Order 2012-1-22

 UNITED STATES OF AMERICA

 DEPARTMENT OF TRANSPORTATION

 OFFICE OF THE SECRETARY

 WASHINGTON, D.C.

Issued by the Department of Transportation

On the Twenty-Seventh day of January, 2012

Aviation Services, Ltd., d/b/a 

Freedom Air

Docket OST 2012-0002

Violations of 49 U.S.C. § 41712

Served January 27, 2012

CONSENT ORDER

This consent order concerns Internet sales activities by Aviation Services, Ltd., d/b/a 

Freedom Air (Freedom Air) that violated 49 U.S.C. § 41712 because they resulted in 

double payments by consumers of government taxes and fees. It directs Freedom Air to 

cease and desist from further violations of this statute and assesses the carrier a

compromise civil penalty of $20,000.

Applicable Law

As an air carrier, Freedom Air is subject to the statutory prohibition against unfair and 

deceptive practices and unfair methods of competition found at 49 U.S.C. § 41712. 

Advertising full fares to customers and then collecting additional charges at the point of 

payment constitutes a prohibited unfair and deceptive practice.

Facts and Conclusion

For a period of time during 2011, Freedom Air employed a search engine on its website 

that returned air fare quotes that included all taxes and fees. Upon selecting a fare, 

consumers were taken to a second landing page that informed them of the applicability 

of additional taxes and/or fees, specifically passenger facility charges (PFC). As a 

result, customers using Freedom Air’s search engine to purchase air travel were doublecharged for the same PFC. By twice charging customers for a single PFC, Freedom Air 

committed an unfair and deceptive practice in violation of 49 U.S.C. § 41712.
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Mitigation

By way of mitigation, Freedom Air states that only those customers who booked tickets

through the Freedom Air website, a very small minority of Freedom Air’s customers,

were overcharged. In addition, Freedom Air states that it issued refunds of the 

overcharges to all of the affected customers promptly upon receiving notice from the 

Department. 

Decision

The Department views compliance with the Federal aviation statutes and regulations 

very seriously. The Office of Aviation Enforcement and Proceedings (Enforcement 

Office) has carefully considered the information provided by Freedom Air, but continues 

to believe that enforcement action is warranted. The Enforcement Office and Freedom 

Air have reached a settlement of this matter in order to avoid litigation. Freedom Air 

consents to the issuance of an order to cease and desist from future violations of 49 

U.S.C. § 41712, and to the assessment of $20,000 in compromise of potential 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 Freedom Air and other sellers of air transportation.

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 this order as being in the public interest;

2. We find that Aviation Services, Ltd., d/b/a Freedom Air engaged in an unfair 

and deceptive practice in violation of 49 U.S.C. § 41712;

3. We order Aviation Services, Ltd., d/b/a Freedom Air and all other entities 

owned or controlled by, or under common ownership and control with Aviation 

Services, Ltd., d/b/a Freedom Air, and its successors, affiliates, and assignees, 

to cease and desist from future violations of 14 U.S.C. § 41712. Failure to 

comply with this cease and desist provision shall subject Aviation Services, 

Ltd., d/b/a Freedom Air, and its successors, affiliates, and assignees to further 

enforcement action;

4. We assess Aviation Services, Ltd., d/b/a Freedom Air $20,000 in lieu of civil 

penalties that might otherwise be assessed for the violations described in 

ordering paragraph 2, above. Of this total penalty amount, $5,000 shall be due 

and payable within thirty (30) days of the date of the issuance of this order, and 

$5,000 shall be due and payable within ninety (90) days of the date of the 
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issuance of this order. The remaining portion of the civil penalty amount, 

$10,000, shall become due and payable if, within one year of the date of 

issuance of this order, Aviation Services, Ltd., d/b/a Freedom Air, violates this 

order’s cease and desist provisions or fails to comply with this order’s payment 

provisions, in which case Aviation Services, Ltd., d/b/a Freedom Air may 

become subject to additional enforcement action for violation of the order; and

5. We order Aviation Services, Ltd., d/b/a Freedom Air to remit the payment 

assessed in paragraph 4 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 

Aviation Services, Ltd., d/b/a Freedom Air to an 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 ten days after its service date 

unless a timely petition for review is filed or the Department takes review on its own 

initiative.

BY:

ROSALIND A. KNAPP

Deputy General Counsel

(SEAL)

An electronic version of this document is available

at www.regulations.gov