CT-1/88
THE COMPETITION TRIBUNAL IN THE MATTER OF an application by the Director of Investigation and Research under Section 64(1) of the Competition Act R.S.C. 1970, c. C-23 as amended; AND IN THE MATTER OF a Limited Partnership fo.rmed to combine the operations of the Reservec and Pegasus computer reservation systems; AND IN THE MATTER OF The Gemini Group Automated Distribution Systems Inc. B E T W E E N: r...,,~,..,.,,,. .. ,..,,,, "'")•.,,,,,_ .... e D of Investigation and Research \! .. ·;;~~1 r';~;; · W .•." ·. ~ ~ ·.·\..~-. .:~h. ·-rr i , o . . • . ~ ... · ., · .. • ,. . .., • J ~ . , ... . Dt U... \ c;;r-· · " • (' " ' " R ''· ~ i . : . ,:iu·. .,.i.r.r : P 111a R 0 Applicant i) ~ ;.. ~ ~ 19 1989 4{1,(j '1 - and o r 1--cm;:~:,R ;N;~~r~~p~ff]- Air canada Air Canada Services Inc. PWA Corporation Canadian Airlines International Ltd. Pacific Western Airlines Ltd. Canadian Pacific Air Lines, Limited 154793 Canada Ltd. 153333 canada Limited Partnership The Gemini Group Automated Distribution Systems Inc. ,,-/ COPD~-:<~TION TRIBUNAL ·""· Respondents ' TRIBUNh. L)i: LA GONCURRENCE t:. - and -File N,, .¢- T::._ __t ' f / i Consumers' Association of Canada ~ :M~Ji3·· ,_. _/);w__~. Am::rid~ai°r ~n~~°aesinicn.c. ·• Attorney General of Manitoba Ext•::·:" ..! !________ Alliance of canadian Travel Associations Ne · ·:·°d;.{" /1111 /f9 Bios. Computing Co~pc;>ration Fil . ..:.. .. --F-7-r ~ Air Atonabee Limited ~:'.:: ,.r ., ) tnµ;/ Intervenors GreH:er ~-l AGREED STATEMENT OF FACTS
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1. The Applicant and Respondents hereby agree for the purpose of this consent Application that the facts contained in this Agreed Statement of Facts are true, as of the date this Agreed Statement of Facts was executed.
(A) The Merger 2. Air Canada ("AC") is a Corporation continued under the Canada Business Corporations Act pursuant to the Air Canada Public Participation Act, 35-36-37 Elizabeth II, c. 44.
3. AC is one of the largest Canadian air carriers in Canada and serves a network of domestic, transborder and international routes. Prior to June 1, 1987, AC operated a computer reservations system ("CRS") under the trade name Reservec II ("Reservec"). As of May 1, 1987, AC transferred certain assets of Reservec to a wholly owned subsidiary Air Canada Services Inc. (now 160092 Canada Inc.) in exchange for shares of Air Canada Services Inc.
4. PWA Corporation ("PWAC") is a company incorporated under the laws of Alberta on February 22, 1956 and continued under the Business Corporations Act, S.A. 1981, c. B-15, as amended, on January 27, 1983. PWAC is the sole owner of Canadian Airlines International Ltd. ("CON") which is the successor to the former Pacific Western Airlines Ltd. ("PWAL") and Canadian Pacific Air Lines, Limited ("CPAL"} by virtue of
3.
an amalgamation effective January 1, 1988. CON is one of the largest Canadian air carriers in Canada and serves a network of domestic, transborder and international routes. Prior to June 1, 1987, CPAL owned and operated a CRS called Pegasus 2000 ("Pegasus"). As of May 31, 1987, certain assets of Pegasus were transferred from CPAL to 154793 Canada Ltd. ("154793") in return for shares of 154793.
5. As of June 1, 1987, AC and PWAC merged Reservec and Pegasus to form a single CRS known as Gemini. AC and PWAC initially formed 153333 Canada Limited Partnership (now The Gemini Group Limited Partnership), ("Limited Partnership") and transferred the shares of Air Canada Services Inc. and 154793 and the assets of Reservec and Pegasus, not previously transferred to Air Canada Services Inc. and 154793 to the Limited Partnership. 153333 Canada Inc. (now The Gemini Group Automated Distribution Systems Inc.), ("the General Partner") was appointed to manage the business and affairs of the Limited Partnership. AC and PWAC each own 50% of both the Limited Partnership and the General Partner (collectively "Gemini").
6. Gemini is headquartered in Toronto where its system development activities are based. The computer mainframes are located in Winnipeg. Gemini employs 638 individuals throughout Canada.
4. (B) The Airline Industry 7. Prior to 1984 the Canadian airline industry was the subject of significant economic regulation and federal government policy.
8. From 1937, when AC was incorporated, to 1959, federal government policy provided for one national air carrier. Commencing in 1959, federal government policy recognized CPAL as a national carrier, but with limited operating authority. The Regional Air Carrier Policy of 1966 provided for five regional carriers in specified areas and in the north; Pacific Western Airlines in B.C. and Alberta, Transair on the Prairies, Nordair in Central Canada, Quebec Air in Quebec and Eastern Provincial Airways in the Maritimes.
9. Entry into the airline industry and fares charged by airlines were subject to government policy limiting the roles of CPAL and the regional carriers and extensive regulation by the Canadian Transport Commission, predecessor of the National Transportation Agency.
