that weight need not be shown on the individual labels where bulk weighing has been authorized. Do not serial number pouch labels.

(2) First-class outsides. When it is not possible to enclose a first-class piece in a pouch or sack, use crayon or indelible pencil to enter weight and FCM endorsement in large figures near address. When the outside is billed to an airport not located at city shown in address, also prominently show the airport destination code in brackets.

(b) Form 2713, Dispatch Record of First-Class Mail by Air—(1) Description. Form 2713 is a four-part serially numbered snapout form for documenting the dispatch of first-class mail (FCM) to domestic air carriers authorized to transport first-class mail. It is also a bill for air transportation charges and must be accurate and complete.

(2) Initial preparation. The dispatching postal unit will show the following on Form 2713:

(i) Heading form. Enter origin code, date, route number, and mail ready time. Show trip number in "Available For Trip No." box only when dispatches are made to local service carriers.

(ii) Destinations. List first-class mail pouches on one form for destinations served by a local service trip. List firstclass mail pouches on one form for points served by a trunkline carrier's trips departing within a limited time bracket which can be picked up at the same time. (iii) Transfer point. Enter only intraline transfer point for dispatches due to be transferred to another trip of the carrier of dispatch.

(iv) Pieces and pounds. Enter pouches and pounds under appropriate destination. Use one column only for each destination. If pouches cannot be individually listed under one destination column, accumulate pieces and weights on a scratch sheet and bulk list total pieces and weights under appropriate destination.

(v) Grand totals of pieces and pounds. Cross-add destination totals for pieces and pounds and enter in "Grand Total" box.

(vi) Postal signature. The dispatch clerk will sign his name on the form. The minimum requirement for signature is first initial and last name.

(3) Delivering first-class mail and Form 2713. In delivering FCM and related Form 2713 to air carrier, observe the following:

(i) Airport mail facilities. Air carrier representative picking up the mail will:

(a) Verify FCM with entries on Form 2713.

(b) Sign the form in space provided on left side of form and enter pickup time.

(c) Remove Part 4 and leave at airport mail facility. Retain Parts 1, 2, and 3, with carbon paper interleaved, for completing when FCM is boarded on a trip.

(ii) Air stop post offices. The dispatching clerk will retain Part 4 and give the FCM and Parts 1, 2, and 3 of related Form 2713, intact, to the mail messenger or vehicle service driver for delivery to air carrier representative at the airport for securing verification of piece count and completed forms.

(4) Completion of form. The air carrier will complete Form 2713 as follows:

(i) Airport mail facilities. When FCM is boarded on one or more trips, air carrier will complete Form 2713 by entering only the trip number or numbers boarding mail in space provided under each destination. If the FCM is not boarded within 4-hour holding period, beginning at pickup time, air carrier must notify postal unit and secure instructions for disposition of FCM. Air carrier representative will complete the certificate by entering date, two letter airline code, and signing. The certificate must be signed. The minimum requirement is first initial and last name. When the form is completed, the air carrier will separate Parts 1, 2, and 3, retain Parts 2 and 3 and return Part 1 to the postal unit as promptly as local conditions will permit. In no case will the transmittal be less frequent than once each 24 hours. In these cases, air carrier must notify postal unit by telephone of trips boarding FCM during each 4-hour holding period.

(ii) Air stop post offices. As most FCM dispatches made by air stop post offices are accommodated on trips connected by mail messenger (MM) or vehicle service (VS) driver, air carrier representative will complete Form 2713 by (a) entering the boarding trip number or numbers in the space provided under each destination, (b) dating certification, (c) entering two letter airline code, (d) signing the form, (e) separating Parts 1, 2, and 3 and (ƒ) returning completed Part 1 to the MM or VS driver for delivery to dispatching post office. When it is not possible to handle Forms 2713 in this manner, arrangements similar to those

in subdivision (i) of this subparagraph will be made.

(5) Review of form. The dispatching postal unit will review Form 2713 as follows:

(i) Part 4, Form 2713. Part 4 will always be retained in the dispatching airport mail facility or air stop post office. It will be used to (a) monitor the 4-hour holding rule, see § 534.3 (a) (c) and (b) see that completed Part 1 of the form is returned.

(ii) Part 1, Form 2713. When the air carrier returns Part 1, the dispatching postal unit will review the form to assure that (a) it is fully completed, (b) no nonessential data, such as route numbers and dates, are shown in "Boarded on Trip Nos." block and (c) necessary signatures are in proper order.

