agent of any direct air carrier or to any other intermediary receiving a commission on such shipments from the direct air carrier. Nor shall any holder of such authorization tender any shipment to the direct air carrier for the account of, or on behalf of, any cargo agent, sales agent, or any other intermediary while acting in the capacity of an international air freight forwarder. The payment of a commission by the direct air carrier to such agent or intermediary shall be prima facie evidence of a violation of this prohibition by the international air freight forwarder concerned in all proceedings before the Board conducted under the authority of section 1002 (a), (b) and (c) of the Act. Provided, however, That the provisions of this section shall not be construed to prohibit an international air freight forwarder from tendering shipments to a direct air carrier which acts as exclusive agent for another direct air carrier for the purpose of accepting forwarder shipments on its behalf. § 297.42 Name of international air freight forwarder. It shall be an express condition upon the exercise of the privileges herein granted and the operating authorizations issued hereunder, that any international air freight forwarder, in holding out to the public and in performing air transportation services, shall do so only in a name the use of which is authorized under the provisions of Part 215 of this chapter (Economic Regulations) or under § 297.37. (Sec. 411, 72 Stat. 769; 49 U.S.C. 1381) [ER391, 28 F.R. 9202, Aug. 21, 1963] § 297.43 Suspension of operating au thorizations. An operating authorization may be suspended by the institution of suspension proceedings in accordance with either the procedure specified in Subpart B of Part 302 of this chapter, or the procedure prescribed in paragraphs (a), (b), and (c) of this section. (a) Whenever the Board decides to institute a suspension proceeding pursuant to this section, which involves alleged knowing and willful violations it shall issue an order instituting a suspension proceeding. However, whenever it appears that the alleged violations are not knowing and willful, the Board shall, by letter, give the carrier the notice and warning specified in section 9(b) of the Administrative Procedure Act. Such notice shall specifically recite the holder's failure to comply with any provisions of the Act or any order, rule, or regulation issued under any such provision, or any term, condition or limitation of any authority issued under such act or regulation. Such notice shall also afford the holder a reasonable opportunity to demonstrate or achieve compliance with such legal requirements within a specified period of time. At the expiration of such period, the Board may issue an order instituting a suspension proceeding. In (b) Each order instituting a suspension proceeding will specify a period of time within which the holder must file a written response with the Board. such response, the holder may deny noncompliance or adduce such considerations as it desires to rely upon in order to justify or excuse noncompliance. (c) In the event such a written response is filed, the Board may assign the proceeding for hearing or oral argument or, in appropriate cases, enter an order of suspension or an order dismissing the suspension proceeding. (d) Such suspension may continue until the Board finds that such suspended air freight forwarder has complied with the provisions of the Act, or with such rules, regulations, orders, terms, conditions, or limitations or until the expiration of such a minimum suspension period, of fixed duration, as the Board may prescribed. The Board may also order a suspension, of indefinite duration, during the pendency of a docketed revocation proceeding brought under § 297.44. § 297.44 Revocation of operating au thorizations. (a) Operating authorizations shall be subject to revocation, after notice and hearing, for knowing and willful violation of any provision of the Act or of any order, rule, or regulation issued under any such provision, or of any term, condition, or limitation of any authority issued under said Act or regulation. (b) An operating authorization shall be revoked without prejudice to subsequent application for a new authorization upon the filing by an international air freight forwarder of a written notice with the Board indicating the discontinuance of air freight forwarder activi ties: Provided, That the Board may refuse to accept such notice if any proceedings or actions are pending in which an international air freight forwarder's authority may be subject to suspension or revocation action. The failure of any holder of an operating authorization to perform air transportation services as an international air freight forwarder for a