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OST-2002-12273 - Consent Orders


 
 


Aviation Ventures, Inc. d/b/a Vision Air

Order 02-07-30
OST-02-12273
Issued July 24, 2002
Served July 24, 2002
Consent Order

Microsoft Word File

Economic Enforcement Orders

Order 2002-7-30, the Department (1) approves the settlement and the provisions of this order as being in the public interest, (2) finds that Aviation Ventures, Inc., d/b/a Vision Air, violated 14 CFR 298.21(d) and 49 U.S.C. Section 41101 by engaging in scheduled air transportation as a commuter air carrier without having first been found fit to do so, (3) finds that Aviation Ventures, Inc., d/b/a Vision Air, violated 14 CFR 201.5 by advertising, listing schedules, and accepting reservations for commuter air transportation services prior to approval by the Department of its application to be found fit as a commuter air carrier, and, (4) finds that by engaging in the conduct and violations Aviation Ventures, Inc., d/b/a Vision Air, engaged in an unfair and deceptive practice and unfair method of competition in violation 49 U.S.C. Section 41712, and, failure to pay the compromise assessment as ordered shall also subject Aviation Ventures, Inc., d/b/a Vision Air, to the assessment of interest, penalty, and collection charges under the Debt Collection Act, and possible enforcement action for failure to comply with this order.

By:  Rosalind Knapp


Aviation Ventures, Inc. d/b/a Vision Air

Order 02-07-30
OST-02-12273
Issued July 24, 2002
Served August 22, 2002
Consent Order- Erratum

Microsoft Word

Violations of 49 USC 41101 and 41712, and 14 CFR 201 and 298

Consent Order 2002-7-30 is being modified to reflect properly that an air taxi performing more than four round trips a week between the same two points according to a published schedule must be found fit either as a commuter or certificated air carrier, and that Vision Air’s pending application is for certificated authority.

By:  Samuel Podbersky


Florida Air Transport, Inc.

Order 02-09-15
OST-02-12273
Issued and Served September 13, 2002 Consent Order Violations of 49 USC 41101 and 41712

We view seriously Florida Air’s violations of the Department’s licensing requirements. We have carefully considered the facts of this case, including the company’s explanation, and continue to believe enforcement action is necessary. Florida Air Transport, in order to avoid litigation and without admitting or denying the alleged violations, agrees to the issuance of this order to cease and desist from future violations of 49 U.S.C. §§ 41101 and 41712 by engaging in common carriage directly or indirectly, and to an assessment of $50,000 in compromise of potential civil penalties. Of this penalty amount, $25,000 shall be paid according to the schedule set out in the ordering paragraphs infra; the remaining $25,000 shall be suspended for one year following the service date of this order, and then forgiven unless the carrier violates the order’s cease and desist provision within that period or fails to comply with the order’s payment provisions, in which case the entire unpaid portion of the $50,000 penalty shall become due and payable immediately, and Florida Air Transport may be subject to further enforcement action. This compromise assessment is appropriate in view of the nature and extent of the violations in question and serves the public interest. This settlement, moreover, represents a deterrent to future air transportation operations without appropriate economic authority by Florida Air as well as other companies.

By:  Rosalind Knapp


American Trans Air / Frontier Airlines v. Hotwire, Inc.

Order 02-10-7
OST-02-12273
OST-02-12260
OST-02-12333
Issued and Served October 4, 2002 Consent Order

Word Document

Violations Pursant to 14 CFR 302.404

Clearly, the advertisements at issue here are airfare advertisements subject to 49 U.S.C. § 41712 and the Department’s applicable rules and related enforcement case precedent.  While we acknowledge that Hotwire has been fully cooperative in our investigation, we believe that enforcement action is warranted in this instance.  Hotwire, as a travel agent, is subject to the policy guidelines of section 399.80.  By omitting a full description of the markets in which its advertised fares were available, specifically by failing to state the origin point of prospective itineraries in its advertisements, Hotwire created the false impression that the fares it advertised were available in the cities in which its advertisements were broadcast when that, in fact, was not the case.  Accordingly, Hotwire engaged in a deceptive practice and an unfair method of competition in violation of 49 U.S.C. § 41712 and 14 CFR 399.80 (c) and (f).  This order directs Hotwire to cease and desist from future similar violations and to pay a compromise civil penalty.

