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Full text of "Appendix, oversight of Civil Aeronautics Board practices and procedures : appendix to hearings before the Subcommittee on Administrative Practice and Procedure of the Committee on the Judiciary, United States Senate, Ninety-fourth Congress, first session .."

APPENDIX 
OVERSIGHT OF CIVIL AERONAUTICS BOARD 
PRACTICES AND «I«)€EDURES> 

JAN 4 I"' ■' 

N.U. I AW LIBRARY 

APPENDIX TO HEARINGS 

BEFORE THE 

SUBCOMMITTEE ON 
ADMINISTRATIVE PRACTICE AND PROCEDURE 

OF THE 

COMMITTEE ON THE JUDICIARY 

UNITED STATES SENATE 

NINETY-FOUKTH CONGRESS 

FIRST SESSION 

ON 

OVERSIGHT OF CIVIL AERONAUTICS BOARD 
PRACTICES AND PROCEDURES 



VOLUME 2 



Printed for the use of the Committee on the Judiciary 




U.S. GOVERNMENT PRINTING OFFICE 
WASHINGTON : 1976 



For sale by the Superintendent of Documents, U.S. Government Printing Office 
Washington, D.C. 20402 - Price $7.30 

NORTHEASTERN UNIVERSITY SCHOOl of LAW LIBRARY 



COMMITTEE ON THE JUDICIARY 
JAMES O. EASTLAND, Mississippi, Chairman 
JOHN L. McCLELLAN, Arkansas ROMAN L. HRUSKA, Nebraska 

PHILIP A. HART, Michigan HIRAM L. FONG, Hawaii 

EDWARD M. KENNEDY, Massachusetts HUGH SCOTT. Pennsylvania 

BIRCH BAYH, Indiana STROM THURMOND, South Carolina 

QUENTIN N. BURDICK, North Dakota CHARLES McC. MATHIAS, Jk., Maryland 

ROBERT C. BYRD, West Virginia WILLIAM L. SCOTT, Virginia 

JOHN V. TUNNEY, California 
JAMES ABOUREZK, South Dakota 

Francis C. Rosenberger, Chief Counsel and Staff Director 



StlBCOMMIlTEE ON ADMINISTRATIVE PRACTICE AND PROCEDURE 

EDWARD M. KENNEDY, Massachusetts, Chairman 
PHILIP A. HART, Michigan STROM THURMOND, South Carolina 

BIRCH BAYH, Indiana CHARLES McC. MATHIAS, Jr., Maryland 

QUENTIN N. BURDICK, North Dakota HUGH SCOTT. Pennsylvania 

JOHN V. TUNNEY, California 

Stephen G. Breyer, Special Counsel 

Thomas M. Susman. Chief Counsel 

Philii" J. Bakes, Jr., Assistant Counsel 

Janet F. Alberghini. Staff Member 

Theresa A. Burt, Staff Member 

Caroline J. Croft, Research Assistant 

James F. Michie. Investigator 
James I. Campbell, Jr., Staff Member 
William A. Coates. Minoritij Counsel 

(II) 



INTRODUCTION 

These appendix volumes gather together the basic unpublished source 
material which served as the basis for the subcoranittee ' s hearing? and 
report, but which were too voluminous to include in the hearing record. 

Parts One and Two of the Appendix contain the detailed responses to 
questionnaires that the subcommittee submitted to the Civil Aeronautics 
Board and the airlines. The airlines responses to Question 100 consisted 
of training manuals for airline personnel, and thus have been omitted 
from this appendix. Likewise, some extensive attachments to other an- 
swers have been also omitted, particularly if the material is on file with 
the CAB. In such cases, the omissions are noted, and the material may 
be obtained from the subcommittee or the CAB as indicated. Finally, the 
subcommittee has deleted certain information of a confidential, financial, 
or conmercial nature where requested by the airline providing the infor- 
mation. 

Part Three presents the primary documents relating to the CAB's con- 
trol over entry. CAB staff studies of 1972 and 1974 detail the CAB's 
decisionmaking process, as well as providing much useful information not 
published or generally available elsewhere. Three studies initiated by 
the subcommittee are also included: a study by a special subcommittee 
consultant, Lucille S. Keyes; a legal memorandum by Stuart Glass of 
the Library of Congress staff; and an audit of entry cases by the General 
Accounting Office. (The CAB's responses to Questions 19 and 29 of Part 
One also address this subject.) 

Part Four reproduces certain portions of the Domestic Passenger 
Fare Investigation . This 4-year investigation concluded in December 
1974, and presents the most thorough CAB analysis of Federal economic 
policy toward the airlines, and the most carefully considered CAB judg- 
ments on the use of its authority over airline fares. 

Finally, Part Five contains supplementary material which relates 
to, but did not appear in, the hearing record. 

(Ill) 



CONTENTS 



Part One Subcommittee Questionnaire and Responses by the Civil 
Aeronautics Board 

Part Two Subcommittee Questionnaires and Responses by the Airlines 

Part Three Materials Relating to Certification and Entry Regulation 
by the Civil Aeronautics Board 

Part Four Materials Relating to Fare Regulation by the Civil Aero- 
nautics Board: The Domestic Passenger Fare Investigation 



Introduction- 



Part One 



A. Questionnaire to the Civil Aeronautics Board 1 

B. Responses of Civil Aeronautics Board „ 7 

Part Two 

A. Questionnaire to the Airlines: 

1.) Questionnaire sent to the trunk and local-service 

carriers 627 

2.) Questionnaire sent to the supplemental carriers 636 

3.) Questionnaire sent to the intrastate carriers 637 

B. Responses of Trunk Airlines: 

1.) American Airlines 641 

2.) Braniff Airways 871 

3.) Continental Airlines 1053 

4.) Delta Air Lines 1125 

5.) Eastern Airlines 1283 

6.) National Airlines --- 1435 

7.) Northwest Airlines 1443 

8.) Pan American World Airways 1493 

9.) Trans World Airlines - - 1519 

10.) United Air Lines - --- 1671 

11.) Western Airlines 1795 

C. Responses of Local-Service Airlines: 

1.) Allegheny Airlines - 1907 

2.) North Central Airlines 2005 

3.) Ozark Airlines --- 2027 

(V) 



(VI) 

Responses of Supplemental Airlines: 

1.) Overseas National Airlines - -- 2105 

2.) Saturn World Airways 2111 

3.) Trans International Airlines 2114 

4.) World Airways -- 2119 

Responses of Intrastate Airlines: 

1.) Air California Airlines 2125 

2.) Pacific Southwest Airlines 2149 

3.) Southwest Airlines 2183 

Part Three 

Civil Aeronautics Board, Bureau of Operating Rights, The 

Domestic Route System (staff study, Oct. 1974)-- 2235 

Civil Aeronautics Board, memorandum from Director, Bureau of 
Operating Rights, to the CAB, dated Oct. 2, 1972, re future 
of the Board's route program (notation #3220) 2487 

Lucille Sheppard Keyes, special consultant to the subcommitee, 
"Present, Proposed, and Past CAB Policy Toward Route Auth- 
ority, in Relation to Legislative Intent" (1975) 2545 

Stuart Glass, legislative attorney, American Law Division, 
Library of Congress, Congressional Research Service, "Law 
and Procedures Regarding Major New Route Proceedings Before 
the Civil Aeronautics Board" (1975) 2575 

Part Four 

Seating Configuration: 

CAB Order 71-4-48 (1971) (DPFI Phase 6A) -- 2607 

Dissent by Member Murphy 2660 

Load-Factor Standards: 

CAB Order 71-4-54 (1971) (DPFI Phase 6B)-- 2685 

Partial dissent by Vice Chairman Gillilland 2776 

CAB Order 74-3-81 (1974) (DPFI Phase 6B, supplemental or- 
der and order on reconsideration) 2787 

Fare Level: 

CAB Order 72-8-50 (1972) (DPFI Phase 7) 2827 

Concurrence and dissent by Members Minetti and Murphy 2883 

Rate of Return on Investment: 

CAB Order 71-4-58 (1971) (DPFI Phase 8)- 2915 

Dissent by Members Minetti and Murphy 3053 



(VII) 

Fare Structure: 

CAB Order 74-3-82 (1974) (DPFI Phase 9)- 



3087 



CAB Order 74-12-109 (1974) (DPFI Phase 9, order on recon- 
sideration) 3291 

CAB Order 74-12-110 (1974) (Domestic Night Coach Fare In- 
vestigation) _-_ 33^3 



Inadvertent Omissions from the Hearings 

A. James Gagnon, chairman, Ad Hoc Committee on Air Conroerce, 

Airport Operators Council International, prepared state- 
ment. Attachments A and B 3349 

336l' 

B. United States v. CAB, 511 F.2d 1315 (D.C. Cir, 1975) 3405 



627 



PART 2 



QUESTIONNAIRE SENT TO THE 
TRUNK AND LOCAL SERVICE AIRLINES 



(Please ideatify proceeding with docket numbers, where applicable} 

1. Have you seriously considered lowering fares on any major routes 
within the past five years? If so, did you file tariffs embodying 
lower fares? (docket numbers?) If not, why not? Do current Board 
procedures inhibit or encourage the carriers to experiment with 
lower rates? How? 

2. Do you support the type of "zone of reasonableness" fare 
proposal advocated by DOT and DOJ in Phase 9 of the DPFI? Do 
you believe such as zone would lead to lower fares? Why? 

3. List representative figures to indicate the approximate 
proportion of business and pleasure passengers you carry on 

a) transcontinenta] flights; b) major short haul routes; c) minor 
short haul routes; d) international routes. 

4. How do you determine the proper fare for a particular city 
pair? Who, within your organization makes this decision? What 
studies are made for use in making it? Have you studied the 
possible effects of increased fare competition on your fares, costs, 
and profits? Describe in detail the studies you have made, and 
their conclusions. 

5 . How many times during the past ten years have your company or 
competing airlines filed for fare increases? In which markets? 
How many times have you matched fare increases that the Board 
approved? In which markets? Has your airline, in circumstances 
where a competitor filed an application for a fare increase which 
was approved, felt pressure — formal or inf ormal--f rom the CAB or 
its staff to file for a similar fare increase? When? Describe. 
Has your airline felt pressure from other airlines to match an 
approved fare increase? Describe. 

b. Enclose a statement of your costs, revenues, gross profits, 
interest on debt, actual taxes paid, net return to equity, and 
load factors for your domestic routes, and for your international 
routes broken down by individual route insofar as possible for each 
year for the past ten years. (Indicate as well those of your costs 
and profits that are attributable a) Your charter operations; 
b) other non acheduled airline related activities; c) non airline 
activities) 

Include that same information for the nine months ending Sept. 30, 1974. 

Include that same information for the following routes.* 1) all 
routes on which capacity restricting agreements have been made with 
other airlines; 2) those same routes prior to the time capacity 
restricting agreements took effect; 3) San Francisco/Los Angeles; 
4) Boston/New York; 5) Boston/Washington; 6) Washington/New York; 
7) r.'utes between the East Coast and Chicago; 8) transcontinental 



628 



routes; 9) North Atlantic routes. Provide information as to the 
traffic density of each of these routes. How would these figures 
change if the load factors on these routes averaged 5556? 60%? 
65%? 70%? 

* where applicable 

7. Provide a statement of actual and predicated cash flow over the 
past five years. Provide a statement of projected cash flow over the 
next five years. What load factors did you assume in arriving at the 
figures in these statements? How do the figures change assuming 
load factors of 55%? 60%? 65%? 70%? 

8. List your purchases and leases of new airplanes made in the past 
five years . How much money have you invested in new airplanes 
during that time? What is the rate at which you depreciate those 
airplanes? How were these purchases financed? If they were 
financed by bond sales, list the amounts and dates on which these 
bonds fell due. 

9. Describe your existing outstanding contracts for the purchase 
of airplanes or other major items of equipment. Describe other 
such purchases that you plan over the next five years, which are 
not now covered by contracts. 

10. List the salaries, bonuses and any other compensation paid to 
the ten highest paid executives in your company for each year for 
the past five years . 

11. If your costs were to exceed your revenues each year for the 
next five years, by, say 5% or 10%, what steps would you take to 
aviod bankruptcy? Cut salaries? Renegotiate contracts with unions? 
Postpone dates on which payments for aircraft are due? Other? 
Would you reorganize the company before going into bankruptcy? What 
would be the effect of bankruptcy on debt holders, equity holders, 
the traveling public? Would the company stay in business? Were 
payments on airplanes rescheduled or forgiven, would it be possible 
to stay in business? How much leeway, in terms of cashflow, would 
such rescheduling or forgiveness produce? 

12. Do you believe the CAB ought, as its first priority, to act to 
prevent a possible bankruptcy by any major trunk carrier? If not 
its first priority, should the CAB give such a task a high priority? 
Under what conditions? 

13. Why, in your view, are the original trunk carriers — those in 
business in 1938 — the only trunk carriers still in business? Why 
have no other firms in the aviation business become trunk carriers? 

14. If the CAB were to set a definite policy of not allowing any fare 
increases in the next five years, what would you do? Would you 
disinvest in aircraft? How can you do this? Would demand catch up 

to your present fleet? When? Suppose the CAB cut fares by 10% or 
suppose fuel costs continue to increase? 



629 



-3- 

15. Normally, low profits are a signal to an industry that its 
investment is too large — that it should disinvest. Is this 
"classical" statement applicable to the airline industry? If not, 
why not? 

16. What major factors do you believe are responsible for the 
airline industry's low profit over the past few years? Do you 
believe that CAB policies contributed to, or offset, low profits? 
(Specify which policies and how.) 

17. IXjring a recent CAB proceeding an industry witness testified: 
"If a carrier were absolutely certain that the CAB would allow it 
to go bankrupt before it were given any relief, then I believe 
you would see some action taking place in eliminating marginal 
capacity (excess capacity)" Do you agree with this statement? Why? 
Do you believe that the CAB 's load factor standards would be more 
effective in controlling load factors if the CAB were less 
concerned to prevent airline bankruptcy or reorganizations? 

18. Are your costs higher than, equal to, or lower than the 
industry average? By how much? Why? 

19. List your advertising, other promotion, and office rental 
costs, absolutely, and as a percentage of total costs, for each 
year for the past five years. 

20. Assuming that all scheduled flights remain unchanged what is 
the additional cost of carrying one extra passenger on a flight? 

21. Please answer the following questions in respect to each of the 
following markets: San Francisco/Hawaii, New York/Hawaii, New York/ 
Los Angeles, New York/Atlanta, Chicago/New York, New York/ Miami, 
Boston/Washington : 

a. What are your costs per flight, (1) determined on a 
"fully allocated" cost basis, (2) determined on a DOC basis 
(as used by the CAB), (3) determined on an "incremental cost" basis 
(what do you include in "incremental cost")? Determine these costs 
insofar as possible both on a "seat-milex" basis and on an RPM 
basis. 



b. 



What are your load factors in each of those markets? 



22. List the routes including international routes that you have 
applied for CAB permission to serve in the last five years. Indicate 
those routes where the CAB has granted permission. Indicate those 
where the CAB has denied permission. Indicate those where no action 
was taken by the CAB, along with the ultimate disposition of the 
applicatijn. As to each application, indiate the date of filing 
and the date of ultimate disposition along with the dates of any 
hearings held. Do you believe that Board actions on your route 
applications have generally been expeditious? If not, to what do 
you attribute the delay? 



630 



23. Are there routes which you would consider entering if CAB 
approval for entering were not required? Which? Describe your 
reasons for considering entry to the extent you wish to do so. 
Does the CAB's entry policy inhibit your flying new routes? If 
so, describe how? 

24. Would your charge lower fares than those now being charged 
on any route if you were free to enter and to set lower fares? 

25 . Are you involved in any route purchase or exchange proceedings? 
Which routes? Involving which carriers? How much would you be 
willing to pay for each of such routes? Would fares be sufficient 
to cover purchase costs? In your view, should such purchases or 
exchanges be allowed without full comparative hearings? 

26. If you have excess capacity, can the extra planes be leased 
or sold elsewhere? At a loss? 

27. Identify any routes which are certificated to you but on 
which service has been suspended. Do you have any present 
intention to resume service? When? Why were these services 
discontinued? Should other airlines be given the option of 
flying these routes? 

28. List yourfuel costs, in absolute terms, and as a percentage 
of your total costs, for 1972, 1973, 1974 and projected for 1975. 
What has been the increase in cost per gallon during this period? 

29. If you now serve the North Atlantic, provide the details of 
your costs, revenues and profits for any such service for the years 
from 1970 through the present. What course of action will you 
follow if the government provides no relief in the form of subsidy 
or otherwise to alleviate current losses over these routes? If 
you do nut now provide North Atlantic service, would you do so if 
entry were not regulated? 

30. Compare your costs in the North Atlantic market with those 
on San Francisco/New York and New York/Los Angeles routes. 
Explain the difference. 

31. If the CAB certificated a number of new trunk carriers over 
dense traffic routes, what effect would such certification have 
on the industry? On your company? 

32. What would the effect of a "permissive" entry policy be upon 
the behavior of carriers in the industry? 

33. If you serve markets entirely within California or entirely 
within Texas, have your flights within those states been profitable' 
Have they been profitable on a fully allocated cost basis? On a 
DOC basis (per CAB)? On an incremental cost basis? What do you 
include in incremental costs? Have you met the fares charged by 
PSA and SWA? 



631 



-5- 

34. How do you decide how much capacity to offer in a market? What 
frequency of service to offer? Which markets to promote heavily? 
Who makes these decisions? 

35. How many different classifications of inflight service do you 
provide? (How many different sorts of, e.g., first class service? 
How many different sorts of economy service, etc?) 

36. How do you decide on which routes and which flights to offer 
a particular classification of inflight service? Who makes 
these decisions? 

37. Could you operate as efficiently as you do now if your airline 
were twice its present size? Half its present size? 

a. With respect to fleet size? 

b. With respect to RPM's 

c. With respect to passengers emplaned? 

38 In what ways and to what extent do a) CAB reporting 
requirements, b) CAB ticketing requirements, c) other CAB 
requirements impose costs on your operations? (e.g., preventing 
simplified passenger handling or accounting procedures)? 

39. Which CAB practices or procedures do you believe to be the 
most burdensome or least efficient? What recommendations for 
changes would you make? 

40 How much money have you spent each year for the last five 
years on salaries, fees (including attorneys fees) and other costs 
related to CAB proceedings? How much money have you spent that is in 
any way attributable to Congressional lobbying? 

41. What was the total number of passengers emplaned? 1972-October 1, 
1974? 

42. What was the total number of flights scheduled to operate? 1972- 
October 1, 1974? 

43. What was the total number of flights actually operated? 1972- 
October 1, 1974? 

44. How many persons with the primary duty of investigation or handling 
consumer problems did you employ? 1972-October 1, 1974? 

45. What was the total number of comments recorded? 1972-October 1, 
1974? 

46. How many of these comments were complaints? 

47. What was the budget for customer relations/consumer affairs 
activities (excluding the amount paid for claims)? 1972-October 1, 
1974? 

48. What was the total amount of claims or other monetary settlement 
paid? 1972-October 1, 1974? 



632 



49. What percentage of the complaints received requested some form 
of monetary reimbursement? 1972 -October 1, 1974? 

50. What percentage of complaints were settled with some form of 
monetary reimbursement? 1972 -October 1, 1974? 

51. Under what circumstances will the carrier waive the tariffs 
in order to settle complaints from mishandled passengers? 

52. When a complaint is received, what measures are taken to 
prevent recurrances? 

53. List the two or three airline practices that are most frequently 
the subject of passenger complaints. Please submit your manuals 

or sets of instructions related to dealing with passenger complaints. 

54. How many pieces of luggage were mishandled? 1972-October 1, 1974? 

55. How many were lost? 1972-October 1, 1974? 

56. How many were delayed? 1972-October 1, 1974? 

57. How many were damaged? 1972-October 1, 1974? 

58. How many were pilf erred? 1972-October 1, 1974? 

59. What was the total amount spent to settle claims for mishandled 
luggage? 1972-October 1, 1974? 

60* What was the total amount spent to pay claims for lost luggage? 
1972-October 1, 1974? 

61. What was the total amount spent to pay claims for damaged luggage? 
1972-October 1, 1974? 

62. What was the total amount spent to repair damaged luggage? 1972- 
October 1, 1974? 

63. What was the tota] amount spent to pay pilferrage claims? 1972- 
October 1, 1974? 

64. What was the total amount spent to pay claims for delayed bags? 
1972-October 1, 1974? 

65. What was the total cost of delivering delayed bags to passengers? 
1972-October 1, 1974? 

66. What percentage of the number of claims received exceeded the 
maximum liability limits specified in the tariffs? 1972-October 1, 1974' 

67. How many claims were denied because the baggage or its contents 
was unacceptable? 1972-October 1, 1974? 

68. What percentage of claims were paid in full? 1972-October 1, 1974? 



633 



69. What percentage of claims were denied completely? 1972- 
October 1, 1974? 



70. State the carrier's policy regarding proof of ownership of 
passengers' luggage and its contents. Submit any written notice 
which is given to passengers explaining this policy prior to 
checking in luggage . 

71. List specifically carrier's criteria for the acceptability of 
checked luggage. Submit any written notice which is given to 
passengers explaining 'this policy prior to the checking of luggage. 

72. What security measures are taken at airport baggage claim areas 
to prevent baggage theft? 

73. What are the procedures for the processing of claims regarding 
pilferage from a passenger's checked bag? 

74. What is the average length of time required to settle a claim 
for lost or pi If erred baggage? 

75. What are the procedures regarding the investigation of the 
validity of a claim? 



76. What is the procedure used by the reservations staff to confirm 
requests for seats during periods when the computers are down? 

77. What procedures are taken by the accounting staff to check the 
accuracy of rate computations and to refund any applicable over- 
charges to passengers? 

78. What is the average lapse of time required to process refunds 
on unused tickets, or to refund fare adjustments on partically used 
tickets? 

79. What percentage of passengers made arrangements for such services 
as car rentals or hotels through the carrier's reservations offices? 
What is the cost to the carrier of providing such services? 

80. What are the procedures for notifying passengers of schedule 
changes? Is automatic protection off erred to the affected passengers 
on all flights which are cancelled as the result of a schedule change? 

81. What is the carrier's policy regarding the replacement of lost 
or stolen tickets? What is the policy regarding the refund of such 
a lost or stolen ticket? 

82. What was the cust to the carrier during each of the past three 
years for the establishment, maintenance and personnel for any c]ub 
or VIP lounges? 



634 



83. How many passengers were denied boarding on flights for which 
they had confirmed reservations or valid tickets (include no-recs) 
1972-October 1, 1974? 

84. How many of these passengers were eligible for DBC? 1972- 
October 1, 1974? 

85. How many of these passengers were not eligible for EBC because 
of equipment substitutions? 1972-October 1, 1974? 

86. Government requisition of space? 1972-October 1, 1974? 

87. Failure to meet check in or ticketing requirements? 1972- 
October 1, 1974? 

88. Carrier was able to rebook them on a flight scheduled to arrive 
within two hours of original flight? 1972-October 1, 1974? 

89. What was the total amount spent to pay EBC to passengers? 1972-10/1/74? 

*90. What percentage of passengers with conditional reservations were 
upgraded to first class on the original flight? 1972-October 1, 1974? 

*91. What percentage of passengers with conditional reservations were 
unable to board their original flight? 1972-October 1, 1974? 

92. Does the carrier offer conditional reservations, such as 
"leisure class"? 

93. If a passenger holds a ticket with an "ok" status and the carrier 
has no record of the reservation, what procedure is followed in an 
oversale situation? How is such a passenger's boarding priority 
affected? Is denied boarding compensation offered? 

94. Describe the procedures followed for dealing with bumping. 
Enclose copies of any manuals or the sets of instructions directed 
to employees dealing with a) bumping procedures, b) procedures for 
dealing with bumping complaints, c) priorities set in determining 
whom to bump . 

95. How many complaints were received regarding schedule 
irregularities? 1972-October 1, 1974? 

96. What was the cost of providing amenities to delayed passengers 
(food, hotels, etc.)? 1972-October 1, 1974? 

97. What is the procedure for getting flight status information from 
aircraft, to operations, to computer, to reservations and other 
personnel responsible for giving flight information to the public? 



* If applicable 



635 



98. What is the procedure for notifying delayed passengers of 
the availability of amendities? 

99. List the steps taken by your airline in the last two years to 
simplify tariff construction and to protect the consumer against 
overcharges. (Note that Consumers Union reported in a receht 
survey that because of tariff complexities consumers are often 
overcharged. What steps has your airline taken since the 
publication of that survey to prevent overcharges?) 

100. Could you please send us copies of the following documents: 

a. Customer relations manuals or other reference materials 
used by customer relations/consumer affairs dealing with the 
company's reimbursement policies and claims settlement procedures, 
which have been in use at any period during the last five years. 

b. Boarding priorities for flights chat are overbooked or 
oversold. 

c. Copies of any printed material that is given to passengers 
to explain any airline procedures, baggage liability, check-in 
procedures, time limit requirements, baggage acceptability, 
amenities, or any other information dealing with potential problem 
areas . 

d. Curriculum for training programs of reservations and ticket 
agents, baggage handlers, flight attendents, c 'nsumer affairs, 
customer relations and gate agents. Include grooming standards 

or appearance guidelines for male and female customer contact employees. 

e. All in-house manuals and other training materials used to 
guide or train agents who handle small claims on a local basis. 

f . Training materials used to explain tariff interpretation 
and use to reservations and ticket agents. 



636 



QUESTIONNAIRE SENT TO THE 
SUPPLEMENTAL AIRLINES 



1. What additional routes would you fly or alternate forms 
of service would you provide if the CAB ' s entry policy were 
more permissive? 

2. A study prepared by NACA in August 1972 shows that since 
the United States began certification of supplemental air 
carriers in 1962, the number of the U.S. supplementals has 
declined from 15 to 7, while the number of foreign supple- 
mentals has increased dramatically. A steady decline in 
the number of carriers is similarly characteristic of the 
scheduled U.S. airline industry. What are the reasons, in 
your view, for this phenomenon? What is its impact on the 
performance of the firms that remain within the industry? 

3. What factors do you take into account in setting charter 
rates? Do you ever quote rates below: a. fully allocated 
costs? b. Direct operating costs (per CAB) c. Incremental 
costs? What do you include in incremental costs? Do you 
ever quote rates above fully allocated costs? 



637 



QUESTIONNAIRE SENT TO THE 
INTRASTATE AIRLINES 



1. Describe the history of your firm. 

2. What regulatory or other obstacles did you face in trying to 
obtain approval to fly the routes and charge the fares that you 
wished to charge? 

3. Why did you wish to fly in the markets where you now provide 
service? Did you propose lower fares? If so, did you believe you 
could make money in those markets? How? Did you consider fares 
important? List each airport pair you serve. 

4. What fares do you charge in each market? Are you making a 
profit in each of the markets you serve (specify market by market) 
a) on the basis of fully allocated costs? b) on the basis of 
direct operating costs (CAB definition)? c) on the basis of 
incremental costs? (What do you include in "incremental" costs?) 

5 . What are your load factors in each market? 

6. If your fares were significantly lower than your competitors 
charged when you entered, and if they are significantly lower than 
those charged on comparable routes elsewhere in the country, 
explain in some detail how it is possible for your airline to 
remain in business. 

7. Have other airlines serving your markets matched your fares? 
Which? Are they making money on their service? How can you 
maintain high load factors if other airlines match your fares? 

8. Describe specifically the way in which your low fare service 
benefits the pubjic. 

9. Have your low fares led to an increase in the number of passengers' 
Document this if possible, showing the extent to which lower fares 
increase demand for service . 

10. Have you done studies of the elasticity of demand for air 
travel in your markets? If so, what were the results of those 
studies? 

11. How do you determine the proper fare for a parricular city pair? 
Who, within your organization makes this decision? What studies are 
made for use in making it? Have you studied the possible effects of 
increased fare competition on your fares, costs, and profits? 
Describe in detail the studies you have made, and their conclusions. 

12. Provide a statement of actual and predicted cash flow over the 
next five years. Provide a statement of projected cash flow over 
the next five years. What load factors did you assume in arriving 
at the figures in these statements? How do the figures change 
assuming load factors of 55%? 60%? 65%? 70%? 



638 



13. What is your depreciation policy for new aircraft? For 
aircraft purchased second-hand? If you lease aircraft, how many 
and what types? What are the lease terms? How were these 
purchases financed? If they were financed by bond sales, list 
the amounts and dates on which these bonds fell due. 

14. What percentage of your costs is accounted for by a) advertising, 

b) other promotion, c) office rents, d) wages, e) executive 
salaries, f) fuel. What are your total costs? Are your costs 
per passenger-mile lower than, equal to, or higher than the 
industry average? Why? 

15. Enclose a statement of your costs, revenues, gross profits, 
interest on debt, actual taxes paid, net return to equity, and load 
factors for your routes, broken down by individual route insofar as 
possible for each year for the past ten years. (Indicate as well 
those of your costs and profits that are attributable a) Your 
charter operations; b) other non scheduled airline related activities; 

c) nonairline activities) 

Include that same information for the nine months ending Sept. 30, 1974. 

16. What airplanes do you fly? Are your wage expenses for pilots, 
other crew, and ground personnel lower than, equal to, or higher 
than average wages in the industry? If they are lower, how do you 
account for this fact? 

17. Describe your "on time" performance. Is your record better 
than, similar to, or worse than the industry average? If your 
record is different, explain why. 

18. Is the weather on the routes you fly better than, similar 

to or worse than the weather on typical airline routes throughout 
the country? If the weather is better, to what extent does this 
fact account for your lower costs and your ability to charge lower 
fares? Please provide us with written documentation for your 
answer to this question. 

19. Are the routes you fly denser than, as dense as, less dense 
than typical airline routes throughout the United States? Is 
traffic less dense or more dense than the Boston/Washington, Boston/ 
New York, New Yurk Abashing ton, Chicago/Boston, Chicago/New York, 
Chicago/Washingtun routes? To what extent does density of traffic 
on your routes account for your ability to incur lower costs and 
charge lower fares than on other routes of similar mileage in other 
parts of the United Staces? 

20. Please describe your safety record. Please contrast this 
record with safety records of the interstate carriers and explain 
any differences. 



639 



21. Please identify any CAB procedures or activities that 
significantly affect your interstate operations. 

22. Please describe any litigation that significantly affects 
your interstate operations . 

23. Please describe the nature of any state regulation to which 
you are subject. How much do you spend each year in fees and other 
costs related to any such regulatory proceedings. 

24. Would you expand into interstate or international markets if 
there were no CAB regulations on entry? If so, where? 

25. List your fuel costs, in absolute terms, and as a percentage 
of your total costs, for 1972, 1973, 1974 and projected for 1975. 
What has been the increase in cost per gallon during this period? 

26. How would any of the above answers differ if you were fully 
subject to CAB regulation? 

27. How many people do you employ in positions related to 
airline activities? How many departures, passenger emplanements , 
aircraft-miles, aircraft-hours, RPM's and ASM's did you accomplish 
in the last 12 month period? 

28. What is your total number of hours delayed each year by 
airport or air traffic congestion? Your average delay per flight 
from these causes? The medi'^in delay? Ratio of biock hours to 
flying hours? 



641 



AMERICAN AIRLINES RESPONSES TO AIRLINE QUESTIONNAIRE 

Have you seriously considered lowering fares on any major routes 
within the past five years? If so, did you file tariffs embodying 
lower fares? (docket numbers?) If not, why not? Do current Board 
procedures Inhibit or encourage the carriers to experiment with 
lower rates? How? 



Attached is a list of major tariff filings embodying lower fares 
filed by American either on its own initiative or in response to 
filings by other carriers in the past five years. 

Current Board procedures do not inhibit carriers from experimenting 
with promotional fares. Carriers are required to show that such 
fares are expected to improve profitability and that they are not 
subsidized by passengers paying full fares. 



Fare Reductions Filed By American Airlines 
1969 - 1974 



Effective 
Date 


Docket 
Number 


02/01/71 


23022 


08/02/71 


23618 


10/01/71 


23719 


10/01/71 


23862 


06/27/72 


24503 



Proposal 



Family Excursion fare in transcontinental 
markets effective 1/1-2/25/71 

Standby Excursion fares HNL-BOS/CHI/DTV/NY/ 
STL effective 8/2-9/16/71 

Family Dependent fare of $99 transcontinental 
markets through 12/10/71 

Affinity Groups - wide-bodied aircraft 

Family Excursion fare on segments over 1000 
miles 



Board 
Action 



Suspended 

Suspended 

Approved 

Approved 
Approved 



10/31/72 24755 



7-9 day midweek excursion on segments over 
1000 miles to 12/7/72 



Approved 



03/31/73 


25274 


05/15/73 


25459 


10/16/73 


25743 


07/08/74 


26435 


06/01/74 


_ 



Demand Scheduling Approved 

Excursion faros at 12%% discount on weekends Suspended 
and 30% mid-week to 5/31/74 on trips over 
1000 miles 

7-9 day mid-week excursion fares in long haul Approved 
markets to 2/28/74 

Demand scheduling to 3/31/75 Approved 

Major expansion of night coach service Approved 
(20% discount). Now offered in some 410 
one-way markets. 



642 



Do you support the type of "zone of reasonableness" fare proposal 
advocated by DOT and DOJ in Phase 9 of the DPFI? Do you believe 
such a zone would lead to lower fares? Why? 



American did support the "zone of reasonableness" fare concept 
in the Domestic Passenger Fare Investigation (Docket 21866-9). 

In view of the Board's decision on discount fares (Docket 21866-5) 
and its ruling on the degree of flexibility permitted in establish- 
ing basic coach fares (Docket 21866-9), however, American believes 
there is sufficient opportunity to experiment with fares for the 
present. 



643 

3 . Perc:t:nt ol: "- r verme_rc£^s_-ijWj^r^^ 

a. TranstouLinental flights - .Sl% 

b. Major sliort-haul flights - 67?; 

c. Minor chort-haul flights - Ik't available 

d. International routes: 

Mexico - 27% 

Netherlands Antilles - 11% 



644 



How do you determine the proper fare for a particular city pair? 
Who, within your organization makes this decision? What studies 
are made for use in making it? Have you studied the possible 
effects of increased fare competition on your fares, costs, and 
profits? Describe in detail the studies you have made, and their 
conclusions. 



The basic coach fare between two points is determined by a CAB- 
established fare formula comprised of a terminal charge and a 
variable line-haul charge, the latter reflecting a built-in 
distance taper. The fare formula embodies the principle of cross- 
subsidization whereby fares charged for short trips are deliberately 
set below the full costs of providing the service, and fares for 
long trips exceed the costs of service. In other words, long-haul 
profits are supposed to subsidize short-haul losses. 

American believes that the proper base on which to construct the 
basic coach fares for both long and short routes is the average 
industry costs of providing the service — including an adequate 
return on investment. This method of construction assures a 
financially sound structure and one that is free of preference 
and prejudice as between city pairs. It also assures an adequate 
level of service on all routes, regardless of length. (American 
supports the decision of the CAB in Phase 9 of the Domestic 
Passenger Fare Investigation (Docket 21866-9) to base the fare 
structure upon costs of service and to implement a partial 
elimination of cross-subsidization.) 

Having established a basic coach fare, charges for the other classes 
of service, first class and night coach, are set at levels that 
reflect differences in cost and the value of the service to the 
passenger. 

Promotional fares are based on a percentage relationship to the 
basic coach fare. The level is determined by studies of past 
experience with promotional fares and estimates of the diversion/ 
generation ratio. The level must be one that generates sufficient 
new passengers to (1) offset the revenue lost from passengers who 
would have traveled at higher fares, and (2) the additional cost 
of handling the newly-generated passengers. This approach gives 
reasonable assurance that the promotional fare will improve profit- 
ability, at least over the short term. 

Members of the Marketing and Finance Departments participate in fare 
decisions. Cost studies and diversion/generation ratios are used in 
developing fares. Data from the recent Domestic Passenger Fare 
Investigation (Docket 21866), updated for cost changes, are useful 
basic tools. 

Ill-conceived fares, at low levels, will erode the carriers' ability 
to provide a service that adequately meets the needs of the public. 
If such unsound fares are permitted to continue over time, air 
transportation would find itself in the same position as the rail- 
roads, offering inadequate service with outmoded equipment and 
ultimately in the need of public support. 



645 



How many times during the past ten years have your company or competing 
airlines filed for fare increases? In which markets? How many times 
have you matched fare increases that the Board approved? In which 
markets? Has your airline, in circumstances where a competitor filed 
an application for a fare increase which was approved, felt pressure — 
formal or informal — from the CAB or its staff to file for a similar 
fare increase? When? Describe. Has your airline felt pressure from 
other airlines to match an approved fare increase? Describe. 



Attached is a list of fare increases filed by American Airlines in the 
past ten years. 

American has not been subjected to pressure from the CAB or from other 
carriers to match a proposed or approved fare increase. 



646 



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648 



Enclose a statement of your costs, revenues, gross profits, interest 
on debt, actual taxes paid, net return to equity, and load factors 
for your domestic routes, and for your international routes broken 
down by individual route insofar as possible for each year for the 
past ten years. (Indicate as well those of your costs and profits 
that are attributable to: a) Your charter operations; b) other non- 
scheduled airline related activities; c) non airline activities.) 

Include that same information for the nine months ending 
September 30, 1974. 

Include that same information for the following routes.* 1) all 
routes on which capacity restricting agreements have been made with 
other airlines; 2) those same routes prior to the time capacity 
restricting agreements took effect; 3) San Francisco/Los Angeles; 
A) Boston/New York; 5) Boston/Washington; 6) Washington/New York; 
7) routes between the East Coast and Chicago; 8) transcontinental 
routes; 9) North Atlantic routes. Provide information as to the 
traffic density of each of these routes. How would these figures 
change if the load factors on these routes averaged 55%? 60%? 
65%? 70%? 

* where applicable 



Attached are statements of: 

1. Passenger load factors 

2. Charter operations 

3. Taxes 

4. Profit and loss by Domestic, Latin America, 
and Pacific operations. 



Also attached is an Information Response (IR-5) submitted by American 
in the Capacity Reduction Agreements Case (Docket 22908) which 
contains various data on a route basis. 



649 

Que St. Ion 






YEAR 








LO.'M) 
FACTOR J= 


1974 


(9 months 


ended 


9/30/74) 


60.0 


1973 








53.0 


1972 








53.4 


1971 








49.8 


1970 








50.9 


1969 








52.8 


1968 








55.7 


1967 








59.0 


1966 








63.0 


1965 
1964 








58.9 
59.6 



650 



AMERICAN AIRLINES, INC. 

RKSPONSE TO QUEST I Oil i>C - SENATE SUBCOMMITTEE ON 

!-.DMIHlSlll/\TIVE i'laCJICE & PROtil-DlKE - OAF, - QUESTIONNAIRE 

CHARTER OHr:RATIONS 
(000) 



Syst em Cl iart er- O pera tions 

Total Operating Revenues 
Total Operating Expenses 
Total Operatliig Prof It/ (Loss) 



Nine Months 
En>-led 
9/30/74 



$24,252 
20.976 



$17,639 
15.136 
2.453 



$19,215 
17,381 



Total Operating Revenues 
Total Operating Expenses 
Total Operating Profit/ (Loss) 



18,860 

15.991 
2,869 



9,051 
7.262 
1,789 



1/ 1/ 



Latin Americ a. 

Total Opercting Revenues 
Total Operating Expenses 
Total OporatJug Profit/ (Loss) 



5,392 

4,985 
407 



8,493 

7,828 

665 



1/ 1/ 



Total Operating Revenues 
Total Operating Expenses 
Total Operating Prof it/ (Loss) 



95 
96 
(1) 



308 U 

183 

125 



1/ Information not readily available 
2/ Service discontinued 3/2/74 



1964t1970 Information not available 



K o 



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67-378 O - 76 - vol.2 - 3 



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655 






Docket 22908 
Reference to AA-IR; 
and AA-IR-LO 
Page 1 of 3 Pages 



Explanatory Note to Construction 
of Profit and Loss Statements 
(Response to Information Requests I.B.3 and II. B. 3) 

The market by market and system profit and loss 
statements, yields and load factors (Exhibits AA-IR-5 and AA- 
IR-10) represent data prepared as part of American's computerized 
flight costing system. This system is comprised of these ele- 
ments: (i) monthly flight and traffic statistic data by flight 
segment, (ii) unit cost data by type of expense, (iii) revenue 
yield data by flight segment and (^^ city pair or mileage cate- 
gory. The following describes the treatment of each component 
of the earnings statements: 
Revenues 

Passenger. Mail Property - Yield rates are estab- 
lished for each class of revenue and applied to RPMs and RTMs 
as applicable. 

Charter - Charter revenues are credited directly to 
each market based upon charters flown in each market. 
Expenses 

Flying Operations - Unit costs per aircraft type per 
ramp hour for cockpit pay, fringe benefits and related expenses 
are developed and applied against ramp hours flown in each 
market. 

Aircraft fuels and oils are charged based upon fuel 
consumed and at the appropriate cost per gallon at the dis- 
bursing market airport. 



656 



« ■ n ■ »■ Docket 22908 

Pm^enCanMnmeS Reference to AA-IR::5 

and AA-IR-LO 
Page 2 of 3 Pages 

KuLL insurance and aircraft rental expense per plane 
day by equipnicnt type is developed into a ramp hour cost on 
the basis of that equipment type's daily utilization and ap- 
plied against "ramp hours flown in each market. 

Dire ct Maintenance - Maintenance expense is segregated 
between flight and grounds A flight maintenance unit cost by 
equipment type is developed and applied to that equipment 
type's activity statistics within each market. 

Ground maintenance is allocated to fleet type by 
means of weighted departures, converted to a plane mile unit 
cost by equipment type and charged to each market on the basis 
of aircraft miles flown by equipment type within each market. 

Maintenance Bu rden - Costs are allocated to flight and 
and ground based upon direct labor dollars. The flight mainte- 
nance burden is allocated as a ratio of direct flight mainte- 
nance labor. 

Ground Maintenance burden is allocated on the sane 
basis as ground direct maintenance. 

Passenger Servic e - Cabin pay and expense is charged 
directly based on flight attendant ramp hours at a system unit 
cost. 

Passenger food and beverage is charged directly by 
flight within each market. 

All other expenses, such as cabin supplies, passenger 
liability insurance, interrupted trip expenses and related 
passenger services are allocated based upon a system race per 
passenger mile. 



657 

AmericanAiriiries 



Docket 22908 
Reference co AA-IR-5 

and AA-IR-10 
Page 3 of 3 Pages 



Aircraft Servicing - Landing fees and fuel and oil 
servicing are charged directly. All other costs are charged on 
a unit cost per weighted departure by equipment type. The 
weightings are determined by engineering studies ot workload 
requirements. 

Traffic Handling - Ticket lift and ramp services are 
allocated on a unit cost per departure basis. Passenger traf- 
fic handling is allocated on a unit cost per passenger carried 
basis. Cargo traffic handling is allocated on unit costs 
based on tons lifted and cargo ton miles. 

Servicing Administration - All expenses are allocated 
to fleet type based upon the ratio of aircraft servicing and 
traffic handling expenses assigned to fleet type to the total 
system cost of those functions and the ratio of total system 
servicing administration costs. 

Reservations and Sales - All expenses are allocated 
based on a unit cost per passenger boarded. 

Advertising and Publicity - All expenses are allocated 
based upon ASMs. 

General and Administrative - Distributed to fleet 

type on the same system ratio that system general and admlnis- 

cash 
trative expense bears to system all other/operating expense. 

Depreciation and Amortization - The aircraft day ex- 
pense is converted to a ramp hour cost based upon actual daily 
utllizatron and applied against ramp hours flown by market. 

Non-Operating Income and Expense - Net - Interest is 
allocated by fleet Investment and a cost per aircraft day devel- 
oped which is then converted to a ramp hour cost in the same 
manner as depreciation and applied in like manner. 



658 



Dockec 22908 
Exhibit No. AA-IR:i5 



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Docket 22908 
Exhibit No. AA-IR:^ 
Page 2 of 21 Pages 



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660 



Docket 22908 
Exhibit No. AA-IR-5 



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AmerieanA^riiiies 



Docket 22908 
Exhibit No. AA-IRj:^ 
Page U of 21 Pages 



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AmericanAiriir^as 



Docket 22908 
Exhibit No. AA-IR;:5 
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ericaiiAiiil^nes 



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Exhibit No. AA-IR^ 
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Exhibit No. AA-IR^S 
Page 8 of 21 Pages 



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680 



7. Provide a statement of actual and predicated casn flow over the 
past five years. Provide a statement of projected cash flow over the 
next five years. What load factors did you assume in arriving at the 
fiaures in these statements? How do the figures chanqe assuming 
load factors of 55%? 60%? 65%? 70%? 



The accompanying statement of estimatedcash flow does not make 
assumptions with respect to net earnings for the five years ended 
December 31, 1979. As a consequence, no load factors were assumed 
in arriving in the figures in the statements. 



681 



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682 



AMERICAN AIRLINES, INC. 
AIRCRAFT PURCHASED 



QUESTION 8 







747 






DC- 


■10 






Number 




C03t 

(000) 


Number 






Cost 




(000) 


1970 


3 




$ 67,445 


- 






$ 


1971 


6 




139,377 


3 






51.195 


1972 


- 




- 


16 






280,449 


1973 


- 




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197A 


_ 




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- 



1970 
1971 
1972 
1973 
1974 

Total 



$206.822 19 

A IRCRAFT LEAS ED 

$159,728 

2 
4 




$331.644 



34,008 
71,364 




From 1970 to 1974 American purchased or leased $803.6 million 
of new 747 and DC-10 aircraft, 28 of vhich are owned and 13 
leased. Tliese aircraft are being depreciated over 14 years 
to a 15% residual value. I'hc purchased aircraft were financed 
primarily throuc.h internally generated funds, takedowns under 
bank credit agreements (which reached a maximum amount of 
$125 million in 1971) and net proceeds of $84 million from 
the sale of 3.3 million shares of conution stock. 



Treosur\ r..-^:part!. 
D2zcv.ibcr iO, Iv/ 



683 



QUESTION 9 



During 1974 Anerican entered Into an agreement with 
Boeing to purchase 21 Boeing 727-223 aircraft and 
related equipment for approximately $174,000,000. 
Six of the new aircraft are scheduled for delivery 
in 1975, ten in 1976 and five in 1977. No additional 
orders for aircraft deliveries between 1975 and 1979 
are new contemplated. 



Treasury- Dep.aitncnt 
December 10, iy/4 



684 



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685 



If your costs were to exceed your revenues each year for the next 
five years, by, say 5% or 10%, what steps would you take to avoid 
bankruptcy? Cut salaries? Renegotiate contracts with unions? 
Postpone dates on which payments for aircraft are due? Other? 
Would you reorganize the company before going into bankruptcy? 
What would be the effect of bankruptcy on debt holders, equity 
holders, the traveling public? Would the company stay in business? 
Were payments on airplanes rescheduled or forgiven, would it be 
possible to stay in business? How much leeway, in terms of cash- 
flow, would such rescheduling or forgiveness produce? 



It is impossible to speculate upon the full range of actions that 
would be taken were American Airlines to experience five consecutive 
years of sizable losses. We would make every effort to stay in 
business and avoid bankruptcy proceedings. With the exception of 
maintenance and safety, we would seek to reduce expenditures in 
every area until we brought them in line with our revenues. In 
short, we would continue to cut back service until we reached a 
breakeven point. Particular emphasis would be placed on reducing 
the number of employees. 

Before going into bankruptcy, the following actions would be taken: 

• We would cancel flights in marginal or low-profit markets. 

• We would reduce or eliminate service in monopoly markets, 
forcing the traffic to flow over circuitous routings in an 
effort to raise load factors in other markets. 

• We would reduce the quality of our customer service by 
lowering our manning standards (e.g., reduce the manning 
in reservations, ticket offices, check- in points, baggage 
handling). 

• We would reduce the level of our in-flight passenger 
amenities (e.g., modify and/or eliminate meal and beverage 
service) . 

• We would seek fare adjustments to offset increased costs. 

• As cash became tight, we would attempt to dispose of 
unneeded equipment and facilities or enter sale/lease-back 
arrangements . 

• We would try to negotiate route swaps or sell off our least 
profitable routes. 

• We would seek suspension at low-volume cities. 

• We would reduce in every way possible total employee 
compensation levels. This would involve salary reductions, 
personnel layoffs, reduction in fringe benefits, etc. Moves 
such as these would be difficult to accomplish and could be 
effected only after serious labor disputes and work stoppages. 



686 

• We would consider merging with a stronger carrier. 

• We would apply for federal subsidy. 

If we could defer all aircraft rental commitments under non- 
cancellable leases, our cash flow would be improved by approximately 
$57 million annually. 

A series of airline bankruptcies would have the effect of drying up 
both the debt and equity sources of capital. The entire industry 
would find it difficult to raise capital needed for expansion or 
modernization because of the demonstrated risk of loss. The public 
would soon be faced with a severe degradation of service, both in 
terms of quality and quantity. The airline industry would be unable 
to meet its public service commitments to transport goods and 
passengers, and the traffic would have to move on less efficient 
modes of transportation. Under bankruptcy conditions, the airlines 
would not be able to attract competent management personnel in 
competition with more profitable industries. In short, airline 
bankruptcies would lead to the exact same deterioration of service 
and critical financial problems that have characterized the railroad 
industry over the past twenty-five years. 



687 



12, The CAB ought to act to prevent a possible bankruptcy 
of a carrier whenever it can do so consistent with the 
overall public interest. Whether such action would be 
a first priority, or a high priority, or any other kind 
of priority would necessarily depend on the specific 
circumstances. The conditions that should be attached 
to action would also depend on the specific circumstances, 



688 



13. Why, in your view, are the original trunk carriers — those in business in 
1938 — the only trunk carriers still in business? Why have no other 
firms in the aviation business become trunk carriers? 

The distinction between "trunk carriers" and the rest of the airline 
industry is largely one of labels. The trunks are those airlines which 
were granted "grandfather" rights under the Civil Aeronautics Act of 
1938, and which operate primarily over routes serving larger communities. 
Airlines certificated since that time have not been classified as trunks, 
even though in terms of size and route authority the distinction has 
become quite blurred. For instance, Allegheny, the biggest of the 
local-service airlines, enplaned more passengers in 1973 than did 
Pan American, Northwest, Western, Braniff, National, or Continental. 
Even though Northeast was classified as a trunk, even in its best year 
it carried 70% fewer passengers than Allegheny did in 1973 and its 
revenue passenger miles were only about 55% of Allegheny's 1973 total. 

Since the mid- 1 960' s, many route awards have been made to local-service 
airlines on a non-subsidized basis and there are today numerous examples 
of markets in which local-service airlines are competing very success- 
fully with trunk carriers for traffic. For example, in the twelve 
months ended March 31, 1974, Allegheny carried 51% of the Buffalo- 
Washington market; Texas International had 38% of the Albuquerque- 
Los Angeles market; Air West had 50% of the Los Angeles - Tucson market; 
Frontier had 51% of the Denver-St. Louis market; North Central had 45% 
of the Milwaukee-New York market. 

At the same time that local-service airlines have been growing out of 
their purely regional or "feeder" states, a "third level" of commuter 
carriers has moved in to operate in markets which were previously the 
domain of local-service carriers. 

The implication of Question 13 is that without any new trunk certifi- 
cations since 1938, the trunk carriers have enjoyed a protected 
position with little additional competition being authorized. Such 
a view cannot be supported in light of the many route awards made 
during the 1960's. The attached table shows the impact of the 
changing competitive positions within the industry during the seven- 
year period 1965-1972. 



689 



PERCENT CHANGE 
1965-1972 



Certificated Revenue Passenger Share of 
Route Miles Miles (RPM) RPM 



Big Four 


45.7% 


103.0% 


(10.5)% 


Other Trunks 


100.9 


161.6 


15.2 


Total Trunks 


75.1 


120.9 


(2.6) 


Local Service 


22.7 


239.5 


49.0 



690 



If the CAB were to set a definite policy of not allowing any fare 
increases in the next five years, what would you do? Would you 
disinvest in aircraft? How can you do this? Would demand catch 
up to your present fleet? When? Suppose the CAB cut fares by 
10% or suppose fuel costs continue to increase? 



There is no way to answer this question without additional 
assumptions. If we were to assume continued inflation on wage 
rates, cost of materials, landing fees, and fuel prices, we would 
be faced with the same type of situation described in question 11. 
On the other hand, if we could assume a slowdown in inflation and 
the type of growth that we had in the mid-1960 's when domestic 
trunkline traffic increased by 125% in five years, pressures for 
further fare increases could be reduced. It is important to 
remember that the combination of strong traffic growth and 
tremendous increases in productivity resulting from the transition 
from piston to jet aircraft permitted the industry to go without 
a general fare increase from February, 1962 until February, 1969. 



691 



15. Normally, low profits are a signal to an industry that its investment 
is too large — that it should disinvest. Is this "classical" statement 
applicable to the airline industry? If not, why not? 



American does not agree that the above statement is "classical", 
nor that it is directly applicable to the airline industry. As 
explained in question 16, there are several other factors besides 
large investment requirements which have led to low profits in the 
airline industry. 

It is true that we are a capital-intense industry. (In American's 
case, our annual revenues are not as large as our total assets.) 
It is also quite true that the airline industry has experienced a 
period of low profitability. (The current issue of FORBES magazine 
ranks the five-year performance of thirty industry groups. The 
airlines, while ranking seventh in sales, are dead last in terms of 
return on equity, return on total capital and earnings per share.) 
And, at the present time the airline industry is suffering from too 
much capacity — both in terms of flight equipment and ground facilities. 

Although disinvesting may be the theoretical answer, it is not a very 
practical one. While some airlines have been able to dispose of 
unneeded flight equipment (American has sold six of its sixteen 747 's), 
the more common result of over capacity is under-utilization of 
assets. It is obviously very difficult to "disinvest" in hangars, 
passenger terminals, and flight training centers even if such ground 
facilities are excess to one's needs. The nature of airline 
competition puts a premium on "prime-time" departures and makes it 
equally hard to reduce flight equipment investment. When an airline 
cuts back its capacity it tends to eliminate flights at non-prime 
times, which are the ones with low load factors and marginal profit- 
ability. Even though an airline may reduce its mileage substantially, 
it often does not free up any whole airplanes because of the 
competitive need to continue offering departures at the prime times. 
The net result is the same size fleet. However, with fewer hours 
being flown, there is a commensurate drop in utilization. 



692 



16. What major factors do you believe are responsible for the airline industry's 
low profit over the past few years? Do you believe that CAB policies 
contributed to, or offset, low profits? (Specify which policies and how.) 



There are at least five significant factors that have led to low industry 
profitability during the past few years: 



The single most important factor has been the large shortfall in 
actual traffic versus forecast. The slowdown in the growth of the 
general economy, beginning in late 1969, and the increasing rate of 
inflation, have directly affected the growth of airline traffic. 
In the past five years, domestic airline traffic has grown about 
20% in comparison with an increase of over 100% between 196A and 
1969. Unfortunately, traffic forecasts made by both the airlines 
and the governmental agencies (CAB and FAA) during the 1966-1969 
period were predicated upon a continuation of economic growth in 
real terms such as experienced during the mid-1960's. Overly 
optimistic forecasts impacted the industry in two ways: 

1) There is a long lead time on aircraft deliveries. Wide-body 
airplanes ordered between 1966 and 1969 under the assumption 
of continued traffic growth were delivered in the 1970-1972 
period. By the time the wide-bodies were delivered traffic 
had fallen considerably behind forecast, particularly on the 
long-haul routes for which the wide-bodies were originally 
ordered. (Attached is an exhibit submitted in Docket 22908 
showing the effect of the traffic shortfall in markets where 
American planned to use the B-747.) In addition to the costs 
of financing the new airplanes, the carriers also had to 
construct new hangars and terminals to accommodate the new 
generation of wide-body equipment. 

2) The cab's forecasting error led to it making numerous 
competitive route awards during the late 1960 's (the Hawaiian 
route awards being the most flagrant example) which helped to 
bring about low load factors when traffic did not live up to 
expectations. The seeming inability or unwillingness to defer 
or terminate route cases once instituted resulted in the award- 
ing of competitive authority long after it was quite evident 
that the traffic forecasts on which the awards were made were 
no longer valid. 



A second factor affecting profitability has been the airlines' 
inability as a group to resist the wage demands of its organized 
employees. Airlines are particularly susceptible to employee job 
actions because, unlike manufacturers, they cannot stockpile 
their product in anticipation of a threatened strike. In the 
event of a work stoppage, an airline's revenues fall to zero 
immediately. Even when the effects of a strike are offset by 
payments under the Mutual Aid Agreement, the pre and post-strike 
effects are still very damaging from a financial standpoint 
(e.g., note the difficulty National is currently having in trying 



693 



to regain its former revenue level). Airline wage settlements 
over the past several years have exceeded every other industry 
group. Between 1967 and 1972, the average annual airline 
employee's salary increased 53%, compared with a national 
average of 39%. 



In contrast with the 1960's, the industry has not been able to 
offset cost increases by further improvements in productivity. 
The completion of the transition from piston to jet aircraft has 
precluded continued productivity increases from this source. 
While the advent of wide-body aircraft was supposed to offer 
further productivity improvements, the potential has been largely 
negated by the spiraling inflation and the lack of traffic 
growth. Costs on an available-seat-mile basis have not been 
significantly lower on the wide-bodies than on narrow-body 
aircraft. Consequently, in order to improve productivity, the 
wide-bodies must operate at load factors equal to or higher than 
the narrow-bodies they replace. 



Given the procedural steps by which fares are regulated, it is 
Inevitable that there will be some delay before increased 
operating costs can be recognized and fare increases permitted 
to take effect. Unfortunately, there have been instances where 
fully-justified fare increases have been unnecessarily delayed 
for political or other reasons. In these cases, "regulatory lag" 
has hurt the carriers by denying them needed revenues to cover 
increases costs. 



The nature of airline economics has also contributed to low 
profits. As mentioned above, an airline cannot put its unused 
seats "on the shelf" and sell them another day. The airline 
seat is a perishable product. Once the plane leaves the gate 
the revenue value of the empty seats is lost forever. This 
basic fact has led to a willingness to accept less than full 
value for a seat in order to fill it. In some cases, it has 
resulted in a proliferation of promotional fares which have 
not generated enough new passengers to offset the yield dilution 
from those passengers who would have traveled anyway. The lower 
yield pushes the breakeven load factor higher and makes the 
competition for traffic even more intense. 

A second fact of life is that the major competitive weapon in 
the airline industry is frequency of departures. As departure 
frequency is so important in determining market share, it can 
lead to the provision of additional and unnecessary flights 



694 



based on an analysis of incremental revenues and costs. While 
an "added cost" departure may make sense for an individual 
carrier, when the practice is employed on an industry-wide basis 
it will result in lessened profits or increased losses. It is 
this destructive frequency competition that American and several 
other carriers have sought to offset by entering into capacity 
restraint agreements. Carriers are reluctant to reduce capacity 
unilaterally as it usually results in a more than proportionate 
loss in share of traffic. The capacity restraint agreement 
offers the advantage of reducing industry capacity to a level 
commensurate with demand through multilateral cutbacks, thus 
eliminating the fear of a carrier about losing a disproportionate 
share of market if it acted alone. 



695 



ArrsericasiAirlsrB®s 



Docket 22908 
Exhibit No. AA 18 
Pago 1 of 1 Page 



CAB WIDE-BODY STUDY 
(CONDUCTED IN 19 69) 

INDUSTRY TRAFFIC GROWTH IN MARi'.ETS IN WHICH CAB 
ANTICIPATED AMERICAN AIRLINES TO INTRODUCE B-747 



Five Year Industry Traffic Grov?th 

1962-1967 1967-1972 1967-1972 

Actual C.A.B. Actual 

Forecast 



Markets 



New York-Los Angeles 

New York-San Francisco 

Chicago-Los Angeles 

Chicago-San Francisco 

New York-Chicago 

Boston-Chicago 

TOTAL WIDE-BODY MARKETS 



1057o 


85% 


21% 


132 


93 


18 


109 


55 


12 


130 


73 


1 


69 


35 


23 


88 


64 


28 


1067« 


73% 


18% 



Source: CAB & D surveys for indicated years; Impact of New 

Large Jets on The Air Transportation System, 1970-1973, 
CAB, November, 1969. 



696 



During a recent CAB proceeding an industry witness testified: "If a 
carrier were absolutely certain that the CAB would allow it to go 
bankrupt before it were given any relief, then I believe you would see 
some action taking place in eliminating marginal capacity (excess 
capacity)." Do you agree with this statement? Why? Do you believe 
that the CAB's load factor standards would be more effective in 
controlling load factors if the CAB were less concerned to prevent 
airline bankruptcy or reorganizations? 

The above quote was by American's witness in the Capacity Reduction 
Agreements case (Docket 22908). It is important to read this excerpt 
from our witness' testimony in the full context of the cross- 
examination, and we have attached the relevant pages of the transcript- 
Mr. Malin points out that under the described circumstances carriers 
"probably would cut capacity first of all, in markets where the fare 
structure is such that it doesn't cover the basic costs." In other 
words, the airlines would make their reductions in the marginal and 
loss routes first and the profitable routes last. Later on in his 
testimony (attached) under a different cross-examination, Mr. Malin 
pointed out that American gave serious consideration to abandoning the 
New York-Boston and New York-Washington markets when it was forced to 
make cancellations in response to the imposition of fuel allocations. 

Under the assumption that the CAB is no longer very concerned about 
the financial solvency of the industry, it can no longer expect the 
airlines to accept the policy of cross-subsidization. As long as 
the cross-subsidization principle is followed, the airlines have a 
right to expect to earn an adequate return on investment providing, 
of course, they operate in an economic and efficient manner. 

If the Board were to regulate the industry as though it were possible 
for the airlines to make a profit in each and every market (i.e., 
implement an absolute load factor standard without changing the fare 
structure), the result will be that the airlines would abandon those 
markets where due to the fare structure, revenues simply do not cover 
costs at the standard load factor. Inadequate service to small 
cities and on short-haul and monopoly routes will soon follow. 



697 



BY MR. FARIiER: 

Q Mr. Malin, I v/ould like to show you a document 
v\iich is marked Exhibit AA-IR-100, page 548. It is a memoran- 
jvun with your name at the bottom, and addressed to Mr. G. E. 
Overbeck. 

Would you read paragraph three aloud, please. 

A Okay, this is dated October 25, 1972. I say to 
Mr. Overbeck on page 9, "You dismiss load factor standards as 
teing the answer. I am inclined ro agree, although I am not 
certain that we can prove this is so. If the airlines really 
V.new that the Board v;ould not approve any more fare increases 
until the load factor standard is achieved, no matter how 
desperate v/e becom>e , I wonder if we r.ight not se3 zott.h 
effective unilateral action on the part of airline managements. 

Q And that memorandum does discuss capacity controls; 
isn't that correct? 

A Yes, sir. Mr, Overbeck, who is at this time our 
general counsel, had written one of many papers discussing 
the capacity agreements in general, and in theory. 

Q Could you tell me what kind of unilateral action 
you're speaking of in that m.emorandumi? 

A Yes, I'm saying that if the carrier, if a carrier 
^Gre absolutely certain that the CAB would allow it to go 
^-^inkrupt before it •.-.■ere given any relief, then I believe you 
-culd see some action taking place in eliminating marginal 



698 



capacity. 

Q Do you mean excess capacity? 

A Yes, excess capacity. 

Q Do you still believe that? 

A Yes, I believe that. 

Q Is the trouble with the Board's load factor 
standards simply that the carriers do not believe the Board 
will carry them out, carry out the standards? 

A I would say that it is my own impression is that 
the carriers do not believe that they will go bankrupt 
without some action on the part of the Board. 

Q I'm sorry; could you read the answer back, please? 
ADM. LAV7 JUDGE SEAVER: That we will — the 
carriers do not believe they will go bankrupt without the 
Board taking some action. 

THE WITNESS: Taking some action, positive action. 
ADM. LAV7 JUDGE SEAVER: Bailing them out. 
BY MR. FARTIER: 

Q So if there v;ere no possibility of a bail-out, do 
you believe load factor standards would be effective? 

A I'm not sure really it would be the load factor 
standard. It would just be the self-interest of managerr.ent 
to try to recoup in some way. 

Q So that if carriers believed that the Civil 
Aeronautics Board would not grant a fare increase in order to 



rirevcnt a carrier bankruptcy, they would be considerably 
^lore restrained in expanding their capacity? 

A Yes, that is my own personal belief, that the 
problem that I think we face and the Board faces is that you 
have this unequal situation in the industry where some carriers 
are very profitable and some are not so, and the carrier that 
is in the unprofitable situation, in responding to an action 
by a profitable carrier, may still be acting in his own selfish 
best interests. In the situation tliat v;e ' re describing here 
where the Board would not care if several carriers just went 
out of business, I believe that there would have to be more 
restraint on the part of management, just mere survival v.-ould 
force management to take some action. 

They might still go bankrupt, but they would make 
a last desperate attempt to sell airplanes, cut capacity, 
abandon markets. 

Q And they would conduct their business — they v;ould 
restrain or reduce their capacity on a long-term basis, as 
long as both their anticipation of the Board's policies 
continued, would they not? 

A Yes, I think so. They probably v/ould cut capacity, 
first of all, in markets v;here the fare structure is such that 
it doesn't cover the basic costs. 
Q Thank you. 
{ MR. FARI^IER: Your Honor, I v/ould like to ask that the 



67-378 O - 76 - vol. 2-6 



700 



THE WITNESS: In certain ones. 
BY MR. KUTZKE: 
Q Yes. 

Mr. Malin, for v.'hat reason would you retain 
higher capacity in the transconcinental markets? 

A Because we would have been having to make our 
decision in the atnosphere of not kn.ov/ing v;hat our cor.petitor 
would do; consequently we v;ould have been unwilling to take 
the risks associated with cutting back to the levels v.-e actuallj 
did. 

If you v;ill allow me to expand this conversation 
into the 20 markets — 

Q Yes. 

A We would not, it is my belief, have cut Boston/Los 
Angeles do\-m to one flight if v.'e did not have the assurance 
that TWA also would cut to one flight. We v;ould have 
maintained som.ehov; tv;o flights in the market, and the v.'ay 
we would have done that is by having to make our cancellations 
in some other markets in order to reduce our fuel consumption. 

In other words, there v;ould have bsen some bare 
minimums in these m:arkets below which v;e could not have 
considered going absent the sicting dov;n and negotiating the 
v;ay v;e did . 

Q Hov; v;ould youhave c^^osen those other markets? 

A On the basis of profitability, probably. 



701 

I'll give you a for instance. I gave very serious 
consideration to abandoning all service New York/Boston, 
Nev: YorkA'ashington. 

Q On the basis of profitability? 

A On the basis that the fare does not cover the cost, 
we would just get out. 

ADM. LAW JUDGE SEAVER: Could you do that? 
THE WITNESS: Yes, sir. 

ADM. LAW JUDGE SEAVER: Under your certificate? 
THE WITNESS: Yes, sir. It is not an individual 
segr.ent that requires CAB approval. 

We didn't do that. • 

ADM. LAW JUDGE SEAVER: No, I understand. 
(Laughter.) 
BY MR. KUTZKE: 
Q Would profitability have been the only factor 
in the choice? 

A No, I think if we could have identified markets, 
again, let's use the term monopoly market where we could 
have controlled the traffic over another routing, I think they 
would have qualified. 

Could you give me a for instance? 

A Yes, let's assume we had been at this time flying 
El Paso/Nev7 York nonstop, which v;e weren't. We haven't since 
the divorce trade fell off, but say we v/ere, v;e probably, you 



702 



might have considered canceling the nonstop because there's 
no one else I think who could provide single carrier service 
New York/El Paso; that is American Airlines' monopoly. 

So by canceling the nonstop, we v/ould have saved 
the fuel associated with that trip and thereby forced the 
passengers either to travel v/ith American via a connection at 
Dallas, or through Dallas or they would have had to go up to 
Chicago somehov/ on Continental and then connect. I think that 
would be an example. 

Q Under the fuel agreement then, if I understand your 
testimony, you would concentrate your cuts in agreement markets 
and monopoly markets in preference to cuts in markets where 
you competed with other carriers or v;hich were profitable. 
A No, sir. 

MR. FAHY: I object. 

THE v;iTNESS: You're putting several thoughts 
together in one sentence. What I said was in the absence of a 
fuel agreement, cuts would be made. The same type of analysis 
we do everyplace else: What can we do that will have the 
least impact on the bottom line of our profit and loss 
statement. The routes that we would tend to cut first v;ould 
be those which were outright losers and those where even after 
we made the cut v;e could have a fair chance at retaining a 
portion, maybe a significant portion of the revenue. 

The point I've been trying to make is that the fuel 



703 



agreements permittod us to make the cuts in markets which were 
characterized by excess capacity, thus making unnecessary cuts 
that would have been more injurious to the general public, 
for instance, Aip.erican abandoning service New York/Washington. 



704 



Are your costs higher than, equal to, or lower than the industry 
average? By how much? Why: 



The attachments indicate American Airlines' costs relative to 
the industry and the Big Four. Industry is defined in our 
analysis as the domestic trunk carriers excluding Pan American. 
The Big Four is the combination of Eastern, Trans World, United, 
and American. Data are shown separately for the system and 
domestic operations. 

Direct flight expenses are expressed in cents per available seat 
mile (ASM) and cents per available ton mile (ATM) . These costs 
are shown in absolute amounts for the Trunks, Big Four, and 
American and the percent difference of American from each of the 
other two groupings. 

Total operating expenses are expressed in cents per revenue ton 
mile. These costs are also shown in absolute amounts for each 
of the three groups and the percent differences of American from 
each of the other two. 



705 

Di rect: Fllrh', - Expcnsof 
12 Months Enderl 





■ __ 12/73 

^/ASM c'/ATM 


3/74 

C-/ASH c^/ATM 


6/74 

(?/ASM e/ATM 


9/74 




£_/ASM £/ATI'1 


Syslrpi 
















Trunks 


1.71 


IK 50 


1.81 


12,15 


1-.93 


12.96 


2.04 13.73 


r-in A 


1.80 


11.93 


1.91 


12.66 


2.05 


13.58 


2.19 1/1.57 


/,iV 


1,86 


11.48 


1.95 


12.07 


2.07 


12.83 


2.15 13.37 


Dopiostic 

Trur.ks 


1.75 


11.82 


1.84 


12.44 


1.95 


13.21 


2.05 13.90 


Bis 4 


1.84 


12.25 


1.95 


12 . 94 


2.07 


13.82 


2.20 14.72 


AA 


1.88 


11.62 


1.98 


12.19 


2.09 


12.94 


2.17 13.46 



Vo D iffe re nce AA v s. Tn.ink & Big Foui 



S;^^em 

Trunks +8.42 - .19 +7.79 - .65 +7.08 -1.05 +5.12 -2.66 

Big 4 +2.94 -3.81 +1.95 -4.70 +.90 -5.56 -1.95 -8.23 



Big 4 +2.15 -5.13 +1.70 -5.79 +1.12 -6.35 -1.15 -8.53 



706 

Tot r^^I^ Or>e.rat ^x^ z pi^^^n & '. 



12 lloaths Ewied 



3/74 6/74 9m 

T^al^ S3. 77 53.59 57*89 

Big 4 54.35 56,43 53.S3 

AA 56*35 57*33 ^^49 

T^ST©* 55,60 57,27 59.35 

Bis 4 56*29 58,D9 66.11 

M 57,95 58*80 59.89 



% X>lt£er^tncB M vs. -Trunk & Bi^ ?cH«f 



Systcsa 

Trunks 


h4,87 


4-3.17 


-M.04 


Els 4 


+3.75 


+1.63 


• .56 


I>onft3tlc 


-r4.24 


+2*67 


- .91 


Eta 4 


•f2.97 


+1.22 


- .37 



707 



IN'FOPJ-IATTON TO ANSWKR SHM. KKMKEDY'S QU E STTOMNAIR E 



ItCTi 19 - List your advertising, other proraolion, and office rental 
costs, absolutely, and as a percentage of total costs, for 
each year ior the past five years. 

Dollars in Thousands 









Total 1/ 




Other 


Office 
Ronta] y 


Year 






Advercisins 


Promotion 


197^1 


Est, 


3/ 


?1, 595, 064 


$ 23,097 


$ 2,851 


% 'il,l\^ 


1973 






1,518,764 


27,907 


3,414 


32,420 


1972 






1,318,047 


24,098 


6,318 


31,762 


1971 






1,215,689 


25,064 


3,440 


24,666 


1970 






1,140,644 


24,145 


3,804 


18,758 


Percent of Total Cost 








1974 


Est, 






1.4% 


0.2% 


2.3% 


1973 








1.8 


0.2 


2.1 


1972 








1.8 


0.5 


2.4 


1971 








2.1 


0.3 


2.0 


1970 








2.1 


0.3 


1,6 



\l Excludes Interest and Miscellaneous 

2^/ Office Rental: Includes all facilities and space rental. 

3/ 1974 Est.: November, 1974 year to date factored to 12 months, 

except total which is November, 1974 year to date plus December, 
1974 Forecast. 

Sources: Total: Annual Report less Interest and Miscellaneous, 

Expense Items: General Ledger/Year Book, 



Corporat' 
I//'! 3/7', 



708 



20. Assuming that all scheduled flights remain unchanged what is the 
additional cost of carrying one extra passenger on a flight? 



The table below indicates the approximate incremental costs of 
carrying one additional passenger on a scheduled domestic flight. 
The data are presented in a manner that will enable the costs to 
be constructed for trips of any segment length: 

a. The terminal portion of the costs apply for each passenger 
notwithstanding the length of the trip. The incremental 
costs are comprised of expenses for reservations, ticketing, 
and baggage handling. 

b. The line-haul portion of the incremental costs are 
dependent upon the distance traveled and reflect the cost 
for each mile flown for each passenger. The incremental 
costs are comprised of expenses for passenger and catering 
supplies, passenger liability insurance, commissions to 
agents, interrupted trip expense, denied boarding compen- 
sation, and injuries, loss, and damage expense. 

The use of incremental costing is valid for some purposes, e.g., 
evaluating the "profit impact" of a short-lived promotional fare. 
However, over the long term no passenger is incremental and 
airline revenues must be sufficient to cover all costs including 
return on investment. Consequently, we have also shown the fully- 
allocated costs per passenger, including a return element, in the 
table below: 



Domestic Passenger Costs 

Incremental Fully-Allocated 

Terminal ^5^^ $25.24 

(Per Passenger) 



Line Haul 

(Per Passenger Mile) 



0.70c 5.71c 



709 



21. Please answer the following questions in respect to each of 

the following markets: San Francisco/Hawaii, New York/Hawaii, 
New York/Los Angeles, New York/Atlanta, Chicago/New York, 
New York/Miami, Boston/Washington: 

a. What are your costs per flight, (1) determined on a 
"fully allocated cost basis, (2) determined on a DOC 
basis (as used by the CAB), (3) determined on an 
"incremental cost" basis (what do you include in 
"incremental cost")? Determine these costs insofar 
as possible both on a "seat-miles" basis and on an 
RPM basis. 

b. What are your load factors in each of those markets? 



Attached are statements of: 

a. Fully-allocated, direct-operating, and incremental 
costs for selected segments, and 

b. 1974 monthly load factors for selected segments. 



710 



AMERICAN AIRLINES, INC 
FLIGHT COSTS ON SELECTED SEGMENTS 1/ 





Cost Per 
Round , 
Trip 2/ 


Cost Per 
Seat Mile 


Cost Per 

Passenger 

Mile ll 


Fully Allocated Costs 








New York-Los Angeles 
Chicago-New York 
Bos ton-Washington 


$21,683 
6,974 
4,891 


3.290 

5.23 

6.74 


5.990 
9.50 
12.25 


Direct Operating Costs 








New York-Los Angeles 
Chicago-New York 
Boston-Washington 


$10,317 
3,019 
1,841 


1.57C 

2.26 

2.59 


2. 850 

4.11 

4.61 


Incremental Costs 4/ 








New York-Los Angeles 
Chicago-New York 
Boston-Washington 


$15,172 
5,038 
3,601 


2.30c 

3.78 

4.96 


4.190 ' 

6.87 

9.02 



1/ Based on 1973 unit costs increased by industry cost 
increases of 11.56% to June, 1974. 

2l B707-100 aircraft (133 seats) New York-Los Angeles ^ 
B727-100 aircraft ( 91 seats) on other segments. 

3/ Passenger miles at 55% load factor. 

4/ Total costs excluding Depreciation^ Sales and Advertising 
and General and Administrative Expense and Return on 
Inves tment . 



711 



1974 LOAD FACTORS 





New York - 


Chicago - 


Boston - 


Boston - 




Los Angeles 


New York 


Washington 


Detroit 


January 


66% 


64% 


51% 


54% 


February 


65 


60 


58 


53 


March 


54 


60 


57 


58 


April 


56 


63 


64 


64 


May 


56 


64 


60 


67 


June 


62 


70 


56 


67 


July 


57 


62 


48 


58 


August 


66 


65 


54 


63 


September 


56 


63 


57 


59 


October 


53 


63 


64 


59 


November 


47 


60 


59 


53 


December * 


51 


58 


53 


52 



* estimated 



712 



List the routes including international routes that you have applied for 
CAB permission to serve in the last five years. Indicate those routes 
where the CAB has granted permission. Indicate those where the CAB has 
denied permission. Indicate those where no action was taken by the CAB, 
along with the ultimate disposition of the application. As to each 
application, indicate the date of filing and the date of ultimate 
disposition along with the dates of any hearings held. Do you believe 
that Board actions on your route applications have generally been 
expeditious? If not, to what do you attribute the delay? 

Attached is a listing of route applications filed by American in last 
five years. 

In general, the Board attempts to handle route applications in an 
expeditious manner. The usual causes of delays are the workload of 
the Board and its staff and the requirement that all parties be given 
their legal right to due process. 



713 



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715 



23. Are there routes which you would consider entering if CAB approval 
for entering were not required? Which? Describe your reasons for 
considering entry to the extent you wish to do so. Does the CAB's 
entry policy inhibit your flying new routes? If so, describe how? 



American would consider entering into any market which we believed 
could make a positive contribution to our net profit. Candidates 
for consideration would fall into the following three categories 
(not necessarily mutually exclusive) : 

A. Routes which offer immediate profit potential - 

These would probably exhibit two of the three following 
characteristics : 

(1) Long-haul 

(2) High traffic density, and 

(3) Either weak competition or 
inadequate non-stop service. 

B. Routes which would strengthen our marketing position in a city - 

American's authority to serve Houston and San Francisco is 
significantly inferior to our major competitors. By expanding 
the number of points we serve out of these cities, we would 
increase public awareness of American. We could also justify 
increased promotional efforts which, combined with an increase 
in service, would enhance our market identity with a resultant 
beneficial "rub-off" effect on our existing flights. We would 
be particularly interested in introducing service from these 
points to cities where we are already well-established. For 
instance, we might enter the Houston to Los Angeles, Chicago 
and New York markets, and the San Francisco to Boston and 
Washington markets. 

C. Routes which would provide additional traffic support - 

American operates major connecting complexes at both Chicago 
and Dallas. We would consider entering markets which would 
increase the number of connecting passengers utilizing our 
various services. For instance, by entering the Cleveland - 
Chicago market, we would be able to use Cleveland traffic to 
support our flights from Chicago to points in California, 
Arizona, Texas and Mexico. 



67-378 O - 76 



716 



24. Would you charge lower fares than those now being charged on 
any route if you were free to enter and to set lower fares? 



Even under the dual assumptions of deregulation of fares and 
a permissive entry policy, it is very doubtful that American 
would follow a policy of immediately lowering fares upon enter- 
ing a new market. 

In the past, it has often been a popular ploy for an applicant 
carrier seeking new authority to serve a route to promise that 
it would offer lower fares if certificated. History has shown 
this approach to be largely sham. In the long term, no carrier 
can offer its services at below cost and continue to provide an 
adequate level of schedules to the public. The incumbent 
carrier (s), faced with the prospect of a new competitor offer- 
ing a lower price, will obviously meet the new fares and may 
even reduce them further in an effort to increase the financial 
penalty on the new carrier in hopes of driving it away from the 
market. As the incumbent carrier will not be undersold, the 
ultimate result will be a declining level of service or an 
increase in fares after either the new or old carrier is driven 
out of the market. 



717 



25. Are you involved in any route purchase or exchange proceedings? Which routes? 
Involving which carriers? How much would you be willing to pay for each of 
such routes? Would fares be sufficient to cover purchase costs? In your view, 
should such purchases or exchanges be allowed without full comparative hearings? 

American has pending the following route exchanges: 

1. American/Pan Am - Docket 26245 

Routes to be Exchanged 

American Receives Pan Am Receives 

Boston-Bermuda New York/Newark-Hawaii/South Pacific 

(non-stop) (non-stop, long-haul restricted) 

New York/Newark-Bermuda Chicago-Hawaii/South Pacific 

(non-stop) (non-stop, long-haul restricted) 

New York/Newark-Barbados Dallas/Ft. Worth-Hawaii/South Pacific 
(non-stop) (non-stop, long-haul restricted) 

New York/Newark-Santo Domingo Washington/Baltimore-Hawaii/South Pacific 
(non-stop) (non-stop, long-haul restricted) 

Hawaii-American Samoa/Fi j i/Australia/ 
New Zealand (non-stop) 



American/Frontier - Docket 25397 

Routes to be Exchanged 

American Receives Frontier Receives 

Albuquerque-Dallas San Diego-Phoenix 

(non-stop) (non-stop) 

Albuquerque-Las Vegas San Diego-Tucson 

(non-stop) (non-stop) 

Dallas-Las Vegas 
(one-stop) 



718 



American/Alrwest - Docket 25881 

Routes to be Exchanged 



American Receives 



Airwest Rec e ive s 



Los-Angeles-Salt Lake City 
(non-stop) 



Los Angeles-Palm Springs 
(non-stop, turnaround) 



Palm Springs-Las Vegas 
(non-stop) 



Las Vegas-Salt Lake City 
(non-stop) 



Phoenix-Houston 
(non-stop) 



Phoenix-San Antonio 
(non-stop) 



Houston-San Antonio 
(non-stop) 



Tucson-Houston 
(non-stop) 



Tucson-El Paso 
(non-stop) 



El Paso-Houston 
(non-stop) 



It is believed by the parties to the above agreements that approval will 
benefit the carrier parties and the public. 

Under current administrative procedures, it is believed that a hearing on 
these agreements is required. The hearings should be and were expedited 
by the Board. All of these agreements are now awaiting the Board's 
decision. 



719 



26. If you have excess capacity, can the extra planes be leased 
or sold elsewhere? At a loss? 

When excess capacity exists, leasing surplus aircraft is 
difficult. Each carrier has its own distinctive cockpit 
configuration and aircraft systems. In order not to 
compromise safety, it is necessary to modify an aircraft 
which is to be leased to the same configuration as that 
used by the leasing carrier. This is expensive and 
generally precludes leasing. Overseas leasing frequently 
presents additional problems since many countries require 
ownership and registration of the aircraft in the country 
of the operating carrier. 

The sale of currently economic surplus aircraft is common 
among U.S. carriers. Most sales are made to foreign 
carriers and in the past have been made, in most instances, 
at a profit. 



720 



27. Identify any routes which are certificated to you but on which service 

has been suspended. Do you have any present intention to resume service? 
When? Why were these services discontinued? Should other airlines be 
given the option of flying these routes? 

American's only routes under suspension are the Hawaii/South Pacific 
routes to be traded to Pan American (see answer to question 25.). This 
suspension is temporary. 

We intend to resume service over these routes as soon as feasible, if 
the Board disapproves the route exchange agreement with Pan American. 

These services were temporarily suspended in order to give Pan American 
the immediate benefits stemming from the elimination of American's 
competitive service in the South Pacific. 

Since one of the basic factors motivating the American/Pan American 
route exchange was to reduce competition in the South Pacific for the 
benefit of Pan American, it would not be logical to substitute service 
by another U.S. carrier. If the agreement is approved, and if it can 
be shown that competition by another U.S. carrier is required, the Board 
and the President can authorize this competition. 



'21 



di o 

o a) 



o <r 
o" 



o" o" 



9. -1^ 



s ^ 

O PL, . 






722 



/ Subcommittee note.— ^Questions 29 and 30 are not applicable 
to American Airlines. _/ 

31. If the CAB certificated a number of new trunk carriers over dense 
traffic routes, what effect would such certification have on the 
industry? On your company? 



To answer this question fully, further clarification of what is 
meant by "dense traffic routes" is necessary. There are a number 
of short-haul "dense" routes where carriers are certificated but 
have not chosen to offer service. For example, United does not 
schedule non-stop flights in the New York-Buffalo market. Eleven 
carriers are authorized to provide New York-Washington non-stop 
service, but only American and Eastern provide a significant 
number of flights. Because the CAB policy of cross-subsidization 
results in a fare structure that is not fully compensatory in 
markets of less than 400 miles, the difficulty of achieving a 
profit could well preclude carriers from offering service even 
if additional ones were certificated. 

On the other hand, in long-haul, "dense" markets such as New York- 
Los Angeles, there is little question that a newly-certificated 
carrier would inaugurate non-stop service with an immediate and 
harmful effect on the profitability of the carriers presently 
serving the market. The natural reaction of the incumbent 
carriers would be to maintain their current level of service 
with the result that in total, too much capacity would be offered 
in the market. Unless one or more of the carriers were willing 
to take unilateral action to reduce the level of capacity, the 
inevitable result would be lower profits for the carriers involved 
and the Industry in total. 

An objective analysis of both dense and less dense traffic routes 
leads to the conclusion that there are really only a handful of 
markets which can justify the certification of more than two 
non-stop carriers. It certainly can be argued that monopolies 
should not be tolerated as they can lead to inadequate service 
in terms of numbers of non-stop flights and/or the convenience 
of departure times. However, not every monopoly situation needs 
immediate certification of competition, as there are plenty of 
examples where a monopoly carrier is providing more than adequate 
service to the public measured in terms of frequency of departure, 
choice of departure time, and overall load factor. American fully 
supports the value of competition in the airline industry. However, 
we do question what benefits accrue to the public in most markets 
from certificating a third or fourth carrier which have not already 
been achieved by authorizing a second carrier. 



723 



32. What would the effect of a "permissive" entry policy be upon the 
behavior of carriers in the industry? 



If the Board were to adopt a policy of "permissive" entry, 
it would also by implication be abandoning the concepts of 
certificate obligation and cross-subsidization. Therefore, 
the almost certain result would be the abandonment of service 
to small cities and in the many short-haul markets where the 
fare structure does not permit profitable operations and/or 
an acceptable return on investment. 

There would be a decline in single-carrier through and 
connecting schedules in the many secondary markets which 
cannot support non-stop flights. The Government would 
undoubtedly be called upon to subsidize operations in those 
short-haul and/or low-density markets where service had been 
abandoned by the carriers. There would be excessive 
competition in the longer-haul markets where a combination 
of the fare structure and long-haul operating efficiencies 
offer the prospect of lower breakeven load factors and thus 
the potential of satisfactory profits. 

Over time, a permissive entry policy would result in the 
bankruptcy of weaker carriers that would not be able to 
withstand the scheduling (and pricing) "wars" that would 
inevitably characterize prime markets. Low-cost carriers 
would drive out the higher-cost carriers by increasing 
schedules and/or lowering fares to the breakeven point. 
Once competition had been driven out of the market, the 
remaining carrier would have a monopoly and would probably 
cut back service and raise fares to their former levels. 



724 



33. If you serve markets entirely within California or entirely within 
Texas, have your flights within those states been profitable? Have 
they been profitable on a fully allocated cost basis? On a DOC basis 
(per CAB)? On an incremental cost basis? What do you include in 
incremental costs? Have you met the fares charged by PSA and SWA? 



American's route authority to serve markets entirely within Texas 
and California is highly restricted. Consequently, American is 
not a significant competitive factor in the local markets. The 
basic traffic support for our intrastate routes comes from inter- 
state passengers. Pure intrastate traffic offers only minimal 
support. 



725 



34. How do you decide how much capacity to offer in a market? What 

frequency of service to offer? Which markets to promote heavily? 
Who makes these decisions? 



The level of capacity in a market is determined by a number of 
factors: 

1. The size of the market itself — Can it support non-stop 
service at all? Can it support more than one non-stop 
flight a day? 

2. Availability of other traffic flows — Is it a route over 
which through and connecting traffic moves, thus increasing 
the availability of traffic to support non-stop service? 

3. Profitability — How many passengers do we need on each 
flight to cover our costs? 

4. Competition — How many flights does the competitor offer 
and at what times of day do they depart? 

Markets chosen for promotion tend to be those where it is thought 
there is a possibility of generating incremental profits, either 
by encouraging people to fly who would otherwise not make the trip 
or by encouraging people to switch to American from another carrier. 
Advertising decisions are made tinder the direction of the 
Vice President - Passenger Sales & Advertising, and scheduling 
decisions are under the direction of the Vice President - Marketing 
Resources. Both of these men report to the Senior Vice President - 
Marketing. 



726 



35. How many different classifications of inflight 
service do you provide? (How many different 
sorts of, e.g., first class service? How many 
different sorts of economy service, etc?) 

We have 19 different levels of service in our 
system. This includes our international 
flights. These various services relate mostly 
to length of haul, although considerations are 
given to competition and other factors. 
(See Attachment) 

36. How do you decide on which routes and which 
flights to offer a particular classification 
of inflight service? Who makes these decisions? 

The determination on the level of inflight 
services is based on length of the flight, load 
factors, fares, type of aircraft, competitive 
services and other variables. 

The service is recommended by the V. P. of 
Food and Beverage Services and approved by the 
V.P. Passenger Services and the Senior V. P. of 
Marketing. 
(See Attachment) 



727 



At tachment to Questions 35 & 36 



Stereo ' 

Policy: Headsets will be offered on non-stop segments of 
three hours block-to-block time except on appli- 
cable segments into Mexico and the Caribbean. 

Exception: When movie shorts are offered, stereo can be 
heard through separate channels. When shorts 
are shown, it is normally on a flight of two 
hours duration or longer. There is no charge 
for headsets used on stereo flights. 



II. 



Policy: Full Length Features - will be shown on non-stop 
transcontinentals between Boston-New York-Newark- 
Philadelphia-Washington-Toronto on the East Coast 
and San Diego-San Francisco and Los Angeles on the 
West Coast when the flights leave between 1200 and 
2159 local time. This includes Continental USA- 
Hawaii flights as well. Movies are not shown on 
the Caribbean segments nor into or out of Mexico. 
A $2.00 headset charge is made in coach cabins. 
Headsets are free in first class. 

Short Subjects - 

a) Film (707/747) - shown on flights of two hours 
or longer over selected flights within selected 
segments. 

Hours of show: with morning originations 

beginning 0730 thru to the start 
of flights with night coach 
fares (normally 2100). 



b) Tapes (DC-10) 



shown on all DC-10 flight 
segments of two hours or 
longer between morning 
originations (0730) and 2159. 



c) Short subjects are not shown on segments 
involving Mexico or the Caribbean. 

Headset rental charges are not applicable 
to any "shorts" flight. 



Ramp Services recommends policy and the 

V. P. Passenger Services make final decision 

on recommendations. 



728 



'1 



1. "CoutiricMiLal Brookrast" wi.ll bo used fo -ye^j.gr.?.' .: .I'.al cor.r.is cing of 
either a fruit juice or fruiL cup appet.ii:c;r , hcv-^ r :::■■(: , and iuuie type of 
sweet roll or cake selection. 

2. "Breakfast" will be used to designate a meal coaGiscing of either a fruit 
juice or a fruit cup appetiser, beverage, sweet rcll or cake, and morning- 
type entree. 

3. "Champagne Brunch" will be used to designate a nu'ui consisting of a 
"breakfast" menu offering ewtroe selection with a coKpliment of champagne 
service plus Bloody Mary or lirjuor service. 

4. "Lunch" will be used to designate a meal consistins of a salad, an entree, 
a dessert, and a beverage. 

5. "Dinner" will be used to designate a meal consisting of an appetizer, 
a salad, an entree, a dessert, and a beverage. 

6. "Snacks" will be used to designate a between meal offering consisting of 
sandwiches, 

FOOD SERVICE SCHEDULING 

1. Breakfast 

If flight originates between 0200 and 0900 and terrainates after 0545 and the 
schedule time exceeds 60 minutes. 

If the flight meets the above requirements as to origination and termination 
but the schedule time is less than 60 minutes, a Continental style breakfast 
may be scheduled. 

2. Champagne Brunch 

Generally scheduled only on flights where a breakfast or lunch is not 
appropriate and on flights departing after 0900 and before 1100 where the 
schedule time exceeds 2 hours. 



On flights departing between 1200 and 1330 or if the flight originates before 
1200 and terminates after 1300 using time zone at point of departure and the 
schedule time exceeds 75 minutes. 

Snacks may be scheduled in lieu of lunch if the flight does not meet the 
above criteria. \ 



729 



3ection 1-1 
P. 5 

PAssT"::';'Fj< sEi;7iC!- manual 

Cauo-. >.g Service E'lition Feb 1-/4 



Dinner 

Scheduled on flights operating between the hours of 1730 and 1930 or if the 
flight originates before 1730 and terminates after 1900 using time zone at 
point of departure and the schedule time exceeds 90 minutes. 

Snacks may be scheduled in liew of dinner if the flight does not meet the 
above criteria. 



Will be scheduled only on an as needed basis. Some of the factors to be 
considered are: 1) Competition, 2) Length of flight, 3) Connecting and/or 
downline passenger requirements, 4) Passenger correspondence and Flight 
Attendants advice. The field should advise the General Office Food and 
Beverage Department of any of the above conditions. Generally, snacks 
will not be scheduled on flights under two hours, except where they replace 
a meal. 

6. Liquor Service 

When served, it will be free in First Class. Liquor will generally be 
scheduled as above, on flights departing after 1000 and before 0200 except 
where the schedule time exceeds two hours, i.e. New York-Los Angeles. 

Liquor service will not be scheduled on flights where the schedule time is 
less than 45 minutes. 

NOTE : 1. Termination times are only used in determining whether a food service 
applies to a segment when the flight departs before the authorized 
meal hour. 

2. All times indicated are local time at city of departure. 

3. This Food Service Scheduling Policy DOES NOT apply to flights with 
Transcontinental, Mexico or International (Pacific, Caribbean) Meal 
Services. 



'30 



Beverages are providf.-.l fcr servica as outl":> 
in both Fir;^t Class and Loach uuicss indicni 
Class bevera[,cs are cor.iplimentary ;ind all Ci 
for sale. 



'.olow. r'.i-.-y Jre ) 
otherwif.e. All I: 
1 alcoholic bever.'i, 



prf.-deparii'-'.f: f-cver/^.cks 



Policy: Pre-Jeparture beverages are provided c's elemenLt; of Firs!' I'.lass 
services as follows: 




tV" 



BEVERAGE 


SERVICE 


Champagne 


Transcon Brunch, Lunch, Dinner 
ORD-West Luncli, Dinner 


.*ant'Gria 


Caribbean Lunch, Dinner 
Mexico Lunch, Dinner 


Tropical 
Cocktail 


Pacific Services 


Egg Nog 


Replaces all of the above 
December 15 through January 1 


Skier's Drink 


All week-end service to/from SLC, 
January 2 through April 1 



IN-FLIGHT BEVERAGES 

COFFEE AND MILK 

Policy: Coffee and Milk are provided on all flight segments. 

SOFT DRINKS 

Policy: Soft Drinks are provided on all flights featuring cocktail 

services (see below) and on all other flight segments departing 
on or between the hours of 1000 and 0200. 



Policy: Cocktails (including liquor and beer items) are provided as an 
element of all Brunch, Lunch, Dinner and Snack services and on 
other flight segments where tho follov.-ing conditions exist: 



The scheduled departure is on or between the hours 
of 1000 and 0200. 



731 



COCKTAILS (cont'd) 



The scheduled flight time is 45 minutes or nor;. 
Exception : All "Jet Express" flights 'eat ir- 
cocktail services. 



Policy: Wine is provided as an element of Lunoh, Dinner, nn-A Miduiv.it Raid 
services on segments where the scheduled flight time is t '-■ -loars 
or more (in either direction). 



Policy: Champagne is provided as an element of all Brunch servicer and the 
following levels of Lunch and Dinner Services: 

Transcon 

ORD-West 

Caribbean 

Mexico 

Pacific 



Policy: Cordials are provided as an element of the following levels of 
service: 

Transcon Lunch and Dinner 

ORD-West Lunch and Dinner 

Deluxe Dinner 

Caribbean Dinner 

Mexico (ORD-MEX only) Dinner 

Pacific Lunch and Dinner 

SKIER'S DRINK 

Policy: Skier's Drink (Hot Buttered Rum) is provided in Coach on all 

week-end flights to and from Salt Lake City, January 2 through 
April 1. 



67-378 O - 76 



732 



37, We do not believe that size, by itself, determines 
airline efficiency, assuming that a minimal size 
requirement is met. Thus an airline twice our size 
or half our size should be able to operate as efficiently, 
assuming a free hand in structuring its organization, 
(This is not to say that mergers cannot improve 
efficiency. Such improvement is often a potential 
benefit of a merger proposal, but not because of size 
considerations alone,) 



733 



38. In what ways and to what extent do a) CAB reporting requirements, 
b) CAB ticketing requirements, c) other CAB requirements impose 
costs on your operations? (e.g., preventing simplified passenger 
handling or accounting procedures)? 



The attached extract from the CAB Uniform System of Accounts and 
Reports (Section 22) sets forth the general reporting requirements 
and instructions for all report filings with the CAB. Included 
therein is a schedule of required reports which specifies schedule 
number, report title, and filing frequency. 

Responsibility for the preparation of the above reports is vested 
in the Regulatory Reporting Group, a branch of General Accounting 
and Reports. This group is currently staffed by five full-time 
employees, as follows: 

1 Manager - Regulatory Reporting 

2 Senior Accountants 
1 Statistical Clerk 

I Statistical Typist 

The operating costs generated in this area are estimated to be 
(annual) : 



Salaries 


$ 72,000 


Employee Benefits 


14,000 


Stationery and Supplies 


1,000 


Allocated Expenses: 




Data Processing Costs 


46,000 


Administrative Review 


2,000 


Incidental Expenses 


1,000 




1136JD00 



In addition to the recurring charges outlined above, the Company 
experiences other one-time costs resulting from CAB inquiries, 
audits, and special requests. 



The CAB requires the quarterly filing of an "Origin and Destination 
Report". The compilation of this report requires a 10% continuous 
sample of passenger tickets. Routing data is extracted from the 
sample and forwarded to the CAB on a quarterly basis. The vehicle 
for submitting this repott to the CAB is magnetic computer tape. 

At present, a staff of five full-time clerical employees are 
responsible for the accumulation of data for the report. The 
estimate of operating costs for this group is as follows: 



734 



Salaries 


$40,000 


Employee Benefits 


8,000 


Stationery and Supplies 


1,000 


Allocated Expenses: 




Data Processing Costs 


13,000 


Administrative Review 


1,000 


Incidental Expenses 


1,000 




$64,000 



In addition to the recurring charges outlined above, the Company 
experiences other one-time costs resulting from CAB Inquiries, 
audits, and special requests. 



735 



Section 22 — General Repotting Sec. 22 

Instructions 

(a) Four copies of each schociule in the catod for each such schedule in the list 
CAB Foi-m 41 report shall be filed with titled "Due Dates of Schedules in CAB 
the Civil Aeronautics Board and shall be Form 41 Report." 
received on or before the due date indi- 



Schedule 
No. 


Schedule title 


Filing 
Frequency 








A-1 


Status of A"countliiK Dans RcQUlrcd to be Filed 


Annually 

Monthly 

Quarterly 

do 

do 


B-l . . . 


Bp.lance Shoot , 

Notps to Balimc-o Sheet 

Paid-in Cupilal; Pch"-In;urancc Reserve.- and Approprin'ions of 

RptoiiK^d F.:vrniii(s; Ut-'orred Incoi.ie Taxes. 
Robcrv.; for UiuoUoclilile Accounts: Accouuts with Subsidiaries, 

Other Aisociatod Companies and Noiitrnnspoit divisions. 


B-' 


11-3 -.. 


B 6 


do 








B-7vb)::::::". 

B R 




(') 

Quarterly 

do 






B-S(a)-- 


Flifht Kq'iipnicia Capital Gains Invested or Deposited for Rt-in- 
vestmc'it in Fli.'lit Kquipment. 

Inventorv of FUglit K(;uipnionl Spare Parts and Assemblies 

Dcvelcpinental and I'reoperatinp Co^t? 

StaloniLiit of Source and Application of Funds 

Suninxary ol Projected Financial Coniniitnicnts and Related 
Deposits. 

Suinin^rv of Property Obtained Under LonR-Terrn Leases 

Investrntnts II.M b.-, or fi.r the Account of, Respondent 

Acccunts iHO Shorl-T.Tm Prepaymenls, 1550 Special Funds- 
Other, 1«0 Lonf-Tcrm IVcpavn.enis, iShO Other Inlanfiiblss, 
ISOO Other Deferred Charpos, .-i/iQ other Deferred Credits. 

Inventory of Airh.-.mes ;md .\ircraft F.nsiines - 

Sujiiiiiary ol Resources F-xchatiped Aith Atniiatcd Group Mom- 
hcrs and Other Associated Companies. 

Lcn?-Tcr:n and Shorl-Tenn Nontr.ulc Debt 

Income, Siateinout— Group I Air Carriers 


(') 


B-10 

B-12 


Q'-iartc-ly 


B-13 

B-l 4 


— -Ido 

do -- . 


B-U 


Annually 

do 

do 

do 

do 


B42 

B-43 

B-4.1 

B-46. - 

P-1.1 




Income Statement --Group 11 and Group IH A\r Carriers 

Interim Income Statement. 


do 

Monthly 

Quarterly 

do 


P-Ua) 


P-2 .. . 


Notes to Income Statement 


P-2(a) 


Revenue Ma' kel Report . . 


P-3 

P-3(a) 


Tran.sport Kovenues: Depreciation and Amortization; Nonopcr- 
ating hicomo and lixpenso (uet). 


do 


P-4... 

P-5.1 

P-5.2 

P-5(a) 

P-6 

P-7 

P-8 


lHcideM'\al Revenues— Net: Explanation of Special Items; Ex- 
planation of Deferred Federal Income Tax Adjustmetits, Divi- 
dends Declared and Retained Earr.ings Adjustments. 

Aircraft Oiicrating Expenses— Group 1 Air Carriers 

Aircraft Operatmg Expenses- Group il aud Group III Air Car- 
riers. 

Components of Flight EquipTiicnt Depreciation 

.Maii;ten,irice,Pa;,-;en;:er ■•service, and (;r:e'ral Services and Adrain- 
ibiralion l.xpensc Fune;ions— AH Air Carrier Groups. 

Aircraft and 'Jralfic Srrvicu.p, Promotion and Sales, and General 
and Administrative Expense Functior.s— Group II and Group 
III Air Carriers. 

Aircraft and Trallic ServicinR, and Promotion and Sales Expense 
Sul.functions -Grou!) Ill Air Carriers. 

Distrilnii.oii c-f (;ro;md Servicing Expenses by Geographic Loca- 
tion- Ciroup 1 Air Carriers 

Distribution of Ciound Servicing Expenses by Geographic Loca- 
tion-Group 11 and Group lil Air Carriers. 

Payroll 


do 

do 

do 

do 

do 

dc 


P-9.1 

P-0.2 

P-10 


do 

do 


P-41 


1 Taxes '^. 


Ann-.ially 



(ER-809, 10-19-73) 



22-1 



736 



Sec. 22 



UNIFORM SYSTEM OF ACCOUNTS AND REPORTS 



Schedule 
No. 


Schedule lltlo 


Filing 
Frequency 


T-1... 

T-2 


Memorandum SubelassificatiOiV of-^olccted Repoiled Expoii'-is 

Trallicand Capn.citv .Stati^lifs iiv Class of Seivice 

Trallic Capo'.tv, Aircraft OiH-rations, aud Miscolinucous Sta- 
tistics by Typo" of Aircraft. 


Qu:.r:cr,y ...." 

.Monthly 

Quarterly 

do 


50 
•30 
>30 


T-3 


'30 


T-6 

T-7 

T-41 

G-41 

G-42 




do 


40 


Statistic;!; Market li^'poit 

Charier an(l Sp.ciul Services Revenue Aircraft Miles Flown; Cal- 
culation of Liiratation of Chr.rter Trips. .„ . , 

Persons ilcldiiic .More Thaa 5 per cer.tuu. of Respondent s Capita) 
Stock or (':;ijilal. 

Coiiipen.^atioi. -ir,.J Expen.<;e5 of All General Olficcrs and Directors 
and of .\Ii[.r.ten,et.t Personnel Receiving $a),(XX) o;- More Per 
Annum fi.r I'etbun d Services. 

CompensKtion and Kx'x-nses of Persons and Firms (Oth.T Than 
Director^. OlTioers and Employees) Receiving SS.OCO or More 
During the Calendar Year. 

Corporate and Securities Data 


Monthly 


30 




:30 


do 

do 

do 


00 


0-13 

a-44 


90 

yo 



In accordance with the provisions of §§ 235.4 and 235.5 of Part 23.5 of this subchapter. 
• For tlip first 3 months and for the 12 months of each calendar year. 
Interval relates lo receipt by the Board in Washington, D.C., rather than postmark for Ihcsa schedules. 



Due Dates of Schfoules in CAB Form 41 
Uepcrt 
Due date ' Schedule No. 

Jan. 30 B-1, P-l(a), T-1, T-2, T-3, 

T-7, T-41. 

Feb. 10- A, B-2, B-3, B-4, B-5, B-7, 

B-7(b), B-3. B-10, 3-12, 
B-13, B-14, P-1.1. P-12, 
P-2, r-2(a), P-3, P-3(a), 
P-4, P-5.1, P-5.2. P-5(a), 



May 30_. 
June 30- 



B-1. P-l(a). T-1. T-7. 
B-1. P-1(P.), T-1, T-7. 



July 30- 
Aug. 10. 





P-6, P-7. P-8. P-9.1. P-3.2, 






P-10. T-6. 




Mar. 1 


B-1, P-l(a). T-1, T-7. 


Auy,. 50- 


Mar. 30 


B-1. E-9. B-41, B-42, B-43, 
B-44, B-46, P-l(a), P-41. 


Sopt. 30 




G-41, G-42. G^3, G-44, 


Oct. 30- 




T-1, T-7. 


Nov. 10.. 


Apr. 30 


B-1, P-l(a), T-1, T-2. T-3, 

r-7. 




May 10 


A, B-2, B-3. B-4. B-5, B-7, 
B-7(b). B-8. B-IO, B-12. 
B-13. B-14. P-1.1. P-1.2..P- 
2, P-2(a). P-3. P-3(a^, P-4, 






P-5.1, P-.^.2. P-5(r.) P-6, 


Nov. 30 




P-7, P-8. P-9.1. P-9.2, P-10. 


Dec. 30- 




T-8. 





.B-1, P- 
T-7. 

A, A-1, 
B-7, 



1(a), T-1, T-2, T-3, 
B-2, B-3. B-4. B-5. 



B 7(b), B-8. B-10, 
B-12. 13-13. B-14. P-1.1, 
P-1.2. P-2. P-2(a). P-3, 
P-3(a). P-^. P-5.1, P-5.2. 
P-5(a). P-6. P-7, P-8, 
P-9.1, P-O.-Z, P-10, T-6, 

B-l.P-l(a),T-l,T-7. 

B-1, P-l(fi). T-1, T-2, T-3, 
T-7. 

B-1, P-l'a), T-1, T-7, T-41. 

A. B-2, B-3. B-4. B-5, B 7, 
B-7tb), B-8, B-lO, B-12, 
B-13, B-14, P-1.1. P-1.2. P- 
2. P-2(a). P-3, P-3(a), P-4, 
P-5.1. P-5.2. P-5(ft). P-0, 
P-7. P-3. P-9.i. P-9.2. P-10, 
T-8. 

P.-;. P-l(a) T-1, T-7. 

B-1, P-l(ai. T-1. T-7. 



'Duo dates fallin;< 
day. or national r.oU'J 
the first fo'lowUi^ 



on a t^acurdav. Sun- 
ivy will become el'.ecf.lve 
working day. 



>B and P reporting d; 

Mar. 30. If prolimlnary s 
tha EMard by Feb. 10. 



itos sre p.stendea to 
;:lie'-'.ul8s are lil!:d at 



(b) T<;ach air carrier shall file the 
schedules of the CAB Form 41 reoorts 
with the Civil Aeronautics Board in ac- 
cordance with the above instructions, ex- 
cept that the time for filing B and P 
ropoit rch^dules for tJiS final quarter of 
each Calendar year may ije extc'nd>.;d to 
the following March 30: Provided, That 
prelii.ounry schedules B-1, P-Ka), P-1.1 



(KR-H 



li S-a-i-'O. i;'.R-y29. 
1-7;^) 



737 



I.'5I'0LTI^^G PROVISION — ROUTE CARRIERS 



Sec. 22 



or P--1.2, P- 3, and P-3(r,) sre submitted 
and are received on or before tlr ;■ re- 
spfccivo due dates. For the third xnonth 
of t<ny o?!cnc-:.r c.u:^. tor. SchediUo P-J. ^a) 
need not bo fdrd: Provided. That .'Jjhed- 
ule P-l.i or P-1.2 fcr ihe quarter is re- 
ceived on the due date prcsciibed fcr 
Schedule P-Ua) rather than the due 
date prescribed for P-1.1 or P-i.2. Re- 
ports on Schedules B-1 and P-l(a) for 
each month shall be withl.eld from pub- 
lic disclosure, subject to the same excep- 
tions as those set forth in section 19-6 
until such time as (1) the quarterly fi- 
nancial reporLs are due, (2) the quar- 
terly fmancin.i rei.>orts are filed, or (3) 
information covered by monthly reports 
is publicly releas(id by the carrier con- 
cerned, whichever first occurs. At the 
request of an air carrier, and upon a 
showing by such air carrier that oublic 
disclosure of its pieliminai-y year-end re- 
port would adversely affect its iniovests 
and would not be in the public ir:;;erest, 
the Board will withhold such preliminary 
year-end report i'rom public disclosure 
until such time as (4> the final report is 
filed, (5) the final report is due, or (6) 
inform.ation coveied by the preliminary 
report is publicly released by tlie canisr 
concerned, whichever first occurs. 

(c) If circumstances prevent the filing 
of a report v/itnin tlie prescribed time 
limit, consideration will be given to the 
granting of an extension upon recL-ipt of 
a written request therefor. Such a re- 
quest must set forth good and sufTcient 
reason to justify granting the extension, 
must set forth the date when the report 
can be filed, and be subriiitted suiiiciently 
in advance of the due dat« to permit 
proper time for consideration and com- 
mimication to the air carrier of the ac- 
tion taken. Except in cases of emergency 
no such request wid be entertained which 
is not postmarked in sufFicient time to 
normally reacli the Civil Aeronautic? 
Board at least 24 hours before tlie pre- 
scribed due date. If a request is denied, 
the air carrier remains subject to the 
filing requirements to the same extent 
as if no requests for extension of time had 
been made. 

(d) Statements of accounting or sta- 
tistical procedures required to be filed 
under this system of accoiuitss and re- 
ports are recapitulated below. Tl-'ese 
statements or revisions thereof shall be 
filed prior to the date on which the pro- 
cedures are to become effective and shall 



be regarded as accepted unless the car- 
rier is notified of Board objections within 
30 days after receipt. The Board may 
vi-.T'^re modification of any previously 
eft'^ctive procedure covered by such slate- 
mcnts after 60-days' notice to the carrier. 
The^c statements shall be filed in tripli- 
cate, Vv'ith each statement submitted on 
a separate page to facilitate processing 
and filing. 

(1) Procedures for assigning or pro- 
rating profit and loss items between 
operating entities, as prescribed by sec- 
tion 2-1 lb). 

(2) Procedures for retroactive adjust- 
ments made to conform accounts v/ith 
inaii rate actions, as required by sec- 
tion 2-4 (d). 

(3) Procedures for accrual of self- 
insurai\ce reserves, as prescribed by sec- 
tion 2-13(c). 

(4) Procedures for establishment of 
expei:se equalization reserves, as pre- 
scribed by section 2-13Cb) . 

(5) Procedures for depreciation of 
property and equipment, as prescribed by 
section 2-14 (b). 

(6) Procedures of accounting for air- 
frame and aircraft eneine overhauls and 
airworthiness reser/es as prescribed by 
section &-4(g) (8). 

(7^ Procedures for amortisation of de- 
vclo':mental and preopsrating costs and 
other intangibles, as prescribed by sec- 
tion .5-5(b), section 6-1870(c), and sec- 
tion 6-1880. , ^ 

(8) Procedures for the accrual of ob- 
solescence and deteriovation reserves for 
flight equipment expendable parts, as 
required by section 6-1311(d) . 

(9) Procedures for accrual of un- 
earned transportation revenues, as pre- 
scribed by sections 2-17 (b) and G-2160 
(d). 

(10) Procedures for assigning or pro- 
rating expenses between incidental sei-v- 
ices and transport operations, as pre- 
scribed by section 9-4."00 ( d) . 

(U) Procedures for applying mainte- 
nance burden, as prescribed by section 
10-53G3(c), section ll-5300(c) and sec- 
tion 24, Schedule P-G. paragraph (f). 

(12) Procedures for computing avail- 
able seat-miles and available ton-miles 
for each aircraft t\-pc, as required by 
paragraph (g) in section 19-2. 

(13) Procedures for the accrual of 
vacation liability, as required by Section 
6-2120(c). 



738 



iC. 'S^i 



UNIFOK'-.j SYSTPJM OF ACCOUNTS AND UKFORTS 



(14) Procedures for accounting for 
invesUn'.nts m bUhsidiiiVj' and oilier as- 
soclHted companies, i-.iciuding change in 
.slaJiiG 'rotri aasocialrd to .subsidiary 
ccmi-any, or vice vorsa, ?nd adjustments 
in iavesur.ent accoiint.s, a-s piescrib'Jd 
by section 6-1510(c). 

(15) Pi-Qcedures of accounting for pen- 
sion plans as prescribed by sections 2-19 
and 13-57. 

(e) All financial data reported on B, 
P, and G schedules shvJi reflect t.iie 
status oi' the air carrier's books of ac- 
count for tlie period for wliich repoi-t is 
being made and shall conform to the 
instructions of this Uniform System of 
Account.s and Reports. At the option of 
the air carrier financial data may b? 
reported in thousands of dollars by 
Group Iir air carriers, and in whole dol- 
lars by Croup I and Group II air carriers, 
by either dropping or rounding the hun- 
dreds of dollars and the cents respective- 
ly, provided all amounts are balanced 
v.ithin and between schedules and ^cro 
digits are inserted for the :(ctual money 
amounts eliminated. 

(f) Trafiic .'.nd other operational sta- 
tistics included in schedules of the CAB 
Form 41 reports sliall reflect data per- 
taining to the month, quarter or 12- 
months-to-date period for which the re- 
port is being made. 

(g) Adjustments corroctin;? errors in 
previously reported tralf.c and otJi.'T 
operational statistics shall not be in- 
cluded in data reported in schedules for 
the current period but shall be effecr.cd 
by submission of correct-id schedules for 
the period to which applicable or, if only 
a few items are involved, by writton 
notice and authorization to the Civil 
Aeronautics Board to correct previously 



filed reports except that any correction 
which uiiiounts to less tiian one-half of 
one percent (0.5%) of the corrected 
amo'')nt foi the month to which related 
may be inch:ded in the report for tiie 
current month provided the amount of 
th3 correction is clearly noted on the 
Form 4 1 Report. 

(h) All letters and statements of cor- 
rection or revision of reported data shall 
be a part of the CAB Form 41 reports. 

(i) All changes in accounting methods 
havinp a material impact upon the par- 
ticular fniancial elements involved, and 
all changes in methods of computing 
and reporting traffic and capacity sta- 
tistics having a material impact upon 
the pr'.rticiilar statistic involved shall be 
adequately explained and identified in 
the report first reflecting such changes. 
Such explanations related to financial 
position or financial results shall be made 
on sciicdules B-2 and P-2 — Notes to 
Balance Sheet and Notes to Income 
Statement, respectively. Changes in 
m.ethods for computing or reporting 
traffic and capacity statistics shall be 
identified and expiained on a separate 
sheet attached to the first report af- 
fected. (See .sec. 2-lC.) The reporting 
requirements shall not be construed, in 
any sense, as relieving the air carrier of 
the responsibility for conforming its 
procedures to those othcrv.'ise prescribed 
in tills sysf em of accounts and reports. 

(j) All fmancial statements released 
by carriers to the public reflecting a fi- 
nancial position or operating results for 
dates or repoiting periods not covered by 
reports on file v.'ith the Board shall be 
filed with the Board simultaneously with 
their public release. 



739 



39. Which CAB practices or procedures do you believe to be the most 
burdensome or least efficient? What recommendations for changes 
would you make? 

Regulatory lag is the most burdensome aspect of CAB regulation. 
An expedited hearing procedure would assist the Board in reaching 
important decisions in a timely fashion. Development of such a 
procedure should be of the highest priority. 



740 



40. There is no way to determine with any degree of precision 
the money spent each year relating to CAB proceedings. 
Many people employed by the company get involved in 
CAB proceedings, sometimes for prolonged periods, but no 
one is so involved all the time. An allocation of salaries 
would be required, but the basis for such an allocation is 
unknown to us. Attorneys fees paid by airlines each year 
are a matter of public record, as a result of CAB filings. 
There is no way to determine with any degree of precision 
the money spent "that is in any way attributable to 
congressional lobbying," American maintains an office 
in Washington that concerns itself, among other things, 
with legislative affairs. In the absence of a detailed 
definition of lobbying, any allocation of our expenses 
in maintaining our Washington office would be impossible. 



741 

41. 1972 - 20,287,000 
1973 - 21,163,000 



9 Mos. 

1974 - 15,584,000 



Note: Data are for Scheduled Service only 

42. 1972 - 385,722 
1973 - 401,314 



9 Mos. 

1974 - 255,177 



Note: Data are for Scheduled Service only 

43. 1972 - 379,478 
1973 - 393,566 



9 Mos. 

1974 - 254,910 



Note: Data are for Scheduled Service only 



742 



SENATE QUESTIONNAIRE 



44. How many persons with the primary duty of investigation or 

handling consumer problems did you employ? 1972-October 1, 1974? 

ANSWER 

Consumer Relations headcount during the period was 40 full-time people. 
This includes 30 full-time people in the general office aad 10 full- 
time people in the field. 



CR 
13'10/74 



743 



SENATE QUESTIONNAIRE 



45. What was the total number of comments recorded? 
1972-October 1, 1974? 



1972 


103,707 


1973 


79,649 


9 Mos 1974 


71,956 



Total 255,312 

These coaments are those recorded in the general office. 

The number of comments received in the field are not available. 



CR 
12/10/74 



744 

SENATE QUESTIONNAIRE 

46. How many of these comments were complaints'; 
ANSWER 



1972 34,223 

1973 27,654 
9 Mos 1974 23.705 

Total 85,582 



CR 
12/10/74 



745 



SENATE QUESTIONNAIRE 



47. What was the budget for customer relations/consumer 
affairs activities (excluding the amount paid for 
claims)? 1972-October 1, 1974? 



1972 $ 528,516 

1973 716,915 



9 Mos 1974 568,274 
Total $1,813,705 



The above figures represent salaries for the 30 people 
in the general office and ten people in the field. 



CR 

12/10/74 



746 



SENATE QUESnONNAIRE 



48i What was the total amount of claims or other monetary settlement 
paid? 1972-October 1, 1974? 



1972 $ 4,347,948 

1973 5,692,909 
9 Mos 1974 5,131,22 

Total $15,172,077 

The above figures include denied boarding compensation, payments for 
damaged bags and payments for lost baggage as well as general claims 
paid. 



CR 
12/10/74 



747 



SENATE QUESTIONNAIRE 



49. What percentage of the complaints received requested some 
form of monetary reimbursement? 1972-October 1, 1974? 



34.8 per cent of complaints contain a request for money. Estimate 
based on representative sample. 



CR 
12/11/74 



748 



SENATE QUESTIONNAIRE 



50. What percentage of complaints were settled with some form 
of monetary reimbursement? 1972-October 1, 1974? 

ANSWER 

10.9 per cent of complaints are settled with money. 



CR 

12/11/74 



749 



SENATE QUESTIONNAIRE 

51. Under what circumstances will the carrier waive the tariffs 
in order to settle complaints from mishandled passengers? 

ANSWER 

1) When directed by the courts 

2) When so advised by our legal department 

3) For 4n ethical reason 



CR 
12/10/74 



750 



52. When a complaint is received v;hat measures are taken to prevent 
recurrence? 

Passenger complaints are received directly by phone, letter or 
inter-departmental advice. A file is created with the use of 
one or more of the following three records: 

1. Customer Request/Reaction Report (see attached), 

2. Report of Irregularity (see attached). 

3. Customer Correspondence. 

The complaint is then investigated to determine possible cause, 
i.e.,: 

1. Procedural failure. 

2. Service inadequacies. 

3. Individual performance. 

Procedural failures and service inadequacies (other than local 
In nature) are forwarded to Staff, accompanied by field 
management's recommendations for review/correction. Staff may 
then elect to implement new procedures or initiate a review of 
current procedures. This is accomplished by: 

1. Bulletin. 

2. Revisions to AA Service Manuals. 

3. Management Newsletter. 

Review or continuation training of the personnel involved is 
conducted and the instruction dates are recorded on individual 
training records. To ensure adherence to these procedures, 
periodic quality control checks are conducted by both local 
management and Staff. 



751 



\\. 



■•, T5 

3ory:'L 



■ Ion )'..- 

.\u\ :■>(>■■ 



requ!:l;t a reactic:; i!E;-^c«t 



A. r;;:fose 

B. irAS OF INvCR!.'.^TION 

c. h:,;::';-;^ATiCM 

A. lr>'^?OSE 

Tlib Cii:;l:.'a«r Pir.-yst and Rr&clion Re- 
port (i-orrc Tbi2A) is used by Reasrvo- 
ilons and Ticket r^zlesmen, Tickat Lift 
^'iftnxs snd other personneX rho cons 
in contact with Ihs public i o rrccorc! 
custor.-,cr rf>qut?;Ts, salf^s lo.ids and 
ciistor.iaT reactior. to our service. 

