Scott Aviation, Inc.

Order 04-2-6
OST-04-16943 - Violations of 49 U.S.C. 41101 and 41712 and 14 CR 298.31

Issued and Served: February 9, 2004

Consent Order | Word

Scott Aviation states that it did not intend to hold itself out as the operator of DC-9 aircraft, but that it intended to contract with charter customers as an agent for its affiliated company, AGS Partnership. Scott Aviation asserts that its belief that it was not operating as a common carrier was based on advice received from its local FAA Flight Standards District Office. Moreover, the carrier points out that it stopped operating the DC-9 aircraft once it became aware of the Department's objections. Scott also notes that it is currently pursuing certification by the Department under 49 U.S.C. § 41102 and by the FAA under 14 CFR Part 121. Lastly, Scott Aviation has agreed to work with the Department to educate similarly situated carriers regarding the laws governing the holding out and provision of air transportation and the Department's economic licensing requirements.

Scott Aviation, in order to avoid litigation and without admitting or denying the alleged violations, agrees to the issuance of this order to cease and desist from future violations of 49 U.S.C. § 41101 and 41712 as described above, and to the assessment of $65,000 in compromise of potential civil penalties otherwise due and payable. Of this total penalty amount, $22,500 shall be due and payable within 30 days of the issuance of this order and $10,000 shall be due and payable on December 15, 2004.

By: Rosalind Knapp