Order 2011-5-2

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION 

OFFICE OF THE SECRETARY 

WASHINGTON, D.C.

Issued by the Department of Transportation

On the Sixth day of May, 2011

Wholesale Travel Center, Inc. OST-2011-0003

Served May 6, 2011

Violations of 14 CFR Part 257 and

 49 U.S.C. § 41712

CONSENT ORDER

This consent order concerns violations by Wholesale Travel Center, Inc., (Wholesale 

Travel), an online airline ticket agent, of the Department’s code-share disclosure rule, 

14 CFR Part 257, and the statutory prohibition against unfair and deceptive practices, 

49 U.S.C. § 41712. It directs Wholesale Travel to cease and desist from future violations 

of Part 257 and section 41712 and assesses Wholesale Travel $30,000 in civil penalties.

Section 257.4 of the Department’s code-share disclosure rule states that the holding out or 

sale of scheduled passenger air transportation involving a code-sharing arrangement is an 

unfair and deceptive trade practice in violation of 49 U.S.C. § 41712 unless, in 

conjunction with that holding out or sale, the advertiser follows certain notice 

requirements, including those of 14 CFR 257.5(d). The specific terms of section 257.5(d) 

require that print advertisements, including those published on the Internet, “prominently 

disclose that the advertised service may involve travel on another carrier,” “clearly 

indicate the nature of the service in reasonably sized type,” and “identify all potential 

transporting carriers... by corporate name and by any other name under which that service

is held out to the public.” 

An investigation by the Office of Aviation Enforcement and Proceedings (Enforcement 

Office) revealed a significant lack of compliance by Wholesale Travel with section 257.5.

During at least the latter half of 2010, Wholesale Travel failed to properly disclose the 

existence of code-sharing arrangements when advertising code-share flights operated on 

behalf of a major air carrier by a regional air carrier on its Internet website 

www.airfare.com. Specifically, it did not display the corporate names of the transporting 

carriers and any other names under which those flights were held out to the public on its 

flight itinerary pages. Wholesale Travel’s failure to properly disclose the existence of 

code-sharing arrangements and the names of the transporting carriers could have resulted

in consumers being deceived regarding the identity of the airline that was actually to 

operate the aircraft on which the consumer would be flying.
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In mitigation, Wholesale Travel states that upon learning that it was in violation of the 

Department’s code-share regulations, it notified the Department that its Global 

Distribution System (GDS) was not providing it with certain code-share information. 

Wholesale Travel further states that it initiated many conversations with its GDS so that 

it, and other online travel agencies using the same GDS, would be provided with the 

necessary code-share information and would become compliant with the Department’s 

regulations. Wholesale Travel states that it acted quickly to remedy the deficiencies on 

its website and did everything in its control to comply with the Department’s laws and 

regulations. Wholesale Travel states that its commitment to following the Department’s 

regulations is evidenced by the fact that when the Department released its new guidance 

document regarding the amendment to 49 U.S.C. § 41712 in January of 2011, Wholesale 

Travel became compliant well before the allotted 60 day period. 

We view seriously the failure of Wholesale Travel to disclose code-sharing arrangements 

as required by 14 CFR Part 257. Accordingly, after carefully considering all of the facts 

in this case, including those set forth above, the Enforcement Office believes that 

enforcement action is warranted. In order to avoid litigation, Wholesale Travel agrees to 

the issuance of this order to cease and desist from future similar violations of Part 257 

and 49 U.S.C. § 41712 and to the assessment of $30,000 in compromise of potential civil 

penalties otherwise assessable against it. We believe that this compromise assessment is 

appropriate in view of the nature and extent of the violations in question, serves the 

public interest, and provides a meaningful incentive to all airlines and ticket agents to 

comply with the Department’s code-share disclosure rule.

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 

this order as being in the public interest;

2. We find that Wholesale Travel Center, Inc., violated 14 CFR 257.5(d) by failing 

to disclose code-sharing arrangements as required;

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

paragraph 2 above, Wholesale Travel Center, Inc., engaged in an unfair and 

deceptive practice and unfair method of competition in violation of 

49 U.S.C. § 41712;

4. We order Wholesale Travel Center, Inc., and all other entities owned or 

controlled by, or under common ownership and control with Wholesale Travel

Center, Inc., and its successors and assignees to cease and desist from further 

violations of 14 CFR Part 257 and 49 U.S.C. § 41712;
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5. We assess Wholesale Travel Center, Inc., $30,000 in compromise of civil 

penalties that might otherwise be assessed for the violations described above. 

Of this total penalty amount, $15,000 shall be due and payable as follows: 

$5,000 shall be due and payable within 30 days of the date of issuance of this 

order; two payments of $5,000 each shall be due and payable on July 1, 2011,

and August 1, 2011. The remaining portion of the civil penalty amount shall 

become due and payable if, within one year of the date of issuance of this order, 

Wholesale Travel Center, Inc., violates this order’s cease and desist provisions 

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

Wholesale Travel Center, Inc., may become subject to additional enforcement 

action for violation of the order; and 

6. 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 in accordance with the instructions contained in the 

Attachment to this order. Failure to pay the penalty as ordered will subject 

Wholesale Travel Center, Inc., to the assessment of interest, penalty and 

collection charges under the Debt Collection Act and to possible enforcement 

action for failure to comply with 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:

ROSALIND A. KNAPP

Deputy General Counsel

(SEAL)

An electronic version of this document is available on the World Wide Web at

www.regulations.gov