### SERVE D JUN E1,201 0 U.S . DEPARTMEN T O FTRANSPORTATIO N

OFFIC EO FHEARING S WASHINGTON , D.C . I N TH EMATTE RO F ISLAN D HELICOPTER S INTERNATIONAL , LTD . FA A DOCKE T NO . CP08SO001 3 (Civi l Penalty Action ) DM S NO . FAA-2008-069 3 ADMINISTRATIV ELA WJUDGE' S ORDE R O N JURISDICTIONA LISSU E I n thi s case , th e Complainant , th e Federa l Aviatio n Administratio n (FAA) , seek s t o recove r

an $11,00 0 civi l penalt y fromth e Respondent . Th e Responden t

i s acompan y forme dunde r th e law s o f

th e Britis hVirgi n Island s an di s domicile do n th e Islan do f Tortola . Accordin g t o th e FAA' s complaint , th e Responden t publishe dawe b sit e o n whic hi t offere dt o perfor mhelicopte r

charte r flights for

hir e t o variou s locations , includin g location s i n th e Unite dState s Virgi n Island s (i.e. , St . Thoma s an dSt . Croix ) a s wel l a s t o Sa

n Jua n i n Puert o Rico . A t tha t time , th e Responden t

di dno t hol dauthority fromth e FA A t o conduc t charte r operation s for

hire . Th e Respondent' s activity wa s allege dt o hav e violate dsectio n 119.5(k ) o f th e Federa l Aviatio n Regulation s (FAR) , whic hreads , "N o perso n ma y advertis e o r otherwis e offer

t o performan operation s subjec t t o thi s part

unles s tha t perso n i s authorize db y th e Federa l Aviatio n Administration t o conduc t tha t operation. " Th e threshol dissu e thi s cas e present s i s whethe r th e FA A may assert jurisdictio n over

aforeig n ai r

carrie r merel y becaus e i t

advertise s tha t

i t provide s servic e t o an dfromU.S . locations . Fo r reason s tha t

follow , I conclud e tha t

th e FA A ha s regulatory jurisdictio n t o d o so , at leas t i n th e circumstance s o f

thi s case .I n my pre-hearin g orde r o f Octobe r 9 , 2008, 1 aske dth e Complainan t t o fil e amemorandu mdiscussin g th e principl e o r principle s unde r

whic hi t believe s i t

ha s jurisdictio n t o enforc e §119.5(k ) over apart y who , s o fa

r a s th e recor dshows , ha s neve r provide dservic e t o alocatio n withi n th e Unite d States . Th e FA A responde dt o that reques t i n amemorandu mlayin g dow n " th e reason s fo

r it s position . I amgratefu l t o th e agenc y fo r it s assistanc e withthi s thorn y subject . I n it s memorandu mth e FA A supplemente dth e allegation s i n it s complain t b y pointin g ou t

tha t th e chie f executiv e officer

o f th e Responden t i s aU.S . citize n wh o hol da s U.S.-issue dpilot' s license . Th e memorandu m als o state s tha t

th e aircraf

t tha t th e Responden t

operate s ar e registere di n th e Unite dStates , notwithstandin g th e fac t tha t th e Respondent , a s operator , lack s authority t o performfor-hir e transportatio n o f passengers . I t i s well-settle dtha t

th e applicatio n o f

U.S . regulatory statutes t o activitie s takin g plac e outsid e th e territoria l limit s o f th e Unite dState s i s a fijnction o f

th e intent o f Congres s whe n i t

enacte dth e statut e authorizin g th e particular regulatory action . Se e EEO C v . Arabia n America n Oi l Co. , 49 9 U.S . 244 , 24 8 (1991) ; Fole y Bros. , Inc . v . Filardo , 33 6 U.S . 281 , 28 5 (1949) . I n thi s case , 4 9 U.S.C . §4770 1 (a)(5 ) authorize s th e FA A t o prescrib e regulation s tha t

i t finds necessary t o promot e safet y i n ai r commerce . Thi s authorizatio n i s broadenoug ht o exten dt o aforeig n ai r carrier' s effort s t o secur e customer s for

flights int o th e airspac e o f th e Unite dStates . I n addition , 4 9 U.S.C . §40105(b)(1)(A ) require s th e FA A Administrato r

t o carry ou t

hi s o r he r dutie s i n amanne r

consisten t

withth e obligation s o f

th e Unite dState s unde r

it s internationa l agreements . Amon g thos e agreement s i s th e Chicag o Conventio n o n Internationa l Civi l Aviation . Unde r Articl e 32(b ) o f

th e Chicag o Convention , th e Unite dState s i s responsibl e for

th e safet y o f operatio n o f

aircraf t registere di n th e Unite d States , regardles s o f

wher e th e operation s tak e place . I t i s als o worthnotin g tha t

th e Departmen t

o f Transportatio n ha s o n numerou s occasion s asserte dit s regulatory authority ove r foreig n ai r

