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1983 - November DOT Ord. & Dec. [1] (November, 1983)

handle is hein.usfed/dotod0574 and id is 1 raw text is: Order 83-11-1 UNITED STATES OF AMERICA CIVIL AERONAUTICS BOARD WASHINGTON, D. C. + Issued Under Delegated Authority November 1, 1983 In the matter of JAPAN CHARTER AUTHORIZATIONS Docket 41303 Distribution of charter authorizations under Part 320 of the Board's Procedural Regulations ORDER ASSESSING PENALTIES Part 320, Procedures for Awarding Japanese Charter Authorizations, of our rules established procedures for allocating among U.S. carriers the charter authorizations available in the United States-Japan market under the September 7, 1982, Memorandum of Understanding (MOU) between the United States and Japan. Under the MOU, U.S. carriers may operate 300 one-way charters annually for the duration of the agreement. Part 320 provided for a one-time allocation of the 300 available charters for a three-year period. It provided that certificated carriers with a recent history of charter operations in the Japan market receive a certain number of grandfather allocations based upon the level of their recent operations, and that the remaining flights be awarded under the rule through a lottery open to all U.S. carriers holding authority in the market and having the operational capability to serve Japan. The authorizations were formally allocated by Order 82-10-46. To assure that the authorizations were used efficiently and not wasted, the rule allows for the intercarrier transfer of authorizations; but it imposes, in section 320.14(c), a penalty on excessive transfers of grandfather authorizations, requiring carriers that transfer more than ten percent of their grandfather authorizations in any year to forfeit one flight in each future year for each flight transferred above the ten percent threshold. Section 320.15 places a penalty on the non-use of any authorizations, requiring forfeiture of two flights in each future year for every flight not used. 1/ 1/ In a case where this non-use penalty would exceed the number of flights available to a carrier, its future-year allocation would be zero.

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