(a) Delivery to air carriers—(1) Authorized location. Mail for outgoing trips shall be delivered to the air carrier at the time and place authorized by the director, transportation division.

(2) Dispatch lists required. (i) The postal unit delivering mail to air carriers shall prepare Form 2729, Airmail Dispatch and Billing Record, showing weights of mail for each destination and listing mail for off-line points of transfer.

(ii) On receipt of mail from the local postal unit, the air carrier will be responsible for verifying (a) the piece count of mail with those related entries on the dispatch list and (b) that all of the mail is destined for points on his system, or is coded for transfer at a point served by his company.

(iii) Mail received from mail messengers or vehicle service at airports without a mail facility must correspond with mail listed on Form 2729; or air carriers must make corrections. If pouches are listed but not received, cross out the individual listing, destination total, related trip destination total, originating load total, interline total when interline routings are involved, and document pound total. Insert correct adjacent totals. If mail is received but not listed, insert weight of each pouch in the proper destination column and amend totals as instructed. In either event, note facts prominently on Form 2729 in any blank space. Advise messenger of any discrepancy.

(iv) In the Intra-Alaskan Service, Form 2713-A, Alaskan Airmail Dispatch Record, is used instead of Form 2729. At non-post office points on Alaskan routes where it has not been possible to arrange for the preparation of Form 2713-A, the air carrier shall prepare Form 2713-A and make claim for the service in the usual manner.

(v) Air carriers must obtain a receipt on Form 2753-A, Mail Delivery Receipt, for mail delivered to airport mail facilities. Form 2753, Receipt to Airline, must be obtained by the air carriers for all mail delivered to postal units other than airport mail facilities. In the latter case, receipt must be prepared by the air carrier for signature of either the mail messenger or motor vehicle service driver.

(b) Direct transfer between planes— (1) Carrier responsibility. Carriers must make transfers according to service

ordered on Form 2729 by the dispatching postal unit and as shown on pouch labels. To facilitate transfers, carriers are responsible for concluding mutually agreeable local arrangements regarding the point of exchange between carriers. These local arrangements are subject to approval by the transportation division to assure that they are adequate for postal needs. In addition, carriers shall comply with the following:

(i) Arriving (Delivering) Carriers

(a) All transfers are based on normal operations and, under normal conditions, should be made as authorized.

(b) When the arriving carrier is late, he shall deliver the mail to the intended connection. If the intended trip is not made, the departing carrier should obtain new routing instructions from local postal personnel, prepare Form 2734, Airmail Exception Record, and deliver the mail to an alternate carrier, or to a postal representative, as instructed.

(ii) Departing (Receiving) Carriers (a) A departing carrier, due to receive transfer mail from an incoming carrier, shall inform his ramp personnel of any delays in scheduled departure so that scheduled transfers may be maintained when the minimum transfer time is available regardless of arrival time of the incoming trip.

(b) The receiving carrier must accept mail tendered by transfer for boarding on intended flight, when possible, or further disposition, unless the mail is not properly coded on pouch label. When an irregularity occurs and Form 2734 is presented with the mail by the delivering carrier, the receiving carrier must verify mail with related Form 2734.

(c) After acceptance of transferred mail, if the trip of the receiving carrier to which the mail was routed (1) is delayed more than 1 hour, (2) is canceled, or (3) for any other reason cannot provide the ordered service, the receiving carrier shall obtain new routing instructions from local postal personnel for transferring the mail as required with Form 2734.

(2) Failures to transfer. Postal personnel shall prepare Form 2759, Report of Irregular Handling of Airmail, to report failures to transfer mail to intended connections. Ali pertinent facts relating to actual arrival and departure times of

trips involved must be shown. If the prescribed connection time was available and responsibility for failure to connect the mail cannot be conclusively established, fines may be assessed against both carriers for failure to cooperate in providing proper service.

(c) Delivery to postal representative. Upon arrival of the plane at the stop point, air carrier representatives must immediately unload the mail and deliver it to the authorized postal representative at such point as may be designated. Maximum unloading time may be specified by the transportation division.

