the’ authority. hereunder if -- it approves the transfer . pursuant to section 401 (n) o ‘of such Act; ie teen 8 eat ® ® the Board; upon: cnoit of such facts, shall i issue new. ¥ intaitin’ | authority to such applicant to-engage in supplemental: air’ transportation to. the same. extent authorized in the ap- ~~ plicant’s certificate or interim authority\and subject’ to - ria ’ the terms, conditions, and limitations attached thereto pend. _ ing issuance or denial of a certifieate pursuant to section : 401 (d) (3) of such Act authorizing the whole or any part of = ‘the transportation covered’ by the application. : tion 401(d) (3) of Federal Aviation Act. ‘or a’ certificate : » for supplemental ait. transportation within 30 days after. the date of enactment of this Act shall show that it or-its (b) If. any = cant who niakes application under sec- ee predecessor has received interim operating authority from © the Board pursuant to section 1(2) of Public Law’86:661 ~ of July 14; 1960 (74 Stat. 527),. the Board, upon proof of — such facts, shall issue new interim authority to such ‘ap- plicant to: engage i in supplemental air transportation. to the ‘same extent authorized i in the applicant’s interim authority and subject to- the terms, conditions, and limitations: at- tached. thereto pending issuance or denial of a certificate | é es | Moe 7 Ee ee ; 101 mi nee * siete Report No: 688... - pursuant to Section 401(4)(3) of ak ‘Act sitting the _ whole or any part of the transportation covered by: - application. Gree pws SAS ee a Sec. 8. @ If any. air. carrier; or rite predecessor i in in- ~ terest, was an air carrier authorized to furnish service between places within the United States either by a cer- tificate of publie coivenience and necessity. issued by the Civil | Aeronautics Board — ‘pursuant to Order E-13436, | | “Adopted January: 28, 1959, or Order: E-14196, adopted July — * | *@ 1959, or it or} its predecessor received intérim operat-. ing authority from the Board pursuant to section 1(2) . —_— . of Public Law 86-661 of July 14, 1960, (74 Stat. 527), it'may . - “eek ts perform operations under. its existing authority for thirty. ' days from the date of enactment ¢ of this Act, and ‘if it has © ed application pursuant to section 401(d) (3) of the Fed- 7 eral Aviation Act ‘within said thirty days, until the Board has granted or denied : interim authority under - Section 7 . .of this Act. Any air carrier whose application for certifica-. ; tion.as a supplemental air edrrier is: pending before the Board and which (A). has operated in interstate air trans-_ portation as a supplemental air carrier pursuant to au- thority granted under’ Board Order, E9744 of N ovember 15, 1955, and (B) had such application for -a- certificate. as a , siipplemental air ‘carrier pending before the Board on J uly: . ‘14, 1960, may continue to operate in interstate air trans- portation under its existing authority, for thirty days from _ the date éf enactment of the Act, and if it has filed applica- tion pursuant to section 401 (d) (3) of the Federal Aviation . | . ‘Act within said thirty days, until the Board has granted or | denied interim. _—_". under section 7 of this Act. ‘The . . 102b Senate ‘Report N 0. 688 \ gartificates of. publi¢ convenience. and neceadity insned by the Board pursuant to Order B-13436 adopted January 28, 1959;‘and Order B-14196, adopted July ’8;.1959, and the in-~ terim* operating authority . issued by the Board pursuant oh to section 1(2) of Public Law 86- 661.0f J july 14, 1960 (74 alin Stat: 527), and the sieeenplion authority issued by. the Boatd . ~ under Order £9744 of November 15, 1955, and prior au- ' thority under individual exemptions or Letters of egistra- tion, reinstated, by the Board underrder E-10i61.of April 3, 1956, shall: terminate on the date of an order of the Board granting or denying intérim authority under sec- ‘tion 7 of-this Act, or if ‘the earrier files no application - apt under section 401(a) (3) within 30 days from the date of’ "enactment of this Act, at the end of said 30-day period. | Any carrier whose operating ‘authority in. interstate: air transportation under Board Order E- 9744 is continuing ~ cos solely by virtue of a judicial stay of a Board Order which - would otherwise terfninate such operating: authority, is. ° hereby authorized to continue to operate, ‘subject. to all con- ditions and limitations ‘contained in Order E-9744 or im- o posed by the court, until the court shall lift such stay or until the- final disposition ‘of judicial Teview a | _ witichever shall first occur. (b) The frovisions ofthis Act shall ini no way affect any enforcement or. compliance proceeding or action against . the holder of a certificate of ®ublic convenien® ld neces-- - sity issued pursuant to-Order E-13436 or Order E- 141 or. against the holder of interim authority _ issued under. . ~ section a(1) of Public Law 86-661 pending before the Board on the date of enactment of Public Law 86- 661 or ees --Senate-Report No. 688 ‘this Act, or the power of the those to inatitate any.