Home | Search | Help
OST by Number | OST by Order | OST by Carrier | OST by Subject | OST by Day
OIA by Carrier/Subject | OIA by Day | FAA by Number | FAA by Subject | FAA by Day
Carrier Financials | Charter Office | Answer/Reply Calendar
Updated:
OST-2006-23528 - 2006 Consent Orders
|
I.M.P. Group Limited d/b/a Execaire Order 2006-1-17 Issued and Served January 23, 2006 This order concerns unauthorized passenger air service between various cities in the United States by I.M.P. Group Limited d/b/a Execaire, a Canadian charter air taxi registered with the Department pursuant to 14 CFR Part 294. The carriage of local traffic for compensation or hire by foreign air carriers, including Canadian charter air taxis, between two points in the United States, a practice commonly referred to as cabotage, is a violation of 49 U.S.C. 41703, which prohibits cabotage except under very limited circumstances that do not apply here. Registered Canadian charter air taxis that engage in cabotage without Departmental authorization also violate 14 CFR 294.81 , which applies the general statutory prohibition in section 41703 specifically to them as a class of foreign air carrier. Violations of section 41703 and Part 294 also constitute an unfair and deceptive trade practice and unfair method of competition in violation of 49 U.S.C. 41712. This consent order directs Execaire to cease and desist from such further violations and to pay a compromise civil penalty of $20,000. By: Rosalind Knapp Aero Peninsule Ltee d/b/a Air Optima Issued and Served February 8, 2006 We find that Aéro Péninsule Ltée d/b/a Air Optima violated 49 U.S.C. § 41301 by holding out and operating air service between Canada and the United States without economic authority from the Department. We assess Aéro Péninsule Ltée d/b/a Air Optima a compromise civil penalty of $17,500 (US) in lieu of civil penalties that might otherwise be assessed for the violations found in paragraphs 2 and 3, above. Of this amount, $2,188 shall be due and payable on March 10, 2006, and August 10, 2006, respectively, and $2187 shall be due and payable on February 10, 2007, and July 10, 2007, respectively. The remaining $8,750 shall be suspended for 18 months after the service date of this order, and then forgiven unless Aéro Péninsule Ltée d/b/a Air Optima violates this order’s cease and desist or payment provisions, in which case the entire unpaid amount shall become due and payable immediately and Aéro Péninsule Ltée d/b/a Air Optima may be subject to additional enforcement action. By: Rosalind Knapp Simmons Air, Inc. Order 2006-3-18 Issued and Served March 21, 2006 We find that Simmons Air, Inc., violated 49 U.S.C. 41101 by offering for sale and operating small aircraft service between Ocean City, Maryland, and Baltimore, as described above, without certificate authority under 49 U.S.C. 41101 or registration as an air taxi under 14 CFR Part 298. We find that Simmons Air, Inc., violated 14 CFR 399.84 and 49 U.S.C. 41712 by failing to disclose properly additional taxes and fees in advertising fares on its Ocean City-Baltimore service. Simmons Air, Inc., is assessed $15,000 in a compromise of civil penalties that might otherwise be assessed for the violations described in ordering paragraphs 2 through 4, of which $7,500 shall be due and payable within 30 days of the service date of this order. The remainder of the penalty shall be suspended for one year following the service date of this order and then forgiven, provided that Simmons Air complies with the payment terms of this order, as well as its cease and desist provisions, during the suspension period; if it fails to do so, the entire unpaid balance of the penalty shall become due and payable immediately, and Simmons Air may be subject to further enforcement action. By: Rosalind Knapp Aero Services Corporate, S.A. Order 2006-4-19 Issued April 19, 2006 This order concerns unauthorized passenger air service between points in the United States by Aero Services Corporate, S.A., a foreign air carrier based in France and authorized by the Department to engage in foreign air transportation pursuant to an exemption’ from the permit requirement in 49 U.S.C. 41301. In mitigation, Aero Services states that this matter involves the carriage of a single passenger on a single flight that was incidental to a roundtrip arranged by the charterer under exceptional circumstances: at the charterer’s request, one of its employees was pilot-in-command of the aircraft on the MSP-SAA-IAD legs. Aero Services states that it did not see any cabotage implications. Further, the company states that it has instituted procedures to ensure that no passengers are carried between