FINES UPDATE
March 6, 2014
The following fines have recently been issued by DOT:
VRG Linhas Aereas S.A. d/b/a GOL Linhas Aereas Inteligentes. – $250,000
GOL was fined $250,000 for violating several of DOT’s consumer protection provisions. For a period of time in November 2012, GOL failed to meet many of the obligations imposed on it under DOT’s Enhancing Airline Passenger Protections; Final Rule, including: 1) post its tarmac delay contingency plan on its website; 2) post its customer service plan on its website; 3) post its contract of carriage in an easily accessible form on its website; 4) disclose on its website homepage a link to its optional services and fees listing; 5) include all government-imposed taxes and fees and mandatory airline-imposed fees in advertised prices; and 6) disclose on the first screen which offers a fare quotation that additional baggage fees may apply. GOL states that all occurrences in the order were inadvertent and promptly addressed after discussion with DOT.
American Airlines, Inc. – $20,000
DOT fined American Airlines $20,000 for violations of 14 C.F.R. Part 382 and the Air Carrier Access Act, 49 U.S.C. § 41705. A passenger with severe mobility issues flew from Los Angeles International Airport (LAX) to Ronald Reagan National Airport (DCA) with a connection through Chicago O’Hare International Airport (ORD) on February 15, 2012 with an electric wheelchair. In ORD, the passenger informed American personnel on the proper way to store the wheelchair on its aircraft. American personnel failed to follow the instructions and once the passenger arrived at DCA, the wheelchair batteries had shifted the wheelchair and it would not function. Eventually American personnel reassembled the wheelchair; however, on the passenger’s way home the wheelchair abruptly ceased working and threw the passenger onto a public sidewalk where he sustained injuries. DOT determined that American’s actions violated 14 C.F.R. Part 382.129(b) by failing to correctly reassemble the passenger’s wheelchair.
Laurus Travel Incorporated d/b/a Laurus Travel. – $26,000
Laurus Travel was fined $26,000 for failing to comply with DOT’s full fare advertising rule. Prior to January 26, 2012, Laurus Travel published daily advertisements on its own and other websites promoting tour packages that combined air fares, hotel, cruises, land tours and other amenities. DOT determined that these advertising practices did not comply with 14 C.F.R. Part 399.84(a), 399.88 and 399.89 and were deemed to be deceptive trade practices under 49 U.S.C. 41712.
Virgin America Inc. – $60,000
For failing to file required Part 241 reports when they are due to DOT, Virgin America was fined $60,000. DOT uses Part 241 reports to analyze the effects of air transportation policy initiatives, to allocate airport development funds, to forecast traffic and to develop airport and airway traffic policy. A carrier’s failure to file its reports prevents DOT from making fully informed decisions. Specifically, Virgin America failed to file a revised Form 41 for the 4th Quarter of 2012, despite repeated requested by DOT and also failed to file a complete form 41 for the 1st Quarter of 2013. This is the second violation of the reporting requirements by Virgin America and they were subsequently fined $60,000.
WK Travel, Inc. d/b/a OneTravel – $95,000
DOT fined WK Travel, a ticket agent, $95,000 for failing to disclose code-share arrangements in violation of 49 U.S.C. § 41712 (c) and 14 C.F.R. 257. An investigation by DOT’s Enforcement Office in January and February of 2013 revealed through phone calls to WK Travel, their agents were failing to make the required disclosure regarding code-share arrangements for the flights in question in violation of DOT regulations.
Airtrade International, Inc. d/b/a Vayama – $80,000
Vayama was fined $80,000 by DOT for violations of the Department’s full fare advertising rule, 14 C.F.R. Part 399.84(a). For a period of time in 2013, it was discovered that once a consumer selected a fare from display of fare options, Vayama added its own fee to taxes and displayed the total amount under a general “Taxes and Fees” category on a purchase review screen. Consumers were unable to determine how much of the total price was to the government and how much was to Vayama. Also, for a period of time in 2012 and 2013 Vayama’s homepage advertised fares that were rounded down to the whole dollar below the actual total fare amount. By failing to accurately state the exact fare and failing to distinguish between taxes and government-imposed fees and agent-imposed fees, Vayama violated 14 C.F.R. Part 399.84(a) and 49 U.S.C. § 41712.
Qantas Airways Limited – $90,000
Qantas was fined $90,000 for failing to inform passengers on a flight delayed at the gate with the door open that they had the opportunity to deplane during a lengthy tarmac delay. On March 21, 2013, Qantas was scheduled to operate from Dallas/Fort Worth International Airport (DFW) to Brisbane International Airport (BNE), but after three separate mechanical alerts over the course of more than 4 hours, Qantas personnel did not advise passengers that they could deplane during the three separate delays. While the aircraft did push back from the gate, the captain was eventually forced to cancel the flight. Qantas states that while no one expressed interest in deplaning during the times the aircraft was at the gate, the doors to the aircraft were open and any passenger who wished to deplane would have been permitted to do so.
This Eckert Seamans Aviation Blog is intended to keep readers current on matters affecting businesses and is not intended to be legal advice. If you have any questions, please contact Evelyn Sahr (esahr@eckertseamans.com, 202-659-6622) or Drew Derco (dderco@eckertseamans.com, 202-659-6665).