Order 2011-8-21

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

On the Twenty-Fifth day of August, 2011

Thai Airways International Public 

 Company Limited Docket OST 2011-0003

Served August 25, 2011

Violations of 49 U.S.C. § 41712 and 

 14 CFR 399.84 

CONSENT ORDER

This consent order concerns Internet advertisements by Thai Airways International Public 

Company Limited (Thai Airways) that violated the advertising requirements specified in 

14 CFR Part 399, as well as 49 U.S.C. § 41712, which prohibits unfair and deceptive 

practices. It directs Thai Airways to cease and desist from future violations of Part 399 

and section 41712 and assesses the carrier a compromise civil penalty of $70,000. 

Applicable Law

As a foreign air carrier, Thai Airways is subject to the advertising requirements of Part 

399 of the Department’s rules. Pursuant to 14 CFR 399.84, advertisements specifying 

airfares must state the full price to be paid by the consumer. Under long-standing 

enforcement case precedent, the Department has allowed taxes and fees collected by 

carriers and ticket agents, such as passenger facility charges and departure taxes, to be 

stated separately from the base fare in advertisements so long as such taxes and fees are 

levied by a government entity, are not ad valorem in nature, i.e., not assessed as a 

percentage of the fare price, are collected on a per-passenger basis, and their nature and 

amounts are clearly indicated at the first point in the advertisements where a fare is 

presented so that consumers can immediately determine the full fare to be paid. Thus,

fare advertisements that 1) fail entirely to identify the nature and amount of separate 
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additional taxes and fees, 2) include only general statements regarding the existence of 

such taxes or fees, or 3) separately state carrier-imposed fees, such as fuel or insurance 

surcharges, do not comply with section 399.84 or the Department’s enforcement case 

precedent.1 Violations of section 399.84 constitute unfair and deceptive practices in 

violation of 49 U.S.C. § 41712.2 

In print advertisements, an asterisk or other symbol placed proximate to the advertised 

fare may refer the reader to the bottom of the advertisement where the nature and amount 

of additional charges that properly may be stated separately from the advertised fares are 

disclosed. With respect to Internet fare listings, such additional charges may be disclosed 

through a prominent link placed adjacent to the stated fare that notes that taxes and fees 

are extra. The link must directly take the viewer to the bottom of the screen, or to a popup or to a place on a separate screen, where the nature and amount of taxes and fees are 

prominently and immediately displayed.3 

Additionally, 49 CFR Part 1510 specifies disclosure requirements pertaining to the 

September 11th Security Fee of $2.50 per enplanement on passengers of domestic and 

foreign carriers in air transportation originating at airports in the United States. Pursuant 

to section 1510.7, air carriers and foreign air carriers are required to identify this fee 

verbatim as the “September 11th Security Fee” in all advertisements and solicitations that 

do not include the fee in the advertised base fare. The failure of a carrier to identify the 

September 11th Security Fee as required by the rule constitutes a separate and distinct 

violation of 49 U.S.C. § 41712.4

 

1 On April 20, 2011, the Department issued a rule changing its enforcement policy with respect to 

section 399.84 to require that airlines and ticket agents comply with the rule as written. Under this new 

enforcement policy, which is effective January 24, 2012, airlines and ticket agents must include all 

government taxes and fees in every advertised fare. The Department’s long-standing prohibition on 

omitting carrier- or agent-imposed charges, such as fuel surcharges or convenience fees, from advertised 

fares remains in effect.

2 See, e.g., Continental Airlines, Inc., Violations of 49 U.S.C. § 41712 and 14 CFR 399.84, Order 

2011-6-1 (June 2, 2011). 

3 For example, under current policies, a carrier or ticket agent could advertise a flight in the 

following manner: “$260 + Taxes and Fees” with the phrase “Taxes and Fees” set off as a hyperlink that 

takes the viewer directly to the bottom of the screen or to a pop-up or a place on a separate screen, where 

the nature and amount of taxes and fees are prominently and immediately displayed. See Department 

notices entitled “Disclosure of Air Fare Variations: Web vs. Other Sources, Surcharges that May be Listed 

Separately in Advertisements,” dated November 4, 2004; “Disclosure of Additional Fees, Charges, and 

Restrictions on Air Fares in Advertisements, Including ‘Free’ Airfares,” dated September 4, 2003; and 

“Prohibition on Deceptive Practices in the Marketing of Airfares to the Public Using the Internet,” dated 

January 18, 2001, available at: http://airconsumer.ost.dot.gov/rules/guidance.htm.

