Order 2012-8-26

 UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

On the Twenty-First day of August, 2012

EgyptAir Airlines Company

Docket OST 2012-0002

Served August 21, 2012

Violations of 14 CFR 399.85(b) and 259.5(b)(4)

and 49 U.S.C. § 41712

CONSENT ORDER

This order concerns violations by EgyptAir Airlines Company (EgyptAir) of 14 CFR 

399.85(b) and 259.5(b)(4), and the statutory prohibition against unfair and deceptive 

practices, 49 U.S.C. § 41712. It directs EgyptAir to cease and desist from future similar 

violations and assesses the carrier $60,000 in civil penalties.

Applicable Law

On April 25, 2011, the Department issued a set of rules designed to enhance protections 

for air travel consumers that, among other things, required airlines to comply with the 

Department’s baggage fee disclosure rule as written, which requires that the carrier 

clearly and prominently disclose on the first screen in which a fare quotation appeared 

that additional airline fees for baggage may apply.

1

 In addition, the rules require

“covered carriers,” which include a foreign air carrier operating to, from or within the 

United States using any aircraft with a design capacity of 30 or more passenger seats, to 

adopt a provision in its customer service plan permitting the holding of reservations

without payment, or the canceling of reservations without penalty, within a twenty-fourhour time period of making a reservation. 

 1 76 Fed. Reg. 23110 (April 25, 2011).
2

The Department delayed the effective date for certain requirements of the rules from 

August 23, 2011, to January 24, 2012, including the provisions pertaining to the 

disclosure of baggage fees, and the holding of a reservation without payment, or

cancellation without penalty, for twenty-four hours.2

I. Baggage Fee Disclosure 

The Department’s current baggage fee disclosure rule, 14 CFR 399.85(b), requires 

carriers to inform passengers on the first screen in which the carrier offers a fare 

quotation for a specific itinerary selected by a consumer that additional airline fees for 

baggage may apply and where consumers can go to see these baggage fees. This 

notification on the website must be clear, conspicuous and prominent. The rule reduces

consumer confusion over whether, and, if so, how much they will have to pay to check or 

carry-on bags. Violations of section 399.85(b) constitute unfair and deceptive practices 

in violation of section 41712. 

II. Customer Service Plan

Pursuant to 14 CFR 259.5(b)(4), a covered carrier is required to include a commitment in

its customer service plan that at a minimum it will allow reservations to be held at the 

quoted fare without payment, or cancelled without penalty, for at least twenty-four hours 

after the reservation is made if the reservation is made one week or more prior to a 

flight’s departure. This provision allows a consumer to make travel plans and shop for a 

fare that meets his or her needs, and addresses the carrier’s need for adequate time to sell 

seats on its flights. Violations of section 259.5(b)(4) constitute unfair and deceptive 

practices in violation of section 41712. 

Facts

As a foreign air carrier, EgyptAir is subject to the prohibition on engaging in unfair and 

deceptive practices set forth in 49 U.S.C. § 41712 and to the baggage fee disclosure

requirements of 14 CFR 399.85(b). EgyptAir failed to meet the requirements of section

399.85(b) by not disclosing on the first screen in which it offers a fare quotation for a 

specific itinerary selected by a consumer that additional airline fees for baggage may 

apply and where consumers can go to see these baggage fees. For a period of time after

January 24, 2012, in response to consumer searches using the main booking path on its 

website, EgyptAir displayed a fare matrix for outbound and inbound legs. Additionally, 

the following text appeared directly above the fare matrix, “Please refer to our baggage 

overview pages for more detailed information on EGYPTAIR’s baggage policy.” 

Although the sentence also included a link to EgyptAir’s baggage policy, it is unclear

from the text alone whether additional baggage fees may apply to the fares displayed. 

The notification that additional baggage fees may apply must be clear. 

As a covered carrier, EgyptAir is also required to adopt and follow a customer service 

plan applicable to its scheduled flights. For a period of time after January 24, 2012,

 2 76 Fed. Reg. 45184 (July 28, 2011).
3

EgyptAir failed to include a commitment in its customer service plan allowing 

reservations to be held at the quoted fare without payment, or canceled without penalty, 

for at least twenty-four hours after the reservation is made if the reservation is made one 

week or more prior to a flight’s departure. EgyptAir’s failure to include this commitment 

in the contents of its plan violated 14 CFR 259.5(b)(4) and 49 U.S.C. § 41712. 

