B-144632, B-144804, B-144807, B-144831, OCT. 6, 1961

B-144632, B-144804, B-144807, B-144831, OCT. 6, 1961

TO AAXICO AIRLINES, INC.:

WE AGAIN REFER TO YOUR LETTER OF SEPTEMBER 1, 1961 (AND EARLIER LETTERS), CONCERNING YOUR REQUEST FOR REVIEW OF THE SETTLEMENTS ON SEVEN OF YOUR SUPPLEMENTAL BILLS, IDENTIFIED AS FOLLOWS:

TABLE YOUR BILL NO. OUR CLAIM NO. AMOUNT G-1-11-8-3CA

TK-703384 $ 32.30

(CA10181-F6) 1-10-8-7CA TK-703385 464.55

(CA-0182-F6) G-1-11-8-21CA TK-702745 451.25

(CAM 560) G-1-12-8-6CA TK-703031 30.40

(CA-0447-F2) G-1-5-9-11CA TK-702744 123.50

(824) NONE TK-643769 469.20

(0202) CAFM-824 TK-699175 75.62

WE ALREADY HAVE REVIEWED THE SETTLEMENT ON YOUR SUPPLEMENTAL BILL NO. G-1 -11-8-3CA (OUR CLAIM NO. TK-703384). SEE OUR LETTER OF AUGUST 30, 1961, B -144805, TO YOU. THE SETTLEMENTS ON THE REMAINING BILLS DISALLOWED YOUR CLAIMS FOR ADDITIONAL CHARGES ALLEGEDLY DUE FOR TRANSPORTING IN CHARTER AIR SERVICE FOR THE DEPARTMENT OF DEFENSE SIX SHIPMENTS OF GOVERNMENT PROPERTY, UNDER GOVERNMENT BILLS OF LADING DURING 1953, 1957, 1958 AND 1959.

THE CHARTER ARRANGEMENTS FOR EACH SHIPMENT, CALLED A COMMERCIAL AIR FREIGHT MOVEMENT (CAFM), RESULTED FROM THE GOVERNMENT'S AWARD OF A CHARTER TO AAXICO AS BEST MEETING THE NEEDS OF THE MILITARY AFTER AN EVALUATION OF TENDERS OR BIDS WHICH HAD BEEN SUBMITTED BY YOUR REPRESENTATIVE (IN MOST CASES, THE AIR TRAFFIC CONFERENCE OF AMERICA), AS WELL AS BY REPRESENTATIVES OF OTHER AIR CARRIERS AND OF OTHER MODES OF TRANSPORTATION, IN RESPONSE TO THE MILITARY TRAFFIC MANAGEMENT AGENCY'S INVITATION TO BID ON THE SHIPMENT. AFTER THE COMPLETION OF EACH CAFM, THE DETAILS OF THE ACCEPTED TENDER OR BID WERE SET FORTH IN A CHARTER CERTIFICATE BEARING A CAFM NUMBER. THE DETAILS INCLUDED, AMONG OTHER THINGS, THE NAME OF THE CARRIER AWARDED THE CAFM, THE TYPE OF AIRCRAFT USED, THE DATE OF THE FLIGHT, THE WEIGHT OF THE CARGO, AND THE ORIGINS, DESTINATIONS, ROUTINGS AND MILEAGES OF THE LIVE (CHARTER OR CARGO) AND FERRY SEGMENTS OF THE CAFM. THE FERRY SEGMENT, IF INCLUDED AS PART OF THE TENDER OR BID, MAY HAVE BEEN PREFERRY (TO POSITION THE AIRCRAFT FOR THE LIVE OR CHARTER SEGMENT) OR POSTFERRY (TO REPOSITION THE AIRCRAFT FOR A SUCCEEDING CAFM) OR BOTH. THE PRICE OF EACH CAFM WAS COMPUTED ON THE CERTIFICATE BY MULTIPLYING THE TOTAL LIVE (CHARTER) MILES AND THE TOTAL FERRY MILES STATED ON THE CERTIFICATE BY THE RESPECTIVE LIVE AND FERRY MILEAGE RATES. THE CERTIFICATE WAS APPROVED BY THE CONTRACTING PARTIES AND, WITH THE GOVERNMENT BILL OF LADING, PREPARED AND ACCOMPLISHED FOR THE LIVE SEGMENT OF THE CAFM, WAS SUBMITTED WITH A CARRIER BILL ON A PUBLIC VOUCHER FORM TO THE GOVERNMENT FOR PAYMENT, SUBJECT TO OUR POST-AUDIT PROCEDURES. 31 U.S.C. 71 AND 49 U.S.C. 66.