period of two years, or the failure of any such holder for two successive periods to file the periodic reports required by this chapter may be deemed by the Board to constitute the filing of written notice indicating the discontinuance of air freight forwarder activities. $297.45 Insurance. Any such guaranty shall not be less than the amount prescribed in paragraph (c)(1) of this section, and shall cover risks of loss of or damage to the property it handles as an international freight forwarder pursuant to the provisions of this Part. (b) Public liability, property damage and personal injury. No international air freight forwarder shall engage in the performance of transfer, collection or delivery services pursuant to this part unless it shall have on file with the Board a satisfactory certificate or certificates of insurance evidencing a properly endorsed policy of insurance (CAB Form 350),' qualifications as a self-insurer (a self-insurer fund or other qualifications approved by the Board) or surety bond in not less than the amounts prescribed in paragraph (c) (2) and (3) of this section, conditioned to pay within the amount of such insurance coverage any final judgment recovered against it on Filed as part of the original document. Available from Publications Section, Civil Aeronautics Board. account of bodily injuries to or death of any person, or loss of or damage to property (other than property covered by paragraph (a) of this section) resulting from the negligent operation, maintenance or use of motor vehicles operated by or under its direction and control. (c) Minimum liability limits-(1) Cargo insurance. For loss of or damage to property while carried on or resting in any conveyance or premises; minimum $10,000 per conveyance or premises. Conveyance includes, but is not limited to, aircraft, motor vehicles, rail and water craft. (d) Maintenance of insurance coverage. The insurance coverage referred to herein shall be kept in effect by the international air freight forwarder at all times and until such time as the operating authorization may be revoked pursuant to § 297.44 or is otherwise terminated by the Board. Subpart E-Reporting Requirements and Requirements for the Maintenance and Retention of Records § 297.50 Reporting requirements. Each holder of an operating authorization as an international air freight forwarder shall comply with the applicable reporting provisions of Part 244 of this subchapter, as amended. § 297.51 Records requirements. (a) Each holder of an operating authorization as an international air freight forwarder shall comply with the applicable recordkeeping provisions of Part 249 of this subchapter, as amended. (b) Each holder of an operating authorization as an international air freight forwarder shall prepare an accurate airwaybill for each shipment consigned for transportation to a direct air carrier by such holder in the capacity of an international air freight forwarder and a copy thereof shall be supplied to the consignor and consignee of each such 7 shipment. Each such airwaybill shall contain: (1) The following information: (i) Name and address of consignor, consignee, and international air freight forwarder. (ii) A limitation of liability statement. (iii) Number of packages in shipment. (iv) Total weight (both actual and dimensional, where applicable). (v) Description of commodities. (vi) Point of origin and destination of shipment. (vii) Declared value of shipment. (viii) Date of airwaybill preparation. (ix) Name of employee or agent preparing airwaybill. (2) The following charges, when applicable: (i) Commodity rate applied. (iii) Pick-up and/or delivery. (xi) Total charges and an indication as to whether charges are prepaid or collect. (c) Each holder of an operating authorization as an international air freight forwarder shall prepare an accurate manifest showing every individual shipment included in each consolidated shipment consigned for transportation to a direct air carrier by such holder. There shall be set forth in each such manifest the following information: (1) The number of the international air freight forwarder's individual airwaybill for each individual shipment within a consolidated shipment. (2) Name of the direct air carrier transporting the shipment and the number of the air carrier's airwaybill under which the shipment is transported. (3) Date of shipment. (4) Weight of each individual shipment and the total weight of consolidated shipment. (5) When a consolidated shipment consists of a combination of shipments to be transported to points in the United States and foreign points outside thereof, a clear statement that shipments with a Subpart C-Limitations on Exemptions Scope of service authorized. Operation of large aircraft. 