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, and of the rules, regulations, and relevant orders of the President's Committee on Equal Employment Opportunity.

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:

(1) 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) (b) (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 to any air carrier to engage in the transportation of mail by aricraft between any of the points named in the air star route contract.

(f) Revocation of FAA certificate. If a contractor for an air star route should have his operating certificate revoked, the air star route contract shall become null and void effective with the date of loss of such certificate, without payment of any indemnity.

533.6 Form 2753-A. Mail Delivery Receipt. 533.7 Form 2759, Report of Irregular Handling of Airmail.

533.8 Applicability of forms and procedures. 533.9 Airmail and first-class mail forms, titles and sources of supply. AUTHORITY: The provisions of this Part 533 issued under 5 U.S.C. 301, 39 U.S.C. 501.

SOURCE: The provisions of this Part 533 appear at 32 F.R. 10919, July 26, 1967, unless otherwise noted.

§ 533.1 Form 2729, Airmail Dispatch and Billing Record.

(a) Description. Form 2729 covers airmail dispatched to all domestic air carriers operating within and between the 50 United States, Puerto Rico, and the Virgin Islands, and to Canada. See § 533.3 (a) for exception. It is the basic document from which payments to the original and interline air carriers are computed. See § 533.9 for supply.

(b) Preparation. (See Exhibit in this paragraph)

(1) Who prepares. The form is prepared in four-part sets by the designated clerk at the airport mail facility or, at nonairport mail facility points, by the dispatching clerk at the post office.

(2) Heading form-(1) Origin code. Enter the official airline code of the airport from which the mail is due to be dispatched. When more than one postal unit prepares Form 2729 for dispatch through the same airport, refer to Official Airmail Index for airport codes to be used by each office.

(ii) Route number. Enter the route number of the air carrier to which the mail is dispatched.

(iii) Trip number. Enter the trip number of actual dispatch.

(iv) Scheduled trip date. Enter the scheduled date of origin of the trip.

(v) Today's date. Enter the date on which the trip of dispatch is scheduled to depart from the airport.

(vi) Scheduled departure time. Using 24-hour clock, enter time the trip of dispatch is scheduled to depart your airport.

(3) Recording dispatches-(i) Under destination. (a) Using the States dispatch scheme and other applicable pouching instructions, enter in code the final airline destination of the dispatches.

(b) Show each destination in station order of removal from the original trip of dispatch. Listing from left to right, use a separate block for each destination. When volume justifies, bulk list mail to common destinations.

(c) Enter, under the proper destination, mail labeled to that point, mail scheduled to continue from that point by surface transportation, and mail for another air carrier when the transfer is to be effected through the airport mail facility. Use individual actual weights indicated on the labels of pouches, sacks, and outside parcels unless permission has been granted to bulk weigh mail on platform scales direct to the air carrier, or where bulk entries are to be listed (for example, the recording on the form of a consolidated entry of an accumulation of pieces listed on preliminary work sheets). Where bulk weighing has been approved or where bulk entries are listed, it is necessary only that the "total" pieces and weight be entered in the space provided at the bottom of the respective destination column. Do not identify pouches, sacks, outside parcels, or register as such on this form.

(ii) On-line. Use only sections 1 and 3 of the form when making the following dispatches:

(a) Stations served by trip of dispatch. Enter only the destination.

(b) Stations served by the air carrier of dispatch but not by the trip of dispatch. Enter the destination and the first transfer point.

(iii) Interline and interchange. Interline dispatches will be entered in sections 1 and 2 of the form for the following dispatches:

(a) In Section 1. (1) Routing involving connection to a trip of another air carrier. Enter the destination and the interline transfer point, plus the route and trip numbers of the second air carrier. This applies also to interchange trips.

(2) Routing via two trips of initial air carrier, plus trip of another air carrier. Enter the destination, the first intraline transfer point, and the interline transfer point, plus the route and trip numbers of the second air carrier.

(3) Routing involving two interline transfers after air carrier of initial dispatch. Enter the destination and the interline transfer point, plus the route and trip number of the second air carrier.

(b) In Section 2—(1) Routing. Enter the route and flight number of the air carrier to which the mail is to be transferred.

(2) Tr. pt. Enter the code of the airport at which the interline connection is to be made.

(3) Carrier dest. Enter off-loading point, either for delivery to post office or for transfer to another carrier.

(4) I. Enter X to identify mail moving over an authorized interchange trip.

(5) Pieces and weight. Enter the mail by totals (obtained from sec. 1 of Form 2729) for each of the destinations involved.

(6) Interline total. Total pieces and weight columns.

(4) Completing the form. (i) Total the pieces and weights for each destination column.

(ii) Total the subtotals for all columns, and enter in the "total mail" space.

(iii) Recap all columns under the actual destinations served by the trip of dispatch. Enter each airport served, with the appropriate total, in section 3.

(iv) Total the "originating load" column, and verify against the previously entered "total mail." If more than one form has been used, the "originating load and total mail" entries must appear on the final form.

(v) At nonairport mail facility points, the post office employees preparing Form 2729 will not total the "dest.", "originating load," and "total mail" columns if the mail messenger or motor vehicle service driver picks up additional mail at the railroad station or other postal unit en route to the airport. On arrival at the airport, the mail must be weighed and proper entry must be made on Form 2729 by the messenger.

