[Code of Federal Regulations]
[Title 14, Volume 4]
[Revised as of January 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 14CFR212.7]

[Page 32-33]
 
                     TITLE 14--AERONAUTICS AND SPACE
 
   CHAPTER II--OFFICE OF THE SECRETARY, DEPARTMENT OF TRANSPORTATION 
                         (AVIATION PROCEEDINGS)
 
PART 212--CHARTER RULES FOR U.S. AND FOREIGN DIRECT AIR CARRIERS--
Table of Contents
 
Sec. 212.7  Direct sales.

    (a) Certificated and foreign air carriers may sell or offer for 
sale, and operate, as principal, Public Charter flights under part 380 
of this chapter directly to the public.
    (b) Each certificated or foreign air carrier operating a charter 
trip under this section shall comply with all the requirements of part 
380 of this chapter, except that:
    (1) Those provisions of part 380 relating to the existence of a 
contract between a charter operator and a direct air carrier do not 
apply;

[[Page 33]]

    (2) A depository agreement shall comply with Sec. 380.34a (d) and 
(f);
    (3) A security agreement shall comply with Sec. 380.34 (c) and (d); 
and
    (i) If no depository agreement is used, protect charter participant 
payments (including those for ground accommodations and services) and 
assure the certificated or foreign air carrier's contractual and 
regulatory responsibilities to charter participants in an unlimited 
amount (except that the liability of the securer with respect to any 
charter participant may be limited to the charter price paid by or on 
behalf of such participant);
    (ii) If used in combination with a depository agreement, protect 
charter participant payments (including those for ground accommodations 
and services) and assure the certificated or foreign air carrier's 
contractual and regulatory responsibilities to charter participants in 
the amount of at least $10,000 times the number of flights, except that 
the amount need not be more than $200,000. The liability of the securer 
with respect to any charter participant may be limited to the charter 
price paid by or on behalf of such participant.
    (c) The Department reserves the right to limit or prohibit the 
operation of direct sales Public Charters by a foreign air carrier upon 
a finding that such action is necessary in the public interest.