N.M. Admin. Code § 18.11.10.10

Current through Register Vol. 35, No. 17, September 10, 2024

Section 18.11.10.10 - AIR CARRIER CONTRACT REQUIREMENTS

A. The following provisions shall be required in the contract between grant recipient and the air carrier:

(1) Payment to the air carrier shall be made in arrears on a per-flight-completed basis.

(2) The air carrier should submit an invoice at the beginning of each month for the prior month based on the number of flights that it actually completed in conformance with the contract.

(3) Submitted invoices should request an amount in accordance with the allowances stipulated by the parties' contract, detailing the service actually completed, including date of service, aircraft type, routing, and frequency of service, and any actual variations from the service contemplated by the contract.

(4) If a carrier is forced by operational exigencies to make ad hoc service adjustments to its service, such as aircraft type or routing, the carrier should report those deviations on its invoice with the appropriate adjustments. For instance, if the carrier substituted a smaller, less expensive aircraft type than agreed to, due to mechanical or other problems involving the larger aircraft, the subsidy rate should be reduced accordingly.

(5) Flights that did not conform to the terms and stipulations of the contract between the grant recipient and the air carrier will not be compensable unless approved in advance by the grant recipient.

(6) Only completed flights are considered eligible for payment unless otherwise excused under the terms of the contract between the grant recipient and the air carrier. For example, weather conditions may require the aircraft to return to its airport of origin before reaching its scheduled destination.

(7) Flights that never take-off because of weather, mechanical problems, air traffic control issues, crew shortages/flight and duty time issues, are not compensable.

(8) All flights that can be safely operated must be completed to be compensable; flights that overfly points for lack of traffic will not be compensated.

N.M. Admin. Code § 18.11.10.10

Adopted by New Mexico Register, Volume XXXII, Issue 20, October 26, 2021, eff. 10/26/2021