10. In May 1984, federal government policy was revised to remove the role distinctions between national and regional carriers. Restrictions on operating authorities of CPAL and the regional carriers were eliminated. Between 1984 and 1987 entry and fare regulation was relaxed and with the enactment of
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the National Transportation Act, 1987, the industry was largely deregulated in southern Canada (in the north entry and fares continued to be the subject of regulation).
11. Commencing in 1984, CPAL expanded its national presence by acquiring Eastern Provincial Airways and Nordair. In December 1986, PWAC acquired CPAL and formed CON. In March 1989, PWAC made an offer to acquire Wardair Inc., the parent of Wardair Canada Inc. which had entered the scheduled domestic passenger airline industry in 1985.
12. In 1987, AC represented 52.7 percent, CON 40.7 percent and Wardair 6.6 percent of the domestic revenue passenger miles flown by those three carriers.
13. Since 1983, AC and CON (or one of its predecessors) have established a network of affiliated airlines which provide local service and connecting services to and from points served by one of the national carriers. AC's "alliance carriers" are Air B.C., Northwest Territorial Airways, Air Ontario, Air Alliance and Air Nova. CDN's "commuter partner" affiliates are Time Air, Calm Air, Ontario Express, Inter-Canadien and Air Atlantic. All affiliates use the "AC" and "CP" designator codes, respectively.
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14. Transborder and international commercial air services are the subject of bilateral air service agreements between Canada and other countries. These agreements provide, inter alia, for countries to designate the airlines to serve specific routes.
15. On all significant transborder and international routes, AC and CON compete for traffic with carriers of other countries. Canadian carriers have less than 50 per cent of transborder and international passenger markets.
16. Major United States carriers are present at all significant Canadian centres. American Airlines serves Toronto, Montreal and Vancouver and has the greatest presence in Canada of all United States carriers.
(C) 0 The CRS Industry (i) Description 17. CRS vendors distribute information on schedules, fares, rules and seat availability to subscribers (usually travel agents) for the airlines which are hosted on or participate in the system. This is done electronically through a cathode ray tube terminal ("CRT terminal") that is usually located on the travel agent's premises. The CRT terminal displays the information requested and travel agents can book seats on the flights requested by their customers and issue travel documents to them.
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18. CRS vendors distribute information on hotels, car rentals, tours, theatre tickets etc., to travel agents who are able to book these services through the CRS.
19. Travel agencies are the primary means for airlines to distribute their product to the travelling public. Approximately 70\ of the airline tickets for scheduled services provided in Canada are sold through travel agencies and approximately 97\ of these tickets are sold through travel agencies equipped with a CRS to make airline reservations and print tickets. The other 30% of the tickets sold in Canada are sold by the airlines directly to the travelling public.
20. CRS vendors enter into a contract with travel agents to supply them with CRS service including CRT terminals, related equipment, telecommunication lines and computer access. Travel agents pay subscriber fees for these services subject to the terms of the contracts.
21. Travel agents earn commissions from the airlines for each ticket sold on the airline and from hotels, car rental agencies and tour operators for the services they sell.
22. There is also a contractual relationship between the CRS vendors and participating airlines. In order to distribute their airline services effectively through travel agents,
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airlines will participate in all CRS's that have a commercially significant number of travel agent subscribers. To make its CRS attractive to travel agents, a CRS vendor desires to attract participating airlines, hotels, car rental agencies etc. of relevance to the travel agents.
23. CRS vendors charge participating carriers booking fees for each flight segment booked on the CRS. A flight segment represents travel on one direct flight which may have intermediate stops but involves no connections.
24. An airline can be represented in a CRS, either as a "hosted carrier" or a "participating carrier". If it is hosted, it stores its complete airline inventory in the CRS. In this case, the CRS provides the carrier with both an internal reservation and a management system to manage its inventory and an external reservation system to distribute its product to travel agents and, ultimately, consumers. An airline can only host on one system. AC and CON and their affiliates are now hosted with Gemini on Reservec and Pegasus respectively.
25. If the airline is a "participating carrier", the CRS provides the carrier with an external reservation system to distribute its product to travel agents, but does not provide that carrier with its internal reservation and management
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system. AC and CON and their respective affiliates who use common designator codes currently participate in Sabre, Apollo, Datas II, PARS and SystemOne. AC and CDN (and its predecessor CPAL) have participated without interruption in these CRS's since 1978 and 1984 respectively. AC and CDN's affiliates have participated in these CRS's since they began using the "AC" and "CP" designator codes.
26. The CRS lists the information on fares, schedules and seat availability which the carriers supply directly or which the CRS obtains from carrier supported central agencies such as Air Tariff Publishing Company ("ATP") and Official Airline Guide ("OAG"). ATP collects information on airline fares and OAG gathers information on airlines schedules. AC and CDN provide information regarding their schedules, fares and fare rules and that of their affiliates who utilize common designator codes to OAG and ATP.
27. Seat availability information is determined by the participating carrier. When the number of seats sold reaches a certain level, the internal reservation computer of the participating carrier will send a "closed for sale" message. If, for example, a flight has 100 seats for sale, a participating airline may close off further sale of seats through CRS systems in which it is not hosted at the 95th seat. This inventory buffer is required because the
10. communication messages that request a seat and confirm the reservation are ordinarily transmitted through a teletype switching system operated by Aeronautical Radio Inc. ("ARINC"). Delays in receipt of messages can be substantial and therefore an inventory buffer is required to prevent overselling a flight. If a carrier is hosted, no inventory buffer is required and its full inventory is normally displayed on the primary display.
