Order 2014-2-9

 UNITED STATES OF AMERICA

 DEPARTMENT OF TRANSPORTATION

 OFFICE OF THE SECRETARY

 WASHINGTON, D.C.

Issued by the Department of Transportation

On the Twentieth day of February, 2014

JetBlue Airways Corporation

Docket OST 2014-0001

Violations of 14 CFR Part 254 and

49 U.S.C. § 41712

Served February 20, 2014

CONSENT ORDER

This consent order concerns violations by JetBlue Airways Corporation (JetBlue) of the 

Department’s domestic baggage liability rule, 14 CFR Part 254. It directs JetBlue to 

cease and desist from future violations of Part 254, and assesses the carrier a 

compromise civil penalty of $25,000. 

Applicable Law

Pursuant to 14 CFR 254.4, 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 $3,400 per passenger for travel 

on or after June 6, 2013.1 In addition, section 254.6 requires the Department to review 

every two years the minimum limit of liability and to revise the limit to reflect changes 

in the Consumer Price Index for All Urban Consumers (CPI-U).2 Carriers must provide 

passengers with proper notice of the baggage liability limit on or with their tickets, as 

required by section 254.5. Violations of Part 254 constitute unfair or deceptive business 

practices and unfair methods of competition in violation of 49 U.S.C. § 41712.

 1 The minimum liability for travel before June 6, 2013, was $3,300. 78 Fed. Reg. 14913.

2 Effective January 18, 2000, the Department raised the minimum limit from $1,250 to $2,500 (64 Fed. 

Reg. 70573). On September 22, 2004, the minimum limit was raised to $2,800 (69 Fed. Reg. 56692); 

thereafter on January 29, 2007, the minimum limit was raised to $3,000; on November 21, 2008, the 

minimum limit was raised to $3,300 (73 Fed. Reg. 70591); and most recently, on March 8, 2013, the limit 

was increased to $3,400, effective June 6, 2013 (78 Fed. Reg. 14913).
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Facts and Conclusions

In August 2013, the Office of Aviation and Enforcement Proceedings (Enforcement 

Office) learned that JetBlue was dispensing boarding passes from its kiosks which stated 

on the back of the pass that the limit on domestic baggage liability was $2,500, the 

liability limit in effect between January 2000 and October 2004. Specifically, the 

Enforcement Office determined that out of JetBlue’s seventy nine airport stations, forty 

four stations had JetBlue-owned kiosks, and it was those kiosks that were printing 

boarding passes with the outdated baggage liability limit. The outdated amount was 

found only on the back of JetBlue’s boarding passes and not on electronic tickets and 

other documents that disclosed the baggage liability limit. As described above, in 

accordance with section 254.5, carriers are required to provide passengers with the 

proper notice of the baggage liability limit on or with their tickets. By providing 

outdated information to passengers, JetBlue violated 14 CFR 254.5 and 49 U.S.C. 

§ 41712. 

Mitigation

In mitigation, JetBlue states that it takes its regulatory responsibilities very seriously. 

JetBlue states that each of its passengers were informed of the correct limit on liability 

for baggage claims through its email ticket confirmations, which contained the correct 

liability limit, and in addition its contract of carriage stated the accurate limit. While the 

information contained on the back of the boarding passes was outdated, JetBlue 

complied with the requirements of 14 CFR Part 254 by providing the correct liability 

limits through its email confirmation and its contract of carriage. To its knowledge, 

JetBlue states that no passenger’s recovery for lost luggage was ever limited as stated in 

the outdated boarding passes, and that its policy is, and always has been, to apply the 

correct limit. JetBlue also states that it has removed the outdated boarding passes from 

circulation and is currently in full compliance with Part 254. 

Decision

The Enforcement Office has carefully considered the information provided by JetBlue, 

but continues to believe enforcement action is warranted. The Enforcement Office and 

JetBlue have reached a settlement of this matter in order to avoid litigation. Without 

admitting the violations described above, JetBlue consents to the issuance of this order 

to cease and desist from future violations of 14 CFR Part 254 and 49 U.S.C. § 41712, 

and to the assessment of $25,000 in compromise of potential civil penalties otherwise 

due and payable pursuant to 49 U.S.C. § 46301.

The compromise assessment is appropriate considering the nature and extent of the 

violations described herein and serves the public interest. It establishes a strong deterrent 

to future similar unlawful practices by JetBlue and other sellers of air transportation.

This order is issued under the authority contained in 49 CFR Part 1.
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ACCORDINGLY,

1. Based on the above information, we approve this settlement and the provisions 

of this order as being in the public interest;

2. We find that JetBlue Airways Corporation violated the requirements of 14 CFR 

254.5 by providing an inaccurate statement of the minimum limit on domestic 

baggage liability on its boarding passes;

3. We find that JetBlue Airways Corporation by its activities described in ordering 

paragraph 2, above, engaged in unfair and deceptive practices in violation of 

49 U.S.C. § 41712;

4. We order JetBlue Airways Corporation, and all other entities owned or 

controlled by, or under common ownership and control with JetBlue Airways 

Corporation, its successors, affiliates, and assignees, to cease and desist from 

further violations of 14 CFR Part 254 and 49 U.S.C. § 41712;

5. We assess JetBlue Airways Corporation $25,000 in civil penalties in 

compromise of civil penalties that might otherwise be assessed for the violations 

found in ordering paragraphs 2 and 3 above; and

6. We order JetBlue Airways Corporation to remit the payment assessed in 

paragraph 5, above, within 30 days of the issuance of this order. Payment shall 

be made through Pay.gov 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 shall subject to the assessment of interest, penalty, and 

collection charges under the Debt Collection Act and to further enforcement 

action for failing 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:

BLANE A. WORKIE

Acting Assistant General Counsel for

 Aviation Enforcement and Proceedings

An electronic version of this document is available at 

www.regulations.gov