Air carriers and foreign air carriers are exempted from 49 U.S.C. 41510 and 41310(b) and part 221 of this chapter to the extent necessary to provide free or reduced-rate foreign air transportation, including passes, to the following:

1. (a) Directors, officers, employees, and retirees and members of their immediate families, of any carrier or of any affiliate of such carrier, subject to the requirements of § 223.25.

2. (b) Persons to whom the carrier is required to furnish such transportation by law or government directive or by a contract or agreement between the carrier and the government of any country served by the carrier. The Department may, without prior notice, direct the carrier to file a tariff covering such transportation if it finds that the law or government directive in question requires the provision of such transportation. This transportation may be provided only if:

   1. (1) The contract or agreement is filed with the Department, and it is not disapproved by the Department; and
   2. (2) The law or government directive does not require the furnishing of such transportation to the general public or any segment thereof.
3. (c) Technical representatives of companies that have been engaged in the manufacture, development or testing of a particular type of aircraft or aircraft equipment, when the transportation is provided for the purposes of in-flight observation, and subject to applicable regulations of the Federal Aviation Administration such as regulations pertaining to admission of persons to the aircraft flight deck.
4. (d) Any person in return for goods or services provided by such person whether the transportation is used by that person or any designee of such person;
5. (e) Persons engaged in promoting transportation and their immediate families, when such transportation is undertaken for a promotional purpose;
6. (f) Persons being transported on an inaugural flight or delivery flight of the carrier except that, in the case of delivery flights, this exemption extends only to free, and not reduced-rate, transportation;
7. (g) Any law-enforcement official, including any person who has the duty of guarding government officials traveling on official business against unlawful interference;
8. (h) As compensation to persons that file a complaint or claim against the carrier;
9. (i) Charitable organizations; and
10. (j) Any person in an aviation-related occupation when the transportation is provided for the purpose of technical in-flight observation.

[ER-1371, 48 FR 57118, Dec. 28, 1983, as amended by Doc. No. DOT-OST-2014-0140, 84 FR 15930, Apr. 16, 2019]