Order 2013-12-16 

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 26th day of December, 2013

Virgin America Inc. Docket OST 2013-0004

Violations of 49 U.S.C. § 41708 and Served: December 26, 2013 

14 CFR Part 241

CONSENT ORDER

This consent order concerns reporting delinquencies by Virgin America Inc. (Virgin 

America) that constitute violations of 49 U.S.C. § 41708 and the accounting and 

reporting requirements specified in 14 CFR Part 241. This order directs Virgin America

to cease and desist from future violations, and assesses the carrier a compromise civil 

penalty of $60,000.

Applicable Law

Section 41708 of the United States Code, inter alia, authorizes the Secretary of 

Transportation to require air carriers to submit reports to the Department. Pursuant to 

section 41708, 14 CFR Part 241 designates various categories of statistical data to be 

collected and prescribes the manner in which these data are to be submitted to the 

Department. The Department uses carriers’ Part 241 reports to analyze the effects of air 

transportation industry policy initiatives, to allocate airport development funds, to 

forecast traffic, and to develop airport and airway traffic policy. A carrier’s failure to file 

its reports prevents the Department from making fully informed decisions. Failure to file 

reports when they are due constitutes a violation of both 49 U.S.C. § 41708 and 14 CFR 

Part 241. 

Facts

Virgin America is a certificated air carrier and is therefore subject to the reporting 

requirements of 49 U.S.C. § 41708 and 14 CFR Part 241. Virgin America failed to file in 

a timely manner a revised Form 41 for the fourth quarter of 2012, despite repeated 
2

requests from the Bureau of Transportation Statistics (BTS) and failed to submit in a 

timely manner a complete Form 41 for the first quarter of 2013.1

This is Virgin America’s second violation of the Department’s accounting and reporting 

requirements since 2008. By Order 2009-1-17, issued on January 30, 2009, Virgin 

America was found to have violated 49 U.S.C. § 41708 and 14 CFR Part 241 by failing to 

file in a timely manner certain quarterly financial reports with the Department for both 

the first and second calendar quarters of 2008. 

Mitigation

In mitigation, Virgin America states that it is committed to fulfilling its Part 241 

reporting obligations in accordance with the Department’s regulations and BTS 

reporting directives, and that is has cooperated fully with the Enforcement Office during 

the course of this investigation. Virgin America notes that the alleged reporting 

delinquencies did not involve a willful disregard of the submission deadlines imposed 

under Part 241, but resulted instead from the transition of staff in its accounting 

department, as well as formatting errors with respect to the underlying data contained in 

a handful of reports, which were rejected by BTS for technical reasons. With respect to 

such data formatting errors, Virgin America states that, following communications from 

BTS staff, it endeavored in good faith to promptly rectify those errors. Finally, Virgin 

America further states that it has taken a number of decisive, corrective measures to 

address the root cause of the alleged delinquencies identified by the Department.

Decision

The Office of Aviation Enforcement and Proceedings (Enforcement Office) has carefully 

considered the information provided by Virgin America, but continues to believe that 

enforcement action is warranted. The Enforcement Office and Virgin America have 

reached a settlement of this matter in order to avoid litigation. Virgin America, without 

admitting or denying the allegations described herein, consents to the issuance of this 

order to cease and desist from future violations of 49 U.S.C. § 41708 and 14 CFR Part 

241 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 provides a strong incentive 

for Virgin America and other air carriers to submit data to the Department in a timely and 

complete manner, as required.

This order is issued under the authority contained in 14 CFR Part 1.

 1

 After being contacted by the Enforcement Office, Virgin America submitted all past due reports and is 

currently up to date with respect to its reporting obligations.
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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 Virgin America Inc. violated 49 U.S.C. § 41708 and 14 CFR 

Part 241 by failing to file required reports in a timely manner, as described above; 

3. We order Virgin America Inc. its successors, its affiliates, and all other entities

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

America Inc. its successors, its affiliates, and its assigns to cease and desist from 

further violations of 49 U.S.C. § 41708 and 14 CFR Part 241;

4. We assess Virgin America Inc. $60,000 in compromise of civil penalties that 

might otherwise be assessed for the violations described in ordering paragraph 2, 

above. Of this total penalty amount, $30,000 shall be due and payable within 

thirty (30) days of the date of this issuance of this order. The remaining portion 

of the civil penalty amount, $30,000, shall become due and payable immediately 

if, within one year of the date of issuance of this order, Virgin America Inc.

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

payment provisions, in which case Virgin America Inc. may be subject to 

additional enforcement action for violation of this order; and

5. We order Virgin America Inc. to pay the penalty through Pay.gov 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 

Virgin America Inc. to the assessment of interest, penalty, and collection charges 

under the Debt Collection Act, and to possible additional 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

An electronic version of this document is available at

www.regulations.gov