Mitigation

In mitigation, EgyptAir states that it is committed to fully complying with all the 

Department’s regulations and that it in no way intended to mislead its customers. 

According to EgyptAir, the omissions from its website were completely inadvertent and 

have been corrected. Moreover, EgyptAir points out that it has cooperated fully with the 

Enforcement Office in an effort to correct the deficiencies in its website and to resolve 

this matter. In addition, EgyptAir states that as a result of the Enforcement Office's 

investigation, it has implemented internal measures that include regular audits to ensure 

that its website remains in compliance with all applicable existing and future regulations.

Decision

The Enforcement Office has carefully considered the information provided by EgyptAir, 

but continues to believe enforcement action is warranted. The Enforcement Office and 

EgyptAir have reached a settlement of this matter in order to avoid litigation. Without 

admitting or denying the violations described above, EgyptAir, consents to the issuance 

of this order to cease and desist from future violations of 14 CFR 399.85(b), 14 CFR 

259.5(b)(4), and 49 U.S.C. § 41712 and to the assessment of $60,000 in compromise of 

potential civil penalties otherwise due and payable pursuant to 49 U.S.C. § 46301.

The compromise assessment is appropriate considering the nature and extent of the 

violations described herein and serves the public interest. It establishes a strong deterrent 

to future similar unlawful practices by EgyptAir and other carriers.

This order is issued under the authority contained in 49 CFR Part 1.

ACCORDINGLY,

1. Based on the above information, we approve this settlement and the provisions of this 

order as being in the public interest;

2. We find that EgyptAir Airlines Company violated 14 CFR 399.85(b) by failing to 

inform passengers on the first screen in which the carrier offers a fare quotation for a 

specific itinerary selected by a consumer that additional airline fees for baggage may 

apply;

3. We find that EgyptAir Airlines Company violated 14 CFR 259.5(b)(4) by failing to 

include a provision in its customer service plan permitting the holding of reservations 

without payment, or the canceling of reservations without penalty, within a twentyfour hour time period after the reservation was made provided that it was made a 

week or more before departure;
4

4. We find that by engaging in the conduct described in ordering paragraphs 2 and 3, 

above, EgyptAir Airlines Company engaged in unfair and deceptive practices and 

unfair methods of competition in violation of 49 U.S.C. § 41712; 

5. We order EgyptAir Airlines Company, and all other entities owned or controlled by, 

or under common ownership and control with EgyptAir Airlines Company, its 

successors, affiliates, and assignees, to cease and desist from further violations of 14 

CFR 259.5(b)(4), 14 CFR 399.85(b), and 49 U.S.C. § 41712;

6. EgyptAir Airlines Company is assessed $60,000 in compromise of civil penalties that 

might otherwise by assessed for the violations described above. Of this total penalty 

amount, $30,000 shall be due and payable in three equal installments of $10,000 

each, with the first installment due and payable within 30 days of the issuance date of 

this order, the second installment due and payable within 60 days of the issuance date 

of this order, and the third installment due and payable within 90 days of the issuance 

date of this order. The remaining $30,000 shall become due and payable if, within 

one year of the issuance date of this order, EgyptAir Airlines Company violates the 

cease and desist provision in ordering paragraph 5, above, or fails to comply with the 

payment provisions in this ordering paragraph, in which case, the entire unpaid 

portion of the civil penalty shall become due and payable immediately; and 

7. We order EgyptAir Airlines Company to pay the penalty through Pay.gov to the 

account of the U.S. Treasury. Payments shall be made in accordance with the 

instructions contained in the Attachment to this order. Failure to pay the penalty as 

ordered shall subject EgyptAir Airlines Company to the assessment of interest, 

penalty, and collection charges under the Debt Collection Act and to further 

enforcement action for failing 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:

SAMUEL PODBERESKY

Assistant General Counsel for

 Aviation Enforcement and Proceedings

(SEAL)

An electronic version of this document is available at

www.regulations.gov