Order 2011-3-9

 

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

On the Third day of March, 2011

Aerovías de Intergración Regional, 

AIRES S.A. Docket OST 2011-0003

Violations of 49 U.S.C. § 41708 and 14 CFR 

Part 217 Served March 3, 2011

CONSENT ORDER

This consent order concerns reporting delinquencies by Aerovías de Intergración 

Regional, AIRES S.A., (AIRES) that constitute violations of 49 U.S.C. § 41708 and the 

Department’s foreign air carrier reporting requirements set forth in 14 CFR Part 217. 

This order directs AIRES to cease and desist from future violations and assesses the 

carrier a compromise civil penalty of $20,000.

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

Transportation to require air carriers and foreign air carriers to submit reports to the 

Department. Pursuant to section 41708, 14 CFR Part 217 designates the categories of 

statistical data to be collected from foreign air carriers and prescribes the manner in 

which these data are to be submitted to the Department. The Department uses the data 

for various important purposes, including analyzing the effects of air transportation 

industry policy initiatives, allocating airport development funds, forecasting traffic, and 

developing airport and airway traffic policy. A foreign air carrier’s failure to file its 

reports, therefore, 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 217.

AIRES is a Colombia-based air carrier that operates at least nine Boeing B-737 aircraft. 

In March 2009, AIRES received foreign air carrier exemption authority from the 

Department to operate charter flights to and from the United States, as well as scheduled 

flights between Colombia and certain points in the United States.1

 1 Order Granting Exemption and Show Cause, Order 2009-3-21 (March 25, 2009). 

 Subsequently, the 

 
2

Department awarded AIRES a foreign air carrier permit for charter and scheduled 

services.2

 Since March 2009, AIRES has operated a significant number of flights to or 

from the U.S., including multiple daily scheduled flights, but failed to the file required 

Schedule T-100(f) reports with the Department’s Bureau of Transportation Statistics until 

November 2010. 

In mitigation, AIRES states that it takes its DOT obligations very seriously and has 

cooperated fully with the Department on this matter. AIRES explains that it was unaware 

that it was not in compliance with the Department’s Part 217 filing requirements because 

of an administrative oversight in connection with its newly initiated U.S. operations. 

AIRES further notes that once it became aware of the situation it took immediate steps to 

comply with the Department’s T-100 filing requirements and filed all past-due reports 

promptly. Since the Department’s notification, AIRES has filed all Part 217 reports on a 

timely basis. The filing lapse was AIRES’ first and only violation.

We view seriously the failure of AIRES to file traffic statistics reports as required by 

section 41708 and Part 217. The Enforcement Office has carefully considered all the 

circumstances surrounding this matter, and continues to believe that enforcement action 

is warranted. The Office of Aviation Enforcement and Proceedings (Enforcement Office)

and AIRES have reached a settlement of this matter in order to avoid litigation. AIRES, 

without admitting or denying any violation, consents to the issuance of an order to cease

and desist from future violations, and to the assessment of $20,000 in compromise of 

potential civil 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 an adequate 

deterrence to future noncompliance with the Department’s reporting requirements by 

AIRES as well as by other air carriers 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 discussion, we approve this settlement and the provisions of the 

order as being in the public interest;

2. We find that Aerovías de Intergración Regional, AIRES S.A., violated 49 U.S.C. 

§ 41708 and 14 CFR Part 217, as described above, by failing to file required monthly 

traffic data reports in a timely manner;

3. We order Aerovías de Intergración Regional, AIRES S.A., and all other entities 

owned and controlled by or under common ownership with Aerovías de Intergración 

 2 Final Order, Application of AEROVIAS DE INTEGRACION REGIONAL, AIRES S.A. for a Foreign Air 

Carrier Permit under 49 U.S.C. § 41301, Order 2009-6-14 (June 17, 2009).
3

Regional, AIRES S.A., and its successors and assignees, to cease and desist from further 

violations of 49 U.S.C. § 41708 and 14 CFR Part 217;

4. We assess Aerovías de Intergración Regional, AIRES S.A., a compromise civil 

penalty of $20,000 in lieu of civil penalties that might otherwise be assessed for the 

violation found in paragraphs 2 of this order. Of this total amount, $10,000 shall become 

due and payable in two equal installments of $5,000 each. The first installment of $5,000 

shall be due and payable within 30 days of the issuance date of this order, and the second 

installment of $5,000 shall be due and payable within 90 days of the issuance date of this 

order. The remaining $10,000 shall become due and payable if Aerovías de Intergración 

Regional, AIRES S.A., violates this order’s cease and desist provision or the payment 

provisions 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. 

Failure to pay the penalty as prescribed below shall subject Aerovías de Intergración 

Regional, AIRES S.A., to the assessment of interest, penalties, and collection charges 

under the Debt Collection Act and to possible enforcement action for failure to comply 

with this order; and 

5. Payments shall be made by wire transfer through the Federal Reserve 

Communications System, commonly known as "Fed Wire," to the account of the U.S. 

Treasury. The wire transfers shall be executed in accordance with the instructions 

contained in the Attachment to 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 

initiative.

BY:

ROSALIND A. KNAPP

Deputy General Counsel

(SEAL) 

An electronic version of this document is available

at www.regulations.gov