Order 20 11

- 6

- 32

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation

On the 30 th day of June

, 2011

Atkinson & Mullen Travel II, LLC; AVW II, LLC; AMCAL Vacations II, LLC; a nd ABV, LLC d / b / a Apple Vacations OST

- 2011

- 0 0 03

Served June 30, 2011

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

C ONSENT O RDER

This consent order concerns violations by Atkinson & Mullen Travel II, LLC; AVW II, LLC; AMCAL Vacatio ns II, LLC; and ABV, LLC d/b/a Apple Vacations ( collectively

referred to as “ Apple Vacations ” )

, online ticket agent s
, 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 also separately directs Atkinson & Mullen Travel II, LLC; AVW II, LLC; AMCAL Vacations II, LLC; and ABV, LLC in their individual capacities to
cease and desist from future violations of Part 257 and section 41712 and jointly and

sever ally assesses them a $ 5 0 ,000 civil penalt y

.

S ection 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 pr actice 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 Apple Vacations with se ction 257.5. During at least the latter half of 2010

, Apple Vacations failed to properly disclose the

existence of code

- sharing arrangements when advertising code

- share flights operated on behalf of a major air carrier by a regional air carrier on its Int ernet website

. Specifically, it2

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. Apple Vacations ’

failure to properly disclose the ex istence of code

- sharing arrangements and the names of the transporting carriers could have deceived consumers regarding the identity of the airline that

was actually to operate the aircraft on which the consumer would be flying.

In mitigation, Apple Vacat ions states that the flight listings on its website that did not

disclose code

- share flights were due to a failure by its Global Distribution System (“GDS”) provider to properly identify flights that involved code

- share segments. Apple Vacations

states th at once it received notice of the code

- share disclosure requirements, it promptly deleted from its website any code

- share flights and it subsequently promptly brought its website into compliance with those requirements as specified in 49 U.S.C. §41712 and 14 CFR Part 257. Apple Vacations further states that during the relevant 12 month period, it received no passenger complaints regarding any failure to disclose the

existence of code

- sharing arrangements and that the vast majority of passengers booking travel through Apple Vacations involve: (i) international travel as opposed to domestic U.S. travel; and (ii) air transportation which does not involve any connecting code

- share flights. Lastly, Apple Vacations states that it will cont inue to monitor its website to ensure that it discloses any code

- share flights properly according to the information it receives from its GDS provider and/or the airlines.

We view seriously the failure of Apple Vacations to disclose code

- sharing arrangeme nts 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, Atkinson & Mu llen Travel II, LLC; AVW II, LLC; AMCAL Vacations II, LLC; and AB V, LLC, in their individual capacities, agree to
the issuance of this order to cease and desist from future similar violations of Part 257 and
49 U.S.C. § 41 712 and to the joint and several a ssessment of $ 5 0 ,000 in compromise of potential civil penalties otherwise assessable against them . 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 pr ovides 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,3

1. Based on the ab ove discussion, we approve thi s settlement and the provisions of this order as being in the public interest;

2

. We find that Atkinson & Mullen Travel II, LLC; AVW II, LLC; AMCAL Vacations II, LLC; and ABV, LLC d/b/a Apple Vacations violated 14 CFR 257.5 (d ) by failing to

disclose code

- shar ing arrangements as required;

3

. We find that by engaging in the conduct and violations described in ordering paragraph 2 above, Atkinson & Mullen Travel II, LLC; AVW II, LLC; AMCAL Vacations II, LLC; and ABV, LLC d/b/a Apple Vacations engaged in an unfair and d eceptive practice and unfair method of competition in violation of 49 U.S.C. § 41712;

4

. We order Atkinson & Mullen Travel II, LLC; AVW II, LLC; AMCAL Vacations II, LLC; and ABV, LLC d/b/a Apple Vacations and all other entities owned or controlled by or under common ownership with Atkinson & Mullen Travel II, LLC; AVW II, LLC; AMCAL Vacations II, LLC; and ABV, LLC d/b/a Apple Vacations 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 jointly and severally assess Atkinson & Mullen Travel II, LLC; AVW II, LLC; AMCAL Vacations II, LLC; and ABV, LLC d/b/a Apple Vacations $ 5 0 ,000 in civil penalt ies in compromise of civil penalties that might otherwise be assessed for the violations found in ordering paragraphs 2 and 3 above . Of this total penalty amount, $25,000 shall be due and payable within 30 days of the date of issuance of this order. The remaining portion

of the c ivil penalty amount, $25,000, shall become due and payable if, within one year of the
date of issuance of this order, Atkinson & Mullen Travel II, LLC; AVW II, LLC; AMCAL Vacations II, LLC; and ABV, LLC d/b/a Apple Vacations violates this order’s cease and desist provisions or fails to comply with this order’s payment provisions, in which case, Atkinson & Mullen Travel II, LLC; AVW II, LLC; AMCAL Vacations II, LLC; and ABV, LLC d/b/a Apple Vacations may become subject to additional action for violation of t he order; and

6

. P ayment 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 . F ailure to pay the penalty as ordered will subject Atkinson & Mullen Travel II, LLC; AVW II, LLC; AMCAL Vacations II, LLC; and ABV, LLC d/b/a Apple Vacations 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:4

ROSALIND A. KNAPP Deputy General Counsel

(SEAL)

An electronic version of this document is available on the World Wide Web at www.regulations.gov