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(iii) Maintaining and submitting air taxi operational reports as directed by regions.

(iv) Proper receipt and dispatch of mail to air taxis.

(v) Promptly notifying downline postal units of air taxi cancellations and delays.

(b) Ground handling services. The handling of mail to and from the aircraft may be performed by postal personnel or mail messenger service, whichever is determined to be more economical.

(c) Dispatch of mail. (1) (1) Air taxi mail service schedules are established with many close connections. Consequently, postmasters must insure that mail is dispatched in ample time so that it will be loaded for on-time departure of the air taxi. Sufficient time must be given the pilot to complete weight and balance checks and other safety requirements before scheduled takeoff.

(ii) Pouches will be separated by destination prior to delivery to the air taxi and pilot will be furnished total weight of mail for each off-load destination.

(iii) Due to the critical requirements for loading small aircraft properly, it is essential that all dispatches be accurately weighed and correctly recorded on pouch labels and dispatch records.

(2) Routing and priority of mail: (i) Mail will be dispatched to air taxis in accordance with the following priority: (a) Airmail.

(b) First-class mail.

(c) Other classes (when specifically authorized by the Department).

(ii) When an overload condition occurs, priority in loading FCM must be given to that mail which will normally receive overnight delivery.

(iii) Mail cannot be routed for interline transfer to or from an air taxi route unless both air carriers are authorized to transport mail at the multielement or pound rate of pay.

(iv) Mail due connection to or from an air taxi mail route not authorized to transport mail under multielement or pound rate of pay must be routed to the postal facility at the transfer point for processing.

(3) Air taxi mail dispatch document: Form 2764, Dispatch Record Air Taxi Mail Service, will be used to document mail dispatched on air taxis except when an air taxi operator transports mail on a pound or multielement rate. Form 2764 consists of eight pre-carboned sheets and is used for a specific trip from Saturday through Friday of each week.

The postal unit at the airport facility tendering mail to air taxis initiates the form and records daily volume of mail dispatched. A copy is given to the air taxi pilot each day the trip operates. At the end of the week, the mail volume totals will be tabulated and the second copy of the form is forwarded to the Dallas Postal Data Center. The original copy is retained by the dispatching postal unit for 2 years.

(4) Pound and multielement rate dispatch record:

(i) Pound rate route. Prepare Form 2729, Weekly Summary of Airmail Dispatched, when an air taxi transports mail for a pound rate. Separate entries will be made for airmail and FCM. Send completed forms to the Dallas Postal Data Center.

(ii) Multielement rate route. Mail for air taxi mail routes authorized to be paid at the multielement rate will be documented on Forms 2729 and 2713, Dispatch Record of First-class Mail by Air, in the manner prescribed for certificated air carriers. Completed forms will be sent to the Dallas Postal Data Center.

(d) Ground safety.-(1) Safety precautions. (i) The 14 safety rules set forth in chapter IV, paragraph H, POD Supervisors' Safety Handbook, Personnel Series 13, apply to all drivers and postal motor vehicles operating on airfields used by air taxi mail service aircraft. Deviations authorized by local postmasters must be in writing and made available to operators and airport managers.

(ii) Postal personnel and vehicles shall not approach aircraft until the aircraft and aircraft propellers have come to a complete stop.

(iii) Only drivers who have been especially trained and qualified shall be authorized to engage in the movement of postal vehicles on airfields.

(iv) Drivers of postal motor vehicles must not drive under any part of, or operate within 5 feet of parked aircraft.

(v) Drivers will normally approach the aircraft from the rear and turn upon approaching the wing before stopping. This will preclude backing the vehicle. If vehicle must be backed into a loading or unloading position, the pilot or employee of the operator will guide and direct the driver. When in position, the driver must:

(a) Put vehicle in neutral or park position.

(b) Set hand brake tight.
(c) SHUT ENGINE OFF.

(d) Chock planeside of truck if ramp pitches toward aircraft.

(e) Reports—(1) Mail handling irregularities. Form 2759, Report of Irregular Handling of Mail, will be used to report air taxi mail service irregularities. The appropriate airport mail facility, transfer office, or sectional center will prepare and process Form 2759 in accordance with § 533.7(a) of this chapter. A description and classification of reportable irregularities are outlined in § 533.7 (c) of this chapter.

