[Code of Federal Regulations]

[Title 14, Volume 4]

[Revised as of January 1, 2006]

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:



[[Page 33]]



    (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;

    (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.