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§ 272.10 14 CFR Ch.

II (1–1–00 Edition)

(i) The Department may from time to the Government(s) of the Freely Asso-
time, on its own motion, or upon appli- ciated States concerned that the impo-
cation of any carrier or government, sition of such conditions on those car-
review and change its selection of a riers by those Governments shall be a
carrier to provide essential air service, precondition to the payment of the
or its determination as to the com- subsidy compensation required to
pensation necessary to provide such es- maintain essential air service in the
sential air service. market in question.
(j) All applications or other docu- (c) The Department may withhold or
ments filed or issued in proceedings suspend its provision for the payment
under this section shall be served upon of subsidy compensation required to
the President of the Freely Associated maintain essential air service unless
State concerned and the Authorities and until the Freely Associated
designated by that Government(s) in State(s) concerned take the necessary
accordance with Article II, paragraph action to impose the specified condi-
10, of the Federal Programs and Serv- tions on the carriers referred to in
ices Agreement supplemental to the paragraph (b) of this section, and those
Compact of Free Association, and such carriers have complied with the speci-
Government shall be a party to any fied conditions.
such proceeding. In reaching its deter- (d) Any order of the Department im-
mination, the Department will care- posing conditions, or requiring the im-
fully consider any views of such Gov- position of conditions, pursuant to this
ernment that have been submitted. paragraph shall be submitted to the
President for review not less than 10
[Amdt. No. 272–1, 52 FR 5443, Feb. 23, 1987, as
amended at 60 FR 43525, Aug. 22, 1995]
days prior to its effective date, and
shall be subject to stay or disapproval
§ 272.10 Conditions applicable to car- by the President.
riers serving a subsidized market. [Amdt. No. 272–1, 52 FR 5443, Feb. 23, 1987, as
(a) The Department may, after pro- amended at 60 FR 43525, Aug. 22, 1995]
viding an opportunity for comment by
the carrier or carriers affected, impose § 272.11 Effective date of provisions.
service, fare or rate conditions on any The provisions of this part shall not
U.S., Freely Associated State, foreign become effective for Palau until the
air carrier, or foreign carrier by air as Compact of Free Association and Arti-
a precondition to the payment of com- cle IX of the Federal Programs and
pensation necessary to maintain essen- Services Agreement become effective
tial air service, whether or not the af- for Palau.
fected carrier is itself receiving subsidy
compensation in the market, if it finds § 272.12 Termination.
that: These provisions shall terminate on
(1) Essential air service in a Freely October 1, 1998, unless the program of
Associated State market or markets essential air service to the Federated
will not be provided in the absence of States of Micronesia, the Marshall Is-
the payment of compensation; lands, and Palau is specifically ex-
(2) Specified service, rate or fare con- tended by Congress.
ditions are or will be necessary or de- This amendment is issued under the
sirable to minimize the required sub- authority of 49 CFR 1.57(l).
sidy compensation; and [Amdt. 272–2, 56 FR 1732, Jan. 7, 1991, as
(3) The imposition of such conditions amended at 60 FR 43525, Aug. 22, 1995]
will not unduly impair the service pro-
vided in the market.
(b) To the extent the carrier or car-
PART 291—CARGO OPERATIONS
riers upon whom the conditions are im- IN INTERSTATE AIR TRANSPOR-
posed pursuant to paragraph (a) of this TATION
section do not hold a certificate, per-
mit, or other authority from the De- Subpart A—General
partment that may be amended to ef- Sec.
fectively implement the specified con- 291.1 Applicability.
ditions, the Department may notify 291.2 Definitions.

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Office of the Secretary, DOT § 291.20