DURING OUR AUDIT OF THE PAID CHARGES WE OFTEN REQUESTED FROM AAXICO ADDITIONAL INFORMATION, SUCH AS THE TYPE OF AIRCRAFT USED FOR THE CAFM OR FACTUAL EVIDENCE THAT THE FERRY MILEAGE SHOWN ON THE CHARTER CERTIFICATE ACTUALLY WAS FLOWN FOR THE PURPOSES OF THE SPECIFIC CAFM. YOU RESPONDED BY SENDING US COPIES OF AAXICO'S FLIGHT LOGS AND WEIGHT AND BALANCE FORMS WHICH GENERALLY SHOWED THE ACTUAL FLIGHT OF THE AIRCRAFT IN A LIVE (CHARTER OR CARGO) AND FERRY STATUS. SUCH DOCUMENTS HAVE BEEN FURNISHED IN SUPPORT OF THE CLAIMS STATED ON THE SIX SUPPLEMENTAL BILLS HERE IN INVOLVED, FOR ON EACH CAFM YOU ARE CLAIMING ADDITIONAL CHARGES FOR LIVE AND FERRY MILEAGES ACTUALLY FLOWN -- AS EVIDENCED BY YOUR FLIGHT LOGS AND WEIGHT AND BALANCE FORMS--- IN EXCESS OF THE LIVE AND FERRY MILEAGES WHICH YOU REPRESENTED IN YOUR BIDS YOU WOULD FLY AND WHICH WERE RELIED ON BY THE GOVERNMENT IN AWARDING THESE CAFMS TO YOU. AFTER EXAMINING THESE CLAIMS, OUR TRANSPORTATION DIVISION DISALLOWED THEM, STATING GENERALLY ON EACH SETTLEMENT CERTIFICATE THAT THE PERTINENT CAFM WAS BASED ON A CERTAIN NUMBER OF MILES AT A CERTAIN RATE AND THAT THE CHARGES PAID ON THE CAFM BASIS WERE CONSIDERED TO BE THE MAXIMUM AMOUNT PAYABLE.

ALTHOUGH IN YOUR LETTERS REQUESTING REVIEW OF THESE SETTLEMENTS YOU DO NOT SET FORTH ANY PARTICULAR REASONS OR ARGUMENTS AS GROUNDS FOR REVISING THEM, YOUR APPARENT CONTENTION IS THAT THE GOVERNMENT IS LIABLE FOR PAYMENT OF CHARGES FOR FERRY AND LIVE MILEAGES ACTUALLY FLOWN ON THESE CAFMS, EVEN THOUGH THESE MILEAGES ARE IN EXCESS OF THE MILEAGES SPECIFIED IN YOUR BIDS FOR THE CAFMS.

THE TRANSPORTATION SERVICES HEREIN INVOLVED WERE FURNISHED DURING 1953 (ON CAFM) AND DURING 1957, 1958 AND 1959 (FIVE CAFMS). DURING 1953 AAXICO AIRLINES, INC., THEN CALLED AMERICAN AIR EXPORT AND IMPORT COMPANY, HELD A LETTER OF REGISTRATION, ISSUED BY THE CIVIL AERONAUTICS BOARD, AS A LARGE IRREGULAR CARRIER AND WAS IDENTIFIED AS AN IRREGULAR TRANSPORT CARRIER. C.A.B. DOCKET NO. 3934, ORDER NO. E-4825, NOVEMBER 10, 1950. DURING 1957, 1958 AND 1959, YOU HELD A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY, ISSUED BY THE BOARD, AUTHORIZING OPERATIONS AS A CERTIFICATED CARGO CARRIER. NORTH-SOUTH AIR FREIGHT RENEWAL CASE, 22 C.A.B. 253, 267 (1955); AIR FREIGHT CERTIFICATE RENEWAL CASE, 23C.A.B. 186, 210 (1956); AAXICO AIRLINES, CERTIFICATE RENEWAL, 24 C.A.B. 796 (1956). AAXICO COULD PERFORM CHARTER TRIPS INCIDENT TO ITS OPERATIONS AS A LARGE IRREGULAR CARRIER UNDER ORDER NO. E-4825, AND AS A CERTIFICATED CARGO CARRIER, SUBJECT TO C.A.B. REGULATIONS. 14 CFR 207.3. IT WAS REQUIRED TO FILE TARIFFS WITH THE BOARD SHOWING ALL RATES, FARES AND CHARGES FOR THE CHARTER SERVICES. ORDER NO. E-4825. SEE, ALSO, 14 CFR 291.15; 14 CFR 207.4. THE FREQUENCY AND TERRITORIAL LIMITATIONS ATTACHED BY THE BOARD TO COMMERCIAL CHARTER OPERATIONS DID NOT APPLY TO CHARTER TRIPS PERFORMED PURSUANT TO CONTRACTS WITH ANY DEPARTMENT OF THE MILITARY ESTABLISHMENT. SEE, FOR EXAMPLE, C.A.B. DOCKET NO. 4870, ET AL., ORDER NO. E-10788, NOVEMBER 27, 1956; 14 CFR 207.11.