Ihp Customer Request and Reaction Re- 
port Is en orcjani^icd form on which to 
record sales leads and cusxoic-ar re- 
quests vor iteirs or inf orm.^tion that 
are p-rovidi^d by ar.rlhpi; dep^rti?9iit or 
another Individu-il within th<j com- 
pany. In addition, it is a fora on 
which to racord custoasHr reaction to 
our service. F-oquantly, a custciaer 
wiU voice a corrolaint or corrplirasnt 
reg;nding th^ r.Jvvice ha has received 
or oqiected to leceivs but doas not 
tak<i Ih^" tims to v.Tite his opinion. 
WrittcTi reports keap manacjcii-snt 
apiA'ised of trends and custoiMX 
opinion. 

B. TYPES or- DiPCRMATION 

The foTia, when usfid to record a cus- 
tomor roquisst for information or ussd 
as a sales lead, is self explanatory. 
When used to record custocsr reaction, 
record corapli:i^nts as well as com- 
plaints since both serve os a biTometj 
of s'.rvlce given or service expscted. 
Rccou-d coOTWdts pertaining to i 

Reservations 

City Ticket Office 

Airport Ticket Counter/Ticket Lift 



Flight Information 
In-F light Service 
t*33l Sarvic9 
Bagcir^joe Handling 
Schedules 

Be alert to record the follovlrri types 
of Ir.foritiationJ 

1. Custocisr resistcnce to, or accf:^tpni;4 
of, schedules, food service, oth^i 
service features, particulnriy new 
service features. 

2. Recognition of a volunia traveler *( : 
is not being covared by cur oiitslds 
sales dapartnvjnx. 

3. Customer conplaint of oui' failure to 
piovidp the service he expected. 

4. Custor-jr cocDplli. 3nts of cm" soxvice, 
features or service rendered by our - 
personnel. 

5. Customar complc' ntc/coraDliii?nts re- 
garding serviC" features or schedules 
of other carrisrs. 

C. PREP-\RATION 

Store th& Custorr-r Rpquost or Rcsction 
Report at the sal';-.iL»n' s/agsntn' nork- 
Ing positions. The form should b« 
rsKdily available to all porior.ncl vhc 
are in contact with the public. 

1. The originator corrpletes a singlo 
copy of the form and subirics it to 
his icasdiato suparvisor. Tha super- 
visor routes it to the appropriate 
depertiosnt/city for handling. 

Only in unusual circumstances will 
a reply to the originator be re- 
quired, except when the form is 



752 



P.2 

Jul 30-h9 




used to rocord a tslaa Ict^cU V.'i'-on 
used as a sales i-.-jJ, .the fcit 1« 
prepared in duplicr.t*. Tht: •impli- 
cate is retainsd in th« local offlcft 
until the origin;! copy 1» retirrnsd. 
The Sales DepartiLint, aftoj: t.r.'.lng 
action and noting the retulto on 
the revarse sidii of the fov ;^vout»« 
the original copy to the ofi" ca that 
originated the load. It i? impor- 
tant that the originating r.ilsLoan 
be advised of tha rosulte. 

2. A cocrplaint will bs genwrally re- 
solved on the initial contcct with 
the custorner. W-.on the co::pl''.int 
pertains to a recurvation, c^tuch 
the PK?l to the written report. 



\.'\-'--- :j.':n c£ I,-] :gy. Khan tfa co»- 
r? ■: . '.T/olv:. ..;\:th3r ciiiy cs do- 
p.-. • y., a Co;.-: oi the foi:- will be 
ft 'J to tli^ location for correc- 

ti- ' . :tlon or i.-viisj training. 

i':--'. :■'■? i'or.3 i-. i,3-;d to rcjcrd « 
cv'.'i' nt. a Ipttor of sckno-rtledgeinent 
r.: :y' ■ - ' sllod to the customer . 

1.0''- \ , -.nsgor-vnt r-sy elect to con^lle 
& i •. '.i of fsvcrcble and unfavorable 
cc: .i jTogi^rdlro our 8£rvic9 to de- 
tc-v.: Ir.i trandc. l.han trends are 
nor ", local f.y^nr.gcuant may wish to 
r^-.' :,!.d chairjas in service features, 
sci'.' .Isa or ja'oc^.duree. 



3. Includo name, address and telephone 
numbsTs when folloii up is so^uired. 
If follow up or reply is rvDl r.icess^vy 
and the custorear objects to divulglty 
this Informationj do not inaiBt. Nota 
this fact in the space provicid for 
the ndine and address. 



R«fcWv;tlcr^, 



4. When appropriate, the originilor may 
Includo recoEKT.jndations and g'jggeetio-: 
for iiGproving oux »ervice. 

D. ROUTRJG AND DISPOSITION 

Wh«in the form is directed to the 
Sales Uanager ac a sales lord, aftex 
noting action and results, the Sales 
Manager routes the form b<)ck to the 
originating office. Publicity leads 
and raquests for placeswnt on naillro 
list do not require an ans.cc; to the 
originator. 



When the forta it used to rp'.vjxd a 
complaint that cennot b« iCDoiv&d 
on the Initial contact cr i:\ follow 
up is required, the Sup«tvisor will 
contact the customer and, if nacessory, 
will follow up with a lottps of est- 



753 



FASSEKOi^K K-iaVKE fV^JUAL 



5'jvtlon K. 
ApptftJx 






Sep 




□ nES.'*TOC 
MCR. 



A* ADMIRAL n CRPUP "LE/CHARTER Q PL ACE ON MAILING LH 

AIRCHECK H INCENTIVE PROGRAM M PUBLICI TY LE AD 

AIR TRAVEL PLAN □ MOVIE OR SPEECH □OTHER 

rXPRESS TICKET 

g COMPLAINT [— iMAIL FARES/SCHEDULES 
COMPLIMENT MmaIL TOUR INFO 
MAIL AA CREDIT APPLICATION LJOTHER. 



REMARKS PSGR COMMENTS ORIGINATOR'S RECOMMENDATIONS: 











(USE 


REVERSE SIDE IF NECESSARY! 








- 


NESS PHONE 




FIOM NAME 




STREET 






CITY STATEZIP 


HOME ADDRESS 




STREET 






CITY/STATE'ZIP 










.. CITY 


HAT-- 





REPORT OF RESULTS: 



ACTION COMPLETEO QY — UM.t _ 

IMPORTANT. RETURN FORM TO ORIGINATOR AS SOON AS IT IS COMPLETED^ 



754 



-•%■ 

.^i 



REKSUENCE I v;--.;al 



Section 20-9 
Pago 1 
Feb. 14-73 



irrv :.-;i; lap. . o pf ^'- tions forms 

SUBJECT : Flight Report - OP-4 





lOHT HCPORT . FL 


OMT*,TEH«MT 
















1. 


..... 


f--'-"" 1 


... ^ |..,. |.. 


\"" 


? 






(D 




A 


•■■•■■■■"" 


I 




D 





N 














































' ■ —' ° © ^ 


1 




"-— '• 




























o'"'"""""° 




n^""-"'"' 


1 




z ..... — - "-:.■,...... .'■....„., .O.J. - 




i 
















\ 













Location: F/A Binder. 



755 



SENATE QUESTIONNAIRE 



53. List the two or three airline practices that are most 

frequently the subject of passenger complaints. Please 
submit your manuals or sets of instructions related to 
dealing with passenger complaints. 

ANSWER 

Food Service 
Cabin Facilities 
Ticket Office Service 

The above refers to complaints only. We did not include claims 
which most of the time have to do with baggage. 



SENATE QUESTIONNAIRE 

54. How many pieces of luggage were mishandled? 1972-October 1, 1974? 
ANSWER 



1972 174,188 

1973 207,217 
9 Mos 1974 200,666 

Total 582,071 



756 



SENATE QUESTIONNAIRE 

55. How many (pieces of luggage) were lost? 1972-October 1, 1974? 
ANSWER 



1972 4,680 

1973 5,937 
9 Mos 1974 5,198 

Total 15,815 



SENATE QUESTIONNAIRE 

56. How many (pieces of luggage) were delayed? 1972-October 1, 1974 
ANSWER 

1972 152,990 

1973 198,580 
9 Mos 1974 191.974 

Tbtal 543,544 



757 



SENATE QUESTIONNAIRE 

57. How many (pieces of luggage) were damaged? 1972-October I, 1974? 
ANSWER 

1972 30,367 

1973 34,242 
9 Mo3 1974 33,977 

Total 98,586 

Estimated on basis of average $23/claim divided into total spent. 



SENATE QUESTIONNAIRE 

58. How many (pieces of luggage) were pilfered? 1972-October 1, 1974 
ANSWER 

1972 869 

1973 1,399 
9 Mos 1974 1.536 

Total 3,804 

General Office figures only. 



758 



SENATE QUESTIONNAIRE 



59. What was the total amount spent to settle claims for 
mishandled luggage? 1972-October 1, 1974? 

ANSWER 

1972 $1,979,861 

1973 2,536,535 
9 Mos 1974 2,442,224 

$6,958,620 

These figures include payments for loss, damage and pilferage. 



SENATE QUESTIONNAIRE 



60. What was the total amount spent to pay claims for lost 
luggage? 1972-October 1, 1974? 

ANSWER 



1972 $1,202,397 

1973 1,588,729 
9 Mos 1974 1,481,063 



Total $4,272,189 



759 



SENATE QUESTIONNAIRE 



61. What was the total amount spent to pay claims for damaged 
luggage? 1972-October 1, 1974? 

ANSWER 



1972 $ 698,441 

1973 787,556 
9 Mos 1974 781,48 

Total $2,267,487 



SENATE QUESTIONNAIRE 



62. What was the total amount spent to repair damaged 
luggage? 1972-October 1, 1974? 

ANSWER 



1972 $ 460,971 

1973 519,793 



9 Mos 1974 515,776 
Total $1,496,540 



Since this statistic is not broken out, the figures in this 
answer were estimated at 2/3 of the total amounts spent in the 
"damage" category. The 2/3 estimate is based on a representa- 
tive sample. 



760 



SENATE QUESTIONNAIRE 



63. What was the total amount spent to pay pilferage claims' 
1972-October 1, 1974? 



1972 $ 79,023 

1973 160,240 
9 Mos 1974 179.681 

Total $418,944 

General Office only. 



SENATE QUESTIONNAIRE 



64. What was the total amount spent to pay claims for delayed 
bags? 

ANSWER 



1972 $ 29,490 

1973 36,365 
9 Mos 1974 44,548 

Total $110,403 

General Office only. 



761 



SENATE QUESTIONNAIRE 



65. What was the total cost of delivering delayed bags to 
passengers? 1972-October 1, 1974? 

ANSWER 



1972 $ 842,977 

1973 1,094,180 
9 Mos 1974 1.057.772 

Total $2,994,929 



SENATE QUESTIONNAIRE 



66. What percentage of the number of claims received exceeded 
. the maximum liability limits specified in the tariffs? 
1972-October 1, 1974? 

ANSWER 

36 per cent, based on representative sample. 



762 



SENATE QUESTIONNAIRE 



67. How many claims were denied because the baggage or its 
contents was unacceptable? 1972-October 1, 1974? 

ANSWER 

5 per cent, based on representative sample. 



SENATE QUESTIONNAIRE 

68. What percentage of claims were paid in full? 1972-October 1, 1974' 

ANSWER 

40 per cent, based on representative sample. 



SENATE QUESTIONNAIRE 



69. What percentage of claims were denied completely? 
1972-October 1, 1974? 

ANSWER 

12 per cent, based on representative sample. 



763 



S ENATE QUESTIONNAIRE 



70. State the carrier's policy regarding proof of ownership of passengers' 
luggage and its contents. Submit any written notice which is given to 
passengers explaining this policy prior to checking in luggage. 



Answer : 

No proof of ownership is required when baggage is presented to us for checking. 

No written notice is provided concerning ownership. 

In the event of a claim, proof of value of item in question is required. 



764 



SENATE QUESTIONKAIRE 



71. List specifically carrier's criteria for the acceptability of checked 
luggage. 

Submit any written notice which is given to passengers explaining this 
policy prior to the checking of luggage. 



The attached procedures cover our policy concerning acceptability of checked 
baggage. Fragile items are checked using a special tag. The claim stub 
(copy attached) which is given to the passenger states that we are not res- 
ponsible for damage. 



0) 
0) 

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GED 
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sengers Own Risk. 






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Attachment 



765 



J&i 



PASSENGER SERVICE MANUAL 
Reservations, Ticket Office 
& Terminal Services 



Section 50-1 

P.l 

lun 24-74 



ACCEPTANCE OF BAGGAGE 





Purpose 




Definitions 




Acceptance-General 




Free Allowance 




Special Rules 




Fragile Articles 




Suitable Packaging 




Restricted Articles 




Unaccompanied Articles /Baggage 




Portable Clocks 


K. 


Baggage Checked to Mexico 


A. 


PURPOSE 



Foreaseof reference, this section re- 
states certain tariff rules governing 
acceptance of baggage and free baggage 
allowance on AA. For unusual circum- 
stances or when travel is partly or 
wholly via another carrier, the tariff 
must be consulted. It is recommended, 
however, that general rules pertaining 
to other carriers frequently used from 
your city be posted for quick refer- 
ence. 

This section covers transportation with- 
in the United States and Canada. For 
International travel (weight concept) 
refer to applicable tariff. 

The FAA is the source and governing 
ageucy for our acceptance of baggage 
regulations in the cabin. Strict ad- 
herence to procedures must be followed 
In the interest of flight safety. 

B . DEFINITIONS 

In this section the following defini- 
tions apply: 

Cabin Baggage - These are articles or 
baggage the passenger does not wish to 
place in custody of AA. 



The following constitute articles of 
cabin baggage that may be carried by the 
passenger without additional charges as 
long as they are retained in the passen- 
ger's custody. 



Lady's handbag or pocketbook 

Overcoat or wrap 

Footrug 

Umbrella, walking stick or 

crutches 
Camera and binoculars 
Reasonable amount of reading 
material 

Infant's food for consumption 
enroute 
Courier or Diplomatic pouches 



All carry-on baggage including brief- 
cases, typewriters, hatboxes, wig boxes, 
musical Instruments and packages must 
be of such dimensions that the total 
number of pieces may be stored under a 
seat and considered as baggage. 

(Refer to tariff for rules concerning 
accoiranodation of baggage In passenger 
seat.) 

Checked Baggage - This is baggage not 
acceptable as Cabin Bag^ge or that the 
passenger wishes placed in custody of 
AA and for which a baggage claim check 
is issued. 

C. ACCEPTANCE - GENERAL 

American Airlines will accept, as bag- 
gage, that personal property necessary 
or appropriate for the wear, use, com- 
fort or convenience of the passenger 
for the purpose of his trip subject to 
size limitations outlined below. (Al- 
so refer Fragile Articles section "F" 
and Suitable Packaging section "G" this 
section. 



766 



Section 50-1 

P. 2 

Jul 31-74 



PASSENGER SERVICE MANUAL 
Reservations, Ticket Office 
& Terminal Services 



/Ik 



Checked Baggage - No one piece will be 
accepted as checked baggage if the sum 
of the height, width and length ex- 
ceeds 80 inches. If exceeded, the 
piece of personal property must be sent 
as "Baggage at Airfreight Rates." Re- 
fer to Section 50-4 of PSM R&TO Edition. 

Certain types of sporting equipment 
(skis, for example), live animals in 
containers and duffel bags, sea bags 
and B-4 bags are exempt from this size 
restriction. See applicable tariff 
rule. 

Mail sacks and pouches are government 
equipment and are not intended for per- 
sonal use. Misuse of such equipment is 
in violation of the U.S. code, and, 
acceptance and transport of personal 
belongings in postal equipment jeopar- 
dizes security of mail aboard the air- 
craft. Notify the supervisor of the 
nearest postal unit in the event mail 
sacks are offered or discovered after 
their acceptance as baggage. No fur- 
ther action is required. 

Cabin B aggage - One or more pieces of 
l^^gg^ge may be carried in the cabin 
provided only two pieces have been 
checked. Tney must be retained in the 
passenger's custody and fit under a 
seat or in an overhead storage bin. 

N£te: For security reasons, parachutes 
y^" """^ ^^ permitted to be taken on 
board as a "carry-on" article. They 
may be accepted as checked baggage only. 
When accepted as checked baggage the 
parachute should be placed in a passen- 
ger service box to avoid accidental de- 
ployment . 

The maximum dimensions for cabin bag- 
gage are approximately 9"xl3"x23" 
The size varies dependent upon the type 
aircraft and class of service. There- 
fore, the basic guideline on acceptance 
of baggage in the cabin will be whether 
11 fits under the seat, if in doubt, 
the Agent should accompany the customer 
Into the cabin and test it. 



1. Storage of carry on baggage against 
a bulkhead for front row of seats 
is not permitted. When possible, 
these seats will not be assigned. 
However, when assigned, the ticket 
salesman will advise the customer 
that the F/A will provide an alter- 
nate storage area. 

The FAA ruling on carry-on baggage states 
"No Certificate holder may permit an air- 
plane to take off or land unless each 
article of baggage carried aboard by 
passengers is stowed under a passenger 
seat". 

Note that the Regulation states that 
carry-on baggage must be stowed for 
landing and takeoff. Therefore, a 
passenger may keep his briefcase at his 
feet during flight, but must be placed 
under a seat prior to takeoff and land- 
ing. 

If a passenger presents himself with 
valuable musical instrument (s) and de- 
sires to carry it during flight, this 
is permissible. This is similar to a 
customer carrying an infant in-flight. 
This applies to such instruments as 
violins carried by concert violinists 
and not to guitars, etc., carried by 
many of our customers. 

(Note: - Personnel of the U.S. Weather 
Bureau, on inspection of weather obser- 
vation stations, are permitted to make 
advance arrangements to carry on board 
a mercurial inspection barometer. The 
barometer will be carried in a cylin- 
drical case, approximately 3" in diam- 
eter and 45" long, and stored upright 
In the coat compartment.) 

The FAA carry-on baggage rule is de- . 
signed to protect our passengers in the 
event of an incident in flight or dur- 
ing take-off and landing. FAA concern 
is that articles which basically can- 
not fit under the seat could obstruct a 
passenger while he was attempting to 
reach an emergency exit. There is a 



767 



^ 



PASSENGER SERVICE MANUAL 
Reservations, Ticket Office 
& Terminal Services 



Section 50-1 

P.3 

Jun 24-74 



ACCEPTANCE OF BAGGAGE 



continuing need to judiciously monitor 
the size and amount of carry-on baggage. 
Failure to do so will inevitably result 
in additional rule making by FAA which 
would be more restrictive. 

2. Ticket Agents will include in their 
conversation with all passengers, a 
request to view all carry-on baggage 
and will check baggage which does 
not meet the carry-on specifications. 
Whenever possible a representative 
of Ground Passenger Services will be 
stationed at the boarding door to 
monitor the size of all carry-on 
baggage . 

Similar to all rules, management judg- 
ment is frequently required and will be 
exercised to insure every effort is 
made by American to satisfy our passen- 
gers' genuine needs while complying with 
t!ie FAA rule. 



PPEE 



^^^^ 



<i,ach fare-vayvug'^q^ 
wiVctsd the folic "'"' 




ier will be per- 
free bag- 



1. .,„pRe piece "(j.4jfBaggage of which the 
. sum of the outside length, width 

and height does not exceed 62" - 
(for example: 

30"x22"xlO"). 

2. One additional piece of baggage of 
which the sum of the outside 
length, width and height does not 
exceed 55" - 

(for example: 

22"x23"xlO"). 

'3. One additional piece may be checked 
or carried on board. The maximum 
dimensions are 9"xl3"x23" = 45" and 



if checked, additional pieces may 
not be' carried on board without ex- 
cess charges. Note : If the passen- 
ger has four pieces, falling within 
the above dimensions, these pieces 
will be treated as one, for either 
checking or carry-on. 

These, if carried on board, must be 
able to fit under the seat that Is 
located in front of the passenger. 
Passengers seated immediately behind 
a bulkhead may not store carry-ons 
against this bulkhead. The Flight 
Attendant will place these items un- 
der another seat during take-off and 
landing. 

4. In lieu of one piece of checked bag- 
bage, passengers may be permitted to 
check sporting equipment at no ex- 
cess charge, regardless of size, as 
defined in Passenger Rules Tariff, 
PR-6, Rule 360. 

In effect, the passenger is allowed free 
two checked pieces plus cabin baggage; 
or three checked pieces and no cabin bag- 
gage. If, however, one piece exceeds 
the 62" except as noted in 4 above, ex- 
cess would apply although one piece is 
checked. Passenger Rules Tariff, Pft-6, 
Rule 340, prohibits acceptance of any 
baggage whe-eby the greatest outside 
length plus the greatest height, plus 
the greatest outside width exceeds 80 
inches. 

Military passengers presenting a duffel 
bag, B-4 bag or sea bag whose outside 
dimensions exceed 62" are allowed only 
the duffel bag, B-4 bag or sea bag and 
one or more additional pieces of baggage 
whose dimensions do not exceed 45" pro- 
vided they are carried on board and un- 
der the seat. If the duffel bag, B-4 



768 



Section 50-1 

P. 4 

Jun 24-74 



PASSENGER SERVICE MANUAL 
Reservations, Ticket Office 
& Terminal Services 



/!k 



bag or sea bag is 62" or less, normal 
free allowance applies. 

Where two or more passengers traveling 
together to a common destination by the 
same flight present themselves and their 
baggage at the same time and place; they 
shall be given a total free baggage 
allowance equal to the combination of 
their individual free baggage allowances. 

To facilitate acceptance of baggage, all 
scales and positions where baggage is 
accepted, will be marked using colored 
tape to denote size limitations. 

Non-revenue passengers are not charged 
for excess baggage but should limit bag- 
gage to same quantity allowed free to 
revenue passengers. 

Personnel transferring at their own or 
Company expense will not be charged for 
excess baggage but are required to limit 
baggage weight to 150 pounds. It will 
be accommodated at the same time as the 
passenger, claimed immediately on arri- 
val and not left in the baggage room. 

E. SPECIAL RULES 

The following rules govern special or 
extraordinary pieces that are presented 
as baggage. It should be emphasized 
these rules apply only to AA. Check the 
tariff or other carriers for their 
specific regulations. 

1. Firearms 

a. Revolvers /Pistols will be accepted 
only as checked baggage (see ex- 
ceptions in PSM R&TO, Section 
10-10, Page 2, paragraph 6 (g) , 
provided they are in suitable 
cases and not loaded. Passenger 
must show - with accepting member 
of management as witness only - 
that the firearm is not loaded. 



This will avoid firearm handling 
by inexperienced personnel. 

b. Sporting Rifles /Shotguns 

These items will be accepted as 
checked baggage only . Sporting 
rifles/shotguns should be packed 
in a suitable container to avoid 
damage. The standard AA gun box 
should be used to contain guns 
not suitably packed. 

c. Ammunition 

A small quantity of small arms 
ammunition for personal use when 
packed in the original package of 
the manufacturer may also be ac- 
cepted. A small quantity is de- 
fined as 15 pounds per passenger. 
Generally this is equal to 6 
packages of shotgun shells. 

If the passenger desires to carry 
more ammunition than shc.m above , 
the Passenger Service Supervisor 
should ccorc'.ir.ate with the Freight 
Services Supervisor to ensure the 
following limitations are adhered 
to. FAA regulations permit small 
arms amir.uniti<^n in original pack- 
age not to exceed 50 pounds per 
package and only 50 pounds of ex- 
plosive is permitted in a cargo 
compartment. It will be the re- 
sponsibility of the Freight Ser- 
vices Supervisor to ensure the 
maximum' is a-^t exceeded on any 
aircraft. 

d. Rifles - Military Group Movements 

(1) Rifles will be crated by the mili- 
tary and accommodated in the cargo 
compartment whenever possible. • 

(2) If the above is impossible because 
of timing or other circumstances. 



769 



fi^ 



PASSENGE31 SERVICE MANUAL 
Reservations, Ticket Office 
& Terminal Services 



Section 50-1 
P.5 

Jun 24-74 



ACCEPTANCE OF BAGGAGE 



we will wrap the rifles in heavy 
wrapping paper and handle as 
checked baggage after verifica- 
tion from the group leader that 
the guns are unloaded. 

Wheel Chairs - One collapsible wheel 
chair is acceptable as checked bag- 
gage free of charge for each pass- 
enger requiring it. However, if 
batteries are attached, they cannot 
be accepted unless drained as the 
acid could cause damage to the air- 
craft if spilled during the flight. 

Garment Bags 

. Acceptable as checked baggage if 
made of canvas, luggage cloth or 
a leatherlike plastic that will 
withstand normal handling as 
checked baggage and of a type 
that is adaptable to being folded 
and secured in a fixed position to 
permit handling as regular checked 
baggage. 

. Those of the plastic or vinyl type 
variety containing only 2 suits or 
the equivalent clothing thereof 
may be hung in the coat compart- 
ment or held in the passenger's 
lap. It may also be placed in 
the overhead rack as a last re- 
sort if space is limited in the 
c oa t c ompai tmen t . 

. A plastic or vinyl type garment 
bag containing more than 2 suits 
or the equivalent clothing there- 
of, or one of the canvas, luggage 
cloth or leatherlike plastic 
variety, must be capable of fit- 
ting under the seat. It may be - 
placed in the coat compartment 
but if Insufficient room, must be 



stored under the passenger's seat. 

Diplomatic Mail Pouches - Accept- 
able as checked baggage or as cabin 
baggage when so doing will not dis- 
rupt passenger service enroute or 
inconvenience passengers other than 
those accompanying the pouches. 

Allow U.S. Government couriers and 
recognized couriers of other govern- 
ments carrying mail pouches to ac- 
company such pouches onto the ramp 
to observe loading and unloading. 

Also, allow couriers to accept de- 
livery of pouches at plane immed- 
iately after unloading. 

Portable Electronic Devices - Such 
devices are acceptable as cabin 
baggage. 

The use of passenger operated 
portable AM FM radio receivers 
and TV sets is prohibited . 

. Use of modern hearing aids, elec- 
tric shavers, portable recording 
and dictating machines, and elec- 
tronic heart regulators is per - 
mitted . 

Infant Bassinet - Acceptable when 
equipped with fixtures or handles 
through which to secure a seat belt 
and for which a seat has been re- 
served and a ticket purchased. The 
maximum size acceptable is 35" long, 
17" wide and 10" high. 

Pets 

Conventional domestic household 
pets, such as dogs, cats, birds 
(canaries, parakeets, parrots, etc.). 



Section 50-1 

P. 6 

Jun 24-74 



PASSENGER SERVICE MANUAL 
Reservations, Ticket Offi 
& Terminal Services 



A 



may be accepted as baggage. (See 
8. below for acceptance in aircraft 
cabin.) "Wild animals" (cheetah, 
fox, and other pets that children 
may have, such as rabbits, hamsters, 
guinea pigs, mice, etc.,)may be 
accepted, provided: 

a. Governmental restrictions as 
contained in the Immigration 
Guide for international pass- 
age, and Cargo Tariff Circular 
No. 1 for domestic passage are 
complied with. 

b. Gross weight of petand con- 
tainer does not exceed 115 
pounds . 

c. Pet will require no in-transit 
attention. 

d. Pet is presented and will be 
transported in a suitable con- 
tainer meeting the following 
requirements : 

(1) Entrance or exit must be se- 
curely fastened, or, if latch- 
ing mechanism is used, it must 
be accident proof. 

(2) Must be constructed of wood, 
metal or material of compar- 
able strength. Also be leak- 
proof and so designed to pre- 
vent escape of animal. 

(3) Must be large enough to permit 
animal to stand upright and 
rigid enough to support other 
light cargo. 

(4) Must provide sufficient venti- 
lating space to allow a good 
passage of air from 2 or more 
sides. (In summer, suggest 
that the owner cut additional 



small holes in any solid 
sides.) 

(5) Must be no more than 27" high, 
34" wide and 36" long. If 
container exceeds any one of 
these dimensions, call local 
Airfreight Agent to determine 
if acceptable. 

(6) The maximum allowable live 
animal load in any one air- 
craft or individual baggage 
container (LD-3), etc., 
varies based on available 
air volume. Whenever five or 
more pets are to be accepted 
as checked baggage. Line 
Cargo must be consulted prior 
to acceptance. 

Suggest customer check with his 
veterinarian regarding use of tran- 
quilizer pills for his pet. For 
many animals, confinement to a pet 
kennel and the plane trip are new 
experiences. Tranquilizer pills 
given to an animal before the trip 
will keep him calm and comfortable. 

Due to the many varied types of air- 
craft and increasing usage of pods, 
pet kennels cannot be checked in- 
terline. The limited availability 
of cargo space results in the in- 
ability of the originating carrier 
to guarantee that the passenger 
and pet will be accepted on the 
same connecting flights. The in- 
dustry recognizes the problems 
resulting if pets are left behind 
at the transfer point. As an al- 
ternate procedure, airfreight can 
be used. 

For the convenience of our custom- 
ers, AA, at all cities, sells suit- 
able containers. See "AA Pet 
Kennels" for additional information. 



771 



/^ 



PASSENGtK SERVICE MANUAL 
Reservations, Ticket Office 
& Terminal Services 



iection 50-1 
P. 7 

Sep 23-74 



ACCEPTANCE OF BAGGAGE 



Pets - Acceptance in Aircraft Cabin 

Domestic pets traveling with revenue 
passengers may be accepted in air- 
craft cabins within the following 
provisions: 

a. Advance arrangements are re- 
quired (see Reservations 
action, h.)- 

b. One or more pets (domestic cats, 
dogs or household birds) may be 
carried, but must be stored in 

i single container. The pet(s) 
must be able to stand upright in 
the container. Each container 
must also provide sufficient 
ventilation space to allow a 
good passage of air from two 
or more s ides . 

c. Only one container per compart- 
ment, per aircraft, is permitted. 

d. The container must not exceed 
normal restrictions for carry- 
on baggage (13" wide x 23" long 
X 9" high), and must be storod 
under the seat directly in front 
of the passenger accompanying^ 
the pet. 



The pet must remaj 



in the ct 



tainer while in the aircraft 
cabin . 

Note : Space available pass 
travelers are restricted from 
carrying pets in the aircraft 
cabin. (Exception: seeing eye 
dog accompanying a blind pas- 
senger). Pets may be checked 
as baggage, free of charge. 
Pass travelers will be re- 
quired to purchase or furnish 
their own kennel. Pass trave- 
lers engaged in exhibiting pets 
in pet shows will not be per- 
mitted the privilege of free 
carriage. (Ref. AA Regs.) 



Pets carried on international 
flights are subject to govern- 
ment entry regulations. 

The normal, 200%, excess bag- 
gage rates will apply. 

Reservation action - 

All pets will require a PNR and 
in order to adhere to the one 
pet per cabin restriction, it 
will be necessary to check for 
a pet on a flight, class, and 
date basis, before creating a 
new PNR. 



Ex 



^-333Y18aUG - PET 



If no "Pet" PNR appears, con- 
firm the pet in the appropriate 
cabin and create a "Pet" PNR 
using the aci ion code MM. It 
is im.portant that the PNR name 
be "Pet" with the name of the 
accompanying passenger follow- 
ing the slasli. 

Ex: Pet/O'Neill 

Cross reference the "Pet" PNR 
to the passenger's PNR by plac- 
ing in the Remarks Area of the 
"Pet" PNR, "See PNR ". 

The passenger's PNR should con- 
tain the Pet confirmation in the 
AFAX area, with each flight 
cited separately. 

Ex: 4 OS I PET IN CABIN FLIGHT 
333 /DATE 

4 OS I PET IN CABIN FLIGHT 
332 /DATE 

Since some passengers may can- 
cel their reservations and not 
advise us of their Pet, it will 



Section 50-1 

P. 8 

Sep 23-74 



PASSENGER SERVICE MANUAL 
Reservations, Ticket Office 
& Terminal Services 



A 



be necessary to check the cross- 
referenced passenger PNR when- 
ever an existing "Pet" PNR pre- 
cludes the booking of a second 
Pet. If the passenger's reser- 
vation has been cancelled, the 
existing "Pet" PNR shall be 
changed to reflect the new pass- 
enger's name and his PNR number 
in RMKS. 

Ex: -*Pet/New Name 

5*See PNR 

Each cabin will normally have 
only cme "Pet" PNR, however, 
multi-stop flights may have 
more than one, and care should 
be taVen to insure that space 
does not overlap. Note : Ticket 
Lift Agent will include in 
remarks of PLM for multi-stop 
flights^ destination, "Pet"/ 
passenger name and seat number 
or class of service. 

Whenever the "pet-in-cabin" re- 
quest is unable, all salesmen 
should attempt to sell the pass- 
enger our normal kennel proce- 
dures . 

Inquiries concerning the safety 
of pets should include: 

1. Cargo compartments are 
pressurized, as are passenger 
compartments . 

2. Temperatures are kept within 
tolerable limits, however, may 
in extreme circumstances drop 
to 35°. Normal temperature is 
50°- 70°. 

3. AA minimizes amount of carbon 
dioxide in compartments by 
limiting number of animals in 
each compartment. 

A. AA procedures specifically 
forbid leaving pets in ex- 
treme elements while waiting 
to be loaded on aircraft. 



5. Pets are not accepted for 
transportation unless shipped 
in suitable containers. 

6. AA urge? pet owners to con- 
sult veterinarians regarding 
the use of tranquilizers prior 
to shipment. 

Inquiries concerning the more 
complex problems, i.e., interim 
boarding while owner is enroute, 
international shipping, export 
papers, etc., may 3e referred to 
Bed Rock Dogs International Drawer 
502, Westerly, Rhode Island. Bed 
Rock specializes in a complete 
service for the export/import of 
dogs and cats to and from U.S.A., 
Europe, Africa, South America and 
the Pacific areas. Suggest the 
pet owner correspond directly with 
Bed Rock. Inquiries received 
prompt replies. It is the only 
service AA personnel may recom- 
mend, other than the owner's own 
veterinarian. 

NOTE : If a pet dies while in cus- 
tody of AA, regardless of its ap- 
parent value, obtain services of 
local veterinarian to determine 
cause of death. 01-tain from him 
a written statement and forward 
it with Report of Irregularity 
Form OG522/OG622, outlining cir- 
cumstances and indicating veter- 
inarian's fee to Manager Consumer 
Relations, LSC. Pay fee by 
station imprest check. 

Pets are carried at double the 
Normal Excess Baggage Charges . 

Ticket Lift Agent will attach 
the passenger receipt of the ex- 
cess baggage coupon, to the bot- 
tom portion of the boarding pass. 
This will aid the Flight Atten- 
dant to identify the passenger 
who has a reservation for a 
carry-on pet. 



773 



Yj. PASSENGER SERVICE MANUAL 
' Reservations, Ticket Office 
& Terminal Services 



/©v 



Section 50-1 
P. 9 

Sep 23-74 



ACCEPTANCE OF BAGGAGE 



9, Seeing-Eye Dogs - Accepted free of 

charge for carriage in the cabin pro- 
vided they are harnessed, have no 
offensive odor, and are accompanied 
by persons depending on them, ac- 
company their masters on and off the 
plane and sit at the master's feet 
during flight. 

10. Oxygen - Not accepted as carry-on 
or as checked baggage, but may be 
shipped on passenger aircraft as 
freight. (Ref. "Restricted Arti- 
cles" this section.) 

11. Bicycles - One each, single seat 
touring or racing bicycle or one 
tandem seat bicycle per passenger 
will be accepted as checked bag- 
gage. Single seat bicycles are 
accepted at the normal, per piece, 
excess rate and tandem seat bi- 
cycles at 1% times the per piece, 
excess rate. On collection of ex- 
cess charges, indicate single or 
tandem bicycle on excess baggage 
coupon. The passenger must arrive 
at the airport ticket counter at 
least one hour prior to his sched- 
uled departure time. The bicycle 
handlebars should be turned side- 
ways and protective caps (con- 
tained in bicycle bag) placed over 
protrusions (axles, handbrakes, 
shift levers, etc.). The handle- 
bars should be secured to the frame 
so as to prevent them from turning. 
Whenever a bicycle is accepted 
without a shipping crate, it must 
be placed in a standard bicycle 
bag (available for purchase for 
$3.50 plus applicable taxes at 
ATO's). Sale of bicycle bags must 
be supported by completion of 

Form 400. 



F. FRAGILE ARTICLES 

Fragile articles are acceptable as 
checked baggage only if packed 
safely to withstand normal handling. 
If a passenger presents something 
which, in the judgment of the Sky 
Cap, Ticket Salesman/Ticket Lift 
Agent cannot withstand normal 
handling, the Sky Cap, Ticket Sales- 
man/Ticket Lift Agent should attempt 
to persuade the customer not to 
check it. If the customer insists, 
the Sky Cap, Ticket Salesman/Ticket 
Lift Agent must explain clearly 
that American Airlines cannot ac- 
cept any responsibility and the 
piece is being accepted at the pass- 
enger's risk. 

NOTE : See Fragile Article Checklist, 
Appendix I, Page 1 this section. 

If baggage is checked under the above 
described conditions, a Fragile/ 
Damage bag tag (Form OK-11) should 
be used for online and intraline 
routings. If the baggage is to be 
checked on an interline itinerary, 
a Fragile sticker (Form T-62) must 
be attached to the baggage check 
and the passenger's claim check. 
Forms OK-11 and T-62 must be avail- 
able for use by Sky Caps, Ticket 
Salesmen and Ticket Lift Agents. 

It is imperative that Sky Caps, 
Ticket Salesmen and Ticket Lift 
Agents insist that passengers 
loosen the strings of their guitars, 
cellos or any stringed instrument 
prior to checking as baggage to 
avoid any damage to the instrument. 

If the customer presents a claim, 
AA should not accept liability. 
Claims for fragile articles, in- 
cluding liquor, which have been 



774 



Section 50-1 
P. 10 

Sep 23-74 



PASSENGEK SEKVICE MArfUAL 
Reservations, Ticket Office 
& Terminal Services 



A»\ 



damaged, will not be accepted un- 
less it is obvious that the arti- 
cle has been handled by AA in a 
negligent manner. Phoned or 
written baggage damage claims on 
fragile articles will only be ac- 
cepted if the claim check and 
strap check is presented. 



containers which could have con- 
tents that are dangerous and may 



not be accept. 
gage. 

Be particularly a] 
ages that could cc 
ing: 



as checked bag- 



■t to any pack- 
:ain the follow 



In any event, articles should never 
be accepted if improperly packed and 
the customer desires to declare ex- 
cess valuation. 

G. SUITABLE PACKAGING 

Applicable tariff rules require that 
baggage must be able to withstand 
ordinary handling. Good judgment 
should be used when determining 
whether a suitcase (or other article 
submitted for checking) will with- 
stand the following: 

a. 8 to 12 physical handlings on 
and off baggage carts, convey- 
ers, etc. 

b. pressure of 60 pounds per square 
foot - assuming shipment may be 
at bottom of 6 feet of average 
baggage , 

c. some sliding on any surface nec- 
essary to move and stow luggage 
in aircraft and trucks. 

a 12 inch drop on any surface or 
corner (National Safe Transit 
Committee Standard). 

e. 30 seconds of rain before or 
after any move (loading or un- 
loading from aircraft or truck). 

H. RESTRICTED ARTICLES 

Every effort must be made by Sky ' ' 
Caps and Ticket Salesmen to ques- 
tion any passenger with boxes or 



Explosives, Munitions 
Combustible Liquids 
Magnetized Materials 
Corrosives (including Acids) 
Compressed Gasses (inc. Oxygen) 
Oxidizing Materials 
Poisons 
Radioactive Materials 

Local Airfreight Offices maintain 
the official Air Transport Restricted 
Articles Tariff which lists alpha- 
betically all restricted articles. 
■ Any item such as those listed above . 
that is listed in this Tariff, may 
not be accepted as checked baggage . 
Passengers desiring to ship restrlc-v 
ted articles must be directed to the 
local Airfreight Office. 

NOTE : The FAA has legalized the 
carriage of small amounts of toilet 
articles containing "hazardous 
material" when packed in passenger's 
baggage. These articles usually are 
in the form of perfumes, cologne and 
various aerosol can sprays. The 
maximum total net amount of these 
articles which can be carried by one 
passenger is 75 ounces (net weight 
or fluid ounces). The maximum of 
any individual container is 16 fluid 
ounces or one pound. However, this 
16 ounce restriction does not 
to aerosol cans. 



apply 



Exceptions : Personnel from the 
Chlorine Institute, Inc., are re- 
quired to proceed to the scene of a 
chlorine emergency with self-con- 
tained breathing apparatus, packed 
in a carrying case, the total weight 
being 50 pounds. 



775 



/& 



PASSENGER SERVICE MANUAL 
Re'servations, Ticket Office 
& Terminal Services 



Section 50-1 
P.ll 

Sep 23-74 



ACCEPTANCE OF BAGGAGE 



This equipment is acceptable as 
checked baggage only under the fol- 
lowing conditions: 

1. The package has a green, non- 
flammable compressed gas label. 

2. The Agent is provided with a 
copy of the shipper's certifi- 
cate of acceptability for 
carriage. 

The Agent will prepare AA Form 
OK-333, Restricted Articles Notice 
(Reference: Section 55-6 Line 
Cargo Manual). Enter the last 
four digits of the baggage check 
number in place of the Airbill/ 
Waybill Entry on the OK-333. Print 
"Baggage" in large letters across 
the face of the form and staple ;o 
bag check intact. 

UNACCOMPANIED ARTICLES OR BAGGAGE 

For reasons of safety, security and 
compliance with Postal Regulations: 

(1) A flight crew member or flight 
attendant will not accept un- 
accompanied articles or bag- 
gage for carriage in the cock- 
pit or cabin of the aircraft. 



J. PORTABLE CLOCKS 

The FAA has authorized the carrying 
of portable clocks in the cabin 
(refer to FAA Regulations 121-285C). 
These clocks are a very precise time 
keeping device used to synchronize 
clocks at remote locations with the 
Department of Defense master clock. 

Acceptance will be under the fol- 
lowing conditions: 

1. The request is made in advance 
from a government agency, i.e., 
U.S. Naval Observatory or U.S. 
Air Force, for a cesium, rubi- 
dium or sulzer beam portable 
clock. 

2. A half fare ticket must be pur- 
chased with the accompanying 
full fare adult. 

3. The unit must be placed in the 
forward section only in front 
of all passengers on the right 
hand side window seat. It must 
be securely tied down with the 
safety belt to eliminate any 
possibility of shifting under 
normal ground or flight condi- 
tions . 



(2) Unaccompanied articles or bag- 
gage, to be claimed by other 
than the traveling passenger 
or a member of Passenger Ser- 
vices, will not be accepted 
as checked baggage. 

Emergency situations, e.g., medical 
shipments, must be handled with the 
approval of a member of Passenger 
Service Management and the Captain 
of the flight. 



Flights greater than two hours 
duration require that electrical 
power be supplied the clock. 
The preferred source of power 
is from the galley or cabin. 
Lavatory and cockpit sources 
are unsuitable and will be used 
only in emergencies. Flights 
which cannot provide these re- 
quirements will not be utilized 
for transporting the clock. 



776 



Section 50-1 
P. 12 
Jun 24-74 



PASSENGER SERVICE MANUAL 
Reservations, Ticket Office 
& Terminal Services 



/& 



5. The representative accompanying 
the clock is completely famil- 
iar with the requirements and 
will carry with him the follow- 
ing equipment: 

(a) One 30 ft. extension cord. 

(b) Three tie down straps. 

(c) Six electrical plug 
adapters. 

(d) One seat board. 

NOTE : 

Exception : Where electrical 
power is required, these clocks 
cannot be carried on 747 air- 
craft due to a lack of proper 
outlets . 

K. BAGGAGE CHECKED TO MEXICO 

Baggage checked to Mexico cannot be 
interlined beyond the first destina- 
tion in Me:{ico, i.e., passenger is 
traveling from ORD to MEX on AA and 
continuing to GDL on AM, baggage 
may only be checked to MEX. Pass- 
engers traveling through Mexico 
City on AA to Acapulco are per- 
mitted to have baggage checked to 
Acapulco (since Acapulco is where 
passenger and baggage w:ll clear 
Customs /Immigrations ) 



Issued by Ticketing & Terminal Services 



f^ 



Section 50-1 
PASSENGER SERVICE MANUAL Appendix I 

Reservations, Ticket Office P»l 

& Terminal Services Sep 10-74 



FRAGILE ARTICLE CHECKLIST 

If the following articles are presented for checked baggage, attempt to persuade 
the customer not to check it. If the customer insists, clearly explain that 
American Airlines cannot accept any responsibility for damage and the article is 
being accepted at the passenger's risk. Use the Damage/Fragile tag Form OK-11 
for online and intraline routings, or attach a fragile sticker Form T-62 to the 
interline tag. 

1. Musical Instruments - In most instances, the case for a musical instrument 
is not sufficient to prevent damage when packed with other cargo. These 
can be carried into the cabin provided they are within the size limitations 
to be stowed in authorized areas. One-half fare for adjacent seat can be 
utilized as an alternative. Some extra strength traveling cases are also 
available. Crating and shipping by express or airfreight should also be 
considered as an alternative. Additionally, encourage passenger to loosen 
the strings on stringed musical instruments. This will minimize any possi- 
bility of damage which could be caused by cabin pressurization. 

2. Garment Bags - See special rules "E" 3 this section. 

3. Liquor Cartons - The packages from liquor stores in free port areas are not 
considered to be able to withstand ordinary handling. 

4. Typewriters. 

5. Portable Televisions. 

6. Portable Stereos. 

7. Pictures, pottery, statues, unless sufficiently packaged to withstand 
ordinary handling as outlined in Paragraph G. 

8. Knapsacks - Most of these articles have aluminum frames, outside pockets, 
protruding straps and buckles which make them susceptible to damage. 



778 



SENATE QUESTIONNAIRE 



72. What security measures are taken at airport baggage claim areas to 
prevent baggage theft? 



Answer : 

Verification of claim check stub to strap check stub is required at most 
airports. "Match Numbers to Identify Baggage" signs are displayed in most 
claim areas. 

Sky Caps monitor every baggage claim area and are either contract employees 
or actual employees. Customer Relations or Passenger Service Representatives 
are present in the claim area for arrivals at most airports. Announcements 
are made in many claim areas advising customers to check the number on their 
claim check against the number on the tag attached to their bag. Guard ser- 
vice is provided in claim areas at selected airports. Camera surveillance 
systems are utilized at some airports. All unclaimed bags are stored in a 
secured area. 



SENATE QUESTIONNAIRE 



73. What are the procedures for the processing of 
claims regarding pilferage from a passenger's 
checked bag? 

ANSWER 

A report is prepared on a special form with a copy to 
Central Baggage Service and Security Department. Local 
investigation is made. 

If the customer wishes to make claim for reimbursement, he 
is told to put it in writing to Central Baggage Service, 
Including proof of value and ticket receipt. 

Central Baggage Service completes the investigation and makes 
judgment on validity and responsibility and then notifies 
customer of decision, with adjustment check or denial. 



779 



SENATE QUESTIONNAIRE 



74. What is the average length of time required to settle a claim 
for lost or pilfered baggage? 



Eight weeks after receipt at Central Baggage Service of itemized 
claim from customer. 



SENATE QUESTIONNAIRE 



75. What are the procedures regarding the investigation of the 
validity of a claim? 

ANSWER 

To test the validity of a lost bag claim we require the customer 
to fill out and sign a "Statement of Baggage Loss." This state- 
ment contains all information needed from the customer, including 
the request for his ticket receipt, to prove he traveled on 
American, and his baggage check, to prove he checked the bag 
with us. In addition, we request purchase receipts for major 
contents to prove ownership and value. 



780 

SENATE QUESTIONNAIRE 



76. What is the procedure used by the Reservations STAFF to confirm 
requests for seats during periods when the computers are down? 

Reservations Offices maintain a "flight availability recap" at all 
sales positions. This recap covers the STATUS (seat availability) 
of flights into and out of that Reservations Office city/s during the 
current 7 day week. 

This recap is: 

1. Published daily. 

2. Expanded to cover holiday periods, specific flights and destina- 
tions when necessary. 

3. Hand updated during days of heavy use. 

All flights not restricted by this RECAP may be "Free Sold" (up 
to 4 seats per transaction) excepting other airline flights which 
must be requested. 



781 



Resi 



i.-t-;q'j ireo t! .-:!; the Saic::r..;n use Ivr. 
"r!.;'ce busy" K-fy; or ^.'.:ci',.. et the Ticket 
Counter th?: Salesimr. rbovld letvo ' -3 
position to co.vilete the -.lork. 

D. ACKNO'J' ■- ,;:'rNT 



e!!o.. trni Sab ■ 
iT.)>, 'lol.idey 



■•rs, 4 '-■ 

■: by !,olicit- 



Vlieo. a cupro"::^!' presentf hinself, h ' :; 
presence should be ackno.-l edged as 
follows: 

Rosevvatiops Salesmen volunteer thsJ.r 
naiii.es in conjunction viith the 
salutation; 

"American Airlines, Mike Jones" 
"American Airlines, Pat Collins" 
"Flagship Pervice, Pegf>y" 
"International Service, Maria Sauchez 
"V.I.T, Service, Ann Clark" 
"American Airlines International 
Service, Janet Smith" * 
■'■Al cities ^/hcre a separate Interna- ! 

Lional telephone number is published. 
Ticket Salesmen say: ~* 

"Cood morning (afternoon/evening), 
may I help you?" 

In both instances, when it is appropri- 
ate, apologize for the delay, e.g.: 

"Thank you for waiting." 

E. ASK FOR THE BUSINESS 

The customer will often open his conversa- 
tion by saying: "Do you have flights 
to ?" or "'^Tiat is the fare to ?" 

Responses to these questions are fully 
covered under "Quoting Air Schedules" 
c^nd "Qiiotii.^, Air Fares and Other Rates". 
The Salesman icill follow up immediately 
by trying to uell a reservation, asking 
"i/hen are you planning your trip?" He 
will solicit all the custodier 's business, 
including continuing or return reserva- 
tions. 

' r.o -.ervatiori 'ir.i e:'?-en -vrho have begun or 
completed From line Saljsnianship train- 
ing will ask for the business app)yirig 
appiopriate I'loi.i line techniques. 



Tri'-r to ter ■, i^in- 
cujlo'.-'or i-.i. 0' ;--■•. 01- , 
Dc;;-.:-v;)cr, s.' • : -- '.-■ ■ 

(•ir._i, ik,5givi: .. r; ■ 

now. If hi s ,1 i ■ > . .• 
a Follow Up ;■ - iiisi- 

Thir r.ales too i ■;■ .y i: : 
Eastr^r, Fourth o'L' Jury, 
management ' s jiiscreti;,-. 

G. OBTAINliJO AVAILA ;!•;.■_; 
CONFIRMIPG ST-ACE 

Obtain availc:bi,Hty/.s,:. •■■ 

■'■) AA Space - '-on^ ;:1' . \: 
locally pv; ijared ..v ■' 
sheet. 

21 Other A irline Sp-:"? - 

a. From the Sabre ;; . r. 
tion is contain'. <' ':'■ 

b. By a call to the ov' 
local rcr^ervatlcro; . 
number, vhc-n th; ,','■■ 
is not contain?.:", in 



c. By requ:-r.ting thf' 
Sabre \vi:eu it c.u, 
as outlir.ed in a. 

d. For a lif-rting of i 
ments on intern.- .;? 
refer to Sunplci .; 
tion Book. 



-.'Ct vl\ o 
c^ sr.'i o.rly 
ii.-i hoi I.' -y 
;) ro;,'--j;v. cions 
:;rtain, solicit 



i prior to 
;. at loc.-;l 



Ticket Salcsnv 
in the same i.i-.r.- 
the Ticl-it O-'i ic 
Si.hrx -ct. Gin 
Sf.bro will ob! ;:; 
fro-.i AA Rcserv..', 



obtain 



v:e Set 
:bility 



-.en inforr.'C- 

r airline's 
ilephone 
■.e/availability 
5abre. 

ice through 
be obtained 
b. above. 

>asle agroe- 

-,1 flights, 

:y Sabre luforma- 



■ e / ava i 1 ab i 1 i t y 
Ino'J above \jhen 
-.J. vlth a 
.ipped with 
uU'bility 



782 



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ALSO irBPTRICnCP TO PFEBSALE IgYOrTt) SAQKS PSHinp 



U -p ACCEPT lAj' nott'iNT-s Ton -nris dati: a:^-d B?:vo^:n ■/ . .'li-f^-€.,> 

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789 



Questi on: What procedures are taken by the accounting staff to check the 
accuracy of rate computations and to refund any applicable overcharges to 
passengers? 

Ansv/er : American Airlines issues an average of 890,000 tickets monthly. 
Approximately 250,000, or 29%, of these tickets are computer issued. For 
tickets issued under this method the fares are computed by a computer pro- 
gram and, as a result, are considered error free. The accounting staff 
does not verify the fares charged for computer- issued tickets. Our future 
goal is to increase the percentage of tickets issued- by computer. 

The remaining volume of 640,000, or 717o, are non-computer issued tickets. 
Of this volume tariff audit personnel on the accounting staff verify the 
fare computations for about 120,000, or 207., of the tickets. Where pos- 
sible, overcharges are refunded to the passengers. The refunding procedure 
is determined by the form of payment for the ticket. " 

Where the form of payment is a government transportation request (GTR) , 
overcharges are adjusted before billing the value of the tickets to the 
government. For ticketing transactions involving credit cards as a form of 
payment, adjustment credits are issued to the passenger's account. On 
tickets issued by travel agencies, overcharges are sent to them for refund 
to the passengers. In situations where the form of payment is by cash or 
check, we attempt to obtain a passenger address and refund the overcharge. 



790 



78. Qoestion : What is the average lapse of tir.e required to process refunds or. 
unused tickets, or to refund fare adjustments on partially-used tickets? 

Answer : Most requests for refunds involve an unused ticket. When this 
is the case and when the customer submits the unused ticket with his claim, 
v;e don't normally experience long processing delays. With commercial credit 
card transactions, however, time is required for processing of the refund 
credit within the credit card organization. This is beyond the control of 
American Airlines. 

Internal processing times do vary depending upon whether the ticket was paid 
for by cash or credit card and also whether the itinerary covered on-line, 
interline or international transportation. 

The average lapse of time betv/een receipt of a request for refund in American 
Airlines Revenue Accounting office and release of a credit to the proper 
credit card organization or a check to the customer is as follows: 

FORM OF PAYt^NT ON-I.INE & INTERLINE INTERNATIONAL 

Cash 6 Calendar Days 9 Calendar Days 

Credit Card 9 Calendar Days 12 Calendar Days 

The principal reasons for the difference between cash and credit proces- 
S3.ng time is that cash refunds are given some priority and they take less 
processing time. Once the amount is calculated, a refund check can be 
written about as fast as the credit form for a credit card transaction. 
The refund can then be mailed to the customer but the credit forms require 
additional processing to assemble them and prepare a check to the credit 
card company. 

International claims tend to require more time because they are more com- 
plicated and require more technical tariff research. 

It is more difficult to estimate the average time lapse for a fare adjust- 
ment on partially-used tickets. Many of them are worked about as rapidly 
as unused ticket refunds but in certain cases correspondence may be neces- 
sary with another airline, with a selling travel agent or with the customer 
himself. In these cases the refund may not be completed for several weeks 
or a month. In these cases we keep the customer informed of the reason for 
the delay. 



791 



SENATE QUESTIONNAIRE 



79. What percentage of passengers made arrangements for such 
services as car rentals or hotels through the carrier's 
Reservations Offices? 

What is the cost to the carrier of providing such services? 



Simple car rental and hotel arrangements not involving associated 
tour packages (approximately 0.57o of passenger records) cost about 
$400, 000 in fully-allocated salaries to handle. 

Total car rental and hotel arrangements, including those associated 
with tour packages (not more than 1% of all passenger records) cost 
about $2.5 million in fully-allocated salaries. 

These costs are offset by hotel/tour/car rental commissions. The 
complexities involved in determining market gain (or loss) and 
dollar return have restricted the above cost estimate to only 
the salaried area. 



792 

SENATE QUESTIONNAIRE 



PART ONE 



80. What are the procedures for notifying passengers of schedule 
change? 

American Airlines advises and arranges necessary protection when- 
ever a passenger's itinerary will be affected by any of the following 
conditions: 

An earlier departure. 

A departure more than 15 minutes later. 

A broken connection. 

Arrival at a destination an hour or more later. 

Arrival at destination 30 minutes or more earlier. 

A change in airport of departure or arrival. 

A cancelled flight with an alternate (unless alternate is identical 
to the original and none of the above circumstances apply) . 

A cancelled flight with no alternate. 

A cancelled landing that affects the passenger. 

A change of equipment or routing that involves a fare change. 



793 

SENATE QUESTIONNAIRE 



PART TWO 



80. Is automatic protection offered to the affected passengers on all 
flights which are cancelled as the result of a schedule change? 

To minimize inconvenience to the passenger and expedite the imple- 
mentation of a new schedule passengers are automatically transferred 
to the closest comparable service. This does not extend to all 
passengers for the following reasons: 

1. Comparable service is no longer scheduled. 

2. The flight/s chosen for protection are no longer available on 
all days due to previously committed bookings. (Holiday 
traffic, groups, etc.). 

Whatever the circumstances the passenger is called and offered 
protection (automatic or arranged) when necessary. 



794 



A. 


Policy 


B. 


The Gystem Sales Dato 


C. 


Types of Schedule CSjar.^.ie 


D. 


Items Issued by the Grtr.ei-i 


E. 


Local Office Actiyns 



CO ch. 

k' 

Of 

A. POi.ICY "^- 

£!,'■: 

American Airlines is committed to hancHo ch 
r,c)ieduio changes ti; a rr.annor that will LD 
inconveni'^nce thfe smallest number of ed, 
passonqc^rs. Advica of changes is to b-- co- 
given pron-ii-itly to the paEEenaors affc-T.>fJ, so; 
and assistance volunteered to provide- the ^^ 
best possible protection for possengerr. 
whose fliahts have been changed or can- 
cel I'-d. ^^ 

1 , OriUnc-. 

We v.'ill advise and arranrjc necessary 
protection whenever a passenger's 
itinorriry vnll bc-affected by any of 
the following conditions: 

An earlier departure . 

A departure more than 15 minutes ^ 

late''- * gers und 

A broken connection. craph A, 
AiTiva! at destination an hour or 

more later, ^_ Advise tl 

j\rrival at destination 30 rilnutes or ..^ qrhed 

more earlier, 
A ohc.iKjL,- in airport of deparlure or 

arciv3l. 3^ When schcc 

A carf-Ued flight v^ith an djternate fi..; ed aire 

(unless aUei-ndie is identical to co';;itod fr-: 

the criqinel, and none of the above etc.) pass-^ 

circumstances applies), sccommoda 

A cancelled' iiicjr.t with no alternate . ^^^ |.|^„ ^.^.j^,, 

A cEncellsd landing that affects the \^^,.,, ^ij^'g,. 

p.!3::c:-;r5ers. ^,.,^ only, . 

A change of .i;;i,ip'iienl ov routing Init ^ ^^.^ ^^. ^^^^^ 

invcives a fare change^ ccttain co:' 



NotU 



Advise th. ny cn.jr 

in schedi'. ■ ^ . iceived 

fro.Ti ano;' ■ ■ ;::■ :'. 



795 



. ; caiTiora - i 

!SS«;n'jsT In this sit- 
: by Rcsarvaticns of 

,,e, an AA TACTS cu- 
for th.j Ticket Sales- 

j-.-). D-rarnple: OSI 

^:.Yri.\N TO FULL 
CAORJJ DUE TO SKLD 



. Ti'}. SYSILM r,/vl,K3 D/wE 

.-:-lM-. SaL.'s DQto is tho date on v;h!ch 
;;i --A'js oullnt;; will begin :o quote Iho 
i;,-'.v scli>-;dulcs. The purpose of the Sys- 
lom Sales Date is to ensure that all AA 
:iific:Gr. (Commcricil Account, Travel 
'■.-lonts) will booin to quote the new schod- 
uio fii'irultaneoi;;-;!-, . Continue to quote 
r-.T.iUibility and si-U against old schedules 
I. "til the System Sa)es Date.. 

; he System Sales Drito Is included In each 
::onvt;rsion message for all AA offices and 
jppcnrs on the covcrir-.g page of each 
.■chcdulo Change Tr.insmlttal for Outside 
^jIos Outlets. 

:he System Sales Date established allows 
noug!. time for SABRE adjustment of exlst- 
ng records and inventories and receipt of 
he novi SABRE Air Information Direct 
Jchoiiulc: C.rrds and .'V\ connecting cards 
ly all local offices. Any exception to 
iie above will be noted in the Conver- 
sion Message. 



provC'l shi 
Dirc-ctor-1 



rilreci' - 



he System Sales 
■.,■ tVie Rcservatir 
^ral Office. 



itc will be determined^ 
.''i vision of the Gen- 



iysterr. Sales Date 



Vs'hon, in the jiiriiment of the City 
Ivianagoi concn; rod , It oppoars cit^sii^ 
able to request an advancement of the 



Requests for adv3,u-:6ment oi ■• ^jV.'.""" 
Sales Uite should ba based on Iho 

followiiv): 

a. Early releific of publicity. 

b. Introduction of compar.il 1,- ■:<.:up'- 
titlve service. 

c. Existing o;- &ntlolpated dcmnnd to 
the destination to which ::•■■.• -,— - 
will operate over exlstin.j . :: 

d. Service to new destinations ,1 ^ • 
by route autliorlty awards. 

Advance selling against new schodul'^s 
permits us to: 

a. Immediately offer the additional 
service to travel agents and com- 
mercial accounts. 

b. Confirm groups and Individuals who 
might otherwise ba lost to our 
competitors. 

c. Permit a lower call ratio per nales 
In Reservations, thereby contribu- 
ting to reduced costs. 

d. Avoid the usual low load factor in- 
herent in the first few weeks of new 
schedule operation. 

If approval is granted, advancement of 
the System Sales Date will be effected 
In SABRE, whenever possible, and made 
available to the entire system. If not 
possible, a manual control of inventory 
will be necassar/ until System Sales 
Date, at which time the passenger 
records will be entered into SAF.i'.E. 

Notification to the t.ystem it,l\.' a. bookiix) 
wire which recaps, tlie schedule included 
In the advance booking and the sales date. 



796 



SCi/LDULE CWx.^iGZ 



W'hc-.n advancicd in SATir.i;, normal SA1.!RE 
procedures opply. 

1 ' ;;'.■- i ,. 1;. conlninincj p 

..; -;inted and I 

. • : ■ ' -.3 and 

Tic : -t Ol'.icc: ..:■ soon gs each booking 
v.'iio is tran^n;ittGd. 

If T,h( s-ilc;; dutc cannot be advanced in 
SAlJP.r., advance sale of the new seivice 
usucilly will ija restricted to the cities 
served by the flights. In this instance 
the following procedures for advance 
selling against new schedule will apply: 

a. The advance schedule will be made 
available to all Salesmen. 

b. Flights will be confirmed on a 
free- sale basis. 

c. The selling city will maintain a 
manual record of reservations made 
on advance schedules and will 
create or update the passenger re- 
cords in SABRE on the System Sales 
Date. 

(1) For passengers originating on 
an advance schedule, the PNR 
will be input in SABRE on Sys- 
tem Soles Date. 

(2) For passengers originating and 
holding return space on an ad- 
vance schedule, the PNR will be 
input on System Sales Date. 

(3) For passenger originating on an 
advance schedule holding a re- 
turn flight on a current schedule, 
input tho'return segment immed- 
iately. Show the arrival as AlUJK 



by Inserting the AIWK scg:nr;-,; 
prior to the holding currenv ., :- 
mont. Show the. r.dvanced ii ^-.t 
as space held in the Remar! ;; 
area. On System Sales Dm. .■<'.- 
just the PNR by ini^utting tlu 
originating segment and di;ic:ii- 
the remarks pertainin-i to tlic 
advance flight. 

(4) For passengers originating o:i i 
current schedule holding return 
,on an advance schedule, input 
the originating segment and shov; 
the advanced flight as space 
held in the Remarks area. '.)n 
System Sales Date adjust the 
PNR by inputting the return seg- 
ment and delete the remarks per- 
taining to the advance flight. 

Whenever possible, advance schedule 
patterns will be Incorporated in a regular 
schedule change. This would permit 
maintenance of seat inventor/ m SABF.F 
and eliminate the requirement for external 
record keeping. 

C. TYPES OF SCHEDULE CH^KGES 

There are three types of AA schedule 
changes: 

1. Major : This type affects the m.ajori- 
ty of AA flights, and occurs twice n 
year, the last Sunday in A.pril and 
October. Due to its size and com- 
plexity, items from tho General 
Office are mailed rather than sEnt 
by PLT. 

2. Min or: This type affects a fev/er num- 
ber of flights and may occur at any 
time during the year. Items from the 



P-Di; 



797 



ccinccllation -" 
fliyhls or sc>v 
bcr of days . 
occurs; at tn 
ods atid may ^ 
otlier period .: 
Schedules Dci 



iricnt: 



New Year's n::y - Jar.uary 1 

Lincoln's RirtiKtay - February 12 

Washington's Birthday •- rv;;:riH,-py=€-2 

Ertster 

W;;:nor)ol Day - Mrrrarot! 

Ind' or^ncionco Pay - July 4 

Labor Day - fir?.t Monday in Sept. 

Thanksgiving Day - 4th Thursday in 

No'/ember 
Christmas Day - December 25 

Upon receipt of the Holiday Fre- 
quency schedule, Central Control 
adiusts SABRE to leflect the can- 
celled flights. 

in addition, there aro the changes in 
other airlines schedules which may affect 
our iritrrline passengers, especially those 
rc.nnecti'i-i fron! or to -'lA. 



>siii:d by the gener/u 



ri.e following items are issued by the 
General Office from the person and de- 
partment ^-hown in parentheses. Tf a com- 
plete item is not received, or if there are 
questions concerning it, address queries 
to the person and department shown. If 
ihcre are missing parts of mossanes, ro- 
c:-,'est i'l this order until obtained: (1) 
i-heck local r;om-nun:ca-ions;'( 2) chock 



flifjhi [\.:d if u:\ch,ingc':. 

2, pon\-e r:ion Klo r- saga (A ppc pdi>: ID 
(Passenger Services Divir.ion, 
Maivager Central Reservations Con- 
trol): This Is sent for all schedule 
changes, by PLJ' for minor changes 
and lioliday frequencies. The pre- 
amble of the Conversion ^'essagc 
will include the System S.'Jcs Dale. 



The Conversion Message covers all 
changes requiring advice to the 
passenger, and shows the disposition 
of all passengers on cancelled fliglits 
or on cancelled legs or segments. If 
suitable protection can be nade within 
3 hours of the original departure or 
arrlvnl time on a new or e;-:tor,ded flight, 
such protection is assigned in tl-.e Con- 
version Message. Otherwise, pass- 
engers are shown as cancelled, and 
each office obtains its own protection 
for these passengers. 

Additionally, Cer.tral Control prepares 'l 
a Compilation Listing whicli is mailed 
to Reservations Offices on request. • 
The compilation is a detaU"d lijt of 
all flights affected by a 3chc;:ule 



798 



sc 



:dule ctiamgi 



change, compares ilie old and now 
schocuilcs, and Includes nioal and 
seat rf'rervc.tlons reference informa- 
tion, tho System Sales Date an-': con-- 
veraion inrormatjon. 

Ad -.' J )i.-.- Schedul.; B ooking Wir p 



(Appon--i:.- TTI 

(Passenrjer Saler- and Passenger 
Services Vice Fror.ideii's); This is 
sent by PLT when, vor i'. hns been de- 
cided that new schedules should be 
made available for sale in advance 
of tho normal System Sales Dale. 
The PLT will list ;;y fUnht number 
those flights on v.'hich adx-ancc 
bookings may be made. 

Gene r al Schedule Revined Pages 
(Schedules and Equipment Utiliza- 



by >^ii.:u'ji;s cur , . i.Or 

schedule chanciL :he 

pages recappiu:; . : r; 

sent for holiday |j>_iio-,;.,. ljim tr 
mittal will carry the System Sales 
Date on the covering page. 



jABPi 



(Ground : ices, Manager 

Pcforenc- ;.ia:orioi/: .'.il Direct 
ochertule, Connecting ;^ohedule and 
Fare , and General Reference Feed- 
back Cards are Issued for each sched- 
ule change. Direct Schedule and AA 
Connecting Schedule revisions reflect 
the S-rilen Date in tho lower k;fl hand 
c^fncr of the cards. 



E. LOC/vL OFFICE ACTIONS 

Upon receipt of a schedule change (either 
a schedule v/iro for minor changes or 
holiday frequencies)-, take the following 
actions: 



Pre 



re to Sell o:' 



Date 



Ised SACRE 



Major Changes : Ins 
Air Information Direct Schcrailc Cards 
on System Sales Date and use th^m 
as the source of iniorm.ation for all 
-transactions on or after the eifectiro 
date of the new schedule. 

Holida\ Freouoiicir ~: Insert C, r.-.-ral 
Schedule pages immediately on re- 
ceipt. If SABPvE reply to individual 
selling action indicates flight is 
affected by the holiday freguc ncy, 
salesman must chec!; holiday Ir::- 
f(uency pages to df lermine altornat.. 
service. 

Minor Changes : Tr-.srr' revised 'i.'i'.'" 
Air Information Oirc.-l Srh'-dule I'ar.i. 
on System Sales Date' and use ^ i-.:.r. 
as the source of information for :r .n - 
actions on or after the effective ri-.rx 
Dl the new scliedule. 

Availability and Intori'iation 

Adjust the local Onick Reference 
Availability ditto master to reflect 
all local and regularly used cono,.--.- 
inj flights out of other cities.. 



b. Change FLIFO li.= 
departures and ,11 
formation aff ■ 
change. 



!>Oards, 



799 



Wi-.on fli 



qucuvi- . 

line of llig;:i -viU enter V., 
on their dircnl SABRE cc'r.' 
or pages, inckiHing all r 
[ori.iation. ir.cluslc;. 
cards will be at th 
the Keservalioiif; K'li:. . 'A\\e: 

rcorvntions offices wlli n;cr elt!-f 
on SABRE schedule cards or pages, 
or th.; bottom of the 7-day avail- 
ability recap on a daily basis. 
Appropriate instructions concerning 
procedures for recording sales will 
be issued locally. Other local ac- 
tion which will promote sale of the 
flights should also be encouraged. 

Fas ycnaer JJamc P ecord A ction 

PNR's of passengers holding or 
listed on a flight affected by a 
schedule change are handled accorc 
ing to the particular situation. 



. onriate. 

,. .r.re neithe;- a telep!ione nor LCTI- 
:>._ -d are present, the TNI-' x.'ill be 
.ca:r:d to the city vjhlcli c:r0ated 
tho lecord. 

Tf there are li:actlve or flown seg- 
ivi.-vits, (regrirdlciss as to presence 
of phone field or locator field) , 
SAi<r;E locates the first active seg- 
ment in the PNR and: 

a. If it is OA, a teletype message 
is serit to the boardpoint of that 
segment, 

b. If it is AA, the PNR is placed 
on ASC queue of the boardpoint 
airport code. 

Listed ?ac r.or(:--js. The action code 
is changed to "A^X." 

Example: 23 5Y8MAY FKORD WL2 



ni>)ht cancoiled , Ng^rolecllon 

Molriinq Tassenqers . The action 
code for the segment Is changed to 
"WK." 



No attempt will be made to notify 
listed passengers who have no 
protection. 



rxaii.pi^:: llOnSMAY STLTIII, WK3 

If thort. is a telephone field, the 
PNR is placed on appropriate 
schedule change queue of the city 
code preceding the telephone 
number in the PNR, 

If there is no telephone field in the 
PNR, the LCTR field is examined. 
Where this LCTR field indicates the 
PNR was created by SAERE from a 
teleiypc message or input by a 



Holding Passengers . The action 
code for the cancelled flight is 
clianged to "WK." New segments 
for tire protection flight.'^ are entered 
using the action code "SC"; this 
segment Is Inserted immediately 
following the cancelled segment 
and both remain in the itinerari' un- 
til the passenger notification has 
been completed. 

Example: 119F18MAY STl.TUI. V/K2 
17.5F13MAY STI.TUL ?C2 



800 



SCIIEDUI..r. r!i/.NGE 



i; ■ . The iiction 

c ■ .-Q "WL" for the 

C' • r.t. A new seq- 

^' ' ih the action code 

ll"' , :.'s will not be 

pLirfJ en cu-zun and passenger 
noUficatlon wUJ not be attempted 
unless the pniseno'cr was a pri- 
ority listing (JL). Where the pass- 
enger was a priority listing (JL) , 
the cancelled segment action code 
Is changed to WL and the new seg- 
ment Is added with the action code 
JL. 

Exajiiple: 235r<iMAY FKORD WL2 
311F8MAY JFKORD JL2 
Note : 

If a canculled flight contained the 
action code KL, it vnU be changed 
to WN. If protection on a flight 
was accomplished, a new segment 
will be added with the action code 
KL. 

Example: 235Y8MAY FKORD WN2 
ailFOMAY FKORD KL2 



do Spec ie- iv^rilL^. 

Schedule change 
transiVi a speci;. 
V/hen a ^pecisl :. 
viously reciueslc 
must enter the tu' 
that contain an Si 



-:raras w-,1 not 

has bc..;i prc- 

V new fie;.:!ri<;nts 
;tion cori2„ 



!:a.Mfeltod 

The need for pas:.er.gnr notific.irion 
is determined in acsorciancc with 
the conditions outlined in paragraph 
A. The reservations records for 
passengers who rr-j-t bo crill, d nrc 
(with the excepti ^ ;: : .. :,.- 

quencic-; ), auto, ; r,,-, 

the Schedule CI. t;-,c v\ 

cities whicli v^ili co:unci tlio p-Ti^sengc 
SABRE first accomplishes neces.^ar^' 
block booking, transferring nil seg- 
ment seats sold from one flight 
where protection is the rule, /vfter 
this block booking is completed, the 
PNR protection piss is ran. 



Holding ra^^^ngm-c. The action 
codes are handled the same as for 
passongon noldiiig on a canceled 
flight for whom there is protection. 
They will be notified of any change 
in originating or landing airports or 
in departure or arrival times in 
their segments. 



Schedule Changes are processed 
by SABRE II on System Sales Date 
in one pass for all dates. PNR's 
are processed by date, in ascend- 
ing order from effective date, and 
placed on the cities' queues in 
chronological order. 



la£tSiLFa£.aonaQrj;^ Handled the 
same as for listed passengers on 
a canceled flight for whom there is 
protection. No, passc-nger notifica- 
tion will be attempted unless the 
passenger ic. a priority listing. 



Reservations Offices will be responsible 
for placing on a locally designated tiueue 
those PiIR's of local boarding passengers 
who-c flights are affected by a Heli.-i .■• 
Frequency cancellation. 



801 



to 



■■■jT'e 



PLT 
ntory 



h;is been acij'j.'^t.pd .?•';■ :'' ■. fltghlK/Kt'Lj- 
ir.ents Qffoclfd by tlif. holjaoy frequftncy. 
T!ie lioliday rrccuency C'.-noral Schedule, 
issued appiOMimntely ono month In aci- 
Vtince of e-iich holic;;)'.- , ; •; the source to 
dstormine tho flights to l-^ placed c-v. queue. 

Ar, PNR's arc displayed, -ontact the pass- 
enger and arrange nccosF.ary reacccmiiio- 
dation. IJ unable to cor.tGct the pascen- 
ger, change the status code of the can- 
celled segrnf^nt from UK to UN, auto- 
iviatically placing the P'a'R in basic queue 
for subsequerit recall. 

Also change the status code of the can- 
celled segments from HK to UN for the 
following PNK's: 



cii ijroprlQle If you are . c 

a passenger of a schc . ich 

will affect hi;; downlin. , - -:..........-,, 

or return reservations. This will alert 
airport ticket lift personr:ol to advise 
the passeng:." as neccr.sari' prior tn 
bc=;rding his originating flight, e.g., 
UTR TO ASC 3 23 22DEC LGA BUF CNLD 
NO FRTK 500r/10DEC - "'.A (Reference 
PSM, Res. &T,0. Section 10-bl.) 

b. For major (usualb/ op.ly April and 
Octob::! .:..yliM'ht/'s;.i:. i.,ird time 
changes), minor, ...J holiday fre- 
quency scliedule changes. Reserva- 
tions offices \vill c!;;:!r their queues, 
and complF.te notification of pass- 
engers as soon as possible after 
system sales date. 



1 . a selling city other t}ian the board- 
ing city. 

2. created by A^ non-Sabre locations. 

3. created by other al! lines. 

At end transaction this will aiitomatically 
rcnite the PNR as appropriate. 

Not e: Depending on the number of PNR's 
affected, Reservations may decide to 
clear the queue and change the segment 
5,;atu3 code of the cancelled flights 
froiii HK to UN prior to aTtei.-ipting pass- 
0:"ier notiiication. 



Kfajor and N'inor Schec 
aj-.d lioiida '- rrecuor.ci ' 



le Changes 



Upon receipt of (or placement of 
PNRs in) the Schedule Change 
Queues, call local passengers, 
check the complete itinerary for 
all segments affected by the 
schedule change and ad,vise the 
passenger of all changes. 



When scl'.edulo changes are accom- 
plished in relatively close succession, 
as is often the case in the Fall/ 
Winter i-ierlods, schedule change 
queues should be clerred prior to 
the next schedule change being run. 



Schedule ch,iii-c a.Vit. 


■ ■ (actual 


PNR's) may bp innilpd 


lo Af^ency 


and Flaqshlp iiccounts 


and other 


airlines locally in 1 


icu of tele- 


phone notit icacion, ii 


11 accordanci 


with the following pr( 


?cedure: 



(]•) The date of t!,e. .-.rio Inat in'; 

fllfht imisC He ar least 7 days 
after the nailing date. 



802 



The schedule clianrjn invoUci 
will be easily undersLonc! hv 
tlie customer and would noL 
normally require a calll)cick. 

Prior to mailing Ihe PNR's the ac- 
tion/advice cocies must be cliangod 
from SC to HK and the WK segments 
cancelled. Notation will be made 
in Remarks that the PNR v/ns mailed. 

The affected part of the 
Itinerary will be underlined - 
prcfcrahlv in red. 

The schedule chance or proirjc ■ 



change by 
fiiSsengcr; 



Take cai.cellatio'i •- 
fliRhU (original, o- 
desiresl by pasr.un'^c 



-ion fc-r 
ilternat.: 



If Chan 
arrival 



i:e results in a char 
at a conntrcting poi 
;ll advisf: r..;ceivinf 
irrival. 



END 
.led hy Reservations Servic.-^f: 



• \"f 


■rcies, magship acco\ints 


1 ,.rl 


ifr airlines to which 


.1 in; 


:■: are made ;iust be aM e 


inLr-rpret the passenger name 


:ord.= and agreeable to liandling 


this manner, /vrrangemc i ■; 


h n 


lagshLp and Agency acrnunls 


«iid 


be coordinated vitb 1 l.r- 


lanrr Passe iger Sales. 


pro. 


redure will pemit accuT^in- 


1) <,- 


■vcral iJiiicrarics for ihe 


account for rrailing at onf 


till 


1"! eliminating a suustantial 


■r ol 


" telephone calls. 


';;l, . 


vill -mm- „.;irr,Uy h.indle 




-> other nir- 



;iar.iar,-iph A. 

:. ^ . .. i.: unly become 

voh'od in sehedi..ic chanT^ advice 
OA'.=i when SAnRH has difficulty 
routing a mesraqc. Noiilieation 
' '.'!•■ local Po.v.r-'ations Of.^ice is 
c -^.,u-y onl: . iirn the PNb' is 



803 



SCi'-.UUI.i-: UIRE 



HP ■.__■ _ 

sQ';'.:yjL. 


n?s. Ko. 2n-6s 


KU'fi '^rXD 


a;':s nci'v on fri oct i. fqcy times st:;s mel'.ls sem rsto si'lec kmn 


vKC'XSi ir.iLEss onvj indcd. 


1 . 


EQPT :'-707 DAILY I'G 24 


11 - 


EQrT B-720 DAILY PG 24 


15 - 


JFK 1800 SFO 20'.S PG 2 9 


16 - 


EQPT li-707 EX SAT i B-720 ON SAT PG 37 


18 - 


EQPT B-707 FQCY EX SUN PG 39 


19 - 


CNCl.D FG 27 


22 - 


EQl'T B-/07 DAILY LAX 1130 MEM 1547 --1630 PGS 21, 35 


85 - 


EQPT B-720 DAILY PG 25 


205 - 


EQPT CV-990 & B-720 ON SAT PG 28 


3A9 - 


BUF ORD KX SUN OKD DAL DAILY BUF 0810 ORD 0830 - SFAT RSVN SELEC 




E F/C EODG PSG^'S B COACH PSGKS 0900 DAL 1002 PGS 8, 22, 40. 


3C9 - 


nivj DrLin: sil^.t rsvn selec :,ote 071o ord 0806 cncld ord dal fgs 8, 22 


650 - 


JFK 2035 PTO 2135 - 2205 BOS 2230 PG 7 


740 - 


FQCY SUN ONLY PG 6 


7«9 - 


EUt OMO ORD 0855 PGS 8, 40 


796 - 


REDESIGI.'ATE FLT 788 PG 21 


904 - 


XTND EX SAT ORD 1523 - 1555 DTW 1708 PGS 16, 34 


912 - 


ORD 1620 DrW 1733 - 1755 BUF 2007 - 2030 ALB 2141 - 2200 BOS 2250 PG 16 ; 


AUD 917 - 


EX SAT & SUN LGA B 0830 DCA 0950 PG 4 


9b9 - 


SAT ONI Y FLT CNCLD PG 8 | 


9C9 - 


EX SAT i SUN PG 18 ( 


ADD 939 - 


SUN ONLY EvIR B 0650 PIT 0831 - 0855 CVG 0924 - 1000 BNA 1012 L 1040 [ 




HOU 1343 PC 18 



804 



AAXRK !iP::RA - ruLTRi:..i .....::.v - ss ;'--.L.i^ - O'V n:--i?.,\ - matzko - CD.urR; 


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CONV AND PSGR Al-V MSG CCV.: ?i'.SU Wli';. 20-65 Ert OCT 1. SYS SI.S DTE IS SEP 19. 


COXPLKTb SABRf ; '.\ IM" i ; :r;CT SKKli ;:v\C:ES WL Ai^iUVE 3Y THIS DTL. 


18 s ONLY psn;:; cni.d. 


19 PSCRS CNLD. PKOT G>.' AV'L ON 15. 


38D PSCRS CNLD. PKOT ON AVI, ON 215. 


389 PSCRS DODC Dn: Or;- dm. l-.OLn 389 TO 0;iD AND j.'iy TO DAL. PSCRS BODC Oi(D OFF DAL 


MOLD 349. 


717 A PSCRS HOLD 917. T PSCUS CNLD. PBOT ON AVL ON 917. 


740 XS A PSCRS HOLD 9-*6. XS T PSCRS CNLD. PROT ON AVL ON 946. 


769 PSCRS HOLD 7'; 3. 


7 96 PSCRS HOLD 7!>S. 


960 J ONLY PSCRS CNLD. PROT ON AVL ON 354. 


90 9 J ONLY PSCRS CNLD. PROT ON AVL ON 353 BODC LGA . 


989 S ONLY PSCRS NOW BODC E.:" . 


IN ADDITION TIME CHANCES OCCUR ON THE KLWC 


15 .IFK/SFO 


22 LAX/riEM/SDF/.IFK 


349 BUF/ORD 


6 50 JFK/PVD/BOS 


912 ORD/DTIn'/BUF/ALB/BOS 


986 MEM/BNA/SDF/CVG/DAY/CMH/CLE 



805 






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FOR 


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ING PURPOSES AND l.'L 


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EFCTV DTES 


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SUNDAY HAY 23 


















28 


- XTND EX SAT B-7 20 


UAL 


SEAT PS' 


N SCLEC Q G 2200 ORD 


305 3 








ADD 


35 


- EX SUN Ii-720 F/Y 


SVC ONLY ORD 


V SFAT RSVN SELEC C/R 


AND 


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LAX 


1000 


ADD 


Uh 


- DAILY R-720 LAX V 


SEAT RSVN SI 


LEC W L 1300 DIA 2038 


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140 




ADD 


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- EX SUN B-720 JFK 


1015 


SEAT Ri-Vi; SI'LEC HAL 1115 V SEAT RSVN SELEC V 


L 1145 






LAX 1335 
















ADD 


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- EX SUN B-720 BOS 


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ADD 


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- EX SUN B-720 DTW 


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SELEC 0915 BOS 1147 










ADD 


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LAX V SEAT RSVN SELLC W L AND 


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FOR 


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ADD 


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ORn V SEAT RSVN SELEC W D AND 


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800 










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N SELEC W L 1030 ORD 


1607 








RAUSCIIER 

















806 



SENATE QUESTIONNAIRE 



81. What is the carrier's policy regarding the replacement of lost or 
stolen tickets? What is the policy regarding the refund of such a 
lost or stolen ticket? 

Under advice from a passenger that a ticket issued on AA stock has 
been lost or stolen, American will: 

1. Without charge, issue a replacement ticket to the enroute passenger 
for continuing transportation. 

2. Require the originating passenger to purchase a new ticket and 
arrange for conditional reimbursement of the lost ticket. 

In either case, (refund or reissue) the passenger is asked to sign an 
indemnity (see attached) guaranteeing American Airlines, Inc. against 
any loss due to usage or refund on the lost ticket. 



807 



PASSENGER 1-HRVICE MANUAL 
V/A'] Ticketing EcUiion 



Section 30-20 

r.i 

Mar 15-71 



LOST TiaCETS 



A. General 

B. Basic Rules 

C. Preparation of Application for 
Refund of Lost Ticket 

D. Ticketing Instructions - Replacement 
Ticket (At No Cost To Passenger) 

A. GENERAL 

A passenger who has lost his ticket or 
exchange order will be... 

1. issued a replacement ticket for 
continuing transportation, at no 
cost, or 

2, required to purchase a new ticket 
or exchange order. 

B, BASIC RULES 

1. Replacement tickets may be issued 
at no cost to the passenger under 
the following conditions: 

a. For continuing transportation 
only, including return portions 
of round trip tickets. 

b. Approval must be received from 
City Manager, Manager Pas&enger 
Service, or designated' Super- 
visor. 

c. Lost ticket must have been 
issued by AA. 

d. Passenger must be able to fur- 
nish satisfactory identification 
comparable to that required for 
acceptance of personal checks. 

e. Passenger must, to the extent 
that he is able, provide as muc^ 
of the information, required in 
part 2 of the "Applicacion For 
Refund or Replacement of Lost 
Ticket", Form C-79. 

f. Passenger must sign a completed 
"Application tor Refund or Re- 



placement of Lost Ticket", Form C-79, 
to protect AA against use or refund 
of the lost ticket. 

When provisions in 1. above cannot be 
met, the passenger must purchase a 



new ticket. Follow nor 



rocedures 



for issuance of a new ticket. An 
"Application for Refund or Replacement 
of Lost Ticket", Form C-79, must be 
completed to initiate action for re- 
fund of the ticket that was lost. On 
C-79, complete the form of payment of 
new ticket area, i.e.. Check, Cash, 
ATP or other form of credit. 

When the lost ticket was other than 
AA ticket stock, and the passenger 
makes claim to AA because he is 
traveling on AA, DO NOT complete 
Form C-79. When possible, check 
with the issuing airline to determine 
if they will issue a replacement 
ticket. Request passenger to file 
lost ticket refund request with the 
original issuing airline. 

Refunds for lost ticket will be made 
only by the Passenger Refund Branch 
of Revenue Accounting, and only when 
the following conditions exist: 

a. The passenger has filed an 
"Application for Refund or Re- 
placement of Lost Ticket" Form 
C-79, not later than one month 
after the expiration date of 
the lost ticket. 

b. The lost ticket has not been 
honored for transportation or 
refunded, and the sale of the 
ticket had been reported by 

the field location when the lost 
ticket was issued. 

Note : A $5 service charge will be 
deducted from the value of the unused 
lost portion of the ticket in accord- 
ance with Tariff Regulation, 



808 



Section 80-20 

P. 2 

Mar 15-71 



PASSEiN'CER SERVi'-i; .■•.:;i 

Ticketing Edition 






n 



American Airlines 



SIGNED AND HAS NOT E 



WIST BE 
FULLY 



r- 



^,...A.„„. 



Chtck '^l. C.ih □; ATP □. Oihn c 



HBTJNDS. LSC Od AHACH TO AUOnOS COUrON t 



-rAssNcn {ocsTioT Tws cory » iffi-ActMiMT nofft c 



809 



:l ^ PASSHN-Cr:.R SERVrCF. 



Tickotifig Editif 



Section 80-20 
P. 3 

Mar 15-7i 



LOST TICKETS 



C. PREPARATION 01' APPLICATION FOR 

REFUND OR REPLACEMENT OF LOST TICKET 

Under advice from passenger that ticket 
or exchange order has been lost, com- 
plete Application for Refund or Replace- 
ment of Lost Ticket, Form C79 (see page 
2). 

The Application for Refund or Replace- 
ment of Lost Ticket is a combination of 
a report of loss and an indemnity sign- 
ed by the passenger guaranteeing 
American Airlines, Inc. against any 
loss due to usage or refund of lost 
ticket. No additional lost ticket in- 
demnity form will be mailed to the 
passenger to be signed. 

Obtain information required from pas- 
senger and complete the Application: 

1 Point out the provisions of this 
section of Application to the pas- 
senger. 

2 Print passenger ' s name. 

3 Airline code (001), form and serial 
number of lost ticket, (if known). 

4 Lost Ticket must have been issued 
on AA Ticket Stock, 

See B3 (page 1). 



8 The location is very iiiiportant. Show 
the city opposite "where purchased". 
If the locTtion is dovjiitcwn and more 
than one American Airlines ticket 
office is located in that city, show 
the address, or the office abbrevia- 
tion, as shown in the Roster. If 
purchase was made at a travel agency, 
show the agency name. 

9 Proper indication of Form of Payment 
is of further assistance to Revenue 
Accounting in locating record of the 
transaction. If form of payment was 
by credit card, give ATP number or 
other credit card number in space 
provided. 

10 Section 3 of the Application ntust al- 
ways be completed. If no new ticket 
is issued, merely check "No". If a 
new ticket is issued, check "Yes" and 
enter its forn and serial number. 

If the passenger has to pay for the 
new ticket, indicate this in the ap- 
plicable box for "check", "cash", or 
"ATP", etc.; if the new ticket is 
issued without additional cost , mark 
the "Issued Without Charge" box. 

11 Print name of person or company to 
whom refund should be made. 

12 Print street address. 



5 Lost portions of ticket. 

6 Used portions of ticket, indicating 
any flight information known for used 
portions , 

7 Give exact or approximate date the 
lost ticket was purchased. 



13 Print city, state and zip code. 

14 Obtain signature of claimant. If 
information obtained on Application 
is by telephone , it will be neces- 
sary to mail Application to claimant 
for signature. 



15 Date of Application. 



810 



Sect jrn 30-20 
P. •' 

Mar i:>-71 



PASSliNGKR SERVTCr mmAl 
Ticketing Edit, .oa 



i>^ 



Wlien a refund is applicable, the 
Application (if completed correct- 
ly) is all the infonnation Passenger 
Refunds requires in order to complete 
the lost ticket claim with the 
passenger. 

Validate in upper right corner of 
form. Submit Application for 
Refund or Replacement of Lost 
Ticket as follows: 

1. Application for Refund (no re - 
placement ticket issued ) 



Part 1") Forward 
Part 2j" Refunds, 



to Passenger 
LSC. 



Part 3 - Present to passenger. 

Part 4 - Retain in station file. 

2. Replacement Ticket issued 
(no application for refund ) 

Part 1 - Attach to Auditor's 

coupon of replacement 
ticket that was issued 
at no charge. 

Part 2 - Destroy. 

Part 3 - Destroy. 

Part 4 - Retain in station file. 

It is not necessary for office 
involved to blacklist or initiate 
blacklist procedures on lost tickets 
or exchange orders. 

When a Lost Ticket Application Form 
C-79 is prepared to report a Lost 
Ticket-by-Mail Sale paid for by a 
credit card on automatic billing basis 
Local Management may waive the $5.00 
service charge if in their judgement, 
the loss was not the customer's fault. 

To waive the service charge, annotate 
the form C-79 in the U4>per right hand 



corner above Agent Validation. 
"Automatic billing TBM - $5 Service 
Charge Not Applicable" per 



(Local Manager) 

D. TICKETING INSTRUCTIONS FOR REPLACE- 
MENT OF LOST TICKET (AT NO COST TO 
PASSENGER) 

1, Issue exchange ticket following 
normal ticket issuance procedures 
with the following exceptions: 

a. Indicate "NON REF" in the Form 
of Payment box. 

b. Insert "LTA" (Application for 
Refund or Replacement of Lost 
Ticket) in the "Issued in Ex- 
change For" space. 

c. Fare, Tax and Total on ticket 
will reflect only the fare ap - 
plicable to transportation shown 
on replacement ticket . 

Example - Excursion ticket should 
show 50% of applicable excursion 
fare between the points issued. 

d. Part 1 of completed Application 
must be attached to the Auditor's 
Coupon of the new ticket and 
submitted with ticket detail. 
Parts 2 and 3 should be destroyed; 
do not attach to the Auditor's 
coupon with the original, and do 
not give anything to the passenger 
since no refund is due. Essential- 
ly this is an even exchange trans- 
action. 



811 



C.T.C.(A)N0.53 



C.AB.K'J.A7 



Toriff Publisheri. Inc.. Aqtot 
L AND JOINT PASSENGER RULES TARIFF NO. PR-6 



SECTION VII • REFUNDS AND REROUTINGS 



VOLUNTARY (Contlr 



Made . Except 



passenger 



REFUND OF TICKBTS AS DESCRIBED BELOW: 



Again 
Again 



WILL BE MADE ONLY TO: 



The purchaser 



The U.S. Government Agency which Issued 
the U.S. Government Transportation Reques 
with a check payable to the "Treasurer of 
the United States" 



UA 



AL,TS,AA,BN,CP,DL,EA, 
or WC issued against 
Credit Plan Tariff No. 
. No. 116, issued by 



whom such 



refund shall 



valid refund 



(Applicable only 



another person 
;d. A refund mad 
the person so de 



refund will be made directly 
(C) Lost Tickets (Not Applicable 



the employee's company or the travel 



(1) 








the 
Ing 


carrier which Issued the ticket will make a refund to the passenger in the fol 
amounts, as applicable: 




(a) 


If no portion of the ticket has been used, refund will be an amount equal to 
fare and charges paid. 




(b) 


If a portion of the ticket has been used, and 

(1) the passenger has purchased a new ticket covering the same t ransportat to 
that covered by the unused portion of the lost ticket, refund will be an 
equal to the fare and charges paid for such new ticket. 



Bsenger has not purchased a new ticket covering the same t ransportatlo 
t covered by the unused portion of the lost ticket, refund will be an 
equal to the difference between the fare and charges paid and the far 
irges applicable to the transportation of the passenger covered by the 
Drtion of the ticket. 



11 participating car 
)ove provided appllc 
! expiration date of 



;rs except PA) Refund will be 
Ion therefor has been made not 
le lost ticket. 



APRIL 27. 1973 



MAY 27, 1973 



67-378 O - 76 



812 



PLICATION FOR I 



REPLACEMENT OF LOST TICKET 



American Airlines 

THIS FORM TO BE USLU TO CLAIM RtFUND 

OR REPLACEMENT OF LOST TICKET ON 

AMERICAN AIRLINES TICKETS ONLY. 



The undersigned applies for a refund or replacement of lost ticket for the value of the unused portion of the American 
Airlines, Inc., ticket described below and in requesting this RF.PRESF.NTS THAT THE PORTION IS OWNED BY THE UNDER- 
SIGNED AND HAS NOT BEEN USED BY HIM OR HER, AND THAT IT HAS BEEN LOST. STOLEN, OR DESTROYED. 



The undei signed understands and agrees tha 
A. American Airlines, Inc., dtjes not assume 



ibility for failure 
cfund obtained « 



using or presentin 
application, Amer 



D. A five dollar service charge will be dedu 
in accordance with Tariff Regulations. 



THESE 
SECTIONS 
MUST BE 
FULLY 
COM- 
PLETED 


2. LOST TICKET IDENTIFICATION: Passeneer's Name (Print) 




U<ii;n„ Alrl^n, 


Lost Portion: From To 


UscdPoM.on From To Fl.ph, 


o and Date 




da.c- '' date 

/Airport 

«T.e,c Pu,.-hased: ' Downtown 


date 


'"'""'< "'y"'^"'^ '■'" ( Travel A,e„cv. 




3. *as New Ticket issued? No P] Yes H Airline Code Form 


Srri;.! N.imhor 


Form of payment of new ticket: Check □; Cash □; ATP □; Other credit c 


rd □; Issued Without Charge □ 


< Print Name of Re 


son or Company 


< Print Street Addrt 


ss 


< Print City, State, 


Zip Code 



charge, the unders 



SIGNATURE 



NOTE: VERIFICATION OF TICKET INFORMATION IS NECESSARY BEFORE REFUND CAN BE MADE; BUT IF OUR 
INVESTIGATION WILL DELAY YOUR REFUND, YOU WILL RECEIVE AN ACKNOWLEDGEMENT FROM OUR PASSENGER 
REFUNDS BRANCH, 1 DAKOTA DR., LAKE SUCCESS, NEW YORK 11040. ANY FURTHER CORRESPONDENCE SHOULD 
BE DIRECTED TO THEIR .ATTENTION. IF YOU FIND THE LOST TICKET, PLEASE RETURN IT TO THEM A.ND REFER 
TO THIS CLAIM. 



PART 1 -PASSENGER REFUNDS, LSC OR AHACH TO AUDITORS COUPON OF 



REPLACEMENT TICKET ISSUED WITHOUT CHARGE 



(RFFER TO PSM - TICKETING EDITION, SECTION 80-20) 



813 



82. There is no cost to American Airlines for Adciirals Clubs. 
The Admirals Clubs are operated as a separate corporation. 
The costs are offset by revenue obtained from membership 
dues and from beverage sales. Any profit or loss is 
debited or credited to Admirals Clubs, Inc. retained 
earning account. 



1972 1973 9 Mo s. 1974 

83. 11,054 12,266 13,140 

84. 5,613 6.172 6,594 

85. Not available 974 567 

86. 

87. Not available Not available Not available 

88. 5.441 5.130 5,979 

89. $537,892 $683,581 $728,654 



£subcoiiinlttee note. ---Questions 90, 91, and 92 do not apply to 
American Airlines. _/ 



814 



SENATE QUESTIONNAIRE 



93. If a passenger holds a ticket with an "OK" status and the carrier has 
no record of the reservation, what procedure is followed in an over- 
sale situation? 

How is such a passenger's boarding priority affected? 

Is denied boarding compensation offered? 



Passengers holding confirmed reservations and who are ticketed will be issued 
boarding passes and boarded on a first come, first served basis. 

When an oversale occurs, it is American Airlines' policy that the last person 
to check in for the flight is the passenger who is denied boarding. 

Handling Oversales on Reserved Seat/Seat Selection Flights 

When the ticket count indicates available seats, but the seat chart shows that 
all seats are occupied, passengers presenting themselves at the ticket lift 
point will be handled according to the following procedures: 

Seat Selection Flights : A passenger arriving at the ticket lift 
point after all seats are shown on the seat chart as occupied, 
will be handled as a potential oversale. The passenger will be 
boarded at the last minute when it becomes apparent that an error 
was made in seat selection procedures. 

Reserved Seat Selection : A passenger arriving at the check in 
point after all seats are shown as reserved, will be boarded in 
a seat shown as reserved by a passenger who has not yet checked 
in. However, specific seat assignment may be delayed until just 
prior to departure. 

Handling Oversales on Dual Service Aircraft 

The accommodation of passengers in each cabin will be handled 
as if the passengers were boarding two separate airplanes. 

Oversales in one cabin will be handled as priority standbys 
for the other cabin. Discretion must be used when offering 
or boarding oversales in another cabin; to avoid the possi- 
bility of their removal due to the late arrival of a passen- 
ger who is holding a definite reservation in that cabin. 

Upgrading ; Passengers who hold confirmed coach class reser- 
vations, and who are accommodated on the same flight in a 
higher class cabin, will not be required to pay the differ- 
ence between the coach fare and the higher class fare. 

Downgrading ; Passengers who hold confirmed first class 
reservations, and who are accommodated on the same flight 
in a lower class cabin, must be provided with a refund of 



815 

SENATE QUESTIONNAIRE Page 2 



93. 



the difference between the first class fare and the fare 
applicable for the lower class cabin. 

Compensation for Denied Boarding 

Compensation payment will be made to a passenger who has complied with require- 
ments of ticketina. check-in. and where applicable, reconfirmation procedures , 
and is acceptable under the Tariff , holds a confirmed reservation for a specific 
flight, and American Airlines is unable to accommodate him on that flight, so 
that the flight departs without him. 

Note : Confirmed reserved space is defined in AA's tariff as follows: 

"A reservation for space on a given flight is valid when the 
availability and allocation of such space is confirmed by a 
reservation agent of the carrier. Subject to payment or satis- 
factory credit arrangement, a validated ticket will be issued 
by the carrier indicating such confirmed space provided passen - 
ger applies to carrier for such ticket at least 30 minutes prior 
to the scheduled departure time of the flight to which such reser- 
vation applies. Such reservation of space is subject to can - 
cellation by the carrier without notice if the passenger has not 
obtained a validated ticket specifying thereon his confirmed 
reserved space at least 30 minutes prior to the scheduled de - 
parture time of the flight to which such reservation applies ." 

Ref.: Passenger Rules Tariff Rule 60 



816 



94. Describe the procedures follov/ed for dealln;j v;ith ini.^v'ing. Er.r.lcse 
copies u£ any manuals or the sots of iusti-uctions uirccted to em- 
ployees dealing with a) buinping procedurt-;; , b) procedures for dealing 
with bumping complaiacs, c) priorities set in deteriniiiing whom to 
bump. 



Reservations Action 

Prior to removal action (bumping), flights in an overbooked condition are 
reviewed to: 

1. Determine the actual count of committed passengers. 

2. Determine if the number of committed passengers can 
be reduced by improving a passenger's itinerary 
through the clearance of WL requests or other preferred 
flights. 

In line with a "first come, first served" policy. Reservations will then 
select for removal the most recently sold locally boarding passenger sub- 
ject to the guidelines contained in the Passenger Service Manual (see 
attached, Section 10-63, Page 2). 

Order of Removal 

Due to the last minute arrival at the gate of revenue passengers, it is 
occasionally necessary to remove passengers already boarded. It should 
be accomplished in the following order. See "Lounge Seats" for policy 
on accommodating oversold passengers in the lounge. 

1. Industry Discount passenger, either AA or other airline 
employee. 

2. Employees of other airlines. 

3. Class W-R (weight restriction only). 

4. PS (Positive Space) passenger, with the exception of : 

a) Members of the AA Board of Directors. 

b) Crewmembers who are "Deadheading" to cover a trip 
where the operation of said trip is dependent upon 
their arrival. 

Note: If PS passenger states that his mission is of such 
importance so that later flicht is unacceptable to 
him, permit him to remain on board . (Ref . : AA 
Regulations). 



817 



by a VI, ii^lit rc-s^ • ■ ._ : i-a ■ 

Jixceviyo,-: (1) :T;,;:t,. . : or;; ■' AA. Inspectors 
vrtio arc^ L-;'{|uii-t,c" c , >:>d ■_ ^ , op.r ":-.nal reasons, 
(2) Crc:;..';r:P.ni "dc'a:j:>i=-a:iing" '. >■ '...•.-cr .^ ^"'1? where the 
operation of saiU Utlp is 1 .-i-ndcnnt (-r chair arrival. 

6. Reven ue- Pas senge rs: If, .-':.r r.teps 1 -zIj rough 5 above 

have not alleviateO. the o" • --jI-I cor-'i/.tion, and the 

oversale will ii^cvr e;:tre- ■ ' _:,-dghip, attempt to remove 

a passenger willias to t:"i- . r.i.'bse'Pi': at flight. 

Note ; Agency diccoui-it p-.r. ■. y.\ yrs (Fm^iliarization Tours/ 
AD-75%) classification is ?.lL'!;:ical to full fare passen- 
gers. Tlieir order of rer.-.c. ■ . will be included with full 
fare passengers and based v.j^cxi. their time of check-in. 

Overbooked or inconvenienced passen v.s will be offered a lounge seat regardless 
of the length of segment. 

Overbooked First Class passengers placjd in the lounge on segments over 1,000 
miles will be given an adjustment based upon the applicable difference between 
First Class and Coach fare. (See su.xi.ary in Appendix I, this section.) 

Accommodating Dovnigraded Passengers 

A downgraded passenger is a confirmoJ passenger boarded in the lounge of a flight 
on \^ich lounge seats are not authorized for sale. 

Whan a lounge seat is offered to a dou^igraded passenger, explain that a regular 
seat is not available. Before committing the downgraded passenger to the lounge, 
he should be taken into the aircraft and allowed to make a choice between the 
lounge and the Coach section providing the latter is available. 

Point out to the passenger the seats do not recline and where appropriate. Astro- 
color and Astrostereo are not available. 

When a confirmed First Class passenger is accommodated in the First Class lounge 
on segments over 1,000 miles, he will be given a cash adjustment based on the 
applicable difference between the First Class and Coach fare. All adjustments 
will be handled at the boarding point through the use of a petty cash slip. 

Enter on the petty cash slip the flight number, date, ticket number, name and 
address of each passenger. 

Charge all adjustments to interrupted trip expenses (other). 

Local management must ensure that sufficient money is on hand at the boarding 
point to accomplish this policy. 

Mark the passenger's boarding pass "Lounge" and note passenger's name and 
status on FACTS. 

The attached procedures cover our policy concerning handling of oversold and 
inconvenienced passengers. 

Attachments 



818 



,\ 



rASSKt-!Gt-:;< service manual 

Reserve! Lions, Ticket Office 
6c TenrircLl Services 



Suction 10-63 

P.l 

Sep 30-74 



OVERSOLD AND INCONVENIENCED PASSENGERS 



A. POLICY 

R. ORDER OF BOARDING 

C . ' ORDER OF REMOVAL 

D. TICKET LIFT ACTION 

E. SUPERVISOR-RESPONSIBILITIES 

AND ACTION 

F. COMPENSATION FOR DENIED 

BOARDING 

G. RECORDING - UNACCOMMODATED/ 

INCONVENIENCED PASSENGERS 

H. METHOD USED IN REPORTING INCON- 
VENIENCED/OVERSOLD PASSENGERS 
AND CITY TOTAL PASSENGERS BOARDED 
DATE STATISTICS 

I. RESERVATIONS-RESPONSIBILITES AND 
ACTION 

J. TICKET OFFICE ACTION 

A. POLICY 

Any passenger who is a-ivised that 
American Airlines cannot acconmodate 
him on the flight and in the class of 
service for which he has made a reser- 
vation is classified as an oversold 
or inconvenienced passenger, regardless 
of whether or not he has purchased 
his ticket. 

1. American Airlines' definition of 
an oversold passenger is one who 
is advised that he cannot be 
accommodated on his desired flight, 
and he is notified: 

a. more than 24 hours after his 
reservation was confirmed to 
him. 



b. at departure time. 

2. An inconvenienced passenger is one 
who is advised that he cannot be 
accommodated according to his plans 
under the following conditions: 

a. he can be accommodated only in 

the lounge on his desired flight, 
except those flights on which 
the sale of lounge is authorized 
and he is ngtified at departure 



b. He can be accommodated only in the 
alternate cabin on his desired ,__ 
flight, and he is notified at 
departure time or within 24 hours 
of the time his reservation was 
confirmed to him. 

c. He cannot be accommodated on his 
desired flight, but he is notified 
within 24 hours of the time his 
reservation was confirmed to him. 

We make the distinction between the 
passenger notified within 24 hours 
and the passenger notified later on 
the basis that the sooner we notify 
him, the easier it will be for him to 
make any necessary changes in his 
plans. This distinction, however, 
should not be misinterpreted, nor 
should the distinction between over- 
sold and inconvenienced passengers. 

American Airlines never deliberately 
causes a passenger to be oversold or 
Inconvenienced. We tolerate a limited 
number of oversold and inconvenienced 
passengers only because we must allow 
some margin for error in our operation. 

A passenger left at the gate certainly 
has cause for complaint. A passenger 
accommodated in the lounge or in an 
alternate cabin on his desired flight 
has less reason for complaint, parti- 
cularly if he was planning to travel 
coach and is accommodated in the first 
class cabin. This is not, however, the 
important point. In every case, the 
oversold or inconvenienced passenger 
has good reason to doubt the efficiency 
of American Airlines and to doubt if we 
know what we are doing. His impression 
of our ability to handle his reserva- 
tion correctly inevitably colors his 
opinion of all aspects of our service. 



819 



Section 10- 

P.2 

Nov 1-74 



MANUAi, 
Let Off 



..'4 



It is imperative, therefore, tbr.; -. -; ( 
keep oversold and incon\'i;iiienct:''' . • ';:;^n- I 
gers to a uiiaimum. j 

Our policy is to pay those passer.;- ecs who 
are oversold and who are eligible, i o^n- 
pensation for their inconvenience, in 
accordance with our Tariff rules, as 
described in F. of this Section, (Com- 
pensation for Denied Boarding.) 

B. ORDER OF BOARDING 

Passengers holding confirmed reservations 
and who are ticketed will be issued board- 
ing passes and boarded on a first come, 
first served basis. 

When an oversale occurs, it is American 
Airlines' policy that the last person to 
check in for the flight is the passenger 
who is denied boarding. 

C. ORDER OF REMOVAL 

Due to the last minute arrival at the gate 
of revenue passengers, it is occasionally 
necessary to remove passengers already 
boarded. It should be accomplished in 
the following order. See "Lounge Seats" 
for policy on accommodating oversold 
passengers In the lounge. 

1. Industry Discount passenger, either 
AA or other airline employee. 

2. Employees of other airlines. 

3. Class W-R (weight restriction only). 

4. PS (Positive Space) passenger, with 
the exception of : 

a) Members of the AA Board of 
Directors . 

b) Crew members who are "Deadhead- 
ing" to cover a trip where the 
operation of said trip is depend- 
ent upon their arrival. 

Note : I f PS passenger states tha t 
his mission is of such importanc e" 
so^_t hat la ter flight Is unaccepta b 1 e 
to him, permit him to remain on board. 
(Ref. AA Regulations). 



7'. Class W in the case of an oversold 

condition c lused by a weight restriction 
only. 

i-x.c optio u: (1) Flight Supervisors and 
VJ'A In.spectors who are required on 
the trip for operational reasons. 
(2) Crewmen "deadhead inp/' to cover a 
trip where the operation of said trip 
is dependent on their arrival. 

6 . Revenue Passeng;ers : 

If, after stpps 1 through 5 above 
have not alleviated the oversold 
condition, and the oversale will 
incur extreme hardship, attempt 
to remove a passenger willing to 
take a subsequent flight. 

NOTE : Agency discount passengers 
(Familiarization Tours /AD- 7 5%) class- 
ification is Identical to full fare 
passengers. Their order of removal 
will he Included with full fare 
passengers and based upon their time 
of check-in. 

D. TICKET LIFT ACTION 

The Ticket Lift Agent may or may not 
handle an oversale. This will depend 
upon many circumstances. If handled 
through to completion by the Ticket 
Lift Agent, he must be familiar with 
the Supervisor's responsibilities 
as outlined In this Section. 

1. Handling Oversales on Reserved 
Seat/Seat Selection Flights 

When the ticket count indicates avail- 
able seats, but the seat chart shows 
that all seats are occupied, passengers 
presenting themselves at the ticket 
lift point will be handled according 
to the following procedures: 

a. Seat Selection Flights: A 

passenger arriving at the ticket 
lift point after all seats are 
shown on the seat chart as 
occupied, will be handled as a 
potential oversale. The passenger 
will be boarded at the last minute 



820 






. 3ERVI0.' -l 


.'il'AL 


ons, T;- '• :■ 


tit lie:- 


r.al Scrv;^ 





0V1:R50U) /iHO II.'COl'.VK.MIEiNCr.;; 



when it becomes apparent that 

an error was made in seat selection 

procedures. 

Reserved Seat Selection: A 
passenger arriving at the check 
in point after all seats are shown 
as reserved, will be boarded in a 
seat shown as reserved by a passen- 
ger who has not yet checked in. 
However, specific seat assignment 
may he delayed until just prior to 
departure. 



Tickot 
TicVu'.t 



.ift 



lies on Dual Service 



2. Handling Over 
Aircraft 



The accommodation of passengers in 
each cabin will be handled as if the 
passengers were boarding two separate 
airplanes. 

Oversales in one cabin will be handled 
as priority standbys for the other 
cabin. Discretion iinst be used when 
offering or boarding oversales in 
another cabin; to avoid the possibility 
of their removal due to the late 
arrival of a passenger who is holding 
a definite reservation in that cabin. 

a. Upgrading: Passengers Who hold 
confirmed coach class reserva- 
tions, and who are accommodated 
on the same flight in a higher 
class cabin, will not be required 
to pay the difference between the 
coach fare and the higher class 
fare. 

b. Downgrading : Passengers who hold 
confirmed first class reserva- 
tions, and who are accommodated 
on the same flight in a lower 
class cabin, must be provided 
with a refund of the difference 
between the first class fare and 
the fare app^licable for the lower 
class cabin. 



r; t vill prtjVjirs a 

Refund Cr.y h Rece ^T. 'Somr, 

FC4 5, in the aiicunt appi. legible to 
the difference in fares bf.u\.-;en t!i 
original and the downgva'i-.i cabin, 
and present th e na ssen gr-'r with 
the difference; in cash. 

On T281 in Area "r'rom (Class of 
Service) to (Class of Service)" 
complete appropuiate entry, Indi- 
cating in the "other" area, the 
involuntary reason as follows: 

1. INV'OL DNG - indicating passen- 
ger has been accommodated in 
a lower class cabin. 



2, INVOL FP - Passenger tr; 
at Family Plan Fare. 



•calling 



3. INVOL VUSA - Passenger travel- 
ling at Visit U.S.A. fai-u. 

\vFhen insufficient ti u'c preclu de s the 
issuance of Refund Ca s h Receip t , i- onn 
Fb45, or Request for Refund En>;ciope 
Form T281. the Ticket Lift Agent will 
indicate on the Flig ht Attend ant 
"Facts" form, the nanos of all d o-./n- 
graded passengers, so that the Flight 
Attendant will provide a Form T281 
during the flight. "Facts" form should 



Example: WINSTON - T281. 

When it is necessary to have Flight 
Attendant provide T281, a PLT message 
will be sent to the destination city 
Passenger Service Manager. The PLT 
message will show the names of all 
passengers downgraded. The Passenger 
Service Manager will meet the passen- 
gers on arrival, and will assist |in 
making the refund. 

The Flight Attendant will assist tie 
passengers in meeting the Passenger 
Service Manager on arrival, to 
e X pedite the refund di:.^. 



821 



Section 10-03 
P. 4 

Sep 30-7.1 



Resc;-v.;LJcns. Ti- 
and Tc-ii.1i-.al Sc-r\ 



Lounge: See Lounge Seats fo 
policy on accoinnodating o 
sales in the lounge of ai 



aft. 



When a passenger is dovmgraded or 
upgraded for any reason, the Ticket 
Lift Agent will enter the code 
DNG (Downgraded) or UPG (Upgraded) 
followed by the Passenger's name 
and seat number or class of service 
on the Flight Attendant's "FACTS" 
portion of the PRR, 

e.g. DNG - Smith, 18c 
UPG - I'arker, F/c 

NOTE : As part of Post Departure 
Processing, complete "Report of Incon- 
venienced/Oversold Passengers", for 
all oversold passengers, and route 
as directed. 



E. SUPERVISOR RESPONSIBILITIES AND 
ACTION 

1. If the foregoing procedures fail 
to solve the oversale, contact 
Flight Dispatch regarding the 
possibility and feasibility of ; 
unscheduled landing of another 
flight to accommodate the 
passenger(s). 



2. When Oversold Passengers Have 
Actually Boarded Flight 

If after the capacity of Ihe 
aircraft is reached, it is appar- 
ent that through error or for 
other reason, too many passengers 
have actually boarded the air- 
craft, attempt to remove the 
oversold passenger(s) immediately 
and dispatch the flight. 

The procedures outlined in Order 
of Removal should be used to 
accomplish removal. 



If nont of the .t 1 torn.. : • ■ ;!.■.->-■ 
vide a satisfactorv so)i.r..v-i rud 
there are too many pdss?-..^^,jr:; 
on board, advise all paFS-.i^ers 
that their flight cannot ■':- oeer- 
ated with more than the a..'. 1. pr- 
ized number of passengers ,nd 
request the proper number ; <i .^u- 
plane. This can usually be 
accomplished by a PA ann<-.ijr',-i;n-'nt . 
The passengers who volunts'ily 
deplane should be given tiOL^cial 
treatment, appropriate interrup- 
ted trip expenses and alternate 
transportation as soon as 
possible. 

In extreme cases it may be 
necessary to actually cancel the 
flight until all passengers have 
deplaned, after which, the flight 
can be reoriginated as an extrj section 
and confirmed to capacity. Ihis action 
should be used as a last resort, and i ii 
most cases, can be avoided by controi 
of the passenger count during boardin, 
process. 



Wlien Passenger Requests W ril 



Exp 



anation of Delay 



If an oversold passenger a=;'KS for 
an explanation of reason for his 
delay, which can be given to his 
superior , of fer to pay for a 
telegram or long distance telephone 
call; 

If this course is unsatisfactory 
to him, try to persuade hi<n to let 
us communicate with his destination 
city. In such cases , 

(1) Obtain name and address or 
telephone number of person to 
whom explanation is to be 
given. 

(2) Send PLT to Reservation 
Manager asking him to contact 
individual designated, stating 
in addition, the new arrival 
of the oversold passriiger. 



822 



M 



w/: 



PASSENGER SERVICI- MANUAL 
Resei-'ations, Ticket Office 
and Terminal Ser\'ice 



Section 10-63 
Gep 30-74 



OVERSOLD AND INCO\'VENIENCED PASSENGERS 



If passenger insists on a letter 
(Servicemen delayed will need a 
letter so that they will not be 
classified as AWOL) , word as 
follows : 

"This will confirm that some mis- 
understanding apparently occurred, 
and American Airlines was not 
holding space for (name) on flight 
(number) leaving (place) on (date.) 
Consequently, he was obliged to 
take alternate space to his destin- 
ation." 

Signed (City Manager) 
PLT >!essap,es - Se n ding and Receivin g ; 

Send PLT messages as promised, for 
any oversold/inconvenienced passen- 
ger as soon as possible. In sone 
Instances CCSA lines may be utili- 
zed in contact with the downline 
city Passenger Service Manager to 
expedite and iar.ure hind ling. 

Upon receipt of message regarding 
the delayed arrival of an oversold 
passenger, the addressee will tpke 
Immediate follow- through action as 
requested. 



7. Reply to Recucst for 



5. Threats by Passenger 

If a passenger threatens suit or 
demands other compensation, be- 
yond compensation for denied board- 
ing as outlined in F. (This Section) 
advise him to contact the Vice Presi- 
dent - Marketing - nyc. Write 
, the name and proper address in a 

timetable for convenience to the pas- 
senger. Never give an oversold pas- 
senger anything in writing which 
admits an error on the part of Ameri- 
can Airlines. 

6. See "Expenses .Allowed A.'\ Passenf.ers" 
for applicable expenses in regarJ to 
oversold/inconvenienced passengers. 



F. 



Oversale 

If a passenger asks reason for over- 
sale, tell him that the reason will 
be knou.i only a-'ier an investigation 
has hecn conJurted and all facts Ere 
revealed. 

. Passengers who are afforded 
standby Preference Because of 
an Oversale (PBO) should not be 
issued a standby card, but should 
be handled on a personalized basis 
by a PSM or Supervisor. 
COMPENSATION FOR DENIED BOARDING 



Compensation payment will be made to a 
passenger who has coirplied with require- 
ments of ticketing, check-in, and where 
applicable, reconf inration procedures . 
and is acceptable under the Tariff. 

holds a confirmed reservation for a 
specific flight, and American Airlines 
is unable to accommodate him on that 
flight, so that the ilight departs 
without him. 

«n!^ .C°"ft™"'' ^^'-^-^<^ space is de- 
fined in AA's tariff as follows: 

'tT.l^Tl"'' '°J "P-^" "'^ ^ 8i^-" flight 
IS valid^when the availability and allo- 
cation of such space is confirmed by a 
reservation agent of the carrier. Subject 
to payment or satisfactory credit arrange- 
°^"^' ^J^ alidated ticket will be iss ued 
,| ^Z^lli-£gZ^^erindicatine^T7 r?n^^7f-^^ 

space pro^acied passen2Pr_ pppT^^ ." 

^fl^i^'^/or such_ticke£Tt2liiiriOmin- 
"tes pr ior to the sch ldulpH ^.p...,,^, 
, time of the flight to~^ch such resir- 
vation applies. Such reservat ion nf 
^£S^|-^^^Hbi££l.t^^anc3llationbv the 
-25S not obtain e^d a validated ticT ^T^- 

reon hi.s confirmed reserved 



space at 



to which 



iled dena 



JO_ninutcs_Drior to the 



^'- - 



reservation applies ." 
Passenger Rules Tariff 
Rule 60 



823 



tcMov 10-63 

;p 30-74 



PASS!:K(;'i;R sekvk:-^ -lArnJAi. 

Resp.rv.-itions, ri-j:..:;E Offi( 
and 7'orininal ServicQ 



'J^i &'■■:> 



Irrtnedirttely af 


e- 


denied bo 


•^rding ocrurs 


each p 


53sengcr 


V'i 


o is den it 


i boarding, 


whether he is t 


1 


Jible for 


pav-ment or 


not, w 


11 be pi 


o; 


ented a co 


\V of Form 


i-.Ui, 


"Notice 


^ 


Cornpensat 


-on For 



or ccnner- 
-mp.d reser- 
travel is 
USA and 



Denied Boarding". (See Appendix^, this 
section, for illustration.) This notice 
is a statement explaining to the passen- 
ger the terras, conditions and limitations 
of the denied boarding compensation pro- 
vided to him. 