U.S. points who do not commence or terminate their travel in France, regardless of the circumstances. The Office of Aviation Enforcement and Proceedings has carefully considered all of the information provided by Aero Services Corporate, S.A., but continues to believe that enforcement action is warranted. In this connection and in order to avoid litigation, the Enforcement Office and Aero Services Corporate, S.A, have reached a settlement of this matter. We assess Aero Services Corporate, S.A, a compromise civil penalty of $10,000 in lieu of civil penalties that might otherwise be assessed for the violations found in paragraphs 2 and 3, above. Of this total amount, $5,000 shall be due and payable 30 days after the service date of this order. The remaining $5,000 shall be suspended for 12 months after the service date of this order and then forgiven, unless, during this time, Aero Services Corporate, S.A., violates this order's cease and desist or payment provisions, in which case the entire unpaid amount shall become due and payable immediately and Aero Services Corporate, S.A., may be subject to additional enforcement action. By: Rosalind Knapp
Compania Mexicana de Aviacion, S.A. de C.V. Order 2006-4-18 Issued and Served April 19, 2006 This consent order concerns advertisements published by Compania Mexicana de Aviacion S.A. de C.V. that failed to comply with the Department’s rule on full fare advertising, 14 CFR 399.84, and thereby violated the statutory proscription in 49 U.S.C. 41712 against unfair and deceptive practices. In advertisements published in several widely circulated newspapers between November 2005 and February 2006, the carrier offered fares without appropriately disclosing all taxes and fees associated with the quoted fares. The order directs Mexicana to cease and desist from further violations and assesses a compromise civil penalty. In mitigation, Mexicana advises that the non-compliant advertisements were prepared by the limited staff available over the past Christmas-New Year's holiday season and were not subject to review by the carrier's more senior management. The carrier states that it promptly stopped publication of the advertisements when it was contacted by the Enforcement Office. Furthermore, the carrier asserts that it has received no complaints from the public regarding its advertising practices. In addition, the carrier points out that thirty of forty-one advertisements in question fully met the requirements of the Department-s full price disclosure policy. We consider any advertisement which does not comply with the full fare disclosure requirements to be in violation of both section 41712 and section 399.84, and, while we acknowledge that Mexicana has been cooperative in our investigation, we believe that enforcement action is warranted in this instance. Compania Mexicana de Aviacion S.A. de C.V., is assessed $30,000 in a compromise of civil penalties that might otherwise be assessed for the violations described in ordering paragraphs 2 and 3, of which $15,000 shall be due and payable within 30 days of the service date of this order. The remainder of the penalty shall be suspended for one year following the service date of this order and then forgiven, provided that Compania Mexicana de Aviacion S.A. de C.V. complies with the payment terms of this order, as well as its cease and desist provisions, during the suspension period; if it fails to do so, the entire unpaid balance of the penalty shall become due and payable immediately, and Compania Mexicana de Aviacion S.A. de C.V. may be subject to further enforcement action. By: Rosalind Knapp Platinum Jet Management, et al Order 2006-6-14 Issued and Served June 12, 2006 This consent order concerns Platinum Jet Management, LLC, and its owners and officers, Michael F. Brassington, Andre Budhan, and Paul Brassington, who engaged in air transportation without requisite Departmental economic authority in violation of 49 U.S.C. 41301, 41703. and 41712. This order directs Platinum to cease and desist from further violations of these statutory provisions and assesses Platinum a $150,000 civil penalty in compromise of penalties otherwise due and payable for the violations at issue. It also separately directs Messrs. Brassington, Budhan, and Brassington in their individual capacities to cease and desist from further violations of these statutory and regulatory provisions and jointly and severally assesses them a $25,000 civil penalty in compromise of penalties otherwise due and payable for the violations at issue. By: Rosalind Knapp Aerovias del Continente Americano, S.A. Order 2006-6-18 Issued and Served June 26, 2006 This order concerns violations