(d) Disposition of mail-canceled or irregular flights. (1) When a trip is to be canceled at the initial terminal or any point en route, the air carrier must promptly notify the local postal officials concerned. (Dispatch forms covering mail not enplaned must be voided if no mail is dispatched.)

(2) Disposition of mail will be in accordance with instructions of the local postal unit. If unable to obtain instructions, the air carrier will reroute the mail on the basis of the best available information. The air carrier must observe current procedures in preparing necessary forms to accomplish any rerouting and to provide for the accounting adjustments required.

(3) When necessary to transport mail to the local post office or railroad station, available regular scheduled trips of the mail messenger or vehicle service may be used. Air carriers will not be required to transport to the post office local destination mail received from trips operating off schedule. However, air carriers are responsible for transporting to the post office or railroad station, as directed, local origin mail being returned or through mail received from canceled trips, mail dispatched to the airport for a trip that overflies the local air stop, and mail dispatched to the airport for a trip that is to overfly a schedule downline air stop.

(e) Refusals and removals of mail. Refusals and removals of mail by air carrier (except as provided in § 531.3(b)) may result in diversion of the mail to another air carrier and in fines.

(f) Form 2734, air mail exception record. See § 533.4.

(a) Refusal or removal report. When an air carrier cannot accommodate all mail offered for a trip or when mail already on board is removed, the carrier must submit, within 5 days, Form 2760, Air Carrier's Reply-Refusal/Removal of Airmail, in duplicate, to the transportation division involved. The report must give the reason for the refusal or removal. It must contain detailed information on the mail refused, removed, and transported, and information relative to other cargo aboard the plane on departure.

(b) Irregularly handled mail report. Form 2734, Airmail Exception Record, properly completed and endorsed by the air carrier, must be used to record any mail not handled by the air carriers concerned in accordance with the routing as originally planned. An irregular handling is termed as an off-loading short of or beyond the scheduled destination, and the mail is forwarded via another air carrier or turned in to the post office for redispatch, removals en route, refusals after mail is accepted by the air carrier, and transfers to an air carrier other than as ordered in dispatch forms.

(c) Accident report. Air carriers must make an immediate telegraph or telephone report of any accident resulting in possible damage to or loss of mail. The report must be made to the transportation division, in the region concerned. Mail should not be disturbed, except to prevent further damage. It must be guarded until the arrival of a postal official.

§ 531.7 Submission of claims.

Air

(a) Domestic-(1) Forms used. carriers operating over domestic routes shall use the following forms, as required by the Bureau of Transportation and International Services: Form 2703, Carrier's Claim for Airmail Transportation; Form 2729, Airmail Dispatch and Billing Record, Form 2734, Airmail Exception Record; Form 2732, Monthly Summary of Airmail Carried; and Form 2747, Air Carrier Statement of Settlement of Air Transportation Charges. Samples of these forms may be obtained from the Air Transportation Branch, Bureau of Transportation and International Services.

ing designated division or postal data center:

Division or Center

(2) Preparation of bills. Separate Forms 2703 or bills shall be prepared for each postal accounting period, or for such lesser period as may be agreed to by an air carrier and the Air Transportation Branch, and must include all airmail transported during that period. Trunkline, local service, helicopter, Intra and States-Alaska, Intra and StatesHawaii, States-Puerto Rico and Intra Puerto Rico-Virgin Islands air carriers must prepare and support air transportation bills according to the minimum requirements established by the Bureau of Transportation and International Services.

(b) Designated postal data centers. (1) Domestic air carriers, other than as provided in subparagraphs (2) and (3) of this paragraph, will be paid for the carriage of domestic airmail by the postal data center serving the regions dispatching the airmail. The region number, regions served, and mailing addresses of the postal data centers are: Postal Data Center Transportation Claims Section Post Office Department at:

New York Postal Data Center. San Francisco Postal Data Center. Seattle Transportation Division (for administrative examination and forwarding to the San Francisco Postal Data center for issuing settlement check).

§ 531.8 Irregularities, deductions, and fines.

