AGS Partnership

Order 04-2-7
OST-04-16943 - Violations of 49 U.S.C. 41101 and 41712

Issued and Served: February 9, 2004

Consent Order | Word

Between November 2001 and March 2003, on a substantial number of occasions, AGS provided charter air transportation for compensation or hire to numerous college and professional sports teams using two DC-9-15 aircraft. During this time, AGS obtained its business largely through the use of several air charter brokers, including Scott Aviation, an affiliated air taxi 8 with which AGS also shares common ownership and substantial managerial and other operational resources. Starting with AGS's inception in 2001, Scott Aviation served as a conduit for marketing AGS's aircraft to the general public and for receiving offers for their operation in air transportation. Specifically, AGS, through Scott Aviation, sent written material to air charter brokers and other members of the general public holding out the availability of AGS's aircraft for charter flights.

AGS Partnership is assessed $65,000 in compromise of civil penalties that might otherwise be assessed for the violations described in ordering paragraphs 2 and 3, above. Of the assessed penalty, $32,500 is due and payable within 30 days of the date of issuance of this order. The remaining $32,500 shall be suspended for two years following the issuance of this order, and then forgiven, unless AGS Partnership violates this order's cease and desist or payment provisions.

By: Rosalind Knapp