practice affecting such rate, fare or charge, or the value of the service thereund which appears to the Board to be inconsistent with the public interest, the Board is empowered, upon complaint or upon its own initiative, at once, and if it se orders, without answer or other form of pleading by the air carrier or foreiz air carrier concerned, but upon reasonable notice, and by filing with such tarif and delivering to the air carrier or foreign air carrier affected thereby a state ment in writing for such suspension, to suspend the operation of such tariff and defer the use of such rate, fare, or charge, or of any classification, rule, regr lation, or practice affecting such rate, fare, or charge, or the value of the service thereunder, for a period or periods not exceeding three hundred and sixty-five days in the aggregate beyond the time when such tariff would otherwise go int effect. During the period of such suspension or suspensions the air carrier or foreign air carrier affected thereby shall maintain in effect and use the rate, fare, or charge, or such classification, rule, regulation, or practice affecting such rate. fare, or charge, or the value of the service thereunder, which was in effect inmediately prior to the filing of the new tariff.

"(2) The Board is further empowered, with respect to any existing tariff of a foreign air carrier, upon complaint or upon its own initiative, at once and, if it so orders, without answer or other form of pleading by the foreign air carrier. but upon reasonable notice, to suspend the operation of any such tariff which appears to be inconsistent with the public interest and to continue such suspension for a period or periods not exceeding three hundred and sixty-five days in the aggregate from the date of such suspension. During the period of such sus pension or suspensions, the foreign air carrier may put into effect and use the lowest, or the most advantageous to it, of such rates, fares, or charges, or of such classification, rule, regulation, or practice affecting such rate, fare, charge. or the value of the service thereunder, as may be currently in effect for air carriers engaged in the same foreign air transportation.

"(3) In exercising and performing its power and duties under this subsection, the Board shall take into consideration, among other factors

"(A) the requirements of section 1102 of this Act;

"(B) the requirement that rates be established and maintained at just and reasonable levels, due regard being had for all relevant factors, such as costs of operation, reasonable profit, the characteristics of each service, and the rates charged by other air carriers and foreign air carriers ;

"(C) the public interest requirement for adequate, efficient, and dependable transportation of persons and property by air carriers and foreign air carriers at the lowest cost consistent with the furnishing of such service: and

"(D) the need of each air carrier for revenue sufficient to enable suck air carrier, under honest, economic, and efficient management, to provide ade quate, efficient, and dependable air carrier service.".

SEC. 3. That portion of the table of contents contained in the first section of the Federal Aviation Act of 1958 which appears under the heading

"Sec. 1002. Complaints to, and investigations by, the Administrator and the Board." is amended

(1) by striking out

"(d) Power to prescribe rates and practices of air carriers."

and inserting in lieu thereof

"(d) Power to prescribe rates and practices of air carriers in interstate and overseas air transportation.";

(2) by striking out

"(e) Rule of ratemaking."

and inserting in lieu thereof

"(e) Rule of ratemaking for interstate and overseas air transportation."; (3) by striking out

"(g) Suspension of rates."

and inserting in lieu thereof

and

"(g) Suspension of rates in interstate and overseas air transportation.";

(4) by adding at the end thereof the following:

"(j) Suspension of rates in foreign air transportation."

[H.R. 6400, 88th Cong., 1st sess.]

A BILL To amend the Federal Aviation Act of 1958 to provide for the regulation of rates and practices of air carriers and foreign air carriers in foreign air transportation, and for other purposes

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That subsection (a) of section 404 of the Federal Aviation Act of 1958 (49 U.S.C. 1374(a)) is amended by inserting “(1)" immediately after “(a)" and adding at the end thereof the following new paragraph:

"(2) It shall be the duty of every air carrier and foreign air carrier to establish, observe, and enforce just and reasonable individual and joint rates, fares, and charges, and just and reasonable classifications, rules, regulations, and practices relating to foreign air transportation; and, in case of such joint rates, fares, and charges, to establish just, reasonable, and equitable divisions thereof as between air carriers or foreign air carriers participating therein which shall not unduly prefer or prejudice any of such participating air carriers or foreign air carriers."

SEC. 2. Section 801 of the Federal Aviation Act of 1958 (49 U.S.C. 1461) is amended by inserting "(a)" immediately after "801" and by adding at the end thereof the following new subsection:

"(b) Any order of the Board pursuant to section 1002 (f) requiring that an air carrier or foreign air carrier discontinue demanding, charging, collecting, or receiving a rate, fare, or charge for foreign air transportation, or enforcing any classification, rule, regulation, or practice affecting such rate, fare, or charge, and any action of the Board pursuant to section 1002 (g) suspending the operation of a tariff filed with the Board by an air carrier or foreign air carrier stating a new individual or joint rate, fare, or charge for foreign air transportation, shall be subject to the approval of the President: Provided, That any order of the Board directing an air carrier or foreign air carrier to alter any rate, fare, or charge, or any classification, rule, regulation, or practice affecting such rate, fare, or charge, to the extent necessary to correct any discrimination, preference, or prejudice, and any order that the air carrier or foreign air carrier shall discontinue demanding, charging, collecting, or receiving any such discriminatory, preferential, or prejudicial rate, fare, or charge, or enforcing any such discriminatory, preferential, or prejudicial classification, rule, regulation, or practice, shall not be subject to such approval. Copies of any such proposed orders, and of proposed statements containing reasons for suspension, shall be submitted to the President by the Board before publication." SEC. 3. Subsection (d) of section 1002 of the Federal Aviation Act of 1958 (49 U.S.C. 1482(d)) is amended by changing the colon following the word "effective" to a period and striking out the following: "Provided, That as to rates, fares, and charges for overseas air transportation, the Board shall determine and prescribe only a just and reasonable maximum or minimum, or maximum and minimum rate, fare, or charge."

SEC. 4. Subsection (e) of section 1002 of the Federal Aviation Act of 1958 (49 U.S.C. 1482(e)) is amended by inserting the words "and foreign air carriers" after the words "air carriers" where they appear in paragraphs (2) and (3) of the subsection, and by inserting the words "and foreign air carrier" after the words "air carrier" where they appear in paragraph (5). SEC. 5. Subsection (f) of section 1002 of the Federal Aviation Act of 1958 (49 U.S.C. 1482(f)) is amended to read as follows:

"RATES AND PRACTICES IN FOREIGN AIR TRANSPORTATION

"(f) Whenever, after notice and hearing, upon complaint or upon its own initiative, the Board shall be of the opinion that any individual or joint rate, fare, or charge demanded, charged, collected, or received by any air carrier or foreign air carrier for foreign air transportation, or any classification, rule, regulation, or practice affecting such rate, fare, or charge, or the value of the service thereunder, is or will be unjust or unreasonable or unjustly discriminatory, or unduly preferential, or unduly prejudicial, the Board may alter the same to the extent necessary to correct such unjustness, unreasonableness, discrimination, preference, or prejudice and make an order that the air regulation, or practice affecting such rate, fare, or charge, o the value of or receiving any such unjust, unreasonable, discriminatory, preferential, or prejudicial rate, fare, or charge, or enforcing any such unjust, unreasonable,

discriminatory, preferential, or prejudicial classification, rule, regulation, « practice. The Board may in the aforesaid order set forth and prescribe the lawful rate, fare, or charge (or the maximum or minimum or the maxim and minimum thereof) thereafter to be demanded, charged, collected, or re ceived, or the lawful classification, rule, regulation, or practice thereafter t be made effective."

SEC. 6. Subsection (g) of section 1002 of the Federal Aviation Act of 195 (49 U.S.C. 1482(g)) is amended

(1) by striking out the words "interstate or overseas";

(2) by amending the parenthetical phrase following the word "joint" to read as follows: "(between air carriers, between foreign air carriers. or between an air carrier or carriers and a foreign air carrier carriers)"; and

(3) by inserting the words "or foreign air carrier" after the words “ar carrier" wherever they appear therein.

SEC. 7. Subsection (i) of section 1002 of the Federal Aviation Act of 1958 (4 U.S.C. 1482 (i)) is amended by changing the colon following the word "operated" to a period and striking out the following: “Provided, That as to joint rates, fares and charges for overseas transportation the Board shall determine and prescribe only just and reasonable maximum or minimum er maximum and minimum joint rates, fares or charges."

SEC. 8. The amendments made by this Act shall become effective thirty days after the date of enactment of the Act.

[S. 1540, 88th Cong., 1st sess.]

