B-134739, SEP. 18, 1963

B-134739, SEP. 18, 1963

TO THE SECRETARY OF THE AIR FORCE:

REFERENCE IS MADE TO LETTER OF JULY 25, 1963, FROM THE ASSISTANT SECRETARY OF THE AIR FORCE (FINANCIAL MANAGEMENT) REQUESTING A DECISION AS TO WHETHER IN VIEW OF PRESENT OPERATING CONDITIONS THE MILITARY AIR TRANSPORT SERVICE MAY DISCONTINUE THE PRACTICE OF COLLECTING FOR MEALS SERVED TO OFFICERS AND CIVILIANS TRAVELING ON CONTRACT CARRIER FLIGHTS.

THE CIRCUMSTANCES PROMPTING THE REQUEST FOR DECISION ARE SET OUT IN DETAIL IN THE LETTER FROM THE ASSISTANT SECRETARY OF THE AIR FORCE. BRIEFLY, IT IS STATED THAT, PREVIOUSLY THE GOVERNMENT WAS PROCURING COMMERCIAL AIR TRANSPORTATION BY FORMAL ADVERTISING WITH THE RESULT THAT THE CONTRACTS INCLUDED SPECIFIC PROVISIONS REQUIRING THE CONTRACTOR TO SERVE MEALS WHICH WERE DESCRIBED IN DETAIL; THAT IT WAS GENERALLY CONSIDERED THAT THE CARRIERS INCLUDED THE COST OF PROVIDING SUCH MEALS IN COMPUTING THEIR BID PRICES SO THAT APPROPRIATED FUNDS WERE BEING EXPENDED FOR THE PURCHASE OF MEALS FURNISHED TO PASSENGERS; AND THAT IN ORDER THAT THE GOVERNMENT BE REIMBURSED FOR THE COST OF MEALS FURNISHED OFFICERS AND CIVILIANS, AS REQUIRED BY THE ANNUAL APPROPRIATION ACTS, THE DEPARTMENT OF THE AIR FORCE INITIATED PROCEDURES FOR COLLECTING FOR IN-FLIGHT MEALS.

IT IS EXPLAINED, HOWEVER, THAT THE SITUATION AT PRESENT IS QUITE DIFFERENT. PRESENT TRANSPORTATION CHARGES ARE BASED UPON A MINIMUM RATE ESTABLISHED BY THE CIVIL AERONAUTICS BOARD AND IN ESTABLISHING RATES THE BOARD HAS TRADITIONALLY CONSIDERED THE EXPENSE OF SERVING IN FLIGHT MEALS TO BE AN INDIRECT COST APPROPRIATE FOR DISTRIBUTION TO ALL BUSINESS OF THE AIRLINE. THUS THE RATES APPROVED BY THE BOARD ARE IDENTICAL FOR THE SAME CLASS OF SERVICE BETWEEN THE SAME TWO POINTS REGARDLESS OF WHETHER THE CARRIER SERVES MEALS TO THE PASSENGERS, AND WHEN MEALS ARE SERVED, THE CARRIERS SERVE ALL PASSENGERS WITHOUT REGARD TO WHETHER THEY HAVE PAID FOR THEIR MEALS. THE MILITARY AIR TRANSPORT SERVICE HAS BEEN ABLE TO OBTAIN, CONSISTENTLY, COMMERCIAL CONTRACT AIRLIFT SERVICES ON A ROUND-TRIP OR ONE- WAY BASIS AT MINIMUM RATES ESTABLISHED BY THE BOARD, AND ON THE BASIS OF SUCH RATES IT IS IMPOSSIBLE TO ANY LONGER COMPUTE TARIFFS SO AS TO PAY FOR TRANSPORTATION BUT NOT FOR FOOD.

IN VIEW OF THIS, THE ASSISTANT SECRETARY STATES THAT IT IS ADMINISTRATIVELY DESIRED TO AUTHORIZE THE MILITARY AIR TRANSPORT SERVICE TO SUSPEND COLLECTION FOR IN-FLIGHT MEALS SERVED TO OFFICERS AND CIVILIANS TRAVELING ON CONTRACT CARRIER FLIGHTS, BUT THAT THIS CHANGE WILL NOT ALTER THE REQUIREMENT THAT THE AVAILABILITY OF COMPLIMENTARY MEALS BE TAKEN INTO CONSIDERATION IN DETERMINING THE AMOUNT OF PER DIEM ALLOWANCE TO WHICH MEMBERS OF THE ARMED FORCES AND CIVILIAN EMPLOYEES OF THE GOVERNMENT MAY BE ENTITLED. THE ASSISTANT SECRETARY REQUESTS OUR CONCURRENCE SO THAT THE NECESSARY CHANGES IN THE ADMINISTRATIVE PROCEDURE MAY BE MADE.

SINCE IN THE CIRCUMSTANCES PRESENTED THE CHARGES FOR TRANSPORTATION PROVIDED TO GOVERNMENT TRAVELERS ON THE DESCRIBED CONTRACT CHARTER FLIGHTS APPEAR TO BE SUBJECT TO TARIFF RATES FIXED BY THE CIVIL AERONAUTICS BOARD ON SUBSTANTIALLY THE SAME BASIS AS TARIFF RATES ARE ESTABLISHED FOR PRIVATE COMMERCIAL FLIGHTS, THERE APPEARS TO BE NO JUSTIFICATION FOR NOW TREATING GOVERNMENT PASSENGERS TRAVELING ON THE CHARTER FLIGHTS DIFFERENTLY FROM GOVERNMENT PASSENGERS TRAVELING ON REGULAR COMMERCIAL FLIGHTS, WHERE IN-FLIGHT MEALS ARE FURNISHED.

ACCORDINGLY, SHOULD YOU DEEM IT TO BE OTHERWISE IN THE INTEREST OF THE GOVERNMENT TO DO SO, THE DEPARTMENTAL REGULATIONS MAY BE REVISED TO DISCONTINUE THE ADMINISTRATIVE PRACTICE OF COLLECTING FOR IN-FLIGHT MEALS SUPPLIED TO GOVERNMENT TRAVELERS ON CONTRACT CHARTER FLIGHTS.