Allegiant Air, LLC

Order 2008-9-18
OST-2008-0031

Issued and Approved September 15, 2008

Consent Order

This consent order concerns fare displays by Allegiant Air, LLC on its website (www.allegiantair.com) that failed to comply with the Department’s rule on full fare advertising, 14 CFR 399.84, and the related statute, 49 U.S.C. § 41712(a). The carrier assessed a “convenience fee” on all ticket purchases except those made at one of the carrier’s airport ticket offices. Under section 399.84, this fee should have been included in initial fare quotes on Allegiant’s website. This order assesses a compromise civil penalty of $50,000 and directs the carrier to cease and desist from future similar violations.

The Allegiant website, in the Enforcement Office’s view, violated Department requirements by displaying fares which on their initial presentation did not include the carrier-assessed convenience fee as described above. Inclusion of the fee in the quoted fare did not occur until the latter stages of the website booking process. As with other carrier-imposed fees that are mandatory for on-line bookings, convenience fees must be included in initial base fares displayed in website advertisements, or in a range of lowest to highest fares inclusive of the fee, both on the carrier’s site and on the sites of secondary vendors.

In mitigation and explanation, Allegiant states that it takes compliance with government requirements very seriously. Consistent with that approach, Allegiant believes strongly that its practice of disclosing the convenience fee in a like manner as checked baggage fees and other non-mandatory fees complied fully with Department rules, guidance and precedent applicable to such fees. Allegiant states that its passengers have been free at all times to purchase transportation at its airport ticket offices without incurring the fee, and that on average over 1,400 per week choose to do so. Availability of that purchase option was and continues to be disclosed repeatedly and clearly on Allegiant’s website, with a complete list of the specific locations and times of operation of the airport ticket offices readily accessible via conspicuous hyperlinks. Thus Allegiant believes that since the convenience fee, like a checked baggage fee, is non-mandatory, Allegiant at all times provided consumers with full and accurate fare information in compliance with Department rules, guidance and precedent.

Allegiant states that despite its strongly-held conviction that no violation occurred, it has cooperated fully with the Department’s investigation, including participation in extensive discussions with the Enforcement Office concerning the latter’s desire for changes to the content, format and layout of various pages of the Allegiant website. Allegiant states that it has voluntarily resolved each Enforcement Office concern, many of which went well beyond the scope of the convenience fee matter.

By: Samuel Podberesky