Subpart B—All-Cargo Air Transportation (i) A State, territory, or possession of
Certificates the United States and a place in the
District of Columbia or another State,
291.10 Applications.
territory, or possession of the United
Subpart C—General Rules for All-Cargo Air States;
Transportation (ii) Hawaii and another place in Ha-
waii through the airspace over a place
291.20 Applicability. outside Hawaii;
291.22 Aircraft accident liability insurance (iii) The District of Columbia and an-
requirement.
other place in the District of Columbia;
291.23 Record retention.
or
291.24 Waiver of Department Economic Reg-
ulations. (iv) A territory or possession of the
United States and another place in the
Subpart D—Exemptions for Cargo same territory or possession; and
Operations in Interstate Air Transportation (2) When any part of the transpor-
tation is by aircraft.
291.30 General.
291.31 Exemptions from the Statute. Section 41102 carrier means an air car-
rier certificated under section 41102 of
Subpart E—Reporting Rules the Statute to transport persons, prop-
erty and mail or property and mail
291.40 [Reserved] only.
291.41 Financial and statistical reporting—
Section 41103 carrier means an air car-
general.
291.42 Section 41103 financial and statistical
rier holding a certificate issued under
reporting. section 41103 of the Statute to provide
all-cargo air transportation.
Subpart F—Enforcement [60 FR 43525, Aug. 22, 1995
291.50 Enforcement.
AUTHORITY: 49 U.S.C. Chapters 401, 411, 415, Subpart B—All-Cargo Air
417. Transportation Certificates
SOURCE: ER–1080, 43 FR 53635, Nov. 16, 1978,
unless otherwise noted.
§ 291.10 Applications.
Applications for all-cargo air service
Subpart A—General certificates shall comply with the pro-
visions of part 201 and subpart Q of part
§ 291.1 Applicability. 302 of this chapter with regard to filing
This part applies to cargo operations procedures, and with the provisions of
in interstate air transportation by air part 204 of this chapter with regard to
carriers certificated under section 41102 evidentiary requirements.
or 41103 of the Statute. It also applies (Approved by the Office of Management and
to applicants for an all-cargo air trans- Budget under control number 2106–0023)
portation certificate under section [Docket No. 47582, 57 FR 38770, Aug. 27, 1992]
41103 of the Statute.
[60 FR 43525, Aug. 22, 1995] Subpart C—General Rules for All-
Cargo Air Transportation
§ 291.2 Definitions.
All-cargo air transportation means the § 291.20 Applicability.
transportation by aircraft in interstate The rules in this subpart apply to
air transportation of only property or cargo operations in interstate air
only mail, or both. transportation performed by air car-
Interstate air transportation means the riers certificated under sections 41102
transportation of passengers or prop- or 41103 of the Statute. Section 41103
erty by aircraft as a common carrier carriers that operate passenger-only or
for compensation, or the transpor- combination aircraft under section
tation of mail by aircraft— 41102, part 298 of this chapter, or other
(1) Between a place in— Department authority, must comply

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§ 291.22 14 CFR Ch. II (1–1–00 Edition)

with the rules in this subpart in con- § 291.24 Waiver of Department Eco-
nection with cargo operations in inter- nomic Regulations.
state air transportation, whether pro- Except for this part and those parts
vided on all-cargo or combination air- of the Department’s Economic Regula-
craft, operated pursuant to this au- tions (parts 200 through 299 of this
thority or otherwise. In case a carrier title) specifically referred to in this
may operate a particular flight under part, carriers providing cargo oper-
either a section 41102 certificate or a ations in interstate air transportation
section 41103 certificate, the flight is are, with respect to that transpor-
presumed to be operated under the car- tation, relieved from all obligations
rier’s section 41103 authority. imposed on air carriers by those eco-
[60 FR 43526, Aug. 22, 1995] nomic regulations. Flights operated en-
tirely within interstate air transpor-
§ 291.22 Aircraft accident liability in- tation shall be free from those obliga-
surance requirement. tions, even though they may also carry
No air carrier shall operate all-cargo shipments to or from points outside
aircraft or provide all-cargo air trans- that geographic area. This waiver shall
portation unless such carrier has and not apply to the requirements of part
maintains in effect aircraft accident li- 239 of this title.
ability coverage that meets the re- [ER–1080, 43 FR 53635, Nov. 16, 1978, as amend-
quirements of part 205 of this chapter. ed by Docket No. 47582, 57 FR 38770, Aug. 27,
1992; 60 FR 43526, Aug. 22, 1995]
[ER–1255, 46 FR 52583, Oct. 27, 1981, as amend-
ed at 60 FR 43526, Aug. 22, 1995]
Subpart D—Exemptions for Cargo
§ 291.23 Record retention. Operations in Interstate Air
(a) The provisions of 14 CFR part 249, Transportation
Preservation of air carrier accounts, § 291.30 General.
records and memoranda, shall apply to
all carriers, except that records per- The following exemptions, except as
taining to transportation provided on otherwise specifically noted, apply
aircraft eligible to be operated under only to cargo operations in interstate
part 298 of this title, and records con- air transportation. They do not relieve
cerning transportation outside the geo- a carrier from obligations derived from
graphic scope of interstate air trans- other transportation.
portation, need not be maintained un- [ER–1080, 43 FR 53635, Nov. 16, 1978, as amend-
less required by other Department reg- ed at 60 FR 43526, Aug. 22, 1995]
ulations.
(b) Each carrier shall retain for 1 § 291.31 Exemptions from the Statute.
year a copy of each rate sheet, (a) Each section 41102 or 41103 air car-
airwaybill contract, and other docu- rier providing cargo operations in
ment reflecting changed, new, or other interstate air transportation is, with
previously unreported general or spe- respect to such transportation, ex-
cial prices or rules governing the car- empted from the following portions of
riage of freight in interstate air trans- the Statute only if and so long as it
portation (except mail), unless the complies with the provisions of this
transportation was performed in ac- part and the conditions imposed here-
cordance with an effective tariff on file in, and to the extent necessary to per-
with the Department. Each carrier mit it to conduct cargo operations in
shall retain for 1 year a copy of any interstate air transportation:
formula based on standard weight, (1) Sections 41310, 41705,
mileage, or other method used to deter- (2) Chapter 415, and
mine an individual airbill or contract. (3) Chapter 419 for all-cargo oper-
ations under section 41103.
(Approved by the Office of Management and
Budget under control number 3024–0022)
(b) Each air carrier providing cargo
[ER–1080, 43 FR 53635, Nov. 16, 1978, as amend- operations in interstate air transpor-
ed by ER–1270, 46 FR 63220, Dec. 31, 1981; tation under section 41103 of the Stat-
Docket No. 47582, 57 FR 38770, Aug. 27, 1992; 60 ute is exempted from the provisions of
FR 43526, Aug. 22, 1995] section 41106(a) of the Statute to the

