UNITED STATES OF AMERICA 

DEPARTMENT OF TRANSPORTATION 

OFFICE OF THE SECRETARY 

WASHINGTON, D.C. 

Issued by the Department of Transportation 

on the 3rd day of April, 2013 

Friendship Airways, Inc. 

d/b/a Yell ow Air Taxi, and 

Christopher Behnam, Individually 

Violations of 14 CFR Part 374 and 49 U.S.C. 

§§ 41101 and 41712 

Served April3, 2013 

DOT -OST -2013-0066 

NOTICE OF ENFORCEMENT PROCEEDING AND 

PROPOSED ASSESSMENT OF CIVIL PENALTIES 

The attached complaint of the Office of Aviation Enforcement and Proceedings (Enforcement 

Office) alleges that Friendship Airways, Inc., d/b/a Yellow Air Taxi (Yellow Air Taxi), and 

Christopher Behnam, president and owner of Yellow Air Taxi, violated 14 CFR Part 374 by failing 

to process credit card refunds within the required period oftime and 49 U.S.C. § 41101 by selling 

tickets when it did not hold effective Departmental economic authority. In addition, the violations 

of 14 CFR Part 374 and 49 U.S.C. § 41101 also constitute violations of 49 U.S.C. § 41712, which 

prohibits unfair and deceptive practices. 

An air taxi operator registered with the Department under 14 CFR Part 298, Yellow Air Taxi held 

an air carrier certificate (03PA908H) issued by the Federal Aviation Administration (FAA) 

directing the carrier to follow the operating rules of 14 CFR Part 135. According to the FAA, 

Yell ow Air Taxi ceased operations on May 16, 2011, thereby rendering its air taxi registration 

ineffective. On August 15, 2011, Yell ow Air Taxi surrendered its air carrier certificate to the 

FAA. On October 18, 2011, the Department's U.S. Air Carrier Licensing Division canceled 

Yellow Air Taxi's air taxi registration pursuant to 14 CFR 298.24(a) on the basis that it ceased 

operations. 

Yellow Air Taxi, at the time of the violations at issue, was subject to the credit card refund 

requirements of Regulation Z of the Board of Governors of the Federal Reserve System, 15 U.S.C. 

§§ 1601-1693r. 12 CFR Part 226 and 14 CFR Part 374, which implement Regulation Z, establish 

that, with respect to refund requests involving airline tickets purchased with a credit card, a 

creditor-here Yellow Air Taxi-must transmit a credit statement for a passenger refund to the 
2 

credit card issuer within seven business days of receipt of full documentation for the refund 

requested. A failure to provide such refunds within the stipulated time period also constitutes an 

unfair and deceptive practice in violation of 49 U.S.C. § 41712.1 

As a result of numerous consumer complaints filed with the Department against Yellow Air Taxi 

between August 2010 and October 2011, the Enforcement Office conducted an investigation into 

whether Yellow Air Taxi was failing to provide prompt refunds, as required by Regulation Z and 

Depmiment precedent, or to provide refunds at all. The investigation confirmed that the carrier 

failed to process credit card refunds within seven business days in ten instances, some of which 

included purchases of multiple tickets, and processed the requests only after the Enforcement 

Office intervened.2 Additionally, the investigation confirmed that the carrier failed to process 

credit card refunds entirely in seventeen instances, some of which included purchases of multiple 

tickets, notwithstanding requests by the Enforcement Office that it do so. 3 Further, in at least one 

of the seventeen instances where the carrier failed to process credit refunds entirely, the refund was 

due on tickets that Yellow Air Taxi sold after it ceased operations.4 Engaging in air transportation 

without the proper economic authority is in violation of49 U.S.C. § 41101 and selling tickets with 

lapsed authority constitutes an unfair and deceptive practice in violation of 49 U.S.C. § 41712.5 

The carrier ceased responding to the Enforcement Office's inquiries in June 2011. 

