RECENTLY ISSUED PENALTIES

December 21, 2014

The following penalties were issued in November 2014:

Saudi Arabian Airlines Corporation (Saudia) was fined $50,000 on November 26, 2014 for selling air service between Jeddah, Saudi Arabia, and Los Angeles, California, prior to receiving economic authority from the Department. On March 3, 2014, Saudia filed an application for exemption authority to provide scheduled foreign air transportation between Saudi Arabia and the United States, which was granted by DOT’s Office of International Aviation on March 24, 2014. Prior to receiving authority from DOT, however, Saudia launched an advertising campaign about its proposed service via the carrier’s website, emails, newspapers, magazines, and social media sites. Despite the fact that Saudia did not operate service on the proposed route prior to receiving authorization, DOT determined the carrier’s advertising campaign violated sections 41301 and 41712 and fined Saudia $50,000.

McCauley Propeller Systems (McCauley) was fined $238,000 for allegedly violating the Hazardous Materials Regulations (HMR). McCauley offered two undeclared packages hazardous materials to FedEx for shipment by air. After conducting an investigation the FAA determined that McCauley did not declare the hazardous materials, nor were the shipments properly classed, described, packaged and marked in accordance with HMR requirements. In addition, the company failed to provide emergency response information with the packages and did not ensure its employees received proper training for shipping hazardous materials.

AAR Aircraft Services (AAR) was fined $150,000 for alleged aircraft maintenance violations. A FAA investigation determined that AAR used an unqualified repairman to perform at least 18 maintenance tasks on a major air carrier’s aircraft between September 2012 and 2013. FAA found that the repairman performed maintenance that was not authorized by his repairman certificate and fined AAR $150,000.

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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