1. The passenger will not be eligible 
for compensation payment if: 

a) AA is unable to accommodate the 
passenger on the flight for which 
a confirmed reservations was held, 
because of Government requisition 
of space or substitution of eguip- 
ment of a lesser capacity when 
required by operations and/or safety 
reasons. 

k ': The passenger is accoiTnodaVed or. 
the flight for which a confii-n.od 
reservation was held, in the 
lounge, or in a cabin of the air- 
craft other than the cs'-in for 
which the confirmed rerorva-.ion 
was held, provided that f 1 ) no 
additional charr.e will be collec - 
ted if accoTTr?ocation is in a 
higher class ca': 



/Virgin 



this Section; 
priate refur.r 



(see E. 2.P.. • 
(2) an ao'^rci- 



accommodation is in a cabin for which 
e lower fare is applicable (seeD. 2. 
b. this Section). 

> American Airlines arranges for com - 
parable air transportat i-'T i {see 
Note 1), or for otlier n n is ?. >rt£ - 
tlon accepted (i.e. deJ'' Ci;ee N'ote 
2) by tlie passenger, which Pt the 
time such arrangement is made is 
planned to arrive at the airpo rt 
(see Note 3) of the passenger's 
next stopover (see Note 4), or if ; 
no stopover, at the airport of his i 
destination, earlier than or not 1 
later than two hours after the planned' 



arrival time of Lhe dii 
ting flight on vhich c< 
vac ions were held, or v 
between a point within 
its territories (San Ji 
Islands) and 
a point outside the USA- and its terri- 
tories or travel between two points 
outside the USA and its territories, 
fo'T hours after the planned arrival 
time of the flight for which confirmed 
reservations were held. 

Dte 1 - Comparable Air Tr an sportation 

may be defined as transportation, 
via scheduled domestic or foreign 
air carrier. 



Other Transportation - Accepted 
by (i.e. Used) - may be defined 
as other than sclicdulea doi»coti<= 
or' foreign air carrier, such as 
air taxi, helicopter, train, bus, 
limousine. Other transportation 
must not be offered on a take-it-or- 
leave-it basis. Only when the 
passenger elects to avail himself 
of this arrangement rather than 
take compensatioii and face substan- 
tial delay and inconvenience, other 
transportation will be arranged and 
compensation payment not made. 

Airport - means the airport at which 
the direct or connecting flight on 
which the passenger held a confirmed 
reservation is planned to arrive 
or some other airport serving the 
same metropolitan area that is served 
by American Airlines, provided that 
transportation ro the other airport 
is accepted (i.e. used) by the pass- 
enger. 

Stopover - means a deliberate interr- 
uption of a journey by the passenger, 
scheduled to exceed four hours, at a 
point between the place of departure 
and the place of destination. When 
a passenger is making a connection 
to reach his destination, alternate 
transportation must provide for his 
arrival at the destination within two 



824 



PASSlZiJG; 
and Tc/' 



Sep ;-iG- 



0VEr.s(;i.u and iNc:o;-;vsNiEKCi;r> iwssekgc 



(four) hours or compensation pay- 
ment must be made. (Sec 2 below 
for applicable amount). 

d) The passenger is an employee of an 
airline (AA or OA) travelling on a 
reduced rate pass, i.e. ID-50 is not 
considered air transportation as 
governed by company tariffs, in 
accordance with the Federal Aviation 
Act of 1958. Do not consider these 
passengers as inconvenienced, 
oversales or LAG's. Check section 
C. for Order of Removal. 

2. The compensation payment will be 
100% of the value according to the 
class of service and/or discount, 
of the first remaining flight coupon, 
less any taxes or security charges. 

Amount of payment will be determined 
as follows: 

Value of 1st remaining 

Flight Coupon for which Amount o f 

space held on departed 



Compens. 
tion: 



$ 9.05 - $ 25.00 
$ 25.01 - $200.00 



100% value 
of coupon 



Exception: When, for the passen- 
ger's convenience, alternate means 
of transportation depart before 
payment can be made, payment will 
be mailed to the passenger, within 
24 hours after the time of the 
denied boarding. 

Pa=;senger Refund Check, Form 6A4 or 
643, will be utilised to pay amounts 
due passengers who are compensated 
for denied boarding. 

Prepare Passenger Refund Check 
for appropriate amount of com- 
pensation payment . In addition 
to normal entrie, , on stub por- 
tion in area designated for 
"Reason", show "( FD". Place re- 
lease stamp imprint at the ex- 
treme top edge of the reverse 
side of the checl' and complete 
the entries of Flight/City (Air- 
port) and Date (tee Appendix XI 
this section for illustration). 

When compensation payment is 
made at this time, have passen- 
ger sign (endorse) the release 
statement in the lower portion 
of the release stamp imprint, 
and present the cash amount to 
the passenger. 



$200.00 and over $200.00 

The minimum amount of compensation is 
$25.00 and the maximum $200.00. 

3. Payment of compensation will be made 
in the currency of the country in 
which the denied boarding occurs, 

in an equivalent amount of the 
currency used for payment when the 
ticket was purchased. 

4. The payment of the compensation will 
be made Lo tlje passenger on the day 
and at the place where the failure 
to transport occurs. 



When compensation payment will 
be made at a later time, advise 
passenger to present the check 
for payment within 60 days. A 
check is valid for cash payment, 
when signed (endorsed) by the 
passenger and presented within 
60 days from date on which it is 
written. Checks presented after 
60 days will be honored for pay- 
ment, however, since the validity 
period has passed, they must be 
forwarded to Manager, Passenger 
Refi'nds, LSC, for payment, using 
Ticket Redemption Certificate, 
Form C-60. 



825 



PASS1:NG>j;R service fiAtWAL 
Reserv.Uions, Ticket Office 
and Teiininal Services 



d) V.'hen t'.ie pjssenger who is denied 
uoardinj; is travelling on a 
Governmei't- Transportation Request 
and compensation payment is appli- 
cable, such compensation will be 
tendered Co the traveller by check 
made payable to Treasurer of the 
United States. Have the traveller 
sign the release statement, 
acknowledging receipt of the check. 
no HOT CASH THF. CHECK. Such checks 
should be returned by the Govern- 
ment traveller to the Department of 
the Government for which he is 
travel ling. 

e) Imprint release statement on the 
face of the duplicate (yellow) and 
triplicate (blue) under the AA 
logo on the Passenger Refund Check, 
FoiTn 644 or 643. Complete entries 
relative to Flight/City (airport) 
and Date. It is imperative that 
the release stamp appear on the 
duplicate and triplicate copies 

in order to differentiate between 
PRA checks prepared for ticket 
refunds and those prepared for 
compensation payments. 

f) Forward duplicate (yellow) copy of 
PRA check to Manager, Passenger 
Refunds, LSC, on the day prepared. 
Retain triplicate (blue) copy in 
local file for one year. 

G. REPORTING UNACCOM>»DATED/lNCONVENIEN- 
CED PASSEHGERS 

American Airlines must report monthly 
statistics to the Civil Aeronautics 
Board, indicating the numbers of unac- 
commodated passengers who were eligible 
and were paid denied boarding compensa- 
tion as weir as the number of those who 
were exempt from payment because of 
Tariff Rule. 

In order to maintain the necessary in- 
formation in a uniform njanner, it is 
recommended that Report of Irregularity, 
Form OG-522, be utilized for this purpose. 



Those cities who have developed a local 
"oversale" report may use it, in lieu of 
Form OG-522, provided the following 
Information is recorded: 

"flight-class/destination/date 



QUALIFIED FOR PAYMENT OF COMPENSA- 
TION DENIED BOARDING 

1. Passengers (name, address, 
destination, and amount) who 
were paid compensation. 

2. Passengers (name, address and 
destination) who were not of- 
fered compensation (Form T-501) 
and an explanation of the reason 
why it was not offered. 

3. Passengers (by name, address and 
destination) who refused to ac- 
cept compensation payment, either 
iu person or by mail. 

EXEMPT FROM PAYMENT OF COMPENSATION 
DENIED BOARDING BECAUSE OF TARIFF 
RULE 

1. Passengers (by name, address and 
destination) not accommodated be- 
cause of Government requisition 
of space. 

2. Passengers (by name, address and 
destination) who were accommodated 
on comparable air or other trans- 
portation within the allowable 
time - two or four hours. 

3. Passengers (by name, address and 
destination) not accommodated due 
to the substitution of equipment 
of a lesser capacity. 

4. Passengers (by name and 
destination) who held a higher 
class of service and were accommo- 
dated in a lower class of servick 
as well as First Class passengers 
accommodated in the First Class 
lounge . 



826 



?.S. SKT;VTCn MANUAL 
■•;.oT-.3, i ■..■'•-■"- Ofti 
Una. :; . ■■.■:.?.3 



Section 10-63 

P. 9 

Nov 15-74 



OVEI;: 



yiS AND IKCOtWENIENCED PASSENGERS 



■-• . V";'f..«eng:-v i vjy name ;:i,d 

de.'itinati.Oii) who held £ lower class 
of service and were acconanodated in 
■i higher -^lass of service including 
Coach Clats passengers scconunodated 
In the Fi-.-;!t Class Lourge. 
l-,;i-ible copii;s of Form OG-522 or local 
ovi.rsales reports must be sent to Con- 
s'Jine- Kelaticus each day. Be sure to 
inciu.'ie correct title, i.e.- Miss, Ms., 
Mrs., Col., etc. as well as the zip 
code. A brief letter of apology will 
be sent from that office. Retain Form 
Of;-522 or oversales report in local 
file for one year. 

In addition, select cities must report 
the aiaiilar information between speci- 
fied "City Pairs" for the months of 
March, June , Sep tember and December 
only. A list of cities and the applic- 
able City Pairs are outlined on Page 1 
of Appendix III. 

H. tKTHOD USED IN REPORTING INCONVENI- 
ENCED/OVERSOLD PASSENGERS AND CITY 
TOTAL PASSENGER BOARDED DATE STA- 
TISTICS 

1. The Post Departure Processing Unit 
will transmit a recap PLT message 
by 0200, local time, daily to 
PDQRKA/. with a copy to the local 
Reservations Office. Included in 
the "Remarks" section of the PLT 
will be the following: 

a. Total passengers qualified for 
DEC but were not offered, and 
reasons they were not offered 
DBC. 

b. Total passengers qualified for 
DBC but refused to accept. 

C Total passengers exempt from 
DBC because of Government Re- 
quisition of Space. 



The transmitting station must be copied in 
in the address of the PLT in order to 
check the accuracy of the message sent 
to Central Control. If the message 
sent is incorrect because of a communi- 
cation error, etc. send a corrected 
copy ASAP. (See Appendix IV Page 1.) 

Totals from the daily Passenger Board- 
ing Statistics Form (PSM R&TO Section 
10-61, Appendix I, Page 1) will be used 
for each category for Passenger Boarded 
Statistics. 

AUTH - Authorized 

LCL - Local 

THRU - Through 

NR - No Records 

NS - No Shows 

XM - Misconnects 

SB' - Standby s 

LAG - Left at Gate 

INV DWN - Inconvenienced, Downgraded 

INV LNG - Inconvenienced, Accommodated 
in Lounge 

UP - Upgrade 

K - Number of Passengers Paid 
DBC (Indicate if appro- 
priate) 

The following letter codes will be used 
for each flight/class to represent in- 
formation regarding inconvenienced/ 
oversold passengers : 

A. Sabre Authorized 

B. Seats Available 

C. Total No Record & Incorrect Records 

D. No Shows 

E. Misconnections 
G. Left at Gate 
H. Upgradings 

I. Inconvenienced by Downgrading 

J. Inconvenienced in Lounge 

K. Number of Psgrs Paid DBC I 

L. Total Psgrs on Board ' 

M. Total amount paid on DBC 



827 



PASS /•:'.■;:•;;< servicv m^^v^'m. 

Resc.-\ ■.; ions, Ticl--.;' Of£. 
and T^^rriinal Servic-.s 



3f. 



Preprinted message blanks using the 
format f;:arnple in Appendix IV, page 1, 
should be prepared locally and main- 
tained by the Post Departure Unit. 

PLT Example 



1DQRKAA CPY LAXRA.AA LAXTLAA 

LAXTIAA 

STATISTICS 

WTH 1024 LCL 4196 THRU 415 NR 86 

NS 948 XM 7 SB 349 LAG 4 

INV-DWN INV-LNG ¥* 7 K 
UP 
258F 27 AUG A25/BO/CO/E2/F7/G1/HO/IO/JO/KO/L22/mO 
258Y 27 AUG A140/*e/C3/D26/EO/F9/G3/H7/lO/JO/KO/Ll] 

1 EXTRA F/A Y/C 

1) 

2) 

3) 



2. Select cities which are to rt-port 
"City Pairs" Oversold/lnccv .-pj.enced 
Passenger information as 0'.:L.'xned in 
Appendix III Page 1 are to .--end a 
PLT to HDQRKAA with the following 
information: 

a . Total passengers quali f if;^d_^or 
DEC (passenfers paid, qualified 
but not paid, and pass'-::.^-,ers who 
refused to accept payment). 



Indicate the Sabre authorized and the 
seats available, from the VIL entry 
prior to entering the PIW. 



Example : ENTRY 



VIL 258/27 AUG LAX 

AV 
. . . F *¥■ 25 SAO 
Y #» 140 SA-3 



Reservations will notify HDQRK by PLT 
whenever a passenger is removed in 
advance. 

To assist in effective investigations. 
Departure Processing Unit will insert 
in REMARKS of the Sabre PNR (Passenger 
Name Record) the airline/city code 
responsible for the issuance of 
validation of the No. Record/Incorrect 
Record space. 
Example : 

I21F27AUG NO REC UA/CHI or 
21F27AUG XYZ TRVL AGNCY LAX or 
21F27AUG TKT VALIDATION ILLEG. LAX 

If a city has no Inconvenienced/Over- 
sold passengers, a daily message must 
still be sent giving total Passenger 
Boarded statistics. Indicate no OVSL/ 
INCVD on message form. 



b. Total passengers exempt from 
DBC (passengers not accommo- 
dated because of: (a) Govern- 
ment Requisition of Space, 
(b) alternate transportation 
was provided within the pre- 
scribed time, or (c) a sub- 
stitution of equipment of a 
lesser capacity.) 

c. Total Downgrades 

d. Total Upgrades 

The PLT must be sent to HDQRKAA no 
later than the tenth (10th) day of 
the following month. The transmit- 
ting station must be copied in the 
address of the PLT in order to check 
accuracy of the message sent to 
Central Control. If the message 
sent is incorrect because of a com- 
munication error, etc. send a cor- 
rected copy ASAP, 

PLT Example : 

HDQRKAA CPY DFWTLAA 

DFWTLAA 

RE QUARTERLY CITY PAIR OVERSOLD/ 

INCONVENIENCED PASSENGER REPORT 

DFW-CHI A 24 B 61 C 8 D 101 
-LAX A 4 B 47 C D 71 
-NYC A 11 B 53 C 2 D 41 



67-378 O - 76 - vol.2 - 14 



828 



."A3Si:Nf;iil: 'jJiRVICF ?-J 
Keserv? u :'.. )n:; , TicVr; . 
and Ten..;.;ia]. Servitt 



I'AL 
;rf ice 



OVERSOLD AN!1 INCONVENTEKCED PASSEKOERS 



RESERVATIONS 
ACTION 



RESPONSIBILITIES AND 



Passenger Revenue Control will advise 

the local Reservation Manager when passengers 

must be removed from an overbooked 

flight to avoid the possibility of 

leaving « passenger at the gate, thus 

creating confusion at departure time. 

Reservation Manager will assign person- 
nel to resolve the overbooking situation. 

The Reservation Manager will make cer- 
tain that personnel assigned to calling 
passengers to be removed, are thoroughly 
trained in customer contact, well 
briefed on the particular situation at 
hand, and that the utmost tact and cour- 
tesy is used in explaining the situation 
to the passenger. (Refer PSM Res. & 
T.O. 40-75.) 

l.a. Before pre-removing any passen- 
gers, review records of passen- 
gers holding on overbooked flight 
to see if any are waitlisted on 
other flights over same segments 
which could be cleared. If so, 
contact passenger and confirm from 
waitlist. Space made ayail'able 4. 
will be used to accommodate over- 
booking. 

b. Reservations will "firm" the flight 
calling passengers to make certain 
they plan to use cheir reservations 
before calling passengers selected 
for pre-removal. 



In line- with our policy, "The first 
who come, will first be served", 
Reservations will select for re- 
moval, the most recently sold 
locally boarding passenger, whenever 
good judgment dictates that this 
passenMCr will be less inconvenienced 
than some other passenger, 
except when undue hardship vjill 
be incurred. Be guided by the 
following hardship examples 
listed in descending seriousness: 

a. Travel involving national 
security. 

b. Death/illness emergency. 

c. Downline connection to 
overseas or distant dest- 
ination and good alternate 
service is not available. 

d. Other downline connection and 
good alternate service is not 
available. 

e. Family/group travel. 

Airline employees traveling positive 
space or on discounts will be removed 
prior to the removal of revenue 
passengers: 

a. First, AA and other airline 
employees traveling positive 
space except members of AA's 
Board of Directors. 



Reservations will obtain alternate 
space on AA or another carrier fur 
any passenger who is to be removed. 
The alternate space must be obtained 
before the call is placed to the 
passenger. 



b. Second, AA and other airline 

employee." traveling on an industry 
discount. 

5. After a customer, ticket or un- 

tlcketed, is called and advised of 
removal, take the following action: 



829 



Section 10-63 PASSENOlR SERVICE MA^aJAL *)tV\ 

P. 12 , Reservations, Ticket Office £^i/J\ 

Sep 30-74 and Terminal Services • *A' - 



(a) Cancel the customer s reserva 
tioti from the overbooked flight, 
and record in REMARKS OF PNR : 
"PSGR ADVD OVBKD DAL-LAX 5F10. 
NOW (FLIGHT/CLASS/DATE) or NO 
ALTN." 

(b) Waitlist the passenger on the 
original flight, using the approp- 
riate priority waitlist code . 

(c) Delete the REMARKS entry when 
the passenger is re-instated on the 
flight from which he had been pre- 
viously removed. 

(d) Maintain a manual record of all 
removals for statistical reports. 



TICKET OFFICE ACTION 

When a passenger, who has been 
advised of removal from a 
flight by Reservations, purchases 
his ticket, the ticket will be 
issued for the alternate 
(protect) space held by the 
passenger. (Remarks of PNR will 
provide source of information.) 
If no alternate (protect) space 
is held, issue an "OPEN TICKET". 

When a "removed" passenger, either 
ticketed or not, indicates that he 
will standby for the flight on 
which he was overbooked and re- . 
moved, the Ticket Salesman will: 

a. Enter "priority standby - 
flight/date" of overbooked 
flight in the endorsement box 
of the applicable flight 
coupon, or 

b. Issue a priority standby card 
for the passenger for the 
overbooked flight. 



Issued by Ground Passenger Services 






830 



Section 10-63 
"NOES Sir:'-;iCES K;.i:;'-\;. Appendix I 

I'/atici-:, Ticket Ofli-». P-l 

'••ices Nov 12-73 

CE - CCMrEN'SATION FOR DENTKI' BOARDING. FORM T501B 
(Front) 



NOTICE 
COMPENSATION FOR DENIED BOARDING 



Tariffs Tiled by American Airlines, Inc. with the Civil Aeronautics Board provide denied boarding com-" 
pensali.'^n to a passenger holding confirmed reserved space where the flight for which the passenger' 
holds such spnce is unable to accommodate him and departs without him. 

Passer-^ers eligible for denied boarding compensation shall be compensated at the rate of 100% of the 
value of the first remaining flight coupon on their tickets with a $200 maximum and a $25 minimum. In the 
case of tickets which have been paid for with other than U.S. currency, American Airlines shall have the 
option of making the aforesaid payment in the currency of the country where boarding was denied or in 
the cur.-.'ncy used tor the ticket purchase. American Airlines will tender to each eligible passenger, on 
the day and place the denied boarding occurs, a check in the amount specified above, which, if endorsed 
and paid (within 30 days, or more, as permitted by the check) shall relieve American Airlines from lia- 
bility for all claims for damages which might accrue to the passenger as a result of American Airlines' 
failure to provide the passenger with space on the flight in question. Where, however, American Airlines 
ananges, for the passenger's convenience, an alternate means of transportation which departs before the 
check can be prepared and tendered the passenger, tender will be made by mail or other means within 24 
hours after the time the denied boarding occurs. 



(Continued on reverse side of this page) 



(Back) 



In order to qualify for such compensation, a passenger must have complied fully with American Airlines' 
requirt-mepts as to ticketing, check-in and reconfirmation procedures, and be acceptable for transportation 
under .A.-n-jrican Airlines' Tariff. However, a passenger is not eligible for compensation if (a) the flight 
for which the passenger holds confirmed reserved space is unable to accommodate himbecause of (1) Gov- 
ernment requisition of spaue; or (2^ substitution of equipment of lesser capacity when required by oper- 
ational and/or safety reasons; (b) American Airlines arranges for comparable air transportation (See Note 1 
below) or for other transportation accepted (i.e., used) by the passenger, which at the time either such 
arrangement is made, is planned to arrive at the airport (See Note 2 below) of the passenger's next stop- 
over or, if none, at the airport (See Note 2 below) of his destination earlier than, or not later than two 
hours after, the time the direct or connecting flight, on which confirmed reserved space is held, is planned 
to arrive in the case of interstate and overseas air transportation, or four hours after such t.me in the 
case of foreign air transportation, or (c) the passenger is accommo<jated on the flight for which he holds 
confirmed reserved space, but is offered accommodations or is seated in a section of the aircraft other 
than that specified in his ticket at no extra charge, provided that a passenger seated in a section for 
which a lower fare is charged shall be entitled to an appropriate refund. 

HeiQ. ii "Comparable air transportation" means transportation provided by air carriers or foreign air 

carrier.s holding certificates of public convenience and necessity or foreign permits issued by the Civil 
Aeronautics Board. ■ . 

Note 2; "Airport" means the airport at which the direct or connecting flight, on which the passenger holds 
confirmed reserved space is planned to arrive or some other airport serving the same metropolitan area 
that is servnti by the former, provided that transportation to the other airport is accepted and used by the 

American Airlines 



831 



p.i 

May 



PASSEi-:G!:K SERVICE V^NUAL 
Reservdtlons, Ticko.t Office 
& Terminal Services 



fiA 



II lustr.-i!" i vr, cf 'Release statement' in the form of rubber stamp, to be placed on 
the reverse of Passenper Refund Check, Form 6A4 or 643, before presentation to 
the passcng-ir who is eligible for Compensation for Denied Boarding. 

(NOTE: Place imprint at the extreme top edge of the check, leaving no space for ar 
endorsement to appear above the release statement). 

Stamp imprint must be placed on the face of duplicate and triplicate copies of the 
Passenger Refund Check, when check is prepared for Compensation for Denied Boarding 



I hereby release American 
Airlines, Inc. from all claims 
arising in connection with denial 
of confirmed passage on Flight 

at Airport 

on . The endorsement and 

payment of this check within 
thirty (30) days of such addition- 
al period as may be set forth on 
the face hereof shall relieve the 
carrier of liability. 



Reverse side of Passenger Refund 
Check 



Extreme top edge of 
. reverse side of 
Passenger Refund 
Check 



832 



f4 



PASSENGER SERVICP >':;\.S'UAL 
Reservations, lickiic Office 
& Terminal Servici;.. 



Section 10-63 
Appendix 11/ 



Sep 30-7-; 



Cities listed in the FROM column below, must report the TOTALS for the NON-STOP seg- 
ments as shown in the TO column, for the months of KARCH, JUNE, SEPTEMBER AND DECEMBER 
only. 
For Example: Boston must report the TOTALS for the non-stop segments of Boston to 

Chicago, to Detroit, to Los Angeles, Philadelphia and Washington, for 

the months of MAR, JUNE. SEPTEMBER AND DECEMBER. 



FROM 




TO 








Boston 


- 


Chicago 






Detroit 




- 


Los Angeles 




- 


Philadelphia 




- 


Washington 


Buffalo 


- 


New York 


Chicago 


. 


Boston 


(ORD) 


. 


Cincinnati 


- 


Dallas/Ft. Worth 




- 


Detroit 




- 


Los Angeles 




- 


New York 




- 


St. Louis 




- 


San Francisco 




- 


Washington 




. 


Phoenix 


Cincinnati 


- 


Chicago 




- 


New York 


Cleveland 


- 


New York 


Columbus 


- 


New York 


Dallas/ 


- 


Chicago 


Ft. Worth 


- 


Los Angeles 




- 


New York 


Detroit 




Boston 






Chicago 






Los Angeles 






New York 


Los Angeles 




Boston 






Chicago 






Dallas /Ft. Wort 






Detroit 






New York 






Philadelphia 






Phoenix 






Washington 



FROM 


TO 






New York 


- Buffalo 


(JFK) 


- Chicago 


(LGA) 


- Cincinnati 


(EWR) 


- Cleveland 




- Columbus 




- Dallas /Ft. Woi 




- Detroit 




- Los Angeles 




- Pittsburgh 




- Rochester 




- St. Louis 




- San Francisco 




- San Juan 




- Washington 


Philadelphia 


- Boston 




- Los Angeles 


Phoenix 


- Los Angeles 




Chicago 


Pittsburgh 


- New York 


Rochester 


- New York 


St. Louis 


- Chicago 




- New York 


San Francisco 


- Chicago 




- New York 


San Juan 


- New York 


Washington 


- Boston 


(DCA) 


- Chicago 


(IAD) 


- Los Angeles 




- New York 



NOTE: Cities serving two airports in the same 

city must report both airports. 
EXAMPLE: San Juan TO New York 
SJU TO JFK 
SJU TO EWR 



;'\ 



833 



p.-.i;SENGER sr.i;vicE tlANU/.r. 
IJc-iervaticn.'. . Ticket 01 Ti 
& Terminal Servires 



SecLi.Mi 


".;->! 3 


Appon 


J-: :v 




p.l 


Sep 


■0 -7^ 



DAILY OVERSOLD/ INCONVtINIKNCED AND PASSENGER BOARDED PLT 



U KXM OC17K 



MESSAGE 



jliA/fe/?/CAA/ Xi//7£./A/^± 



OtIGINATORS FILING TIME AND DATE 


CO'AM FU.NC vf 


AOD«eSS 

HDQRKAA CPY CHIRAAA ORDOKAA 
ORDOLAA 




m"*n':' (STATISTICS) 


, 



AUTH LCL THRl 


J NR NS 
NO OVSL/INCVD 

BCD 

BCD 
BCD. 


XM SB 
(IF APPLIC 

E F 

E F 
E F 


_UG_ 
ABLE) 

G 


H 


NV 


DWN_ 


-'- 


_INV LNC 

K 

K 
K 


- 


UP K 

M 

M 

M 
M 


(DATE -MONTH) 

A 


(TtT-CLAsS-DAffi) 
A 


G 

G 


_H_ 
H 


A 


A 


B 


C 


D 


E 


F 


G 


H 








K 


A 


B 


C 


D 


E 


F 


G 


H 








K 




M 


REMARKS: 1) 
2) 
3) 



OVERSALE CODES: A=AUTH; B=SEATS; C=NO REC/INCQT REG; D=NO SHOWS; E=MISCON; 
F=STBYS; G=LAG (REMOVALS ) ; H=UPGRADES ; I=INCVD DWN 
J=INCVD IN LOUNGE; K=NUMBER OF PSGR PAID DBC ; L=TOTAL PSGRS 
0/B; M=TTL AKI PD DBC 



834 



.^4 



jA. POLICY AiW OBJECIIVi: 

p. CAUSES AND CLEARi\NCE 

|c. CONTROLS 

fu. RESPONSIBTLITIES 

A. POLICY Af« OEJECTIVL 

Aiperican Airlines does not deliberaKcly 
overbook a flight when it will result 
in an oversold customer. Oui: objective 
is to maximize our revenue without 
compromising our high standards of 
passenger service. 

Based on these principles, strict 
controls must be maintained on over- 
bookings in order to minimize oversale 
and inconvenience situations as these 
seriously affect our customers and 
our reputation. 

B. CAUSES AND CLEARANCE 

1. Causes - Some of the more frequent 
causes of overbooking are: 

- Schedule Change - reduction In 
service to a particular market 
wherein two flights are consoli- 
dated onto one/change to equip- 
ment of lesser capacity. 

- Substitution of Equipment - e.g. 
departure date change from B-223 
to B023. 

- Computer Failure - AA or OA. 

- Operational Restrictions 



Accommodation of a "No Record" 
Passenger 



"Frecsale" bookings received 
after a flight is closed to sale. 



Lack of artlcipated turnover in 
bookings . 



~ Hiiiv.'i .: 


;.'-.>r 


- Sup^o/: 


;■_ ;.rv_C 


Clears. - 


: - So-r 


resoU-.,; 


'. ovext 


are: 




- Abo, .■;, 


.':2 0- 


ticip;.i 


.i.n oi 


- Rediicti 


!r,n in 


for s.:: 


le in ■ 


- "Shakec 


lo'.'n" ; 



rnati." 


:; ;^or 


; siti.-! 


: -o'v; 


.lug in 


.,.,. 


iver . 




.luthor 


i-ed 


ernci .^ 


cr.bin. 



it-y - this 
requires a vjs'.-il edit of PNR's 
and action to i -: Muce ovorbookings. 
Include:) wouL'! I'C: 



Can'.ei; 



Ch.^noii 
KL''j Lv. 



ape bookings, 
-us oi unadvised 



. Conf ir.niii'f, preferred service 
i.e. hol'is overbooke'i flight, 
is waif;li-?L^d for another 
flight. 

. Reacco;'j.-od.\tion of groups on 
preferred or acceptable 
alternate ic^rvice. 

NOTE: ;'o fin:' v' action is in- 
volved in r.hakedown acti- 
vities . 

Substitution ci !.arger 
equipnicnl.. 

Discontinuance of DTA 
procedures for g:'ven flights/ 
dates. 

Unscheduled landing - 
dependent upcr the potential 
number of upliii? passengers 
Inconvenienced, crew legality 
and equipment turnaround. 



835 



TASSENGER SKKVICE >L'VNLiAL 
Heasrvations, Ticket Oi"!:; 
t. Terminal S^.'vvices 



t'l.\ 



Extra Section - if the operation 
car. be justified economically 
and tha resources are available. 

Reinstatement of cancelled flight 
(Holiday Frequency) . 

Pre-Removal - this step is 
considered a last resort and is 
pursued only after all other 
possibilities have been exhausted. 

NOTE: Firming action Is required 

prior to pre-removal advice. 

Order of Removal is listed in 
PSM R & TO Section 10-63 

C . CONTROLS 

To assist in meeting our corporate 
objectives, the following controls 
and procedures have been established: 

1 . Supervisory Overbookings - No 

overbookiiigs by Reservations, Sales 
or Ticket Offices are to be made 
without prior approval from Passen- 
ger Revenue Control. This applies 
to both locally originating flights 
and those serving upline/downline 
cities. 

The local Reservations Office 
will be the coordination point 
for overbooking requests for all 
locations served by the Reserva- 
tions Office. Each Reservations 
Manager will designate an indivi- 
dual to coordinate requests with 
Passenger Revenue Control. 

Only requests of a "critical" nature 
e.g. VIP's, death emergencies, 
complete a group booking, etc. are 
to be forwarded to the Reservations 
Office. "Shopping" type calls are 
excluded. i 



In processing, the Reservations Coordi- 
nator will: 

' a. Pre-screen requests to eliminate 
those with little or no proba- 
bility of confirmation. 

b. Maintain a log of all requests 
and confirmations received. 

Requests may be processed with Passenger 
Revenue Control between the hours of 
0700-2300 Eastern Time, daily (non- 
mechanized Reservations Office should 
request via PLT to HDQRKAA) . 

At other hours, requests will be 
forwarded to the Reservations 
Supervisor - on - Duty who, in 
special situations, may authorize 
a confirmation without prior contact 
with Passenger Revenue Control. It 
is expected that these occasions will 
be minimal. Any such bookings must 
be logged and relayed to Passenger 
Revenue Control the next morning. 

Airport Activities - In the handling 
of overbookings as the result of late 
equipment changes, local management 
should first attempt to obtain 
re-insta_tement of larger equipment 
through "the appropriate dispatch 
office. 

If re-instatement is not possible 
and it appears that oversales will 
occur, airport locations will 
coordinate passenger protection 
through the Reservations Office. 
The Reservations Office will contact 
Passenger Revenue Control for 
assistance in obtaining space on 
alternate flights. 



836 



■n AT. 
Offic-- 



Sfctiou /.0-7 5 

P. 3 

Sep 10-74 



OVKRBOOKIUCS 



I:; ::.:s or o:iy fntuation u.icre 
0/ ;i' 'les do ccciir, every effort 
v: ] i be made to acconriodate oversold 
p ''.ers oil nlie ne"t available 
■ ■ ■ _ throi.;.-:: coordination with 
Lli .','>borvatioriS Office or through 
;>r' vity standby handling. In no 
e\ -■■;-. Iiowevcr, vill such passengers 
ai,': :■ :aLically be confirmed or boarded 
on .■■ closed flight as this type of 
act;."u only tends to create a 
"co'iaioe" oversale effect on sub- 
sevju-int departures. 

M Ffi llback Activities - During 
periods when Sabre cannot be 
accessed (scheduled dovm, system 
interrupt, set problem), reservations 
are confirmed based on the nightly 
availability recap (segments shown 
"cpt;n" on the recap uiay be confirmed 
for up to 4 seats per transaction. 
Beyond the recap period, unless 
oth';rwise restricted, flights may 
be confirmed for up to 4 seats per 
transaction), recorded on Form R-48 
and routed to Support Services for 
subsequent Sabre input. 

If at input time, the confirmed flight 
is not available in Sabre, the booking 
will not be automatically overbooked, 
but will be routed to the Reservations 
Coordinator for processing with 
Pascenjer Revenue Control. If the 
flight is confirmed by Passenger 
Revenue Control, no further customer 
advice is required. If not confirmed, 
local Reservations Office will obtain 
alternate space and advise customer 
of status. 

AA Schedule Change - After each 
schedule change has been implemented. 
Passenger Revenue Control will relay 
iufcr.nation on flights that have 
become overhoo!;ed due to the 
schedule change to the local Reserva- 
tions Of - by PLT. 



This will cover all "problem" flights 
throughout the current Sa'ore period. 
This information will be received 
within 7 days of schedule change 
information. 

Since, in the majority of cases, 
schedule change overbookings 
are known well in advance of 
departure date, more lead time 
will be available for resolution. 

Upon receipt of the PLT, local 
Reservations Offices will review and 
coordinate plans with Passenger 
Revenue Control. 

5. OA Teletype - Notification of 

overbookings created by OA teletype 
is received, via queue, in Passenger 
Revenue Control. 

As such overbookings can be the 
result of authorized interline 
Freesale Agreements, computer 
failure or human error. Passenger 
Revenue Control will determine the 
cause and the action, if any, to 
be taken. 

a. If the sales are not "cross- 
bookings" i.e. sent before 
closing transmitted to OA, 
but received after. Passenger 
Revenue Control will resend 
the availability status message 
(AVS) to the carrier involved. 

b. When circumstances warrant, 
i.e. as a result of such 
bookings, oversales appear 
likely to occur. Passenger 
Revenue Control may elect toj 
advise the other airline of an 
unable to sell ("US") status on 
the booking, provided that this 

is done within 24 hours of receipt. 



837 



Similar action i.^ay be tu'cn on "ua- 
authorized" Frcssala bL-'okinss, 
e.g. Froesale bookings received on 
restricted sei^nients or over restricted 
periods or for large tarties. 

Wiien such action is taken. Passenger 
P.evanuo Control will notify local 
rejervations cnanagement , who, in 
turn, will inform airport management 
of the situation, giving the names 
of the passengers involved and the 
booking airline. Such passengers 
will not be considered holding 
passengers but will be handled as 
priority standbys. 



aasign the overbooking to the 
boarding cicy's Reservr.Lions Office. 

If, after all possibilities of 
removal by the boarding city have 
been exliausted and sufficient 
turnover has not materialized. 
Passenger Revenue Control may 
reassign the overbooking to another 
city. 

In order to minimize passenger in- 
convenience. Passenger Revenue 
Control will institute pre- 
removal action with as much advance 
notice as possible. 



NOTE: It is anticipated that such 
situations will be minimal. 

d. Uheve investigation indicates 
that there may be a breakdown in 
availability exchange. Passenger 
Revenue Control will take action 
to resolve the problem. 

e. Where investigation indicates that 
Freesale is not being used properly. 
Passenger Revenue Control will refer 
Che problem to Reservations Sales 
and Services, liYCQ, for their action. 

D. RESPONSIBILITIES 

In addition to those outlined above, 
the following responsibilities are 
assigned: 



2. Local Reservations Office : 

- Coordination and recommendation 
of action plan with Passenger. 
Revenue Control when advised of 
overbooked flight conditions. 

When local Reservations Offices 
become aware of overbooked conditions 
of which they have not been advised 
previously, they will alert Passenger 
Revenue Control. 

- Shakedown activities - when this 
is the recommended action. 

- As applicable, requesting of extra 
sections; substitution of equip- 
ment; re-instatements or unscheduled 
landings. 



1, P assenger Revenue 



Monitoring of all overbookings and 
overbooked flights. 

Advising local Reservations Offices 
of overbooked flights that are 
considered to be "problems" and 
which require coordinated action. 



Advice to and coordination with 
boarding airport for passenger 
handling and protection (e.g. 
DTA restrictions; OA teletype 
booking problems; late substitution 
of equipment) . 

Pre-removal advice to passengers. 
(See PSM R & TO Section 10-63). 



Instituting pre-removal procedures. 
V.^ien pre-removal is deemed necessary, 
ttse Supervisor in Passenger Revenue 
Control vill specify the number of 
passengers to be removed and will 



Maintaining and forwarding of all 
removal information to Passenger 
Revenue Control (HDQRKAA) for in- 
clusion in daily and monthly 
statistical reports. 



838 



SENATE QUESTIONNAIRE 



95. How many complaints were received regarding schedule 
irregularities? 1972-October 1, 1974? 



1972 3,416 

1973 4.017 
9 Mos 1974 2.275 

Total 9,708 



SENATE QUESTIONNAIRE 



96. What was the cost of providing amenities to delayed passengers (food, 
hotels, etc.)? 1972 - October 1, 1974? 



Answer : 
$3,687,344.00 

1972 1973 1974 through Sept. 30 

1,066,241 1,538,852 1,082,251 



SENATE QUESTIONNAIRE 



97. What is the procedure for getting flight status information from 
aircraft, to operations, to computer, to reservations and other 
personnel responsible for giving flight information to the public'! 



1. Flight Dispatch 

The flow of information pertaining to the operational status of 
a flight begins prior to the flight's departure from its point 
of origin. 

The Flight Dispatcher is responsible for disseminating all in- 
formation pertaining to a flight's planned operation and planned 
departure schedule. This type of information is called Flight 
Forecast. It includes change in type of aircraft scheduled, new 
departure times due to field and/or flight conditions, cancelled 
or added landings, and cancelled operations. This information is 
disseminated by Flight Dispatch via teletype messages and direct 
inputs into American's computerized Sabre System. (Note: Fore- 
cast computer entries are restricted to Flight Dispatch). When- 
ever an entry is made in Sabre for a particular flight, and 
"forecast" information has been entered by Dispatch, this data 
will automatically be part of the computer printout. 

2. Operations Office 

Information pertaining to the flight on the date of operation 
and generated by local field locations is called Flight Progress 
Information. The source of "Progress Information" are local 
field and flight messages disseminated by teletype and computer 
inputs . 

Prior to a flight's departure, the airport of departure issues 
an Advance Departure Message (ADM). This message advises the 
downline cities of the flight plan to be used and other per- 
tinent flight information. If a local delay is anticipated 
in excess of 15 minutes, an "Estimated Time of Departure" (EDT), 
or "Decision" (DCN) message is computer generated and trans- 
mitted by teletype to all downline cities. In addition, the 
"ETD" or "DCN" time is input by the departure city, into the 
Flight Progress Field of the Sabre computer system. All flight 
progress entered in this field is available to all Sabreized 
locations, including Reservations, city and airport ticket 
offices in addition to Operation Offices systemwide. All "CTD" 
or "DCN" times are required to be updated within established 
standards until the flight actually departs. 



97. 



840 

SENATE QUESTIONNAIRE Page 2 



Based upon information from the city of departure, the downline 
cities establish a Preliminary Estimated Time of Arrival (PRE). 
The "PRE" is input for delayed flights, into the Flight Progress 
Field of Sabre. As additional information is obtained from the 
city of departure, the "PRE" is reviewed and updated to reflect 
any changes. 

Note ; All flight times issued by the Operations Offices are 
posted on local Flight Arrival and Departure Boards for public 
dissemination. 

When a flight departs, the flight crew calls the official "out" 
and "off" times via ARINC, to the Operations Office. All down- 
line cities receive a teletype copy of the flight crew times. 
The next city enroute reviews the actual "out" times, adds the 
established flying times per the flight plans, and determines 
a final Estimated Arrival Time (EIA). The "PRE" is now updated 
to an "ETA". This aids to indicate the flight is airborne from 
previous city. The "ETA" is disseminated via a flight progress 
Sabre computer input. 

If the flight incurs any delays while enroute, i.e., ATC, flight 
conditions, etc., the flight crew radio's, via ARINC, a new "ETA". 
A teletype copy of the radio contacts are received by all downline 
cities to update their local "ETA" or "PRE" times accordingly. 

Upon arrival at their destination, the flight crew radio's the 
official "on" and "in" times via ARINC. If the flight is con- 
tinuing, the times are teletyped downline. Utilizing the 
latest times, a new "PRE" is established and, if necessary, 
"ETD's" are published per the procedures detailed above. 

Dissemination of Flight Information 

Flight times are maintained in the Sabre flight progress field 
for dissemination by all public contact personnel, i.e., 
Reservations, city and airport ticket offices through American's 
system. Locations that do not have direct access to Sabre ob- 
tain flight information from local teleautograph system con- 
nected to the local Operations Office. 

Airport ticket offices display flight times on local Arrival 
and Departure Boards or video screens. Times, as provided by 
the local Operations Office, are indicated and updated accord- 
ingly for public dissemination. Additional direct inquiries 
may be answered from information available in Sabre s flight 
progress field, local teleautograph, or calls by our personnel 
to Operations. 



97. 



841 

SENATE QUESTIONNAIRE Page 3 



Standards have been established for accuracy of flight in- 
formation. Quality control observations are taken monthly 
to ensure these standards are maintained. The areas measured 
are Posted Flight Information, Sabre Flight Progress Informa- 
tion and Delayed Flight Messages. 



Attached are published Flight Information Procedures. 



Attachments 



842 



m 



Lnal S< 



lh-73 



[•■LIGHT PRO 



m;on 



Purpo.^c ;md RespoosiluMity 
Flight Itiformatiori Sources 
Delay Information Seat to Dc 
Cities 

Unofficial Off Time 
Estimated Time of Arrival 
Estimated Time of Departure 
Information Control Sheet 



A. PURPOSE AND RESPONSIBILITY 

Flight Progress Information is defined 
as the dissemination of Information to 
all concerned regarding the progress of 
the flight. 

Simply stated these procedures are de- 
signed to answer accurately the follow- 
ing questions: 

"What time will the flight leave?" 

"What time will it arrive?" 

Our ability to answer these questions 
clearly, accurately and promptly is one 
of the most important means by which 
our Company character is developed. 

The City Manager will establish a com- 
plete working plan for the handling and 
dissemination of Flight Progress Infor- 
mation at the station. Tlie calculation 
of estimated arrival and departure times 
and the dissemination to all concerned 
is the responsibility of the City Manager. 
Normally, it is administered by the Flight 
Information Center (FIC) at the station. 

The City Manager is responsible for pro- 
viding adequate communication facilities 
for prompt dissemination of information 
to Reservations, Airport and City Ticket 
Offices, Ramp, Caterer, Post Office, Air 
Freight and Railway Express Agency. 



The prcc-.'.icires in this section apply — 
wiether oi not a staticm has SABRE. 
!3ee Section 00-75, Flight Progress In- 
rormation - SABRE for additional pro- 
cedures l.hat apply to SABRE. 

B. FLICJ.T U;F0RMATI0N SOURCES 

Flight information is obtained from data 
Gjppliei by aircraft movement messages, 
flight crew reports and a computerized 
flight monitoring system. 

The aircraft movement messages include: 
an estimated time of departure message 
containing either an ETD or decision 
time and the reason for delay; an ARTC 
delay message advising of local inbound 
or outbound traffic delays; departure 
and termination messages that contain 
actual departure or arrival times. 
(See Section 60-79, Aircraft Movement 
Messages. ) 

Flight crew reports update available 
flight information by advising ground 
delays after gate departure, and with 
in-flight position reports that re- 
flect enroute progress or delays. 

The computerized flight monitoring 
system analyzes the information con- 
tained in all of the reports mentioned 
above. A variation of + 6 minutes from 
the scheduled flight plan will generate 
a message to the next downline city 
with a new ETA. 

Local Operations Offices are responsible 
to disseminate all flight information 
via SABRE, local Tel-Autograph or other 
local communication systems. 



843 



Sectir,, 60-71 

P. 2 

Jan 21-74 



PA'JSr.KGER Si:. 
Terminal Serv 



;ce Editic 



^^i'- 



C. DEIAY INF0RH.\T10N SENT TO DOWNLINE 
CITIES 

The following procedures cover informa- 
tion sent to downline cities on delayed 
flights. See Para. F, "Estimated Time 
of Departure" for information dissemin- 
ated locally when a flight is delayed. 

1. How sent - a PLT will be sent to all 
stations receiving the Advance De- 
parture Message. 

On flights with scheduled block to 
block times of 2 hours or less to 
the next stop, and all ORD-NYC-ORD 
non-stops, all delay information 
will also be sent to the next sta- 
tion via PLF. When this is done the 
notation "(station) ADZD" will be 
made on the station copy of the 
message form. The message will be 
time stamped when the station is 
called. 

A radio message, via ARINC, from the 
flight crew will advise all stations 
of any delays incurred after pushout 
or while enroute. 

2. When sent - If it is anticipated an 
originating or turnaround flight will 
depart later than 15 minutes after 
scheduled departure a delay message 
will be filed as soon as possible but 
no later than 15 minutes after sched- 
uled departure. 

If it is anticipated a flight will in- 
cur a 15 minute delay at an inter- 
mediate city on a through flight, a 
delay message will be filed as soon 
as possible but no later than 15 
minutes after the scheduled or esti- 
mated time of departure. 

An estimated departure message (EDM) 
will be issued for all flight delays 
occurring prior to departure. 



3. Infcrmaticn li 'cludcd - The delay mes- 
sage will include an ETL' or "Decision" 
time and the reason for the delay. A 
follow-up delay message will be filed 
no later than 10 or 20 minutes after 
the "Decision" time quoting a revised 
"Decision" time or an ETD (See item 4.). 

Refer to "Aircraft Movement Messages", 
Section 60-79, for message formats. 

In the interest of better passenger 
service, "Decision" messages will be 
kept to a minimum. To meet the 
"Decision" deadline the FIC agent 
must obtain the information prior to 
deadline time. 

4. "Creeping delay" - If the flight is 
delayed beyond the established decision 
or estimated departure time, a new time 
must be filed within the following 
standard; 

a) Flight segment of 1,000 miles or 
less, message must be filed no 
later than 10 minutes of the 
established time. 

b) Flight segments over 1,000 miles, 
the message must be filed within 
20 minutes. 

This process will be repeated as often 
as it occurs until the flight departs. 

The first delay message must contain 
a brief description of the cause of 
the delay. Subsequent delay messages 
will contain a reason only if the 
reason for the delay has changed. 

5. Air or Ground Interruption - When a 
flight departs but then returns be- 
cause of an air or ground interrup- 
tion, a decision message will be 
sent indicating "GDNTP" or "ARNTP" 
as reason for delay. 

6. Field below take-off /landing limits - 
If the field is below take-off /land- 
ing limits which makes it impossible 
to quote an hTD a AKTC delay message 
will be sent. In addition, a de- 
cision time will be sent on a EDM 

for all departures. 



67-378 O - 76 



844 



PASSK-.C-^ SERVICE MANUAL 
Termiii-si Service Edition 



Section 60-71 

P. 3 

Feb 16-73 



FLIGHT PROGRESS INFORMATION 



Ground traffic delays - Whenever a 
flight incurs a delay on the taxi- 
way or runway due to local ARTC, 
the flight crew will establish an 
ETO. This information will be dis- 
seminated via ARINC, radio com- 
munications. 

Confirmation of departure - (applies 
to PLF only) - On flights with 
scheduled block to block times of 
2 hours or less, and all ORD-NYC-ORD 
non-stops, the FIG Agent will advise 
the next downline station via PLF 
when the flight has departed the 
gate. For example: 

"Flight 51 out, not off." 

This call will always be made even 
though the FIC Agent expects the 
flight to be off the ground within 
normal allocated times. 

Through flights - When a through 
flight departs the previous station 
and is delayed enroute because of 
headwinds, ATC, etc., the flight 
crew's position report will cause 
the computerized monitoring system 
to issue an ETA to the next downline 
city. If the station aware of the 
delay feels the lost time will not 
be "made up" on the ground, it will 
send a message quoting an ETD as 
soon as the enroute delay is known. 
If the FIC Agent feels this ETD will 
be inaccurate it will be revised 
when the flight arrives. In addi- 
tion to sending a PLT message, this 
information will be sent via PLF if 
the scheduled time is 2 hours or 
less to the next stop including all 
GRD-NYC-ORD nonstops. 



Example: 

Flight 192 is scheduled LAX-ORD-DTW 
and departs LAX on time. DTW there- 
fore plans on an on-time arrival if 
the flight plan between LAX and ORD 
indicates the flight will arrive 
ORD on time. Assume between LAX and 
ORD the trip is rerouted and loses 
30 minutes. If ORD feels the time 
will not be gained on the ground, it 
will send an ETD via PLT when the 
enroute delay becomes known and also 
call DTW on the PLF. When the flight 
arrives ORD, the FIC Agent will 
"double-check" the ETD previously 
sent. If he feels it will be in- 
accurate it must then be revised. 

D. UNOFFICIAL OFF TIME 

On flights with scheduled block to block 
times of 2 hours or less, and all ORD- 
NYC-ORD nonstops, the FIC Agent will 
notify the next downline station via 
PLF of the unofficial off time. It will 
be sent as soon as possible but no later 
than 5 minutes after the unofficial off 



The FIC Agent will indicate on the De- 
parture Message the unofficial off time 
of the flight and the time it was for- 
warded via PLF to the next downline 
station. These times will be indicated 
after the Agent's signature on the De- 
parture Message and will be shown as 
follows: 

"05/08" - The first digit represents 
the unofficial off time; the second 
is the time it was forwarded to the 
next station. 



845 



Section 60-71 

P. 4 

Feb 16-73 



PAS' 
Ten; 



.R S ■:.■": 
I Servj 



,--.\:niAL 

.Jit ion 



h'^^i^'' '\ 



It should be emphasized Lbar promptnoi.s , 
and not necessarily coir.pl "te nccuracy, 
is the key point in this pr.^ce.dure. It 
is more important to relay tlie unofficial 
off time promptly and subsequently find 
it is in error by one or tv7o minutes, 
than to wait for the actual off time be- 
fore calling the next station. 

E. ESTIMATED TIME OF ARRIVAL 

1. Types - There are two types of ETA's - 
preliminary and final. Preliminary 
(PRE) is based on information prior 
to actual take off from the preced- 
ing station. Final (ETA) is based 
on the actual off time from the pro- 
ceding station. 

It is important that every estimated 
time of arrival be identified as pre- 
liminary or final. When a prelimin- 
ary is issued, the Reservations Sales- 
man will advise the caller that the 
information will be received at a 
specified time. The basic purpose 
of this procedure is to eliminate the 
justifiable complaint received at the 
ATO. "I called you an hour ago and 
you said the flight would be on time. 
Now you say it will be two hours late. 
What happened?" 

Code PRE will be used to denote .pre- 
liminary estimates; Code ETA will de- 
note Final estimates. 

2. Use of Flight Plans - The elapsed 
times between stops in the flight 
plan are the estimated flying times 
for each segment from "off" the 
ground at each take-off to landing 
on the Instrument Runway at the next 
station, excluding any traffic delay. 

This applies whether IFR or VFR con- 
ditions prevail or whether IBM or 
prepared flight plans are used. 



CompiiLing estinuitcd times of arrival 
would be relat ■.■.'.':iy simple IC landinu 
delays were not pncountercd . To the 
off time from the previous station v.'e 
would add the flight plan time and 
taxi time. Unfortunately, there are 
no rules for determining the length 
of landing delay. It varies with the 
weather, surface wind and traffic den- 
sity. Agents assigned to the Flight 
Information Center will exercise their 
powers of observation and judgment in 
estimating how much an instrument 
approach, traffic conditions or land- 
ing direction will delay a landing. 

ETA's published by the computerized 
system do not include local taxi times. 
When an Air Traffic delay advisory for 
landing or take-off's is issued by the 
local station, this information will 
be incorporated in the computerized 
ETA. Local FIC agents will update 
all ETA's to incorporate local on the 
ground taxi-in delays. 

3. Enroute Estimates - Flight Manual - 
Part I, Section 6 instructs the Cap- 
tain to give revised estimated time 
of arrival whenever the flight plan 
estimate indicates previous arrival 
time is 5 minutes off. The time 
quoted in the revised estimate will 
be the estimated time of touchdown 
excluding any traffic delays. 

4. "In Range" and Change Over" Reports - 
Flight Manual, Part I, Section 6, 
instructs the pilot to give an est- 
imate touchdown time exclusive of 
traffic delay, when making an "in 
range" and change over" report. 

Upon receipt of this information, 
FIC Agents will revise their ETA, 
if necessary. 

When operating VFR an "in range" 
report will be made approximately ] 
10 minutes prior to intended 
landing. 



846 






FASSEMCbi^ r.ERVICE MAiJUAL 
lerminal Service l;<'il-ion 



Section 60-71 

P. 5 

Feb 16-73 



FLIGHT PROGRESS INFORMATION 



When operating iFR the "change over" 
report will be made just before be- 
ginning descent from cruising alti- 
tude. 

Disseminating Information - The fol- 
lowing rules apply regarding dissem- 
ination of information on the arrival 
of a flight. 

a. The FIC Agent will always quote 
a specific time when dissemin- 
ating Information. The term 
"on time" will not be used. 

b. In quoting estimated times of 
arrival the FIC Agent will never 
refer to departure times from 
upline stations. This information 
is not needed and including it 
will only lead to possible con- 
fusion. 

c. On non-stop flights, PRE's will 
be disseminated from the time 
an ADM/EDM is received from the 
originating city. All estimates 
will be preliminary until the 
flight takes off the previous 
city and then an ETA will- be 
established. 

d. On multi-stop flights, a pre- 
liminary ETA will be issued 
when an ADM/EDM is received 
from the originating city. The 
preliminary ETA will be revised 
only if the ETA will vary by 
more than minus 5 minutes or 
plus 10 minutes. A final ETA 
will always be sent when the 

. flight takes off the previous 
city. 



Example: 

A trip is scheduled SAN/LAX/DAL/ 
ORD and assume you are in ORD. 
Upon receipt of SAN's ADM, a 
preliminary ETA will be issued 
by ORD. Assume ORD disseminates 
a preliminary of 1000. A revised 
preliminary will be sent if the 
FIC Agent anticipates the flight 
will arrive earlier than 0955 or 
later than 1010. A final ETA 
will be disseminated and ident- 
ified, however, when the flight 
takes off DAL. 

e. Preliminary and final estimates 
will be issued in the following 
manner: 

10 PRE (or ETA) 0645 

HF 0205 (sine and time) 

f. The following type "Decision" 
messages will be received from 
preceding station: 

(FLT) (ORIG DATE) (CITY) (TIME) 
(REASON) /D 

Example: 

474 21 1 ETD SFO 1230 SVCG/D 

This information will be dissem- 
inated locally: 

Example: 

FLT 474 DCSN SFO 1430 SVCG. 

Downline city should allow for 
normal delay in transmission 
from preceding station of updated 
decision information. 



847 



Section 60-71 



PASSENGER SEUVTCi: !-li\NUAL 
Termiual Servb: : !,dirion 



.H. 



g. when the flight is holding over 
the field awaiting landing limits 
the following will be dissemin- 
ated locally: 

(Flight) HLDG OVR (City) AWTG 
LNDG LMIS DCSN (Time) 

h. If the flight "passes over" 
because of low ceiling and 
visibilities the following 
will be disseminated locally. 

(Flight) OVR (City) TO (City) 
FLCND 

i. When there is some question that 
a multi-stop flight will land at 
an intermediate city a final ETA 
will not be issued until the 
flight definitely passes over 
the city. For example: 

Flight operates BUF-SYR-BOS and 
the landing is DCSN DFRD. After 
the flight departs BUF, BOS would 
issue a preliminary ETA (PRE). A 
final ETA would not be issued by 
BOS until they receive definite 
Information that the flight has 
departed SYR or has passed over. 

6. Late Information - Whenever flight 
progress information is 10 minutes 
overdue, it should be requested.; 
If available, PLF will be used. 

F. ESTIMATED TIME OF DEPARTURE 



ETD ' s should be set up dis far in advance 
as possible. This is particularly true 
of multi-stop flights nnd turnaround 
flights where the inclination could be 
to hold off setting up a time until late 
information is received. However, FIC 
Agents must remember that it is Company 
policy to call passengers when a flight 
will operate 60 minutes or more late. 
It is also Company policy to make dec- 
isions on Flight Information three hours 
prior to departure to allow Reservations 
sufficient time to call passengers. It 
is recognized that ETD ' s cannot always 
be established 3 hours prior to depart- 
ure, but they must be set up as early 
as possible. 

In establishing ETD ' s based on late 
through or late turnaround equipment 
FIC Agents will take into consideration 
that a certain amount of time can be 
"made up." They must, however, be real- 
istic in computing how much time. We do 
not want a number of delays charged to 
awaiting planned departure; neither do 
we want our passenger sitting around the 
airport for an undue length of tim.e. 

On late operations if there is any 
possibility of substituting equipment. 
Flight Dispatch must be contacted prior 
to issuance of an ETD. 

ETD will be issued locally in the 
following manner: 

(Flight) ETD (City) (Time) (Reason) 



The following procedure covers information 
disseminated locally regarding the depart- 
ure of a flight. It does not govern in- 
formation sent downline on a delay. This 
is covered in Paragraph C, "Delay Inform- 
ation Sent to Downline Cities." 



When a flight is delayed but it is im- 
possible to issue an ETD because of in- 
definite information a "Decision" message 
will be issued as follows: 

(Flight) DCSN (City) (Time) (Reason) 



848 



4 



PASSENGER SERVICE MANUAL 
Terminal Service Edition 



Section GO-71 

P. 7 

Feb 16-73 



FLIGHT PROGRESS INFORMATION 



G. INFORMATION CONTROL SHEET 

An Information Control Sheet (refer to 
Appendix I) will be maintained in each 
Flight Information Center and will be 
completed as follows: 

(ij STN (Pre-print) the designated code 
^"^^ of upline stations and the origin- 
ating station. The local station 
will determine the stations desired 
but information on multi-stop flights 
must be disseminated as outlined in 
5. d. above. 

DUE OUT (Pre-print) the departure 
time as shown in the General Schedule 
for each station. 

ETD - record the revised departure 
time indicated in the Estimated 
Departure Message from each upline 
station. An ETD will be issued 
only if the flight is operating 15 
minutes or more past the published 
scheduled times. 

(2J FLIGHT mjMBER (Pre-print) Official 
flight number listed in General 
Schedule. Note frequency service. 



© 



AIRPLANE - (Optional Entry) Enter 
the NC of the aircraft that arrives 
and/or departs your station. In the 
event of a change of equipment at 
your station, do not erase but only 
cross out the old number after enter- 
ing new NC. 

(p^ SCHEDULED ARRIVAL (Pre-print) Enter 
^~^ arrival time as shown in General 

Schedule or for extra sections, the 
arrival time as specified by the 
Flight Dispatcher. For non-scheduled 
landing there is no entry required. 



© 
© 



PRE - Enter the preliminary estimated 
time of arrival based upon pre-depart- 
ure information from upline station(s). 

ETA - Enter estimated arrival times. 
The final ETA will be quoted on the 
basis of the off time of the previous 
station. 



(7^ ON - Enter the actual 
^"^ reported by the Captain 



on" time 



© 

© 
© 

© 
© 
© 



IN - Enter the actual arrival time 
reported by the Captain. 

REMARKS - Include all flight forecast 
information quoted by Dispatch as it 
pertains to the flight and/or a brief 
explanation of any upline delays. 

(Blank for local use). 

SCHEDULED DEPT -(Pre-print) Enter 
departure time as shown in the 
General Schedule or add the depart- 
ure time for extra sections as 
specified by the Flight Dispatcher. 

ETD - Enter all estimated times of 
departure as disseminated from the 
FIC position. Cross out entry after 
revised ETD is issued. 

RVSD ETD - For extended delays in- 
dicate the revised ETD issued to 
downline cities. Cross out previous 
entry if new ETD is revised. 

OUT - Enter the actual departure 
time reported by the Captain. Enter 
In and Out times for ground or 
flight interruptions. 



849 



Section 60-71 PASSKN'GER StRVr-E NANUAL .■^■/•'; ^\ 

p. 8 Terrniaal Servl-'j EdiCion yt- ' • 'A 

Feb 16-73 ^" ''-^ 



© 



OFF - Enter the actual off time 
reported by the Captain. 



(16) DELAY CODE - Enter code from PSM, 
^""^ Terminal Service Edition, Section 
60-63. 

^7^ STN (Pre-print) The designated code 
^-^ of the dovmline stations. 



It may also be necessary to Include 
columns for local use, i.e., gate 
numbers, agent assignment, aircraft 
routing, etc. 



END 
Issued by Ticketing and Terminal Service 



J^ 



850 



PASSENGER SERVICE MANUAL 
Terminal Service Edition 



FIC CONTROL SHEET 



I- ion 60-71 

■\ iperidix ' 

P.l 

Feb 16-73 





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851 



lF.R'S MA\i:^L 



:tlcn 50-14 

P.l 

Mar 13-7A 



FLIGHT IKFCRKATION QUALITY MEASUREMENT 



A. Postfd 


Fl ight Infcriration 


;;. Flight 


rrogiess Inforinatlon - SABRE 


C. limelif 


rss & Accuracy of Progress 


Messag*- 


- Delayed Flights 


An-endix A 


- Fosted Flight Information 




■■■Jork Sheet 


ApFti.dix B 


- Flight Progress Infcrira- 




tion - SABRE Work Sheet 


Apppnciix. C 


- Timeliness i Accuracy of 




Progress Message - Delayed 




Flights Work Sheet 


A . POSTED 


FI-IGHT INFOPJ'IATION I 



1. Purpose 



To deterniirie if the flight informa- 
tion posted on the Terminal A & D 
Boards is complete and to determine 
if the Fosted Flight Times agree 
with the ACTCAL arrival/departure 
time of the flight. 

Standard 

At least 90% of the flights will 
have complete infcriration and 
accurate ARRIVAL 6. DEPARTURE times 
posted or. the Terminal A & D Beards 
to the following degree: 

. Information: The A & D Board will 



display the following information: 

(1) Flight Number 

(2) "Scheduled" Departure or Arriv- 
al Time 

(3) "Will" Depart or "Will" Arrive 
Time 

(A) Destination City or Arriving 

from City 
(5) Gate Number 



be within 10 Minutes prior to or 
after the time Posted on the 
A & D Eoaid. 

3. Responsibility 

Direct observations and reporting 
of station perfcnrance will be 
made by the Quality Control 
Analyst. 

4. Sample Size 

Determine the sample size by 
using the prccedure in Section 50- 
1 and the 90% performance curve. 
For total possible occurrences 
per month, review the station/ 
city times and determine the 
total number of arriving and 
departing flights scheduled for 
the month. 

Notes ; 

1/ One observation Ie equivalent 
~ to one flight (Arrival or 
Departure) and includes the 
verification that both the 
Time and Information posted on 
the A & D Board is accurate 
and complete. 

21 Thru Flights : If both the 

Arrival & Departure Information 
for the thru flight is observed, 
consider this as 2 observations 
(1 Arrival Cbserveticn & 1 
Departure Observation) . 



Times : The Actual arrival or 
departure time of the flight will 



852 



V ■'■- Cortec'; 
Mar 13-74 



CONTROLLER'S MANUAL 



JJA 



■ Hethoc'. 

a. DetcTiiilne from the station/city 
times, the total number of 
arriving and departing flights 
scheduled for the tr.onth. 

b. Use the 90% performance curve 
(Section 50-1) to determir.e the 
total number of observations 
scheduled for the month. 

c. Guidelines for scheduling 
observations: 

(1) Schedule the same number of 
observations per day, making 
the majority of them during 
the peak arrival or departure 
activity of the day. ■ 

(2) Schedule 40% of the observa- 
tions on Arriving flights 
and 60% on Departing flights. 

(3) Randomly select the flights to 
be scheduled and record them 
on the Posted Flight Inform- 
ation Worksheet (Appendix A). 

d. Gulaelines for taking the measure 
and scoring the observation (Hit 
or Miss). 

Step 1 : Fifteen (15) minu tes 
before the flight Is scheduled 
to arrive or depart (as shown 
in the City TJjnes), observe the 
A & D Board and record the 
Posted Time (Will Arrive/Will 
Depart) on the Worksheet, 
Appendix A. Also determine 
if the Inforraaclon on the 
A £■ D Board is complete as out- 
lined in 2. a. above. Record 
the results (Hit/Miss) on the 
Worksheet, Appendix A, in the 
A & D Board Info Complete 
column . 



Note (A & D Board Information 
Completeness) : 

1/ If the Gate Number is Not 

Assigned and the Posted Arrival/ 
Departure time is 15 min.(or 
more) later than the Scheduled 
Time, consider the absence of 
the Gate Number as acceptable. 
However, all other Information 
listed in 2.b. above must be 
visible on the A & D Board. 

2/ If the flight has been cancelled 
or is posted as See Agent , 
discontinue observations on this 
flight. 

Step 2 : Five (5) minutes before 
the Posted TJme (Will Arrive/ 
Will Depart) for the flight (as 
determined in Step 1 above), ob- 
serve the A & D board and deter- 
mine If the Posted Time has 
changed . 

(a) If the Posted Time (Will 
Arrive/Will Depart) is the 
saire as previously recorded, 
proceed to Step 3. 

(b) If the Posted Time has 
changed from that previously 
recorded, record the "New" 
Posted Time on the worksheet. 
Appendix A and repeat Step 2. 
Continue tSe process as many 
times as i^oessary. 

Step 3 : Determine from station 
records, the Actual arrival/ 
departure time of the flight and 
record this time en Che Work- 
sheet, Appendix A, 

Step 4 : Com.pare the Actual arriv- 
al/departure tlire of the flight 
to the last Posted Time as 



853 



^)i^-\ cgi;tfcli,i:r's manual 



FLIGHT INTCKMATICN QUALIJA' MEASURF.MLIV 



determined ii. Step 2. If the 
Actu»3 Tiir.e :.s within 10 minutes 
of the last P osted Time , the 
observation Is within Standard 
(Hit). If the Actual time 
exceeds 10 minutes, the observa- 
tion is below Standard (Miss). 

Step 5 : Record the results of 
the observation (hit/Miss) en 
the Worksheet, Apperdlx A, unoer 
the appropriate column u".rri\al 
or Departure Time). 



1/ Both the liifctmatioR on the 
~ h S, I) Fcaid and the Arrival/ 
Departure Tirries must be 
within Standard for the 
Flight to be rated acceptable 
However, always complete 
both parts of the measure 
(Information & Time) even 
when the Inf crtijaticr. part 
'■ is observed to be lelow 
standard. 

2/ Consider the obs€rva.ticn to 
be below stand^rd whenever 
the Infcrmaticn or Tim.e is 
incomplete/ incorrect ever 
though the cause n;ight be 
a result of malf urctioning 
A & D equipment. 

Report the following 3 perfcrm- 
apce percentages for Posted 
Flight Information: 

(1) Ferfon.ance for Arriving 
Flights 

(2) Performance for Departing 
Flights 

(3) Total, station performance 



based upon the total of both 
Arriving Flight and Departing 
Flighl: observations. 

The performance Ftardard for this 
measure is 9C%; however, report 
standard if only one sub'jlandarci 
flJght is detected during the 
mclch. l:eroi C the actual perforr.- 
ance vhtn two or more sub-standard 
flights are detected. 

Note ( E.xcepfio n? t o Fli ght 

Inforn.ation Completeness) : 
The absence of Gate Assignments 
at JFK for flights Arriving from 
SJU should net be considered as 
inccn.p.'ete information (b*iss) . 
All other infcrmation is required. 



FLIGHT FRCGRFS;; IXFOFKAIICN 
PACfiF 



1. Purpose 

To determine if the inforn.ation 
for Delayed Flights is input into 
SABRE accurately and timely, 
thereby resulting ir accurate 
flight information being available 
to all callers. 

2. Standard 



At least 95% of all Flight Frcgress 
Infcrmation for Delayed Flights 
will be complete and entered into 
SABRE within the specified time 
limits after the source information 
has been filed or received by 
the local office. 

. SALBE I n puts R equired 

(1) Delayed Arrivals: PRE, FTA 



854 



SecUicn 50- li 
Hur 13-7 A 



and IN entiles 
(2) Delayed Departures: ETD/KCSN 
and CUT entries 

1. Time Li mi ts (Ar riva l.E L de parture s) 

(1) Flisht Se gments 10 00 Mi les or 
Less: 10 Kinu'le^ 

(2) Flig ht Segments of More than 
1000 Mil es: 20 Minules 

Respo nsibility 

The Quality Control Analyst will 
examine local records and report 
station perfomiance. 



a. Deterp'.ine from aration racorc:; 
the average montlily total of 
flights delayed 13 ninutes or 
more past the published 
schedule (Arrivals plus 
Departures) . 

b. Use the 9^5% perf ortr.auce curve 
(Section 30-1) to dcterinine the 
total number of observations to 
be scheduled for the month. 

c. Guidelines for scheduling 
observations: 



A. Sample Size 

Determine the sample size by 
using the procedures in Section 
50-1 and the 95% performance 
curve. For total possible 
monthly occurrences, forecast fro:n 
historical station data the expec- 
ted number of Arrivals & Departures 
in the month that will be delayed 
15 minutes or more beyond the 
published schedule. 



(1) Review station records during 
the month to determine the 
actual number of Arrivals and 
Departures that were delayed 
15 minutes or more for the 
month/period. 

(2) Schedule observations to 
include as many different days 
in the month as practicable, 
and distribute individual 
observations as follows; 



1/ One observation is equivalent to 
to one flight (Arrival or 
Departure) and includes the 
verification that Flight 
Progress Information for Delayed 
Flights is entered into SABRE 
within the prescribed time 
limits. 

2/ Thru Flights : If both the 

Arrival & Departure Information 
for the thru flight is observed, 
this is to be considered as 
2 observations (1 Arrival 
Observation £> 1 Departure 
plaservation) . 



■' 60% on Arriving Flights 
A0% on Departing Flights 

(3) Randomly select the flights to 
be sampled and post thera on 
the Flight Progress Information- 
SABRE Worksheet, Appendix B 
page 1. 

Note (Delayed Depa rt! ng Flight 
Observations ) : It is recomir.end- 
ed that the same flights 
observed in the Ti meliness and 
Accuracy of Progre s s Message - 
Delayed Flights measure, be 
sampled to ensure compliance 
with the required SABRE input. 



855 



A CO!JT;'Ot),ER'S >LA 



FLIGHT INFORMATION QUALITY MEASUREMENT 



d. Guidelines for taking the 

measure and scoring the observa- 
tion: 

(1) Review the local station records 
for the flight and record on 
the worksheet (Appendix B 

page 1) the total number of 
SABRE inputs by type of input, 
i.e., PRE, ETA, IN; ETD/DCSN, 
OUT. 

(2) Review the individual SABRE 
inputs, by type, and determine 
If the SABRE entries are 
complete and were entered 
within the prescribed time 
limits, after the source 
information has been filed or 
received by the local office. 
See Appendix B page 2 for the 
designated source information . 

Note: Frequently several PREs 
and ETAs on Arrivals and 
several ETD/DCSNs on Departures 
will be required for a flight 
due to extended or creeping 
delays. For purposes of this 
measure, each SABRE input must 
be entered within the prescribed 
time limit for the message to 
be considered acceptable. 

If a required message was Not 
input into SABRE, i.e., an 
ETD/DCSN on a delayed Departure, 
consider the absence of the 
SABRE input as a Miss (message) . 
See Note section of Appendix B 
page 2. 



Discontinue observations for 
the flight when a system or 
local interruption renders 
SABRE unavailable, AND the 
Agent noted the time the 
attempt was made to enter the 
information into SABRE. 

e. Record the number of SABRE inputs 
within standard bv type of input 
and total for the flig ht, on the 
worksheet Appendix B page 1. 

f. Calculate station performance 
by dividing the total number of 
SABRE inputs within standard by 
the total number of SABRE inputs 
made/required for the month. See 
Appendix B page 1. 

Note : Sample Size requirements 
are based on the anticipated 
number of flights (arrivals/ 
departures) that will be delayed 
15 minutes or more during the 
month. However, station Quality 
Performance is based upon the 
total number of SABRE inputs for 
the flights sampled and the 
number of SABRE inputs within 
standard. 

g. The performance standard for this 
measure is 95%; however, report 
standard if only one substandard 
SABRE input is detected during 
the month. Report actual per- 
formance when two or more 
substandard SABRE inputs are 
detected. 



856 



Section 50-14 
P. 6 Correct ed 
Mar 13-74 



co:;tp.oller ' 



C. TIMELINESS A^fD ACCURACY OF PROGRESS 
MESSAGE - DELWED FLIGIJTS 



i-ved by the 



Ight). 



1. Purpose 

To determine if delayed flight 
Information is sent accurately 
and timely, thereby resulting in 
good flight information dissemin- 
ated to the public. 

2. Standard 

At least 95% of the Passenger 
Flights (Departures) delayed 15 
minutes or more shall have the 
Delayed Messages and Follow-Up 
Messages filed Accurately and 
within the Prescribed Time Limits. 

a. Delayed Message Accuracy 

(1) The First Delay Message must 
contain an ETD (Estimated 
Time of Departure) or a DCSN 
(Decision Time) and a brief 
description of the Cause for 
the Delay. 

(2) Each succeeding Follow-Up 
Message must contain an ETD 
or a DCSN. Later Messages 
must contain a reason, only 
if the cause for the delay 
was changed. 

b. Delayed Message Filing Time Limits 

(1) First Delayed Message Filing 
Time Limit 

Originating and Turnaround 
Flight s: The first delay 
message must be filed no 
later than 15 minutes after 
scheduled departure (or a 
planned departure set up 
by the Flight Dispatch and 
disseminated to all stations 



Through Fli ghts: The firr.t delay 
message must be filed vlchin 
15 minutes after the maximum 
ground time allowance has expired. 

(2) Follow-Up Mes s age Filing Time 
Limit 



Flight Segments 1000 Mile s or 
Less : A follow-up message must 
be filed no later than 10 min- 
utes after each ETD or DCSN 
time. 

Flight Segmen ts over 1000 Miles : 
A follow-up message must be 
filed no later than 20 minutes 
after each ETD or DCSN time. 

3 • Responsibility 

The Quality Control Analyst will 
examine current records and 
report station performance. 

4 . Sample Size 

Determine the sample size by 
using the procedure in Section 
50-1 and the 95% performance 
curve. For total possible 
monthly occurrences, forecast 
from historical station data 
the expected number of depart - 
ures during the month that 
will be delayed 15 minutes or 
more . 

Note : One observation is 

equivalent to one flight ^ 

(Delayed Departure) and 

Includes the verification 

that ALL Delayed Messages 

and Follow-Up Messages for 

the flight are accurate and 

filed within the prescribed 

time limits. 



857 



^ 



,;3*<, rn:r:'*OLLE; 



Fi.iGKT im-o;<:L'M'ic:; quality "rjisuRcirja 



Method 

. Revlev; station records and fore- 
cast for the morth the number of 
anticipated Departures delayed 
15 minutes or more. 



, Use the 95% perforraance curve 
(Section 50-1) to determine the 
total number of observations to 
schedule for the month. 

, Guidelines for scheduling 
observations: 

(1) Deterralne from station records 
all the flights (departures) 
for the month or period that 
were delayed 15 minutes or 
more. 

(2) Select, at random, those flights 
to be sampled and list them on 
the worksheet. Appendix C. 
Complete the following colur.ns: 
Flight • Number , Departure Date, 
Scheduled Departure Time, 
Actual Departure Time, and 
Flight Segment Code. 



(3) Review each Delay Message to 
determine if it included the 
ETD or DCSN time and contained 
a reason for the delay. In- 
dicate on the worksheet. Appen- 
dix C, if the content of the 
Delay Message was within 
Standard. 

(4) All required messages for a 
given flight must be filed 
within the prescribed time 
limits and the contents must 
be accurate or the observed 
flight will be considered 
unacceptable. 

(5) The performance standard for 
this measure is 95%; however, 
report standard if only one 
substandard flight is detected 
during the month. Report the 
actual performance when two 

or more substandard flights 
are detected. 



d. Guidelines for taking the 'measure 
and scoring the observation: 

(1) Collect all the Delay Messages 
for the flights being sampled 
from the FIC files. 



(2) Record the Delay Massage 
actual filing times on the 
worksheet. Appendix C and 
determine if the actual tiling 
times were within the prescrib- 
ed time limit standards. Circle 
the filing time column for 
those messages that exceed the 
filing time limit. 



858 



SENATE QUESTIONNAIRE 



98. What is the procedure for notifying delayed passengers of the 
availability of amenities? 



Passengers are offered amenities as described in the attached tariff and 
company procedures at time of servicing by passenger service personnel. 



Attachments 



859 

C.T.C.rA) MO. 53 C. A.B. NO. 142 



A:.-ls7.e Tariff i'vMht: •ri. inc.. Agent 

LOCAL ANO JO-NT l'^:-:-!■MC■EK KULES TARIFF NO. PR-6 



SECTIO N VII— RE FUNDS AN D HEROOTING 



ILURF TO UPrnATE ON SCHEUULE OR FAILURE TO CARRY *(:,-ot applicable to S la nMby Fares.) (Cont inued ) 

(G) 'iMENITIErysERVICES FOR DELA^T^D PASSENGERS (Continued) 

(3) Via AL (Continued) 

(d) Altern at e Transportation: (Continued) 

(2) Pusscj.gers subject to schedule irregularity at boardins station (AL ori^'ina- 
tion, stopover or connecting point) will be rurnished, in lieu ol involuntar 
refund pursuant to Rule 390, charter transportation (via motorcoach, limousi 
taxi or air taxi) or car rental, whichever mode is available and least expen 
slve; provided that: 

(i) no scheduled surface transportation is available" for passenger's use a 
passenger's sole expense; and 

tary refund pursuant to Rule 390; and 



t to downtoxvn locations i 

arv Circumstances: Carrier will provide such other or additional 
Bs' which, in Carrier's judgment, are required by special ctrcnmsta 
passengers such as unaccompanied children, invalids, or 



oi incapacitated passengers, in order to maintain the 
such passengo 



lie the following expenses for all Its passengers, regardless of c 
red as a result ol cancellation, delay or Interruption of carrier 
passenger holds confirmed reservations. Carrier will advise al 
available amenities when a delay is expected to exceed four hour 

.11 furnish a hotel room if the delay is expected to ex 



EXCEPTION: Where the delay occurs at the point of origin i 

at a stopover point on the passenger's air tiip, carrier will not furnish 
hotel accomodations to any such passenger other tlian military or civilian 
personnel ol the military agencies traveling on tickets issued against 
Government Transportation requests. 

(b) Meals. Passengers who would otherwise have received complimentary meal service on 
a flig ht which is delayed or cancelled, will be furnished one meal if the delay 
will extend beyond the meal hours. No alcoholic beverages will be furnished to any 

EXCEPT10N(Applicable to CO only): A maximum of 2 cocktails per adult passenEcr will 
be authorized. 

(c) (ONot applicable via CO) Ground Tr ansport ation will be provided to passengers. 

■ (d) (Applicable via CO only) (^:oumJ. Irajisaoiujiliojl will bo provided from the airport 

to the downtown area or to and from local hot'.l whichever is applicable. 
t(e) C omiiunications . One long distance telephont call or one 15-word straight telegram 
will be allowed to any point in the United States. 
(5) Via BN 

BN will assume the following expenses for passengers incurred as a result of cancellatioi 
delay or interruption of a BN flight on which the passenger holds confirmed reservation. 
BN will advise all passenger of the available amenities when the delay is expected to 
exceed four hours, 

EXCEPTION: Interrupted trip expenses will not be provided for passengers traveling on 
discounted fares where the discount is greater than 50%. 

(a) Ho tel R oom. Carrier will furnish a hotel room if the delay is expected to exceed 
four hours during the period 10:00 P.M. and C;00 A.M.; except that, when the delay 
occurs at the point of origin or at a stopover point on the passenger's air trip, 
carrier will not furnish hotel accommodations to any such passenger other than 
military or civilian personnel of the military, agencies traveling on tickets 
issued against Government Travel Requests. 

(b) Me als. Passengers wlia would otherwise have received conplinentary meal service 
delay will extend beyond the meal hour. 



C0RREC1 ION NO. 



67-378 O - 76 -vol.2 - 16 



860 



Mrx PASSENGER SERVICE I 

1^**.''^ Reservation!;, Tick.- 
^iir'ri. ft TeiTninal Service 



EXPENSES A7 



SecLiun 10-12 

F. I 

Feb 28-73 



■A PAi.sEr;r.ERS 



A. Policy - Involuntary Conditions 

B. Basic Rules - Involuntary Conditions 

C. Policy - International Layover 
Expenses 

D. Basic Rules - International l.^yovcL- 
Expenses 

E. Standard Expenses 

F. Forwarding Cancelled and Overflown 
Passengers Via Surface Transporta- 
tion or Air Taxi 

G. Forms Used for Authorizing Payment 

A. POLICY - INVOLUNTARY CONDITIONS 

American Airlines will assume certain 
expenses that are incurred through in- 
terruption or delay of a passenger's 
flight for reasons beyond his control. 
These same expenses will be assumed for 
child half-fare and employee half-fare. 

The expenses covered in this section 
are not authorized for individuals trav- 
eling on Positive Space or Space Avail- 
able. (Agency discount 75 passengers 
will be provided the same expenses as 
full fare revenue passengers.) 

Since other carriers' policies vary, 
avoid any implications as to the extent 
of expenses allowed by other carriers 
when conversing with passengers. 

B. BASIC RULES 

Appropriate expenses explained in para- 
graph E., will be allowed for inconven- 
ienced passengers with the exception of 
mlsconnects from another carrier. Under 
Industry Agreement, the receiving car- 
rier is prohibited from assuming any ex- 
pense for a misconnect passenger other 
than, if necessary, rerouting at a high- 
er fare. Rules governing the rerouting 
of passengers are found in the Passenger 
Rules Tariff. 

In addition to the rules outlined in 
the Tariff, oversold passengers r.-ay be 
rerouted at a higher fare over jnt>tber 
carrier by AA at no additional expense 
to the passenger. 



Normjliy, no expenses are allowed for 
a rerioved for cause passenger. However, 
circMinstsnces may dictate to the con- 
trary. If so, limitations will be de- 
termined by local management. 

C. POLICY - INTERNATIONAL LAYOVER 
FXPEJJSES 

I'/hen a passenger must layover due to 
lack of through or connecting service 
while enroute over certain international 
segments, American Airlines may absorb 
hotel room, meals and ground transporta- 
tion expenses. These expenses may be 
paid, under the following conditions: 

1. Passenger held confirmed continua- 
tion space and was ticketed prior 
to arrival at connecting city. 



2. Layover is due to schedule require- 
ments and not a voluntary stopover 
at the passenger's request. 

3. Expenses paid for period not to 
exceed 24 hours. 

Hotel or meal expenses should not be 
provided to passengers on short lay- 



BASIC RULES 
EXPENSES 



INTERNATIONAL LAYOVER 



Layover expenses as authorized above 
are allowed over international routes. 
Exceptions are shown in the table in 
Appendix I. 

In general, where complimentary expenses 
are paid at connecting points between 
two carriers, expenses will be assumed 
by the delivering carrier. When this 
division is inequitable due to the de- 
livering carrier providing only a small 
portion of the total travel or for 
other reasons, other arrangements may 
be worked out between the S?les Offices 
of the participating carriers at the 
connecting city. 



861 



Section 10-12 

P. 2 

Dec 28-73 



:cLons, 'lit 
ir,!!! Servit 



;:iAL 
Office 



The city originating the booking; will be 
responsible for msliir.j; the hciLcl .iccom- 
modations and for issuing the PaGsenger 
Service Authorization (Form T37) and 
Ground Transportation Order (Form E255) 
as appropriate. 

On the back of the T37, in addition to 
the normal entries, indicate the in- 
bound flight/date, outbound flight/date 
and ticket number(s). Invoices for 
international passenger enrouto expenses 
are to be charged to 901/6271-12/841. 
On the Foi-m E255, check "Passenger- 
Involuntary" and indicate "International 
or Layover." 

E. STANDARD EXPENSES 

The Rules Tariff specifies that AA will 
assume certain expenses for all passen- 
gers regardless of class of service, 
incurred as a result of cancellation, 
delay or interruption of an AA flight 
on which a passenger holds confirmed 
reservations. (Passengers paying stand- 
by fares who have been cleared for board- 
ing on the flight, on which the scheduled 
irregularity occurs, are eligible for 
applicable amenities. Passengers at the 
airport will be informed of the available 
amenities when a delay is expected to ex- 
ceed four hours. The specifications out- 
lined in the Tariff represent the max-- 
imum amenities AA will furnish. 

1. Hotel Room . Hotel expenses are auth- 
orized when the delay occurs between 
2200 and 0600 and is expected to ex- 
ceed four hours. (i.e., delay occurs 
at 1900 and is expected to be 4 1/2 
hours, thus, only 11/2 hours is ex- 
pected to occur between 2200 and 0600, 
therefore, hotel expenses are not re- 
quired to be borne by American Airline 

Where the delay occurs at the point 
of origin or at a stopover point on 
the passenger's air trip, AA will not 
furnish hotel accommodations to pas- 
sengers unless they arfe military or 
civilian personnel of the military 



agencies travelling on tic'r-.'cs is- 
sued ajjainst Government Tr.ir.sportaCion 
tion Requests. (To distinguish 
these employees from other govern- 
ment employees, examine CTR letters. 
GTR's which commence with a letter 
from M to Z i.e. - P 104 196 724, 
arc eligible for overnight accommo- 
dations . 

Meals . Passengers who would other- 
wise have received complimentary 
meal service on a flight which is 
delayed or cancelled will be furn- 
ished one comparable meal if the 
delay will extend beyond the meal 
hours (0700 - 0900, Breakfast; 
1200 - 1400, Lunch; 1800 - 2000, 
Dinner). 

Exception: Military and civilian 
personnel of military agencies (see 
#1) will be provided meals during 
meal hours regardless of scheduled 
meal service. 

Alcoholic beverages will not be fur- 
nished at AA expense unless the ser- 
vice had been scheduled and is served 
on board the aircraft. (AA will not 
assume any expense for cocktail ser- 
vice provided at local airport res- 
taurants, etc.) 

The decision to provide scheduled 
meal/cocktail service on board will 
be made by the first Flight Atten- 
dant after conferring with the Captair 
and the Passenger Service Manager. 

Drink Chits. On occasion it would be 
advantageous from a passenger service 
point of view to be able to offer com- 
plimentary inflight liquor to passen- 
gers. This procedure will be at the 
discretion of each airport manager, 
and the costs will be charged to his 
station budget for Branch 841. Line 
62, Code 63-07, Interrupted Trip 
Expenses - other. 



862 






PASSENGER SERVICE NANUA), 
Koservations , Ticket Office 
(% Terminal Service 



Section 10-12 
P. 3 

Dec 28-73 



EXPENSES ALLOWED AA PASSENGERS 



lATA Resolution (060) governing "Con- 
ditions of Service" prohibits such 
giveaways to economy class passengers 
(any fare other than First Class), on 
our scheduled international flights , 
except U.S. - Canada transborder 
flights which are not subject to LATA 
Rules. Drink chits may not be given 
to travel agents as such an offering 
would violate both ATC and LATA 
Agency Resolutions. 

Managers of Passenger Services/Air- 
port Passenger Service/Airport 
Services are authorized to request 
liquor chits through the local city 
Controller's office by preparing a 
C-64, Ticket Stock Requisition. 
The cost is $1.50 per chit and the 
total amount will be charged to 
Branch 841, Line 62-63-07. All C64's 
must reflect Station/Branch. Upon 
receipt of the chits, which are 
serialized, the Manager should set 
up appropriate security and recording 
procedures ^ 

Ground Transportation . Ground trans- 
portation will be furnished between 
airport and city, railroad station, or 
if adequate meals are not available 
at the airport, a restaurant off the 
airport. Round-trip ground transpor- 
tation will be furnished if air trans- 
portation is to be used within 24 
hours . 



Reference material, listing the 
items authorized, amounts, condi- 
tions and codes indicating reason 
for expenses, should be posted at 
each ticketing and ticket lift 
position and the Passenger Service 
Lounge . 

Military and civilian personnel of 
the military agencies traveling on 
tickets issued against Government 
Transportation Requests will be 
allowed food and lodging until such 
time as alternate transportation 
is provided. 

When military and civilian personnel 
of the military agencies are in- 
voluntarily forwarded by surface 
carrier. Form T-33, Exchange Order 
for Surface Transportation is pro- 
vided. (See PSM - Ticketing Edi- 
tion, 60-34, for value applied to 
T-33). 

Furnish Pullman accommodations only 
when involuntarily forwarded mili- 
tary and civilian personnel of the 
military agencies will travel via 
alternate transportation between 
the hours of 12 midnight and 6:00 
a.m., local time. 

Provide lower berth, if available; 

if not, provide next higher type 
of accommodation that is available. 



5. Communications . One long distance 
telephone call or one ! 5-word straight 
telegram will be allowed to any point 
in the United States. 

6. Meal Price Guidelines . The follow- 
ing price guidelines are the maximum 
allowable meal expenses: 



NOTE : Do not provide compartments 
or drawing rooms for single oc- 
cupancy. This would require one 
and a fraction first class rail 
tickets. 



Breakfast 


$1 


.75 


Lunch 


2 


.50 


Dinner 


5 


.00 


Snack 


1, 


.00 



863 



Section 10-12 

P. 4 

Nov 2-73 



Mr 



PAssr:Nc:--:K service ;;akl!AL ■^:^:^fi\ 

Reserv;'t.LOns, Ticket Office ' ' 
6c Termiii.Tl Service 



When military and civilian pe'-sonnel 
of the military agencies are rerouted 
via a surface carrier and will travel 
during meal periods, provision for each 
meal they will require anroute will be 
made by adding together the applicable 
sums for breakfast, lunch and/or dinner 
and issuing a refund check in the amount 
so computed. Enter "Meals for Military 
Passenger" in Reason. 

Local management should instruct ap- 
propriate restaurants that AA will honor 
billings, to the limit specified on the 
meal authorization. 

V. FORWARDING INCONVENIENCED PASSEN- 
GERS VIA SURFACE TRANSPORTATION 
OR AIR TAXI 



G. FORMS USED FOR AUTHORIZING PAYMENT. 

Three forms are used to authorize pay- 
ment by AA of hotel, meal and ground 
transportation expenses: 

T37 - Passenger Service Authorization 
E255 - Ground Transportation Order 

Make no alterations on these forms. If 
an error is made, void form and prepare 
a new one . 

T37 - Passenger Service Authorization 

a. Used to authorize hotel and meal 

expense for an individual or group. 

The form is to be completed as follows: 



Normally, inconvenienced passengers are 
forwarded via air, rail or scheduled 
bus services; tickets are reissued for 
alternate air services or refunds made 
when forwarding via scheduled rail or 
bus . 

On occasion, better service is provided 
by forwarding such passengers to destina- 
tion or point of planned resumption of 
air service via chartered bus, limousine 
or air taxi service (Air Taxi Operator 
must be a member of the National Air, 
Taxi Conference - see OAG, or list in 
AA Traffic Agreements Directory) at 
AA ' s expense. Prepare Form OG522 , 
Report of Irregularity, giving com- 
plete details as to flight, number of 
passengers forwarded, names, and cost 
of charter service. 

Forward a copy of the OG522 immediately 
to Manager Passenger Refunds, LSC, for 
use in adjusting subsequent refunds to 
passengers. If passengers are in pos- 
session of flight coupons to point to 
which they are being forwarded, lift 
coupons and attach to copy of the OG522 
sent to LSC. i 



1. Use a ballpoint pen for all entries 
on the form. 

2. Enter name of restaurant and/or 
hotel. 

3. Maximum expenses allowed are to be 
indicated on the form in each box 
as appropriate. 

4. Enter the number of passengers 
covered by the form. 

5. Enter the amount quoted by the hotel 
for room charges. Room charges 
should be reasonable in amount. 
When hotel service is not authorized 
cross (K) out the designated box. 

6. Enter maximum meal. allowance per 
person in "Meal Max. Allowed" box. 

7. Enter total number of meals author- 
ized in designated box. 

8. All entries are to be inserted as 
written words, showing the cents as 
a fraction of 100; e.g. 

No. of Passengers - Two 

Max. Meal Allowance - Three 50/100 



864 



^A 



PASSENGER SERVICE MANUAL 
Reservations, Ticket Of fie 
& Terminal Service 



Section iO-l2 

P. 3 

Nov 2-/3 



EXPENSES ALLOWED AA PASSENGERS 



9. The space for "Guest's Signature" 
Vlll be signed by: 

■. The Individual 

b. The head of a party traveling 
together. 

c. The Passenger Service Manager, 
when Issued for a number of in- 
dividual passengers. Advise 
passengers to identify them- 
selves as guests of AA when 
signing hotel register. 

Request all passengers to sign 
the copy of the hotel bill retained 
by the hotel and the restaurant 
bill. Exception : When the form is 
issued for meal expenses for a number 
of Individual passengers, the Passenger 
Service Manager will sign the res- 
taurant bill. 

10. Validate In the space provided. 



E255 - Ground Transportation Order - 

1. Used to provide ground trans- 
portation for an individual 
passenger or group of passengers. 

2. Used to provide ground trans- 
portation for flight crews. 

3. Ground transportation orders are 
not to be used by AA personnel 
other than flight crews. For 
security reasons, E255's should 
be treated as ticket stock. 

Complete as follows: 

1. "To" - enter name of transportation 
company (rubber stamp may be used 
as name need not appear on copies). 

2. "The Sum of $" - enter total amount. 

3. "No. Persons" - enter number' of ' '_ 
passengers. 



On back of form, enter appropriate 
flight number, class of service, 
and date. Enter names of person(s)- 
covered by the form in space(s) pro- 
vided. Names are not required when 
only meal service is provided for a 
number of individual passengers. 
After "REASON" enter one of the fol- 
lowing codes as appropriate: 

Flight Cancelled - C " 
Flight Delayed - D 
Missed Connection - M 
Oversale - 
Change of Equipment - E 
Meal Service Cancelled - X 



enter points between which service 
Is to be provided. 



5.- "Flight" - enter appropriate flight 
number, class of service and date. 

6. Check "Passenger - Involuntary" or 
"Voluntary" as appropriate. 

7. When issued by a Ticket Salesman, 
validate. When issued by person 

. other than a Ticket Salesman, sign 
and enter location code designator 
in lieu of Salesman's validation. 



865 



Section 10-12 PASSENGER SKC/ICE MANUAL 

P. 6 K^'.-arvatloiiii, Ticket Oiila 

Nov 2-73 & Terminal Service 



When issued for an individual or a 
party, give original and duplicate of 
the form to passenger or head of party 
and ask him to give them to driver. 
Vfhen completed for a group of unrelated 
passengers, identify group to driver 
and hand him the forms. Route the 
third copy to the City Controller. 

If AA does not have a charge account, 
reimburse the driver in cash and have 
him sign form on reverse side. Attach 
form to Petty Cash Report. 



iA 



END 
Issued by Ticketing & Terminal Services 



866 



/i^-J^ PASSI-NG 
::C.4x Resevva 
■''^ & Terml 



NGER SERVICE MANUAL 

tlons, Ticket Office 
nlnal Service 



Section 10-12 

Appendix I 

P.l 

Aug 15-71 



EXCEPTIONS TO LAYOVER EXPENSES 
ALLOWED INTERNATIONAL PASSENGERS 



Column 1 
U. S. (inc.HNL), /CANADA/MEXICO 



Column II 
AUSTRALIA/FIJI/N.ZEALAND/AMER. SAMOA - 



For travel solely within this 
area, no carrier may absorb 
layover expenses at connecting 
points within the area. 



For travel solely within this area, 
no carrier may absorb expenses in the 
following countries for the type of 
travel indicated: 



Australia: For passengers originating, 
terminating or turning 
around In Australia. 

Fiji: For passengers originating, 
terminating, or turning 
around in Fiji. 

New Zealand: For passengers originating, 
terminating or turning 
around in New Zealand. 



For travel between areas in 
Column I and Column II, no 
carrier may absorb layover 
expenses at connecting points 
In Canada or U. S. (including 
Hawaii) for travel having its 
origin, destination, or turn- 
around point In the U. S. or 
Canada. 



867 



■(iK 



PASSENGER SERVICE MAKUAL 
Keser/atior.s, Ticket Office 
& T«Tiain«l Service* 



Section 10-n 



Apr 15-69 



EXPENSES ALLOWED WHEN A PASSENGER FAILS 
TO MEET IMMIGRATION REQUIREMENTS 



A. Policy 

B. Conditions Governing Payment of Ex- 
penses 

C. Report 

A . POLICY 

Passengers who lack proper documents or 
fail to comply with other entry re- 
quirements made by various countries may 
be detained en route to, or refused entry 
into country of destination. When such 
a situation occurs, many resultant costs 
such as government fines, government de- 
tention expenses, "free" transportation, h 
. hotel expenses and other miscellaneous 
charges may be incurred. Legally, the 
passenger is responsible for complying 
with documentation requirements to enter 
a country. However, AA feels a certain 
moral obligation for passengers travel- 
ing over its routes to another country. 
Therefore, under certain circumstances, 
AA will assume certain expenses that 
arise as a result of a passenger's 
failure to meet all entry requirements. 

B. CONDITIONS GOVERNING PAYMENT 
OF EXPENSES 

1. When AA refuses transportation or 

removes a passenger prior to depart- 
ura from a gateway city because his 
documents are not in order, the 
following will apply: 

a. If AA or one of its travel agen- 
cies originated the booking, and 

(I) Passenger was advised of the re- 
quirements he would have to meet, 
AA will not absorb any expenses 
except those that it is legally 
required to assume. Passenger 
will be charged the full round- 
trip fare if he electa to return 
Co his originating point. 



(2) Passenger was not advised of re- 
quirements he would have to meet, 
AA will assume such expenses as 
are incurred while passenger is 
obtaining necessary documents. 

If passenger is unable to obtain 
necessary documents, these e>:- 
penses may be Increased to in- 
clude returning passenger to his 
originating point and refund of 
his total fare paid by the 
passenger. 

NOTE: To determine what information 
the passenger was given, gateway 
city will check "Remarks" informa- 
tion of Passenger Name Record in 
SABRE. 

>. If passenger purchased his ticket 
from another airline or a travel 
agency representing another airline 
AA will absorb no expenses, but will 
refer passenger to that other air- 
line or travel agency for settle- 
ment of any claim he might wish to 
■Bake. 

When a passenger is refused entry in- 
to a country of AA destination for 
reasons other than documentary, and 
AA could not have determined such 
reasons : 

I. If the Government Involved does not 
direct us to bear the expenses, pas- 
senger will be charged the round- . 
trip rate between the point to which 
he is to be returned and the city 
at which he is refused. This will 
be accomplished by re-issulng lUs 
ticket and making any additional 
collection or refund that Isj due. 



868 



Apr 15-69 



PA3sr:.-GEa bekvic2 manual 

Rs-jcivstlons, Ticket Office 
& Tetainel S«rvic*i 



NOTE; If ps.j u::ar is urisble to 
p^y his 6^p -,,«as, AA will pro- 
vide trariar.orr.ation to the city 
to which he le to be returned. 

If tha Govern-mt involved specif- 
ically direct* that the expense be 
boma by the r.arrler, wo will re- 
fund any remaining portion of the 
passenger's ticket and provide him 
with transportation to the city to 
which the Government directs us to 
return him. 

When ticketlns passengers refused 
admission by yr:nilgr«tiOT\ Authori- 
ties, see index PSM - Ticketing Edi- 
tion "Ticketing - Passenger re- 
fused admittance by Immigration / 
Authorities." ' 




C- REPORT 



In all ca^es when pdMengers are re- 
fused admittance by Tmmigratlon author- 
ities, local management will make com- 
plete report in accordance with PSM 
Section "Reporting of International 
Passenger and Baggage Irregularities." 



13 December 1974 



869 



Question 99 - Sen. Kennedy Administrative 
Practices and Procedures - CAB 



American implemented an Automated Ticketing and Fare Quotation System 
in 1973, that is currently capable of faring up to 80% of the itiner- 
aries presented to the computer. Besides providing faster service, 
this system virtually eliminates overcharges to the customer. The 
method by which this is accomplished is listed below: 

1. Computation of complex tariff applications is perfonried consistently, 
efficiently, and with the extreme arithmetic accuracy' available 
through a computer. 

2. The system reflects the most current tariff information as: 

a. The prim.ary source of fares information in a computer tape 
issued by Airline Tariff Publishers (ATP) . 

b. The ATP tape is created from the same master records used to 
create the tariff pages, and, 

c. The tariff data base is updated on a v/eekly basis. American 
maintains only one Master Tariff Data Base, and is used for 
Ticket Pricing, Fare Quotes, and Itinerary Pricing. This 
assures accurate and consistent pricing. 

3. During the past tv/o years, 26,000 local/AA joint fares, and 33,000 
published joint fares have been added to the data base. 

4. Computerized maintenance of the data base allows for singular correct 
"interpretation and application of tariff rules which otherwise could 
be interpreted incorrectly. 

5. Pricing is based on lov/est possible fare applicable to the itinerary. 

6. Computer generated tickets are more legible than hand prepared tickets, 
thus reducing the likelihood of error on collections, reissuances, and 
refunds. 

7. When the computer is unable to price an itinerary, the agent is given 
a response as to why the ticket is not priceable. The ticket is then 
sent to a tariff rate desk where a tariff agent will manually price 
the itinerary with the lowest possible fare and enter that fare in 
the "Passenger Name Record" within the computer. This fare will then 
be printed on the ticker. 



870 



13 December 1974 



8. By reducing the number of manually priced tickets, AA is able to 
increase the monitoring of manually priced tickets, and to take 
cor.: jctive action when necessary. 

9. As a result of computerized ticketing, we are able to decrease the 
amount of tickets at the gate, where there is not readily available 
all of the references necessary to determine the lowest possible fare. 



871 



BRANIFF RESPONSES TO AIRLINE QUESTIONNAIRE 



Introductory Note 



We have responded to your questionnaire, within the time allotted, 
with information which was readily available. In some instances 
we have referred to attached documents with appropriate reference, 

For explanations or more detailed information please contact :- 



Tom Robertson, Vice President 
Phone 214, 358-8103 



872 



Question 1 

The continual increase in costs during the past five years has 
not permitted carriers to reduce normal fares. The C. A. B, in its 
decision in 1972 on Phase 7 (Fare Level) of the Domestic Passenger 
Fare Investigation determined that fares were already below cost 
and should be approximately 9% over those in effect in October of 
1970. Additional cost increases, especially in fuel costs, have de- 
manded further increases since that decision. 

C. A. B. procedures neither inhibit nor encoiirage the carriers 
to experiment with lower fares. With the volume of promotional fares 
that have gone into effect in recent years it is, however, obvious that 
the Board is not inhibiting carriers from experimenting with lower 
fares. 



873 



Question 2 

Braniff does not support such a zone of reasonableness, nor 
does it believe that such a zone would necessarily lead to lower fares. 
Not only would the "zone of reasonableness" not lead to lower fares, 
per se, but it would result in serious discrimination between markets. 
To offset a fare at the low end of reasonableness scale a carrier 
might raise the fare between another pair of points to the high side 
of the scale. This would result in passengers in one market sub- 
sidizing the passengers in another market. 



874 



Question 3 

Braniff occasionally samples its domestic passengers by means of 
an on-board flight questionnaire and results indicate, on the 
average, that approximately 63% of its passengers are flying for 
business purposes and the balance of 27% for pleasure, personal 
and other reasons. 

Braniff has no east-west transcontinental flights. 

We do not have requested figures for Braniff international routes 



875 



Question 4 



There is no set formula for determining the proper levels 
of fares between a particular city pair. The normal all-year fares 
are established in accordance with the formula set by the Board in 
the Domestic Passenger Fare Investigation. The decision to file 
for a general fare change is made by the top management of the 
company, not by any special isolated study, but through the day-by- 
day appraisal of costs versus revenues. Promotional fares are 
developed by the Market Planning Department in conjunction with 
advice from the Sales Department and others. Here again, no set 
formula is used. 

We have made no studies regarding the possible effect of 
increased fare competition on Braniff's fares, costs and profits. 



67-378 O - 76 - voL 2 - 17 



876 



Question 5 

During the past ten years Braniff has filed and implemented 
the following general fare increases: 

A. Continental U.S. A. 

2/20/69 - Across the board amounts varying with 

distance 
10/1/69 - Implemented formula of terminal charge 

plus fare per mile 
1/11/71 - Increase in certain traffic conjested markets 
5/7/71 - 6% 
9/5/72 - 2.73% 
12/1/73 - 5% 
4/16/74 - 6% 
11/15/74- 4% 

B. Mainland - Hawaii 

9/1/73 - Increase of varying dollar amounts depending 

on type of fare 
6/1/74 - 6% 

C. International 

Yearly filings to reflect fares developed through negotiations 
at lATA Fares Conference 

There has never been any pressure from the Board nor any member 
of the Board's staff to file a fare increase. 

No pressure can be received from another airline to match a fare 
increase, since to do so would be a violation of the anti-trust laws of our 
country. 



877 



Question 6 

Braniff does not maintain the data requested here by individual 
route nor have we maintained such data separately for our 
nonscheduled operations until this year. We enclose a copy of 
our P & L on charter operations. The attached schedule responds 
to question with respect to domestic and international operations, 

Braniff has no routes subject to capacity agreements, 

[The subcommittee has agreed to Braniff 's request for 
confidentiality regarding the information on the income 
received from charter operations.] 



878 



Question 6 



00 r^ OS in in 00 
o o 00 r-i <f <r 
ro r^ m in ON 



O ON in ^ o 00 

<r <r cNi o r^ m 

m r-^ ON ^ cNi 

r-~ ON cvi ,-1 O- 



(N ON ON -J- CN 

m o IN <r ON 



ro fO ^ v_^ . 



ON 00 <f vt r^ ON 

ON vO vD O ON v:}- 

<r vo (N m ON 


CO in O (SI in 
r-i NO oo cN in 
r~- 00 <r ro ■-' 


oj r~- O (N NO 


00 vt -1 en o 
ON 00 ^ 



o <)■ in CM NO o 

00 in ON nd vt in 

CM in 00 On (SI 



c o 

W O JJ 



H 2 J 4J 



879 



Question 6 



^ O O u-l vD O- 
ON ro ON r^ m in 
r-i rH r~. vt CM 



(N O 



vD u-1 i-l OO O CT^ 

vo --I en oj in <r 
ca n 00 v^ r-- 



fO 00 



cs in vo -J- vo 

O OO ON i-l 



\o n o .-I 00 o- 
<^ r^ ^ CO in <r 

CO s£) vO O r^ 



880 

Question 7 

Attached are our actual statements of changes in financial 
position of Braniff for the past five years, together with our 
cash projection through 1976, The load factor implied in the 
projection is that which would allow us to break-even, currently 
about 44% on operating expenses. The effect on the figures of 
increasing the actual load factor to the levels suggested cannot 
be determined unless we know how it would be achieved. Braniff 's 
plan, which balances capacity to demand and encourages growth by 
increasing service to the traveling public, would improve cash 
flow as the load factor increased. We doubt that system load 
factors in excess of 60%, on Braniff's routes, can be achieved 
without inconvenience to the travelers and reduction of service 
to smaller communities. 

[The subcommittee has agreed to Braniff's request for 
confidentiality regarding the details of its cash flow. J 



881 



Question 8 

This schedule shows the number of aircraft purchased and leased 
over the last five years and cost of aircraft purchased. All new 
aircraft purchased are being depreciated over lA years to a residual 
value of 15%. Used aircraft purchased are depreciated under various 
policies based on estimated useful life and residual value. Aircraft 
purchased over the last five years were financed by internally generated 
funds, senior credit notes and subordinated promissory notes. 

Senior Credit Notes - $19,299,000 due quarterly 
12/31/73 through 6/30/81 
12/31/73 $340,200 
3/31/74 491,300 
6/30/74 609,200 
9/30/74 689,400 
Subordinated Promissory Notes - $19,298,000 due 
quarterly 12/31/73 through 6/30/81 

12/31/73 $340,200 
3/31/74 491,300 
6/30/74 609,200 
9/30/74 689,400 



Aircraft Leased 



9 Mos. 
1974 



682 



BRANIFF AIRWAYS, INCORPORATED 



B-727-100 - - 3 1 

B-727-200 - _ - 8 

DC-8-51 ^ - :i - 

Total - - - 9 

Total cost of aircraft and engines purchased from 1/1/69 to 9/30/74 - $211,105,168 



B-727-100 


11 


B-727-200 




B-720 




B-707-100 




B-707-320 




DC-8-62 




B-747 




Total 


Is 


Aircraft Purchased 





15 


5 


4 


- 


19 


5 



883 



Question ^ 

Braniff has contracts for the purchase of 7 Boeing B-727 200 for 

delivery in 1975. Generally these contracts call for purchase 

deposits of approximately 35% of the total price. The purchase 

deposit payments are spread over a 64 month period from the 

Initial payment with the final payment made from 6 to 8 months 
prior to delivery. 



Delivery Schedule 1975 

February 1 

March 1 

April 1 

May 2 

December 2 



Braniff has not finalized future equipment plans beyond 1975. 



884 



ison of Executive Sala 

and 

Productivity Measures 

(BRANIFF AIRWAYS) 



Scheduled Percent Percent Top 10 Percent Percent of 

Operating Change Scheduled Change Executives Change Total Wages 

Revenues Over RPM Over Salaries Over and 

(000) 1969 (Millions) 1969 (OOP) 1969 Salaries 



1969 


$273,517 




3,954 




$700 




.652% 


1970 


290,999 


6 


4,151 


5 


782 


12 


.712 


1971 


306,396 


12 


4,294 


9 


783 


12 


.730 


1972 


347,798 


27 


4,862 


23 


816 


17 


.667 


1973 


407,203 


49 


5,489 


39 


845 


21 


.605 



ll Top 10 Executive Salarit 
SOURCE: Company Records 



Question 10 



885 



Salaries of Top 10 Executives 
Braniff Airways, Incorporated 



1. Harding L. Lawrence, President 

2. C. Edward Acker, Executive Vice President 
and General Manager 

3. John J. Casey, Executive Vice President 

4. R.V. Carleton, Executive Vice President 

5. John W. Leer, Senior Vice President 

6. Reginald K. Brack, Senior Vice President 

7. Terrell Shrader, Vice President 

8. E.R. Bossange, Vice President 

9. Frank Hobbs , Vice President 
10. Dan Hughes, Vice President 



Salary Bonus Deferred 



66,667 




93,750 


$12,500 


78,750 


2,000 


61,500 


2,000 


55,125 


3,000 


51,500 


2,000 


A9,750 


2,000 


49,375 


2,000 


46,772 


3,000 


46,500 


1,000 



886 



Salaries of Top 10 Executives 
Braniff Airways, Incorporated 



1. Harding L. Lawrence, Chairman of the Board, 
Chief Executive Officer 

2. C. Edward Acker, President 

3. John J. Casey, Executive Vice President 

4. John W. Leer, Senior Vice President 

5. W.W. Garbett, Staff Vice President 

6. Reginald K. Brack, Senior Vice President 

7. Terrell S. Shrader, Vice President 

8. E.R. Bossange, Vice President 

9. R.V. Carleton, Executive Vice President 
10. Herman Rumsey, Vice President 



1225,000 




100,000 


$6,250 


83,750 


1,000 


59,000 




56,280 




53,500 




52,375 




52,250 




51,501 




48,500 





887 



Salaries of Top 10 Executives 
Braniff Airways, Incorporated 



Question 10 



Salary 



1. Harding L. Lawrence, Chairman of the Board, $225,000 
Chief Executive Officer 

2. C, Edward Acker, President and Chief Operating 

Officer 100,000 $6,250 

3. John J. Casey, Executive Vice-President 85,000 1,000 

4. Russ Thayer, Senior Vice President 60,000 

5. John W. Leer, Senior Vice President 60,000 

6. Reginald K. Brack, Senior Vice President 5A,000 

7. E.R. Bossange, Vice President 53,000 

8. Terrell S.Shrader, Vice President 53,000 

9. . Herman Rumsey, Vice President 50,000 
10. Horace Bolding, Vice President 43,250 



888 



Question 10 



Salaries of Top 10 Executives 
Braniff Airways, Incorporated 



Salary 



1. Harding L. Lawrence, Chairman of the Board, 
Chief Executive Officer 

2. C. Edward Acker, President and Chief 
Operating Officer 

3. John J. Casey, Executive Vice President 
A. Russell Thayer, Senior Vice President 

5. John W. Leer, Senior Vice President 

6. E.R. Bossange, Vice President 

7. Terrell S. Shrader, Vice President 

8. Reginald K. Brack, Senior Vice President 

9. Herman Rumsey, Vice President 
10. Walter G. Conrad, Vice President 



$220, 


000 


100, 


,000 


85, 


,000 


78, 


,750 


60 


,000. 


55 


,775 


55 


,775 


55 


,500 


53 


,000 


52 


,625 



889 



Salaries of Top 10 Executives 
Sraniff Airways •Incorporated 



Question 10 



Salary Bonus 

1. Harding L. Lawrence, Chairman of the Board, 

Chief Executive Officer S 225,600 5 95,000 

2. C. Edward Acker, President, Chief Operating 

Officer and Director 100,000 86,851 

3. John J. Casey, Executive Vice President 

and Director 85,000 30,250 

A. Russell Thayer, Executive Vice President 
and Director 

5. Terrell S. Shrader, Vice President 

6. Herman Rumsey, Vice President 

7. Walter G. Conrad, Senior Vice President 

8. Ramon De Murias, Vice President 

9. John W. Leer, Senior Vice President 
10. Horace Holding, Vice President 



85,000 


30,250 


58,950 


12,000 


56,250 


12,000 


55,750 


12,000 


39,000 


27,308 


61,500 


3,000 


52,250 


12,000 



890 

Question 11 

Branlff exercises continual vigilance over its managerial 
responsibilities, adjusting operations to the constantly changing 
requirements of air transportation 

During the past ten years, Braniff has shown a net loss in only one 
year - 1970, but because of its early recognition of, and prompt 
reaction to, the economic recession which hit the U.S. economy and 
brought a year of serious financial depression to the airlines, its 
loss for that year was only $3 million. 

In December, 1970, Braniff made "A Position Report and Outlook" to the 
members of theCivil Aerobautics Board delineating some of the corrective 
measures it took to adjust to the declining traffic. Primarily, capacity 
and flight hours were cut coupled with employee reductions with resulting 
curtailment of both direct and indirect costs. Reductions were in a 
magnitude to create improved efficiency. 

The booklet (attached) succinctly describes the actions Braniff took in 
face of declining revenues - so that in the next succeeding year Braniff 's 
$8.6 million net income was a result of practical operating economics. 

The company could not contemplate operating for five continuous years 
at the cost excesses indicated in your assumption. 



891 



Question li 

The Civil Aeronautics Board is charged, under the Act, with "encouragement 
and development of an air transportation-system properly adapted to 
the present and future needs of the foreign and domestic commerce of 
the United States, of the Postal Service, and of the National Defense..." 
(Sec: 102) (a), and to provide rates which shall take into consideration, 
among other factors - "...the need of each air carrier for revenue sufficient 
to enable such air carrier, under honest, economical and efficient management, 
to provide adequate and efficient air carrier service." (Sec; 102) (e) (5). 
Thus, there is a dual responsibility, the B oard to encourage, and the carrier 
to exercise economical and efficient management - and if each is done 
properly, the question of bankruptcy should not ariaa. 



67-378 O - 76 - vol.2 - 18 



892 



There has been a substantial number of new entrants in air 

transportation as indicated in the Air Transport Association's 

increase in membership from 19 in 1937 to 24 in 1974, but only 10 
of the original 19 still remain. 

Some added carriers have come into being only to lose their 
separate identity, because of merger and consolidation, in order 
to improve the overall effectiveness of the air transport system. 
The character of the members of the industry has also changed 
dramatically with improved technology and changes in demand for 
air transportation. For example, Allegheny a "new" entrant 
first certified under the Civil Aeronautics Act is now the 6th 
largest passenger carrier, and, in fact carries 26% more passengers 
than does Braniff. Allegheny now carries 10 times the total 
industry passengers of 1937. 

In summary, many carriers have been certified by the Board to meet 
specialized and general requirements. Both the existing carriers 
and the new carriers have expanded and grown to meet the changing 
demands of the traveling public. 



893 



Question 1 4 

Congress in the Federal Aviation Act has prescribed 
standards for the use by the Civil Aeronautics Board in 
establishing fares. A freeze on airline fares could be 
accomplished responsive to this statutory mandate only if 
inflation was stopped and prices and wages frozen, or 
efficiencies were developed to offset such cost increases 
as they occur. In such a highly unlikely situation 
Braniff would expect to maintain its existing profit 
margin. 



894 

Question 15 

It would appear to us that the "classical economic theory" statement 
alluded to is not particularly applicable to the airline industry. 
In the first place, as to investment - there has historically been 
a long lead time in the securing of aircraft, particularly when a new 
generation or a new model became available. Too, because of fluctuating 
conditions "disposal" aircraft at fair value is normally difficult when 
the total industry has surplus aircraft. Then too, the volume of air 
transportation business has been influenced by many' diverse factors 
which have been difficult to predict; economic recession, inflation, 
strikes, weather, slow downs in the airways control system, fuel 
shortages, etc. In addition, the components of the industry are so 
diverse in profitability that it may be inappropriate to generalize on 
an industry basis. Several airlines have established records of 
continuing profitability despite unfavorable economic factors and industry 
trends. 



895 

Question 16 

The airline industries combined low profit over the past few 
years is the result of wide variation among carriers in 
profitability due to management and route structure. 

The Board's establishment of fares pursuant to the statutory 
standards of lowest cost consistent with sound operation, 
tends to keep the airline industry's rate of return at less 
than an adequate level . 

The problem of regulatory lag showed by all utilities or quasi 
utilities (local, state and national), makes prompt price 
adjustment (increase in fares) to keep abreast with increases 
in cost difficult. 



896 



Question 17 

To intelligently cotranent on the statement out of context, we 
would have had to know the witnesses total appearance, 
his qualifications, etc. 



Question 18 



Braniff's operating expense per available ton miles was higher 
than the trunk industry plus Pan Am average by l.A cents for the 
12 months ended June 30, 1974. There are many reasons for this 
situation, but the primary factor is the short haul nature of 
Braniff's route structure. 



897 



BRANIFF AIRWAYS, INCORPORATED 



Advertising 
Amount (ODD) 
X of Total Opng. 

Other Promotion 
Amount (000) 
% of Total Opng. 

Office Rental 
Amount (000) 
% of Total Opng. 



$7 033 $5 385 $4 830 $8 067 $6 815 
2.3 1.7 1.6 2.4 1.8 



$1 213 $1 193 

.4 .4 



$2 224 $2 295 
.7 .7 



$2 145 $2 437 
.6 .6 



9 Mos. 
1974 


$5 


779 
1.6 


$2 


169 
.6 


$3 


021 
.9 



Question 20 



It would be difficult to compute realistically, the average 
additional cost of an extra passenger because of the diverse 
nature of Braniff's divisions, whether the flight was long 
time of day, class of service, etc. 



haul or short haul 



Question 21 



Not applicable to Braniff 



Question 22 



BRANIFF AIRWAYS INC. 



^-63 V^x. Free transp. atudant travel agents.; 20't:j2App. 60-ll-y6 12-3-68 

ii'l9-60 C?W Oklahoma - Southeast Points 20l+78 

11-26-63 Comp. of TWA v. American, Bri^nlff, ?c Continental tariffs 20500 



12-17-63 Coap. of Emeiy Air Freight v. Air Freight Rates 
12-18-68 Comp. of Soc. of Ajner. Florists v. Commodity Rates 
12-20-63 Comp. of W.T.C. v. Air Freight Rates 

O 1-2-69 Ex. Free transp. - Medal of Honor recipients 
"■« l-lb-fo9 Ex. 3 charter flights for Lions Club i; 

d l-3i-69 Ex. Lease aircraft fron Air West 

i. 3-26-69 I1O9 Disc, of Juris, or InteTlociOxig (Herman W. Lay) 
; |; If -15 -69 Ex. fre* tr^sf. ccbcol cW-Wtca 

•■( lf-21-69 Comp of Cong. Moss et al v. a, TWA i United 

A 6-13-69 Comp of Allied Amer. Bird v. gen. comm. Increase 



• 6-25-69 Comp. of Society of American Flori8t3/53<30 min. increase 21119 



20570 

20572 

20585 

20605 Aop. 69-1-13 1-15-69 
20659 App. 69-2-llfa 2-2'i-69 
20691 App. 69-2-57 2-13-69 
20856 Ap?/pt 70-i+-ll6 U-22-70 
20910 'j/d £9-5-111 6-6-69 
20928 Dism. 69-7-159 8-12-69 
21077 App/pt. 69-9-II+9 9-29-69 



6-26-69 Cira-AF Texas-Chicago-Detrolt - Montreal 
^ ,. 6-26-69 Cira-AF Texas Dejiver-Calgary - Anchorage/Fairbanks 
,« 7-2-69 Ex, Detroit; suspend at Wichita Falls 

j> 7-29-69 Ex. Free transp. - Medaa of Honor vinnera 

[J 8-21-69 IXR S. L.T. McCollum, Jr. . 