(a) Irregularities. Irregular handling of mail by airline carrier personnel shall be promptly reported on Form 2759, Report of Irregular Handling of Airmail, by the postal employee who observes the irregularity or who is informed of irregular performance through receipt at a postal unit of the post office accounting copies of Form 2734, Airmail Exception Record, prepared by the air carrier. See § 533.7. Listed below are the types of irregularities that will be reported.

(1) Damage to mail or equipment while in the custody of an air carrier. (2) Failure to load.

(3) Carried by. Any overcarries on interchange trips involving mail for the interchange point or connection mail due off at the interchange point will be charged to air carrier from whom received. If another air carrier was actually responsible for the mishandling, the air carrier receiving Form 2759 report may forward the form to the other carrier and notify the director, transportation division, concerned of the referral.

(4) Loaded in error. When making Form 2759 for loaded in error, the postal employee will, before distributing copies of the form, request verification of the classification from airline representative responsible for handling mail.

(5) Removed in error.

(6) Failure to transfer.

(7) Delayed delivery to postal unit. (8) Refusals and removals. See § 531.3(b) for regulations regarding airmail priority.

(9) Failure to notify postal authorities. See § 531.4. Includes instances when a carrier has failed significantly to cooperate by not giving notice of nonoperation of scheduled service or of late operation, resulting in additional motor vehicle or mail messenger costs.

(10) Repetitive infractions. Report infractions involving irregularities of a repetitive nature which appear to be controllable by proper air carrier management. These situations may require assessment of substantial fines to eliminate deficiencies in air carrier operations which repeatedly delay airmail in reaching the addressee.

(b) Deductions. Form 2734 provides for the adjustment of compensation for service ordered and paid for but not performed.

(c) Fines. Air carriers transporting mail must observe all applicable postal laws and all applicable regulations issued by the Post Office Department. Air carriers may be subject to fines and deductions for failure to comply therewith.

NOTE: When mail moving on equalization agreements (see § 533.1 (f)) is mishandled by either carrier of such agreement, the report of irregularity and penalty will be against the international air carrier with whom the settlement of air charges is made.

§ 531.9 Correspondence concerning air service.

(a) Local matters. Correspondence on local operation matters of mutual concern shall be handled directly between the local carrier and local air stop postal unit heads or field service representatives concerned. Matters coming within the scope of § 531.9 (b) shall be referred to the transportation division.

(b) Regional matters. Correspondence to and from air carriers relating to policy matters, airline schedules, operational matters, fining procedures, quarters, mileages and transport rates, irregularities and changes in dispatch billing procedures and forms, omissions and failures of carriers to perform required service, division of mail between carriers, service requirements, actions involving CAB orders and rulings, firstclass-mail-by-air, and other matters of regional nature shall be conducted by the transportation division within the scope

of regional delegations. Only those matters of these types that are of interregional impact or of departmental concern as specified elsewhere in regulations and those matters which the transportation division considers will require departmental decision shall be forwarded to the Department.

PART 532-AIR ROUTE SERVICE

Sec.

532.1 Description, authority, and general. 532.2 Contracts. 532.3

Protection of mail. 532.4 Reports and records.

AUTHORITY: The provisions of this Part 532 issued under 5 U.S.C. 301, 39 U.S.C. 501, 505.

SOURCE: The provisions of this Part 532 appear at 30 F.R. 10138, Aug. 14, 1965, unless otherwise noted. Redesignated at 31 F.R. 15351, Dec. 8, 1966.

§ 532.1 Description, authority and general.

(a) Description. Air star route service is established and operated under contracts awarded by the Postmaster General for air transportation in areas where such service is in the public interest, and the nature of the terrain is such that surface transportation is impractical or inadequate. This service may include any or all classes of mail.

(b) Authority. The Air Star Route Law (39 U.S. Code, sec. 6303) authorizes the Postmaster General to contract for this service after receiving proper certificate from the Civil Aeronautics Board.

