[Federal Register Volume 64, Number 143 (Tuesday, July 27, 1999)]
[Rules and Regulations]
[Pages 40654-40675]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-18700]



[[Page 40653]]

_______________________________________________________________________

Part II





Department of Transportation





_______________________________________________________________________



Office of the Secretary



_______________________________________________________________________



14 CFR Parts 221, 250, and 293



Exemptions From Passenger Tariff-Filing Requirements in Certain 
Instances; Final Rule

Federal Register / Vol. 64, No. 143 / Tuesday, July 27, 1999 / Rules 
and Regulations

[[Page 40654]]



DEPARTMENT OF TRANSPORTATION

Office of the Secretary

14 CFR Parts 221, 250, and 293

[Docket No. OST-97-2050]
RIN 2105-AC61


Exemptions From Passenger Tariff-Filing Requirements in Certain 
Instances

AGENCY: Office of the Secretary, DOT.

ACTION: Final rule.

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SUMMARY: Pursuant to the notice procedures in new part 293, the 
Department is exempting U.S. and foreign air carriers from the 
statutory and regulatory duty to file international passenger tariffs 
with DOT in certain instances, subject to the reimposition of the duty 
in specific cases when consistent with the public interest. In 
addition, the Department is reissuing a new version of part 221 that 
eliminates most of the traditional paper format and filing procedures 
set forth in the present version of 14 CFR part 221.
    Following the notice specified in new part 293, certain currently 
effective price tariffs are canceled as a matter of law, pending tariff 
applications covered by the exemption are dismissed, and new tariffs 
will generally not be accepted for filing. In response to comments, 
currently effective rules related to general ``conditions of carriage'' 
of each passenger, set forth in general governing rules tariffs, may 
continue in legal effect for 180 days from the date of effectiveness of 
the final rule, although carriers may elect to cancel them earlier and 
may also deviate from such rules through express agreement. This action 
is taken on the Department's initiative in order to streamline 
government operations and eliminate unjustified regulatory burdens.

DATES: This regulation is effective on September 10, 1999. However, the 
cancellation of certain general tariff rules will take place 180 days 
later as provided in Sec. 293.10 of new part 293.

FOR FURTHER INFORMATION CONTACT: Mr. John H. Kiser or Mr. Keith A. 
Shangraw, Office of the Secretary, Office of International Aviation, X-
43, Department of Transportation, 400 Seventh Street SW., Washington, 
DC 20590. Telephone: (202) 366-2435.

SUPPLEMENTARY INFORMATION:

Background

    Section 41504 of Title 49 of the United States Code (the Code), 
formerly section 403(a) of the Federal Aviation Act of 1958, as 
amended, requires every U.S. and foreign air carrier to file with the 
Department, and to keep open for public inspection, tariffs showing all 
prices for ``foreign air transportation'' between points served by that 
carrier, as well as all the rules relating to that transportation to 
the extent required by the Department. This requirement includes 
passenger fares, related charges and governing rules. 14 CFR part 221 
establishes the detailed tariff-filing rules and authority for 
approvals, rejections and waivers. Once allowed to become effective by 
the Department, these tariffs become legally binding terms in the 
contract of carriage for international air transportation.
    In his Regulatory Reinvention Initiative Memorandum of March 4, 
1995, President Clinton directed Federal agencies to conduct a page-by-
page review of all of their regulations and to ``eliminate or revise 
those that are outdated or otherwise in need of reform.'' In response 
to that directive, the Department has undertaken a review of its 
aviation economic regulations contained in 14 CFR Chapter II to 
determine whether changes should be made to promote economic growth, 
create jobs, or eliminate unnecessary costs or other burdens on the 
economy. Among the regulations reviewed are those governing the filing 
of tariffs by airlines for their foreign air transportation, set forth 
in 14 CFR part 221.
    In two recently completed rulemaking proceedings, the Department 
determined that the amount of tariff material filed by carriers 
exceeded our regulatory requirements in certain respects; that 
alternative methods existed for protecting consumers and other elements 
of the public interest which are more effective than filed tariffs; and 
that procedures should be developed to foster the electronic filing and 
the review of those tariffs which should continue to be filed. On 
November 30, 1995, the Department published a final rule exempting 
carriers from their regulatory duty to file tariffs for the foreign air 
transportation of cargo. On April 24, 1996, the Department published a 
final rule establishing procedures for the electronic filing of 
passenger rules tariffs.
    In this, the third rulemaking proceeding involving the tariff 
system, undertaken as part of the President's directive, the Department 
has determined that the filing of certain tariffs with the Department 
for the foreign air transportation of passengers is no longer necessary 
or appropriate, and accordingly grants another exemption from the 
tariff-filing requirement set forth in part 221. Under the rule in new 
part 293, the Assistant Secretary will issue a notice specifying the 
terms of the exemptions for markets in Category A (no fare filing), 
Category B (normal economy fare filing only) or Category C (filing all 
fares), taking into account specific factors present in each market. 
After this first determination, the Assistant Secretary, acting on his 
own initiative or in response to petitions, may issue further notices 
transferring countries between categories. For example, the entry into 
force of an ``open skies'' air transport agreement would warrent moving 
a country into Category A where no fares will be filed. On the other 
hand, foreign government actions denying U.S. carrier pricing 
initiatives, could justify the re-institution of full tariff filing 
reguirements in Category C.1
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    \1\ However, adverse foreign government actions in areas not 
directly involving pricing, such as route and capacity issues, would 
not warrant re-institution of full Category C tariff filing 
requirements, except in the most unusual circumstances.
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    In addition, the Department has identified a substantial number of 
provisions in part 221 that are redundant, contain obsolete references, 
or are out-dated given present regulatory practices and needs. 
Accordingly, the Department is issuing a general revision of part 221 
to eliminate redundancies, excess verbiage and obsolete provisions; to 
make necessary technical changes; and to reorganize the subparts in a 
more logical order.

Comments

    We received comments on our proposal from Air Pacific Limited (Air 
Pacific); the Airline Tariff Publishing Company (ATPCO); the Air 
Transport Association of America (ATA); British Airways PLC (BA); 
Federal Express Corporation (FedEx); the International Air Transport 
Association (IATA); Korean Air Lines Co., Ltd. (KAL); Pakistan 
International Airlines Corporation (PIA); Qantas Airways Limited 
(Qantas); and United Air Lines, Inc. (UAL). Finally, on September 30, 
1997, ATA filed a motion for leave to file supplemental 
comments.2
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    \2\ We grant ATA's motion.
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    The carriers did not comment upon the proposed revisions to part 
221 itself, except where expressing general approval. However, ATA 
expressed concern with our tentative decision to leave intact the 
existing Warsaw Convention notice requirements in part 221 until future 
needs in this area become clearer. While initially requesting only that 
the Department be

[[Page 40655]]

prepared to make future changes to these requirements to reflect the 
new passenger liability limits agreed to by many carriers, ATA, in its 
supplemental comments, urges the Department to adopt herein ``a more 
flexible notice requirement'' that would permit carriers which have 
filed tariff revisions waiving the Warsaw passenger liability limits 
pursuant to DOT-approved agreements to devise, subject to DOT approval, 
a single ticket notice to replace both the detailed notice prescribed 
in current Sec. 221.175 for services involving the United States and 
the separate, worldwide Warsaw liability notice appearing on standard 
ticket stock.
    Comments regarding the proposed exemption from passenger tariff 
filing requirements were generally positive. For the most part, BA, 
FedEx, KAL, PIA and UAL, as well as ATA and ATPCO generally support the 
proposal. IATA takes no position on the proposal to exempt airlines 
from the requirement to file passenger fare tariffs in certain 
instances, but supports the proposal to exempt all airlines from the 
requirement to file general passenger rules tariffs. Air Pacific and 
Qantas oppose the proposed exemption from filing general passenger 
rules tariffs because they prefer to continue to rely on the presumed 
notice to passengers, stemming from the formal filing of these rules, 
as a defense against various kinds of passenger claims. ATA urges the 
Department to remove the word ``conflicting'', which it believes limits 
protection from preemption by state laws, in the proposed section 
293.21(c). This section sets uniform disclosure requirements which 
preempt any conflicting State requirements on the incorporation of 
terms by reference into contracts of carriage for scheduled 
transportation of passengers in foreign air transportation.
    Several parties express concerns or condition their support upon 
modifications to the proposal. ATA, BA and IATA support the exemption 
from the requirement to file general passenger rules provided that the 
cancellation of these rules tariffs is extended an additional 90 days 
(for a total transition period of 180 days following the Assistant 
Secretary's notice). ATPCO expresses concerns about the amount of time 
needed to adjust its electronic filing system to the new filing regime, 
but nevertheless states that the airlines should not be denied 
immediate relief from the burden of filing their tariffs. Accordingly, 
APTCO requests that the Department permit carriers or their agents to 
continue to file their tariffs electronically in the same manner as 
today without paying the Department's filing fees until ATPCO can 
reconfigure its electronic filing system (EFS). ATA requests that the 
Department not grant carriers of countries in Categories A or B an 
exemption from filing fares for travel between the United States and a 
third country (i.e., on fifth and sixth freedom services) unless that 
carrier's home country has agreed bilaterally to a pricing regime which 
affords U.S. carriers the right to exercise price leadership in fifth 
and sixth freedom markets, as well as in third and fourth freedom 
markets. Finally, UAL takes issue with the categories in which the NPRM 
proposed to place certain countries and urges that the NPRM's country-
category list and any future actions regarding categorization of 
countries be subject to the procedures for public notice and comment.

Decision

    We have decided to adopt the NPRM essentially as proposed, with 
certain minor changes in response to the comments. First, we will grant 
the requests to extend the proposed transition period for cancellation 
of the general passenger rules tariffs in section 293.22 from 90 days 
to 180 days after the Assistant Secretary issues his notice containing 
the initial description of those general conditions of passenger 
carriage that must still be filed in tariffs. On the other hand, we 
will grant carriers the option to cancel their official general rules 
tariffs involving conditions of carriage before the end of the 180 day 
period, and to deviate from any rules on file by express agreement with 
the passenger, such as by ticket notation.
    Second, while not adopting ATA's suggestion in its entirety, we 
will modify our category procedures to allow the Assistant Secretary 
the option to require carriers who are nationals of countries placed in 
Categories A and B nevertheless to continue to file their passenger 
tariffs for services between the U.S. and third countries if effective 
price leadership opportunities for U.S. carriers are not available 
between the foreign carrier's home country and third countries.
    Finally, third, we will amend the language of section 293.21, as 
suggested by ATA, to avoid any confusion on the state of federal 
preemption law under Title 49.

Discussion of Comments and Issues

1. Transitional Period

    Most of the responses concern the length of the transitional 
period. Consistent with our action on our final rule exempting carriers 
from filing their cargo tariffs, we proposed a 90-day phase-out 
schedule for passenger rules tariffs. ATA, BA and ATA feel that a 90-
day transitional period would be too short, and that more time is 
needed to revise passenger travel documents and notice procedures. ATA 
argues that carriers need more time to assure a smooth transition to 
the new regime given the longstanding requirement to file passenger 
tariffs and the overall complexity of the foreign air transportation 
environment. BA asserts that continuation of that existing regime for 
another 180 days would cause no harm, and would benefit both passengers 
and carriers by reducing the possibility that the old tariff system for 
filing passenger rules will expire before the new section 221.177 
notice system can be fully implemented.
    We feel that the concerns expressed about the need for a longer 
period to facilitate a smooth transition to the new regime have merit; 
therefore, we have no problem with extending the transition period 
under section 293.22 to 180 days. While we did not extend the 
transitional period in the case of our cargo tariff filing exemption, 
in this case we believe that the diverse general rules involved may 
make the transition process more complicated, warranting a longer 
transition period. This 180-day transition period will begin after 
issuance of the Assistant Secretary's notice setting forth the initial 
list of exempted markets and the descriptions of those general rules 
relating to conditions of carriage that are being exempted from the 
filing requirement.

2. ATPCO EFS Reconfiguration

    ATPCO is concerned not only about the time needed to reconfigure 
its electronic tariff filing system but also with the associated 
expense. Accordingly, while it will have to continue to file tariffs in 
the exempted markets until it completes reprogramming to segregate 
exempted and non-exempted markets, ATPCO suggests that the Department 
desist from collecting the usual filing fees on exempted fares and 
rules on the grounds that DOT will not have to review the exempted 
matter.
    With regard to ATPCO's request for relief from paying our filing 
fees, we will continue to collect these fees for tariffs filed during 
the period it needs to reprogram its electronic tariff filing system to 
exclude exempted material. Until the Assistent Secretary's notice 
becomes effective, the exemption for certain markets and fares is not 
in force. Further, until ATPCO completes its reprogramming, the 
Department will continue to receive passenger tariff filings that 
include both required and

[[Page 40656]]

exempted tariff material. Department analysts will have to continue to 
review each tariff filing during this period to ensure that no required 
tariff material is overlooked. In the short term, demands on the 
Department's limited resources will continue at the same level.

3. Comments on Country Categories

    UAL voices concerns about the classification of certain countries. 
It disagrees with the tentative placement of one of the listed 
countries into Category A, rather than Category C, for reasons related 
to its alleged noncompliance with the terms of its bilateral agreement 
with the United States.
    It appears that some commenters believe that the markets listed in 
the NPRM will be immediately exempted from our tariff filing 
requirements upon issuance of a final rule on Part 221. This is not so; 
these markets were included in the NPRM for illustrative purposes only 
based on the status of bilateral agreements and relations at that time. 
We would like to make it clear that a further notice from the 
Department is necessary before any markets are exempted from our tariff 
filing requirements. The final rule will merely put this mechanism into 
place.
    We do not agree with United that it is appropriate to specify in 
this rule whether and when the Department may request comment on its 
categorization of countries or adjustments to fifth/sixth freedom 
filing requirements. As a general matter, the characterization of 
bilateral agreements and their implementation for regulatory purposes 
is a question of the international aviation policy judgment of the 
Department, and certainly that would be the case under part 293. 
Carriers experiencing significant bilateral problems usually keep the 
Department well informed of the circumstances. A case in point is the 
determination of ``liberal'' markets for SFFL purposes. Certainly, if a 
situation arises in which the Department believes that public comment 
would be helpful, it will provide specific notice and opportunity for 
comment. For this reason, we will amend subsection 293.10(c) to delete 
the implication of advance formal procedures for public comment.

4. Filing of Tariffs for Fifth and Sixth Freedom Markets

    ATA is concerned that under the rule as proposed, foreign carriers 
from countries in Categories A and B could be exempt from filing fares 
for their fifth and sixth freedom services to and from U.S. points even 
though their government has not agreed bilaterally to a pricing regime 
which affords U.S. carriers the right to exercise price leadership on 
their fifth and sixth freedom services to/from that country. UAL 
generally supports ATA's concerns.
    We find that this concern has merit. Such price leadership issues 
are certainly relevant to our stated category criteria. However, this 
is an area in which we have decided to allow for a more flexible 
response than that suggested by ATA. We have decided to add a new 
subparagraph (c) to section 293.10 of our proposal. Under that 
subparagraph, the Assistant Secretary may require carriers of countries 
placed in Categories A or B nevertheless to continue to file passenger 
tariffs for services they offer between the U.S. one or more third 
countries. In making this determination, the Assistant Secretary will 
take into consideration the bilateral rights or extra-bilateral 
opportunities of U.S. carriers to comparable price leadership 
initiatives, as well as their implementation by the foreign carrier's 
government.
    Consequently, if there are countries in categories A or B that, in 
fact, restrict fifth and/or sixth freedom fare initiatives of U.S. 
carriers for services between that foreign country and a third country, 
we may consider either placing that country into a different category 
or nevertheless requiring its carriers to continue to file tariffs for 
their fifth and/or sixth freedom services with the Department.
    Our determinations whether to apply a tariff filing requirement on 
foreign carriers' fifth and/or sixth freedom services will be based on 
the actual treatment by the foreign carrier's government of comparable 
U.S. carrier pricing initiatives as well as on the formal bilateral 
arrangements involved. The purpose of our rulemaking here is to lessen 
the burden of filing passenger tariffs on both carriers and the 
Department. ATA's proposal for a general requirement that the bilateral 
rights be explicit would affect a significant number of countries where 
we do not have formal fifth and/or sixth freedom price leadership rules 
in place but, nevertheless, where U.S. carriers in practice may set 
such prices without government interference. These additional filings 
would simply place an additional burden on the Department that could 
not be justified by the small advantage gleaned from requiring carriers 
from countries who do not actively regulate US carriers prices to file 
tariffs for their fifth and sixth freedom services.