‘ en-: forcement or compliance, action against such holder sub- sequent to the date of enactment of this Act with respect to violations of the Federal Aviation Act or provisions of the certificate or interim authority.or the Board’s regula- ~ tions which may have. occurred prior to such date. Any — sanction which the Board might lawfully have imposed on the operating. authority of an air carrier for violations, occurring prior to the extension | of its authority under section 7 or the i issuance to such carrier of.a certificate ' public convenience,and necessity for. supplemental air trans-_. portation under ‘section 401(d) (3) of the Federal Aviation . Act may be. imposed upon such extension of authority or certificate issued:to such air: carrier, - (¢) Any application of an air carrier heretofore con8oli- dated into the Board proceeding known as the Large Ir- regular-Air Carrier Investigation, Docket Numbered 5132 . etal. shall be deemed te have been finally disposed of — — the date of enactment of this’ Act. : i . Amend the title SO as to read: A bill to amend the Federal Aviation Act of. 1958, as * | amended, to provide for ‘supplemental air: ee and for other purposes. ) | _ & | SUMMARY OF THE BILE, - The present measure would make it clear that a carrier: may request and be a thorized to ‘perform limited services supylemental to those furnished: by the regular air car- riers ahd would authorize. the Board to issue certificates of gublic rs and. necessity for supplemental service 104b ~Senate Report No. 688° . containing limitations on the type and extent of service .authorized.. This authority was requested by the Civil Aeronautics Board as a-result of the decision of the U.S. : Court of Appeals for the District of Columbia in United Airlines et al. v. Civil Aeronautics Board, which determined that the Board lacked authority under existing law to issue limited certificates. The bill would (1) grant ‘statutory interim operating : rights, in the nature of temporary “prandfather” rights, to existing holders of supplemental air carrier certificates who have performed a portion 6f the service authorized by their present certificates,-(2) make clear that a sup- ._ plemental ‘certificate is primarily a certificate for charter — _ service and provide that the Board may, when the public .- convenience and necessity requires, also authorize indi- vidually ticketed service, (3) make clear that supplemental air carriers are not eligible for subsidy payments, (4) per- mit the Board to issue a special operating authorization - for temporary service between particular pomts during. periods when regular: service is inadequate, (5) permit the Board to impose civil penalties for violations of title IV of the act relating to ecénomic regulations, (6) amend the act to provide for a statutory definition of charter service, ~ —§-—: (7) make clear that a cometnety certificated carrier cannot - also be certificated as a supplemental carrier, and (8) enable — the Board to make a determination of fitness based -upon . eonsiderations peculiar to the type of supplemental trans- portation for which authority is sought. ae a ee i -105b ” Senate Report No. 688 HEARINGS Your committee conducted hearings over aperiod. of 3 } _ days’ and received testimony fromthe following witnesses: Senators John Sparkman and Howard W. Cannon; Alan Boyd, Chairman, Civil Aeronautics Board; Robert Fraley; ~ Quaker City® Airways, Philadelphia, Pa.; and Mantz Air i Services, Burbank, Calif.; Jesse Stallings, president, Capi- ‘tol Airways, Nashville, Pena. Dr. Ralph Cox, Jr., presi- dent, U.S. Overseas Airlines, Wildwood, N.J.; George Pat- - terson, president and general manager, President Airlines, Ine., Burbank, Calif.;.Reed* Pigman, president, American Flyers, Fort Worth, ‘Tex: Alfred Blatz, president, Blatz Airlines, Burbank, Calif. ; : keane McDonald, assistant diree- tor, National Farmers Union, Washington, D.C.; Stuart Tipton, Air Transport Association, Washington, D.C.; ‘James Anton, Quaker City Airways; Clayton L. Burwell, ° president, Independent Airlines;- Robert E.. Commerce, president, Airline Dispatchers Association; and Robert C. Goodman, Saturn Airways. With the dniiailian of the Air Transport: Association ‘and the’ Airline Dispatchers As- - sociation, -all witnesses