298.23 Business name of air taxi operator. Subpart D-Violations 298.30 Enforcement. AUTHORITY: The provisions of this Part 298 issued under sec. 204(a), 72 Stat. 743; 49 U.S.C. 1324. Interpret or apply secs. 411, 416, 72 Stat. 769, 771; 49 U.S.C. 1381, 1386, except as otherwise noted. SOURCE: The provisions of this Part 298 contained in ER-317, 25 F.R. 12910, Dec. 16, 1960, except as otherwise noted. Subpart A-General § 298.1 Applicability of part. This part establishes a classification of air carriers known as "air taxi operators," provides certain exemptions from Title IV of the Federal Aviation Act of 1958, as amended, for such air carriers, and establishes rules and regulations applicable to their operations. This part applies to operations of air taxi operators in air transportation in all States, Territories and possessions of the United States of America. § 298.2 Definitions. As used in this part: "Act" means the Federal Aviation Act of 1958, as amended. "Air taxi operator" means an air carrier coming within the classification of "air taxi operators" established by § 298.3. "Air transportation" means interstate, overseas, or foreign air transportation or the transportation of mail by aircraft. This includes carriage by aircraft as a common carrier between places in the same State (a) through airspace outside that State (over other States or the District of Columbia or the open sea or foreign territory) or (b) where such carriage is part of the movement of the passengers or property carried, in interstate, overseas or foreign air commerce." "Large aircraft" means an aircraft whose maximum certificated takeoff weight is greater than 12,500 pounds. "Maximum certificated takeoff weight" means the maximum takeoff weight authorized by the terms of the aircraft airworthiness certificate. (This is found in the airplane operating record or in the airplane flight manual which is incorporated by regulation into the airworthiness certificate.) "Point" when used in connection with any territory or possession of the United States, or the States of Alaska and Hawaii, means any airport or place where aircraft may be landed or taken off, including the area within a 25-mile radius of such airport or place; when used in connection with the continental United States, except Alaska, it shall have the same meaning except be limited to the area within a 3-mile radius of such airport or place: Provided, That for the purposes of this part, West 30th Street Heliport and Pan Am Building Heliport, both located in New York City, shall be regarded as separate points. "Tourist sightseeing service" means an air-surface sightseeing tour in Hawaii which originates and terminates at the city of Honolulu and is scheduled to be completed within an 18-hour period and in which (a) there is a minimum of three scheduled aircraft stops at places other than Honolulu, (b) stopovers are not permitted except as required by the tour itineraries, and (c) the price of the tour includes round-trip air transportation via all scheduled stops, all ground transportation services at the stops and all meals during the tour. [ER-438, 30 F.R. 9204, July 23, 1965] 13 Section 401(a) of the Federal Aviation Act of 1958, 49 U.S.C. 1371, prohibits any person from engaging in "air transportation" except to the extent he is authorized to do so by the Board. (a) There is hereby established a classification of air carriers, designated "air taxi operators" which engage in the direct air transportation of passengers and/or property and/or in the transportation within the 48 contiguous States or Hawaii 15 of mail by aircraft and which: (1) Do not, directly or indirectly, utilize large aircraft in air transportation, and (2) Do not hold a certificate of public convenience and necessity or other economic authority issued by the Board. Provided, however, That any authority granted in this part to engage in the transportation of mail is limited to the carriage of mail on a non-subsidy basis; i.e., on a service mail rate to be paid entirely by the Postmaster General, and the air taxi operator shall not be entitled to any subsidy payment with respect to any operations conducted pursuant to any authority granted in this part. (b) A person who does not observe the conditions set forth in paragraph (a) of this section shall not be an air taxi operator within the meaning of this part with respect to any operations conducted by him while such conditions are not being observed, and during such periods is not entitled to any of the exemptions set forth in this part. [ER-317, 25 F.R. 12910, Dec. 16, 1960, as amended by ER-445, 30 F.R. 12669, Oct. 5, 1965] § 298.4 Requests for statement of authority. In any instance where an air taxi operator is required by a foreign government to produce