Order 2013-7-15

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION 

OFFICE OF THE SECRETARY 

WASHINGTON, D.C.

Issued by the Department of Transportation

On the Eighteenth day of July, 2013

Errata Corrected Docket

PrimeSport, Inc. Docket OST 2013-0004

 

Violations of 49 U.S.C. §§ 41101 and 41712 

and 14 CFR Part 380 Served July 18, 2013

CONSENT ORDER

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

Department’s Public Charter regulations by PrimeSport, Inc. (PrimeSport). PrimeSport

failed to apply for and receive approval from the Department prior to advertising and 

selling Public Charter flights, in violation of 14 CFR Part 380. Advertising and selling

flights without an approved Public Charter prospectus constitutes engaging in air 

transportation as an indirect air carrier without Department authority in violation of 49

U.S.C. § 41101. These activities also constitute unfair and deceptive practices and unfair 

methods of competition in violation of 49 U.S.C. § 41712 and 14 CFR 380.27. This 

order directs PrimeSport to cease and desist from future violations and assesses a

compromise civil penalty of $60,000. 

Public Charter operators must comply with the requirements of 14 CFR Part 380, which 

is designed to protect charter passengers’ money and expectations. These requirements 

include a prohibition on advertising or selling charter flights unless there is in place an 

approved Public Charter prospectus demonstrating that certain consumer protections, 

including financial security measures required by Part 380, have been established, 14 

CFR 380.25(a).

PrimeSport is a Georgia-based corporation that provides tickets and tour packages to 

special events. Prior to applying for and receiving Public Charter authority from the 

Department, PrimeSport advertised roundtrip charter air transportation to the Pittsburgh 

Steelers-Minnesota Vikings NFL football game in London, which is scheduled to take 

place on September 30, 2013. PrimeSport advertised these air charter packages on its 

website, www.primesport.com. PrimeSport had not received Public Charter authority 

from the Department to hold out or conduct these flights prior to publishing these 

solicitations. Furthermore, PrimeSport sold air charter packages and received money from 

consumers prior to obtaining Public Charter authority. PrimeSport therefore violated 14 

CFR 380.25(a). PrimeSport, by holding out and selling Public Charter service before 
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filing and receiving Public Charter authority in violation of 14 CFR Part 380, also 

violated 49 U.S.C. § 41101, which prohibits a company or person from engaging in air 

transportation without proper economic authority. These violations also constitute an 

unfair and deceptive practice and unfair methods of competition in violation of 49 U.S.C. 

§ 41712 and 14 CFR 380.27.

In mitigation, PrimeSport asserts that, prior to selling and marketing any London Game 

travel packages, it entered into an agreement with the Pittsburgh Steelers that assigned 

PrimeSport as the Official Fan Travel partner of the Steelers for the London game. 

PrimeSport states that it was provided the opportunity to secure the number of game 

tickets they required as well as purchase 100 air seats on one of the official team charters.

According to PrimeSport, it created a detailed package description of all the inclusions 

and submitted this to the Steelers for approval. PrimeSport states that, after receiving the 

Steelers’ approval, it listed these packages for sale on its website, and the Steelers 

promoted the packages to their network of fans. PrimeSport states that all game tickets 

and air seats were pre-paid by PrimeSport to the Steelers and consumers were never at 

financial risk.

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

considered the information provided by PrimeSport, but continues to believe that 

enforcement action is warranted. In order to avoid litigation and without admitting or 

denying the alleged violations, PrimeSport agrees to the issuance of this order, which 

includes a compromise civil penalty assessment of $60,000. This order also directs 

PrimeSport to cease and desist from further violations of 14 CFR Part 380 and 49 U.S.C.

§§ 41101 and 41712. This compromise assessment is appropriate considering the nature 

and extent of the violations described herein and serves the public interest as a deterrent

to future violations by PrimeSport, as well as by other similarly situated companies and 

persons. 

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

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 PrimeSport, Inc., violated 14 CFR 380.25(a) by advertising Public 

Charter air transportation without having in place an approved Public Charter 

prospectus covering its Public Charter flights;

3. We find that by engaging in the conduct and violations described above, 

PrimeSport, Inc., violated 49 U.S.C. § 41101 by engaging in air transportation 

without proper economic authority;

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

PrimeSport, Inc., engaged in an unfair and deceptive practice and an unfair method 

of competition in violation of 49 U.S.C. § 41712 and 14 CFR 380.27;
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5. We order PrimeSport, Inc., and all other entities owned or controlled by or under 

the common ownership of PrimeSport, Inc., and its successors and assignees, to 

cease and desist from further violations of 49 U.S.C. §§ 41101 and 41712 and 14 

CFR Part 380; 

6. PrimeSport, Inc., is assessed $60,000 in compromise of civil penalties that might 

otherwise be assessed for the violations described in paragraphs 2 through 4, above. 

Of this total penalty amount, $30,000 shall be due and payable within 30 days from 

the date of 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, PrimeSport, Inc., violates this order’s cease and 

desist provisions or fails to comply with the order’s payment provisions, in which 

case PrimeSport, Inc., may be subject to additional enforcement action for violation 

of this order;

7. Failure to pay the compromise penalty as ordered shall subject PrimeSport, Inc., to 

the assessment of interest, penalty, and collection charges under the Debt Collection 

Act, and possible enforcement action for failure to comply with this order; and 

8. Payment shall be made through Pay.gov to the account of the U. S. Treasury 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 

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