strongly supported the objectives of the bill. se SECTION-BY-SECTION ANALYSIS Section 1 This section would amend section 101 of the Federal ' Aviation Act to include additional statutory definitions. “Charter service” would be defined as air transportation ‘where the entire capacity of one or more aircraft has been 106b SEs fy Senate Report No. 688 engaged on a time, mileage, or.trip hasis, but specifically excluding transportation services offered by an air carrier © - to individual members of the general public or performed by an air earrier under an arrangement with any person who provides, or offers to provide, transportation. services - to individual members of the general public:other than as a member of a group on an all-expense-paid tour. This definition would be applicable to all certificated air carriers including both route carriers and supplemental’ carriers. between . - : 3 : “ a | 109b Senate Report No. 688 the points i inv olved: and afford such carriers the opportunity to. ‘protest the application i in writing. This section contem- ~ plates that procedures-will be adopted so as to avoid undue | delay in the issuance of special operating authorizations and, that the Board shall take into account in‘inv estigating such applications the degree of emergency involved. Section’ 6 Seétion 901(a) would be amended to give the Board ; juris- diction to impose the same civil penalties | for violations of - the economic provisions of the aggas are now Provided for violations of other provisions-of the act. This jurisdiction a : would extend to all of the provisions of title IV and would include violations by the certificated route carriers as well as ‘those committed by the ‘Supplemental air carriers and. other persons. - _ Section’ 7: This section would require the Board to issue interim: ; operating authority i in the nature of temporary grandfather _ Tights to any applicant who, within 30 days, following en- actment of this legislation, applies for a supplemental cer-. ‘tificate and shows:. (1) That it has been authorized to en- - gage in ‘supplemental air transportation, by certificate, . interim. operating authority, or exemption; (2) that it has ~ operated under the authority or performed transportation - for the Military Establishment; and (3) that this authority has not been terminated or expired. Upon proof of these - facts, the Board would be required tg issue. interim author- — S - ity of the = to engage in supplemental air trans- 1 10b : Senate pe No. 688 sails to the same > extent ‘eiathoitant in the.applicant’s «present certificate or authority until the Board disposes of its applications. under section 401 (d) (3)—the 4e% provision for supplemental certificates. effective Upon cagctment of this bill. | eee oe eee -", This section also contains a provision which would enable . @ carrier who, received interim, operating authority under’ Public Law 86-661 to — automatically for the grand- father interim authority. LET LET IM le PALI OE (a) (8). 3 : Section 8(c) would cléar the Board’s docket of applica-- ‘tions filed in docket 5132 by declaring that they shall be * deemed to have been finally — of —_ the date of . enactment of the bill. - “ee oS, Senate Report No. 688 BACKGROUND | “The origin of the suppleinental air carrier industry traces _ back to the period ‘shortly following the enactment of the . Civil Aeronautics Act of 1938. It was during this period that the Board issued an exemption order authorizing non- ‘scheduled: operations. . Initially, and up until -the end of World War I, nonscheduled operations were generally © i t of smaller size than those utilized. ‘by the certificated route carriers. Following the end of_ _World War II/surplus transport-type aircraft became avail- - able and were acquired: in ‘significant numbers by the hon- : scheduled: operators.. With larger aircraft of. increased _ : capacity their cargo and ae ee operations substantially expanded. As a result, the-Board, in 1947, revised its ex-* emption regulations to require | letters of -registration as © ccondition precedent to operations and to distinguish ‘be- tw een operators of transport- type aircraft and operators ’ of small aireraft, which were termed, respectively,. Ii aa | irregulars” and “small irregulars.” : oy The large irregular carriers were precluded from aperat- _ ing “regularly or with a reasonable degree of regularity.” Unter criteria and regulations prescribed by the Board, the- earriers could operate ‘between 8 and 12. flights per month. .between the same 2 points, ‘Charter, - individually ticketed, -and waybilled flights. were ail counted in. determining whether operations between the same two peints