5. Preemption

    ATA requests that the word ``conflicting'' be deleted from section 
293.21(c) arguing that such a qualification does not appear in the 
statement of federal preemption regarding the incorporation by 
reference of contract terms for domestic travel in 14 CFR 253.1, and 
that it suggests a legal standard that would be inconsistent with the 
settled state of the law on federal preemption under section 105(b) of 
the Airline Deregulation Act, now section 41713(b) of Title 49.
    We will make the change that ATA recommends. It was not our 
intention to limit or confuse in any way the scope of preemption of 
state law under section 41713(b), interpreted in such cases as Morales 
v. Trans World Airlines, 112S. Ct. 2031 (1992), and American Airlines 
v. Wolens, 115S. St. 817 (1995). In both cases, the Supreme Court found 
that any state laws broadly ``having a connection with or reference to 
airline rates, routes or services'' are preempted, without the need for 
a ``conflict of laws'' analysis.

6. Warsaw Convention

    ATA's initial comments acknowledged that the recently approved 
intercarrier agreements waiving Warsaw Convention passenger liability 
limits could require some changes to part 221, but concluded that it is 
premature to attempt to resolve these issues in this rulemaking 
proceeding. In its supplementary comments, however, ATA now requests 
that the Department make substantive changes to the Warsaw Convention 
requirements embodied in part 221. ATA's desire for a more flexible 
notice requirement is understandable. However, for the most part, our 
purpose in reissuing part 221 is to align our tariff-filing 
requirements with present regulatory needs and policies. We will deal 
with any substantive policy changes to the part 221 Warsaw notice 
requirements in a separate proceeding.

7. Filings as Constructive Notice

    Only two carriers oppose the proposal, set out in the NPRM, to 
exempt all carriers from the requirement to file their general 
passenger conditions-of-carriage rules tariffs. Air Pacific and Qantas 
both argue that they rely on their filed passenger rules tariffs as a 
defense against various kinds of passenger claims. In our final cargo 
exemption rule, we addressed the issue of legal notice to consumers of 
contract terms, including general conditions of carriage. We concluded 
that the elimination of cargo rules tariffs in the context of our 
notice provisions would

[[Page 40657]]

not impose significant economic or administrative burdens on carriers 
or shippers, and that any changes in procedure were justified by 
improvements in overall consumer fairness and system efficiency 
3. Air Pacific and Qantas have failed to provide any reasons 
as to why passenger rules tariffs should be treated differently than 
cargo rules tariffs or why relying on the tariff filing mechanism for 
passenger notice is better than relying on normal contract law.
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    \3\ See 60 Fed. Reg. 61472 (November 30, 1995).
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Regulatory Analyses and Notices

Executive Order 12866 and DOT Regulatory Policies and Procedures

    The Department has determined that this final rule is not a 
significant regulatory action under Executive Order 12866 or under the 
Department's Regulatory Policies and Procedures (44 CFR 11034-Feb. 26, 
1979). The rule will reduce the paperwork and filing burden for all 
U.S. and foreign air carriers submitting international passenger 
tariffs to the Department. The Department anticipates that the final 
rule could save international scheduled service passenger airlines as 
much as $3.23 million in tariff-filing and preparation expenses, based 
on figures submitted to OMB under the Paperwork Reduction Act for 
reinstatement of the part 221 information collection. The Department 
does not expect there to be any additional costs associated with this 
rule.

Executive Order 12611

    This final rule has been analyzed in accordance with the principles 
and criteria contained in Executive Order 12612 (``Federalism''), and 
the Department has determined the rule does not have sufficient 
federalism implications to warrant the preparation of a Federalism 
Assessment.

Regulatory Flexibility Act

    I certify that this rule a will not have a significant economic 
impact on a substantial number of small entities, because the tariff 
filing requirements apply to scheduled service air carriers. The vast 
majority of the air carriers filing international (``foreign'') air 
passenger tariffs are large operators with revenues in excess of 
several million dollars each year. Small air carriers operating 
aircraft with 60 seats or less and 18,000 pounds payload or less that 
offer on-demand air-taxi service are not required to file such tariffs.

Paperwork Reduction Act

    With respect to the Paperwork Reduction Act, the reissue of part 
221 eliminates any residual paper tariff format and filing procedures 
and replaces them with more efficient electronic filing procedures. In 
addition, the new part 293 exempts carriers from their statutory and 
regulatory duty to file international passenger tariffs in certain 
specific markets, subject to reimposition of this duty when required by 
the public interest. Thus, this rule will significantly reduce the 
paperwork and filing burden on government and industry, even though it 
does not totally eliminate information collection requirements that 
require the approval of the Office of Management and Budget pursuant to 
the Act. While not estimated, we expect that costs of governmental 
review, filing and archiving of paper tariff rule filing will be 
similarly reduced.
    The reporting and recordkeeping requirement associated with this 
rule are being submitted to OMB for approval in accordance with The 
Paperwork Reduction Act of 1995 (Public Law 104-113) under OMB No. 
2106-0009; Administration: Department of Transportation, TITLE: 
Exemption from Passenger Tariff-Filing Requirements in Certain 
Instances, and Mandatory Electronic Filing of Residual Passenger 
Tariffs; NEED FOR INFORMATION: Exempts carriers from their statutory 
and regulatory duty to file international passenger tariffs in certain 
specific markets, subject to reimposition of this duty when required by 
the public interest, and eliminates residual paper tariff format and 
filing procedures, replacing them with more efficient electronic filing 
procedures; PROPOSED USE OF INFORMATION: Exemption is based on 
evolution in regulatory circumstances, while elimination of residual 
paper tariff filing procedures is based on the need to extend the 
efficiencies of electronic data transmission and processing to the 
filing of all passenger tariffs; FREQUENCY: An initial passenger tariff 
rule filing is required of each respondent; changes are voluntary, 
whenever an air carrier elects.
    Estimated Total Annual Burden Under Proposal: 650,000 hours;
    Respondents: 230; FORM(S) 13,340 electronic filings or applications 
per annum;
    Average Burden Hours Per Respondent: 2,826 hours.
    For further information on paperwork reduction contact: The Special 
Authorities Requirements Division, X-57, Office of the Secretary of 
Transportation, 400 Seventh Street, SW, Washington, DC 20590, (202) 
366-4534 or DOT Desk Officer, Office of Management and Budget, New 
Executive Office Building, Room 3228, Washington, DC 20503.
    Any comments regarding the burden estimate or any aspect of these 
information requirements, including suggestions for reducing the 
burden, may be sent to: Director, Office of International Aviation, (X-
40), U.S. Department of Transportation, Office of the Secretary, 400 
Seventh Street, SW., Room 6402, Washington, DC 20090-0001 as well as 
the above contact.

Regulation Identifier Number

    A regulation identifier number (RIN) is assigned to each regulatory 
action listed in the Unified Agenda of Federal Regulations. The 
Regulatory Information Service Center publishes the Unified Agenda in 
April and October of each year. The RIN number contained in the heading 
of this document can be used to cross reference this action with the 
Unified Agenda.
    An electronic version of the document is available on the World 
Wide Web at ``http://dms.dot.gov//reports/reports--aviation.asp''.

List of Subjects

14 CFR Part 221

    Air rates and fares, Agents, Reporting and recordkeeping 
requirements.

14 CFR Part 250

    Air carriers, Consumer protection, Reporting and recordkeeping 
requirements.

14 CFR Part 293

    Air carriers, Airrates and fares, Air transportation, Reporting and 
recordkeeping requirements.

    The final rule revisions and new parts 221 and 293 are being issued 
under the authority contained in 49 CFR 1.56(h)(2). For the reasons set 
forth herein, 14 CFR Chapter II is amended as follows:
    1. Part 221 is revised to read as follows:

PART 221--TARIFFS

Subpart A--General

Sec.
221.1  Applicability of this part.
221.2  Carrier's duty.
221.3  Definitions.
221.4  English language.
221.5  Unauthorized air transportation.

Subpart B--Who Is Authorized to Issue and File Tariffs

221.10  Carrier.
221.11  Agent.

[[Page 40658]]

Subpart C--Specifications of Tariff Publications

221.20  Specifications applicable to tariff publications.

Subpart D--Manner of Filing Tariffs

221.30  Passenger fares and charges.
221.31  Rules and regulations governing passenger fares and 
services.

Subpart E--Contents of Tariff

221.40  Specific requirements.
221.41  Routing.

Subpart F--Requirements Applicable to all Statements of Fares and 
Charges

221.50  Currency.
221.51  Territorial application.
221.52  Airport to airport application, accessorial services.
221.53  Proportional fares.
221.54  Fares stated in percentages of other fares; other 
relationships prohibited.
221.55  Conflicting or duplicating fares prohibited.
221.56  Applicable fare when no through local or joint fares.

Subpart G--Governing Tariffs

221.60  When reference to governing tariffs permitted.
221.61  Rules and regulations governing foreign air transportation.
221.62  Explosives and other dangerous or restricted articles.
221.63  Other types of governing tariffs.

Subpart H--Amendment of Tariffs

221.70  Who may amend tariffs.
221.71  Requirement of clarity and specificity.
221.72  Reinstating canceled or expired tariff provisions.

Subpart I--Suspension of Tariff Provisions by Department

221.80  Effect of suspension by Department.
221.81  Suspension supplement.
221.82  Reissue of matter continued in effect by suspension to be 
canceled upon termination of suspension.
221.83  Tariff must be amended to make suspended matter effective.
221.84  Cancellation of suspended matter subsequent to date to which 
suspended.

Subpart J--Filing Tariff Publications With Department

221.90  Required notice.
221.91  Delivering tariff publications to Department.
221.92  Number of copies required.
221.93  Concurrences or powers of attorney not previously filed to 
accompany tariff transmittal.
221.94  Explanation and data supporting tariff changes and new 
matter in tariffs.

Subpart K--Availability of Tariff Publications for Public Inspection

221.100  Public notice of tariff information.
221.101  Inspection at stations, offices, or locations other than 
principal or general office.
221.102  Accessibility of tariffs to the public.
221.103  Notice of tariff terms.
221.105  Special notice of limited liability for death or injury 
under the Warsaw Convention.
221.106  Notice of limited liability for baggage; alternative 
consolidated notice of liability limitations.
221.107  Notice of contract terms.
221.108  Transmission of tariff filings to subscribers.

Subpart L--Rejection of Tariff Publications

221.110  Department's authority to reject.
221.111  Notification of rejection.
221.112  Rejected tariff is void and must not be used.

Subpart M--Special Tariff Permission to File on Less Than Statutory 
Notice

221.120  Grounds for approving or denying Special Tariff Permission 
applications.
221.121  How to prepare and file applications for Special Tariff 
Permission.
221.122  Special Tariff Permission to be used in its entirety as 
granted.
221.123  Re-use of Special Tariff Permission when tariff is 
rejected.

Subpart N--Waiver of Tariff Regulations

221.130  Applications for waiver of tariff regulations.
221.131  Form of application for waivers.

Subpart O--Giving and Revoking Concurrences to Carriers

221.140  Method of giving concurrence.
221.141  Method of revoking concurrence.
221.142  Method of withdrawing portion of authority conferred by 
concurrence.

Subpart P--Giving and Revoking Powers of Attorney to Agents

221.150  Method of giving power of attorney.
221.151  Method of revoking power of attorney.
221.152  Method of withdrawing portion of authority conferred by 
power of attorney.

Subpart Q--Adoption Publications Required to Show Change in Carrier's 
Name or Transfer of Operating Control

221.160  Adoption notice.
221.161  Notice of adoption to be filed in former carrier's tariffs.
221.162  Receiver shall file adoption notices.
221.163  Agents' and other carriers' tariffs shall reflect adoption.
221.164  Concurrences or powers of attorney to be reissued.
221.165  Cessation of operations without successor.

Subpart R--Electronically Filed Tariffs

221.170  Applicability of the subpart.
221.180  Requirements for electronic filing of tariffs.
221.190  Time for filing and computation of time periods.
221.195  Requirement for filing printed material.
221.200  Content and explanation of abbreviations, reference marks 
and symbols.
221.201  Statement of filing with foreign governments to be shown in 
air carrier's tariff filings.
221.202  The filing of tariffs and amendments to tariffs.
221.203  Unique rule numbers required.
221.204  Adoption of provisions of one carrier by another carrier.
221.205  Justification and explanation for certain fares.
221.206  Statement of fares.
221.210  Suspension of tariffs.
221.211  Cancellation of suspended matter.
221.212  Special tariff permission.
221.300  Discontinuation of electronic tariff system.
221.400  Filing of paper tariffs required.
221.500  Transmission of electronic tariffs to subscribers.
221.550  Copies of tariffs made from filer's printer(s) located in 
Department's public reference room.
221.600  Actions under assigned authority and petitions for review 
of staff action.

    Authority: 49 U.S.C. 40101, 40109, 40113, 46101, 46102, chapter 
411, chapter 413, chapter 415 and chapter 417, subchapter I.

Subpart A--General


Sec. 221.1  Applicability of this part.

    All tariffs and amendments to tariffs of air carriers and foreign 
air carriers filed with the Department pursuant to chapter 415 of the 
statute shall be constructed, published, filed, posted and kept open 
for public inspection in accordance with the regulations in this part 
and orders of the Department.


Sec. 221.2  Carrier's duty.

    (a) Must file tariffs. (1) Except as provided in paragraph (d) of 
this section, every air carrier and every foreign air carrier shall 
file with the Department, and provide and keep open to public 
inspection, tariffs showing all fares, and charges for foreign air 
transportation between points served by it, and between points served 
by it and points served by any other air carrier or foreign air 
carrier, when through service and through rates shall have been 
established, and showing to the extent required by regulations and 
orders of the Department, all classifications, rules, regulations, 
practices, and services in connection with such foreign air 
transportation.
    (2) Tariffs shall be filed, and provided in such form and manner, 
and shall contain such information as the Department shall by 
regulation or order prescribe. Any tariff so filed which is not 
consistent with chapter 415 of the statute and such regulations and 
orders may be rejected. Any tariff so rejected shall be void, and may 
not be used.
    (b) Must observe tariffs. No air carrier or foreign air carrier 
shall charge or demand or collect or receive a greater or less or 
different compensation for

[[Page 40659]]

foreign air transportation or for any service in connection therewith, 
than the fares and charges specified in its currently effective 
tariffs; and no air carrier or foreign air carrier shall, in any manner 
or by any device, directly or indirectly, or through any agent or 
broker, or otherwise, refund or remit any portion of the fares, or 
charges so specified, or extend to any person any privileges or 
facilities, with respect to matters required by the Department to be 
specified in such tariffs, except those specified in such tariffs.
    (c) No relief from violations. Nothing contained in this part shall 
be construed as relieving any air carrier or foreign air carrier from 
liability for violations of the statute, nor shall the filing of a 
tariff, or amendment thereto, relieve any air carrier or foreign air 
carrier from such violations or from violations of regulations issued 
under the statute.
    (d) Exemption authority. Air carriers and foreign air carriers, 
both direct and indirect, are exempted from the requirement of section 
41504 of the statute and any requirement of this chapter to file, and 
shall not file with the Department, tariffs for operations under the 
following provisions:
    (1) Part 291, Domestic Cargo Transportation;
    (2) Part 296, Indirect Air Transportation of Property;
    (3) Part 297, Foreign Air Freight Forwarders and Foreign 
Cooperative Shippers Association;
    (4) Part 298, Exemption for Air Taxi Operations, except to the 
extent noted in Sec. 298.11(b);
    (5) Part 380, Public Charters;
    (6) Part 207, Charter Trips and Special Services;
    (7) Part 208, Terms, Conditions, and Limitations of Certificates to 
Engage in Charter Air Transportation;
    (8) Part 212, Charter Trips by Foreign Air Carriers;
    (9) Part 292, International Cargo Transportation, except as 
provided in part 292.
    (10) Part 293 International Passenger Transportation, except as 
provided in part 293.