AMERICAN AIR EXPORT AND IMPORT COMPANY LOCAL AIR FREIGHT TARIFF NO. 1, C.A.B. NO. 2, EFFECTIVE NOVEMBER 16, 1950, WAS FILED WITH THE CIVIL AERONAUTICS BOARD AND IS APPLICABLE IN THIS CASE TO THE CAFM FLOWN IN 1953; AAXICO AIRLINES, INC., AIR FREIGHT CHARTER TARIFF NO. 1, C.A.B. NO. 2, EFFECTIVE JANUARY 1, 1957, ALSO FILED WITH THE BOARD, IS APPLICABLE TO THE CAFMS FLOWN DURING 1957, 1958 AND 1959. BY SECTION 403 (B) OF CIVIL AERONAUTICS ACT OF 1938, 49 U.S.C. 483 (B), NOW SECTION 403 (B) OF THE FEDERAL AVIATION ACT OF 1958, 49 U.S.C. 1373 (B), YOUR COMPANY IS PROHIBITED FROM CHARGING A GREATER OR LESS OR DIFFERENT COMPENSATION FOR CHARTER TRANSPORTATION THAN THE RATES AND CHARGES SPECIFIED IN ITS CURRENTLY EFFECTIVE TARIFFS. IN FACT, THE TARIFFS ARE THE SOLE STANDARD FOR THE SERVICES RENDERED AND FOR THE CHARGES TO BE ASSESSED; THEY CANNOT BE VARIED BY REFERENCE TO OUTSIDE CONTRACTS OR AGREEMENTS OR UNDERSTANDING OR PROMISES. UNITED STATES V. ASSOCIATED AIR TRANSPORT, INC., 275 F.2D 827 (1960). HOWEVER, THE CIVIL AERONAUTICS BOARD HAS EXEMPTED CERTAIN CARRIERS, INCLUDING AAXICO, FROM THE PROVISIONS OF SECTION 403 OF THE ACT AND FROM THE BOARD'S ECONOMIC REGULATIONS TO THE EXTENT THAT SECTION 403 AND THE ECONOMIC REGULATIONS WOULD OTHERWISE REQUIRE AAXICO TO APPLY THE FERRY RATES STATED IN ITS TARIFFS TO THE ACTUAL FERRY MILEAGE WHEN THAT MILEAGE EXCEEDS THAT ESTIMATED IN BIDS OR CONTRACTS WITH THE MILITARY TRAFFIC MANAGEMENT AGENCY. C.A.B. DOCKET NO. 9862, ET AL., ORDER NO. E- 13158, NOVEMBER 14, 1958, AS AMENDED BY ORDER NO. E-13243, DECEMBER 5, 1958. THUS, THE GOVERNMENT'S LIABILITY FOR THE MILEAGES ACTUALLY FLOWN DEPENDS NOT ON WHAT WAS STATED AND AGREED TO IN THE CHARTER CERTIFICATES BUT ON WHAT THE APPLICABLE TARIFF PROVIDED, SUBJECT TO THE BOARD'S EXEMPTION ORDERS WHEN THEY BECAME EFFECTIVE.

OUR SETTLEMENT CERTIFICATE DATED JANUARY 18, 1961 (OUR CLAIM NO. TK 643769), DISALLOWED THE CLAIM STATED IN YOUR LETTER OF MARCH 27, 1958, FOR $469.20, FOR ADDITIONAL TRANSPORTATION CHARGES ALLEGEDLY DUE ON CAFM NO. 0202. THAT CAFM WAS PERFORMED IN SEPTEMBER 1953 AND IS GOVERNED BY AMERICAN EXPORT AND IMPORT COMPANY LOCAL AIR FREIGHT TARIFF NO. 1. COVERS A SHIPMENT OF 11,540 POUNDS OF GOVERNMENT PROPERTY TRANSPORTED IN A C-46 TYPE AIRCRAFT FROM MILWAUKEE, WISCONSIN, TO WICHITA, KANSAS, UNDER GOVERNMENT BILL OF LADING AF-2204993. ON YOUR UNNUMBERED BILL DATED OCTOBER 5, 1953, YOU COLLECTED TRANSPORTATION CHARGES OF $928 FOR THIS CAFM. THE BILL WAS SUPPORTED BY THE ACCOMPLISHED BILL OF LADING AND A CHARTER CERTIFICATE INDICATING THAT THE CAFM WAS AWARDED TO AAXICO ON THE BASIS OF 461 PREFERRY MILES, FROM CHARLESTON, WEST VIRGINIA, TO MILWAUKEE, AND 619 LIVE MILES, FROM MILWAUKEE TO WICHITA, FOR A TOTAL OF 1,080 MILES, AT A RATE OF ?85 PER MILE.