(vi) In the "mail ready" space, enter the time at which the mail and forms are ready for delivery to the air carrier at the airport. At nonairport mail facility points, this time must be entered by the mail messenger or vehicle service driver. The messenger or driver must obtain the

signature of the receiving air carrier representative at the time the mail is delivered.

(vii) If the volume of mail is too large to be listed on one Form 2729, use a new numbered form, line through but do not obliterate the printed number, and write in the serial number of the first form. Number the sets consecutively, identifying the last by adding X after the number.

(viii) Add the weights of "total mail" to "interline total" and enter "document pound" total in space provided. This total must be correct as it is used as a control total for processing punch cards for pay purposes.

(ix) Sign Form 2729 in space provided for POD representative's signature.

(5) Corrections to Form 2729. Make corrections to Form 2729 before separating and distributing the four parts of the form. Postal or air carrier personnel shall not make corrections on any part of Form 2729 after it has been separated and distributed.

(c) Distribution of copies. After obtaining the air carrier representative's signature on Form 2729, separate copies and distribute as follows:

(1) P.O. Accounting Copy 1. Arrange forms in ascending serial number order (smallest number on top) and send to designated postal data center daily. Include second and third copies of all forms that have been voided, mutilated, etc. Since these forms are serially numbered, they must be accounted for. At nonairport mail facility points, the first three copies of Form 2729 must accompany the mail. After obtaining carrier's signature, the mail messenger or vehicle service driver must return copy 1 to the post office.

(2) Carrier Billing Copy 2 and Carrier Station Copy 3. To local air carrier representative.

(3) P.O. Station Copy 4. To dispatching postal unit file.

(d) Departure time. Postal units shall spot check actual departure time against "Mail Ready" time on Form 2729 to assure that unreported delays are not occurring.

(e) Interchange trips. (1) Mail moving over more than one airmail route on one aircraft must be properly identified in section 2 of Form 2729. No terminal charge is due at the interchange point, as mail remains on board the aircraft. To enable post office accounting personnel to properly identify this mail,

When preliminary work sheets are used to accumulate pieces and weights, the bulk entry may be omitted and entered only in the total boxes at the bottom of the respective destination column.

dispatching postal clerks must insert an A in the I column of section 2, Form 2729, for the air carrier who is not due to receive a terminal charge.

(2) Identify interchange trips on the States dispatch schemes with an "INT" shown between the transfer point and the interchange route number.

(f) Equalizations authorized. (1) CAB Order No. E-21514, November 19, 1964, authorizes carriers engaging in interstate transportation and carriers performing foreign transportation to equalize rates for mail between an international exchange office and any foreign point to which such exchange office is authorized to dispatch mail. Mail transported under an equalization agreement shall be recorded on Form 2942, AV-7 Delivery List, for both the interstate and foreign segments of the carriage. It will not be considered in the division of mail for interstate carriers. Settlement of air transportation charges will be made to the carrier performing the foreign segment of the haul. That carrier will then pay the interstate carrier. When irregularities occur involving dispatches exchanged with other countries, give special attention to the preparation of Form 2759. Since the mail from a domestic carrier's trip may consist of (1) domestic destination airmail, (ii) airmail for foreign points not subject to equalization agreements or (iii) airmail for foreign points moving via equalized agreements, show separate entries on Form 2759 for (i) domestic mail, and (ii) foreign mail. Show "complete" routing of "all" foreign mail. This will enable the transportation division, by making a copy of Form 2759, to make a report of domestic mail to Air Transportation Branch and of foreign mail to International Services Division, Bureau of Transportation and International Serv

ices.

(2) American Airlines, Inc., and Pan American World Airways, Inc., have agreed to equalize rates to lowest charges in effect for airmail transported between Honolulu, on the one hand, and Boston, Chicago, Cleveland, Detroit, Hartford/ Springfield, New York/Newark, on the other. Apply the following procedures for airmail dispatched via this equalization agreement:

(i) Enter complete interline routing on the pouch label or POD Label 53.

(ii) Record pouches or outsides on Form 2729 as an on-line dispatch. Show

no interline routing in section No. 2, Form 2729.

(iii) Report irregularities on Form 2759 against the air carrier in possession of the mail when irregularity occurred.

(iv) The appropriate postal data center will pay entire transportation charges, from origin to ultimate destination, to the originating carrier. The originating carrier will pay connecting carrier for the interline service.

(g) Labeling pouches, sacks, and outsides. Pouches, sacks, and outside parcels listed on Form 2729 must be identified so that airline and postal personnel handling the mail en route can provide the transportation ordered by the dispatching office. Before delivering the mail to the air carrier, prepare the labels of pouches and sacks to indicate final airline destination and the route over which it is to travel. Attach Label 53, Airmail Parcel Routing Sticker, for each air parcel dispatched outside. The information on pouch and sack labels and Label 53 for outside parcels must coincide with the corresponding entries on Form 2729 as follows:

(1) For mail billed to the final destination over the routes of two or more air carriers, enter on pouch or sack label in airline code the interline transfer points and the route and trip numbers of the connecting air carrier at these points. Show this information in the left center of the label between the destination and from lines. Enter the same information in the "Transfer point" and "connection" blocks on Label 53 for outside parcels. Example: Mail from Toledo to AMF Houston Tex via AM 88 for transfer to AM 1 at Detroit and AM 5 at Atlanta will be labeled as follows: