Order: 2010

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UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation

On the Twenty

- Second day of June , 2010

Cayman Airways Limited Docket OST

- 2010

- 0005

Served: June 22, 2010 Violations of 49 U.S.C. § 41705

and 14 CFR Part 382

C ONSENT O RDER

This order concerns violations by Cayman Airways Limited (Cayman Airways) of the requirements of 14 CFR Part 382 (Part 382), with respect to filing annual reports detailing disability

- related complaints that the foreign air carrier received from passengers in calendar year 2009, and violations of a previous consent cease and desist order against Cayman Airways regarding reporting of disability

- related complaints. 1 Part 382 implements the Air Carrier Access Act (ACAA), 49 U.S.C. § 41705, and violations of that part also violate the ACAA. This order directs Cayman Airways to cease and desist from future similar violations of Part 382 and the ACAA and assesses the carrier $ 5 0,000 in civi l penalties.

Under section 382.157 [formerly section 382.70 2 ], covered foreign carriers (i.e. foreign air carriers operating passenger service to and from the United States with at least one aircraft having a design capacity of more than 60 passenger seat s) must, among other things, submit an annual report to the U.S. Department of Transportation (Department) summarizing the disability

related complaints that they received the prior calendar year. 3

1 Cayman Airways committed similar violations in 2004, 2005, and 2006, that resulted in the issuance of a consent order directing Cayman Airways to cease and desist from further violations of section 382.70 (now s ection 382.157).

See Cayman Airways, Violations of 49 U.S.C. §41705 and 14 CFR Part 382, Order 2007

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- 19 (October 16, 2007). Foreign air carriers are required to

submit information o nly with respect to disability

- related complaints associated with any flight segment originating or terminating in the United States. The annual report to the Department is

2 O n May 13, 2009, 14 CFR 382.70 changed to 14 CFR 382.157; however, its substance , as is pertinent here,

remains the same

. 3 In addition, the rule requires a carrier to record complaints that it receives alleging discrimination or inadequate accessibility on the basis of a disability. The complaints are to be categorized according to the passenger’s type of disability and n ature of complaint. The rule also requires that covered carriers retain a copy of each disability

related complaint that the carrier receives and a record of the action taken on the complaint for three years.2

due each year on the last Monday in January. The annual report covering calendar year 2009 was due to the Department on January 25, 2010.

To comply with 49 U.S.C. § 41705 which requires, among other things, that the Secretary of Transportation “regularly review all complaints received by air carriers alleging discrimination

on the b asis of disability . . . and report annually to Congress on the results of such review,” and to ensure that consumers can compare the overall disability complaints filed against particular carriers, the Office of the Assistant General Counsel for Aviation Enforcement and Proceedings (Enforcement Office) is committed to ensuring carriers file disability

- related reports as required. To this end, the Enforcement Office has made efforts to ensure compliance with section 382.157, including providing carriers an d carrier associations information about the disability reporting requirements and posting a copy of the disability reporting rule on its Aviation Consumer

Protection Division’s website.

Cayman Airways, based in the Cayman Islands, operates scheduled ser vice to and from the United States with an average of five daily flights utilizing five Boeing 737

- 300 aircraft. The carrier offers service to a number of U.S. cities, including Miami and New York. According to the Department’s records, the carrier did n ot submit an annual report for calendar year 2009 until April 19, 2010

, despite repeated i nquiries from the Aviation Consumer Protection Division. Therefore, Cayman Airways violated section 382.157 and the ACAA when it did not submit reports in a timely m anner that detailed the disability

- related complaints that it received in calendar years 2009 regarding flights originating or terminating in the United States . In mitigation, Cayman Airways notes that it did not have any disability related complaints in 2009.

We view seriously Cayman Airways ’ continued failure to submit the reports on ti me as required by section 382.157 . Accordingly, after carefully considering all the facts in this case, including those set forth above, the Enforcement Office believes that enforcement action is warranted. By this order, the Department finds that Cayman Airways failed to timely submit reports detailing the disability

- related complaints that it received in calendar year 2009 in violation of Order

2007

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, 14 CFR Part 382 and 49 U.S.C. § 41705.

In order to avoid litigation, Cayman Airways has agreed to settle these matters with the Enforcement Office and enter into this consent order directing Cayman Airways to cease and

desist from future similar violations of Part 382 and 49 U.S.C. § 41705, and assessing $ 5 0,000 in compromise of potential civil penalties otherwise due and payable. We believe that this assessment is appropriate and serves the public interest. It represents an adequate deterrence to future noncompli ance with the Department's reporting requirements by Cayman Airways, as well as by other domestic and foreign air carriers.

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

ACCORDINGLY,

1. Based on the above discussi on, we approve this settlement and the provisions of this order as being in the public interest;3

2. We find that Cayman Airways Limited violated 14 CFR 382.157 by failing to submit a timely a nnual report for calendar year 2009 to the Department of Transpo rtation summarizing the disability

- related complaints that it received in 2009;

3. We find that by engaging in the conduct and violations described in ordering paragraph 2 above, Cayman Airways Limited violated 49 U.S.C. § 41705;

4. We find that by eng aging in the conduct described in paragraphs 2 and 3 above, Cayman Airways Limited violated Department Order 2007

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. Cayman Airways Limited and all other entities owned or controlled by Cayman Airways

Limited its successors and assignees are ordere d to cease and desist from fur ther violations of 14

CFR 382.157 and 49 U.S.C. § 41705;

6. Cayman Airways Limited is assessed $ 5 0,000 in compromise of civil penalties that might

otherwise be assessed for the violations fou nd in ordering paragraphs 2, 3 , a nd 4, above

. Of this total penalty amount, $30,000 shall be due and payable within 15 days from the date of issuance of this order. The remaining $20,000 shall become due and payable if Cayman Airways Limited violates this order’s cease and desist or pay ment provisions within one year following the date of issuance of this order, in which case the entire unpaid portion of the civil penalty shall become due and payable immediately, and Cayman Airways Limited may be subject to additional

enforcement action for failure to comply with this order. Failure to pay the penalty as ordered shall also subject Cayman Airways Limited to the assessment of interest, penalty, and collection charges under the Debt Collection Act; and

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. Payment shall be made by wire tran sfer through the Federal Reserve Communications System, commonly known as "Fed Wire," to the account of the U. S. Treasury in accordance with

the attached instructions

This order will become a final order of the Department 10 days after its service date un less 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 on the World Wide Web at www.regulations.gov