Based on the informal investigation undertaken by the Enforcement Office, there are reasonable 

grounds to believe that Yell ow Air Taxi, under the direction and control of Christopher Behnam, 

has violated 14 CFR Part 374, 49 U.S.C. §§ 41101 and 41712 and that an investigation of the 

alleged violations is in the public interest. Accordingly, pursuant to Rule 407 ofthe Department's 

Rules of Practice, 14 CFR 302.407, by this notice and complaint we are instituting a formal 

enforcement proceeding to investigate the allegations set forth in the attached complaint. 

Upon information and belief, Yell ow Air Taxi is a "small business concern" as defined in section 3 

of the Small Business Act, 15 U.S.C. § 632. As such, under 49 U.S.C. § 46301 Yellow Air Taxi 

and Christopher Behnam, individually, may be assessed civil penalties of up to $2,500 for each 

violation of 49 U.S.C. §§ 41101 and 41712 or of consumer protection regulations adopted by the 

Department, including 14 CFR Part 374. Under section 46301, each day that a violation continues 

is considered a separate offense subject to a civil penalty of up to $2,500 per day. 

See Paragon Air, Inc., Violations of ..f9 US. C.§ 41712 and 14 CFR Part 374, Order 2009-7-17 (July 17, 

2009). 

The ten credit card purchases included 14 tickets in total. 

The seventeen credit card purchases included 35 tickets in total. Further, in six of the seventeen instances 

referenced above, passengers received a refund through their respective credit card companies after filing disputes to 

claim back the credit card purchase made with Yellow Air Taxi. 

4 This one purchase, made after the date Yellow Air Taxi ceased operations, included eight tickets. 

In addition to applicable Federal Aviation Administration requirements, in order to engage in air 

transportation as a direct or indirect air carrier, a citizen of the United States must hold economic authority from the 

Department, either in the form of a certificate of public convenience and necessity issued pursuant to 49 U.S.C. 

§ 41 I 0 I, or in the form of an exemption from the certificate requirement. 
3 

The Assistant General Counsel for Aviation Enforcement and Proceedings seeks an assessment of 

civil penalties in the enforcement proceeding instituted by this notice. Under Rule 407(d) of the 

Department's Rules of Practice, 14 CFR § 302.407(d), Yellow Air Taxi and Christopher Behnam, 

individually, are notified that they may be liable for civil penalties of $67,500, reflecting violations 

of 14 CFR Part 374 and 49 U.S.C. §§ 41101 and 41712. 

This is not the firsttime that Yell ow Air Taxi has demonstrated a poor compliance disposition. In 

2008, Yellow Air Taxi's authority to perform commuter operations was revoked by the FAA as a 

result of its then-Chief Pilot not being qualified to conduct Operating Experience observations of 

its pilots and not having the required training program in place. In 2010, Yell ow Air Taxi's 

liability insurance coverage was canceled because of nonpayment of premiums. Subsequent to the 

cancellation, the air canier continued to operate without the requisite liability insurance coverage, 

in violation of 14 CFR 205.3 and 14 CFR 298.37. The cancellation of Yellow Air Taxi's liability 

insurance rendered inefiective its Departmental economic authority. The Department took 

enforcement action against Yellow Air Taxi for violating 49 U.S.C. §§ 41101 and 41712 by 

engaging in air transportation without effective economic authority during the period after its 

liability insurance had lapsed. The Department also initiated an investigation in 201 0 of Yell ow 

Air Taxi's website advertising practices, concerning alleged violation of 14 CFR 399.84, the 

Department's full-fare advertising rules and the related statutory requirement, 49 U.S.C. § 41712, 

which prohibits unfair and deceptive practices and unfair methods of competition. 

Further, because of the continued and serious nature of the carrier's violations under Christopher 

Belmam's control, we are also seeking to prohibit Christopher Behnam personally for a period of 5 

years from holding a managerial position with or an ownership stake in any catTier, foreign air 

canier, or any other entity directly engaged or seeking to engage in air transportation. 

