Order 2012-5-4

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

On the Third day of May, 2012

Air India, Limited Docket OST 2012-0002

Violations of 49 U.S.C. § 41712 and Served May 3, 2012

 14 CFR 259.6 and 399.85(d)

CONSENT ORDER

This consent order concerns violations by Air India, Limited, (Air India) of 14 CFR 

Parts 259 and 399 and the statutory prohibition against unfair and deceptive practices and 

unfair methods of competition, 49 U.S.C. § 41712. It directs Air India to cease and desist 

from future violations of those regulations and section 41712 and assesses the carrier a 

compromise civil penalty of $80,000. 

Applicable Law

On April 25, 2011, the Department issued a set of rules designed to enhance protections 

for air travel consumers that, among other things, require “covered carriers,” which 

include foreign air carriers that operate scheduled passenger service to or from the United 

States with at least one aircraft with a design capacity of 30 or more passenger seats, to 

adopt and adhere to contingency plans for lengthy tarmac delays and customer service 

plans.

1

 The new rules also require covered carriers, on their respective websites, to post 

those plans and to prominently disclose their fees for optional services. The effective 

date for these rules was August 23, 2011. 

I. Contingency Plan for Lengthy Tarmac Delays

Pursuant to 14 CFR 259.4, covered carriers are required to adopt, implement, and adhere 

to contingency plans for lengthy tarmac delays at each U.S. large hub airport, medium 

hub airport, small hub airport, and non-hub airport at which they operate scheduled or 

 1 76 Fed. Reg. 23110 (April 25, 2011). 
public charter air service, including planned diversion airports. Pursuant to 14 CFR 

259.6(a), each covered carrier that has a website marketed to U.S. consumers and that is 

required to adopt a contingency plan for lengthy tarmac delays is required to post its 

current contingency plan on its website in easily accessible form. A covered carrier’s 

failure in either regard violates the applicable rule and constitutes an unfair and deceptive 

practice and unfair method of competition in violation of 49 U.S.C. § 41712. 

II. Customer Service Plan

Pursuant to 14 CFR 259.5, covered carriers are required to adopt and follow customer 

service plans. Pursuant to 14 CFR 259.6(b), each covered carrier that has a website 

marketed to U.S. consumers and that is required to adopt a customer service plan is 

required to post its current customer service plan on its website in easily accessible form. 

A covered carrier’s failure in either regard violates the applicable rule and constitutes an 

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

§ 41712.

III. Notice of Fees for Optional Services

Pursuant to 14 CFR 399.85(d), foreign air carriers that have a website marketed to U.S. 

consumers must prominently disclose on the homepage of their website a clear and 

conspicuous hyperlink that takes the viewer directly to a page or a place on a page where 

all fees for optional services that they may charge, including baggage fees, are disclosed. 

A foreign air carrier’s failure in this regard violates the applicable rule and constitutes an 

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

§ 41712.

Facts and Conclusions

Air India is a foreign air carrier holding economic authority pursuant to 49 U.S.C. 

§ 41301 that operates scheduled passenger service to and from the United States using 

aircraft with a design capacity of 30 or more passenger seats. The carrier also has a 

website marketed to U.S. consumers. As such, Air India is a covered carrier subject to 

the requirements of 14 CFR Part 259 pertaining to the posting of tarmac delay 

contingency and customer service plans, and it is also subject to the optional fee notice 

requirement of 14 CFR 399.85(d). Nevertheless, Air India failed to post its tarmac delay 

contingency and customer service plans on its website by August 23, 2011, as required. 

Additionally, Air India failed to place by August 23, 2011, a clear and conspicuous 

hyperlink on its website homepage that directly links to a page or a place on a page where 

all optional services and related fees are disclosed.

 Mitigation

In mitigation, Air India states that it takes its obligation to comply with DOT rules very 

seriously and further states this is reflected by a perfect compliance record for over 50 

years of serving the U.S.-India market. It states that while it had uploaded its tarmac 
delay and customer service plans to its website, they apparently did not properly appear 

due to a technical problem that had to be repaired. Air India points out that it does not 

impose extra charges for any of the services listed in section 399.85(d) – namely, for 

carry-on bags, first and second checked bags, advanced seat selection, and on-board 

meals and beverages; nor does it charge for phone reservations. Accordingly and given 

its traditional inclusive pricing policy, the company asserts that the delay in 

implementing the optional services link from its homepage was due to its 

misunderstanding that charges for the few optional services it does charge for, such as for 

excess or overweight bags, were required to be included in a single location. Air India 

maintains that the additional charges for these services have always been easy to locate 

on Air India’s website under “Before You Fly – Baggage.” Finally, Air India maintains

that fixing the website was delayed by the unfortunate and unexpected death of the 

employee responsible for making the changes.

Decision

The Enforcement Office has carefully considered the information provided by Air India, 

Limited, but continues to believe that enforcement action is warranted. The Enforcement 

Office and Air India, Limited, have reached a settlement of this matter in order to avoid 

litigation. Without admitting or denying the violations described above, Air India, 

Limited, consents to the issuance of this order to cease and desist from future violations 

of 14 CFR 259.6 and 399.85(d) and 49 U.S.C. § 41712 and to the assessment of $80,000

in compromise of potential civil penalties otherwise due and payable pursuant to 

49 U.S.C. § 46301.

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

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

against future noncompliance by Air India, Limited, and other carriers and ticket agents 

with the Department’s consumer protection disclosure regulations. 

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

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 Air India, Limited, violated 14 CFR 259.6(a) by failing to post its 

current contingency plan for lengthy tarmac delays on its website in easily accessible 

form;

3. We find that Air India, Limited, violated 14 CFR 259.6(b) by failing to post its 

current customer service plan on its website in easily accessible form;

4. We find that Air India, Limited, violated 14 CFR 399.85(d) by failing to prominently 

disclose on its website homepage a clear and conspicuous hyperlink that takes the 
viewer directly to a page or a place on a page where all fees for optional services that 

it may charge are disclosed;

5. We find that by engaging in the conduct described in ordering paragraphs 2 through 

4, above, Air India, Limited, engaged in unfair and deceptive practices and unfair 

methods of competition in violation of 49 U.S.C. § 41712;

6. We order Air India, Limited, and all other entities owned or controlled by, or under 

common ownership and control with Air India, Limited, their successors and 

assignees, to cease and desist from further similar violations of 14 CFR 259.6 and 

399.85(d) and 49 U.S.C. § 41712. Failure to comply with this cease and desist 

provision shall subject Air India, Limited, and its successors and assignees to further 

enforcement action;

7. We assess Air India, Limited, $80,000 in compromise of civil penalties that might 

otherwise be assessed for the violations described above. Of this total penalty 

amount, $40,000 shall be due and payable within 30 days of the date of issuance of 

this order. The remaining $40,000 shall be due and payable immediately if Air India, 

Limited, violates this order’s cease and desist or payment provisions within one year 

of the issuance of this order; and

8. We order Air India, Limited, to remit the payment ordered in paragraph 7 above 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 shall subject Air India, Limited, to the assessment of interest, penalty, and 

collection charges under the Debt Collection Act, and to additional 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 at 

www.regulations.gov