AN ACT To mend the Federal Aviation Act of 1958 to provide for the regulation of rates and practices of air carriers and foreign air carriers in foreign air transportation, and for other purposes

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That subsection (a) of section 404 of the Federal Aviation Act of 1958 (49 U.S.C. 1374(a)) is amended by inserting "(1)" immediately after “(a)” and adding at the end thereof the following new paragraph:

"(2) It shall be the duty of every air carrier and foreign air carrier to estab lish, observe, and enforce just and reasonable individual and joint rates, fares, and charges, and just and reasonable classifications, rules, regulations, and prac tices relating to foreign air transportation; and, in case of such joint rates, fares, and charges, to establish just, reasonable, and equitable divisions thereof as between air carriers or foreign air carriers participating therein which shall not unduly prefer or prejudice any of such participating air carriers or foreign air carrier."

SEC. 2. Section 801 of the Federal Aviation Act of 1958 (49 U.S.C. 1461) is amended by inserting "(a)" immediately after "801" and by adding at the end thereof the following new subsection:

“(b) Any order of the Board pursuant to section 1002(f) requiring that an air carrier or foreign air carrier discontinue demanding, charging, collecting, or receiving a rate, fare, or charge for foreign air transportation, or enforcing any classification, rule, regulation, or practice affecting such rate, fare, or charge, and any action of the Board pursuant to section 1002 (g) suspending the operation of a tariff filed with the Board by any air carrier or foreign air carrier stating a new individual or joint rate, fare, or charge for foreign air transportation, shall be reported to the President by the Board before publication: Provided, That any order of the Board directing an air carrier or foreign air carrier to alter any rate, fare, charge, or any classification, rule, regulation, or practice affecting such rate, fare, or charge, to the extent necessary to correct any discrimination, preference, or prejudice, and any order that the air carrier or foreign air carrier shall discontinue demanding, charging, collecting, or receiving any such discriminatory, preferential or prejudicial rate, fare, or charge or enforcing any such discriminatory preferential, or prejudicial classification, rule, regulation, or practice, need not be so reported."

SEC. 3. Subsection (d) of section 1002 of the Federal Aviation Act of 1958 (49 U.S.C. 1482(d)) is amended by changing the colon following the word “effective" to a period and striking out the following: "Provided, That as to rates, fares, and charges for overseas air transportation, the Board shall determine and pre

scribe only a just and reasonable maximum or minimum, or maximum and minimum rate, fare, or charge."

SEC. 4. Subsection (e) of section 1002 of the Federal Aviation Act of 1958 (49 U.S.C. 1482(e)) is amended by inserting the words "and foreign air carriers" after the words "air carriers" where they appear in paragraphs (2) and (3) of the subsection, and by inserting the words "and foreign air carrier" after the words "air carrier" where they appear in paragraph (5).

SEC. 5. Subsection (f) of section 1002 of the Federal Aviation Act of 1958 (49 U.S.C. 1482(f)) is amended to read as follows:

"RATES AND PRACTICES IN FOREIGN AIR TRANSPORTATION

"(f) Whenever, after notice and hearing, upon complaint or upon its own initiative, the Board shall be of the opinion that any individual or joint rate, fare, or charge demanded, charged, collected, or received by any air carrier or foreign air carrier for foreign air transportation, or any classification, rule, regulation, or practice affecting such rate, fare, or charge or the value of the service thereunder, is or will be unjust or unreasonable or unjustly discriminatory, or unduly preferential, or unduly prejudicial, the Board may alter the same to the extent necessary to correct such unjustness, unreasonableness, discrimination, preference, or prejudice and make an order that the air carrier or foreign air carrief shall discontinue demanding, changing, collecting, or receiving any such unjust, unreasonable, discriminatory, preferential, or prejudicial rate, fare, or charge, or enforcing any such unjust, unreasonable, discriminatory, preferential or prejudicial, classification, rule, regulation, or practice. The Board may in the aforesaid order set forth and prescribe the lawful rate, fare, or charge (or the maximum or minimum or the maximum and minimum thereof) thereafter to be demanded, charged, collected, or received, or the lawful classification, rule, regulation, or practice thereafter to be made effective."

SEC. 6. Subsection (g) of section 1002 of the Federal Aviation Act of 1958 (49 U.S.C. 1482 (g)) is amended

(1) by striking out the words "interstate or overseas";

(2) by amending the parenthetical phrase following the word "joint" to read as follows: "(between air carriers, between foreign air carriers, or between an air carrier or carriers and a foreign air carrier or carriers)"; and

(3) by inserting the words "or foreign air carrier" after the words "air carrier" wherever they appear therein.