by Aerovias del Continente Americano, S.A. of the requirements of 14 CFR Part 382, with respect to filing annual reports detailing disability-related complaints that the foreign air carrier received from passengers in calendar years 2004 and 2005. Part 382 implements the Air Carrier Access Act, 49 U.S.C. 41705, and violations of that part also violate the ACAA. This order directs Avianca to cease and desist from future similar violations of Part 382 and the ACAA and assesses the carrier $10,000 in civil penalties. By: Rosalind Knapp Boston-Maine Airways Corp. Issued and Served July 7, 2006 This consent order concerns the failure of Boston-Maine Airways Corp. to comply with (1) the requirement to make prompt credit card refunds as required by the Consumer Credit Protection Act and Regulation Z of the Board of Governors of the Federal Reserve System and (2) Department enforcement case precedent that requires that cash refunds be made within a reasonable time after a request is made. This order directs Boston-Maine to cease and desist from future violations and assesses compromise civil penalties of $50,000. By: Rosalind Knapp Principal Air Services, LLC and David Bernstein Order 2006-7-13 Issued and Served July 11, 2006 This consent order concerns unauthorized service by Principal Air Services, LLC and David C. Bernstein. Between January 1, 2004, and February 1, 2006, Mr. Bernstein, through PAS, a business entity over which he exercised absolute ownership, direction, and control, engaged in air transportation without holding the requisite economic authority from the Department. This order directs Mr. Bernstein and the companies he owns or controls to cease and desist from such future unlawful conduct and assesses Mr. Bernstein a compromise civil penalty of $400,000. It also enjoins Mr. Bernstein personally for a period of 15 months from most involvement, either directly or indirectly, with any entity that holds an operating certificate issued by the Federal Aviation Administration. By: Rosalind Knapp Grand Circle Corporation d/b/a Grand Circle Travel d/b/a Overseas Adventure Travel Order 2006-7-23 Issued and Served July 20, 2006 This consent order concerns advertisements by Grand Circle Corporation, d/b/a Grand Circle Travel and d/b/a Overseas Adventure Travel that violate the Department's advertising requirements specified in Part 399 of the Department's regulations, and constitute unfair and deceptive trade practices and unfair methods of competition in violation of 49 U.S.C. § 41712. This order directs Grand Circle to cease and desist from future violations and assesses the company compromise civil penalties of $90,000. By: Rosalind Knapp British Airways, PLC Issued and Served August 7, 2006 This order concerns apparent violations of the Air Carrier Access Act, 49 U.S.C. 41705, which prohibits discrimination in air travel against individuals with disabilities. Since the apparent ACAA violations occurred in foreign air transportation they would constitute violations of 49 U.S.C. 41310(a), which prohibits an air carrier from subjecting a person to unreasonable discrimination in foreign air transportation. ACAA violations also constitute unfair and deceptive trade practices in violation of 49 U.S.C. 41712. This order directs British Airways, PLC to cease and desist from future violations of the ACAA and assesses a compromise civil penalty of $50,000 for such violations, Of this amount, $45,000 will be credited to British Airways for expenditures on re-training on when it is appropriate to require an attendant for its personnel who deal directly with the traveling public on flights operating from the U.S. By: Rosalind Knapp SkyWest Airlines, Inc. Issued and Served August 7, 2006 This consent order concerns reporting inaccuracies that constitute violations of 49 U.S.C. 41708 and the flight delay causation requirements in Part 234 of the Department's regulations by SkyWest Airlines, lnc., a certificated air carrier that operates large aircraft. This order directs SkyWest to cease and desist from future similar violations of Part 234 and the cited statutory provision and assesses the carrier $25,000 in compromise of civil penalties that might otherwise be assessed against the carrier for such violations. The Department uses the carrier reports of flight delay causation to analyze the effects of air transportation industry policy initiatives, to allocate airport development funds, to forecast traffic, and to develop airport and airway traffic policy. A carrier's failure to accurately file its reports, therefore, may among other things prevent the Department from making fully informed decisions. By: Rosalind Knapp Mesa