(ii) Completion of Part 4, Form 2713. The dispatching postal unit will, following review of Part 1, enter trip number or numbers boarding the FCM on Part 4 as a local record of FCM transported.

(6) Voiding Form 2713. When none of the FCM tendered is transported and the postal unit instructs the air carrier to return the mail to the postal unit, the receiving postal representative will void all four parts, send Parts 1, 2, and 3 to Dallas Postal Data Center, with weekly transmittal of forms, and file Part 4.

(7) Distribution. Distribute Parts 1, 2, 3, and 4 as follows:

(i) Part 1. Dispatching postal units will enclose completed and voided forms in P-87-A envelope and forward each Friday following last dispatch of FCM to:

Postal Data Center, Post Office Department, Box 1557, Main Post Office Building, Dallas, Tex. 75299.

(ii) Part 2. Air Carrier Accounting Office.

(iii) Part 3. Air Carrier Station Record.

(iv) Part 4. Dispatching Postal Unit File.

(c) Form 2718, First-Class Mail by Air exception Record-(i) Description. Form 2718 is a four part snapout form with basic instruction regarding its use on the face of the form. It serves as a report of irregular transfers of FCM between air carriers at point of origin as well as at intermediate points short of destination. It also serves as a report of FCM turned into a postal unit short of destination. Form 2718 is an accounting document for adjusting air transporta

tion charges which were ordered but not performed.

(2) Preparation. The delivering air carrier (carrier in possession of FCM) will, after receiving instructions from the local postal unit, prepare Form 2718 reporting the following situations:

(i) Part of FCM returned to postal unit at origin of FCM.

(ii) FCM turned into a postal unit at an intermediate point.

(iii) All of FCM transferred to another carrier at origin point of FCM.

(iv) Part of FCM transferred to another carrier at origin point of FCM. (v) FCM transferred to another carrier at an intermediate point short of destination.

(3) Transferring or delivering FCM. When transferring or delivering FCM to air carrier or postal unit observe the following:

(i) When FCM is being transferred to another air carrier or delivered to the local postal unit, the delivering carrier will prepare and present all four parts of Form 2718 to air carrier or postal unit with related FCM and obtain signature to acknowledge receipt.

(ii) Distribution of parts of Form 2718 by receiving carrier or postal unit, will be as follows:

(a) When FCM is transferred to another air carrier, send:

(1) Parts 1 and 2 to local postal unit for forwarding with Forms 2713 to Dallas Postal Data Center.

(2) Part 3 to delivering carrier as a receipt and for forwarding to carrier's accounting office.

(3) Part 4 to receiving air carrier for forwarding to carrier accounting office.

(b) When FCM is delivered to Postal Unit, send:

(1) Parts 1 and 2 to local postal unit for forwarding to Dallas Postal Data Center.

(2) Part 3 to delivering air carrier for transmitting to air carrier accounting office.

(3) Part 4 retain in local postal unit. (d) Form 2753-A, Mail Delivery Record. See § 533.6 of this chapter for handling Form 2753-A.

§ 534.6 Reporting and processing FCM irregularities.

(a) Form 2579, Report of Irregular Handling of Airmail—(1) Use. Form 2759 is used by postal employees to report air carrier irregularities in the handling of FCM. It must also be used by postal units to advise local transportation division of irregular transfer and off-loading of FCM at intermediate points short of destination. Since this form is also used to report airmail irregularities, check box "1st Class by Air" to assure proper evaluation of the report.

(2) Who prepares. Postal clerk who first handles FCM which obviously has been mishandled by an air carrier or who is informed of irregular transfers or off-loadings by receipt in the postal unit of Parts 1 and 2 of Form 2718, is required to prepare Form 2759 report.

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(3) FCM irregularities requiring close attention. (1) Refusals/removals FCM are not subject to the preparation of briefs and the imposition of fines under the space available provisions. However, remedial action may be required. Submit memorandum report with full particulars to enable the director, transportation division, to take such corrective action as may be necessary in situations of repetitive occurrences involving refusals and removals that impair the service accorded FCM. See subparagraph (2) of this paragraph.

(ii) Delayed delivery of FCM will be reported when more than 1 hour from time of arrival of trip elapses before delivery to AMF, MM, or VS driver. At non-AMF points, the post office clerk receiving the delayed FCM from the MM or VS driver is responsible for preparing Form 2759 under such circumstances.

(iii) Damage to FCM and equipment is a finable irregularity since air carriers are responsible for according FCM the same care and safeguards as is given regular airmail. See § 534.73 (a) (6). Furnish full particulars as to pieces damaged, and extent, and pieces actually wet because of exposure to the elements.