28. The ability to make and confirm bookings on the last few seats of a flight (referred to as ''last seat availability") allows travel agents to provide better service, particularly to the business market which desires seats on heavily booked flights. In order to have last seat availability, the travel agent must use a CRS on which that airline is hosted or use another CRS that has an electronic direct access link to the airline's database.
29. Direct access links are basically of two types, "look-but-not-book" and "look and book". "Look-but-not-book" links allow the travel agent subscriber to switch from the integrated display of the CRS and look at the seat availability shown by the internal reservation system of the participating airline. For example, the travel agent may see zero seats or a closed for sale message on the integrated display but by going into the direct access mode, may discover that there are in fact 5
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seats available for sale. The agent then sends a teletype booking message from the CRS to the internal reservation system computer. It is standard practice in the United States that this booking message will have a special designator code that means that the participating airline will honour the reservation.
30. "Look and book" links have recently been developed to allow the CRS subscriber to look at the inventory of the participating airline and then instantaneously "book" and decrement the inventory. "Look and book" links provide participating carriers with CRS service comparable to that provided to the hosted carrier.
31. All of the CRS vendors in the United States have direct access "look-but-not-book" type links with the major U.S; carriers. Two CRS vendors (Pars and Apollo) have "look and book" links and two others (Sabre and System One) have indicated that they are under development. At the present time, only a few participating carriers in the United States are in fact using "look and book" links. There are presently no "look and book" links in operation in Canada. There are "look-but-not-book" links in place from AC to Pegasus, CON to Reservec, Wardair to Reservec and Wardair to Sabre.
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32. The standard booking fee charged in the United States is $1.85 (US) per segment booked. In Canada, Gemini charges its participating and hosted carriers $1.85 (US), except where lower booking fees are required in the case of a few participating carriers under pre-existing contracts.
33. In the United States, where direct access "look-but-not-book" links exist between an airline and a CRS, approximately 10 - 15% of the airline's bookings through that CRS are made utilizing the link and a premium of $.25 (US) is charged for such bookings. If such a link had existed between AC and Sabre and CON and Sabre during 1988, the incremental cost to AC and CON respectively (assuming 10% of their 1988 Sabre bookings were made over such a "look-but-not-book link") would have been approximately $61,000 (US) and $39,000 (US).
34. In the United States, where "look and book'' links (such as Apollo's "Inside Link" and Sabre's proposed "Air Link") exist between an airline and a CRS, all of that airline's bookings for that CRS are made through the link and a premium of $.25 (US) is charged for all such bookings. If such a link had existed between AC and CON and Sabre during 1988, the incremental cost to AC and CON on all of their 1988 bookings through Sabre would have been approximately $615,000 (US) and $389,000 (US) respectively. By contrast, if a "look and book" link had existed between American Airlines and Gemini
13. during 1988 and a $.25 (US) premium was charged, the incremental revenue to Gemini would have been approximately $88,000 (US).
35. The U.S. CRS systems permit travel agents to select seats and issue advance boarding passes on some carriers. In Canada, Reservec travel agents can prereserve seats on AC and Pegasus travel agents can do so on CON. At the present time, advance boarding passes on AC and CON are not available through any CRS including Gemini.
(ii) CRS Vendors/Joint Ventures - United States and International 36. There are 5 CRS vendors presently operating in the United States, all of which are owned, individually or jointly by air carriers, as set out below in Table 1:
Table 1 us CRS VENDORS CRS Owner Air Carrier Sabre American Airlines Inc. American Airlines Inc. Apollo Covia Corporation United Airlines, (now Covia Partnership) US Air, British Airways, KLM, SwissAir, Alitalia System One System One Inc. Continental Airlines, Eastern Airlines PARS Pars Travel J.nformation TWA, Northwest Systems Airlines DAT AS II Delta Airlines Inc. Delta Airlines TOTALS Source: Table 3.1, U.S. Department of Transport, Study of Airline Computer Reservation System, May 1988 1. Based on 1986 data.
Segments 1 Agency 1 CRTs 1 Booked Locations (OOO's) (000) 8,677 47.3 126,359 6,511 31. 4 100,613 4,271 16.8 32,159 3,189 12.3 30,985 2,045 7.9 15,462 ~~1R2~ ll~1:Z 305.618 ........
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37. On January 27, 1989, American Airlines and Delta Airlines announced their intention to merge Sabre and Datas II, at a cost to Delta Airlines of $650 million (U.S.) plus Datas II for a 50% interest in the consolidated CRS.
38. There are several CRS vendors presently operating in Europe owned by the national airlines of the European countries. Many of the European air carriers have now joined one of two consortia as set out in below in Table 2 in order to acquire the enhanced functionality offered by U.S. systems. (System One in the case of Amadeus and Apollo in the case of Galileo).
Table 2 CRS Air Carrier Amadeus Lufthansa, Iberia, Air France, Air Inter, SAS, JAT, Finnair, Braathens, Icelandair, Adria, UTA Galileo British Airways, Alitalia, SwissAir, Olympic Airways, KLM, Sabena, TAP, Aer Lingus, Austrian Airlines 39. One CRS has already been established in Asia/Pacific (Abacus) and another is under negotiation (Fantasia). Abacus currently is jointly owned by a consortia of carriers, Singapore International Airlines and Cathay Pacific.
