DOT FINES SRILANKAN AIRLINES FOR UNFAIR AND DECEPTIVE PRACTICES
June 15, 2015
In response to a third-party complaint alleging a violation of the Department’s full-fare advertising rule, DOT recently fined SriLankan Airlines Limited (“SriLankan”) $20,000. The DOT consent order in the case alleges that the price SriLankan displayed on its website for travel from New York City to Colombo was listed as $954.00 plus “taxes” of $587.60. The breakdown of “taxes” revealed that $500.00 was a fuel surcharge (YQAP) imposed by the airline. SriLankan’s mischaracterization of its surcharge as a “tax” constituted, in the Department’s opinion, an unfair and deceptive practice. DOT has previously issued guidance stating that carrier-imposed surcharges and other fees must be listed separately from taxes in fare advertisements and SriLankan has since changed its method of displaying such charges. Although SriLankan does not operate service to the U.S., it is still subject to DOT regulation since 1) it places its code on flights operated by another foreign carrier between a third country and the U.S.; and 2) its website is accessible to U.S. consumers.
If you have any questions, please contact Evelyn Sahr (esahr@eckertseamans.com, 202-659-6622) or Drew Derco (dderco@eckertseamans.com, 202-659-6665).