(b) Instances where fines can be levied (1) Authorization for fining. The CAB rate order prescribes that "no air carrier shall be subject to penalties (fines) with respect to the carriage of such mail except to cover serious cases of failure to protect mail from damage and depredation or repetitive instances of

neglect resulting in substantial delay. Inability to accommodate such mail on a specific flight or flights shall not be construed as neglect."

(2) Processing of finable FCM cases. Send Form 2759 for (1) damage to mail or equipment, including repetitive instances occurring at the same airport, (ii) failure to protect FCM from depredation, and (iii) neglect resulting in substantial delay, to local transportation division for evaluation and processing with those covering airmail.

(c) Distribution. Postal units will distribute copies of Form 2759 according to the instructions printed on each page of the form.

PART 535-TRANSPORTATION OF MAIL BY AIR TAXI OPERATORS

§ 535.1

Air taxi mail service; general information.

(a) Definitions. (1) Terms used in this part are defined as follows:

(i) Aircraft. A multiengine aircraft with a gross takeoff weight of 12.500 pounds or less, unless otherwise specified.

(ii) Air taxi mail service. The transportation of mail between specific points by an authorized air taxi operator on schedules fixed by the Postmaster General (PMG).

(iii) Certifying postmaster. Only designated postmasters or their authorized representatives are authorized to certify for air taxi mail service performed.

(iv) Department. Post Office Department (POD).

(v) Emergency service. Temporary air taxi arrangements to prevent interruption of regular mail service.

(vi) Notice of intent. Filed by the Post Office Department with Civil Aeronautics Board (CAB) to use air taxi mail service between specific air stop points.

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(vii) Operator. An air carrier coming within the classification of "air taxi operators" established by Part 298, Title 14, Code of Federal Regulations (CFR). (viii) Penalties. A monetary assessed operator for mishandling mail and for certain operational irregularities. (ix) Pilot. This term applies to pilotin-command, second-in-command or copilot of an aircraft.

(x) Proposal. An offer by an operator to transport mail. Proposals are used to enable the Post Office Department to select an air taxi operator to be authorized by the Civil Aeronautics Board to transport mail by aircraft at a rate prescribed by CAB.

(xi) Route. Service between a specifically designated pair of terminal points, if any.

(2) Explanation and applicability of significant forms. (i) Forms used in the administration of the air taxi mail service program must be complete, accurate and legible. The Director, Logistics Division, will provide necessary guidance and assistance to insure proper preparation and timely submission of forms by air taxi operators and postal units that tender mail to air taxis.

(ii) Operators must comply with provisions of applicable forms. Signed forms imply full understanding by the operator and are binding as part of his agreement.

(iii) Significant forms used in establishing service, rate adjustments and for certification and payment of service include:

Form 2750, Request to Air Taxi Operators for Proposals to Transport Mail. Form 2750 is used to solicit proposals for transportation of mail by air taxi operators.

Form 2751, Proposal for Transportation of Mail by Air Taxi Operator and supplemental Forms 2751-1, Air Taxi Mail Service Proposal-Aircraft Description; 2751-2, Aircraft Modifications; 2751-3, Route Operational Profile; and 2751-B, Estimated Air Taxi Service Costs, prepared and submitted by operators interested in providing route service. Extreme care must be exercised in the preparation of these documents as they provide the basis for selection of an operator.

Form 2751-C, Rate Adjustment Request. Prepared and submitted by operators to document and substantiate requests for rate adjustment.

Form 2752, Air Taxi Mail Service Action. Published by the Department subsequent to issuance of Notice of Intent and Final Mail

Rate. It provides authority to implement service, pay operator and specifies appropriate certifying post office.

Form 2755, Air Taxi Mail Service Performed. Form 2755 provides a record of service performed by the operator. The pilot completes form and turns it into the terminal postal unit at the end of each scheduled trip.

Form 2756, Certification of Air Taxi Mail Service Performed. Form 2756 is basis for payment to operator. It is prepared and submitted each week by the designated certifying postmaster.

Scope.

(b) General provisions-(1) Policies and procedures outlined in this chapter govern the establishment and operation of the Post Office Department Air Taxi Mail Service Program. It is the responsibility of each region to insure compliance with the provisions of this directive by operators under their jurisdiction.

(2) Authority. Part 298 of the Economic Regulations of the Civil Aeronautics Board (Part 298, Title 14, CFR) describes the means by which air taxi mail service may be authorized.