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(iii) CRS Regula~ion 40. The U.S. experience has shown that CRS systems can be used by their airline owners to disadvantage airline competition through bias, discriminatory booking fees.and other means. In 1984, the CAB implemented the first code of conduct to deal with these problems. The current text of these rules is included as Appendix I. The U.S. Department of Transportation is responsible for enforcement of the CAB rules. These rules expire on December 31, 1990 and are presently under reconsideration as required by .the CAB ruling of 1984.
41. In 1985, the Trahan Commission examined the issue of CRS bias and concluded that there was no evidence of avoidable bias in the Canadian CRS systems.
42., In Europe, the European Civil Aviation Conference (ECAC) began work in mid-1987 to establish a code of conduct which has now been published. Thus far, the ECAC code is only a set of principles and has no force of law.
43. The European Commission has also published a draft CRS code (EEC) which, if adopted by the Council of Ministers, will be legally enforceable within the European Economic Community.
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44. In Canada, at present, there are no rules regulating the conduct of CRS operations. Transport Canada has indicated that it intends to recommend to the Minister of Transport that the Canadian CRS industry be regulated. A policy statement is being developed for consideration by the Minister.
(iv) Canadian CRS Market 45. There are 5 CRS vendors presently operating in Canada, namely, Gemini, Sabre, Apollo, PARS and System One. Currently, Apollo, PARS and System One have a very small presence in the Canadian market.
46. AC has operated an automated reservation system known as Reservec since 1962. Prior to 1973, Reservec was used solely by AC's ticket offices and reservation centres. In 1973, AC began to provide internal reservation services to other airlines (hosting) and in 1975, expanded this service to include travel agencies and became a "CRS" in the sense that it provided automated reservation services to travel agents. Reservec was the only CRS in Canada until Sabre entered the market in 1983, followed by Pegasus in 1984.
47. Sabre, the largest CRS operator in the world, entered the Canadian CRS market in 1983, offering enhanced functionality over Reservec and a more extensive hotel and car rental database. It successfully penetrated the high volume
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travel agencies located in the major urban metropolitan centres. It achieved the highest number of bookings per CRT location. In 1987, travel agencies with Sabre as their sole or primary CRS generated, on average, 2.5 times the average BSP airline revenues per location compared to travel agencies with another CRS.
48. Sabre has continued to increase its market share annually since it commenced operations in Canada. To date, Sabre has established a presence in eight of the ten provinces.
49. CPAL launched Pegasus 2000 in 1984 as an extension of its internal reservation system. Pegasus was less functional than Sabre and had a less extensive hotel and car rental database than either Reservec or Sabre. By early 1986, Pegasus had attracted only seven participating carriers.
SO. Pegasus's market penetration was generally limited to smaller travel agencies and markets where CPAL had significant airline presence. Of the CRS's operating in Canada, Pegasus had the lowest number of flight segments booked per travel agency location or CRT. From the outset, more CPAL flight segments were booked through Reservec than through Pegasus. In February 1986, Sabre surpassed Pegasus in CPAL bookings~
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51. In early 1986, CPAL determined that Pegasus was not satisfying its objectives and began to consider other alternatives.
52. In the national market, the historical market share positions of Sabre, Reservec and Pegasus, based on locations, terminals and segments booked are depicted in Tables 3A-C below.
Table 3A TRAVEL AGENT LOCATIONS (Canada)
1983 % 1984 % 1985 Reservec 2249 96.8 2702 87.9 2810 Pegasus 196 6.4 392 Gemini Sabre 75 3.2 175 5.7 250 2324 3073 3452
June % 1986 % 1987 % 1988 % 81.4 2885 74.3 2926 72.5 3089 70.0 11.4 669 17.2 720 17.8 776 17.6 3646 90.3 3865 87.6 7.2 331 8.5 390 9.7 546 12.4 3885 4036 4411 N 0
Table 38 NUMBER OF CRTs (Canada) 1983 % 1984 % 1985 Reservec 3008 95.3 3509 92.1 4315 Pegasus 300 7.9 600 Gemini Sabre 150 3.7 350 9.2 500 3185 3809 5415 * 1987 figure used as 1988 figure unavailable
June Mid % 1986 % 1987 % 1988 % 79.7 5115 75 6025 71 6557 66.7 11.1 951 14 1362 16 1362* 13.9 7387 87 7919 80.6 9.2 743 10.9 1100 13 1911 19.4 6809 8487 9830
Table 3C SEGMENTS BOOKED (ooo) (Canada)
1985 ' 1986 ' 1987 ' 1988 % Reservec 10301 71.6 13828 70.6 16429 68.8 Pegasus 1555 10.8 2183 11. 2 2621 11.0 Gemini 10051* 85.l 11855 82.4 16011 81.8 19050 79.8 Sabre 1756 14.9 2523 17.6 3567 18.2 4883 20.2 11807 14378 19578 23883 IV IV
* individual figures for Reservec and Pegasus unavailable
23.
S3. Appendix II contains a listing of 1988 CRS market shares in local Canadian markets again calculated on the basis of travel agent locations, CRTs and segments booked. Sabre currently provides competition to Gemini in 64 local markets, which markets accounted for approximately 7S percent of the total BSP revenues for all IATA travel agencies in Canada in 1987. [The market share data contained in Table 3 and Appendix II was prepared by the Director based on information provided by the Respondents and American Airlines Inc.]
S4. Gemini is presently not able to comply with certain of the proposed CRS Rules regarding display, loading and enhancements due to technological limitations that exist in the Reservec and Pegasus systems resulting from the design and structure of those systems. For example, the existing Reservec display algorithm tends to advantage the flights of hosted carriers in Reservec over those of participating carriers.