evidence of its authority to engage in foreign air transportation under the laws of the United States, the Secretary of the Board will, upon request, furnish the carrier with a written statement, outlining its general operating privileges under this part for presentation to the proper authorities of the foreign government. § 298.5 Separability. If any provision of this part or the application thereof to any air transportation, person, class of persons, or 15 The authority of air taxis to carry mail in Hawaii is limited to the markets where point-to-point regular service may be provided under this part. circumstances is held invalid, the remainder of the part and the application of such provision to other air transportation, persons, classes of persons, or circumstances shall not be affected thereby. Subpart B-Exemptions § 298.11 Exemption authority. Air taxi operators are exempt from the following provisions of Title IV of the Act: (a) Subsection 401(a); (b) Section 403; (c) All provisions in subsection 404 (a) except the requirement that air taxi operators shall provide safe service, equipment, and facilities in connection with air transportation; (d) Subsection 404(b); (f) Subsections 407 (b), (c), and (d); (g) Subsection 408(a); except that no exemption is granted hereby for any air taxi operator to enter into any of the transactions or relationships prohibited by subsection 408(a) with any person who operates large aircraft for compensation or hire, or who engages in air transportation from which the air taxi operator is excluded by the limitations imposed by § 298.21. NOTE: For additional exemptions from section 408(a) applicable to air taxi operators, see Part 299 of the Board's Economic Regulations. (h) Subsection 409 (a); except that no exemption is granted hereby for any air taxi operator to enter into any of the relationships prohibited by subsection 409 (a) with any person who operates large aircraft for compensation or hire, or who engages in air transportation from which the air taxi operator is excluded by the limitations imposed by § 298.21. (i) Subsection 412(a): Provided, That air taxi operators shall not be relieved from filing with the Board a true copy, or, if oral, a true and complete memorandum of every contract or agreement (whether enforceable by provisions of liquidated damages, penalties, bonds or otherwise) affecting air transportation, between any air taxi operator and any person (excluding air carriers) who operates for compensation or hire, aircraft having a maximum take-off weight of more than 12,500 pounds. (ER-317, 25 F.R. 12910, Dec. 16, 1960, as amended, ER-399, 29 F.R. 1317, Jan. 25, 1964] § 298.12 Effect of exemption on antitrust laws. The exemption granted in § 298.11 from sections 408, 409 (a), and 412 of the Act shall not constitute an order under such sections, within the meaning of section 414 of the Act, and shall not confer any immunity or relief from operation of the "anti-trust laws," or any other statute (except the Federal Aviation Act of 1958, as amended) with respect to any transaction, interlocking relationship, or agreement otherwise within the purview of such sections. § 298.13 Duration of exemption. The exemption from any provision of Title IV of the Act provided by § 298.11 shall continue in effect only until such time as the Board shall find that enforcement of such provision would be in the public interest or would no longer be a burden on air taxi operators: Provided, That upon such a finding as to any air taxi operator or class of air taxi operators, such exemption shall to that extent terminate with respect to such operator or class of operators: And provided further, That the authorization to air taxi operators to engage in the transportation of mail by aircraft within the 48 contiguous States and Hawaii shall terminate on December 31, 1968. [ER-448, 30 F.R. 12669, Oct. 5, 1965] § 298.14 Approval of certain interlocking relationships. To the extent that any officer or director of an air taxi operator would be in violation of any of the provisions of section 409(a) (3) and (6) by participating in interlocking relationships covered by the exemption granted in § 298.11(h), such participation is hereby approved by the Board, subject, however, to the provisions of § 298.12. (Interpret or apply sec. 409, 72 Stat. 768; 49 U.S.C. 1379) [ER-331, 26 F.R. 4993, June 6, 1961] Subpart C-Limitations on Exemptions § 298.21 Scope of service authorized. (a) General scope. The exemption authority provided to air taxi operators by this part shall extend to the direct air transportation of persons, property and mail (subject to the limitations imposed in §§ 298.3 (a) and 298.13) in aircraft having a maximum takeoff weight of 12,500 pounds or less, except as pro |