Order 01-02-8

Order 01-2-8

Aloha Airlines, Incorporated

Order 01-2-8

Issued and Served February 9, 2001

Consent Order

Violations of 49 USC 41712 and 14 CFR Part 399

Between October and December 2000, Aloha published and broadcast advertisements offering a $99 roundtrip fare from several Hawaiian cities to Las Vegas, that failed to meet the requirements of Part 399. Both the printed and broadcast advertisements in question begin with the statement "Soon Another Big Name Will be Appearing in Las Vegas. Aloha Airlines. Daily flights from Honolulu and Kahalui to Las Vegas. [Coming] Beginning February 14, 2001." In the broadcast version of the ad, the speaker simply says "Fly three segments between now and December 20, 2000, and receive a special $99 roundtrip fare to Las Vegas on Aloha Airlines." Subsequently, the words "$99 Roundtrip (Plus tax)" appear on the screen, superimposed on two playing cards. Neither taxes nor fees are mentioned verbally.

The printed advertisement states that AlohaPass members who fly three roundtrip inter-island flights on Aloha or Island Air between October and December 2000, would receive a "special $99 roundtrip fare" on Aloha Airlines to Las Vegas. (We refer in this order to such earned fares as a "certificate.") The small print at the bottom of the advertisement states: "Advance reservations required. Fare is plus taxes and subject to availability.

In mitigation, Aloha asserts that its policy has always been to provide complete and accurate information in advertising and to comply fully with all applicable laws and regulations. Aloha also states that its special Las Vegas fares were offered to its AlohaPass members to acquaint them with its new service from the Hawaiian Islands to Las Vegas, Nevada. Once the carrier learned that its advertised fares did not properly include the applicable taxes and fees, the carrier worked to correct the matter immediately. To this end, the carrier offered the fare without any additional taxes to all passengers who had already used their certificates to purchase tickets on the desired Las Vegas flights by the closing date of the promotion (December 20,2000). With regard to the AlohaPass members who later automatically received the special certificates after completing the three segments, Aloha sent additional information with the certificate, which explained to the prospective passenger that the fare would be $99 plus applicable taxes, and the nature and amount of those taxes. Aloha further states that it will endeavor to resolve any remaining concerns of its customers.

Aloha consents to the issuance of this order to cease and desist from future violations of 49 U.S.C. § 41712 and 14 CFR 399.84, and to the assessment of $20,000 in compromise of potential civil penalties. Of this total penalty amount, $10,000 shall be due and payable within 15 days of the issuance of this order. The remaining $10,000 shall be suspended for one year following issuance of this order, and then forgiven, unless Aloha violates this order's cease and desist provision within that one-year period, or fails to comply with the order's payment provisions, in which case the entire unpaid portion of the $10,000 penalty shall become due and payable immediately, and the carrier may be subject to further enforcement action.

By: Rosalind Knapp