By: Roland Knapp


Sky King, Inc.

Order 02-10-18
OST-02-12273
Issued and Served October 10, 2002 Consent Order

Word Document

Economic Enforcement Consent Orders-2002

Order 2002-10-18, the Department (1) approves this settlement and the provisions of the order as being in the public interest, (2) finds that Sky King, Inc., violated 49 U.S.C. Section 41101, by engaging in air transportation without appropriate economic authority, (3) finds that by engaging in the conduct described in paragraph 2, Sky King, Inc., engaged in an unfair and deceptive practice and an unfair method of competition in violation of 49 U.S.C. Section 41712, and, (4) Sky King, Inc., is ordered to cease and desist from further similar violations of 49 U.S.C. Sections 41101 and 41712.

During 1999 and 2000, Sky King operated with a fleet consisting of two aircraft. Since 2001, it has operated five aircraft. A majority of Sky King's service was pursuant to contracts with up to 14 professional sports learns in  the National Hockey League and National Basketball Association. Service ranged from single flights to operations over an entire professional sports season of several months. In addition, it provided service on an ad-hoc basis to several civic groups, media organizations covering sporting events, and groups in the music entertainment industry. Sky King also provided service on a substitute basis for common carriers. Such service on behalf of a common carrier is itself common carriage.

In mitigation, Sky King states that it cooperated fully in the informal investigation conducted by AEP, and in its defense submitted evidence to support its position that under relevant DOT and FAA precedent and current industry practice, sports teams may lawfully contract with Part 125 carriers. Upon becoming aware of AEP's concerns, Sky King severely curtailed the scope of flight services provided on an ad hoc basis and ceased all revenue flight operations at the close of this past sports season, and thus no revenues have been generated for close to a three month period. According to Sky King, its good faith efforts to obtain DOT and FAA authority to engage in common carriage, which extended over a number of years, were complicated by significant changes in FAA certification procedures. Sky King submits that these costs of compliance, which easily exceed several million dollars, should be taken into consideration to mitigate any civil penalty assessment.

We view seriously Sky King violations of the Department's licensing requirements. We have carefully considered the facts of this case, including the company's explanation, and continue to believe enforcement action is necessary. Sky King, in order to avoid litigation and without admitting or denying the alleged violations, agrees to the issuance of this order to cease and desist from future violations of 49 U.S.C. § § 41101 and 41712 by engaging in common carriage directly or indirectly, and to an assessment of $100,000 in compromise of potential civil penalties. Of this penalty amount, $50,000 shall be paid according to the schedule set out in the ordering paragraphs infra; the remaining $50,000 shall be suspended for one year following the service date of this order, and then forgiven unless the carrier violates the order's cease and desist provision within that period or fails to comply with the order's payment provisions, in which case the entire unpaid portion of the $100,000 penalty shall become due and payable immediately, and Sky King may be subject to further enforcement action.

By: Rosland Knapp


Asiana Airlines, Inc.

Order 02-10-20
OST-02-12273
Issued and Served October 17, 2002 Consent Order Economic Enforcement Consent Orders-2002