IN A LETTER DATED MARCH 27, 1958, YOU CLAIMED ADDITIONAL TRANSPORTATION CHARGES OF $469.20, ALLEGING THAT ON YOUR ORIGINAL BILL YOU HAD FAILED TO CLAIM PAYMENT FOR POSTFERRY MILEAGE FLOWN FROM WICHITA, KANSAS, TO SAN ANTONIO, TEXAS. WITH THAT LETTER YOU ENCLOSED A COPY OF YOUR FLIGHT LOG AND WEIGHT AND BALANCE FORM WHICH SHOW THAT THE C-46 TYPE AIRCRAFT USED FOR CAFM NO. 0202 WAS FLOWN IN A FERRY STATUS FROM CHARLESTON TO MILWAUKEE AND FROM WICHITA TO SAN ANTONIO AND IN A LIVE OR CHARTER STATUS FROM MILWAUKEE TO WICHITA.

ORIGINAL PAGE 14 OF YOUR LOCAL AIR FREIGHT TARIFF NO. 1 CONTAINS C-46 TYPE AIRCRAFT LIVE (CHARTER) RATES, WHICH VARY ACCORDING TO THE LIVE MILEAGE FLOWN, AND A C-46 TYPE AIRCRAFT FERRY RATE OF $90 PER HOUR. THE SETTLEMENT CERTIFICATE WHICH DISALLOWED YOUR CLAIM FOR $469.20 WILL BE RE- EXAMINED AND YOU WILL BE ALLOWED AN ADDITIONAL AMOUNT FOR THE FERRY MILEAGE ACTUALLY FLOWN, AS SHOWN BY YOUR FLIGHT LOG, IN ACCORDANCE WITH THE RATES AND CHARGES IN YOUR LOCAL AIR FREIGHT TARIFF NO. 1. NOTICE OF THE REVISED SETTLEMENT SHOULD REACH YOU IN DUE COURSE.

THE SETTLEMENT CERTIFICATES DISALLOWING YOUR CLAIMS FOR ADDITIONAL TRANSPORTATION CHARGES ON THE FIVE CAFMS FLOWN DURING 1957, 1958 AND 1959 (OUR CLAIM NOS. TK-703385, TK-702745, TK-703031, TK-702744 AND TK 699175) INVOLVE SUBSTANTIALLY SIMILAR FACTUAL SITUATIONS AND IN EACH INSTANCE THE TRANSPORTATION SERVICES FURNISHED ARE GOVERNED BY AAXICO AIRLINES, INC. AIR FREIGHT CHARTER TARIFF NO. 1, C.A.B. NO. 2, SUBJECT TO EXEMPTION ORDERS E-13158 AND E-13243, AS TO TRAFFIC ON OR AFTER DECEMBER 5, 1958. YOUR SUPPLEMENTAL BILL NO. G-1-5-9-11CA (OUR CLAIM NO. TK-702744) STATES A CLAIM FOR $123.50 ADDITIONAL TRANSPORTATION CHARGES ALLEGEDLY DUE ON CAFM NO. 824, FLOWN ON MAY 1, 1959.

CAFM NO. 824 COVERS A SHIPMENT OF AIRPLANE PARTS TRANSPORTED IN A C 46 TYPE AIRCRAFT FROM BROOKLEY AIR FORCE BASE (MOBILE), ALABAMA, TO TRAVIS AIR FORCE BASE, CALIFORNIA, UNDER GOVERNMENT BILL OF LADING AF 9709283, DATED MAY 1, 1959, WHICH SHOWS THE WEIGHT OF THE SHIPMENT AS 13,136 POUNDS. ON YOUR BILL NO. B-1-5-9-11G YOU ORIGINALLY COLLECTED TRANSPORTATION CHARGES OF $3,885.50 FOR THIS CAFM, BASED, ACCORDING TO THE RELATED CHARTER CERTIFICATE, ON 2,045 LIVE MILES FROM BROOKLEY AIR FORCE BASE TO TRAVIS AIR FORCE BASE, VIA OKLAHOMA CITY, OKLAHOMA, AND ON 2,045 POSTFERRY MILES FROM TRAVIS TO BROOKLEY VIA OKLAHOMA CITY, OR A TOTAL OF 4,090 MILES AT ?95 PER MILE. WITH YOUR CLAIM FOR $123.50, REPRESENTING 59 FERRY MILES AND 71 LIVE MILES IN EXCESS OF THE FERRY AND LIVE MILEAGES STATED ON THE CHARTER CERTIFICATE, YOU SUBMITTED A COPY OF THE FLIGHT LOG AND WEIGHT AND BALANCE FORM FOR THE C-46 TYPE AIRCRAFT USED FOR THE CAFM. THESE DOCUMENTS SHOW THAT THE AIRCRAFT WAS FLOWN IN A LIVE OR CHARTER STATUS FROM BROOKLEY TO TRAVIS VIA SAN ANTONIO, TEXAS, AND PHOENIX, ARIZONA, AND IN A POSTFERRY STATUS FROM TRAVIS TO BROOKLEY VIA EL PASO AND SAN ANTONIO, TEXAS.