Sec. 221.3  Definitions.

    As used in this part, terms shall be defined as follows:
    Add-on means an amount published for use only in combination with 
other fares for the construction of through fares. It is also referred 
to as ``proportional fare'' and ``arbitrary fare''.
    Add-on tariff means a tariff which contains add-on fares.
    Area No. 1 means all of the North and South American Continents and 
the islands adjacent thereto; Greenland; Bermuda; the West Indies and 
the islands of the Caribbean Sea; and the Hawaiian Islands (including 
Midway and Palmyra).
    Area No. 2 means all of Europe (including that part of the former 
Union of the Soviet Socialist Republics in Europe) and the islands 
adjacent thereto; Iceland; the Azores; all of Africa and the islands 
adjacent thereto; Ascension Island; and that part of Asia lying west of 
and including Iran.
    Area No. 3 means all of Asia and the islands adjacent thereto 
except that portion included in Area No. 2; all of the East Indies, 
Australia, New Zealand, and the islands adjacent thereto; and the 
islands of the Pacific Ocean except those included in Area No. 1.
    Bundled normal economy fare means the lowest one-way fare available 
for unrestricted, on-demand service in any city-pair market.
    CRT means a video display terminal that uses a cathode ray tube as 
the image medium.
    Capacity controlled fare means a fare for which a carrier limits 
the number of seats available for sale.
    Carrier means an air carrier or foreign air carrier subject to 
section 41504 of 49 U.S.C. subtitle VII.
    Charge means the amount charged for baggage, in excess of the free 
allowance, accompanying or checked by a passenger or for any other 
service ancillary to the passenger's carriage.
    Conditions of carriage means those rules of general applicability 
that define the rights and obligations of the carrier(s) and any other 
party to the contract of carriage with respect to the transportation 
services provided.
    Contract of carriage means those fares, rules, and other provisions 
applicable to the foreign air transportation of passengers or their 
baggage, as defined in the statute.
    Department means the Department of Transportation.
    Direct-service market means an international market where the 
carrier provides service either on a nonstop or single-flight-number 
basis, including change-of-gauge.
    Electronic tariff means an international passenger fares or rules 
tariff or a special tariff permission application transmitted to the 
Department by means of an electronic medium, and containing fares for 
the transportation of persons and their baggage, and including such 
associated data as arbitraries, footnotes, routings, and fare class 
explanations.
    Fare means the amount per passenger or group of persons stated in 
the applicable tariff for the air transportation thereof and includes 
baggage unless the context otherwise requires.
    Field means a specific area of a record used for a particular 
category of data.
    Filer means an air carrier, foreign air carrier, or tariff 
publishing agent of such a carrier filing tariffs on its behalf in 
conformity with this subpart.
    Item means a small subdivision of a tariff and identified by a 
number, a letter, or other definite method for the purpose of 
facilitating reference and amendment.
    Joint fare means a fare that applies to transportation over the 
joint lines or routes of two or more carriers and which is made and 
published by arrangement or agreement between such carriers evidenced 
by concurrence or power of attorney.
    Joint tariff means a tariff that contains joint fares.
    Local fare means a fare that applies to transportation over the 
lines or routes of one carrier only.
    Local tariff means a tariff that contains local fares.
    Machine-readable data means encoded computer data, normally in a 
binary format, which can be read electronically by another computer 
with the requisite software without any human interpretation.
    On-line tariff database means the remotely accessible, on-line 
version, maintained by the filer, of:
    (1) The electronically filed tariff data submitted to the 
Department pursuant to this part and Department orders, and
    (2) The Departmental approvals, disapprovals, and other actions, as 
well as any Departmental notation concerning such approvals, 
disapprovals, or other actions, that subpart R of this part requires 
the filer to maintain in its database.
    Original tariff refers to the tariff as it was originally filed 
exclusive of any supplements, revised records or additional records.
    Passenger means any person who purchases, or who contacts a ticket 
office or travel agent for the purpose of purchasing, or considering 
the purchase of, foreign air transportation.
    Passenger tariff means a tariff containing fares, charges, or 
governing provisions applicable to the foreign air transportation of 
persons and their baggage.
    Publish means to display tariff material in either electronic or 
paper media.
    Record means an electronic tariff data set that contains 
information describing one (1) tariff price or charge, or information 
describing one (1) related element associated with that tariff price or 
charge.

[[Page 40660]]

    SFFL means the Standard Foreign Fare Level as established by the 
Department of Transportation under 49 U.S.C. 41509.
    Statute means subtitle VII of Title 49, United States Code.
    Statutory notice means the number of days required for tariff 
filings in Sec. 221.160(a).
    Tariff publication means a tariff, a supplement to a tariff, or an 
original or revised record of a tariff, including an index of tariffs 
and an adoption notice (Sec. 221.161).
    Through fare means the total fare from point of origin to 
destination. It may be a local fare, a joint fare, or combination of 
separately established fares.
    Ticket office means a station, office or other location where 
tickets are sold or similar documents are issued, that is under the 
charge of a person employed exclusively by the carrier, or by it 
jointly with another person.
    Unbundled normal economy fare means the lowest one-way fare 
available for on-demand service in any city-pair market which is 
restricted in some way, e.g., by limits set and/or charges imposed for 
enroute stopovers or transfers, exclusive of capacity control.
    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 air space thereof.
    Warsaw Convention means the Convention for the Unification of 
Certain Rules Relating to International Transportation by Air, 49 Stat. 
3000.


Sec. 221.4  English language.

    All tariffs and other documents and material filed with the 
Department pursuant to this part shall be in the English language.


Sec. 221.5  Unauthorized air transportation.

    Tariff publications shall not contain fares or charges, or their 
governing provisions, applicable to foreign air transportation which 
the issuing or participating carriers are not authorized by the 
Department to perform, except where the Department expressly requests 
or authorizes tariff publications to be filed prior to the Department's 
granting authority to perform the foreign air transportation covered by 
such tariff publications. Any tariff publication filed pursuant to such 
express request or authorization which is not consistent with chapter 
415 and this part may be rejected; any tariff publication so rejected 
shall be void.

Subpart B--Who is Authorized To Issue and File Tariffs


Sec. 221.10  Carrier.

    (a) Local or joint tariffs. A carrier may issue and file, in its 
own name, tariff publications which contain:
    (1) Local fares of such carrier only, and provisions governing such 
local fares, and/or
    (2) Joint fares which apply jointly via such issuing carrier in 
connection with other carriers (participating in the tariff 
publications under authority of their concurrences given to the issuing 
carrier as provided in Sec. 221.140) and provisions governing such 
joint fares. Provisions for account of an individual participating 
carrier may be published to govern such joint fares provided 
Sec. 221.40(a)(9) is complied with. A carrier shall not issue and file 
tariff publications containing local fares of other carriers, joint 
rates or fares in which the issuing carrier does not participate, or 
provisions governing such local or joint fares.
    (3) Rules and regulations governing foreign air transportation to 
the extent provided by this part and/or Department order. Rules and 
regulations may be published in separate governing tariffs, as provided 
in subpart G.
    (b) Issuing officer. An officer or designated employee of the 
issuing carrier shall be shown as the issuing officer of a tariff 
publication issued by a carrier, and such issuing officer shall file 
the tariff publication with the Department on behalf of the issuing 
carrier and all carriers participating in the tariff publication.


Sec. 221.11  Agent.

    An agent may issue and file, in his or its own name, tariff 
publications naming local fares and/or joint fares, and provisions 
governing such fares, and rules and regulations governing foreign air 
transportation to the extent provided by this part and/or Department 
order, for account of carriers participating in such tariff 
publications, under authority of their powers of attorney given to such 
issuing agent as provided in Sec. 221.150. The issuing agent shall file 
such tariff publications with the Department on behalf of all carriers 
participating therein. Only one issuing agent may act in issuing and 
filing each such tariff publication.

Subpart C--Specifications of Tariff Publications


Sec. 221.20  Specifications applicable to tariff publications.

    (a) Numerical order. All items in a tariff shall be arranged in 
numerical or alphabetical order. Each item shall bear a separate item 
designation and the same designation shall not be assigned to more than 
one item.
    (b) Carrier's name. Wherever the name of a carrier appears in a 
tariff publication, such name shall be shown in full exactly as it 
appears in the carrier's certificate of public convenience and 
necessity, foreign air carrier permit, letter of registration, or 
whatever other form of operating authority of the Department to engage 
in air transportation is held by the carrier, or such other name which 
has specifically been authorized by order of the Department. A 
carrier's name may be abbreviated, provided the abbreviation is 
explained in the tariff.
    (c) Agent's name and title. Wherever the name of an agent appears 
in tariff publications, such name shall be shown in full exactly as it 
appears in the powers of attorney given to such agent by the 
participating carriers and the title ``Agent'' or ``Alternate Agent'' 
(as the case may be) shall be shown immediately in connection with the 
name.
    (d) Statement of prices. All fares and charges shall be clearly and 
explicitly stated and shall be arranged in a simple and systematic 
manner. Complicated plans and ambiguous or indefinite terms shall not 
be used. So far as practicable, the fares and charges shall be 
subdivided into items or similar units, and an identifying number shall 
be assigned to each item or unit to facilitate reference thereto.
    (e) Statement of rules. The rules and regulations of each tariff 
shall be clear, explicit and definite, and except as otherwise provided 
in this part, shall contain:
    (1) Such explanatory statements regarding the fares, charges, rules 
or other provisions contained in the tariff as may be necessary to 
remove all doubt as to their application.
    (2) All of the terms, conditions, or other provisions which affect 
the fares or charges for air transportation named in the tariff.
    (3) All provisions and charges which in any way increase or 
decrease the amount to be paid by any passenger, or which in any way 
increase or decrease the value of the services rendered to the 
passenger.
    (f) Separate rules tariff. If desired, rules and regulations may be 
published in separate governing tariffs to the extent authorized and in 
the manner required by subpart G.
    (g) Rules of limited application. A rule affecting only a 
particular fare or other provision in the tariff shall be specifically 
referred to in connection

[[Page 40661]]

with such fare or other provision, and such rule shall indicate that it 
is applicable only in connection with such fare or other provision. 
Such rule shall not be published in a separate governing rules tariff.
    (h) Conflicting or duplicating rules prohibited. The publication of 
rules or regulations which duplicate or conflict with other rules or 
regulations published in the same or any other tariff for account of 
the same carrier or carriers and applicable to or in connection with 
the same transportation is prohibited.
    (i) Each tariff shall include:
    (1) A prominent D.O.T. or other number identifying the tariff in 
the sequence of tariffs published by the carrier or issuing agent;
    (2) The name of the issuing carrier or agent;
    (3) The cancellation of any tariffs superseded by the tariff;
    (4) A description of the tariff contents, including geographic 
coverage;
    (5) Identification by number of any governing tariffs;
    (6) The date on which the tariff is issued;
    (7) The date on which the tariff provisions will become effective; 
and
    (8) the expiration date, if applicable to the entire tariff.

Subpart D--Manner of Filing Tariffs


Sec. 221.30  Passenger fares and charges.

    (a) Fares tariffs, including associated data, shall be filed 
electronically in conformity with subpart R. Associated data includes 
arbitraries, footnotes, routing numbers and fare class explanations. 
See Sec. 221.202(b)(8).
    (b) Upon application by a carrier, the Department's Office of 
International Aviation shall have the authority to waive the electronic 
filing requirement in this paragraph and in Subpart R in whole or in 
part, for a period up to one year, and to permit, under such terms and 
conditions as may be necessary to carry out the purposes of this part, 
the applicant carrier to file fare tariffs in a paper format. Such 
waivers shall only be considered where electronic filing, compared to 
paper filing, is impractical and will produce a significant economic 
hardship for the carrier due to the limited nature of the carrier's 
operations subject to the requirements of this part, or other unusual 
circumstances. Paper filings pursuant to this paragraph shall normally 
conform to the requirements of Sec. 221.195 and other applicable 
requirements of this part.


Sec. 221.31  Rules and regulations governing passenger fares and 
services.

    (a) Tariff rules and regulations governing passenger fares and 
services other than those subject to Sec. 221.30 may be filed 
electronically in conformity with subpart R. Such filings shall conform 
to criteria approved by the Department's Office of International 
Aviation as provided in Sec. 221.180 and shall contain at a minimum the 
information required by Sec. 221.202(b)(9).
    (b) Applications for special tariff permission may be filed 
electronically, as provided in Sec. 221.212.
    (c) Tariff publications and applications for special tariff 
permission covered by paragraphs (a) and (b) of this section may be 
filed in a paper format, subject to the requirements of this part and 
Department orders.

Subpart E--Contents of Tariff


Sec. 221.40  Specific requirements.

    (a) In addition to the general requirements in Sec. 221.20, the 
rules and regulations of each tariff shall contain:
    (1) Aircraft and seating. For individually ticketed passenger 
service, the name of each type of aircraft used in rendering such 
service by manufacturer model designation and a description of the 
seating configuration (or configurations if there are variations) of 
each type of aircraft. Where fares are provided for different classes 
or types of passenger service (that is, first class, coach, day coach, 
night coach, tourist, economy or whatever other class or type of 
service is provided under the tariff), the tariff shall specify the 
type of aircraft and the seating configuration used on such aircraft 
for each class or type of passenger service. When two or more classes 
or types of passenger service are performed in a single aircraft, the 
seating configuration for each type or class shall be stated and 
described.
    (2) Rule numbers. Each rule or regulation shall have a separate 
designation. The same designation shall not be assigned to more than 
one rule in the tariff.
    (3) Penalties. Where a rule provides a charge in the nature of a 
penalty, the rule shall state the exact conditions under which such 
charge will be imposed.
    (4) Vague or indefinite provisions. Rules and regulations shall not 
contain indefinite statements to the effect that traffic of any nature 
will be ``taken only by special arrangements'', or that services will 
be performed or penalties imposed ``at carrier's option'', or that the 
carrier ``reserves the right'' to act or to refrain from acting in a 
specified manner, or other provisions of like import; instead, the 
rules shall state definitely what the carrier will or will not do under 
the exact conditions stated in the rules.
    (5) Personal liability rules. Except as provided in this part, no 
provision of the Department's regulations issued under this part or 
elsewhere shall be construed to require the filing of any tariff rules 
stating any limitation on, or condition relating to, the carrier's 
liability for personal injury or death. No subsequent regulation issued 
by the Department shall be construed to supersede or modify this rule 
of construction except to the extent that such regulation shall do so 
in express terms.
    (6) Notice of limitation of liability for death or injury under the 
Warsaw Convention. Notwithstanding the provisions of paragraph (a)(5) 
of this section, each air carrier and foreign air carrier shall publish 
in its tariffs a provision stating whether it avails itself of the 
limitation on liability to passengers as provided in Article 22(1) of 
the Warsaw Convention or whether it has elected to agree to a higher 
limit of liability by a tariff provision. Unless the carrier elects to 
assume unlimited liability, its tariffs shall contain a statement as to 
the applicability and effect of the Warsaw Convention, including the 
amount of the liability limit in dollars. Where applicable, a statement 
advising passengers of the amount of any higher limit of liability 
assumed by the carrier shall be added.
    (7) Extension of credit. Air carriers and foreign air carriers 
shall not file tariffs that set forth charges, rules, regulations, or 
practices relating to the extension of credit for payment of charges 
applicable to air transportation.
    (8) Individual carrier provisions governing joint fares. Provisions 
governing joint fares may be published for account of an individual 
carrier participating in such joint fares provided that the tariff 
clearly indicates how such individual carrier's provisions apply to the 
through transportation over the applicable joint routes comprised of 
such carrier and other carriers who either do not maintain such 
provisions or who maintain different provisions on the same subject 
matter.
    (9) Passenger property which cannot lawfully be carried in the 
aircraft cabin. Each air carrier shall set forth in its tariffs 
governing the transportation of persons, including passengers' baggage, 
charges, rules, and regulations providing that such air carrier 
receiving as baggage any property of a person traveling in air 
transportation, which property cannot lawfully be carried by

[[Page 40662]]

such person in the aircraft cabin by reason of any Federal law or 
regulation, shall assume liability to such person, at a reasonable 
charge and subject to reasonable terms and conditions, within the 
amount declared to the air carrier by such person, for the full actual 
loss or damage to such property caused by such air carrier.
    (b) [Reserved]


Sec. 221.41  Routing.