were ex- ., ‘cessive. Operations were permitted in interstate, oversea, - and ‘foreign air transportation for: the carriage of ,prop- “erty and in other than foreign air tyfnspo ation for the -carriage of sed -» -. : . f 11 Bb % * - Re ee ate Senate Report No. 688 "ee ig. Bee Subsequent changes. in ! the haeiatiinis sali inadequate - - to meet: the: various problems confronting the Board: in its- effort to -satisfactorily- determine the appropriate role of . /the nonscheduled carriers. As a result, in 1951 the Board:: | - instituted the large Y asaxuel air carrier. investigation, oo A Dotket 5132, to determine: fe ee e 3 > (4) Their role in the air wanmntrtition system and the’ extent of the operations which should be perniitted ;. (2) The carriers which were to receive ‘authority; : yand _ fe . (3) Whether: the ‘authorization Should ‘he. by cer: tificate or eo ‘ a ee . After iestenenel hearings, with some 30. applicants still ’ to be heard; the Board i in 1954 determined it was necessary ‘to expedite the proceeding by first deciding the issue as: to . the role of the carriers and the, scope’ of their ‘operations, ~ leaving for future decision ‘tle remaining two issues: As a result, on November 15, 1955, in Qrder B-9744, ‘the Board - found that irregular carriers comprise a “separate class of . ie carriers” performing varied and flexible services, and being “unhampered and unrestricted by schedule and route Tre- - quirement avs a make themselves available to serve when- tion between any two points. The 10-fii ‘ever and wherever the demarid exists.” ‘The Board -further found that: their. operations would not adversely affect*the regular route carriers and that unlimited charter authority » *- should be granted, ‘together with individually ticketed au- thority not to exceed 10 fh ghts per month.in the same, direc- limitation ‘was derived from an average of the 8 to 12 fli 3) ied e hts permitted — ': - i. .,* ‘ on : , a si glances ca putes 114b Senate Report No. 688 | senile the prior regulations. Its p Tpose was, Sito: remove - uncertainties as,to the-extent an Seppe. of - operations per- mitted, with the resulting and obvious betiefits to the. car- “riers and the Board in administrat n and enforcement. ‘The Board decided'to grant new ai hority. to all members of the class on an interim exemptfon asis pending its final decision as to the qualifications of individual carriers and as to whether the final authorization: should be by certificate orexemption. — | 7 3 The order granting interinn exemption authority was’ set aside by the Court of Appeals for the District of: Columbia ' Cireuit on July 19, 1956, on the ground -tyat the Board had not made suffi subsidiary finding’ to sustain the statu-.. - tory finding required for exemption that a requirement for certification would be an undue burden on ‘the carriers. A petition for writ of certiorari was denied by the Supreme ~~ Court. On December 21, 1956, the court of appeals stayed the issuance of its mandate until 60 days after the date of -final Board decisien in Docket 5132. On January 28, 1959, in Order E-14196 the Board granted temporary: certificates of public convenience and necessity « _, for supplemental air service to 23 carriers, found by the Board fit to receive them. Subsequently, on July 8, 1959, — in Order H-14196, the Board issued two additional certifi-. cates. These 25 certificates authorized the supplemental carriers to render.unlimited planeload charter service: and to conduct, without’ specified terminal or intermediate ae points, individually ticketed flights not to exceed 10 between ns the same 2 points during any month. Authority was limited to operations conducted | in interstate air transportation. | Applications of five other carriers remained to be decided ; eae further consideration of their. qualifications. | on -115b Senate Report No. 688 ie ; ae | ios The ae decision was contested aad the U.S. Court ° of Appeals for the District of Columbia found, in United Air Lines et al. v. Civil Aeronautics Board, that the order of J anuary 28, 1959, was Aegally deficient i in three respects: 1. The certificates issued by the Board do not specify the terminal and’ intermediate points. between which air.transportation is authorized but grant a blanket . _. . authorization to operate aes = two points in the «, United Stages. : 20 The certificates canal by Page contay limitation of 10 flights per month in the same‘dire bet®veen: the same two points. ‘In the opinio of the court, this limitation was in violation of section 401 (e) of the act which provides: “No term, condition, or limitation of a certificate shalt restriet the right of-an. air carrier