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Office of the Secretary, DOT § 291.42

extent necessary to permit it to com- Seventh St., SW., Washington, DC
pete for and operate cargo charters in 20590.
interstate air transportation for the (3) The carrier’s chief accounting of-
Department of Defense under contracts ficer shall sign a certification attesting
of more than 30 days’ duration. to the truth and completeness of the
(c) The Department of Defense is ex- reports required by this section.
empted from section 41106(a) of the (b) Statement of Operations and Statis-
Statute to the extent necessary to per- tics Summary for section 41103 operations.
mit it to negotiate and enter into con- This statement shall include the fol-
tracts of more than 30 days’ duration lowing elements:
with any section 41103 carrier for oper- (1) Total operating revenue, cat-
ation of cargo charters in interstate air egorized as follows:
transportation. (i) Transport revenues from the car-
riage of property in scheduled and non-
[60 FR 43526, Aug. 22, 1995]
scheduled service;
(ii) Transport revenue from the car-
Subpart E—Reporting Rules riage of mail in scheduled and non-
scheduled service; and
§ 291.40 [Reserved]
(iii) Transport-related revenues.
§ 291.41 Financial and statistical re- (2) Total operating expenses;
porting—general. (3) Operating profit or loss, computed
by subtracting the total operating ex-
(a) Carriers providing cargo oper- penses from the total operating reve-
ations in interstate air transportation nues; and
that also conduct other operations (4) Net income, computed by sub-
under section 41102 shall comply with tracting the total operating and nonop-
the provisions of part 241 of this title. erating expenses, including interest ex-
(b) Carriers providing cargo oper- penses and income taxes, from the
ations in interstate air transportation total operating and nonoperating reve-
under section 41103 certificates shall nues.
comply with § 291.42. (c) Summary of traffic and capacity sta-
(c) Carriers providing cargo oper- tistics. This summary shall include the
ations in interstate air transportation following elements:
under section 41103, and also providing (1) Total revenue ton-miles, which
other services under part 298 of this are the aircraft miles flown on each
title, shall report their cargo oper- flight stage times the number of tons
ations in interstate air transportation of revenue traffic carried on that stage.
operations in accordance with § 291.42, They shall be categorized as follows:
and shall report all other traffic in ac- (i) Property; and
cordance with the provisions of subpart
(ii) Mail.
F of part 298.
(2) Revenue tons enplaned, reflecting
[ER–1080, 43 FR 53635, Nov. 16, 1978, as amend- the total revenue tons of cargo loaded
ed at 60 FR 43526, Aug. 22, 1995] on aircraft during the annual period;
(3) Available ton-miles, reflecting the
§ 291.42 Section 41103 financial and total revenue ton-miles available for
statistical reporting. all-cargo service during the annual pe-
(a) General instructions. (1) Carriers riod, and computed by multiplying air-
operating under section 41103 certifi- craft miles flown on each flight stage
cates that are not subject to part 241 of by the number of tons of aircraft ca-
this chapter shall file Form 291-A, pacity available for that stage;
Statement of Operations and Statistics (4) Aircraft miles flown, reflecting
Summary, for section 41103 operations. the total number of aircraft miles
(2) The form required by this section flown in cargo service during the an-
shall be filed annually on February 10 nual period;
covering the 12 months ending Decem- (5) Aircraft departures performed, re-
ber 31. It shall be filed at the Office of flecting the total number of take-offs
Airline Information , K–25, Room 4125, performed in cargo service during the
U.S. Department of Transportation, 400 annual period; and

