Montgomery Jet Center, Inc., Southern Skies, Inc. and Ronald E. Mays

OST-2007-26820 - Enforcement Proceedings and Proposed Assessment of Civil Penalties

Issued January 5, 2007

Notice of Enforcement Proceedings and Proposed Assessment of Civil Penalties

The attached complaint of the Office of the Assistant General Counsel for Aviation Enforcement and Proceedings alleges that Mr. Ronald E. Mays through Montgomery Jet Center, Inc., and Southern Skies, Inc., both Alabama corporations, engaged in unauthorized air carrier operations in violation of the licensing provisions of 49 U.S.C. § 41101 and engaged in unfair and deceptive practices and unfair methods of competition in violation of 49 U.S.C. § 41712 and the Department's regulations.

The complaint alleges, among other things, that Respondents' unauthorized holding out as an air carrier on its website and to Mr. St. James and the FED Group regarding the Liberian Charter violated 49 U.S.C. § 41101 and constituted an unfair and deceptive practice and unfair method of competition in violation of 49 U.S.C. § 41712. Mr. Mays is responsible personally for these violations, it is alleged in the complaint, since he was in control of Montgomery Jet and Southern Skies and the animating force behind all actions at issue in the complaint.

The complaint also alleges in the alternative that Montgomery Jet, Southern Skies and Mr. Mays, acting as ticket agents, made misrepresentations to the public, failed to contract with a direct air carrier, and failed or refused to return charter participant funds in violation of 14 CFR Part 399. These violations would also constitute unfair and deceptive practices and unfair methods of competition in violation of 49 U.S.C. § 41712.

This notice and the attached complaint will be served on Montgomery Jet Center, Inc., Southern Skies, Inc., and Mr. Ronald E. Mays. Under Rule 408 of the Department's Rules of Practice, 14 CFR 302.408, Montgomery Jet Center, Inc., Southern Skies, Inc., and Mr. Ronald E. Mays are required to file, within 15 days, an answer to the complaint admitting or denying specifically and in detail each allegation of the complaint, and a response to the proposed assessment of civil penalties, specifically presenting any matters the respondents intend to rely on in opposition to or in mitigation of such civil penalties.

By: Aviation Enforcement and Proceedings, Samuel Podberesky

Served January 18, 2007

Notice of Assignment of Proceeding

This proceeding has been assigned to Administrative Law Judge Isaac D. Benkin. All future pleadings and other communications regarding this proceeding shall be served on the Judge, the DOT Docket Clerk, and the other persons on the attached Service List.

By: Ronnie Yoder

Served January 23, 2007

Administrative Law Judge's Order Establishing Procedures

I encourage parties to settle the case if it is possible to do so. The parties should discuss the possibility of settlement as soon as possible and again when discovery is completed. If a settlement is reached, the parties should notify me as soon as possible and provide me with a copy of their written agreement, together with any additional explanatory material they may wish to submit, so that I can determined whether approval of the settlement is in the public interest.

By: Issac Benkin

January 24, 2007

Notice of Appearance

The Office of Aviation Enforcement and Proceedings respectfully requests that Your Honor enter the appearance of Lisa Swafford-Brooks, Senior Trial Attorney, as counsel for the Enforcement Office and requests that her name be added to the service list. In addition, the Enforcement Office respectfully requests that Casey Mendez-Symington be removed as a counsel of record in this matter and from the
service list.

In response to Your Honor's request for a statement of venue preference, the Enforcement Office requests that the hearing be held in Washington D.C. The majority of the material witnesses in the instant case reside in the Washington D.C. area and the charter flight at issue in this proceeding was scheduled to depart from Baltimore, Maryland. The Enforcement Office would prefer a hearing date in the last week of June 2007.

By: Aviation Enforcement and Proceedings, Lisa Swafford-Brooks, 202-366-1745, lisa.swoffordbrooks@dot.gov

Served February 13, 2007

Administrative Law Judge's Order Setting Time and Place of Hearing

The hearing will be held at the Department's new headquarters building in Washington, D.C. and will begin on June 26, 2007. The hearing facility is located in Room 349 of the new Department of Transportation Building, located at 1200 New Jersey Avenue, S.E., Washington, D.C. The hearing will begin at 10:00 a.m.

By: Issac Benkin

Served May 11, 2007

Administrative Law Judge's Order Approving Settlement and Dismissing Proceeding

The Deputy General Counsel and the Respondents have submitted for approval under section 302.417 of the Procedural Rules, 14 C.F.R. 302.417, a proposed settlement which, if approved, will dispose of all pending issues in this case.

The proposed settlement includes a consent order that requires the Respondents to cease and desist from violations of 49 U.S.C. 41101 and 41712 and assesses against the Respondents a civil penalty in the amount of $80,000, half of which may be offset if it is placed in an escrow hnd to be used to make refunds to the consumers who paid for transportation on Liberia Flight 109. The remaining $40,000 will be suspended and will be forgiven after two years, provided that the Respondents comply with the consent order during that period of time.

The Respondents agree to the entry of the consent order, which was attached to the motion for approval of the settlement, but do not admit that they committed the violations set forth in the Enforcement Complaint.

Both parties have waived their right to submit additional written comments on the settlement as permitted under section 302.417(b) of the Procedural Rules, 14 C.F.R. § 302.417(b).

I have reviewed the proposed settlement, as well as the other documents in the file, and I find that it is in the public interest. Consequently, I approve the settlement and have signed the proposed consent order, which is annexed to, and forms part of, this order.

By: Isaac Benkin