Airlines, Inc. d/b/a go! Order 2006-8-20 Issued and Served August 22, 2006 This consent order concerns advertising by Mesa Airlines, Inc., under the go! trade name, for inter-island service in Hawaii, prior to the approval by the Department of its registration of the go! trade name that violated 14 CFR Part 215. The order assesses a compromise civil penalty of $20,000 and directs the carrier to cease and desist from future similar violations. By: Rosalind Knapp Kazar Construction Limited d/b/a Sifton Air Order 2006-8-23 Issued and Served August 25, 2006 This order concerns unauthorized air transportation by Kazar Construction Limited d/b/a Sifton Air between Canada and the United States in violation of 49 U.S.C. 41301 and 41712. It directs Sifton Air to cease and desist from further violations of these statutory provisions and assesses a compromise civil penalty of $10,000 (US). Sifton Air, a foreign air carrier within the meaning of 49 U.S.C. § 40102(a)(21), provides charter air service from its base in Haines Junction, Yukon, Canada. At all times relevant to the violations described herein, Sifton Air did not hold economic authority from the Department or safety authority from the Federal Aviation Administration. Notwithstanding its lack of economic authority, Sifton Air operated air service between Canada and Dry Bay, Alaska, in contravention of 49 U.S.C. § 41301, which requires that foreign air carriers obtain permit authority from the Department prior to commencing service to the United States. Violations of section 41301 also constitute an unfair and deceptive practice and an unfair method of competition in violation of 49 U.S.C. § 41712. By: Rosalind Kanpp US Airways, Inc. Order 2006-8-26 Issued and Served August 31, 2006 This order concerns violations of 14 CFR Part 382 by US Airways, Inc. Part 382 implements the Air Carrier Access Act, 49 U.S.C. § 41705, and violations of that Part also violate the ACAA. To the extent that the apparent ACAA and Part 382 violations occurred in foreign air transportation, they constitute violations of 49 U.S.C. § 41310(a), which prohibits an air carrier troin subjecting a person to unreasonable discrimination in foreign air transportation. To the extent that the apparent ACAA and Part 382 violations occurred in interstate air transportation, the incidents are also violations of 49 U.S.C. § 41702. which requires that air carriers provide safe and adequate interstate air transportation. ACAA and Part 382 violations also constitute unfair and deceptive trade practices in violation of 49 U.S.C. § 41712. This order directs US Airways to cease and desist from future violations of the relevant statutes and Part 382 and assesses a compromise civil penalty of $150,000. By: Rosalind Knapp TACA International Airlines, S.A. Order 2006-9-19 Issued and Served September 19, 2006 This consent order concerns advertising of air transportation by TACA International Airlines, S.A. , a foreign air carrier, that violated the Department's full fare advertising rule, 14 CFR 399.84 and constituted an unfair and deceptive practice and an unfair method of competition in violation of 49 U.S.C. 41712. This order directs TACA to cease and desist from future violations and assesses a compromise civil penalty of $50,000. By: Rosalind Knapp Travelocity.com LP Order 2006-10-4 Issued and Served October 5, 2006 This consent order concerns the failure of Travelocity.com LP to include all carrier-imposed surcharges in airfare quotes provided in a flexible date pricing display on its website for certain international searches. As a result of these omissions, certain Travelocity fare displays did not fully comply with the full-price advertising requirements of section 399.84 of the Department’s rules (14 CFR 399.84) and constituted an unfair and deceptive practice and unfair method of competition in violation of 49 U.S.C. § 41712. By this order, the Department directs Travelocity.com to cease and desist from future similar violations and to monitor its fare displays to ensure continued compliance with section 399.84. By: Rosalind Knapp North American Airlines, Inc. Order 2006-10-16 Issued and Served October 30, 2006 This consent order concerns service provided by North American Airlines, Inc., a U.S. air carrier, on behalf of Air Jamaica Ltd., a Jamaican carrier, without the appropriate long-term wet lease authority from the Department. The carrier obtained wet lease approval under 14 CFR Part 212 to operate service on behalf of Air Jamaica from points in the Northeastern U.S. to points in Jamaica between March 20, 2005, and December 31, 2005. The carrier, in violation of the cited regulation, continued to operate wet lease service