9-29-69 CTJA Denver-Tulsa nonstop 
'« 10-9-69 CNA Detrolt-Hashville 

ff 10-22-69 CNA-AF Delete Antofagasta, Chile-Rt, 153 

if 10-22-69 SS Suspend Antofagasta, Chile 
; * 11-1^-69 Ex. Free Transportation 

■j t), 11-17-69 ^+09 INR Harding L. Lawrence & King Resources Co, 

,^— - - - - . — ^ — 

|# 11-20-69 Ex. Alaska - Southvest U. S. Temp, service' 
^^© 11-21-69 Ex. Mexico City - S. American June '70 
;'■ ^ 11-26-69 Bd. Invest. Excursion Fares to Havail 

12-2!)--69 2d. Invest re Cancellation of Free Stopovers 
,^12-30-69 Comp. by Airborne Freight Corp. et_re freight rates 
* 1-5-70 Comp. re American's - Frt. Space-avail, tariff 
J 2-19-70 CriM-AF Houston-Dallas-Portland-Seattle-Japan 

■2-20-70 CMN Military standby h. stopovers -NY/Newark-Wash 
^2-20-70 Ex. Military standby & stopovers -NY/Nevark -Wash 
^'3-^-70 CNA Dallas/Ft. Worth- Atlanta 
.^,3-5-70 C:iA El Paso - Boston via S. A. et al. 
3-10-70 Ex. Frse transp, - travel agents 
- 3-2lv-70 Ed. Invest, re Commodity Rate 70-3-120 



73-1-56 
73-1-56 



J-73 
i-73 



-70 



21133 Discn. 
1^'^^ Disra. 

21152" 

21259 App. 69-8-43 8-8-69 

21339 App. 70-5-A5 6-13-7( 

21U71 

2150I* 

215W 

2l5i+9_.App. 69-11-138 12- 9-69 
.21580__App. 69-11-65 11-29-69 

21622 axsia. 70-11-7 11_17_70 



_2i632_l:;. 



Do-.ic>d 70-3-95 



_ l637J^-??-l. 
2l61^fDism. 
21730 
217I+I+ Disra. 



70-1-33 
70-1-92 



2-19.70 
3- 2.70 
1-23-70 

1-19-70 



^21766 A^jp/pt 7'J-l-l't9 1-29-70' 

21937Disra. "73-H-lOl 11-21-73 



Bait. 2191+2 
Bait. 2191+30133. 

_21279_°>"°'- 
21933 DisQ. 



_21993_App. 

220"36Dlsm. 76-5-60 
* 1+-29-70 Comp. by Dept. of Def. re militaiy leave jrsserv. faro 22l!+6_App/pt 70-5-k) 

^^^^■^ AoVor70-5-l!t2 
22198App7pt' 70-5-139 



')-29-70 Comp. by Eastern re prop, reserv. discount fares 
a 5-ll»— 70 Coap. by Northwest re Fares to Hawaii 
» 5j?15-70 Ex. Free transportation - travel agents 
» 6-IC-70 Comp. by Allied Am. Bird re gen'l cotran. rates 
-^*5-23-70 Co-ap. by Assoc. Fur I-ifg.^ Inc. re tariff 
. 6-17-70 Ex-l+CS aircraft lease re 2 Boetng 727' s 

* 7-31-70 CHA-AF Houston-Merida, Cozumel Punta Cancum 

-' 7-31-70 CriA-AF Dallas/Ft. Vforth - Mexico City/Acapulco 

.J 7-31-70 C:U-AF Houston-Mexico City and Acapulco 

7-31-70 CrtA-AJ C.-iicago -Acapulco 



71-5-111+ . 6-8-71 
73-U-lOl U-21-7 
73-7-128 7-25-73 
70-3-55 3-11-70 
6- 2-70 

5- 8-70 
5-23-70 
5-26-7. 
2220_l+_App. 7O-5-9I+ 5-19-70 

22266 Diom. 70-6-151 6-29-70 



22216 Disn. 
,222787,3^^ 
22l+l!+ 

221+15 Ap PC. 
221+16 Appc:' 
221+17 



70-6-86 
70-6-126 



7 2-7-W 
72-7-i*y 



6-12-70 
6-22-70 



7-17-72 
7-17-7.' 



699 



Question 22 

BRANIFF AIRWAYS INC. Docket No. Action Decided 

& 7-31-70 CriA-AF Dallso-Mazatlan, La Poz, Guadalajara 22l+l8 - -' - 

,f 8-14-70 ^lOa Lease with agreement with Trans Kediterrean Airways 22V[3A pp. 70-9-87 9-16-70 
a 3-17-70 CMA-A7 Stopovsr paaaenger het. U. S. coterm. - Rt. 153 221+77 

* 8-18-70 C;m-A? Atlanta, Chicago, NUnneapolls/St . Paul, Det. & Jamaica 22i+79Api). /2-'+-150 3-li; 
' 6-18-70 CiU-AF Route 153- Additional U.S. Coteras.-S. America via Jo^ai ca22'k80 Den. 7 J-U-150^.f 
^ 11-2-70 Com?, by Cong. Moss et al. re i^aasenger fares 22706 i\np/pt 70-."!J.-13'+ 11-2"- 
i. 11-2-70 Co.-np. -by Dept. of Defense re fares J^'^'^%xl^h% 70-12-1+5 12-3-7^ 
O ll-lt-70^ConT3. bv Contipental re N-ainland-HawaM fares ^271^ ji5„n. 70-II-IO3 11-20-7^ 
O XL-3'-'iO Ma Establishment or service mall rates 22731 ' 

0.11-12-70 I4O8 Lease of Boeing 707-320C to Qu antas AlrwavRjjrnc. 227i+l^;^np. 70-11-I'h) 11-27-7i 
l7| 11-27-70 Bd. Invest, re fare increases 70-11-133 22817 D ism. ^j-;^"^" ^' ^^"^.^ _^ 

'. 11-07-70 Coap;. by. Eastern re Coach fares 22822 Dlsm. 70-12-8 12-3-7C 

'•111-30-70 M-Ex. charters to Vietnam - return personnell to U. S. 22832 Denied 70-12-103 12-17-, 
" J 12-1-70 M-Ex. Free transportation - travel agents 22836Adp. 70-12-29 12-19-7t 

il2-l-|o Comp. re Texas Infl's - Clergy etc. fares 22838 Apo/nt 70-12-133 12-23--, 

*j'l2-21-70 Comp. by Allied American Bird re rates on live animals J29l8js.pp/pt 71-1-03 l-J-3-(- 
12-17-70 Bd. Invest, re Space Available Rates 22897 ^, -, <o 1 1 ^ t 

1(^12-28-70 Como, by Society of American Florist re Freight Rates 229^5 App/pt 71-1-D3 J--J-J-^ 
j' 1-13-71 Cnu Boston, etc. - Eilo Sc Honolulu SSOOi^Disni. 71-3-129 3-23-7J 

y' 1-13-71 CrCJ-AF New York, etc. - Australia 23005 oism. 71-3-129 3-23-7^ 

•! 1-13-71 Bd. re Increased Rates on Premium Traffic 23006 

Jl-13-71 M- Pet. for invest, re American's Rt. l62 et al. ' 23012DiGm.. 71-3-129 3-23-71 
'*' 1-18-71 CNA Mlani/Ft. Lauderdale - L. A./Ontaxio/L. B. 23021+ 

,J 2-19-71 Comp. re Air Southwest's - co-operations without cert. .23122 Dism. 71-6-79 , 6-15-7- 
..-! 3-3-7 Comp. by Uorthveat re tour basing fares to Hawaii 23156 Dlsm. _ 71-3-109 3-18-71 

* 113-15-71 M-Ex. 12 charter flights - Canal Zone" Goiwmment 23203 App. 71-^-83 . '^-l'l-71 
;* '3-23-71 CIIA-AF Houston - Mexico City 23227 nenl ed_72-5-61 '+-11- 2 

J O I+-I6-7I M-207 Vfashington - Austin charter 23292 Ap?r-ovad Letter 5 — 7-71 

— I+-26-7I M-EX. Wet-lease to Flamingo Airlines ' 23316 W/d ' 71-.:Lt-195 5-lM 

^ lt-27-71 Como. by Braniff re Freight Container Tariff .23323 J.^sn. 71-5-52 5-12-71 

• 5-11-71 C:Ia" Orlando bet. St. Petersburg-Cleaivater h. Miami-Ft. Laud. "23337 
c 5-11-71 M- Increase in Mj\C Minimum Rates 23389 Dism. EDR-205 6-25-71 

.> 6- 1-71 Comti. re Eastern's - Night Coach fares 23l+60.nl3n. 71-6-101+ 6-21-71 

" V 6-18-71 Bd. 'invest, re military passenger fares 71-6-101 23517 Dism. 71-9-68 9-17-71 

O 6-3O-7I M- Hold disc, with Delta ?c National re Eastern's prooosed 

1 conditional rule, no-show & overbooking proble.-a §3575''^PPv 71-7-99 7-iy-/l 

■■ i| 6-30-71 Com?, re American's - standby excursion fares _2357b Dis.-n. 71-7-98 7-19-7 

»m6-30-71 M- 'waiver Part 207 - Boy Scout of American 23578 Approved Letter 7-15-71 

»l 6-30-71 M-R Increased VAC A-Z rates - 235J5 

J 5 7-26-71 Comp. by Continental re local paasengar fares 23ocO Disn^ 71-8-02 8-13-71 

• :L7-27-71 M-Ex. 1 r.t. San Antonio - Honolulu, Hawaii 23662 Aporovcd 71-7-16/» 7-28-7 

.18-17-71 Ex. 1 charter OkU. C: ty-Honolulu 23714 Approved 71-9-49 9-10-71 

(>i!-'9- 1-71 M-Corap. by Northwest re Round Ttip excursion fares 23782Disra. 71-9-50 9-27-71 

~J9- 9-71 CO.UO. by City & C/C Shreveport re reduction schedule 23812 d^ 73-3-U2 ^-^^-^^ 

.10-12-71 Co-n,p/E;f. Request for cease and desist aga.nst Fronts 89 D....^ We- ^J_^2a^72 
.« 10-14-71 M-Ex. Free transportation tZA . 7, ,n7l iniq71 

Free transportation .2^913_App. 71-10-71 10-18-71 



O 10-15-71 M-£x. Free transportation o-fqsn 

^11- 1-71 Part 233 Declaratory order on MAC rates _^3^5U 7, iq., iq.i'.ji 

•-8-12-71 Co^. by continental " eduction ichfs ^^^^ Msm. a_10^_.^10 l^n^_ 

.12- 2-71 M-Corap. re American's - Aurfreight i.loc.< space tarirt ^^^^"^ 

C? 12- 2-71 M-Co:.?. re .VT>ericaa's- Air freight tarift 24048Ap/pt 73-11-S 10-23-73 

^ 12- 8-71 408/409 Control Relationship witn Br-inifE Int ^^"^P^^^^^-^VqS^O 
«i2- 8-71 408 Purchase from Frontier 4 Boeing Model 727-214 aircrait ^^U3u 
^12-13-/1 M-Comp. by National re Isc class csouraicn fares -405.* 



900 



Question 22 



BRANIFF AIRWAYS INC. 



24084 
24106 



24108 
24U7 n- 



service 

rth- 24119 D^nieU, 



rcj 



45| 12-22-71 3d. Invest, re revised Hawaiian, group fares 
« 12-23-71 M-Comp. by Aloha & Hayalian re Mainland-Hawaii 

\ group fares 

<^ 1-10-72 409 Joseph F. CullxJn - Interlocking Relationship 
&] 1-10-72 Cor?.p. by Am. Uatch Assn. re tariff rule on clocks & 

■ watches 

• ', 1-12-72 C)l\ Dallas/rc. Worth- Los -\nS3les 

•» ' 1-12-72 CKA Dallas/Ft. Worth-Albuquerque-Las Vegas 

• 1-12-72 C.">< Invest re Continental's failure to operate 

Route 29 on segment 16 (Dallas/Ft. U 
Los Angeles) 

• 1-21-72 e;<: Allg. purchase of Braniffs elciven BAC-111 
M 2-2-72 Coinp.ag. Continental's oainland-Uawaii fares 

• 2-4-72 Ex: To provide nonstop service batw. Dallas-L.V. 
» 2-11-72 App. ac-indiaent of certificat* for route 9 
i> 2-22-72 C«uD. ag. A.ii, proposed l.T.B.F. 

• 2-14-72 11\:"23 charter flishta tor Panama Si Canal Zone 
it 2-23-72 App. arad. Dallas/Ft. Worth and Tucson certificate 
O 2-23-72 App. e.-c. fight. Tulsa, Cklahotna to Honolulu houaii 
» 3-1-72 Ar/end. Cert. Houston-Dall.is/Fortworth-Denver-Anchor 
3-3-72 A.-=and.cert. nonstop Denver-Miami-Ft. Lauderdale etc. 
J 3-13-72 Ccap. ag. Eastern's ueekend excursion fares 
i* 3-15-72 Comp. ag. United revision of rules for 
a 3-24-72 Brauift lease to Universal Boeing 727 for charte 
. 3-28-72 CoDD. ag. Frontier's "Standard seating tariff 
9 ^-30-72 ^ni.C.onp. by ACAP re- sched'jles 
u 4-10-Y2 Comp. ag. EAL'b children's fares 

' C.- J'-lO-:2'2 Coi-.iJ ^i.^. gdslerii re . Fi ori.ua excu rsion tares 
i-iy-72 .-1. i.aLvcr ft 207'Z ^ixTs uicti u-^K T^rr- 1 yr- 
NfeU Ycrlc - AferherUn<Js 

•5-22-72- Cowp. ag. EAL group aCfir.ity fjrcs 

6-12-72 tl-Sx. Nonstop '.;.-nolulu/ CVla. City - 1 fit. 



ion 


Decided 


. 72 


2-25 


2-.R-72 ' 


. ,-^ 


-'-J.I 


2.-3-72 


._12. 


2-23 


2-S-72 


ed 7 


2-2-^5 


2^22-72 


iC-i 


'2-2-72 


2-i;.-7 


1-.'.- 


ij-K'9 


6-23-72 



12- 



24240 Mi v.iLSSQd 7 2-3-17 
2422 6-VpProv^d 7 2-3-4 6 
24252 

24251\ppro 
24259" 
24265 

_24304_Disa 

litary fares 24312 Uism 

24340 D I iin. 

24351 DicT. 

24397 Disr.u 72-5-22 5- 
-24462 Ui-s"- 72-5-^3 

2MtS6 r^c nicd 72-7-13 7 



3-£i-72 
3-15-72 



37 3-27-7: 



7 2-4-49 
72-4-11 
72-0-5 
■4-lU 



72- 



-11-72 
-4-72 
-1-72 
-21-72 



7-10-72 E.k: cper. 
7-17-72 App 



Elj,L.Croin IJicliLta-Uonol 
k-aiver of PL 207 
r oC Ft 207 re Youn;: Vot< 
Coap ag A/\L tour basing fares to Hawaii 
9-1-72 App. amend of cert for Rt. 153 to add Tatnpa 



24546 
Z46b0~ 



Appr 



rs for President 



Lettci 



5-72 
3-?i-72 

-5-72^ 

6-16-7. 
..cd 72-7..73 7-21-72 
:'Cd' 72-7-iul 7-23-72 
■'Approvoc 8-g-72 



iuiisced 72-9-119 9-29- 



9-1-72 App amend cert, for Rt. 153 Tarapa-Miaai. ovc 
10-10-72Section 409 Interlocking relatioiiship- 
10-16-72EX: v.-et lease agreement cn<i. B-727-100 to AU- 
10-19-72EX: oper. one nonstop froa Oklahoaa City 
10^20-72 EX: free- transportation to travel agents 
10-3-72*Aiaend cert to add new scg:nent St 
10-4-72*';'jnend cert for lit. 153 to name Dallas-Ft. Worth 
11-9-72 Ex: direct serv. bet. Asuncion, Paraguay & .Santiago 
ll_i:4_72 App. for cert. Tcxas-London-Frankfurt-Paris-RcxLC 

11-28-72 Corap ag AA: airconomy rates in Air Frgt Tar Ko.AC-2 
11-29-72 EX: charter flights for Panama Canal Co. and 

Canal Zone Gove rnir.ciiL 
11-30-72 £ole Source .Supplier Joi.nt Negotiating and 

Purchasing Agreement 
2-i5-73 Texas - Chocago - Detroit - Montreal 
2-15-73 United States - Canada - Alaska 

i:-ir,-.-.' fr.rea file.! by Eastern 



247 04 Di: 

24723 

r Rt.l53 24724 

24815jVpprovcd 73-8-151 
2433 9 Ap prc'vOG 72-11-124 
- Honolulu 24852 /ipprovod 72-11-14 
24856-\eproved 72-ll-oO 
Louis and New Orleans24S00 



8-31-73 
11-28-72 
U-3-72 

11-15-72 



24306 

249 06Apprc 



24971 
25216 
25217 
25331 Di 



n-14-7.- 
9-21-73 
12-15-72 



73-4-30 4-5-73 



901 



Question 22 

BRANIFF AIRWAYS INC. Docket No. Action 



3-38-73 Di^claic.c sales contr.crwitirAUesheny ,^.^ ^l^^^^,'!^^^'- ^.^'tol ^^^ulJ^ 

U-9-73 Couip ag AAu excursion Cares la Hrkts over IQOC mUcs 2540. D.sm. ^-%-^-. 5-2S-73 

U_23-73 ex: Wichita-Honolulu overClying Dallas/Ft Worth |y|-S -^pprov 7 -- - 5 ^_^^_^^ 

U-27-73 EX: free transp. to two agents o£ U.S. Custoa.s 25U75,: P- . ^ ,, 

5-7-73 Co=p ag UAL's excursion fares in cnckts over 6C0 piles 255C8 Di-sm. ' "l---- ^ c 7, 

... orr-»c Anr> LR Dt LCiliuLC O— J-/J 

5-29-73 £X: 7 iway charters fron various cities '^^"ninied 73-6-1C6 6-27-7 

5-29-73 Pot re route exchai-.ges _liLZi_^J.' 

7-3-73 Pet for K-1 - amend foreign air carrier pernits 25674 ^ r 1 7 - 

7-13-73 Jnt app. engage in limited fare discussions 25700Benied_ 73-8-35 ,,\~' 
7-20-73 Cocp by TXIA rX VIOLATIONS OF SECTION :.4U '25720. better Dismissed 11-14-73 

7-27-73 App for approval of eauipment interchange agree!iicnt_25742_App, 74-^-105 A-19-7A 

8-3-73 El Paso, Tex - Boston", Mass. 25763 . . -,-, ^■, ,.„ n t, 7- 

8-10-73 Co;up by Cabair re tariff No LR-1,C.AB No 169 25783 Dismissed 73-11-44 11-12-7- 

8-14-7J Coap by COSTHA re 50% surcharge 25796 Disaissed 73-11-44 11-12-7: 

9-12-73 ^^^p [jy [.p-j.^ j.g local passenger faro increases 25684 Disni. 73-9-lOS 9-23-73 

9-12-73 Coap by GSA re increased passenger fares 25SS7 Disia. 73-9-108 9-28-73 

9-14-73 Coup ag /^AL Qidweck excursion faros 25898 DisD. 73-10-46 lC-12-73 

9-21-73 Comp by MOSS re fare increases sCfective 10-1-73 25910 Disn. 73-9-108 9-28-73 

10-1-73 ED INV. re leading and unloading charges 25940 

10-3-73 Dallas/Fort Worth, Texas - Rome, Italy 25947 - j^ 

10-31-73 Coc-.n by Aloha end Hawaiian re Mainla.nd-Hawaii Grp fare rules 26056 Dism 73-11-72 *\' 

11-13-73 Coci) by Cutler S: AGAP re Doai Pass Fare Increases 26096 Oisaiissed 73-11-93 11-20-7. 

11-13-73 Corap by GSA re Doe. Pass. Fares Increase 26098 Dismissed 73-11-93 ll_-2q-7i 

11-14-73 SS at Atlanta, Georgia and lUlo, Hawaii 26103 Arproved 73-12-52 12-1^-7 

12- 3-73 Coap by Pet Industry re revisions to O.AFRT 26175 

12-17-73 S-S Houston and N.Orleans on Route 153 2 623 6 Denied 74-1-28 1-4-7'. 

12-27-73 EX free transportation to travel agents 26258 iPPrp^ed /4-1-50 1-8-74 
1_14_74 CNN-Fcertificate to provide service Tex. 

Seattle-Japan 26311 Dismissed 74-2-88 2-22-7^ 

3-11-74 M-EX-round trip nonstop bet. Wichita, Kan. and 

Honolulu, Hawaii overflying Dallas/Fort Worth 26493 A pp. 74-4-79 4-12-74 

3-20-74 CNA- Texas-Pacific Northwest-Japan 26520 

3-20-74 CNA- Amend. Rt. 9 to sorv. Dallas/Fort Worth-Atlanta 26521 

3-20-74 Comp.. ag. American's proposed fares 26522 Dism. _ 74-4-37 4-4-74 

4-10-74 Comp. ag. Aloha Airlines Intra Hawaiian Fares 26595 

4-17-74 Comp. ag. Texas Int. Airlines proposed dem. sch. fares 26620 

5-13-74 Ex. °P,lelfiflVB3!igg/F^^?''&S?tR">-"°"°^"^" 26704 App. 74-6-63 6-14-74 



902 



Question 23 

Under the Federal Aviation Act new route authority Is obtained only through 
the issuance of a certificate of public convenience and necessity. Rules 
and regulations of the Civil Aeronautics Board delineate new route procedures 
in the awarding of such certificates. We have not made any new route studies 
under the assumption of non-regulation. 



Question 24 



Braniff has made no studies regarding fare levels in markets 

not served by Braniff; therefore, we have no basis for answering 

this question, 



903 



Question 25 



As of record, Braniff is involved in the following route purchase, 
or exchange proceedings ;- 



Docket No: 



Proceeding 



26245 



American Airline Inc/Pan American World 

Airways Inc. 

Route Exchange Agreement 



Pan American/WesternRoute Exchange 



25881 
26397 



American-Hughes Airwest Route Exchange Agreement 
American-Frontier Route Exchange 



Our interest and involvement has been indicated in detail in the documents 
and exhibits Braniff has filed in each proceeding. 



In our view, route purchases or exchanges should be allowed only after a 
full hearing by the Civil Aeronautics Board, to ensure that all factors, 
including public interest ones, carrier interests, etc., can be fully 
explored. 



904 



Question 2 6 



There are several critical factors which would effect a reply, probably the 
most important one would be the timing of excess capacity and secondly 
would be the quality and type of the aircraft which would be excess. 

In Braniff's case, at this particular time, through long years of fleet 
planning and standardization, our fleet is now so structured that we are 
in the position of being able to react quickly to any significant changes 
in air travel levels. Further more, the type of Braniff aircraft which 
would become excess as a result of a major traffic turn-down on Braniff's 
system is the 727-100 which is one of the most marketable aircraft 
operating throughout the world today. 

In Braniff's case, unless conditions become almost catastrophic, we would 
not anticipate that we would have to dispose of the aircraft below book 
value. 



905 



Question 27 

Braniff presently has two certificated routes under suspension through 
March 1975 for fuel conservation reasons. They are the Atlanta/Dallas- 
Fort Worth portion of the Atlanta/Honolulu route plus the Dallas-Fort 
Worth/Hilo route. We have filed with the Civil Aeronautics Board 
to continue suspension of these routes for an indefinite period of time. 
We feel that the economic situation plus the sky rocketing cost of fuel 
warrants continuing suspension. These services were suspended for 
fuel conservation plus the lack of needed public service they provided. 
Our experience showed that there was little demand for the Dallas- 
Fort Worth/Hilo service since the vast majority of the traffic went 
Dallas-Fort Worth/Honolulu. The Atlanta/Dallas-Fort Worth portion 
of the Atlanta/Honolulu service was suspended also because of fuel 
savings and the lack of traffic to justify the operation of this 
service and the fact that there are numerous other ways for the 
Atlanta passenger to get to Honolulu. 

In light of the fact that Braniff has pioneered this service and has 
operated it and found that it is not economically viable nor does it 
fill any significant public necessity at this time, we feel that 
another airline should not be given the opportunity to fly these routes. 



Question 28 



906 



1972 1973 1974 Est. 1975 Est. 



Amount (000) $41,A14 $46,791 $88,000 $111,000 

% of Total Opng. 12.1 12.1 18.0 18.0 

Price per Gallon 11.13c 15.41c 22.19c' 26.89c 



Question 29 

Not applicable to Braniff 



Question 30 



Not applicable to Braniff 



907 



Question 31 



Most, If not all, high density traffic markets in the United States 
are served by multiple carriers, frequently three or more. With 
that volume of competition, the entry of new carriers with trunk 
line authority would only serve to dilute the traffic among the 
various carriers which could have a dilatory effect upon those 
carriers. Further, since each trunk lines system is composed of 
segments of varying strength and profitability, if the high density 
segments were high profit ones then profit decline in those markets 
could cause diminution or cessation of service in lesser markets. 
Braniff does not have the privilege of serving many high density markets, 
Ranked nationally, Braniff 's highest density market is number 34, 
in which there are only 502 passengers per day each way. (Total 
0-D market). 



67-378 O - 76 -vol.2 



908 

Question 32 

If all certificate regulations and laws were abolished, so that 
any existing carrier or new entrant could enter and leave any 
market at will - in our opinion, the scheduled air transportation 
system would be destroyed, with the public being deprived of 
regularity and certainty of air transportation. Conditions would 
revert to primeval ones, where the strongest carriers would 
concentrate on only the high density, profitable markets, 
withdrawing from all unprofitable markets and cities. The probable 
end result would be "the survival of the fittest," wherein the 
larger, more efficient, more aggressive carriers would force the 
smaller ones from the market place. With "freedom of entry and 
exit" the public could never depend upon any "scheduled" service. 
The primary losers would be smaller cities and smaller markets, 
with the resultant collapse of airport and airways facilities. 



909 



Question 33 

As noted in question 6, Braniff does not maintain records on 
segment or flight profitability, so we cannot respond for our 
flights within Texas. We have computed some profit estimates on 
selected routes within the State, and those estimates indicated 
the routes were profitable on a fully allocated basis and also 
on an incremental basis . Incremental costs include the expenses 
of taking one course of action over another. The specific 
expenses to be included would, of course, depend on the reference 
base of the study. 

We met the fares of Southwest Airlines in the commuter markets 
where we were in direct competition. 



910 



Question 34 

The decision of capacity, frequency and markets is in essence the 
total concept of scheduling. 

Without going into the tremendous detail that would be needed to 
explain the whole basis of scheduling, it could be summarized 
by listing the major points, not necessarily in the order of 
importance. 

1. Size of market 

2. Competitive situation in market 

3. Aircraft availability 

4. Economics 

5. Public service 

The decisions on these questions are made by the Corporate Planning 
and Marketing Department. 



911 



Q uestion 35 

Braniff provides different classifications of in-flight service 
according to first class and coach accommodations, depending on 
the flight stage length and time of day operation. 



Question 36 

The decision as to the type of service offered on a flight is 
influenced by the length of haul, (that is the time available 
for cabin service), the time of day of the flight, the composition 
of the up-line and down-line traffic flow and market competition. 

The decision as to the type of service to be provided on scheduled 
flights is made by Braniff 's passenger service department, 
subject, of course, to top level review. 



912 



Question 37 



The operating efficiency of an air carrier is primarily the result 

of a prudent imaginative management - in which size has a relative 

insignificant role. In our view, Braniff 's present management 

organization and structure could efficiently handle an operation 

twice its size - and conversely, could adapt down to an operation half its 

size by any of the measures of size indicated in your question. 

Question 38 

Compliance with Civil Aeronautics Board reporting, ticketing and other 
requirements requires people, machines and supplies all of which 
impose costs. The elimination of these requirements would not 
necessarily reduce our costs at all because we would still have 
to meet Securities and Exchange Commission, Internal Revenue 
Service and other U.S., and foreign regulatory requirements. 
In addition, much of the data reported to" the Civil Aeronautics 
Board is required to manage our business properly. 



913 



Question 39 

Upon balance, we feel that the regulatory function of the 
Civil Aeronautics Board has been satisfactory. In only 
two areas would we comment: First, that of the continually 
increasing reporting requirements which have escalated 
substantially within the past few years; and secondly, the 
seemingly long processing time for applications and 
resultant proceedings. 



914 

Question AO 

Listed below those expenses which can readily be Identified as 
related to C.A.B. proceedings. Our records are not set up to 
capture the total amount of this specific expense without a 
great deal of time consuming analysis of detailed accounting 
records. 



Identifiable 

Expenditures Related to 

C.A.B. Proceedings 



1970 $ 78,781 

1971 47,623 

1972 94,709 

1973 60,328 



1974, 9 mos. 144,958 



915 



Question 41 



Total passenger enplanements are; 



1972 6 713 455 

1973 7 553 745 
9 mos. 1974 6 289 347 

Question 42 



We assume by flights you mean departures of flights. Braniff s 
total number of scheduled departures are: 



1972 167,166 

1973 176,929 
9 mos. 1974 141 169 



916 



Question 43 



We assume your reference to flights means departures, 
Branlff's total number of scheduled departures performed 
are: 

1972 164,785 

1973 174,550 
9 raos. 1974 139,387 



917 

Question 44 

Consumer problems are handled in two basic divisions; a central Customer 
Relations Office which includes responding to customer complaints regarding 
service, a central baggage tracing office, baggage claims processing, 
and cargo claims handling. Secondly, there are Baggage Service Agents 
in nine key cities. The number of persons employed: 



Customer Relations 17 17 23 



Baggage Service Agents 42 42 48 

59 59 71 



In other cities personnel are assigned on a "need" basis. Not able to 
segregate costs of these functions. 



918 



Question 45 



Question 46 



8,973 



Question 47 



See response to question 44 regarding division of offices 



1972 1973 1974 



Customer Relations 



$154,221 $433,090 $317,705 



Baggage Service Agents * 445,308 ' 470,904 428 160 



$599,529 $903,994 $745,865 



* Salaries only 



919 



Question 



$A, 752, 444 
Includes cargo, interim expenses and baggage claims, 



Question 49 



No exact records are maintained, but it is estimated to be 
70% to 80% 



Question 50 

Unknown, as our inhouse accounting procedures do not reflect 
this information. 



Question 51 

In circumstances where it was concluded there was a moral obligation 
or where conditions were beyond a passenger's control and strict 
adherence to the tariffs would cause undue hardship to the customer. 



920 

Question 52 

An investigation is made of all complaints prior to responding 
to a customer. After the response is made the file is sent to 
the appropriate Vice President and operating office. Necessary 
disciplinary or educational instruction is given to involved 
personnel. Procedures and policies are reviewed, and , if complaint 
is well founded and/or has been a recurrent problem, changes are 
made. 

Question 53 



(1) Service reliability, (2) Baggage service, (3) Fares and refunds. 
Sections 163 and 166 of Traffic Manual I pertaining to baggage claims 
are enclosed as Attachment A and B. 



921 

Question 54 

Controllable 142,695 

1/ 
Uncontrollable 125,267 



267,962 



1/ Uncontrollable baggage mishandlings are those classified as: 
off line connections; other airline error; passenger used 
another flight, and bag switch, passenger error. 

2^/ Records for the new facility Dallas-Fort Worth are excluded 
for the first 6 months break in period. 



922 



Question 55 



Current accounting procedures do not provide a breakdovm 
of this data from the overall number of claims received 
or processed. 



Current accounting procedures do not provide a breakdovm of this 
data from the overall number of claims received or processed 



Question 57 



Current accounting procedures do not provide a breakdown of this 
data from the overall number of claims received or processed 



Question 58 

774 incidents of alleged pilferage for the period 1973 through 
October, 1974. Prior to this a separate "Alleged Pilferage" 
form was not in existence and we would be unable to retrieve 
this data. 



923 

Question 59 

$3,660,644 for all categories of mishandled baggage 

Question 60 
$2,404,343 



Question 61 



$140,304 both repaired or replacement of damaged baggage 



Question 62 



See response to question 61 



67-378 O - 76 - vol.2 - 20 



924 



Question 63 

Those expenses would be included in the loss figure provided 
for in Question 60, and there is no way to separate this data. 



Question 64 



$1,115,997, This figure would include interim expenses 
for incidental items due to delayed/lost baggage. 



Question 65 



The costs incurred would be included in the response to 
Question 6A. 



Question 66 



Records are not maintained to provide this data 



925 



Question 67 

We would be unable to separate this specific classification 
from total claims denied. See reply to Question 69. 



Question 68 



Historical records are not maintained to show percentage of claims 
paid, or paid in full for the period in question. 



Question 69 



Historical records are not maintained to show percentage of 
claims denied for the period in question. 



926 

Question 70 

On items which appear to be overstated in value or over $100.00 
in value, we may request a receipt in accordance with industry 
practices. 

There is a posted notice at all baggage check in points 
advising the passenger of the availability of tariffs for public 
inspection. These tariffs explain limitations of liability 
for loss, damage or delay in the delivery of such property 
(C.A.B. No 142, Rule 370 attached as Attachment C.) 



927 



Question 71 

The criteria is explained in the carriers tariff publications 

which are available to passengers at airports and other 

ticketing locations. In addition, carrier personnel would 

advise passengers when such checked baggage was not obviously 

suitable for carriage. ( C.A.B. No: 142, Rules 340, 345, 350 and 

355 attached as Attachment D) . 

For further passenger notification see Attachment E and F. 



Question 72 

In many cities we have implemented positive claim procedures. 
In those cities which we do not have positive claim, unclaimed 
baggage from the claim areas are secured by our personnel when it 
is apparent that all incoming passengers have arrived and claimed 
their bags. This same procedure applies to baggage unclaimed 
where positive claim exists. 



928 

Question 7 3 

Processins of Pilferage Claims 

1. Upon receipt of such a report (by phone, by letter, or in person), 
the Braniff agent completes the Braniff International "Report 

of Property Missing from Check Baggage", a copy of which is given 
to the passenger if the report were filed in person. 

2. The station receiving the report searches its facilities for the 
item or items allegedly missing. All other stations involved 
in the passenger's itinerary are also notified. 

3. If the alleged loss occurs in connection with interstate 
transportation, a full report is made to the Federal Bureau of 
Investigation. 

4. When recovery is not made locally, a copy of the station 
report is forwarded to System Tracing, where another search 
is conducted. 

5. If System Tracing is not holding the Item or items, claim forms 
are mailed to the passenger, so that a timely written claim may 
be made in accordance with the tariffs. 



929 



Question 73 
Page 2 

(As noted on the lower half of the passenger's copy of the 
station report, a letter of claim may be used in lieu of completing 
claim forms, particularly when the passenger has not received claim 
forms within two weeks.) 

6. Completed claim forms (or letter of claim) and the accompanying 
documentation are referred to Customer Relations for handling. 

7. Pertinent information, i.e. name and address, regarding each 
passenger who presents a claim in excess of $100.00 is entered 
into the industry computer for detection of possible fraudulent 
claims. 

8. Receipts on high-value or recently purchased items may be requested 
to the passenger if the report is filed in person 

9. If the claim appears to be in order, payment is made in line with 
governing tariffs. The expenditure is prorated among the carriers 
involved in transporting the luggage on the basis of fares earned. 



930 



Question 74 



Currently average is approximately 30 days 

Question 75 

Determining the Validity of a Claim 
Each claim is examined carefully for any discrepancies and in 

particular to: 

1. Determine if the damage, loss, or pilferage was reported 
upon arrival at destination, in person, and within the 
time limit specified by the tariffs. 

2. Determine whether the routing of the baggage and the 
passenger is the same. If not, an explanation is required. 

3. Receipts may be required on expensive items ($100.00 or 
more) or on items which appear to be over-stated in value. 
This practice is to establish the actual cash value of any 
lost items. Receipts are verified by the claims manager. 

4. Determine if the items alleged to be lost could reasonably 
have fit into the size bag which was checked. 

5. Determine if the amount of clothing alledged to be in a 
lost bag is reasonable for the number of days the passenger 
travelled. 

6. Determine if the items alleged to be lost are in keeping with 
the occupation and life-style of the claimant. Outside 
investigative firms may be called in to supply pertinent 
information 



931 



Question 75 
Pa£e_2 

7. The name of the claimant Is submitted to the Industry 
computer In order to ascertain the Individual's previous 
history of filing baggage claims. When a close "find" 
or "match" occurs, previous claim files are compared with 
the current one. 

8. All claims must be properly documented with a passenger 
coupon and baggage claim check. The claim check is 
necessary to establish that property was checked into 
airline custody and not subsequently reclaimed at 
destination. 



Question 76 



See Attachment G 



932 



Question 77 

Braniff has implemented a highly sophisticated computerized fare 
quote and itinerary pricing system which is updated on a weekly 
basis and which contains all oj Braniff 's local fares, all joint 
fares in which Braniff participates plus local and joint fares 
of other carriers in Braniff as well as offline markets. In 
addition, this system was recently expanded to include international 
fares to Mexico City, Hawaii fares are currently being implemented 
and plans are under way to include international fares to points in 
South America. 

The Braniff system has the ability to include and account for 
restrictions on promotional fares and automatically gives the 
passenger the benefit of the lowest available fare applicable to 
his journey. 

A substantial number of all Braniff tickets are now computer prepared, 
and eventually an estimated 95% will be so prepared. 

Fare computations are always verified happily on the request of a 
passenger. 



933 



Question 78 



The average time for processing ticket refunds is approximately 
three days from date of receipt at Braniff 's Dallas accounting 
office. 

Question 79 

Approximately four-tenths of one percent of our monthly boarded 
passengers utilize Braniff 's Reservations System to make 
automobile and hotel reservations. Due to the commissions paid 
by one car rental company and Braniff 's Hotel Division, this 
venture has proven profitable to Braniff. 



Question 80 



See Attachment H 



Question 81 



See Attachment I 



934 

Question 82 

Gross expenses estimated : 

1972 1973 1974 

$391,640 $513,920 $672,238 

[Subsequently, Branlff suggested that "operating revenue" 
and "gross operating loss" provided a better answer to this 
question: 

1972 1973 197^ 

Operating revenue i 27^148 t 3oH7352 $ 3557559 ^ 

Gross operating loss $ 117,^92 $ 205,568 $ 316,679 ] 



Question 8 3 



7982 



3754 



Question 85 



Question 86 



935 



936 



Question 8 7 



Braniff maintains no such record 



Question 88 



Question 89 

Braniff 's records not maintained in such a manner so as to 
identify this item. 



Question 90 



937 

Question 91 



Question 92 



No such reservation is offered by Braniff. 



Question 93 



See Attachment K 



Question 9 4 



See Attachment L 



938 



Question 95 



1,733 



Question 96 



We do not maintain data in this manner. All related expenses 
would be in one account designation. 



Question 97 

See Attachment L 

The method varies from station to station. However, all 
stations report into the computer flight confirmation on 
flights in which they are in control following the format 
outlined in Section L. 



939 



.uestlon 98 
See Attachment M 

Question 99 

In the past few years Braniff has accomplished several major 
steps to simplify fare construction. 

Braniff has joined an industry agreement to publish a vast 
number of new joint fares instead of requiring them to be constructed 
in accordance with tariff construction rules by ticket agents. Such new 
fares will cover almost all interline routings used by passengers with- 
in the U.S.A. When this agreement is put into effect there will be little 
chance of fare misquotation except in case of extremely complicated 
and extensive journeys. 

Braniff has implemented a computerized fare quote and itinerary 
pricing system which is updated on a weekly basis and which contains 
all of Braniff's local fares, all joint fares in which Braniff participates 
plus local and joint fares of other carriers in Braniff as well as offline 
markets. In addition, this system was recently expanded to include 
international fares to Mexico City. Hawaii fares are currently being 
implemented and plans are under way to include international fares to 
points in South America. 

The Braniff system has 'the ability to include and account for 
restrictions on promotional fares and automatically gives the passenger 
the benefit of the lowest available fare applicable to his journey. 



940 



APPENDIX A 




PART OriE PASSEfir-ER SALES AND SERVICES PROCEDURES 



SECTION If 



I. CLAIMS 

A. GENERAL 
Only thi 



ng types of claims are settled by the Passenger Relations Department. 
In all cases, claims may only be considered in full compliance with the qoverninq 
published tariffs. (Copies of those tariffs are on file at ticket offices and with 
the Civil Aeronautics Board in Washington. D.C., as well as with the Company Tariff 
Department. ) 

1. Claims arising from damage to, loss of, or delay in delivery of checked baggage 
or unchecked articles for which Company responsibility and liability may be 
established. 

2. Claims resulting from passenger inconvenience duo to irroffular handling or 
other factors which prevented the rendering of service of the type expected, 
necessitating additional and unexpected expenditures by the customer. 

MINOR CLAIMS (UNDER S.50.00) 

eed S50 per passenger) , s 



Claims amounting to S50.00 U.S. currcnc 
damaged or delayed baggage, (2) baqgaqo 
claims, and (4) Company policy adjustme 

Under this procedure, payment for clam 
cannot exceed S50.00, except when an in 
teletype by the Director - Passenger He 
must be attached to the copy of the cla 
ment as supporting evidence of authorit 



ud by 
inaqer. 


the 


local 


ii'i": 


',.i,|qagc venc 
.proved by 
This messac 
inting Dopai 



2. Types of Cla 



I. Lost, Delayed and Damaged Baggage 
shall be made on Form 963-523009, 
Facsimile on page 2 - Iftl). Claiir 
be made on Form 96 3-6'! 00 1 ■) . (Facs 



iims for damaged baggage 
roDcrty Report". (See 
or delayed baggage shal 
ige 4 - 160) . 






ity starts t 
late scttleir 



nger's baggage 



941 



3 Fi n n I F= F= inTEHnHTionnt. 



mnnmF=m mHnuFiLx 



PART ONE PASSEN'GER SALES AND SERVICES PROCEDURES 



I 



SECTION 153 



3. CUSTOMER INCONVENIENCE 



EXPENSES AND POLICY ADJUSTMENTS ( Interim sExpens 



\s always 
and consi 
leed to r 



=nger to 



goal is to provide the passenger witn tne tvre oi seivii-e 
on he has every right to expect; and particularly do we 

his goodwill when his luggage is delayed or lost. Never- 
t also consider the Company's interests and tariff litnita- 
passenger makes demands of us when his baggage is missing, 
expenses nor voluntarily 
but if he does express 
supposed to do while his bag is astray, we should 
ie share his concern and advise him of our interim 
similar to general industry practice. It is also 
rning tariffs and the ticket contract. 

; day and there is the possibility that the pass- 
ive and can be delivered before 10:00 p.m., advise 
5 fact and try to assure him that purchases 



e passenger's bag cannot be delivered to him 
prior to 10:00 p.m., you may authorize him to purchase the "necessary 
toiletries and sundry items (underclothing, socks, etc.) to tide him 
over until the next day. 



readily 
expense 
in keep: 


pol 
ing 


:r what he ] 
ure him thi 
icy which I 
with the gc 


(1) If 
eng. 
the 
shoi 


it i 

pas 

uld 


,s early in 
1 bag will i 
isenger of t 
not be nec< 


(2) If 


it i 


s obvious ( 





Advise the passenger to : 


keep the receif 


)ts for his "nec( 


3ssiti 


.es" 


and 




that he will be reimburse 


Ed. Try to make the passenger 


under 






that he will only be reii 


Tibursed for the 


)se Items which obviously 






qualify as "necessities" 












(3) 


If the passenger insists 


that he needs 


a major article 


of cl 


.oth: 


Lng 




immediately for a specia 


1 occasion and 


cannot wait unt: 


ll the 


? an 


rival 




of the next flight tor h 


is bag, with the manager's approval, 


you 




may advise the passenger 


that he may purchase the item 


or it 




at hi 




own expense being sure t^ 


retain the rf 


:ceipt(s) . You : 


shoulc 


1 be 


very 




reluctant to submit to s 


uch a demand il 


E you know posit: 


ively 


the 


bag 




will be in within a few 


hours. Depend] 


ing on the situa' 


tion. 


you 


may 






passenger that, under the tar 


iffs. 








necessary for the claima; 


nt to prove th< 


? expense was nei 




■y- 




REIMBURSEMENT - BAG RETURNED 


TO PASSENGER BEFORE FILE FORWARDED 


TO THE 


SYSTEM TRACING CENTER. 













the passenger mak 



aim for reimbursemen 
be offered to him i 



ided you are satisfied the purchases w 
You may reimburse him for 100% of the 



t of interim expenses 
::oat, slacks, electric 
n one of two ways; 
ssary and reasonable. 

ies and 50% of the 
Under this settlement, 
i in effect has supple- 



If the passenger does not wa 
he may be reimbursed 100% uc 
Disposition of the salvaged 
covering salvaged baggage. 



ewly DU 



942 



B n n n I F= F= inTEHnnTBonHi. 




mrnim 



4. ri;imbuksi;mi;nt - bag not located 



FORWAHDED TO TIIK SYSTEM 



TRACING CENTER 



Ad' 


l/ise th. 




ssenger that you hav( 




3 his f 


1 In ; 


has been forwarded tt 


as 


the fi 


le ii 


5 received there, cli 


pa; 


ssenger 






Th. 


° passci 


nger 


can make his interir 


i ni 


:luding 


the 


receipts for his int 


foi 


rms. I 


f hi: 


5 property is later i 


to 


him on 


the 


same basis as covers 



been un.ible to locate his 
the System Tracing Center 
im forms will be mailed to 



xpenso a part of his loss claim by 



(2) 

IF HIS PROPERTY IS NOT RECOVERED, A SETTLEMENT WILL HE nFFERj:D TO HIM 
IN LINE WITH THE GOVERNING TARIFFS ON FILE WITH THE C.A.B. SETTLEMENT 
IS LIMITED TO THE ACTUAL VALUE OF THE LOST ITEMS ONLY , UP TO THE MAXIMUM 
AIRLINE LIABILITY. INTERIM EXPENSES THEN BECOMi; REPLACEMENT EXPENSES 
AND CANNOT BE CONSIDERED SEPARATELY OR OTHERWISE. (i.e.. We cannot pay 
for the lost property and interim excenses. 

LOCAL SETTLEMENTS OR 



When the fi 
up to $50 c 
procedures. 



such adv 


ance 


or Daync 


■nt mi 


ilSl 


Checked 




age form. 


If 


t-h 


warded t 


o th( 


5 System 


Trac. 


1 nr 


that off 


ice, 


DALLZBN, 


by 1 





Checks ms 
relating 



ntly, a double 



idcd for, whl 



i.-; mcidc to 



made payable to 



943 



B n n n I F= F= inTEnnFiTianHL. 



mmm?mmmiFinuni2 



PART n:iE PASSFtf,£R SALES K\W SERVICES P»nCEnURES 



SECTION ir,^ 



I . CLAIMS 

B. MINOR CLAIMS lUNDER S5Q.00) (Continued) 

7. Preparation of "Local Oraft". Form 966-942-001 (Facsimile on paqe 3) 

The "Local Draft" should be completed in ink or by typewriter by ins 
of the following information in the spaces provided. 

a. Explanation 

(2) For Air Freight claims, show airbill number. 

(3) Enter flight number, date flown, and one of the following: 

(a) Delayed Baggage A/C code 35. 

(b) Customer Inconvenience Exoense A/C code 35. 

(c) Lost Baggage A/C code 36. 

(d) Damaged Baggage A/C code 36. 
(o 



Pay - Amount of refund in wo 

To - Enter complete name and 

Control Point - Enter issuin 

By - Signature of persons au 
Customer Service Manage 

8. Distribution of "Local Draft", F 



vcnty-Fivo and 50/100 Doliars. 



vitisfiction cind --elcas 
laims against Draniff 
or the 5ub]ect noted c 
f this draft. 



944 






wmmiMmnmnuFim, 



PART OiNE PASSENGER SALES AND SERVICES PROCEDURES 



1 



SECTION 1G3 



LOCAL DRAFT 
FACSIMILE FORM 963-942-001 



BHHnBF=F= BnTEHnnTianHL- 

LOCAL DRAFT ^, ,„...„..„,„ D 010135 



VOT O ) 



1 






b 




__ E>PLmNATON 


. 


_ 




' 


-~r-?' '\k 


/! 


1 1 








COD .Ov..C£S_ 

















- 


TOTAL 





DUPLICATE COPY - To DjIIji Conc.ol Ac.ct.nl,,.,; Depi - 



] 



DUPLICATE COPY ■ To Dallas Ccnerjl Accounhng Dept 



LOCAL OFFICE FILE 



945 



B H H n I f= F= I n T E H flH T i O il Ft L . 

J SECTION 165 



mRmiF=p=icwmriUFiii 



^m 0;iE P^SSENnER SALES AND SERVICES P^OCEnuoES 



CLAIMS 

MINOR CLAIMS (UNDER ;50. 

a. Distribution of Othe 



(Continued) 



When a customer's claim is paid by a local District Sales Manager or local 
Customer Service Manager, the following distributions shall be made: 

a. "Lost or Delayed Checked Baggage", Form 963-640014. 

(1) Original - TRACF.N , X-13, DAL. 

(2) Duplicate - To staticn responsible for loss or delay (amount paid and 

(3) Triplicate - Attach to duplicate cony of "Local Draft". 

b. "Damaged Property Report", Form 963-523009. 

(11 Action Copy - Attach to Accounting copy of Local Draft. 

The check number and amount paid must be shown at the bottom of the 
page under the area designated. 

(2) Passenger Copy - Attach copy of Local Draft. 

(3) Station File - Attach to pink copy of "Local Draft" and file. 



en a "Damaged Property Report" is filled ou 
another station, the paying staion will us 
ation to support payment. 



(1) Or 



il - Cus 



"TOTAL AMOUNT OF CLAIM" 

(2) Duplicate - To accounti 

(3) Triplicate - Consignee. 

ina 



■Local Dra't" 



Draft" and file. 



a. 


Reve 


mue A 


udit will handle as follows: 








(1) 


All 
chec 


"Local Draft" sent in bv each stati 
k nu".ber. 








(2) 


All 
sepa 


"Local Drafts" chaned to the folic 


iving code 


numbers 






(a) 
(b) 
(c) 
(d) 


Delayed Baggage 

Lost Baggage 
Damaged Baggage 

Air Freight Claims: First S25.00 
Amount above 


S25.00 


Code 35 
Code 3 5 
Code 36 
Code 36 
Cede 37 
Code 38 



946 



B Fi H n I f= F= I n T E H n h t i a n h l. 



mmmmjBimupiM 



r^IRT 0!;E PASSErr,ER SALES A:;D SEP" ices PROCET'PE^ X SECTION 1P3 



B. MINOR CLAIMS (UNDER S50.00) (Continued) 

A (1) The Accounting coDics of the "Local Drafts" will bo segregated by 
account code to be charged and batched for transnittal to 
Machine Accounting. 

(2) Amounts dcsijnated by the following accounting code numbers shall 
be charged to the account number indicated: 

Accounting Code Numbers: 

35 Delayed naggaqo. Customer Inconvrnirnce Fxr>nn-.c A/C 6258003 

36 Lost Baggage and Damaged Baggigo A/C 6258002 
ting code number and send the 



II. FORMAL CLAIMS 



of the claim form, if requested to do so, bu 
avoid any commitments as to the likelihood o 
also avoid any admittance of liability. Mor 
made of the existance or non-cxi stance of Ir 
investigation and a report have not already 
taken to make a thorough investigation and t 
Such report, including baggage claims blanks 
applicable, should provide any supplcmcntarv 
assistance in properly disposing of the cl.ii 

any claim is necessary in order to reduce th 



ifac 



u^ handling of 
ion anU 
Comoany . 



IMPORTANT REMINDERS 



i/ed by mail should bo acknowledged immediately. 
1 of responsibility for loss or damage. 



5. Tf possible, decline to accept custody for Kafekcer.ing of damaged article 
and require that they be [ilaccd in "checkable condition before' accepting 



6. Make no repairs to or arrange for repair of dom.i 
replacement of lost articles in excess of S50 wi 
Director - Passenger Delations, Dallas. Dcviat: 



ly shown that the repairs or replace 



wmFmpic: mnnuFiL. 



PART OIIE 



PASSENGER SALES AND SERVICES PROCEDURES 



SECTION ifi3 



II. FORMAL CLAIMS (Cont 



C. FILING TIME OF CLAIMS 

Tariffs and other media indicate a specific number of days in which a claim 
to be filed. The reason for the time stipulation is to protect the Company 
against unwarranted delay in filing claims, making it exceedingly ' ■-'• 



red. 



be the chances that investigation of tr 
results that will enable proper disposition the 

D. HANDLING CLAIMS INVOLVING INTERLINE CONNECTIONS 

If a claim is presented by a passenger and it i 
damage occurred prior to the passenger making c 



nee the alleged loss or damage 
claim is filed, the greater v. 
s or damage will yield materia 



snger Rela 



or damage had occ 

so that the pass€ 
e after the proper 



LI follow through 
1 be acknowledged 
jith the interline 



Dnditions of con 



;ld liable for 1' 



damage 
tions of the 
Although a 



IS not the insurer 

B. Actual interpretati 
liable must not be 
only be decided by 



s Office and/or Legal Depar 
Company for decision. 



The fact 



-jht 



rcdu 



cannot be over-emphasized. Every 
operating profit of the Company an 
success. Employees should avoid a 
insurance against its legal liabil 
apply to each claim pre: 



labl 



ill 



dolla 
;t of 



948 




LIABILITY (Continued) 

2. Limits of Baqqaqe Liab 
a. Checked Baggage 



nder contracts of carriage, th< 
amage to baggage carried in U,! 
hereas the liability for 1 
imited to S7.50 per pound 
hall have declared a highe 



Unchecked 



the tariff for 



imit of liability for the loss of or 
domestic service is limited to S500, 
or damage to international baggage is 
S16.50 kilograms, unless the passenger 
alue and paid the additional charge 



ch excess 



Claims for 


loss of or damage 


to u 


icheckcd 


articles shou 


d be discour. 


However, if 


carriage is subject t 


D the Wa 


saw Conventio 


1, the maximur 


liability o 


n unchecked baggaq 


e sh 


all be S330 in U.S 


cu 


-rency or its 


equivalent 


per passenger. 












Excess Valu 


ation on Baggage 












If a passenger wishes to obta 


in a 


limit o 


baqgaqe 


lab 


lity higher 


the amounts 


stipulated in the 


pas 


senger cc 


ntract, t 


eke 


t and baqgaqe 


check, he m 


ay do so by declar 




a higher 


value and 




nq the aopro 


tariff char 


ge required there: 




This an 


eenent by 


the 


Company to a 


a higher li 


Tilt of legal liabi 


Uty 


in cons 


deration of t 


le higher cha 


paid by the 


passenger must nc 


t be 


confuser 


with insuran 




not insuran 


:e in any sense o: 


the 


word. 


n ordnr tc 


collect damages 


to a higher 


limit of legal li 


abil 


ty, the 


passenger 


mus 


- T'rovc neglic 


on the part 


of the Company. 


Sec 


153.1, V 








Unclaimed Bagjacjc 













by 



le for checked accompanied or 

e owner. In genera 
is usually defined 
:es the length of time such baggaa 
rordingly, such baggage will bo he 
ity days or any greater period sti 



companiod bagr^ge 



jsf hn retained by the 
in TRACEN for a maximum 
3tcd by local law. 



IV. ADJUSTMENTS AND SETTLEMENTS 



s 


the Company 


s policy 


to pay all just c 


= s 


to give th 


a claimant the benefit of a 


m 


IS unjust. 


t will be 


denied. Except 


s 


doubtful th 


at good w 


11 can be gained 


31 


ity exists; 


to pay s 


ch claims is only 


ms. liraniff 




nal transacts bus 


tied to all o 


the pro 


oction afforded t 


SETTLENI-.NT OF 


CLAIMS 




1 


Scttlrracn 


. of claims will be made ci 




Relations 


directly 


with the claim.mt 




when it is dcsiral> 


e to make local c 




inquiries 


or correspondence relating 




should be 


referred 


directly to the D 



ims promptly and, in border-line 
reasonable doubt. However, if a 
the case of justified policy claims, 
naying claims for which no legal 

ess under contract as a carrier and i 



949 



H n n t F= F= in T^HntiTKanHL. 



mf'm:f=ic mff/rufiu 



PASSENGER SALES AND SERVICES PROCEDURES 



SECTION 153 



IV. ADJUSTMENTS AND SETTLEMENTS (Continued) 

9 A. SETTLEMENT OF CLAIMS (Continued) 

2. After reviewing the claim form 
the missing bag, will forward t 
Dallas, who will make the final 
authorized, a check will 



1 ana case file, TRACEN, if unable to loca 

.decision as to payment. If payment is 
led directly to the passenner. 



RELEASES 
When a s 



that the Company will be released from further 
ents made by the Director - Passenger Relations or the underwriters 
n the form of a draft containing the required release. For other" 
articularly claims settled locally, a short form of rplpa.= e m,,<:f v,= 
nd available in printed form in English s"anLh, and P^t^guese. 
xecuting the Release 



ted by the 
ty. Settle- 
pared 



to be used, 



lid 



Jted 



iplicate, 

tne uirector - Passenger Relations, the duplicate tc 
iplicate retained on file at the office where the set 
mailable, prepare the rel 
r the English, or "Snanish 



[f the printed form 
lowing the examples of ei 



SEE FACSIMILE ON NEXT 



950 



PART ONE PASSENGER SALES AND SERVICES PROCEDURES X SECTION 163 



FACSIMILE 



I DELIVERY INFORMATION 



BFtFinif=r= inTEFtnHTianHL. 



d 



^ 



RE TURNED TO THE BRANIFF *GENT) 



FORM 963-70ln0Jl 



INSTRUCC10NE5 DE ENTREGA 



BFtFinif=f= inTERnnTianFiL. 







RECIBO Y EXONERACIO 



N^ IFAVOII PEDia Al RECIBIDOn FIRMAR AM 

J I LAOOS OE ESIE FORMUIARIO EL CUAl 
y ' REGRESADSE Al ASEmE OE BRANIFF) 






951 



APPENDIX B 



B R n n I F= F= B n T E Fs n H T I o n n L . 

PART ONE PASSENfiER SALES AND SERVICES PROCEDURES \ SECTION 



"^mmmimm 



PASSENGER SERVICES - AIRPORT FACILITIES AND FUNCTIONS'' 



Ted in this Section are developed with the knowledge 
Lly alike or have all the same problems or services 



I. INTRODUCTION : 

The recommended procedures 
that no two airports are ne 
to perform. 

The main purpose is to achieve as far as possible a standardization of services so 
that passengers traveling on Braniff International's services may confidently expect 
certain types of services at any airport. 

II. FACILITIES AND FUNCTIONS : 

A. PUBLIC ADDRESS SYSTEM : 

The primary purpose of the public address system 



formati 



«11 






Enunciation and timing detern 
Duncements. Care should be ex 
modulated voice, speak clearly and pla 
speak at a moderate speed. Whene 



naking public address announcements to those who have demons 
assignment. Use of the public address system must be kept t 
ii the announcements reduced to factual information. 



ide directions and in- 

the amount of attention 
ised in making announce- 
y - do not rush through 
ible assign the duties o 
ated a skill in that 



, members of the 

The maximum number of cities to be announced shall be limited in all insta 
with the use of the words "and intermediate cities" when the flight serves 
more than five cities. (When more than one city is served by the same 
airport, all names be considered as one city for announcement purposes.) 

Each flight departure shall be limited to two announcements. In the event 
of advance loading, one additional announcement may be made provided it is 
20 or mora minutes prior to departure time. 



(d) When making referenc 

which are served by two or more airports, 
with "via (airport name)". 

le) Minimize paging of passengers by names fc 



11 be followed 



(g) Minimize the paging of passengers by name to claim reservations. (NOTE: 
Where a carrier's standby procedure requires the summoning of passengers 
to a standby counter, such announcements shall be limited to one per 
passenger. ) 



one per ground 



952 



B^ y^ FS n S F= 1^ " ] 'S i'^ H n H T I €S n 
v.. , ^.t^J^iL.^^.....,..^... /i..^ M.^ 

PART ON'E PASSENGER SALES AND SERVICE". PROCEDURES 



PASSEMaEh SERVICES - ArRPOPT FACILITIES AMD FUWCTIOI^tS 
VI. I. SPECIAL SERVICES: Continued) 
AMBULANCE SERVIC E : 




Each 


airport Ehou! 


Id make 


cert 


;aln 


that a 


reo 


ut 


lb; 


le 


a:nbi 


Where 


passengers r 


nust be 


can 


'led 


or. and 


orr 


t 


he 


pi 


ane 


thlJ 


be done by ar 


1 ambul; 


llluC 


service at 


pas 


se 


n^;i 




s e; 




Ined company 


personr 


,el. 
















GROUP 


MOVEMENT HANDLING: 



















Meet all groups and arranp:e for special services and procesaine without Ir.ter- 
ferrlng with normal handling of other passeni;ers. Make certain that all specla 
arrangements menus, banners, private busses, sightseeing, etc., have been taken 



Arrange for meals on ground as nei: 

(a) If airport lacks suitable rest 
facilities to ho used In such 

Secure hotel reservations for such passengers as needed. 

(a) The local Director or M.ina,ier-PacGen>:er Services at each -tatlon 

shall assume responsibility fo.- m.ilnt.-i Inlng continuous arrangements 
with suitable nearby hotels/notels whirr; such passengers may be 
accommodated comfortably and at a riilnlmiim expanse to the company. 
The Director or Manager - Passenger .;^;rvlcCo will deslgnata a 
Supervisor or Agent-In-Charge for each shift nt each Airport Ticket 
Office to act as follows: ' 

(I) The designated Ticket Office Supervisor or Agent-In-Cfari'e will 
ascertain the number of Inconvenienced passengers and advise 
the Reservations Supervisor or Agent-In-Charge accordingly. 

(II) The Reservations Supervisor or Acent-In-Charge will contact the 
"•^"^ s/motels and obtain the number of rooms available for 

, the Reservations Supervisor 
e availability of train and 
atlon of the cancelled or 

li)The Information requlrerl In (ll)abowe will he furnished to the 
Ticket Office Supervisor or ARent-In-Chatr.G who will notify the 
local taxi cab Dispatcher, and be,-;ln Immediate preparation of 
Hotel-Meal-Taxi Voucher."; (Form 961-1(20166). 

f) In order to assure the absolute minimal Inconvenl en':e , efficient 
and effective advance planning and all required preliminary steps 
must be taken to the fullest extent possible prior to arrival of 
the passengers at the ticket counter. 

reroutlngs as needed over other carriers. 



single i 


ind double 




or Agent 


;-In-Charge 


will detern 


bus services to th 




delayed 


aircraft. 





953 



Fi FS n B F= f= ,^ n T' E Fg 



PASSCNGfR SALES AND SERVICES PROCEDURfS 



SI T I o n Fl L- 






SECTION :6(, 



PASSENGER SERVICES - AIRPORT FACILITIES AND FUNCTIONS 
G. DELAYED ARRIVALS. DELAYED DEPARTURES, MISSED CONNECTIONS, CANCELLED FLIGHTS, Dr\AER5I 



SPECIAL EXPORT PURCHASE PLANS : 

In countries where passengers may purchase goods under special export rcqulat 
airport staff must make certain that this service is efficiently operated for 
and that company baggage regulations are adhered to. 

MISSING TRAVEL DOCUMENTS: 



least possible 



J. PEACE OF MIND LOCAL TELEPHONE MESSAGE : 

When a passenger requests to have a local telephone call made in his bchal 
presented the "Peace of Mind Local Telephone Message" form. The employee 



Form 963-70002 



jm 



Peace of Mind 
Local Telephone Message 



Braniff Style 



954 



B H Bl n B F= F= trSTiEHflFSTiOnFiL. 



mM 



'ir r-ffiar. 



•;-^L:f^En5^S3'p 



l^^^iciM2LiLli.L-£X^ 



irnmmm 



PART ONE PASSENGER SALES AND SERVICES PR OCEDURciS J^ SECTION 1G6 

PASSENGER SERVICES - AIRPORT FACILITIES AND FUNCTIONS 

IX. SPECIAL SUPERVISION OF FACILITIES RUN BY HANDLING AGENTS : 

At airports and in city terminals where because of local regulations or expense factors, 
BI must arrange for outside personnel to perform our handling functions such operations 
should nevertheless be under the supervision r, : at least one full time BI employee. Only 
in tnis way can the best interests f HI anJ - i pis3.--.gcr3 be served and BI standards 
be maintained. 

X. FACILITATION ACTIVITIES : 

Despite the excellence of service performed by BI employees, both in the air and on the 
ground the beneficial effort on our international passengers can be all or partially 
lost by poorly handled or unnecessarily rigid governmental formalities. Consequently, 
the Director-Airport Customer Service, or his equivalent, should maXe certain of the 

cordial relationships with all government officials. Such persons should be constantly 

regulations or procedures. When the latter is found irpossiblcj to correct at the local 
level, the assistance of the Director-Traffic, Dallas, should be requested as needed. 

XI. MAINTAINING HIGH STANDARD OF SERVICE : 

In order to insure a high standard of ser^'ics to passengers and bring direct attention 
of any shortcomings in our procedures/ser"ices , once each week the Director-Marketing 
and/or Director-Airport Customer Service, or their designees, will accompany regular 
passengers through the following functions as they apply to the airport in their location: 

A. DEPARTURE : 

(1) At City check-in, where applicable. 

(2) Ground transfer service to airport. 

(3) Airport check-in. 

(4) Aircraft loading. 

B. ARRIVALS: 

(1) Aircraft unloadi.-.g. 

applicable to 

connection to other carriers 

(4) Ground transfer to city. 

C. INSPECTION OF OTHER AIRPORT FACILITIES : 

At the same time other airport facilities such as Broniff Council Club/Room/ 
Lounge, airport restaurants, etc., public address systems should be chocked. 



955 



B !R n n I F= F= s nT ^ H n iR ^'^^J^^t: 






PART ONE 



PASSENGER SALES AND SERVICE PROCEDURES ! SECTION 166 



PASSENGER SERVICES - AIRPORT FACILITIES AWD FUNCTIONS 



TECHNICAL ACCURACY : ^^^ 

elements are often "PP^™°^\ ^".^^^ ^"^"rformance Considerable emphasis 
r>jnctlon occupies a major role 1" this P^^^°^^^^"„ 3 g^od record^ in this 
has been given to passenger processing, ana we enjoy k, 
phase of our Job. 

H, »ri-Prl tn our technical function. Airport Customer 
(1) Attention Is now ''l'^*=<='^^^, " ""'^.^^.^rat ely tabulating, documenting and 

Service is ^1=°/"?°""^"% ^°^,?""and category . Procedural assistance 



The first step each station mur.t take to effect Improved accuracy is con- 
sistent conformity to procedure. Aj-. Immediate review Is ui r.td of all procedures 
regarding sequence, check-In, manifesting, load tabulating, seat chart prepara- 
tion, advance passanger list, special . assengcr advisory, and seat occupancy- 
message reports. Airport Customer/Passenfrer Manat^ors should Institute a monitor 
program 



checks and follow-up 
raft Willi Its load Is one part of our Job; lechnl 
ind reporting is another. 



Henceforth, this special subject heading, on a memorandum or wire to you wli 
automatically require a report of managerial investigation of procedures an 
practices connected with a reported discrepancy. Replies simply referring 
to missing or erroneous Information will not be considered sufficient; it 1 
expected that all available departure Information will be checked and corre 
lated to determine specifically In what manner performance was belpw the re 
quired standards. 

Our goal is complete accuracy plus on-time performance In a professional se 
producing manner. When your station and your neighbor stations develop th 
required accuracy, performance and service levels will be easier to attain. 

Airport Customer Service Managers may Initiate local station to station Tec 
Accuracy procedures to correct minor problems being caused by a station's f 
to follow standard procedures. However, should no Improvement result from 
this action then the Director of the appropriate department in Dallas, incl 
the Director-Training will be advised and furnished full and complete detal 
pertaining to the problem. .Such Technical Accuracy message must include a 
recap of previous communications sent to the offending station, in order th 
proper follow-up action can be Initiated by all concerned. 



956 



[Appendices C and D, consisting of portions of section VI of 

the Local and Joint Passenger Rules Tariff No. PR-6, are omitted. 

They are on file with the CAB.] 

[Appendix E, consisting of a standard Eranlff ticket and notices to 
passengers concerning liability of the carrier for damage to 
babbage, is omitted. It is on file with the subcommittee.] 



[Appendix F consisting of a poster notifying passengers of limitations on 
Braniff s liability of lost or damaged baggage, has been omitted. It is on file 
with the subcommittee.] 



957 



APPENDIX G 

B n H n I F= F= I n T E HriHTianHu 



Ti^nr=F=ta mftnuHL. 



RESEPVATinns PPOCFDURF'^ 



SECTION 



DIAGNOSTIC/FALLBACK PROCEDURES - COWBOY 



It is necessary that coordinated procedures exist between Computer Operations and 
Offices for detormininq the scope, cause, and duration of downtime. To this end 
following guidelines govern the operation of the parties concerned when CRT sets 
affected by downtime. 

II. DIAGNOPTIC PROCEDURES 

A. The Reservations Agent 



he 
and 


is to report 
the results 


the trouble to the Centi 
of the checks listed. 


After CI 
will be 
office. 


antact 
instri 


is established with the compul 
icted as to any necessary actic 


when replacems 


!nt un: 


Lts are received and inst 
Ttpnance spares are at a 


defect!' 


ve unit 


:s is: 





ive set the !5upei 
Computer Site, advising th 



ite, the Res 



Normal care and attention to packing should be exercised 
piece of equipment. Care must be taken to secure all cov 
of units that have been disassembled for checks. 



and tighten screws 



III. AVAILABILITY 



Dun 

foil 


ng 


th. 
Lng 


= malfunc 
guidelin 


^r:. 


of 

.11 


ag 
go 


vern the 


or comjnunici 
handling of 



of the primary needs for operation of a Reservations of 
ton. Each night a teletype recap of availability status 
1 be sent to all Reservations offices. The office will 
il It receives a new one for the following day. Status 
the recap will be accumulated in Central Reservations Cc 
Brvations office should the need arise. 



fice is availability infor 
for the next seven days 
retain each recap message 
nessages issued subsequent 
itrol and forwarded to a 



The recap will be ordered by flight number and leg within a flight. Eac 
identified by the flight number, class and boardpoint. A closed status 
cntcd by an X in the appropriate leg/date position. Open status will be 



supply of ava 
duty will as 
message. The 



itributed 



possible. 



In a failure condition, the Reservationist will quote availability on the following 
basis until the Quick Reference Availability Chart is issued. Freesale all Draniff 
fliglit segments unless the agent knows from a previous transaction that the flight is 
closed. Once distribution of the availability chart has been made the agent will sel 
or waitlist in accordance with the availability shown on the chart. Request for spac 
beyond the seven day period may be free sold. 



958 



B H H n I F= F= inTEHnnTionnu 



TRFiF=r=ic mnnunL. 



RESERVATiof:? ppncrruREF 



DIAGNOSTIC/FALLBACK PROCEnilRES - COWBOY 



AVAILAIilLITY (c 
For space on ot 



the Reservatic 



Liability from the 

When an office ho 
11 enter the segmer 



If enough act 






intor 



nsact 



described above in A 
the handwritten records will be inp 
ACTION FOR SPECIFIC TYPES OF FAILURE 
A. Single Agent Set Inoperative: 0th' 





Drmal operati 


.on are not av, 


ailab 


le 


the F 


'eser- 


.Is 


at the down 


set, make use 


of a 


vai 


labil 


ity 


;ic. 


Le III and me 


ike a handwrit 


ten r 


ecc 


>rd of 


■ each 


On. 


:e the agent 


set operation 


has 


been res 


itored 


; il 


-ito Cowboy. 













to operational pos 
Tt Set Inoperative: 



Dthe 






Oper 



se of action: 
ing operative 



ing standard telephone operation cent 
aintaining standard telephone operati 
5ts for "display record" and ticketir 



;r traffic through ir 
rticles III and IV. 



c. 


All 


Agent 


Sets at a I 


jQcatu 




itive 




Rev. 




mam 


lal opei 


ration 


as descri 


.bed i 


LOSS 


OF 


ACCESS 


TO 


COWBOY 


RESERVATIONS 





A. Description 

As previously mentioned, 
locations ility to con 
impaired. The method of 
and will vary with the cc 
number of sets, day of we 



of 



ss of access to the Cowboy System means that the 
nicate with and use the Cowboy System is seriously 
ndling transactions remains with the Office Manager 
itions involved in the particular failure, e.g., 
, time of day, volume of business involved, etc. 



1. .-^a: 


Les Agents 


Agent at a "down" set with a call in progre: 
tion with the customer. lie will free sell , 
will sell or request segments on other air: 
er recording same on a reservations card. 






Each Sales 
the transac 
Braniff and 
normal mann 


ss will t 
my segme 


b. 


Do nc 
you a 
conti 
Genei 


>t indi. 

nuity 
-al Sch< 


cate t. 
able 

edules 


o the passengi 
to access the 
actful and un 
and OAG's to 


er that the comp 
computer coordi 

interrupted m>ann 
quote schedules 


uter is "down." 
nate your convers 
er using the Brar 
so that the pass 



are of the comput 



959 



B H H n 1 f= F= 


inTEHiiHTionnL. 


r Tfilpr=^ic mnnum^ ] 


TART FP;T PESFPVATIOflSTnnCFnURF^ X SECTION 5(,/| 



DIAGNOSTIC/FALLBACK PROCEDURES - COWBOY 

VI. LOPS OF ACCESS TO COWBOY RESERVATIONS (continued) 

If it sliould ever become necessary to explain your inability to confi 
reservations, immediately to the passenger you may say, "I am experie 
a temporary interruption with my communication lines to our central c 
puter. This should be corrected shortly. 



The Supervisor on duty when advised that a set is down will 
other sets are down and will make certain that Reservationi 
set follow the procedures explained in B 1 a. and b. above. 

If all sets are down, or too many to allow nearly normal op 

Phase I - Within First Ten ninutes of Failure 



(1) Make ccrto 
procedures 

(2) Distribute 

(3) Determine 



that all Re 



Procedures. 



record forms to al 
ent of failure fol 



NOTE: Phase I is in preparation of a major failure, hov/ever, many types 
of interruptions in service can be corrected during this ten 



Phase II - Between Ten Mi 



(1) Assign per 



nd One Hour of Failu 



lability Charts, 
s records according 



(a) Original sales by flight and by date wj 

(b) Straight cancellations. 

(c) Cancel and resell. 

(d) Added itinerary. 

(f) Other changes to name or passenger data 



thin a flight. 



I - From Notification of Probable Period of Failure 
n overtime schedule for probable period of failure and recovery, 
are down, Reservations should be prepared to perform 



tf airport sets are 
'ost Departure acti 
:ity, if necessary. 



through available 



960 



B H H n I r= F= iriTERnHTianHL. 



TnriF=F=ic mnnuHL. 



?m Fivr 



rrsFRVATiof's PRoririiRE!^ 



SECTION 



DI ACNOSTIC/FALLDACK PROCEDURES - COWDOY 
LOPS o r ACCESS TO COWBOY - AIRPORT TICKET OFFICES 
A. Single Agent Set Inoperative, Other Sets at a Locati 



If only a single agent se 
jltiple Agent Sets Inoperati 



location, follow ins 
;, Some Still in Oper 



If 


the ATO agent sets 
■ these and advise 


Comput 


ivailab 
er Ope 


le 


and 


permit i 


If 


the sets a\ 


railable 


do no 


it pern. 


it 




Dntinued 


^- 


Call Resoi 
be called 


■vations 


and e 


stabli 


sh 


a central pc 



2. Obtain passenger load informat 

3. Pre - Post Departure informati 
All Agent Sets at a Location Inope 



perative ATO set or Rcservat 
made thru the operative set 



tact Reservations and a 
Departure Processing : 



to have traffic relayed through Res 



the City Inoperat 



activities. Rese 
Complete System F 



should be 

PLANNED DOWNTIME 

Occasionally computer downtime will be required to lo 
schedule changes, make hardware or program modificati 
computer downtime is usually made known to the office 
the .late of downtime. In such cases the FTO's must r 
meal counts and other necessary data for flights that 
downtime period. Routine availability status (AVS) m 



Braniff or other airline 

etc. This type of required 
everal days in advance of 
ieve Destination PNL's, 
11 be operating during the 

ecaps will be issued by RC. 



RC wi 


.11 


provide 


non 


age; 


nt 


set 


citi 


Les 


with 






iate 


board] 


Lng mani 


fests 


and 


d< 


tion 


passenger 


name 




ts. 


Non ac 


?ent 


set 




Los will 




'e in a 




ne m; 




however, 


, they s 


houl< 


J be 


aware 


thai 


; te 


letype tl 


raff- 


LC W] 


ill be 


placed 




= ue anc 


repli 


-es 


to airl 


ine ! 


3pac( 


e V 


;ill 


not 


be 




ived 




LI the computer is 






operatic 


)n. 

































961 



B H f=f n i f= f= inTEHnHTiannL. 



TFmF=F=ic mnnuHL. 



PFscrvz-^Tioc? procrpiiPr^ 



SECTION S'i'l 



PI / 'GNOSTIC/FALLBACK rROCL-pURFS - COWBOY 

B KTUR N ni NORMAL Ql'ERATIONS 

Utjon notification that COWBOY is returned to service after a substantial interruption, 

any transaction cleneiits that nay have been in the Agent workinQ area when the failure 
occurred and clear the area for handling the next call. 

When the failure condition has been cleared up. Cowboy must receive all transactions 
manually handled during the "down" time. 

During any recovery period therefore, a few basic sorts of the manually prepared 
reservations records should be made according to type of action required and to balch 
then for entry into COWBOY. The first records to be entered must be any date records, 
eitlier new itinerarit^s or changes, including ticketing. 

All transactions should be entered under normal duty codes. 



962 



APPENDIX H 
B H H n t F= F= inTEFtriHTianHL. 



TFtFiF=F=ic mnnuFiL. 



PESErVATIOfJS PmCEDUPES 



SECTION 



SCHFDULE CHANGE PROCESS 



UPDATING COMPUTER RECORDS 
». Generdi Information 
When a new schedule i 



it 



e is published, which is 

into COWBOY by personnel 
s action will normally ta 



in the Central Reservations Control 
> place during hours when the system 
is entered. COWBOy will take the re- 



(CRC) office 

is in a slack period. When 

quired actions of updating t 

Updating will consist of making changes to all affected inventory records, i^i 
ability records, passenger name records (PNR's) and other general tables. Rea 
modation will consist of cancelling space which no longer exists and confirmin 
passengers on new, or alternate space if available, depending upon instruction 
input by Central Reservations Control (CRC). 

When COWBOY has completed the process of updating and reaccommoda ti on , it will 
all affected passenger name records on the schedule change queue of their resp 
controlling cities, or Central Reservations Control for passenger notification 
the controlling city is either another airline or a Braniff unmechani zed city, 
teletype message will be generated by COWBOY. 



Proces 



Passenger Name Recc 

1 . General Information 

After a schedule chan 
dated to reflect the 
place. The PNR's wi 1 
to reflect their new 
segment is created fo 
segment. 



; entry, all affected passenger name records must be up- 
incellations and/or the reaccommodati ons which have taken 

have their affected segments action/advice codes updated 
tatus. When reaccommodati on has been provided, the new 

the PNR and inserted immediately following the cancelled 



2. Schedule Change S 
CODE 



SC 



s Codes and leanings 
MEANINGS 

PASSENGER held confirmed space on a flight that was cancelled. 
PASSENGER was listed on a flight that was cancelled. 
PASSENGER had requested space on a flight that was cancelled. 
h this new space. PASSENGER 



C. Action/Advice Status Code Changes in PNR's 
1. Segments changed by the schedule change 

a. Holding space, and confirmed to passenger. 

The status codes of the affected segments are changed fr 



Holding space not as yet 
The status codes of the a 



ifirmed 



the passengers, 
nts are changed fr 



963 



B H H n i F= r= inTEnnnTionFiL. 



TRHlF=F=ic mnnuFiL. 



PESEPVATIOfIS PPnCCDURES 



T SECTION 



SCHEDULE CHANGE PROCESS 
[NG COMPUTEP RECORDS (continued) 

c. Priority and requldr waitlisted passengers. 

The status codes of the affected segments are changed from 
PA , PB, PC, PD or DL to WL . 

d. Regular waitlisted passengers (ML) are not reaccommoda ted . 
Protect segments contain the action code "SC." 

jtification of Passengers 

. General Information 

When the process of updating and reaccommodation is completed by COWBPY 
all offices are advised by RC that the reaccommodation process has been 
completed and the affected PNR's have been placed on queue. Agents 
assigned the job of advising passengers will display the PNR's from the 
schedule change oueue. The normal display sequence would be in ascending 
day order. Central Reservations Control (CPC) may, however, specify a 
given priority for notificaiton which will change the display date sequence. 
In this way, certain critical dates around holidays may be cleared first. 



notifica 



conducted 



following acti 



Confirmed (Holding) Passengers 
WK segments should be removed fr 



SC segments should be changed to HK, using the change segment status entry 
whenever the passenger accepts th'e reaccommodation. ,If the passenger does 
not accept the reaccommodation, the segment should be cancelled. 

Listed Passengers 

Only those passengers with a waitlist priority will be placed on queue for 
notification. In the normal case, the affected segment will have a status 
code of WL and the reaccommodation segment will have the original segment's 
status code. If the passenger accepts the new space listing, the old (WL) 
segment should be cancelled with the pancel segment entry. 

NOTE: Occasionally, while a PNR is on the notificatic 
passenger may be confirmed. In this case, the 
have the status code of KL. 

Miscellaneous Actions 



itinerary segment continuity. 

When local contact is possible, the agent must assist the passenger in 

securing alternate reservations when none are provided through reaccommoda ti 

This could be for one or more segments or for connections which are no longe 



If the controlling city is either another airline or a Braniff 
city, a teletype message will be generated by COWBOY. 



964 



B n H n I r= F= inTEHnHTionnu 



TnHF=F=ic mnnunL. 



RESEPVATinnS PPOCEDUPES 



SCHEDULE CHANGE PROCESS 



OTHER AIRLINE SCHEDULE CHAriRES 



schedule change teletype notification n 
^es the affected PNR, chanoes the status 
;erts new segments as required, and ente 
's PNR queue with the prefacing message 



received hv COWBOY, 



1 PN I76F 15JUN DALDEN HKl 1240P 1 20P 

2 CO 96RA 15JUN DENMKC HKl 500P 757P 
GEN FAX SSR OTHS BN ASC C0968 1730/201 

EX . b . - Flight Change 

1 BN 235Y 15JUN TULM5Y HKl 1025A 105P 

2 NA 3ftY 15JUN MSYMIA UNI 500P 945P 

3 NA 36Y 15JUN MSYMIA KKl 500P 945P 
GEN FAX SSR OTHS BN NA36 1700/2145 



1 BN 134F 15JUN MKCMSP HKl 740P R46P 

2 NW 23CF 16JUN M5PJFK UNI 640P 955P 

3 NW 230F 16JUN MSPEWR KKl 640P 955P 
GEN FAX SSR OTHS BN NM230 1840/2155 



965 



APPENDIX I 



NO CMAN»I ON THIS PAftt. 



C.T.C.fA) NO. 53 C. A.B. N0.142 



Airline Tariff Publiihcrt, Inc., Aqent 

LOCAL AND JOINT PASSENGER RULES TARIFF NO PR-6 



SECTION VII- REFUNDS AND REKOUTINGS 






fare and charges appllc 
by the used portion of 

Or: 

Reolacement Ticket 


Appl 


use the transportation cove 
lost will, at the passeneer 
verification of the issuance 

Icatlon for Refund 




Tine l.lmlt. Relund win be 
lost" ticket. 


(c) 




(d) 


in writing to carrier that 



filed in general off 
must be made on form 

made In less than 12 



ler for any loss which It may sustain by subsequent refund or 
In connection with the lost ticket. 

service charge of $5.00 per passenger will be Imposed for handling 
f a lost ticket. 



such refund or replac 
Exception: No service charge will be imposed for military passengers 

wheo transportation Is paid for with a U.S. Government 

Transportation Request (Form No. 1169). 
CF) Personnel on Emergency Leave . (App 1 Icable to TS .AA . BN ,C0 , DL, EA ,FL, NA ,NC, NW,OZ,PA,TW and 






iry 



xecuted DD For 
the original t 



Form 1580. 



REFUMDS INVOLVING FOREIGN CURRENCY 



ible under these rules depends upon the amount of t 
. and such aaount was paid in a foreign currency In 
Iff, EA or WA will, for the purpose of conputing th 
3 of exchange as was applied la conputing the origl 



fare and charges paid by the passen- 
:cordance with the proTlslone of this 
mount of the refund, apply the saae 



EFFECTIVE: JULY 11, 1973 



CORRECTION NO. 5M8 



966 



APPENDIX J 

B Ft Ft n I f= f= irtTEFtriFtTianFti- 



Wf=(mf?F=jE manuFim 



'ART 0N[ PASVEfir.tR SALES AND SERVICES PROCEDURFS 



SECTION 186 



REFUND PROCEDURES 



I . GKNERAL INFORMATION CONCERtJING REFUNDS: 



ThG prompt refunding of unused transportation is an important part of passenger service and 
no effort should be spared to expedite all such valid refunds. Draniff International's 
reputation for efficient passenger handling is characterized by the efficiency or the in- 
efficiency of refund procedures. Accordingly, close adherence to instructions contained in 
this section will prevent much of the ill will, error and delay in this important function. 



TYPES OF REFUNDS: 



one of the following fou 



B. DEFINITIONS: 

{!) "Involuntary Refund" means a refund when any one of the following 









Jatinn--, for which the passenger 
passenger was destined or ticketed 



(2) "Voluntary Refund" moans a refund of ^t\ unused tickc 
paragraph (1) above. 



a pas! 
J conf 


senger 
irmed i 


r^se^; 


:alor 


phySK 


.al 




3US L-h< 


arges 



11 . REFUND APPLICATIONS: 



rcof, suhjoct to thn provi«^ions of paragraph XVIII. 
cjrcncc due a par^scnqct on cxchanqc of unused coupons 



rodit, or 



967 



B H H n I F= F= I riTEnnHTia n h l. 



irmemmic mmyuFim 



PART ONE PASSENGER SALES AND SERVICES HROCEDURES 



1 



SECTION 



REFUND PROCEDURLS 
U. COMPLETION OF TICKET RKl'UND APPLICATION (Form N o. 961-735087) 
(1) Fa 




to a refund (other than a lost ticket refund - sec pnraqraph XVIII), that Is 
sent to the Passenger Refunds Departnont, Dallas, for handlinfj, and v/as origi 
paid by cash, chock or GTR. The form shall be completed by the insertion of 



ame of indi 
nd Street - 



r company to 
address to v.h 



:fund 






applicable squ 



[f flight coup 



ttcd by 



coupon, date of flight and flight number. 
(g) Reason for Refund - place an "X" in the anplicable square; 

(1) From - enter city code ef origin ■-here refund appl 



(2) TO - enter city 


;■ ,tion whe 


e refund 


If "other" checi 


: i.on for 


efund rcq 


Voluntarjy - Involuntarj; - ; 


.:, Llie app 
L . •• und appl i 


icable sq 


This must be comploteil on j., .. 


at ions. 



/a 1 Ida to with 



968 



B n H n I F= F= inTEFinnTinnnL. 



mi^mm^mmmmimmmiiimtm 



PART ONE 



PASSENGER SALES AND SERVICES PROCEDURES 



REFUND PROCEDURES 



REFUND APPLICATIONS: (Continued) 


C. DISPOSITION OF FORM 964-735087: 


(1) This document is 


1 a three part snap-out form to be distributed as follows: 


(a) Original: 




(1) 






coupons securely to this copy and forward via board mail 
to Passenger Refunds Department, Dallas, Mail Station A117. 


(2) 


If the request is for a refund of a difference on a reissue/ 
exchange transaction, attach Original to auditor's coupon 
of new ticket along with exchanged flight coupons and include 
in daily sales report. NOTE: These documents are to be 
placed Jt the back of the report and not aligned in numerical 




sequence with other auditor's coupons. 


(b) Duplicate: 


"Passenger Copy" will be ijiven to the passenger as a receipt 
for his unused documents surrendered. 


(c) Triplicate: 


"Station File Copy" shall be retained in the station file for 
a period of six months. 


CREDIT CARD REFUNDS 




A. Form 964-735046 (Tran 
refund of a ticket pa 
commercial/bank credi 


isportation Credit), shall be used when a request is made for 

:id by an airlines' UATP card, Braniff credit card, or any 

t card, (American Express, Diners Club, BankAmericard, etc.). 



This form shall be prepared 
Paragraph B above, except th 
machine onto the Transportat 
refund shall be printed in t: 



Tformation pertaining 



If the customer asks how n 
total should be computed ; 
Credit form. Give the ori 
3, 4 and S, along with the 
for expedited handling. 



the same manner as the 
the UATP/credit card sV 
\ Credit form. Pertinen 
spaces provided. 



uch the refund will be, the amount of fare, tax and 
nd shown in the spaces provided on the Transportatic 
ginal copy to customer as his receipt, and send copi 
supporting ticket coupons, to Dallas Refunds - A-11 



(2) 


When th 


le customer d( 




the "air 


lount" boxes, 




Later, 


if time perm: 




remain! 


ng Transport. 


(3) 


If time 


is not aval: 




then th 


e transactioi 


The 


unused t 


icket coupon; 


pass 


enger th 


e original cc 


Dall 


as. If 


an adjustment 


and 


boarding 


pass should 


expl 


anation 


of the circuj 


Dist 


ribution 


of Copies 



re abo 


ut the amount of 


refund, compl< 


origi 


nal copy tc 


) the < 


:ustomer as his 


; and 


insert the 


appropriate amounts 


;opies 


, and process in 


the normal mar 



:apled 


to the 


Transportation Credi 


.t, af 


ter qivinc 


■ceipt, 


and f. 


srwarded promptly 


to 


Refund Departmt 


:oupon£ 


i previ. 


ously lifted, the 


Pa£ 


isenge: 


rs Coupon 


1 with 


the Tr, 


ansportation Credj 


i (■ , 






refund 


shown 1 


on the Transportat 


nor 


. Cred: 


It form. 



Original (canary) - To pas 
Duplicate (blue) - For loc 
Triplicate (pink) ~1 
Quadruplicate (white) 
Quintuplicate (yellow) 



To Refund Departme 



969 




R£FUMD PROCEDURES 



CREDIT CARD REFUNDS (Continued) 
F. Facsimile 



D .o..~..-. 


D'N 




"•-T^T^ 


t"nTport"",o:c»?o,t 








"^^ 










a '". ... 






a o.-.. 


TO tO..T»»Cto« 
















• 1 




I°" 




^ 








■■■ 


;■"■ : 1 


.... 


"'"■" 


,M>.l..,...» CO.fLtU ...P.. t 


i| 


"•■"1 













I; 










1 




; 


; 






|.-:ri;- 


... 


..... 


„^rp"~l.. 




......o,.... i 



IV. REFUND PAYEE 



When a ticket or misc 
should be paid to the 
upon satisfactory ide 
]udge 



harges order is presented for refund, the refund normally 
but if another person presents the ticket for refund, 
refund may be paid to such person. Obviously, good 

andling such cases to be sure that the refund payee is 



unquestionably the passenger or proper person to r 

the time of application should normally indicate tl 

the refund payee should be required to prove that 

that there is satisfactory relationship to the passenger as to avoid making re 

the wrong person. Listed below are guidelines for handling certain refund req 



the refund. Circumst 

should there by any 
inally paid for the t 



per 



icket 


sold 


by 


the agent may be i 


efund 


;d to 


from 


:he pa 




nger. He 


wever, cc 


ution 


shou 


agent 


to be 


su 


re that 


he agent 


has e 


ther 


is fi 




lly 


capable 


of doing 


so. 


n 




int of 




callable 




n mus_ 


t_^ 



(2) Payment to One Member of 
entire refund of tickets 

(3) Refund to Travel Agents : An unu 
the agent without specific direc 
be exercised in making refunds t 
already refunded to the passenge 

making a refund to a travel agen 

always deducted from the amount of the refund , and payment made to the agent for 
the net amount. Braniff tickets issued by a travel agency may be refunded to 
the passenger unless restrictions are shown on the ticket. 

(4) Refund Against Government Transportation ; NO voluntary refund can be made to the 
passenger on transportation originally purchased by a United States G.T.R. or a 
state government voucher. When a passenger submits such tickets for refund it is 
extremely important that the 5TR or voucher number appear on all copies of refund 
applications. 



970 



B Fi H n B F= F= inT^nnHTiannL. 



mmi^^m^m^mmmMmm'^mJmm: 



Part One Passenger Sales and Services Procedure': 



1 



R£FUND PROCEDURES 
V. CONSIL/ERATION AND ACTIONS TO COMPLETE A REFUND APPLICATION FORM 
A. APPLICATION MADE IN PERSON, BY PAYEE OR HIS AGENT 

sed flight 



Lift the passen 
of the MCO's, e 
complete data. 



documents for possi 
jfund application form as 



requ 



Dfun 



3ffl 



the payee where it must be sent and t 
fund will depend upon circumstances su 
fice, the location of the payee, amoun 
ether refund must be made by another c 
rrier, billing dates and procedures of 



ore application is filed expla 
e time required to receive the 

esearch that may be required, 

or requested from another 
t card companies receiving our 



follow-up may 



(5) Refunds should be made "on the spof unless restricted, sue 
pay-later, currency of another country, etc. 


h as credit cards. 


APPLICATION MADE BY TELEPHONE 




(1) Suggest that, if possible, the payee appear in person at th 
order to gain time and bring his unused ticket with him; or 


e ticket Office .n 


(2) Have the payee send a representative with the tickets, (if 
refund is not restricted) authorized to receive the refund 


it is believed that 
on behalf of the 



payee; or, _ 

;3) If the payee or his agent cannot come to the office, instruct him to mai 
them in with the request for refund. Upon receipt process in normal man 
mailing the refund check or a copy of the application to the payee, advi 
that check will be forthcoming from the Passenger Refunds Department. 



C. APPLICATION MADE IN WRITING 



3ed ticKets or orders did not accompany or 
rby , telephone; otherwise write applicant 
t or mailed in promptly. Then proceed as 



ginal request and if appl 
squestinq that documents 
n sub-paragraph (3) next 



s ponding passenger's 



Refund: 




Tickets Where Coupons Have 


Become Segara' 


ted 


When an appll 
ision of the p 
identification 

isly Lifted 


cant 
assei 

When 

IB 

rtmer 
to SI 




present 
coupon 
substai 

Refund: 


of 


, flight coupon for refund and is not 
the ticket, he should be required to 
te that he is the passenger named on 


fun 
the 

;n P. 


DOSses 
11 sh ] 
ticke 


ig( 


such coupon will be missj 
refund, where permitted, 
the facts. Otherwise, st 
Dallas, for handling. Li 


trip short of destinat 
Lng since it was lifted 

m.iy be made if the ref 
!nd application to the 
ift passenger's coupon 


Pasi 
and 


of a given flight 
origin of flight, 
ing office can subs 
5enger Refunds Dopa 
boarding envelope 


il' 

It, 
)p- 



(3) Cancelling Refunded Tickets Ticket offices making 
refunded tickets "Refunded", followed by control poi 
immediately upon effecting refund. 



should stamp 



Lost Flight Coupons 



paragraph XVIII. 



971 



B n n n I F= 




REFUND PROCEDURES 



PREPAID TICKET ADVICE 



IRE TRANSPORTATION) 



rident 
iets a 



vices (PTA' 



as Charges Order 
prepaid passeng 
2 not refundable 



Lling office shoul 
cancellation of t 
lie in accordance 



sued at the purchaser's request 
tickets/MCO's issued against 
the passenger except under in- 
al circumstances upon authority of 

contact the ticket delivering office 
2 transaction and authority to refund, 
ith one of the following: 



Issued Aqa 



icket 



the delivering 
to the selling 
PTA NO. 



n issued against the PTA, 
send a teletype or wire 

YOUR AUTHORITY TO REFUND 
ached to the canceled PTA 



filSd-TTT 
nority to 
Dpy of th< 



mark the PTA "Canceled" and 
irming "NO TICKET ISSUED THI 

3f this message should be at 

the delivering office tiles. The selling office upon receipt of the 
refund shall refund to the purchaser or apply for refund and attach 
e wire to the duplicate copy of the refund draft or to the refund ap- 
If the refund is made by selling office, a notation will be made on 
jffice copy of the MCO cover sheet. 



n a PTA IS sent on behalf 
m 964-930022, PTA Refund 
horizing refund of the un 
MCO, it may be voided. 

horization to Form ATC ]0 



3f an ATC 
uthorizati 
sed PTA. 



sppoi 



2l agency. 



les report, 
Dr forward t 
ith Transpor 
For parti 



all be mailed t 

already report 
taching the PTA 

PTA Refund Authorization 
tion Credit (Form ATC 130 

refunds, see Par. VI, C. 



o the agency 
yet reported 

ed the MCO 
Refund 



Lti_ 



Locate 



the dell 

does not desir 

immediately by 

the PTA be can 
with tl 
Refund; 



\\ at Passage by 



When 



s unable to contact the passenger or the pas 
nsportation, advise the selling office of thes 
he selling office will then contact the purcha 
vering office with additional information or r 
be canceled and/or any ticket issued returned for 

above procedures. 
Against Prepaid Order Receipts : No refund should be made agai 
paid order receipt or the passenger coupon of an MCO which may have 



the purchas 
2 PTA'S: In 



Tic 


:kets Issued Against PTA'S 


(1) 




(2) 


wire but have not yet been 
ticket including the auditc 
refund the PTA, as in sub-f 

Surrendered by Passenger: 



the passenger coupon of 
PTA's are refundable 



If ticket 

s coupon 
paragraph ne 



the passenger 



g offic 



refund JTI 
2type mess 
-ard with 



issued and now in our possessio 
mount)". The delivering office 
o the flight coupons which shoul 
ter of transmittal to the Passen 
ng office will make or apply for 

copy of the teletype message to 
r refund application, as applica 



issued against the issue 
Accounting Office, the 
ided and authority to 
nt to the selling office. 

ticket has been issued and 
nay contact the passenger 
ht coupons, a teletype 
ice: "Re PTA No. 
n, this is your authority 
shall attach copy of the 
d be marked canceled and 
ger Refunds Department, 
refund of the canceled 
the duplicate copy of 



^mmmmimmmi^^m. 



i 



n. PREPAID TICKET ADVICE - (ISSUE WIRE TRANSPORTATION) - HEFUNDS: (Continued) 
REFLTND PROCEDURES 



PTA REFUND AUTHORIZATION 
Form 964-930022 



BnFiniFr= inTEnnftTianHL. 



THIS IS AUTHORIZATION FOR 

TO flEFUNOPTA/MCO« 

PASSENGER 



k REFUND AUTHORIZATION 

_^ AGENCY, CODE NO 

_: : ISSUE DATE 



REFUND AMOUNT FARE S _ 



E COPV TO AGENCV. 



973 



B Ft n n I F= F= I i i IT ^ fi n jR T 3 a rs j^ B. 



■ SECTION 

Papt One Passencer Sale; and Services Procedureg 



R£t-UND PROCEnUREB 
VI. PREPAID TICKET ADVICE - (ISSUE WIRE TPANSPORTATION) - REFUNDS 
B. Tickets Issued Against PTA's cont. 



(3) Refusal of Passenger to Give Up 



Where ticket has been delivered 

'it'must be retrleved^Trom him before refund can be authori 
';;;senger refuse to give ^P^^i'^^;^^/"!^;;^^'' jj^^^i'^^he^purchaser 
•urn^of ticket. Under such circumstances, passenger may use th 
'transportation stated thereon, but of course, under basic PTA 
i, any refund can be made only to the purchaser. 



(4) Ticket Lost In Transit Pet 



Offices: Whenever the 



Upon 


receipt 


of 


the "d 


ittc 


refu 


id to t> 


; pu 


■chase 






differe 




PTA. 


I'h 


by a 


copy of 


the 


PTA mess 


the 




ions 




e r 


loca 


. draft 


to t 


he sel 


iin 


refund appli 


cati 


on on 


beh 



. . afund and it is defi nitely established that the ticket has been lost, regular 
ost tickets procedures will apply. (See paragraph XVIII). 

.al Refunds: If the value of transportation issued is less than the value of 
^TA — an MCO should be prepared for the refundable difference by the ticketing 
:e.' This MCO must be issued in conjunction with the pass-.nger tickets and must 
,own as a coniunction ticket on the passenger ticket. This "difference MCO 
be transmitted as a PTA back to the original selling office. The PTA must 
r to both the "difference" PTA number and the original PTA number. Example: 
CHIRPBN 

HOURPBN , ^^, „„ 

PTA 002011 - 123456 for partial refund of S20.00 tax $1.00 total $2K00 
conn with orig PTA 002011-654 321 form of pay check psgr 1 Smith/John 

■rcnce" PTA message, the original selling office will 
■ make application for refund, as applicable, refunding 
. local draft or refund application will be supported 
igo. If the original PTA was issund by a travel agency, 
^ceiving the PTA for refund will either (1) issue a 
J agency if form of payment permits, or (2) submit a 

alf of the agency or purchaser if form of payment is 

redit cards. Authority to make partial refund on sales report 
will 'not be sent to the travel agency as is the procedure on unused PTA's. 

VII. CURRENCIES OF PAYMENT AND CAUTION REGARDING RESTRICTED CURRENCY AREAS 

refunded only in the currency of payment, 
lunerica shall be made only in such country, 
rrency, refund may be made in U.S. currency 
iy country provided the office where it is 
rrency and no restriction on such payment 
fund request for a ticket paid in cash is 
cy or the currency of the country where 

sent to the Passenger Refunds Department, 

REFUNDS WHICH MAY RESULT IN UNLAWFUL PASSAGE 

Do not make a refund or give the passenger the impression that a refund is due, if 
making the refund would result in any portion of a ticket which has already been 
used, or to be used, becoming a ticket covering a sector over which BI does not have 
traffic rights (Cabotage privileges). However, it might occur that a partial refund 
could be made on a ticket from some point beyond the last prohibited point, in which 
case, the refund application should be filled out and annotated accordingly, calcu- 
lating the used fare as that applicable to the point beyond the restricted point. 
Example: A ticket issued for passage from New York - Miami - Buynos Aires (with 

passage from New York to Miami, which is prohibited; however, the portion from Panama 
to Buenos Aires is refundable. 



Unless otherwise prov 


ded, ti 


ckets 


are to 


b 


Refunds in 


a currency 


of a cc 


untry 


of South 


If a ticket shows pay 


nent in 


cash 




c 


when the t 


cket is pr 


ssented 


for refund i 




presented 


or refund 


IS operating 




c 




that parti 




untry 










other 


han U 


S. cur 


re 


the refund 


request is 


submitted, i 


L shall 


b 


Dallas. 













974 



B n H n I F= F= in TEHnHTSongiL- 



mmM^mfmt=^F^immnnui=fm 



Part One Passenger Sales and Services Procedures 



SECTION 



REFUND PROCEDURES 



REFUNDS 
Where th 



MAY RESULT IN DEFEATING THE PURPOSES OF IMMIGRATION LAWS AND REGULATIONS 



of the coupon coven 
Lion authorities wou 
Immigration and Docu 

TARIFF CHANGES: 



>£ any co> 


jntry requ-r. 


e th^ 


3t an alj 


Len vi 


.SJ 


5 refund of such tram 


spori 


tation may be 






Jthorities. 


For 


example 


, U.S. 




Lded they 


hold ticket; 


s to 


leave Peru. 


Ac 


;1 out of 


Peru withou 


t pr. 


Dpcr autl 


■lorizat] 


:itute a violation of 


the 


Peruviai 


1 Immi 


q' 


>n Manual 


will indica 


te wl 


len such 


requirt 



The prope 



ount of refund as the 
refunds can be made o 
the proper refundable 



nge 



ily 

; si 

Drder to avoid any miscnde: 

UNUSED PORTIONS OF TICKETS TRANSFERRED TO NEW TICKETS 

In the case of interruption or revisions of the passenge 

the revis 

full 



to the Passenger Refunds Depart. 
REISSUE) 



of ticket; 


s should be applied to ) 


lew tickets 


if th( 


ticket. 1 


Do not under any circum: 


stances, unl 


ess s( 


the passei 


ngor to pay for his new 


ticket enti 


rely i 


unused coi 


lipons loft of his origii 


nal tickets 




of his nei 


J tickets. Any balance 


due the pas 


sengei 


the point 


where the new ticket i: 


5 issued (un 


iless 1 


in a difference duo the passenge: 


r, then the 


procec 


refund o 


f unu.'sed fliqht coupons 


would apply 


Th< 




of a Local Draft (see P. 


aragraph XX) 


or a 


Credit sh. 


ould be prepared. When 


a applicatic 


.n or c 



unused portions 
requires a new 
assenger, requir 



ind Applicatic 

Lt form are pr 

important that both the now and original ticket numbers show on the 

Report is prepared, these documents shall be placed at the back of 
aligned in numerical sequence with other tickets. This will enable 
of the refund by Passenger Refunds Department, Dallas. 





36 made by the 


1 or 


a Transportat 


;pared, it is 


app: 


lication, and 


the 


Daily Sales 


;he I 


report and not 


speedy processinc 



REFUND OF OPEN DATE TICKETS AND MCO'S 

Open date coupons and MCO's normally may be refunded, without any check-up as to 
the possibility of a reservation having been made. However, should the passenger 
indicate to the person handling the refund that a reservation was made, the reser- 
vation should be canceled. 

REFUNDING TICKETS WITH CONFIRflED RESERVATIONS 

When confirmed tickets are presented for refund before departure, make sure that 
cancellation procedures have been complied with in respect to all sectors affected 
on the coupons being refunded. 

TICKETS OF DECEASED PASSENGERS 



IVhen appli 
deceased [ 


portation 
administr; 
shall be \ 
Deceased" 



Dn for refund is received 

to the time the ticket is 
red thereby 



Trough Pas 
>hown on t 



Gts issued to a passenger who became 
r prior to the completion of trans- 
application for refund should be executed by the 
Df the estate of the passenger. All such refund requests 
iger Refunds Department, Dallas. The words "Passenger 
refund application. Advise the party surrendering the 
» made payable to the estate of the deceased. 



975 



B H f9 n i f= f= inTEnnHTiannu 



mi^m^m^^^Wmf^M/^mMirnmnuMm 



One Passenger Sales and Services Procedures 



1 



SECTION 



REFUND PROCEDURES 

TICKETS ISSUED AGAINST LOCAL CREDIT OUTSIDE THE UNITED STATES 

Whenever a local office has been given specific approval by the Country Vice President 
to i38ue transportation on a short term local credit arrangement, all such tickets 
must show "STLCR" in the form of payment box. Such tickets cannot be granted an immed- 
iate refund and must be submitted to Passenger Refunds Department, Dallas, for pro- 
cessing, except where refund is requested from the selling (issuing) office. In the 
latter case, if the issuing office records show that the ticket has been paid for, 
refund can be made ijrunediately ; otherwise, procedures in paragraph A or B below should 
be employed. 

A. PROCESSING BY ACCOUNTING: 

Upon receipt of a refund applica 
issuance was against "STLCR" (sh 
Dallas, will forward authorizati 

D. PROCESSING BY ISSUING OFFICE : 

If payment has not been made and Refunds Department, Dallas, forwards the transacti 
to the issuing office, such office will first check to see if payment has been made 
and merely not yet reported, in which case a refund check may be made immediately. 

(1) Payment Not Received ; In the event that no payment has been received the 
issuing office will immediately investigate with the purchaser and seek 
payment of all used portions of the ticket, or if no portion was used merely 
cancel the ticket issued without a refund being effected. 



which is attached a ticket indicating t 
m local credit). Passenger Refunds Depar 
efund to the selling office. 



C. RECALLING COMMISSION FROM AGENTS: 



ed by travel agents. 



(LAD 

REFUNDS PAYABLE ONLY BY THE REFUND DEPAIITMENT, DALLAS 

The following types of refunds may not be made by Ticket Offices: 

A. Any ticket issued against UATP, Pay-Later- PI an. Short Term Local Credit, or any 
other type of credit cards. On reissue transactions where a refundable balance 
results, an MCO for further transportation may be issued, or the refund may be 
applied for. 



Any ticket presented at other than original 

currency notation (refundable only in 

is suspected of being restricted. 

Lidatod, unless p 



ssented to the issuing office and the 



Any ticket which has been reported lost or stolen. 

Any ticket which bears the appearance of forgery or alteration, 
or which shows signs of non-authenticity. Such tickets should 
endorsed without authorization from Ravenua Accounting. 



Any ticket issued by another carrier 



ith the 

identify himself satisfactorily as t 
it qualifies under Paragraph XVIL be 



976 



B H Ft n ii= f= inTiEHnnTianHi- 



TFiF9Fr=ic mnnuHLk 



Part One Passenger Sales and Servicf<^ PRnrFniiRFS 



I 



SECTION 



REFUNDS PAYABLE ONLY 



Rf:FUND PROCEDURES 
THE REFUND DEPARTMENT, DALLAS 



cket wher 



be det 



ined what the proper 



It of 



iind is. 



Any ticket issued against a PTA issue wire or any MCO pert 
refunded only in accordance with Paragraph VI, B. Otherwi 
payable only by Refund Department-Dallas. 

Any ticket issued to a passenger who is deceased when the unused ticket is presented 
for refund. (See Paragraph XIV.) 



Any ticket issued by a foreign 
Any ticket/HCO whose validity 



2pt for 



jluntary rea 



REFUNDS PAYABLE BY TICKET OFFICES 

Subject to the restric 
to make local refunds. 



ictions in Paragraph XVI, and provided the ticket office is authorized 
s, and the refund payee properly identifies himself, immediate 

fund of totally or partially unused tickets up to $500.00 may be effected in accor- 

ncQ with governing tariffs, as follows: 



ncy. 



checks 



rtifi 



Any Bran 
time by 
refunds 



aid by check may be refunded by any domestic off 
;al draft to the passenger via U.S. Mail. Over- 
issued, except to passengers who are well known 
2 cases the draft must be signed by the manager 



Upon 
will 
not b 



ises where the 



raft to be mailed, the passenger 
-735087). A Refund Application 
;fund cannot be issued locally. 



(2) The accounting copy of each loc 

noted "Mailed by ^, date 

whether the draft was mailed or handed to the passenger 

Any Braniff ticket showing form of payment as "Ticket-By-Mai 
refunded as in "B" above, provided teletype authorization is 
selling office. The teletype authorization must be attached 
accounting copy of the local draft along with the unused ticl 



(TBM) may 
jtained frc 
) the yellc 



funded to the issuing 

refund. The amount c 
funded, determined by 
ttom of the "Fare Calc 



ivel agency may be refu 
ff ticket, unless a res 
relunded to the issuin 

Lssion to be deducted i 
rcentage rate shown in 
■\" column of the ticket 



be deducted from th 
a percentage of far 
he "Total Fare" box 



Other airline tickets may be refunded for sectors made out for 
when the issuing carrier does not have an office at the locati 
reasons to provide the passenger with funds to travel by other 

Exception - All ticket offices may refund downgrade in class c 
$20.00 regardless of form of payment of the ticket. 



r involuntary 



977 



B H H n I F= F= inTEHnHTiannt. 



^ji=ilRP=F=imm 



Part One Passfngfr Sai es and Services PROCFmiRFS 



SECTION 



RKFUND PROCEDURES 



EFUNDS PAYABLE BY TICKET OFFICES 



en flight cancellations, delays 
t cannot, for some valid reason, 

rd transportation on another 
■Ml office at the point where 
; necessary to permit the passenger 
to continue his travel, if he does not wish to wait for or cannot be accommodated on 
another flight. Envelope Form 964-735077 may be used for certain types of involuntary 
adjustments (see Paragraph XXII) . 



itary refunds may be made by all office 
?rsales occur and the unused value of a ticket 
3 as the basis for partial or total payment for 



RESTRICTIONS - However, if th. 
(endorsed "Refundable Only In 

ticketed originally. Inform : 
place where purchased. Likew 
siderable amount in the case of long-haul 



ket has been issued in a restri 
..."), only the minimum refund 
point where they can continue 
persons that the balance must h 



ihould be given 
:heir journey as 
• refunded at 
I a refund of c. 
funds should b. 



the 



ticket' 



lue to reach the next point where the flight 



I. Where a bonafide case of extreme emergency is established and the filing of a refund 
application through the Paiisenger Refund Department, Dallas, would take an undue lengt 
of time, the local office Ho which the application is made may make the refund upon 
authorization by Refunds Department, Dallas. 

REFUND OF LOST TICKETS 

A. All refunds of lost tickets are to be handled through the Refunds Department, 
Dallas, unless the office reporting the loss is authorized by the Refund 
Department, Dallas, to make the refund. 

B. Refunds will be computed on the refund value 
value of the lost coupon plus any applicable 



are governed or restricted 



Ae£U 



for Refund of Lost Ticket: 



Form 964-735034 must be completed and forwarded to Pass 
Dallas, before consideration can be given to refund a 1 
tremely important that if the lost ticket number is not 
under the "Lost Ticket Identification" on the applicati 
items on this form to be completed are self-explanatory 



be completed. All 



(1) 



Original - 


■ To Passenger Refund Departm 


lent, Dallas 


Duplicate 


- To passenger (unless free 


replacement 



Triplicat 

FREE REPLACEMENT OF LOST TICKETS 

When a passenger loses a 
ment ticket, a free repli 
the following procedures: 



978 



B H H n I r= F= inTEHnnTiorsHi- 



TRBF=F=ic mnnuFiL^ 



Passenger Sales and Services Procedures 



REFUND PROCEDURES 



FREE 


REPLACEMENT 


OF LOST 


TICKETS 


A. 




ify 


Ori 


qinal Pu 


irchi 


ise - 




los 






t until 







no circumstances w 
should apply to th( 
determined by one < 



jmber has bee 
rline's lost 



ing 



The Ic 



iff 



itablished. Under 
;et. The passenger 
;t number may be 



the following methods: 

(1) If the lost ticket was paid by check or credit card, the 
show on the passenger's cancelled check or passenger's c 

(2) Contact selling cffice to check their sales records. 

(3) Contact Revenue Accounting - DAL, furnishing date and of 
flight and date of used portions of lost ticket. 

(4) It all of the above procedures fail, the passenger will 
new ticket and apply for refund on the lost ticket (Form 



of ticket 

to purchc 
■735034) . 



(1) 


A service charge of S5.00 per passenger will be assessed for lost ticket re- 




placements in accordance with Rule 395(E), P.R. 6, and Rule 16F, lATT. 


(2) 


The S5.00 will be collected at the time the replacement ticket is issued. 




No discounts of the service charges arc permitted. 


(3) 


Any form of payment accectable for regular ticket sales, in accordance with 




Section 135-136 of Part One of the Traffic Manual, mav be collected for 




the service charge. 


(4) 


The notation "Lost Ticket Replacement/Non-Refundable/S . C. S5.00" will be 




shown in the form of payment box of the replacement ticket. Do not include 




the service charge in the "fare" or "total" value of the ticket. The lost 




ticket number will be shown in the "Issued for Exchange For" box on the re- 




placement ticket. 


(5) 


No refund of service charge once collected is permitted. 


(6) 


The service charge will be reported separately on the Daily Sales Report. 


C. Fori 


n 964-735034 shall be completed in same manner as XVIII. D. above except 


rep: 


lacement ticket information shall be shown in the space provided and the 


application must be signed by the agent issuing the replacement ticket. 


(1) 


Distribution of Form 964-735034 : 




Original - Attach to auditor's coupon of replacement ticket and 




include in sales report at no value. 




Duplicate - Destroy this copy. 




Triplicate - Retain in local file. 


LOCAL DRAFT 


When it 


has been determined that a cash refund may be given. Local Draft Form 


966-942001 will be issued. The following procedures apply to the issuance of 


Local Dj 


rafts. 


A. Only those employees authorized may be designated to sign Local Drafts 


upon written approval of the District Director, Director or Manager of 


Passenger and Cargo Services. All such signatures must be based upon the 


preparation, forwarding, final approval and filing of a special Signature 


Card form. The employees authorized to sign drafts must be restricted to 


a mi 


.nimum number required to conduct Braniff business. 



The spaces on the Signature Card form are self-explanatory except NO. 
preceding the Location. All employees authorized to sign Drafts shall be 
assigned a number and the numbers must be in sequence for each location. 
For example, if ten employees are authorized to sign Drafts, such Signatui 
Cards must be numbered from 1 to 10. The assigned number must be entered 
following signature, thus: John Doe #7. When a name is deleted, the 
number for the deleted name may be assigned to the new approved signature 



the 



sequ 



979 



B n Fi n I F= F= inTEnnHTianHi. 



TFtmf=f=icmfrnuFiM 



Passenger Sales and Services Procedures 



SECTION 



REFUND PROCEDURES 



LOCAL DRAFT continued 
















C. 


All 
Pre 
wil 


Signature Cards must be submi 
sldent and Manager - Cash Cont 
1 be returned to the local off 
il such approved cards are rec 


tted to th 
.rol for fi 

ice. No o 
:eived. 


e applicable 
nal approval, 
ne shall sign 


Regional Vi 
Approved 
the Local 


copies 
Drafts 


D. 


The 
and 


applicable Director or Manage 
es of employees authorized to 
any other correspondence pert 


r shall maintain a 
sign Local Drafts, 
.aining thereto. 


sign 
date 


ature fi. 
s, delet 


^- 


showing 
1 dates 



The applicable Director or Manager shall also be responsi 
Manager - Cash Control - Dallas, when the names of indivi 
deleted as authorized signers of Local Drafts. 

Local Draft Distribution and Control 



e Director or Manager shall be 
afts in blocks of 100 to vario 
rtreight Office, Administrator 
properly conduct the Company' 



(2) Form 964-735025 Ticke 



t be posted daily. 
a complete investigation mi 
not found, a teletype 

a copy to Manager - Di: 



respon 


sible for 


distribute 


Lon of the 








ions such 


as Ticket 


Counter, 






s Offi 


ce, etc. , 


as may be 


required 






1 busin 


ess. The 


employees 


at each 






ifts issued in s 


trict numerical 






shall 


be completed by per 


sons design 


lated by 




d all draft number movements. The Inventory 




he event a Loca] 


L Draft is 


missing in 


numericc 


il 




be conducted immedi 


ately. If 


the misE 


ling 


essage 


must be < 


jent to Man 


ager - Casf 


1 Contro] 


. - 


ursemei 


Its, giving the Draf 


t number. 


The teletype 


tter g: 


Lving any 


additional 


information available. 



>top payment on receipt of 



emphasized : 

be typewritten or 



(b) Particular atte 



ided 



ed by any employee designated by 

nerally self-explanatory; however 
d: 

eatly prepared with bal 
to describing payment d 



"Expli 



foil 



(1) Ticket refunds must be properly identified by completing 
all required information stated. If refund is being made 
on more than two ticket numbers for which space has been 
provided, all numbers must be entered in the open space 
provided for recording of airbill and invoice numbers. The 
Local Draft number must be entered on each refunded flight 
coupon immediately below the rubber stamped word "Refunded", 
DO NOT write or stamp in the scan-line portion of the ticket- 
3f the ticket opposite - Fare, Tax, Total). 



Tthe bottom li 



indi 



ited with 



980 



B n n n I f= F= inTEnnnTianHL. 



7rfimi=F=ic mftnuHL. 



»5SCNGEft oALE: 



■ID Services Procedures 



SECTION 



REFUND PROCEDURES 



lOCAL DRAFT 



)£ Local Draft 



The 



inal of the draft must 
ved by authorized indiv 
orized signature. Dral 



signed in 



the 



reqc 
jthorized 



arbons 
only 



afts over $100 require 

_.. 'here two authorized signatures are required, 

and only one authorized signer is on duty, application for refund should 
not be made if the second authorized signature can be obtained within 72 
hours. In such cases, the passenger should be advised of these circum- 
stances and requested to surrender his ticket and give his mailing address. 
The Local Draft may then be sent to him after the second authorized signa- 
ture is obtained. Upon surrender of his ticket, the passenger should be 
issued a Braniff Receipt (Form 964-735087). No Refund Application should 
be prepared. 



Iraft shall 



Uh 



or alt 



ations 



kind 



draft itself. 



(e) Drafts shall 

(f) Drafts shall 
(3) The original draft 



Dt be made payable to ca 
Dt be signed in blank. 
shall be given promptly 



the Payee Company or 



indi 



Can 



led or voided drafts shall be marked "VOID" in large letters on the origi 
11 copies. In addition, the signature space on the original of the draft 
be removed by cutting or tearing off that portion of the draft. 



Facsimile of Local Draft 



and Control 
jrds. 



5uing Local Draft. 



Date of issue of Local Draft. 

Amount of Local Draft. 

Complete name and address of party receiving payment. 

Signature and card number of employee issuing Local Draft. 

NOTE: Drafts issued for ticket refunds over SlOO require 2 authorized 
signatures. Drafts issued for other purposes require 2 signatur 
for amounts over $50. 



ibution 



should 



Complete 12 digit ticket number of all tickets 
Air Freight Payment - See Section 381 or 382. 
If Local Draft being issued for Oversale Compen 



be completed for ticket 
volved in refund. 



12. Fare - Amount of fare being refunded. 



981 



B n H n I F= F= in-riEHnnTionHL. 



m^s^mm^mmmmimmmimm. 



'akt uttt Passenger Sales and Services Procedures 



SECTION 



REFUND PROCEDURES 



LOCAL DRAFT continued 
G. Preparation of Local Draft continued 
(5) Facsimile of Local Draft cont. 

Tax - Amount of tax being refunded (designate "I-US" or "D-US"). 

Commission being deducted from refunds issued to travel agency only. 

State Tax. 