    (a) Required routing. The route or routes over which each fare 
applies shall be stated in the tariff in such manner that the following 
information can be definitely ascertained from the tariff:
    (1) The carrier or carriers performing the transportation,
    (2) The point or points of interchange between carriers if the 
route is a joint route (via two or more carriers),
    (3) The intermediate points served on the carrier's or carriers' 
routes applicable between the origin and destination of the fare and 
the order in which such intermediate points are served.
    (b) Individually stated routings--Method of publication. The 
routing required by paragraph (a) of this section shall be shown 
directly in connection with each fare or charge for transportation, or 
in a routing portion of the tariff (following the fare portion of the 
tariff), or in a governing routing tariff. When shown in the routing 
portion of the tariff or in a governing routing tariff, the fare from 
each point of origin to each point of destination shall bear a routing 
number and the corresponding routing numbers with their respective 
explanations of the applicable routings shall be arranged in numerical 
order in the routing portion of the tariff or in the governing routing 
tariff.

Subpart F--Requirements Applicable to All Statements of Fares and 
Charges


Sec. 221.50  Currency.

    (a) Statement in United States currency required. All fares and 
charges shall be stated in cents or dollars of the United States except 
as provided in paragraph (b) of this section.
    (b) Statements in both United States and foreign currencies 
permitted. Fares and charges applying between points in the United 
States, on the one hand, and points in foreign countries, on the other 
hand, or applying between points in foreign countries, may also be 
stated in the currencies of foreign countries in addition to being 
stated in United States currency as required by paragraph (a) of this 
section: Provided, that:
    (1) The fares and charges stated in currencies of countries other 
than the United States are substantially equivalent in value to the 
respective fares and charges stated in cents or dollars of the United 
States.
    (2) Each record containing fares and charges shall clearly indicate 
the respective currencies in which the fares and charges thereon are 
stated, and
    (3) The fares and charges stated in cents or dollars of the United 
States are published separately from those stated in currencies of 
other countries. This shall be done in a systematic manner and the 
fares and charges in the respective currencies shall be published in 
separate records.


Sec. 221.51  Territorial application.

    (a) Specific points of origin and destination. Except as otherwise 
provided in this part, the specific points of origin and destination 
from and to which the fares apply shall be specifically named directly 
in connection with the respective fares.
    (b) Directional application. A tariff shall specifically indicate 
directly in connection with the fares therein whether they apply 
``from'' and ``to'' or ``between'' the points named. Where the fares 
apply in one direction, the terms ``From'' and ``To'' shall be shown in 
connection with the point of origin and point of destination, 
respectively, and, where the fares apply in both directions between the 
points, the terms ``Between'' and ``And'' shall be shown in connection 
with the respective points.


Sec. 221.52  Airport to airport application, accessorial services.

    Tariffs shall specify whether or not the fares therein include 
services in addition to airport-to-airport transportation.


Sec. 221.53  Proportional fares.

    (a) Definite application. Add-on fares shall be specifically 
designated as ``add-on'' fares on each page where they appear.
    (b) A tariff may provide that fares from (or to) particular points 
shall be determined by the addition of add-ons to, or the deduction of 
add-ons from, fares therein which apply from (or to) a base point. 
Provisions for the addition or deduction of such add-ons shall be shown 
either directly in connection with the fare applying to or from the 
base point or in a separate provision which shall specifically name the 
base point. The tariff shall clearly and definitely state the manner in 
which such add-ons shall be applied.
    (c) Restrictions upon beyond points or connecting carriers. If an 
add-on fare is intended for use only on traffic originating at and/or 
destined to particular beyond points or is to apply only in connection 
with particular connecting carriers, such application shall be clearly 
and explicitly stated directly in connection with such add-on fare.


Sec. 221.54  Fares stated in percentages of other fares; other 
relationships prohibited.

    (a) Fares for foreign air transportation of persons or property 
shall not be stated in the form of percentages, multiples, fractions, 
or other relationships to other fares except to the extent authorized 
in paragraphs (b), (c), and (d) of this section with respect to 
passenger fares and baggage charges.
    (b) A basis of fares for refund purposes may be stated, by rule, in 
the form of percentages of other fares.
    (c) Transportation rates for the portion of passengers' baggage in 
excess of the baggage allowance under the applicable fares may be 
stated, by rule, as percentages of fares.
    (d) Children's, infants' and senior citizen's fares, may be stated, 
by rule, as percentages of other fares published specifically in 
dollars and cents (hereinafter referred to as base fares): Provided, 
that:
    (1) Fares stated as percentages of base fares shall apply from and 
to the same points, via the same routes, and for the same class of 
service and same type of aircraft to which the applicable base fares 
apply, and shall apply to all such base fares in a fares tariff.
    (2) Fares shall not be stated as percentages of base fares for the 
purpose of establishing fares applying from and to points, or via 
routes, or on types of aircraft, or for classes of service different 
from the points, routes, types of aircraft, or classes of service to 
which the base fares are applicable.


Sec. 221.55  Conflicting or duplicating fares prohibited.

    The publication of fares or charges of a carrier which duplicate or 
conflict with the fares of the same carrier published in the same or 
any other tariff for application over the same route or routes is 
hereby prohibited.


Sec. 221.56  Applicable fare when no through local or joint fares.

    Where no applicable local or joint fare is provided from point of 
origin to point of destination over the route of movement, whichever 
combination of applicable fares provided over the route of movement 
produces the lowest charge shall be applicable, except that a carrier 
may provide explicitly that a fare cannot be used in any combination or 
in a combination on particular traffic or

[[Page 40663]]

under specified conditions, provided another combination is available.

Subpart G--Governing Tariffs


Sec. 221.60  When reference to governing tariffs permitted.

    (a) Reference to other tariffs prohibited except as authorized. A 
tariff shall not refer to nor provide that it is governed by any other 
tariff, document, or publication, or any part thereof, except as 
specifically authorized by this part.
    (b) Reference by fare tariff to governing tariffs. A fare tariff 
may be made subject to a governing tariff or governing tariffs 
authorized by this subpart: Provided, that reference to such governing 
tariffs is published in the fare tariff in the manner required by 
Sec. 221.20(h).
    (c) Participation in governing tariffs. A fare tariff may refer to 
a separate governing tariff authorized by this subpart only when all 
carriers participating in such fare tariff are also shown as 
participating carriers in the governing tariff: Provided, that:
    (1) If such reference to a separate governing tariff does not apply 
for account of all participating carriers and is restricted to apply 
only in connection with local or joint fares applying over routes 
consisting of only particular carriers, only the carriers for whom such 
reference is published are required to be shown as participating 
carriers in the governing tariff to which such qualified reference is 
made.
    (2) [Reserved]
    (d) Maximum number of governing tariffs. A single fare tariff shall 
not make reference to conflicting governing tariffs.


Sec. 221.61  Rules and regulations governing foreign air 
transportation.

    Instead of being included in the fares tariffs, the rules and 
regulations governing foreign air transportation required to be filed 
by Secs. 221.20 and 221.30 and/or Department order which do not govern 
the applicability of particular fares may be filed in separate 
governing tariffs, conforming to this subpart. Governing rules tariffs 
shall contain an index of rules.


Sec. 221.62  Explosives and other dangerous or restricted articles.

    Carriers may publish rules and regulations governing the 
transportation of explosives and other dangerous or restricted articles 
in separate governing tariffs, conforming to this subpart, instead of 
being included in the fares tariffs or in the governing rules tariff 
authorized by Sec. 221.61. This separate governing tariff shall contain 
no other rules or governing provisions.


Sec. 221.63  Other types of governing tariffs.

    Subject to approval of the Department, carriers may publish other 
types of governing tariffs not specified in this subpart, such as 
routing guides.

Subpart H--Amendment of Tariffs


Sec. 221.70  Who may amend tariffs.

    A tariff shall be amended only by the carrier or agent who issued 
the tariff (except as otherwise authorized in subparts P and Q).


Sec. 221.71  Requirement of clarity and specificity.

    Amendments to tariffs shall identify with specificity and clarity 
the material being amended and the changes being made. Amendments to 
paper tariffs shall be accomplished by reissuing each page upon which a 
change occurs with the change made and identified by uniform amendment 
symbols. Each revised page shall identify and cancel the previously 
effective page, show the effective date of the previous page, and show 
the intended effective date of the revised page. Amendments in 
electronic format shall conform to the requirements of Sec. 221.202 and 
other applicable provisions of subpart R.


Sec. 221.72  Reinstating canceled or expired tariff provisions.

    Any fares, rules, or other tariff provisions which have been 
canceled or which have expired may be reinstated only by republishing 
such provisions and posting and filing the tariff publications 
(containing such republished provisions) on lawful notice in the form 
and manner required by this part.

Subpart I--Suspension of Tariff Provisions by Department


Sec. 221.80  Effect of suspension by Department.

    (a) Suspended matter not to be used. A fare, charge, or other 
tariff provision which is suspended by the Department, under authority 
of chapter 415 of the statute, shall not be used during the period of 
suspension specified by the Department's order.
    (b) Suspended matter not to be changed. A fare, charge, or other 
tariff provision which is suspended by the Department shall not be 
changed in any respect or withdrawn or the effective date thereof 
further deferred except by authority of an order or special tariff 
permission of the Department.
    (c) Suspension continues former matter in effect. If a tariff 
publication containing matter suspended by the Department directs the 
cancellation of a tariff or any portion thereof, which contains fares, 
charges, or other tariff provisions sought to be amended by the 
suspended matter, such cancellation is automatically suspended for the 
same period insofar as it purports to cancel any tariff provisions 
sought to be amended by the suspended matter.
    (d) Matter continued in effect not to be changed. A fare, charge, 
or other tariff provision which is continued in effect as a result of a 
suspension by the Department shall not be changed during the period of 
suspension unless the change is authorized by order or special tariff 
permission of the Department, except that such matter may be reissued 
without change during the period of suspension.


Sec. 221.81  Suspension supplement.

    (a) Suspension supplement. Upon receipt of an order of the 
Department suspending any tariff publication in part or in its 
entirety, the carrier or agent who issued such tariff publication shall 
immediately issue and file with the Department a consecutively numbered 
supplement for the purpose of announcing such suspension.
    (b) The suspension supplement shall not contain an effective date 
and it shall contain the suspension notice required by paragraph (c) of 
this section.
    (c) Suspension notice. The suspension supplement shall contain a 
prominent notice of suspension which shall:
    (1) Indicate what particular fares, charges, or other tariff 
provisions are under suspension,
    (2) State the date to which such tariff matter is suspended,
    (3) State the Department's docket number and order number which 
suspended such tariff matter, and
    (4) Give specific reference to the tariffs (specifying their D.O.T. 
or other identifying numbers), original or revised records and 
paragraphs or provisions which contain the fares, charges, or other 
tariff provisions continued in effect.


Sec. 221.82  Reissue of matter continued in effect by suspension to be 
canceled upon termination of suspension.

    When tariff provisions continued in effect by a suspension are 
reissued during the period of such suspension, the termination of the 
suspension and the coming into effect of the suspended matter will not 
accomplish the cancellation of such reissued matter. In such 
circumstances, prompt action shall be taken by the issuing agent or 
carrier to cancel such reissued provisions upon the termination of the 
suspension in order that they will not conflict with the provisions 
formerly under suspension.

[[Page 40664]]

Sec. 221.83  Tariff must be amended to make suspended matter effective.

    (a) When the Department vacates an order which suspended certain 
tariff matter in full or in part, such matter will not become effective 
until the termination of the suspension period unless the issuing agent 
or carrier amends the pertinent tariffs in the manner prescribed in 
this subpart (except as provided in paragraph (b) of this section).
    (b) If the Department vacates its suspension order prior to the 
original published effective date of the tariff provisions whose 
suspension is vacated, such provisions will become effective on their 
published effective date.


Sec. 221.84  Cancellation of suspended matter subsequent to date to 
which suspended.

    (a) Endeavor to cancel prior to expiration of suspension period. 
When an order of the Department requires the cancellation of tariff 
provisions which were suspended by the Department and such cancellation 
is required to be made effective on or before a date which is after the 
date to which such tariff provisions were suspended, the issuing 
carrier or agent shall, if possible, make the cancellation effective 
prior to the date to which such tariff provisions were suspended.
    (b) When necessary to republish matter continued in effect by 
suspension. If suspended tariff provisions become effective upon 
expiration of their suspension period and thereby accomplish the 
cancellation of the tariff provisions continued in effect by the 
suspension, the issuing agent or carrier shall republish and 
reestablish such canceled tariff provisions effective simultaneously 
with the cancellation of the suspended provisions in compliance with 
the Department's order. The tariff amendments which reestablish such 
canceled tariff provisions shall bear reference to this subpart and the 
Department's order.

Subpart J--Filing Tariff Publications With Department


Sec. 221.90  Required notice.

    (a) Statutory notice required. Unless otherwise authorized by the 
Department or specified in a bilateral agreement between the United 
States and a foreign country, all tariff filings shall be made on the 
following schedule, whether or not they effect any changes:
    (1) At least 30 days before they are to become effective, for 
tariffs stating a passenger fare within the zone created by section 
41509(e) of the statute or stating a rule that affects only such a 
fare;
    (2) At least 25 days before they are to become effective, for 
matching tariffs that are to become effective on the same date as the 
tariff to be matched and that meet competition as described in 
Sec. 221.94(c)(1)(v); and
    (3) At least 60 days before they are to become effective, for all 
other tariffs.
    (b) Computing number of days' notice. A tariff publication shall be 
deemed to be filed only upon its actual receipt by the Department, and 
the first day of any required period of notice shall be the day of 
actual receipt by the Department.
    (c) Issued date. All tariff publications must be received by the 
Department on or before the designated issued date.


Sec. 221.91  Delivering tariff publications to Department.

    Tariff publications will be received for filing only by delivery 
thereof to the Department electronically, through normal mail channels, 
or by delivery thereof during established business hours directly to 
that office of the Department charged with the responsibility of 
processing tariffs. No tariff publication will be accepted by the 
Department unless it is delivered free from all charges, including 
claims for postage.


Sec. 221.92  Number of copies required.

    Two copies of each paper tariff, tariff revision and adoption 
notice to be filed shall be sent to the Office of International 
Aviation, Department of Transportation, Washington, DC 20428. All such 
copies shall be included in one package and shall be accompanied by a 
letter of tariff transmittal.


Sec. 221.93  Concurrences or powers of attorney not previously filed to 
accompany tariff transmittal.

    When a tariff is filed on behalf of a carrier participating therein 
under authority of its concurrence or power of attorney, such 
concurrence or power of attorney shall, if not previously filed with 
the Department, be transmitted at the same time such tariff is 
submitted for filing.


Sec. 221.94  Explanation and data supporting tariff changes and new 
matter in tariffs.