to Jamaica following the expiration of its authority until July 2006, and it also operated wet lease service to Grenada on behalf of Air Jamaica, service for which it had never received wet lease approval. This order directs the carrier to cease and desist from future similar violations and to pay a compromise civil penalty. By: Rosalind Knapp United Air Lines, Inc. Order 2006-10-17 Issued and Served October 31, 2006 This order concerns violations of 14 CFR Part 382 by United Airlines. Part 382 implements the Air Carrier Access Act, 49 U.S.C. § 41705, and violations of that part also violate the ACAA. To the extent that the apparent ACAA and Part 382 violations occurred in foreign air transportation, they constitute violations of 49 U.S.C. § 41310(a), which prohibits an air carrier from subjecting a person to unreasonable discrimination in foreign air transportation. To the extent that the apparent ACAA and Part 382 violations occurred in interstate air transportation, the incidents are also violations o149 U.S.C. § 41702, which requires that air carriers provide safe and adequate interstate air transportation. ACAA and Part 382 violations also constitute unfair and deceptive trade practices in violation of 49 U.S.C. § 41712. This order directs United to cease and desist from future violations of the ACAA and Part 382 and assesses a compromise civil penalty of $75,000 for such violations subsequent to December 9, 2002. By: Rosalind Knapp Aloha Airlines, Inc. Order 2006-11-2 Issued and Served November 1, 2006 This order concerns advertisements by Aloha Airlines, Inc., on the carrier's Internet website that failed to comply with the Department's rule on fare advertising, 14 CFR 399.84, and thereby violated the statutory proscription in 49 U.S.C. 41712 against unfair and deceptive practices. This order directs Aloha to cease and desist from future violations and assesses the carrier a compromise civil penalty of $25,000. By: Rosalind Knapp Israir Airlines and Tourism, Ltd. Order 2006-11-13 Issued and Served November 16, 2006 This consent order concerns deceptive advertising and unauthorized engaging in air transportation by lsrair Airlines and Tourism, Ltd., a foreign air carrier based in Tel Aviv, Israel, that violated 14 CFR 399.84 and 14 CFR Part 380 of the Department's regulations, as well as 49 U.S.C. § 41301, and which also constituted an unfair and deceptive practice and unfair method of competition in violation of 49 U.S.C. § 41712. This order directs Israir to cease and desist from future violations and assesses the carrier a compromise civil penalty of $55,000. By: Rosalind Knapp Vision Airlines, Inc. d/b/a Vision Air Order 2006-11-20 Issued and Served November 20, 2006 This consent order concerns unauthorized advertising of Public Charter air transportation by Vision Airlines, Inc., doing business as Vision Air, an air taxi operator that conducts business out of Las Vegas, Nevada. The unauthorized holding out by Vision Air violates the Department's Public Charter regulations (14 CFR Part 380) and 49 U.S.C. § 41101, which also constitutes an unfair and deceptive practice and unfair method of competition in violation of 49 U.S.C. § 41712. This order directs Vision Air to cease and desist from future violations and assesses the carrier compromise civil penalties of $20,000. By: Rosalind Knapp Order 2006-11-25 Issued and Served November 29, 2006 This consent order concerns unauthorized air transportation by Classic Designs of Tampa Bay, Inc., d/b/a Bell Air Aviation. Since at least January 1, 2006, Classic Designs has engaged in air transportation using a Boeing 727 aircraft without holding the requisite economic authority from the Department. This order directs Classic Designs to cease and desist from such future unlawful conduct and assesses it a compromise civil penalty of $90,000. By: Rosalind Knapp Alitalia Order 2006-12-2 Issued and Served December 1, 2006 This consent order concerns certain fare displays on Alitalia's U.S. website (www.alitalia.com) and certain displays of Alitalia fares on Travelocity.com, a major travel vendor and agent of Alitalia, that failed to comply with the Department's rule on full fare advertising, 14 CFR 399.84. These fare displays, in addition, constituted an unfair and deceptive trade practice and an unfair method of competition in violation of 49 U.S.C. § 41712. Based on these violations, the order assesses a compromise civil penalty of $29,500 and directs the carrier to cease and desist from future similar violations. By: Rosalind Knapp China Airlines, Ltd. Order 2006-12-1 Issued and Served December 1, 2006 This consent order concerns fare displays on the U.S. website of China