Between July 1998, when Order 98-7-22 was issued, and May 2002, Asiana unlawfully transported a substantial number of passengers between Guam, Saipan, and various cities in the United States, notwithstanding the Department's order that it cease and desist from further violations of 49 U.S.C. §§ 41302, 41703, and 41712. During this period, Asiana also unlawfully held out transportation in these markets via a broad spectrum of media, both direct and indirect, including the Internet and newspaper advertisements, and through travel agents. As recently as May 2002, it was possible to construct cabotage schedules on Asiana's own Internet website and to purchase tickets- between several cities in the United States and Guam or Saipan that violated cabotage restrictions through the website of Orbitz LLC, an Internet travel agent acting on Asiana's behalf.  In May 2001, Asiana ran newspaper advertisements in Guam offering double frequent flyer mileage, as well as an opportunity to "enjoy shopping during short stopovers in Seoul," on flights between Guam and the United States. Moreover, for several years, Asiana regularly distributed memoranda to travel agents in Guam and Saipan listing Asiana's sale prices on various routes to cities in the United States via Seoul, thereby further encouraging the sale of cabotage air service.  Through its sales offices in the United States, Asiana also offered commissions to travel agents for selling tickets for service between the United States, Guam, and Saipan that violated the cabotage prohibition. One of these agents subsequently offered a Departmental staff member, calling as a member of the general public, transportation between Guam and Seattle at a fare competitive with the lowest fare offered by a U.S. carrier in the same market.

Asiana consents to the issuance of this order to cease and desist from future violations of Order 98-7-22 and 49 U.S.C. §§ 41302, 41703, and 41712 and to the assessment of $750,000 in compromise of potential civil penalties otherwise assessable. Of this total penalty amount, $375,000 shall be paid under the terms described below. The remaining $375,000 shall be suspended for three years following the issuance of this order, and then forgiven, unless, during this time period, Asiana violates this order's cease and desist or payment provisions, in which case the entire unpaid portion of this civil penalty shall become due and payable immediately and Asiana may be subject to further and more stringent enforcement action. The Enforcement Office believes this compromise is appropriate, serves the public interest, and creates an incentive for all foreign air carriers to comply fully with the requirements of 49 U.S.C. §§ 41302, 41703, and 41712.

By: Rosalind Knapp


Cheap Seats, Inc.

Order 02-10-21
OST-02-12273
Issued and Served October 17, 2002 Consent Order Economic Enforcement Consent Orders-2002

Cheap Seats failed to properly disclose the full fare, including taxes and fees, where applicable, on certain fares advertised on its website, in email promotions, and in several print advertisements. To purchase tickets from Cheap Seats, either by telephone or through its website, Cheapseatstravel.com, customers were charged a twenty-five dollar processing fee, which was added to the total ticket price before the purchase was finalized. Cheap Seats did not include this fee in airfares held out on its website, through email promotions, and in print ads, nor did it comply with the conditions set forth in Order 2001-12-7. In addition, when a consumer attempted to purchase a ticket on the Cheap Seats website, he or she was not informed of the fee until after entering a destination and travel dates, choosing an itinerary, and providing billing information and a credit card number, and was only informed of the additional fee on the last screen before a purchase was final.  The Aviation Enforcement Office and Cheap Seats have reached a settlement of this matter in order to avoid litigation. Cheap-Seats consents to the issuance of this order to cease and desist from future violations of 49 U.S.C. § 41712 and of 14 CFR 399.84, and to the assessment of $30,000 in compromise of potential civil penalties payable as described below.

By: Rosalind Knapp


My Travel North America

Order 02-10-27
OST-02-12273
Issued and Served October 22, 2002 Consent Order

Word Document

Violations of 49 U.S.C. and 14 CFR 399.84

Order 2002-10-27, the Department (1) approves the settlement and the provisions of this order as being in the public interest, (2) finds that My Travel North America has violated 14 CFR 399.84 by causing to be published airfare advertisements that failed to state the entire price to be paid for the advertised air transportation (3) finds that be engaging in the conduct described in order ordering paragraph 2 and by not identifying the September 11th Security Fee by name as required by 49 CFR 1510.7 My Travel North America also engaged in unfair and deceptive practices and unfair methods of competition in violation of 49 U.S.C. Section 41712, and, (4) My Travel North America, and all other entities owned and controlled by, or under common ownership and control with, My Travel North America, and their successors and assignees, are ordered to cease and desist from future violations of 14 CFR 399.84 and 49 U.S.C. Section 41712.