Total amount of refund (must agree with "Amount of Local Draft" above 

Designate whether refund is voluntary or involuntary. 

List sectors being refunded. 



3f Form Number 966-942001 



BnHniF=F= iriTEHnHTianHu 



LOCAL DRAFT. 



D237008 





3 


4 


.-ou~. 


- ) 








■■-■•" 




'::L 


""."7 


7 


copy 








NOI NEGOTIABIE 





ACCOUNTING DISTRIBUTION a 


EXPLANATION 






Cod'.' 


'^:;:r' 


^ 


*-""• 






°' 


f-" 




9 :' ' ■ / 


r>nc 














! ! 1 


1 ! 






' hJ / 


,.. 


13 


— 










! I 1 














COM- 














: 1 1 


! 






r::l^ 






';"■ 












1 


1 ' i 








c. 0. D. a .o«.~cE5 a 










i ' 


! 


1 1 1 


i 














. 






< 




1 




i . 






11 










e,2,o;o 






' 'I'l' 


1 1 














1 


1 0,3 3 








! 


( 






16 




TOTAL 




TOTAL 





TRIPLICATE COPY - TO DALLAS GENERAL ACCOUNTING DTP 



982 



B H n n K F= F= inTEHnnTIOLlHL. 



THJFiF=F=ic mnnunL. 



Part One Passenger Sales and Services Procedures 



REFUND PROCEDURES 



LOCAL DRAFT continued 
H . Reporting and Transmi 



ing Local Drafts 



will be 
Local D 

The fol 

(a) Fr 



of Drafts issued 
and repotted in nume 
al prepared 



Date: The date 
Control Point: 



at all 
imerical 
jlicate. 


loca 
ord( 


tions of 
er using 


a report 
I Form 96^ 


:ing of 
1-93301 


!rted in 


the 


spaces 


provided 


therei 


ty. 










of the : 


issui 


ing loca 


tion. 




;nce number beginnin 
tart over with No. 


g with niimber 1 
1 on January 1 



Beginning Number 



sed 



Local Draft numbers must 
ines. A second page may 



^^■ 



(3) The original copy of the transmittal form with the duplicate white copy, and 

the duplicate yellow copies of the drafts issued with all supporting documents 
stapled to the applicable yellow copy shall be promptly mailed to the Manager •. 
Disbursements Accounting Drafts - Dallas - Mail Station A-123 in a separate 
Board Mail envelope. 

EXCEPTION NO. 1 

WHCRE THE LOCAL DRAFT IS WRITTEN IN PAYMENT OF AIRFREIGHT C.O.D., THE YELLOW COPY SHALL BE 
ATTACHED TO THE AIRBILL AND SENT TO AIRFREIGHT REVENUE ACCOUNTING WITH THE AIRFREIGHT SALES 
REPORT. THE WHITE DUPLICATE COPY SHALL BE SENT WITH THE LOCAL DRAFT TRANSMITTAL REPORT TO 
THE DISBURSEMENTS DEPARTMENT. 



WHEN THE LOCAL DRAFT IS ISSUED FOR A REFUND ON A TICKET REISSUE TRANSACTION, THE YELLOW 
COPY OF THE DRAFT SHALL BE ATTACHED TO THE AUDITOR'S COUPON AND INCLUDED IN THE DAILY 
TICKET SALES REPORT. THE WHITE DUPLICATE COPY SHALL BE SENT WITH THE LOCAL DRAFT TRANS- 
MITTAL REPORT TO THE DISBURSEMENTS DEPARTMENT. 



EXCEPTION NO. 3 

WHEN THE LOCAL DRAFT IS ISSUED FOR A CLASS OF SERVICE ADJUSTMENT ON A FLIGHT COUPON, 
ATTACH THE YELLOW DUPLICATE COPY TO THE FLIGHT COUPON INVOLVED AND INCLUDE IN THE 
FLIGHT COUPONS LIFTED ENVELOPE. SEND THE WHITE DUPLICATE COPY WITH THE LOCAL DRAFT 
TRANSMITTAL REPORT TO THE DISBURSEMENTS DEPARTMENT. 



:ket refunds may be made for amounts up to S500.00. If extreme circum- 
ant, special authorization may be obtained by telephone or teletype to 
limits, from Manager-Passenger Refunds, or Director Revenue Accounting. 



983 



B H F9 n I F= F= inTERilHTIOnHL. 



TFimF=F^ic mnnufiim 



ICES Procedures 



SECTION 



REFUND PROCEDURES 



PASSENGERS ON CHARTERED BUSES 



herein. 

Cash Refund - 



by G.T.F 
A Local 



ift may be 



t may be 
accordin 



e canceled or oversold on a schedu 
provide onward transportation to 
hese passengers under conditions c 



any fare paying passenger rega 
.S. Government Travel Request. 
Refund Application. 



[n addition 
for Refund 



the fare 
ve one-hal 
et would r 
ticket nun 



>xpla 



lished coach fare, a passenger 
3-half of the discounted fare, 
jords "Involuntary Charter Bus 
Dn the Local Draft. 



Application for Refund - It time does not perm 

each passenger, the agent should take down the 

of each passenger. After the bus has departed 

a Local Draft to each passenger as described in (2) , 

addresses, and ticket numbers may be listed on "Repo: 

961-420058 and forwarded to Refunds Department, Dall 



issuance of Local Drafts to 
ame, address, and ticket number 
the station may prepare and mail 



Should 



issenger i 
that the 
of the ch 

If refund 



5 to how we computed the 
^presents the approximat 
3US an-1 the value of the 
Dr the passenger. 



jfund adjustment, you 
iifference between his 
:r ticket. In most ca 



Non-Revenue passengers may be permitted to ride the 
ats are available and further provided that it does 
nal charter expenses to the Company. Under no cir- 
be granted to a non-revenue passenger. 

FLIGHT DELAYS, CANCELLATIONS AND OVERLOADS - 



sale in first class or equipment ch 
grading to coach or economy class a 
or equipment differential will be it 
may be used when refund is S20 or 1 

thereof, the Departure Lounge, Gate 



re Lounge or Gate from an over- 
assenger is willing to accept dc 
3 refund of the applicable class 
Paragraph XVII A on procedure th 
to the passenger in applying fo 
in making payment 



DStoss will 
rm 964-73507 
if ncccssar 
destination 



Whc 



the passenger 

s completion; 
downgraded flight 



REFUND DUE FROM_ 

When the "Form of Payment" box 
purchased by use of any form of 
credit card, UATP card or Government 1 
should be advised that the refundable 
cardholders account or to the appropri 



TO 



!s that the ticket w 
such as a commercia 
(GTR) the passenger 

-11 be credited to t 



984 



B H n n I f= F= inTEHnHTiannL. 

1 



^^~m^^FiiiF=F=it:. mnhiuRiL: 



PART ONE PASSENCrR SALES AND SERVICES PROCEDURES 



REFUND PROCEDURES 



XXII. IhJVOLUNTARY REFUNDS DUE TO FLIGHT DELAYS, CANCELLATIONS AND OVERLOADS 
REDUCED ACCOMMODATIONS 

FACSIMILE (Form 964-735077) Rev. 3-69 



WE SINCERELY REGRET the Inconvenience caused you by 
our inability to provide the service you had expected. 



This envelope is provided for your convenience in arranging 
any refund which may be due. 



UPON COMPLETION OF YOUR JOURNEY, please fill in the 
lower portion of this form. BE SURE you endorse your 
PASSENGER COUPON. 
PLEASE PRINT ALL ENTRIES .... THANK YOU 



I COUPON. CHECK ME«E □ 



985 



B f9 ff n i r= F= I n T E n n Fi T I a n h u 



TFif^t=f=ic ntFinuni^ 



PASSENr,EP SALES AND SERVICES PROCEDURES 



J SECTION 186 



REFUND PROCEDURES 



REFUNDS BY TICKET HOLDING AGENTS 


OF BRANIFF INTERNATIONAL 


11 not be ma. 




Agency agreements provide that refunds of BI do 


icuments sha 


de by travs 


agents unless the agent is speci 


fically authori 


zed in writ 


ing to do so 


Such 


authorization must be given by t 


he Passenger Re 


fund Departl 


ment, Dallas 


. Travel 


agents may refund tickets origin 


ally issued by 


that agent . 


directly to 


the purcha; 


either in whole (where no portio 


n of the ticket 


was used) . 


or in part ( 


if only 


partially used), and payment mad 


e in cash. In 


making such 


refunds, ag 


ents must 


allow full refund to the purchfs 


er and must not 


deduct the 


ir unearned 


commission 


from the amount thus refunded. 










A. CLAIMING CREDIT FOR REFUNDS 


MADE 








Credit for refunds made of t 


ickets or MCO's 


originally 


paid in casl 


h may be dc 


ducted from other sales made 


by agent when 


making his i 


next sales r. 


eport. 


8. CREDIT SALES 










Tickets or MCO's originally 


purchased with 


credit form 


such as GTR 


'S UATP or 


types of credit arrangements 


or tickets issued by another agent or 


BI sales c 


may not be refunded by trave 


1 agencies. 








C. CURRENCY RESTRICTIONS 










In effecting refunds, agent 


must abide by a 


11 current . 


restrictions 


appearing 


the ticket. 










D. AGENTS RESPONSIBILITY 


orrectly figuri 


ng the amou, 


It of refund 




Agents are responsible for c 


and for 


arranging proper settlement ' 


^ith the passen 


ger (purcha; 


5er) . Furthi 


;r, the 


agent must make certain that 


refund is made 


directly t( 


3 the indivi( 


Jual, 


corporation, or other enitiy 


originally pay 


ing for the 


transportat: 


ion. If 


refund is made to any other ; 


party, agent mu 


St first secure authori: 





Lting from the original purchaser and such authorization must be 
the Passenger Refunds Department, Dallas, attached to the docu- 
refunded. 



RECOVERING COMMISSION ON REFUNDED TICKETS 
A. DOMESTIC OFFICE 



5d to a Trave 



ased on t 
ecorded i 



Local Draft is 
by a Travel Ag 
being refunded 
ger Refunds Dep 



1 Agency, comn 
entage reflect 
pace provided 

t is issued to 

1 Agency, comm 

The com 



zj_ to refund unused ticke 



be deducted fr 



the local draft 



ion will be 



o refund unused ticke 
t be deducted from th 
ed later by 



r.AD OFFICES 
(1) When refu 



986 



APPENDIX K 



B FS FS n B F= F= f^SlT^FSilHTIOnHL^ 

PART ONE PASSENGER SALES AND SERVICES PROCEDURES T SECTION 



mmimmiftm 



PASSENGER SERVICES - DENIED BOARDING PROCEDURES 



FOREWORD 

Passenger Rules Tariff PR 6, Rule 380 or Air Tariff Gene 
that BI will pay amounts ranging from 525 to $200 based . 
maining flight coupon, as compensation to passengers who 
are denied boarding privileges, subject to the condition; 
in. The impact of this rule will be 
judgement are not exercised by 
matter will be necessary to pr 



associated 



ith 



idents of denied boarding. 



Rules Book 1-R.OZ provides 
the value of the first re- 
Id ticketed reservations but 
nd limitations described here- 
Imental if established procedures and good 
personnel concerned. Continued attentions to this 
the undesirable passenger reaction and Company expens 



AREA OF APPLICATION 

Subject to the provisions of Article III, Paragr, 
will be paid only to passengers holding confirmee 
operating from, to, or within the United States or its territories, including the Canal 
Zone, Republic of Panama. As an example, unaccommodated passengers holding ticketed con- 
firmed space to travel on a BI flight operating Santiago, Lima, Panama are eligible for 
compensation based on the value of the Santiago-Panama flight coupon; whereas, local 
Santiago-Lima passengers are not eligible. 



ELIGIBILITY 

A. CONDITIONS FOR PAYMENT 
The eligibility 



ned 



illectiv 



pas 



receive denied boarding compensation sh 
ior compliance with the following combin 
single requirement does not in Iteself it 



The passenger must: 
a. hold a valid ti 



In the case where the passenger holds a ticket showing confirmed space 
but no record of his reservation can be located and the passenger is 
denied boarding he will be eligible for payment provided he meets all 
other requirements. A check of cancelled reservations must be made be- 
fore it is determined that no record exists. 



b. present himself for carriage at the appropr 



tim 



and pla 



and 



d. the flight for which he holds the 

CONDITIONS FOR NON-PAYMENT 



ifirmed space is unable to accommoda 



Unaccommodated 



be provided denied boarding compens 



of the following conditio 

When denied boarding was caused by government requlristlon 



987 




PASSENGER SERVICES 
ELIGILIBILITY FOR COMPENSATION 

B. CONDITIONS FOR NONPAYMENT (Continued) 
3. When BI arranges fo " 



DENIED BOARDING PROCEDURES 



earlier than o 
E light was to 
sfter in the c 



of transportation which is scheduled 
tion (or next point of stopover) 
not later than two hours after the original confirmed 
rive in the case of domestic transportation or four hours 
e of international transportation. 



When the passenger is accommodated on the flight for which he holds 
confirmed reserved space, but is offered accommodations or is seated 
in a section of the aircraft other than that specified in his ticket 
at no extra charge: Provided, that a passenger seated in a section 
for which a lower fare is charged shall be entitled to an appropriate 
refund, or 

When both the origin and destination of the first remaining flight 
coupon are located outside the area described in Article II, above. 



eption to sub-paragraph 



(5) 



When a passenger holding through ticjceted confirmed space to make an 
end-on-end connection from one BI flight to another BI flight - at 
a connecting point outside the United States - is denied boarding of 
the onward flight from the connecting point, such passenger will be 
eligible to receive denied boarding compensation. 

EXAMPLE : A passenger holding ticketed confirmed space from New York 

-t the same day with 
3, such passenger is 
lue of the LIM-SCL coupon. 



rmed space, the personnel 
nd every courtesy and assistance 
ed boarding must be provided with 
y to receive denied boarding 
let all conditions described in 





to Santiago, o 
Flight 81 LIM- 
eligible to re 


n Flight 973 1 
SCL is denied 
ceive payment 


^YC-LIM to 
boarding 
based on 


at Lin 
the v; 


NOTICE TO 


PASSENGERS 








In the evt 
concerned 

a°printed' 
compensate 
Article I] 


:nt BI is unable to provide previously 
should be aware of their obligation to 

:onvenienced passenger. Each passenger 
notice. Form Number 961-420257. Eligi 

.on is dependent upon, the passenger hav 

Ll, Paragraph A. 


confii 

denif 
bilit, 
ing m( 


The Directors/Managers - Passenger and 
Managers - Airport Customer Services i) 
Service Agents to familiarize themselv. 
Form No. 961-420257 available from Sto: 


Cargo Services 
n LAD will i3su< 
3S with "Notice- 



Ln the.USA/MEX, and Directors/ 
instructions to all Customer 
to Passengers-Denied Boarding", 



988 



HT^HnS^TBOnFiL. 



P/iRT Or'E PASSE^r^EP SALES A^'P SE^VlfES P^nCEPURES 



mmmmmim- 



iw 



PASSENGER SERVICES - DENIED BOAHUING PROCEDURES 



FACSIMILE OF 

FORM 



THIS NOTICE MUST NOT BE USED AS A 
TICKET INSERT, NOR GIVEN TO 
PASSENGERS OTHER THAN THOSE 
QUALIFYING UNDER ARTICLE IV, 
PARAGRAPH A. 

r 

ANY PASSENGER WHO HAS BEEN DENIED 
BOARDING SHALL NOT, UNDER ANY CIRCUM- 
STANCES WHATSOEVER, BE GIVEN AN ORAL 
OR WRITTEN STATEMENT, CERTIFICATE OR 
OTHER FORM OF COMMUNICATION CERTIFYING 
OR OTHERWISE IMPLYING THAT BRANIFF 
INTERNATIONAL WAS OR mm HAVE BEEN 
RESPONSIBLE FOR THE FAILURE TO PROVIDE 
HIM WITH THE ACCOMMODATIONS COVERED BY 
HIS TICKET, 




989 



B H n n I F= F= isiTEHnHTianHi- 



mm'Fmmimmmnunm 



pflPT nnE PASSF/'HFP SALE^ A^'^ '^fp^mtf^ ppnr.FniiPF^ I s^cT'QN 



ifiq 



PASSENGER SERVICES 



ING PROCEDURES 



V. METHOD OF COMPUTING VALUE OF REMAINING FLIGHT COUPON : 

The value of the first remaining flight coupon shall be computed as fol 
A. ONE WAY TICKETS: 



The compensatory payment value of a one-way flight coupon shall be 100 
percent of the fare applicable to the class of service for which 
accommodations have been reserved for i travel from, to or through the 
United States as covered by the first remaining flight coupon. Such 
payment shall not be more than $200.00 nor less than $25.00. 



ROUND TRIP TICKETS : 

The compensatory payment value of the first remaining flight coupon of a 
round-trip ticket shall be 50 percent of the round-trip fare applicable 
to the class of service for which accommodations have been reserved for 
travel from, to or through the United States as covered by the first re- 
maining flight coupon. Such payment shall not be more than $200.00 nor 
less than $25.00. 

MIXED CLASS ROUND TRIP TICKETS : 

When the first remaining flight coupon is a part of a round trip ticket 
issued for travel in one direction in economy class service and one 
direction in first class service, the value of the first remaining coupon 
shall be 50 percent of the round trip fare applicable to the class of 
service for which such coupon was issued, as indicated in the following 
diagrammatic sketch. 



ORIGIN OF 
FIRST REMAINING 
FLT. COUPON 



RT Economv $^80.00 x S0% = $190-00 

Payment due $190.00 

RT First Class— $'<50. 00 x 50% = $225-00 



Payment due $200.00 (Maximum) 



DESTINATION OF 
FIRST REMAINING 
FLT. COUPON 



Continued 



990 




B H FS n B F= F= 



PASSENGER SERVICES - DENIED BOARLING PROCEDURES 



METHOD OF PAYMENT 

Where payment is du< 
Form 966-942001, or 
as follows: 

A. DENIED BOARDING IN THE UNITED STATES 

(1) Whore payment is c 
Local Draft shall 
designated by him. 



■Ihen the denied boarding compensation is issued to the passenger, the flight 
lumbers, date and the new reissued ticket form and numbers, must be shown in 
the Explanation section of the draft. Also indicate by code "OSO" that payment 
Ls being made for denied boarding compensation. 

[f the denied boarding draft is presented at the FTO, it will bo cashed only 
rfith the approval of the Manager or acting manager on duty. That approval will 
:>e indicated by signature on the draft. 



:5) 


Denied 
paid by 
the Tre 


Boarding 

U.S. Gov 
asurer of 


Compensation drafts issued to passengers trave 
ernment Transportation Request (GTR) shall be 
the United States. Such draft may then be gi 


!lli 
mad 


ng on a tick( 
e payable to 
to the pass( 


St 

2nge! 


;ect 


ion 186, 


XX for i 


nstructions on preparation of a Local 


Draft. 








ENDORSEMENT 


OF FORM 


966-942001 










Each office 
this draft 
of all clai 
have agains 
arising out 
■identified 


1 will obtain an endorsement stamp reading as follows: 
below, the undersigned accepts the same in full satiaf 
ms, demands and causes of action which the undersigned 
;t Braniff Airways, Incorporated, its officers, employe 

of or in connection with denial of confirmed passage 
on the face of this draft." 


"By endorsement 
action and relea 

now has or may 
es and agents, 
on the flight 


of 



The above wording must be stamped on the reverse side of the draft before it 
is given to the passenger. Under no conditions shall the draft issued in 
payment of Denied Boarding include refund value of any unused ticket. 

DENIED BOARDING IN LATIN AMERICAN OFFICES, INCLUDING MEXICO : 

Where payment is due because of Denied Boarding at an i 
the United States, an MCO shall be issued by the Direc 
the person designated by him in accordance with the fo 
facilitate the completion of each box appropriate inst 
the numbered sub-paragraphs, the numbers of which coin* 
the applicable boxes on the facsimile shown on the nex 



located outside 


of 




kirport Customer 


SVC 


or 


1 instructions. 


To 




IS are provided 


in 




.th the numbers 


in 





991 



KSBflt-BBBaS-B- 9fftiS=Mffti-tttiJftML. 






mmmmn0mm 



PART nr 



E PASSENGER SALES AND SERVICES PRnCEDURF^ J ^^^"^'Q^ 



169 



PASSENGER SERVICES - DENIED BOARDING PROCEDURES 



Guide to Completion of MCO 








002 011106990 6 



(1) Type of Service for VJhich Issued - Enter "Denied Boarding Compensation" 
flight number and date, and station alphabetical code covering sector 
Denied Boarding Compensation applies. 

(2) Amount in Letters - Enter amount of Denied Boarding Compensation In 
block letters. 

(3) Coupon Value - Tax - Total Value - Enter amount of compensation in 
figures. Leave tax column blank. 

(4) To - At - Enter Branlff Airways. 

(5) Reservation Data - Leave blank. 



992 



B H H il S F= F= "> n 'iT E F2_ ^ ^ '^ '^B rS f^ L- 






ERVICES PROCEDURES 



SECTION 



PASSENGER SERVICES - DENIED BOARDING PROCEDURES 

Additional Remarks - Enter "Payable in (Country) Currency Only", whe 
passenger's ticket is paid for in currency of one of the Latin Amen 
- ■ - ■-' If paid for in any other currency, II.S 



Enter passenger's surname preceded by 



Form of Payment - Lnter same information as shown on passenger tick 
Issued in Exchange For - Enter form and serial number of passenger' 



HONORING MCO 

Denied Boarding Compensation payment as shown on the MCO where payment in U.S. dollar 
will be made upon surrender of the Exchange Coupon for the MCO to any Braniff ticket 
office located in the United States. Local Draft, Form 966-742001, shall be issued t 
the passenger in exchange for the MCO and shall jc handled in accordance with the 
instructions outlined under "Denied Boarding in United States." 



in currency of a Latin American country 



Where the passenger has purchased a Braniff or another airline's ticket m the 
currency of a country served by Braniff, (other than U.S. dollars) the MCO must 
be marked "Payable only in ( country ) Currency." The Exchange Coupon of such MCO 
must be presented for payment to Braniff s Accounting Office in the country where 
the ticket was issued. A voucher check shill be Issued locally for the value in 
local currency supporting the voucher with the Exchange Coupon No. 1 of the MCO. 
The check must be stamped on the reverse side with the "Endorsement and Release" 
stamp which must be obtainifd for this purpose, tee para. VI, «. Account XX6300 
and the control point of the office where the oversale occurred shall be typed on 
the voucher. 

When an MCO for denied boarding is presented to a Braniff office located in the 
United States on which payment is restricted currency, the application for pay- 
ment may be handled through the Refund Department at Dallas. A Ticket Refund 
Application, Form 964-735087, must accompany the Exchange Coupon of the MCO 
showing the name and address of the passenger. 



993 




PASSENGER SERVICES - DENIED BOARDING PROCEDURES 



CHECK- IN 



DOMESTIC 

Enforcement of the five-minute check-in rule at the ticket lift ooint can 
generally be depended on to avoid an actual denied boarding. Confirmed 
passengers that arrive at the ticket lift point loss than five minutes befor 
scheduled flight departure will be checked in ciG a standby. The agent will 
explain that, due to their late arrival, the space has been given to another 
passenger, but everything possible will be done to get him on the flight. 
When It IS necessary to enforce the five-minute rule to prevent an oversale. 



B. 


INTERNATIONAL 


















Handling will be 
check-in time li 


the same as for domesti 
mit is thirty minutes. 




pt t 


ihat the internation 


lal 




HANDLING OVER-SOLD 


PASSENCERS 














Wh 

bi 
pa 


en the passenger 

when confirmed t 
lity of space is 
ssengers have bee 


ickets are presented by 
questioned, DO NOT board 
n accommodated. Do not. 


persons 
in any 


and potential oversa 
not manifested and 

fested passengers ur 
case, board more pe 


lie 
the 
itil 


ngers 


la- 
Eesti 



ttempting to board 

a dual con^igurati 
e oversold passenge 



an you are sure can be accommodated. Take a physical count of remaining spac 

the airplane, and then board requesting passengers in accordance with space 
tually available. 

ACTUAL OVERSALE 

1. If an actual oversale develops, the last passenger 
normally be the first one refused. If the flight 
and seats are available in the other compartment, 
will be offered the space. If the change in compa 
class of service, the passenger will be given a refund and his boarding 
envelope changed to show the new class. 

2. Every effort will be made to see that minor children, elderly or infirm 
passengers are boarded on oversold flights. This can generally be 
accomplished by enplaning these passengers early. 

3. Under some circumstances, the supervisor may deem it advisable to seek out 
some passenger who he feels would be least likely to be inconvenienced by 
layover and would be agreeable to accepting denied boarding compensation. 



994 



B Fi Fi n K F= F= 3 n T E H n n TjonnL. 




GENERAL PURPOSE AND SCOPE 

The Flight Information Display System provides the single, universally acces 
of information on flight/airport operations. In addition, this system maint 
history on entries, describing the progress and status of each flight. 



The system provides for full display capabilities of current and his 
information and encompasses all flights, originating, enroute or thr 
airports on the Braniff System. All flights include regular, nxtra 
promotion, flights worked for other airlines, etc. 

Flight information on all flights can be entered and record 
system. This information is broken down and further define 
Gross Period. 



rical flight 
jnd terminati 
:tion, charte 



the Cowboy syst 



informatio 
■nt Period 



used In the Flight Info-mation 



)Iay System (FIDS) 



Sys 
- Grc 



Period - The 



Period for the Fligb 

1 days beyond the current period ir 
s the date range 



will be 

restriction being the 

Systi 



: Information Display System 
the future. The upper 
)f the Cowboy Reservations 



be 



onses. Examples a 
;herc are (1) the AAA of an a.7ent 
if no city or airport code is show 
:urrent date will be assumed if no 
iirline code of the requesting air 



not all specitic'l, hut in gen 
will assume .o be the rocri-s 
nd will respond according] v, 
ecific date is designated and (3) the 
e in the AAA unless specified. 



and 
irpnrt 



- All 



in the FIDS wi 



duty code for 
for all operat 
reservations c 



itrol personnel 



be entered utilizing a specific 
erally, this will be a RC duty code 
nel and a RC duty code for all 

airport operations personnel. 



AVO Fun -tions - APO (airport operations) and Airport Opnrat 
describe the duties and op=rotions relating to airport oper 
to the Airport Operations Schedule Record. 



FST (Fli.jht Sector 



FST is t 
ol Center 
n.5 RC act 



rou 



nt the Operations Con 
i.iil association for OCC 
agent sets in OCC and the RO pri/nrs that wi 1 
3US sectors as the flight progress--}. Each sn 
code, flight number, flight effect. "n and disi 
t sector nupiber of the flight, first breakpo: 



■3ht i nform.iti on to the proper 
rd contains the flight/sector/ 
t includes the addresses of 
1 be associated with the 
ctor item contains the air- 
continue date, frequency, 
t of the flight, second 



ight. 



flight, second breakpoint of the flight, third sector 



;^^m&m^F=^/m^0nfmmM 



SALES AND SERVICES 



t Daily Flight Infortnation Record ) - The Airport 
Record (AFI) provides the current period flight 
information to the Operations Control Center, Res 
servations Offices and Airport Operations personn 



Daily Flight 
stJtus and 
ervations 



Operations Control Center. 

Breakpoint - Breakpoint is 
flight control is passed fr 
Operations Control Center t 



FIDS - FIDS describes the Flight Infc 
of public displays of flight informati 



specified fli 



(Airport Code) 



Flight Control Des 



LI. Automated Airport (Aut 



irport having FIDS Equipment (Display Pa 



ems affe 

agent si 
he currer 



Record (Fill) 



- The Flight History Information 
Lfic flight/date in chronological 
jte, AAA city/airport code to each 



12. Flight Ope 



il address (0701 



ecord (NOT ) - The purpose of the Airport 
s to provide a central source of notification 
T sets are identified by a line-interchange- 
hi; RC printers by a synJiolic address (DALOl) . 
mo CRT, secondary CRT, and RO for Flifo; and 
and balances. The Flifo and Weight and 



Airport Operations Schedule Record (APO ) - The purpose of the Airport Operations 
Schedule Record (APO) is to provide a Master Schedule of Operations describing 
the operations of flights for a specific date range. A separate record is 
maintained for each airport. This record contains information concerning 
configuration of up to 36 gates, up to B baggage claim area, up to 6 Transport 
Stations (described as Air-Trans at DFW) , up to 8 concourses, n;> to f. terminals, 
up to 12 zone control areas and up to 6 parking areas. The APn record also 
describes and defines all regular flights, other airline flights (at a BN gate) 



Ttains 






996 



B Fi B=i n I F= f= I n T !E n n H TjanHL. 



w^^mmx^mm^mf^immartimm 



ONE SALF.S AND SERVICES PROCEDURES 



1 



SECTION 



FijgJLd Identifi 



Flight classifi 



code to add a flight operation/schedule 
code to delete a flight operation/schedule 
Code to modify a flight operation/schedule, 
code to which this entry applies 
code to which this entry applies 

(charter, etc. ) optional 



flight number 
suffix optional 
:ter flight oper 



^schedule effe 



flight operat 



period frequency 



for other tha 



code to des 



; inbound flight operations 
ition (preceded by character 



Baggage claim 



:ode for auto A 

i notation (preceded by character 

ades (inbound/outbound) (precede 
: used with auto-APO entry, 
-auto APO entry. 

notation (preceded by character 

1 (preceded by character CI . 

(preceded by character T) . 

ter R) - 



(preceded by cha 



997 



B n H n t f= F= inTEnnHTiannt. 



^mmmmmm^n'ffnmmm. 



MiT ONE SALES AND SERVICES PROCEDURES 



All queries for information from the flight information system is reqvj 


_>sted vii 


agent set entries using the standard Cowboy formats. All entries will 


contain 


primary action code, a uecondary action code, plus specified third act 


ion code 


specific information to obtain the desired displays. 





in primary action codes to be used in the Flight Information Din 
and 2, plus the secondary action codes, separators, third action 
ic information requests. Added to the K primary action code to 
fy the various functions are the letters and F. 



XO entries are assigned to ai 
A, M,X, or the character * t^ 
aaletions and displays may be 

record if the date is within 



KF entries are assigned to t 
a flight sector. Addition o 
as a third action code will 
display the flight sector information 



Lrport operat: 


Lons fun^ 


ctions a 


,nd by 


add: 


inq 




►.Ici 


:o this entry 


as a th 


ird acti 


on cod. 


i, add. 


r.odif 


icat 


! made on 


the 


airport 


operati 


ons da 


ta. 


However, 


the 


reference 


or display 


the airport fl 


ighl 


: ir 


.format 


ion 


the five 


day 


current 


period. 












le airport operat-ons 


and the 


: OCC desk 


in 


contro 


1 of 


f the lett 




A, M, X 


or the 


charac 


ter 








lllow the 


agent/dlsp^ 


tcher tc 


> add, 1 


nod I 


^fy. 


dclet 


e oi 



Certain restrictions apply 
the input and control of th 
will be permitted to enter 
The duty codes of RC and PC 
sets for the entry of certa 



e Flight Information Display System, basically, 
ormation entered. Only the duty codes of PC anc 
ter data in the Flight Information L'isplay~S'yste 
be further restricted to be at specified agent 
Bcified information. 



No restrictions will be placed on the display of the flight 
has been entered into the system. All duty codes will be p 
information entered. However, information on displays will 
responses as laid out between Marketing and OCC. 
of multi-host carriers will not be available to Braniff person 
Example: Braniff will not be permitted to view Hawaiian Flifo 
personnel will not be permitted access to Braniff Flifo. 



formati 



KO and KF functions are the means of entering inform 
functions are performed by Airpor*- Operations, Opera 
Control Ag.?nts and include all entries on both long 



into the Cowboy 
Control Center ^ 
and a daily basis 



:jperjtions personnel input the APO and AFI Information init 
corrections on changes in daily operations. local Progr" 
2red in the Airport level. Display capabilities are unrest 



Operations Control Cor 
functions, ill Operati 
Display capabilities a 



;, City Ticket Offices, Fipl.J Tick 
.n an unrestricted basis. However 
-port Information is permitted fr 



998 



APPENDIX L 

Q n n n i F= p= gnT^nniHTianFiL. 



^mnFiF^mmmrnHnuRim 



iri:s I'i'OCF.DiiKKS 



SECTION 



required for every flight/schedule. In turn, AFI Records are required for each 
city/flight schedule in the current five day period, when a schedule change is 
effected by Reservations Control affecting any flight at any airport, a new APO 
schedule must be created to update tlie Airport Station Flight Information. 



All flights are checked on a c 
for each flight/airport/date. 
Failure of an Airport Station 
each flight/airport/date will 
Corrective action must be init 

If a specific da 



Lly basis to verify that APO and AFI records r-xi 
Phis is done thru the Inventory Detail Records. 
) have an APO or AFI record for its airport for 

Ls situation. 



snge 



If the date range of a KOA entry for an DA flight falls within th 
AFI displays are created in addition to the APO display. For Bra 
situation would cause the APO to be created and the existing AFI' 

OCC will set up and assign the Flight/Sector/Terminal Association 
Associations and the OCC Delay Code interpretations. Failure to 
assigned to a specified flight/sector/termini association will al 
error message being routed to the appropriate hard copy printer, 
must be initiated to correct this situation. 



entered 

APO display. 



all flight/legs 



APO/AFI 



The Airport Operations Schedule Record CAPO) contains the information on the normal 
operations of flights at a specific airport. From thi.s long term record, the daily 
Airport Flight Information Record (AFI) is also created. These records must be up- 
dated as new schedules are added or as existing schedules are modified in the 
existing schedules are required. 



To 



APO Items into the system, the KOA entry format 
ntcred by the PD duty code at the appropriate airport, 
escribed by the following, pages of entries using the si 



is utilized. This entry 
This format of entries is 
ndard Cowboy format. 



The KOA entry can alt 
following manner. 


io be used to created or mo( 


1. Cre.ite an AFI ite 
and the entry is 


;m for a specific date if tl 
lor an OA flight. 


:. ':roate AFT items 
•. |-foctivo date i = 


(in addition to the APO it< 
; within the current period 



modify AFI items when used 



3. Modify the AFI items created by Schedule Change (in addition to 
APO item) for a date range if the effective date is within the 
and tl/o entry is for a BN flight. 



999 



B FS H n I F= F= jnTEFtnHTtonHi- 



m^^^^^mfmmi=»m:m0numm 



PART ONE SALES AND SERVICES PROCEDURES 



SECTION 



Functions - KG En 



Index - KO entries follow cer 



Entry 
to th( 



Lfied formats and 



of the duty. An informative guide follows. 
Duty Code r.ost 



RC - ru 
KG - PR 



KOM [or Hotlificaticns 

Kn.$ loi Displays flndic's KlLs w/dlficrepanc 
Kn*l> ff,r all FUeIiis - All Datco 
KO*/OZ for all Flights/Another Airline 
K0*P2')MAY foi all flights for a ■specific 

KO*P/BN163 for a specific llitht/all schedu 

K0*?/nul6J/?:\MAY '.■•■ ' cporific fUjht on a 
-iTclflc Jate 

KO»R.'l for Coop] etc Remarks Display 

KO*R>I05 for a Sfeclflc remark display 

KO*PD for a Complete Phyeical Descriptive 
Text 



)*1>D15 for a speclfl 


c Physic 


al 1 


Jescrlptlc 


]*Ct for an Airport 


Configur 


ati, 


m Display 


IT Alter Airport Ope 
Devices 


rations 


Not: 


tflcatlon 


i*NO Display Airport 
Devices 


Operati 


ons 


Notificat 



NOTE: Pateo, Airline Codes, City/Airport Codes ran be assumed in 

certain entries by defa"it. Example: KD'CF from a CRT in 
Kansas City would give the Airport Configuration Display for 



1000 



H Fs n I F= f= I n T E H n H T I a n Fi L. 



mmmmmmmmmmmnumm 



lART ONE SALES AND SERVICES PROCEDUHES 



I 



SECTION 'Ji 



ing APO Items into 



KOAP/AN/ED/QR 



C E 



IG/FA/B/S/C/T/R/K/Z/M R O - Inbound Info. Line 

E 
OG/F/V/S/C/T/R/K/Z/M - Outbound Info. Line 

See field identifiers page for definition of letters in this for 



On llie I snJ poiciorii of Lli.' .il.ov» lormL, all subportlons of tlic 
entry may be entered in r.iiidon pi arcmcnt. For example, the fielGS 
represtnud by the letters C/l/V lilentiCiev!, on the I or InbocnJ 
intoimauio:! line could be listed and entcied r-. Vl7lG ai well. Co.boy 
will accent d.il:n on the KOA entry in my order. 

Note : 'V code !.■; not acceptable in autzom.ited airport entry. 

OpLio,, = l In ncii-.;uioiuo:ed uiri-oct ^..try. 
A feu g.-ncral rules on i;OA eul:cics indicate: 

a. Only the header and inbound Info, line of the KOA entry is 
used to designate an incoralur. Clltlit or lermlnoting flight. 

b. Only the hccder and outbound info, line of 'he i;OA entry lo 
uscd'to designate a starting or originating flight. 

c. On thru flights, the bender pins the inbound and outbound info, 
lines are used to lnd,,-ate both tlie incoming and outboun.'. p'-crl 
of the flight. 

d. All data Is validated ap.ainjt the Airport Configuration except 



e. Leading zeros ulll be edited on entries. 

I. Th,; baKg.-j-.r cl.iim field can be usf J only for inbound iiifomatlon line 

g. The titne field e:m be used only for OA tliglits and then is tnandatory. 



U 






ONTIME. 



1001 



B n H n I F= F= inT^nnnTionHL. 




II. C. 2. cont 






iTiatlon will 



Physical Description Tabl 



'F' Field, 
auto APO. 



jry for all flights, 
for auto APO. Usp 



ator reference for dat 



Entry: KOAMCI/BN163/25HAY29SEP/SMTWTF- (Return Key) 

:G$09/FMSP/B2VDSM/SS17/cS18/T$31/R4/K$6 5 (r 
(e 

OG$09/FDAL/VTUL/SS17/CS18/T$31/R4/KS6 5 (ent 



On the above examples, the header line Indicates that Branlff Flight 163 
operates thru Kansas City on a daily ex. Saturday basis thru the 29Lh . f 
September. The Inbound line indicates that Flight 163 2111 arrivo at 
gate $09 frommnneapolis and Des Moines. ($09 is an index to the Fhysica 
Description Table. Consequently, a display of the Physical Description 
of $09 would indicate this flight will arrive at the North Gate. If a 
numeric gate is used, the actual gate number, without the dollar slcn 
indicator would be used.) 

Incoming baggage can be found at Baggage Area 2. The S, C, and T Indlcat- 
the Transport Station, Concourse and Terminal. Again, these Items are 
Indexed to the physical dt^scription table. Consequently, we find for thl: 



wmmmMimnm0tmm. 



■ART ONE SALES AtiD SERVICES PHOCEDURfS 



1 



flight we will use the ^Tain Transport Station, I'ppcr Concourse in 

the Branlff International Terminal. Likewise. u^Ing the S Indicator 

in the K area we find in the Physical Description Table the parkinc 

area to be used for tliis flight. However, in the remarks field only, 

a separate rcmarka table is used. Upon checking the Reniarka Tabic for 

Remark No. 4, we find that Flight 163 will arrive on time. -The Outbound 

line indicates that Flight 163 will depart from the North Gate to DAL 

via TUL. Remark 4 indicates an on time departure from the Upper Concourse, 

Branlff Teminal and Main Transport Station. Again, the Parking Area 

i« designated. If the remarks field is omitted in a KOA, it is defaulted 

CO ON TIKE. 

Using the general rules for the KOA entries indicated earlier, only the 
header and I line would be used tc Indicate an Incoming Flight. Also, only 
the header and line would be used to indicate an originating flight. 
Response to either an originating, terminating, or thru flight would be 
the same if entered correctly, namely "Fit Data Processed". 

A note of caution should be given when KOA entries c:c being -ased t^ 
uj)d»te achedulos after a schedule chango. Should any frequencies overlap 
when the schedule la fut back, th. KOA will delete all ovctlafpinf 
frequencies. 



flight arrives before midnight, the KOA entry will 
crlval date of the flight at the apecified airport. 



1003 



B R Fl n I F= F= IflTEHnHTianHL. 



^^^^msmmmmmMf^ffmffm 



^RT ONt AL[ ■" / r 



1 



3. Adding An ATI Item (KOA Entry) 



An Items are also ere; 


ited with KO 


A fctrles. A single AFl Item Is 


created within the curi 


rent period 


using a specific date. One or mc 


(up to 5) Art's can be 


created, us 


mg the date range format of the 



KOA entry, If the effective date falln within the current period. 
Failure to specify a date within the current period will default 
the current date. Hie entry for adding an ATI Is as follows: 



HEADER KOAP/AN/Cd] ^ 

C E 
INBOUND IG/F/V/S/C/T/R/K/Z/K/B 

"^ M 
E 
OnTBOUND OC/r/V/S/C/T/R/K/Z/MQ 

In the above entry, only the header Une Is different for an AFI 
addition. Both the Inbound and Outbound lines remain the same. 
Use of the general rules as applicable to the KOA entries remain the 
same aa creating ATI Items. The above format with a specific date 
can only be entered for OA. 

The date range format using an effective date within the current 
period can be used for BN flights, but the effect on the ATI Items 
(jrevUusly created by Sched'^. Chcge) 1-3 -"= s^« ^^ -' ^ ^'^" '■"'■' 
entry had been made. 



1004 



B n n n § F= F= inTEHnnTiunHL. 



m^^^mmmt0i=mmmmnunL. 



TART ONE SALES AtiD SERVICES PROCEDURES 



I 



SECTION 



4. Deletion of An APO 



(KOX Entry)- Using 



Entry: KOXP/AN/ED/Q (enter key) 



FLT DATA PROCESSED 
iould be as follwos: 



1 example of the KOX delete entry using actual dat 

itry: KOXMCI/BNi63/25MAY29SEP/SMTWTF-(Enter Icey) Reponse: FLT DATA PROCESL.t" 



This format would be used to delete a flight operation from the specified 
airport. The example shows that Flight 163 is deleted from MCI. 



Modifying An APO/AFI 



DL> 



Modificat 



of 



^the^ System can be made by the use of the KOM format, 
in random order as long as the mandatory divider items a 
the fields. Modifications can range from items, such as 
single date to the complete revision of the data. Input 
to RC and PD agents. 

To illustrate how to modify a flight operations schedule 
change Flight 163 at MCI from its normal gate, 56, to a 
on both its arrival and departure. This gate change now 
baggage to go to a new baggage claim area, requires a ne 
and concourse to be used as well as a new parjting area t 
convenient for the flight involved. 

Before modification, the flight 

BN MCI APO 



:he APO and AFI Iteir 
The KOM can be enLe 

:e utilized to separ 
a gate change on a 



Lly showing the foil 



„ ._. _.. ___ FREQ B GT CIV VIA VIA BC TR CC PK RM Z 
BN 163 25MAY 29SEP SKTWTF- I 56 HSP DSM 2 S17 S18 S65 4 1 
56 DAL TUL S17 518 565 4 1 

Malce the following KOM entry to modify the data as follows: 
K0MMCI/BN163/25HAY29SEP/S.MTWTf- 
1C70/B3/S532/C$19/k;20 
OC70/S$3:/cn9/KS20 

The otove entry changed Flight 163 from Gate 56 to Gate 70. It also changes 
the Baggage Claim Area 2 to Baggage Claim Area 3. The flight is now on the lower 
concourse (S19) on the outer transport station (S32) and the new parking area i3 
now the short term (S20) parking area. Remark 4 is unchanged. 



AL ai 


EFF DSC 


FREQ 


B CT CTY VTA B 


C TR CC PK P.M 


BN 163 


25MAY 29SEP 


SMIWTF- 


I 70 MSP DSM 3 

71 :.' TtT. 


1 532 519 S20 4 
5 32 519 520 '4 



The Gojne general rules as apply to KOA entries described in adding an airport 
apply to the KOM entries. If only the incoming section is to be changed, the 
entiy would be only the header and the inbound line. If the outbound section 
to be changed, only the header and outbound lint- is to be changed. 



1005 



B R Fi n I F= F= iraT^nnHTionnt. 



M^m^^mmmmmmminnumM 



PART ONE SALES AND SERVK 



SECTION 



g example all AFI and APO 
arrives and departs on a r 
appended. 



single day ba 
Lar gate is 70 
3 follows: 

r. KOM/163/(l 

G66 (entei 



KOM entry will 
ill park today, 



from Gate 70 



allow the following items to he cnan 
3ume that for today only. Flight 163 
both in and outbound at Gate 06. Th 



FLT DATA PROCESSEU 



ager 



and flight 



change the incoming 



outbound information on a single flig 
The entry and format for this change 
Entry: 

Header KOMP/AN/[D] (return key) 
Inbound I (same) (return key) 
Outbound (Same) (enter key) 
Response: FLT DATA PROCESSED 
ntry 



single date. 



In the above 
header only, it \ 
flight. Again, : 
the inbound port 



f bot.i the I and are omitted and a change is made on the 
.^- apply to both the Inbound and Outbound portions of the 
f the Head and I or Inbound line appears, this will change only 
on. The Header and only will change only the outbound portion 



1006 



^ Fi n n I B= F= in ~^ ^ ^fl_^_Z_' o n n l. 



■■mmmmmimmmmuFim 



SERVICE.'; rBOCEDU 



i 



SECTION 



>laY of An APO Item (KG* ) 



APO Items nay bo 


displayed to vi, 


:w the Informatl. 




tered on 




the Flight Opera 


tions Sc 


ihedules : 


tor a given air?ort/f 


Ugh 


It/date 


or 


cooblnatioa then 


eof. This Is accomplished thru 


the K0« format with 


the specified tnformatlc 


m requested. A K0» entr 


y will display i 


ill 


flights for all 


dates scheduled I 


to operate thru 


the g 


iver 


1 Alrpoi 


■^■ 


Default Is to th 


e AAA oi 


; the Agci 


nt Set If no airport 


Is specified. 


Entry (From a DAI. Set): 


Kfr* 












Res:.onse: 
















EN DAL APO 
AL FLT EFF 


DSC 


FREO 


B GT CTY VIA 


VIA 


EG 


TR CC 


PC RM 


EN 3S 02NAY 


^ 


•■ 


I 01 lAH 
01 MiP 




OA 


OASLS 
OAtlS 


OA 04 
OA 04 


BN 51 02MAY 


\ 


" 


I 05 MiF MCI 
O 05 MEX 




OA 


OA 
OA 


OA 04 
OA 04 


EN 72 02MAY 


\ 


-MTWTFS 


I 09 OMA MCI 


ICT 


Bl 


OB 


OB 04 


BN 72 02nAY 


\ 


S 


I o2 OMA MCI 


OKC 


OA 


OA 


OA 04 


BN 141 02MAY 


06JUN 




I 10 MSP OMA 
10 HOU 


MKC 


E2 


OE 
OB 


OB 04 
OE 04 


EN 155 0:nAY 


^ 


•• 


I 15 MSP MCI 
15 TPA MSY 




OC 


OC 
OC 


OC 04 
OC 04 


BN 178 02MAY 


01 SEP 


•• 


I 02 HOU 




OA 


OA 


OA 04 


BN 237 02MAY 


^ 


" 


I OS MSP DSM 
03 lAH 


MCI 


Bl 


OE 
OC 


OB 04 
OB 04 


BN 304 02MAY 


^ 


■■ 


I \2 PEN 
13 lAH 




E2 


OB 
OB 


or 04 

OE 04 


Oi 500 02MAY \ 

SKEO TIME-IN 300P-0UT 400P 


I 03 ORD 
03 lAH 




OA 


OA 
OA 


OA 04 
OA 04 


EN 500 04AUG 


OlOCT 




07 lAH 






OB 


OE 04 


BN SOI 02HAY 


01 OCT 




I 05 ATL 

07 HNL 




OA 


OA 
OB 


OA OS 
OE 10 


PN 502 o;nAv 


^ 


•• 


I 07 HNL 
0-. -^TL 




Bl 


OB 
OA 


OC 10 
OA 04 


EN SOOl O-MAV 


02JUN 


S -£ 


: I 10 LAX 




OC 


OC 


OC 11 



1007 



B H n n I F= F= inT^nnFiTianFBL. 



ms^^^smmmtmmmmmMmmnuf-fm 



PAPT ONE SALES AND SERVICES PROCEDURES 



SECTION 



7. To Display An AFI Item for A Specific Date 



Entry 
R£6pon 



BN 33 
SECT-00 




245P 

.325P 


ON 
ON 


TlhE 
TIHE 


01 
01 


OA 
OA 


OA 


OA 


} 


I AH 
MtP 




EN 51 
?ECT-00 




11500 
i:35F 


ARRIVED 
DEPARTED 


05 
05 


OA 
OA 


OA 
OA 


OA 


2 


M.1P 
HEX 


MCI 


BN 72 
SECT-00 




700A 


ARRIVED 


09 


OB 


OE 


El 


3 


DMA 


MCI 


BN 141 
SECT-00 




150F 
2iOP 


■'BOARDING 
ON TinE 


10 


OB 
OB 


OB 
OB 


B2 


4 


HOU 


0M<: 


BN I?5 
SECT-00 




1 ;.-5p 

220P 


MAI 
ON 


NT DLY 
TIME 


15 


OC 

oc 


OC 
OC 


OC 


5 
5 


MT.P 


MCI 
Mi^ 


BN 178 
SECT-00 




950P 


ON 


TIME 


02 


OA 


OA 


OA 


1 


HOU 




EN 257 
SECT-00 




415P 
SOOP 


ON 
ON 


TIME 
TIME 


04 
OS 


OE 
OB 


OB- 
OE 


Bl 


3 


I AH 


Dit 


EN 301 
SECT-00 




415P 
SOOP 


ON 
ON 


TIME 
TIME 


13 


OE 
OB 


OB 
OB 


B2 


5 
5 


DEN 
I AH 




BN 501 

SECT-00 




1000 A 
lOOP 


CANCELLED 
747 BI PL 


05 

07 


OA 
OB 


OA 
OE 


OA 


2 


ATL 




BN 502 
SECT-00 




600A 
640A 


ARRIVED 
DEPARTED 


07 
05 


OA 


OB 


El 


3 
2 


HNL 
ATL 




BN SOOl 

SECT- ..... 




700P 


CHARTER 


10 


OC 


OC 


OC 




LAX 




OZ 500 
JECT-00 




300P 
400P 


ON 
UN 


TIME 
TIME 


03 


OA 


OA 


OA 


i 


ORD 

I AH 





1008 



B H H n t F= F= in TEEHnHTIOriHL. 



T^HFiF=F=fc: mnnuHLj^ 



^RT ONE SALES AND SERVICES PROCEDURES 



SECTION 



8- To Display All Flights On A Specific Date, Outside Current 



Kntry (From a DAL Set): 


KO* LAUG 




















Raspon=e: 


























EN DAL AFO 


























AL FLT EFF 


osc 


FREQ 


B 


GT 


CTY 


VIA 


VIA 


EC 


TR 


cz 


pi; 


RM Z 


BN 3S 02MAY 


^ 


. 




01 


I AH 






OA 


0A$ 


IS 


OA 


04 1 










01 


MS.P 








0A» 


le 


OA 


04 1 


BN 51 02MAY 


^ 


•• 




05 
05 


MSP 
MEX 


MCI 




OA 


OA 
OA 




OA 


04 2 
04 2 


BN 72 02MflV 


\ 


-MTWTFS 




09 


OHA 


MCI 


ICT 


El 


OB 




OB 


04 3 


BN 155 02HAY 


^ 


■■ 




15 
15 


MSP 
TPA 


MCI 




OC 


OC 
OC 




OC 
OC 


04 5 
04 5 


BN 17S 02MAY 


OlSEP 


■■ 




02 


HOLI 






OA 


OA 




OA 


04 1 


BN 237 02MAY 


^ 






OS: 
08 


MiP 


DoM 


MCI 


Bl 


OC 
OB 




OB 
OP 


04 3 


LN -04 02MAY 


^ 






13 
13 


DEN 
I AH 






B2 


OE 
OB 




Ot 


04 5 
04 5 


01 500 02MAY 


\ 


■• 




05 


OFD 






OA 


OA 




OA 


04 1 



SKED TTME-IN iOOF-OUT 400P 



BN 502 02MAY 



1009 



B H H n I F= F= inTEHnnTianHL. 



TRF9F=F=ic mnnunL. 



PART ONE SALES AND SERVICES PROCEDURES 



J SECTION 



To Diaplay All Flights On A Specific Date, Outaide Cu 



Entry (From a D.U Set): 


KO* UUC 














Itesponse: 




















tN DAL APCi 
AL FLT EFF 


DiC 


FREQ 


B 


GT 


CTY 


VIA 


VIA 


EG 


TK CC 


EM 33 02MAY 


^ 


•• 




01 
01 


lAH 
MSP 






OA 


OAtlS 
OASIS 


CN 51 OiMAY 


\ 


■■ 




05 
05 


MSP 
MEX 


MCI 




OA 


OA 


BN 72 02MAY 


\ 


-MTWTFS 




09 


OMA 


MCI 


ICT 


Bl 


OB 


C:N 155 u2riAY 


^ 


•• 




15 


MSP 
TPA 


MCI 
MSY 




OC 


OC 
OC 


EN 173 02nAY 


01 SEP 


" 




02 


HOU 






OA 


OA 


C-N 237 02I1AY 


^ 


" 




08 


MSP 
I AH 


DSM 


MCI 


El 


OB 
OB 


EN 304 02MAY 


^ 


•■ 




13 
13 


DEN 
I AH 






B2 


Ot 


OZ 500 02MAy \ 

SKED TIME-IN 300P-0UT 400P 




03 
03 


ORD 
I AH 






OA 


OA 
OA 


BN 501 02MAY 


OlOCT 


" 




05 
07 


ATL 
HNL 






OA 


OE 


EN 502 02MAY 


\ 


•• 





07 
05 


HNL 
ATL 






El 


OB 
OA 



for Specific Date 



Entry from DAL 
Response: 



K0$6MAY 
Same display 



K0*6MAY with additional ind 



1010 



B H H n t F= F= inTEEFHriHTianHL^ 



TnnmfrtE ■:mt=inumim 



PART ONE SALES AND SERVICES PROCEDURES 



SECTION 



jlay of All 



iff Flighta/Specif Ic Airpo 



Ent 


;ry: » 


CO*DAL/BN 


Response: 




EN 


DflL AFO 
FLT EFF 


EN 


36 


02MflY 



FREO B OT CTY VIA VIA 



EN 


SI 02MAY \ 








OS 


MSP 
MEX 


nci 


0^ 


EN 


72 02MAY \ 


-MTWTFS 


I 09 


CWA 


MCI 


ICT E) 


BN 


72 02MAY \ 

141 OjMAY OAJUN 


^ 






I 02 

I 10 
10 


OMA 
HOU 


MCI 
CiMA 


OKC OC 

Hi.c p: 




■• 




BN 


155 02MAY \ 








I 15 
15 


MSP 
TPA 


MCI 
MSY 


oc 


EN 


173 02WAY OlSEF- 




■• 




I 02 


HOU 




01- 


EN 


237 C2MAY \ 




" 




I OS 
08 


I AH 


CiSM 


MCI Bl 


EN 


304 C2MAY \ 




" 




I 13 
13 


DEN 




e: 


EN 


501 02MAY OlOCT 




■■ 




I 05 
07 


ATL 
HNL 




0(- 


BN 


502 02MAY. \ 




' 




I 07 
05 


HNL 
ATL 




Bl 




















isplay of 


' All Fllqhts/Spe 


cif: 




Ai 


rport/Othe 


!r Ai 


.rline 


F.nCl 


ry: K0*DAL/OZ 

















OA 


04 


OA 


04 


OA 


04 


OE 


04 


OA 


04 


OE 


,-4 


OB 


04 


OC 


04 


OC 


04 



OS 


04 


OA 


OS 


OE 


10 


r.V- 


\» 


OA 


04 


OC 


,1 



GT CTY VIA VIA CG TR CC PK RM Z 



02 500 02MAY \ " I 03 ORE 
SKED TIME-JN 300P-0UT 400P O 03 lAH 



1011 



B Fi n n i f= F= inTEnnHTiannL. 



mmmmFmmmmvnmnunL^ 



SALES AND SERVICES PKQCEDURES 



SECTION ^ nt 



13. To Display A Specific Flight/All Schedules 

Entry: KO»DAL/iOO 
Response: 



CC PK RM Z 



EN 500 06flUG 01 OCT 



OB OB 04 



14. Display of A 



y of A Specific Flight No. /Specific Airport/All Airli 



Entry: KO»DAL/72 



BN 72 02nAY 
BN 72 02MAY 



-MTWTFS 1 09 OMA MCI ICT E: OB OE 04 
S I 02 DMA MCI OKC OA OA OA 04 



To Display a Specific Flight for A Specific 



Entry: KOSDAL/50 2/6HAY 

Response: Same as KO«D*I,/502/6MAY 

with additional indicator • 
An asterisk symbol will ind 
incomplete item. Determir 



loi; 



B H Ft n t f= F= inTEnnnTionHL. 



THBF=f=/c mFinunL. 



PART ONE SALES AND SERVICES PROCEDURES 



SECTION ^ 



16. To Display Remarks 

Entry: KO'R 
Response; 



1- flRRIVEti 

2- '-BOARDING 

3- DEPARTED 

4- ON TIME 

5- MA I NT DLY 

6- TFC DELAY 

7- WEA DELAY 

8- CANCELLED 

9- NON STOP 

10- 747 EI PL 

11- CHARTER 

12- SEE AoENT 

13- SEE TV 



NOTE: Ramarks displayed to Reservations i Public will be seme 



OCC must specify the approprla 

Flllo. 

OCC will also have use of free 



17. To Display a Specific Remark (KO'RMIJN) 



Entry: 

KO«R.>ill 
Response; 

REMARKS 

11 - CHARTER 



1013 



B n B=i n I F= F= inTEHnHTiannu 



wmmmmmmi=inmMiRinUFiii 



PART ONE SALES AND SERVICES PROCEDURES 



I 



SECTION x& 



II. c. 18. To Display Physical Descriptions tKO'PD l 



PHYSICAL OESCRIPTION 
»0- DROWN 

tl- SOUTHEAST TERMINAL 
t2- ERANIFF 
»3- ORANGE 



»S- 



RECi 

WHITE 

BLUE 

GREEN 

GOLD 



til- EAST 

»12- EASTERN 

tl3- TEXAS INTERNATIONAL 

tl4- HAWAIIAN 

$15- PINK 

»16- YELLOW 

»17- MAIN 

»18- UPPER 

tl9- LOWER 

»20- SHORT TERM 



19. To Display 



Entry: KO«PD22 
Response : 



1014 



B H Ft n t F= F= inTERnnTiariHL. 



TnnF^F=m mftnunL. 



PART ONE SALES AND SERVICES Pl'.OCEDURES 



SECTION 



II. C. 20. To Display An Airport Configuration Display (KO'CF) 



Entry: KO*CF 



BN DAL CONFIGURATION 

DATE -01 02 03 04 05 06 07 08 09 10 II 12 13 14 15 

15 16 17 18 

BAG CLAIM -OA El B2 OC 

TRANSPORT -OA OB OC 

CONCOURSE - 
» 18 19 

TERMINAL -2W 

PARK AREA -OA OB OC 

ZONE CNTL -01 02 03 04 05 06 
«»«INDEX DEFINITIONS 
»1S -UPPER 
«19 -LOWER 



Airport Is defaulted to AAA of Agent Set 

To Display the Airport Conf iguratiOD of another Airport, 

the entry would be: 

Entry: 

KO*CFTUL Tin, la other Airport P^queated 

Response; 

An Airport Configuration Display of the TUL Airport. 



1015 



B H f=f n i p= F= inrEFintiTiannL. 






PART ONE SALES AND SERVICES PROCEDURES 



I 



SECTION 



II. c. 21. Define/Alter Airport Operations Notification Devices (KOT) 

Should Airport Operations Control desire to modify and alcnr 

all BO Printers, or change CRT's, this cm be done with a 

elngle entry using the KOT format. 

Using the following index as a guide - 
p - Airport (Default to AAA) 

r - ro In-la-ta (Preceded by LFD Identifier RO) 
tj- prime CRT in-la-ta (Preceded by Field Identifier CD 
Cj- secondary CRT in-la-ta (Preceded by field Identifier C2) 

Entry: Response: 

KOTprCj^Cj (enter key) LN lA TA PROCESSED 

Sample entries would appear aa follows: 

Entries: Responses: 

KOT DW/ROO1/C107011A/C207C118 S LN lA TA PROCESSED 



KOT/C207011A/RO01 



LM lA TA PROCESSED 



KOT DFW/C107011A o 



LN lA TA PROCESSED 



1016 



B n H n I F= F= iriTEFtnFITIOnFIL. 



TnnF=F=ic: mnnuFiL. 



PART ONE SALES AND SERVICES PROCEDURES 



aplay Airport Ope 



Lions Notlfi 



NOT I 


F I CAT I ON RECORD DISPLAY 


fit 


APT 


PRIME 


SECOND KO 


BN 


AUS 


091312 


091314 01 


EN 


BNA 


0S012S 


0S012A 01 


BN 


COS 


0S0612 


0S0614 01 


BN 


CRP 


091326 


091323 01 


BN 


DAL 


020102 


020134 01 


BN 


DCA 


0S021A 


030211 01 


BN 


DEN 


080616 


0S0613 01 


BN 


DSn 


031211 


031213 01 


EN 


EWR 


0S0215 


02:0217 02 


BN 


HNL 


03IJ236 


03023S 01 


BN 


HOU 


040212 


040214 05 


BN 


IAD 


0S02I2 


0i02i4 01 


BN 


I AH 


091311 


091313 01 


BN 


JFK 


0S021C: 


oio;20 01 


BN 


MSY 


091335 


091337 02 


BN 


SEA 


081016 


08101S 01 



Entry - KO»NODAL 
Response: 



EN DAL 020102 



1017 



B H H n t f= F= inTEnntiTiannL. 



^HFiF=F^ic: mPinunu 



SALES AND SERVICES PROCEDURES 



SECTION 



For 



for 



Two and Three Flight Sectora are shown below: 



S = Sector ana t) =^ Breakpoint 

One Sector Flight - Entry: KFA/N/ED/Q (return key) 

Entry: S (enter key) 

1 

Two Sector Flight - Entry: KFA/N/ED/Q (return key) 
S b S (enter key) 



FLT DATA PkOCESSED 



FLT DATA PROCESSED 



Three Sector Flight - Entry: KFA/N/ED/Q (i 



FLT DATA PROCESSED 



2. To Delete A Flight/Se 



Terminal Item From The Schedule (KFX) 



Entry: KFX/N/ED/Q (enterkey) 
Response: FLT DATA PROCESSED 

Flight is deleted from the FST record. 

Modifying A Flight/Sector On An AFI Da 

Entry: KFM/M/ED/Q (return key) 

S (enter key) 
1 

KFM/N/ED/Q (return key) 
S b S (enter key) 



KFM/N/ED/Q (l 



Three Sector Flight 



Response: (to all entries) - FLT DATA PROCESSED 
«. To Modify Specified Sector/Terminal Association o 



Specified Flight/Date (KFM) 



Example: The normal Flight 234 is worked by OCC Desk 2 from HOU to DAL, 
OCC Desk 1 from DAL to OKC and OCC Desk 3 from OKC to DEN. 
Initially, this arrangement is set up with a KFM entry as 



1018 



B n H n I F= F= inTEFsnFiTianFiL. 



wrnmmm&mrmnufim 



PART ONE SALES AND SERVICES PROCEDURES 



SECTION 



m . KF ACTIONS 

Index of KF entries with thair duty code ra« 



Type of Entry Duty Code Rest 

KFA - For Adds RC 

KFX - For Deletions RC 

KFM - For Modifications RC 

KFS - For Sector/Terminal Association Modifications RC 

KFL - For Sector/Temlnal isoclatlon Displays None 

KF* - For FST Record Display None 



FST - Flight/Sector/Te 



The Flight/Sector/Terrainal record 
of the Operations Control Center, 
add, delete, modify or display a flight sector a'ssociated item. 

An OCC sector number found in the FST is also used in each AFl item. FST 
are likewise restricted on input to a specified duty code, namely RC. 



Adding A Fliqht/Sector/Terminal 
Entry: KFA/234/25KAY31DEC/S (j 

2DAL10KC3 Center key) 
Response: RT DATA PROCESSED 



In the above entry. Flight 234 operates dally from 25HAY 
thru 31DEC between lAH-DAL-OKC-DEN and haa been added to 
the Flight Sector Terminal Record. Operations Control Cc 
Desk 2 monitors the flight from its origin ot lAH to Its 
arrival at DAL. Control of Che flight nov passes to OCC 
Desk 1. Operations Control Center Desk 1 monitors this 
flight from Its arrival at Dallas to its arrival at OKC. 
Control of the flight now passes to Desk 3. Operations 
Control Center Desk 3 monitors the flight from its arclva 
at OKC thru to ita temlnation at DEN. 



1019 



B FS H n S F= F= i n T ^ Ft n H T i o n H L. 






PART ONE SALES AND SERVICES PROCEDUM.S 



Entry: KFM/234/25MAY (entry key) Rasponae: FLT DATA PROCESSED 
H0U2 ( return key) 
DALl (return key) 
0KC3 (return key) 
DEN3 (center key) 

Operations Control Center now desires that Flight 234 bf handlL-d oy ^,. C 
Desk 1 from both HOU and DAL. OKC and DEN will remain be^ng worked by OCC 
Desk 3. To modify this for a specific date: 

Entry: KFM/234/26MAY (return key) Response: FLT DATA PROCESSED 
HOUl (enter key) 



NOTE: Once the original KFM is set up for a specific flight, 
assumed that OCC will work the flight in the same p.itt 
daily basis unless specifically changed by a KFM entry. 



1020 



B R n n t f= F= iriTERnnTianHL. 



THRiF=r=iG mnnunt^ 



PART ONE SALES AND SERVICES PROCEDURES 



SECTION 



5. To Display a KF Flight Sectc 



EN FST 












FLT 


EFF 


DSC FREQ 


SC BPl 


SC 


E.P2 


J 


OIJUN 


31 DEC 




1 






2 


22JUL 


31 DEC 




2 DFW 


1 




2 


15MAY 


21 JUL SM S 


2 DPy 


" 


SAT 


3 


OIJUN 


31 DEC 




3 DFW 


' 


nSY 


47 


25APR 


070CT 




3' SAT 


5 




51 


25APR 


OlOCT SMTW-— 


3 






501 


22APR 


30APR 




1 DAL 


2 




501 


01 MAY 


X 




-> 






601 


OIJUN 


^ 




t> 






SECTOR/T^RMINriL ASSOC lOT ION 








iC 


LN lA TA 


TYP 










01- 


00 OS FE 


RO 










02- 


7F FF FE 


CRT 










03- 


04 C4 CI 


CRT 










04- 


D3 00 01 


CRT 










OS- 


C4 E3 E6 


CRT 










06- 


00 09 C2 


RO 










07- 


D5 00 00 


CRT 










08- 


00 21 00 


RO 










09- 


00 08 FC 


RO 










10- 


09 33 FE 


CRT 










11- 


04 C4 CI 


RO 










12- 


D3 00 01 


CRT 










13- 


00 00 00 


RO 










15- 


n5 00 00 


RO 










19- 


05 00 00 


CRT 









1021 



B H H n t F= F= inTEHtlFSTiariHU 



wFimF^F=imm 



PAJiT ONE SALES AND SERVICES PROCEDURES I ^Jt-*- 

[II. A. 6. To Modify a Sector-Terminal Association Record 

KTS sector/CRT address 
Response: 

LNIATA PRDC 

Note: KFS entry changes the specific CRT (Agent Set) or 
RO (Printer Ten}ilnal) for a given sector. 

For example, assume that sector 4 currently Is as follows 
SC LN lA TA TYP 
04lOA 01 16\CRT 

The entry KfSi/OBOJlA would change the sector/terminal 
Item to: 

SC LN U TA TYP 

04 OB 03 lA RD 

Should Operations Control Center require a SecCor/Tero.lna1 
association to be switched to another CRT or printer, this 
can be done with a KFS entry. 
Format: 

KFS si/sj (enter key) 



SC LN lA TA TYP 

00 OB 01 01 CRT 

01 OB 01 02 RO 
31 03 01 16 CRT 



1022 



B H n n 1 1= F= §nTEnnFiTianF8L. 



"T^nHr^rimmmnURL: 



PART ONE SALES AND SERVICES PROCEDURES 



SECTION ^ -" 



splay of A Specific Sector Terminal Ass 



iC I.N I A Th TVP 
04-07 02 10 CRT 



OCC t RC FUNCTIONS 

Sales Functions - All KG displays are available to Sales personnel at the 
Reservations, City Ticket and Airport Ticket offices. These displays will allow 
all sales people to have access to the various displays necessary to inform thoii 
customers the location of Flights, Gates, and Airport Configurations. They may 
also inform their customers of proper parking areas in appropriate cities, etc. 



SALES AND SERVICES PROCE 



mmemmmmrimmm 



1 



FLIFO - GENERAL 

Flifo functions may bo divided into three basic categoric 
functions (local progress), OCC and RC functions (fliqht 
Sales functions (displays) . The Flifo displays available 
duty code . 



and 



flight St 



deci 



:ily by 
sports 
2 which 



OCC, using an RC duty code, may then inp 

will update the displays and send )iot if ication co aownxini; atauiuns -jdu ! = =.=.. vt.w^^. - 

offices. Flight status decision messages include landing cancellations; flight 

cancellations; aid decisions which affect inbound or outbound times and equipment 

changes. RC will input flight cancellations and landing cancellations due to holiday 

schedules. 



in addition to th 
pl,iys which are i 


e automatic displays, Sales wil) ha\ 
nitiatcd by a CRT entry. 


Displays are available to reflect current flifo as wf 
however, the display request is tor a date outside tl 
scheduled information ib r.;turncd to the user. 


A. Index of 2 Ac 


tions, Dwty Code Restrictions 


T>Te 


of Entry Duly Cod- Rost 


:p- 


ProE.-css ru, RC 


2D - 


Decision KC 


2F - 


Flight Cancel RC 


2L - 


Landlnr Cancel RC 


2X - 


Cancel Flifo P.C 




Dlspijy FUfo None 


2" - 


Display Current FUfo Mpssages RC, SU 


;...- 


Display All ressagcs RC, SU 


B . Ke^L nrco s 


f'^r rli to Display.-: 



cess to sev 



2 DUploy lllfo (dace in i ciay rutreii. i.erlod) 

2 Display flifo (date past 5 day current period) 

2* Display current flifo input messages 

:.^\'. Display all fUfo input m. ssages 



1024 



B n Fi n I F= F= inTEnnnTianFiu 



'm^^m^mmmii=tmMnmnumm 



PAJ(T ONE SALES AND SERVICES PROCEDURES 




J[ SECTION 




i*7 l"'l= 


IV. C. Record(s) Affected by Flifo Entries 


Pecords 








Entry 

2P Progress 

2D Decision 

2F night Cancel 

2L Landljig Cancel 

2X Fllfo Cancel 

D. Date Change 


APO 


AFI 




iN-n 








X- 




X 
X 


- 





(1) Entries with date of first scheduled 
(inbound date If teralnatlon point o 
outbound date if origination point): 
KOA, KOM 



ugh flight, 



2 fit/date/apt 



(2) Entries with date of Information requested: 
2 fit/date/apt - I (Inbound date) 

2 fit/date/apt - (outbound date) 

2 flt/date/apt]^ apt^ (outbound date of aptj) 

(3) Entries with index date (or date of last departure in flight): 
2 fit/date/* 

2F 



1025 



B iR n n I f= F= i n T ^HrsHTiasifn 



MID SERVICES 



SECTION 



AIRPORT OPERATIONS FUNCTIONS - GENERAL 



Airport Opei 



sponsible for reporting local flight proyi 



ludes eEtimated arrival and departure t 
I a,.,.i.„ls, departures, and flight raturn. The 
ntified by a 2P (Flif o-Progress) 



Local flight progre 
from the sc' ' • - ^ 
informatjor 

detail below. These f - 

nublic and users of the Cowboy is to be curr 
Cowboy, both CRT displays and airport public 
information, and notification is sent to OCC 



led if 
display 



veral displays of flight infyrmation are available 
ent. These are discussed in 



lation available to th . 
• entry is received Ly ■ 
updated to reflect the 



the airport operations 



1. Entry format: 

2P fllght/date/atrport/ I. time 






2. General rules for 2P em 

a. 2P action code la re 
updatea flight infoi 

b. FLIGHT number muat b 

c. /DATE, If omitted, I 
ayatem. If a date c 
firat scheduled opei 



tlcted to PD, RC duty codea. 
tlon and sends notification 

assumed to be today isv the ( 
LDge flight, it should be the 



a. /AIWOI.T, if oi7,ilt=d. Is assu.rr^l t. 

0. / Sloslies must separate and bjirounc 

if specified. If tlie airport and dc 

t. T. 0. A. 1'. R. oiKl n l.uys niv !"■ c.,! 



■n,u (iir.i- 

'jut bound 
TIME may 



an I or O time fi 
Page 19, Item 16. 



■ (A, P, M, N) or CHT (H) 

oral. Time must accompany an ]_ 

,... A reir.ark may be entere 
u number f om Kcmarks tabl 



1026 



Ft n n I F= F= inTESRnFiTionHL, 



immmirmrtim 






SALhS WID SERVICES PROCEDURES 



I 



SECTION 



Bchriiiiled arnval Lime. The estlmiited arrival time must follow 

tui \_ key. 7,., .nbom.i; leuui^ii code (for puolic display') remains 

the same as )i was prior to tlie gentry. 

A indicates the fUcht has arrived at the airport. Arrival tiiw- 

Is optional, but will overlay the estimated arrival time If entered. 

The inbound remarks code is automatically changed to show "AMIVED". 

indicates the estimated departure time differs from the tegi.larly 

scheduled departure time. The estimated departure time musl follow 

the key. Th» outbound remarks code (for public display) remains 

the same as It was prior to the entry. 

n indicates the flight has departed the airport. Departure time 

is optional but will overlay the estimated departure time, if entered. 

The outbound remarks code Is automatically cnangcd to show "nEPARTED". 

£ Indicates the tlii,ht has returned to the airport. The Inbound and 

Tchanged. and other 



par 



emarks codes (for public display) 
(A, D, I, 0) in this entry are co 



OCC 



arding. Tlie outbound remarks code 



m. B^ Indicates the flight i 

altered to show "BOARDlNf:'. 

3. Examples (From a Dallas set on June 6) 

a. Entry 2P501 I 1045A (enter key) 

ates flight sol's Inbound time Into Dallas Is differ 
the regularly scheduled arrival time and Is estimate 
rive at 10:45 A.M. today. 
2P501/DAL/A 1040A 115P (enter key) 



ved In Dallas at 1040 A.M. today, 
ffers from the regularly schedule 
las and Is estimated to depart at 



dlcates flight 501 
at the outbound tli 

:15 P.M. today. 

ntry 2P501/6jra/D (enter key) 
indicates flight 501 departed Dallas today. 
Entry 2P501 IIO200P (enter key) 



Indicates flight 501 returned to Dallas and Is 
to depart again at 2:00 P.M. 



1027 



B H H n I F= F= tnTEnnHT/onHL. 



TBHP=F=ic: mFinuFim 



iVRT ONE SALES AND SERVICES PROCEDURES 



SECTION ^ 



B. OCC h RC Functl 



Gen 



'Jlie Opt-ration3 Control Center niid the Rcserv;ltlons Control office ore 
responsible for Inputting all flight statu-; decisions Into the Co-vboy 
system. Tliese functions are performed using an RC duty code. Tllght 

and equlpnicnt changes. 

Wlien an OCC or KC agent wishes to change the information previou.ly entered, 

he can cancel fllfo, which returns the flight to normal status, or input 

a new flight status decision message which contains the current information. 

displayed with a 2;^ entry (sec section 30-05 Displays). 



25 fllght/date/airportj \_ time remark time remark 
E equlpment-freeforra text 4 airport2...^ airport^Q 
\_ tlQie remark 0^ time remark j^ equipment-f rceform text (enter key) 



2. General rules for 2D entry; 

a. 2D action code restricted to RC duty code. 

b. FLIGHT number is mandatory. 

c. DATE is assumed to be today (Cowboy) if omitted, and the 
slashea surrounding the date should also be omitted. If the 
date is entered for a dote chanRa flight, it should be the 
index date (date of last departure) of the flight. 

d. Up to 10 airports may be specified J . one entry. 

e. _I, 0, and ^ parameters may be entered in any order or combinaEion 
and always refer to the preceding airport code. 



1028 



B n f=9 n t F= F= inTEHnHTianHL. 






PART ONE SALES AND SERVICES PROCEDURES 



SECTION ^ nt- 



>n Entry (cont) 

f. llHi: Is the estji-atcd irrivjl Line follouing jn I^ key, and 
flie estimated dopaituic tiint folloi-'lng the key. Tines must 

Input In 12-hour local (A, P, M. N) or CHI (E) ; clthor will be 
displayed as 12-hour local. 

g. RTMAKC codes n-.ust be cnterci; follovrins lirac, v-lth either the 

2 or the keys. The code Is a 1 or 2-ilicit code repreccntliir, 
the fliRht status remarks that ulll be displayed to the public 
via flapboards, flifo requests, display PMR, and sell sp?-e. 
The remarks codes and their interpretation may be displayed 
using a KO»HM entry. (Sec diBpliy remarks II-,C,l«r. 
h. EQUIP^ENT change should be indicated by an K. key uhen tliere 
is an outbound equipment type change. Tlie equipment type 

This equipment change will be reflected in the downline airport 



1. FREEroRM TEXT Is be£un with a dash and ended v' -Ji ^n end Item 
(l*) or enter -key. It lefers to the preceding airport co<U 

and Is on optional field. If omitted, however, an end item (l") 
must still be entered prior to the next airport code. 

J. Carriage returns may be entered prior to an airport code, prior 
of the keys (.]_, 0, or E^) , or anywhere within the freeform text. 



1029 



R H n I F= F= inTEHilHTIOnFti- 



WFiH^F^tmmnntJf^m 



:'ART ONE SALES AND SERVICES PROCEDURES 



SECTION i-e. 



C. Decision Entry (cont) 



o. Entry 2D 501/5jra/nALI lOOOA 5- "EATHEK DELAY •' (enter key) 

indicates flight 501 fcT the 5th of June will be late 
arriving Dallas. tstlmateil time of arrival 
is lOOOA. The remarks cede 5 uill be 
reflected In tlie displays, 
b. Entry 2D 501 DAL 130P5 E 707- 

MEUIAIJICAL ON 747/ .4NL I 400P5 (enter key) 



indicates flight 501 will be delayed oi.t of 
maintenance delay (remarks code 5) uill subs 
th» reov.'arly scheduled 7';7, end >,rill be lati 
due to the nialntenai.cc delay. 



a 707 fo 
1-G HN'L 



1030 



B H Fi n t F= F= inTEnnnTKonFSL. 



TRmF'/^immnnuffm 



SALES AND SERVICES PROCEDURES 



SECTION 



Landing Cancel Entry 

1. tntry Format; 

2L Fllght/DaLfc/Airporti-Frecform text/ 
Alrportj. . .Alrportg-Frcefonn Lext (enter key) 

2. General Rules for 2L entry: 

a. 21, action code Is restricted to an RC duty code. 

b. FT.IGHl number Is mandatory. 

<:• /DATE/ is a mandatory entry. If it is a date 
change flight, the index date (date of last 
departure) should be entered. 



d. Up to 8 alrpL'rta nay be sjiecifl 

e. -FUKF.FflRIl TEXT In bopim uf 
item (,1) or end-of-Die=.3ace 
airport. If frecform 
must precede the ne; 

optional, but If ente 
£. Carriage 



and 



m 



rport code. Freeform text is 
ill be appended to fllfo displays, 
may be entered prior to airport codes, prior 



slosh preceding freefo 



iiyvh. 



g. The Inbound and outbound remarks codes are changed to 'CANCKLI.l 
for all airports in the entry. 
3. CKatnples: 

"■ Entry 2L501DAL/18MAY/DIRECT FLIGHT ATL-llNL (enter ke; 

indicates the landing at DAL is c:inc^licd today. 
b. Kntry 2L118/ieHAV/Tin.-WCATlUJKi' 

LlTjlMEH-KXTKA SECTION (c iter key) 
indicates the landing at TUL Is cncelKd due to ucathcr 



landing at HEM is canc-llcd 



1031 



B H n n t F= F= inTEnnHTiannL. 



^nnf==F^ic mnnuHL. 



SALES AND SERVICES PROCEDURES 



SECTION 



2V aight/dntc-freerorm tc:<t (enter key) 



an RC duty c^de. 



2. General Rules: 

a. 2F .ictlon code Is restrl 

b. FLICHT numher mandatory. 

c. /DATE mandatory. If a date-change flight, date 
entered is the index date (date of last departure) 
for the flight. 

d. -FREF.FOm TEXT must be preceded l.y a diish and ended villi 
an cnd-of-message. FreeforiL text is optional, but IC 
entered, Llie contenta will be displayed In response to 
reMueoia 101 flifo, display i-Nk'f and sell space attempts, 

i. Public displays (airport flapboards, fllg)it status, etc.) 
will automatically show 'CANCELLED' for all airports In 
the line of flight. 

3. Examples; 

a. Entry 2F501/18 MAY-HOLIDAY SCHEDULE (enter Icey) 



flight 501 is cancelled today 



Entry 2F501/4jm,-HOLIDAY SCHEDirLE (enter Itey) 

indicates that flight 501 is cancelled July 4th i 
to holiday scheduling. 



1032 



B Ft n n I IF F= tnTEnnnTionrsi- 



mmm^mmFff^mp^/m^^mFtnuma. 



PART ONE SALES AND SERVICES PROCEDURES 



I 



SECTION 



F. Cancel Flifo Entry 



2X Fllght/Date/Airportj Airport^. . . Alrport^g (enter key) 



2. General Rules: 



FLIGHT I 



8 restricted to an RC duty 
mandatory. 



/Date is mandatory. If- date-change flight, date 
is index date (date of last departure) for flight, 
index date (date of last departure) for flight. 

d. If no alrportn arc specified, tllto Is cancelled for the 
entire flight. If specified, fllfo la cancelled for the 
alrport(s) listed only. 

e. 'Fllfo' Is considered to be Initiated by 2D. 2F, and 2L 

negated by a 2X entry. 
£. A 2X entry causes the remarks for public display to revert 
back to an 'OS TIME' status both Inbound and outbound for 

g. Other Information pertaining to the flight Is restored as 
much as possible from Information In the Inventory record. 
3. Examples: 

a. Entry 2X 501/18MAY (enter key) 

Indicates that flifo for the entire flight for today Is cancelled. 

b. Entry 2X 501/20JL-N/DAL Xenter key)' 



fllfo for flight 501 on the 20th of Ju 
lied fir Dallas only. 



1033 




ONE SA1£S AND SERVICES PROCEDURES 



rtiona 



General 



While Airport Operations and Operations Control Cente 
for the input of flifo into Cowboy, this information 
passengers through the Sales personnel (Reservations 
Reservations Offices or the General Sales Agents on c 
Airport or City Ticket Offices) . 

Sales agents receive flight information automa 
PNR or sell space request. Other information 
flifo display requests. 



rsonnel are responsible 
?nerally conveyed to the 
-.3 at the Central 
it the respective 



ally in response to a display 
available through the use of 



PNR or Sell Space 



2D, 2L, or 2F entry 






Flifo Information automatically appea 

* PNR or segment sell entry, only if 

ha3 been made affecting the segiaent sold. The format of 

the Information displayed follows the Bame format as that 

of a 2 flifo request entry. 

a, Dleplay 
502 15 HAY . 

HNL-ATL ETD 500P Gl PA ETA900A 
G20 P NORTH ON TIME 707 

indicates that there was an outbound equlpmant change 
(707 departing UML rather than the usual 747). 

b. Display 
501 4 JUL 

DAL-HNL CANaU-ED DUE TO HOLIDAY SCHEDULE 
indicates the flight was cancelled and freefonn text 
that wao Input with the 2F entry la appended to the 



Display Flifo Requ 



Eic flight/date may be obt.- ined using a 2 
3 for the flight/date/airport, scheduled 

and/or departure times, is returned to t 
3 detailed descripton of the 2 flifo requ 



1034 



H n n I F= F= inTEFsnnTiannL, 






I'ART ONE SALES AND SERVICES PROCEDURES 



J. Displays - Gen 



three basic flifo displays initiated by 2, 



and 2*H acti 



The 2_^ and 2*H requests generate displays of copies of input messages which r 
affected the~Tlight/date requested. 2n) includes all of the messages and ij 
only those messages retaining a current status. Each message is accoir'panied 
information identifying the initiating agent and the date and time of the e:,' 
2* and 2*H displays are restricted to PD and RC duty codes. 



1. Input HCBSage Format: 

2 night/Date/Alrport Renter key) 

Inbound mid Outbound Informati 
2 night/Date/Airporc/I (enter key) 



Inbound Informatio 
i night/Date/Alrport/0 (enter key) 



2 Fllght/Date/Alrpor 



Outbound information, 
(enter key) 



Segment Infortratl 
I Fllght/Date/AlfportJ^ (enter key) 



Inbound and Outbound infonnation 
for all airports in line of flight 



2. Ceaeral Rules: 

a. 2_ action code available to all duty codes. 

b. FLIGHT oust be entered. 

C. /DATE may bo omitted and is assumed to be today In 
Cowboy syatem. If It is a date-dunge flight, the 
scheduled date corresponding to the Information re 
•bould be entered (See section 30-01-':). 



1035 



^ H n n I F= F= snT^nnnTtanFtL. 



Wnm='F=tmmFtnuHm 



PART ONE 



SALES AND SERVICES PROCEDURES 



SECTION 



il (cont) 



/AIRPORT may be omitted for alnglc-alrport requests. 
Both airports must be entered for segneat requests. 
If omitted, It iB assumed to be the airport In the AAA. 
A Blaah Is never required before an end-of-message. 
Fllfo may be requested by any duty code, 
mples: (Entries from a DAL set on June 15th) 
Entry: 2118 (enter key) 
Basponse: 
118 15 JUH 

DAL ETA 945A CI PA ETD 1045A ON TIME 
showing flight 118 arrives Dallas on June 15th at 
9:45A at Gate 1, parl^lng area A, and departs at 10:45A 
from tha same gate, on time. 
Entry: 2118/1 (enter key) 

118 15 JinJ 

DAL ETA 945A CI PA ON TIME 

showing Inbound information only. 



c. Entry: 218/0 (^ 



key) 



118 15 Jira 

DAL ETD 1045A CI PA ON TIKE 
showing outbound information only, 
d. Entry: 2118/IAHDAL (,enter key) 

118 15 JUN 

LAH-DAL ETD 900A Gil P NORTH ETA 945A CI PA ON TIME 

showing segment infonoatlon. 



67-378 O - 76 - vol.2 - 27 



1036 



B Ft fl n I f= F= ItlTEHnHTianHl- 



wHWFmc mnti 



PART ONE SALES AND SERVICES PROCEDURES 



SECTION .„ nu> 



Eutry: 2 ll8/» 

Raspoaae; 

118 15 JUN 

lAH ETD 900A Cll P NORTH ON TIME 

DAL ETA 9'i5A CI PA ETD I045A ON TIME 

TUL ETA 1132A G6 ETD UOON ON TIME 

FSM CANCELLED WEATHER 

LIT ETA 103P G7 ETD 145P C8 ON TIME 

MEM ETA 217P G« ETD 240P ON TIME 727 

BNA ETA 319P Cll ETD 345P ON TIKE 727 

JFK ETA 650P C22 TRAFFT.C 

ahoving a landing cancellation at FSM (vlth freef 

appended), and equlptnent change outbound at HEM, 

equipment change at BNA, and an Inbound arrival d 

JFK due to traffic. 



K. Display Cur 



1. Input MesB.nge Format; 
2* Fllght/Uate/Airpor 



k^y) 



2. General Rules: 

a. 2* action code restricted to RC and SU duty codes. 

b. If FLiaiT l3 omitted, and airport is npoclfled, 
current fllfo is displayed for all flights inbound 
or outbound that airport. If FLIGHT '.s omllLed and 

all fllshts, that airllno (flight jdvlsory message recap). 

Cowboy system. If it la a date-change flight, the 
index dace (date of last departure for th.? flight) 
should be entered. 



1037 



B Ft H n I F= F= inTEFtnHTiannL^ 






mF=ammBnuP9m, 



SALES AND SERVICES PROCEDURES 



SECTION 



K. Display Current 



'lifo (cont) 



d. I£/AIKPORT Is omitted, It ia assumed to be the air: 
code of the AAA. t All, may be entered to get a di: 
of the current fllfo for the entire flight. 

e. Only the mo3t current 2D, 2L, or 2F messages vlll 

3. Kxan-^les: (From a DAL set on J.u^e 15th ■ 

2*11 501 H ALL example for complete activity) 
a. entry: 2'501 t Al.l. 

501 15 JUM 

01. PIIRC llKl 15JUM 1015C 
2D 501 DAL I 1255ii6 0130P6 E707-UEAT11LK DELAV 
OUT OF ATL. MECHA.S1CAI, ON 747 4 KO, I «15i! 6 
b. Entry: 2* 501 DAL 
Response: 



L. Display History Fllfo 
1. Entry Format: 

2*11 rilght/Date/Alrport (enter key) 



iral Rules; 

2*H action code restricted to RC and SU duty coi 
If tXICirr IsomlttcJ, and airport is spociricd, 
entries affccUng th.it airport arc displayed. 
Is omitted and airport Is j ALL , cntr- is rejec 
If /DATL if omitted, it is assu:/.ed to be today 
Cowboy system. If it is a date-change flight, 
index date (date of last departure in flight) t. 
be entered. 



1038 



B n H n g f= F= BnTEnnHTiannL. 






jAles and services procedures 



I 



SECTION 



L. Display History Fllfo 



d. If/AIIVOKT Is omitted. It Is aesumed to be the airport CO 
of the AAA. It ALL may be substituted for the airport cod 
display all airports in the line of flight. If H ALL is 
entered without a flight nuobcr, the entry is rejected. 

e. All entries (KOM, 2P, 2D, 2L, LF, and 2X) affecting the 
fllght(B)/date/alrportCs) specified will be displayed. 



(Fr, 



DAL 



15) 



a. Entry: 2*11501 ALL (enter key) 



Response: 
501 15JUN 

01. ^KPD ATL IJJUN lOOOC 
2r 501 1210P 

02. PHRC HDQ 15JUN 1015C 

2D 501 n.U, 1 1255P6 OnOP6 E 707-WEAraER DELAY OUT 
MECHANICAL OH 747 ^ IINL I 415P6 

03. HKPD ATL 15JUN 1115C 
2P 501D 

04. WJPD . DAL 15JUN 2300C 
2r 501A100P 

05. WJPD DAL 15JUW 2330C 
2P 501D130P 

Entry: 2*H501DAL (enter key) 

501 15 JUN 

01. PHRC HDQ 15JW1 1015C 

2D 501 DAL I : 255*6 13GP6 E 707-UEATHER DELAY 
OUT OF ATL, MECHANICAL ON 747 ,1 HNL I 415B6 

02. WJPD DAL 15JUN 2300C 
2P 501A lOOP 

03. WJPD DAL 15JUN 2330C 
2P 501D130P 



1039 



B H H n I F= F= inT^HnHTianHL. 



'immnR'f=F=iWfi;^mFinuHi^n 



I'ART ONE SALES AND SERVICES PROCEDURES 



SECTION i-ffr 



V. L. Display History Flifo 



Cnt 



2'ir.OlHNL 



Kesponsc: 

501 ISJW 

01. PHRC HDQ 15JIIN 1015C 

2DS01DAL I U5M6 130I> 6 E 707-VTAmER DELAY 

OUT OF ATL. HEQIAMICAL ON 747 ^ KIL I '•ISse 



NOTIFICATIONS 



Reservations Offices, Operations Control Center, Reservations Control Center and 
Airport Operations at out-stations are notified of any flifo transactions affecting 
their operation. The type of notification generated by Cowboy is determined by the 
action code of the message input by the user. 



and KF entri 



to the RO print 



2P entry is processed, OCC is notified by hard copy and an unsolicited message 
sector/terminal designated to handle the flight. The airport initiating the 2P 
also receives hard copy notification. 



2X entries 



When 2D, 21., 2F 

and hard copy notification. 
3f flight recei 
ng cancel) entry rece 
the entire flight, u 



the li 



cessed, OCC receives both unsolicited message 
11 Res offices are notified by hard copy. All airports 
hard copy notification. The airports included in the 2L 

unsolicited messages. If the 2X (cancel flifo) entry 
licited messages are sent to all~the airports in the line 
of flight. If the 2X entry affects only a portion of the flight, only those airports 
listed in the 2X entry receive unsolicited messages. 

The addresses for CRT's and printers at the airports are found in the Airport Operations 
Notification Record (NOT). These addresses may be initialized and updated using the KOT 
entry (see Paragraph jj c 21) They may be displayed using the KO* entry ( see 
Paragraph II, C 6 thru 71.S. 

The addresses for CRT's and printers at OCC and the Res offices are contained in the 
Flight/Sector/Terminal Association Record (FST) . Sector is considered a "slush" 
sector and should reference a CRT which is designated to handle items which are not 
directed to the normal sectors 1-6. Sectors 1- 6 will receive notification as 
directed by the FST schedule and/or ATI item sector designation. Sectors 9-19 are 
RO addresses of the Res offices which are to receive notification. These addresses may 
be altered using a KFS entry (see Paragraph Ii:i,A,6)and displayed using a KFL entry(iee 
Paragraph III, A, 7) . 



1040 



B H n n i F= F= inTERnHTianHL, 



"T^FfrnmcmFihunL^ 



SALES AND SERVICES PROCEDURES 



SECTION 



A chronological list of all entries affecting a flight/date is automatically maintair 
in the Flight History and Information Record (FHI) . History may be displayed using 
a 2*H entry (Paragraph V.J.) or a 2^ entry (Paragraph v. J. ). 

2F and 2L entries only may be entered outside the current period. They, too, are 
stored in the FHI and will be reflected in the daily records (ATI's) when the flight 
is cycled by file maintenance. All entries (KO, KF, and 2^) made during the cvrrent 
period are recorded in history. 

VIII. ERROR RESPONSES 



IKVALID ENTRY 
INVLAID SINE lOR EMIRY 
IKVALID FOR-'UT 
INVALID FROM/TO CODE 
IlfVALID RMKS INDEX 
INVALID FIELD ID 
ICTALID BAG CLALM 
INVALID CORR 
DTVAUD PAR.': AREA 
INVALID TRA.\S STA 
INVALID TER.V1 
B,-VALID VIA CODE 
INV/ilD GATE 
INVALID CONTEXT 
INVALID AIRLINE CODE 
INVALID APT/ALC 
NO MATCH ON FLT/DATES 
INVALID IXICirT 
INVALID SECTOR/ INDEX 
INVALID FRTQ 
API CA-NTJOT BE SPEC 
INVALID ZONE CONTROL 
IKVALID FLT/.DATE XXXXX 
FILE MAINT CVCLING 



1041 



B Fl Fl n i F= F= iriTIEHnHTianFSL, 



WSS&MMiWmmtumi^, 



ONE SALES AND SERVICES PROCEDURES 



SECTION w ''"- 



Entry 



RC, 


PD 


RC, 


PD 


RC, 


PD 


RC, 


PD 


None 


None 



RC, SU 
RCSU 



KOA APO Add 
KOA AFI Add (OA) 
KOX Del. APO 
KOM Modif APO/AFI 
KG* DSPLY APO 

KG* 6 MAi DSPLY AIF CVR/DTE(W/S) 
KO* ISHAY DSPLY ALL FLTS BROSS/DATE 
KO* DAL/BN DSPLY ALL BN FLTS/APO 
KO* DAL/OZ DSPLY AU- FLTS/APO/OA 
KO* DAL/500 DSPLY FLT/APO/ALL ALC 
KO* DAL/72 DSPLY FLT/ALL SCHEDS 
KO* DAL/50 2/6MAY DSPLY FLT/DTE 
KO* RM DSPOY RM TABLE 
KO* RM 14 DSPLY SPECIF RM. 
KO* PD DSPLY PHYS. DESCRIP TBL 
KO* PD 12 DSPLY SPECIF PllYS ■ DESCRIPT - 
KO*CF DSPLY CONF.IG YOUR APO 
KO*CF DAL DSPLY CONFIG SPECIF APO 
KG* NO DSPLY NOTIF TBL 

KG* NO UAL DSPLY SPECIF NOTIF FOR APO 

KOT DAL/RO03/C1O7O11A/CZ?70116 ALTER NOTIF DEVICE ADDRS. 
KFA/72/25MAY31DEC/X ADD FST ASSOC ITEM 
ZDAL20KC3 

KFX/72/25MAY31DEC/X DEL FST ITEM 
KFM/72/2 5MAY MOD FS OUR PD SPEC DTE DAL2 
XF* DSPLY FST RECORD 
KFS3/07(J11A HOD SEC TERM REC 
KFS 31/? HOD TERM ASSGND SECfT NGV31ALS0 
KFL DSPLY SEC TERM ASSOC TEL 
KFL6 DSPLY SPECIF SEC TERH ITEM 
2P PROGRESS ZP72/14MAY/DAL/I130pol4op 
2D DECISION 2D72/14MAY/DAL/1400p5 
2F FLT XNCL 2F72/14MAY/-FRi;EFORM 
2L LNDG XNCL 2L72/14MAY/DAL-FREEFORM 
2X FLIFO MSG XNCL 2X72/14MAY/DALMCITUL 
2 DSPLY FLIFO 272/1 4MAY/DAL/I 
2* DSPLY CUR FH'.O 2*72/14MAY/DAL 
2*H DSPLY ALL FLIi'O HSGS 
2*H72/14MAY/DAL 



1042 



B Fi n n i F= F= inTEnnHTionHL^ 



^nmFPimmmhUfi& 



SA1£S AND SERVICES PROCEDURES 



SECTION 



GENreRAI. INFORMATION DISPLAYS 
DUTY SIGN RESTRICTION 
None 



KG* 
KO'KHAY 
KO*DAL/155 
KO^RM 



K08PD21 
KO^CFDAJ, 



DSPLY APO ITEM 

DSPLY AFI-SPECIF DTE 

DSPLY SPECIF FLT/ALL SCHEDS 

DSPLY REMARK TBL 

DSPLY SPECIF REMARK 

DSPLY PHYSICAL DESCRIP TBL 

DSPLY PHYSICAL DESCRIP ITEM 

DSPLY APO CONFIG 



Specific Flight Display 

2 155 

2 15S/21MAY/DAL 

2 15 5/21MAY/* 

2 155/* 

2 155/21MAY/DAL/0 



FLIFO CUR DTE/LOCAL APO 

FLIFO DXL I i I 

ALL STA'S/DTE 

ALL STA'S/CUR. DTE 

OUTBOUND INFO ONLY 



1043 



APPENDIX M 



B fi fi n t f= F= inTEFsrs FSTBannL . 

PASSENGER SALES AND SERVICES PROCEDURES 1 SECTION ^^^ 



INTERRUPTED TRIP EXPENSES 

GENERAL 

When flights are delayed or cancelled or passengers arc off-loaded or over-carried 
beyond their destination, or their flight is terminated short of their destination, 
such passengers should be shown every courtesy. Everything within reason should be 
done to alleviate their inconvenience. Onward transportation via our own services 
or the most suitable means available should be arranged as quickly as possible, and 
complete information should be given to the passengers covering the time and means 
by which they may continue their journey. 

When passengers are delayed, misconnect, or canceled for any reason, whether or not 
expenses are allowed, it is the duty of Customer Service employees to deal sympa- 
thetically and courteously with the persons involved, to be genuinely helpful in 
securing alternate or continuing transportation. 

FLIGHT DELAYS, CANCELLATIONS, MISCONNECTIONS AND OVERSALES 

A. CONDITIONS UNDER WHICH EXPENSES WILL NOT BE PAID 

Layover expenses will not be paid when unforeseen operating conditions from 
riots, civil commotions, government embargos or regulations, wars, hostilities, 
disturbances, unsettled international conditions, unless special circumstances 
warrant the payment of such expenses upon specific authorization by the Regional 
Vice President. 



B. CONDITIONS UNDER WHICH EXPENSES MAY BE PAID 

1 . Expense Allowance for Confirmed Passengers 

In case of delay, cancellation, or missed connection to a Braniff flight, we 
are required only to refund flight coupons good on Braniff. Under certain 
circumstances we will, however, pay certain expenses incurred by passengers. 

In case of flight delay of more than three hours or flight cancellation for 
one of the following reasons — mechanical; mechanical equipment; on-line 
misconnect, i. e. for reasons controllable by Braniff — expenses in 
accordance with the following may be undertaken by the Company. 

C. LIMITATION OF PAYMENTS 

1. Domestic Services - Authorized Expenses 



1 accordance with the amo 
Lon form, except that din 
light layover is involved 



1044 



B n H n t /= F= inT^HnnTtonns^ 



SSI 


m 


i^S^IPS«PiFW 


fPF=^fg?' 


mftnuni^/?] 


PART 


ONE 


PASSENGER SALES AND SERVICES PROCEDURES X 


SECTION ^^g 



INTERRUPTEQ TRIP EXPENSES 



FLIGHT DELAYS, CANCELLATIONS, MISCONNECTIONS AND OVERSALES (Continued) 


C. LIMITATION OF PAYMENTS (Continued) 


1. Domestic Servic 


:es - Authorized Expenses (Continued) 


b. Coach Passe 


angers. 


(i) One Mc 


.al. 


(li) Cab f£ 


ire: airport to city. 


(lii) One tl- 
origir 


iree minute telephone call, or telegram, to point of 
i/destination. 


2. International S 


lervices (LAD, Mexico, Hawaii) - Authorized Expenses 



r First Class and Coach Passengers in the event of delay of more than 
ree hours, cancellation or missed on-line connection, and the passenger 
LI continue on Braniff, the following expenses may be paid: 

Cab fare to and from city/airport. 

One telegram to point of origin/destination. 

Lodging until departure of next available 

Meals until the departure of the next aval 



Iff flight. 

? Braniff flight. 



Department of Defense personnel, civil or military, coach or first 
class, whose TR ' s have a prefix of any letter "M" through "Z" are 
entitled to have layover expenses paid as per C.l.a. (i) through (i 
above, in the event of flight cancellation for any reason or delay 
in excess of three hours. 

All revenue passengers, after departure from their point of origin, 
whose flight overflies the passenger's destination, regardless of 
cause, may have their layout expenses paid as per "C 1 a" above 
while awaiting the first available transportation to their desti- 



The Senior Customer Service Supervisor on duty may authorize payment of 
expenses for either coach or first class passengers in addition to those 
specified in c.l. and C.2. above in case of hardship or other compelling 



ich the Supervisor 



Llling to justifv. 



OVERSALES 



When an oversale occurs due to a reservations error and a passenger 
boarding or must be off-loaded from a flight or give up a superior 
accommodation for which he holds a confirmed ticket or a confirmed 
according to our record, the Company will take the following action 
by the situation: 



1045 



FS F3 n i ^ F= 



-^ n T .'E Fs in Fs 



PART ONE PASSENGER SALES AND SERVICES PROCEDURES 




INTERRUPTED TMP EXPENSES 



FLIGHT DELAYS, CANCELLATIONS 
E. OVERSALES (Continued) 



MISCONNECTIONS AND OVERSALES (Con 



having met 



will assume layover expenses authorized m Paragraph C, 1., b. above. 

F. REDUCED ACCOMMODATIONS 

In the event of a situation arising at the Departure Lounge or Gate from an 
sale in the first class or equipment change, and the passenger is willing t 
downgrading to coach or economy class accommodations, a refund of the appli 
class or equipment differential will be made by the Manager - Passenger Rev 
A Accounting, Dallas. See Section 186, XXII for refund procedures. 

As an aid to the passenger in applying for the refund and to facilitate the 
Finance and Control Department in making payment thereof, the Departure Lou 
Gate Agent will furnish the passenger with an envelope type of refund appli 
(Form 964-735077). When presenting this form, the Agent will assist the 
passenger, if necessary due to age, physical condition or languacji! bnrricr, 
Its completion, particularly by the insertion of the origin an'l destination 
downgraded flight coupon in the spaces: 



REFUND DUE FROM 



TO 



When the 


"Fo: 


rm of Pa 


lyment" 


box 


of the 


night ccpc 


.n indic 


at-es 


that th 


purchased 


by 


use of 


any fori 


^ of 


credit plan or arr 


angemen 


it, SI 


jch as -c 




rd, 






3ove 


rnment 


Transportati 


on Requ 


lest 


(GTR) , t 




sht 


>uld be 


advised 


tha 


t the I 


refundable va 


luo of 


the < 


roupon V 


credited i 


to 1 


:he card 


1 holder 


•s a< 


ccount 


or to the ap 


.propria 


ite Governmer 



1046 



B FS F9 n I F= F= SSlTGFinFiTiOnFSi- 






PART ONE PASSENGER SALES AND SERVICES PROCEDURES 



SECTION 



INTERRUPTED TRIP EXPENSES 

FLIGHT DELAYS, CANCELLATIONS, MISCONNECTIONS AND OVERSALES (Continued) 
F. REDUCED ACCOMMODATIONS (Continued) 

FACSIMILE 
(FORM 964-735077 ) 



UPON COMPLETION OF YOUR JOURNEY, please fill in Iha 
lower portion of this form. BE SURE you endorsa your 
PASSENGER COUPON 
PLEASE PRINT ALL ENTRIES .... THANK YOU 



1047 



B fi f^ n s F= F= ^ rs T ^ Fs n f^ ~r t o n Fs 

J SECTION 






PART ONE PASSENGER SALES AND SERVICES PROCEDURES 



INTERRUPTED TRIP EXPENSES 

FLIGHT DELAYS , CANCELLATIONS , MISCONNECTIONS AND OVERSALES (Continued) 

G. AUTHORIZATION AND PAYMENT 

Payment of interrupted trip expenses to vendors, such as hotels, res 
ground transportation operators will be made by use of expense vouch 
961-420166 (Rev. 9-69) arid will be executed as follows: 



in Section 168, I] 
*Fill issue voucher 
and the passenger 

i. Meal Allowances : 
(including food, 
passengers: 



entitled to transportation, meal, or lodging as specifie 
. B., the Senior Customer Service epresentative on duty 
3 to customers. The passenger's name should be printed, 
should be advised to sign the same line. 



the limits established for the as 
the Director/Manager - Airport Cv 
authorize raising such limits by 
action must be followed by a repc 
Vice President. 



or transports 



Coach/Economy Class 

SI. 50 
2.50 
3.00 

2ver it may be deemed necessary 
sumption of interrupted trip exc 
stomer/Passenger and Cargo Servi 
i reasonable amount; when so don 
rt on the circumstances to the F 



the 



nter the 
propriate 
ing also 



Dunts for 
name of 



The voucher must b 
service employee i 
space titled "Agent". 

If the voucher is issued for meals only when hotel and transportation are 
NOT required, the voucher will be separated by the agent after completion, 
giving the applicable coupon to the passenger and destroying the unused 



1048 



B R n n I F= F= itiTEnnHTtonHL. 

I 



m^Ftmm&mFinuFiis 



PART ONE PASSENGER SALES AND SERVICES PROCEDURES 



INTERRUPTED TRIP EXPENSES 



II. FLIGHT DELAYS , CANCELLATIONS , MISCONNECTIONS AND OVERSALES (Conti 
G. AUTHORIZATION AND PAYMENT (Continued) 



^:mmmmmmmfmfmm 



rnANIPORTATION COUPON 



/■■AL COUPON 



BFtFiniFf=inTEFtnnTianFiL. 



HOTEL COUPOr 



• ISiSIMffgsgl/mMi 



BFfRniFF^irtTeFtnFITianFIL: 



fBiRnhiF=ipihriEr^npiTiahf^ 


AUDIT COUPON 

jN9 27303 


ini oooo loins "UMTO 












ROOM 




r>o .«h lh„ ,.r„c. 


IK TB£ A. 




\ \xr 


iiU^ 




P.™^ ^^^ \ A \P.A^..^.~. 


- 


H ^ 






1 „_. ^,.,J:_ 


MEAL 




GROUND TRANSPORTATION 






; -r-iL--— --^- = 


GROUND TRANSPORTATION 












T0*I»K1«I 



5. Chef Check : Chef Checks, used by Inflight Services Department, are issued 
by the hostess to passengers that did not receive a meal on board the 
flight due to meal shortage. The Chef Check is valid at airport restaurant 
in cities indicated on the reverse side of the check. It is not redeemable 
by cash, in part or in full. Chef Checks may be used to pay for drinks in 
BIC Clubs but are not refundable in any part in cash. 



N2 26901 



BiRHnir=f=lKiTEHnHTjanfiL.<, 



'N2 269C 



CHEF CHECK 




DATS FROM OATt OF l&SUC 



H. MONITORIAL RESPONSIBILITY 

The Director/Manager - Passenger Services, Passenger and Cargo Services, or 
Airport Customer Services, as the case may be, will exercise control and 
review, on a weekly basis, the vouchers issued by his station, in order to 
ensure that they are issu,id in accordance with provisions of sub-paragraphs 



1049 



B fi H n B F= F= I SI T E H B l FS T I O tl S=S L. 

PART ONE PASSENGER SALES AND SERVICES PROCEDURFS X ^^^"""'Q^ 



m^mmmm 



INTERRUPTED TRIP EXPENSES 



III. BI COURTESY MESSAGE SERVICE 



The Courtesy Me 
a party at dest 
communication c 
cable/radio for 
The Courtesy Me 
in the case of 



sage Service 



jffer 






ify, on behalf of the passenger, 
n arrival time or airport of arrival. To reduce 
be used in lieu of sending a free telegram/ 
the passenger in cases of flight delay, cancellation or overload, 
sage (Form 963-533005) should be sent as soon as possible, especially 
hort sectors, in order to provide sufficient time for the destination 
station to contact the passenger's friends before they depart for the airport. If 
the passenger insists on including information of a personal nature, or if the party 
to be notified is not located in or adjacent to the city served by BI , normal 
commercial channels should be used as authorized in Article II of this section. 



A. 



WHEN COURTESY MESSAGE SERVICE IS OFFERED: 



the Courtesy Message Servi 



the Courte 



RESPONSIBILITY FOR OFFERING DELAY ADVISORY SERVICE: 



lotification is possibl 
since timely advice can the 



t notifies the passenger of the delay, off-load 
s responsible for offering the Courtesy Message 
y important that it be offered when telephone 
■ ■ the passenger's reporting to the airport, 
de at destination. 



DELAY ADVISORY SERVICE PROCEDURES: 



notifies the passen 
passengers the dela 
portions of the fol 
When distributing t 



diffe 



any, pai 



Alsf sti 

BI destination who might be planning to me 
available for the transmission of messages 
destination. If information is by telepho 
information supplied by the passenger. 



ation to Passengers : The BI representative who 
s of the delay will, at the same time, offer the 
dvisory service. The passengers should complete 
ing form as appropriate to their arrival plans, 
form to passengers have them consider the time 
ticularly when a business phone number is given, 
irily to notify 



then 



Check the completed form for 
leaves so that any illegible 
passenger. Make certain that 
number is shown. 



Legi 



before the delayed flight 
may be clarified by the 
nd/or area code with phone 



Address the message to t 
copy to the Reservations 
Depending upon facilitie 
be established on which 
action requested in the 



lo Airport Customer Service Manager with 
Office at BI destination of the passenger. 
3 and office coverage local agreement should 
5f the offices addressed will take the 
nessage. 



1050 



J SECTION 



^^^ms^mmmF^mm'mLi'^m 



PART ONE PASSENGER SALES AND SERVICES PROCEDURES 

INTERRUPTED TRIP EXfENSES 
III. BI COURTESY MESSAGE SERVICE (Continued) 

C. DELAY ADVISORY SERVICE PROCEDURES: (Continued) 



(2) Procedu 



for the Offi 



!ives Delay Advisory : 



Immediately upon receipt of the message call all contacts, supply them 
with the latest arrival information and the BI telephone number to be 
called if it appears desirable for the party to check again on the arrival 
of the flight before leaving their home or hotel for the airport. This 
will eliminate extra calls to the contacts in cases where the flight 
arrival is indefinite or there is a change in the estimated time of arrival. 
Note on the message that it was delivered. If someone other than the party 
designated in the message answers the telephone, ' " 
that person and note his/her name on the Form. 



the 



sssage 



squired If Unable 



Deli 



Mes 



Send commercial telegram to the con 



Example: Mrs. Jan 



s MacArthur 

57th Street 
Illinois 



rms have served 

sent to the Dir 
Lting letters of 



^.■.»:.c,,^Ki ..exar _ons: Once the "BI Courtesy Message" 
heir purposes, »t the station of origin, they should 
-tor-Passenger Relations in Dallas for his use in 
apology to the passengers concerned. 



1051 



B Fi H n B F= F= iBiT^HnnTionnL. 






r. 



PART ONE PASSENGER SALES AND SERVICES PROCEDURES 



INTERRUPTED TRIP EXPENSES 

[II. BI COURTESY MESSAGE SERVICE (Continued) 

C. DELAY ADVISORY SERVICE PROCEDURES (Continued) > 

FACSIMILE 



Form 963-533005 




1052 



B ft Ff n i f= f= in T E Ft nn t t o n h l . 

^SECTION 



'Tf^F9F=F=ic mnnunt^ 



PART ONE PASSENGER SALES AND SERVICES PROCEDURES 



INTERRUPTED TRIP EXPEWSES 



IV. DEPORTATION EXPENSES 



The expense of detaining and deporting passengers in case of immigration difficulties 
and refusal of entry should only be assumed by the. Company if the to the extent the 
law of the country detaining the passenger so requires. The passenger tariff contains 
protective provisions disclaiming liability under certain circumstances. When such 
expenses must be assumed by the Company Cor the deportation of passengers originating 
on another carrier, such expenses will be charged back to the originating carrier. 

A. WHEN STOPOVER OCCURS ENROUTE 

When a stopover occurs enroute at a connecting point between BI and another 
carrier, the carrier bringing the passenger to the port where deportation 
expenses or fines are incurred will be responsible for such expenses, since 
it had full opportunity to check the passenger's documentation and status at 
the point of stopover. Where no stopover occurs enroute, the responsibility 
remains with the originating carrier. 

B. OTHER CARRIER PARTICIPATION 

In cases where the deportation expenses or fines result at an intermediate 
point or at the end of an interline haul participated in by other carriers, 
the provisions of the lATA Resolution 140 will be applied. 



1053 



CONTINENTAL AIRLINES RESPONSES TO AIRLINE QUESTIONNAIRE 

1, H3V0 you seriously considered lov;oring fares on any major routes 
witliin tlie past; five years? If so, did you file tariffs embodying 
lov.'er fares? (docket nu::.bcrs?) If not, why not? Do current Board 
procedures inhibit or encourcig-e tlie carriers to expcrimeni; with 
lov.'er rates? How? 

Continental has lowered fares in a great many markets in the past five years. 
This is partly because of its total commitment to economy class service, and 
partly because of. its efforts to bring lower fares to more potential travelers 
through selective discount, or promotional" pricing. 

Continental created economy service in 1962, by introducing this third unrestricted, 
available-to-anyone, basic class of service experimentally in six of its major 
markets. At that time, first class and coach were the two basic classes of service 
in existence. After proving its worth, Continental embarked on a program of 
expanding economy service chroughouc its system. Today, it is available vrherever 
Continental flies, but only where Continental flies. This low-fare, third basic 
class of service has been matched by most of Continental's competitors in the 
markets it serves, but it is not found outside the area served by Continental. 
This service is priced 10% below normal coach fares, and Continental is seeking 
the ability to reduce economy prices to 85% of coach in the pending Phase 9 of 
the Domestic Passenger Fare Investigation, Docket 21866-9. 

Continental was also the originator of standby fares available to anyone on an 
unrestricted basis on its late evening or off peak flights. This no-reservations 
service is priced 20% below the economy fare. 

Night coach service (including reservations) at fares 20% below normal coach is 
offered wherever Continental has offpeak f light-s operating in the qualifying time 
periods. 

Another highly useful low fare pioneered by Continental is the individual tour 

basing tare. Introduced in a handful of its vacation oriented markets in 1967, 

it has been steadily expanded to more and more city pairs showing promise for 
the production of new air vacation travel through this medium. 

Listed below are the numbers of Continental markets (city pairs) having each of 
the four fare types discussed above five years ago, and those currently in effect. 

Early 1970 Current 

Economy Seirvice 119 311 

Off Peak Standby 28 44* 

Night Coach • . 23 47* 

Individual Tour Basing 34 91 

* Including some pending CAB approval for early 1975. 

Although it has in the past encouraged discount, or promotional pricing, current 
CAB policy tends to inhibit the carriers from this type of pricing because of 
the complex and cumbersome procedures required for thrair approval. 



1054 



2. Do you support the type of "zoiic of rcasonab]ci;er>s " fare 
proposal advocat£;d by DDT and DOJ in Phase 9 of the D?ri? D-. 
you belileve such as zone v;ould lead to lov.'er fares? V.'hy? 



Continental supported the "zone of reasonableness" concept in Phise 9 
of DPFI, and continues to do so. It could lead to lovjer fares, either 
in all markets served by an individual carrier, or on a selective basis 
to reflect specific marketing or economic considerations in one or more 
markets. Continental believes the flexibility it would provide would 
encourage experimentation which the current rate-making system has a 
tendency to dampen. 



3. List representative figures to indicate the approximate proportion 
of business and pleasure passengers you carry on a) transcontinental 
flights; b) major short haul routes; c) minor short haul routes; 
d) international routes. 



(1974) 
Business Pleasure 



a) Transcontinental flights 
(LAX/ORD; LAX/IAH) 



b) Major short haul 
(LAX/PEN; DEN/ORD) 



c) Minor short haul 
(MCI /DEN; LAX/ELP) 



d) International routes 



1055 



4. Hov; do you determine the proper fare for a partic:ular city 
pair? Viho, v/ithin your organization makes this decision? What 
studies are made for use in making it? Have you studied the 
possible effects of increased fai^e competition on your fares, costs, 
and profits? Describe in detail the studies you. have made, and 
their conclusions. ' ■ • 

Normal fares, i.e., first class, coach and economy fares are currently 
determined on the basis of a formula specified by CAB, The basic formula is 
for coach fares, and it consists of a terminal charge and mileage rates usually 
applied to the non-stop mileage between each pair of points served. In the case 
where a carrier desires to common rate two destinations from a single origin 
point, their respective non-stop mileages are weighted by traffic to produce 
the common rating mileage. First class, economy and night coach fares are 
usually determined by a percentage relationship to coach. 

Discount, or promotional fares, are developed on the basis of a carrier's 
market research, or its judgment of the probable- results to be realized from 
a special fare directed at a certain segment of the public, for a certain type 
of use, for seasonal reasons, etc. IsTiile there are no numerical standards or 
determinants for such fares as there are for normal fares, they must be 
justified to the CAB on the basis of a projected profit impact, i.e., revenue 
from newly generated traffic less its cost of handling, and less the cost of 
revenue dilution from existing traffic diverted to the new fare. They must 
be marked to expire in 18 months or less, and re justified at the end of their 
original life if they are to be continued. 

Continental's pricing activities are centered in the Industry Affairs and 
Passenger Market Development divisions of its marketing group. 

There appears to be a rather widespi-ead misconception that there -is little or 
no price competition among airlines because fares are almost always the same 
for each carrier serving a particular market. Nothing could be further from 
the truth. It is the very intensity of the price competition that does exist 
that leads to the fact of uniform fares. Although a carrier may be firmly 
convinced, and perhaps even able to demonstrate factually that its service 
is better than that of a competitor, it is an extremely rare situation when 
one will permit another to. charge a lower fare, I'Then one carrier introduces 
a new lower priced class of service or creates a new promotional fare, the 
competitors in the market almost always move immediately to match the new 
offering. 



1056 



5. How many times during the past ten years have your company or 
competing airlines filed for fare increases? In wliich markets? 
How many times have you matched fare increases that the Board 
approved? In which markets? Has your airline, in circumstances 
where a competitor filed an application for a fare increase which 
wa$ approved, felt pressure — formal or informal- -from the CJ\]i or 
its staff to file for a similar fare increase? When? Describe. 
Has your airJine felt pressure from other airlines to match an 
approved fare increase? Describe. 

At different times fares are changed in a variety of manners. On some 
occasions they are changed by an equal percentage amount, plus or minus, 
and at other times by a fixed amount added or deducted from all fares. 
There are also occasions when there are both increases and decreases 
effected at the same time. Discount fares may be introduced, changed, or 
eliminated with or without a change in normal fares. 

Perhaps the best manner in which to respond to this question is to list 
the normal fares for Continental's three basic classes of service which 
were in effect at year-end for each of the past ten years. This is done 
in Attachment A for 19 city pairs which currently produce approximately 
two-thirds of Continental's traffic. 

Attachment B lists Continental's yield (passenger revenue per revenue 
passenger mile) for the past ten years. This is also a good measure of 
the airline customer's average price change from year to year since it 
takes into account all of the varying price changes and changes in traffic 
mix that produce the average yield. 

Continental has not felt pressured either by carriers or by the CAB to adopt 
any particular fare proposal since the occasion in October, 1969, when the 
CAB suspended various fare increase proposals which had been filed by the' 
carriers, and indicated the type of terminal charge and line haul rates it 
would approve for fare construction pui^joses. This occasion resulted in 
the Domestic Passenger Fare Investigation Docket 21866 and related litigation. 



1057 



1 O O I 









o o o o o 

o o o o o 



O u-1 O O O 1 



ooo oo ooo oco ooo ooo ooo 
ooo oo ooo ooo ooo ooo ooo 



s^ 



1058 



I I I I I 



o ooo ooo ooooo ooo 



o o o <r o 1 



I 0^ O 00 O 00 I 



O O O O 



OOOOO 



OOOOO fO r^ . 
OOOOO vD O I 

d ^' vo <r oC tr. IT. : 



OOOOO cr\ \o o 



OOOOO 



O O -H o 



1059 



r^ r-l 00 






o o o 

o m' rH* 



o -.o o 



o o o o o o 

o o o o o o 



O (N ■<? O - 






-J- O ' 

r~ o I 

i O O I 






e 2 M u e < 



U O • tL. u 



1060 



ATTACHMENT B 



CONTINENTAL AIR LINES. INC. 

