Flight-Ops International, Inc. d/b/a SkyXpress Airline

Issued and Served June 17, 2003

Order 03-6-24
OST-03-14194 - Economic Enforcement Consent Order

Consent Order

Since November 2002, Flight-Ops, a Canadian charter air taxi operator registered pursuant to 14 CFR Part 294 of the Department's regulations, has specialized in air service between Kalispell, Montana, and Calgary, Alberta. Foreign carriers operating under Part 294 are limited to charter operations. In May 2003, Flight-Ops filed an application with the Department to conduct scheduled service to and from the United States. However, prior to the final disposition of its application for scheduled authority, Flight-Ops held out via its Internet website and operated a number of flights pursuant to a published schedule between Kalispell and Calgary in violation of 49 U.S.C. § 41301, which requires that foreign air carriers obtain permit authority from the Department prior to commencing scheduled service to the United States. Moreover, Flight-Ops held out and operated such service under an unregistered business name, SkyXpress Airline, in contravention of the requirements of 14 CFR 294.31. Any violation of 14 CFR 294.31 or 49 U.S.C. § 41301 also constitutes an unfair and deceptive practice and unfair method of competition in violation of 49 U.S.C. § 41712.

The Enforcement Office has carefully considered all of the information provided by FlightOps, but continues to believe that enforcement action is warranted. In this connection and in order to avoid litigation, the Enforcement Office and Flight-Ops have reached a settlement of this matter. Without admitting or denying the violations described above, Flight-Ups consents to the issuance of this order to cease and desist from future violations of 14 CFR 294.31 and 49 U.S.C. § 41301 and 41712 and to the assessment of $8,000 (USD) in compromise of potential civil penalties otherwise assessable. Of this total penalty amount, $4,000 shall be paid under the terms described below. The remaining $4,000 shall be suspended for one year following the issuance of this consent order, and then forgiven, unless, during this time period, Flight-Ups violates this order's cease and desist or payment provisions, in which case the entire unpaid portion of this civil penalty shall become due and payable immediately and Flight-Ops may be subject to further and more stringent enforcement action.

By: Rosalind Knapp