(3) Notice of intent. (i) When the Postmaster General determines that air taxi mail service is required, the Department will file a Notice of Intent to use air taxi service with Civil Aeronautics Board. Such service will be instituted only on notification by the Department to the air taxi operator involved that such Notice of Intent and Final Mail Rate has become effective.

(ii) An approved Notice of Intent and CAB exemption for service over an air taxi mail route pertains only to the operator named in the Notice of Intent. Exemption authority cannot be leased, delegated or transferred to another operator without POD and CAB approval.

(iii) An effective Notice of Intent authorizes the transportation of mail only and does not include authority to transport persons and/or property under the exemption.

(4) Duration of proposals. Proposals shall continue in effect until such time the Department or the operator provide 30-day notice to terminate service. However, the Department may terminate an operator for cause without notice.

(5) Emergency service. (i) When temporary air taxi mail service is authorized by the Department, proposals may be solicited by the Director, Logistics Division, without formal advertisements. The lowest proposal must be accepted unless there is reason for rejecting it.

Emergency service will not start until a contract is completely executed.

(ii) Emergency service will normally not exceed 90 days. Continuation of service beyond 90 days must be approved by the Department.

(iii) Emergency service may be terminated on 24-hour advance notice by either party.

(iv) Operator equipment and personnel used to perform emergency service must meet all requirements for regular air taxi mail service.

§ 535.2 Obtaining, starting and terminating air taxi mail service.

(a) Obtaining proposals-(1) Notifying operators. When the Department has determined that a need for air taxi mail service exists, every reasonable effort will be made to notify all operators in the general area where service is sought, and any other known interested operators, of the requirements for such service.

(2) Obtaining information. Persons interested in providing air taxi mail service should communicate with the Regional Director of the postal region in which consideration is desired.

(3) Submitting proposals. (i) Each proposal with supporting information must be sent in a sealed envelope as outlined on Form 2750, Request to Air Taxi Operators for Proposals to Transport Mail.

(ii) Proposals must be mailed in time to reach appropriate regional office within the time limit specified on Form 2750. Proposals received after the time limit specified on Form 2750 will not be considered unless it is determined that their failure to arrive on time was due solely by delay in the mail for which the operator was not responsible.

(4) Processing proposals. Proposals for air taxi mail service will be processed in accordance with procedures outlined in Regional Instructions.

(b) Starting service. (1) Air taxi service is authorized only on notice by the Department that Notice of Intent and final mail rate has become effective (except when emergency service is authorized). Service is normally programed to begin within 20 days following final approval.

(2) The operator must, well in advance of proposed inauguration date, make necessary arrangements with the Postmaster and the airport manager of each air

port to be used, concerning parking areas, landing fees, and other services.

(3) Regions must promptly notify the Department when service is started.

(4) Trip numbers will be assigned by the Director, Air Branch, Traffic Management Division, Bureau of Operations.

(c) Schedule changes and adjustments. (1) Trip schedules will be operated as directed by Form 2752.

(2) After the Notice of Intent is filed, no change will be permitted in any air taxi operation or schedule without prior written approval of the Bureau of Operations.

(d) Combining Routes. Routes shown on Form 2752 will not be combined for the convenience of an operator without prior Departmental approval.

(e) Terminating service-(1) Normal termination. Air taxi mail service may be terminated on the 30th day after the operator has received a notice of termination from the Department. An operator also must not cease providing air taxi mail service until the 30th day after such operator has notified the Regional Director to whom the original service proposal was tendered. Cessation of service by an operator during the course of the 30-day period of notice may warrant the imposition of a pecuniary penalty. In addition, operator may be declared ineligible for future mail routes.

(2) Termination for violation. (i) An operator will be terminated immediately if his operating certificate is revoked by the FAA.

(ii) Operators are subject to immediate termination if they fail to comply with the requirements of this part, or Form 2750, Request to Air Taxi Operator for Proposal to Transport Mail.

(iii) Notice provisions of subparagraph (1) of this paragraph shall not apply if termination is under conditions described in subdivisions (i) and (ii) of this subparagraph.

(iv) The Director, Logistics Division, will submit recommendations to the Department for discontinuance of operators who do not provide adequate aircraft and/or qualified pilots or fail to comply with prescribed FAA and POD safety requirements.

§ 535.3 Operator qualifications and requirements.

(a) General (1) Eligibility. To be eligible to perform air taxi mail service, operators must have a valid ATCO certificate and appropriate operations speci