B-128313, DEC. 31, 1956

B-128313, DEC. 31, 1956

TO NATIONAL AIRLINES, INCORPORATED:

REFERENCE IS MADE TO YOUR LETTER OF JUNE 13, 1956, REQUESTING REVIEW OF OUR SETTLEMENT CERTIFICATE, DATED APRIL 13, 1956, IN CLAIM NO. TK 608825, WHICH DISALLOWED YOUR CLAIM, PER BILL NO. 5-105-11A, FOR $84.25 ADDITIONAL CHARGES FOR THE TRANSPORTATION OF FIVE EMPLOYEES OF THE NAVY FROM NEW BERN, NORTH CAROLINA, TO WICHITA, KANSAS, AND RETURN, UNDER TRANSPORTATION REQUESTS N 2,170560, N 2,170,562, N 2,170,564, N 2,170,566, AND N 2,170,568 IN MAY 1955. ALL OF THE TRANSPORTATION REQUESTS SHOW A ROUTING VIA NATIONAL AIRLINES TO WASHINGTON, D.C., AMERICAN AIRLINES, TO CHICAGO, ILLINOIS, BRANIFF AIRWAYS TO WICHITA, AND RETURN IN THE REVERSE ORDER.

YOU CLAIMED $780 FOR THIS SERVICE, ON THE BASIS OF A NET FARE OF $156 PER CAPITA DERIVED FROM A GROSS FARE OF $173.30 COMPUTED VIA THE CARRIERS AND JUNCTION POINTS SHOWN ON THE TRANSPORTATION REQUESTS, LESS A 10 PERCENT DISCOUNT. PAYMENT WAS MADE BY A NAVY DISBURSING OFFICER IN THE AMOUNT OF $695.75 ON THE BASIS OF A NET FARE OF $139.15 PER CAPITA DERIVED FROM A GROSS FARE OF $154.60, LESS 10 PERCENT COMPUTED VIA NATIONAL AIRLINES TO RICHMOND, VIRGINIA, PIEDMONT AIRLINES TO LOUISVILLE, KENTUCKY, THENCE TRANS WORLD AIRLINES (VIA KANSAS CITY, MISSOURI), TO WICHITA. YOUR PRESENT CLAIM FOR $84.25, DISALLOWED IN OUR SETTLEMENT, REPRESENTS THE DIFFERENCE BETWEEN THE TOTAL CHARGES OF $780 ORIGINALLY CLAIMED AND $695.75 PAID BY THE NAVY DISBURSING OFFICER. IN YOUR REQUEST FOR REVIEW YOU TAKE THE POSITION THAT THE NAVY'S BASIS FOR THE COMPUTATION OF THE NET FARE IS NOT SUPPORTED BY THE WORDING OF THE APPLICABLE AGREEMENT, IN THIS INSTANCE JOINT MILITARY AIR TRANSPORTATION AGREEMENT NO. 4, SUPPLEMENT NO. 2, PART II 8, IN THAT THE FARE VIA THE ROUTE OF TRAVEL EXCEEDS BY MORE THAN 10 PERCENT THE FARE APPLIED IN THE SETTLEMENT.

WHILE THE FARE VIA THE CARRIERS AND JUNCTION POINTS NAMED IN THE TRANSPORTATION REQUESTS, IS REPORTED TO BE IN EXCESS, BY MORE THAN 10 PERCENT, OF THE FARE VIA RICHMOND, LOUISVILLE, ETC., APPLIED BY THE ADMINISTRATIVE OFFICE AND IN OUR SETTLEMENT, OUR TRANSPORTATION DIVISION REPORTS THERE CAN BE ESTABLISHED A NET FARE OF $146.20 VIA THE JUNCTION POINTS SHOWN ON THE TRANSPORTATION REQUESTS. SUCH FARE IS AVAILABLE VIA NATIONAL AIRLINES TO RICHMOND, CAPITOL AIRLINES TO CHICAGO, VIA WASHINGTON, THENCE BRANIFF AIRWAYS TO DESTINATION. THE FARE OF $146.20 VIA THIS ROUTE EXCEEDS, BY LESS THAN 10 PERCENT, THE DIRECT LINE FARE OF $139.15 APPLIED IN THE SETTLEMENT, AND THE ADJUSTMENT OF THE CHARGES TO THE BASIS OF THE LOWER FARE APPEARS TO BE AUTHORIZED ON THE PREMISE THAT THE CARRIERS ARE OBLIGATED TO EQUALIZE THAT FARE UNDER THE TERMS OF THEIR EQUALIZATION AGREEMENT.

IN THIS CONNECTION A SIMILAR EQUALIZATION SITUATION APPEARS TO HAVE BEEN THE SUBJECT OF A DISCUSSION ON MARCH 12 AND 13, 1956, BETWEEN THE AIR TRANSPORT ASSOCIATION AIRLINE FINANCE AND ACCOUNTING CONFERENCE, REVENUE ACCOUNTING PASSENGER SUBCOMMITTEE, AND REPRESENTATIVES OF OUR TRANSPORTATION DIVISION, AS REFLECTED IN A MEMORANDUM DATED APRIL 13, 1956, PREPARED BY THE AIRLINE FINANCE AND ACCOUNTING CONFERENCE. THE DETERMINATION OF THE ADMINISTRATIVE OFFICE, SUPPORTED IN OUR SETTLEMENT, THAT PROTECTION OF THE FARE OF $139.15 PER CAPITA IS REQUIRED APPEARS TO BE CONSISTENT WITH THE AGREEMENT REACHED BY THE PARTIES AS TO THE PROPER INTERPRETATION TO BE GIVEN THE EQUALIZATION PROVISIONS OF THE CARRIERS' AGREEMENT.

ACCORDINGLY, ON THE BASIS OF THIS RECORD, THE DISALLOWANCE OF YOUR CLAIM IN THE CITED SETTLEMENT CERTIFICATE IS SUSTAINED.