SS. It would not be possible to rectify these problems without an overall redesign, reprogramming and implementation of a new system. The same objective will be accomplished sooner by the implementation of the successor software referred to in paragraph S6 below. It is anticipated that such successor software will eliminate the limitations currerttly inherent in Reservec and Pegasus and enable Gemini to comply with the proposed CRS Rules.
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56. AC and PWAC entered into a Memorandum of Understanding dated March 15, 1989 with Covia Partnership which contemplates that Covia will become a one-third owner of Gemini, along with AC and PWAC. Gemini will work with Covia to develop software based upon that utilized by Apollo in the United States, customized to meet the needs of Gemini's Canadian customers. It is anticipated that conversion of Gemini travel agents to the new system, offering the enhanced Apollo functionality, will commence in mid 1990.
57. Gemini maintains security procedures to ensure that AC and CON cannot access each other's commercially sensitive information which is maintained in separate data bases. Clause 3.04 of the Computer Reservation Systems Contract dated May 28, 1987 and executed by AC, PWAC and Gemini provides:
To the extent reasonably and technically feasible, the Partnership shall keep confidential data and information relating to Air Canada, Canadian or other customers separate and unavailable to others. Further, with the acquisition by Covia of a one third interest in Gemini, Gemini personnel will be answerable to an outside party who has no interest in facilitating collusive behaviour between AC and CON.
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All of which has been agreed to this 19th day of April, 1989.
HOLDEN MURDOCH & FINLAY Per:~ 2J, C~for the Director o Investigation and Research BENNETT JONES
Per: ~c-+-._............,.--.....-_.,.~,.a.-,,,.....~~~...-~~
C nadian Airlines International Ltd., Air Canada Services Inc., 154793 Canada Ltd., 153333 Canada Limited Partnership and The Gemini Group Automated Distribution Systems Inc.
AIKINS, MACAULAY & THORVALDSON Per:~~· Coun~Air Canada, Air Canada Services Inc., 154793 Canada Ltd., 153333 Canada Limited Partnership, The Gemini Group Automated Distribution Systems. Inc.
INDEX TO APPENDICES TAB A Appendix I TAB B - K Appendix II
APPENDIX II - TAB B Notes to CRS Data and Market Share Tables TAB C BSP Sales by Canadian Travel Agencies TAB D Market Share Estimates by Vendors TAB E Census Metropolitan Areas TAB F Market Imformation Sabre-Dual and Sabre-Only Agencies
TAB G Market Shares for Each Province Based on Locations, CRTs and Segments
TAB H Basic Data Underlying Market Share Tables for Each City and CMA (Actual Reported Locations, CRTs and
Segments)
TAB I Market Share Tables for Each City and CMA, Reported by Province (Based on Locations)
TAB J Market Share Tables for Each City and CMA, Reported by Province (Based on CRTs)
TAB K Market Share Tables for Each City and CMA, Reported by Province (Based on Segments)
Market Share Data on Number and BSP Sales of
APPENDIX I ~ Aeronautics and -·~· • ~.~· - .... .;,&:. ~: ~'
