Order 20 10

- 4

- 17

UNITED STATES OF AM ERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation

O n the Thirtieth day of April, 2010

Aero Services

- Executive

, S.A. Docket OST 20 10

- 000 5

Violations of 49 U.S.C. § 41708 and 14 CFR

Part 217 Served April 30

, 20 10

CONSENT ORDER

This consent order concerns reporting delinquencies by Aero Services

- Executive, S.A., (ASE) that constitute violations of 49 U.S.C. § 41708 and the Department’s foreign air carrier reporting requirements ( 14 CFR Part 217) . This order directs ASE to cease and desist from future violations, and assesses the carrier a compromise civil penalty of $ 2 0,000

.

Section 41708 of the United States Code inter alia authorizes the Secretary of Transportation to require air carriers and foreign air carriers to submit reports to the Department. Pursuant to section 41708, 14 CFR Part 217 designates the categories of

statistic al data to be collected from foreign air carriers and prescribes the manner in

which these data are to be submitted to the Department. The Department uses the data for various important purposes, including analyz ing the effects of air transportation industry policy initiatives, allocat ing airport development funds, forecast ing traffic, and develop ing a irport and airway traffic policy. A foreign air carrier’s failure to file its

reports , therefore, prevents the Department from making fully informed decisions. Failure to file reports when they are due constitutes a violation of both 49 U.S.C. § 41708

an d 14 CFR Part 217.

ASE is a direct air carrier based in Le Bourget, France, that specializes in corporate charters. In 2002, ASE applied for and received foreign air carrier exemption authority from the Department to operate on

- demand charter flights to and from the United State s

. 1

1 Notice of Action Taken

– Docket OST

- 2001

- 10973

- 4 (January 25, 2002). Since then, ASE has operated several flights into the U.S. each year , but failed to file2

Schedule T

- 100(f) with the Department’s Bureau of Transportation Statistics as required by Part 217 until August 2009

.

In mitigation, ASE states that it has cooperated with Department throughout this matter. Immediately after being contacted by the Office of the Assistant General Counsel for Aviation Enforcement and Proceedings (Enforcement Office) , ASE took several remedial actions, in cluding submitting delinquent reports, providing a complete list of flights it has conducted to and from the U.S. during the relevant time period, and implementing an internal program to ensure that future reports will be submitted in a timely

manner.

We view seriously the failure of Aero Services

- Executive, S.A., to file traffic statistics reports as required by s ection 41708 and Part 217

. The Enforcement Office has carefully

considered all the circumstances surrounding this matter, and cont inues to believe that

enforcement action is warranted. The Enforcement Office and Aero Services

- Executive, S.A., have reached a settlement of this matter in order to avoid litigation. Aero Services

Executive, S.A., consents to the issuance of an order to cease and desist from future violations, and to the assessment of $ 2 0,000 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 t he

violations described herein and serves the public interest. It represents an adequate deterrence to future noncompliance with the Department’s reporting requirements by

Aero Services

- Executive, S.A. , as well as by other air carriers and foreign air car riers.

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 the order as being in the public interest ;

2. We find that A ero Services

- Executive, S.A., violated 49 U.S.C. § 41708 and 14

CFR Part 217 , as described above, by failing to file required monthly traffic data reports in a timely manner ;

3. We order Aero Services

- Executive, S.A., and all other entities owned and

cont rolled by or under common ownership with Aero Services

- Executive, S.A., and its successors and assignees

, to cease and desist from further violations of 49 U.S.C. § 41708

and 14 CFR Part 217 ;

4

. We assess a compromise civil penalty of $ 2 0,0 00 in lieu of civil penalties that might

otherwis e be assessed for the violation found in paragraphs 2 of this order; and

5

. Payment sh all be made within 15 days of the issuance date of this order by wire transfer through the Federal Reserve Communication System, commonly known as “Fed Wire,” to the account of the U.S. Treasury in accordance with the attached instructions.3

Failure to pay the penalty as ordered shall subject Aero Services

- Executive, S.A., to the assessment of interest, penalty, and collection char ges under the Debt Collection Act and to possible enforcement action for fa ilure to comply with this order

.

T his 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 Departmen t takes review on its own

initiative.

BY:

ROSALIND A. KNAPP Deputy General Counsel (SEAL)

An electronic version of this document is available

a t www. regulations.gov