to add to or ‘change schedules seen 3. In referring. to ine determination of fitness re- ‘quired by section 401(d) of the act, the court pginted out—one judge dissenting—the Board gaye-the same. nationwide cargo and passenger authority to each of © the applicants to. which it issued certificates. The court ° stated that in many instances the prior operations of, the indiv idual applizants had been small or ‘specialized _ and that their financial pecapees 44 wel inadequate for. _ the newly authorized optrations. It wowd thus appear that the court’s standard of fitness that each carrier must.establish would be greater than that found iad the” | Board to be necessary for supplemental serv ice. . J ® ° 116b ~~ Senate Report No. 688 — “In: view of the fact that it was ine same court which, on July 19, 1956, had*invalidated the Board’s. efforts to au-- thorize supplemental air transportation/ by means of an _— exemption order, it became a serious question whether sup- plemental carriers could operate under either exemption or certificate of authority. Consequently, the Board,.on ° April 28, 1960, submitted to Congress proposed legislation (S. 1543 and H.R. 7593) to provide the authority which =, court found the Board lacked. Your committee favorably reported s. 1543, with amend: ments, on June 13, 1960. However, the. House Interstate and Foreign Commerce Committee in its-report (No. 1877) of June 15, 1960, stated that it did not have. sufficient time to adequatély study the entire question of supplemental air transportation, and recommended enactment of tem- porar Jegiglation to maintain the status quo for 1 year since without immediate action by Congress, the supple- mental carriers might not be.able to continue operating. . Thereafter, Congress enacted Public Law 86-661, approved July 14, 1960, granting temporary operating authority to the supplementals until March 14, 1962. BASIC CONCEPTS a given substantially identical authority—the right to pro- vide charter service and to perform no more than 10 sched- uled trips a month. between any two points. As a matter: of fact, the type of operations conducted by these carriers . ; * a . ° , ——- has been almost as varied as the number of.carriers. Many have performed charter operations for the Military Estab- 6 jf : The Civil Aeronautics Board has.always treated the sup- plemental carriers as a class, each ‘member of which was A ee eS et : Sain mo te 117b , Senate sicatet No. 688 lishment. Others have intel almost their total revenue , , from civil charter. A few have conducted fairly balanced operations, deriving substantial revenues from military ‘ charter, civil charter, and-scheduled passenger service. There is also great variation in the capability of these earriers, in their financial resources and in the number and types of aircraft which they own.and operate. Many have operated continuously and grown steadily. Others have operated only ‘sporadically or on a very limited scale.: To some extent, these variations reflect the differey in interest, experience, and managerial skill of their ant § : The committee is aware that to some extent these car- riers must be treated.as a class. All of them are certifi- cated to provide transportation to supplement the existing air transportation system, which will be based in the future - - as it has heen in the past on ‘scheduled route carriers. Under the committee bill, many aspects of this class charac- teristic are retained: None of these carriers will be eligible for subsidy. None of them will be permitted to provide scheduled service except subject to limitations of a type “which could not be imposed: by: the Board on scheduled route carriers. All of them will probably depend. for a- subst ntial part of their revenue on charter operations. _ They have had and will continue to have problems. and a services distinct from the scheduled route cafriers. However, the committee has carefully analyzed the re- ports of all of these carriers to the Board over the past few years. It is impressed by their variety and is con- vinced that-they will achieve a permanent-and stable place in our air transportation system only when tle Board be- gins to -issue individual certificates more specifically de- 118b Senate Report No. 688 signed for the individual carrier. It is only by this means that the Board can insure that each piece which it fits into the mosaic of the supplemental sac te will properly. con- tribute to the final total picture. In deciding what authority should be giv en each carrier the Board should certainly start with what the.carrier ~~ wants to do; what its-experience has been; what | its capa- _ bility is in terms of