Airlines, Ltd., (https://calec. china-airlines.com/olb/us/asp/class.asp) and certain displays of China Airlines' fares on Travelocity.com, a major travel vendor and agent of China Airlines that failed to comply with the Department of Transportation's rule on full fare advertising, 14 CFR 399.84. These fare displays, in addition, constituted an unfair and deceptive trade practice and an unfair method of competition in violation of 49 U.S.C. § 41712. Based on these violations, the order directs the carrier to cease and desist from future violations. Moreover, concerning the fare displays on China Airlines' U.S. website, the order assesses a compromise civil penalty of $29,500. By: Rosalind Knapp Thomas Kolfenbach, Individually, and Southeast Airlines, Inc. Order 2006-12-5 Issued and Served December 6, 2006 This consent order concerns violations of certain consumer protection provisions of the Department's Public Charter regulations during 2004 by Southeast Airlines, Inc., an airline that sold Public Charter flights directly to the public. Southeast, under the direction and control of then President and CEO Thomas Kolfenbach, failed to properly maintain escrow accounts and improperly used and handled charter participant funds, in violation of 14 CFR Parts 380 and 212. These activities also constituted an unfair and deceptive practices in violation of 49 U.S.C. § 41712. This order directs Southeast and Mr. Kolfenbach to cease and desist from future similar violations and directs Southeast to pay a compromise civil penalty of $500,000. The order further directs Mr. Kolfenbach to refrain from involvement in any air carrier or Public Charter operations for ten years. By: Rosalind Knapp USA Jet Airlines, Inc. Order 2006-12-11 Issued and Served December 13, 2006 This consent order concerns reporting delinquencies by USA Jet Airlines, Inc. that constitute violations of 49 U.S.C. § 41708 and the accounting and reporting requirements specified in 14 CFR Part 241. This order directs USA Jet to cease and desist from future violations and assesses the carrier a compromise civil penalty of $35,000. By: Rosalind Knapp
Skyservice Airlines, Inc. Order 2006-12-26 Issued and Served December 29, 2006 This order concerns a violation by Skyservice Airlines Inc. of the requirements of 14 CFR Part 382, with respect to filing annual reports detailing disability-related complaints that the foreign air carrier received from passengers in calendar year 2005. Part 382 implements the Air Carrier Access Act 49 U.S.C. § 41705, and violations of that part also violate the ACAA. This order directs Skyservice to cease and desist from future similar violations of Part 382 and the ACAA and assesses the carrier $10,000 in civil penalties. By: Roasalind Knapp Comair, Inc. d/b/a Delta Connection Order 2007-5-9 Issued and Served May 17, 2007 This order concerns apparent violations by Comair, Inc. d/b/a Delta Connection of the statutory prohibition against unfair or deceptive practices, 49 U.S.C. § 41712, arising from its failure to provide consumers with certain amenities during flight disruptions in accordance with its contract of carriage. This consent order directs Comair to cease and desist from future violations and assesses a compromise civil penalty in the amount of $75,000, subject to the offset and forgiveness provisions described below. The Enforcement Office has learned of at least four instances where Comair customers who were affected by flight cancellations between December 25 and December 28 were informed that hotel vouchers would not be provided because their flight cancellation was the result of weather, even though Comair knew that all flights cancelled on or after December 25 were cancelled, at least in part, due to the TRACK outage. Each such instance appears to involve communications by employees or agents of Comair whereby customers were, at a minimum, not fully informed about he nature of the service disruption affecting them, and were told that they were not entitled to hotel accommodations. As a factual matter, such customers were at least entitled to the carrier's diligent efforts and honest representations with regard to the reasons for the flight cancellations and the carrier's obligations to temporarily stranded customers which, it appears to the Enforcement Office, included hotel accommodations where appropriate. The Enforcement Office believes that consumers clearly were entitled to such amenities, not only in view of Comair's initial notice to its employees about the cause of its flight irregularities, but also in light of the common sense interpretation of its contract of carriage, and the facts present here. By: Rosalind Knapp |
||