Jet One Jets, Inc.

Order 2008-3-2
OST-2008-0031 - Consent Orders

Issued and Served March 4, 2008

Consent Order

This consent order concerns the unlawful holding out of air transportation by Jet One Jets, Inc. in contravention of the statutory licensing requirements of 49 U.S.C. § 41101, and 49 U.S.C. § 41712, which prohibits ticket agents and air carriers from engaging in unfair and deceptive practices and unfair methods of competition. It directs JOJ to cease and desist from such further violations and assesses JOJ a compromise civil penalty of $60,000.

An investigation by the Office of Aviation Enforcement and Proceedings of JOJ’s advertising practices revealed violations of 49 U.S.C. §§ 41101 and 41712. Specifically, for a period of time during 2006, JOJ’s Internet website and print advertisements contained statements and omissions that, when considered together, would lead the public to conclude erroneously but reasonably that JOJ is a direct air carrier with operational control over flights. For example, the company’s homepage and its other advertisements stated that, “When you fly with Jet One, you’re more than a passenger.” The webpage entitled “Aircraft” included a statement that “[w]e offer a range of aircraft, from heavy jets … to helicopters. In addition, each webpage contained a footer stating, in relevant part, that JOJ was a “full service private aviation provider,” whose services include “private jet operations” and the company’s “Services” webpage referred to “our private jets” and stated that “[w]e operate in countries around the world.” In sum, JOJ created the misimpression that it operated the aircraft used in the transportation by air that it held out to the public for compensation or hire. By doing so, it engaged unlawfully in air transportation.

The Enforcement Office finds JOJ’s website particularly troubling in light of the Department’s notice cautioning entities that lack proper economic authority against the use of misleading statements, phrases, and terms. Through these and other statements on its Internet website and its print advertising, JOJ held out direct air transportation when it did not have proper economic authority, thereby violating 49 U.S.C. §§ 41101 and 41712.

While neither admitting nor denying wrongfully engaging in air transportation, in mitigation JOJ states that any violation of the Department’s regulations was inadvertent due to the company’s basic level of experience with the applicable regulations. JOJ also asserts that, because its customers are sophisticated business people who do not necessitate the consumer safeguards that the regulations mandate, the violations presented a minimal degree of risk of consumer harm.

By: Rosalind Knapp

http://www.jetonejets.com/