financing, personnel, and equipment. A supplemental industry constructed on this basis requires courage and imagination on the part of the carriers in developing and proposing how they can best serve the . ‘public interest. It. requires on the part of the Board a’ sense of liberality and experimentation and-a willingness to undertake a trial, even at the cost of occasional error. ’ CHARTER SERVICE- ~—s| . Every witness who discussed the eject i in the. hearings on this measure agreed that the basic role of the supple- . mental carriers is the provision, of charter service. Even. the spokesman for the Air- Transport. Association, repre- ‘ senting the scheduled route carriers, while strongly op-. posing any authority for the ‘supplemental carriers to per- form scheduled service, supported the supplemental carriers being given charter authority. The supplemental carriers themselves were ‘unanimous in their view that charter gery ice represented’ both their greatest potential contribu- tion to air transportation and their greatest. potential source of revenue. A substantial part of their revenues in | Sp 2 NB the past have come either from civil charter or charter service performed: under contracts with the Military Es- . :-tablishment of the United States. ) >” — — /119b tae | Senate ee No. 688 ‘ The bejreton: of the committee bill is. the concept that | the authority to provide charter service sliould be the basic. ‘ingredient of a certificate as. a supplenfental air carrier, -The committee has defined ——— air transporta- 7—tion” to mean—. charter service and other air. ‘transportation rendered . pursuant to a certificate of public convenience and née, cessity issued pursuant to section wmaente) haan The committee has also defined “charter service” as being “air transportation” which under section 401 of‘the Fed- eral. Aviation Act no air carrier can. perform except pur- — suant to a certifieate issued by the Board. Because the committee is convihced that individual cer- tificates. as a. supplemental. air carrier must be tailored to the public need and to the capability and interests of the ° particular carrier, the bill does not require the Board to grant every suppleméntal carrier any particular charter ~ authority. The Board is specifically authorized to designate” igs the geographical ° area or areas within or between which charter service may be rendered. -The charter authority of one carrier may be quite different from that provided to - another, but charter authority remains in the view of the ” committee the basic, if not absolutely indispensable, ingre- dient of the supplemental certificate. It is the type of ser- vice which. most clearly supplements the scheduled : route service provided by other carriers. The committee is also strongly: of the opinion that the Board’s practice of routinely permitting continual large- | A tenon o, -120b Senate Report No. 688 scale charter operations by. exemption is not only unwise, but illegal, because not within the “unusual circumstances” -eontemplated by section 416.. The committee hopes that henceforth charter serv{ce will- be. provided by the cer- . tificated carriers authorized to provide it and not provided under an exemption by anyone who professes a desire to do so. A charter, by common law and i practice. in the : transportation industry, means. essentially the lease of the entire Vehicle, in this case the aircraft, for a period of time. ‘or for a particular trip. Because the development of the charter market has been inhibited by artificial restrictions which have been imposed by Board regulations on a legal charter, particularly in international air transportation, the committee has incorporated the common law definition - of charter in the statutory definitions contained in the Fed- eral Aviation Act. The-bill thus provides that— “charter service” means air transportation * * * where the entire capacity of one or more aircraft has been engaged * * * on a time, mileage or trip nae”... However, it is not the intention of tos solace to per- “mit individually ticketed service to be offered to the gen- eral public under the guise of charter. The proposed statu- ‘tory definition, therefore, provides that charter shall not -inelude such individually ticketed service whether offered _. by an air carrier directly or bya trayel agent." ” This restriction is subject to one exception because there is one circumstance in which a carrier or travel agent may : a * '. offer the services to individual members of the public and still conform tothe traditional concept of charter. This is 121b - Senate Report No.