    When a tariff is filed with the Department which contains new or 
changed local or joint fares or charges for foreign air transportation, 
or new or changed classifications, rules, regulations, or practices 
affecting such fares or charges, or the value of the service 
thereunder, the issuing air carrier, foreign air carrier, or agent 
shall submit with the filing of such tariff:
    (a) An explanation of the new or changed matter and the reasons for 
the filing, including (if applicable) the basis of rate making 
employed. Where a tariff is filed pursuant to an intercarrier agreement 
approved by the Department, the explanation shall identify such 
agreement by DOT Docket number, DOT order of approval number, IATA 
resolution number, or if none is designated, then by other definite 
identification. Where a tariff is filed on behalf of a foreign air 
carrier pursuant to a Government order, a copy of such order shall be 
submitted with the tariff.
    (b) Appropriate Economic data and/or information in support of the 
new or changed matter.
(c) Exceptions
    (1) The requirement for data and/or information in paragraph (b) of 
this section will not apply to tariff publications containing new or 
changed matter which are filed:
    (i) In response to Department orders or specific policy 
pronouncements of the Department directly related to such new or 
changed matter;
    (ii) Pursuant to an intercarrier agreement approved by the 
Department setting forth the fares, charges (or specific formulas 
therefor) or other matter: Provided that the changes are submitted with 
the number of the DOT order of approval and fully comply with any 
conditions set forth in that order;
    (iii) To the extent fares for scheduled passenger service are 
within a statutory or Department-established zone of fare flexibility; 
and
    (iv) To meet competition: Provided, that
    (A) Changed matter will be deemed to have been filed to meet 
competition only when it effects decreases in fares or charges and/or 
increases the value of service so that the level of the fares or 
charges and the services provided will be substantially similar to the 
level of fares or charges and the services of a competing carrier or 
carriers.
    (B) New matter will be deemed to have been filed to meet 
competition only when it establishes or affects a fare or charge and a 
service which will be substantially similar to the fares or charges and 
the services of a competing carrier or carriers.
    (C) When new or changed matter is filed to meet competition over a 
portion of the filing air carrier's system and is simultaneously made 
applicable to the balance of the system, such matter, insofar as it 
applies over the balance of the system, will be deemed to be within the 
exception in this paragraph (c)(1)(iv) of this section only if such 
carrier submits an explanation as to the necessity of maintaining 
uniformity over its entire system with respect to such new or changed 
matter.

[[Page 40665]]

    (D) In any case where new or changed matter is filed to meet 
competition, the filing carrier or agent must supply, as part of the 
filing justification, the complete tariff references which will serve 
to identify the competing tariff matter which the tariff purports to 
meet. In such case the justification or attachment shall state whether 
the new or changed matter is identical to the competing tariff matter 
which it purports to meet or whether it approximates the competing 
tariff matter. If the new or changed matter is not identical, the 
transmittal letter or attachment shall contain a statement explaining, 
in reasonable detail, the basis for concluding that the tariff 
publication being filed is substantially similar to the competing 
tariff matter.
    (2) [Reserved]

Subpart K--Availability of Tariff Publications for Public 
Inspection


Sec. 221.100  Public notice of tariff information.

    Carriers must make tariff information available to the general 
public, and in so doing must comply with either:
    (a) Sections 221.101, 221.102, 221.103, 221.104, 221.105, and 
221.106, or
    (b) Sections 221.105, 221.106 and 221.107 of this subpart.


Sec. 221.101  Inspection at stations, offices, or locations other than 
principal or general office.

    (a) Each carrier shall make available for public inspection at each 
of its stations, offices, or other locations at which tickets for 
passenger transportation are sold and which is in charge of a person 
employed exclusively by the carrier, or by it jointly with another 
person, all tariffs applicable to passenger traffic from or to the 
point where such station, office, or location is situated, including 
tariffs covering any terminal services, charges, or practices 
whatsoever, which apply to passenger traffic from or to such point.
    (b) A carrier will be deemed to have complied with the requirement 
that it ``post'' tariffs, if it maintains at each station, office, or 
location a file in complete form of all tariffs required to be posted; 
and in the case of tariffs involving passenger fares, rules, charges or 
practices, notice to the passenger as required in Sec. 221.105.
    (c) Tariffs shall be posted by each carrier party thereto no later 
than the filed date designated thereon except that in the case of 
carrier stations, offices or locations situated outside the United 
States, its territories and possessions, the time shall be not later 
than five days after the filed date, and except that a tariff which the 
Department has authorized to be filed on shorter notice shall be posted 
by the carrier on like notice as authorized for filing.


Sec. 221.102  Accessibility of tariffs to the public.

    Each file of tariffs shall be kept in complete and accessible form. 
Employees of the carrier shall be required to give any desired 
information contained in such tariffs, to lend assistance to seekers of 
information therefrom, and to afford inquirers opportunity to examine 
any of such tariffs without requiring the inquirer to assign any reason 
for such desire.


Sec. 221.103  Notice of tariff terms.

    Each carrier shall cause to be displayed continuously in a 
conspicuous public place at each station, office, or location at which 
tariffs are required to be posted, a notice printed in large type 
reading as follows:

Public Inspection of Tariffs

    All the currently effective passenger tariffs to which this 
company is a party and all passenger tariff publications which have 
been issued but are not yet effective are on file in this office, so 
far as they apply to traffic from or to. (Here name the point.) 
These tariffs may be inspected by any person upon request and 
without the assignment of any reason for such inspection. The 
employees of this company on duty in this office will lend 
assistance in securing information from the tariffs.
    In addition, a complete file of all tariffs of this company, 
with indexes thereof, is maintained and kept available for public 
inspection at. (Here indicate the place or places where complete 
tariff files are maintained, including the street address, and where 
appropriate, the room number.)


Sec. 221.105  Special notice of limited liability for death or injury 
under the Warsaw Convention.

    (a)(1) In addition to the other requirements of this subpart, each 
air carrier and foreign air carrier which, to any extent, avails itself 
of the limitation on liability to passengers provided by the Warsaw 
Convention, shall, at the time of delivery of the ticket, furnish to 
each passenger whose transportation is governed by the Convention and 
whose place of departure or place of destination is in the United 
States, the following statement in writing:

Advice to International Passengers on Limitations of Liability

    Passengers embarking upon a journey involving an ultimate 
destination or a stop in a country other than the country of 
departure are advised that the provisions of a treaty known as the 
Warsaw Convention may be applicable to their entire journey 
including the portion entirely within the countries of departure and 
destination. The Convention governs and in most cases limits the 
liability of carriers to passengers for death or personal injury to 
approximately $10,000.
    Additional protection can usually be obtained by purchasing 
insurance from a private company. Such insurance is not affected by 
any limitation of the carrier's liability under the Warsaw 
Convention. For further information please consult your airline or 
insurance company representative.

    (2) Provided, however, That when the carrier elects to agree to a 
higher limit of liability to passengers than that provided in Article 
22(1) of the Warsaw Convention, such statement shall be modified to 
reflect the higher limit. The statement prescribed herein shall be 
printed in type at least as large as 10-point modern type and in ink 
contrasting with the stock on:
    (i) Each ticket;
    (ii) A piece of paper either placed in the ticket envelope with the 
ticket or attached to the ticket; or
    (iii) The ticket envelope.
    (b) Each air carrier and foreign air carrier which, to any extent, 
avails itself of the limitation on liability to passengers provided by 
the Warsaw Convention, shall also cause to be displayed continuously in 
a conspicuous public place at each desk, station, and position in the 
United States which is in the charge of a person employed exclusively 
by it or by it jointly with another person, or by any agent employed by 
such air carrier or foreign air carrier to sell tickets to passengers 
whose transportation may be governed by the Warsaw Convention and whose 
place of departure or destination may be in the United States, a sign 
which shall have printed thereon the statement prescribed in paragraph 
(a) of this section: Provided, however, That an air carrier, except an 
air taxi operator subject to part 298 of this subchapter, or foreign 
air carrier which provides a higher limitation of liability than that 
set forth in the Warsaw Convention and has signed a counterpart of the 
agreement among carriers providing for such higher limit, which 
agreement was approved by the Civil Aeronautics Board by Order E-23680, 
dated May 13, 1966 (31 FR 7302, May 19, 1966), may use the alternate 
form of notice set forth in the proviso to Sec. 221.106(a) of this 
chapter in full compliance with the posting requirements of this 
paragraph. And provided further, That an air taxi operator subject to 
part 298 of this subchapter, which provides a higher limitation of 
liability than that set forth in the Warsaw Convention and has signed a 
counterpart of the agreement among carriers providing for such higher 
limit, which agreement was

[[Page 40666]]

approved by the Civil Aeronautics Board by Order E-23680, dated May 13, 
1966 (31 FR 7302, May 19, 1966), may use the following notice in the 
manner prescribed by this paragraph in full compliance with the posting 
requirements of this paragraph. Such statements shall be printed in 
bold faced type at least one-fourth of an inch high.

Advice to International Passengers on Limitation of Liability

    Passengers traveling to or from a foreign country are advised 
that airline liability for death or personal injury and loss or 
damage to baggage may be limited by the Warsaw Convention and tariff 
provisions. See the notice with your ticket or contact your airline 
ticket office or travel agent for further information.


Sec. 221.106  Notice of limited liability for baggage; alternative 
consolidated notice of liability limitations.

    (a)(1) Each air carrier and foreign air carrier which, to any 
extent, avails itself of limitations on liability for loss of, damage 
to, or delay in delivery of baggage shall cause to be displayed 
continuously in a conspicuous public place at each desk, station, and 
position in the United States which is in the charge of a person 
employed exclusively by it or by it jointly with another person, or by 
any agent employed by such air carrier or foreign air carrier to sell 
tickets to persons or accept baggage for checking, a sign which shall 
have printed thereon the following statement:

Notice of Limited Liability for Baggage

    For most international travel (including domestic portions of 
international journeys) liability for loss, delay, or damage to 
baggage is limited to approximately $9.07 per pound for checked 
baggage and $400 per passenger for unchecked baggage unless a higher 
value is declared and an extra charge is paid. Special rules may 
apply for valuables. Consult your carrier for details.

    (2) Provided, however, That an air carrier or foreign air carrier 
which provides a higher limitation of liability for death or personal 
injury than that set forth in the Warsaw Convention and has signed a 
counterpart of the agreement approved by the Civil Aeronautics Board by 
Order E-23680, dated May 13, 1966 (31 FR 7302, May 19, 1966), may use 
the following notice in full compliance with the posting requirements 
of this paragraph and of Sec. 221.105(b):

Advice to Passengers on Limitations of Liability

    Airline liability for death or personal injury may be limited by 
the Warsaw Convention and tariff provisions in the case of travel to 
or from a foreign country.
    For most international travel (including domestic portions of 
international journeys) liability for loss, delay or damage to 
baggage is limited to approximately $9.07 per pound for checked 
baggage and $400 per passenger for unchecked baggage unless a higher 
value is declared and an extra charge is paid. Special rules may 
apply to valuable articles.
    See the notice with your tickets or consult your airline or 
travel agent for further information.

    (3) Provided, however, That carriers may include in the notice the 
parenthetical phrase ``($20.00 per kilo)'' after the phrase ``$9.07 per 
pound'' in referring to the baggage liability limitation for most 
international travel. Such statements shall be printed in bold-face 
type at least one-fourth of an inch high and shall be so located as to 
be clearly visible and clearly readable to the traveling public.
    (b)(1) Each air carrier and foreign air carrier which, to any 
extent, avails itself of limitations of liability for loss of, damage 
to, or delay in delivery of, baggage shall include on or with each 
ticket issued in the United States or in a foreign country by it or its 
authorized agent, the following notice printed in at least 10 point 
type:

Notice of Baggage Liability Limitations

    For most international travel (including domestic portions of 
international journeys) liability for loss, delay, or damage to 
baggage is limited to approximately $9.07 per pound for checked 
baggage and $400 per passenger for unchecked baggage unless a higher 
value is declared in advance and additional charges are paid. Excess 
valuation may not be declared on certain types of valuable articles. 
Carriers assume no liability for fragile or perishable articles. 
Further information may be obtained from the carrier.

    (2) Provided, however, That carriers may include in their ticket 
notice the parenthetical phrase ``($20.00 per kilo)'' after the phrase 
``$9.07 per pound'' in referring to the baggage liability limitation 
for most international travel.
    (c) It shall be the responsibility of each carrier to insure that 
travel agents authorized to sell air transportation for such carrier 
comply with the notice provisions of paragraphs (a) and (b) of this 
section.
    (d) Any air carrier or foreign air carrier subject to the 
provisions of this section which wishes to use a notice of limited 
liability for baggage of its own wording, but containing the substance 
of the language prescribed in paragraphs (a) and (b) of this section 
may substitute a notice of its own wording upon approval by the 
Department.
    (e) The requirements as to time and method of delivery of the 
notice (including the size of type) specified in paragraphs (a) and (b) 
of this section and the requirement with respect to travel agents 
specified in paragraph (c) of this section may be waived by the 
Department upon application and showing by the carrier that special and 
unusual circumstances render the enforcement of the regulations 
impractical and unduly burdensome and that adequate alternative means 
of giving notice are employed.
    (f) Applications for relief under paragraphs (d) and (e) of this 
section shall be filed with the Department's Office of International 
Aviation not later than 15 days before the date on which such relief is 
requested to become effective.
    (g) Notwithstanding any other provisions of this section, no air 
taxi operator subject to part 298 of this subchapter shall be required 
to give the notices prescribed in this section, either in its capacity 
as an air carrier or in its capacity as an agent for an air carrier or 
foreign air carrier.


Sec. 221.107  Notice of contract terms.

    (a) Terms incorporated in the contract of carriage. (1) A ticket, 
or other written instrument that embodies the contract of carriage for 
foreign air transportation shall contain or be accompanied by notice to 
the passenger as required in paragraphs (b) and (d) of this section.
    (2) Each carrier shall make the full text of all terms that are 
incorporated in a contract of carriage readily available for public 
inspection at each airport or other ticket sales office of the carrier: 
Provided, That the medium, i.e., printed or electronic, in which the 
incorporated terms and conditions are made available to the consumer 
shall be at the discretion of the carrier.
    (3) Each carrier shall display continuously in a conspicuous public 
place at each airport or other ticket sales office of the carrier a 
notice printed in large type reading as follows:

Explanation of Contract Terms

    All passenger (and/or cargo as applicable) contract terms 
incorporated into the contract of carriage to which this company is 
a party are available in this office. These provisions may be 
inspected by any person upon request and for any reason. The 
employees of this office will lend assistance in securing 
information, and explaining any terms.
    In addition, a file of all tariffs of this company, with indexes 
thereof, from which incorporated contract terms may be obtained is 
maintained and kept available for public inspection at. (Here 
indicate the place or places where tariff files are maintained, 
including the street address and, where appropriate, the room 
number.)

    (4) Each carrier shall provide to the passenger a complete copy of 
the text of any/all terms and conditions applicable to the contract of 
carriage, free of charge, immediately, if feasible, or otherwise 
promptly by mail or other delivery service, upon request at any airport 
or

[[Page 40667]]

other ticket sales office of the carrier. In addition, all other 
locations where the carrier's tickets may be issued shall have 
available at all times, free of charge, information sufficient to 
enable the passenger to request a copy of such term(s).
    (b) Notice of incorporated terms. Each carrier and ticket agent 
shall include on or with a ticket or other written instrument given to 
the passenger, that embodies the contract of carriage, a conspicuous 
notice that:
    (1) The contract of carriage may incorporate terms and conditions 
by reference; passengers may inspect the full text of each applicable 
incorporated term at any of the carrier's airport locations or other 
ticket sales offices of the carrier; and passengers, shippers and 
consignees have the right to receive, upon request at any airport or 
other ticket sales office of the carrier, a free copy of the full text 
of any/all such terms by mail or other delivery service;
    (2) The incorporated terms may include, among others, the terms 
shown in paragraphs (b)(2) (i) through (iv) of this section. Passengers 
may obtain a concise and immediate explanation of the terms shown in 
paragraphs (b)(2) (i) through (iv) of this section from any location 
where the carrier's tickets are sold.
    (i) Limits on the carrier's liability for personal injury or death 
of passengers (subject to Sec. 221.105), and for loss, damage, or delay 
of goods and baggage, including fragile or perishable goods.
    (ii) Claim restrictions, including time periods within which 
passengers must file a claim or bring an action against the carrier for 
its acts or omissions or those of its agents.
    (iii) Rules about re-confirmations or reservations, check-in times, 
and refusal to carry.
    (iv) Rights of the carrier and limitations concerning delay or 
failure to perform service, including schedule changes, substitution of 
alternate carrier or aircraft, and rerouting.
    (c) Explanation of incorporated terms. Each carrier shall ensure 
that any passenger can obtain from any location where its tickets are 
sold or any similar documents are issued, a concise and immediate 
explanation of any term incorporated concerning the subjects listed in 
paragraph (b)(2) or identified in paragraph (d) of this section.
    (d) Direct notice of certain terms. A passenger must receive 
conspicuous written notice, on or with the ticket, or other similar 
document, of the salient features of any terms that restrict refunds of 
the price of the transportation, impose monetary penalties on 
customers, or permit a carrier to raise the price or impose more 
restrictive conditions of contract after issuance of the ticket.


