2015

- 6

- 2

UNI TE D ST A TE S OF A M E RICA

D E P AR T M E NT OF T RAN S P OR T A T ION

OF F ICE O F T HE SE C R ET ARY

WA S HIN G T ON, D.C.

Iss u e d b y t h e D e p a r t m en t of T r a n s p o rt a t ion

on t h e 3 r d t h d ay of J u n e , 2015

C h a rte r Air T r a n s p o rt

, I n c

. Do c k e t O S T 2015

- 0002

Viola t io n s of 49 U. S .C. § 41708 a n d S er v e d J un e 3, 2015

14 CFR P a r t 298

CON SE NT ORD E R

This c ons e nt o r d e r c o n cer ns re po r ti n g d e linqu e n c i e s b y C h ar t e r Air T ra nspo r t, I n c

. ( C AT) th a t c onstitute v i ol a tions of 49 U. S

. C

. § 41708 a nd the a cc ounti n g a nd re p o r ting

re qui re m e nts sp e c i f i e d in 14 C F R P ar t 298. Th i s o r d e r di rec ts C AT to c ea se a nd d e sist

fr om f utu r e viol a tions, a n d a ss e ss e s the c arr i e r a c omp r omise c ivil p e n a l t y of $30,000.

A pp li c a b le L a w

S ec tion 41708 of the Unit e d S t a t e s C od e

, i n t e r alia

, a utho r i z e s the S ecre t a r y of

T ra nspo r t a tion to re qui r e a ir c a rr i e r s to submit re po r ts to the D e p ar tm e n t. P u r su a nt to

s ec tion 41708, 14 C F R P ar t 298 d e s i g n a t e s v a r ious ca t e g o r i e s of st a tisti ca l d a t a to b e

c oll ec t e d a nd p r e s cr i b e s the m a nn e r in whi c h t h e se d a ta a r e to be su b mitt e d to t h e

D e p ar tm e nt. T h e D e p ar t m e nt us e s ca r r i er s’ Pa r t 298 re po r ts to a n a l y z e t h e ef f

ec ts of a ir

t ra nspo r t a tion indust r y poli c y initi a tiv e s, to a l lo ca te a i rp o r t d e v e lop m e nt f unds, to

f

o re c a st t r a ff i c

, a nd to d e v e lop a i rpo r t a nd a i r w a y t raff ic poli c y

. A c arr i er ’ s fa ilu r e to f ile

its re po r ts p re v e nts the D e p ar tm e nt f r om m a ki n g f ul l y in f o r m e d d ec isions. Fa ilu r e to f ile

re po r ts wh e n th e y a r e d u e c onstitut e s a viol a tion of 49 U. S

. C

. § 41708 a n d 14 C F R P ar t

298.

F a c t s

C AT is a c ommut e r a ir c arr i e r a nd is th er e f o r e subj ec t to the re po r ti n g r e q ui re m e nts of 49

U. S

. C

. § 41708 a nd 14 C F R P ar t 298. C AT fa i l e d to f ile B TS F o r m 298

- C “ R e po r t of

F in a n c i a l D a t a ” a nd S c h e dule T

- 100 “ U. S

. Air C arr i e r T ra f f ic a nd C a p ac i t y D a ta b y

Nonstop S e g m e nt a nd O n

- F l i g ht M ar k e t” in a tim e l y m a n n er

.– 2

–

I n J u l y 2014, the O f f i c e of Avi a tion En f o rce m e nt a nd P r o cee di n g s ( En f o r ce m e nt O ff i c e )

c ont ac t e d the c arr i e r r e g a r ding its non

- c ompli a n c e with the D e p ar tm e nt ’ s re po r ting

re qui re m e nts. C AT p r o mpt l y f il e d a ll re qui re d re po r ts a nd is in c om p li a n c e with the

D e p ar tm e nt ’ s re po r ti n g r e qui re m e nts.

M i t iga t ion

I n mitig a tion, C AT st a t e s th a t a n y viol a tion of the D e p ar tm e nt ’ s r e po r ti n g re qui re m e nts

w a s in a dv er t e nt. C AT st a t e s th a t a t the p rec i s e time the a ll e g e d re p or ting viol a tions

b e g a n, C AT w a s r e lo ca t i ng its c o rpo r a te o ff i ce s f r om Ohio to F lo r id a

. C AT st a t e s th a t

the C AT e mpl o ye e re s ponsible f or f iling the qu ar t er l y a nd month l y re po r ts did not

re lo ca te with the c om p a n y a nd fa il e d to c oo r d in a te the c ontinu e d submission of the

re po r ts with the e mpl o ye e’ s su c c e ssor or a n y one e ls e

.

C AT st a t e s th a t its Di r ec tor o f F in a n c e h a s b e e n a ss i g n e d p r im a r y re s ponsibili t y f or

p re p ar i n g a nd submitting D e p ar tm e nt

- r e qui re d month l y a nd qu a r t er l y re po r ts. C AT

st a t e s th a t th r o u g h a c o n cer t e d e f f

o r t, the Di r e c tor of F in a n c e w a s a b l e to f ile a ll p a st

- d u e

re po r ts within two d a y s of c ont ac t fr om the En f o rce m e nt O ff i ce

. C AT st a t e s th a t the

Di rec tor o f F in a n c e is t r a ining multiple subo r din a t e s on this t a sk to a ssu r e t h a t the r e po r ts

ar e not ov e r look e d in the f utu re

.