-688 in connection with an all-expense-paid group tour. If a ‘travel agent charters an aircraft for an all-expense-paid | tour and then offers to individual members of ‘the public .the right to participate as a member of the group, this is a _ very different sort of service from individually ticketed transportation. . = ‘The. proposed stadatory defitiition. incéfporates this ex- ception by providing that. charter shall not include trans- portation offered to individual members of -the general public “other -than'as a member of a group on an all-ex- pense-paid tour.” The committee has received representa-- - tions that this exception is open to the abuse that it might _ be used as a guise to offer individually titketed service. However, the Civil Aeronautics Board has.ample author- ity, because of its power to specify the terms, conditions, and limitations of the certificate under. section 401 and its . general power to make any necessary rules: or regulations to carry out the provisions of the act under section 204. . to prevent any violation of the clear intent of the statute. . This the Board can accomplish by specifying in its régula- tions the minimum requirements which must be met before the service offered qualifies under the statutory exception. However, several members of- ‘your committee have ex- pressed the desire’ that the Board submit: reports setting forth its experiences in administering the provision per- taining to all-expense-paid tours. Accordingly, your com- mittee requests the Board to report annually on this sub- ject for the next 3 years, either i in-a separate report or in ~- its annual report to the Congress. If the Board’s experi-. ence in-administering-this section should demonstrate that _ - additional statutory authority is necessary, your committce © 122b Senate Report No. 688 will. sinus the Board to incorporate appropriate recom: | mendations to that end i in.its report. INDIVIDUALLY TICKETED SERVICE ; A far more controversial aspect of. the present authicrity of supplemental carriers is their right to sell individual | tickets Jor scheduled service subjéct to the limitation ‘that -not.more than 10 fips per month be performed between any two points. The ‘scheduled. route tarriers have ex-.— pressed grave apprehension over this authority. One of the principal reasons which the court assigned in . _ its Opinion in United Airlines v. C.A.B. for inv alidating the. Board’s action in granting supplemental certificates was “@ that they permitted operations between points selected by .: the carrier-and did not specify the terminal points between ° ‘which the carrier was authorized to engage :in air trans-" portation as “required by section 40i(e) of the act. The - limitation on the number of trips, in lieu of specifying the terminal points, was Jikewise held by the court to violates ‘= the provision of that subsection pfohibiting the Board from placing a limitation in a certificate restricting the right of an air carrier -to.add to or ‘change. schedules. The bill originally sybmitted by the ‘Board had as its primary purpose amendment of the act to permit the Board. -to grant ‘just this kind of a‘ certificate to supplemental air carriers, that is, authority to provide a limited Aumber of trips be- tween any two points without specifying them. ‘The committee has determined that the act,should not, be amended to permit the Board to issue a certificate authoriz- : ~ ~15— ing scheduled service without specifying the terminals, al- : though it has relieved the Board of this’ sd with _——— ee -e ee 123b Senate Report No, 688 reference to ‘enrtiiieniis authorizing charter service. The committee recommends this: position for two reasons. First, the points between which there is'a demonstrable need and _ a ready market for supplemental gir transportation are sufficiently limited that it appears, ‘perfectly féasible for the Board to specify these terminals in the certificate. Second, only by specifying where sugh service will be pro- vided and which ‘supplemental carriers shall furnish it can - the Board insure that a large number. of carriers will not elect to furnish service between the same points with. pos- sible serious effect upon the scheduled route carriers certif- icated to render service between such points. The committee has provided the Board with authority to” limit the number of schedules or the type of equipment en- ployed by a supplemental air carrier, adopting in this re- . gard the amendment: ‘offered hy Senator: Morris Cotton. ‘The proposed, new paragraph 3 of subsection 4 [Text truncated at 120,000 characters. The full text is on the page linked above.] --- Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385001_1111%3A11. Public record. Not legal advice.