Sec. 221.108  Transmission of tariff filings to subscribers.

    (a) Each carrier required to file tariffs in accordance with this 
part shall make available to any person so requesting a subscription 
service as described in paragraph (b) of this section for its passenger 
tariffs issued by it or by a publishing agent on its behalf.
    (b) Under the required subscription service one copy of each new 
tariff publication, including the justification required by 
Sec. 221.94, must be transmitted to each subscriber thereto by first-
class mail (or other equivalent means agreed upon by the subscriber) 
not later than one day following the time the copies for official 
filing are transmitted to the Department. The subscription service 
described in this section shall not preclude the offering of additional 
types of subscription services by carriers or their agents.
    (c) The carriers or their publishing agents at their option may 
establish a charge for providing the required subscription service to 
subscribers: Provided, That the charge may not exceed a reasonable 
estimate of the added cost of providing the service.

Subpart L--Rejection of Tariff Publications


Sec. 221.110  Department's authority to reject.

    The Department may reject any tariff which is not consistent with 
section 41504 of the statute, with the regulations in this part, or 
with Department orders.


Sec. 221.111  Notification of rejection.

    When a tariff is rejected, the issuing carrier or agent thereof 
will be notified electronically or in writing that the tariff is 
rejected and of the reason for such rejection.


Sec. 221.112  Rejected tariff is void and must not be used.

    A tariff rejected by the Department is void and is without any 
force or effect whatsoever. Such rejected tariff must not be used.

Subpart M--Special Tariff Permission To File on Less Than Statutory 
Notice


Sec. 221.120  Grounds for approving or denying Special Tariff 
Permission applications.

    (a) General authority. The Department may permit changes in fares, 
charges or other tariff provisions on less than the statutory notice 
required by section 41505 of the statute.
    (b) Grounds for approval. The following facts and circumstances 
constitute some of the grounds for approving applications for Special 
Tariff Permission in the absence of other facts and circumstances 
warranting denial:
    (1) Clerical or typographical errors. Clerical or typographical 
errors in tariffs constitute grounds for approving applications for 
Special Tariff Permission to file on less than statutory notice the 
tariff changes necessary to correct such errors. Each application for 
Special Tariff Permission based on such grounds shall plainly specify 
the errors and contain a complete statement of all the attending facts 
and circumstances, and such application shall be presented to the 
Department with reasonable promptness after issuance of the defective 
tariff.
    (2) Rejection caused by clerical or typographical errors or 
unintelligibility. Rejection of a tariff caused by clerical or 
typographical errors constitute grounds for approving applications for 
Special Tariff Permission to file on less than statutory notice, 
effective not earlier than the original effective dates in the rejected 
tariff, all changes contained in the rejected tariff but with the 
errors corrected. Each application for the grant of Special Tariff 
Permission based on such grounds shall plainly specify the errors and 
contain a complete statement of all the attending facts and 
circumstances, and such application shall be filed with the Department 
within five days after receipt of the Department's notice of rejection.
    (3) Newly authorized transportation. The fact that the Department 
has newly authorized a carrier to perform foreign air transportation 
constitutes grounds for approving applications for Special Tariff 
Permission to file on less than statutory notice the fares, rates, and 
other tariff provisions covering such newly authorized transportation.
    (4) The fact that a passenger fare is within a statutory or 
Department-established zone of fare flexibility constitutes grounds for 
approving an application for Special Tariff Permission to file a tariff 
stating that fare and any rules affecting them exclusively, on less 
than statutory notice. The Department's policy on approving such 
applications is set forth in Sec. 399.35 of this chapter.
    (5) Lowered fares and charges. The prospective lowering of fares or 
charges to the traveling public constitutes grounds for approving an 
application for Special Tariff Permission to file on less than 
statutory notice a tariff stating the lowered fares or charges and any 
rules affecting them exclusively. However, the Department will not 
approve the application if the proposed tariff raises

[[Page 40668]]

significant questions of lawfulness, as set forth in Sec. 399.35 of 
this chapter.
    (c) Filing notice required by formal order. When a formal order of 
the Department requires the filing of tariff matter on a stated number 
of days' notice, an application for Special Tariff Permission to file 
on less notice will not be approved. In any such instance a petition 
for modification of the order should be filed in the formal docket.


Sec. 221.121  How to prepare and file applications for Special Tariff 
Permission.

    (a) Form. Each application for Special Tariff Permission to file a 
tariff on less than statutory notice shall conform to the requirements 
of Sec. 221.212 if filed electronically.
    (b) Number of paper copies and place of filing. For paper format 
applications, the original and one copy of each such application for 
Special Tariff Permission, including all exhibits thereto and 
amendments thereof, shall be sent to the Office of International 
Aviation, Department of Transportation, Washington, DC 20590.
    (c) Who may make application. Applications for Special Tariff 
Permission to file fares, or other tariff provisions on less than 
statutory notice shall be made only by the issuing carrier or agent 
authorized to issue and file the proposed tariff. Such application by 
the issuing carrier or agent will constitute application on behalf of 
all carriers participating in the proposed fares, or other tariff 
provisions.
    (d) When notice is required. Notice in the manner set forth in 
paragraph (e) of this section is required when a carrier files an 
application for Special Tariff Permission:
    (1) To offer passenger fares that would be outside a Department-
established zone of price flexibility or, in markets for which the 
Department has not established such a zone, outside the statutory zone 
of price flexibility; or
    (2) To file any price increase or rule change that the carrier 
believes is likely to be controversial.
    (e) Form of notice. When notice of filing of a Special Tariff 
Permission application affecting passenger fares is required by 
paragraph (d) of this section, the carrier shall, when it files the 
application, give immediate telegraphic notice or other notice approved 
by the Office of International Aviation, to all certificated and 
foreign route carriers authorized to provide nonstop or one-stop 
service in the markets involved, and to civic parties that would be 
substantially affected. The application shall include a list of the 
parties notified.


Sec. 221.122  Special Tariff Permission to be used in its entirety as 
granted.

    Each Special Tariff Permission to file fares, or other tariff 
provisions on less than statutory notice shall be used in its entirety 
as granted. If it is not desired to use the permission as granted, and 
lesser or more extensive or different permission is desired, a new 
application for Special Tariff Permission conforming with Sec. 221.121 
in all respects and referring to the previous permission shall be 
filed.


Sec. 221.123  Re-use of Special Tariff Permission when tariff is 
rejected.

    If a tariff containing matter issued under Special Tariff 
Permission is rejected, the same Special Tariff Permission may be used 
in a tariff issued in lieu of such rejected tariff provided that such 
re-use is not precluded by the terms of the Special Tariff Permission, 
and is made within the time limit thereof or within seven days after 
the date of the Department's notice of rejection, whichever is later, 
but in no event later than fifteen days after the expiration of the 
time limit specified in the Special Tariff Permission.

Subpart N--Waiver of Tariff Regulations


Sec. 221.130  Applications for waiver of tariff regulations.

    Applications for waiver or modification of any of the requirements 
of this part 221 or for modification of chapter 415 of the statute with 
respect to the filing and posting of tariffs shall be made by the 
issuing carrier or issuing agent.


Sec. 221.131  Form of application for waivers.

    Applications for waivers shall be in the form of a letter addressed 
to the Office of International Aviation, Department of Transportation 
Washington, DC 20590, and shall:
    (a) Specify (by section and paragraph) the particular regulation 
which the applicant desires the Department to waive.
    (b) Show in detail how the proposed provisions will be shown in the 
tariff under authority of such waiver if granted (submitting exhibits 
of the proposed provision where necessary to clearly show this 
information).
    (c) Set forth all facts and circumstances on which the applicant 
relies as warranting the Department's granting the authority requested. 
No tariff or other documents shall be filed pursuant to such 
application prior to the Department's granting the authority requested.

Subpart O--Giving and Revoking Concurrences to Carriers


Sec. 221.140  Method of giving concurrence.

    (a) A concurrence prepared in a manner acceptable to the Office of 
International Aviation shall be used by a carrier to give authority to 
another carrier to issue and file with the Department tariffs which 
contain joint fares or charges, including provisions governing such 
fares or charges, applying to, from, or via points served by the 
carrier giving the concurrence. A concurrence shall not be used as 
authority to file joint fares or charges in which the carrier to whom 
the concurrence is given does not participate, and it shall not be used 
as authority to file local fares or charges.
    (b) Number of copies. Each concurrence shall be prepared in 
triplicate. The original of each concurrence shall be filed with the 
Department, the duplicate thereof shall be given to the carrier in 
whose favor the concurrence is issued, and the third copy shall be 
retained by the carrier who issued the concurrence.
    (c) Conflicting authority to be avoided. Care should be taken to 
avoid giving authority to two or more carriers which, if used, would 
result in conflicting or duplicate tariff provisions.


Sec. 221.141  Method of revoking concurrence.

    (a) A concurrence may be revoked by filing with the Department a 
Notice of Revocation of Concurrence prepared in a form acceptable to 
the Office of International Aviation.
    (b) Sixty days' notice required. Such Notice of Revocation of 
Concurrence shall be filed on not less than sixty days' notice to the 
Department. A Notice of Revocation of Concurrence will be deemed to be 
filed only upon its actual receipt by the Department, and the period of 
notice shall commence to run only from such actual receipt.
    (c) Number of copies. Each Notice of Revocation of Concurrence 
shall be prepared in triplicate. The original thereof shall be filed 
with the Department and, at the same time that the original is 
transmitted to the Department, the duplicate thereof shall be sent to 
the carrier to whom the concurrence was given. The third copy shall be 
retained by the carrier issuing such notice.
    (d) Amendment of tariffs when concurrence revoked. When a 
concurrence is revoked, a corresponding amendment of the tariff or 
tariffs affected shall be made by the issuing carrier of such tariffs, 
on not less than statutory notice, to become effective not

[[Page 40669]]

later than the effective date stated in the Notice of Revocation of 
Concurrence. In the event of failure to so amend the tariff or tariffs, 
the provisions therein shall remain applicable until lawfully canceled.


Sec. 221.142  Method of withdrawing portion of authority conferred by 
concurrence.

    If a carrier desires to issue a concurrence conferring less 
authority than a previous concurrence given to the same carrier, the 
new concurrence shall not direct the cancellation of such previous 
concurrence. In such circumstances, such previous concurrence shall be 
revoked by issuing and filing a Notice of Revocation of Concurrence in 
a form acceptable to the Office of International Aviation. Such 
revocation notice shall include reference to the new concurrence.

Subpart P--Giving and Revoking Powers of Attorney to Agents


Sec. 221.150  Method of giving power of attorney.

    (a) Prescribed form of power of attorney. A power of attorney 
prepared in accordance with a form acceptable to the Office of 
International Aviation shall be used by a carrier to give authority to 
an agent and (in the case of the agent being an individual) such 
agent's alternate to issue and file with the Department tariffs which 
contain local or joint fares or charges, including provisions governing 
such fares or charges, applicable via and for account of such carrier. 
Agents may be only natural persons or corporations (other than 
incorporated associations of air carriers). The authority conferred in 
a power of attorney may not be delegated to any other person.
    (b) Designation of tariff issuing person by corporate agent. When a 
corporation has been appointed as agent it shall forward to the 
Department a certified excerpt of the minutes of the meeting of its 
Board of Directors designating by name and title the person responsible 
for issuing tariffs and filing them with the Department. Only one such 
person may be designated by a corporate agent, and the title of such 
designee shall not contain the word ``Agent''. When such a designee is 
replaced the Department shall be immediately notified in like manner of 
his successor. An officer or employee of an incorporated tariff-
publishing agent may not be authorized to act as tariff agent in his/
her individual capacity. Every tariff issued by a corporate agent shall 
be issued in its name as agent.
    (c) Number of copies. Each power of attorney shall be prepared in 
triplicate. The original of each power of attorney shall be filed with 
the Department, the duplicate thereof shall be given to the agent in 
whose favor the power of attorney is issued, and the third copy shall 
be retained by the carrier who issued the power of attorney.
    (d) Conflicting authority prohibited. In giving powers of attorney, 
carriers shall not give authority to two or more agents which, if used, 
would result in conflicting or duplicate tariff provisions.


Sec. 221.151  Method of revoking power of attorney.

    (a) A power of attorney may be revoked only by filing with the 
Department in the manner specified in this section a Notice of 
Revocation of Power of Attorney in a form acceptable to the Office of 
International Aviation.
    (b) Sixty days' notice required. Such Notice of Revocation of Power 
of Attorney shall be filed on not less than sixty days' notice to the 
Department. A Notice of Revocation of Power of Attorney will be deemed 
to be filed only upon its actual receipt by the Department, and the 
period of notice shall commence to run only from such actual receipt.
    (c) Number of copies. Each Notice of Revocation of Power of 
Attorney shall be prepared in triplicate. The original thereof shall be 
filed with the Department and, at the same time that the original is 
transmitted to the Department, the duplicate thereof shall be sent to 
the agent in whose favor the power of attorney was issued (except, if 
the alternate agent has taken over the tariffs, the duplicate of the 
Notice of Revocation of Power of Attorney shall be sent to the 
alternate agent). The third copy of the notice shall be retained by the 
carrier.
    (d) Amendment of tariffs when power of attorney is revoked. When a 
power of attorney is revoked, a corresponding amendment of the tariff 
or tariffs affected shall be made by the issuing agent of such tariffs, 
on not less than statutory notice, to become effective not later than 
the effective date stated in the Notice of Revocation of Power of 
Attorney. In the event of failure to so amend the tariff or tariffs, 
the provisions therein shall remain applicable until lawfully canceled.


Sec. 221.152  Method of withdrawing portion of authority conferred by 
power of attorney.

    If a carrier desires to issue a power of attorney conferring less 
authority than a previous power of attorney issued in favor of the same 
agent, the new power of attorney shall not direct the cancellation of 
such previous power of attorney. In such circumstances, such previous 
power of attorney shall be revoked by issuing and filing a Notice of 
Revocation of Power of Attorney in a form acceptable to the Office of 
International Aviation. Such revocation notice shall include reference 
to the new power of attorney.

Subpart Q--Adoption Publications Required To Show Change in 
Carrier's Name or Transfer of Operating Control


Sec. 221.160  Adoption notice.

    (a) When the name of a carrier is changed or when its operating 
control is transferred to another carrier (including another company 
which has not previously been a carrier), the carrier which will 
thereafter operate the properties shall immediately issue, file with 
the Department, and post for public inspection, an adoption notice in a 
form and containing such information as is approved by the Office of 
International Aviation. (The carrier under its former name or the 
carrier from whom the operating control is transferred shall be 
referred to in this subpart as the ``former carrier'', and the carrier 
under its new name or the carrier, company, or fiduciary to whom the 
operating control is transferred shall be referred to in this subpart 
as the ``adopting carrier''.)
    (b) The adoption notice shall be prepared, filed, and posted as a 
tariff. The adoption notice shall be issued and filed by the adopting 
carrier and not by an agent.
    (c) Copies to be sent to agents and other carriers. At the same 
time that the adoption notice is transmitted to the Department for 
filing, the adopting carrier shall send copies of such adoption notice 
to each agent and carrier to whom the former carrier has given a power 
of attorney or concurrence. (See Sec. 221.163.)


Sec. 221.161  Notice of adoption to be filed in former carrier's 
tariffs.

    At the same time that the adoption notice is issued, posted, and 
filed pursuant to Sec. 221.160, the adopting carrier shall issue, post 
and file with the Department a notice in each effective tariff issued 
by the former carrier providing specific notice of the adoption in a 
manner authorized by the Office of International Aviation and which 
shall contain no matter other than that authorized.