(2) Operational

irregularity. Postal units at air taxi stop points will:

(i) Promptly report operating irregularities to appropriate regional office. Operational irregularities include flight cancellation, late arrivals, use of unauthorized aircraft, and equipment deficiencies when aircraft used cannot accommodate the volume of mail specified in the terms of the proposal.

(ii) Advise region when volume of mail available for air taxi exceeds specified capacity of aircraft.

(iii) Advise region promptly of any air taxi incidents or of any known or suspected safety violations.

(3) Reporting accidents. (i) Postal units will report promptly to designated regional officials all accidents involving aircraft carrying mail.

(ii) The contents of the report should adequately describe such details as date, time, place, trip number, aircraft type and number, weather conditions at the time of the accident, damages, injuries and classes of mail by weight, and condition of mail. A brief history of the flight and known or suspected cause factors should be included.

(iii) Mail in aircraft involved in accidents will not be disturbed except to prevent further damage until released by a representative of the National Transportation Safety Board or an FAA official. It must be guarded until the arrival of a postal official.

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that prompt reports are submitted to Director, Logistics Division, on the following irregularities which are normally preventable and within control of the operator.

(1) Mail refusal: Inability or refusal of operator to accept mail within the agreed allocation. When mail in excess of amount specified in Form 2752 is refused, it is not considered a "refusal" but will be reported as "mail theft".

(ii) Failure to protect mail. (Fire, damage, weather, or leaving mail unattended).

(iii) Failure to notify postal unit of irregular operation.

(iv) Failure to provide specified aircraft. (Except in emergencies when equipment substitution is made with prior regional approval).

(v) Others. Includes operator performance, incidents and conditions not conducive to a good air taxi mail service operation.

(2) Assessing penalties. Reported irregularities are investigated by the Director, Logistics Division, to determine whether an operator should be penalized. If a penalty is warranted, the Director will forward Form 2766, Advice and Recommendations for Fines-Airmail Irregularities, with a report of circumstances to the Bureau of Operations for review and possible assessment of a penalty against the operator.

(3) Failure to provide specified payload. A penalty will be assessed whenever an operator uses aircraft which does not provide weight capability for mail, as specified on Form 2750. This penalty will be imposed even though all mail tendered was carried.

(i) The following example shows how to compute penalty:

(a) If specified mail capacity requirement is: 2,000 pounds, and

(b) capacity of replacement aircraft is: 1,500 pounds,

(c) required weight capacity not available: 500 pounds, or 25 percent

(d) the normal authorized route payment per mile is 0.40 cents.

The amount of the penalty is based on the authorized rate (0.40 cents) per mile, less the percentage of capacity not made available (25 percent). Using these figures, the penalty would be 0.10 cents per mile.

(ii) The Director, Logistics Division, will compute penalty and forward particulars to Air Branch, Traffic Management Division, Bureau of Operations.

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(a) Validation of service performed. The pilot will complete Form 2755, Air Taxi Mail Service Performed, for each scheduled trip. He will record arrival and departure time for every air stop served. At the end of the trip copies 1 and 2 will be promptly turned into the terminal postal unit. Delay in submission of form could cause delay in payment due operator.

(1) If service is provided over a route from the headout terminal to an outer terminal and returns to the headout terminal using the same aircraft and pilot, both the outbound and inbound service will be reported on one Form 2755 as a round trip.

(2) If service is provided over a route from the headout terminal to an outer terminal by one aircraft and pilot and from the outer terminal to the headout terminal by a second aircraft and pilot, each pilot will report this portion of the service on Form 2755 as a one-way trip.

(b) Condition for payment. (1) Full payment will be allowed when:

(i) Service is performed in accordance with published schedule.

(ii) Operator begins a trip but terminates at an intermediate stop or an alternate point because of weather or other conditions beyond the pilot's control, except mechanical failures and accidents or incidents which prevent completion of trip.

(2) Mileage deductions. Mileage deductions will be made for trips, or portions of trips, canceled because of mechanical failure and complete trips canceled because of weather.