By: Rosalind Knapp


All Nippon Airways Co., Ltd.

Order 02-10-31
OST-02-12273
Issued and Served October 23, 2002 Consent Order

Word Document

Economic Enforcement Consent Orders

Order 2002-10-31, the Department (1) approves the settlement and the provisions of this order as being in the public interest, (2) finds that All Nippon Airways Co., Ltd., violated 49 U.S.C. Sections 41302 and 47103 by holding out and performing air transportation for compensation or hire between Guam and cities in the United States via Japan between April 2002 and June 2002, (3) finds that by holding out and performing air transportation for compensation or hire between Guam and cities in the United States via Japan between April 2002 and June 2002, All Nippon Airways Co., Ltd., engaged in an unfair and deceptive practice in violation of 49 U.S.C. Section 41712, (4) All Nippon Airways Co., Ltd., and all other entities owned and controlled by, or under common ownership and control with All Nippon Airways Co., Ltd., and their successors and assignees, are ordered to cease and desist from future violations of 49 U.S.C. Sections 4103, 41302, and 41712 in connection with cabotage operations.

All Nippon Airways Co., Ltd., is assessed a civil penalty of $10,000 in compromise of the civil penalties that might otherwise be assessed for the violations found in paragraphs 2 and 3. Of this amount, $5,000 shall be paid within 30 days of the date of issuance of this order. The remaining $5,000 shall be suspended for one year following the issuance of this order, and then forgiven, unless, during this time period, All Nippon Airways Co., Ltd., violates this order's cease and desist or payment provisions, in which case the entire unpaid portion of this civil penalty shall become due and payable immediately.

By: Rosalind Knapp


China Airlines, Ltd.

Order 02-10-30
OST-02-12273
Issued and Served October 23, 2002 Consent Order

Word Document

Economic Enforcement Consent Orders

Order 2002-10-30, the Department (1) approves the settlement and the provisions of this order as being in the public interest, (2) finds that China Airlines, Ltd., violated 49 U.S.C. Sections 41302 and 47103 by holding out and performing air transportation for compensation or hire between cities in the United States and Guam via Taipei between May 2000 and May 2002, (3) finds that by holding out and performing air transportation for compensation or hire between cities in the United States and Guam via Taipei between May 2000 and May 2002, China Airlines, Ltd., engaged in an unfair and deceptive practice in violation of 49 U.S.C. Section 41712, (4) China Airlines, Ltd., and all other entities owned and controlled by, or under common ownership and control with China Airlines, Ltd., and their successors and assignees, are ordered to cease and desist from future violations of 49 U.S.C. Sections 41703, 41302, and 41712 in connection with cabotage operations.

China Airlines, Ltd., is assessed a civil penalty of $25,000 in compromise of the civil penalties that might otherwise be assessed for the violations found in paragraphs 2 and 3 above. Of this amount, $12,500 shall be paid within 30 days of the date of issuance of this order. The remaining $12,500 shall be suspended for one year following the issuance of this order, and then forgiven, unless, during this time, China Airlines, Ltd., violates this order's cease and desist or payment provisions, in which case the entire unpaid portion of this civil penalty shall become due and payable immediately

By: Rosalind Knapp


Japan Airlines Co., Ltd.

Order 02-10-28
OST-02-12273
Issued and Served October 23, 2002 Consent Order

Word Document

Economic Enforcement Consent Orders

Order 2002-10-28, the Department approves the settlement and the provisions of this order as being in the public interest, (2) finds that Japan Airlines Company, Ltd., violated 49 U.S.C. Sections 41302 and 47103 by holding out and performing air transportation for compensation or hire between cities in the United States and Guam and the Northern Mariana Islands via Japan between May 2000 and April 2002, (3) finds that by holding out and performing air transportation for compensation or hire between cities in the United States and Guam and the Northern Mariana Islands via Japan between May 2000 and April 2002, Japan Airlines Company, Ltd., engaged in an unfair and deceptive practice in violation of 49 U.S.C. Section 41712, (4) Japan Airlines Company, Ltd., and all other entities owned and controlled by, or under common ownership and control with Japan Airlines Company, Ltd., and their successors and assignees, are ordered to cease and desist from future violations of 49 U.S.C. Sections 4103, 41302, and 41712 in connection with cabotage operations.

