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1988 - December DOT Ord. & Dec. 1 (December, 1988)

handle is hein.usfed/dotod0394 and id is 1 raw text is: Order 88-12-1 ,.f3T UNITED STATES OF AMERICA DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D.C. Issued by the Department of Transportation on the 1st day of December, 1988 Agreement adopted by the Tariff : Docket 45858 Coordinating Conferences of the R-1 through R-26 International Air Transport Association relating to cargo rates : ORDER Various members of the International Air Transport Association (IATA) have filed an agreement with the Department under section 412(a) of the Federal Aviation Act of 1958 and Part 303 of the Department's Procedural Regulations. It was adopted at the Composite Cargo Tariff Coordinating Conference held in Geneva during July-August 1988. 1/ The agreement establishes new cargo rate structures applicable to cargo moving between points in TC2 (Europe/Middle East/Africa) and points in TC3 (Asia/Australasia/Pacific Islands), and directly affects foreign air transportation insofar as U.S. Pacific Territories are concerned. While the agreement holds many rates and charges to/from U.S. points at current levels, some would increase three to 80 percent, with the higher increases obtaining from points most affected by adverse fluctuations in exchange rates. We have decided to approve the agreement insofar as it involves rates between foreign points, which have only indirect application in foreign air transportation as defined by the Act. However, we will defer action on those portions of the agreement proposing rates to/from U.S. points. In general, we require economic justification from the U.S. carrier members of IATA in order to review any major IATA cargo rate agreement; we are not in a position to approve IATA cargo rate agreements raising rates to/ from U.S. points without suitable justification. j/ No economic justification has yet been submitted in support of the present agreement. Without such justification, we do not have any basis on which to evaluate carrier revenue need and cannot reach a funding under the public-interest standard of the Act. Under j/ IATA memorandum TC23 Reso/C 0163. 2/ Advanced Micro Devices, et al. v. C.A.B., 742 F.2d 1520 (D.C. Cir. 1984). See Order 86-12-35, December 11, 1986.

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