SEC. 7. Subsection (i) of section 1002 of the Federal Aviation Act of 1958 (49 U.S.C. 1482 (i)) is amended by changing the colon following the word "operated" to a period and striking out the following: "Provided, That as to joint rates, fares, and charges for overseas transportation the Board shall determine and prescribe only just and reasonable maximum or minimum or maximum and minimum joint rates, fares, or charges.

SEC. 8. The amendments made by this Act shall become effective thirty days after the date of enactment of the Act. Passed the Senate November 26, 1963. Attest:

FELTON M. JOHNSTON, Secretary.

EXECUTIVE OFFICE OF THE PRESIDENT,

BUREAU OF THE BUDGET, Washington, D.C., May 23, 1963.

Hon. OREN HARRIS,

Chairman, Committee on Interstate and Foreign Commerce,
House of Representatives, Washington, D.C.

DEAR MR. CHAIRMAN: This is in reply to your letter of February 20, 1963, requesting the views of the Bureau of the Budget on H.R. 1716, a bill to amend section 1002 of the Federal Aviation Act to authorize the Civil Aeronautics Board to suspend certain rates relating to foreign air transportation, and for other purposes.

The Bureau of the Budget strongly supports the objective of this bill but believes it to be seriously inadequate to achieve this objective, i.e., to create in the Government of the United States equal powers over the rates and practices of air carriers and foreign air carriers operating between the territory of the

United States and foreign countries as foreign governments have over the rates and practices of U.S. air carriers flying between the United States and their territories. H.R. 1716 would not appear to give the Civil Aeronautics Board more than suspension powers for a period of 365 days; any rates desired by foreign carriers could be put into effect at the end of the suspension period without remedy for the Board.

The Bureau of the Budget greatly prefers a Civil Aeronautics Board draft bill to amend the Federal Aviation Act of 1958 to provide for the regulation of rates and practices of air carriers and foreign air carriers in foreign air transportation, and for other purposes, which the President transmitted to the Congress by letter of May 14, 1963.

Sincerely yours,

PHILLIP S. HUGHES, Assistant Director for Legislative Reference.

CIVIL AERONAUTICS BOARD, Washington, D.C., April 28, 1964.

Hon. OREN HARRIS,

Chairman, Committee on Interstate and Foreign Commerce, House of Representatives, Washington, D.C.

DEAR MR. CHAIRMAN: This is in further reply to your letter of February 20. 1963, requesting a report by the Board on H.R. 1716, a bill to amend section 1002 of the Federal Aviation Act of 1958 to authorize the Civil Aeronautics Board to suspend certain rates relating to foreign air transportation, and for other purposes.

H.R. 1716 would empower the Board to suspend tariffs of air carriers and foreign air carriers engaged in foreign air transportation, while H.R. 6400, which is also pending before your committee, would not only authorize the Board to suspend tariffs but also to regulate the rates and practices of such carriers.

The Board pointed out to your committee in a letter dated May 29, 1963. that the provisions of H.R. 6400 were identical to those of a draft bill submitted by the President to the Congress on May 14, 1963, and urged that prompt and favorable consideration be given to such bill for the reasons set forth in the "Statement of Purpose and Need" accompanying the draft legislation. The Board repeated its endorsement of H.R. 6400 in a letter to your committee dated March 30, 1964, urging that prompt and favorable consideration be given to such bill rather than to S. 1540, a similar bill.

In view of the foregoing, the Board is opposed to the enactment of H.R. 1716, and again urges that prompt and favorable consideration be given to H.R. 6400.

The Board has been advised by the Bureau of the Budget that there is no objection to the submission of this report from the standpoint of the adminis tration's program.

For the Civil Aeronautics Board:

HAROLD R. SANDERSON, Secretary.

CIVIL AERONAUTICS Board,
Washington, D.C., May 29, 1963.

Hon. OREN HARRIS,

Chairman, Committee on Interstate and Foreign Commerce, House of Representatives, Washington, D.C.

DEAR MR. CHAIRMAN. This is in reply to your letter of May 23, 1963, requesting a report by the Board on H.R. 6400, a bill to amend the Federal Aviation Act of 1958 to provide for the regulation of rates and practices of air carriers and foreign air carriers in foreign air transportation, and for other purposes.

The provisions of H.R. 6400 are identical to those of a draft bill submitted by the President to Congress on May 14, 1963.

For the reasons set forth in the "Statement of Purpose and Need" which accompanied the draft bill, a copy of which is enclosed, the Board urges that prompt and favorable consideration be given to H.R. 6400.

Sincerely yours,

ALAN S. BOYD, Chairman.