Japan Airlines Company, Ltd., is assessed a civil penalty of $65,000 in compromise of the civil penalties that might otherwise be assessed for the violations found in paragraphs 2 and 3 above. Of the assessed penalty, $11,000 is due and payable within 30 days of the date of issuance of this order, $11,000 is due and payable on April 15, 2003, and $10,500 is due and payable on October 15, 2003. The remaining $32,500 shall be suspended for one year following the issuance of this order, and then forgiven, unless, during this time period, Japan Airlines Company, Ltd., violates this order's cease and desist or payment provisions, in which case the entire unpaid portion of this civil penalty shall become due and payable immediately.

By: Rosalind Knapp


Korean Air Lines, Co., Ltd.

Order 02-10-29
OST-02-12273
October 23, 2002 Consent Order

Word Document

Economic Enforcement Consent Orders

Order 2002-10-29, the Department (1) approves the settlement and the provisions of this order as being in the public interest, (2) finds that Korean Air Lines Co., Ltd., violated 49 U.S.C. Section 41302 and 41703 by holding out and performing air transportation for compensation or hire between Guam and Saipan and cities in the United States via the Republic of Korea between December 2001 and May 2002, (3) finds that by holding our and performing air transportation for compensation or hire between Guam and Saipan and cities in the United Stats via the Republic of Korea between December 2001 and May 2002, Korean Air Lines Co., Ltd., enaged in an unfair and deceptive practice in violation of 49 U.S.C. Section 41712, (4) Korean Air Lines Co., Ltd., and all other entities owned and controlled by, or under common ownership and control with Korean Air Lines Co., Ltd., and their successors and assignees, are ordered to cease and and desist from future violations of 49 U.S.C. Sections 41703, 41302, and 41712 in connection with cabotage operations.

Korean Air Lines Co., Ltd., is assessed a civil penalty of $65,000 in compromise of the civil penalties that might otherwise be assessed for the violations found in paragraphs 2 and 3 above. Of the assessed penalty, $11,000 is due and payable within 30 days of the date of issuance of this order, $11,000 is due and payable on April 15, 2003, and $10,500 is due and payable on October 15, 2003. The remaining $32,500 shall be suspended for one year following the issuance of this order, and then forgiven, unless, during this time period, Korean Air Lines Co., Ltd., violates this order's cease and desist or payment provisions, in which case the entire unpaid portion of this civil penalty shall become due and payable immediately.

By: Rosalind Knapp


Air Luxor, S.A.

Order 02-11-18
OST-02-12273
Issued and Served November 27, 2002 Consent Order Violations of 49 USC 41301, 41712, and 14 CFR 212.9

Air Luxor performed two Fifth Freedom flights without obtaining the prior authorization required by its exemption. The first flight was between Atlanta, Georgia and Cairo, Egypt on June 12, 2002. The second flight was between Alexandria, Louisiana and Islamabad, Pakistan on June 27, 2002.  In mitigation and explanation, Air Luxor states that it is fully informed as to its responsibilities with the Department and has generally complied with its obligations. Air Luxor asserts that the individuals handling the flights in question were not well prepared and assumed that, since the flights were being operated on behalf of an agency of the U.S. Government, no further authorization from the U.S. Government would be necessary. Air Luxor also states that both flights were accommodated on an expedited basis to satisfy the U.S. Government. Air Luxor also asserts that there was no intention to evade its regulatory obligations, and it had no motive to do so.  Without admitting or denying the violations described above, Air Luxor, S.A. consents to the issuance of this order to cease and desist from future violations of 14 CFR Part 212 and 49 U.S.C. §§ 41301 and 41712 and to the assessment of $2,500 in compromise of potential civil penalties otherwise assessable. Of this total penalty amount, $1,500 shall be due and payable within 15 days of the date of issuance of this order.

