Order 2011-8-14

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION 

OFFICE OF THE SECRETARY 

WASHINGTON, D.C.

Issued by the Department of Transportation

On the Tenth day of August, 2011

Swift Air, LLC

Docket OST 2011-0003

Violations of 49 U.S.C. § 41712 and 

14 CFR Part 380 Served August 10, 2011

CONSENT ORDER

This consent order concerns violations of certain consumer protection provisions of the 

Department of Transportation’s (Department) Public Charter regulations, 14 CFR 380.43, 

by Swift Air, LLC, (Swift Air) a direct air carrier, stemming from its voluntary 

cancellation of a public charter flight less than 10 days before the scheduled departure date 

without demonstrating circumstances that rendered it physically impossible for Swift Air 

to conduct the operation. These violations also constituted unfair and deceptive trade 

practices and unfair methods of competition in violation of 49 U.S.C. § 41712. This order 

directs Swift Air to cease and desist from future similar violations and assesses a 

compromise civil penalty of $100,000.

Direct air carriers operating public charter flights must comply with the applicable 

requirements of 14 CFR Part 380, which are designed to prevent economic harm to charter 

passengers. Under section 380.43, a direct air carrier operating public charter flights is 

prohibited from cancelling a charter fewer than 10 days before the scheduled departure 

date, except under circumstances that make it physically impossible to perform the charter 

trip. Violations of section 380.43 also constitute unfair and deceptive trade practices and 

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

Since 2006, Swift Air has had a certificate of public convenience and necessity from the 

Department and an air carrier certificate from the Federal Aviation Administration (FAA) 

authorizing it to perform supplemental operations pursuant to 14 CFR Part 121. In March 

2011, the Department accepted a public charter prospectus (PC-11-066) filed by Air Plus, 

GM LLC, (Air Plus) which provided for Air Plus to operate, as an indirect air carrier, a 

series of public charter flights between Chicago and Belgrade, Serbia, and Zagreb, Croatia. 

The flights were scheduled to operate three times a week between June and September 

 
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2011 with the inaugural flight scheduled to depart Chicago’s Rockford International 

Airport on June 17, 2011. The prospectus listed Swift Air as the direct air carrier. 

On June 17, 2011, minutes before take-off, Swift Air notified Air Plus that it had cancelled 

the inaugural charter flight due to significant unresolved FAA compliance concerns of 

which it had been aware for nearly a month. Air Plus subsequently took action to cancel 

all remaining flights contained in PC-11-066.

The FAA’s compliance concerns stemmed from alleged deficiencies in Swift Air’s pilot 

training manual and the qualifications of its crewmembers to conduct Part 121 operations. 

Based on the Enforcement Office’s investigation of this matter, the FAA’s concerns were, 

at the time they were initially raised with Swift Air, of sufficient gravity that it was 

reasonably foreseeable that the suspension of Swift Air’s operating authority could result. 

It was, therefore, incumbent upon the carrier to take prompt action to avoid significant 

harm to the passengers that might arise due to a last-minute cancellation in the event these 

problems could not be resolved. Rather, Swift Air chose to proceed without taking such 

action. Swift Air’s last minute cancellation of the PC-11-066 flight on June 17, 2011, 

caused consumers who had purchased tickets for this flight and the subsequent flights 

significant inconvenience when they were left without readily available and acceptable 

travel alternatives. 

In mitigation Swift Air states that it has and continues to work closely with the FAA on 

safety issues and believes that safety is the most important obligation it has to its 

customers. According to Swift Air, it also takes very seriously any concerns raised by the 

FAA as to any of its operations and, during the time involved, it met with the FAA and 

worked through each issue raised as a concern by its FAA Certificate Management Office. 

Swift Air states that, up until moments before the flight, it did not believe the issues raised 

by the FAA would necessitate cancellation of the flight in question, and it felt that the 

information it had received from the FAA supported that view. Because of the FAA’s 

concerns, Swift Air points out that it took the only step it could in light of the issues raised,

and it cancelled the flight. Swift Air deeply regrets the inconvenience to the charter 

customers, but it maintains that given the timing of the FAA’s expressed concerns, it had 

no alternative but to cancel the flight. Swift Air states that no alternative arrangements 

could be made to accommodate the plane load of passengers given the extremely short 

time frame involved, but Swift Air assisted affected passengers on an individual basis by 

providing hotel rooms, meals and alternate transportation and, for those who chose not to 

travel, a refund of all their payments.

The Enforcement Office has carefully considered all of the information available to it, 

including that provided by Swift Air, but continues to believe that enforcement action is 

warranted. In order to avoid litigation, the Enforcement Office and Swift Air have reached 

a settlement of this matter. Without admitting or denying the violations described above, 

Swift Air agrees to the issuance of this order to cease and desist from future violations of 

14 CFR Part 380 and 49 U.S.C. § 41712, and to the assessment of $100,000 in 

compromise of potential civil penalties otherwise assessable against it. This compromise 

assessment is appropriate in view of the nature and extent of the violations in question, 
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serves the public interest, and establishes a deterrent to future similar unlawful practices by 

Swift Air and other direct air carriers operating public charter flights.

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 the 

order as being in the public interest.

2. We find that Swift Air, LLC, violated 14 CFR 380.43, as described above, by 

cancelling a public charter flight it contracted to operate less than 10 days before the 

scheduled departure date. 

3. We find that by engaging in the conduct described in paragraph 2 above, Swift Air, 

LLC, engaged in an unfair and deceptive practice and an unfair method of competition in 

violation of 49 U.S.C. § 41712.

4. We order Swift Air, LLC, and all other entities owned and controlled by or under 

common ownership with Swift Air, LLC, and its successors and assignees, to cease and 

desist from further violations of 14 CFR Part 380 and 49 U.S.C. § 41712.

5. We assess a compromise civil penalty of $100,000 in lieu of civil penalties that might 

otherwise be assessed for the violations found in paragraphs 2 and 3 of this order. Of this 

total amount, $50,000 will become due and payable according to the following installment 

schedule: the initial installment of $10,000 shall be due 30 days after the issuance date of 

this order; the 4 remaining installments of $10,000 each shall be due, respectively, 60, 90, 

120, and 150 days after the issuance date of this order. The remaining $50,000 will 

become due and payable if Swift Air, LLC, violates the cease and desist provisions or the 

payment provisions of this order within one year following the date of the issuance of this 

order, in which case the entire unpaid portion of the civil penalty shall become due and 

payable immediately, and Swift Air, LLC, may be subject to additional enforcement action 

for failure to comply with this order.

6. Payments shall be made by wire transfers 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 Swift Air, LLC, 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.
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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 initiative.

BY:

ROSALIND A. KNAPP

Deputy General Counsel

(SEAL) 

An electronic version of this document is available at www.regulations.gov