Frontier Airlines, Inc.

Order 04-08-20
OST-04-16943 - Violations of 49 U.S.C. § 41712 and 14 CFR Part 212

Issued and Served August 18, 2004

Consent Order

Blue Moon engaged in significant indirect air carrier service pursuant to an "aircraft management and charter services agreement" with Frontier, requiring, among other things, that Frontier place Blue Moon's aircraft on its Part 121 Operating Certificate and operate it exclusively for charter flights "arranged and sponsored by" Blue Moon.

Pursuant to its arrangement with Frontier, Blue Moon held out air transportation in its own right and not as an agent of Frontier or any other properly certificated entity through direct solicitation. Blue Moon also held out in its own right on its Internet website, which invited potential customers to request quotes for charters aboard an A‑319 that it claimed to operate. Blue Moon's efforts resulted in the procurement of a number of contracts for air transportation, ranging from single flights to operations over an entire professional sports season, into which Blue Moon entered as a principal, despite its lack of economic authority.

Frontier Airlines, Inc., is assessed $30,000 in compromise of civil penalties that might otherwise be assessed for the violations described in ordering paragraphs 2, 3, and 4, above. Of this total penalty amount, $15,000 shall be due and payable within 30 days of the issuance of this order.

By: Rosalind Knapp