Order 03-02-13

Order 03-02-13

Boston-Maine Airways Corp.

Order 03-02-13
OST-03-14194

Issued and Served February 14, 2003

Consent Order

Violations of 49 USC 41712

Order 2003-2-13, the Department (1) approves this settlement and the provisions of the order as being in the public interest, (2) finds that by engaging in the conduct described, Boston-Maine Airways Corp. d/b/a Pan Am Clipper Connection engaged in an unfair and deceptive practice and an unfair method of competition in violation of 49 U.S.C. Section 41712; and, (3) Boston-Maine Airways Corp. d/b/a Pan Am Clipper Connection is ordered to cease and desist from further similar violations of 49 U.S.C. Section 41712. Until recently, all of the schedule listings in the Official Airline Guide (OAG) for BostonMaine's operations were offered under the "PN" code of Pan American Airways Corp. Although Boston-Maine and Pan Am are affiliated air carriers, they are separate companies that do not have a code-share arrangement. While Boston-Maine was authorized by the Department to hold itself out under the trade name "Pan Am Clipper Connection," it was not authorized to hold itself out under the name "Pan Am" or to use Pan Am's "PN" code. Furthermore, although Boston-Maine and Pan Am maintained separate websites, all reservations for both carrier's flights were made on the Pan Am website. Passengers using the Boston-Maine website to book a flight were automatically linked to the Pan Am website without any notice being given to the passenger that the booking was being made on the Pan Am website.

Both the Enforcement Office and Boston-Maine, in order to avoid litigation and without Boston-Maine's admitting or denying the alleged violations, agree to the issuance of this order to cease and desist from future violations of 49 U.S.C. § 41712 similar to those described above, and to the assessment of $40,000 in compromise of potential civil penalties. Of this penalty amount, $20,000 shall be paid according to the schedule set out in the ordering paragraphs infra; the remaining $20,000 shall be suspended for one year following the service date of this order.

By: Rosalind Knapp