PASSENGER REVENUE PER PASSENGER REVENUE MILE 

YEAR END 1965-1974 





_ _ - - -_. 


YIELD 

MAINLAND 






MAINLAND 


TO HAWAII 


SYSTEM 


1965 


5.77c 


- 


5.77C 


1966 


5.49 


- 


5.49 


1967 


5.58 


- 


5.58 


1968 


5.39 


- 


5.39 


1969 


5.51 


3.43C 


5.44 


1970 


5.89 


3.34 


5.45 


1971 


6.28 


3.66 


5.77 


1972 


6.48 


3.60 


5.84 


1973 


6.73 


3.58 


6.00 


mos. 1974 


7.42 


3.98 


6.80 



1061 



Enclose a statement of your costs, revenues, gross profits, interest on debt, 
actual taxes paid, net return to equity, and load factors for your domestic 
routes, and for your international routes broken down by individual route in- 
sofar as possible for each year for the past ten years, (Indicate as well 
those of your costs and profits that are attributable a) Your charter opera- 
tions; b) other non scheduled airline related activities; c) non airline 
activities) 

Include the same information for the nine months ending Sept. 30, 1974, 



Schedule I attached is Continental's System Income Statement for the last 
10 years and for the first nine months of 1974, Included under non-operat- 
ing income and expense is Continental's subsidiary operation (non airline 
activity) as requested above. 

Schedule II attached is Continental's International Charter Operation, which 
is included in the system information shown in Schedule I. 



1062 



L-^ <7^ (Nl-^O^ K-\ in r^ 

lO K1 — ^>OCT ^ in CO 

rr, N~, — . — 



* in 


ON 


ON 


o 


ON 


o 


o- 


_ 


































' 


o 


pj" 


- 


in 


^- 


in" 


m 


















2 "^ 

















vOCNin COCT-OvDO'X) 

CT> <7> O in -^ in — m 

CO o rsj — — 



< ON 

— Z ON o 

iij 1- cr h-' 

z < X CL 



IDCOCO CNI^Dln{NOCNI 

in o" ^^ — ~~ O «t — * ro 
in ^ — — — 



UJ S LU ON - 

^ iU I 

— h- o 

H Ol ir ~Q 



NOcbcO drOP-OOC 

— t^r^ CNO— rslONKI 

CO in (N nd' in — — (^" r-~ 






CMCOf^ ON'^'^ONO'CTN 

r^ovo — r-^ — oo 

NO ^'' (N kT CnJ (N d" oJ 





13,052 

2,713 
(409 


s 


§ g 


1 



o c 



s - 



1063 



|. .,,i,| . . |. . I 



■ X 2 u) 

O < ■* -o 



< z X . c 

-. £ ^ t - 

Z — ON ID 



Ov CT^ 



CM — — vDI^OO — in vO 

OOCO 'S-wro^KIO 

o' r-"" Ki CM CM — " on" cm 



O K-1 >OlCD^ C^ r^ VO 

p~(M in— voincor- 

CD O — — CO CD C7> 



0) ra o 



o I ^ o 



O (- o 



Z ^ z: 



1064 



7. Provide a statement of actual and predicated cash flov/ over the 
past five years. Provide a statement of projected cash flow over the 
next five years. V/hat load factors did you assume in arriving at the 
figures in these statements? How do the figures change assuming 
load factors of SSJC? 60%? 65%? 70%? 

The request to provide a statement of projected Cash Flow over the next 
five years cannot be accommodated since this is considered privileged and 
confidential information. Cash Flow for the past five years is shown below: 



CASH FLOW 
(000' s) 








Year 


Ended December 3! 


E 


Nine Months 
:nded Sept. 30 


1970 


1971 


1972 . 


1973 


1974 


$ 19,675 $ 


37,928 $ 


38,277 $ 


42 , 69 1 


$ 37,332 


5,226 


12,290 


17,342 


1,457 


16,162 


31,325 


36,177 


39,396 


48,896 


50,852 


(1 17,984) 


(35,879) ( 


:I5I,502) ( 


; 138,039) 


(96,524) 


(27,767) 


(42,838) . 


(65,303) 


(53,724) 


(42,915) 


124,803 


21,112 


85,874 


106,358 


61,498 


r 


- 


25,391 


- 


- 


3,315 


5, 199 


- 


- 


- 


- 


5,400 


54,766 


35,265 


15,835 


(665) 


(1,112) 


(1,550) 


(5,572) 


12,197 



Cash Balance, Beginning of Period 

Net Income Before Taxes 

Depreciation i Amortization 

Capital Expenditures 

Principal Payments 

Draw Downs 

Proceeds from Stock Offering 

Income Tax (Payments) /Refunds 

Proceeds from Sale of Aircraft 

Other 

Cash Balance, End of Period $ 37,928 $ 38,277 $ 42,691 $ 37,332 $ 34,437 



1065 



0. List your purchases and leases of new airplanes made in the pai 
five years. How much money have you invested in new airplanes 
during that time? What is the rate at which you depreciate those 
airplanes? How were these purchases financed? . If they were 
financed by bond sales, list the amounts and dates on whicli these 
bonds fell due. 



Purchases of new airplanes made in the past five years were: 

19 B72 7-200 

I B727-iOO 

12 DC- 10 

4 B747 

The amount of money invested in the above aircraft, including spare engines 
and parts, was approximately $500 million. These aircraft are depreciated 
for book purposes on a stra ight- I i ne basis over 14 years to a \5% residual. 
The aircraft were purchased with internally generated funds, proceeds from 
aircraft sales, proceeds from a stock offering and financing from banks, 
institutions and manufacturers. There were no bond sales. 



9. Describe your existing outstanding contracts for the purchase 
of airplanes or other major items of equipment. Describe other 
such purchases that you plan over the next five years, which are 
not now covered by contracts . 



The Company has existing outstanding contracts for airplane purchases 
consisting of one with McDonnell Douglas for the purchase of eight (3) 
DC-IO aircraft, of which four (4) were delivered in the spring of 1974 
and four (4) are scheduled for delivery in the spring of 1975; and one 
with Boeing for the purchase of fifteen (15) B727-200 aircraft, of which 
eleven (II) have been delivered and four (4) are scheduled for delivery 
in the fall of 1975. A contract is also outstanding with General Electri 
for the purchase of two (2) spare DC-IO engines — one for October, 1975 
and one for December, 1975. The Company has no immediate plans for the 
purchase of additional aircraft over the next several years. 



1066 



10. List tlie salaries, bonuses and any other compensation paid to 
the ten highest paid executives in your corapany for each year for 
the past five years. 



Name 



1973 



1972 



1971 



1970 



1969 



R, F. Six 
A . D amm 
R. M. Adams 
C. A. Bucks 
G. E. Cotter 
C. M. Stubben 

C. F. Whelan 

S. R. Wyzenbeek 

J. A, Sage 

J. P. Himmelberg 

D. P. Renda 
P. T. Craven 
M. Kramer 

H. J. Wexler 
H. W, Bel 1 , Jr. 



$309,000 

$120,000 

$108,000 

$102,000 

$102,000 

$ 93,000 

$ 85,333 

$ 68,000 

$ 67,688 

$ 63,000 

$ 

$ 

$ 

$ 

$ 



$22 5,000 

$120,000 

$ 108,000 

$ 96,667 

$102,000 

$ 91,167 

$ 82,000 

$ 

$ 

$ 60,833 

$106,375 

$ 60,167 

$ 

$ 

$ 



$22 5,000 

$120,000 

$ 80,000 

$ 75,000 

$ 75,000 

$ 70,000 

$ 63,500 

$ 

$ 

$ 49, 167 

$ 72,500 

$ 

$ 53,000 

$ 

$ 



$22 5,000 

.$120,000 

$ 80,000 

$ 77,903 

$ 75,000 

$ 70,950 

$ 58,417 

$ 

$ 

$ 

$ 72,500 

$ 

$ 52,000 

$ 48,333 

$ 



$100,000 

$ 80,000 

$ 67,000 

$ 56,000 

$ 62,500 

$ 52,917 

$ 57,167 

$ 

$ 

$ 

$ 55,000 

$ 

$ 49,000 

$ 

$ 50,833 



1067 



11. If your costs were to exceed your revenues each year for the 
next five years, by, say 5% or 10%, what steps would you take to 
aviod bankruptcy? Cut salaries? ..Renegotiate contracts witli unions? 
Postpone dates on which payments for aircraft are due? Other? 
K'ould you reorganize the company before going into bankruptcy? v;iiat 
would be the effect of bankruptcy on debt holders, equity holders, 
the traveling public? Would the company stay in business? Were 
payments on airplanes rescheduled or forgiven, would it be possible 
to stay in business? How much leeway, in terms of cashflow, would 
such rescheduling or forgiveness produce? 



In the event our costs exceeded revenues by 10% for the next five years, 
we would experience an operating loss (before interest expense) of 
approximately fifty million dollars a year. Given the size of this 
Company and considering the alternatives outlined in the question, there 
is no action or combination of .actions the Company could take that would 
offset such losses sufficiently to enable it to remain in business. 



1068 



12. Do you believe the CAB ought, as its first priority, to 
act to prevent a possible bankruptcy by any major trunk 
carrier? If not its first priority, should the CAB give 
such a task a high priority? Under what conditions? 



No. As a general matter we believe prevention of bank- 
ruptcy of a carrier is a matter of managerial responsibi- 
lity. The CAB should not assign any priority to this 
matter, although carrier need for strenghthening should 
be an element to be considered by the CAB in the award of 
new routes. 

Bankruptcy, i.e., the elimination of companies that are 
inefficient, uneconomic and/or unable to compete effec- 
tively is an inherent part of private enterprise. 



1069 



13. Why, in your view, are the original trunk carriers -- 
those in business in 1938 -- the only trunk carriers 
still in business? Why have no other firms in the aviation 
business become trunk carriers? 



The answer to the above question is four-fold: 

(1) Competition is not just quantitative in nature 

but rather and perhaps even more importantly, qualitative. 
For example, there can be vigorous competition between two 
carriers serving a given pair of points whereas there can 
be far less effective competition among three or more carriers 
on a given route. The quality of competition is to a large 
extent determined by the respective carriers' managerial 
philosophy. Some carriers have traditionally been more 
innovative and aggressive in terms of sales and service 
than other carriers. 

(2) Cyclical economic adversity has occurred periodically 
since 1938 and undoubtedly counts for the demise of some 
carriers that were in existence in 1938 but are no longer 
in existence today. 

(3) The CAB has wisely expanded market opportunities for 
all carriers through granting of new routes. These new 
routes were granted not solely for strengthening individual 
carriers but rather to fulfill public transportation needs. 
As a result, the air transport system of the United States 
today is substantially more competitive than that which 
existed 36 years ago. 

(4) There actually have been new entrants in the air transport 
system; namely, the regional airlines, all cargo carriers, 

the Alaskan carriers, the Hawaiian carriers, helicopter 
carriers and the supplemental carriers. In some instances 
these new entrants have provided a competitive spur to already 
existing carriers. The eight current "local service carriers" 
now carry more revenue passenger miles than the fifteen trunks 
carried in 1951 when most trunks had gone off federal subsidy. 
Most "local service carriers" today have route structures far 
more extensive than most trunks had in 1938. Indeed two of 
them fly from the Canadian border to the Mexican border--and 
beyond. Each of the "locals" is at least five times the size 
of the largest trunk (American) in 1938. 



1070 



14. If the CAB were to set a definite policy of not allowing any fare 
incroacics in the next five ycarc , what would you do? Would you 
dis invest in aircraft? How can you do this? Would demand catch up 
to your present fleet? When? Suppose tlie CAB cut fares by 10% or 
suppose fuel costs continue to increase? , , 



Under normal circumstances, the Company can absorb 2 to 3% of annual cost 
increases resulting from inflation through increased productivity. However, 
if inflation continues at the rate experienced over the last several years, 
the Company could not survive without fare increases. Under such circum- 
stances the entire industry would be in the same situation and there would 
be no market for the disposition of aircraft. 



15. Normally, low profits are a signal to an industry that its 

investment is too large — that it should disinvest. Is this 

"classical" statement applicable to the airline industry? If notj 
why not? 



Because the airline industry is so highly leveraged, short term changes 
in the nation's economic growth can have a serious impact on profits 
from year to year. Unlike manufacturing industries where investment in 
inventories can be decreased, the airline industry cannot dispose of its. 
investment in aircraft to compensate for year to year fluctuations in 
profitability. In the long range planning process, action can be taken 
in anticipation of projected losses by not ordering new aircraft or by 
not exercising options on "second buy" aircraft. 



1071 



16, What major factors do you believe are responsible for 
the airline industry's low profit over the past few years? 
Do you believe that CAB policies contributed to, or offset, 
low profits? (Specify which policies and how.) 



As indicated in the answer to Question 15, the air transport 
industry is highly leveraged by its inherent nature. 
The industry's low profitability over the past several years 
is largely attributable to the fact that as a general 
matter, very large carriers are unable to adjust to changed 
economic circumstances as rapidly as the smaller and medium 
sized carriers. It should be noted that the large losses 
have invariably been incurred by the very large carriers. 

When a carrier reaches a certain size its management is simply 
incapable of responding quickly to the cyclical nature of 
the national economy -- and in some cases, the international 
economy. The lead time in making those adjustments on the 
part of the large carriers is the principal reason for the 
low level of profitability for the entire industry during 
the past several years. It should be noted in this connection 
however, that the medium sized carriers, and to some degree 
the smaller ones as well, have continued to prosper despite 
the cyclical nature of the economy. 

Insofar as the CABs policies are concerned, those policies 
have contributed to reduced levels of profitability when: 

(a) there has been a lag in granting rate relief to over- 
come inflation, and 

(b) where it has granted route awards to those large carriers 
that are already unable to adjust rapidly to changed circum- 
stances as described above. 



1072 



17.' During a recent CAB proceeding an industry witness testified: 
"If a carrier were absolutely certain that the CAB would allow it 
to go bankrupt before it were given any relief, then I believe 
you would see some action taking place in eliminating marginal 
capacity (excess capacity)" Do you agree witli this statement? VJhy' 
Do you believe that the CAB 's load factor standards would be more 
effective in controlling load factors if the CAB were less 
concerned to prevent airline bankruptcy or reorganizations? 



Continental generally agrees with the statement of the industry 
witness, and although we don't know v*ien the statement was made, we believe 
that it has proven to be accurate. Vfe don't, hcwever, believe in the witness' 
iitplication that most carriers presently think the CAB will "bail than out" . 
There has been considerable action to eliminate marginal or excess capacity. 
As a natter of fact, the large transcontinental carriers h^ve taken action 
(which we believe to be illegal) which resulted in significant capacity reduc- 
tions in many markets. 

The length to which those carriers went to reduce capacity, we believe, 
is a good shewing of their inherent belief that unless they moved to solve their 
own problans, they would be in dire trouble. 

, We at Continental certainly do not believe the CAB should or would 
take specific action to prevent the bankruptcy of a given carrier. For that 
reason, v^en in 1969 we began to see irtpending difficulties. Continental 
initiated action to avoid those difficulties by "pulling in its horns". 
Again in early 1970, we further curtailed schedules previously planned. We 
believe we were able to foresee seme of the problans — and take rapid action — 
months before most of the larger carriers were able to do so. Further, rapid 
action at the time of the fuel crisis was taken, not just to save fuel, but to 
c^aerate an even more efficient airline. These actions were motivated by our 
concern over our own well being. 

Vfe do not believe the CAB's load factor standards were adopted to • 
control load factors. If so, we would contend that the CAB would be acting 
illegally. The so-called load factor standards were set for the purpose of 
establishing fare levels. A carrier such as Continental may be able to operate 
more efficiently than others and should then be able to translate that efficiency 
into Icwer load factors — if it so desires. 



1073 



18. Are your costs higher than, equal to, or lower than the industry average? 
By how much? Why? 



As indicated below Continental's cost per available ton mile produced for the 
twelve months ended June 30, 1974 is 17.7% lower than the industry average: 

Cost Per 
Available 
Ton Mile 

Industry Average 27.05* 

Continental 22.27t 



Continental traditionally has operated at a substantially lower unit cost than 
the industry average. Through strict budgetary controls and substantially higher 
than industry aircraft utilization. Continental has achieved these results. The 
higher aircraft utilization also results in less investment than would otherwise 
be required. 



1074 



19. List your advertising, other promotion, and off-ice rontal 
costs, absolutely, and as a percentage of total costs, for each 
year for the past five years. 













Promotion 














and 


Space 




Amounts I 


in (OOO's 


) 


Advertisinq 
$ 9,717 


Publ icitv 
$597 


Rental 


1969 


Amount 






$2,197 




■ Percent 


of total 


costs 


3.8 5^ 


0.2 4^ 


0.87? 


1970 


Amount 






$ i 1 ,20.4 


$724 


$2,945 




Percent 


of total 


costs 


3.94^ 


0.2 5? 


1 .04? 


1971 


Amount 






$ 9,862 


$704 


$3,978 




Percent 


of total 


costs 


3.08^ 


0.22;? 


1.24? 


1972 


Amount 






$11,069 - 


$820 


$5,416 




Percent 


of total 


costs 


3.. 1 1% 


0.23? 


1.55? 


1973 


Amount 






$10,627 


$763 


$6,105 




Percent 


of total 


costs 


2,68^ 


0.19? 


1 . 54? 



1075 



20. Assuming that all scheduled flights remain unchanged what is the additional 
cost of carrying one extra passenger on a flight? 



The attitional cost of carrying one extra passenger on a Continental flight 
$7.70. The additional cost consists of the following elements: 



I ) Food A, Liquor 

2) Traffic liability insurance 

3) Supplies & other in-flight costs 

4) Security Costs 

5) Reservation expenses and 

6) Commission costs 



21. Please answer the follov/ing questions in respect to each of the 
following markets: San Francisco/Hawaii, New York/Hawaii, New York/ 
Los Angeles, New York/Atlanta, Chicago/New York, New York/ Miami, 
Boston/Washington: 

a. What are your costs per flight, (1) determined on a 
"fully allocated" cost basis, (2) determined on a DOC basis 

(as used by the CAB), (3) determined on an "incremental cost" basis 
(what do you include in "incremental cost")? I>3termine these costs 
insofar as possible both on a "seat-milex" basis and on an RPM 
basis. 

b. What are your load factors in each of those markets? 



Not applicable to Continental Airlines. 



1076 



22. List the routes including international routes "that you have 
applied for CAB permission to serve in the last five years. Indicate 
those routes v;hcre the CAB has granted permission. Indicate those 
where the CAB has denied permission. Indicate those where no action 
was taken by the CAB, along v;ith the ultimate disposition of the 
app.licati.)n. • As to each application, indiate the date of filing 
and the date of ultimate disposition along with the dates of any 
he.iririgs held. Do yoa believe that Board actions on your route 
applications have generally been expeditious? If not, to what do 
you attribute the delay? 

During the period frcro 1969 to date. Continental has applied for 25 
route adjustments. The followinq is a recap of the detailed rerort v*iicV> is 
attached. 

1969 1970 1971 1972 1973 1974 

Acted Upon Without Hearing 

Approved - - 1 - - 

/ Dismissed as Stale 3 _ - _ * - - 

Dismissed ^ _ _ _ - - 

Cases Heard 

Denied 2 - - - - - 

Still Pending 1 - - 1 1 " 

Appli cations Pending 

Pending ', 13 - 1 6 4 

Sane of the above had been dismissed as stale and are refilings. 

In addition. Continental requested the Board on August 28, 1972 (Docket 
24701) to nodify or attend sane relatively minor restrictions on its certificate 
affecting 18 markets. The end result of that application was that restrictions 
were modified involving five of the 18 markets but six new restrictions were 
added for a net total of 19 markets now restricted. (Order 73-4-113.) 

Also on October 29, 1974, Continental filed an ajplication to remove or 
itodify a restriction under Subpart N procedures. 

On balance, we believe the Board has not given our application expeditious 
treatitent over the last five years. We believe the cause is probably related to 
the inhibiting effect of the moratorium declared by the Board and its high level 
staff personnel, cotibined with the Board's preoccupation with those matters v*dch 
may affect the visible subsidy of the Local Service Carriers. Recently, of 
course, the preoccupation with the well being of Pan American has certainly 
accentuated the tendancy to defer and delay action on cases such as the Saipan- 
TOkyo Case, the Los Angeles-Miami Conpetitive Nonstop Case, and the Transatlantic 



1077 



23. Are there routes which you would consider entering if CAB 
approval for entering were not required? Which? Describe 
your reasons for considering entry to the extent you wish 
to do so. Does the CAB's entry policy inhibit your flying 
new routes? If so, describe how? 



There are many routes which Continental would consider 
entering if CAB approval for Continental's entry were not 
required. However, if approval for any carrier to enter 
those same markets were not required, we would be presented 
with other considerations which would differ in each market 
and thus the answer to the question would have to relate to 
each specific case. It should also be stated that if free 
entry were available, a natural assumption is that free exit 
would also be available which presents an even different set 
of cirucmstances. 

The cab's entry policy doesn't just inhibit our flying new 
routes -- it prevents it. 

The best way to ensure that the public convenience and ne- 
cessity is effectively satisfied is for the CAB to properly 
execute the policy mandate the Congress set forth in Section 
102 of the Federal Aviation Act of 1958. 



24. Would your charge lower fares than those now being charged 
on any route if you were free to enter and to set lower fares? 

YES. Continental's major fare reduction efforts of the past five 
years are described in some detail in its answer to question No. 1. 
It has reduced fares in every new market it has been authorized to 
serve since 1962 by the introduction of economy class service, and 
it would do so in any others it might be awarded. Discount or 
promotional fares to be introduced would depend on the nature of 
the market concerned and the fares in existence in that market. 



1078 



2b. Ai^e you involved in any route purchase or exchange proceedirigi 
Which routes? Involving which carriers? Hov; much woujd you be 
willing to pay for each of such routes? V<;ou]d fares be sufficient 
to cover purchase costs? In your view, should such purchases or 
exchanges be allowed without full comparative he£irings? 



Continental is involved in several route e:-ichange proceedings but is 
a party to no route exchange agreaaent, which we interpret to be the tlrrust 
of tlie question. 

To Continental, it seerns ludicrous that route exchanges are handled 
under expeditious procedures. The siiripliest possible route e;-:change is autcmaticalj 
at least twice as complicated as the simpliest possilDle route case because 
Carrier A's route #1 is av;arded to Carrier B, and Carrier B's route #2 is 
awarded to Canrier A with all of the route integration matters involved in 
two separate route cases. 

Even tJiat, however, is not the v^hole stor>'. The prob^jbilities ai'e 
that a route swap is more nearly four tir.Es as ccn.plicated as a route case. 
The reason is that in a nev; route case tlie nev/ route in question is not dlread^' 
in operation. In the case shcfATi aJxjve, ha-.'ever. Carrier A's route #1 mu^t 
be decertificated from Carrier A's route structure v/itli all t!ie public interest 
and deintegration problems inherent in the exchange. Likewise, Carriex B's 
route #2 must te decertificated. 

Thus, a route exchange involves tlie complexity of four route cas2s 
(two route certifications plus two route decertifications) . 

We, therefore, believe that expeditious procedures are at once unfair, 
and dangerous. 



26. If you have excess capacity, can the extra planes ba 
leased or sold elsewhere? At a loss? 

When the energy crisis came about in the latter part of 
1973, Continental Airlines made a decision to substan- 
tially reduce levels of capacity and grounded its four 
Boeing 747 aircraft. This resulted in a savings of 19 
million gallons of fuel for the year 1974. Since that 
time, one of these aircraft has been disposed of and we 
are actively pursuing the disposal of the remaining three. 

It is anticipated that these will be sold at a loss. 



1079 



27. Identify any routes vdiich are certificated to you but on vdiich service 
has been suspended. Do you have any present intention to resume service? 
When? Why were these services discontinued? Should other airlines be given 
the option of flying these routes? 



Service has been suspended by Continental over its nonstop route 
between Los Angeles and Dallas/Ft. Utarth. Under current conditions 
involving the energy crisis, inflation and the general economy, it would 
appear to be inprudent to have present intentions to resume the service. 
It should be noted, however, that as an adjunct to a possible Dallas /Ft. Worth- 
Transatlantic route, reactivation of the Los Angeles-Dallas/Ft. Vtorth authority 
would be econotiic and is planned. 

The reasons for discontinuance were set forth in depth in CAB 
Docket 24105. 

There is no reason for the Board to give other carriers the option of 
flying this route, although presuaiably it could be done by Continental by 
agreanent under the Board's current philosophy on route exchanges. 

It is conceivable that the Board could, in sane manner, retract all 
unused nonstop and other authorities from all carriers, to be re-parcelled 
out as new routes if and vAien required by the public convenience and necessity. 



?B . List yourfuol costs, in abr.oiute Loniis, and as a porceulagp 
of your total costs, for. 3972, 1973, 1974 and projected for 1975. 
What has been Che incrccTse in cost per gallon during this period? 



1972 1975 1974 197^ 



Fuel Costs $ 44,504,040 $ 47,112,387 S 68,284,291 S 95,948,000 

12.745- 11.86? . 15,28:5 19.952 



Fuel % Total Costs 



Cost per Gallon $ 0.125020 i 0.136871 S 0.226745 $ 0.292766 



1080 



29. If you now serve the North Atlantic, provide the details of 
your costs, revenues and profits for any such service for the years 
from 1970 through the present, \-lhat course of action wili you 
follow if the government provides no relief in the form of subsidy 
or otherwise to alleviate current losses over these routes? If 
you do nut now provide North Atlantic service, v;ould you do so if 
entry were not regulated? 



Not applicable to Continental Airlines. 



30. Compare your costs in the North Atlantic market with those 
on San Francisco/Kew York and New York/Los Angeles routes . 
Explain the difference. 



Not applicable to Continental Airlines. 



1081 



31. If the CAD certificated a number of nev; trunk carriers over 
dense traffic routes, what effect would such certification have 
on the industry? On your company? 



As witli many of the questions, this one is so broad and ill-defined 
that our answer may well be meaningless. 

In the main, the dense traffic routes are served by three effective 
carriers. That is enough, except where an "entry market" is the sole 
purpose. Wholesale certification of a number of new trunk carriers or 
even currently certificated air carriers in a number of routes, as implied 
by the question, would constitute economic mayhan for the industry as well -as 
for Continental. 



32. What would the effect of a "pennissive" entry policy be 
upon the behavior of carriers in the industry? 



Continental believes that the regulatory framework prescribed 
by the Congress in the Civil Aeronautics Act of 1938 and sub- 
sequently in the Federal Aviation Act of 1958 is sound. The 
obvious evidence in support of the above statement is the 
fact that the United States has the finest air transport system 
in the world. 

The Act clearly envisions the need to maintain a competitive 
system in the public interest. We assume that the above 
question does not contemplate "free" entry but rather a more 
liberal approach to entry. In order to properly serve the 
public convenience and necessity, Continental believes that 
the CAB should ensure that adequate single plane and competitive 
service exist in all markets which warrant such service. 



1082 



33. If you serve irarkets entirely within California or entirely 
within Texas, have your flights within those states been profitable? 
Have they been profitable on a fully allocated cost basis? On a 
DOC basis (per CAB)? On an incremental cost basis? What do you 
include in incremental costs? Have you met the fares charged by 
PSA and SWA? 



All of Continental's flights in California are required to' 
serve points outside the state. As a conseq\aence , we have no service 
"entirely within California". 

The vast majority of Continental's flights in Texas also serve 
points outside the state. 

Continental has no reason to, and therefore does not, maintain 
costs for intrastate operations. 

As a general matter, the existing fares of PSA and SWA were 
met by Continental. 



1083 



How do you decide how much capacity to offer in a market? What 
frequency of service to offer? Which markets to promote heavily? 
Who makes these decisions? 



Capacity offered in given markets varies substantially, depending upon 
the volume of traffic available in each market. In certain markets 
higher frequency of service than is warranted by the levels of traffic 
Is offered, purely to conform to the carrier's obligation to serve 
the traveling public in a reasonable manner. In markets of higher 
traffic density, profitability is the primary determinant as to the 
levels of capacity offered, and increased frequency of service is 
generally predicated upon levels of load factor being achieved on 
existing flights. As a general rule-of-thumb, when a given market 
approaches a 70% load factor on an annual basis, increased frequency 
at least during the peak traffic periods would be required. 

Markets which are promoted most heavily obviously include the 
competitive markets, but those that lend themselves to generation 
of new traffic, particularly in the personal and pleasure areas, 
receive greater emphasis. 

At Continental Airlines, the Marketing Division and the Planning 
Division develop the basic ingredients, in terms of schedules and 
frequency of service, as well as promotional efforts. These are 
transmitted to the President, and Senior Vice President and General 
Manager of the Company for their review and approval. 



67-378 O - 76 - vol.2 - 30 



1084 



35. How many different classifications of inflight service do 
you provide? 

As an estimate, we provide approximately 12 First Class 
services and 12 Coach/Economy services. A breakdown 
follows for our domestic and international segments: 



FIRST CLASS 



Domestic 

Breakfast 

Brunch 

Lunch 

Deluxe Snack 

Gold Cart Buffet 

Light Refreshnents 

Dinner 



International 

Breakfast 
Lunch 

Deluxe Snack 
Gold Cart Buffet 
Dinner 



COACH/ECONOMY 



Domestic 



International 



Breakfast 

Brunch 

Deluxe Snack 

Light Refreshments 

Lunch 

Dinner 



Breakfast 

Lunch 

Deluxe Snack 

Light Refreshments 

Dinner 

Lunch/Dinner - Economy 



1085 



36. How do you decide on which routes and which flights to offer 
a particular classification of inflight service? 

In our opinion, meal service scheduling is a function of 
corporate policy, time of day and length of segment. A 
basic guideline is established and is applied along with 
other influencing variables such as type of equipment, down- 
line segments, competition, cost comparison of existing 
versus proposed scheduling and passenger preferences. 

Who makes these decisions? 

Top management agrees on basic aircraft scheduling. Then 
all of the criteria for meal scheduling are applied and 
costed out. A service schedule is proposed and reviewed 
by the highest levels of marketing management. Upon 
approval, the schedule is implemented. 



1086 



37. Could you operate as efficiently as you do now if your airline 
were twice its present size? Ha3f its present size? 

a. With respect to fleet size? 

h. With respect to RPM's 

c. With respect to passengers emplaned? 



Continental could operate more efficiently or less efficiently at 
either double or half its size in temis of fleet size, RPM's or passenger 
enplanenvsnts , dependent upon the route structure and ootpetitive environment 
v*iich caused the change in fleet size, RPM's, or passenger enplanenents . 

As Indicated by the historical profit and loss reports 
of the very large carriers, it definitely appears there are 
dls -economies of scale in the air transport industry, once 
a carrier reaches the size of the Big -Four and Pan American. 
Continental could more than double its size and not approach 
that point of diseconomies of scale. 



1087 



38. In what wdyr, ond to V![\at extent do a) CAB reporting 
requirements, b) CAB ticketing requirements, c) other CAB 
requirements impose costs on your operations? (e.g., preventing 
simplified passenger Iiandling or accounting procedures)? 



a) The CAB requires that certain reports be submitted routinely. Many of . 
these reports would not be prepared by Continental for its own internal 
use. The annual cost to produce these reports cannot be specifically 
determined, but is estimated at $60,000. Additionally, one-time 
development costs to produce these reports have exceeded $2 75,000. 

b) Ticket printing costs are increased approximately $10,000 per year 
because of CAB requirements for printing certain portions of the tariff 
on the ticket, which the Company does not 'fee I is necessary; e.g., 
conditions of contract and limitations of liability. 

c) The CAB has insisted that charges to passengers for airport security 
costs be reported and accounted for separately. This has increased 
our handling costs by $2,500 per year. 

The formula required by the CAB for dividing interline joint fare 
revenues has increased our accounting costs by $3,000 annually. 



39. Which CAB practices do you believe to be the most burdensome 
or least efficient? What recommendations for changes would 
you make? 



Continental believes that the CAB ' s practices and procedures 
relating to domestic fares to be detrimental to the public 
interest. Specifically, the CAB ' s criteria with regard to 
domestic fares solely relates to matters of cost. The CAB 
ignores all marketing considerations and regards all markets 
of like distance to be identical in all economic characteristics. 
This simply is not the real world as different markets have 
different characteristics. Further, the CAB totally ignores the 
long established rate-making principle of "value of service". 
To place the matter of pricing exclusively within the framework 
of cost is tantamount to ignoring all the principles of 
merchandising. In the long run this is harmful to the general 
public as it will preclude bringing air transportation to 
members of the general public that now do not or are unable 
to fly. It also is harmful to the industry in that it precludes 
airlines from maximizing profits, and in general, inhibits 
growth and usefulness of air transport services. We believe 
that in the broad spectrum of regulation, the CAB should give 
greater consideration to marketing. 



1088 



40. How much money have you spent each year for the last five 
years on salaries, fees (including attorneys fees) and oth-jr costs 
related to CAB proceedings? How much money have you spent that is 
any way attributable to Congressional lobbying? 



Salaries, fees (including attorney's fees) and other costs related to Civil 
Aeronautics Board proceedings: 

1969 $478,299 

1970 • $520,950 

1971 ■ $593,185 

1972 $578,136 

1973 $497,772 



41. What was the total nunber of passengers enplaned? 1972-October 1, 
1974? 





1st 9 


mos. 


Scheduled 
Dcrrestic 
Enplancnents 
(000) 


1972 
1973 
1974 - 


6,040 
6,449 
4,928 



1089 



42. What was the total number of flights scheduled to operate'' 
1972-October 1, 1974? 







Dorestic 

Scheduled 

Departures 


1972 




150,517 


1973 




146,468 


1974 - 


- 1st 
9 months 


99,724 



43. What was the total nun±)er of flights actually operated'' 
1972-October 1, 1974? 



Dorestic Departures Performed 

Sclieduled Plus 
Scheduled Extra Section 



149,530 
145,379 



1972 




148,410 


1973 




144,642 


1974 - 


- 1st 






9 months 


98,710 



99,225 



1090 

/ 

11. IIO'.; inatiy [H'I sous V'ith the |u-:l'nnry dMt y :-; ji 
coiisimicn^ problems did yt.u tmploy? l^72-Oi:[r,b'jv I, 



AS. . Wii.ii: v.<ir, llio l-o'.;!l nun;bcr of ccn^aciUs icrordril? ] :!7:-'.0cliii.i'r ] 
.1071? 

21,351 



1G. Ilo'.v iiniiy of tlicDo commcnLS were co;ripl,i i uLr 
11,903 



17. Whjt v.MG iThr? budqcl; for cuGLoiiur reloL j.c>ii;;/coiiG'j;n(.M^ ,Tff,iir:; 
oci.:iviL-:!eG (cxcludinq the ainouiiC p.iid for c-i-riiM;-.)? J '17?-0cI'-'1",t 1 
197.1? 



IB V;i,;,t woG 1:1,-. total onncunt of claJ.nG or other m-ncto.-v sctt]c..r;,t 



19. V.Miat porcciitngo of tho comploints rcceivod roqut 
of monetary rcJinl;ui Geniout? 1972-Oclober 1, 1971? 



1091 



50. What 



»o^«:";\e^iZS:„r. -r^^^z^i;^^ -^^ --- "-- o^. 



30 - 35% ■ I 

I 
I 



51, Qnder v;hat circumstances will the corricr waive the tariffs 
in order to settle complaints from mishandled passenger:;? 



Basically, when determined that the customer had out-of-pocket expense 
which could have been avoided if mishandling had not occurred. 

I 
I 
I 



52. When a complaint is received, what measures are taken to 
prevent rocurrancco? 

1 
Reviewed with local management and individual employees involved to 
correct any misunderstandings/misinterpretations of policies/procedures 
and, where deemed appropriate, revisions/clarifications of established 
handling practices are made. 



53. List the two or three airline practices that are most frequently 

the subject of passenger complaints. Please suliinit your manuals 

or sets of instructions related to dealing with passenger complaints. 



1 
I 

1. Validity periods during which applications for refunds of unused 
tickets must be made. 

i 

2. Non-scheduling of food service (meals /snacks) on certain flights 
of limited duration or at inappropriate hours of the day/night. 

3. When a flight delay/cancellation results in missed appointments/ 
meetings, but a refund on used portion of the ticket cannot be made. 

Continental's instructions related to dealing with .complaints are attached. 
Other manuals /instruct ions in respect to this arfe being provided in re- 
sponse to Question 100. I 



1092 

CONTINENTAL AIRLINES 

SALES AND SERVICE MANUAL 




21.100 INTRODUCTION TO CUSTOMER RELATIONS 

A. Basic CO Policy 

1. The air industry and CO, in particular, have grown considerably in the 
past few years. But remember ... AIR TRAVEL HAS NOT_ BECOME MASS 
TRANSPORTATION. We still treat each customer as an individual, and 
that's the basic difference between airline service and "mass trans- 
portation" provided by the other public transportation companies. 

2. Since CO is a relatively small trunk carrier, we also have an advantage 
over the larger airlines: We can more easily provide this individualized 
service to our customers. It's no surprise, therefore, that our basic 
customer service policy, in its simplest form, is: 

BE COURTEOUS AND SINCERE AT ALL TIMES AND 
TREAT EACH CUSTOMER AS AN INDIVIDUAL 

3. But how can you apply this? By being courteous and sincere in every 
contact you have with a customer or a fellow employee; Make it a habit 
(and, incidentally, it's a good habit for anyone), and you'll find 

doing business this way will benefit both you and your Company. 

B. Who is Our Customer ? - Anyone will agree that no two persons are identical; 
each has his peculiar likes, dislikes, habits, etc. EACH CO customer, 
however, is a person: 

1. Who brings us his wants. (Our job is to fill them profitably — to 
him and to ourselves. ) 

2. Who is never too far away to affect our jobs, no matter how remote 
from him our work may seem. (One small slip or flaw in a department 
can lessen the value of our image in the customer's eye.) 

3. Whose good opinion of CO is the most valuable asset in the world. 
(Whatever we can do to build that good opinion will eventually be 
to our own advantage. ) 

4. Whose good opinion cannot be bought or stolen but can be freely 
given in response to our gift of value. 

5. Who expects value in what he buys from us. (If we do not give him 
value, he will go elsewhere to find it.) 

6. Who is the boss behind our boss. (By serving him well, we serve 
ourse Ives well.) 



1. If you were asked to make a general statement that best describes your 
job as an RSA, ASA, DPS, etc., how would you respond? Perhaps you'd 
irention a specific duty you perform regularly, say, ticketing, answering 



1093 



21.100.02 

INTRODUCTION TO CUSTOMER RELATIONS 



C. Your Job (Continued) 

telephone calls, or preparing reservations records. This would be under- 
standable since much emphasis is placed upon these functions in your training 
and procedures. But is it an accurate description? 

2. True, the details you perform are important since they affect the final image. 
Nevertheless, your real job is SELLING CO SERVICES AND DEVELOPING GOOD 
CUSTOMER RELATIONS. The details only represent a means of doing this. 

3. Remember, your Company's growth and, concurrently, your paycheck and con- 
tinued employment depend upon how well you develop and sustain a good relation- 
ship with your customers ... our bosses. 

D. Relations during Irregular Operations 

1. Few customers are lost when everything is going right. There are those ion- 
fortunate times, hovrever, when things do go wrong, and whether or not the 
custoners are kept happy then depends particularly upon the attention they 
receive. 

2. It is especially important, therefore, that you always: 

a. Anticipate and prepare for such irregular operations; 

b. Know and apply the rules regarding what can be done and how to 
do it; and 

c . Continue t£ treat each passenger as an individual . 

E. Handling Complaints and Controversies 

1. Responsibility - A prime concern and responsibility of each enployee of Sales 
and Service Division is to maintain the best possible relationship between CO 
and our customers at all times. 

a. Custcmer goodwill is a vital part of our sales effort because without it 
we can haiWly expect to enjoy the benefits of repeat sales. So . . . the 
highest possible level of customer goodwill is_ our standard ... any degree 
less than this is sub-standard and quick, positive action must be taken to 
restore it. 

b. Every enployee, therefore, has the specific responsibility to do everything 
within his power to bring to a satisfactory conclusion any conplaint that 
is brought to his attention. 

"""■ ^ (1) If the employee is unable to satisfy the conplaint, he should 
immediately notify the "Consumer Relations Representative" on 
duty, who then has the responsibility of bringing the conplaint 
to a satisfactory conclusion or, if he finds he cannot, must 
inmedlately notify his supervisor. (Also see Section 3.120.) 

(2) In the event the local manager finds he is unable to bring a 
coiplalnt to a satisfactory conclusion locally, he must Inme- 
diately notify (via telephone) his General Office supervisor. 



1094 

COMriNlNTAL AIR UNSS, INC. 

^y^ CUSTOMER SERVICE MANUAL 



INTRODUCTION TO CUSTOMER RELATIONS 

Handling Complaints and Controversies (Continued) 

c. As soon as a conplalnt is handled with the customer send a conplete report of 
the circumstances involved on a Customer Service Irregularity (FS-696). 

2, Techniques of Handling Complaints - The fi'rst step in successfully handling a 
customer conplalnt, is: 

a. Start off on the ri^t foot by LISTENING to what the customer has to say. 

(1) Keep these points in mind: 

(a) Maintain your poise. 

(b) Do not interrupt or disagree ... do not argue. 

(c) Let the person know you are concerned about his problem and you 
are anxious to remedy the situation. 

(d) Imnediately write down all details of the conplalnt. (This not 
only provides complete and accurate information, but it assures 
the customer that something will be done.) 

(2) Remember, the way you begin with an unhappy customer will have a definite 
effect on the outcome. Be sure to let the customer tell you all that is 
bothering him, and always encourage his comnents. 

b. Assure the customer that ^ou personally will see that the matter is corrected 
and that it will not happen again. 

c. Initiate whatever action the situation calls for such as: Reroute to desired 
destination; send via rent car; offer to pay for some telephone calls, hotel 
expenses , a meal or two ; reimburse for expenses incurred or to be .incurred ; 
and, in case of a lost bag, offer to pay for a shirt, provide a few toilet 
articles; etc. 

d. Always follow up since often the critical point in successfully handling a 
conplalnt is the amount of "follow up" the situation is given. 

(1) If you promised you would do something ... DO ITl 

(2) When the situation calls for it, tell the DPS, hostesses, downline cities, 
or enployees on the next shift to provide special handling. 



1095 



54. HOW MANY PIECES OF LUGGAGE WERE MISHANDLED? 1972 - OCTOBER 1, 1974? 



During the 33 month period from January 1, 1972, through 
September 30, 1974, approximately 180,503 incidents of lost or 
delayed baggage were reported, representing an estimated 233,593 
pieces of baggage. 

During the same period, approximately 28,426 incidents of damage 
or pilferage to baggage were also reported, representing an 
estimated 28,426 pieces of baggage. 

These individual totals are not necessarily additive, however, 
since a certain amount of damage or pilferage occurs while the , 
baggage is in the delay stage. 



55. HOW MANY WERE LOST? 1972 - OCTOBER 1, 1974? 



During the 33 month period from January 1, 1972 through 
September 30, 1974, approximately 3536 incidents of reported mis- 
handlings resulted in the luggage not being returned to the customer. 
At a rate of approximately one bag per incident of permanent loss, 
this would represent an estimated 3536 pieces of lost baggage. 



56. HOW MANY WERE DELAYED? 1972 - OCTOBER 1, 1974' 



During the 33 month period from January 1, 1972 through 
September 30, 1974, approximately 176,967 incidents of baggage 
delays were reported. At a rate of approximately 1.3 bags per 
incident of delay, this would represent an estimated 230,057 
pieces of baggage delayed. 



1096 



57. HOW MANY WERE DAMAGED? 1972 - OCTOBER 1. 1974? 



During the 33 mcr h period from January 1, 1972 through 
September 30, 1974, approximately 27,780 incidents of damage to 
baggage were reported. At a rate of approximately 1.0 pieces of 
luggage per incident of damage, this represents an estimated 
27,780 pieces of baggage damaged. 

NOTE: Damage as used in this report refers to damage to the 
baggage itself, and/or any of its contents. 



58. HOW MANY WERE PILFERRED? 1972 - OCTOBER 1, 1974? 



During the 33 month period from January 1, 1972, through 
September 30, 1974, approximately 646 incidents of pilferage 
of baggage and/or contents were reported. At a rate of 
approximately 1.0 pieces of baggage per incident of pilferage 
reported, this represents an estimated 646 pieces of baggage 
pilf erred. 

NOTE: For all practical purposes, the incidents of pilferage 
reported represent pilferage of contents of luggage as opposed 
to pilferage of the entire piece of luggage. Unless specifically 
reported as such, pilferage of entire piece of luggage would 
probably be reported as a baggage loss. 



59. WHAT WAS THE TOTAL AMOUNT SPENT TO SETTLE CLAIMS FOR MISHANDLED 
LUGGAGE? 1972 - OCTOBER 1, 1974? 



The total expense due to the mishandling of baggage during the 
33 month period from January 1, 1972 through September 30, 1974 
was $1,910,077. 

This represents the combined expenses for delivery, damage, delay, 
pilferage, and permanent loss of baggage. 



1097 



60. WHAT WAS THE TOTAL AMOUNT SPENT TO PAY CLAIMS FOR LOST LUGGAGE? 
1972 - OCTOBER 1, 1974? 



The total expense of claims paid due to the loss of luggage during 
the 33 month period from January 1, 1972, through September 30, 1974, 
was approximately $630,794. 

NOTE: Due to changes in format with respect to the maintenance 
of statistics in the areas of baggage delay, pilferage, and 
permanent loss, the percentage of total mishandling cost for 
permanent loss of baggage in 1973 was approximated using 1972 and 
1974 statistics. The combined mishandling cost for delay, pilfer- 
age and permanent loss, however, is accurate. 



WHAT WAS THE TOTAL AMOUNT SPENT TO PAY CLAIMS FOR DAMAGED 
LUGGAGE? 1972 - OCTOBER 1, 1974? 



The total combined expense of claims paid for damaged luggage and 
expense for repair of damaged luggage during the 33 month period 
from January 1, 1972, through September 30, 1974, was $421,405. 

Note: Damage as used in this report refers to damage to the luggage 
itself, and/or any of its contents. 



62. WHAT WAS THE TOTAL AMOUNT SPENT TO REPAIR DAMAGED LUGGAGE? 
1972 - OCTOBER 1, 1974? 



The record of expense for the repair of damaged luggage is not readily 
available. The e::pense reflected in Question 61 represents the total 
damage expense for both claims and repair. 



1098 



63. WHAT WAS THE TOTAL AMOUNT SPENT TO PAY PILFERAGE CLAIMS? 1972 
OCTOBER 1, 1974? 



The total expense of claims paid due to pilferage of baggage during 
the 33 month period from January 1, 1972, through September 30, 1974, 
was approximately $92,500. 

Note: Due to changes in format v/ith respect to the maintenance of 
statistics in the areas of baggage delay, pilferage and permanent 
loss, the percentage of total mishandling cost due to pilferage of 
baggage in 1973 was approximated using 1972 and 1973 statistics. 
The combined mishandling cost for delay, pilferage and permanent 
loss, however, is accurate. 



64. WHAT WAS THE TOTAL AMOUNT SPENT TO PAY CLAIMS FOR DELAYED BAGS' 
1972 - OCTOBER 1, 1974? 



The total expense of claims paid due to baggage delay during the 
33 month period from January 1, 1972, through September 30, 1974, 
was approximately $152,394. 

Note: Due to changes in format with respect to the maintenance of 
statistics in the areas of baggage delay, pilferage, and permanent 
loss, the percentage of total mishandling cost for delay of baggage 
in 1973 was approximated using 1972 and 1974 statistics. The com- 
bined mishandling cost for delay, pilferage and permanent loss, 
however, is accurate. 



65. WHAT WAS THE TOTAL COST OF DELIVERING DELAYED BAGS TO PASSENGERS? 
1972 - OCTOBER 1, 1974? 



The total expense of delivering delayed bags to passengers during the 
33 month period from January 1, 1972 through September 30, 1974, was 
$648,286. 



1099 



WHAT PERCENTAGE OF THE NUMBER OF CLAIMS RECEIVED EXCEED THE 
MAXIMUM LIABILITY LIMITS SPECIFIED IN THE TARIFFS? 1972 - 
OCTOBER 1, 1974? 



During the 33 month period from January 1, 1972, through 
September 30, 1974, it is estimated that 33 percent of claims 
received exceed the maximum liability limits specified in the 
tariffs. 

NOTE: Actual record of the above statistics is not readily 
available. The above percentage is a result of a random 
sampling of 200 historic passenger claim files. 



67. HOW MANY CLAIMS WERE DENIED BECAUSE THE BAGGAGE OR ITS CONTENTS 
WAS UNACCEPTABLE? 1972 - OCTOBER 1, 1974? 



Record of the number of claims denied because baggage or its 
contents was unacceptable is not readily available. This 
number, however, is estimated to be extremely small. 



68. WHAT PERCENTAGE OF CLAIMS WERE PAID IN FULL? 1972 - OCTOBER 1, 1974? 



During the 33 month period from January 1, 1972, through 
September 30, 1974, it is estimated that 31 percent of claims 
processed were settled to the full amount of the claim. An 
additional 15 percent of the claims processed were settled 
to the maximum limit liability. 

NOTE: Actual record of the above statistics is not readily 
available. The above percentage is a result of a random 
sampling of 200 historic passenger claim files. 



1100 



WHAT PERCENTAGE OF CLAIMS WERE DENIED COMPLETELY? 
1972 - OCTOBER 1, 1974? 



During the 33 month period from January 1, 1972, through 
September 30, 1974, it is estimated that 11 percent of claims 
received were denied completely. 

NOTE: Actual record of the above statistics is not readily 
available. The above percentage is a result of a random 
sampling of 200 historic passenger claim files. 



70. STATE THE CARRIER'S POLICY REGARDING PROOF OF OWNERSHIP OF PASSENGERS' 
LUGGAGE AND ITS CONTENTS. SUBMIT ANY WRITTEN NOTICE WHICH IS GIVEN TO 
PASSENGERS EXPLAINING THIS POLICY PRIOR TO CHECKING IN LUGGAGE. 



Following is an outline of Continental Airlines policy regarding proof of 
ownership of passengers' baggage and its contents. 

1. Upon claiming baggage in those airport where a positive claim system is 
employed, a passenger claiming baggage is required to surrender a 
matching claim stub for each piece of baggage removed from the baggage 
claim area. 

2. Upon reporting an incident of delayed or lost baggage, a passenger 
is required to supply a claim check showing that the baggage was 
accepted and transported. This claim check should correspond to 
the details surrounding the passenger's itinerary. 

3. During the acceptance of baggage for checking, passengers are encouraged 
to have their name or initials on the outside of such baggage. Baggage 
identification labels are available at no cost for the purpose. Iden- 
tification on the baggage lends support to the passenger's ownership 

of the baggage and its contents. 

4. Upon the location of a passenger's delayed baggage, the passenger is 
required to furnish description of the baggage and its contents before 
it is returned to him. 

5. During the processing of claims for lost baggage or its contents, 
the passenger is requested to supply any supporting documentation as 
to the value and ownership of the item claimed as lost in the way of 
sales receipts, etc. 

6. The passenger may be, at times, requested to furnish an explanation 
with regard to the ownership of baggage or its contents to lend clari- 
fication to the incident or the claim processing. 



1101 



LIST SPECIFICALLY CARRIER'S CRITERIA FOR THE ACCEPTABILITY OF CHECKED 
LUGGAGE. SUBMIT ANY WRITTEN NOTICE WHICH IS GIVEN TO PASSENGERS 
EXPLAINING THIS POLICY PRIOR TO THE CHECKING OF LUGGAGE. 



The following is a list of criteria applicable for determining the 
acceptability of checked baggage: 

GENERAL CRITERIA 

1. Continental Airlines will accept for transportation as baggage such 
personal property as is necessary or appropriate for the wear, use, 
comfort, or convenience of the passenger for the purpose of his/her 
trip. 

2. The passenger's baggage must ordinarily be on the same flight on 
which the passenger is to travel. 

3. Any baggage that cannot withstand ordinary handling, or if its weight, 
size, or character makes it unsuitable for transportation on the 
particular aircraft on which it is to be carried can be refused to be 
accepted. 

SPECIFIC CRITERIA 



Items of such a fragile nature that they obviously will not withstand 
normal handling will not be accepted as checked baggage. 

Items that are too large to go into the cargo compartment of the 
aircraft will not be accepted as checked baggage. 

Items that are likely to cause danger to passengers or crew members, 
such as explosives, radioactive materials, highly inflammable articles, 
etc., will not be accepted as checked baggage. 

Items that because of their nature are likely to cause damage to 
baggage or other material loaded near them, such as insecurely packaged 
liquids or powders and sharp, uncovered objects, will not be accepted 
as checked baggage. 

Any item which has a declared value exceeding $5,000 will not be 
accepted for transportation. 

Acceptance of firearms as baggage must be made in accordance vrith 
Special Civil Air Regulation Number SR-448A. 

Sporting firearms will be accepted as checked baggage provided they 
are contained in a stiff, heavy case, and that either: (a) the firearm 
is broken down into at least two separate pieces; (b) the bolt is 
removed and carried outside of the firearm; or (c) the passenger takes 
the gun to a remote location away from other persons and demonstrates 
to the satisfaction of a Continental Airlines Supervisor that it is 
unloaded . 



71. CONTINUED: 



1102 



b. One additional piece of baggage of which the afore- 
mentioned characteristic dimensions do not exceed 
55 inches. 

c. Passengers may check a third piece of luggage if it 
meets carry-on baggage size requirements. 

d. Any baggage in excess of that included in the applicable 
maximum free allowance will be accepted for transportation 
only upon payment of the applicable excess baggage charges, 



1103 



71. CONTINUED: 

The following limitation notice is available to the passenger explaining 
baggage acceptance policy prior to checking in of baggage. 

A. Notice contained in ticket booklet. 

This notice supersedes comparable notice within ticket booklet. 

ADVICE TO INTERNATIONAL PASSENGERS ON LIMITATION OF LIABILITY 

Passengers on a journey involving an ultimate destination or a stop in a country other than the country of origin are advised that the pro- 
visions of a treaty known as the Warsaw Convention may be applicable to the entire journey, including any portion entirely within the country 
of origin or destination. For such passengers on a journey to. from, or with an agreed stopping place in the United Slates ol America, the Con- 
vention and special contracts of carriage embodied in applicable tariffs provide that the liability of certain carriers parties to such special 
contracts for death of or personal injury to passengers is limited in most cases to proven damages not to exceed U.S. S75.000 per passen- 
ger, and that this liability up to such limit shall not depend on negligence on the part of the carrier. The limit of liability of seventy-five thou- 
sand United States Dollars above is inclusive of legal fees and costs except that in case of a claim brought in a State where provision is 
made for separate award of legal fees and costs, the limit shall be the sum of fifty-eight thousand United Slates Dollars exclusive of legal fees 
and costs. For such passengers traveling by a carrier not a party to such special contracts or on a journey not to, from, or having an agreed 
stopping place in the United Slates of America, liability of the carrier for death or personal injury to passengers is limited in most cases to 
approximately US. SI 0,000 or U.S. 520,000, The names of carriers parties lo such special contracts are available at all ticket offices of such 
carriers and may be examined on request Additional protection can usually be obtained by purchasing insurance from a private company. 
Such insurance is not affected by any limitation of the carriers liability under the Warsaw Convention or such special contracts of carriage. 
For further information, please consult your airline or insurance company representative. 

NOTICE OF BAGGAGE LIABILITY LIMITATIONS 

Liability for loss, delay, or damage to baggage is limited as follows unless a higher value is declared in advance and additional charges are 
paid: (1) For most international travel (including domestic portions of international joumeys) to approximately S9.07 per pound (S20.00 per 
kilo) lor checked baggage and S400 per passenger for unchecked baggage (2) For travel wholly between U.S. points, to S500 per passenger 
on most carriers (a few have lower limits). Excess valuation may not be declared on certain types of valuable articles. Carriers assume no 
liability for fragile or perishable articles Further information may be obtained from the carrier. 



B. Excerpt of general passenger information contained in Continental Airlines 
System Timetable. * 




1104 



71. CONTINUED: 



8. Sporting ammunition will be accepted as baggage when carried in the 
original package of the manufacturer, and when protected against 
damage or blows by a firm outer boxing, by packing in clothing inside 
of a suitcase, or by other suitable means. 

9. One collapsible wheelchair will be accepted as baggage on the same 
flight with an incapacitated passenger who is dependent upon such 
wheelchair. 

10. Any article having a linear measurement exceeding 80 inches vjill not 
be accepted as checked baggage except: (a) sporting equipment; 

(b) live animals classified as household pets; (c) duffel bags, sea 
bags, or B-4 bags in connection with military travel; and (d) one 
single or tandem seat touring or racing bicycle, provided the handle- 
bars are fixed sideways and pedals are removed. 

11. Guitars will be accepted as checked baggage provided it is contained 
in a hard shell case protected to withstand normal handling, and 
the strings are loosened to protect the neck. 

12. Household pets, such as dogs, cats and birds will be accepted as 
checked baggage provided : 

a. Advance arrangements are made. 

b. The pets are harmless, inoffensive, odorless, and will 
require no attention in transit. 

c. They are confined to a suitable cage or container. 

d. The passenger accompanies the animal on the same flight. 

e. The animal is checked at the ticket counter and 
claimed at the baggage claim area. 

f. The passenger removes and places the animal into the 
cage or container. 

13. Industry resolution requires that no carrier shall accept a passenger's 
baggage for checking unless the passenger's name or initials are on 
the outside of the baggage. Baggage identification labels are avail- 
able at no cost to passengers. Exceptions to this procedure may be 
made only if, in the opinion of local management, the passenger would 
be unduly inconvenienced. 

14. A fare-paying passenger will be permitted to check free of charge the 
following: 

a. One piece of baggage of which the sum of the greatest 
outside length plus the greatest outside height plus 
the greatest outside width does not exceed 62 inches. 



1105 



72. WHAT SECURITY ^rEASURES ARE TAKEN AT AIRPOT BAGGAGE CLAIM AREAS 
TO PREVENT BAGGAGE THEFT? 



Sixteen of the thirty-one cities served by Continental Airlines 
employ a positive claim system whereby passengers claiming baggage 
are required to show a matching claim stub for each piece of baggage 
removed from the baggage claim area. 

These sixteen cities represent approximately 80 percent of the 
passenger traffic. 



1106 



73. WHAT ARE THE PROCEDURES FOR "THE PROCESSING OF CLAIMS REGARDING 
PILFERAGE FROM A PASSENGER'S CHECKED BAG? 



Following are the procedures for the processing of claims regarding 
pilferage from a passenger's checked bag: 

1. When a pilferage is initially reported, the local Supervisor- 
Passenger Service must discuss the matter thoroughly with the 
passenger, 

2. The Supervisor-Passenger Service completes an "Alleged Pilferage 
Report" recording the details of the incident. 

3. The Supervisor-Passenger Service investigates the matter locally. 

4. The Supervisor-Passenger Service turns the report over to his organiza- 
tional superior, the local Manager-Passenger Service, along with: 

a. Information gained from his discussion with the 
passenger. 

b. His personal opinion regarding the validity of the 
claim. 

c. A recommendation for settlement. 

5. The local Manager-Passenger Service will then attach a short narrative 
report gained from the aforementioned information. 

6. Copies of the complete report are then forwarded to: 

a. All Managers-Passenger Service at Continental cities 
which were involved in the baggage handling. 

b. The corporate Manager-Baggage Service, who has juris- 
diction over the claim settlement for handling. 

c. The corporate Director-Security. 

7. Upon receipt of the Alleged Pilferage Report by the corporate office 
responsible for claim investigation and settlement, a formal statement 
of claim form is mailed to the passenger for completion, notarization 
and return. 

8. Passenger is requested to submit the following supporting evidence for 
his claim: 

a. Completed, signed and notarized statement of claim. 

b. Claim checks supporting that baggage was, in fact, 
accepted and transported. 



1107 



73. CONTINUED: 



8. c. Ticket receipts which serves to verify the passenger's 

travel and itinerary. 

d. Any documentation available which can support the value 
of the items and ownership claimed as being pilf erred. 

9. Upon receipt of all available documentation, the details of the claim 
are investigated by the office of the Manager-Baggage Service to arrive 
at a decision with regard to its validity and the equitable value of a 
settlement. 

10. Upon determination of the validity of the claim, payment, if applicable, 
in the amount determined to be equitable, along with letter expressing 
Continental Airlines posture and feeling with regard to the matter, is 
forwarded to the claimant. 

11. Follow-up to the aforementioned procedure and further review is provided, 
as necessary. 



1108 



74. WHAT IS THE AVERAGE LENGTH OF TI>TE REQUIRED TO SETTLE A CLAIM 
FOR LOST OR PILFERRED BAGGAGE? 



The average length of time required to settle a claim for lost or 
pilf erred baggage is approximately eight weeks. 



1109 



75. WHAT ARE THE PROCEDURES REGARDING THE INVESTIGATION OF THE VALIDITY 
OF A CLAIM? 



Following are the procedures regarding the investigation of the validity 
of a claim. (These procedures as described are those applicable to a 
claim for lost luggage.) 

1. Upon the reporting of an incident of delay of passengers' baggage,, a 
formal report is made at the airport of the terminating city. This 
report documents the pertinent information required for tracing of 
the passengers' baggage. 

2. At the time of the reporting of the incident, the passenger is pro- 
vided with a form, "Baggage Liability - Advice to Passenger," with 
instructions to complete and forward it to the Central Tracing Center 
if baggage is not located within 72 hours by local station personnel. 
This form informs the Tracing Center that the baggage has not been 
located, and provides more detailed information from the passenger 
with regard to the description and contents of the missing baggage, 
and initiates a file to enable the transfer of the tracing effort to 
the System Tracing Center. 

3. Upon receipt of the completed "Advice to Passenger" form by the 
System Tracing Center, a central file is started and a formal statement 
of claim is mailed to the passenger for completion, notarization and 
return. 

4. Passenger is requested to submit the following supporting evidence 
for his claim: 

a. Completed signed, and notarized statement of claim. 

b. Claim checks supporting that baggage was, in fact, 
accepted and transported. 

c. Ticket receipts which serve to verify the passenger's 
travel and itinerary. 

d. Any documentation available which can support the value 
and ownership of items claimed as being lost. (Gener- 
ally, these items are claimed to be over $50 in value.) 

5. If the baggage has not been successfully traced during a reasonable time 
frame, the details of the claim are investigated by the System Tracing 
Center to determine its validity and, if appropriate, an equitable 
value of settlement. 

6. The following steps are taken, as required, to determine claim validity: 

a. The "Delayed Baggage Report" filed at the terminating 
airport is examined to establish the complexity of the 
circumstances surrounding the reported loss, and to pick 
out any questionable areas. 



1110 



75. CONTI^^JED: 



6. b. Claim checks are examined to determine their correspond- 

ence with itinerary reported, and to their correspondence 
to the series being used by the issuing station. 

c. Ticket receipts are examined to establish validity of 
actual travel and itinerary. If ticket receipts are not 
available, this verification is established through a check 
with the Accounting Department to establish ticket usage. 

d. Telephone and written correspondence with the claimant is 
undertaken, as necessary, to reconstruct any questionable 
details with regard to the incidents and sequence of 
events surrounding the loss. 

e. The formal statement of claim is examined to determine 
its correspondence to the initial report of lost contents. 

f. Any documentation of ownership or purchase supplied by 
claimant in the way of sales receipts, etc., is examined 

to determine its applicability to the items claimed as lost. 

g. The dollar value of items claimed as being lost are 
examined with respect to their appropriateness. Value 
of claim is discounted as deemed appropriate. 

h. If items claimed are of high value or questionable, 
a check into the background of the claimant may be 
made to determine probability of ownership of items of 
the nature of those claimed as lost. 

i. Correspondence with local station personnel who interracted 
with the passenger is performed, as necessary, in an attempt 
to establish a profile of the claimant. 

j. A check is made through a computerized "Baggage Claim 
Central File System," which contains all claims 
processed during the previous 24 month period by the 
participating air carriers, to ascertain any previous 
claims on file in the name of the claimant in question. 
Upon determination of any previous claims processed 
in the name of the claimant, the appropriate files 
are examined for appearance of conflicting information 
which may render the validity of the claim questionable. 

k. Upon evaluation of the details of the claim derived 

from the utilization of the aforementioned procedures, a 
judgement is made as to the validity of the claim, and 
the appropriate amount of settlement that may be 
applicable. 



nil 



#76 What is the procedure used by the reservations staff to confirm 
requests for seats during periods when the computers are down? 

Each day during the midnight hours an availability recap is automatically 
generated by the computer to each reservations center. This recap provides 
availability on all flights, segments and classes of service for the next 
twenty -one days . 

These recaps are then placed in a service area within the office for use 
by all reservations personnel when the computers are down. When a reser- 
vation salesman needs space she calls a predesignated number and the avail- 
ability recap is consulted. 



77. What procedures are taken by the accounting staff to check the 
accuracy of rate computations and to refund any applicable over- 
charges to passengers? • .. 



Approximately 90^ of the tickets are issued by machine methods. The fares 
are manually predetermined and checked for given routings and then stored 
on route cards or in the computer. 

Approximately \% of the total ticket sales are GTR' sales. Such tickets are 
issued manually. These transactions are verified for correctness of fare 
before billing the U.S. Government. 

In summary, approximately 9 1^ of our tickets are verified for accuracy of 
rate computations, which precludes any overcharge to the passenger. 



1112 



70. V;iuit is the average lapse of time required to process refunds 
on unused tickets,, or to refund fare adjustments on partically uccd 
tickets? 



Average time for processing refunds is 10 working days, 



#79 What percentage of passengers made arrangements for such services as 
car rentals or hotels through the carrier's reservations offices? What is 
the cost to the carrier of providing such services? 



Disregarding the car rentals and hotel reservations made in conjunction with 
advertised air tours, the percentage of passengers utilizing this service is 
quite low. Approximately 1 1/2% of the total local passengers boarded have 
made car rental or hotel reservations through Continental Airlines, 

The cost of providing this service, again disregarding the handling of tour 
packages is extremely hard to determine. Our best estimate would be approxi- 
mately' $4,000 per month in salary expenses. This activity is definitely on the 
increase. 



1113 



#80 What are the procedures for notifying passengers of schedule changes? 
Is automatic protection offered to the affected passengers on all flights 
which are cancelled as the result of a schedule change? 

All passenger records for all flights affected by a schedule change are- 
automatically placed on a notification queue by our computerized reservations 
system. These passengers are then called and advised of their new departure and 
arrival times. In instances where the booking was received from another carrier 
in control of the passenger, a message is automatically generated to that carrier, 
All passenger records for flights that are cancelled as a result of schedule 
change are automatically reaccommodated on a predesignated flight which most 
closely resembeles the passengers original schedule. These passenger records 
are also placed in notification queue for calling, or a message automatically 
generated to the controlling interline carrier. 



[Jl. What is the carrier's policy regarding tlic rc-placcMnrjut: of loat 
or sloleu ticket's? IVhat is the policy regarding Llic refur.il oi Gm:h 
a lost or stolen ticket? 



Lost tickets are replaced if: 

1. Ticket purchase can be verified. 

2. Ticket was purchased from Continental. 

3. Proper application and indemnity form is signed. 

Lost tickets are refunded as promptly as possible after receipt 
of properly executed application. Application must be made not 
later than one month after the expiration date of the lost ticket. 
A $5.00 service fee is charged. ! 



1114 



82. What was the cost to the carrier during each of the past three 
years for the establishment, maintenance and personnel for any 
club or VIP lounges? 

The cost for the aforementioned for the year(s): 



1972 

1973 

1/74 - 9/74 



$66,163.00 
$80,143.00 
$73,561.00 



83. How many passengers were denied boarding on flights for 
which they had confirmed reservations or valid tickets 
(include no-recs) 1972 - October 1, 1974? 

ANSWER: 6,255 



84. How many of these passengers were eligible for DBC? 
1972 - October 1, 1974? 



ANSWER: 2,060 



1115 

How many of these passengers were not eligible for DBC 
because of equipment substitutions? 1972 - October 1, 
1974? 

ANSWER: 137 



86. Government requisition of space? 1972 
October 1 , 1974? 

ANSWER: 24 



87. Failure to meet check-in or ticketing requirements? 
1972 - October 1, 1974? 



ANSWER: Continental Airlines has no check -in time 
limit. Records on cancellations due to 
failure to observe ticketing time limits 
are not maintained. 



Carrier was able to re-book them on a flight scheduled 
to arrive within two hours of original flight? 1972 - 
October 1 , 1974? 

ANSWER: 4J95 



67-378 O - 76 - vol.2 - 32 



1116 

What was the total amount spent to pay DBC to passengers? 
1972 - October 1, 1974? 

ANSWER: $379,443.87 



90. What percentage of passengers with conditional 
reservations were upgraded to First Class on the 
original flight? 1972 - October 1, 1974? 

ANSWER: Does not apply. 



91. What percentage of passengers with conditional 
reservations were unable to board their original 
flight? 1972 - October 1, 1974? 

ANSWER: Does not apply. 



92. Does the carrier offer conditional reservations, 
such as "le;isure class"? 

ANSWER: No. 



1117 



93. If a passenger holds a ticket with an "ok" status and the 
carrier has no record of the reservation, what procedure is 
followed in an oversale situation? How is such a passenger's 
boarding priority affected? Is denied boarding compensation 
offered? 



/\NSWER: If a passenger holds a ticket with an "ok" status, 
and the carrier has no record of the reservation, 
then the passenger becomes a stand-by if the flight 
is showing full. The stand-by boarding priority of 
such a passenger would be above priorities of all 
other passengers who do not possess tickets showing 
an "ok" status for the flight in question. If more 
than one such passenger is present for any flight, 
priority is assigned according to the time that the 
passenger presents himself at the designated board- 
ing point, earliest arrivals having the highest 
priority. 

Pursuant to Airline Tariff Publishers, Inc. 
Tariff PR-6, CAB #142, Rule 380, the passenger is 
not entitled to oversale compensation if the over- 
sale condition prevails at the scheduled time of 
flight departure and the passenger has not been 
acconmodated on the flight in question. 



1118 

94. Describe the procedures followed for dealing with 
bumping. Enclose copies of any manuals or the sets 
of instructions directed to employees dealing with: 

(a) Bumping procedures, 

(b) Procedures for dealing with bumping 
complaints, 

(c) Priorities set in determining whom to 
bump. 



ANSWER: See attached Sales & Service Manual 
Section 21.140. 



1119 



CO^^JTl?SSE5^JTAL AIRUWES ^^C^ 

SALES AND SER VICE MANUA L "^-^^S^ 

21.U0.01 



21.140 HANDLING OF "OVERSOLD" PASSENGERS 

A. Passengers Accommodated in Section (Class of Service) Other Than That 
Confirmed - Ha.'>ale any passenger who holds conflrrr.ed space en a flight 
and i£ accorT7<jdated on that flight but, due to a lack of seats, is not 
acconmodated in the class in which space v;as confirmed as follows: 

1. If upgraded, make no additional charge, 

2. If downgraded, issue refund check (or application) foi- an involuntary 
refund of difference in applicable fares. 

3. l^gradlng/Dov.Tigrading Policy: 

a. When a choice exists between upgrading or downgrading a passenger 
on a CX) flight, always upgrade him. 

b. On a tbj:'ee-class flight where Club Coach is filled, do not upgrade 
an oversold Econc:-^ passenger directly into First Class (unlejs 
necessary to avoid flight delay). Move a Club Coach passenger 

to First Class and the Econon:;' passenger to Club Coach. 

c. Make every effort to seat any upgraded passenger in an area re^iote 
fi-om passengers v;no were originally ticketed for that class of 
service. (Beser^je special seats cr vows, as appropriate.) 

d. Proper brandling of an oversold First Class passenger, who must be 
doivngraded, nay vary with circ'jr.stances and shall be decided by 
the super-zlsor in c'rarge. 



*'^*' 



B. Passengers NOT Acccmmodated on the Flight for Which Confinned Space is 
Held -^liandle ariy passen-er who holds confirmed space on a flight but, 

- is :Jar acccriTiodated on that flight as follows: 

1. Reroute to destifiation \'la any of the alternate means outlined in 
paragraph D. , 21.130, of the Customer Service Tlanual. 

2. When passenger is eligible, issue appropriate "Conpensation for Denied 
Boarding " as outlined in Chapter 23. 

3. Offer passenger every courtesy and assistance possible vrtiile awaiting 
transportation to destination, including interim expenses. 

C. Policy for Denied Boarding/Removal - \^en an "oversold" situation exists, 
the order of denied boarding or removal is: 

1. Local boarding passer^gers who can be rerouted to arrive at destination 
or next point of stopover within the 2-hour or ^t-hour lijritatlon. 

2. Local boai'^iing passengers who volunteer to relinquish space. 

3. Local boarding passengers least Inconveriienced by the dsnisd boarding: 
consideration given to length of trip, purpose of travel, age, infirmity, 
groLp travel, etc. 



1120 
2'r. 140.02 /r'^<3 

HANDLING OF "OVERSOLD" PASSENGERS VT"""?^ 



C. Policy for Denied Boarding/Removal (Continued) 

h. Local boarding passengers who can be identified as being last booked (via date/ 
time of reservation data). 

5. Ihrough passengers who can be identified as being last booked (via date/time of 
reservation data). 

D. Conditions for Payment of Compensation - Subject to the exceptions outlined below. 
Continental will tender cornpensation to a revenue passenger who is not accoriiriodated 
on his desired CO flight when the passenger: 

1. Holds a proper ticket showing confirmed reserved space (or CO has a positive 
record of confirmed space) . 

2. Presents himself at CD's airport check-in poLnt before scheduled flight depar- 
ture. 

3. Is acceptable for transportation under CD's tariff rules. 
EXCEPTIONS : The oversold passenger is NOT eligible for compensation if: 

1. The flight for which the passenger holds confirmed reserved space 
is unable to aaaornmodate him because of: 

a. Government requisition of space; or 

b. Substitution of equipmsnt of Zess^ir capacity when required fcv 
»»«>— ig*. operational and/or safety reasons ; (this does not include AelghU 

restrictions) 

2. CO arranges alternate transportation uhi^jJi, at the time suc'r. ar- 
ranger.ent is made^ is planned to arrive 'at the passenger's des- 
tination or next point of szopcver earlier than, or not later than 
two liours after, the time the flight, for which confirmed space 

is held, is planned to arrive in the case of interstate and over- 
seas air transportation, or four hours after such time in the case 
of foreign air transportation; or 

3. The passenger is accormiodated on the flight for which he holds con- 
firmed reserved space, but is offered accommodations or is seated 

in a section of the aircraft other than that specified, in his ticket. 

NOTE : Should the passenger refuse accommodation in another section 
request a volunteer passenger to be up- or down-graded and 
allow the complainant to be seated in his confirmed class of 
service. 

4. The passenger is an airline employee traveling free or at 
reduced rate. 



1121 



95. How many complaints were received regarding schedule irregularities? 
1972-October 1, 1974? 

1,510 



9G, What \'ias the cost of providing amenities to deDaycd pasriengci 
(foodj hotels, etc.)? 1972-OctobGr I, 3.97-1? 



$697,913 



//97 What is the procedure for getting flight status information from aircraft, 
to operations, to computer, to reservations and other personnel responsible for 
giving flight information to the public? 

Flight information, received from airborne or en route aircraft, flight control, 
or local station management is input into the computer by terminal operations 
personnel in the individual stations. Flight information of a forecast or de- 
cision nature is also often entered directly by flight control personnel. 

Flight information of a forecast or decision nature automatically updates or 
corrects all previous information existing in the computer for that flight/ 
date. Information of a progress nature is cumulative, providing a total recap 
of the progress of the flight from point of origin through all intermediate 
cities to the termination point. All personnel retrieving flight information 
for a particular flight/date will receive the same identical information regard- 
less of where the information is retrieved. 



1122 

What is the procedure for notifying delayed passengers 
of the availability of amenities? 



ANSWER: Our Sales & Service Manual (page 21.140.01 
B. 3.) instructs: 

"Offer passenger every courtesy and 
assistance possible while awaiting 
transportation to destination, in- 
cluding interim expenses." 

Such an offer is made verbally to each 
delayed passenger by the gate and/or 
ticket counter agents. 



1123 



99. List the steps taken by your airline in the last two years to 
simplify tariff construction and to protect the consumer against 
overcharges. (Note that Consumers Union reported in a recent 
survey that because of tariff complexities consumers are often 
overcharged. What steps has your airline taken since the 
publication of that survey to prevent overcharges?) 

1. The domestic carriers have added over 28,000 new joint fares to the 
consolidated tariff in the past two years -- a 25% increase. There are 
now single factor published joint fares for all routings which produce 
a minimum of one passenger a day. There are in excess of 139,000 such 

• joint fares now published in the consolidated tariff. 

2. In an attempt to minimize the confusion of almost daily tariff changes 
of some type, the domestic carriers agreed (CAB Agreement No. 23694) 

a year and a half ago to experiment with new tariff filings being 
limited to the 1st and 15th of each month. 

3. In October, 1972, after having published joint fares in all markets 
where it had a record of any traffic movement for the previous year, 
Continental sought to eliminate Rule 85(A) (the "hidden city" and 
"point beyond" construction rule that is the major source of interline 
ticketing errors) from the Rules Tariff, PR-6, CAB No. 142. Elimination 
of this rule coupled with the large increase in the number of published 
joint fares would have greatly aided fare quote and ticketing accuracy 
for these unusual routings. This proposal of Continental's was rejected 
by the CAB in its Rejection Notice No. A-6585. 

4. The tariff has been simplified considerably by the elimination of youth, 
family plan and Discover America excursion fares. 

5. Company policy and practice dictate thorough training of all new passenger 
service employees in the use of the tariff and computer network for the 
purpose of fare construction. 

6. Fi'^-ld training by Reservations and Airport Training Specialists is con- 
ducted frequently on a recurrent basis. 

7. Demand ticketing facilities at major airports provide capability for 
issuance of computer generated tickets utilizing computer-stored fares. 
This decreases reliance upon manual calculations. 

8. Continental has greatly increased the number of computer-stored fares in 
order to further preclude the possibility of erroneous calculation. 

9. Concise instructions on the proper preparation and calculation of tickets 
involving special fares is stored in our version of the Direct Reference 
System. This system is incorporated into our computer network and is 
directly accessible by all ticketing and fare-quoting personnel. 

10. All domestic joint fares published in Squire's Tariff in which Continental 
is a participant have been added to the automated fare data base. The 
automated fare system has recently been improved to expedite updating of 
the data base when fares change. It has also been modified to automatically 
compute "unpublished joint fares" according to Rule S5J - Construction of 
Fares where published joint fares do not exist. 



1125 



DELTA AIRLINES RESPONSES TO AIRLINE QUESTIONNAIRE 

1. Have you seriously considered lowering fares on any major routes within the 
past five years? If so, did you file tariffs embodying lower fares? (docket 
numbers?) If not, why not? Do current Board procedures inhibit or encourage 
the carriers to experiment with lower rates? How? 

Delta has lowered fares on our major routes within the past five years, i.e.. 
Excursion Fares, Air/Sea Group Discounted Fares and other individual and group 
promotional fares. Delta has also introduced night coach fares (at a fare reduction 
of approximately 20% from day coach fares) into numerous new markets within the 
past five years. At this time, Delta operates the largest off-peak night coach 
discounted service in the world. The Board's current procedures provide for 
experimentation by the carriers with lower fares subject only to adequate justi- 
fication by the carriers. 



1126 



2. Do you support the type of "zone of reasonableness" fare proposal advocated 
by DOT and DOJ in Phase 9 of the DPFI? Do you believe such a zone vrould 
lead to lower fares? Why? 

Delta has supported the zone of reasonableness concept throughout the DPFI, although 
Delta has pointed out that such zones can result in fare increases as well as 
fare decreases. In later stages of the proceeding. Delta argued for even wider 
carrier initiative and discretion in proposing fare and rate changes — even greater 
freedom than that which would exist if a "zone of reasonableness" were established 
and if the CAB's position that it has the power to reject tariffs outside of the 
zone were to prevail. 

Delta itself proposed a "zone of reasonableness" concept at the earliest possible 
stage of the Domestic Passenger Fare Investigation — the direct exhibit date in 
Phase 9, Fare Structure, thereof, January 18, 1971 — before it or other parties 
were aware of DOT and DOJ proposals in that phase for such a concept (see the 
January 18, 1971 direct testimony of Delta's Assistant Vice President-Marketing 
Planning, J. T. Maples, pp. 2-9, attached hereto). Delta has continued throughout 
the Phase 9 proceeding (not yet decided finally by the CAB) to support the zone 
of reasonableness concept, particularly its own proposal, although Delta has also 
stated its lack, of opposition to the somewhat different zone concepts proposed 
by DOT and DOJ (see, for example, footnote 1 on page 34 of Delta's November 12, 
1971 brief to Examiner Robert M. Johnson). It should be stressed that in many 
respects Delta's concept was broader than those advanced by DOT and DOJ, in that 
Delta not only urged a zone of reasonableness for the basic fare (the day "coach 
fare) , but also urged that zones be created within which first class and night 
coach fares could be related to the basic day coach fare, rather than having such 
fares tied by a fixed percentage of whatever the day coach fare happened to be at 
any particular time. Delta's position in these respects is discussed in the above- 
cited brief of November 12, 1971 to the Examiner; Delta's reply brief to the Examiner 
dated December 3, 1971; Delta's May 22, 1972 brief to the CAB; and Delta's June 
12, 1972 reply brief to the CAB, all attached hereto. 

At a late stage in Phase 9, decisions in other cases made it apparent that the 
CAB considered itself to have the power to "reject" any rate/fare proposal filed 
which differed from the rate/fare level and structure found lawful in a rate/ 
fare investigation such as the DPFI. Rejection of a tariff voids the tariff ab 
Initio , and circumvents the suspension, hearing and investigation requirements of 
the Federal Aviation Act. In addition, there is no provision for a carrier even 
to comment on a rejection notice. Accordingly, use of the rejection power leaves 
the carrier with no opportunity to point out possible error by the Board in its 
course of action. Delta believes that Congress intended the Board to have the power 
to reject tariffs only for failure to adhere to certain requirements of form and 
style (Section 403[a]), but that matters of substance are to be tested under the 
full hearing and investigation procedures when the Board deems that necessary. 
(It should be noted that at least one test of the Board's "rejection power" is 
now pending before a federal Circuit Court of Appeals.) 

Based upon the Board's actions in these other cases, it became evident that a 
zone of reasonableness could be construed by the Board as allowing "rejection" 
of any tariff proposal lying outside of the zone, thus curtailing the carrier 
discretion and initiative obviously intended by Congress (Sections 403, 404 and 
1002 of the Federal Aviation Act) to govern rate/fare changes (Moss v. Civil 



1127 



Aeronautics Board , 430 F.2d 891 (1970). Accordingly, while Delta continued to 
support proper zones of reasonableness as a fallback position, for the remainder 
of the Phase 9 proceeding Delta has urged a procedure whereby, upon completion 
of a rate/fare investigation, all tariffs inconsistent with the decision would be 
cancelled and consistent tariffs would be substituted, with the case- thereupon 
to be terminated and the statutorily-prescribed, normal tariff filing procedures 
thereafter to be followed. Such a procedure preserves maximum freedom for carriers 
to propose rate/fare changes, yet both the air transport industry and the Board 
would have the guidance of the rate/fare making principles, if any, established 
in the investigation and the CAB would retain the control intended by Congress 
through use of the suspension and investigation powers. This refinement of Delta's 
position is set forth in its supplemental brief to the CAB dated March 26, 1973; 
the reply brief dated April 16, 1973; a petition for reconsideration dated April 
29, 197A; and an answer to petitions for reconsideration dated May 9, 1974, all 
in Phase 9 of the DPFI, and all attached hereto along with the above-mentioned 
documents . 

The zone of reasonableness concept as proposed by Delta, DOT and DOJ would insulate 
tariff filings from complaint and :.herefore from suspension and investigation 
as to reasonableness (fare level) as long as the proposal is within the prescribed 
range. (Tariffs would still be subject to complaint for alleged discrimination, 
preference or prejudice.) This would leave carriers considerable freedom within 
the range as to individual fare level changes, which is the reason that Delta 
continues to support ranges of reasonableness as a fallback position. But the 
CAB has control over the range itself, and the danger persists that beyond the 
range any proposal would be rejected. It is for this reason that while under 
Delta's ultimate proposal all tariffs would still be subject to complaint, sus- 
pension and investigation," Delta believes that this position gives carriers the 
maximum freedom to propose rate/fare changes for whatever reason desired, whether 
it be price competition, change of economic circumstances, or whatever. It may 
be possible to improve the suspension/investigation procedures (the current time 
periods prescribed in the Federal Aviation Act are essentially unrealistic, and 
other types of changes have been proposed, for example, by Messrs. Miller and 
Douglas in "Economic Regulation of Domestic Air Transport, Theory and Policy," 
recently issued by the Brookings Institution), but even the present procedures 
are preferable to a combination of a zone of reasonableness with the CAB's current 
interpretation of its rejection powers. 

As to the second part of Question 2, a zone of reasonableness could result in 
lower fares if the suspension and rejection powers were held to be inapplicable 
on fare level grounds to filings within the zone, simply because a carrier would 
have freedom to lower its fares within the zone without fear of complaint, and 
because of the basic competitive forces which might often drive other carriers 
to follow suit. At the same time, however, a zone within which suspension/rejection 
would not apply could also result in fare increases through simple, unassailable 
upward tariff filings within the zone which also could — without fear of inter- 
ference — be followed by other carriers. As some of Delta's attached documents 
to the CAB in Phase 9 indicate, there would be competitive forces restraining 
such upward movements within the zone, but the zone concept is not simply a one- 
way street. This, it seems to Delta, is a further argument against the zone of 
reasonableness concept and in support of Delta's ultimate position, as described 
above. 

[The desrlbed attachments are omitted. All are on file with the 

CAB In the docket for the Domestic Passenger Fare Investigation, Phase 9. 



1128 



List representative figures to indicate the approximate proportion of business 
and pleasure passengers you carry on a) transcontinental flights; b) major 
short haul routes; c) minor short haul routes; d) international routes. 



Delta maintains no such records. 



4. How do you determine the proper fare for a particular city pair? Who, within 
your organization makes this decision? What studies are made for use in making 
it? Have you studied the possible effects of increased fare competition 
on your fares, costs, and profits? Describe in detail the studies you have 
made, and their conclusions. '^. 

The normal (the day coach) fare for a particular city pair is determined by use 
of a uniform, systemwide fare formula (consisting of a terminal element essentially 
directed at ground costs and a line-haul charge per mile designed to cover in- 
transit costs, as closely as both sets of costs can be determined, including a 
fair return on investment in both cases) which is designed to produce equal 
fares for equal distances. Other fares are related to the day coach fares in 
various percentage relationships. The overall fare structure is designed to cover 
costs, including fair return on investment — no more and no less. Within the Delta 
organization, decisions concerning fares are made by senior management. The studies 
made in connection with recent fare changes were made on the basis of internal 
and industry cost data prepared by our Finance Department, utilizing industry 
data filed with and published by the CAB. Delta has made no detailed studies on 
the possible effect on increased fare competition on our fares, cost and profit. 



1129 



How many times during the past ten years have your company or competing 
airlines filed for fare increases? In which markets? How many times have 
you matched fare increases that the Board approved? In which markets? Has 
your airline, in circumstances where a competitor filed an application for 
a fare increase which was approved, felt pressure — formal or informal — from 
the CAB or its staff to file for a similar fare increase? When? Describe. 
Has your airline felt pressure from other airlines to match an approved 
fare increase? Describe. 



Delta has filed for fare increases and fare reductions many times during the past 
ten years both on a systemwide basis and in connection with individual markets 
or individual areas of operation. All of these changes are reflected in tariffs 
on file with the Civil Aeronautics Board. In several instances. Delta has not 
matched fare increases that the Board either approved or permitted to become 
effective. For example, on December 1, 1973, in connection with a general 5% 
increase proposed by various carriers and allowed by the CAB to take effect. 
Delta did not permit the increase to apply between markets of 250 miles or less. 
Again, one of our competitors in January, 1965 increased fares in markets where 
the fare was $50 or less. Delta did not meet these fare increases. Delta has 
not felt pressure either formal or informal from the Civil Aeronautics Board, 
its Staff or any other carrier to increase our fares. 



1130 



Enclose a statement of your costs, reverues, gross profits, interest on debt, 
actual taxes paid, net return to equity, and load factors for your domestic routes, 
and for your international routes broken do^m by individual route insofar as 
possible for each year for the past ten years. (Indicate as well those of your 
costs and profits that are attributable a) Your charter operations; b) other non 
scheduled airline related activities; c) non airline activities) 

Include that same information for the nine months ending Sept. 30, 1974. 

Include that same information for the following routes.* 1) all routes on which 
capacity restricting agreements have been made with other airlines; 2) those 
same routes prior to the time capacity restricting agreements took effect; 3) 
San Francisco/Los Angeles; 4) Boston/New York; 5) Boston/Washington; 6) Washington/ 
Hew York: 7) routes ben<reen the East Coast and Chicago; 8) transcontinental routes; 
9) North Atlantic routes. Provide information as to the traffic density of each 
of these routes. How would these figures change if the load factors on these 
routes averaged 557„? 60%? 657.? 707.? 

Response : 

To the extent available, detailed data requested by the first sentence of Question 
6 are contained in the attachments hereto. The first group of attachments consists 
of copies of financial reports filed by Delta Air Lines with the Civil Aeronautics 
Board for the years in question. These reports provide system information for both 
domestic and international operations concerning most of the items listed in the 
first sentence of Question 6. Load factor data are set forth in the second group 
of attachments. Return on Stockholder Equity and Income Taxes Paid for system 
operations are set forth below: 





Return on 


Actual 




Stockholder 


Income 




Equity 1/ 


Taxes Paid 2/ 


Year Ended June 30: 




1964 


22.20% 


$10,161,861 


1965 


27^02 


$13,455,699 


1966 


32,01 


$20,606,991 


1967 


33.62 


$25,921,055 


1968 


20.19 


$ 5,675,740 


1969 


18.73 


$ 8,696,700 


1970 


18.29 


$ 7,090,321 


1971 


10.97 


-0- 


1972 


14.07 


$10,111,448 


1973 


18.89 


$32,003,228 


1974 


22.61 


$27,996,644 



\l System (Domestic plus International) Net Income after 

Taxes as a percent of average stockholder equity (average 
stockholder equity is average of 5 quarterly balances) 

2/ Federal and State Income Taxes paid or payable. 



1131 



6. Continued 

With respect to charter activity, the attached financial statements provide the 
requested revenue information. Cost data for charter operations are not avail- 
able separately, but such cost data are folded into system cost pools. 

The attached financial data contain information for the quarter ended September 
30, 1974, which can be combined with data for earlier periods to give some indi- 
cation of results for the nine months ended September 30, 1974. Some items cannot 
be furnished for nine months periods, such as Income Taxes Paid, which are paid 
on an annual basis. Delta operates on a fiscal year basis ending June 30. 

Financial data are not available by route. Accordingly, the questions in the last 
paragraph of Question 6 (and those concerning individual route data in the first 
paragraph) can be answered only in terms of load factors. 



1132 



6. Enclose a statement of your costs, revenues, gross profits, 
interest on debt, actual taxes paid, net return to equity, and 
load factors for your domestic routes, and for your international 
routes broken down by individual route insofar as possible for each 
year for the past ten years. (Indicate as well those of your costs 
and profits that are attributable a) your charter operations; 
b) other nonscheduled airline related activities; a) non-airline 
activities). 

Include that same information for the nine months ending Sept. 30, 1974. 

Include that same information for the following routes:* 1) All 
routes on which capacity restricting agreements have been made with 
other airlines; 2) those same routes prior to the time capacity 
restricting agreements took effect; 3) San Francisco/Los Angeles; 
4) Boston/New York; 5) Boston/ilashington; 6) Washington/New York; 
7) routes between the East Coast and Chicago; 8) transcontinental 
routes; 9) North Atlantic routes. Provide information as to the 
traffic density of each of these routes. Haw would these figures 
change if the load factors on these routes averaged 5S%? 60%? 
65%?^ 70%? 



Where applicable 



LOAD FACTORS ON DELTA'S 

DOMESTIC AND INTERNATIONAL ROUTES 

FISCAL YEARS 1964-1974 



Fiscal 








Year 


Domestic 


International 


Sys tern 


1964 


60.3 


51.5 


60.1 


1965 


56.8 


53.0 


56.7 


1966 


61.4 


43.6 


61.0 


1967 


66,6 


49.5 


66.2 


1968 


59.8 


41.5 


59.4 


1969 


56.0 


44.8 


55.9 


19 70 


50.7 


46.3 


50.6 


1971 


47.4 


41.7 


47.3 


19 72 


48.1 


43.4 


48.0 


1973 


51.8 


47.6 


51.7 


19 74 


54.7 


51.7 


54.6 


Third 








Quarter 








19 74 


59.2 


47.1 


58.8 



Note: Does not include Northeast prior to merger. 
Source: Company Records. 



Continued 



1133 



LOAD FACTORS ON DELTA'S 

NONSTOP FLIGHTS IN THE 

NEW YORK/WASHINGTON, BOSTON/NEW YORK, 

BOSTON /WASHINGTON, ATLANTA/LOS ANGELES, 

AND ATLANTA/SAN FRANCISCO MARKETS 



Year 




Total Both 


Ways - All 


Airports 




Month 


NYC-WAS 


BOS -NYC 


BOS -WAS 


ATL-LAX 


ATL-SFO 


1973 












January 


21 


33 


47 


56 


59 


February 


AG 


43 


52 


49 


53 


March 


21 


36 


56 


55 


56 


April 


20 


36 


64 


58 


57 


May 


27 


30 


55 


53 


58 


Jxme 


34 


33 


57 


64 


70 


July 


29 


34 


53 


59 


66 


August 


29 


31 


55 


63 


71 


September 


29 


25 


46 


51 


55 


October 


- 


26 


47 


49 


52 


November 


31 


35 


52 


64 


69 


December 


23 


40 


51 


75 


73 



53 




Year to 
Date 



Note: Includes all airports 



Source: Company Records. 



[Attachment "B". consisting of parts of Delta's Form 4l 
statements for the period 1964 to 197^, have been omitted.] 

[The subcommittee has agreed to Delta's request for 
confidentiality for the answer to question 7.] ,/ — ~ 



1134 



DELTA AIR LINES. INC. 



List your purchases and leases of new airplanes made in the pastx five 
years. How much money have you invested in new airplanes during that 
time? \>fhat is the rate at which you depreciate those airplanes? How 
were these purchases financed? If they were financed by bond sales, 
list the amounts and dates on which these bonds fell due. 



Year Ended June 30 





1970 


1971 


1972 


1973 


197A 


No. of Aircraft 




Pur chased /Leased 












0\med 


12 


7 


3 


10 


30 


Leased 








5 




No. of Aircraft 












Acquired by Merger 
Owned 








12 




Leased 








29 




No. of Aircraft 












Disposed of 












Owned /Leased 






(2) 


(10) 


(36) 



Net Change in 

No. of Aircraft 12 7 1 46 (6) 



Total Cost of New 
Aircraft Acquired (000) 
(Owned Aircraft Purchased) 

(OOP) $65,472 $86,470 $50,610 $76,605 $347,801 



Annual Rate of Depreciation 
10 year life, 10% residual 



Method of Financing 

Internally generated funds, and long-term bank credit agreements. 



1135 



9. Describe your existing outstanding contracts for the purchase 
of airplanes or other major items of equipment. Describe other 
such purchases that you plan over the next five years, which are 
not now covered by contracts . 



Response: Delta has no firm plans for equipment purchases during the 

next five years beyond those shown in the confidential portion 
of the answer to Question 7 (Schedule 3) . 



1136 



10. List the salary, bonuses, and any other compensation paid to the ten highest 



paid 



D. C. Garrett, Jr. 

R. Oppenlander 

R. S. Maurer 

T. M. Miller 

C. H. Dolson 

T. P. Ball 

R. W. Allen 

M. Shipley 

C. A. Smith 

H, T, Fincher 



;s in your company for each year for the past five years. 
Year Ended December 31 



M. 0. Galloway 



D. P. Hetterman 



NOTE : Blanks i 

except where marked "Retired" 





1969 


1970 


1971 


1972 


1973 


-Salary 


$55,000 


$ 76,354 


$ 93,333 


$112,250 


$121,875 


-Bonus 


18,333 


25,000 


9,000 


18,333 


33,660 


-Salary 


50,000 


53,333 


73,333 


94,375 


109,375 


-Bonus 


16,667 


16,667 


7,000 


15,000 


30,154 


-Salary 


50,000 


53,333 


70,000 


72,708 


80,625 


-Bonus 


16,667 


16,667 


7,000 


11,667 


22,440 


-Salary 


55,000 


57,500 


70,000 


72,708 


80,625 


-Bonus 


18,333 


18,333 


7,000 


11,667 


22,440 


-Salary 


60,000 


61,667 


70,000 


72,708 


72,822 


-Bonus 


20,000 


20,000 


7,000 


11,667 


22,440 


-Salary 
-Bonus 


93,333 
30,000 


110,000 
36,667 


109, «61 
11,000 


RETIRED 


-Salary 
-Bonus 


42,417 
13,900 


48,333 
15,333 


53,770 
6,000 


RETIRED 


-Salary 
-Bonus 


SEE NOTE 


31,438 
10,000 


40,000 
4,000 


43,916 
6,667 


56,249 
15,428 


-Salary 
-Bonus 


31,500 
9,000 


36,333 
12,000 


SEE NOTE 


38,500 
6,333 


SEE NOTE 


-Salary 
-Bonus 


SEE 


NOTE 


52,500 


58,425 
9,700 


60,300 
16,830 


-Salary 
-Bonus 


SEE 


NOTE 


38.333 
3,600 


53.917 
8,333 


65,000 
18,233 


-Salary 


29,166 
9,667 




_— QPF MnTF — 






-Bonus 


— OCC INUiL— 






-Salary 


28,250 










-Bonus 


9,333 










-Salary 




31,833 
10,333 




-€EE NOTE- 




-Bonus 




-Salary 








37,354 
6,000 


41,625 


-Bonus 


3EE NOTE 




11,500 


-Salary 










41,625 


-Bonus 




SEE NOit 




11,500 


te individual was not 


one of ten 


highest paid 


in blank years. 



1137 



If your costs were to exceed your revenues each year for the 
next five years, by, say 5% rr 10%, what steps would you take to 
avoid bankruptcy? Cut salaries? Renegotiate ' contracts with unions? 
Postpone dates on which paymr^nts for aircraft are due? Other? 
Would you reorganize the company before going into bankruptcy? 
What would be the effect of bankruptcy on debt holders, equity 
holders, the traveling public? Would the company stay in business? 
Were payments on airplanes rescheduled or forgiven, would it be 
possible to stay in business? How much leeway, in terms of cash- 
flow would such rescheduling or forgiveness produce? 



Since Delta has not suffered an operating loss within the past 
25 years, it is difficult for us to respond directly to this 
question. Although we have had some down years during that 
period, our financial stability and strength, created by long 
years of adherence to a "lean and hungry" approach to operating 
the company, brought us through all of the adverse years in 
good shape. Perhaps the best way to describe Delta's reaction 
is to review those steps now underway to minimize the adverse 
impact of a predicted softening of traffic in 1975. These steps 
are: 

- Beginning last month, a freeze on new or replacement hiring 
except in those areas directly related to customer service 
or safety; 

- A downward revision of roughly 5% to 6% in our capacity plans; 

- A careful review of all controllable costs and capital expendi- 
tures, particularly in the areas of overhead, indirect, and 
passenger amenity costs; and, 

- The possible rescheduling of outstanding aircraft options 
and related deliveries with the immediate result of lowering 
cash requirements for advance payments and the longer term 
result of reducing capacity to more nearly match traffic demands. 

With these steps and other alternatives available as the year 
progresses, we fully expect to earn a reasonable profit next 
year provided that the current inflationary recession does not 
become much more severe than now appears probable. Absent an 
extended depression, we cannot visualize Delta experiencing 
several years of operating losses nor even approaching potential 
bankruptcy or reorganization. 



1138 



12. Do you believe the CAB ought, as its first priority, to act to prevent 

a possible bankruptcy by any major trunk carrier? If not its first priority, 
should the CAB give such a task a high priority? Under what conditions? 

The CAB is charged with developing a national air transportation system which 
will meet the needs of commerce, the Postal Service and national defense. This 
clearly entails a finacially healthy air transport industry. The CAB therefore 
most certainly should investigate the situation surrounding any financial reverse 
by any company in the air transport industry, and should take suitable action — 
route, rate/fare, subsidy, merger encouragement, or whatever — in order to protect 
the public interest in a continuing, fully adequate system. 

Because of the basic national importance of transportation, and air transportation 
in particular, such an overview of the industry and of its financial health 
must be a matter of high priority with the CAB. The task, however, is not 
really to "prevent a possible bankruptcy" (and therefore that cannot be a matter 
of "first priority"). The task rather should be to monitor and keep a close 
eye on the whole industry, and each of its parts, and promptly to employ existing 
statutory tools or those hereafter provided to keep the industry in a sound, 
healthy condition (including changes in the route system and in the rate/fare 
structure) whereby bankruptcies should not occur. Once this is done, the question 
of preventing a bankruptcy by any particular carrier requires a balancing of 
the public's needs for transport services in light of other available air (and 
surface) transportation, against the cost to the United States of subsidizing 
a carrier or carriers and the impact that would have on other carriers, in order 
to determine if subsidy assistance is required under Section 406 of the Federal 
Aviation Act. 



1139 



13. Why, in your view, are the original trunk carriers — those in business in 
1938 — the only trunk carriers still in business? Why have no other firms 
in the aviation business become trunk carriers? 

This question implies a situation which does not exist. There in fa,ct has been 
considerable entry into the air transport industry since 1938; the number of 
"trunk" size carriers has considerably increased; and there has been a huge 
increase in the amount of air transport competition. 

Thirteen large scheduled route carriers now serving this nation have been given 
market entry since 1938 (eight of them serve Continental United States; the other 
five serve Alaska and Hawaii). The carriers in this category are many, many times 
larger than the so-called "trunk" carriers were in 1938 or were in terms of 
revenue passenger miles for several years after World War II. We here refer 
to what are currently denominated "regional" or "local service" carriers — phraseology 
which masks the large size of these carriers, and the major role which they have 
assumed in the air transport industry, particularly within the last ten years. 
We discuss those carriers in more detail below. 

In addition, the Civil Aeronautics Board has only recently certificated a new 
carrier — Air New England — to serve the New England states. This carrier has 
previously been operating as a "commuter carrier," but even so during the latest 
period for which data are available (11 months 1974), the carrier produced more 
plane miles and carried more revenue passenger miles than did the average trunk- 
line in 1938. Furthermore, since 1938 — since World War II — the Civil Aeronautics 
Board has certificated three all-cargo carriers, and a number of supplemental 
carriers. 

In each instance — regional carriers, all-cargo carriers, and supplemental carriers — 
the CAB has allowed entry into the market by a larger number of carriers than those 
now serving. Some have ceased to operate independently as a result of merger, 
or altogether for other reasons. 

Attachment No. I hereto displays these developments graphically. It shows that 
despite mergers and business failures there are nearly twice as many carriers 
today (1972 data) as in 1938. 

As Attachment I also shows, a number of other carriers have been certificated to 
provide international U.S. Flag service. And foreign carrier after foreign carrier 
has been certificated to operate to and from the United States. 

We return to the so-called "local service" carriers: Attachment II consists of 
four pages of statistical material and comments thereon, which are descriptive 
of the significant role played by these carriers in the industry. The first three 
entries show that, in three different categories, the local service carriers 
today are as large or larger than were the "trunks" at various points since World 
War II. In the all-important revenue passenger mile category, the regional carrier 
industry today is larger than were the trunklines only about 20 years ago, in 
1951 — and as the COMMENTS show, one of the locals, Allegheny, alone generated 
approximately as many revenue passenger miles in 1973 (the latest year for which 
such data are available) as did the total trunk industry at the conclusion of 
World War II, in 1945. All of the regional carriers (except two of the Alaskan 



1140 



carriers) are many times larger than was Delta Air Lines in 1945. The rest of 
the data set forth in the accompanying tables are self-explanatory. 

At the same time, the carriers which were in existence in 1938 have been given 
new responsibilities — new market entry — which has effectively eliminated monopoly 
routes in the United States of any consequence. Many routes now have multiple- 
carrier competition, both between the original trunklines, and between the trunks 
and the regional carriers. 

The past decade has also seen the growth of another new category of air carrier — 
the so-called "commuter" carrier. Some of these carriers are today larger than 
were the local service carriers when they first commenced operating after World 
War II. These carriers operate under general CAB regulations, but have been 
exempted from the certificate requirements of the Federal Aviation Act and certain 
other related provisions, so that they have considerable freedom to enter and 
exit any market of their choice, subject to the provisions of Part 298 of the 
cab's Economic Regulations. 



1141 





Attachment I to 
Delta Response to 
Question 13 
Page 1 of 1 


;arriers 
Big 4 
Other Trunk 


4 
12 


Hawaiian 
International 
Territorial 


1 
3 



1948 Total Certificated Route Air Carriers 

Big 4 
Other Trunk 



44 



Local Service 


12 


Helicopter 


1 


Intra-Alaska 


8 


Hawaiian 


1 


International & 




Territorial 


5 



1958 Total Certificate Route Air Carriers 

Big 4 
Other Trunk 



51 



Local Service 

Helicopter 

Intra-Alaska 

Hawaiian 

All-Cargo 

International & 
Territorial 
(2 All-Cargo) 



1968 Total Certificated Route Air Carriers 

Big 4 4 

Other Trunks 7 



Local Service 

Other (inc. 
Helicopter) 

Intra-Alaska 

Hawaiian 

All-Cargo 

International & 
Territorial 
(3 All-Cargo) 



1972 Total Certificated Route Air Carriers 

Big 4 



Other Trunks 



39 



Local Service 

Other (inc. 
Helicopter) 

Intra-Alaska 

Hawaiian 

International & 
Territorial 
(3 All-Cargo) 



1142 



Attachment II to 
Delta Response to 
Question 13 
Page 1 of 4 



Revenue Plane Miles : 

Total Regional Industry - 1973 300,898,000 

Total Domestic Trunks - 1946 304,544,000 

Available Seat Miles 

Total Regional Industry - 1973 22,303,200,000 

Total Domestic Trunks - 1953 22,114,772,000 

Revenue Passenger Miles 

Total Regional Industry - 1973 10,973,200,000 

Total Domestic Trunks - 1951 10,210,726,000 

COMMENTS : 

(1) Local service industry operated more than 4 times 
(4.39) more plane miles in 1973 than were operated 
by total trunk industry in 1938 and 46% more than 
total trunk industry in 1945. 

(2) Reeve (the smallest of the local se^rvlce carriers) 
in 1973 provided 5-1/2 times as many ASM's in 1973 
as were provided by Delta in 1938. 

(3) Allegheny (largest of locals) provided 3,290,900,000 
RPM's in 1973 — the total trunkline industry generated 
3,336,278,000 in 1945. Allegheny alone (in 1973) Is 
98.6% as large as the total domestic trunk industry 
was at the time the locals came into existence. 

(4) In terms of 1973 RPM's the following show the comparisons 
of the individual regional carrier's size versus Delta 

in 1945: 



Air West 


12.2 times 


Alaska 


3.4 times 


Allegheny 


31.9 times 


Aloha 


2.5 times 


Frontier 


12.7 times 


Hawaiian 


3.4 times 


North Central 


9,3 times 


Ozark 


6.0 times 



1143 



Attachment II to 
Delta Response to 
Question 13 
Page 2 of 4 



(4) (Continued) 



Piedmont 


9.6 times 


Reeve 


0.4 times 


Southern 


7.0 times 


TXI 


6.6 times 


Wien 


1.0 times (Same size) 



(5) In terms of history, the local service industry 
in 1973 equals the total domestic industry in 
terms of: 

A. Plane miles in 1946. 

B. Revenue Passenger Miles in 1951. 

C. Available Seat Miles in 1953. 



1144 



Attachment II to 
Delta Response to 
Question 13 
Page 3 of 4 



U. S. REGIONAL CARRIERS 



Scheduled Service 
12 Months Ended December 31, 1973 





Revenue 


Available 


Revenue 




Plane 


Seat 


Passenger 




Miles 


Miles 


Miles 


1973 


(000) 


(000,000) 


(000,000) 


Total Industry 


300,898 


22,303.2 


10,973.2 


Air West 


30,9 86 


2,457.0 


1,259.9 


Alaska 


7,480 


690.5 


354.0 


Allegheny 


84,917 


6,798.8 


3,290.9 


Aloha 


3,600 


413.8 


255.9 


Frontier 


34,981 


2,471.6 


1,308.1 


Hawaiian 


5,366 


551.8 


354.9 


North Central 


29,422 


2,039.3 


955.8 


Ozark 


18,941 


1,295.9 


617.5 


Piedmont 


27,674 


1,987.6 


994.4 


Reeve 


1,760 


77.2 


36.4 


Southern 


25,492 


1,643.6 


721.1 


Texas International 


22,976 


1,484.8 


681.9 


Wien 


6,177 


280.0 


106.7 



NOTE: Charter not included in figures for RPM's and ASM's. 

Total Industry includes amounts for Caribbean Atlantic, 
which merged with Eastern 5/15/73. 



Source: McDonnell Douglas, Airline Industry Data for 12 months 
ending December 31, 1973. 



1145 



Attachment ii to 
Delta Response to 
Question 13 
Page 4 of 4 



DOMESTIC TRUNKS, BIG FOUR AND DELTA 



Scheduled Service - 1935 and 1938 



1938 : 
Total Trunklines 
Big Four 
Delta 



Revenue Available 

Plane Seat 

Miles Miles 

(000) (000) 



68,543 944,729 

48,975 755,891 

1,394 13,930 



Revenue 

Passenger 

Miles 

(000) 



475,600 

393,180 

5,942 



1945: 
Total Trunklines 
I|ig Four 



205,935 3,784,532 3,336,278 

140,824 2,521,612 2,276,164 

5,901 122,890 103,246 



NOTE: These statistics are for scheduled service, no 
charter is included. 



Source: Delta: Annual Airline Statistics , Domestic 
Carriers, 19 38-1942 and 1945. 

Trunklines and Big Four: 1965 Edition of the 
Handbook of Airline Statistics. 



1146 



14. If the CAB were to set a definite policy of not allowing any fare increases 
in the next five years, what would you do? Would you disinvest in aircraft? 
How can you do this? Would demand catch up to your present fleet? Suppose 
the CAB cut fares by 10% or suppose fuel costs continue to increase? 

In Delta's view, the CAB does not have the legal power to pre-announce a ban on 
fare increases for five years, nor can the CAB arbitrarily "cut fares" by any 
particular percentage. As explained in the answer to Question No. 2, the Federal 
Aviation Act gives the carriers the right to initiate fare changes. Under existing 
law, the CAB can require different fares only after it has investigated an existing 
or a carrier-proposed fare in public hearings ( Moss v. Civil Aeronautics Board , 
430 F.2d 891 [1970]). 

Even if it were to be assumed that the power now exists or hereafter would be 
provided for the CAB actions assumed in the question, it would still not be possible 
to provide a meaningful answer. In the first place, it is difficult to assess 
a situation where airline prices would be frozen or be cut without some comparable 
control on the major airline cost — wages. Yet no guidelines are provided as to 
any such control. 

Second, Delta is not in a position to assess the elasticity effects on traffic 
growth of the fare cut assumed in the latter part of the question. Delta has not 
been able to develop a reliable elasticity test of its own, and has not been able 
to accept the elasticity test used by the CAB in the DPFI. 

Third, what a carrier would do in the assumed circumstances would depend on what 
happened in many other areas of its own and of the general economy. How long a 
carrier could stave off bankruptcy in the face of rising costs without a fare 
change; whether a fare cut or rising fuel costs would cause expenses to exceed 
revenues; what demand would be in any such case; whether aircraft could be sold 
in such situations; and other similar matters are essentially too speculative to 
permit a meaningful answer. 

It might be noted, however, that if holding the line on fare level were to result 
in a situation where revenues did not cover total costs, the problem would be 
as acute with a smaller fleet as it would be with present fleets, even if a carrier 
could disinvest in aircraft. In fact, a smaller scale of operations could well 
increase unit costs and could lower the traffic stimulating effects of service 
frequency, with a downward spiral of adverse economic consequences. 

The current market for used airplanes, particularly large aircraft, is quite 
limited. If a hold-the-line policy on fares, or fare cuts, were to worsen industry 
economics, the market would become even tighter and disinvesting in aircraft would 
become much more difficult. Used aircraft are either (a) "traded in" to a manu- 
facturer, who then sells the aircraft to other carriers which can use them or to 
a broker or (b) particularly in the case of smaller aircraft, sold to a smaller 
carrier in this country or abroad. In periods of general or airline economic 
adversity new aircraft are purchased in small quantities, if at all. The oppor- 
tunity for trading used aircraft in seldom exists in such a situation, and other 
airlines are not then in a position to expand their own capacity, with the result 
that disinvesting is extremely difficult. 



1147 



DELTA AIR J . INES, INC. 

Normally, low profits are a sign-il to an industry that its investment 
is too large — that it should disinvest. Is this "classical" statement 
applicable to the airline industry? If not, why not? 



There are too many factors which influence the profits of the airline 
industry to permit an automatic assumption that low profits result 
from too much investment in operating capacity. The industry is 
both capital intensive and labor intensive. The long lead times 
required on new aircraft purchases (14 months to 3 years or longer) 
and the highly cyclical nature of traffic demand combine to make it. 
most difficult to optimize investment with demand over the short term. 
Even if disinvestment were a partial answer to low profits, it is 
most unlikely that a viable market would exist for used aircraft 
at a time of low traffic demand. 



1148 



16. What major factors do you believf; are responsible for the airline 
industry's ] ow profit over the pist few years? Do you believe 
that CAB policies contribed to, . r offset, low profits? 
(Specify which policies and how. ) 



Apart from the major general economic factors of inflation and 

recession which have beset all industries during this period, 

v;e believe many of the airline industry's problems can be traced 

to certain CAB policies during the period 1966 through 1969. In 

1966, pursuant to Board urgings, the domestic carriers began 

filing various forms of "system-wide discount" fares including 

Discover America and Youth fares. These fares, almost without 

exception, were filed and approved with virtually no economic or 

cost justification and without any meaningful marketing restrictions 

such as length of stay, peak season or peak day blackouts, or 

expiration dates. Predictably, the introduction of these uneconomic 

"system-wide discount" fares stimulated an immediate response and 

traffic growth reached unprecedented levels in 1966 and 1967. 

(For a full discussion of Delta's position on "system-wide discount" 

fares versus truly promotional fares and the advantages of off-peak 

night coach services, see Delta's Brief to the Examiner in Docket 21866-^ 

attached hereto.) 

Unfortunately, during this period of over stimulated growth, the CAB 
chose to initiate a series of new route investigations which culminated 
in 1969 with massive new competitive route awards without parallel 
in the industry's history. While many examples could be cited, 
perhaps the most disastrous one was the awarding of competitive 
authority to Hawaii to a total of seven trunk carriers. 

Needless to say, the industry was not blameless during this period. 
In 1966 and 1967, many of the airlines were having to commit for 
the purchase of new wide-bodied aircraft fleets for delivery beginning 
in 1969 and 1970. There can be little doubt that the inflated 
traffic growth at that time contributed to the optimistic forecasts 
used as the basis for ordering the new aircraft fleets. In addition, 
the industry failed to initiate positive action in late 1967 to 
mitigate the yield erosion created by the discount fares when it 
became increasingly apparent that unit costs had bottomed and profit 
margins were shrinking. Had such action been taken, the overall 
yield could have been improved gradually and in line with the CPI,* 
rather than in the massive increases which became absolutely imperative 
beginning in 1969. 

The present policies of the CAB, which began with the Domestic Passenger 

Fare Investigation (Docket 21866) in 1970, are primarily constructive 

in nature. Although we strongly disagree on some of the details, we 

understand and agree that many of the major decisions reached in 

both rate and route matters since 1970 were necessary to overcome 

the overly expansionary policies followed by the CAB in the late 1960 's. 



*Consumer Price Index 



1149 



#16 Continued. 



We certainly cannot disagree wit': the CAB's stated intent to bring 
financial stability to the industry in order to develop and maintain 
a viable air transportation system within the United States — a 
goal which is the very essence of its Congressional mandate. 

[The brief of Delta to Examiner A.S. Present in Domestic Passenger 
Fare Investigation, Phase 5, docket 21866-5, Inserted here, is 
omitted; it is on file with the CAB.] 



1150 



During a recent CAB proceeding -n industry witness testified: 
"If .a carrier were absolutely c rtain that the CAB would allow it 
to go bankrupt before it were g ■ ven any relief, then I believe 
you would see some action takin.- place in eliminating marginal 
capacity (excess capacity)". Do you agree with this statement? 
Why? Do you believe that the CAB's load factor standards v/ould 
be more effective in controlling load factors if the CAB were less 
concerned to prevent airline bahkruptcy or reorganizations? 



We disagree. Delta has always viewed its responsibilities to 
provide the best possible service to its customers, stable and 
rewarding employment to the members of the Delta family, and a 
reasonable return for its stockholders as inseparable and completely 
interdependent. Certainly, no company or industry can provide 
continued good service and stable employment without the financial 
stability flowing from an extended record of a fair return to its 
stockholders. To the extent "excess capacity" jeopardized Delta's 
profits and future stability, we would not expect the CAB to provide 
the necessary relief but would unilaterally take whatever actions 
were appropriate at the time. We do not believe the load factor 
standards established in the DPFI have been in effect long enough 
to make any judgement on their merits or potential impact on manage- 
ment decisions related to operating capacity or equipment purchases. 
We see no connection between the effectiveness of load factor 
standards and the CAB's concern or lack of concern over airline 
bankruptcy or reorganizations. 



1151 



18. Are your costs higher than, equal tc, or lauer than 
industry average? By how much? Why? 



There is no universally accepted measure of unit costs by which you can compare 
one airline against another because of the wide diversity in route structures 
which impacts upon average aircraft and passenger trip lengths and load factors. 
By some measures Delta's unit cost is higher while by other it is lower. In 
terms of Operating Ratio or Return on Investment Delta has consistently exceeded 
industry averages. We believe this can be attributed to our history of financial, 
employment and management stability, all of which have combined to permit more 
effective cost control and greater operating efficiency. 



19. List your advertising, other promotion, and office rental costs, 
absolutely, and as a percentage of total costs, for each year for 
tne past five years. 





Advertising and Publicity 
Expenses 


Office Rental 
Expenses 


Year Ended June 30: 
1970 


Percent of 
Amount Total 
(000) Expenses 

$11,920 2.257, 


Amount 
(000) 

$388 


Percent of 
Total 
Expenses 

0.07% 


1971 


$12,678 2.08% 


$338 


0.06% 


1972 


$13,323 1.95% 


$270 


0.04% 


1973 


$15,541 1,70% 


$423 


0.05% 


1974 


$18,905 1.75% 


$551 


0.05% 



1152 



20. Assuming that all scheduled flights remain unchanged what is the 
additional cost of carrying one extra passenger on a flight? 



Assuming that all scheduled flights remain unchanged, the 
additional cost of carrying one extra passenger on a flight is 
approximately 1.2c per mile. 



1153 



Please answer the following questions in respect to each of the following markets: 
San Francisco/Hawaii, New York/Hawaii, New York/Los Angeles, New York/Atlantg, 
Chicago/New York, New York/Miami, Boston/Washington: 

a. What are your costs per flight, (1) determined on a "fully allooated" cost 
basis, (2) determined on a DOC basis (as used by the CAB), (3) determined on 
an "incremental cost" basis (what do you include in "incremental cost")? 
Determine these costs insofar as possible both on a "seat-miles" basis and 
on an RPM basis. 

b. What are your load factors in each of those markets? 



Cost Per Flight 



Market 

New York/Atlanta: 
DC- 9- 3 2 
DC-3-50 
B-727-200 
DC-10 

Wtd. Average 



New York/Miami: 
DC-9-32 
DC-8-50 
B-727-100 
B-727-200 
DC-10 

Wtd. Average 



Fully 


Direct 




Passenger 


Allocated 


Operating 


Incremental 


Load 


Costs 


Costs 


Costs * 


Factor 


$ 2,883 


$ 1,483 


$ 1,587 


61.46% 


3,997 


2,080 


2.249 


60.55 


3,891 


2,065 


2,093 


70,89 


9.226 


6.029 


3.816 


43.75 


$ 4,936 


$ 2,835 


$ 2,447 


59,01% 


$ 3,863 


$ 2,053 


$ 2,138 


76.16% 


5,542 


2,882 


3,279 


64.92 


4,400 


2,574 


2,500 


57,58 


4,847 


2,646 


2,625 


61,78 


11,256 


7.542 


4.988 


39.84 


$ 5,343 


$ 3,061 


$ 2,842 


58.59% 



Boston /Washington : 
B-727-200 



$ 1.362 



Incremental Costs include-Flight Crew Costs (at reduced rate) 
Maintenance Burden (at reduced rate) 
Direct Aircraft Maintenance 
Fuel, Oil and related taxes 
Food and Commissions Expense 
Landing Fees 

Passenger Insurance and supplies 
Misc. Station expenses 



1154 



21. (Continued) 



Cost Per Available Seat Mile 
Fully Direct 
Allocated Operating Incremental 
Costs Costs Costs * 



Cost per Revenue Passenger Mile 

Fully Direct 
Allocated Operating Incremental 

Costs Costs Costs * 



New York/Atlanta: 
DC-9-32 
DC- 8- 50 
B-727-200 
DC- 10 

Wtd. Average 



4.21c 

3.95 

3.90 

4.86 

4,24<: 



2.17c 

2.05 

2.07 

3.17 

2.44c 



2.32c 

2.22 

2.10 

2.01 

2.10c 



6.71c 
6.52 
5.50 
11.11 
7.19c 



3.53c 

3.39 

2.92 

7.25 

4.13c 



3.78c 

3.67 

2.96 

4.59 

3.57« 



New York/Miami: 
DC-9-32 
DC-8-50 
B-727-100 
B-727-200 
DC- 10 

Wtd. Average 



3.97c 

3.77 

4.18 

3.46 

4.21 

3.75c 



2. lie 

1.96 

2.44 

1.89 

2.82 

2.15c 



2.20c 

2.23 

2.37 

1.87 

1.87 

2.00c 



5.21c 
5.80 
7.25 
5.60 
10.57 
6.41c 



2.77c 

3.02 

4.24 

3.06 

7.08 

3.67c 



2.89c 
3.43 
4,12 
3.03 

4.68 
3.41c 



Boston/Washington: 
B-727-200 



Note: Above costs based on actual operations for quarted ended 9-30-74. Incremental 
costs based upon minimal operation deviations from the base schedule. 