By:  Rosalind Knapp


Aerolineas Argentinas, S.A.

Order 02-12-12
OST-02-12273
Issued and Served December 11, 2002 Consent Order Economic Enforcement Consent Orders - 2002

Between July 7 and August 25, 2002, Aerolineas Argentinas published a series of advertisements in the Miami Herald promoting its flights from Miami to various cities in South America. All but one of these advertisements listed various coach, business, and promotional fares and included fine print disclaimers that either stated "taxes and surcharges not included" or "airport taxes not included." None quoted a specific amount or range of taxes such that a consumer could actually calculate the full fare to be paid for the proffered air transportation.

Aerolineas Argentinas consents to the issuance of this order to cease and desist from future violations of 49 U.S.C. § 41712 and 14 CFR 399.84 and to the assessment of $15,000 in compromise of potential civil penalties otherwise assessable. Of this total penalty amount, $7,500 shall be paid under the terms described below. The remaining $7,500 shall be suspended for one year following the issuance of this order, and then forgiven, unless, during this time period, Aerolineas Argentinas violates this order's cease and desist or payment provisions, in which case the entire unpaid portion of this civil penalty shall become due and payable immediately and Aerolineas Argentinas may be subject to further and more stringent enforcement action.

By: Rosalind Knapp


Arthur Solomon and Native Air Charters, Inc.

Order 02-12-13
OST-02-12273
Issued and Served December 12, 2002 Consent Order

Word Document

Economic Enforcement Consent Orders

Order 2002-12-13, the Department (1) approves this settlement and the provisions of this order as being in the public interest, (2) finds that Mr. Arthur Solomon, personally, and Native Air Charters, Inc., violated 14 CFR Part 380 and 49 U.S.C. Section 41101 by holding out and performing Public Charter air transportation without filing a charter prospectus with the Department, (3) finds that by holding out and performing Public Charter air transportation without filing a charter prospectus, Mr. Solomon, personally, and Native Air Charters, Inc. engaged in an unfair and deceptive practice in violation of 14 CFR 380.27 and 49 U.S.C. Section 41712, and, (4) Mr. Arthur Solomon, personally, and Native air charters, Inc. and all other entities owned and controlled by, or under common ownership and control with Native Air Charters, Inc., and their successors and assignees, are ordered to cease and desist from further violations of 14 CFR Part 380, and 49 U.S.C. Sections 41101 and 41712.

By: Rosalind Knapp


MLT Vacations, Inc.

Order 02-12-19
OST-02-12273
Issued and Served December 27, 2002 Consent Order

Word Document

Economic Enforcement Consent Orders

Order 2002-12-19, the Department approves this settlement and the provisions of this order as being in the public interest (2) finds that MLT Vacations, Inc., violated 14 CFR 399.84 by advertising fares in the print media which failed to include applicable fuel surcharges (3) finds that by engaging in the conduct described in paragraph 2, MLT Vacations, Inc., also violated 49 U.S.C. Section 41712, which proscribes unfair and deceptive trade practices and unfair methods of competition (4) MLT Vacations, Inc., and its successors, affiliates, and assigns, are ordered to cease and desist from further similar violations of 14 CFR 399.84 and 49 U.S.C. Section 41712, and (5) MLT Vacations, Inc. is assessed $50,000 in a compromise of civil penalties that might otherwise be assessed for the violations described in ordering paragraphs 2 and 3, of that penalty amount, $25,000 shall be suspended for one year following the service date of this order, and then forgiven, unless MLT Vacations, Inc., violates this order's cease and desist provisions within the suspension period, or fails to comply with the order's payment provisions, in which case the entire unpaid portion of the $50,000 penalty shall become due and payable immediately, and the carrier may be subject to further enforcement action.

By: Rosalind Knapp


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