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§ 291.50 14 CFR Ch. II (1–1–00 Edition)

(6) Aircraft hours airborne, reflecting § 292.2 Definitions.
the aircraft hours of flight (from take- For purposes of this part:
off to landing) performed in cargo serv- Cargo means property other than
ice during the annual period. baggage accompanied or checked by
[ER–1350, 48 FR 32757, July 19, 1983, as amend- passengers, or mail.
ed by Docket No. 47582, 57 FR 38770, Aug. 27, Cargo tariff means a tariff containing
1992; 60 FR 43526, Aug. 22, 1995; 60 FR 66726, rates, charges or provisions governing
Dec. 26, 1995] the application of such rates or
charges, or the conditions of service,
Subpart F—Enforcement applicable to the scheduled transpor-
tation of cargo in foreign air transpor-
§ 291.50 Enforcement. tation.
In case of any violation of any of the Direct air carrier means an air carrier
provisions of the Statute, or this part, or foreign air carrier directly engaged
or any other rule, regulation, or order in the operation of aircraft under a cer-
issued under the Statute, the violator tificate, regulation, order, exemption
may be subject to a proceeding pursu- or permit issued by the Department or
ant to section 46101 of the Statute be- its predecessor, the Civil Aeronautics
fore the Department, or sections 46106 Board.
through 46108 of the Statute before a
U.S. District Court, as the case may be, Subpart B—Exemption From Filing
to compel compliance therewith; or to Tariffs
civil penalties pursuant to the provi-
sions of section 46301 of the Statute. § 292.10 Exemption.
[60 FR 43526, Aug. 22, 1995] Direct air carriers are exempted from
the requirement to file cargo tariffs
with the Department of Transportation
PART 292—INTERNATIONAL provided in 49 U.S.C. 41504 and 14 CFR
CARGO TRANSPORTATION Part 221.
Subpart A—General § 292.11 Revocation of exemption.
Sec. (a) The Department, upon complaint
292.1 Applicability. or upon its own initiative, may, imme-
292.2 Definitions. diately and without hearing, revoke, in
whole or in part, the exemption grant-
Subpart B—Exemption From Filing Tariffs ed by this part with respect to a carrier
292.10 Exemption.
or carriers, when such action is in the
292.11 Revocation of exemption. public interest.
(b) Any such action will be taken in
Subpart C—Effect of Exemption an order issued by the Assistant Sec-
retary for Aviation and International
292.20 Rule of construction. Affairs, and will identify:
292.21 Incorporation of contract terms by (1) The tariff matter to be filed; and
reference.
(2) The deadline for carrier compli-
292.22 Effectiveness of tariffs on file.
ance.
AUTHORITY: 49 U.S.C. 40101, 40105, 40109, (c) Revocations under this section
40113, 40114, 41504, 41701, 41707, 41708, 41709, will have the effect of reinstating all
41712, 46101; 14 CFR 1.56(j)(2)(ii). applicable tariff requirements and pro-
SOURCE: Docket No. 48827, 60 FR 61478, Nov. cedures specified in the Department’s
30, 1995, unless otherwise noted. regulations for the tariff material to be
filed, unless otherwise specified by De-
Subpart A—General partment order.

§ 292.1 Applicability. Subpart C—Effect of Exemption
This part applies to direct air car-
riers providing scheduled transpor- § 292.20 Rule of construction.
tation of cargo in foreign air transpor- Carriers holding an effective exemp-
tation. tion from the duty to file tariffs under

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