D ec ision

The O ff i c e of Avi a tion E n f o rce m e nt a nd P r o c e e d i n g s ( E n f o r c e m e nt O ff i c e ) h a s c a ref ul l y

c onsid ere d t h e in f o r m a t i on p r ovid e d b y C AT, b u t c ontinu e s to b e li e ve th a t e n f o r ce m e nt

ac tion is w a rr a nt e d. The En f o r c e m e nt O ff i c e a nd C AT h a ve r e ac h e d a s e t tl e m e nt of this

m a tt e r in o r d e r to a v oid liti g a tion. W ithout a dmitting the viol a tions d e s cr ib e d a bov e

, C AT c ons e nts to the issu a n c e o f this o r d e r to c ea s e a nd d e sist fr om f utu r e viol a tions of 49

U. S

. C . § 41708 a nd 14 C F R § 298.60.

The c omp r omise a s s e ssm e nt is a pp r op r i a te c o nsid er ing the e x t e nt of the viol a tions

d e s cr ib e d h e r e in a nd s e r v e s the public int ere st. I t p r ovid e s a st r o n g in c e ntive f or C AT

a nd oth e r a ir carr i er s to submit d a ta to the D e p ar tm e nt in a t im e l y a nd c o mpl e te m a nn er

,

a s re qui re d.

This o r d e r is issu e d und e r the a utho r i t y c ont a in e d in 14 C F R P ar t 1.

ACCORDI N G L Y,

1. B a s e d on the a bove dis c ussion, we a pp r ove this s e ttl e m e nt a nd the p r ovisions of

this o r d e r a s b e i n g in the public int ere st;

2. W e f ind th a t C h ar t e r Air T ra nspo r t, I n c

. viol a t e d 49 U. S

. C

. § 41708 a nd 1 4 C FR

§ 298.60 b y fa iling to f ile r e qui re d re p o r ts in a tim e l y m a nn er

, a s d e s c r ib e d a bov e ;

a nd– 3

–

3. W e o r d e r C h ar t e r Air T r a nspo r t, I n c

. a nd a ll oth e r e ntiti e s ow n e d or c ont r oll e d b y

or und e r c ommon own er ship with C h ar t e r Air T ra nspo r t, I n c

. a n d th e ir

su cce sso r s a nd a ss i g ns to cea se a nd d e sist fr om f u r th e r viol a tions of 49 U. S

. C

. § 41708 a nd 14 C F R § 298.60.

4. W e a ss e ss C h ar t e r A i r T ra nspo r t, I n c

. a c omp r o mise c ivil p e n a l t y of $ 3 0,000 in

li e u of c ivil p e n a lti e s th a t mi g ht oth er wise be a ss e ss e d f or the viol a tions f ound in

o r d er i n g p a r a g r a ph 2, a b ov e . Of this tot a l p e n a l t y a mount, $3,000 sh a ll be due a nd

p a y a ble within 30 d a y s fr om the d a te of issu a n c e o f this o r d er ; $3,000 sh a ll be due

a nd p a y a ble within 60 d a y s f r om the d a te o f issu a n c e of this o r d e r ; $3,000 sh a ll be

due a nd p a y a ble within 90 d a y s fr om the d a t e of issu a n c e of this o r d er ; $3,000

sh a ll be d u e a nd p a y a ble within 120 d a y s fr om t h e d a te of issu a n c e of this o r d er ;

a nd $3,000 sh a ll be due a nd p a y a ble within 150 d a y s fr om the d a t e of iss u a n c e of

this o r d er

. The r e m a in i ng po r tion of t h e c ivil p e n a l t y a mount, $15,000, sh a ll

b ec ome d u e a nd p a y a b l e imm e di a t e l y i f

, within one y e a r of the d a t e of issu a n c e o f

this o r d er

, C h ar t e r Air T ra nspo r t, I n c

., viol a t e s this o r d er’ s cea se a nd d e sist

p r ovisions or fa ils to c o mp l y with the o r d e r ’ s p a y m e nt p r ovisions, in whi c h ca s e

C h ar t e r Air T ra nsp o r t, I n c

., m a y be subj ec t to a ddition a l e n f o r c e m e nt a c tion f or

viol a tion of this o r d er ; a n d

5. W e o r d e r C h ar t e r Air T ra nspo r t, I n c

. to p a y the p e n a l t y th r o u g h Pa y

. g o v to the

acc ount of the U. S

. T r e a su r y in acc o r d a n c e with the inst r u c tions c ont a in e d in the

Att ac hm e nt to this o r d e r

. Fa ilu r e to p a y the p e n a l t y a s o r d ere d sh a ll subj ect

C h ar t e r Air T r a nspo r t, I n c

. to the a ss e ssm e nt of int ere st, p e n a l t y

, a nd c o ll ec tion

c h a r g e s und e r the D e bt C oll ec tion A c t, a nd to possible a ddition a l e n f or ce m e nt

ac tion f or f a iling to c om p l y with this o r d er

.

This o r d e r will b e c ome a f in a l o r d e r o f the D e p ar tm e nt 10 d a y s af t e r its s er vi c e d a te

unl e ss a tim e l y p e tition f or re vi e w is f il e d or t h e D e p a r tm e nt t a k e s re v i e w on its own

motion.

B Y:

B la n e Wo r k ie

Assis t a n t G e ne r al Co un s e l f o r

Avia t ion E n f o rc e m en t a n d P r o c e e d i n gs

An e l ec tronic v e rsion of this do c um e nt is a v ailable at

www .r e gulations.gov