Incremental Costs include 



Flight Crew Costs (at reduced rate) 
Maintenance Burden (at reduced rate) 
Direct Aircraft Maintenance 
Fuel, Oil and related taxes 
Food and Commissions Expense 
Landing Fees 

Passenger Insurance and supplies 
Misc. Station expenses 



^ 



1155 



What are 



your load factors in each of those markets? 



LOAD FACTORS ON DELTA'S 

NONSTOP FLIGHTS IN THE 

NEW YORK/ATLANTA, NEW YORK/MIAMI 

AND BOSTON/WASHINGTON MARKETS 



Year 


Total Bo 


th Ways - 


All 


Airports 


Month 


NYC-ATL 


NYC-MIA 


BOS -WAS 


1973 










January 


48 


33 




47 


February 


49 


43 




52 


March 


48 


34 




56 


April 


54 


42 




64 


May 


53 


35 




55 


June 


59 


32 




57 


July 


59 


33 




53 


Aug us t 


60 


32 




55 


September 


52 


27 




46 


October 


52 


31 




47 


November 


54 


50 




52 


December 


56 


50 




51 



53 



19 74 




January 


53 


February 


58 


March 


62 


April 


67 


May 


67 


June 


67 


Julv 


69 


August 


75 


September 


60 


October 


57 


Year to 




Date 


63 



52 



Note: Includes all airports 



Source: Company Records, 



1156 



22. List the routes including international routes that you have applied for 
CAB permission to serve in the last five years. Indicate those routes 
where the CAB has granted permission. Indicate those where the CAB has 
denied permission. Indicate those where no action was taken by the CAB, 
along with the ultimate disposition of the application. As to each appli- 
cation, indicate the date of filing and the date of ultimate disposition 
along with the dates of any hearings held. Do you believe that Board 
actions on your route applications have generally been exepditious? If 
not, to what do you attribute the delay? 

Attached hereto is a chart which lists Delta's applications during the last 
five years, and which also answers most portions of Question 22. Except as 
indicated in Note 1 on the chart, none of the requested permission has been 
granted, although two of the applications remain in active procedural stages 
before the CAB. 

The chart does not set forth information concerning the recent Delta/Northeast 
merger. The application by Delta, Northeast and Northeast's major owner, the Storer 
Broadcasting Company, and by individual applicants for approval of certain inter- 
locking relationships, was given prompt and expeditious processing by the CAB. 
The merger agreement and application were approved, as a result of which Delta 
commenced operating in the form of the combined company over the routes formerly 
certificated to Northeast. 

As a general proposition. Delta believes that CAB action on its route applications 
has been sufficiently expeditious. In individual cases, for one reason or 
another best known to it the CAB will not set down an application for processing 
or, after setting it down, will delay its final disposition. In other instances, 
route applications by an individual carrier are consolidated into a large, 
overall proceeding, in order that comparative consideration can be given to 
all competing applicants (in accordance with the Ashbacker doctrine, Ashbacker 
Radio Co . v. Federal Communications Commission , 326 U.S. 327, decided in 1945), 
and the relative service needs of competing cities can be fully assessed. While 
Delta does disagree from time to time with these individual actions, in general 
the Company cannot quarrel with the CAB's processing of applications or its 
efforts to balance and protect the procedural interests of all public, civic and 
carrier interests involved. 

When delay occurs, it can be attributable to many different things. The necessity 
to provide due process to all interested persons can result in delay in a large, 
area type route proceeding and, occasionally, even in smaller cases. While 
various improvements might be made to the administrative process in general 
and to the procedures of the CAB in particular. Delta would rather see an error 
be made, if one must be made, on the side of full due process. Nevertheless, 
Delta would support proper procedures to shorten the length of public hearings 
themselves, while leaving intact most of the other procedures. Delta would also 
support greater use of rule making procedures in the proper case, although such 
procedures do not lend themselves as readily to route licensing proceedings as 
they do to other forms of regulation. 



1157 



22. Continued 

In other instances a delay can be related to economic circumstances. If the 
general economy or the airline economy is such that the public convenience and 
necessity, including public interest in a sound transportation system, would 
not support the grant of additional authority, the CAB might well not process 
an application at all. Economic circumstances can also dictate delay even 
after a proceeding has been started. On the other side of the coin, economic 
considerations can contribute to efforts by the agency and parties to expedite 
proceedings. 



1158 



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1159 



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1160 



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1161 



DELTA AIR LINES, INC. SUPPLEMENTARY RESPONSE 

TO QUESTION 22 PROPOUNDED BY 

JUDICIARY SUBCOMMITTEE ON ADMINISTRATIVE PRACTICE AND PROCEDURE 



In December of 1974, Delta submitted an answer to Question 22, which 
included a listing of all Delta Air Lines route applications filed with the 
Civil Aeronautics Board during the last five years, together with an indication 
of the action, if any, taken by the CAB. Because the following matter does 
not relate to an application as such, it was not included in the earlier answer, 
but the matter does concern route authority. 

When it approved the Delta/Northeast merger in 1972, the CAB trans-- 
ferred to Delta Northeast's then-existing authority to operate nonstop service 
between Miami and Los Angeles. For reasons grounded in the history of the 
earlier grant to Northeast, however, the CAB stayed the authority in Delta's 
hands, so that until this date Delta has not been able to operate over the 
Miami-Los Angeles route. 

At the same time the CAB instituted a new proceeding to determine 
whether the stay on Delta's authority should be lifted, or whether some other 
carrier should be authorized to operate over the route (in competition with 
National Airlines) instead of Delta. Various carriers applied for Miami-Los 
Angeles competitive authority. Delta did not have to do so, however, because 
it held the previously-granted authority. Delta has vigorously participated 
in the proceeding, arguing that its existing authority cannot be deleted within 
the issues of the pending Miami-Los Angeles Competitive Nonstop Case (Docket 
2A69A); that another (a third) carrier should not be authorized to operate 
over the route because of insufficient traffic support; and that the stay on 
Delta's authority should be lifted, so that Delta can resume the nonstop services 
which had been conducted by its predecessor prior to the Delta/Northeast merger. 

This case was started in 1972, 'in the order approving the Delta/Northeast 
merger; a hearing was held, following which an Administrative Law Judge issued 
an Initial Decision in June of 1973, in which he recommended that Pan American 
be authorized to compete over the route with National, and that Delta's authority 
be terminated. The Board granted petitions seeking review of this Initial 
"lecision, and briefs were filed with the agency on August 13, 1973. In September 
of 1973, however, before oral argument was heard, the Board issued its Order 
73-9-102 deferring further procedural steps, pending preparation of an environ- 
mental impact statement. A draft statement was prepared by the agency's staff 
in late 1973, and comments were filed thereon. A final Statement has only recently 
been issued, but the case remains in a deferred status. 

Delta's legal argument is based upon Section 401(g) which states 
that a certificate of public convenience and necessity issued under the Federal 
Aviation Act of 1958 shall not be revoked unless there has been "intentional 
failure to comply with any provision of [the Act] or any order, rule or regula- 
tion issued [thereunder] or any term, condition, or limitation of such certi- 
ficate," and even then only if the holder fails to comply within a reasonable 
time, to be fixed by the CAB, with an order of the Board commanding obedience 
to the provision, or to the order, rule, regulation, term, condition or limitation 
found by the Board to have been violated. There is no evidence in the proceeding 
that Delta has committed any such violation. 



1162 



23. Are there routes which you would consider entering if CAB approval for 

entering were not required? Which? Describe your reasons for considering 
entry to the extent you wish to do so. Does the CAB's entry policy inhibit 
your flying new routes? If so, describe how? 

Delta constantly studies its existing route system, and markets contiguous to 
that route system and, indeed, throughout the United States and the world, 
to determine wherein the Company could better serve the public interest by 
expanding the route system. In this sense. Delta constantly has under considera- 
tion entry into new routes. Any such move in that direction, however, would 
be taken as deliberately, and with as much advance study, if CAB approval 
were not required as is the case under the present regime. 

The basic consideration for entry into a new market is the present and future 
traffic potential, the related needs of the traveling and shipping public and 
the U. S. Postal Service, and the profit potential for operations over the route, 
the latter requiring consideration of the number of incumbent carriers. 

There is obviously some inhibition to any licensing requirement, but as explained 
in Responses 31/32, Delta firmly believes that controlled entry into U. S. air 
transportation markets is necessary. 



24. Would you charge lower fares than those now being charged on any route 
if you were free to enter and to set lower fares? 

Fares must be set in relationship to the cost of providing the service, including 
a fair and reasonable return on the investment devoted thereto, not on the basis 
of freedom of market entry. Delta has no studies to determine how its costs 
would be affected by a departure from controlled entry into air transport 
markets (which Delta opposes — see Responses Nos. 31/32). 



1163 



25. Are you involved in any route purchase or exchange proceedings? Which 

routes? Involving which carriers? How much would you be willing to pay 
for each of such routes? Would fares be sufficient to cover purchase 
costs? In your view, should such purchases or exchanges be allowed without 
full comparative hearings? 

Delta is currently involved in two proposed route purchase/exchanges: 

1. Delta and TOA have agreed upon the transfer by TWA to Delta of TWA's 
existing authority between Nashville, Tennessee, on the one hand, 
and St. Louis, Atlanta, Tampa/St. Petersburg, Ft. Lauderdale and 
Miami, on the other hand, in exchange for payment by Delta to TWA 
of $1,000,000. The joint application by the two carriers for approval 
of this agreement was set down promptly by the agency (within a 
matter of days after filing) and has been processed expeditiously 
since that time. A hearing has been held, and an Administrative 
. Law Judge has issued an initial decision, recommending that the 
application be disapproved. The CAB decided on its own to review 
the initial decision, with briefs being due to the agency on January 
13, 1975. Oral argument is expected to be heard by the agency in 
January or February of 1975. Delta and TWA believe that this trans- 
fer is in accordance with the terms of the Federal Avaition Act, and 
would be in the best interests of the traveling public because the 
route segments do not readily fit into TWA's system, and are thus 
difficult for that carrier to serve, while they would fit neatly 
into Delta's north-south system so that Delta readily could provide 
the competitive service which the Board first found to be needed 
back in 1958, when TWA was selected. The Administrative Law Judge 
has recommended disapproval primarily on the basis that effectuation 
of the transfer would be contrary to another recent case wherein 
Southern Airways was given permissive authority between Nashville 
and Atlanta (and a Delta application was denied) , and because the 
transfer might adversely affect Southern Airways and other carriers. 

2. Delta and Piedmont Airlines have entered into an agreement whereby 
Delta would transfer to Piedmont Delta's nonstop authority between 
Asheville, North Carolina on the one hand and Chicago, Illinois, 
Columbus, Ohio and Columbia, South Carolina on the other hand, in 
exchange for transfer by Piedmont to Delta of Piedmont's nonstop 
authority between Charleston, South Carolina on tl;ie one hand and 
Charlotte, Greensboro/High Point/Winston-Salem and Raleigh/Durham, 
North Carolina on the other hand. The agreement provides that, upon 
the effective date of the route exchange, Asheville will be deleted 
from Delta's routes and Charleston will be deleted from Piedmont's 
routes. The agreement has been filed with the CAB together with an 
application seeking its approval, but to date the CAB has not set 
the proposal down for processing. 

In neither of these two cases is it relevant whether "fares [would] be suffi- 
cient to cover purchase costs," because in the one instance the consideration is 
cash, and in the other the consideration is another route. 



1164 



25. Continued 

Delta does believe that route transfers and exchanges should be set down for 
full comparative hearings. Each such transfer or exchange has a profound effect 
upon the nation's air transport system and upon the service rendered for passen- 
gers and shippers, and has competitive implications for other airlines and 
other transportation companies. In addition, such a transfer or excKange can 
adversely affect long-pending applications by other carriers for new authority. 
These various interests, sometimes conflicting, can best be resolved in the 
context of a full comparative hearing. 



1165 



26. If you have excess capacity, cm the extra planes be leased or 
sold elsewhere? At a loss? 



The answer clearly depends on the timing of attempted sale or 
lease. Under current economic conditions, most sales would 
probably be at a loss. 



1166 



27. Identify any routes which are certificated to you but on which service has 

been suspended. Do you have any present intention to resume service? When? 
Why were these services discontinued? Should other airlines be given the 
option of flying these routes? 

(a) Miami-San Francisco . 

Delta is suspended in this market until June 30, 1975, or the end of the fuel 
crisis, whichever first occurs (CAB Order 74-11-152). This suspension commenced 
in December of 1973, with the suspension authority being renewed for additional, 
temporary (six months) periods on the same basis. Delta will reassess the fuel 
situation in the future, and determine at that time when to reinaugurate Miami- 
San Francisco service. Other airlines should not be given the option of flying 
over this route. 

(b) Brunswick, Georgia . 

Delta is suspended at Brunswick, Georgia until March 14, 1977 (CAB Order 74-3-69). 
Brunswick does not currently have an airport which will accommodate aircraft of 
Delta's size. In the meantime, the market is being served by a commuter carrier. 
Air South, which uses reasonably large aircraft of the FH-227 size. Delta will 
reassess its ability to resume service to Brunswick whenever the airport situation 
at that point changes. Another airline should not be given the option of serving 
Brunswick, Georgia. 

(c) Havana, Cuba . 

Delta is suspended at Havana '"tintil further order of the Board" (CAB Order E-17835). 
This suspension became necessary following the last major change of government 
in Cuba, as a result of which commerce between the United States and Cuba vir- 
tually ceased. Because this suspension is largely due to political causes, there 
is no firm termination date. Delta will reassess the situation in the future, 
as relations between this country and Cuba change. Another airline should not 
be given the option of flying over Delta's routes between the United States and 
Cuba. 

(d) New England Points . 

(1) Delta is suspended at the following New England points while they are 
served by the latest air carrier to be given entry into certificated 
service. Air New England, or until further order of the CAB: Augusta- 
Waterville and Lewiston-Auburn, Maine; Hyannis, Martha's Vineyard, 
Nantucket and New Bedford-Fall River, Massachusetts; Keene, New Hamp- 
shire, Lebanon, New Hampshire-White River Junction, Vermont (north- 
south) and Montpelier-Barre, Vermont (Order 74-10-101). Delta's 
authority at these points was most recently suspended (Delta had been 
suspended at most of them pursuant to earlier orders) in the CAB's 
recently-concluded New England Service Investigation , because the points 
could better be served by a carrier of the size of, and using the type 
of aircraft operated by. Air New England, and in order to insure the 
viability of New England's first certificated local service, which is 



1167 



27. Continued 

to be operated by Air New England. Were Delta to continue to serve 
any of the listed points, it would divert traffic from the new service. 
Delta has no present plans to resume service at these points, but the 
nature of its suspension is such that should Air New England cease 
serving them, an obligation would once again devolve upon Delta to 
serve the cities. Another air carrier should not be given the option 
of serving these routes. (The City of Keene and the State of Maine have 
appealed certain portions of the New England Service Investigation to 
the 1st Circuit Court of Appeals, which cases remain pending.) 

(2) Delta is also suspended at Lebanon, New Hampshire-White River Junction, 
Vermont over an east-west route between Maine and Chicago. (Order 
7A-11-58.) This suspension is based upon insufficient traffic and 
inadequate airport facilities for Delta's jet aircraft, and the potential 
diversion of traffic which otherwise could be carried for part of its 
journey by the new carrier. Air New England, Delta's underlying service 
obligation remains, should Air New England ever cease serving Lebanon- 
White River Junction. Another carrier should not be given the option 

of flying these routes. 

(3) Delta is also suspended at Moncton, New Brunswick, until further order 
of the Board (Order E-4298) . This suspension was originally granted 

in 1948 (Order E-4298), because of insufficient traffic between Moncton 
and points on the routes of Delta's predecessor (Northeast Airlines) 
in New England to require the services of both U.S. and Canadian Flag 
carriers. Delta will reinstitute Moncton services whenever traffic 
justifies and the government of Canada permits. Another carrier should 
not be given the option of flying these routes. 



1168 



28. List your fuel costs, in absolute terms, and as a percentage of 
your total costs, for 1972, 1973, 1974 and projected for 1975. 
What has been the increase in cost per gallon during this period? 



Year Ended December 31: 
1972 



Total Total 

Fuel Gallons Fuel Costs 

(OOP) (OOP) 

871,979 $ 96,514 

1,P03,691 $12P,692 

87P.531 $191^16 



Fuel Cost 




as a Percent 


Fuel Cost 


of Total 


Per 


Expenses 


Gallon 


12.417. 


11.P7C 


12.087, 


12.P2C 


16.287, 


22.25? 



_!/ Eleven months ended 11-3P-74 actual; month of 
December 1974 estimated. 



2/ Estimated (Fuel Cost as a percent of total expenses 
not available) 



1169 



29. If you now serve the North Atlantic, provide the details of your costs, 

revenues and profits for any such service for the years from 1970 through 
the present. What course of action will you follow if the government provides 
no relief in the form of subsidy or otherwise to alleviate current losses 
over these routes? If you do not now provide North Atlantic service, would 
you do so if entry were not regulated? 

The first two questions presently are inapplicable to Delta Air Lines. 
The answer to the third question is "no." 



ZO. Compare your aosts in the North Atlantic market with those 
on San Francisoo/New York and New York/Los Angeles routes. 
Explain the difference. 



Not applicable to Delta. 



1170 



If the CAB certificated a number of new trunk carriers over dense traffic 
routes, what effect would such certification have on the industry? On your 
company? 

What would the effect of a "permissive" entry policy be upon th^ behavior 
of carriers in the industry? 



These two questions address essentially the same subject, and therefore will be 
answered together. Delta Air Lines has always advocated the certification of 
competitive airline services wherever traffic volumes, present and forecast, 
appear to be sufficient to support such competition. At the same time, however. 
Delta's experience and its analysis of the nature of the industry have led it 
to the firm belief that except in the very largest of markets, multiple-carrier 
scheduled service would bring few benefits to the traveling public, either in 
terms of service or fares, and would undermine the economics of each of the scheduled 
transportation companies and of the air transport industry in general, with adverse 
effects both on service and fare level. Even in the larger markets where "multiple 
carrier competition" might be justified (e.g., some of the Northeast-Florida 
markets which currently are served by three carriers), the nature of the scheduled 
industry and its operations are such that the number of certificated, scheduled 
carriers should not exceed three. Even with the avoidance of multiple scheduled 
carrier competition, or an excessive number of scheduled carriers in the larger 
markets, competition between the scheduled and supplemental carrier industries 
remains, with additional competition in many markets coming from the all-cargo, 
the local service carrier, and the commuter carriers. 

Accordingly, Delta Air Lines firmly believes that the certification of a number 
of new trunk carriers over dense traffic routes would adversely affect the industry 
and, where Delta Air Lines were involved, would adversely affect that company. 
Similarly, Delta firmly believes that the return to a policy of "permissive" entry 
would undermine the air transport industry in this nation, which has been built 
into the world's finest air transportation system under a policy of controlled 
entry. Return to the "permissive" entry policies pursued prior to 1938 would 
throw the industry back into the jungle of economic chaos which existed at that 
time, but this time with far larger, more brutal contestants. The industry's 
basic behavior would be governed by the twin motivations of conquest and survival, 
not the provision of good public service as at the present. Financially stronger 
carriers could eliminate competition on many routes by lowering rates and fares 
for the time needed to drive the competitor out. With a "permissive" entry policy 
service would tend to be concentrated in the larger markets, while smaller markets 
and smaller cities would be neglected. The end result would be a smaller number 
of air transportation companies serving a smaller number of markets than currently 
exists. 

Competition in the air transport industry is desirable, both within the scheduled 
industry and between it and other forms of air transportation, but that competition 
should continue under a policy of controlled entry as at the present. 



1171 



33. If you serve markets entirely within California or entirely within Texas, 
have your flights within those states been profitable? Have they been 
profitable on a fully allocated cost basis? On a DOC basis (per CAB)? 
On an incremental cost basis? What do you include in incremental costs? 
Have you met the fares charged by PSA and SWA? 

Delta Air Lines serves only a single market within the State of California, Los 
Angeles-San Diego. The market is served as a portion of a longer -haul flight 
operating between either Los Angeles or San Diego and points at least as far 
east as Dallas/Ft. Worth. Delta cannot realistically determine whether the small 
Los Angeles-San Diego portions of such flights are profitable or unprofitable, 
on either a fully allocated or an incremental cost basis. 

Attached hereto is a set of the exhibits submitted by Delta Air Lines in the CAB's- 
currently-pending investigation into the relationship between interstate and intra- 
state fares in California (and Texas, wherein Delta Air Lines does not serve two 
cities on the same flight). Those exhibits may be of benefit to the Committee. 

Delta has lower intrastate fares than those charged by PSA in the Los Angeles- 
San Diego market. Delta has not met PSA's fare increases for approximately ten 
years. The reason for this is that Delta serves only one California intrastate 
market and the evidentiary and financial exhibits required for California intrastate 
fare changes are unduly burdensome and cost prohibitive to propose token fare 
changes in our California intrastate fares where only such a limited operation 
is maintained. 

[The referred to exhibits are omitted. They may be found on 
file with the CAB, docket 24779. ] 



1172 



34. How do you decide how much capacity to offer in a market? What frequency 
of service to offer? Which markets to promote heavily? Who makes these 
decisions? 



A decision concerning capacity and frequency in a market begins with a study 
of historic traffic volumes, and the potential for future traffic growth, both 
passenger and property (including mail) . Delta carefully tailors its frequency 
of service and the size of the aircraft used (those two elements determining 
capacity) to market demand at the particular time of day and time of the year 
that the service in question is to be operated. Delta endeavors to keep its 
system load factor at or, preferably, above the current CAB load factor standard 
(for rate-making purposes) of 55%. Because Delta is the world's largest operator 
of low-price, off-peak fare services (particularly night coach services), this 
requires a tailoring of frequency and aircraft size so as to produce a somewhat "' 
higher load factor during daylight hours. Delta's night coach services are 
operated for the benefit of budget minded passengers, and for the benefit of 
the United States Postal Service and commercial shippers. 

Delta fully promotes all of the markets which it is privileged to serve, although 
the volume of advertising in any particular market must obviously be related 
to the traffic potential therein. 

Decisions concerning all of these matters are made by Delta's senior management. 



1173 



35. How many different classifications on in-flight service 

do you provide? (How many different sorts of, e.g.., first 
cl-ass service? How many different sorts of economy ser- 
vice, etc.?) 



Response: First Class 

We provide four levels of dining service in 
first class cabins during meal hours: 

1- Royal Service Full China Course Service - 
our finest service on long haul prestige 
flight segments. 

2. Royal Service China Tray Service - our 
finest service on medium length prestige 
flight segments. 

3. Royal Service Tray Service - our finest 
service on shorter prestige flight segments. 

4. Regular Tray Service on short to medium 
length flight segments. 

Note: In-between meal snacks are provided on 
selected flight segments. 

Tourist Class 

We provide the following levels of dining 
service in tourist cabins during meal hours: 

1. Hot meals on long and medium flight segments. 

2. Cold meals on short flight segments. 

3. Cold Snack Service on flight segments too 
short for meal service. 

4. In-between meal snacks on selected flights. 



1174 



36. How do you decide on which routes and which flights to 
offer a particular classification of in-flight service? 
Who makes these decisions? 



Response: 1. The class of service on each flight is 
usually determined by the length of the 
flight segment, the type of aircraft, and 
the time of the day. 

2. The Assistant Vice President - Dining Service 
makes such decisions after first coordin- 
ating with our Marketing and Passenger 
Service Divisions. 



37. Could you operate as efficiently as you do now if your airline 
were twice its present size? Half its present size? 

a. With respect~to fleet size? 

b. With respect to RPM's 

c. With respect to passengers enplaned? 



Delta has performed no studies in this area. Our judgement 
would be that size is not necessarily a determinant of operating 
efficiency within a rather broad range. Delta's record for the 
ten year period 1964 through 1974 may offer some insight to a 
possible answer. For that period. Delta has more than quadrupled 
in size by most any measure. Our average yield per RPM increased 
only 16.7% from 6.12 cents to 7.14 cents while our costs per RPM 
(net of other revenues) increased 23.7% from 5.06 cents to 6.26 cents. 
In other terms, our operating margin per RPM decreased 17% over 
the ten year period but our average return on equity actually 
increased slightly from 22.2% to 22.6%. 



1175 



In what ways and to what extent do a) CAB reporting require- 
ments, b) CAB ticketing requirements, c) other CAB require- 
ments impose costs on your operations? (e.g. , preventing 
simplified passenger handling or accounting procedures?) 



(a) As a general rule, we would expect CAB reporting requirements 
to be less detailed than those needed by management to control 
overall operations, costs, and service levels. In the area of basic 
financial data, this is the case with some minor exceptions. 
However, we have noted a disturbing trend towards requiring 
much more detailed statistics on traffic and schedules — data 
which we have never found justified for our own management needs. 
Specifically, we question the need for on-f light segment data 
(passengers and cargo by on-flight origin and destination) 
required under ER-586 as compared to the origin and destination 
surveys for both passengers and freight which contain essentially 
the same information except for flight number. Although not yet 
presented to the CAB, there is one proposed reporting requirement 
under development by the Board staff which is quite detailed and 
of very questionable value. This proposal would require the 
carriers to compute and report monthly the average passenger yield 
for each flight segment, based on a minimum 10% sample designed 
to produce 95% accuracy. Apart from the sheer volume of data 
and the excessive cost to the industry, we have serious doubts 
as to the real purpose or demonstrated need for such data. 
(The logical progression from this point would be a requirement 
to allocate costs to each flight segment.) 

In addition, the CAB is currently considering a Notice of Proposed 
Rulemaking (EDR-280) which would revise the reporting required 
by present Schedule P-10, including redesignation of the schedule 
from "Payroll" to "Work Force Data." The industry agrees that 
Schedule P-10 is meaningless and should be eliminated or revised. 
However , the proposed revision would require reporting of manhours 
broken into three categories for seventeen individual classifications 
of employees from executives to part-time agents. In Delta's 
case, only about 10% of our employees are paid on an hourly basis 
with total manhours readily available. The remaining 90% are 
either salaried or flight personnel and no information is presently 
available on total manhours worked. To comply with this proposed 
revision would require significant added costs to Delta and the 
industry without any visible added benefits. Again, this is 
detailed information not required by management but wanted by 
the CAB for some vague and undemonstrated need. 

There are many other special reports which have been required for 
many years but which do not seem productive any m.ore (e.g., continuing 
no-show reports from which trends should long ago have been discerriable 
without further reporting). 



1176 



Delta cannot readily estimate the total cost of CAB reporting 
requirements, but they are high and increasing, 

(b) CAB imposes no ticketing requirements (as opposed to ticketing 
reports) and there is thus no cost in this area. 

(c) In this area, one specific item is CAB Denied Boarding Compen- 
sation (Economic Regulation Part 250) - excluding the actual com- 
pensation paid - which takes approximately 1,052 man hours per month, 
at an estimated annual cost of $107,415.00 (equivalent of 6.6 people) 
This is only one of many examples. 



1177 



39. Wliich CAB practices or procedures do you believe to be the most burdensome 
or least efficient? What recommendations for changes would you make? 

The answer to Question 38 is also applicable to Question 39. 

In addition, see the response to Question No. 22, where it is indicated that Delta 
would support proper procedures to shorten the length of public hearings them- 
selves (if other procedures are left intact to assure due process for all interested 
persons) and would support greater use of rule-making procedures in appropriate 
cases. 

Delta shares the view expressed by others from time to time that there is undue 
delay in some administrative cases. This is a problem shared by most agencies, 
and not just the CAB. While tighter constraints on the scope of public hearings 
might be possible, caution must be exercised in order not to truncate adminis- 
trative procedures so as to deny due process or compromise sound results. 

Delta believes that most other procedural steps currently employed by the CAB 
are proper and necessary. Much of the delay in CAB proceedings occurs between the 
formal procedural steps, while a matter is under study by an Administrative Law 
Judge or, following final arguments, by the agency itself. Some of these delays 
undoubtedly are unavoidable. 

In one specific area CAB delay is often disrupting to both the airlines and the 
public. We here refer to last-minute rulings by CAB on complaints requesting 
suspension of tariff filings. For example, complaints may be filed with respect 
to a tariff filed on 45 days' advance notice to become effective on a particular 
Sunday. If the Board's ruling is delayed until the Friday before the Sunday effec- 
tive date, it is extremely difficult for the carrier involved to notify personnel 
around its domestic and international system in time to prevent application of 
a fare (or a rate) which has been suspended. Delta recognizes that the time periods 
provided in the Federal Aviation Act, and even the somewhat more expanded time 
frames agreed upon by carriers for advance filing of tariffs, leave the CAB a 
relatively limited time within which to respond to complaints, at least if time 
is to be allowed for answers to complaints by the tariff publishing carrier. 
Nevertheless, last-minute rulings do create many problems for the carriers and 
for the public, and it would be hoped that some more workmanlike procedures could 
be employed here. Senate Bill S-1873 and House Bill HR-10881, currently pending 
before both houses of Congress, would require a CAB ruling within 30 days of 
filing if a tariff is filed on 45 days' advance notice. Passage of this amendment 
to the Federal Aviation Act would largely alleviate this problem. 



1178 



40. How much money have you spent each year for the last five years on salaries, 
fees (including attorneys fees) and other costs related to CAB proceedings? 
How much money have you spent that is in any way attributable to Congressional 
lobbying? 

Following is a statement of monies spent by Delta Air Lines in connection with 
CAB proceedings (route, rate/fare, and other types of proceedings) during the 
past five years, including sums spent for the assistance of outside counsel (most 
of Delta's Civil Aeronautics Board work is handled on an "in-house" basis by 
Delta's own Law Department). 









CAB 








Proceedings 








Cost 


Year Ended 


June 


_30 


(000) 


1970 






$434 


1971 






$475 


1972 






$530 


1973 






$761 


1974 






$778 



Delta Air Lines does not retain or employ any outside personnel for lobbying in 
connection with federal regulatory or other Congressional legislation. Delta 
does maintain an office in Washington, headed up by a Vice President-Federal 
Affairs, which essentially serves as the Company's liaison office with the various 
federal governmental offices in Washington (including the Company's Congressional 
relationships), and with the industry's trade organizations. 



1179 



41. What was the total number of passengers enplaned? 1972-Oatoher 1. 
1974. 



DELTA AIR LINES, INC. 
SYSTEM ENPLANED PASSENGER DATaI / 

1972 - October 1974 



Enplaned 
Passengers 



1972 

1st Quarter 
2nd Quarter 
3rd Quarter 
4th Quarter 



4,486,245 
4,778,023 
5,516,281 
5,699,244 



Total 



20,479,793 



1973 

1st Quarter 
2nd Quarter 
3rd Quarter 
4th Quarter 



5,821,147 
6,391,838 
6,227,639 
6.163,267 



Total 



24,603,891 



1974 

1st Quarter 
2nd Quarter 
3rd Quarter 
October 



6,405,751 
6,768,551 
6,924,570 
2,152,024 



10 Months 1974 



22,250,896 



1/ Does not include Northeast prior to merger in August, 1972, 



Source: Company Records, 



1180 



42. What was the total number of flights scheduled to operate': 
October 1, 1974? 



DELTA AIR LINES, INC. 
SYSTEM FLIGHTS SCHEDULED 



1972 - October 1974 



1/ 



1972 

1st Quarter 
2nd Quarter 
3rd Quarter 
4th Quarter 

Total 



Flights 
Scheduled 



111,075 
110,704 
126,010 
132,935 

480,724 



1973 

1st Quarter 
2nd Quarter 
3rd Quarter 
4th Quarter 

Total 



134,877 
138,066 
139,893 
134,774 

547.610 



1974 

1st Quarter 
2nd Quarter 
3rd Quarter 
October 



10 Months 1974 



117,647 

119,530 

122,509 

41,584 

401,460 



J^/ Does not include Northeast prior to merger in August, 1972 
Source: Company Records 



1181 



43. What was the total number of flights actually operated? 1972- 
Oatober 1, 1974? 



DELTA AIR LINES, INC. 
SYSTEM FLIGHTS OPERATED 1 / 

1972 - October 1974 



1972 

1st Quarter 

2nd Quarter 

3rd Quarter 

4th Quarter 

Total 



Flights 
Actually 
Operated 2/ 



110,601 
110,672 
125,318 
130.829 



477,420 



1973 

1st- Quarter 
2nd Quarter 
3rd Quarter 
4th Quarter 

Total 



132, 


,740 


137, 


,151 


138, 


,274 


130, 


,608 


538, 


,773 



1974 

1st Quarter 
2nd Quarter 
3rd Quarter 
October 



116,413 

119,347 

122,058 

41.438 



10 Months 1974 



399,256 



V Does not include Northeast prior to merger in August, 1972. 
_2/ Includes scheduled flights and extra sections performed. 



Source: Company Records. 

[The subcommittee has agreed to Delta's request for confidentiality 
for its answers to questions 44, 45, and 4b. ] 



1182 



47. What was the budget for customer relations /aonsumer affairs 

activities (excluding the amount paid for claims)? 1972-Oatober 1, 
1974? 

Delta does not budget. 

[The subcommittee has agreed to Delta's request for confidentiality 
for its answer to question 48. ] 



49. What percentage of the complaints received requested some form of monetary 
reimbursement? 1972-October 1, 1974? 



Not available. Service and baggage complaints are filed individually as received. 
While dollar totals are recorded after settlement. Delta does not record or cate- 
gorize complaints by type of request, type of settlement, or other similar detail. 
Efforts to prevent recurrence of complaints are hinged upon different types of 
recording (by type of Delta function, for example) and by followup action on 
individual complaints as explained elsewhere in these answers. 



50. What percentage of complaints were settled with some form of monetary 
reimbursement? 1972-October 1, 1974? 



lilable. See Explanation at Response 49. 



1183 



51. Under what circumstances will the carrier waive the tariffs in order to 
settle complaints from mishandled passengers? 

Delta has no legal right to "waive" its tariffs and it does not do so, whether 
for purposes of settling complaints or otherwise. Delta does, however, take the 
following factors into account in determining whether a mishandled passenger is 
entitled to an adjustment: The passenger's ability to receive satisfactory 
alternatives; the degree to which the passenger contributed to the incident/mis- 
handling; the degree to which Delta personnel made an effort to correct the irre- 
gularity; the cause of the incident (carrier error or beyond carrier control), 
and other similar matters. Exceptional situations are always treated on an ^ 
individual basis in order to give the customer the best possible treatment, within 
the confines of the law, including laws on discrimination and the provisions 
of duly filed tariffs. 



52. When a complaint is received, what measures are taken to prevent recurrences? 

A copy of every passenger complaint is forwarded to the appropriate Delta depart- 
ment head and local (field) manager for careful review and corrective action where 
required. In addition. Delta's Customer Relations Department monitors all complaints 
for possible trend developments, and these are brought to the attention of Senior 
Management including the Chairman of the Board and President. The Customer Relations 
Department will also make recommendations in such areas as procedural changes 
that will enable faster, more equitable adjustments by local managers or otherwise 
provide improved customer convenience. For example, on two occasions in recent 
years, the Headquarters (Atlanta) Customer Relations Department was instrumental 
in raising the local (field) limits of authority to take into consideration the 
inflationary pressures of the economy in order to improve "on-the-spot" handling 
of damaged bag claims. 

Department heads/managers throughout the Delta system have the responsibility 
for investigating every complaint in depth to determine the cause and take remedial 
action. Where necessary, he will see that the Customer Relations Department receives 
the information required to conclude the matter with the customer. If a problem 
involves other offices or matters of policy, he refers the results of his local 
investigation to the appropriate General Office (Atlanta) department or officer 
of the Company. In some cases, corrective action will include the filing of 
tariff revisions with the Civil Aeronautics Board. 



1184 



53. List the two or three airline practices that are most frequently the subject 
of passenger complaints. Please sublfllc your manuals or sets of instructions 
related to dealing with passenger complaints. 

(A) Two Sources Engendering Most Frequent Complaints : 

1. Lost Bags 

2. Flight Irregularities 

(B) Manuals : 

Attached are copies of Delta's Standard Practices dealing with passenger (including 
baggage) complaint handling (SP Nos. 2047 and 2060). As the tariff covers most 
aspects of flight irregularity handling, a copy of the appropriate rules from the 
Local and Joint Passenger Rules Tariff No. PR-6 is also enclosed. 

[The rules from the Local and Joint Passenger Rules Tariff No. PR-6 
are omitted; they are on file with the CAB.] 



1185 



DELTA AIR LINES, INC. 

APR 1 6 J973 



^ 



STANDARD PRACTICE 



PASSENGER CLAIMS FOR LOST AND DAMAGED BAGGAGE/LOST ARTICLES 



CONTENTS 

Pat 



20A7.1 Purpose 



and General Policies 1 



20A7.2 Lost Baggage 
2047.3 Damaged Baggage 



2047. A Damage to Baggage Contents 24 

2047.5 Items Missing from Baggage 25 

2047.6 Pilferage 



2047.7 Clothing Damaged in Flight 

2047.8 Lost Articles 

2047.9 Out-of-Pocket Expenses 



2047.10 Claims from Reduced-Rate Passengers 30 

2047.11 Claims from Nonrevenue Passengers 31 

2047.12 Reservations Action on Passenger Claim Calls ... 31 



2047.1 PURPOSE AND GENERAL POLICIES 

The purpose of this standard practice is to outline procedures for 
handling passenger claims for lost baggage, damaged baggage, and 
lost articles. 

Coordination and cooperation between our field and marketing personnel 
is of paramount importance in seeing that all claims are processed 
rapidly and fairly. When such teamwork is lacking, the result is an 
unnecessary exchange of forms and correspondence, multiple customer 
contact, adc^Ltional pick-up and delivery charges, customer inconvenience, 
and increased cost to Delta Air Lines. A close working relationship 
results in customer satisfaction, which should be the objective of 
every Delta Air Lines employee. 



1186 

DELTA AJR LINES, INC. 

STANDARD PRACTICE 



Local managers should objectively review their present procedures to 
determine that everything possible is being done to terminate claims 
expeditiously and at a minimum cost to our company. However, if 
Customer Relations can be of assistance in a local problem, they 
should be contacted at any time. 

Remember, everything possible should be done to terminate the claim 
with one customer contact. 

Under our tariffs. Delta assumes certain responsibilities for the loss, 
damage, or delay of our customers' personal property. When irregularities 
occur, it is company policy to process them in accordance with two basic 
guidelines : 

PROVIDE SYMPATHETIC, COUKTEOUS, AND PROMPT HANDLING 

Baggage mishandling causes customer inconvenience, and every- 
thing possible must be done to regain lost goodwill. 

Settle claims at the local level when possible. The majority 

of claims for damaged property can, and should, be settled shortly 

after being brought to our attention. 

Terminate the claim with one customer contact if at all possible. 
Nothing adds to the cost or inconvenience of an otherwise minor 
claim as much as the unnecessary delay and exchange of corres- 
pondence or forms. 

PROTECT DELTA FROM FRAUDALENT OR UNREASONABLE CLAIMS 

Ensure that proper check-in procedures are followed for the 
acceptance of unsuitable baggage. 

Correctly complete applicable forms in the reporting of lost 
or damaged bags. 

Verify that travel was on Delta, and write the ticket number 
on Che applicable forms. 

In cases involving the temporary loss of baggage, avoid unnecessary 
commitment of liability in your initial contact with the customer. 
Subsequent investigation may indicate that another airline or sur- 
face carrier should accept responsibility for expenses incurred. 



1187 



DELTA AIR LINES. INC 

STANDARD PRACTICE 



20A7.2 LOST BAGGAGE 

Any employee (CSA, CSS, skycap, etc.) to whom the passenger reports 
the loss of baggage should direct or escort the paesenger to the proper 
supervisor or baggage service agent, who takes the appropriate action. 

A. Passenger Contact Station - Initiate the following procedures when 
a passenger reports lost baggage: 

1. Initial Action - Make a complete search of the local area, 
including aircraft, terminal, and cargo areas. 

Check local files for incoming messages stating new arrival 
times for the baggage. Check the bag room or baggage holding 
area to determine if the baggage arrived on a flight earlier 
than the passenger's flight. 

2. Second Action - If the initial search is unsuccessful, observe 
the following: 

a. Obtain from the passenger the information necessary to 
complete entries 4 through 18 of the Tracer Message for 
Mishandled Baggage, Form 0412-80259. Assure that the 
baggage claim check and flight coupon numbers have been 
entered correctly on the Tracer Message. 

NOTE: iJse the Lost/Found Report Tag (see section 2047.8) 

to trace small articles such as fountain pens, lighters, 
toys, etc., unless the Baggage Service supervisor deems 
it necessary to trace such items by teletype. 

Establish a definite time for contacting the passenger con- 
cerning later information regarding his baggage. If a promise 
is made to call the passenger, make the call even if the 
baggage has not been located. Record all contacts with the 
passenger on the Tracer Message and keep it on file. 

Complete a Passenger Notification of Baggage Tracing, Form 
0412-80321, and give it to the passenger. 

NOTE: Inform the passenger to keep his baggage claim checks 
and flight coupon (if not retained with the Tracer 
Message) for inclusion in a property loss claim if 
his baggage is not located. 

The following illustration explains all entries on the Tracer 
Message for Mishandled Baggage. 



1188 



DELTA AIR L;NES. IMC. 



STANDARD PRACTICE 



TRACER MESSAGE FOR MISHANDLED BAGGAGE 



I ATL uDt C^J 



m 



WILLIAM S. BLACKM\N 



II©: 



iicnn NUMBER 006:2400:502:412 




y\ l623 Santell Ave. N.E. 



Rm 101 Rhodes Haverty Bldg. 



^_Saii 



as permanent 



m 



eACGAGC CHECKEO 



MTA ATL I PL 



> coof.'c« Nos DL/ 



3A56ijjX 



I AI»IINE~ 



fUGMI/OAIS 






D A. Curb..d. 



(iQ NTtws K oda k Instam atlc/A larm c lock/Braun razor 



m 



B«ANO Samsonlte 



( 1 5p)MA«s__il3me_Lallfi l_na rked - W. S ^B lacktna n and hotel st i 

V ' ^ TRANSMIT ABOVE INFORAAATION - UNSHADED BLOCKS ONLY 



Ramada Inn 



T«ANtf H INtOtMATION ( 1 Q ) 

HEASON BAG NOl CHEOJO WITH PSC« 



®: 



DAit 7-15-73 



D VIA fHONt 





V 


slV 


M 9) «£CO«0 OF PASSENGE. CONTACT 




DAIt 




AGENT 


l!EM»«<- BE SPECIFIC - USE BACK OR FOSAA IF NECESSABY 


1 


7/15 


2358 


Cole 


Psgr failed to receive bag. Advised psgr messace from MIA - bag to 








arrive on DL114 at 0530 7/16/73. Psgr requested we hold bag for PUP. 










7/lfi 


0900 


T.r. 


P.:£r r;<11ed requcs clnz we deliver bag to residence. We advised that 


































If PASSl 











FOSwAJio A cOMPitiEo COPY Of THIS TRACER MESSAGE TO THE SYSTEM SUPERVISOR - BAGGAGE SERVICE 

Psgr acknowledged receipt of bag from Delivery Service at 1045 7/16/73 



OAIE/IUHE I 



1L\WJ. 



coitmn THIS poBiiON on seceipi of bag and 

Fl.ght Bao Afflv.d On 114 



! OElIVtBT 10 PASSENGEB 



® 



Forw*/d copy to Oty « 



(22) ° 



1189 



WG 2 1973 



DELTA AIR LINES, INC. 

STANDARD PRACTICE 



REF. EXPLANATION 

1. TO - Address NEED messages according to 

the following criteria (see Phase I procedures in 
the following section for. further explanation of 
addressing NEED messages) : ' ' ' 

a. If passenger arrived on a direct on-line flight, 
address the message to: 

(1) Passenger's station of origin 

(2) All stops between originating and terminating 
points of the passenger's flight 

b. If the passenger arrived on a flight to which he 

had made on-line and/or Interline connections, address 
the message to: 

(1) Baggage Service offices of Delta and of the 
other carrier at the first up-line interline 
connecting point 

(2) All stops between originating and terminating 

_ points of the Delta flight on which the passen- 

ger arrived 

c. If the lost baggage consists of boxes or other items 
which may appear to be airfreight, include the air- 
freight office (FF) at all prior and subsequent 
stations of the flight as an addressee on the 
tracer message. 

NOTE: Local offices must recv^ive approval from 

their respective station managers prior to 
sending an all stations (ALSTNDL) tracer 
message. . 

2. FROM - Enter signature teletype code and date/ time 
group. 

3. MESSAGE NO., FILE NO. - , Not applicable - leave blank. 

4. MSG IDENT - Indicate type of message; i.e., NEED, 
BAGGAGE ON HAND. 

5. PSGR NAME - Enter passenger's name and initials. 

-6. TICKET NUMBER - Enter passenger's complete flight 
couDon number. 



1190 



DELTA AIR IINES, INC. 

STANDARD PRACTICE 

REF. EXPLANATION (Continued) 

7. PERMANENT ADDRESS, BUSINESS ADDRESS, LOCAL ADDRESS - 
Enter complete permanent, business, and local (as appli- . 
cable) addresses and telephone numbers of the passengers. 

8. PASSENGER TRAVELED - Enter two-letter carrier code/ 
flight number/date and "from/to" for each sector of the 
passenger's itinerary. 

9. BAGGAGE CHECKED - Enter routing of baggage in same 
format as in (7) above if different from passenger's 
itinerary. If same or unknown, enter SAME. 

10. BAGGAGE CHECKED - Check the appropriate block to indicate 
where the bag was checked. 

11. CARRIER CODE/CK NOS - Enter two-letter carrier code and 
last four digits of baggage tag serial number. If 
unknown, enter "NIL". 

12. GROUP /TYPE /COLOR - Enter group, type, and color code 
as defined on the ATC/IAIA Baggage Identification Chart, 
Form 0412-80221, and Nonstock Form 72. 

13. BRAND - Enter manufacturer's brand name, if known. 
Otherwise, enter "NIL". 

1^. CONTENTS - Enter the distinctive items which are con- 
tained in the bag. 

15. REMARKS - Enter any additional information which is 
pertinent to the mishandling and/or which would assist 
in tracing; e.g., name labels, initials, hotel stickers. 

16. TRANSFER INFORMATION - Enter applicable baggage transfer 
information. 

17. REASON BAG NOT CHECKED WITH PSGR - If the baggage was 
not checked on the same flight (s) as the passenger, give 
a brief reason for the separation. 

18. LOSS REPORTED - Enter the date and time that the passen- 
ger first reported the lost baggage. Check the appropriate 
box indicating whether the first contact was made in 
person or over the telephone. 



^UG 2 1973 



1191 

DELTA AIR LINES, INC. 

STANDARD PRACTICE 

REF. EXPLANATION (Continued) 

19. RECORD OF PASSENGER CONTACT - Obtain from the 
passenger the ticket number and enter this infor- 
mation in the REMARKS SECTION under RECORD OF 
PASSENGER CONTACT with the date, time of transaction, 

and the agent's name. An additional notation will be made 
in this section if the passenger's coupon of the ticket 
and claim check(s) were retained or verified and 
returned to the passenger. 

Give a specific account of all subsequent conversations 
with the passenger; note the date and time of the 
contact. 

NOTE: Include any actions or comments which may 

indicate that the claim is fraudulent (different 
description of missing baggage, not reporting 
the loss until several hours after flight arrival, 
etc.) 

20. DISPOSITION - Describe the final results of the 
tracing action, and enter the time and date that the 
file is closed. 

21. Local Baggage Service completes these entries to provide 
information to the station where the mishandling occurred. 

22. FORWARDING MESSAGE RECEIVED - Check the "Yes" block 
if the message was received before the flight arrived. 
Check the "No" block if the message was not received. 
Check the "Message Received After Flight Arrived" block 
if the message was received after the flight arrived. 

NOTE: When one carrier is both the receiving and delivering 
carrier in an itinerary, the on-line search is 
performed by the last receiving station. 



b. Phase I Tracing Procedures - After 24 hours from time of 
report of lost baggage or after arrival of the next on-line 
flight from the point of last transfer, whichever occurs 
first, send a NEED message using the Tracer Message for 
Mishandled Baggage, Form 0412-80259. 



1192 



DELTA AIR IINES, INC. 



STANDARD PRACTICE 



(1) If the passenger arrived on a direct on-line flight, . 
address the message to: 

(a) Passenger's station of origin 

(b) All ■ttops between originating and terminating points 
of the passenger's flight 

(2) If the passenger arrived on a flight to which he had 
made on-line and/or interline connections, address the 
message according to the following: 

(a) Baggage Service offices of Delta and of the other 

carrier at the first up-line interline connecting point 



(b) 



All stops between originating and terminating points 
of the Delta flight on which the passenger arrived 

(c) If the recipients of this NEED message fail to locate 
the baggage, send another NEED message to the next 
up-line transfer point (on-line or interline) and to 
the passenger's point of origin. If necessary, repeat 
for each up-line transfer point. 

NOTE: If the passenger's itinerary includes transfer 
from an lATA member's flight to the flight of 
an ATC member, the NEED message is sent only 
to the ATC member(s) ' station(s) and to the 
delivering lATA member at the North American 
gateway. This lATA member is then responsible 
for further tracing through to the passenger's 
point of origin. 

Phase II Tracing Procedures - If all Phase I tracers are 
unsuccessful, the delivering carriers at the transfer points 
initiate their own on-line search pattern in accordance with 
individual company procedures. The searching stations advise 
the NEED station of their search action and inform the NEED 
station of the results of the search within 24 hours after 
receipt of the NEED message. 

A Delta station expands on-line tracing action by forwarding 
to System Baggage Service (ATLLZDL) the information contained 
on the original NEED message. Sys tem' Baggage Service compares 
this message to its file of BAGGAGE ON HAND messages. 



1193 



ijllj 1 8 1372 



DELTA AIR tINES. INC. 

STANDARD PRACTICE 



NOTE: When one carrier is both the receiving and delivering 
carrier in an itinerary, the on-line search is per- 
formed by the last receiving station. 



Action by Basgage Service Offices Receiving a NEED Message - Upon 
receipt of a NEED message, the carriers' baggage service offices at 
the transfer point jointly perform the following: 

1. Ensure a complete local search including, but not limited to; 

Cpstoms premises 

Available on-hand baggage records of other carriers 
serving that station 

All airport and city terminal facilities and cargo areas 

2. If the search is successful, forward the baggage to the Baggage 
Service office initiating the NEED message, using the Expedite 
Baggage Tag. Also, immediat°iy send a 'message to that station 
concerning: 

The passenger's name 

The flight number and date of forwarding 

The Expedite Baggage Tag number 

EXAMPLE: ORDLLCO 

.ATLLLDL 172135 

ORDLLCO NEED MSG PSGR JONES F E 
DL 132/18 MEM DL 705/18 ORD EXPTAG DL 3458 

NOTE: When two addresses are on the original NEED message, send 
any reply as a joint communication. 

3. If all initial searches are unsuccessful, send an advice message 
to the NEED station indicating ejcpansion of the on-line search. 
Send the advice message within one hour after the 'receipt of the 
NEED message. A status report message on this on-line search 
must be sent no later than 24 hours after receipt of NEED message. 

EXAMPLE : ATLLLDL 

.ORDLLCO 291530 

RE NEED BAG PSGR GRASS 

NEG SRCH WILL EXPAND TO ONLINE AND ADV 

A Delta station expands on-line tracing action by forwarding 
information in the original NEED message to System Baggage 
Service (ATLLZDL) . 



1194 



DELTA AIR LINES, INC. 



STANDARD PRACTICE 



C. Action by Tracing Station After Baggage Received 

1. Close-File Message - When the station which initiated the 
original NEED message receives the bag, a close- file message 
is sent to those carriers/stations addressed in any previous 
NEED messages. 

EXAMPLE: ATLLLSO ATLLLDL ORDLLDL ORDLLCO 
.MSYLLSO 
CLOFI PSGR GRASS 

A Delta station originating tracing action must maintain an 
inactive file for 60 days after the file has been closed. 
Boarding and connecting Delta stations maintain a file for 72 
hours. Other Delta stations do not maintain a file. 

2. Contacting Passenger - If the baggage arrives at station 
between 0800 and 2300 hours, contact the passenger as soon as 
possible after the baggage has arrived. Do not delay this contact 
more than 45 minutes. If the baggage arrives late at night or 
early in the morning (2300 to 0800 hours) , contact the passenger 
between 0800-0845 hours, unless otherwise instructed. 

3. Baggage Delivery Order, Form 0412-70507 - Complete and attach 
a Baggage Delivery Order to the baggage before surrendering it 
to the delivery agent. Retain copy 2 in local station file. 

The delivery agent returns the original to Delta as confirmation 
of delivery and retains copy 3. 

NOTE: Give complete disposition instructions to the delivery 
agent in the event delivery cannot be accomplished. 

When baggage is delayed in reaching the passenger's final desti- 
nation, the final carrier delivers the baggage to the passenger 
at the final carrier's expense. 

NOTE: If the passenger agrees to a voluntary separation of 

baggage (VS marked on claim check), delivery is at the 
passenger's expense (COD). 

The following illustrates and explains all entries on the Baggage 
Delivery Order, Form 0412-70507. 



1195 



p 1872 



DELTA AIR L'^^ES. INC. 



STANDARD PRACTICE 



DELTA AJR LINES. IWC. 



Baprrntre Delivery Order I u. p 



TO^'feMl rj-^LTA A!?? LSNES, INC 

DELTA a; 

NameOe*; H'^^ 



Delivery Ordar | u. Q 



Address J?! 
CityAtW;. 

Traveled Fli^ 



Qs 



City^AXt 






(ilany) 



Exceptions 
(if 3ny)_ 
Oate/irt- 



DELTA AIR LIKES, INC. ^-. Baggage Delivery Order 

TO Ygl-<-Ot\/ ^i^ Ca. A^cjI^Js IS YOUR AUTHORIZATION TO CHA 
DELTA AIR LINES, INC. fOR DaiVtsT^fTHi^LLOWING ITEM|S) TO: 

m,P^ Sno A/ourM sit >s CiRci- C Aft (aCa'!? — 



I 9 



TravEled FlishKs) 



!iy3_®_ 



dA 



3q>7I^ 



_State_ 

n.itg /2-^- 7o From PRO To ATL. 



DESCRIPTION Of ARTICLES 






-61^5' 



s 



V. TJ" 



^r^y^ia-^". 



SIVE P IN G OOD ORDER 



[xceptions C-]\ 

(iU^ \V 7^--^; 



^2^g 



o 



REF. EXPLANATION 

1. TO - Enter name of delivery company. 

2. (PASSENGER INFORMATION) - Enter name, address, and 
telephone number of passenger. 

3. TRAVELED FLIGHT(S) - Enter number (s ) , date, origination, 
and destination of flight(s) traveled. 

4. CHARGES - Enter deliver>' charges [including flat rate, VS 
(voluntary separation) and/or COD], baggage check numbers, 
number and description of articles. 



5. DELIVERY AGENT SIGN 
receipt of baggage. 



The delivery agent si 



1196 



DELTA AIR LINES. INC 



STANDARD PRACTICE 



REF. EXPLANATION (Continued) 

6. CONSIGNEE SIGNATURE - The passenger signs to acknowledge 
receipt of baggage. 

7. EXCEPTIONS - The customer notes any exception to acceptance. 

8. DATE - Enter date of delivery. 

9. LOCATION - Enter local station code. 

10. AUTHORIZING AGENT - The issuing Delta agent signs. 

Means of Delivery - Depending upon the owner's statement as to 
the need for the baggage, use the following means of delivery: 

Taxi cab 

Special messenger 

Parcel delivery service 

Commercial carriers, such as bus, truck, train, or airline 

NOTE: Only in cases of emergency, unusual hardship to the passenger, 
or uncommon delay due to inadequate local delivery service 
may an employee be permitted to deliver baggage after his 
regular work time. In these instances the employee is com- 
pensated by overtime and applicable mileage pay. 

Baggage Valuation - When baggage is forwarded by bus express, 
declare the maximum valuation of $200; when shipped by any other means, 
declare a valuation of $500. 

Delivery Information - Local Baggage Service completes entry 20 
of the Tracer Message (2047. 2A) with the necessary delivery infor- 
mation. Detach the bag tag when bag is sent out for delivery, 
and forward a copy of the Tracer Message (with entries 20 and 21 
completed), with the bag tag attached, to the city where the mis- 
handling occurred. If more than one city is involved in the 
mishandling, send a copy to each. If the city in error cannot be 
determined, retain the copy for later inclusion in station's monthly 
report of mishandlings (see section 2047. 2E). 



APR 2 9 \m 



1197 

DELTA Aid LINES. INC. 

STANDARD PRACTICE 



Actual Delivery - Effect the actual delivery to the passenger 
within three hours of the arrival of the baggage, except between 
2300 and 0800 hours. If the baggage arrives between 2300 and 
0800 hours, arrange delivery after 0800 unless otherwise instructed 
If acceptable to the owner, establish a later delivery if a more 
economical means of delivery can be used. 

If the baggage is forwarded with instructions to hold at the 
carrier's office, advise the owner concerning arrival time at 
that office. 

Before releasing baggage to the passenger, request proof of iden- 
tification, such as a driver's license or personal documents 
(letters, envelopes, etc.) verifying both name and address. 

Reporting Delivery Costs - On the first day of each month the 
Station Manager reports by memo to the Stations Departinent, 
Dept. 100. AIL che actual amount of money paid during the pre- 
vious month for baggage delivery and the number of Baggage 
Delivery Orders accountable to that amount. 

For the purposes of this report, include only those charges paid 
to the delivery agents between the first day of the month and 
the last day of the month. Disregard the date of delivery on 
the Baggage Delivery Order when determining in which month to 
report the delivery charge. 



D. Lost Baggage Claim Procedures - If lost baggage has not been located 
after 72 hours, observe the following procedures. 

1. The station manager sends a Baggage Claim Letter, Form 0412-80272; 
Passenger Property Loss Claim, Form 0412-80217; and ATA/IATA 
Baggage Identification Chart, Form 0412-80221, to the passenger. 



1198 



DELTA AIR LINES. INC. 



STANDARD PRACTICE 



a. Sample of the Baggage Claim Letter, Form 0412-80272 



^ . DELTA AIR LINBSJNC. 



January 25, 1974 



Mr. John Simpson 
A735 Roswell Road 
Atlanta, Georgia 30327 

Dear Mr. Simpson: 

We dislike to fail in anything we undertake, but in spite of our 
best efforts Co locate your property, I must report that we have 
been unsuccessful. 

If your luggage has not been returned to you by another airline, 
please complete the attached forci and return it to us as soon as 
possible. Please be sure to enclose your bag claim check and 
the Passenger's Coupon of your ticket (or photostatic copies of 
each), and have the forci notarized including the Notary Seal. 
It is necessary for us to have these receipts and the notarized 
claim form in proper order before we can complete our investiga- 
tion. We will also need purchase receipts or invoices for all 
items valued at $100.00 or more. 

Just as soon as we hear from you, we will be able to undertake 
the final staj,e3 of our search which will include all other air- 
lines. If your baggage is not found at that time, we will I. in 
touch with you again. 

We regret this Inconvenience very much and wish to thank you for 
being so patient. 



J. H. Jamison 
Station Manager 

Please reply to: System Manager - Baggage Service 
Delta Air Lines, Inc. 

Hartsfield Atlanta International Airport 
Atlanta, Georgia 30320 



1199 



AUG 5 JS74 



DELTA AIR LINES. INC. 



STANDARD PRACTICE 



b. Sample of Passenger Property Loss Claim, Form 0412-80217. 






1200 

DELTA AiK LINES. INC. 

STANDARD PRACTICE 



2. Enter the date on which the claim forms were mailed to the customer 
at the bottom of the Tracer Message for Mishandled Baggage, and 
forward a completed copy of the Tracer Message to the System Manager - 
Baggage Service - Atlanta. Include with the Tracer Message 

any additional information that may assist Baggage Service in locating 
the baggage or in settling the claim (especially verification of 
transfer to or from another carrier). 

3. When the station manager sends the copy of the Tracer Message, 
control of the file and further tracing action is transferred to 
System Baggage Service. 

A. The local station maintains an inactive file for two months. 

5. System Baggage Service maintains the file for 30 days from the 
date of loss. If the baggage is not located within this 30-day 
period and the passenger has returned the completed Passenger 
Property Loss Claim, bag checks, and ticket receipt, System Baggage 
Service forwards the file to Che Manager - Customer Relations - 
Baggage for final disposition of the claim. 



Action by Station Where Mishandling Occurred - Upon receipt of the 
copy of the Tracer Message, investigate and categorize the mishandling 
and log the delivery cost on the Mishandled Bag Summary, Form 0412- 
80270. At the end of the calendar month, send a report of mlshandlings 
to the Station Manager - MEI. Include: 

1. Number of bag deals (this number should equal the number of tracers, 
therefore representing the number of passengers whose bags were 
mishandled) occurring at the reporting station, categorized by mis- 
handling code. 



2. Total delivery cost of bags mishandled at station. 

3. Number of passengers boarded at station. 

4. Copies of each Mishandled Bag Summary. 

No later than the first day of each month, report the previous month's 
tentative results to the Baggage Campaign Region Chairman, who compiles 
the regional results and sends the suinmarized regional results, via teletype, 
to Stations Department, ATLOZ, on the same day. ATL, DFW, and ORD teletype 
their results directly to the Stations Department, ATLOZ. A system teletype 
summary of the results is sent to all stations early each month. 

For the purpose of this report, include only those tracer messages received 
by your station from the first day of the month to the last day of the month. 
Disregard the date on the tracer message when determining in which month the 
deal should be reported. 



1201 



FEB 1 8 1974 



DELTA AIR LINES, INC. 



STANDARD PRACTICE 



1. Mishandled Bag Sunnnary, Form OA12-80270 



MISHANDLED BAG SUMMARY 



/ — \ CITY /-"T^LT ■ ' f>n::~ 
[ 3 ] REPORTING ' A y 



6H/A 



JEJL 



J±tlL 



jjiIl 



?^'g^// 



6^^/l 



/?5/z 



^ 1 ^^ 



/4- 



/7 



A. 



uA ro/ 



DL±S4 



REF. 
1. 
2. 
3. 



EXPLANATION 

STATION - Reporting station. 

MONTH - YEAR - Reporting period. 

CITY REPORTING MISHANDLING - Station from which 
the Tracer Message was received. 

FLT/DATE USED - Flight on which passenger was riding 
and the date of the flight. 

NBR BAGS - Number of bags involved in the bag deal. 

DELIVERY COST - Delivery cost of bags mishandled at 
reporting station. 

MISHANDLING CODE - Appropriate mishandling code to describe 
bag deal. Mishandling codes are listed on the reverss side 
of the Mishandled Bag Summary. 

REMARKS - Any additional information necessary to describe 
bag deal. 



1202 



DELTA AIR LINES, INC. 



STANDARD PRACTICE 



2047.3 DAMAGED BAGGAGE 

The Baggage Repair Authorization, Form 0412-70097, permits most claims 
to be handled with only one contact between the passenger and Delta. 

When there is reasonable doubt as to Delta's responsiblity for damage 
or a claim has the appearance of being traudulent, the agent handling 
the transaction should advise the passenger that a report of the incident 
will be made to the Manager - Customer Relations - Baggage and that he 
will hear from that office promptly. 

Trke into account the age and apparent previous condition of the bag 
when arranging- for repair or replacement. Apply depreciation when 
appropriate. 

When a disagreement takes place regarding a damage settlement, advise 
the passenger that a detailed report will be submitted to the Manager - 
Customer Relations - Baggage, who will get in touch with him promptly. 
Do not suggest that the passenger call the General Office. 

Normally, damage settlements will be made only when the passenger has 
reported the damage at the airport imniediately after arrival, permitting 
our personnel to perform an on-the-spot inspection. When claims are 
presented under other circumstances, acceptance or denial must be based 
on local good judgment. 

Personnel issuing Baggage Repair Authorization forms should be cautioned 
by local managers not to over-classify damage which would lead to higher 
than warranted repair costs. 

In a city not having a marketing manager, the station manager assumes the 
marketing manager's responsiblities as outlined in this standard practice. 

All claims for $75 or under may be settled locally. (Expenditures in 
excess of $75 per fare-paying passenger should be cleared with Customer 
Relations by telephone prior to payment.) 



1203 



DELTA AIR LINES. INC. 

OCT 8 J973 — ■ 



STANDARD PRACTICE 



Local Repair Facilities - The proper selection and coordination 
with a local repair shop is of paramount importance in ensuring 
customer satisfaction and reducing damaged baggage costs. The 
marketing manager should do the following: 

1. Contact several (if available) baggage repair shops to verify 
their reputation and their acceptance of our repair 
authorizations. 

2. Prepare a list of names and addresses of these shops and 
distribute to all CTO and FTO personnel. Ensure that all 
personnel in contact with the public are aware of local 
procedures for the settlement of baggage claims. 

3. If the volume of repair or replacement is substantial, 
request a discounted price. In any case, request a periodic 
comparison with other installations or Customer Relations 
(ATLGC) to ensure that we are not overpaying for various 
brands of luggage. 

4. Establish local control limits (usually $25) which may not be 
exceeded by the repair shop without requesting prior authoriza- 
tion from the local Delta representative. 

5. Make scheduled inspections of repaired luggage prior to its 
being returned to the customer for nn indication of the work 
being done and the price being charged. 

6. In cases where the shop has recommended replacement, examine 
the damaged luggage to determine if such replacement is 
warranted. 



Baggage Repair Authorization, Form 0412-70097 

1. Use - The agent who receives the damage claim completes the 
authorization in duplicate. Use a ball-point pen. When 
practical, use a repair shop listed by the marketing manager. 
If none of these shops are convenient to the passenger, 
leave the repair shop space blank and advise the passenger 
to use a shop of his choice. Distribute as follows: 

Original - to passenger 

Duplicate - to local file for three months 

The passenger takes the baggage and the signed copy of the 
authorization to the repair shop. 



1204 

DELTA AIR LINES, INC. 

STANDARD PRACTICE 



The repair shop submits a statement, with the authorization 
attached, to the local marketing manager. If Delta does not 
serve the city in which the repairs are made, the repair shop 
sends the necessary documents to Customer Relations, Atlanta. 

If the passenger comments on the inconvenience of having to 
deliver and pick up the bag at the repair shop, an additional 
$5.00 may be offered. Use a Petty Cash Receipt, Form 0412-10006 
(see SP 1245). 

2. Payment of Charges - The marketing manager verifies the state- 
ment and authorization. Make the payment with an Expense Check 
(see SP 1252). Forward copy three of the draft to Accounts 
Payable, Atlanta. 

When the statement is forwarded directly to Customer Relations - 
Atlanta, that office makes the payment directly to the repair shop. 

When a repair shop advises that repair charges will exceed 
$25.00, the local marketing/station manager determines if it is 
more economical to replace it. The local manager pays the repair 
or replacement charges, using an expense draft. 

Accumulate damaged bags for a time not to exceed 60 days and 
sell them, either singly or by lot, by public bid. The station 
manager and the marketing manager (in cities that have a marketing 
manager) coordinate the time and place for the sale. Report all 
funds received on the first Collection Report prepared after the 
sale (see SP 2424). 

Those bags that are usable or have been satisfactorily repaired so 
as to be acceptable as "loaner bags" should be sent with an Expedite 
Baggage Check marked "Loaner" to System Baggage Service, 

Cash Settlement for Damaged Baggage - The agent who receives a notification 
of damage determines the feasibility of offering a cash settlement. If the 
agent decides that this type of settlement is feasible, follow the following 
steps. 

1. Amount of Settlement - Determine the amount of settlement based 
on the following schedule and the cost of the bag when new. 



KC 1 8 ^972 



1205 

DELTA AIR L.NES, INC. 

STANDARD PRACTICE 



UA>IAGE OBSERVED 


RANGE OF 


SETTLEMENT 


1. Handles 


$3.00 - 


$ 8.50 


2. Locks 


3.50 - 


10.00 


3. Crushed comer and/or bent 






frame 


5.00 - 


15.00 


A. Puncture 


8.50 - 


15.00 


5. General refurbishing 






(scratches, nicks, spots, 






etc.) 


3.00 - 


5.00 



Cost classifications are shown below as a guide. Usually, 
class A bags are entitled to the highest settlement figure, 
and class D bags the lowest. 

CLASSIFICATION COST WHEN NEW 

Class A Over $125.00 

Class B $75.00 - $125.00 

Class C $25.00 - $ 75.00 

Class D Under $25.00 



If the agent decides not to suggest an immediate cash settle- 
ment, or the customer refuses to accept it, use the Baggage 
Repair Authorization as described in 2047. 3B. 

Issuing Cash Settlement - Once an amount of cash settlement 
is decided upon, complete a Petty Cash Receipt, Form 0412-10006, 
to support the expenditure ($15 or less). Also, complete in 
duplicate a Baggage Repair Authorization for the passenger s 
signature and present cash to the passenger. Distribute the 
Baggage Repair Authorization as follows: 

Original - Attach to Petty Cash Receipt 
Duplicate - To local file for three months 

When cash settlement is made, the Cash Settlement section of 
the Baggage Repair Authorization must be completed as follows. 



1206 



DELTA AIA LINES. INC. 



STANDARD PRACTICE 



A 



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LOCAL ADDRESS UN 




PERMANENX ADDRESS 




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firi^?,^^'T<^/f 3<^3z2. 












^'c>^°- ycz.-//^-^ 










CU«I" CHECK 
NUMBER 


NAME OF ARTICLE 


COLOR 




"SrVr^n^d"" 


purchasec 


OR^C.NAL 


L'L'Z^'-'^C 


<S^/^7^ C^^" 


61.K 


ca?m'£7Z 


yv^-^evJ/Tzf 


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/r.C/r- a/2^ICtr?3 ^ A-.4W/li^£''/ */'/-S5-^/'Jg:-. 



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AS A CAiM jmLlMtNT »OII 






r TO TMt BAOGAOC «£^Al« 



FEB 1 8 1974 



1207 

DELTA AIR LINES, INC. 

STANDARD PRACTICE 



D. Replacement Bags - If a bag is damaged beyond repair, purchase 

a replacement. Bags less than one year old or in excellent condition 
should be replaced with an exact duplicate. For older baggage, be 
guided by the following depreciation chart in offering cash 
settlements : 



AGE ALLOWANCE 

Less than 1 year Buy exact duplicate (or pay original cost) 

1-2 years 70% of replacement cost 

2-3 years 65% of replacement cost 

3-4 years 60% of replacement cost 

4-5 years 50% of replacement cost 

5r6 years 40% of replacement cost 

6-7 years 30% of replacement cost 

More than 7 years 25% of replacement cost 



The condition of the bag is of prime importance in determining 

the allowance. The above chart is for guidance only and is 

based on routine wear. A 3-year old bag which looked like new before 

it was damaged would require a higher allowance than a bag of 

similar age which was well worn. Use common sense and sound judgment 

in determining depreciation allowances which are fair to both tne 

customer and Delta. 

An alternate method is to offer a new but less expensive bag as a 
replacement. The depreciation chart can be used as a base to deter- 
mine what type of alternate bag can be offered. 

Another alternative to the purchase of a less expensive bag or a 
cash adjustment is an offer to purchase a bag cover. 

There are certain areas where local conditions may require deviation 
from the above guidelines. Whenever this is necessary to achieve our 
two basic goals of customer satisfaction and reduced cost. Customer 
Relations would appreciate being advised of your local procedures 
as they might assist another station faced with similar problems. 

Cash settlements of over $75 must be cleared with Customer 
Relations by telephone prior to payment. 



1208 

DELTA AIR LINES. INC, 

STANDARD PRACTICE 



2047.4 DAMAGE TO BAGGAGE CONTENTS ; 

When a claim for damaged contents is presented to you, be guided by the 
following rules : 

This type of claim is generally acceptable only when there is 
extensive damage to the exterior of the luggage or other evidence 
that the bag was improperly handled -.ihile in our custody, such as 
indication that the luggage was unnecessarily exposed to inclement 
weather and/or fuel or hydraulic leakage. 

No claim is allowed for loss, damage to, or delay in the delivery 
of fragile or perishable articles or articles not suitable, or not 
suitably packed, for transportation in aircraft (CAB No. 142 - 
Rule 365). As stated above, there is an area where we are required 
to exercise good judgment and make a reasonable adjustment if our 
handling of the property was obviously negligent. 

Prepare a Baggage Repair Authorization in detail (see section 2047.3 
after checking the customer's ticket receipt to verify that travel 
was on Delta. 

I 
Examine each auticle in detail and note the exact extent of damage. 
PrepTre your itemization with the statement: "The following is a 
complete list of damaged contents." There have been many cases 
where, after the initial contact with our personnel, the customer 
has claimed additional articles damaged or more extensive damage 
(requiring replacement) than would be warranted by the condition 
of the luggage. 

Request that the customer retain all the damaged items pending dis- 
position of his claim. (In high value claims, we may require an 
additional inspection of the articles.) 

There will be cases where clothing contained in baggage is slightly 
damaged. In keeping with our objective of on-the-spot settlements, 
an agreement may be reached for the approximate cost of cleaning 
the soiled garments or performing minor repairs. (Wrinkling of 
contents in garment bags is not considered damage.) 

Try to settle immediately if investigation during the first contact 
indicates that Delta was responsible and that an adjustment can be 
made for $75.00 or less. 

If settlement cannot be reached at this time, avoid any unnecessary 
discussioi- or commitment as to the eventual settlement that may be 
made. Notify Customer Relations. 



1209 



DELTA AIR LINES, INC. 

FEB 1 8 1974 



STANDARD PRACTICE 



2047.5 ITEMS MISSING FROM BAGGAGE 

At times there will be difficulty in distinguishing claims that should 
be handled under this heading and those that should be processed as 
pilferage claims. Use good judgment and make a close examination of 
the luggage from which the items were allegedly taken or lost. 

As a rule, this type of claim will be in conjunction with baggage 
damage, such as broken locks, slashed sides, broken hinges, or 
sprung frames. 

The loss should be reported shortly after the customer's travel. If time 
allows, conduct an immediate search of your ramp area and aircraft bins and 
contact the boarding station or connecting point to locate the missing item. 

If the result of such a search is negative and you feel the claim is justi- 
fied, local payment may be made up to $75.00. 

If you doubt the validity of the claim or if the claim is in excess of 
$75.00, the file should be discussed with Customer Relations by telephone. 

In all reports of items missing from baggage, it is recommended that 
the tracing center (ATLLZ) be contacted to determine if the missing item 
has been found. 



2047.6 PILFERAGE ! 

When items are reported missing from a customer's baggage and there are 
indications of possible pilferage (e.g., no exterior damage to baggage - 
locks tampered with - "L" shaped slash), accomplish the following procedures: 

Telephone the station or stations involved to get immediate action. 

Follow-up the telephone communication with a "Tracer Message for 
Mishandled Baggage," Form 0412-80259, as given in section 2047.2 
and send it immediately. Indicate in the "Remarks" portion of the 
form that possible pilferage is involved. 

Send a teletype message to System Baggage Service - Atlanta (ATLLZDL) 
using the Pilferage Claim, Form 0412-80376. Be sure to include bag 
tag numbers, estimated value of each missing item, the time of the 
report, how the report was made (e.g., in person - by phone - by letter), 
and station or stations where possible pilferage could have occurred. 



1210 



DELTA AIR W.<:S. INC. 



STANDARD PRACTICE 



If the missing items have not been located after 72 hours, observe 
the following procedures. 

If the value of the missing items is $75.00 or less, try 
to settle the claim locally. 

If the value of the missing items is over $75.00 or the 
claim cannot be settled locally, the station manager 
sends a pilferage claim letter. Form 0412-80373, and one 
copy of the Passenger Property Loss Claim, Form 0412-80217, 
to the customer. 

Customer Relations coordinates with the Corporate Security Office 
in terminating the claim. 

A sample of the pilferage claim letter is given on the next page. 
An illustration of the Passenger Property Loss Claim was given in 
section 2047. 2D. 



1211 



DELTA AIR LINES, INC. 



APR 2 6 1974 



STANDARD PRACTICE 



Exan5>le of the Pilferage Claim Letter, Form 0412-80373 



^. DELTA AIR LINES, INC. 



January 25, 1974 



Dear Mr. Simpson: 

We regret that we have been unable to locate t 
adsslng from your luggage. It ia unusual to r 
as we place great emphasis on the security of 



report 
s' belongings. 



He are enclosing two copies of our claim form. When you have checked 
every possibility to assure yourself that the items mentioned were not 
omitted when packing for your trip, please complete these forms and 
return one copy to us as soon as possible. Your signature must be 



witnessed by a n 
copy is for your 
ticket receipt a 



jry public and stamped wit 



Just as soon as we hear from you, we will be able to undertake the fit 
stages of our Investigation. If your property Is not found at that tl 
ve will be in touch with you again. 



'^■5- 



"ii. 



Station Manager 



Please reply 



clonal Airport 



Atlanta, Georgia 30320 



1212 



DELTA AIR LINES, INC. 



STANDARD PRACTICE 



20A7.7 CLOTHING DAMAGED IN FLIGHT 

Delta accepts responsibility for a customer's clothing torn or 
soiled during a flight if caused by: 

Flight attendant's spilling of food or beverages 

Rips due to exposed ash trays or screws 

Turbulence 

Existence of mechanical hazards 

Personnel negligence 

We cannot accept liability for such incidents if caused by the customer's 
own negligence or that of a fellow passenger. However, in the interest 
of customer relations, if the damage is confined to cleaning costs ($2.00 
to $5.00) , an adjustment may be made. 

If the claim requires dry cleaning only, make an on-the-spot adjustment 
in keeping with local charges for this service. 

Should the claim be of a more serious nature, determine from the In-Flight 
Service Flight Report the cauje of the damage and Delta's responsibility. 

Claims for clothing damaged in flight may be settled locally up to $75.00. 

If the torn or soiled clothing results in personal injury to the customer, 
submit an Irregularity Report, Form 0412-20023, in accordance with SP 3505. 



2047.8 LOST ARTICLES 

When a claim is presented for loss of clothing or other articles placed 
on seats or carried in the cabin, prepare a Lost/Found Report Tag, Form 
0412-80116, describing the article in as much detail as possible. Denote 
"Lost" on both the original and duplicate portions of the form. 

Note any additional information regarding the loss on the form to assist 
in locating the article and to guide Customer Relations in processing 
the claim. 



1213 



DELTA AIR LINES, INC 

f£B 1 8 1974 . 



STANDARD PRACTICE 



If the flight is still en route, tracing is conducted by PLT and the 
file will remain active in the local station until replies have been 
received from the station addressed. 

Send the original Lost/Found Report Tag to the tracing center (ATLLZ) 
by next COMAIL and retain the duplicate in station file for three 
months before destroying. 

NOTE: If in the supervisor's judgment the article is of high value 
or would create an emergency for the owner if not located, a 
teletype message may be sent to the boarding and connecting cities 
cities, and to a downline city if the aircraft is to be 
searched. Note this action on both portions of the form.. 

Close coordination with System Baggage Service is imperative prior to 
any local* settlement being made, as they may have located the missing 
item. 

No local settlement is authorized until 30 days after the claim has been 
filed; and then, if it is apparent that we were negligent and you have 
a file, claim may be settled up to $75.00. 

There will be times when you will be required to handle such a claim on 
the local level. Close coordination with the tracing center is a 
necessity to ensure that we are not holding the missing item. 

Since the question of liability in this type of loss is seldom clearly 
defined, it is important that no commitment of responsibility be made 
'to the customer. Discussion should concern itself with locating and 
returning his property rather than the acceptance of liability for 
its loss. 

Whenever possible, allow Customer Relations to process this type of 
claim. 



2047.9 OUT-OF-POCKET EXPENSES 

Payments In this category are for the temporary loss of luggage. Local 
offices are authorized to reimburse passengers up to an amount of $75.00 
for miscellaneous expenses incurred due to mishandled baggage. In a 
tactful manner, try to settle with the passenger for the lowest reason- 
able amount. The customer may be supplied with a "RON Kit" and advised 
to retain receipts for the purchase of any additional items he feels 
are necessary. 



1214 

DELTA AIR 1.IH5S, INC. 

STANDARD PRACTICE 



Allow full reimbursement (not to exceed $75.00) for necessary overnight 
expenditures and minor clothing costs (shirts, socks, stockings, under- 
wear, etc.)- 

In extended delays, allow a 50% adjustment for necessary clothing cost, 
as the items will be of future use to the customer. 

While the local authorization for out-of-pocket expenses is $75.00, 
generally a $25.00 maximum should be adhered to except in prolonged 
delays or other unusual circumstances. 

Always use good judgment in balancing expenses against the length of 
time the baggage was delayed. 

Remember, what may begin as reimbursement for delayed baggage expenses 
may eventually be part of a claim for lost luggage. Advise the passenger 
that this advance will be deducted later if the bag is not found. 

When any doubt exists in the proper handling of out-of-pocket expenses, 
contact Customer Relations (ATLGC) for guidance. 

Reimburse expenses of $15.00 or less from petty cash. Have the passenger 
sign a Petty Cash Receipt, Form OA12-10006, showing the amount reimbursed, 
passenger's address, flight number and date, and description of the mis- 
handling (see SP 1245). 

When reimbursing an amount in excess of $15.00 but not more than $75.00, 
the local station manager or sales manager uses an Expense Check (see 
SP 1252). Route the pink copy of the check with the supporting receipts 
of the items purchased to Manager - Customer Relations - Baggage. 

Contact the Manager - Customer Relations - Baggage for authorization to 
reimburse amounts in excess of $75.00. 

NOTE: Specifically explain to the passenger that any amount reimbursed 
or advanced is deducted from the final claim payment in the event 
that the bag is not located. 



2047.10 CLAIMS FROM REDUCED-RATE PASSENGERS 

Handle payment of lost and damaged baggage claims of reduced-rate passengers 
In the same manner as revenue passengers' claims. 



1215 



DELTA AIR LINES, INC. 

APR 1 6 1373 



STANDARD PRACTICE 



2047.11 CLAIMS FROM KONREVENUE PASSENGERS 

Nonrevenue claims for lost or damaged baggage from other airline 
employees should be handled exactly as revenue passengers' claims. 

Nonrevenue claims for damaged baggage from Delta pass riders should 
also be handled exactly as revenue passengers' claims. 

Nonrevenue claims for lost baggage from Delta pass riders are handled 
as follows: (Prospective Delta employee lost baggage claims are 
handled exactly as revenue passengers' claims.) 

If lost baggage has not been located after 72 hours, System 
Baggage Service forwards a Passenger Property Loss Claim, 
Form 0A12-80217, to the Delta employee. 

If lost baggage has not been located after 15 days. System 
Baggage Service forwards the completed claim form and a local 
manager approval form to the Delta employee's local manager 
or supervisor. 

The approval form is signed by the Delta employee and endorsed 
by his local manager or supervisor. If the claim form is dis- 
approved, the local manager or supervisor will make the adjust- 
ments with the employee before forwarding the claim form and 
approval form to Customer Relations - Atlanta. 

The Assistant Manager - Customer Relations - Baggage then handles 
the settlement of the claim directly with the employee. 



2047.12 RESERVATIONS ACTION ON PASSENGER CLAIM CALLS 

I'Jhen a passenger contacts Reservations regarding a mishandled bag 
and the call cannot be transferred to the office that handles such 
matters, do not ask the passenger to call another number. ' To avoid 
having the passenger place an additional call. Reservations handles 
the call as follows : 

Obtain the passenger's name and the phone number where he, can 
be reached. 

Advise the passenger that a representative of Local Baggage 
Service will contact him Immediately. 



1216 



DELTA AIR LIMES. INC. 



STANDARD PRACTICE 



Contact the appropriate office (see below) and advise that office 
to contact the passenger immediately. 

Contact one of three offices according to the following 
schedule: 



Number of Days Since 

Mishandling Occurred Office 

3 days or less Local Baggage Service office at 

station where mishandling was 
reported. 

A-28 days System Baggage Service 

After 28 days Customer Relations 



1217 



AUG 



^ 9 1374 



DELTA AIR LIKES. INC. 



STANDARD PRACTICE 



CUSTOMER COMPLAINT/COMPLIMENT HANDLING 



CONTENTS 

Page 

2060.1 Purpose 1 

2060.2 Assisting Customers with Complaints 1 

2060.3 Customer Comment Form, Form 0412-70618 3 

2060.4 Completing the Customer Comment Form - 

Ticket and Reservation Offices 3 

2060.5 Completing the Customer Comhient Form - 

Marketing 4 

20[60.6 Recording the Customer Comment Form 4 

20J50.7 Illustration and Reference Explanation of ! 

Customer Comment Form, Form 0412-70618. . .j . . 5 

2060.8 Action by Supervisors and Managers 6 

2060.9 Letters from Customer - Complaint and 

Compliment 7 

2060.10 Referring Complaints to General Office 7 

2060.11 Customer Relations Department 8 



2060.1 PURPOSE 

This standard practice explains the procedures for handling customer complaints 
and compliments. For the purpose of this standard practice, a customer is 
defined as a passenger or shipper/consignee. 



2060.2 ASSISTING CUSTOMERS WITH COMPLAINTS 

A rigid set of rules cannot be prescribed for assisting customers with 
complaints. However, use the following guidelines: 

A. Anticipate Problems - Try to anticipate complaints. If a customer 
appears dissatisfied, placate him before he complains. 



Be Positive - Treat all complaints as constructive criticisms. 



1218 



DELTA AIR LINES, INC. 



STANDARD PRACTICE 



Handle Complaints Promptly/Courteously - Make every effort to handle 
complaints as they occur. Show interest and concern. Listen atten- 
tively. Be courteous, kind, and thoughtful. Accept complaints wlien 
presented, regardless of where the incident occurred or who was 
responsible. The customer views each employee as the representative 
of Delta Air Lines. 



D. Local Settlement Authorized - Local managers and authorized personnel 
may pay up to $75.00 to settle local complaints. 

E, Record Complaint - Record the passenger's verbal comments on the 
Customer Comment Form, Form 0412-70618, (see 2060.3). Report all 
irregularities on the Irregularity Report, Form 0412-20023 (see SP 
3525). Incidents requiring General Office action are marked by local 
managers on- the appropriate form "G.O. Action" in the bottom^ right 
hand corner. 



Be Courteo us - Avoid being drawn into arguments. Third parties often 
observe how' problem cases are handled and judge Delta accordingly. If 
the customer becomes irate, invite him to an office or any area away 
from other customers. 



Be Understanding - Try to view the problem from the customer's view- 
point. The average customer is unaware of the intricacies of airline 
operations and what appears to be a minor problem to you may seem quite 
serious to him. 



H. Avoid Stereotyped Explanations - Avoid such explanation as "company 
policy" or "standard procedures". If in fact, "standard procedures" 
are being implemented, advise the customer of the anticipated results. 

If additional time and information are needed to reach satisfactory 
solution, offer to communicate our findings to the customer and advise 
hi^n of the approximate time he will receive a reply. Advise the local 
supervisor/manager of all facts by giving him the completed Customer 
Comment Form or Irregularity Report, as appropriate. 



Many airline rules and regulations are on file 



and approved by the CAB; however, do not blame the CAB for an adverse 
situation. 

J. Review Details - After listening to the complaint and recording the 
information-, review the complaint with the customer for accuracy as 
necessary. Answer the complaint to the best of your ability and 
authority. 



1219 



;^Ub i 9 1374 



DELTA AIR LINES, INC. 



STANDARD PRACTICE 



K, Personal Referral - If referral is necessary, personally escort the 
customer to the appropriate supervisor or manager. If the complaint 
is made via telephone, transfer the call or advise the customer that 
your supervisor or manager will call back at the customer's convenience. 

L, Follow Through - If corrective action has been taken, let the customer 
know what is being done. A customer often becomes favorably impressed 
when he realizes action is already being taken to resolve the problem. 



2060.3 CUSTOMER COMMENT FORM. FORM 0412-70618 

The Customer Comment Form provides a method of recording and reporting 
customer comments received by reservations, ticketing, and marketing 
personnel. 

; I 

On-the-spot handling of complaints is the ideal situation;; however, if unable 
to resolve the matter, refer the problem to the station manager or marketing 
manager, as appropriate. If the manager cannot resolve the complaint at the 
local level, he sends a copy of the Customer Comment Form with a detailed 
report of the problem and local follow-up to the Customer Relations Department, 
Atlanta, and notes additional action is necessary (see 2060.8). 



2060.4 COMPLETING 



THE CUSTOMER COMMENT FORM - TICKET AND RESERVATION OFFICES 



A. Apent Ac 



Agent's perform the following: 



Complete the SUBMITTING INFORMATION section (see 2060.7) e.xcept for 
SUPVR item. 

Complete the CONTACT INFORMATION section if the passenger desires to be 
contacted (e.g. passenger charged incorrect fare). 

Complete the SPECIFIC AREA section by checking each applicable item 
and explaining in the area to the right of the check mark(s). 

Review your check marks and comments for clarity and submit the com- 
plfcted form to the lead agent or supervisor. 



B. Supervisor Action - Supervisors perform the following: 

Review the completed Customer Comment Form. Examine the form for 
thoroughness, conciseness of comments and readability. 

Determine if the comment(s) requires immediate action. If other 
local action is necessary (e.g. customer desires to speak with 
"someone in higher authority"), route as appropriate. 



1220 



DELTA AIR LIMES, INC. 

STANDARD PRACTICE 



When no further action is necessary, sign the completed Customer 
Comment form and forward to Customer Relations, Department 760, 
Atlanta. Route partially completed forms to local manager for 
further local action. Upon completion, the manager deciding the 
local disposition forwards the completed form to Customer Relations, 
Department 760, Atlanta, with a copy to the appropriate department 
head. 



2060.5 COMPLETING THE CUSTOMER COMMENT FORM - MARKETING 

A. Marketing Representative Action - Marketing representatives perform 
the following: 

Complete the SUBMITTING INFORMATION section except for the MARKETING 
MANAGER item. 

Complete the CONTACT INFORMATION section if the customer desires to 
be contacted concerning follow-up action on his comment. 

Complete the SPECIFIC AREA section by checking each applicable item 
and explaining in the area to the right of the check mark(s). 

Review your check marks and comments for clarity. Submit the completed form 
form to your local marketing manager with copies for Customer Relations 
and appropriate department heads attached. 

\ 

B. MarketinR Manager Action - Marketing Managers perform the following: 

Review the completed Customer Comment Form. Examine the form for 
thoroughness and conciseness of comments. ' 

The local marketing manager should make every effort to satisfy a 
complaint before sending the Customer Comment Form to Customer Relations. 

Forward copies to Customer Relations, Atlanta, and to appropriate 
department heads. 



2060.6 RECORDING THE CUSTOMER COMMENT FORM 

Customer Relations records customer comments and totals the number of Customer 
Comment Forms received from reservations, ticket and marketing offices. The 
forms are categorized by city and type of occurrence. These comments are 
included in Customer Relation's monthly reports. 



1221 



DELTA AIR LINES, INC 



AUe 1 8 J874 



STANDARD PRACTICE 



2060.7 ILLUSTRATION AND REFERENCE EXPLANATION OF CUSTO>ER COMMENT 
FORM (Form 0412-70618) 



A, Illustration of Customer Comment Form 




CITY AND OFFICE CODE 

CHECK ONE COMPLIMENT?, { 

SHOW _i:y3/j£y y/_y^ 

FLIGHT. CLASS. DATE, CITIES 



. OFK-t'iTL - T fV^ 




DAMAGED- 
LOST DELA 
OTHER 



RANCE 

COMFORT 

OTHER . 



©' 



MENU a 

NO MEAL/BEVERAGE- O 
OTHER D 



EXPLAIN IN DETAIL BELCTV 



CUSTOMER SER 



RESERVATIONS- 



PROM CUSTOMERS. 




/-h^D 2Z1 2rrt/-Cs 



t^>r7->i:A- :7:>,'r<^ r,^t^ l.o,o e- 



A/J /A<^-»^7- /^^^ fii-rc 



1222 

DELTA AIR LIMES. INC. 

STANDARD PRACTICE 



B. Reference Explanation of Customer Comment Form 
REF. EXPLANATION 

1. SUBMITTING INFORMATia-I - Enter information concerning \A\en and 
where the comment was submitted by the passenger. 

2. CONTACT INFORMATION - Enter information necessary to contact the 
passenger. Complete this section only if the passenger desires to 
be contacted. 

3. SPECIFIC AREA - Check the applicable area and enter appropriate 
explanation in space provided. 

4. EXPLANATION - Give a detailed but concise explanation of the 
comment and/or other relevant information. 

5. ROUTING AND DISPOSITION - Enter information concerning routing 
of the form and action taken. Make sure the information in this 
section is complete and accurate. 



2060.8 ACTION BY SUPERVISORS AND MANAGERS 

Local managers promptly follow up all compliments and complaints referred to 
them. If all local efforts fail to bring satisfaction concerning a complaint, 
advise the customer that a full report will be made to the Customer Relations 
Department and that a representative will contact hirn upon completion of an 
investigation. Also advise the customer that the Customer Relations Depart- 
ment will review the matter with any other department, station or airline 
involved. The written report must be reviewed by tlie local Marketing Manager 
or Station Manager for legibility and clarity. Forward the written report 
of the complaint to the Customer Relations Department immediately. Include 
the following with the report: 

Completed Customer Comment Form or Irregularity Report. Include all 
local action taken. 

Copies of all correspondence from local office(s) concerning the 
incident. 

All written reports from any other office(s) involved or a surar^jry of 
action taken by other Delta offices. 

Mark file for "G.O. Action" and indicate recommended action. 



1223 



DELTA AIR LIKES, INC. 

MAY 2 1 W73 ^ 

STANDARD PRACTICE 



2060.9 LETTERS FROM CUSTOMER - COMPLAINT ANT) COMPLIMENT 

Local managers acknowledge all letters of complaint and compliment 
received by them. 

If a complaint letter refers to a locally occuring incident dealing 
with food, beverages, employee attitude, or any clearly established 
rule, the local station manager or marketing manager handles the 
letter in Its entirety. 

If a complaint involves another Delta office, the local manager 
coordinates the matter with the manager whose city or station is involved. ' 
Forward a copy of the original complaint and the letter closing the matter 
to Customer Relations Department - Atlanta. 

If a complaint cannot be solved locally or between managers, forward 
copies of the original letter and any additional correspondence immediately 
to Customer Relations and notify the customer of your action. Be sure 
Customer Relations Department is advised of all action taken locally. 

Forward copies of written compliments to supervisors of the individual 
concerned and Customer Relations Department. 



2060.10 REFERRING COMPLAINTS TO GENERAL OFFICE 

Only supervisory personnel may refer complaints to the General Office. 
However, before taking such action do all possible to assure the customer 
that you are genuinely concerned and will give the matter your complete 
attention to the extent of your authority. Handle referrals as follows: 



A. Normal Work Day - If a customer insists upon speaking with someone 
at the General Office, direct requests to the following individuals 
in this order: 

1. Baggage/Cargo Complaints 

a. Manager/Supervisor - System Baggage 

b. Manager - Customer Relations - Baggage - for complaints 
concerning baggage or personal property loss or 
damage. (For 21 days after a baggage loss, only System 
Baggage Service can provide status of tracing or claim 
information. Referring a customer to other sources is a 
disservice.) 



1224 

DELTA AIR LINES, INC 

STANDARD PRACTICE 



c. Manager - Customer Relations - Cargo - for complaints 

concerning loss or damage (Refer inquiries regarding air cargo 
loss to the destination station until a formal claim has been 
filed.) 

2. Other Complaints 

a. .Manager/Assistant Managers - Customer Relations 

b. General Manager - Customer Relations 

c. Assistant Vice President - Customer Relations 



Off-Duty Hours - If a customer insists upon speaking to someone at 
General Office at night, on weekends, etc., explain that the General 
Office is closed and that a complete report will be made on the next 
working day. Should the customer still insist upon speaking to some- 
one, the manager or his delegate should give the names of those listed 
in 2060.10A and provide the following address: 

Delta Air Lines, Inc. 
Customer Relations Department 
Hartsfield Atlanta International Airport 
Atlanta, Georgia 30320 



■ 2060.11 CUSTOMER RELATIONS DEPARTMENT 

The Customer Relations Department assumes responsibility for all future 
correspondence, claims adjustments, and other remedial action upon receipt 
of written notification from the field. 



1225 



54. How many pieces of luggage were mishandled? 197 2-October 1, 1974? 

No record of total mishandlings is kept. Many mishandlings are promptly resolved 
and do not result in a claim and thus do not generate a record. 

[The subcommittee has agreed to Delta's request for confidentiality 
for the answers to questions 55 and 56.] 



57. How many were damaged? 1972-October 1, 1974? 

Not available. The majority of repairs are handled locally in the field by luggage 
shops which are on "retainer" for Delta and which bill monthly (such bills are 
paid locally by each Delta station) . No count of the number of individual repairs 
is maintained. 

[The subcommittee has agreed to Delta's request for confidentiality 
for the answers to questions 58 through 65. ] 



66. What percentage of the number of claims received exceeded the maximum 
liability limits specified in the tariffs? 1972-October 1, 1974? 



See Explanation at Response 49. 



67. How many claims were denied because the baggage or its contents was 
unacceptable? 1972-October 1, 1974? 

Not available. See Explanation at Response 49. 



1226 

68. What percentage of claims were paid in full? 1972-October 1, 1974? 
Not available. See Explanation at Response 49. 

69. What percentage of claims were denied completely? 1972-October 1, 1974? 
Not available. See Explanation at Response 49. 



70. State the carriers' policy regarding proof of ownership of passengers' luggage 
and its contents. Submit any written notice which is given to passengers 
explaining this policy prior to checking in luggage. 

If this question refers. to passenger baggage pickup at end of trip, Delta's policy 
is to require presentation of a baggage claim check. Notice of need for claim 
check is given on the standard ticket form. Also see Response 100 d. 

If this question refers to proof of ownership after loss or damage, Delta requires 
completed claim forms which include a statement attesting to ownership and value 
(see Delta Standard Practice 2047 attached to Response 53) . Receipts are requested 
only for high value articles (along with evidence of travel [ticket, bag check]). 
The passenger is not given specific notice that he will be required to prove his 
or her ownership before making a claim for his or her lost or damaged property. 
The conditions of the contract of carriage on the reverse side of the passenger's 
coupon refer to the carrier's liability, and reference is made to the liability 
limits in public timetables and by conspicuously posted signs at airport ticket 
counters. Also see Response 100 d. 



1227 



71. List specifically carrier's criteria for the acceptability of 
checked luggage. Submit any written notice which is given to 
passengers explaining this policy prior to checking of luggage, 



Response: 1. Criteria for acceptability of checked baggage is 

outlined in Governing Rules Tariff PR-6 (pertinent 

portions of which are attached) . Also see Delta 

Standard Practice 2012, also attached. 

2. Following types of written notice given to 
passenger are: 

A. Public Timetable (sample attached) 

B. Ticket Envelope Stuff er (sample attached) 

[The portions of the Rules Tariff PR-6 are omitted.] 



67-378 O - 76 



1228 



KCV 4 K74 



DELTA IR LirlES, INC. 

STANDARD PRACTICE 



j CHECKING BAGGAGE 



CONTENTS 

Page 

2012. 1 Purpose •,.••• 1 

2012.2 General Instructions 1 

2912.3 Free Baggage Allowance 3 

2012.4 Carry-On Baggage 5 

2012.5 Articles Not Accepted as Checked Baggage ... 6 

2012.6 Cabin "Reserved Seat" Baggage 9 

2012.7 IVheelchairs and Sporting Equipment 12 

2012.8 Gun Cases 14 

2012.9 Plastic Garment Bags '. . . . 14.2 

2012.10 Desiring Passenger's Baggage ' . . 14.2 

2012.11 Baggage Identification Tape 15 

2012.12 On-Line Baggage Tags 15 

2012.13 Damaged When Received Tag, Form 0419-70662 . . 18 

2012.14 Interline Baggage Tags 19 

2012.15 Rechecking Baggage 22 



2012.1 PURPOSE 

The destination to which baggage is checked and the type of baggage tag 
used depend on certain conditions; such as the reservation statas of 
the passenger, domestic or international trip, and the nature of the 
baggage itself. The various types of baggage tags and their uses are 
shown herein with special instructions regarding unacceptable articles, 
carry-on baggage, and cabin baggage. 

For excess baggage charges, excess valuation charges, and excess baggage 
ticket entries, see SP 1608. 



2012.2 GENERAL INSTRUCTIONS 

A. Old Tags - Remove all old strap tags from baggage to avoid the 
possibility of misrouting. 



B. Entries - Print all entries legibly and in block letters. 



1229 



DELTA Al.! LINES, INC. 



STANDARD PRACTICE 



C. Ai/ising Passenf^cr - When claim tags are C'ven to the passenger, 
advise the passenger of the number of bags checked and to what 
destination the bags are checked to prevent inadvertent mischecking 
of the baggage. In addition, advise the passenger of all bags 
checked as damaged when received (sec 2012.14). 

D. Ba.^gage Information on International Tickets - When checking bag- 
gage for international travel, enter the required information in the 
spaces provided on the flight coupon(s) . 

E. P roxy Checking - Do not issue claim tags without firSC seeing the 
passenger's baggage and inspecting the ticket to determine routing. 

F. Change of Airport - If passenger arrives at one airport to connect 
via. ground transportation to a flight departing from another airport 
serving the same metropolitan area (e.g., DTW/YIP/YQG , LGA/EWR/JFK, 
lAD/DCA/BAL) , check the bag only to the airport of arrival. Advise 
the passenger to claim his bag before departing for the other airport. 

G. U naccompanied Baggage - Do not check baggage for flights other than 
those on which the passenger is ticketed, except in e::treme cases 
involving aircraft weight problems, expediting mishandled baggage, etc, 

NOTE: Every attempt must be made to keep the passenger and his 

baggage together. Tactfully decline to check baggage "ahead" 
or "short" of final destination simply to accommodate the 
passenger. For example: A passenger originating in MSY 
with a stopover in MEM and scheduled to arrive in ORD the 
following day, requests that baggage be checked direct to 
ORD. A passenger is ticketed JFK, ATL, BHM (today's date) 
with return to ATL the next day and wishes to check bags 
only to ATL because he does not need his baggage in BHM. 
This practice should not be permitted since it submits 
Delta and the passenger to possible baggage loss. 

H. Baggage Tags Issued by CTO ' s and TBM Offices - CTO's and TBM offices 
do not issue baggage tags. The only exceptions are CTO's that have 
check-in facilities; e.g., SFO and NYC downtown terminals. 

I. Interchange Fli;:;ht3 - Stations not having a supply of London, Frank- 
furt, or Paris baggage tags should check baggage for the DL/PAA inter- 
change flight using the Interline Baggage Tag (see 2012.15). Enter 
the carrier as DL/PAA and enter the flight number and destination. 



1230 



DELTA AIR LINES. INC. 
SEP 2 3 1974 

STANDARD PRACTICE 



Name Tag Requirements 

1. Confirmed Passengers - All checked baggage should have outside 
identification. Provide an ATA Airline Baggage Identification 
Label, Form 0412-70643, when necessary. If a confirmed passenger 
refuses to permit identification, check the bag without identifi- 
cation. Attempt to make all passengers aware of the benefits of 
ID labels. 

2. Standby Passengers - Do not check baggage for standby passengers 
(including NRSA's), unless the passenger ' s name or initials appear 
on the outside of the bag. Provide an ATA Airline Baggage Identi- 
fication Label, Form 0412-70641, if necessary. 



2012 .3 FREE BAGGAGE ALLOWANCE 

A. Delta Domestic Passenger - Each domestic passenger is allowed to 
check the following pieces of baggage without charge: 

One bag which does not exceed 62 inches in overall length, 
width, and height. 

One bag which does not exceed 55 inches in overall length, 
width, and height. 

One or more additional piece(j;) whose total outside dimensions 
do not exceed 45 inches when iidded together. 

One item of sporting equipment described in 2012.7. 



1231 



DELTA AIR IINES, INC. 

STANDARP PRACTICE 

NOTES: The 45" piece(s) may be carried on board the aircraft by the 
passenger if it can bo stowed under tlie passenger's seat. 

One duffel bag, one sea bag, or one B-4 bag which exceeds 
62" in total dimensions may be substituted for the 62" and 
55" bags. 

B. Alaska. Hawaii, and Canada - Specific regulations governing baggage 
allowances between the US and Alaska, Canada, or llaw.iii, and for 
travel solely within Alaska or Canada or Hawaii are defined in the 
Passenger Rules Tariff No. PR-6, 

C. US-San Juan Bag?;agc Allowance - For through transportation via Delia 
(no Jamaica stopover) wholly between points in the Continental US 

and San Juan, Puerto Rico; or, for Delta's portion of through trans- 
portation wholly between points in the Continental US and the Virgin 
Islands, apply the same "piece concept" baggage provisions and charges 
that apply to transportation solely within the Continental US. These 
"piece concept" provisions do not apply when the US-San Juan transportation 
is a portion of international transportation to or from a point other 
than San Juan, St. Thomas, or St. Croix. 

Examples of these provisions are given below: 

Between- And - VIA Pound/Piece Concept 

Pouna 
Pound 
Piece 

Piece to SJU; 
Pound beyond 
Piece-'- 
Piece-'- 
Pound-'- 

*0n joint transportation wholly between the Continental US and San Juan, 
the baggage concept applied by the connecting international carrier is 
also applied to the domestic portion of transportation. 

NOTE: Military personnel - For military personnel traveling between 
Continental US and SJU on permanent change-of -station orders 
or on Category Z fares. The same domestic "Piece Concept" 
baggage provisions and charges (above) will apply. 

D. Delta International Baggage Allowance - Each international passenger 
(see US-San Juan exceptions) is allowed free baggage allowance as 
follows: 

First Class 66 pounds 

Coach or economy class - 44 pounds 

Check applicable tariff for free baggage allowance for interline 

international passengers, since numerous exceptions are permitted 

especially in Central and South America. International Baggage 

exceptions also appear under Baggage Allowance in the Official 

Airline Guide (International Edition). 



US - Jamaica 


DL 


J'amaica - San Juan 


DL 


US - hEJ (no stopover) ■ 


- SJU DL 


US - SJU - STX/STT 


DL-CB 


ATL-NYC-SJU 


DL/AA/PA 


SJU-DFIJ-DEN 


DL-BN 


DFW-SJU-POS 


DL-AF 



1232 



DELTA AIR LINES, INC. 

3^0 2 3 ^974 

STANDARD PRACTICE 

E. Nonrevcnue Space-Available (NRSA) Passenggr - Trip pass classifications 
S-1 and S-2 plus prospective employee S-3 are not charged for excess 
baggage. 

Trip pass classifications S-3 (other than prospective employee) and 
S-4 have the same baggage allowances as revenue passengers. Do not 
accept NRSA baggage unless the passenger's name or initials are on 
the outside of the baggage. 

F. Carry-On Articles - In addition to the frea baggage allowance, each pas- 
senger may carry, without additional charges, the following articles only 
when retained in the passenger's custody: 

Lady's handbag or pocketbook 

An overcoat or wrap 

A foot rug 

An umbrella or walking stick 

A camera and a pair of binoculars 

A reasonable amount of reading matter for the flight 

An infant's food for consumption en route 

See 2012. A for carry-on baggage. 

For other articles that may be carried, see 2012.5. 

2°012.4 CARRY-OK BAGGAGE 

Items which may be retained by the passenger as "carry-on baggage" include brief- 
cases, attache cases, typewriters, and other articles of proper dimensions to 
fit under the passenger seat or in the enclosed overhead storage compartments 
(these articles must be retained in the passenger's custody). Include the 
measurement of carry-on baggage, except live animals, in the passenger's free 
allowance and/or excess charge (for articles not considered baggage, see 2012. 3F). 
Accept any type of baggage, except articles restricted in 2012.5, as carry-on 
baggage if it meets thr size regulations outlined in 2012. 3A and this section. 

Federal Air Regulations require carry-on baggage to be stowed during take-roff and 
landing. Baggage stowed under a seat should not infringe upon the leg room of another 
passenger. This can usually be accomplished by placing the bag under the seat 
Immediately in front of the passenger's seat. Passengers seated in the forward 
row of seats of a compartment (facing a bulkhead) should stow their bags under a 
seat in front of an empty seat or under the rear seat of a compartment. 



Acceptable Dimensions for Carry-On Baggage - The maximum dimensions that allow 
carry-on baggage to fit in the underseat or overhead space of Delta aircraft ar 
shown in the following chart. 



1233 



STANDARI' PRACTICE 





VC Undersoat 


Space 


Y/C Underaeat 


Space 


0/11 Coir 


partm-^Tit Space 


Type of 








1 










Aircraft 


Width 


Depth 


lelght 


•/idth 1 Depth 


Height 


\.'lcIHi 


.' .;■_ 


■>iiSht_ 


DC- 8- 51 


15^ 


15" 


10" 


U" 13" 


10" 






DC-8-61 


18!s 


11 


8h 


18'^ 1 13 


9 








DC-9 


29 


13 


11 


20!^ 1 12 


10 








B-727 


17 


16 


9h 


17 14!-, 


9 


36!2" X 


16" * 


8" * 


DC-10 


12!5** 


15 


8 


nh 


15 


8 


12% 


15 


8 


L-1011 


17 


16 


10 


15 


15 


9h 


15 


18 


6 


B-747 


19 


13 


9 


15 


13 


10 


38 "■ 


16 


5h 



*0n B-727/295-232 Aircraft only 
**Center seat width - 9 inches 

B. Portable Electronic Devices - Only portable voice recorders, hearing 
aids, heart pacemakers, electric shavers, and portable electronic cal- 
culators may be used while aircraft is in flight. 

Portable radios (AM or FM) , TV receivers, and other electronic devices 
may have circuits which radiate signals. These circuits act like mini- 
ature broadca-sting stations- and, in some cases, these signals are strong 
enough to interfere with the aircraft's radio navigation systems. Ad- 
vise the passenger that these devices must not be turned on or opera- 
ted during flight. 



2012.5 ARTICLES NOT ACCEPTED AS CHECKED BAGGAGE 

A. Fragile Articles - Do not accept as checked baggage any articles , 
that are easily damaged under normal handling conditions; e.g. 
glassware, paintings, ornaments, cameras, musical instruments, 
electronic devices or equipment, etc. If fragile articles cannot be 
carried on the aircraft because they do not meet applicable size 
restrictions, and the customer requests that the article be checked, 
;' provide him with a "checked baggage" cardboard carton (0442-01456) 
in which to pack the fragile article. (Do not pack the fragile 
article for the customer, but provide assistance if requested .) 
Attach a fragile sticker (0412-70516) to the strap and claim stub 

— ►• portions of the baggage tag and also apply Fragile Baggage Tape (0412- 
80440) to each side of the cardboard carton. UTnen doing so, be certain 
to inform the customer that the fragile article is checked at his own risk . 



If the customer decides not to check the fragile article and it is 
too large to be accepted as carry-on baggage, offer cabin reserved 
seat baggage service as an alternative (SP 2012.6). 



1234 



SEP 2 3 1974 

STANDARD PRACTICE 



Example of Fragile Sticker, Form 0412-70516: 



FRAGILE-ACCEPTflD FOBS 

TRAMSPORTATiC'N AT | 

PASSENGER RISK | 



Weapons - So that stations will operate under a uniform interpretation 
of what constitutes a "Dangerous Article' unacceptable for carriage in the 
cabin by passengers, the- following guidelines are provided by Delta: 

1. No handguns, firearms, or explosive devices may be carried in the 
cabin of any Delta aircraft (except for guns carried by duly autho- 
rized law officers). 

2. Hunting knives, butcher knives, switchblades, etc., are considered 
to be dangerous articles and will not be permitted in the cabin on 
any Delta aircraft. 

NOTE: Walking canes which conceal kr.ives, swords, etc., are not 
permitted in the cabin of Delta aircraft. 



3. Mace and tear gas may not be carried in the cabin or in any cargo 
compartment, ~ 

4. Pocket knives, scissors, haircombs, screwdrivers, eating utensils, 
and the like are not considered to be dangerous articles for the 
purpose of this instruction, and may be carried on unless Delta's 
representative believes the passenger by his actions represents a 
threat to the safety of the aircraft., 

5. Rifles and sporting arms not checked must be carried by Delta em- 
ployees to cockpit and will not be returned to passenger until he 
reaches baggage claim area at destination. Transfer and destination 
stations must be called to ensure correct handling. 

Local law enforcement officers may confiscate any article which violates' 
any local ordinance and Delta representatives will not assist in the 
return of these items to the passenger. 

Dangerous articles unacceptable for carriage in the cabin but not con- 
fiscated by law officers may be returned' to the passenger using one of 
the following alternatives: 



OPPOSITE SIDF; BLANK 



AUG 5 1974 



1235 



DELTA AIR LINES, INC. 



STANDARD PRACTICE 



Have the passenger enter his mailing address on a manila 
Arrange for the article to be mailed (at Delta expense). 



;lope. 



NOTE: Mace, tear gas, and firearms may not be mailed. 

Place article in manila envelope or suitable container with baggage 
tag affixed. Enter passenger's name, address, f light (s), and date, 
and load in cargo compartment. 

NOTE: Mace and tear gas may not be carried in cargo compartment. 



C. Liquor - Do not accept packages of liquor as checked baggage. Packages 
of liquor may only be accepted as carry-on baggage.. 



Storage Batteries - Do not accept either wet or dry type storage 
batteries as checked or carry-on baggage. (See SP 3858 for exceptions). 

Self-contained Breathing Apparatus - Accept as checked baggage only, 
self-contained breathing apparatus being carried by chlorine emergency 
personnel enroute to a chlorine emergency if the following requirements 
are met: 

The complete package meets the requirements of. Air Transport 
Restricted Articles Tariff 6-D, Packaging Note 250. 

The- package has a green non-flammable compressed gas label 
attached. 

The net weight per package does not exceed 150 pounds. 

The passenger provides a copy of the following shippers certi- 
fication and in addition, a copy of the certification is attached 
to the package . 




1236 



DELTA AllJ LINES, INC. 



STANDARD PRACTICE 



Articles Exceeding Size and Weight: Restrictions - Do not accept as 
checked or carry-on baggage any article weighing more than 70 pounds 
or the dimensions of which exceed 80 inches. These articles may be 
accepted as "baggage at airfreight rates" if they meet requirements 
in SP 2013. 

EXCEPTION: Exception to this restriction are sporting equipment, 
live animals in containers, duffel bags, and self-con- 
tained breathing apparatus. Baggage tendered by repre- 
sentatives of Secret Service or IVhite House Communica- 
tions Agency may weigh up to 80 pounds. 



Live Animals 

1, Acceptance and Handling - Always handle animals carefully to 
ensure they are carried under humane conditions. At stations 
using inclined conveyors for outbound luggage, have porter hand- 
carry kennels to the baggage room. Animals accepted for shipment 
must be in either a kennel similar to those sold by Delta (Doscosil 
Manufacturing Company) or one constructed in a similar manner. 

Containers other than Delta stocked kennels must meet the following 
requirements: 

Be constructed of wood, metal, or material of comparable 
strength (cardboard kennels are not acceptable). 

Provide proper ventilation. One or two small holes 
at the top of each end are not considered proper ven- 
tilation. 

Be of sufficient size to permit an animal to stand, sit, 
and lie down. 

Contain a floor providing a means of retaining liquids within 
the kennel during normal handling. This may be in the form 
of a permanent floor or a disposable insert. 

NOTE: Only dogs, cats, and household birds are acceptable 
as excess baggage. 

2. Health Certificates - Most states require health certificates 
as outlined in SP 3860. Advise the passenger these are state 
requirements and not a requirement of the airlines. Do not 
accept live animals without valid health certificate when required. 



HOV -i 1974 



1237 



"JAilDARD PR AC r ICE 



3. Checking - Cl:cck the nnimnl to tlin I rtcrlina connecting point ouly . 
Explain to the passenger that it will, b.- aecer.sory to claim and 
recheck the animal at the interline connecting point. In order 

to allow sufficient time to pecmit i.echceking at transfer point, 
compute the connecting time based on the minimum connecting time 
for the connecting city plus 45 minutes. 

4. Charges - Baggage charges based on local pnUit £6 point fares may be 
collected for the interline segments to avoid reticketing at the 
transfer point. 

US Weather Bureau Hcrcur ial._EaroTneters - Do not accept mercurial 
barometers as checked baggage. US Weather Bureau mercurial barometers 
may be carried aboard the aircraft and are to be handled in the same 
manner as sporting firearras (reference SL> 2012. 5BB). Carefully transport 
the barometer either horizontally or -erticaily with The reservoir end 
up. 

Medicinal and Toil et Arti cles^ - flcdicinal and toilet articles may be 
carried by the passenger in his baggage (iaclnding. carry-on baggage) 
when the total capacity of all eor,t;-!iners carried doer, not exceed 75 
ounces (net weight ouncct-), and the capacity of each container, other 
than aerosol container, dees not exceed 15 fluid ounces or one pound 
of material. 

Other Restricted Articles - Do not ^-cc-pt the following restricted 
articles as baggage except as provided in the Official Air Transport 
Restricted Articles Tariff No. 6--D. Restricted articles include: 
explosives, combustible Li<;aids, c:--nipr?:=seJ ".'.=es, corrosive liquids, 
flan-jnable solids or liquids, UG::iQV.r- or Irr i::- J- iur, ::ubrtances, 
magnetized or oxidizing ::.ato ciols , pcicc-:^, ,-"lr-^'-i^able or radio- 
active materials, articles liaHle t- d;'r:K..gc airc-aft structures, and 
articles possessing other inherent characteristics which make them 
unsuitable for air carriage unless properly prepared for shipments. 

nOTE: Ensure that proner Tabeir:, certificates, etc. are attached 

to the articles being c'.ockeri as outlined in the Air Freight 
Restricted Articles Tariff b-D. 

If there is anv doubt as to whether an article is restricted, refer to 
the above mentioned tariff or check with local Air Freight office 
before a '.lowing the article to be checked. 



2012.6 C/J?IN "RESDR'.'ED SFAT" BAGGAGE 

A Definition - Cabin "Reserved Seat" Uagga-c is any item of baggage that 
a passenger requests to be carried In the cabin, acceptable for carriage 
but so fragile and/or hulk^is_tCLjreciuir,^j u^ use of a seat. Such cabin 



1238 



STAND/ ^D PNACriOn 

baf;gage roquirinc ci •■;-";) t doe^- not oon;-^ umici- cho fi'jf I/ii('1>,-i;;g allowance as out- 
lined ill section 20ir..3. Tlic pJ:;L;rii.-er ir.n'U carry sicl bnp;r^c,^c on boai-J and 
keep it in a reser-yCd seal-, i roC<VL-;ibiy - bu t not ■v:zcs:;p.vily, next to the passeugi' 



B. Rf strictions - B.Tgsage to be lor.ded in tlic cabin 
following restrictions: 



Baggage woiglit cannot e;cce.id 165 pound.T. 

Baggage must be properly pecurcd by a safety bcJ L or other tiedown. 

Baggage must be pack.'scd ov covered in a manner to iivoid possible 
injury to passengers . 

Baggage should not restrict access to any emergency or regu]ar 
exit, or aisle in the passcn^jer compartment; and cannot obscure 
any passenger's viev; of the "seat belt" or "no smoking" sign, 
or required exit sign. 

Baggage must not contain radioactive material. 
Reservations Act! n 



should be booked in tlie voi 

gage. Also enter "cabin baggage" into the PNR 

segment. 



Reserve a seat for cabin baggage. TS-io seats 
ronie oj" the passenger carrying the cabin bag- 
SSR" supplementary 



Fare - Charge 50% of the applicable one-way full adult fare between 
the points the cabin baggage is carried. Charge the 8% domestic tax. 
The $3.00 international transportation tax docs not apply. 

T icketin g - Issue a separate passenger ticket to collect the appli- 
cable charges. Enter the passenser's name followed by "for accompanied 
baggage". Use the prime fare basis code followed by "0". On the ticket 

covering the passenger's transportation, enter "plus seat(s) for 

Baggage" following the passiinger ' .; na;iie. 






,$t: j-ouis 



t{a\-^ (Dkl^'\'<s\- 



^^k&^isi 



Cl5-10 ;!ii;2i;7!l3 



^'^i^^' 



t^'i X. o:k 



;;L-...r 

O 006 i03fc2'.793 



1239 



DEC 1 W73 



DELTA AIR UUl%, INC. 



STANDARD PRACTICE \ 




C . e^s^i e'- Pl\)s. one Sf ^AV fore eo % /«t 



F. Check-In and Boarding Procedures 

Accept cabin baggage only when space is cleared to final destina- 
tion. 

Prepare a boarding pass for cabin baggage ticket. 

Count cabin baggage as a passenger. If Passenger manifest is used, 
repeat the passenger's name followed by wording "CABIN BAGGAGE". 
If passenger load summary is used, enter in Miscellaneous Informa- 
tion section the wording "(Passenger name) CABIN BAGGAGE TO (Desti- 
nation)". 

At seat selection cities, select two adjacent seats. At non-seat 
selection cities, the gate agent advises the flight attendant to block 
two adjacent seats. (Seating must comply with restrictions in 
2012. 6B.) 



Prior to loading cabin baggage, the ramp agent covers seat to be 
used with heavy wrapping paper or other suitable material. Do 
not use aircraft passenger blanket. Prior to boarding other pas- 
sengers, the ramp agent assists passenger in loading cabin baggage 
in the seat adjacent to the window. Load string musical instru- 
ments, such as violins, guitars, cellos, etc., with the large case 
on the floor and the small neck on the back of the seat. The ramp 
agent securely ties cabin baggage to the seat. Use the seat belt, 
seat belt extensions, and/or two-ply twine for this purpose. 



