Order 2011-4-21

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION 

OFFICE OF THE SECRETARY 

WASHINGTON, D.C.

Issued by the Department of Transportation

On the Twenty-Sixth day of April, 2011

Airtrade International, Inc. OST-2011-0003

Served April 26, 2011

Violations of 14 CFR Part 257 and

 49 U.S.C. § 41712

CONSENT ORDER

This consent order concerns violations by Airtrade International, Inc., (Airtrade) an online 

airline ticket agent, of the Department’s code-share disclosure rule, 14 CFR Part 257, and 

the statutory prohibition against unfair and deceptive practices, 49 U.S.C. § 41712. It 

directs Airtrade to cease and desist from future violations of Part 257 and section 41712 

and assesses Airtrade $50,000 in civil penalties.

Section 257.4 of the Department’s code-share disclosure 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 Airtrade with section 257.5. During 

at least the latter half of 2010, Airtrade failed to properly disclose the existence of codesharing arrangements when advertising code-share flights operated on behalf of a major 

air carrier by a regional air carrier on its Internet website www.vayama.com. Specifically,

it did not display the corporate names of the transporting carriers and any other names 

under which those flights were held out to the public on its flight itinerary pages. 

Airtrade’s failure to properly disclose the existence of code-sharing arrangements and the 

names of the transporting carriers could have resulted in consumers being deceived 
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regarding the identity of the airline that was actually to operate the aircraft on which the 

consumer would be flying.

In mitigation, Airtrade states that the flight listings on its website that did not disclose 

code-share flights were in part due to a failure by its Global Distribution System ("GDS") 

provider to properly identify flights that involved code-share segments. Once Airtrade 

received notice of the code-share disclosure requirements, it promptly brought its website 

into compliance with those requirements as specified in 49 U.S.C. § 41712 and 

14 CFR Part 257. Airtrade states that it will continue to monitor its website to ensure that 

it discloses code-share flights according to the information it receives from its GDS 

provider and/or the airlines.

We view seriously the failure of Airtrade to disclose code-sharing arrangements as 

required by 14 CFR Part 257. Accordingly, after carefully considering all of the facts in 

this case, including those set forth above, the Enforcement Office believes that 

enforcement action is warranted. In order to avoid litigation, Airtrade agrees to the 

issuance of this order to cease and desist from future similar violations of Part 257 and 49 

U.S.C. § 41712 and to the assessment of $50,000 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 interest, 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 the above discussion, we approve this settlement and the provisions of 

this order as being in the public interest;

2. We find that Airtrade International, Inc., violated 14 CFR 257.5(d) by failing to 

disclose code-sharing arrangements as required;

3. We find that by engaging in the conduct and violations described in ordering 

paragraph 2 above, Airtrade International, Inc., engaged in an unfair and 

deceptive practice and unfair method of competition in violation of 49 U.S.C. 

 § 41712;

4. We order Airtrade International, Inc., and all other entities owned or controlled 

by, or under common ownership and control with Airtrade International, Inc.,

and its successors and assignees to cease and desist from further violations of 

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

5. We assess Airtrade International, Inc., $50,000 in compromise of civil penalties 

that might otherwise be assessed for the violations described above. Of this 

total penalty amount, $25,000 shall be due and payable within 30 days of the 
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date of issuance of this order. The remaining portion of the civil penalty amount

shall become due and payable if, within one year of the date of issuance of this 

order, Airtrade International, Inc., violates this order’s cease and desist 

provisions or fails to comply with this order’s payment provisions, in which 

case, Airtrade International, Inc., may become subject to additional enforcement 

action for violation of the order; and 

6. Payments 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 

Attachment to this order. Failure to pay the penalty as ordered will subject 

Airtrade International, Inc., 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 order.

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 electronic version of this document is available on the World Wide Web at

www.regulations.gov