Sec. 221.162  Receiver shall file adoption notices.

    A receiver shall, immediately upon assuming control of a carrier, 
issue and file with the Department an adoption notices as prescribed by 
Secs. 221.160 and

[[Page 40670]]

221.161 and shall comply with the requirements of this subpart.


Sec. 221.163  Agents' and other carriers' tariffs shall reflect 
adoption.

    If the former carrier is shown as a participating carrier under 
concurrence in tariffs issued by other carriers or is shown as a 
participating carrier under power of attorney in tariffs issued by 
agents, the issuing carriers and agents of such tariffs shall, upon 
receipt of the adoption notice, promptly file on statutory notice the 
following amendments to their respective tariffs:
    (a) Cancel the name of the former carrier from the list of 
participating carriers.
    (b) Add the adopting carrier (in alphabetical order) to the list of 
participating carriers. If the adopting carrier already participates in 
such tariff, reference to the substitution notice shall be added in 
connection with such carrier's name in the list of participating 
carriers.


Sec. 221.164  Concurrences or powers of attorney to be reissued.

    (a) Adopting carrier shall reissue adopted concurrences and powers 
of attorney. Within a period of 120 days after the date on which the 
change in name or transfer of operating control occurs, the adopting 
carrier shall reissue all effective powers of attorney and concurrences 
of the former carrier by issuing and filing new powers of attorney and 
concurrences, in the adopting carrier's name, which shall direct the 
cancellation of the respective powers of attorney and concurrences of 
the former carrier. The adopting carrier shall consecutively number its 
powers of attorney and concurrences in its own series of power of 
attorney numbers and concurrence numbers (commencing with No. 1 in each 
series if it had not previously filed any such instruments with the 
Department), except that a receiver or other fiduciary shall 
consecutively number its powers of attorney or concurrences in the 
series of the former carrier. The cancellation reference shall show 
that the canceled power of attorney or concurrence was issued by the 
former carrier.
    (b) If such new powers of attorney or concurrences confer less 
authority than the powers of attorney or concurrences which they are to 
supersede, the new issues shall not direct the cancellation of the 
former issues; in such instances, the provisions of Secs. 221.142 and 
221.152 shall be observed. Concurrences and powers of attorney which 
will not be replaced by new issues shall be revoked in the form and 
manner and upon the notice required by Secs. 221.141 and 221.151.
    (c) Reissue of other carriers' concurrences issued in favor of 
former carrier. Each carrier which has given a concurrence to a carrier 
whose tariffs are subsequently adopted shall reissue the concurrence in 
favor of the adopting carrier. If the carrier which issued the 
concurrence to the former carrier desires to revoke it or desires to 
replace it with a concurrence conferring less authority, the provisions 
of Secs. 221.141 and 221.142 shall be observed.


Sec. 221.165  Cessation of operations without successor.

    If a carrier ceases operations without having a successor, it 
shall:
    (a) File a notice in each tariff of its own issue and cancel such 
tariff in its entirety.
    (b) Revoke all powers of attorney and concurrences which it has 
issued.

Subpart R--Electronically Filed Tariffs


Sec. 221.170  Applicability of the subpart.

    (a) Every air carrier and foreign air carrier shall file its 
international passenger fares tariffs consistent with the provisions of 
this subpart, and part 221 generally. Additionally, any air carrier and 
any foreign air carrier may file its international passenger rules 
tariffs electronically in machine-readable form as an alternative to 
the filing of printed paper tariffs as provided for elsewhere in part 
221. This subpart applies to all carriers and tariff publishing agents 
and may be used by either if the carrier or agent complies with the 
provisions of subpart R. Any carrier or agent that files electronically 
under this subpart must transmit to the Department the remainder of the 
tariff in a form consistent with part 221, Subparts A through Q, on the 
same day that the electronic tariff would be deemed received under 
Sec. 221.190(b).
    (b) To the extent that subpart R is inconsistent with the remainder 
of part 221, subpart R shall govern the filing of electronic tariffs. 
In all other respects, part 221 remains in full force and effect.


Sec. 221.180  Requirements for electronic filing of tariffs.

    (a) No carrier or filing agent shall file an electronic tariff 
unless, prior to filing, it has signed a maintenance agreement or 
agreements, furnished by the Department of Transportation, for the 
maintenance and security of the on-line tariff database.
    (b) No carrier or agent shall file an electronic tariff unless, 
prior to filing, it has submitted to the Department's Office of 
International Aviation, Pricing and Multilateral Affairs Division, and 
received approval of, an application containing the following 
commitments:
    (1) The filer shall file tariffs electronically only in such format 
as shall be agreed to by the filer and the Department. (The filer shall 
include with its application a proposed format of tariff. The filer 
shall also submit to the Department all information necessary for the 
Department to determine that the proposed format will accommodate the 
data elements set forth in Sec. 221.202.)
    (2) The filer shall provide, maintain and install in the Public 
Reference Room at the Department (as may be required from time to time) 
one or more CRT devices and printers connected to its on-line tariff 
database. The filer shall be responsible for the transportation, 
installation, and maintenance of this equipment and shall agree to 
indemnify and hold harmless the Department and the U.S. Government from 
any claims or liabilities resulting from defects in the equipment, its 
installation or maintenance.
    (3) The filer shall provide public access to its on-line tariff 
database, at Departmental headquarters, during normal business hours.
    (4) The access required at Departmental headquarters by this 
subpart shall be provided at no cost to the public or the Department.
    (5) The filer shall provide the Department access to its on-line 
tariff database 24 hours a day, 7 days a week, except, that the filer 
may bring its computer down between 6:00 a.m. and 6:00 p.m. Eastern 
Standard Time or Eastern Daylight Saving Time, as the case may be, on 
Sundays, when necessary, for maintenance or for operational reasons.
    (6) The filer shall ensure that the Department shall have the sole 
ability to approve or disapprove electronically any tariff filed with 
the Department and the ability to note, record and retain 
electronically the reasons for approval or disapproval. The carrier or 
agent shall not make any changes in data or delete data after it has 
been transmitted electronically, regardless of whether it is approved, 
disapproved, or withdrawn. The filer shall be required to make data 
fields available to the Department in any record which is part of the 
on-line tariff database.
    (7) The filer shall maintain all fares and rules filed with the 
Department and all Departmental approvals, disapprovals and other 
actions, as well as all Departmental notations concerning such 
approvals, disapprovals or other actions, in the on-line tariff 
database for a period of two (2) years after the fare or rule becomes

[[Page 40671]]

inactive. After this period of time, the carrier or agent shall provide 
the Department, free of charge, with a copy of the inactive data on a 
machine-readable tape or other mutually acceptable electronic medium.
    (8) The filer shall ensure that its on-line tariff database is 
secure against destruction or alteration (except as authorized by the 
Department), and against tampering.
    (9) Should the filer terminate its business or cease filing 
tariffs, it shall provide to the Department on a machine-readable tape 
or any other mutually acceptable electronic medium, contemporaneously 
with the cessation of such business, a complete copy of its on-line 
tariff database.
    (10) The filer shall furnish to the Department, on a daily basis, 
on a machine-readable tape or any other mutually acceptable electronic 
medium, all transactions made to its on-line tariff database.
    (11) The filer shall afford any authorized Departmental official 
full, free, and uninhibited access to its facilities, databases, 
documentation, records, and application programs, including support 
functions, environmental security, and accounting data, for the purpose 
of ensuring continued effectiveness of safeguards against threats and 
hazards to the security or integrity of its electronic tariffs, as 
defined in this subpart.
    (12) The filer must provide a field in the Government Filing File 
for the signature of the approving U.S. Government Official through the 
use of a Personal Identification Number (PIN).
    (13) The filer shall provide a leased dedicated data conditioned 
circuit with sufficient capacity (not less than 28.8K baud rate) to 
handle electronic data transmissions to the Department. Further, the 
filer must provide for a secondary or a redundancy circuit in the event 
of the failure of the dedicated circuit. The secondary or redundancy 
circuit must be equal to or greater than 14.4K baud rate. In the event 
of a failure of the primary circuit the filer must notify the Chief of 
the Pricing and Multilateral Affairs Division of the Department's 
Office of International Aviation, as soon as possible, after the 
failure of the primary circuit, but not later than two hours after 
failure, and must provide the name of the contact person at the 
telephone company who has the responsibility for dealing with the 
problem.
    (c) Each time a filer's on-line tariff database is accessed by any 
user during the sign-on function the following statement shall appear:

    The information contained in this system is for informational 
purposes only, and is a representation of tariff data that has been 
formally submitted to the Department of Transportation in accordance 
with applicable law or a bilateral treaty to which the U.S. 
Government is a party.


Sec. 221.190  Time for filing and computation of time periods.

    (a) A tariff, or revision thereto, or a special tariff permission 
application may be electronically filed with the Department immediately 
upon compliance with Sec. 221.180, and anytime thereafter, subject to 
Sec. 221.400. The actual date and time of filing shall be noted with 
each filing.
    (b) For the purpose of determining the date that a tariff, or 
revision thereto, filed pursuant to this subpart, shall be deemed 
received by the Department:
    (1) For all electronic tariffs, or revisions thereto, filed before 
5:30 p.m. local time in Washington, DC, on Federal business days, such 
date shall be the actual date of filing.
    (2) For all electronic tariffs, or revisions thereto, filed after 
5:30 p.m. local time in Washington, DC, on Federal business days, and 
for all electronic tariffs, or revisions thereto, filed on days that 
are not Federal business days, such date shall be the next Federal 
business day.


Sec. 221.195  Requirement for filing printed material.

    (a) Any tariff, or revision thereto, filed in paper format which 
accompanies, governs, or otherwise affects, a tariff filed 
electronically, must be received by the Department on the same date 
that a tariff or revision thereto, is filed electronically with the 
Department under Sec. 221.190(b). Further, such paper tariff, or 
revision thereto, shall be filed in accordance with the requirements of 
subparts A through Q of part 221. No tariff or revision thereto, filed 
electronically under this subpart, shall contain an effective date 
which is at variance with the effective date of the supporting paper 
tariff, except as authorized by the Department.
    (b) Any printed justifications, or other information accompanying a 
tariff, or revision thereto, filed electronically under this subpart, 
must be received by the Department on the same date as any tariff, or 
revision thereto, filed electronically.
    (c) If a filer submits a filing which fails to comply with 
paragraph (a) of this section, or if the filer fails to submit the 
information in conformity with paragraph (b) of this section, the 
filing will be subject to rejection, denial, or disapproval, as 
applicable.


Sec. 221.200  Content and explanation of abbreviations, reference marks 
and symbols.

    (a) Content. The format to be used for any electronic tariff must 
be that agreed to in advance as provided for in Sec. 221.180, and must 
include those data elements set forth in Sec. 221.202. Those portions 
that are filed in paper form shall comply in all respects with part 
221, subparts A through Q.
    (b) Explanation of abbreviations, reference marks and symbols. 
Abbreviations, reference marks and symbols which are used in the tariff 
shall be explained in each tariff.
    (1) The following symbols shall be used:

R--Reduction
I--Increase
N--New Matter
X--Canceled Matter
C--Change in Footnotes, Routings, Rules or Zones
E--Denotes change in Effective Date only.

    (2) Other symbols may be used only when an explanation is provided 
in each tariff and such symbols are consistent throughout all the 
electronically filed tariffs from that time forward.


Sec. 221.201  Statement of filing with foreign governments to be shown 
in air carrier's tariff filings.

    (a) Every electronic tariff filed by or on behalf of an air carrier 
that contains fares which, by international convention or agreement 
entered into between any other country and the United States, are 
required to be filed with that country, shall include the following 
statement:

    The rates, fares, charges, classifications, rules, regulations, 
practices, and services provided herein have been filed in each 
country in which filing is required by treaty, convention, or 
agreement entered into between that country and the United States, 
in accordance with the provisions of the applicable treaty, 
convention, or agreement.

    (b) The statement referenced in Sec. 221.201(a) may be included 
with each filing advice by the inclusion of a symbol which is properly 
explained.
    (c) The required symbol may be omitted from an electronic tariff or 
portion thereof if the tariff publication that has been filed with any 
other country pursuant to its tariff regulations bears a tariff filing 
designation of that country in addition to the D.O.T. number appearing 
on the tariff.


Sec. 221.202  The filing of tariffs and amendments to tariffs.

    All electronic tariffs and amendments filed under this subpart, 
including those for which authority is sought to effect changes on less 
than bilateral/statutory

[[Page 40672]]

notice under Sec. 221.212, shall contain the following data elements:
    (a) A Filing Advice Status File--which shall include:
    (1) Filing date and time;
    (2) Filing advice number;
    (3) Reference to carrier;
    (4) Reference to geographic area;
    (5) Effective date of amendment or tariff;
    (6) A place for government action to be recorded; and
    (7) Reference to the Special Tariff Permission when applicable.
    (b) A Government Filing File--which shall include:
    (1) Filing advice number;
    (2) Carrier reference;
    (3) Filing date and time;
    (4) Proposed effective date;
    (5) Justification text; reference to geographic area and affected 
tariff number;
    (6) Reference to the Special Tariff Permission when applicable;
    (7) Government control data, including places for:
    (i) Name of the government analyst, except that this data shall not 
be made public, notwithstanding any other provision in this or any 
other subpart;
    (ii) Action taken and reasons therefor.
    (iii) Remarks, except that internal Departmental data shall not be 
made public, notwithstanding any other provision in this or any other 
subpart;
    (iv) Date action is taken; and
    (v) Personal Identification Number; and
    (8) Fares tariff, or proposed changes to the fares tariffs, 
including:
    (i) Market;
    (ii) Fare code;
    (iii) One-way/roundtrip (O/R);
    (iv) Fare Amount;
    (v) Currency;
    (vi) Footnote (FN);
    (vii) Rule Number, provided that, if the rule number is in a 
tariff, reference shall be made to that tariff containing the rule;
    (viii) Routing (RG) Number(s), provided that the abbreviation MPM 
(Maximum Permissible Routing) shall be considered a number for the 
purpose of this file;
    (ix) Effective date and discontinue date if the record has been 
superseded;
    (x) Percent of change from previous fares; and
    (xi) Expiration date.
    (9) Rules tariff, or proposed changes to the rules tariffs.
    (i) Rules tariffs shall include:
    (A) Title: General description of fare rule type and geographic 
area under the rule;
    (B) Application: Specific description of fare class, geographic 
area, type of transportation (one way, round-trip, etc.);
    (C) Period of Validity: Specific description of permissible travel 
dates and any restrictions on when travel is not permitted;
    (D) Reservations/ticketing: Specific description of reservation and 
ticketing provisions, including any advance reservation/ticketing 
requirements, provisions for payment (including prepaid tickets), and 
charges for any changes;
    (E) Capacity Control: Specific description of any limitation on the 
number of passengers, available seats, or tickets;
    (F) Combinations: Specific description of permitted/restricted fare 
combinations;
    (G) Length of Stay: Specific description of minimum/maximum number 
of days before the passenger may/must begin return travel;
    (H) Stopovers: Specific description of permissible conditions, 
restrictions, or charges on stopovers;
    (I) Routing: Specific description of routing provisions, including 
transfer provisions, whether on-line or inter-line;
    (J) Discounts: Specific description of any limitations, special 
conditions, and discounts on status fares, e.g. children or infants, 
senior citizens, tour conductors, or travel agents, and any other 
discounts;
    (K) Cancellation and Refunds: Specific description of any special 
conditions, charges, or credits due for cancellation or changes to 
reservations, or for request for refund of purchased tickets;
    (L) Group Requirements: Specific description of group size, travel 
conditions, group eligibility, and documentation;
    (M) Tour Requirements: Specific description of tour requirements, 
including minimum price, and any stay or accommodation provisions;
    (N) Sales Restrictions: Specific description of any restrictions on 
the sale of tickets;
    (O) Rerouting: Specific description of rerouting provisions, 
whether on-line or inter-line, including any applicable charges; and
    (P) Miscellaneous provisions: Any other applicable conditions.
    (ii) Rules tariffs shall not contain the phrase ``intentionally 
left blank''.
    (10) Any material accepted by the Department for informational 
purposes only shall be clearly identified as ``for informational 
purposes only, not part of official tariff'', in a manner acceptable to 
the Department.
    (c) A Historical File--which shall include:
    (1) Market;
    (2) Fare code;
    (3) One-way/roundtrip (O/R);
    (4) Fare amount;
    (5) Currency;
    (6) Footnote (FN);
    (7) Rule Number, provided that, if the rule number is in a tariff 
other than the fare tariff, reference shall be made to that tariff 
containing the rule;
    (8) Rule text applicable to each fare at the time that the fare was 
in effect.
    (9) Routing (RG) Number(s), provided that the abbreviation MPM 
(Maximum
    Permissible Routing) shall be considered a number for the purpose 
of this file;
    (10) Effective Date;
    (11) Discontinue Date;
    (12) Government Action;
    (13) Carrier;
    (14) All inactive fares (two years);
    (15) Any other fare data which is essential; and
    (16) Any necessary cross reference to the Government Filing File 
for research or other purposes.


