DOT PENALTIES
July 27, 2015
Charter Air Transport, Inc. Fined $30,000
DOT recently fined Charter Air Transport, Inc. (“CAT”) $30,000 for failing to submit reports required under Part 298 in a timely matter. Specifically, CAT failed to file BTS Form 298-C “Report of Financial Data” and Schedule T-100 “U.S. Air Carrier Traffic and Capacity Data by Nonstop Segment and On-Flight Market” in a timely manner. CAT states that at the time DOT discovered CAT’s noncompliance, CAT was in the process of relocating its offices and the person responsible for such filings failed to coordinate the continued submission of the reports with the employee’s successor, or anyone else. The Director of Finance was then assigned responsibility for filing the reports and, with the help of others, did so within two days of contact from DOT.
If you have any questions, please contact Evelyn Sahr (esahr@eckertseamans.com, 202-659-6622) or Drew Derco (dderco@eckertseamans.com, 202-659-6665).
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DOT PENALTIES
June 22, 2015
INTER ISLAND AIRWAYS INC. FINED $20,000
On May 12, 2015, DOT directed Inter Island Airways Inc. (“Inter Island”) to pay a civil penalty of $20,000 for failing to comply with the Department’s accounting and reporting requirements. As a commuter air carrier, Inter Island must file Bureau of Transportation Statistics Form 298-C, “Report of Financial Data” and BTS Schedule T-100, “US Air Carrier Traffic and Capacity Data by Nonstop Segment and On-Flight Market.” Despite repeated requests by DOT for the information, Inter Island failed to make its required reports on time and was fined. Inter Island alleged that the delay in submitting the information was due to the fact that the information on was submitted by email rather than using the BTS e-Submit web-application.
HAWAIIAN AIRLINES, INC. FINED $160,000
On May 21, 2015, DOT assessed Hawaiian Airlines Inc. (Hawaiian) $160,000 in civil penalties for failing to adhere to domestic baggage liability rules and engaging in unfair and deceptive practices regarding advertising.
- Domestic Baggage Liability: Hawaiian by virtue of its operations is subject to the requirements in 14 C.F.R. Parts 254 and 259. Part 254 states that “an air carrier shall not limit its liability for provable direct or consequential damages resulting from the disappearance of, damage to, or delay in delivery of a passenger’s baggage to an amount less than $3,300 per passenger for travel before June 6, 2013, and $3,400 for travel on or after June 6, 2013.”
In response to a consumer complaint, DOT investigated Hawaiian’s procedures regarding handling claims for mishandled checked baggage on domestic flights. DOT found numerous occasions where Hawaiian limited reimbursement for damages associated with delayed baggage to $30 per day with a maximum of three days regardless of the facts of the claim. DOT also found that the carrier did not comply with its Customer Service Plan, which is available on the carrier’s website and states Hawaiian will compensate passengers for all reasonable expenses that result due to delay in delivery according to domestic and international agreements.
- Advertising Requirements: DOT investigated a promotional program associated with the Hawaiian Visa Signature credit card program and found that between May 2013 and July 2013 the carrier advertised airfares that could not be purchased. As part of a promotion to promote its Visa Signature credit program, Hawaiian advertised a “one-time 50% round-trip companion travel discount” for flights between North America and Hawaii to consumers who signed up for the credit card. The promotion could be redeemed by searching for and booking the flight through the carrier’s website and entering an eCertificate code prior to payment. When passenger searched the site, the website initially advertised fares that were the lowest fare supposedly available. However, after entering the code, a much higher price was presented and the discount was applied to the higher price.
FAA PROPOSED PENALTIES
- $150,000 against Ameriflight, LLC of Burbank, California for operating a Beech BE-99 while not in compliance with FAA regulations. Ameriflight mechanics allegedly patch sealed a windshield in two instances due to water leakage, rendering the aircraft unairworthy, but nevertheless continued to operate flights.
- $227,000 against Amplachem Inc., of Carmel, Indiana for violating Hazardous Materials Regulations. FAA alleges that on April 10, 2013, AmplaChem for shipment via FedEx air transportation an undeclared shipment that included Boron Tribomide. Boron Tribomide is a corrosive material and toxic inhalation hazard that is forbidden from being transported aboard a commercial aircraft. The shipment also included two other corrosive materials. The material was discovered smoldering and burning when unloaded at the destination.
If you have any questions, please contact Evelyn Sahr (esahr@eckertseamans.com, 202-659-6622) or Drew Derco (dderco@eckertseamans.com, 202-659-6665).