(3) Transmittal of Form 2756. (i) At the end of each week, the postmaster of the certifying postal unit will prepare Form 2756, Certification of Air Taxi Mail Service Performed, and submit it to the Dallas Postal Data Center. Form will be dispatched in a separate envelope endorsed "Form 2756" in the lower left

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their service was established, they may petition the POD for a rate adjustment on Form 2751-C, Rate Adjustment Request. Necessary forms may be obtained from the Director, Logistics Division, of the postal region responsible for administering the route involved.

(1) Types of adjustment. (i) Adjustment in the rate will be considered for costs which could not have been reasonably anticipated, such as the following:

(a) Increase in aircraft requirements to comply with new safety regulations of the POD or the FAA.

(b) Increase in requirements for capacity or speed.

(c) General increase within a State or regional area involving fuel costs, wages and salaries of pilots or maintenance personnel. (Operators are normally not eligible for rate adjustments in fuel, oil or wages until 1 year from filing of Notice of Intent.)

(d) Landing or ramp fees resulting from new policies or rate changes at airports served.

(ii) Adjustments will not be allowed for increased costs, such as the following: (a) Aircraft or equipment changes at the option of the operator.

(b) Aircraft or equipment changes required to meet FAA or postal regulations in effect at the time the rate was established by temporary contract or Notice of Intent to the Civil Aeronautics Board.

(c) Hanger costs which should have been anticipated as a normal service requirement.

(d) Landing and other airport service fees in effect on the date the proposed rate was submitted.

(e) Insurance cost increases unless resulting from an order by a state insurance board or other Government agency, or unless comparable increases are being assessed against all other ATCO operations in the area.

(2) Filing procedures. In adjustments which involve additional capital expenditures, the operator shall take the following steps:

(i) Document the amount of increase in capital expenditure.

(ii) For change of aircraft, he should determine the difference in capital expenditure involved between new aircraft of the type operated and new aircraft of the type required if new aircraft is actually procured. When new aircraft is not procured, the actual increase in costs will be established not to exceed the dif

ference in cost of new aircraft of the types involved.

(iii) For each new equipment component, he should document the actual purchase price, finance costs, plus the cost of installation. The cost of installation must not exceed the established manufacturer's standard installation

cost.

(iv) To determine the amortization base, deduct the residual or disposal value. Residual value for aircraft will be calculated at 15 percent of cost, as determined per subdivision (iii) above.

(v) Determine annual charge for amortization. For amortization purposes, the service life of components and aircraft is considered to be 7 years for Piston Aircraft, 10 years for Turbo Prop Aircraft, and 12 years for Jet-powered Aircraft. When used aircraft or components are involved, the amortization rate shall not exceed that for new equipment.

(vi) Submit completed forms and required documentation of added cost to appropriate Director, Logistics Division, for evaluation and processing.

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Sec. 541.1

541.2

541.3

541.

541.5

541.6

Transportation and protection of mail between post offices and ships. Certificate for ship letters and payment of shipmaster.

When fees on ship letters not allowed. Compensation for transportation of surface mail.

Rates for rail service across Isthmus of Panama.

Fines on steamship companies transporting mail beyond borders of United States.

AUTHORITY: The provisions of this Part 541 issued under R.S. 161, as amended, sec. 1, 62 Stat. 777, as amended, 784, as amended; 5 U.S.C. 301; 18 U.S.C. 1698-1699, 1724, 39 U.S.C. 501, 505, 6101, 6104, 6435, unless otherwise noted.

SOURCE: The provisions of this Part 541 appear at 26 F.R. 11637, Dec. 6, 1961, unless otherwise noted. Redesignated at 31 F.R. 15351, Dec. 8, 1966.

§ 541.1 Transportation and protection of mail between post offices and ships.

(a) Outgoing mail. Steamship companies are to provide for the transportation and protection of all outgoing mail, including parcel post and sacks contain

ing empty sacks, from the post office to the transporting vessel.