1240 



DELTA AlP, LINES, INC. 



STANDARO PRACTICE 



2012.7 WHEELCHAIRS AND SPORTING EQUIPMENT 



Wheelchairs 



See SP 3858 for handling wet battery powered wtieelchairs . 



1. Rules - Conditions for checking wlieelchairs are covered in lATA 
Rules Tarift and in Passenger Rules Tariff No. PF-6 which states, 
"Carrier will, subject to available space, accept for transportation, 
without charge, one collapsible wheelchair on the same flight with 
incapacitated passenger dependent upon such wheelchair." 

2. Check-In Procedure - Check wheelchairs in the regular manner. 
Do not collect excess baggage charges for the wheelchair. 

3. Loading - Establish local procedures to ensure that wheelchairs are 
loaded last so as to be easily accessible for unloading at destina- 
tion point. 

4. Advise Destination Station - Operations agent sends a teletype 
message to Operations at destination station advising wheelchair on 
board and bin number (on 747, include container number). 



B. Sporting Equipment 

I. Type of Equipment - Any one of the following itei 
ment is accepted free of charge In addition to the 
allowance authorized in 2012. 3A. 

Oualif ications for Single Piece Rule 

Type of Equipment "Not More per Passenger Than" 



of sporting equlp- 
nnal free baggage 



Bicycle 



Bowling 
Fishing 

Golfing 
Shooting-Pistols 

Shoot Ing-Rlfles 



Also applicable between the Continental USA and 
San Juan. One single seat touring or racing 
bicycle per customer, under the following 
conditions: 

a. That the handle bars are fixed sideways 
and pedals removed or inverted. 

b. That the bicycle be encased in a cardboard 
container. Form 0442-01898. (DL will 
provide the container free of charge.) 



One bowling ball, one bowling bag, 
of bowling shoes 



and one pair 



Two rods, one creel, one landing net, one pair 
of fishing boots (all properly encased), and one 
fishing tackle box 

One golf bag containing not more than: 14 golf 
clubs, 12 golf balls, and one pair of golf shoes 

One pistol case containing not more than: 5 pistols, 
5 pounds of ammunition, one pistol telescope, noise 
suppressors, small pistol tools 

One rifle case containing not more than: 2 rifles, 
with or without telescope, 5 pounds of ammunition, 
one shooting mat, noise suppressors, small rifle tools 



1241 



f^nV "4 1974 r>cuAAi.LiNf:. 

STANDARiJ PRACrsCi: 

q^:.lific;i-:icnc fcr Kln-lc ?i-c^ 
Type of Equipi.-.ent i\aiu "KoL More- i^cr r^. -'Conner Tiici." 

Shooting-Shotguns Two shotguns and t^-o shotgun cases 

NOTE: Gun cases are available at all FTO's for Delta pa 
(see 2012. b;. xjo noc soli Lhese g^a c^o^j ..u pi.o 
unless they are ticketed on Delta Air Lines. 
(Exception: Delta personnel) 

Skiing n.:c • -'- each of skiE, ski poles, ski 

lir..::i-.~3, and ski bocts 



Scuba 1 Rc-ii'ia Laiik (uiip ro.ssurized -^ less thar. IC J 

psi gaufj'e J-s consiaercQ unprGc^u^izcu} 
T Gciiba regulator 1 tank harness 

1 tsnl; -prossur-c- s^uga 1 mask 

2 fills 1 snorkel 

1 knife 1 speargun 

1 safety vest 

Surfboard Will be accepted free of charge in addition uo 

noi;Tiial iiee baggage ailovrariCe only bol:we'?r' •-"-■: 
continental US and San Juan P. R. The normal 
excess baggage charge will be applied on all 
other routes. (l-.Tien a surfboard exceeds 80 
dimensional inches, it must be treated as 
"baggage at airfreight rates") . 

Use the sporting equipment container (P/N 0442-01622) to check 
certain types of sporting equipment (e.g. skis, weapons) and 
unusually shaped items as checked baggage. 

International - Golf clubs may be checked on international flightr 
no outlined in Baggage Pailes Section of the International Air Tariff. 
Golfing equipment (in one golf bag) which does not weigh more than 
15 kilograms (33 pounds) may bo carried at the cI-b rge applicable to 
four- kilograms of excess baggage. The normal excess baggage vjcight 
charge will apply to the weight of golf equipment in excess of 15 kgs. 

NOTE: Between the continental US and Puerto Rico/Virgin Islandj, 
the domestic rules for checking golf equipment apply. 

E"ception: Tlio charges for golfing equipment weighing not more than 

Ij kilograms (33 pounds) wlien not included in the free baggage aliovjancc 

will be assessed as follows: 

Between And Amount in $ 

Cliicago /Detroit Jamaica $7.00 

Chicago/Detroit Nassau, Bahamas $5.00 



1242 



DELTA AIR IINES. INC. 

STANDARD PRACTIC[ 



These same charges (above) apply to skin diving equipment v.'cighin^ 
not more than 25 Icilograms (55 pounds) between these same point';. 

Diving equipment in excess of 25 kilograms (55 pounds) vill be aGSS3G3d 
the normal excess baggage charges. 



2012.8 GUN CASES 

As described in 2012.7, gun cases as checked baggage are jcctptod free cf 
charge in addition to thei normsl free baggage allo'.;nnce, I-as&engers rf^- 
quiring cases for their guns may purchase them from Delta. Admi-nistrrrivc 
procedures for the handling of gun cases at individual stations are listed 
in this section. 

A. Ordering Procedures - All domestic stations order gun cases (part 
#0442-02115) on a Field Purchase Order from: 

Doskocil Manufacturing Company 

P. 0. Box 1246 ' . 

Arlington, Texas 76010 

Attention: Ben Doskocil 

All international stations order gun cases from Material Services - 
Atlanta, using the following description: 

Job # Description Keyt-rord Unit of issue 

0221 Gun Case Container Each 

All stations establish and maintain a gun case stock level according; 
to their usqge. Order a raaxiraum 6-Tr.onth supplj' at each station. The 
station manager, or his designee, establishes and maintains the stock 
level. 

Charges and Reporting Procedures - All agents report the sale or trans- 
fer of a gun case to the appropriate supervisor at tlie tii.ie of the trans- 
action. Complete an Excess Baggage Ticket for all salec (s«e exar.i.ilr; en 
next psge) . 

The sales charge for a gun ■; is $21,00 plus local sales tax. 

NOTE: Until depleted, the existing gray gun cases will be 

sold for $15.00 plus local sales tax. All future gun 
cases will be the larger brown cases selling for $21.00. 



1243 



m 4 1974 



OCLTA AIR LIIJES, INC. 



STANDARD PRACTICE 



Excess BagRa^e Ticket Illustrating Sale of Gun Case 




'^ State Sales Tax [ 



Gun Case Inventory - Upon receipt of a gun case shipment from the 
supplier, the station manager, or his designee, verifies that the 
quantities received agree with the quantities ordered by checking 
the Field Purcliase Order (FPO) , The station manager (or his desig- 
nee) completes and maintains an inventory sheet for gun case stock 
by using a converted Ticket Inventory Sheet - Form 0412-70030, as 
illustrated below. Stations maintain a six-month file of all FPO's 
and Inventory Sheets. 

Upon receipt, lock gun cases in a secure area where access is con- 
trolled by the station manager or his designee. 

Illustration of Gun (Ticket) Inventory Sheet, Form 0412-70030 



(T)>g4t^li^VEflT0RY SIIEEI 



A 




67-378 O - 76 



1244 



DELTA AIR LINES. INC. 



STANDARD PRACTICE 



Ref, Explanation 

1. TICKET INVENTORY SHEET - Cross out the word "ticket" and enter 
"gun case". 

2. BOX NUMBER - Cross out the word "box" and enter "FPO". Enter the 
FPO number of the shipment for each gun case received. Cross out 
the "ticket number" columns. 

3. DATE RECEIVED - Directly adjacent to the first FPO number entry 
for that shipment enter the date on which the shipmcr.': is received 
and draw an arrow do^^m the number of lines in the "Box -Numbers" 
colvimn equaling the entries for that FPO number. 

4. DATE PLACED IN USE - After a gun case is sold, enuer the date oT 
the sale adjacent to the FPO number and Date Received entries for 
that gun case. 

5. REMARKS - Enter the name of the Delta agent making the sale. 



2019.9 PLASTIC GARMENT BAGS 

Place garment bags, which are not packaged to withstand normal handling, in" 
a Garment Bag Shipping Container (P/N 0442-01672). 

Since coatroom space is limited on all aircraft, it is desirable that passen- 
gers check plastic garment bags. Offer to accept garment bags as checked 
baggage. If the passenger expresses a desire to carry the garment bag on- 
board, allow him to do so. 

If passenger questions the possibility of damage to contents of checl:ed gar- 
ment bag, explain that such bags do not afford maximum protection and che 
contents may require pressing. (Excess valuation is available to cover 
damage to contents. See SP 2012.10). Wrinlcling of contents is not con- 
sidered damage. 

Plastic containers (0442-01614) should be used to transport garment bags and 
other similar sof tsided baggage to the baggage room. 



1245 



REMEMDER TO RECONFIRM YOUR INTERNATIONAL RESERVATIONS! 



reconfirmation: You 



reconfirm your 



:iurn rcservauons on an iniernaiional flight al 
scheduled departure if you break your jour- 



/ for more than 72 hours _. _ 
Upon arrival 



simply inform the airline al the city where you will board your 
continuing or return flight that you intend to use your reserva- 
tions. FAILURE TO RECONFmM BY THE REQUIRED TIME WILL RE- 
SULT IN THE CANCELLATION OF YOUR COMPLETE RESERVATION 
EVEN THOUGH YOU HOLD A TICKET. 



General Information 



OEPIRTUIICS. Passengers are re 
MINUTES tjefore sctieduied iJepa: 
UTES belore scheduled departure 



> at airport departure gates al LiAST : 
a domestic liiglit. and at LEAST 45 Ml 
ntetnalional IlighL 



Passengers ptesenting 

■ loie the sclieduled 

m will delay the III! 



■ RESPONSIBIUrY rOR DEPABIUBES, ABRIVAtS. CONNECIIONS. DeJIa^Ak L.nesji^l^nM 












williout notice. Schedules stiofl 


re,^uny«°ndronV'3e7ari5rys"yn/a5.™is''canlio't 


and other laclois maj allect 








BAGGAGE AUOWANCE 




|a| Domestic and U.S.A. — Ca 










gage allowance is Two 12) checked bags not to exceed 
















ght per piece - 70 pounds. 


(b) International — Fust das 


s 66 lbs, 130 kilograms) carried (rec^lor each luM^or 








o'er'amM''™rce''d°u«'lo°r eS''lull''or'''hall tare coach/ 




g portions ol travel in the USA. The term "baggage;' 






cles whether caiiieil In the 


ab.n or checked 'in the cargo compartment. 


(e) ticepllon via Delia betwe 


n conllnental U.S. or Canada and Bermuda, the Bj- 


hamas, or Jamaica: 




The baggage allowance Is on 


e checked bag (maximum weight 70 lbs.) not to exceed 


62 Inches in over-all lenglh 




not etceeding 4S Inches In o 








pa't^Mt'"?! 0a°g7age"e«ee s the amount stated In this exception, tin weight pro- 


visions under (b) will apply. 




EXCESS BAGGAGE may be acce 


pied, space and weight permitting. The tollowinj rates 




pe ol service used by the passenger. 


Domestic and U.S.A. — Onada/San Juan rates apply on a "per piece" basis when 


the number ol pieces or the sUe ol any piece exceeds the maximums described 






AdLlt let Coach 










S4.00 J200 01 to 280.00 « 8.00 


25.01 to 50.00 


5.00 2B0 01 to 350.00 9,00 


50 01 to 120 00 


6 00 over 350.00 10.00 


120 01 to 200.00 






(2 2 pounds). 




LIABILItT. Unless extra value 


Is dKlared and chaites paid before departure, llabil 






Domestic and U.S. ■ Su JuM: (500 or the actual value therof, whichever 


Inlernalional: J9.07 per 


pound or the actual value Ihereol, whichever Is less 




noer paragraph (c) above, $640 lor checked and $400 


foV"c'he"cke°d'baB'gagror 


(he actual value thereof, whichever is less. 



: DELAYED BAGC&CE — Passenget 



CHILORCH — DOMESTIC 



s, not occupying a s 
ssenger. EXCEPTION: 

t adult fare. Children 



Pdssengeis 
e. The resei 

BAGGAGE. PERSONAL EFFECTS. AND MERCHANDISE— IHTEBH 



ree.?EJtcfpT 



RESTRICTED ARTICLES 



8ACGACE — Medicinal 



i (FiammatJle, nor 



apiosivi 



Radioactive materials 
Other reslricled afticles (sui 
materials, ollensive or Irr 

IRICULTURAL RESTRICTIONS - 

IS contrary to req 
ch Adicies are al; 
!nt of Agilculture o 



irest U.S. Foreign C 



DOCUMENTS REQUIRED — INTERNATIONAL. Passengers must possess all vali 
ments (passports, visas, certificates, etc.) requited by taws ol the countrle 
over, or into which they fly. Consult nearest Delta Air Lines olMce. travel 3f 
Consulate of countries involved (or Inlormation. Delta will not be respons 
accuracy or adequacy of information supplied, nor lor any failure or Inabilit 



the U.S. A. /Canada, and must I 



if Camel's Tariff, If the flight 

senger and departs without him. he will be tendered liquidated 
generally will be the value of his first remaining flight coupon 
m of J200 00) unless lack of accorrmodalion is due to passenger's 



(our hours on international flights or unl 
or which he holds confirmed reserved space 
I in a section of the aircraft other than \ 



fare within the U.S.A./Canada. When travi 
those B thru 11 may travel alone without r 



Cities Where Service is Provided by ( 
Bar Harbor Me.; Berlin. N.H.; Laconi 
Barre, Vt.; Newport, Vt; Rockland, Me. 



CABLE ADDRESS: DelUir 



1246 



BAGGAGE TIPS 

We care about your baggage. You can help to 
handle it promptly and safely by following 
these simple tips. 

Attach a baggage identification label with your 

name or initials to the outside of each bag and a 

label with your complete name, address and 

phone number to the inside of each bag. Delta 

will gladly supply these labels upon request. 

Choose bags which will properly protect the 

contents to withstand normal handling. Avoid 

overpacking your bags. 

Never place money, cameras, binoculars, tape 

recorders, fragile or valuable items such as 

jewelry in luggage you plan to check. 

Carry medicines, passports or valuable papers in 

hand luggage. 

ALWAYS LOCK YOUR BAGGAGE. 

FREE BAGGAGE ALLOWANCE 
For domestic travel (not part of an international 
trip), two checked bags not to exceed 62 and 55 
inches respectively in overall measurements plus 
one or more carry-on items which will fit under 
your seat. 

For international travel, 66 lbs. (30 kilograms) 
for each first class ticket, or 44 lbs. (20 kilo- 
grams) for each economy ticket. 
Additional baggage may be checked at a nominal 
excess baggage charge. 

Wheelchairs are checked free and carried in the 
Cargo compartment. 



1247 



72. What security measures are taken at airport baggage claim areas to 
prevent baggage theft? 

Response: At all major air terminals where airport authorities and 

facilities permit (approximately 1/3 of our cities) "positive 
claims procedures" are employed through use of uniformed 
guards who match claim stubs with the strip tags before 
passenger may remove bag from claim area. 

\Jhere positive claims procedures are not feasible, uniformed 
Delta agents patrol bag claim areas for the purpose of 
monitoring bag claim procedures . 

All bags unclaimed within 20 minutes of flight arrival are 
removed to a secure area until claimed with appropriate 
baggage check. 



73. What are the procedures for the processing of claims regarding pilferage 
from a passenger's checked bag? 

Claims for pilferage are investigated by Delta personnel at passenger's destina- 
tion station and are then referred to the Delta system tracing center. The Delta 
Corporate Security Office conducts a thorough in-house investigation. 

The passenger submits a formal claim in writing and provides acceptable supporting 
documents before payment consideration is made. 



74. What is the average length of time required to settle a claim for lost or 
pilferred baggage? 

In general, a loss claim is handled within thirty (30) days Claims involving 
pilferage from bags are generally handled faster (average 14 days) because there 
is less tracing and investigative time involved once pilferage from a bag has 
been established. 



1248 



75. What are the procedures regarding the investigation of the validity of a 
claim? 

Passengers must submit a formal claim in writing (see Delta Standard Practice 
2047 attached to Response 53) which includes the signed claim form, photocopies 
of his ticket, claim checks and receipts or other proof of ownership for articles 
costing more than $100. 



76. What is the procedure used by the reservations staff to confirm requests 
for seats during periods when the computers are down? 



Delta's reservations staff continues to take reservations over the telephone 
during periods of computer breakdown on a "free sale" basis (as if space were 
available for all of those requesting same) — except that normally heavily booked 
flights are not "free sold" during such periods. The reservation information 
manually taken during periods of "free sale" are later booked into the computer. 

Delta maintains a "double" computer reservations system, with automatic switching 
from one computer bank to another in the event one of the two banks goes out. 
In addition. Delta operates a full standby electrical generating system of its 
own which immediately cuts in should public utility power cut off. Accordingly, 
there are relatively few periods during which Delta's computers are "down." 



l-fhat procedures are taken by the accounting staff to check the accuracy of 
rate computations and to refund any applicable overcharges to passengers? 



Response: See answers to Question 99 which answers both Questions 
77 and 99. 



1249 



78. What is the average lapse of time required to process refunds on uoused 
tickets, or to refund fare adjustments on partially used tickets? 



As a general rule we make immediate refund on the spot if the ticket is 
presented by the passenger to one of our local offices and the ticket is 
unused or partially used and has been purchased by cash or paid for by 
check and it has been verified that the check has cleared the bank. 

All other tickets in the unused or partially used category sent to Delta's 
revenue accounting department for processing are refunded on an average of 
from 3 to 5 work days after receipt. 



1250 



79. What percentage of passengers made arrangements for such services 
as car rentals or hotels through the carrier's reservations offices? 
What is the cost to the carrier of providing such services? 



Following information is based on data available for August, 
September, and October, 1974. 

Rental Cars 



Average rental car bookings per month - 

Avis/Hertz bookings - 15,389 
All others - 761 

Total - 16,150 



Average passengers boarded per month - 2,254,191 

Answer 

0.716% of passengers made arrangements for rental cars 
Tours/Hotel 
Based on same period as above 13,765 passengers booked tours. 

Answer 

We do not offer hotel arrangements except in conjunction with 
tour bookings. Our best estimate of the percent of passengers 
for whom we make hotel reservations is 0.611. 

We have no information on the amount of agent time required to 
handle these functions; therefore , we cannot give an estimate of 
the cost. 



1251 



80. Vlhat are the procedures for notifying passengers of schedule changes? 

Is automatic protection offered to the affected passengers on all flights 
which are cancelled as the result of a schedule change? 



Delta assumes this question does not refer to normal monthly schedule changes. 
Such pre-planned changes are automatically handled by the computer both as to 
necessity of moving passengers from a former to a newly scheduled flight time, 
and as to notification to the passenger. 

The question is therefore being answered in the context of day-to-day unplanned 
changes and cancellations. Delta bends every effort to contact every passenger 
who has a reservation on a flight which must be cancelled or spot-changed. -It 
is for this purpose that Delta attempts to obtain telephone contact numbers from, 
all passengers. Every passenger, however, does not provide a telephone contact, 
and it is thus impossible to reach some passengers. 

Automatic protection is offered to all passengers on flights which are cancelled, 
either on other Delta flights or, where that is not possible consistent with 
the provision of good service to the passenger, on flights of other airlines. 



1252 



81. What is the carrier's policy regarding the replacement of lost or stolen 

tickets? What is the policy regarding the refund of such a lost oi; stolen 
ticket? 



(1) Generally we do not replace lost or stolen tickets. As a rule we require 
the passenger to purchase a replacement ticket and we refund the ori- 
ginal ticket, after verification, at the replacement ticket value 

less $5 for handling. There are two instances where we issue replace- 
ment tickets at no charge under inhouse rules. 

(a) Where tickets are sold on a ticket-by-mail bases and 
the passenger advises he has not received, we will 
issue another ticket, blacklist the first and only 
require payment on one ticket. - 

(b) In situations where only a coupon is missing and the 
passenger's coupon is still intact and we can be 
reasonably assured that the missing coupon was pulled 
in error by a preceding station, we issue a new ticket 
and require the passenger sign a Lost Ticket Application. 

(2) Our policy regarding the refund of lost or stolen tickets is found in 
CAB 142 Local and Joint Passenger Rules Tariff Mo. PR-6 Rule 395 (c) . 
All lost ticket refunds are made from our General Office immediately 
upon receipt and after verification of a completed Lost Ticket Refund 
Application. All refunds are computed on the replacement ticket cost, 
less a $5 service charge. Immediate refund is made on the assumption 
that the passenger will reimburse us in the event we later determine 
the ticket to be used or refunded. 



1253 

82. What was the cost to the carrier during each of the past three years for 
the establishment, maintenance and personnel for any club or VIP lounges? 

Delta Air Lines does not operate clubs and VIP lounges such as those xiperated by 
some other airlines (e.g., American Airlines' Admirals Club, and TWA's Ambassador 
Club). Delta does maintain rooms at some airports which are available on a first- 
come, first-serve basis to any of Delta's passengers in need of such rooms. 
Generally these rooms are not staffed by specifically assigned personnel, but 
passengers instead are simply taken to the room by Delta's regular Station per- 
sonnel, and then left to take care of themselves. Most of the rooms are stocked 
with small supplies of beverages and snack foods. 

Delta's expenditures for the past three years to supply these various rooms around 
its system were as follows: (a) for the fiscal year ended June 30, 1972, $79,418;' 
(b) for the fiscal year ended June 30, 1973, $104,363; and (c) for the fiscal year 
ended June 30, 1974, $126,851. 



How many passengers were denied boarding on flights for 
which they had confirmed reservations or valid tickets 
(include no-recs) 72-October 1, 1974? 



Response; 



Note: In addition to the specific responses to Questions R3 - 89 
(and marked Submission 2) is a copy of exhibits filed by 
Delta Air Lines, in CAB Docket 26253, which contain data 
bearing on these questions. 



1254 



84. How many of these passengers were eligible for DBCi 
1972 - October 1, 1974? 



Response: 7,505 



85. HOW many of these passengers were not eligible for DBC 

because of equipment substitutions? 1972 - October 1, 1974? 



Response: 723 



16. Governme 



nt Requisition of Space? 1972 - October 1, 1974: 



Response: Zero 



87. Failure to meet check in or ticketing requirements? 
1972 - October 1, 1974? 



Response: Information not available. 



1255 



Carrier was able to rebook them on a flight scheduled to 
arrive within two hours of original flight? 1972 ^ 
October 1, 1974? 



Response: 5,992 



89, What was the total amount spent to pay DBC to passengers? 
1972 - October 1, 1974? 



Response: $598,402.00 



What percentage of passengers with conditional reserv^ations 
were upgraded to first class on the original flight? 
1972 - October 1, 1974? 



Response: Approximately 4.1% 



What percentage of passengers with conditional reservations 

were unable to board their original flight? 1972 - Oct. 1, 1974'; 



Response: Based on a two week sampling in April 1973 and in 

March 1974, 7.9% of the passengers with conditional 
reservations who showed up were unable to board 
their original flight; 

Note: 48% of the passengers who booked conditional 

reservations failed to show for their flights. 



1256 



92. Does the carrier offer conditional reservations, such as 
"Leisure Class?" 



Response: Yes, but Delta uses the phrase, "Pleasure Class" 
because Eastern Air Lines has registered the 
phrase, "Leisure Class" to describe this service. 
(Tariff Rule 66, PR-6, C.A.B. No, 142) 



93. If a passenger holds a ticket with an "OK" status and the 

carrier has no record of the reservation, what procedure is 
followed in an oversale situation? How is such a passenger' 
boarding priority affected? Is denied boarding compensation 
offered? 



Response: a) In an oversale situation a passenger with an 
"OK" ticket is considered a confirmed pas- 
senger regardless of the fact that we do not 
have a record of his reservation. 

b) Such a passenger's boarding priority is in 
no way affected by the absence of a reser- 
vation record. 



Such passenger would be offered denied 
boarding compensation. 



1257 



94 



Describe the procedures dealing with bumping. Enclose 
copies of any manuals or the sets of instructions directed 
to employees dealing with a) bumping procedures, b) pro- 
cedures for dealing with bumping complaints, c) priorities 
set in determining whom to bump. 



Response: On the assumption that "bumping" means an 

oversale situation exists, the following order 
of removal or refusal applies: 

1. Delta employees traveling on passes, 

2. Employees of other carriers or agencies 
traveling on passes. 

3. Delta employees traveling on reduced rate 
tickets. 

4. Employees of other carriers or agencies 
traveling on reduced rate tickets. 

5. Where ticket of revenue passenger is lifted 
at the ticket counter, the last passenger 
to present himself for the flight. 

6. Where ticket of revenue passenger is lifted 
at the departure gate, the last passenger 
to present himself at the departure gate. 

Standard Practices 2074 and 2075 attached contain responses 
to sub-questions a) b) and c) above. 



1258 



DELTA AIR LINES, INC. 



^^ 2 ^ ^^^^ STANDARD PRACTICE 



OVERBOOKING /OVERSALE PROCEDURES 



CONTENTS 

Purpose 2074.1 

Definitions . „ 2074.2 

Reservations Action .- -. 2074.3 

FTO Action 2074.4 

Order of Removal or Refusal 2074,5 

Suggested Handling of Refused Passenger 2074.6 

Removal of Oversold Passenger (s) From Aircraft . . . 2074.7 

Oversold Passenger Report, Form 0412-70666 2074.8 

Problem Flights . 2074.9 



2074.1 PURPOSE 

The ACP (Authorized Control Percentage) overbooking system is an important 
part of the Deltamatic Reservations System. This standard practice outlines 
the procedures for preventing, handling, and reporting oversales resulting 
from the overbooking system. 



2074.2 DEFINITIONS 

A. Overbooking - Booking of space on a specific flight in excess of the 
seating capacity of the aircraft or the specific section of a dual 
class aircraft. 



Oversold Passenger - A passenger holding a confirmed ticket for reserved 
space who is not accommodated on his flight after complying with check-in 
requirements. 



2074.3 RESERVATIONS ACTION 

A. Processing "US" and Overbooking Advice Messages - When the computer re- 
ceives a sale within eight days of departure for a class of service that 
is already sold out, it accepts the transaction and sends an Overbooking 



1259 



DELTA AIR LINES, INC. 

STANDARD PRACTICE 

Advice message if the overbooking occurs in first class, or if total over- 
bookings exceed four in tourist class. If the Overbooking Advice message 
is generated by another carrier, with which Delta has not entered into a 
free sale agreement and cannot accept the sale, a US message is required. 
See SP 3230 and 3240 for handling of these transactions. 

B. Overbooking Recaps - Reservations Control daily requests Overbooking Recaps 
for 20, 25, and 30 days from the request date and notifies the local 
reservations offices of potential problem flights. 

Local reservations offices request an Overbooking Recap each night for 
flight departures on 1, 2, 5, 10, and 15 days from the retjuest date. 

C. Advanced Handling of an Overbooked Flight - Reservations Control monitors 
next day flights to assure overbookings are within lOZ of total capacity. 
Any overbookings exceeding 10% of a flight's total capacity are assigned 

to the local reservations offices in line of flight to clear. When advise- 
. able, feed-In cities are assigned seats to clear. 

Reservations Control monitors specified future date flights, reduces the 
ACP to zero if deemed advisable, and notifies local reservations offices 
of potential problem flights. 

When, through a message from Reservations Control or an Overbooking Advice 
Message or an Overbooking Recap, a flight is known to be overbooked more 
than 10% of the total capacity, the reservations office refers to the 
flight history records maintained in accordance with 2074. 8C and 2074.9 
to determine its ability to absorb overbookings. 

If no record exists for the flight in question, the local reservations 
supervisor contacts the FTC supervisor at the boarding station to deter- 
mine the flight's' ability to absorb overbookings. 

If, in the opinion of the reservations office and the FTO, the level of 

overbookings represents a potential oversale problem, the reservations 

office should firm the flight for duplicate bookings, expired time limits, 
uttticketed passengers, etc. 

If after firming, the status of the flight is still beyond the level of 
overbookings that the flight will normally absorb, the local reservations 
office books protective reservations on alternate flights. 

D. Order of Rerouting by Reservations - When an overbooking situation 
warrants passengers being called and rerouted, following is the usual 
order of preference for rerouting considerations: 

1. Nonrevenue Positive Space (NRPS) 

Delta employee (if on urgent company business, a passenger may 
elect to maintain his "HK" status) 
Employees of other carrier or agency 

2. Reduced-Rate 

Delta employee 



1260 



DELTA AIR LINES. INC. 

'■'' '' '''' STANDARD PRACTICE 

Employee of other carrier or agency 
3. Local Boarding Revenue Passengers 
Unticketed 
Ticketed 



(If necessary to' remove local boarding revenue passengers, dis- 
play the PNR's and select passengers to be rerouted 
according to the date reservations were made.) 

4. Interline or On-Line Connecting Passenger - Advise the office 
in control by the most expeditious means. 



5. Through Passengers - Advise the office in control by the 
most expeditious means. 

In rvoi->- cnne, attempt to avoid rerouting of unaccompanied minors, 
stretcher cases, invalids, very old persons, or mothers with small 
children. 



2074.4 FTP ACTION 

When a flight is manifested as overbooked, the field ticket office advises 
the appropriate ticket/gate personnel to ensure that sufficient experienced 
personnel are available to handle the overbooked situation. Uhen necessary, 
ticket/gate personnel remove passengers or refuse boarding in accordance with 
2074.5. On flights providing cocktail service, ticket/gate personnel advise 
stewardess of all downgraded passengers for whom drink charges are to be waived. 



2074.5 ORDER OF REMOVAL OR REFUSAL 

The order of removal or refusal is as follows: 

A. NRPS 

1. Delta employee (if on urgent company business, passenger may elect 
to remain on board) 

2. Employees of other carrier oi: agency 

B. Refluced-Rate 

1. Delta employee 

2. Employees of other carrier or agency 

C. Other Passengers 

1. Where ticket is lifr.ed at counter, the last nassenger to present 
himself for boarding. 



1261 



vSLTA A!R ^/C';, INC. 



TAivJDARD rP.ACTIC£ 



2. .Chere ticket is ij.ltcu a c 
seli ior Loirdi-ig. 



f..ifc IsL'. patiKdr^;. 



NOTE; Board imaccompanii^I criildreii, tcreCchc 
people, or iriotlitr;; witli very /oun^ oiii 
blMtv -f rt-iioval in tlic; ev.'iir of an c 



T. j'. irsii '.o civoic ;j(,-ssi- 
>j:\..d Lli"':::. 



2074.6 SL'GGESTED H-A.NCI.IMr, Ur REFUSED VkSSEHCH.?. 

When posuiole, alrsct reuiDved passenger cc i-. priv.it'-; -ji'lice- .-r at lei.jt to 
a location a^ay fr'Jtn the general public. Give zhc pcsser.j.'r a o-py .:f Form 
0412-70474, NDtice Concerning Deniid ■^lardii'g Cv)!.n?dns;.(tion, and ..cv.iC him 
honestly. "We are. uxtremely sorry, but there i-.dS bean an firror i.nv. we do 
not have, a seat available en jhir flij-Ht." .Then iraiue'.iia- t^y adv.i'e i-ny re;oin- 
tnendaticns to;" an alternate routing. Do net i:/.v>i the po-S'-.rr.^er any expla- 
nation HI writing ainci such explanati.m would -jC'tOLoly be i-iac'.:urate pending 
a detail.jc investiriation. 
Illustr; cion oj" For.ni 041:2-70474 











II'.'POK' 


^ VM i 








"" 


' 


The 


i&suirxe 


cf Ci 


ce or I 


cduc.-d-r 


-re tvan 


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j 


sons 


other ci 


lan tl 


ose ELI 


GlliLi: un 


er DEl^T 


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REGLI.-. 


rroMS 


1 


(set 


:i? 1G14 


.•-s J 


LLECAL 


and FORK 


iDDEK. 


rhera 


or 


;, an ^ 




1 


sole- 


^^ssengcr ma_ 


not be 


given d 


"free ; 


ickeu 


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past 


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e 


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tioii 


under y 


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ccb-. 















NOTlCIi CONCERNING DENIED BO.^RD;NG CO-Mt" ENS.'iTION 

Tarilis u\^tl by th.s can ir with M.c Ci.i. .\.-roii^:niCs liojrd provwe -leiiicc bjard:ng toniptii-jlion ;^ .. i.j^sc;.gcr holding | 
connnni-d reserved space where thv.- Oight fur whicn the pa'.sc:iger holds such iux.i: is un.iblc to a'-comrnoi;;;:^ nun a.id departs 
without nim. 

Passengers chtiLit fo: oeiiiOG 'hoarding coni;.ier.saiion shall D.- cornp-.'n-aied av the rate o" 100 per cora (.: •.-.e vaiue of llie I'irst 
remainir.g (liglit coupor lin their tickets wi'.h a S200.00 njjximuifi a.-ic :. S:5.U0 mini.T.ii.t' i, 'he ;a-,c -ji t:ckeij J)aid for in 
(Jnittd States currency, oi aii equivalent a;nciin<. subject to local CLr.'.ncy la.vs a.;d reguLli.-.ns. lor t.t.::..:. paiQ lor in other 
than 'Jniied Siaies cur:eric,, al 'he opl.on c lue carric., ,p,A) the -Circ;:.}' olpjynic,:: ol At ticket o''Uy the currcncv of 
the couniryinvvl-.ich .he pj>seiiger is denied l/OjtJmf. Hie cir'ier is aquuej lu •.e.iuer lu eacli sucii p.;.L.cni:,'.r. on the day and 
place tlie denied Doarding itcca-i. a draft in the :.mourit spcciied above which, .f endoisiO and paid ( w.iilp 30 days, ut mote. f 
as petniitted by tne draltj siiaJl relieve the carrier from '.laodily lor all clams ''or damag •■. winch ir.ighi a- ;je lo the passenger I 
as a result of the carrier's failure to proviae trie passenger with space on 'iie Hit-i-.t in cjjestior. Wii;rc. .;cwcver. the carrier | 
ananges, for the passengei's convenicn.e. alieinate means of transporiatio.i wii:ch acpar's before th: . -ft c^n be prepared I 
and tendered the passenger, tender wiU be made by mail oi other means witlun 24 liouis alter the tunc tiie denied boardmol 



occurs. 



r.over) 



1262 



DELTA AIR LINES. INC 

JUN 5 1972 

STANDARD PRACTICE 



In order to qualify for such compensation, a passenger must have complied fully with the carrier's requirements as to ticiceiing, 
check-in, and reconfumation procedures and be acceptable for transportation under the carrier's tariff. However, a passenger 
is not eligible for compensation if the flight for wliich the passenger holds confirmed reserved space is unable to accommodate 
him because of Government requisition of space or substitution of equipment of lesser capacity for operational and/or safety 
reasons; the carrier arranges for comparable air transportation^ or for other transportation accepted (i.e., used) by the passenger 
which, at the time either such arrangement is made, is planned to arrive at the airport^ of the passenger's next stopover or, if 
none, at the airport^ of his destination earlier than, or not later than two hours after, the time the direct or connecting Oight, 
on which conlirmed reserved space is held, is planned to arrive in the case of interstate? and overseas air transportation, or 
foQr hours after such time in the case of foreign air transportation; or the passenger is accommodated on the flight for which 
he holds confirmed reserved space, but is offered accommodations or is seated in a section of the aircraft other than that 
specified in his ticket at no extra charge: Provided, that a passenger seated in a section for which a lower fare is charged shall 
be entitled to an appropriate refund. 

Delta Air Lines, Inc. 
Atlanta. Georgia 30320 

1 "Comparable air transportation" means transportation provided by air caniers or foreign air carriers holding certificates 
of public convenience and necessity or foreign permits issued by the Board. 

2 "Airport" means the airport at which the direct or connecting night, on which the passenger holds confirmed resen-ed 
space, is planned to arrive or some other airport serving the same metropolitan area that is served by the former: Provided. 
That transportation to the other airport is accepted (i.e., used) by the passenger. 



2074.7 REMOVAL OF OVERSOLD PASSENGER (S) FROM AIRCRAFT 

When there are more persons aboard an aircraft than there are seats avail- 
able, use the utmost prudence and tact in removing any passenger. NEVER 
THREATEN TO CANCEL A FLIGHT TO CLEAR AN OVERSOLD CONDITION. The following 
approach is suggested: 

A. Check Tickets - Check all persons on board to verify that all hold 
confirmed tickets and valid boarding passes for this flight. Check 
lifted tickets to identify any nonrevenue, positive space, or industry 
discount passengers. 



2« Select Passenger - Select a passenger in accordance with 2074. 5A or 
2074. 5B. If there are no passengers in those categories, then contact 
the passenger who does not have a seat. 



Request Stewardess to Contact Passenger - Stewardesses should ask 
passenger to check with the agent at the door of the aircraft. 



Offer Alternate Routings Available and Expenses - Offer the passenger 
alternate routings available and reasonable expenses* until he is accom- 



1263 



DELTA AIR LINES, INC. 

STANDARD PRACTICE 

modated. When possible, make all arrangements for alternate transporta- 
tion and/or hotel reservations beforehand. 

♦Reasonable expenses include any or all of the following when necessary: 
Ground transportation, meals, hotel, telephone calls and/or telegrams, 
and denied boarding compensation (see SP 2075). 

E. Make PA Announcement - If contacted passenger refuses to deplane, ap- 
proach other passengers in an effort to secure volunteers as circum- 
stances warrant. If still unable to influence the required number of 
passengers to deplane, AS A LAST RESORT a qualified agent -will announce 
Co all passengers: 

"May I have your attention, please. We are sorry, but due to a dis- 
crepancy in our inventory record, we have boarded (number) more passen- 
gers than we are permitted to carry. 

Federal Regulations prevent Delta from operating any. flight with 
more passengers than the seating capacity of the airplane. We 
regret that this flight cannot depart until (number) passenger(s') 
deplane. 

Any passenger who will voluntarily deplane will be Delta's guest un- 
til acceptable alternate transportation can be arranged. If there 
Is anyone on board who can conveniently change his plans, please 
check with the agent at the entrance of the aircraft." 

F. Make Final Announcement - If no passenger(s) respond to the first an- 
nouncement within a reasonable time, the agent will make the following 
announcement . 

"May I have your attention, please. While we deeply regret the 
delay, this flight cannot depart until (number) passenger(s) de- 
plane. Delta will assume all reasonable expenses until we can 
arrange alternate transportation for anyone who will leave the 
aircraft. Meanwhile, we have no alternative but to delay this 
flight until (number) passenger (s) do deplane." 

Make no further announcements. 

G. Length of Delay - Delay the flight until the required nutriber of pas- 
sengers deplane or until other instructions are received from Flight 
Control. 

DO NOT ATTEMPT TO USE A LAW ENFORCEMENT OFFICER 

TO REMOVE OVERSOLD PASSENGERS. 

Be sure to keep Flight Control and other stations in line of flight 
advised of the delay. 

When a delay due to an oversale extends beyond one hour, contact 
Flight Control for instructions. Flight Control will advise whether 
to continue the delay, or will give instructions as to the disposition 
of the flight. 



1264 



JllN 2 4 1974 



DELTA AIR LINES, INC 



STANDARD PRACTICE 

2074.8 OVERSOLD PASSENGER REPORT. FORM 0412-70666 

When a flight luecessltates a dovmgrade or denied boarding , the agent work- 
ing the flight completes an Oversold Passenger Report, Form 0412-70666. 

A, Illustration of the Oversold Passenger Report. Form 0412-70666 



OVERSOLD PASSENGER REPORT 





TO 1 ATLHCDL TJiH BADL (W\ 


FROM XtaH TRDL ^~^ 




FLT/OATt 1 fJLiA>ZP.UU W r^ 


NUMEROFPASSfNCERS | DOWNGHAOEO Jd UPGRADED <^ ^<!J DENIED BOABOING F C? H 3 






FiOOMOHEPASSENGEHSAREOOWNORADED/ (t^L, 

JENIEOBOAROINO. COMPLETE: ^ HO - SHOWS V. » ^ -^ NO - RECORDS 




SECTION > COMPLETE INFORMATION IN THIS SECTION ONL* FOR PASSENGERS DOWNGRADED OR 


L":;r-, 




DENIED BOARDING. 


?r;r, 


«,«, S:^e.x n^ hc^Kc.. ® 








i 


1 

I 




ri.ylie^ :^.tJ- U/*W,»)- ?^3y U/ BiK..< RJ I-Itu.-I^l/ r« 








^,,.^^ LJ.ii^,^ i<7 t^/ (l^M,...- ti F,..Te.^. /ii.s\<-r:>'97/aAu^r 


X 






- 


H^yrf UArnck .ii'c;'/ C^>ei■kv; U i\Jks lev DLic'o /rPAuc- 






X 


IL,l»irf+ T Tu«kJU/P ■^jyf^ci.s+Al,. Ucl^ //^as-A.-'^.' /^/4 %/<r'/^<P.'iU^ 


X 


























- 


















- 


























_ 


- 






















_ 







1265 



DELTA AIR LINES. INC. 

STANDARD PRACTICE 

REF. EXPLANATION 

1. TO FROM - Enter the appropriate teletype addresses. The message is 
addressed to local Reservations manager in addition to Reservations Control. 

2. FLT/DATE - Enter the flight number and date. 

3. NUMBER OF PASSENGERS - Enter the number of passengers who arc up- 
graded, downgraded, or denied boarding (in either first class or 

tourist class). Do not include passengers holding conditional reservations 
or passengers refused passage because of 10-minute check-in rule. 

4. FLIGHT ORIGINALLY MANIFESTED - Within one hour of departure, deter- 
mine number of seats over or available and enter data in the applicable 
category (over or available) - strike the inapplicable category. If flight 
Is even, strike the OVER category and place a zero(s) in the appropriate 
AVAILABLE category. Any protection seats held and any desiring throughs 
must be subtracted from the manifest count. 

5. UNUSUAL CIRCUMSTANCES - Strike the inapplicable .categories (govern- 
ment requisition of space or equipment substitution), if the oversale 
was not the result of an unusual circumstance. 

6. NO -SHOWS /NO -RECORDS - Enter only when five or more persons are 
denied boarding and/or downgraded on a flight. Include the number of 
No-show Passengers and the number of No-record Passengers in the appro- 
priate space on the Oversold Passenger Report. 

ATLRCDL DALRADL 

.DALTRDL 

OVERSOLD PASSENGER MESSAGE 

728/23NOV 

DOWNGRADED UPGRADED DENIED BOARDING FO Yl 

MANIFESTED OVER F 1 Y 7 

7. PASSENGER NAMES, ADDRESSES AND REROUTING/DISPOSITION - Print legibly 
the names and addresses of passengers downgraded or denied space plus any 

I additional information deemed advisable, e.g. , President of Coca Cola. Erter 
I rerouting information of passengers denied boarding. Do not force passengers 
to reveal names and addresses. 

B. Routing of the Oversold Passenger Report - The gate agent forwards the 
completed report to the station's teletype operator for transmission to 
Reservations Control and the local reservations manager. 

After transmission of the Oversold Passenger Message, the teletype 
operator forwards all reports to the PTO Supervisor for compilation of 
data required locally. 

The FTO supervisor forwards all Oversold Passenger Reports to Customer 
Relations, Department 760, ATL via company mail. Forward a copy of 
each Oversold Passenger Report to the appropriate District hterketing 
office for the area in which the passenger resides. 



APP 1 5 1974 



1266 



DELTA AlP. LINES, INC. 



STANDARD PRACTICE 



C. Reservations Action - The local reservations office records the 
teletyped information on Form 0412-70674 and uses the information 
in making judgments concerning advanced handling of potential over- 
sale flights (see 2074. 3C). Separate sheets are maintained for 
each departure city. 




REF. EXPLANATION 



1. Number of bookings manifested over (-4) or available (+) in 
first class. 



2. Number of bookings manifested over (-) or available (46) 
tourist. 



3. Number of passengers upgraded (U) , downgraded (D) or denied 
boarding (DB). 



1267 

DELTA AIR LINES, INC. 

STANDARD PRACTICE 

D Syste m Manager - Reservation Control - The System Manager ^ 

Reservation Control records the teletyped information and uses It 
to identify and monitor problem flights. 

E. Customer Relations Action - The Customer Relations Department reviews 
all Oversold Passenger Reports, takes appropriate action, when necessary, 
and files the reports for reference during passenger complaint research. 

F, Local Marketing Office Action - On receipt of an Oversold Passenger 
Report, the local marketing manager contacts the passeng^r(s) listed in 
his sales area. The contact can be made in person, by telephone, or by 
letter. 

2074.9 PROBLEM FLIGHTS 

A. Definition - Problem Flight - A flight which records an oversold pas- 
senger (s) three or more times in one month. 

B, Handling Problem Flights - When a problem flight is detected, the 
System Manager - Reservations Control may contact the appropriate FTO and 
request a seven-day survey of the flight to determine all or part of 

the foUowlng information: 

Number of Pas&engers Booked to Board Minus any Protection 
' Seats 

Number of No- shows 

Number of Mlsconnects - Online/Interline 

Number of No-records 

Number of Revenue Standbys Boarded 

Total Boardings Including Revenue Standbys 

Number of Denied Boardings 

Unusual Circumstances (equipment substitution, flight delay, etc.) 

The FTO reports the above information to ATLRCDL via teletype. The reported 
information is used to calculate the no show/no record rate. 

The local reservations manager is advised as to the standard no-show/no-record 
rate to be anticipated for the problem flight. The reservations manager then 
endeavors to maintain manifested overbookings within this rate until a deter- 
ioration in flight load is detected. In this event, the manager requests a 
re-evaluation of the flight. 



1268 



95. How many complaints were received regarding schedul^e 
irregularities? 1972 - October 1, 1974? 



Response: 5,525 



96 What was the cost of providing amenities to delayed passengers 
(food, hotels, etc.)? 1972-October 1, 1974? 

Interrupted 

Trips 

Expense 

Year Ended 12-31-72 $1,333,317 

Year Ended 12-31-73 $2,612,024 

Nine Months Ended 9-30-74 $2,223,413 



1269 



97. What is the procedure for getting flight status information 
from aircraft, to Operations, to computer, to Reservations 
and other personnel responsible for giving flight informa- 
tion to the public? 



Response: Each Operations, and Field Ticket Office main- 
tains a flight progress/information board. Our 
central Flight Control Office inserts flight 
information into a computer which immediately 
transmits this information to all Operations, 
Reservations, and Field Ticket Offices. The 
transmitted information is immediately posted 
on the flight progress/information boards. 
Reservations and City Ticket Offices also have 
immediate access to this information via their 
computer agent sets. 



1270 



98. What is the procedure for notifying delayed passengers of 
the availability of amenities? 



Response: The agent in charge or a Passenger Service Agent 
gathers the affected passengers together at one 
specific location, usually via a public address 
system announcement. The exact location will 
depend upon the facilities available at the 
particular airport (e.g., special service 
counter, information counter, departure hold 
room, group room, etc.). The Passenger Service 
Agent will then announce the amenities available 
in accordance with Tariff Rule 380, PR-6, C.A-B. 
No. 142. 



1271 



C.T.( (A) NO. 53 C. A.B. NO.M2 



Alrllat Tariff Piibli>li«ri. Inc., Aqanf 

lOCAL AND JOINT PASSENGER RULES TARIFf NO. PR-6 



SECTION VII— REFUNDS AND REROUTING 



ULURE TO OPERATE ON SCHEDULE OR F* imRE TO CARRV 



s) (Continued) 



«ITIE5, SERVICES FOR 



PASSENGERS (Con 



(7) rvia DLlor EA 



engcr held a confl 



(2) Compllmentar 



of flight interrupti 



24 bours and 



nlgbt's lodging. 



phone call bet 



and Canada. 



Canada, vi 



rty of the delay. 



NOTE 2: DL i 



ler subparagraphs (1)^(2) 
Liable amenities when a dc 



380(0) (7) «111 apply 
engers have been cleared for boarding 
visions ofRule 380(G)(6) will appl 



unexplained hereon, s'-e Page 



ISSUED: NOVEMBER 1, 197 



1272 



99. List the steps taken by your airline in the last two years to simplify tariff 
construction and to protect the consumer against overcharges. (Note that 
Consumers Union reported in a recent survey that because of tariff complexities 
consumers are often overcharged. What steps has your airline taken since the 
publication of that survey to prevent overcharges?) 

We first respond to Question 99. In the last several years, Delta has taken and is 
taking the following steps to simplify fare quotations. 

(a) Delta and the industry have already published literally thousands of additional 
joint fares which eliminate potential errors in the construction of joint fares 
if they were not published as a single factor fare. In addition, within the 
next few months. Delta and the industry will publish additional thousands of 
single factor joint fares. 

(b) Delta has a computer automated fare quotation and ticket issuance program. 

At the present time, our computer contains between 85-90% of all of the fares 
that our employees use in handling our customers on a day-to-day basis. The 
fares in our computer are checked and double-checked by specialists to eliminate 
any errors. Delta is continuously expanding this program so that even a larger 
percentage of the fares used on a day-to-day basis will be in the computer. 
The value of this program is that only approximately 10% of the fares used 
must be manually constructed as all of the other fares are contained in the 
computer . 

(c) Delta is one of the leading advocates for the publishing of a joint commuter 
tariff. If Delta is successful in having this industry tariff published, it 
will result in a wider dissemination of joint commuter fares with a consequent 
reduction in errors and would be beneficial to the public, commuter airlines 
and to the certificated carriers. 

Shortly following the 1972 Consumers Union article, the Civil Aeronautics Board 
queried the nation's airlines concerning their procedures for insuring accurate 
fare quotations. A copy of that CAB letter, and Delta's response thereto, is attached 
hereto. As Delta's letter indicates, it has developed a very comprehensive computer- 
ized program for fare quotations which eliminates much of the human error that 
has caused misquotations in the past and which insures a high degree of accuracy. 
The letter also describes Delta's electronics reservations system, and the recurrent 
training which is given to Delta reservations and ticket agents to insure accurate 
reservations and fare quotation procedures. In the latter connection, cross-reference 
is made to Delta's simultaneous response to the Committee's Question No. 100(f), 
in connection with which Delta has given the Committee copies of its most current 
training manuals. As those manuals indicate. Delta has gone to extensive efforts 
to give full training to all reservations and ticket agents, and continually updates 
those training procedures. 



1273 



77. and 99. Continued 

Delta's attached 1972 letter to the CAB also describes the work which Delta has 
done with travel agents, to be sure that they correctly quote fares. In this 
connection, it should be noted that the airlines have recently sought and been 
granted permission by the CAB to discuss the possible implementation of an industry- 
wide computerized reservations system for use by travel agents, which would further 
insure accuracy in their quotations (CAB Docket 27071). 

The enclosed 1972 letter also describes Delta's post audit procedures for searching 
out those few errors which might still be made despite Delta's many, carefully 
devised procedures for avoiding error. Finally, the letter contains the results 
of a survey conducted during April of 1972, in response to the CAB's inquiry. 

The 1972 letter to CAB also answers Question No. 77. The procedures there described 
are still in effect. 




1274 



CIVIL AERONAUTICS BOARD "-^T^ ^ ^ 

WASHINGTON. D.C. 20428 IN RO^LV RSFERTO: B-1-53 

April 19, 1972 /IA 



V' 




///■ 



AIR MAIL 

Mr. W. T. Beebe 

President 

Delta Air Lines, Inc. 

Atlanta Airport 

Atlanta, Georgia 30320 

Dear Mr. Beebe: 

You are undoubtedly aware of the April 13, 1972 Consumers Union 
press conference on a May issue Consumer Reports article entitled, "How 
airlines overcharge on connecting flights." The Board is seriously 
concerned about the allegation that large numbers of passengers may be 
overcharged on connecting services. For that reason all U.S. scneduled 
route carriers are directed to investigate their practices and experience 
with respect to interline sales and to report promptly to the Board the 
results of that investigation and such corrective action as has been 
taken. 

Your investigation should cover each of the following specific 
points : 

a. What are the current carrier procedures for determining 
applicable interline fares from published tariffs? 

b. How are these instructions disseminated to carrier personnel 
and travel agents? 

c. What sources do ticket sellers and travel agents have at 
hand to determine applicable interline fares? 

d. What post audit procedures are followed to determine the 
accuracy of charges made and what action is taken with 
respect to over/under charges? 

e. What passenger records are retained after ticket sales in 
t- order to make such adjustments as may be necessary (name, 

address, telephone number)? 



1275 



f. Each carrier is directed to audit all tickets sold on 
any one weekday during the week of April 9-15, 1972 for 
one large hub point, one medium hub point, and one small 
h'ub poi'nF and to submit a report as follows: 

1. Total tickets sold. 

2. Total interline tickets sold. 

3. Total interline tickets sold at published 
joint fares and total sold at constructed fares. 

4. 'As among constructed fare interline tickets, 

determine number correct and number in error. (Of 
total constructed fares, indicate the number of 
fares constructed (1) by using a combination of 
fares of the same or different classes of service, 

(2) by using the more distant point concept, and 

(3) by determining the fares in accordance with 
Rule 85(D) of ATP CAB No. 142. Indicate the number 
of over/under charges by construction category and 
the average dollar amount of the over/under charges 
by construction category.) 

5. As to constructed fares found to be in error, state 
what corrective action has/will. be taken. 

6. Submit suggestions on what steps are contemplated 
or suggested to prevent recurrence of the kinds 
of errors found. 

7. Submit such other general comments on this problem 
as may be deemed pertinent. 

A final report should be submitted to the Board, attention Director, 
Bureau of Economics, by Mav 1. 197 2. 

In the interim, the Board believes the carriers will wish to assure 
the traveling public that they are considering corrective measures to 
insure that all passengers are charged tariff fares and that all claims 
.or requests for review of interline charges will be promptly handled. 



Sincerely, 



Chairman 



67-378 O - 76 - vol.2 - 42 



1276 



''Mx,\D)n.^^J^D. ADH^ F.-R[\:i[:^G, ObJC -.N.R.. orr.ces. ATLANTA A.RPORT. ATLANTA. GCCRCA 303a 



Robert J. Shcrer, Director 
Bureau of Economics 
Civil Aeronautics Board 
Washington, D. C. 

Dear Mr. Sherer : 

This letter is in response to Chairman Bro\'me's letter to Mr. Beebe of April 19, 
1972, concerning the investigation by all U.S. scheduled air carriers of their 
interline sales. 

Delta respectfully requests t'lat this letter be given confidential treatment 
due to the fact that tliere are at ]-:ast two cases pending in the U. S. Federal 
District Courts involving claims for alleged overcharges by passengers against 
the U.S. scheduled air carriers. 

The answers set forth below are lettered and appear in tlic same sequence as the 
questions to which they relate are posed in the Chairman's letter. 

a. Delta is one of the few domestic carriers which has a fully operational 
computerized fare quotation and itinerary pricing system. This system 
assures the utmost accuracy in quoting joint fares. The data base of 
the comput'Br system contains all frequently requested interline fares, 
including all normal fares as well as the various types of discounted, 
excursion or combination fares where different classes of service are 
utilized on a single trip. In addition, the data base includes the so- 
called "hidden city" fares, where a fare is constructed over a city not 
on the actual itinerary, and the so-called "more distant point" fares. 
All fares entered into the system are constructed from the official 
tariffs by a small group of select tariff experts and are recliecked twice 
for accuracy before they are actually placed into the computer. 

Delta's computerized fare system consists of two principal functions: 

(1) "Fare quotation," v.'here appropriate on-line or interline fares 
(eitlier normal or discounted) between any two domestic cities can 
be displayed immediately; 

(2) "Itinerary pricing," which determines the appropriate on-line or 
interline fare for a specific itinerary. Wiere discounted faros are 
involved in the itinerary, the computer determines if all travel is 

on appropriate days, time of day, minimum and maximum stay restrictions, 
and so forth. In addition, itinerary pricing includes the effective 
and discontinuance dates of applicable fares. 



1277 



The Delta computerized fare system now includes over 5,000 fares which 

are instantly available to any reservations or ticket agent along with the 

Information as to how the fare was constructed. At the present time, 

approximately 87% of all itineraries requested are priced by the Delta 

computer. The remaining itineraries are so low in traffic volume that 

the cost of adding them to the computer base is not justified at this time. 

With the exception of four offices, every reservations and ticket office 

on the Delta system (approximately 207) is presently equipped with Deltamatic 

computerized equipment for access to all of the above-mentioned fare 

information. 

We think it significant to poim: out that in both cases where Consumer 
Union representatives requested joint fare information from Delta the 
information was given correctly. Both itineraries (New York to Tupelo, 
Mississippi and St. Louis to Albany, New York) are included in Delta's 
computerized fare system. We submit that this is evidence of the extremely 
high degree of accuracy that Delta's computerized fare system provides the 
traveling public. 

In addition to our computerized fare system, and as a backup thereto, each 
of Delta's 19 reservations office complexes has the following services: 

1. A rate desk staffed by fare experts whose primary duty is to 
research or construct fares which are not available in our computer; 

2. An international desk staffed by experts in international fares 
and routings; and 

3. A group desk staffed by experts in group fares and routings. 

All reservations complexes operate U hours a day, seven days a week, and 
can bo contacted immediately by direct lines from any of our ticket offices 
in the United States. In addition, every Delta reservations ticket office 
has copies of all the necessary tariffs, Official Airline Guide publications, 
tariff summary bulletins published by Delta's tariff department and Delta's 
Standard Practice manuals containing detailed procedures on fare construction 
and application. 

b. As set forth in the ansv;cr to a. above, all but four of Delta's 207 reserva- 
tions and ticket offices are equipped with Deltamatic agent sets which provide 
instant on-line and interline fare and fare construction information from the 
computer. Today, Delta has 1560 such sets in operation and expects to install 
an additional 141 sets during tlie remainder of calendar 1972. 

Delta has a detailed and continuing (including recurrent) training program 
for all its ticket and reservations agents, witli particular emphasis on the 
use of the Deltamatic equipment and tariff and fare instruction. Each new 



1278 



ticket or reservation agent is given a nrinimura of one weeks' initial instruc- 
tion in the operation of "Deltaniatic" (computer and computer related) equipment. 
Ticket agents are given prinary, intermediate and advanced formal training 
in ticketing and tariff natters at specific stages of their employment. This 
training is supplcncnted by local training instructors in all major cities 
who are also responsible for the training of personnel in smaller satellite 
cities immediately adjacent to the major city. 

Travel agents are invited to attend Delta's local training classes on a " 
time available basis' when such classes are conducted in their respective 
cities. 

Travel agents basically can secure fare information directly from the 
appropriate tariffs v.-iiich they are required to maintain and from builetinized 
information on special promotional fares provided from time to time by the 
scheduled carriers. In addition, the Air Transport Association provides 
each travel agent with a copy of "The Agent's Handbook" v/nich contains 
detailed ticketing instructions in addition to otner basic instructional 
information. Soize travel agents have elected to install teletype ticketing 
receivers v;hereby a ticket is prepared completely by the carrier and trans-, 
raitted via teletype directly to the office of the travel agent. 

Delta has encouraged all of its approved travel agents to call Delta direct 
to secure fare information from Delta's computerized fare system. An e::^r.ple 

of the type of encouragement Delta gives in this regard is shown by the 
attached transmittals from Delta's Assistant Manager-Agency Sales. 

As stated in the ans-.-.-ers to questions a. and b. above, all Delta ticket 
sellers and indirectly all Delta appr'jved travel agents have access to 
Delta's computerized fare system v;hich is capable of answering 87'; of all 
inquiries addressed to it. In addition, the tariffs, the tariff bulletins, 
infonriation bulletins. Official Airli n e Guide and periodicals relating thereto 
and locally prepared quick reference information are also available. In the 
event a question of an int.ivprctaticn of a particular tariff arises. Delta's 
tariff department staff in Atlanta is available to any Delta domestic office 
on the system via direct intra-company telephone network. 

Delta has as its optir.'jn objective a 10% sampling post audit procedure 
(samples selected by using the endin;; digit of serial nunber, wich the 
digit being chanced each montii) for cash, UATP and commercial credit cards. 
100/; of government TR's arc audited. Vorklo.id on Delta's revenue accounting 
department staff deterx.ines whether this optiniu.-n 10% objective is obtained 
on all post audits. 

Generally, Delta does 'U' ; l;;:ke any action with respect to an error in ticket 

charges unless the err-r --jj-jnts co $10 or more. In such cases, if 

the error is discovered i.\ .-. r.ickc-t which was charged to a U.ATP card, the 



1279 



charge is auConatically adjusted on the ;:harge form before billing, cither 
upward or do\/nv;ard. The sar.c is true with respect to coirunercial credit cards 
insofar as overcharges are made, but not undercharges. No upv.'ard adjustments 
are ever made to charges on commercial credit cards. An undercharge is 
normally handled by requesting tlio local selling office to obtain signed 
charge forms covering the amount of the undercharge. 

If there has been an undercharge on a cash ticket sale, Delta's revenue 
accounting departn^ent in Atlanta requests the selling office to furnish the 
passenger's nailing address and the request for the additional payment is 
made directly from Atlanta. On a cash overcharge the local office is 
requested to issue a refund directly to the passenger if he can be located. 

Passenger records , including address if available, are retained for 60 to 90 
days in Delta's computer. Normally, except in the case of tickets by nail, 
the telephone nuaber is the only record available for locating the passenger. 
If it develops that the telephone number which the passenger furnished Delta 
is a transient nunber, such as a local hotel or the like, and no other record 
is available for the passenger, the effort to collect undercharges at this 
time usually ceases, although, as in the case of an overcharge, the informa- 
tion available is put into an "Error Notice file" and the local office is 
asked to check local sources, such as the telephone directory, in an effort 
to locate tlie passenger. The Krror Notice file is particularly valuable if 
the passenger has been overcharged and later calls Delta to complain about 
this overcharge, as the information is maintained and readily available. 

II 
AUDIT APRIL 9-15, 1972 





Large 


Hub 


Medium Hub 


Small 


Hub 






Dallas 




Cincinnati 


Savannah 


Total 




565 




586 


187 




1338 




94 




93 


63 




250 


(Published) 


42 




62 


20 




124 


(Constructed) 


52 




31 


43 




126 


Constructed 














Fare Inter- 














line Tickets 















Ko. Correct 46 23 37 106 

No. In Error 6 8 6 20 



1^/ Delta (lo-2S not read the Chairn.ir.'s letter as intending the au-^it to inclu:;o 
tickets sold by travel agents during; the tine in question. Accordingly, 
the reported data does not include tickets sold by travel agents v.'hich 
will net, in any event, be in Delta's cusuody until sometime after May 1, 19/ 



1280 



f. 4. (Continued) 



TOTAL CONSTRUCTED FARES : 

(1) DGtermined by using a combination 
of fares of the same or different 
classes of service 97 



No. overcharges 5 

No. undercharges 10 



Average dollar amount 

of overcharges $3.8A 



Average dollar amount 

of undercharges $5.08 



(2) Determined by using distant 

point concept 29 



No. overcharges 4 

No. undercharges 1 



Average dollar amount 

of overcharges $5 . 04 



Average dollar amount 

of undercharges $6. AS 



(3) Determined in accordance with 

Rule 85(D) of ATP CAB No. 142 

No. over/undercharges . .NA 

Average dollar amount 

of over/undercharges .. .NA 

5. Delta will follow its policy and procedure outlined in d. and e. above. 

6. Delta is gratified by the fact that of the 126 constructed tickets examined 
during the audit which accounted for some $15,292 in sales, there v;ere total 
overcharges of only $39.37 or 0.26% of the total sales. Nevertheless, Delta 
intends to empliasize in its training classes, both initial and recurrent, 
the necessity of properly constructing the proper joint fare. Delta will 



1281 



continue its ongoing program of evaluating and improving its training tools 
and will pay particularly close attention to insuring that its ticket 
sellers are fully competent in the required skills for understanding and 
using the available data for computing joint fares. 

7. Delta has no general comments on the problem at this time. 

In response to the Chairman's closing paragraph, Delta intends in the 
immediate future to consult v;ith its advertising agency in order to work 
out a program of assuring tlie traveling public that corrective measures 
will be taken to insure tariff fares are being properly charged and claims 
or requests for review will be promptly handled. 

Very truly yours , 

DELTA AIR LINES, INC 



James W. Callison / 

Sidney F. Davis 



Attorneys for Delta Air Lines, Inc. 



1282 



L.:ry U'z-j I. z-i lJ /./—A 









C^ V / 



NEWS FROM AGENCY AND VACATION DEPARTMENT 



DELTA HAS SOMETHIMG NEW VllVA YOU IN MIND 






>^^ 



Delta Air Linos has developed an instant fares program witliin 



v at ions Cgmpu tgr__Sys tern, Deltamatic, which enables us to better serve 



tlie needs 



,ic travel a 



ii£n_t. 



"Itinerary Pricing" is a Deltamatic function designed to provide the 
fare applicable to most reservations for itineraries within the conti- 
nental limits of the United States. The computer will check for appli- 
cable special fares and will advise the lowest applicable fare, tax and 
total for each person and the total amount for the reservation. 

We will stand bcliind fares given Co you on all confirmed reservations, 
booked with Delta, which contain at lease one segment of Delta space be- 
ginning November 1, 1971. ,_ 

Next time s-ou cal l Delta to b o ok yo u r clien ts, sa ve yourself some_time - 
"ask for tlie fare" . 



For further information on this 
that calls on you. 



service, ask the Delta Professional 




Agency Sales 



HD/jr 
October, 1971 



1283 



EASTERN AIRLINES RESPONSES TO AIRLINE QUESTIONNAIRE 

^"subcommittee note. In response to the subcotimittee questionnaire. 

Eastern Airlines submitted the following narrative and extensive attach- 
ments consisting largely of undigested raw data. The relatively brief 
portions of the company's standard practice manual submitted to supple- 
ment t he answers to questions 53, 80,' 9 4, an d 98 are Included at the end 
of the narrative". Other attachments have been omitted, and are on file 
with the subconmittee.JT" 



Have you seriously considered lowea-ing fares on any major routas 
within the past five years? If so, did you file tariffs en-jbcdy^nt 
lower fares? (docket numbers'? ) If not, why not? Do current Board 
procedures inhibit or encourage the carriers to e-"perlment with 
lower rates? How? 

A. Decreases in normal adult full fares have not been considered. 
Fares have been lowered, however, in many cir crmstances: 

o Discount /excursion fares have been introdviced selectively 
by market; 

o Night coach services, at a 20% discount from corr^parable day 
coach, have been offered in many Eastern m.arkets and expanded 
over the past five years. These fares are available to every- 
one, contain no travel restrictions as to length of stay and, by 
increasing asset utilization, assist in lowering all fares; 

o Certain fares have been reduced inthe recent past pursuant to 
overall fare structure adjustments. 

a. All fares described above were embodied In lawful tariffs. 

b. Not applicable. 

c. Current regulatory practices encourage fare experimenlalior 
and decreases to the extent such adjustments do not burden, 
i.e., increase fares, for other classes of passengers. 

Do you support the type of "zone of reasonableness'' fare proposal 
advocated by DOT and COJ in Phase 9 of the DPFI? Do you believe 
such as zone would lead to lower fares? Why? 

A. Eastern does not suoport the "zone of reasonableness" ratemaking 
concept. The fact of the matter is that carriers have, and have 
always had, the freedom to adjust fares upward or downward sub- 
ject to provisions of the Act. The Board's responsibility is to 
ensure that rates are just and reasonable. Towards that end, 
overall costs, adjusted for DPI'I standards, are the basis upon 
which fares are established. 



t4% 


24% 


1% 


12% 


4% 


5% 



1284 



A. To the extent fares are reduced below tliat level on an ad hoc 
(Cont.) market basis, fares in other markets would have to be increased 
to assure full recovery of total economic costs. Additionally, 
lowered fares would inevitably result in asset redeployment into 
more profitable markets with a resviUant diminution of service 
to the public . 

3. List representative figures to indicate the approximate proportion of 
business and pleasure passengers you carry on a) transcontinental 
flights; b) major short haul routes; c) minor short haul routes; 
d) international routes. 

A. Survey Data (1973) indicated the following proportions: 
Feb May Aug Nov 

Business 50% 52% 41% 59% 

Vacation 36% 26% 

Personal 10% 14% 

Other 4% 8% 

The detail data collected in the survey was not designed to 
determine the approximate proportions by routes of travel. 

4. How do you determine the proper fare for a particular city pair? 
Who, within your organization makes this decision? What studies 
are made for use in making it? Have you studied the possible effects 
of increased fare competition on your fares, costs, and profits? 
Describe in detail the studies you have made, and their conclusions. 

■ A. Other than promotional fares such as those described in 1 above, 
fares are not established on a city-pair basis, but rather by 
C.A.B. rate-making entities (i.e. , Domestic 48-states , Mainland 
U.S.A. -Puerto Rico/Virgin Islands, Transborder U.S.A. -Canada, 
and International I.A.T.A. operations). Dr. Morton Ehrlich, 
Vice President - Planning, has responsibility for making this 
decision. 

With respect to domestic fares, the Board has developed a series 
of ratemaking standards in the DPFI designed to enable recoupment 
of reasonable economic costs while providing a rational and equitaljle 
ratemaking methodology. Ratemaking on an entity basis, rather 
than on an ad hoc market basis, ensures these goals while obviating 
the issue of undue preference and discrimination. 

a.b.c.d. Not applicable except to the extent that Eastern submits 
its costs to the Board periodically, as do all carriers, pursuant to 
C.A.B. regulations. These costs then serve as the basis for 
ratemaking. 



1285 



How many times during the past ten years have your company or 
competing airlines filed for fare increases? In which markets? 
How many times have you matched fare increases that the Board 
approved? In which markets? Has your airline, in circumstances 
where a competitor filed an application for a fare increase which 
was approved, felt pressure--formal or informal- -from the CAB or 
its staff to file for a similar fare increase? When? Describe. 
Has your airline felt pressure from other airlines to match an 
approved fare increase? Describe. 

A. a.b. See attached tariff history. 

c. No such pressure has ever been detected. 

d. No such pressure has ever been detected. 

Enclose a statement of your costs, revenues, gross profits, interest 
on debt, actual taxes paid, net return to equity, and load factors for 
your domestic routes, and for your international routes broken down 
by individual route insofar as possible for each year for the past ten 
years. (Indicate as v/ell those of your costs and profits that are attri- 
butable a) your charter operations; b) other non scheduled airline 
related activities; c) non airline activities) 

Include that same information for the nine months ending Sept. 30, 1974. 

Include that same information for the following routes. 1) all routes 
on which capacity restricting agreements have been made with other 
airlines; 2) those same routes prior to the time capacity restricting 
agreements took effect; 3) San Francisco/Los Angeles; 4) Boston/ 
New York; 5) Bostcn/Washington; 6) Washington/New York; 7) routes 
between the East Coast and Chicago; 8) transcontinental routes; 
9) North Atlantic routes. Provide information as to the traffic density 
of each of these routes. How would these figures change if the load 
factors on these routes averaged 55%? 60%? 65%? 70%? 

* where applica! 

A. See attachme:. ; for detail. 

Provide a stat: nen; of actual and predicated cash flow over the past 
five years. Pi -ide a statement of projected cash flow over the next 
five years. W! - load factors did you assume in arriving at the figures 
in these statemeit-s? How do the figures change assuming load factors 
of 55%? 60%? 6::%? 70%? 



1286 



Source and Application of Funds Summary - Five Yeai 
December 3 1 



Year Ended 



(000) 

Total 
1974 1973 1972 1971 1970 5 Years 

Increase 
(Decrease) in 
Working 
Capital (a) $12,072 $25,661 $(52, 419) $4, 350 $6,014 $(4,322) 

(a) See attached schedule 

8. List your purchases and leases of new airplanes made in the past five 
years. How much money have you invested in new airplanes during 
that time? What is the rate at which you depreciate those airplanes? 
How were these purchases financed? If they were financed by bond 
sales, list the amounts and dates on which these bonds fell due. 

A. See attached listing. 

9. Describe your existing outstanding contracts for the purchase of airplanes 
or other major items of equipment. Describe other such purchases that 
you plan over the next five years, which are not now covered by contracts. 

A. The company has outstanding commitments totaling approximately 
$237.7 million for the purchase of 10 Lockheed 1011 aircraft and 
related spares. In addition, the company has purchase orders for 
13 additional L-1011 aircraft, with cancellation options. 

The company has also exercised its option to purchase 10 currently 
leased DC-9-31 aircraft in 1975. Purchase will occur during the 
period January through June at a total cost of $10. 1 million. 

10. List the salaries, bonuses and any other compensation paid to the ten 
highest paid executives in your company for each year for the past 
five years . 

A. See attached listing. 



1287 



If your costs were to exceed your revenues each year for the next five 
years, by, say 5% or 10%, what steps would you take to avoid bankrviptcy? 
Cut salaries? Renegotiate contracts with unions? Postpone dates on 
which payments for aircraft are due? Other? Would you reorganize the 
company before going into bankruptcy? What would be the effect of 
bankruptcy on debt holders, equity holders, the traveling public? Would 
the company stay in business? Were payments on airplanes rescheduled 
or forgiven, would it be possible to stay in business? How much leeway, 
in terms of cashflow, would such rescheduling or forgiveness produce? 



A. Data not available. 

Do you believe the CAB ought, as its first pr 
possible bankruptcy by any major trunk carr; 
should the CAB give such a task a high priori 

A. Data not available. 



ority, to act to prevent a 
er? If not its first priority, 
ty? Under what conditions? 



13. Why, in your view, are the original trunk carriers - -those in business in 
1938--the only trunk carriers still in business? Why have no other firms 
in the aviation business become trunk carriers? 

A. Data not available. 

14. If the CAB were to set a definite policy of not allowing any fare increases 
in the next five years, what would you do? Would you disinvest in air- 
craft? How can you do this? Would demand catch up to your present 
fleet? When? Suppose the CAB cut fares by 10% or suppose fuel costs 
continue to Increase? 

A. Data not available. 

15. Normally, low profits are a signal to an industry that its investment is 
too large- -that it should disinvest. Is this "classical" statement 
applicable to the airline industry? If not, why not? 

A. Data not available. 

16. What major factors do you believe are responsible for the airline 
industry's low profit over the past few years? Do you believe that 
CAB policies contributed to, or offset, low profits? (Specify which 
policies and how.) 

A. Data not available. 



1288 



17. During a recent CAB proceeding an industry witness testified: "If a 
carrier were absolutely certain that the CAB would allow it to go 
bankrupt before it were given any relief, then I believe you would see 
some action taking place in eliminating marginal capacity (excess 
capacity)'.' Do you agree with this statement? Why? Do you believe 
that the CAB's load factor standards would be more effective in 
controlling load factors if the CAB were less concerned to prevent 
airline bankruptcy or reorganizations? 

A. Data not available. 

18. Are your costs higher than, equal to, or lower than the industry 
average? By how much? Why? 

A. Data not available. 

19. List your advertising, other promotion, and office rental costs, absolutely, 
and as a percentage of total costs, for each year for the past five years. 

A. See attached schedule. 

20. Assuming that all scheduled flights remain unchanged what is the 
additional cost of carrying one extra passenger on a flight? 

A. Data not available. 

21. Please answer tlie following questions in respect to each of the following 
markets: San Francisco/Hawaii, New York/Hawaii, New York/Los Angeles, 
New York/Atlanta, Chicago/New York, New York/Miami, Boston/ 
Washington: 

(a) What are your costs per flight, (1) determined on a "fully allocated" 
cost basis, (2) determined on a DOC basis (as used by the CAB), 

(3) determined on an "incremental cost" basis (what do you include in 
"incremental cost")? Determine these costs insofar as possible both 
on a ."seat -mile" basis and on an RPM basis . 

(b) What are you- load factors in each of those markets? 

A. Data not avai'.ble for San Francisco/Hawaii, New York/Hawaii, 
New York/Bo! ton. 

See attached exhibit. 



1289 



22. List the routes including international routes that you have applied for 
CAB permission to serve in the last five years. Indicate those routes 
where the CAB has granted permission. Indicate those where the CAB 
has denied permission. Indicate those where no action was taken by the 
CAB, along with the ultimate disposition of the application. As to each 
application, indicate the date of filing and the date of ultimate disposition 
along with the dates of any hearings held. Do you believe that Board 
actions on your route applications have generally been expeditious? If 
not, to what do you attribute the delay? 

A. Previously submitted. 

23. Are there routes which you would consider entering if CAB approval for 
entering were not required? Which? Describe your reasons for consider- 
ing entry to the extent you wish to do so. Does the CAB's entry policy 
inhibit your flying new routes? If so, describe how? 

A. Not available. 

24. Would you charge lower fares than those now being charged on any 
route if you were free to enter and to set lower fares? 

A. Data not available. 

25. Are you involved in any route purchase or exchange proceedings? Which 
routes? Involving which carriers? How much would you be willing to 
pay for each of such routes? Would fares be sufficient to cover purchase 
costs? In your view, should such purchases or exchanges be allowed 
without full comparative hearings? 

A. Not available. 

26. If you have excess capacity, can the extra planes be leased or sold 
elsewhere? At a loss? 

A. Data not available. 

27. Identify any routes which are certificated to you but on which service 

has been suspended. Do you have any present intention to resume service' 
When? Why were these services discontinued? Should other airlines 
be given the option of flying these routes? 

A. Chicago/New Orleans - Fuel crisis. 



1290 



28. List your fuel costs, in absolute terms, and as a percentage of your 
total costs, for 1972, 1973, and 1974, and projected for 1975. What 
has been the increase in cost per gallon during this period? 

A. See attached for detail. 

29. If you now serve the North Atlantic, provide the details of your costs, 
revenues and profits for any such service for the years from 1970 
through the present. What course of action will you follow if the 
government provides no relief in the form of subsidy or otherwise 

to alleviate current losses over these routes? If you do not now 
provide North Atlantic service, would you do so if entry were not 
regulated? 



30. 



A. Not applicable 



Compare your costs in the North Atlantic market with those on 
San Francisco/New York and New York/Los Angeles routes. 



A. Not applicable. 

31. If the CAB certificated a number of new trunk carriers over dense 
traffic routes, what effect would such certification have on the industry? 
On your company? 

A. Data not available. 

32. What would the effect of a "permissive" entry policy be upon the behavior 
of carriers in the industry? 

A. Data not available. 

33. If you serve markets entirely within California or entirely within Texas, 
have your flights within those states been profitable? Have they been 
profitable on a fully allocated cost basis? On a DOC basis (per CAB)? 
On an incremental cost basis? What do you include In Incremental 
costs? Have you met the fares charged by PSA and SWA? 

A. Not applicable. 

34. How do you decide how much capacity to offer in a market? What 
frequency of service to offer? Which markets to promote heavily? 
Who makes these decisions? 

A. Data not available. 



1291 



35. How many different classifications of inflight service do you provide? 
(How many different sorts of, e.g., first class service? How many 
different sorts of economy service, etc? ) 

A. There are only two classes of service on a flight -- first class 
and coach. Meal service will vary by time of day and length of 
flight. Coach service between San Juan and Boston/New York/ 
Philadelphia is called jet thrift. Nighttime service is called 
night coacli and deluze night coach. 

36. How do you decide on which routes and which flights to offer a particular 
classification of inflight service? Who makes these decisions? 

A. Not available. 

37. Could you operate as efficiently as you do now if your airline were twice 
its present size? Half its present size? 

a. With respect to fleet size? 

b. With respect to RPM's 

c. With respect to passengers enplaned? 

A. Data not available. 

38. In what ways and to what extent do a) CAB reporting requirements, 
b) CAB ticketing requirements, c) other CAB requirements impose 
costs on your operations? (e.g., preventing simplified passenger 
handling or accounting procedures)? 

A. (a) CAB reporting requirements are very extensive regarding 
financial and statistical data on a recurring basis, concerned 
with the submission of Form 41, All Cargo, and Military Air- 
lift Command reports. Submission of such data takes approximately 
four full-time analysts. This cost does not include the cost of 
magnetic tapes, punched cards, and hard copy material, utilized 
in such submissions. 

(b) The Board's requirements relative to ticketing fall into 
three (3) areas, Denied Boarding Compensation, Amenities/ 
Services for delayed passengers and security charges. 

Eastern has implemented Leisure Class Reservations to miniinize 
the exposure to overbookings and Denied Boarding Compensation 
(DBQ. This has resulted in improved ■•-■.ssenger service with 
essentially the same amount of worklo as DBC. 



-378 O - 76 - vol.2 - 43 



1292 



A. (b) (Cont.) - With regard to Amenities /Services for delayed 

passengers, this is an economic regulation of the CAB. However, 
in fact virtually all carriers, including Eastern, had provided 
amenities before the required tariff filing. 

The collection and reporting of security charges to the Board 
required system-wide changes in passenger ticketing and handling 
at airport offices. Additional accounting procedures are required 
to record and report these collections. 

39. Which CAB practices or procedures do you believe to be the most 
burdensome or least efficient? What recommendations for changes 
would you make? 

A. Data not available. 

40. How much money have you spent each year for the last five years on 
salaries, fees (including attorneys fees) and other costs related to 
CAB proceedings? How much money have you spent that is in any 
way attributable to Congressional lobbying? 

A. The attached CAB Form 41 Schedules G-43 reflect Eastern's 
total legal and professional expenses for the years indicated. 

41. What was the total number of passengers enplaned? 1972-October 1, 1974? 
A. See attached schedule. 

42. What was the total number of flights scheduled to operate? 1972- 
October 1, 1974? 

A. See attached schedule. 

43. What was the total number of flights actually operated? 1972-October 1, 1974' 
A. See attached schedule. 

44. How many persons with the primary duty of investigation or handling 
consumer problems did you employ? 1972-October 1, 1974? 

A. 1790 man months. 

45. What was the total number of comments recorded? 1972-October 1, 1974? 
A. 56, 848 (1972 - October 1, 1974) 



1293 

How many of these comments were complaints? 

A. 28, 987 (1972 - October 1, 1974) 

What was tlie budget for customer relations /consumer affairs activities 
(excluding the amount paid for claims)? 1972-October 1, 1974? 

A. $2,627,949 ( 1972 - October 1 , 1 974 - excluding claims) 

What was the total amount of claims or other monetary settlement 
paid? 1972-October 1, 1974? 

A. $5, 701, 959 excluding baggage claims (1972 - October 1, 1974) 

What percentage of the complaints received requested some form of 
monetary reimbursement? 1972-October 1, 1974? 



50. What percentage of complaints were settled with some form of monetary 
reimbursement? 1972-October 1, 1974? 

A. Data not available. 

51. Under what circumstances will the carrier waive the tariffs in order 
to settle complaints from mishandled passengers? 

A. None, unless there is a legal question pending involving the 
"intent" of the tariff. 

52. When a complaint is received, what measures are taken to prevent 
recurrances? 

A. All persons and locations involved in a specific complaint are 

copied for investigation and corrective actions. Those situations 
that appear to confuse, Irritate or inconvenience our customers 
are reviewed by a policy and procedure review comnnittee. Action 
is taken to change, clarify or restate policies and procedures and 
to retrain our personnel where needed. 

53. List the two or three airline practices that are most frequently the 
subject of passenger complaints. Please submit your manuals or 
sets of instructions related to dealing with passenger complaints. 

A. (1) Flight irregularities 

(2) Fares and booking accuracy 

(3) Baggage inishandling -- requested material attached. 



1294 



54. How many pieces of luggage were mishandled? 1972-October 1, 1974? 
A. 648, 704 (1972-October 1, 1974) 

55. How many were lost? 1972-October 1, 1974? 
A. 19, 068 (1972-October 1, 1974) 

56. How many were delayed? 1972-October 1, 1974? 
A. 629, 636 (1972-October 1, 1974) 

57. How many were damaged? 1972-October 1, 1974? 
A. 166,440 (1972-October 1, 1974) 

58. How many were pilferred? 1972-October 1, 1974? 
A. 8, 124 (1972-October 1, 1974) 

59. What was the total amount spent to settle claims for mishandled luggagi 
1972-October 1, 1974? 

A. $10,759, 274 (includes lost or soiled cabin articles not checked 
as baggage 1972-October 1, 1974.) 

60. What was the total amount spent to pay claims for lost luggage? 
1972-October 1, 1974? 

A. $5, 642, 628 (1972-October 1, 1974) 

61. What was the total amount spent to pay claims for damaged luggage? 
1972-October 1, 1974? 

A. $3, 301,721 (1972-October 1, 1974) 

62. What was the total amount spent to repair damaged luggage? 
1972-October 1, 1974? 

A. Included in #61. 

63. What was the total amount spent to pay pilferrage claims? 
1972-October 1, 1974? 



$845, 974 (1972-October 1, 1974) 



1295 



64. What was the total amount spent to pay claims for delayed bags? 
1972-October 1, 1974? 

A. $874, 461 (1972-October 1, 1974) 

65. What was the total cost of delivering delayed bags to passengers? 
1972-October 1, 1974? 

A. $3,471, 978 (1972-October 1, 1974) 

66. What percentage of the number of claims received exceeded the maximum 
liability limits specified in tlie tariffs? 

67. How many claims were denied because the baggage or its contents was 
unacceptable? 1972-October 1, 1974? 

68. What percentage of claims were paid in full? 1972-October 1, 1974? 

69. What percentage of claims were denied completely? 1972-October 1, 1974' 

A. Statistics were not kept 1972-October 1, 1974 on the amount 
claimed for baggage, the percentage paid in full, and the 
percentage denied. 

70. State the carrier's policy regarding proof of ownership of passengers' 
luggage and its contents. Submit any written notice which is given to 
passengers explaining this policy prior to checking in luggage. 

A. No proof of ownership is usually required for individual articles 
under $100. Otherwise, receipts, affidavits, cancelled checks, 
or appraisals may be required. 

71. List specifically carrier's criteria for the acceptability of checked 
luggage. Submit any written notic-e which is given to passengers 
explaining this policy prior to the checking of luggage. 

A. See attached SP 65-5602 on baggage acceptability. 

72. What security measures are taken at airport baggage claim areas to 
prevent baggage theft? 

A. See attached statement prepared by the security department. 



1296 



73. What are the procedures for the processing of claims regarding pilferage 
from a passenger's checked bag? 

A. All claims are forwarded to claims department in Miami. They 
verify that claimant traveled with us and checked property into 
our custody. They look for evidence of tampering with luggage 
or mishandling. In the case of expensive articles substantiation 
of value is required. In all cases timely notice upon discovery 
of the loss is required, 

74. What is the average length of time required to settle a claim for lost 
or pilferred baggage? 

A. About 45 days. No exact figures are available. The time to 

settle a cls.im depends partly on hov.' soon the claimant responds 
to requests for information. 

75. What are the procedures regarding the investigation of the validity of 
a claim? 

A. A determination of the validity of a claim is based on proof of 

travel, proof that we had custody of property, proof of ownership, 
proof of timely report, previous claims experience, claimant's 
financial position. 

76. What is the procedure used by the reservations "Staff" to confirm 
requests for seats during periods when the computers are down? 

A. See attached Standard Practice. 

77. What procedures are taken by the accounting staff to check the accuracy 
of rate computations and to refund any applicable overcharges to 
passengers? 

A. The Quality Control function in the Revenue Accounting Department 
acconnplishes a post audit on a random basis. The size and scope 
of this sample audit varies according to peak conditions. Where 
the passenger contact can be obtained from reservations records, 
the appropriate adjustments are issued to the passenger(s). 

78. What is the average lapse of time required to process refunds on un- 
used tickets, or to refund fare adjustments on partially used tickets? 

A. Eastern has previously responded to the Civil Aeronautics Board 
on this specific question. A copy of our response is attached. 
The data contained therein remains applicable at the present time. 



1297 



79. What percentage of passengers made arrangements for such services 
as car rentals or hotels through the carrier's reservations offices? 
What is the cost to the carrier of providing such services? 

A. See attached statement. 

80. What are the procedures for notifying passengers of schedule changes? 
Is automatic protection offerred to the affected passengers on all flights 
which are cancelled as the result of a schedule change? 

A. (Action Now Bulletin i?74-13 attached) Automatic computerized 
protection based on established parameters. Those not meeting 
the criteria are handled manually. 

81. What is the carrier's policy regarding the replacement of lost or stolen 
tickets? What is the policy regarding the refund of such a lost or 
stolen ticket? 

A. Eastern's policy with regard to replacement of lost or stolen 
tickets is set forth in the Standard Practice (i'f65-4395) issued 
to all sales offices on our system. A copy of this Practice is 
attached for your information and reference. 

Eastern's policy with regard to the refund of lost or stolen tickets 
is set forth in Rule 395, (C)(1), (2) and (3) of the Local and Joint 
Passenger Rules Tariff No. PR-6, C.A.B. No. 142 on file with the 
Civil Aeronautics Board. The implementation of this rule is also 
covered in Standard Practice #65-4395. 

82. What was the cost to the carrier during each of the past three years for 
the establishment, maintenance and personnel for any club or VIP 
lounges ? 

A. Costs of Ionosphere Club Operation were as follows: 

1972 $310,304 

1973 $345,546 

1974 $868,295 

Income from membership fees and operation was $709, 863 in 1974. 

83. How many passengers were denied boarding on flights for which they had 
confirmed reservations or valid tickets (include no-recs) 1972-October 1, 197 

A. 14, 027 (1972-October 1, 1974) 



1298 



84. How many of these passengers were eligible for DBC? 1972-October 1, 1974? 
A. 8, 715 (1972-October 1, 1974) 

85. How many of these passengers were not eligible for DBC because of 
equipment substitutions? 1972-October 1, 1974? 

A. 1,328 (1972-October 1, 1974) 

86. Government requisition of space? 1972-October 1, 1974? 
A. Data not available. 

87. Failure to meet check in or ticketing requirements? 1972-October 1, 1974? 
A. Not available - assumes fits category in question #88. 

88. Carrier was able to rebook them on a flight scheduled to arrive within 
two hours of original flight? 1972-October 1, 1974? 

A. 3. 984 (1972-October 1, 1974) 

89. What was the total amount spent to pay DBC to passengers? 1972-October 1, ,1974? 

A. $559,655 (1 972-October 1 , 1974) 

'=90. What percentage of passengers with conditional reservations were upgraded 
to first class on the original flight? 1972-October 1, 1974? 

A. 10.7% (1972-October 1, 1974) 

*91. What percentage of passengers with conditional reservations were unable 
to board their original flight? 1 972-October 1 , 1974? 

A. 3.8% (1972-October 1, 1974) • 

92. Does the carrier offer conditional reservations, such as "leisure class?" 
A. Yes. Eastern originated the "leisure class" type service. 

93. If a passenger holds a ticket with an "ok" status and the carrier has no 
record of the reservation, what procedure is followed in an oversale 
situation? How is such a passenger's boarding priority affected? Is 
denied boarding compensation offered? 



1299 



A. We apply the same procedures as for a passenger for whom we have 
a record of confirmed space. That is, we give the passenger a 
Denied Boarding Compensation (DBC) Notice, DEC Compensation 
if applicable, and reroute him to his destination in accordance with 
applicable tariff rules. 

Passenger's Boarding Priority - It is not affected except when we 
cannot confirm the passenger on an alternate flight, he is given 
top priority in boarding on a standby basis. Denied Boarding 
Compensation is offered assuming he is otherwise eligible accord- 
ing to tariff rules. 

94. Describe the procedures followed for dealing with bumping. Enclose 

copies of any manuals or the sets of instructions directed to employees 
dealing with a) bumping procedures, b) procedures for dealing with 
bumping complaints, c) priorities set in determining whom to bump. 

A. We have no "bumping" procedures as such, except in the case 

of pass riders, i.e., we do not remove boarded passengers with 
confirmed reservations from flights. 

As far as denying boarding is concerned, however, when an over- 
sale exists, only those passengers at the boarding station are 
affected. When there are more passengers holding valid tickets 
than there are available seats on the flight, the agent first discreetly 
asks for voluntary nonboardings . If this does not solve the situation, 
the agent refuses boarding in the following order. The governing 
priority within each category is the ticketing gate. 

online originating passenger(s) as follows 

o those least inconvenienced 

o split parties 

o aged or infirm 

o personal emergency 

o passenger(s) holding downline connection 

- Inter/intraline passenger{s) boarding at point of the irregularity 
but who originated at another point 



1300 

- boarding passenger(s) unduly inconvenienced due to either 
o the lack of flight frequency, or 
o alternate transportation 
government officials on official business 
passengers related to national security and defense 
SP 65-6120, Passenger Boarding Irregularities attached. 

95. How many complaints were received regarding schedule irregularities? 
1972-October 1, 1974? 

A. 6, 866 (1972-October 1, 1974) 

96. What was the cost of providing amenities to delayed passengers (food, 
hotels, etc.)? 1972-October 1, 1974? 

A. $5, 260, 915 (1972-October 1, 1974) 

Note: This figure was included in the answer to #48. 

97. What is the procedure for getting flight status information from aircraft, 

to operations, to computer, to reservations and other personnel responsible 
for giving flight information to the public? 

'•= If applicable 

A. Aircraft Operations - All Eastern stations are equipped with air- 
ground radio communications. Additionally, we have available 
to us communications from air to ground using ARINC. During 
off-schedule operations or emergencies, essential information is 
exchanged between flight crews and ground personnel via these 
radio facilities . 

Operations to Computer - All stations are equipped with Codacom 
or teletype terminals. As information is received from flight 
crews, or ground personnel, Operations /Control Center personnel 
enter updated flight information directly into the Charlotte 494 
Flight Watch System or the Miami 360 Reservations System, on 
a real time basis. 

Computer to Reservations (and other units with access to the 
Reservations System) - As station personnel input flight informa- 
tion into the Flight Watch System, it is immediately transmitted via 
data link to the Miami 360 computer where Reservations personnel 
and ticket counter personnel throughout the system may access this 
information, as required. 



98. 



1301 

What is the procedure for notifying delayed passengers of the availability 
of amenities ? 

A. When a flight interruption is expected to exceed four hours, the 
Eastern person handling the inconvenienced passenger advises 
and offers all passengers the available amenities as prescribed 
by tariff rules. When a flight irregularity is less than four hours, 
the Eastern person applies out-of-pocket expenses as good judgment 
dictates regardless of class of service held by the passenger. Action 
Now Bulletin #74-26 attached. 

List the steps taken by your airline in the last two years to simplify tariff 
construction and to protect the consumer against overcharges. (Note 
that Consumers Union reported in a recent survey that because of tariff 
complexities consumers are often overcharged. What steps has your 
airline taken since the publication of that survey to prevent overcharges? ) 

A. Eastern has attained industry leadership in efforts to reduce 
tariff complexity 

o Fare quotation systems, providing accurate, automated 
information to agents have been developed; 

o Joint (i.e., interline) fares have been published so as to 
cover every identifiable routing and market thus eliminating 
the need for agent computation and the attendant potential 
for human error. 

Could you please send us copies of the following documents: 

a. CustTmer relations manuals or other reference materials used 
by customer relations /consumer affairs dealing with the company's 
reimbursement policies and claims settlement procedures, which have 
been in use at any period during the last five years. 

b. Boarding priorities for flights that are overbooked or oversold. 

c. Copies of any printed material that is given to passengers to 
explain any airline procedures, baggage liability, check- in procedures, 
time limit requirements, baggage acceptability, amenities, or any 
other information dealing with potential problem areas. 

d. Curriculum for training programs of reservations and ticket agents, 
baggage handlers, flight attendants, consumer affairs, customer rela- 
tions and gate agents. Include grooming standards or appearance guide- 
lines for male and female customer cotact employees. 

e. All in-house manuals and other training materials used to guide or 
train agents who handle small claims on a local basis. 

f. Training materials used to explain tariff interpretation and use to 
reservations and ticket agents. 



1302 



A) Attached - Claims Manual 

Standard Practice 65-5800 
65-5820 
Ramp #71-7 - Action Now Bulletin 

B) Attached - Standard Practice 65-6120 

Pages 7 and 8 

C) Attached - Denied Boarding Compensation Notice 

Leisure Class Information for Customers 

Ticket Envelope 

Ticket 

Timetable 

Baggage Tips 

Pastimes 

Special Fare Label 

Air Travelers' Fly-Rights 

D) E) F) Attached - 

Initial Training Programs, Reservations and Telephone 

o Course outline, basic ticketing and tariffs (2) 

o Basic departure procedures curriculum 

o Initial training - flight attendants 

o International ticketing and tariff curriculum outline 

o Baggage service training 

o Ground Hostess training program 

o All customer contact employees - 1974 component p 

o Standard Practice 50-718 

o Spot Light on Service Booklet 



1303 



STANDARD PRACTICE ® 



EASTERN 



COMMUNICATION KIT - 
CUSTOMER COMMENT RECORD 
(ABG 72203) 



CONTENTS 



APPLICABILITY 



DEFINITION 



PROCEDURE 



This PRACTICE 

- designates the offices to which the 
PRACTICE applies 

- defines Customer Comment Record (ABG 72203) 

- describes the procedure for 

o handling a customer's comment 
o ordering "How Safe is Flying?" 

- exhibits 

o Customer Comment Record (ABG 72203) 
o distribution list of departments 

• The procedures outlined in this PRACTICE are 
applicable in all mechanized Reservations Offices 
except San Juan. 

CUSTOMER COMMENT RECORD (ABG 72203) 

• A form used to record a customer's comments 
regarding EASTERN service. 



Handling a Customer's 
Comments 

Sales Agent 



REGARDING EASTERN SERVICE 

• When a customer registers a complaint or compliment 
regarding EASTERN service 

- complete a Customer Comment Record 
o see Exhibit 1 for instructions 

- forward the completed record to the supervisor 



Supervisor 



REVIEW ACTION 

• Analyze the comments received from agent to determine 
required action. 



• If immediate action is necessary to satisfy the 
customer's needs 

- take appropriate action 

- contact customer, if necessary 

- record action taken on the Customer Comment Record 

• If no immediate action is required 

- note any recommended disposition of the comments 

• Route the Customer Comment Record to the local 
Reservations Administrator. 



PREPARED BY 



RESERVATIONS PROCEDURES 
MIARH 



1 of 7 



1304 



61 - 3187 
Continued 

COMMUNICATION KIT - 
CUSTOMER COMMENT RECORD 
(ABG 72203) 



PROCEDURE 

Handling a Customer's 
Comments-Continued — 

Sales Agent 



Supervisor 



REGARDING THE SAFETY OF FLYING 

• If a prospective customer appears to be in 
need of reassurance regarding the safety of 
flying 

- offer to mail a pamphlet entitled "How Safe 
is Flying?" 

o ensure that there is a need for mailing 
this literature 

- complete a Customer Comment Record and forward 
to the supervisor 

o use "OTHER" box to indicate other than a 
compliment or complaint and enter the 
title of the pamphlet "How Safe is Flying?" 

• Analyze the card for legibility and address 
information. 



• Route the customer comment record to the local 
Reservations Administrator for processing. 



Sales Agent 



Supervisor 



REGARDING ENVIONMENTAL PROBLEMS 

• When a customer requests a statement or registers 
a complaint or claim concerning pollution, noise 
or other environmental problems against EASTERN, 
another air carrier or a governmental agency involved 
in the airline industry 

- transfer the call to the supervisor for handling 

• Upon receipt of a transferred call regarding 
environmental problems 

- complete a Customer Comment Record 

o include the caller's address and telephone 
number 

- advise the caller that a member of EASTERN will 
be in touch with him regarding his statement 

- route the Customer Comment Record to the local 
Reservations Administrator for processing 



Supervisor - 
Reservations 
Administration 



FOLLOW-UP ACTION 

• Upon receipt of a Customer Comment Record, evaluate 
the comments of the customer and the supervisor. 



Page 2 



20 NOV 70 



1305 



STANDARD PRACTICE ® 



82 - 9750 



HANDLING COMPLAINTS FROM AIR FREIGHT CUSTOMERS 



SUMMARY 



This PRACTICE 

- states policy for Handling Complaints From Air 
Freight Customers 



POLICY 
Agent 



FUNDAMENTAL POINTS IN HANDLING COMPLAINTS 

• Handle a complaint locally 

• Be courteous and tactful 

• Thank the customer for bringing the matter to 
EASTERN'S attention 

• Check the matter promptly and thoroughly 

• Do all possible to satisfy the customer and regain 
goodwill 

PROTECT THE COMPANY 

• Handle the complaint by personal contact 

- whenever possible 

• Use the word misunderstanding 

- do not admit negligence 

• Keep all Company records confidential 

- do not admit facts which indicate carelessness 

• Use diplomacy and sound judgement 

PERSONAL OR TELEPHONED COMPLAINTS 

• Listen with interest 

• Impress on the customer that you will 

- check the matter thoroughly 

- take necessary measures to prevent a recurrence 
o notify any other station involved of the 

incident so that they may take corrective action 

• Handle to a conclusion immediately, if at all 
possible 

SPECIAL REQUESTS 

• If customer insists on talking to a higher authority 

- direct him to the local Station Manager 



PREPARED BY 



CARGO SERVICES 



1306 



82 - 9750 
Continued 

HANDLING COMPLAINTS FROM AIR FREIGHT CUSTOMERS 



POLICY 

Agent • If customer requests a monetary reimbursement 

- advise him to file a claim with our Claims 
Department - NYEGG, see HANDLING CLAIMS, S.S.M. 
9.755 

• If customer wishes to be contacted after investiga- 
tion 

- conduct inquiry, and 

- forward all the facts to the local sales office 

WRITTEN COMPLAINTS 

• When customer lives or does business in the city 
where the office receiving the complaint is located 

- acknowledge the complaint immediately 

- make a personal contact after the facts have been 
ascertained 

• When customer lives in another city 

- acknowledge complaint 

- obtain facts from city(ies) concerned 

- request office nearest the customer to make a 
personal contact after the facts have been 
received 



Page 2 



1307 



/ Eastern Airlines Additional Material for Response to Questions 53 and 100_/ 

STANDARD PRACTICE ©^^^^"-^ 



OUTSIDE RELATIONS 



CORRESPONDENCE FROM CONSUMERS 



POLICY 

In order to efficiently handle correspondence from consumers while convey- 
ing to those consumers a favorable impression of EASTERN, it is the Company 
policy that 

- any Company unit which receives a letter of compliment, complaint, 

inquiry or suggestion from one of EASTERN'S consumers is responsible for 
answering the correspondence directly by letter, telephone, or personal 
visit, as appropriate, except, as indicated in the following chart 



• If consumer's correspondence 


• Send correspondence, 
enclosing any background 
material , to 


- indicates he has copied the Civil 
Aeronautics Board (CAB) or the 
Federal Aviation Administration 
(FAA) 

- requests reimbursement of expenses, 
incurred as a result of having been 
inconvenienced by EASTERN, which 
exceed your local reimbursement 
authority, and you feel the complaint 
is valid enough to warrant special 
consideration by Customer Relations 

- requires more research than can be 
reasonably handled at your local 
level in order to reply 


- Director-Customer Relations, 
NYECA, for reply 


- concerns personal Injury 


- Passenger Representative- 
Treasury, NYEAD, for reply 


- concerns pollution, noise or other 
environmental problems 


- office designated by NYE 

Public Relations 

o see POLLUTION, NOISE AND 
ENVIRONMENTAL PROBLEMS , 
SP 55-16, for instructions 



CONSUMER 

• Passenger or shipper 



fho uses EASTERN'S services. 



PREPARED BY STANDARD PRACTICES, MIAAS p^^e 
' Extension 7904 ' 



1308 



55 - 18 

CORRESPONDENCE FROM CUSTOMERS 



PROCEDURE 



Processing Consumer's 
Correspondence 

Employee Receiving • Stamp the date of receipt on all incoming correspond- 
Correspondence ence. 

• Obtain background information about a consumer's 
comments or experiences from your own or other 
organizational units 

- if necessary to give a meaningful reply, and 

- if the amount of research can be reasonably 
handled at your local level 



Replying to 
Consumer's 
Correspondence 

Employee Making 
Reply 



As appropriate, either 

- reply to the correspondence , or 

- forward it to another office for reply 



Make the reply to a consumer 

- prompt 

- courteous 

- responsive to the subject of the consumer's letter 

Distribute copies of a consumer's letter and blind 
copies of the reply to 

- Director-Customer Relations, NYECA 

- any members of management who should be made aware 
of the consumer's compliment, complaint, inquiry, 
or suggestion 

Retain a consumer's correspondence on file 

- for 12 months from the date of receipt 



Page 2 



1309 



61 - 3187 
Continued 

COMMUNICATION KIT - 
CUSTOMER COMMENT RECORD 
(ABG 72203) 



PROCEDURE 

Supervisor 

Reservations 

Administration 



If an acknowledgement is necessary , complete the 
research to respond to the customer comment , and 

- send a letter to the customer with a preliminary 
acknowledgement or explanation, advising him of 
the disposition of his comment when appropriate 

- forward a copy of the correspondence and the 
Customer Comment Record to the department concerned 
o see Exhibit 2 for a list of addresses 

o use judgement in the distribution of such 
correspondence to additional departments 

- maintain a local file of any correspondence 
generated for 3 months 

If a preliminary acknowledgement is not required, 
and adequate information is recorded on the Customer 
Comment Record 

- forward the card to the department concerned 
shewn in Exhibit 2 

- if indicated, attach a note or memorandum with 
further explanation 



If the Customer Comment Record concerns an agent 
in your office, route a copy of the card and 
correspondence, if any, to that agent's supervisor. 

When the Customer Comment Record indicates a 
request for a pamphlet entitled "How Safe is 
Flying?" 

- mail the customer the pamphlet with an 
appropriate letter of transmittal 

If the Customer Comment Record indicates a request 
for a statement or registers a complaint or claim 
concerning pollution, noise or other environmental 
problem , 

- be guided by the procedures outlined in 
POLLUTION, NOISE AND ENVIRONMENTAL PROBLEMS, 
SP 55-16 

- forward the Customer Comment Record to New York 
Public Relations 

o see Exhibit 2 for address 



27 OCT 71 



Page 3 



1310 



61 - 3187 
Continued 

COMMUNICATION KIT - 
CUSTOMER COMMENT RECORD 
(ABG 72203) 



PROCEDURE 

Ordering Additional 
Pamphlets entitled "how safe is flying?" 

Supervisor —^ • Reqiiest additional pamphlets by memorandum from 
Reservations Reservations Procedures, MKSRH 

Administration - state the number of pamphlets desired 



27 OCT 71 
Page 4 



1311 



61 - 3187 
Continued 



C0M1UNICATI0N KIT - 
CUSTOMER COMMENT RECORD 



(ABG 72203) 

Exhibit 1 
CUSTOMER COMMENT RECORD (ABG 72203) 

Item 

Nbr. Instructions 

Print all entries to ensure legibility. 

1 • Enter the customer's name. 

2 • Enter the customer's address 

- include zip code 

3 • Enter the customer's home telephone number. 

t • Enter the flight, class, date, origin, 

destination and connections, if applicable. 

5 • Check the appropriate box. 

6 • Check the appropriate box. 

7 • Enter the customer's comment(s) 

- use additional cards if space is insufficient 
to record comments and staple together 

8 » • Line through the words, "Manager Passenger Services, 

to ensure forwarding to correct addressee. 

9 • Enter your agent sine, date and Reservations office. 

10 • Enter the supervisor's action regarding the 

customer's comment. 



27 OCT 71 Page S 



1312 



61 - 3187 
Continued 

COMMUNICATION KIT - 
CUSTOMER COMMENT RECORD 
(ABG 72203) 



— .- EXHIBIT 1 
CUSTOMER COMMENT RECORD (ABG 72203) 



CUSTOMBt COMMENT RECOM) 

*M 72101 M«. 4/71 



<9 EASTERN 






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Q IN^UOHT 
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D OTM«. (T) 






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Page 6 



27 OCT 71 



1313 



61 - 3187 
Continued 

COMMUNICATION KIT - 
CUSTOMER COMMENT RECORD 
(ABG 72203) 



EXHIBIT 2 
DISTRIBUTION OF CUSTOMER COMMENT RECORDS 



DEPARTMENT 

— ^ Air Cargo 

Aircraft Service/ 
Cabin Facilities 

Airport Passenger 
Service 

—^ Charge-A-Trip 

City Ticket Offices 

Claims - Air Freight 
or Baggage 

Dining Service 

—*■ Eastern Travel Club 

In-Flight Services 

Public Relations 

— ♦- Reservations and 
Telephone Sales 

-*■ Schedules 



N , Koppen 
T. Meagher 



Regional Director 
Sales and Services 



Regional Director 
Sales and Services 

J. J. Lysaght 

S. S. Rabia 
F. J. Nigara 
B. C. Raupe 
J. Rinehart 
R. M. Gray 

W. G. Kaldahl 



MIAFD 
MIASC 



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VARIOUS 

NYELH 

MIASD 
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27 OCT 71 



Page 7 



1314 



STANDARD PRACTICE 



^ EASTERN 



TITLE 

BAGGAGE REPLACEMENT - DAMAGED BAGGAGE CLAIMS 



Training Item Nos. BS-18A and TS- 



This PRACTICE 

- defines 

o contract baggage replacement vendor 
o Baggage Replacement Requisition 
o baggage replacement 
o replacement baggage 

- establishes eligibility for baggage 
replacement 

- describes procedure for 

o establishing a local baggage replacement 

inventory 
o replacing damaged baggage 
o method of replacement 
o selecting a replacement bag 
o handling cash adjustments 
o direct shipment to passengers residence 
o security of vendor price lists 
o disposition of damaged bag 
o distribution of Baggage Replacement 

Requisition 

- exhibits 

o list of approved EASTERN baggage 

replacement vendors 
o preparation instructions and facsimile of 

Baggage Replacement Requisition (ABG 70697) 

for multiple lot orders 
o baggage replacement allowance table 
o preparation instructions and facsimile of 

Baggage Replacement Requisition (ABG 70697) 

for individual orders 



CONTRACT BAGGAGE REPLACEMENT VENDOR 

• Certain luggage manufacturing companies who have 
entered into a system contractual agreement with 
EASTERN for the purpose of replacing damaged cus- 
tomer baggage 

- see Exhibit 1 for list of approved EASTERN baggage 
replacement vendors 

BAGGAGE REPLACEMENT REQUISITION (ABG 70697) 

• A multi-copy, precarbonized form used for ordering 
replacement baggage from EASTERN'S contract baggage 
replacement vendors . 



PREPARED BY BAGGAGE SERVICE 
MI ATT, Ext. 3755 



1315 



65 - 5803 
Continued 



BAGGAGE REPLACEMENT - DAMAGED BAGGAGE CLAIMS 



BAGGAGE REPLACEMENT 

• A method of settling a damaged bag claim when 

- a bag is damaged beyond repair while being trans- 
ported as checked baggage via EASTERW 

- the repair and delivery costs will exceed 
EASTERN'S cost of a new bag 

o by replacing the damaged bag with a new piece 
of luggage 

REPLACEMENT BAGGAGE 

• New luggage purchased by EASTERN to replace damaged 
customer baggage. 

STATIONS WITHIN THE CONTINENTAL UNITED STATES 

• Stations may order replacement luggage from an 
approved EASTERN vendor and have it shipped direct 
to 

- their station for local inventory purposes 

- a claimant's permanent residence providing 

o it is within the continental United States 

STATIONS OUTSIDE THE CONTINENTAL UNITED STATES 

• Stations may order replacement luggage from an 
approved EASTERN vendor, but may only have it 
shipped direct to a claimant's permanent residence 
providing 

- it is within the continental United States 



ESTABLISHING LOCAL BAGGAGE REPLACEMENT INVENTORY 

• When storage space at your station permits 

- maintain a minimum inventory of replacement baggage 

• Establish the level of inventory to be maintained by 

- reviewing previously settled damaged baggage 
claims to determine 

o average number of replacements made in a given 

month 
o types of replacement baggage most frequently 

required 

- determining storage capabilities of your facility 

- evaluating security measures required or available 
to provide maximum protection for replacement 
baggage 



1316 



65 - 5803 
Continued 



BAGGAGE REPLACEMENT - DAMAGED BAGGAGE CLAIMS 



PROCEDURE 
Manager 



• If a local inventory of replacement baggage is 
feasible and practical 

- order the predetermined quantities and types of 
replacement baggage from one or more of EASTERN'S 
baggage replacement vendors by 

o preparing a Baggage Replacement Requisition for 
each order in accordance with instructions in 
Exhibit 2 



REPLACING DAMAGED BAGGAGE 
Baggage Service • When a passenger files a claim for a damaged bag 
Agent - prepare a Customer Property Claim Report (ABG 70504) 

o see CUSTOMER PROPERTY CLAIM REPORT, SP 65-5800, 
for instructions 

- determine validity of the claim by reviewing pas- 
senger's ticket 

- inspect the damaged bag, noting 
o brand name 

o type 

o approximate age 

o color 

o size 

o alleged damage 

• After verification of the claim and inspection of 
the damaged bag 

- decide if claim is valid and should be honored 

- decide whether a replacement bag is the most 
economical method of settlement 



Make decision to replace the damaged bag after 
ascertaining that 

- repair of the bag is impossible due to the extent 
of the damage 

- cost of repairing the damaged bag will exceed the 
cost of a replacement bag 

- cost of repair, pickup and delivery of the damaged 
bag will exceed the cost of a replacement bag 

Finalize the damaged bag claim settlement with a 
replacement bag 

- based on 

o age of damaged bag 

o condition of bag prior to being damaged 

- in conjunction with baggage replacement allowance 
table in Exhibit 3 

- using sound judgement to ensure 
o customer satisfaction 

o minimum expense to EASTERN 

Page 3 



1317 



65 - 5803 
Continued 



BAGGAGE REPLACEMENT - DAMAGED BAGGAGE CLAIMS 



METHOD OF REPLACEMENT 
Baggage Service • When decision is made to replace a damaged bag 
f^gent - offer a comparable replacement bag from local 

inventory, if applicable and available, or 

- arrange to have a replacement bag shipped direct 
from the vendor's warehouse to the passenger's 
permanent address, when 

o local facilities do not permit storage of 

replacement baggage 
o a satisfactory replacement is not available in 

local inventory 
o a satisfactory replacement is available from 

vendor inventory 
o time permits a direct warehouse shipment 
o it is agreeable to the passenger 

• Purchase replacement baggage from a local luggage 
shop only when 

- neither of the above methods of baggage replacement 
is satisfactory to the passenger because of time 
and/or convenience 

- the replacement luggage offered by EASTERN is not 
satisfactory to the passenger 

SELECTING A REPLACEMENT BAG 

• Attempt to replace the damaged bag with a replace- 
ment bag of the type, color and size from 

- local baggage replacement inventory , or 

- pictorial illustrations and descriptions of replace- 
ment baggage provided in the vendor catalogs 

• When an exact replacement for the damaged bag is 
unavailable in either local or vendor inventory 

- attempt to replace the damaged bag with one that 
is comparable in 

o style 
o color 
o size 

HANDLING CASH ADJUSTMENTS 
Agent • In the event that the replacement of the damaged bag 

is less than 100% of EASTERN'S obligation in accor- 
dance with the Baggage Replacement Allowance Table in 
Exhibit 3 

- obtain the passenger's participation in the settle- 
ment whereby the cost of the replacement bag would 
be shared between EASTERN and the passenger 



Page 



2 JUN 71 



1318 



65 - 5803 
Continued 



BAGGAGE REPLACEMENT - DAMAGED BAGGAGE CLAIMS 



PROCEDURE 

Agent 



• Prepare a Sales Miscellaneous Invoice (14-GG-0080) 

- when passenger agrees to participate 

- before issuing a replacement bag showing in detail 
o passenger's name 

o address 

o passenger's signature 

o cash (check box) 

o quantity 

o part number or vendor style code 

o description or color and size 

o CAB account to be credited - 58-22 

o amount to be paid by passenger 

o agent's signature 

o supervisor's or manager's signature 

o station and location code number 

o appropriate date 

- see REPORTING MISCELLANEOUS SALES, SP 32-1, for 
instructions 

• If the passenger does not agree to a cash adjustment, 
make settlement in accordance with other established 
procedures . 

DIRECT SHIPMENT TO PASSENGER'S RESIDENCE 

• Vrtien a cash adjustment is agreed to by the passenger 
and an acceptable replacement bag is not available 
from local inventories 

- prepare a Sales Miscellaneous Invoice 

- place order with an approved EASTERN vendor for 
replacement bag using a Baggage Replacement 
Requisition 

o see Exhibit t for preparation instructions 

• Advise the passenger that a replacement bag will be 
shipped direct from the vendor's warehouse 

- via United Parcel Service 

- via Parcel Post 

- within 2U hours after receipt of the Baggage 
Replacement Requisition at the vendor's warehouse 

• Upon completion of the requisition, verify with the 
passenger that 

- data entered is correct 

- passenger is fully awaae of shipping procedures 



Page 5 



1319 



65 - 5803 
Continued 



BAGGAGE REPLACEMENT - DAMAGED BAGGAGE CLAIMS 



SECURITY OF VENDOR CATALOGS AND PRICE LIST 
Manager/Agent • Because of the competitive advantage that EASTERN 
has over many luggage shops through discounts 
received from each vendor on replacement luggage , 
strict security must be maintained for 

- vendor price list 

- vendor catalogs 

DISPOSITION OF DAMAGED BAG 

• Upon the issuance of a new replacement bag to a 
passenger 

- obtain the damaged bag from the passenger 
o use as a temporary loan bag 

o sell to EASTERN employees using Sales Miscel- 
laneous Invoice 
o destroy 

DISTRIBUTION OF BAGGAGE REPLACEMENT REQUISITION 

• Upon completion of the Baggage Replacement 
Requisition 

- send original and pink copy to vendor 

- retain yellow copy, station copy, in file for one 
year, filed by 

o month of approval date 
o requisition number 



2 JUN 71 



1320 



65 - 5803 
Continued 

BAGGAGE REPLACEMENT - DAMAGED BAGGAGE CLAIMS 



EXHIBIT 1 
APPROVED EASTERN BAGGAGE REPLACEMENT VENDORS 



Vendor Name 



American Luggage Works, Inc. 

91 Main Street 

Warren, Rhode Island 16363 

Seward Luggage Mfg. Co. 
434 High Street 
Petersburg, Virginia 23803 

United States Luggage Corp. 

951 Broadway 

Fall River, Massachusetts 02724 

Creative Incentives Co., Inc. 
1657 Pennsylvania Street 
Denver, Colorado 80203 



2 JUN 71 



Page 7 



1321 



65 - 5803 
Continued 



BAGGAGE REPLACEMENT - DAMAGED BAGGAGE CLAIMS 

EXHIBIT 2 

PREPARATION INSTRUCTIONS AND FACSIMILE OF 

BAGGAGE REPLACEMENT REQUISITION (ABG 70697) FOR MULTIPLE LOT ORDERS 



Item 
Nbr. 



Instruction 

ENTER 

1 • The name and address of the vendor from which you 

are ordering. 

2 • Your station's 

- name 

- address 

3 • The number of bags ordered by 

- style number 

- size 

- color 

4 • Location code of your station. 

5 • Location number of your station. 



• Signature of Manager approving the baggage 
replacement requisition. 

• The date the requisition was approved. 

• Title of approving manager. 



Page 8 



2 JUN 71 



1322 



65 - 5803 
Continued 



BAGGAGE REPLACEMENT - DAMAGED BAGGAGE CLAIMS 



EXHIBIT 2 CONTINUED 
PREPARATION INSTRUCTIONS AND FACSIMILE OF 
BAGGAGE REPLACEMENT REQUISITION (ABG 70697) FOR INDIVIDUAL ORDERS 



BAGGAGE REPUCEMENT REQUISITION ^ EASTERIVJ 

.80 70.97 2 7, REQUISITION NO. 01415 


(JJ CREATIVE INCENTIVES CO., INC. 
^° 1657 PENNSYLVANIA STREET 
DENVER, COLORADO 80203 

L J 


^;^ASTERN AIR LINES. INC. ' 

ADDRESsFT. LAUDERDALR/HOI.LYWnnn AIRPORT 

c.Tv FT. LAUDERDALE. 

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SIZE 


COLOR 


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21 


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34 


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Page 9 



1323 



65 - 5803 
Continued 

BAGGAGE REPLACEMENT - DAMAGED BAGGAGE CLAIMS 



EXHIBIT 3 
BAGGAGE REPLACEMENT ALLOWANCE TABLE 



Bag Age or 








Condition 


Excellent 


Normal 


Poor 


New 


100% 


100% 


100% 


Up to 1 year 


100 


90 


80 


1-2 years 


90 


70 


60 


2-3 years 


80 


65 


50 


3-4 years 


70 


60 


40 


4-5 years 


60 


50 


40 


5-6 years 


50 


40 


30 


6-7 years 


40 


30 


20 


7-8 years 


30 


20 


10 


Older 


20 


10 


None 



Page 10 



16 JUN 71 



1324 



65 - 5803 
Continued 

BAGGAGE REPLACEMENT - DAMAGED BAGGAGE CLAIMS 



EXHIBIT 4 

PREPARATION INSTRUCTIONS AND FACSIMILE OF 

BAGGAGE REPLACEMENT REQUISITION (ABG 70697) FOR INDIVIDUAL ORDERS 



Item 

Nbr. Instruction 

ENTER 

1 • The name and address of the vendor from which you 

are ordering. 

2 • The name and address of the passenger or party to 

which the baggage replacement is to be shipped. 

3 • Bags ordered by 

- number 

- style 

- color 

It • Location code of your station. 

5 • Location number of your station. 

6 • Signature of manager approving the Baggage Replace 

ment Requisition. 

7 • The date the requisition was approved. 

8 • Title of approving manager. 



2 JUN 71 ''^Se 11 



1325 



65 - 5803 
Continued 



BAGGAGE REPLACEMENT - DAMAGED BAGGAGE CLAIMS 



EXHIBIT 4 CONTINUED 

PREPARATION INSTRUCTIONS AND FACSIMILE OF 

BAGGAGE REPLACEMENT REQUISITION (ABG 70697) FOR INDIVIDUAL ORDERS 



BAGGAGE REPUCEMENT REQUISITION 



i^'^ EASTEF=)rg 



REQUISITrON NO. 01417 



® 



SEWARD LUGGAGE