This notice and the attached complaint will be served on Yell ow Air Taxi and Christopher 

Behnam. Under Rule 408 of the Depatiment' s Rules of Practice, 14 CFR § 302.408, Yell ow Air 

Taxi and Christopher Behnam are required to file, within 15 days, an answer to the complaint 

admitting or denying specifl.cally and in detail each allegation of the complaint, and a response to 

the proposed assessment of civil penalties, specifically presenting any matters the respondent 

intends to rely on in opposition to or in mitigation of such civil penalties. 

SAMUEL PODBERESKY 

~~ ~- Assistant General Counsel for 

Aviation Enforcement and Proceedings 
4 

CERTIFICATE OF SERVICE 

I cetiify that on April3, 2013, the foregoing Notice of Enforcement Proceeding and Proposed 

Assessment of Civil Penalties and the related Complaint was served on the Respondent by firstclass mail and cetiified mail-return receipt requested addressed to the Respondent's address: 

2680 N.E. 24 Street, Pompano Beach, Florida 33064. 

By: 

SAMUEL PODBERESKY 

Assistant General Counsel for 

Aviation Enforcement and Proceedings 

,J !).~~ Lau~a Jen~1ings (ACVI./V'CJ... ~)Jfr---tjl U 

Semor Tnal Attorney / 

Office of Aviation Enforce'ment 

and Proceedings 

(202) 366-0966 
BEFORE THE 

DEPARTMENT OF TRANSPORTATION 

OFFICE OF HEARINGS 

Friendship Airways, Inc. 

d/b/a Yell ow Air Taxi, and 

WASHINGTON, D. C. 

Christopher Behnam, Individually 

Violations of 14 CFR Part 374 and 49 U.S.C. §§ 41101 

and 41712 

Enforcement Proceeding 

ENFORCEMENT COMPLAINT 

Served April 3, 2013 

DOT -OST 2013-0066 

1. During all times relevant in this complaint, Friendship Airways, Inc., d/b/a Yell ow Air 

Taxi (Yellow Air Taxi) was an air taxi operator as defined by 14 CFR Part 382 with its 

principal place of business at 2680 N.E. 24 Street, Pompano Beach, Florida 33064. 

2. Yell ow Air Taxi operated under the direction and control of Christopher Behnam, the 

president and owner of Yellow Air Taxi. 

3. In order to engage in air transportation as a direct or indirect air carrier, Yellow Air Taxi 

was required to hold economic authority at all times from the Department, either in the 

form of a certificate of public convenience and necessity issued pursuant to 49 U.S.C. 

§ 411 01, or in the fmm of an exemption from the certificate requirement, such as the 

classifl.cation of air taxi operators in 14 CFR Part 3 82. 

4. According to the Federal Aviation Administration (FAA), Yellow Air Taxi ceased 

operations on May 16, 2011, rendering its air taxi registration ineffective. 

5. On August 15,2011, Yellow Air Taxi surrendered its air carrier certiflcate to the FAA. 

6. On October 18,2011, the Department ofTransportation (Department) canceled Yellow 

Air Taxi's air taxi registration because it ceased operations. 

7. As an air carrier, Yellow Air Taxi was subject to the credit refund requirements of 

Regulation Z ofthe Board of Governors of the Federal Reserve System, 15 U.S.C. 

§§ 1601-1693r. 
2 

8. 12 CFR Part 226 and 14 CFR Part 374, which implement Regulation Z, establish that, 

with respect to refund requests involving airline tickets purchased with a credit card, a 

creditor-here Yellow Air Taxi-must transmit a credit statement for a passenger refund 

to the credit card issuer within seven business days of receipt of full documentation for 

the refund requested. 

9. 49 U.S.C. § 41712 confers on the Department authority to prohibit unfair and deceptive 

trade practices and unfair methods of competition. 

10. Between August 2010 and August 2011, Yellow Air Taxi failed in ten instances, some of 

-which included purchases of multiple tickets, to process credit refund requests within 

seven business days of receipt of full documentation for the refund requested. 

11. Between August 2010 and October 2011, Yell ow Air Taxi failed entirely in seventeen 

instances, some of which included purchases of multiple tickets, to process credit refund 

requests upon receipt of full documentation for the refund requested. 

