Order 2012-8-4

 

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

On the Second day of August, 2012

Santa Barbara Airlines

Docket OST 2012-0002

Served August 2, 2012

Violations of 14 CFR 399.85(b)

and 49 U.S.C. § 41712

CONSENT ORDER

This order concerns violations by Santa Barbara Airlines (Santa Barbara) of 14 CFR 

399.85(b) and the statutory prohibition against unfair and deceptive practices, 49 U.S.C. 

§ 41712. It directs Santa Barbara to cease and desist from future similar violations and 

assesses the carrier $80,000 in civil penalties.

Applicable Law

On April 25, 2011, the Department issued a set of rules designed to enhance protections 

for air travel consumers that, among other things, required airlines to clearly and 

prominently disclose on the first screen in which the carrier offers a fare quotation for a 

specific itinerary selected by a consumer that additional fees for baggage may apply and 

where consumers can view the applicable baggage fees. 14 CFR 399.85(b). This rule, 

which entered into effect on January 24, 2012, ensures that consumers are not deceived 

and are given accurate and complete information on which to base their travel purchase 

decisions. Violations of section 399.85(b) constitute unfair and deceptive practices and 

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

As a foreign air carrier, Santa Barbara is subject to the prohibition on engaging in unfair 

and deceptive practices set forth in 49 U.S.C. § 41712 and to the baggage fee disclosure 

requirements of 14 CFR 399.85(b). For a period of time beginning January 24, 2012, the 

effective date of this provision, Santa Barbara failed to meet the requirements of section

399.85(b) by failing to disclose on the first screen in which it offers a fare quotation for a 

specific itinerary that additional airline fees for baggage may apply and where consumers 

can see those fees. By violating section 399.85(b), Santa Barbara also violated 49 U.S.C. 

§ 41712. 

Mitigation

Santa Barbara states that it takes its obligations to comply with the Department’s rules 

very seriously. Santa Barbara further states that it strives to ensure its website is 

compliant with all Department regulations. Santa Barbara points out that its website is in 

Spanish because the vast majority of SBA's passengers speak and read only Spanish. 

Santa Barbara states that upon the regulations’ issuance it assessed what would be 

necessary to comply with the Department's Enhancing Airline Passenger Protections rule, 

conferred with its IT personnel, and went to great expense to implement the changes on 

the website. Santa Barbara further states it encountered difficulties due to the lack of 

infrastructure sophistication in Venezuela, e.g. frequent blackouts and power outages –

typically as many as 50 per day. The frequent and extensive daytime power outages 

substantially impeded Santa Barbara's efforts to timely make changes to its website. 

Although Santa Barbara's website may not have been technically fully compliant with the 

Department's regulation in that the required notice was not within the booking engine, the 

carrier states that a listing of its baggage policies and fees was, and continues to be, easily 

accessible from the homepage under "Volando Con SBA." Santa Barbara further states 

that there was no intent on the part of SBA to deceive or mislead customers and that there 

have been no consumer complaints regarding its baggage policies.

Decision

The Enforcement Office has carefully considered the information provided by Santa 

Barbara, but continues to believe enforcement action is warranted. The Enforcement 

Office and Santa Barbara have reached a settlement of this matter in order to avoid 

litigation. Without admitting or denying the violations described above, Santa Barbara 

consents to the issuance of this order to cease and desist from future violations of 14 CFR 

399.85(b), and 49 U.S.C. § 41712 and to the assessment of $80,000 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 establishes a strong deterrent 

to future similar unlawful practices by Santa Barbara Airlines and other carriers.
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This order is issued under the authority contained in 49 CFR 1.57a and 14 CFR 385.15.

ACCORDINGLY,

1. Based on the above information, we approve this settlement and the provisions of this 

order as being in the public interest;

2. We find that Santa Barbara Airlines violated 14 CFR 399.85(b) by failing to clearly 

and prominently disclose on the first screen in which the carrier offers a fare 

quotation for a specific itinerary selected by a consumer that additional airline fees 

for baggage may apply and where consumers can view the applicable fees; 

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

Santa Barbara Airlines engaged in unfair and deceptive practices and unfair methods 

of competition in violation of 49 U.S.C. § 41712; 

4. We order Santa Barbara Airlines and all other entities owned or controlled by, or 

under common ownership and control with Santa Barbara Airlines, its successors, 

affiliates, and assignees, to cease and desist from further violations of 14 CFR 

399.85(b) and 49 U.S.C. § 41712;

5. Santa Barbara Airlines is assessed $80,000 in compromise of civil penalties that 

might otherwise by assessed for the violations described above. Of this total penalty 

amount, $40,000 shall be due and payable within ninety (90) days of the date of 

issuance of this order. The remaining portion of the civil penalty amount, $40,000, 

shall become due and payable immediately if, within one year of the date of issuance 

of this order, Santa Barbara Airlines violates this order’s cease and desist provisions 

or fails to comply with this order’s payment provisions, in which case Santa Barbara 

Airlines may be subject to additional enforcement action for violation of this order;

and

6. We order Santa Barbara Airlines to pay the penalty through Pay.gov to the account of 

the U.S. Treasury. Payment shall be made in accordance with the instructions 

contained in the Attachment to this order. Failure to pay the compromise penalty 

assessment as ordered will subject Santa Barbara Airlines to an 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 

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