(c) General. (1) Upon receipt of a request from the Department for the certification, the CAB is required to promptly publish in the FEDERAL REGISTER, and to send to such persons as the Board may by regulation determine, a notice describing the proposed air star route. The CAB shall afford interested persons a reasonable opportunity to submit written data, views, or arguments, with or without opportunity to present the same orally or in any manner.

(2) Contractors for service awarded under an air star route contract will be required to provide fully adequate and suitable aircraft for the carriage of the mail and to transport the whole of said mail, whatever may be its size, weight, or increase during the terms of the contract, with celerity, certainty, and security on each and every trip as required by the advertisement. Contractors may

be required to convey without extra charge (i) all post office blanks, mailbags, locks and keys and other postal supplies that may be offered to them, and (ii) postal inspectors and other agents and officials of the Department, on regular scheduled trips on which mail is handled and between the points specified in the official statement of the route, when the space or weight limits of the plane permits.

(3) The acceptance of a bid and the execution of a contract for the performance of air star route service does not authorize the contractor or carrier to engage in the transportation of persons or property, for compensation, between the points or over the route described in the contract without compliance with applicable Federal and State statutes and with applicable rules and regulations of the FAA and of the CAB.

(4) Bidders for proposed air star routes and their sureties will acquaint themselves with Federal laws relating to contracts for carrying the mail.

(5) All accepted bidders under an advertisement for air star routes will be required to execute contracts with sureties acceptable to the Department. A list of acceptable surety companies is shown in § 521.3(c) (2) of this chapter.

(6) Contracts must be executed and filed in the Department within 60 days from the date of acceptance of the bid, otherwise the accepted bidder may be considered as having failed. The Department reserves the right to (i) suspend the award of contract on any route for a period not exceeding 60 days from the date of the expiration of the advertisement and allow a corresponding extension of time for the execution of the contract, and (ii) to rescind the acceptance of a proposal at any time before the signing of the formal contract on behalf of the United States without allowing indemnity.

(7) Where there is rail service or good highway facilities, or a combination of both, generally an air star route could not be justified. However, prospective applicants for air star routes should communicate with the Regional Director, Post Office Department, of the postal region in which the proposed route is located. When the official approves the application and forwards an appropriate recommendation to the Bureau of Transportation and International Services, necessary certification by the CAB will be requested if approved by that Bureau.

(8) Air star route contractors, except in Alaska, will be required to comply with such economic regulations as may be prescribed from time to time by the CAB.

(9) Contracts will comply with all provisions of Executive Order No. 10925 of March 5, 1961, as amended, and of the rules, regulations, and relevant orders of the President's Committee on Equal Employment Opportunity.

§ 532.2 Contracts.

(a) Obtaining bids—(1) Advertisements. After obtaining a certification from the CAB that the proposed route does not conflict with the development of air transportation, an advertisement is issued by the Department inviting proposals for air transportation of mail between the points and on the terms stated. Copies of the advertisement are furnished to postmasters for posting at terminal offices.

(2) Requirements of bidders. Bidders must meet the following requirements:

(i) Eligibility. (a) No proposal for a contract for air star route service shall be considered unless the bidder is a resident of, or is qualified to do business as a common carrier by air, in a State within which one or more points to be served under the proposed contract are located. The term State as used here includes the several States, and the District of Columbia.

(b) Only bidders holding an appropriate operating certificate issued by the FAA will be considered for award of a contract for air star route service.

(c) For further eligibility requirements, see § 521.3 (c) (2) (i) of this chapter.

(ii) Bonds. See § 521.3(c) (2) (iii) of this chapter.

(3) Obtaining proposal forms. See § 521.3(c) (5) of this chapter.

(4) Submitting bids. See § 521.3(c) (6) of this chapter.

(b) Award of contract. See § 521.3 (d) of this chapter.

(c) Application of contract regulations. If there is no conflict, all laws and regulations governing surface star routes in general apply to contracts made under the air star route law.

(d) Payments. See § 521.3 (h) of this chapter.

(e) Cancellation of air star route contract. A contract shall be canceled by the Post Office Department upon the issuance by the CAB of an authorization