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flll.1 'AIT tu CAll8-GWMD COMIUTllllSllVATIONIYlftMI lie. uu~. au AllltlleUW\J. 21U DtftalUOM. .... .,....., ol lnl...U.. .... C•UMU wt&b ~ tuTten. rulll or a~ &o a IUblerlW bf . . . . . . . . . C . o . n , U . 'M .. ll wt&b ............ 111.T ~mm11 ..a.,•_t. . ..L.. 211.t D1tJl.._ ·~ 211.10 .................. ... AnmuTr. .... lit. ... tM. tU. tll. 1111. ..... L. .., . ........ T1 Ila&. ,.,, T i a -. " . '· t•. m: 11 IW. lTU: • v.a.c. int. int. 1•1. 1•. 1-. ,. l .o..n.e.&.. ........, . . ....... . ......... ~ AUi. 11. Plw D•ll"IUID Mid OU& bJ Ult Clllft· tal T P b w • lt , . I . _ ca> of um Dart 11 co• .,._ ,__ for dllDlaJ of hi ftlltl& fonh ~for~" ......-. far-. or.-& awaDallWtJ, or a1r .,,... of -.ucer 1nc- Ulld " IUlllCrtbtn • II &o ,,..., UDfalr. dleeDC!Ye. pnda&orJ, and IDUc:GaapttlUYe pruUOll In air ~ Cb> JfOUUDI In open&• Ulla Dart penon tbt nemp& 1n1 from openUon of Ult anUU'UIC la• II& forc.b In IUbo lee&iOll ca> of Ult ftl'I& llCClon of Ult C'1a1Mm Mt u1 o.a.c. 12>. I llU A••MlltJ. TbJI rU1t UDIJtl &o air carrten and ~ or &o illut CicUtl for air foniln air curterl Ula& on. OODU'Ol or ..,..,. OlmlM&wtlld ~ .,.._ for IUlllCrtbtn In the On&CM ... and tbt Ille In . Ult Onl&lcl ML uw bet* ••II out II • neutral ICa&ll of laetrRate. •••1111. and for· I01lnt of mt-a&loa alloUL or ucuu .. ,... .... air~ for, &be air ~ tnduU7 Ulroup IUCla llllWI I llU .,.,. ..... "AtftJlale" -- ID1 ..... owned aurilr or hi alftUMe &o IUblcrtMn •· OODVOlled "·or \mdlr u =oa OODOOI wtua a ..ntr. "A~ -- lnlorma&lan prondlcl ID_.., wt\h ,.._ &o Ult ..u a out awallUlt aurilr ll01cll 11 for alt DD a P1111eUJar flilhL "Carrier" -- anr air .m e u r. 1 fOl"ltlD llr earrllr. Uld ur air CU'l'ttr, 11 ...... ID .. 0.8.C. 1301<1>. 41 0.8.C. 1111CU>. and H en 2'1.2U> • .......,.., uaac an•· rD·l•. ti PR Ula. AUi. 11. llM. 11 .... d1neUJ In Ult open&IOD of air· ID D1•1nnr cnlt air~
··-··. ··-n... and "cUlc:rtaUna&orr" mean. nlDIC· uwe1r. co cUlcl1mina&t U11JU1t11. UllJUlt dllcrtmlna&loa. and UllJUIUJ dilcr1mi· nacorr. "0..laJ" ..... Ult .,.... • ..,... IDIAUOn Of CU'l1tr ICbldul-. f&rtl, IDIUllofa-.ucerlel'IDlnal. "On-&llM ,.,. .•. . ............... ...... .. .. CU'l'itr &o &be ........ ID liCCOrdlDct wtua &be 111ot1111111 of 14 CPR Part aM Ula& nftelta &be ...U llJ OD•tlme Ptrf• '"" ...._., of a non«op tuallt or w ... or •UlU«op 111111• erlDaCllil. ..~.,....,.. ...... .,. rttr Ula& bml ID &ll'Hmtnt WIUl a for &bl ••ldnl of ~ or lllU· anee of ueuta CbroUlb a.,.__ "Prtman ...,. ..... ID1 clllPlar ....& Id bf a .,._ YIDdor &o comp&, With ....4 . &o ....... IDbv ...., ...... Ul)' produe& or lln'tet offend &o IUblcrtb-tn or ....-..rs ID ooaJulliC&lOD wt&h a .,.._ o&blr Ulan the....., of lnlor· mauaa • ICbedulll. ,.,.. rua-. and aftllUW&r. and Ult UW&r &o make U'UIPOft&tJoa. ........... ..,. ...... Uc*tt ..-nt. II cltt1Md ID 41 o.a.c. ll01<40> Of th• andUW.-a/111&1& ... ,.... ........ oomputa1181d air· UDt ~ .,... offend br a for ._ ID tbt Onlled 8t.a&el that con· ia&m lntonaa&lOD about acbedul• far-. Nlel .. aftilUellir of other.,. tltrl and Ula& proytdll IUblcrtbtn Wltb &be MIWtr &o IDAU ~ona • n1 and'° ... UCUta. ••. ,._ wt11llDr'' IDIUll a Cllnttr or ICI affUa&ll Ula& cnrna. controJI or op. ll'atlla/111&1& t -.1 · t · n · 1 . ., ......... u ... MO'n. .... 341
Office ef the lecret-r, DOT I 2SS.f .,....., el I.,_ U'" <a> All l1IMtml lbaU PfOYkll a prt. mary cUIDlaJ or prtmal'J dilDlan tba& Include tht 1ehtdul• f&nl. N1el and •'·&11Uottr of all CU'l1tn In ...,. &net With Ult provtltOnl of &JUI llC· uon. PrtmarJ dJlplan lba11 be a& leut u U1tful for sulDICrtben. In &enm of funetiom or lftibW•IMBU offend. and Ult ... With which IUCh tune· tiom or tnh&ncemtnU can be Ptr· formtcl or impJemen&ed. u lnJ other clllplaJI mainca&Dtcl .., tbt .,._ vendor. Cb> In ordtrtnl Ult lntorma&lan Im· t&iMd In a Pl1IDU7 dllPJ&r, .,._ vtndorl lhal1 not u. ..., flC&Ol'I di• rtetlJ or lndlncfJJ NJ.a&inl &o curter lcltnUtJ. c1 > ln&em ftDdon .., order tbt dilDl&J of lntonu&ton on tbt blllll ol anr lt"9Ce ertttrta tba& do not ren.ct c:arrttr lcleaU&J and tba& an CGDlllC· tnU, IOPUld to all CU'l1tn. lneludinl Ult .,.... Yfftdor. and to all ..neu. C2> .,... nndon lbaU "°"* to anr penon uoon NQu• Ult c:urnnt ertt.trta Ultd In ordtrtnl tucbtl for Ult