YOUR AIR FREIGHT CHARTER TARIFF NO. 1 IS "THE SOLE STANDARD FOR SERVICES RENDERED AND CHARGES TO BE ASSESSED AND COLLECTED" ON CAFM NO. 824. UNITED STATES V. ASSOCIATED AIR TRANSPORT, INC., 275 F.2D 827, 832. EFFECTIVE ON MAY 1, 1959, THE DATE OF CAFM NO. 824, THAT TARIFF PROVIDED FOR C-46 TYPE AIRCRAFT LIVE (CHARTER) AND FERRY RATES OF ?95 PER MILE (ORIGINAL PAGE 6-A). RULE NO. 2 OF AIR FREIGHT CHARTER TARIFF NO. 1 PROVIDED:

"APPLICATION OF RATES

"/A) RATES AND CHARGES NAMED HEREIN APPLY TO TRANSPORTATION VIA AAXICO AIRLINES, INC.

"/B) RATES AND CHARGES NAMED HEREIN APPLY TO CHARTER OPERATION OF AIRCRAFT APPLICABLE TO AIR FREIGHT.

"/C) CARRIER WILL PERFORM CHARTER OPERATIONS UNDER TERMS OF THIS TARIFF ONLY WHEN EQUIPMENT AND PERSONNEL ARE AVAILABLE FOR SUCH OPERATION.

"/D)FOR THE PURPOSE OF COMPUTING CHARTER RATES AND CHARGES, THE MILEAGE TO BE USED, INCLUDING CHARTER AND FERRY MILEAGE, WILL BE THE SHORTEST MILEAGE BETWEEN THE POINTS INVOLVED AND OVER THE ROUTES TO BE FLOWN, AS SHOWN BY: (1) U.S. DEPARTMENT OF COMMERCE SPECIAL PUBLICATION NO. 238.

(2) BOOK OF OFFICIAL C.A.B. AIRLINE ROUTE MAPS AND AIRPORT TO AIRPORT MILEAGES.

(3) AND/OR COMBINATION THEREOF.'

AS SHOWN, PARAGRAPH (D) OF RULE NO. 2 REQUIRES FOR BOTH THE LIVE (CHARTER) AND THE FERRY SEGMENTS OF A CAFM A DETERMINATION OF THE "SHORTEST MILEAGE BETWEEN THE POINTS INVOLVED" AND OVER THE "ROUTES TO BE FLOWN.' FOR THE LIVE OR CHARTER SEGMENT OF A CAFM, THE POINTS OF ORIGIN AND DESTINATION INVOLVED ARE REFLECTED IN THE CHARTER CERTIFICATE, THE GOVERNMENT BILL OF LADING, AND THE CARRIER'S AIR WAYBILL. THERE IS NOTHING IN OUR RECORD RELATIVE TO CAFM NO. 824 TO SHOW THAT THE ROUTE OF THE ACTUAL FLIGHT WAS AUTHORIZED OR REQUESTED UNDER THE ARRANGEMENTS MADE WITH THE GOVERNMENT. AS SAID IN THE ASSOCIATED CASE,"DOG-LEG FLIGHTS WHICH PROLONG THE FRONT OR REAR FERRY DISTANCE" ARE NOT PERMITTED, THAT IS, MAY NOT BE CHARGED TO THE CUSTOMER. THIS STATEMENT IS ALSO VALID FOR APPLICATION IN LIVE MILEAGE INSTANCES AND PRECLUDES ANY PAYMENT FOR DOGLEG SEGMENTS WHICH RESULT IN EXCESSES OVER THE SHORTEST (DIRECT) MILEAGE.

IF FERRY SEGMENTS ARE FLOWN ON A CAFM, THE POINTS INVOLVED, THAT IS, THE ACTUAL PREFERRY ORIGIN POINT AND THE ACTUAL POSTFERRY DESTINATION POINT, MUST BE DETERMINED FROM THE CARRIER'S FLIGHT LOGS BECAUSE THE CHARTERER ORDINARILY HAS NO CONTROL OVER NOR ADVANCE KNOWLEDGE OF THE ORIGIN OF THE PREFERRY SEGMENT AND THE DESTINATION OF THE POSTFERRY SEGMENT OF THE CAFM. ANY INTERMEDIATE CHECKPOINTS OR STOPS MADE DURING THE FERRY FLIGHT SEGMENTS OF THE CAFM, NOT SHOWN TO HAVE BEEN MADE AT THE REQUEST AND FOR SOME PURPOSE OF THE CHARTERER, NECESSARILY ARE MADE FOR THE CONVENIENCE OF THE CARRIER AND CANNOT BE CONSIDERED AS "POINTS INVOLVED" IN THE CAFM. UNDER THE TARIFF THE COMPENSABLE ROUTE IS THE DIRECT ROUTE BETWEEN THESE POINTS AND THE "SHORTEST MILEAGE" IS THE MILEAGE OVER THAT ROUTE, COMPUTED FROM THE SOURCES SHOWN IN RULE NO. 2 (D). IF THE CAFM IS FLOWNON OR AFTER DECEMBER 5, 1958, THE DATE OF THE CIVIL AERONAUTICS BOARD'S EXEMPTION ORDER PERTINENT HERE, THE MAXIMUM ALLOWABLE FERRY MILEAGE IS THAT STATED IN THE PARTICULAR CHARTER CERTIFICATE INVOLVED.