Sec. 221.203  Unique rule numbers required.

    (a) Each ``bundled'' and ``unbundled'' normal economy fare 
applicable to foreign air transportation shall bear a unique rule 
number.
    (b) The unique rule numbers for the fares specified in this section 
shall be set by mutual agreement between the filer and the Department 
prior to the implementation of any electronic filing system.


Sec. 221.204  Adoption of provisions of one carrier by another carrier.

    When one carrier adopts the tariffs of another carrier, the 
effective and prospective fares of the adopted carrier shall be changed 
to reflect the name of the adopting carrier and the effective date of 
the adoption. Further, each adopted fare shall bear a notation which 
shall reflect the name of the adopted carrier and the effective date of 
the adoption, provided that any subsequent revision of an adopted fare 
may omit the notation.


Sec. 221.205  Justification and explanation for certain fares.

    Any carrier or its agent must provide, as to any new or increased 
bundled or unbundled (whichever is lower) on-demand economy fare in a 
direct-service market, a comparison between, on the one hand, that 
proposed fare and, on the other hand, the ceiling fare allowed in that 
market based on the SFFL.


Sec. 221.206  Statement of fares.

    All fares filed electronically in direct-service markets shall be 
filed as single factor fares.

[[Page 40673]]

Sec. 221.210  Suspension of tariffs.

    (a) A fare, charge, rule or other tariff provision that is 
suspended by the Department pursuant to section 41509 of the statute 
shall be noted by the Department in the Government Filing File and the 
Historical File.
    (b) When the Department vacates a tariff suspension, in full or in 
part, and after notification of the carrier by the Department, such 
event shall be noted by the carrier in the Government Filing File and 
the Historical File.
    (c) When a tariff suspension is vacated or when the tariff becomes 
effective upon termination of the suspension period, the carrier or its 
agent shall refile the tariff showing the effective date.


Sec. 221.211  Cancellation of suspended matter.

    When, pursuant to an order of the Department, the cancellation of 
rules, fares, charges, or other tariff provision is required, such 
action shall be made by the carrier by appropriate revisions to the 
tariff.


Sec. 221.212  Special tariff permission.

    (a) When a filer submits an electronic tariff or an amendment to an 
electronic tariff for which authority is sought to effect changes on 
less than bilateral/statutory notice, and no related tariff material is 
involved, the submission shall bear a sequential filing advice number. 
The submission shall appear in the Government Filing File and the 
Filing Advice Status File, and shall be referenced in such a manner to 
clearly indicate that such changes are sought to be made on less than 
bilateral/statutory notice.
    (b) When a filer submits an electronic tariff or an amendment to 
the electronic tariff for which authority is sought to effect changes 
on less than bilateral/statutory notice, and it contains related paper 
under Sec. 221.195, the paper submission must bear the same filing 
advice number as that used for the electronic submission. Such paper 
submission shall be in the form of a revised tariff page rather than as 
a separate request for Special Tariff Permission. All material being 
submitted on a paper tariff page as part of an electronic submission 
will clearly indicate the portion(s) of such tariff page that is being 
filed pursuant to, and in conjunction with, the electronic submission 
on less than bilateral/statutory notice.
    (c) Departmental action on the Special Tariff Permission request 
shall be noted by the Department in the Government Filing File and the 
Filing Advice Status File.
    (d) When the paper portion of a Special Tariff Permission that has 
been filed with the Department pursuant to paragraph (b) of this 
section is disapproved or other action is taken by the Department, such 
disapproval or other action will be reflected on the next consecutive 
revision of the affected tariff page(s) in the following manner:
    (1) Example of disapproval statement:

    The portion(s) of ____ Revised Page ____ filed under EFA No. 
____ was/were disapproved by DOT.
    (2) Example of other action:
    The portion(s) ____ Revised Page ____ filed under EFA No. ____ 
was/were required to be amended by DOT.

    (e) When the Department disapproves in whole or in part or 
otherwise takes an action against any submission filed under this part, 
the filer must take corrective action within two business days 
following the disapproval or notice of other action.
    (f) All submissions under this section shall comply with the 
requirements of Sec. 221.202.


Sec. 221.300  Discontinuation of electronic tariff system.

    In the event that the electronic tariff system is discontinued, or 
the source of the data is changed, or a filer discontinues its 
business, all electronic data records prior to such date shall be 
provided immediately to the Department, free of charge, on a machine-
readable tape or other mutually acceptable electronic medium.


Sec. 221.400  Filing of paper tariffs required.

    (a) After approval of any application filed under Sec. 221.180 of 
this subpart to allow a filer to file tariffs electronically, the filer 
in addition to filing electronically must continue to file printed 
tariffs as required by subparts A through Q of part 221 for a period of 
90 days, or until such time as the Department shall deem such filing no 
longer to be necessary: Provided that during the period specified by 
this section the filed printed tariff shall continue to be the official 
tariff.
    (b) Upon notification to the filer that it may commence to file its 
tariffs solely in an electronic mode, concurrently with the 
implementation of filing electronically the filer shall:
    (1) Furnish the Department with a copy of all the existing 
effective and prospective records on a machine-readable tape or other 
mutually acceptable electronic medium accompanied by an affidavit 
attesting to the accuracy of such records; and
    (2) Simultaneously cancel such records from the paper tariff in the 
manner prescribed by subparts A through Q of part 221.


Sec. 221.500  Transmission of electronic tariffs to subscribers.

    (a) Each filer that files an electronic tariff under this subpart 
shall make available to any person so requesting, a subscription 
service meeting the terms of paragraph (b) of this section.
    (b) Under the required subscription service, remote access shall be 
allowed to any subscriber to the on-line tariff database, including 
access to the justification required by Sec. 221.205. The subscription 
service shall not preclude the offering of additional services by the 
filer or its agent.
    (c) The filer at its option may establish a charge for providing 
the required subscription service to subscribers: Provided that the 
charge may not exceed a reasonable estimate of the added cost of 
providing the service.
    (d) Each filer shall provide to any person upon request, a copy of 
the machine-readable data (raw tariff data) of all daily transactions 
made to its on-line tariff database. The terms and prices for such 
value-added service may be set by the filer: Provided that such terms 
and prices shall be non-discriminatory, i.e., that they shall be 
substantially equivalent for all similarly-situated persons.


Sec. 221.550  Copies of tariffs made from filer's printer(s) located in 
Department's public reference room.

    Copies of information contained in a filer's on-line tariff 
database may be obtained by any user at Departmental Headquarters from 
the printer or printers placed in Tariff Public Reference Room by the 
filer. The filer may assess a fee for copying, provided it is 
reasonable and that no administrative burden is placed on the 
Department to require the collection of the fee or to provide any 
service in connection therewith.


Sec. 221.600  Actions under assigned authority and petitions for review 
of staff action.

    (a) When an electronically filed record which has been submitted to 
the Department under this subpart, is disapproved (rejected), or a 
special tariff permission is approved or denied, under authority 
assigned by the Department of Transportation's Regulations, 14 CFR 
385.13, such actions shall be understood to include the following 
provisions:
    (1) Applicable to a record or records which is/are disapproved 
(rejected). The record(s) disapproved (rejected) is/are void, without 
force or effect, and must not be used.

[[Page 40674]]

    (2) Applicable to a record or records which is/are disapproved 
(rejected), and to special tariff permissions which are approved or 
denied. This action is taken under authority assigned by the Department 
of Transportation in its Organization Regulations, 14 CFR 385.13. 
Persons entitled to petition for review of this action pursuant to the 
Department's Regulations, 14 CFR 385.50, may file such petitions within 
seven days after the date of this action. This action shall become 
effective immediately, and the filing of a petition for review shall 
not preclude its effectiveness.
    (b) [Reserved]

PART 250--OVERSALES

    2. The authority citation for part 250 continues to read as 
follows:

    Authority: 49 U.S.C. chapters 401, 411, 413, 417.


Sec. 250.4  [Removed]

    3. Section 250.4--Denied boarding compensation tariffs for foreign 
air transportation is removed.
    4. A new part 293 is added as follows:

PART 293--INTERNATIONAL PASSENGER TRANSPORTATION

Subpart A--General

Sec.
293.1  Applicability.
293.2  Definitions.

Subpart B--Exemption From Filing of Tariffs

293.10  Exemption.
293.11  Required statement.
293.12  Revocation of exemption.

Subpart C--Effect of Exemption

293.20  Rule of construction.
293.21  Incorporation of contract terms by reference.
293.22  Effectiveness of tariffs on file.

    Authority: 49 U.S.C. 40101, 40105, 40109, 40113, 40114, 41504, 
41701, 41707, 41708, 41709, 41712, 46101; 14 CFR 1.56(j)(2)(ii).

Subpart A--General


293.1  Applicability.

    This part applies to air carriers and foreign air carriers 
providing scheduled transportation of passengers and their baggage in 
foreign air transportation.


293.2  Definitions.

    For purposes of this part the definitions in Sec. 221.3 of this 
chapter apply.

Subpart B--Exemption From Filing Tariffs


293.10  Exemption.

    (a) Air carriers and foreign air carriers are exempted from the 
duty to file passenger tariffs with the Department of Transportation, 
as required by 49 U.S.C. 41504 and 14 CFR part 221, as follows:
    (1) The Assistant Secretary for Aviation and International Affairs 
will, by notice, issue and periodically update a list establishing the 
following categories of markets:
    (i) In Category A markets, carriers are exempted from the duty to 
file all passenger tariffs unless they are nationals of countries 
listed in Category C, or are subject to the provisions of paragraph (c) 
of this section.
    (ii) In Category B markets, carriers are exempted from the duty to 
file all passenger tariffs except those setting forth one-way economy-
class fares and governing provisions thereto, unless they are nationals 
of countries listed in Category C, or are subject to the provisions of 
paragraph (c) of this section.
    (iii) In Category C markets, carriers shall continue to file all 
passenger tariffs, except as provided in Sec. 293.10(b);
    (2) The Assistant Secretary will list country-pair markets falling 
in Categories A and C, taking into consideration the factors in 
paragraphs (a)(2) (i) through (iv) of this section. All country-pair 
markets not listed in Categories A or C shall be considered to be in 
Category B and need not be specifically listed.
    (i) Whether the U.S. has an aviation agreement in force with that 
country providing double-disapproval treatment of prices filed by the 
carriers of the Parties;
    (ii) Whether the country's Government has disapproved or deterred 
U.S. carrier price leadership or matching tariff filings in any market;
    (iii) Whether the country's Government has placed significant 
restrictions on carrier entry or capacity in any market; and
    (iv) Whether the country's government is honoring the provisions of 
the bilateral aviation agreement and there are no significant bilateral 
problems.
    (b) By notice of the Assistant Secretary, new country-pair markets 
will be listed in the appropriate category, and existing country-pair 
markets may be transferred between categories.
    (c) Notwithstanding a determination that a country is in Category A 
or B, if the Assistant Secretary finds that effective price leadership 
opportunities for U.S. carriers are not available between that country 
and any third country, carriers that are nationals of such country may 
be required to file tariffs, as provided under part 221 or as otherwise 
directed in the notice, for some or all of their services between the 
U.S. and third countries.
    (d) Air carriers and foreign air carriers are exempted from the 
duty to file governing rules tariffs containing general conditions of 
carriage with the Department of Transportation, as required by 49 
U.S.C. 41504 and 14 CFR part 221. A description of the general 
conditions of carriage will be included in the Assistant Secretary's 
initial notice.
    (e) Notwithstanding paragraph (d) of this section, air carriers and 
foreign air carriers shall file and maintain a tariff with the 
Department to the extent required by 14 CFR 203.4 and other 
implementing regulations.
    (f) Authority for determining what rules are covered by paragraph 
(d) of this section and for determining the filing format for the 
tariffs required by paragraph (e) of this section is delegated to the 
Director of the Office of International Aviation.


293.11  Required statement.

    Each governing rules tariff shall include the following statements:
    (a) ``Rules herein containing general conditions of carriage are 
not part of the official U.S. D.O.T. tariff.''
    (b) ``The rules and provisions contained herein apply only to the 
passenger fares and charges that the U.S. Department of Transportation 
requires to be filed as tariffs.''


293.12  Revocation of exemption.

    (a) The Department, upon complaint or upon its own initiative, may, 
immediately and without hearing, revoke, in whole or in part, the 
exemption granted by this part with respect to a carrier or carriers, 
when such action is in the public interest.
    (b) Any such action will be taken in a notice issued by the 
Assistant Secretary for Aviation and International Affairs, and will 
identify the tariff matter to be filed, and the deadline for carrier 
compliance.
    (c) Revocations under this section will have the effect of 
reinstating all applicable tariff requirements and procedures specified 
in the Department's Regulations for the tariff material to be filed, 
unless otherwise specified by the Department.

Subpart C--Effect of Exemption


293.20  Rule of construction.

    To the extent that a carrier holds an effective exemption from the 
duty to file tariffs under this part, it shall not, unless otherwise 
directed by order of the Department, be subject to tariff posting, 
notification or subscription

[[Page 40675]]

requirements set forth in 49 U.S.C. 41504 or 14 CFR part 221, except as 
provided in Sec. 293.21.


293.21  Incorporation of contract terms by reference.

    Carriers holding an effective exemption from the duty to file 
tariffs under this part may incorporate contract terms by reference 
(i.e., without stating their full text) into the passenger ticket or 
other document embodying the contract of carriage for the scheduled 
transportation of passengers in foreign air transportation, provided 
that:
    (a) The notice, inspection, explanation and other requirements set 
forth in 14 CFR 221.107, paragraphs (a), (b), (c) and (d) are complied 
with, to the extent applicable;
    (b) In addition to other remedies at law, a carrier may not claim 
the benefit under this section as against a passenger, and a passenger 
shall not be bound by incorporation of any contract term by reference 
under this part, unless the requirements of paragraph (a), of this 
section are complied with, to the extent applicable; and
    (c) The purpose of this section is to set uniform disclosure 
requirements, which preempt any State requirements on the same subject, 
for incorporation of terms by reference into contracts of carriage for 
the scheduled transportation of passengers in foreign air 
transportation.


293.22  Effectiveness of tariffs on file.

    (a) One hundred and eighty days after the date of effectiveness of 
the Assistant Secretary's notice, passenger tariffs on file with the 
Department covered by the scope of the exemption will cease to be 
effective as tariffs under 49 U.S.C. 41504 and 41510, and the 
provisions of 14 CFR part 221, and will be canceled by operation of 
law.
    (b) One hundred and eighty days after the date of effectiveness of 
the Assistant Secretary's notice, pending applications for filing and/
or effectiveness of any passenger tariffs covered by the scope of the 
exemption, will be dismissed by operation of law. No new filings or 
applications will be permitted after the date of effectiveness of the 
Assistant Secretary's notice except as provided under Sec. 293.12.

    Issued in Washington, D.C. on July 16, 1999.
A. Bradley Mims,
Acting Assistant Secretary for Aviation and International Affairs.
[FR Doc. 99-18700 Filed 7-21-99; 9:52 am]
BILLING CODE 4910-01-P