prtmar)' dllplaJI and Ult wtilll& ltYtn to each ertt.tl10n. cc> 111t.tm vtnclOn lhal1 not u. lll1 flC\Orl dlrtctlJ or lndSrtcUJ Nl&Unl to carrttr idtnUtJ ln COftlU'UCtlnl Ult prtmal'J cUIDlaYI Of COftDee&lnl flilh&a. c1 > sncem vtndon .., ltltct Ult conntCt1nl IMHDCI to be Ultd In tilt conatrucuon of COftDICUoll tusllU for etM:h ctt1 p.ar on Ult ..., o1 au ..,.. &ct ertttrta tba& do DO& rea.ct CUl1tr ldtnUtJ and Ula& an &llPllltl CGDlllC• tDtlJ to all CIU'l't c e o n . a u m cludlnl tbt ,,... vendor. and marata. c2> a,._ Yflldan mu lllle&-. neo U un l a t . m .., a u ,_ IDCl1llllD c··Mn"> on of .ntll _.... tba& do not Nftect aantlr lllmClt1 ..... tba& an &DDUl U cl .,,. ...., to au aurt1n. lnclucllnl lt.,... ...... Cl> Int.em Yfllllan lbal1 91otldl to Ul1 penon upon ..... - c:urnn& lntor-ma&aan on: ct> AU OClllMCCin8 llOUlU Ultd for etM:h markt&; <U> AU ertt.trla Ulld to lllle& em· nectJnl point.I; CW> All crlt.trla ulld to "tdl&" em· DIC&iDI tusllU: and
..... IUCb tntormauon lhall be clllDlaJtd In an unbtlltd futaton and In Ul• _. Dl'iCel manner for Ill pu'tk:t"'1na CUTten that repon co Ul• DeDuUDent. '"''....... .., uw O e f o f n le u e o a o f n M w e u n• . p -un& and 9'ldllt llMlt IOM-OOfl: uw .......,_.., in .....,,..... <t> ... ••, .......... lf.1111 ......... ullllllr 11111-00d> tD-1•. 41 PR a-. Aut. 11. lllt. 11 •llMIM !tr D·l»I. ti PR tltll. Oe&. It. Dlftlet.._ CUTier, I& lbaU offer I& CO lllt: D·I- ti PR tttll. "°9. T. 1114: Ill ~ .,...._ • D·l-4IPR ..... lf.,.a111t:~ 211-4. II PR >Wra. ltllL t. l...,: Amdt. 211-1. II ft tlll'f. Dec. II. ltl'U ... ..... c....... ............... .,,.. ca> No ,,._ YtndOr lbaU dlmtml· na&e ._ ..,...&ans CUTlln In the f. . for~ In Ill QH or for .,._ rela&lcl mYtlll. DU lnl f. . co ~ CUTlln for the ... • • or • .oar llftll of _.,.. la&lnl CO 11.& .,.,.,. Ula& I& llleCI &o ,,, •d co ... lhall ... ~ Cb> No.,._ ftDdor lbaU CDDdlUOD ~UOD ID Ill.,...• tile PW· cbue or ... of Ul1 OCber _... or llnletl. CC) .,... YIDdon lball lll'Ot1di upon recau.i co curaen eurnn& lldor· mauoa on UMtr f" 1tftll and fM ar- l'UllllMDta wRh odaer ~ CUTie I n n . f-··- ........ -<Tht ~ ID ...,....... cc> ..'",.u iunpmrot•at"d ... la ••dlll bJ tbt Ottlet ol ......,.._, ........ WMler cae&NI .,_.., .......,., tD·l•. ff PR a-. AUi· 11. lllt. u amtncltd bJ D·l•l. ti PR tltll. Oe&. It. 1114) ••• c........ ..... a• • ,..., ca> No aubtert...., eenuut abal1 baft . ot ..... ..,.... ~ an a \IDlform a wm In ..-of ftft ,.,., .. C . b> . N . o.,._ 9mdor lbaU ~ reeatft ~ tram Ul1 euffer for or llldlnaUJ lllOblll6& a ... ..,...... #atn'DI f..- or ...... IU o&ber ..,._....a.r..t. m CC> No .,._ ftlMlar lbaU reQWre .. of hi ..... ltJ tile iulltcrt. .... in ,...., UDdll' W IU ... oflllUr~ten· co ., fontlD loll. Cd> No.,._ ftDdor lball NCIWn ..... ~.,...fWU'&ftl Ula& a tnftl .,_, u. 111 .,._ 11 a CCIDdlUoll fw tile ...... of Ul1 ... doll no& dll9lar the fUsllca of au ..... tor UM tale ot Ill a&r cram.or· t.auan aenic•
14 Cl'I Q. I (1.1 .. ...._) Ct> No l1l&llD ftDdor lbaU CbUl9 CO aulllerl-. oondlt.IODld In •bole or In Dir& on tile tdelleltr of ear· rlen Wbole ftJchll art told Q &be IUb-la'l. ..... In &be ....a& UW a .,._ vendor often a Mntoe lllhannmm\ co UJ nan-dll-Cl"llDIMCOrJ ..... ,_, ._.,. ... ..,. nr ca> WWa u. na11cloll of m&nltlnl• bDDtlnl. ....... dt&a reJa&anl CO the IDWllallaml ........ ot 1U cant· ..... .,_ ....... lbaU .... aftllallll co au o.a..~ cant· I I & •· m • a.Mllaff•tmt., ._ au WUlanl.1t1. .... IDd ... dUare...-a&e ,,_ ... .,..., cit>.,_ -.dan IDd ~ canlll'I lllall ........... ........ ltHtlDI, ....... da&a UleJ IWft&e or .....,_ NJa&IDI CO ln&ll'ltatlaeal OD-enu.. of Ul1 .............., aut.borl· l&&lln co do .. .., ..... .mar. . « . A ,. l , • •••• .., Ult om. ., ........