WHEN THIS TARIFF IS APPLIED TO CAFM NO. 824, WE FIND THAT THE POINTS INVOLVED IS THE LIVE OR CHARTER SEGMENT OF THE CAFM ARE BROOKLEY AIR FORCE BASE, ALABAMA, AND TRAVIS AIR FORCE BASE, CALIFORNIA, THE ORIGIN AND DESTINATION OF THE SHIPMENT AS SHOWN ON GOVERNMENT BILL OF LADING AF- 9709283 AND AIRWAY BILL NO. 329MSY48627. THERE IS NO INDICATION IN THESE DOCUMENTS, OR ELSEWHERE IN THE RECORD, THAT THE INTERMEDIATE STOPS, INDICATED BY THE FLIGHT LOG AS BEING MADE AT SAN ANTONIO, TEXAS, AND PHOENIX, ARIZONA, WERE SELECTED BY THE CHARTERER; THE STOPS SEEM TO HAVE BEEN MADE SOLELY FOR THE CONVENIENCE OF THE CARRIER, SINCE THEY ARE SHOWN IN THE FLIGHT LOG TO HAVE BEEN MADE FOR THE PURPOSE OF REFUELING. THE POINTS INVOLVED IN THE POSTFERRY SEGMENT OF THE CAFM ARE TRAVIS AIR FORCE BASE, CALIFORNIA, AND BROOKLEY AIR FORCE BASE, ALABAMA, AS SHOWN IN THE FLIGHT LOG.

ALTHOUGH THAT DOCUMENT INDICATES THAT INTERMEDIATE STOPS WERE MADE AT EL PASO AND SAN ANTONIO, TEXAS, THEY NECESSARILY WERE MADE FOR THE CONVENIENCE OF THE CARRIER. THUS, FOR THE PURPOSE OF COMPUTING CHARTER RATES AND CHARGES ON CAFM NO. 824, THE "ROUTES TO BE FLOWN" ARE THE DIRECT ROUTES BETWEEN BROOKLEY AND TRAVIS, THE "POINTS INVOLVED," AND THE "SHORTEST MILEAGE" BETWEEN THOSE POINTS IS THE DISTANCE OVER THE DIRECT ROUTE COMPUTED FROM THE MILEAGE SOURCES SHOWN IN PARAGRAPH (D) OF RULE NO. 2. SINCE THE CAFM WAS FLOWN AFTER DECEMBER 5, 1958, THE INITIAL DATE OF THE CIVIL AERONAUTICS BOARD'S EXEMPTION ORDER APPLICABLE TO YOUR COMPANY, ANY ALLOWABLE FERRY MILEAGE WILL BE LIMITED TO THAT COMPUTABLE OVER THE DIRECT ROUTE, USING THE MILEAGE STATED IN THE CHARTER CERTIFICATE ON CAFM NO. 824 AS MAXIMUM.

YOUR SUPPLEMENTAL BILL NO. 1-10-8-7C (A), OUR CLAIM NO. TK-703385, STATES A CLAIM FOR $464.55 ADDITIONAL TRANSPORTATION CHARGES ALLEGEDLY DUE ON CAFM NO. CA 0182 F6, FLOWN ON OCTOBER 18, 1958. CAFM NO. CA 0182 F6 COVERS A SHIPMENT OF AIRPLANE PARTS IN A C-46 TYPE AIRCRAFT TRANSPORTED FROM BROOKLEY AIR FORCE BASE (MOBILE), ALABAMA, TO MCCLELLAN AIR FORCE BASE (SACRAMENTO) CALIFORNIA, UNDER GOVERNMENT BILL OF LADING AF-8888701, WHICH SHOWS THE SHIPMENT AS WEIGHING 12,965 POUNDS. ON YOUR BILL NO. G-1- 10-8-7C YOU ORIGINALLY STATED AND COLLECTED TRANSPORTATION CHARGES OF $3,549.20 FOR THE CAFM INVOLVED, BASED ON, ACCORDING TO THE RELATED CHARTER CERTIFICATE, 132 PREFERRY MILES FROM NEW ORLEANS, LOUISIANA, TO MOBILE, 2,118 LIVE MILES FROM MOBILE TO MCCLELLAN AIR FORCE BASE VIA SAN ANTONIO, TEXAS, AND 1,486 POSTFERRY MILES FROM MCCLELLAN AIR FORCE BASE, TO SAN ANTONIO, OR A TOTAL OF 3,736 MILES AT ?95 A MILE. WITH YOUR CLAIM FOR $464.55, REPRESENTING 489 LIVE AND FERRY MILES IN EXCESS OF THAT STATED ON THE CHARTER CERTIFICATE, YOU SUBMITTED A COPY OF THE FLIGHT LOG AND WEIGHT AND BALANCE FORM FOR THE C-46 TYPE AIRCRAFT USED FOR THE CAFM. THESE DOCUMENTS SHOW THAT THE AIRCRAFT WAS FLOWN IN A LIVE STATUS FROM BROOKLEY TO TRAVIS VIA SAN ANTONIO AND TUSCON, ARIZONA. THE ADDITIONAL FERRY MILEAGE IS BASED ON THE ACTUAL PREFERRY FLIGHT FROM SAN ANTONIO TO BROOKLEY RATHER THAN FROM NEW ORLEANS TO BROOKLEY.

