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B-184398 1 (1978-04-03)

handle is hein.gao/gaobadfwv0001 and id is 1 raw text is: 0. Easterwood . .' rTransp. THE COMPTROLLER GlUNERAL 2Ectcsir . / Op THE UNITED ISTAT S WABHINGTON. D C. 2054a FIL2: 3-184398 DATE: APR 3 1970 MATTER UF: Saturn Airways, Inc.; Alaska International Air, Inc. DIGEST: 1. Air carrier who was at all times eligible for contract to perform charter flights is interested paxty under bid protest procedures. 2. Intent of Section 5 of Fly America Act (49 U.S.C. 1517) is to prefer United States air carriers over foreign air carriers rather than to prefer certificated over non-certificated air carriers. 3. A carrier awarded a contract without the CAB authority needed to perform assumes the risk of obtaining the authority. The Agency for International Development (AID), Department of Utate, solicited quotations from several air carriers for the transportation of two one-way outsized cargo charter flights from Carswell Air Force Base, Texas, to Rangoon, Burma. The solicita- tion was subject to Section 5 of the InternAtional Air Transporta- tion Fair Competitive Practices Act of 1974, 49 U.S.C. 1517 (Supp. V, 1975) (Fly America Act). None of the air carriers holding certificttes of p'iblic convenience and necessity under Section 401 of the.FederaL Aviation Act of 1958, 49 U.S.C. 1371 (1970) (certificated air carrier), with the operating authority to serve Rangoon, responded to the charter solicitation. (There was no regularly scheduled cargo service to Rangoon from Carswell Air Force Base, although there was regularly scheduled serviee from one of the surrounding municipal airports.) Ozly two firms responded to the solicitation: Saturn Airways, Inc. (Saturn), a certificated air carrier; and Alaska International Air, Inc. (AIA), a commercial operator not holding a certificato of public convenience and necessity under Section 401 (non-certificated air carrier). Neither had operating authority to serve Rangoon. AID awarded the two charter flights to AIA which offered the low price. AIA, by application filed June 20, 1975. asked the Civil Aeronautics Board (CAB) to issue an emergency exemption from the certificate requirement of Section 401 to perform the two charter -'1 -

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