_, and ..._ _., _.... aualler H2f· ca-1aat1n ..... • ... •.111t1 ca> Tbe oblfatloal of a l1l&elll "9dor 1mdtr 1111.t lbaU no& UOIJ wt&b Nl9le& &o a earner uw n"-co ID&er lnCO & Cllll&nc\ UlM OlmllUtl Wl&b um .-re or f&OI &o ., a non-dil-crtmllla*1 t• A.,._ Yenclor lb&ll ~ Ill ..... Gllllll'Dilll u.cment ...., co all IUeb eunen. IDd lball no& ...... a • dl " DU -l'IU -A& co a I c U o C n h · &nc& .....,_ wt&b WI pan. Cit> Tbe o1t1•11.. of a l1l&e1ll * I D9ft lbaU no& apply auner uw ODer&* or •llW alfWale apnt• an &&rune 119Dll ou&IMll &be Omc.ecl 8'atel C:bat Ollllad .... ,,..,. ecauallJ With Ult fUsllll of tile fOl'lllD CllllW. 341
· O ffi · c · e el .... I••••,, DOT ................ ... ca>Tb•Pedenl..-rlCbn•nll&ef. II cllflnld ID .. o.a.c. lMl<tt> of &bt 1.n1 UUI rule lllall caadue& a rntew Within I Jean after Ill efflCUft cla&e. ct1> uns.. niendld on uae 1111111 of for, tbe I.Ir~ 1D11U1U7 ID the NVtew IPIClll1ed above. UUI rule ....a. IDd &ba& Ml mllrld IDCO ID ah&ll &enDana&e on D1n.-11. lllO. ........, f• &be - of.. .... PAIT H• ...a.AY Of .IOINT Ofll· ATIONS .. CAllB-OWNID .,... co mlllllrlllll'I. f• - COMMll lllBVATIONI IYl- TIMI Ste. 211.1 ........ 211.2 .....' MU\f. nu Deftldu... 211.t ~ ol laf. ..t loll •1 A 1. ~ "* -.... IOI. .._ - fU, fll. un &.. ._,. • ...., ., " 1W. Tfl. TU. W. W, nt. m: II -. 1M11'mt to A1111mmtr CM W naa: N t . • t . 1 : • u.a.c. 1-. UM. ant. lMl. IJU. 1111. 1M11cs D•lftT. ft ft l_,,, Mar. •· . lN .. 4 . . . u n , a . . , .. . . . . . ..... .-.. Tht ,_... ot WI ll9ft II to 11t forua a ncauir'lmlllt for ....uan ltJ "' &bt ....... Ula& t.bl - air cul1en of eamsN&ef .....auon Ollll&l\u111 a rta11ta. o1 • o.a.c. I,.._ ulld tlJ U'aftl ..-11 • II to DNftllt unfair. sndatorr. IDd IDU· COIDl*lUYI Pnctiell ID air U'UlllPOl'ta- Uon. la! ........ ,. Thll rule lllltllll co air aurten or ...... ,.....co....,.....u.. fon . t . l . n r u ai e r e _ un . . . n , . &b . a& . . o wn. -trol. ..... or ~ .,_for traftl ...t ........... ID the Ullltied ..._ 11M1 t.bl ... ID Clle onac.1 .._ tt IM1H11. .. ••• 111, IDdf..._ . . . . . a , . ... -~ U0D Uuousb W l•r w· 1.u ··cuner- - .., fonllD air ........... U .. r , . . _ ... air .,,..,, • dlftDrd ID 41 U.8.C. lMl<a>. • o.a.c 1•1<11>. 1 IM.J<f> of WI ••, ._, ~ &ba& II -ar 41Hl&IJ la t.bl ...... a&llD of aara.rt ID 11111 llfllllf air trw- , PGNClml. .. ~ __ t.bl.,._. . ... l•I DIAi W fl •&a&lae of .,,.... ........... fu-. Niel or a~ to a ... ..._ ltJ 111•11lMillt n••lllDUN1J•ID IDIUlofoampuw~
..... "lulllcrtW'' .... uaat ..... Mt. tll&& boldr ltalU out 11 a MUVlol IOUl'OI of lnlonutlae &INN&.•~ ...,.... ...... _......,....I.Ir· Um ,_. .u . .,._ oa..a ltJ a ID &bt United 1&1111 &ba& aaa?'W laf-. Ulll &INN& .......... ,... .,.... .. . • . t . a . l t l l l l l U la t lt a r . " .......... IDd tll&& .................. Wita &be umtJ co ., " . I . J . Z I• ?Edlr" ... a • a • U eu • r t1r tll&& ..... tmU'Oll _. a "D 'pra. llde'" ... &bt 11r11Dt dJdlftlllMll aDoald IDd , ..... .... IDClllllN. ... .....,., ...... ,, ... <a>A.-.--IMDDOC..., . -...... to . . . . . .. . . . .. . . . .. to cw ..... .,. ""' .... ftllbll 1 , 11 .11.'1. . ......... .... ...... of t.bl .... 1111. <It> A .,._ ftDdor lball DOC clll-crt-tvtt ....... ID1 .,,.., - tbe ..... of &ba& .............. &be ... j dlllll!HOI' llde M IDO&blr cmrtlr. ti&Mr "' ....., ..... .. .., o&bel' PAIT _,AlftCIPAllON Oii All CA- AllOGATIOla • IOA•Plff 1111 ... ..., DION'. ... .... DI 11 ..........., u: .M . .J. .. . . . . . , . Atrmmnr. .... 111. llt. HI. IM lMl ol &be ............ Ac& ol l .... IDd •• • ''" Tl ... ,.• • U . .& .. C . . . 1 .. -. . . 1 . 1 . 1 . 1. . . . i . -. . . , ... "'· ... 'Ill. .. 1M Hll. ...._ .., ............ Daa ...... <•> "Air .,,.., •••alr:ta." .... DU'& of ... air aarrtrn. Ml