CONSISTENT WITH THE RULING IN THE ASSOCIATED CASE YOUR COMPANY IS ENTITLED TO PAYMENT FOR THE ADDITIONAL PREFERRY MILES. HOWEVER, ADDITIONAL LIVE MILEAGE CHARGES FOR FLIGHT VIA SAN ANTONIO AND TUCSON MAY NOT BE ALLOWED, INASMUCH AS THE USE OF SUCH ROUTE DOES NOT PROVIDE THE "SHORTEST MILEAGE.' OUR UNDERSTANDING OF RULE 2 (D) IS THAT UNDER ITS TERMS ONLY THE MILEAGE SPECIFIED BETWEEN BROOKLEY (MOBILE) AND MCCLELLAN (SACRAMENTO) MAY BE ALLOWED, AND THE SETTLEMENT CERTIFICATE WILL BE REVISED ACCORDINGLY.

YOUR SUPPLEMENTAL BILL NO. G-1-11-8-21C (A), (OUR CLAIM NO. TK 702745), STATES A CLAIM FOR $451.25, ADDITIONAL TRANSPORTATION CHARGES ALLEGEDLY DUE ON CAFM NO. CA-0446-F2 REF.CAM 560, FLOWN ON NOVEMBER 28, 1958. CAFM NO. CA-0446-F2 COVERS A SHIPMENT OF AIRPLANE PARTS SHOWN ON BILL OF LADING AF-9298483 AS WEIGHING 4,293 POUNDS, TRANSPORTED IN A C-46 TYPE AIRCRAFT FROM BROOKLEY AIR FORCE BASE TO TRAVIS AIR FORCE BASE. ON YOUR BILL NO. G -1-11-8-21C YOU ORIGINALLY STATED AND COLLECTED TRANSPORTATION CHARGES OF $3,899.75, BASED ON, ACCORDING TO THE RELATED CHARTER CERTIFICATE, 650 PREFERRY MILES FROM OKLAHOMA CITY TO MOBILE, 2,036 LIVE MILES FROM MOBILE TO TRAVIS AND 1,419 POSTFERRY MILES FROM TRAVIS TO OKLAHOMA CITY, OR A TOTAL OF 4,105 MILES AT ?95 PER MILE. WITH YOUR CLAIM FOR $451.25, YOU SUBMITTED A COPY OF THE FLIGHT LOG AND WEIGHT CLAIM FOR $451.25, YOU SUBMITTED A COPY OF THE FLIGHT LOG AND WEIGHT AND BALANCE FORM FOR THE C- 46 TYPE AIRCRAFT USED FOR THE CAFM. THESE DOCUMENTS SHOW THAT THE AIRCRAFT WAS FLOWN IN A PREFERRY STATUS FROM SAN ANTONIO TO BROOKLEY, NEW MEXICO, AND OGDEN, UTAH, AND IN A POSTFERRY STATUS FROM TRAVIS TO SAN ANTONIO. CONSISTENT WITH THE PRINCIPLES OF THE ASSOCIATED CASE, YOU ARE ENTITLED TO CHARGES FOR THE PREFERRY MILEAGE FROM SAN ANTONIO TO BROOKLEY AND THE POSTFERRY MILEAGE FROM TRAVIS TO SAN ANTONIO. IN ACCORDANCE WITH OUR PREVIOUSLY STATED VIEW AS TO LIVE MILEAGE ALLOWANCES, YOU ARE ENTITLED TO THE LIVE MILEAGE FROM BROOKLEY TO TRAVIS ON A DIRECT LINE WITHOUT GIVING EFFECT TO MOVEMENT VIA SAN ANTONIO, ALBUQUERQUE, AND OGDEN. OUR SETTLEMENT WILL BE REVISED ACCORDINGLY.

