Order 2011

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UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation

O n the 5 th day of April, 2011

Flythere4less .com OST

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Served April 5, 2011

Violations of 14 CFR Part 257 and 49 U.S.C. § 41712

C ONSENT O RDER

This consent order concerns violations by Flythere4less .com (Flythere4less)

, an online airline ticket agent, of the Department’s code

- share disclosure rule, 14 CFR Part 257, and the statutory prohibition against unfa ir and deceptive practices, 49 U.S.C. § 41712. It

directs Flythere4less to cease and desist from future violations of Part 257 and section

41712 and assesses Flythere4less $ 4 0 ,000 in civil penalties.

S ection 257.4 of the Department’s code

- share disclosu re rule states that the holding out or sale of scheduled passenger air transportation involving a code

- sharing arrangement is an unfair and deceptive trade practice in violation of 49 U.S.C. § 41712 unless, in conjunction with that holding out or sale, the advertiser follows certain notice requirements, including those of 14 CFR 257.5(d). The specific terms of section 257.5(d) require that print advertisements, including those published on the Internet, “prominently disclose that the advertised service may involve travel on another carrier,” “clearly indicate the nature of the service in reasonably sized type,” and “identify all potential transporting carriers... by corporate name and by any other name under which that service is held out to the public.”

An investigation by the Office of Aviation Enforcement and Proceedings (Enforcement Office) revealed a significant lack of compliance by Flythere4less with section 257.5. During at least the latter half of 2010

, Flythere4less failed to properly disclose the

existence of code

- sharing arrangements when advertising code

- share flights operated on behalf of a major air carrier by a regional air carrier on its Internet website

www. flythere4less .com . Specifically, it did not display the corporate names of the

trans porting carriers and any other names under which those flights were held out to the public on its flight itinerary pages. Flythere4less ’ failure to properly disclose the

existence of code

- sharing arrangements and the names of the transporting carriers cou ld2

have result ed in consumers being deceived regarding the identity of the airline that was actually to operate the aircraft on which the consumer would be flying.

In mitigation, Flythere4less states that it relied on a Global Distribution System (GDS) to provide it with the flight information it advertised on its website, www.flythere4less.com

. Flythere4less states that the GDS failed to provide F lythere4less with the name of the operating carrier on code

- shar e flights when both the operating carrier and the marketing carrier shared the same airline code. Flythere4less states, however, that when the operating carrier and the marketing carrier had different codes, the GDS did provide

F lythere4less with the name of the operating carrier

, which allowed Flythere4less, in these instances, to correctly advertise the name of the operating carrier on its website. Flythere4less further states that the GDS now provides the corporate name of the operating carrier invo lved in a code

- sharing arrangement for all flights

.

We view seriously the failure of Flythere4less to disclose code

- sharing arrangements as required by 14 CFR Part 257. Accordingly, after carefully considering all of the facts in this case, including tho se set forth above, the Enforcement Office believes that enforcement action is warranted. In order to avoid litigation, Flythere4less agrees to the

issuance of this order to cease and desist from future similar violations of Part 257 and 49 U.S.C. § 41 712 and to the assessment of $ 4 0 ,000 in compromise of potential civil penalties otherwise assessable against it. We believe that this compromise assessment is appropriate in view of the nature and extent of the violations in question, serves the public inter est, and provides a meaningful incentive to all airlines and ticket agents to comply with the Department’s code

- share disclosure rule.

This order is issued under the authority contained in 49 CFR 1.57a and 14 CFR 385.15.

ACCORDINGLY,

1. Based on th e above discussion, we approve thi s settlement and the provisions of this order as being in the public interest;

2. We find that Flythere4less .com violated 14 CFR 257.5 (d ) by failing to disclose

code

- shar ing arrangements as required;

3. We find that by engaging in the conduct and violations described in ordering paragraph 2 above, Flythere4less .com engaged in an unfair and deceptive practice and unfair method of competition in violation of 49 U.S.C. § 41712;

4. We order Flythere4less .com an d all other entities owned or controlled by

, or under common ownership and control with Flythere4less .com
, and its successors and assignees to cease and desist from further violations of 14 CFR Part 257 and 49 U.S.C. § 41712;3

5. We assess F lythere4less .com $40,000 in compromise of civil penalties that might otherwise be assessed for the violations described above. Of this total penalty amount, $20,000 shall be due and payable as follows: $5,000 shall be due and payable within 30 days of th e date of issuance of this order; three payments of $5,000 each shall be due and payable on May 1, 2011, June 1, 2011, and July 1, 2011. T he remaining portion of the civil penalty amount, $20,000 shall become due and payable if, withi n one year of the date of issuance of this order, Flythere4less .com violates this order’s cease and desist provisions or fails to comply with this order’s payment provisions, in which case, Flythere4less .com may become subject to additional enforcement act ion for violation of the order; and

6. P ayment s shall be made by wire transfer through the Federal Reserve Communications System, commonly known as “Fed Wire,” to the account of the U. S. Treasury in accordance with the instructions contained in the

At tachment to this order. Failure to pay the penalty as ordered will subject Flythere4less .com to the assessment of interest, penalty and collection charges under the Debt Collection Act and to possible enforcement action for failure to comply with this ord er.

This order will become a final order of the Department 10 days after its service date unless a timely petition for review is filed or the Department takes review on its own

motion.

BY:

ROSALIND A. KNAPP Deputy General Counsel

(SEAL)

An electro nic version of this document is available on the World Wide Web at www.regulations.gov