(b) Incoming mail. All incoming mail, including letter mail, parcel post and sacks containing empty sacks, is to be placed on the piers by the steamship companies. At that point delivery of the mail is made into the custody of agents of the postal service for trucking to the post office. The mail shall be placed on the piers and delivered to the agents of the postal service before the transporting vessel makes entry or breaks bulk, such action to be regarded as compliance with the law. Mail, including letter mail, parcel post and sacks containing empty sacks, waybilled for discharge at ports other than the first port of call of the vessel in the United States, shall be discharged at the first port of call if the vessel is scheduled to remain at said first port of call for more than 24 hours.

(c) Vehicles and carriers. Carriers are accountable and answerable in fines for failure to:

(1) Carry the mail in a safe and secure manner. The mail compartment of the completely closed van-type vehicle or trailer type container vehicle must be locked or sealed during transport from post office to pier. When open top trucks are used, the sacks shall be covered by a fireproof and rainproof tarpaulin which must be fastened securely to the body of the truck.

(2) Guard the pouches and other mail in their custody from theft or damage by water or any other source.

(d) Registered (red label) sacks. The registered sacks shall be specially protected during transfer between post offices and the transporting vessels and on board the vessels. The red label sacks

shall be separately delivered to the steamship company's representative at the post office in the case of outgoing mails. Incoming red label sacks shall be segregated from the other mails on the piers by the steamship companies.

[26 F.R. 11637, Dec. 6, 1961, as amended at 32 F.R. 11527, Aug. 10, 1967]

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(3) Place from which vessel last sailed.

(b) The postmaster shall pay to the master or owner of the ship or steamboat 2 cents for each letter delivered into his office which has not previously been mailed, except as provided in § 541.3. The postmaster shall obtain a receipt for such payment.

§ 541.3 When fees on ship letters not allowed.

Fees shall not be allowed for ship letters if they are:

(a) Addressed to a foreign country. (b) Delivered by any of the following: (1) A passenger or sailor, other than the master.

(2) The master of any vessel or any person on board any vessel which carries mail.

(3) Any carrier on any mail route.

(4) The master of a vessel who delivers to a postmaster letters which were carried over a post route.

Fees shall not be allowed for printed matter.

§ 541.4 Compensation for transportation of surface mail.

(a) Definite rates: Payment shall be made for the transportation of United States mail and foreign closed transit mail on steamships of the United States and foreign registry at the rates specified in the schedule below. The word "mail" includes parcel post. The rates cover all services performed by foreign flag vessels and all maritime service of U.S. flag vessels.

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In addition to the maritime transportstion rates shown in column (1) above, the Post Office Department will either pay steamships of United States registry directly for costs incurred by them or assume the responsibility for cartage from postal facility to pier.

(b) Special rates: This section shall not prevent a carrier from accepting maritime transportation rates lower than those shown in paragraph (a) of this section.

(c) The maritime transportation rates prescribed in paragraph (a) of this section while measured by the net weight of the mail, are intended in all cases to include payment for the weight of the covering mail bags. In the case of vessels of foreign registry, the maritime transportation rates prescribed in paragraph (a) of this section while measured by the net weight of the mail, also include compensation for the return of empty surface mail bags and the transportation from the postal facility to the pier. Acceptance by steamship companies of mail for transportation constitutes an acceptance of this method of computing payment.

(d) Any steamship company desiring to be relieved of the transportation of mail may make written application to the Assistant Postmaster General, Bureau of Transportation, Post Office Department, Washington, D.C. 20260.

(39 US.C. 6409) [27 FR. 9988, Oct. 11, 1962. Redesignated at 31 FR. 15350, Dec. 8, 1966]

§ 541.5

Rates for rail service across Isthmus of Panama.

Payment for the transportation by railroad across the Isthmus of Panama, for United States and foreign closed transit mail shall be $0.0525 per pound for letters and post cards and $0.007 per pound for other articles, including parcel post.

§ 541.6 Fines on steamship companies transporting mail beyond borders of United States.

Steamship companies are responsible to the United States for the safety of the mail intrusted to them, and accountable for any loss or damage resulting to any mail by reason of failure on the part of any of their officers, agents, or employees to exercise due care in the custody, handling, or transportation thereof. In case of delinquencies, fines may be imposed or deductions made from the company's pay.

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