YOUR SUPPLEMENTAL BILL NO. CAFM-824 (OUR CLAIM TK-699175), STATES A CLAIM FOR $75.62 ADDITIONAL TRANSPORTATION CHARGES ALLEGEDLY DUE ON CAFM NO. 3323, FLOWN ON JANUARY 12, 1957. CAFM NO. 3323 COVERS A SHIPMENT OF ROCKET AMMUNITION SHOWN ON BILL OF LADING AF-5115010 AS WEIGHING 10,437 POUNDS, TRANSPORTED IN A C-46 TYPE AIRCRAFT FROM TUSCON, ARIZONA, TO MCCHORD AIR FORCE BASE (TACOMA) WASHINGTON. ON AN UNNUMBERED BILL, PAID IN MARCH 1957, YOU ORIGINALLY COLLECTED TRANSPORTATION CHARGES OF $1,671.10 BASED ON, ACCORDING TO THE RELATED CHARTER CERTIFICATE, 766 PREFERRY MILES FROM SAN ANTONIO TO TUCSON AND 1,200 LIVE MILES FROM TUCSON TO TACOMA, IN A C-46 TYPE AIRCRAFT, OR A TOTAL OF 1,966 MILES AT ?85 PER MILE. WITH YOUR CLAIM FOR $75.62, YOU SUBMITTED A COPY OF THE FLIGHT LOG AND WEIGHT AND BALANCE FORM FOR THE C-46 TYPE AIRCRAFT USED FOR THE CAFM. THESE DOCUMENTS SHOW THAT THE AIRCRAFT WAS FLOWN IN A PREFERRY STATUS FROM SAN ANTONIO TO TUSCON AND IN A LIVE STATUS FROM TUSCON TO TACOMA VIA OGDEN. AS IN OTHER INSTANCES DESCRIBED ABOVE, AND IN ACCORDANCE WITH THE ASSOCIATED CASE AND THE PROVISIONS OF YOUR TARIFF, YOU ARE ENTITLED ONLY TO THE CHARGE BASIS WHICH WAS BILLED AND ORIGINALLY COLLECTED BY YOU, THAT IS, $1,671.10. THIS AMOUNT INCLUDES THE ALLOWANCE OF LIVE MILEAGE ON A DIRECT LINE BETWEEN TUCSON AND TACOMA, USING SPECIAL PUBLICATION NO. 238, WITHOUT REGARD TO MOVEMENT VIA OGDEN.

YOUR SUPPLEMENTAL BILL NO. G-1-12-8-6C (A), CA 0447-F2 (OUR CLAIM NO. TK- 703031) STATES A CLAIM FOR $30.40 ADDITIONAL TRANSPORTATION CHARGES ALLEGEDLY DUE ON CAFM CA 0447 F2 REF.CAM 561, FLOWN ON DECEMBER 2, 1958. THIS CAFM COVERS A SHIPMENT OF AIRPLANE PARTS, SHOWN ON BILL OF LADING AF- 9298704 AS WEIGHING 7,000 POUNDS, TRANSPORTED IN A C-46 TYPE AIRCRAFT FROM BROOKLEY AIR FORCE BASE TO CHARLESTON AIR FORCE BASE (CHARLESTON), SOUTH CAROLINA. ON YOUR BILL NO. G-1-12-8-6C YOU ORIGINALLY STATED AND COLLECTED TRANSPORTATION CHARGES OF $1,216 FOR THIS CAFM, BASED ON, ACCORDING TO THE RELATED CHARTER CERTIFICATE, 137 PREFERRY MILES FROM NEW ORLEANS TO MOBILE, 508 LIVE MILES FROM MOBILE TO CHARLESTON, AND 635 POSTFERRY MILES FROM CHARLESTON TO NEW ORLEANS, OR A TOTAL OF 1,280 MILES AT ?95 PER MILE. WITH YOUR CLAIM FOR $30.40 YOU SUBMITTED A COPY OF THE FLIGHT LOG AND WEIGHT AND BALANCE FORM FOR THE C-46 TYPE AIRCRAFT USED FOR THE CAFM. THESE DOCUMENTS SHOW THAT THE AIRCRAFT WAS FLOWN IN A PREFERRY STATUS FROM NEW ORLEANS TO MOBILE, IN A LIVE STATUS FROM MOBILE TO CHARLESTON, AND IN A POSTFERRY STATUS FROM CHARLESTON TO DETROIT. ACCORDANCE WITH THE ASSOCIATED CASE AND THE PROVISIONS OF YOUR TARIFF, YOU WOULD BE ENTITLED TO ADDITIONAL FERRY MILEAGE BY REASON OF THE CHANGE IN THE POSTFERRY DESTINATION. OUR SETTLEMENT WILL BE REVISED ACCORDINGLY.

NOTICE OF THE REVISED SETTLEMENTS IN EACH INSTANCE SHOULD REACH YOU IN DUE COURSE.