Air New Zealand

Order 2007-10-8
OST-2007-26781

Issued and Served October 5, 2007

Consent Order

This order concerns violations by Air New Zealand, Limited of the requirements of 14 CFR Part 382, with respect to filing an annual report 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 Air New Zealand to cease and desist from future similar violations of Part 382 and the ACAA and assesses the carrier $20,000 in civil penalties.

Air New Zealand’s operations into the U.S. include passenger service with aircraft with more than 60 seats, and they clearly fall within the scope of the reporting rule. The carrier submitted the report for disability-related complaints received in calendar year 2005 on July 26, 2006, approximately six months after the report’s due date and only after the Enforcement Office had contacted the carrier regarding its delinquency. Therefore, Air New Zealand violated section 382.70 and the ACAA when it did not submit in a timely manner a report detailing the disability-related complaints that it received in calendar year 2005, on flights originating or terminating in the United States.

In mitigation, as to the delay in filing the report covering 2005, Air New Zealand states that this was the result of extraordinary circumstances. The company explains that it underwent a massive reorganization and downsizing of its corporate staff in the winter of 2005-2006, which resulted in a large number of its corporate staff being laid off or reassigned, including the person who filed the 2004 report and would have been in charge of the 2005 report. Air New Zealand states that the carrier has since instituted various mechanisms to ensure that the report is generated automatically and submitted on time regardless of any change in personnel.

We view seriously Air New Zealand’s failure to submit the report covering calendar year 2005 on time as required by section 382.70. Accordingly, after carefully considering all the facts in this case, including those set forth above, the Enforcement Office believes that enforcement action is warranted. By this order, the Department finds that Air New Zealand failed to timely submit a report detailing the disability-related complaints that it received in calendar year 2005 in violation of 14 CFR Part 382 and 49 U.S.C. § 41705.

In order to avoid litigation, Air New Zealand has agreed to settle these matters with the Enforcement Office and enter into this consent order directing Air New Zealand to cease and desist from future similar violations of Part 382 and 49 U.S.C. § 41705, and assessing $20,000 in compromise of potential civil penalties otherwise due and payable. We believe that this assessment is appropriate and serves the public interest. It represents an adequate deterrence to future noncompliance with the Department's reporting requirements by Air New Zealand, as well as by other domestic and foreign air carriers.

By: Rosalind Knapp