12. In at least one instance referred to in paragraph 11, above, the refund was due on tickets 

that Yellow Air Taxi sold to passengers after May 16,2011, the date it ceased operations. 

13. Yellow Air Taxi's failure to process credit refunds entirely or within the period required 

by Regulation Z constitutes a violations of 14 CFR Part 3 7 4 and is an unfair and 

deceptive practice in violation of49 U.S.C. § 41712. 

14. Yell ow Air Taxi's sale, after the date it ceased operations, of tickets to passengers 

without the proper economic authority is in violation of 49 U.S.C. § 41101 and 

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

15. Upon information and belief~ Yell ow Air Taxi is a "small business concern" as defined in 

section 3 of the Small Business Act, 15 U.S.C. § 632. As such, under 49 U.S.C. § 46301, 

the Department may assess Yell ow Air Taxi and its principals civil penalties of up to 

$2,500 for each violation of the Department's regulations or Title 49. Each day such 

violation continues is a separate violation. 

16. Under 49 U.S.C. § 41712, the Department may, upon finding that a carrier is engaged in 

an unfair or deceptive trade practice or unfair method of competition, issue an order 

directing the violator to cease and desist from such conduct. 

17. Under 49 U.S.C. § 46101(a)(4), the Department may issue an order compelling 

compliance with provisions of Part A, Subtitle VII of Title 49 U.S.C. and requirements 

prescribed under that Part, including 14 CFR Part 374 and 49 U.S.C. §§ 41101 and 

41712. 
WHEREFORE, the OHice of Aviation Enforcement and Proceedings requests the Department of 

Transportation to: 

A. Find that Yell ow Air Taxi, previously an air carrier, and Christopher Behnam, 

individually, have violated 14 CFR Part 374 by failing to process credit refund requests 

within the period required by Regulation Z of the Board of Governors of the Federal 

Reserve System, 15 U.S.C. §§ 1601-1693r and 12 CFR Part 226; 

B. Find that Yellow Air Taxi and Christopher Behnam, by engaging in the conduct 

described in paragraph A, above, and by selling tickets after the date Yellow Air Taxi 

ceased operations, have engaged in an unfair and deceptive trade practice and unfair 

method of competition thereby violating 49 U.S.C. § 41712; 

C. Find that Yellow Air Taxi and Christopher Behnam, by selling tickets after the date 

Yellow Air Taxi ceased operations, engaged in air transportation without the proper 

economic authority and thereby violated 49 U.S.C. § 41101. 

D. Order Yellow Air Taxi and Christopher Behnam, individually, and their respective 

successors and assigns, to cease and desist from violating 14 CFR Part 374 and 49 U.S.C. 

§§ 41101 and 41712 by engaging in the conduct described in paragraphs A, B, and C, 

above; 

E. Assess civil penalties against Yell ow Air Taxi and Christopher Behnam, jointly and 

severally, of $67,500 for the violations described in paragraphs A and B, above, and 

$2,500 for each similar violation revealed in the course of this investigation pursuant to 

49 U.S.C. § 46301; 

F. Order Christopher Behnam personally to cease and desist for a period of 5 years from 

holding a managerial position with or an ownership stake in any carrier, foreign air 

carrier, or any other entity directly engaged or seeking to engage in air transportation. 

G. Order that each y~ar up to and including 5 years from the date of this complaint, within 7 

days of the anniversary of this complaint, Christopher Behnam shall certify to the Office 

of Aviation Enforcement and Proceedings that he has complied with ordering paragraphs 

D and F, above, during the preceding year. The certification shall be in the form.of a 

written declaration sworn under penalty of perjury in accordance with 28 U.S.C. § 1746; 

and 
.. ' , 

4 

H. Grant such other relief as may be appropriate. 

~ Assistant General Counsel 

Aviation Enforcement and Proceedings 

'i"C/, ,/ ~L a~-- ·~~' ~ 

iaur:~enning/ Senior Attorney 

Oflice of Aviation Enforcement and 

Proceedings 

(202) 366-0966