carrier s tha t hav e advertise do n th e Internet . O n Septembe r 24 , 1997 , th e Offic e o f Aviatio n an dProceeding s (AEP ) issue danotic e "t o clarif y it s enforcemen t polic y wit hregar dt o th e advertisin g o f servic e t o an dfromth e U.S . b y foreig n carriers. " Advertisin g o f Schedule dServic e i n Foreig n Ai r Transportation , 6 2 Fed . Reg . 51,17 5 (Sept . 30 , 1997) . Th e notic e state dthat"AE Pha s i n th e pas t applie dan dwil l continu e t o appl y th e sam e standard s t o th e advertisemen t

o f propose dservic e b y foreig n ai r carrier s a s i t currentl y applie s .. . t o U.S . applicant s for certificat e authority. " Th e Notic e conclude s tha t

i t i s an unfai r

an ddeceptiv e practic e for aforeig n ai r

carrie r t o lis t o r advertis e servic e for

whic hi t lack s al l requisit e authorization s from th e Departmen t

i n an y mediu m"reasonabl y likely " t o reac hth e U.S . public . Thos e media , th e Notic e indicates , includ e th e Internet. I n alater case . Ai r Jamaica , LTD. . Docke t

No . OS T 2008-0031 , 200 8 W L550546 3 (Dec . 30 , 2008) , aforeig n ai r carrier' s Interne t

advertisement s wer e hel dt o b e ou t

o f complianc e withaDepartmenta l rul e o n fiill-fare advertising , becaus e th e carrie r advertise do n it s Interne t websit e fare s tha t di dno t includ e certai n carrier-impose dfees . Similarly , i n Israi r Airline s an d Tourism , LTD. , Docke t

No . OS T 2006-23528 , 200 6 WL369775 0 (Nov . 16 , 2006) , th e Departmen t

too k enforcemen t

actio n agains t

aforeig n ai r

carrie r wh o wa s hel dt o hav e violate dth e DOT' s fiill-fare advertisin g requirement b y virtu e of

, inte r alia , omission s i n fare quotation s foun do n th e Internet . Th e consisten t

positio n o f

thi s Department , therefore , ha s bee n tha t inaccurat e o r

misleadin g statement s o n an Interne t websit e may subjec t

a carrie r t o enforcemen t

actio n unde r

U.S . law . I n thi s case , suc hactio n i s specificall y authorize db y th e statute s whic hgrantin g th e FA A authority t o impos e liability for

acivi l penalt y o n persons , n o matte r wher e located , wh o violat e th e FAR . 4 9 U.S.C . §§46301(a)-46301(d) . I conclude , therefore , tha t thi s enforcemen t

proceedin g wa s wel l withi n th e jurisdictio n o f

th e FAA . Accordingly , thi s cas e wil l b e se t fo r hearin g o n adat e an dat

a locatio n t o b e determine di n afixture notic e b y th e administrativ e la w judg e t o who mth e cas e i s assigned . Th e partie s shoul dprepar e for th e hearin g an d should , i n th e interim , exercis e thei r bes t effort s t o arriv e at

an amicabl e settlemen t tha t wil l rende r

th e effor t an dexpens e o f

suc hahearin g unnecessary .

Isaa c D . Benki n Administrativ e La w Judg eFA A Docke t No . CP08SO001 3 (Civi l Penalty Action ) SERVIC ELIS T ORIGINA L& ON E COP Y Hearin g Docke t Federal Aviatio n Administratio n 80 0 Independenc e Avenue , S.W . Washington , D C 2059 1 Att : Hearin g Docke t

Clerk , AGC-43 0 Wilbu r Wrigh t Buildin g - Roo m2014 '

ON ECOP Y Bradle y P . Hanger , Presiden t Islan dHelicopter s Internationa l P.O . Bo x 290 0 Eas t End , Tortol a Britis hVirgi n Islands , Wes t Indie s TEL : (284)495-253 8 FAX : (954)359-321 3 Raymon dVeatch , Esq . Federal Aviatio n Administratio n Offic e o f th e Regiona l Counsel , ASO- 7 Southern Regio n P.O . Bo x 2063 6 Atlanta , GA 3032 0 TEL : (404)305-520 0 FAX : (404)305-522 3 Th e Honorabl e Isaa c D . Benki n Administrativ e La w Judg e Offic e o f Hearings , M-2 0 U.S . Departmen t

o f Transportatio n 120 0 Ne w Jerse y Avenue , S.E . Eas t Building , Groun dFloo r Roo mE12-35 8 Washington , D C 2059 0 TEL : (202)366-213 2 FAX : (202)366-753 6

' Service was b

y U.S . Mall . Fo

r servic e i n person o r b y expeditedcourier , us e the followin g address : Hearin g Docket, Federa

l Aviation Administration , 600 Independence Avenue , S . W. , Wilbu r Wrigh t Building - Roo

m 2014 , Washington , D

C 20591 , Att : Hearing Docke t Clerk, AGC-430 .