4 See, e.g., Sceptre Tours, Inc., Violations of 49 U.S.C. § 41712 and 14 CFR 399.84, Order 2010-6-

23 (June 28, 2010).
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Facts and Conclusions

For a period of time, consumers searching Thai Airways’ U.S. website for round-trip 

flights from a point in the U.S. to a point outside the U.S. were not provided with

information sufficient to permit them to determine the entire price to be paid at the first 

point fares were displayed during the booking process. Rather, consumers were provided

with a selection of fares of varying amounts organized by the date of the outbound and 

return flight along with a statement, without further elaboration, that “[t]otal prices 

including taxes will be displayed at the next steps.” Thus, this webpage did not provide 

consumers with any information describing additional taxes and fees, nor was this 

information presented to consumers in one of the acceptable alternative methods 

described above. Instead, consumers learned of the full fare amount two webpages later 

just prior to purchasing the fare. Additionally, Thai Airways failed to include a carrierimposed fuel surcharge and a carrier-imposed insurance fee in the initially displayed

fares, further misleading consumers with an artificially low initially advertised fare. 

Moreover, the September 11th Security Fee was one of the additional taxes and fees that 

was not included in the initially displayed fares and the carrier failed to identify the fee as 

required. 

Thai Airways’ failure to provide proper notice to consumers of the nature and amount of 

separately stated taxes and fees in any of the acceptable ways described above and its 

failure to include carrier-imposed fees in the initially advertised fare violated 14 CFR

399.84 and 49 U.S.C. § 41712. Furthermore, Thai Airways’ failure to label the 

“September 11th Security Fee” verbatim as described above violated 49 U.S.C. § 41712. 

 Mitigation

In mitigation, Thai Airways states that it takes seriously its responsibility to comply with 

all applicable laws and regulations, including the Department’s rules. According to Thai 

Airways, any violations regarding the fare displays on its U.S. website were inadvertent 

and at no time did Thai Airways intend to misinform or mislead consumers. Thai 

Airways asserts that consumers were provided with the full amount they would have to 

pay prior to purchase. Furthermore, Thai Airways states that it is not aware of any 

complaints from consumers relating to the display of fares and related fees and taxes on 

its website.

Thai Airways states that it cooperated fully with the Department’s investigation of this 

matter. When the Enforcement Office advised Thai Airways of its concerns, Thai 

Airways revised its website to comply with the Department’s rules and has since 

reviewed its internal procedures to ensure that the fares displayed on its website will 

comply with the Department’s requirements in the future. 
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Decision

The Department views compliance with the Federal aviation statutes and regulations very 

seriously. The Office of Aviation Enforcement and Proceedings (Enforcement Office)

has carefully considered the information provided by Thai Airways and continues to 

believe that enforcement action is warranted. The Enforcement Office and Thai Airways

have reached a settlement of this matter in order to avoid litigation. Without admitting or 

denying the violations described above, Thai Airways consents to the issuance of this 

order to cease and desist from future violations of 49 U.S.C. § 41712 and 14 CFR 399.84, 

and to the assessment of $70,000 in compromise of potential civil penalties otherwise due 

and payable pursuant to 49 U.S.C. § 46301.

This compromise assessment is appropriate considering the nature and extent of the 

violations described herein and serves the public interest. It represents a strong deterrent 

against future noncompliance with the Department’s advertising requirements. 

This order is issued under the authority 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 Thai Airways International Public Company Limited violated 14 CFR 

399.84 by advertising fares that failed to state the entire price to be paid;

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

and by not identifying in its Internet advertisements the September 11th Security Fee, 

as required by 49 CFR 1510.7, Thai Airways International Public Company Limited

also engaged in an unfair and deceptive practice and unfair method of competition in 

violation of 49 U.S.C. § 41712;

4. We order Thai Airways International Public Company Limited, and all other entities 

owned or controlled by or under the common ownership and control with Thai 

Airways International Public Company Limited, and its successors and assignees to 

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

399.84. Failure to comply with this cease and desist provision shall subject Thai 

Airways International Public Company Limited and its successors and assignees to 

further enforcement action;

5. We assess Thai Airways International Public Company Limited a civil penalty of 

$70,000 in compromise of civil penalties that might otherwise be assessed for the 

violations described above. Of this total penalty amount, $35,000 shall be due and 

payable within 30 days of the date of the issuance of this order. Any unpaid portion 

of the assessed civil penalty shall be due and payable immediately if Thai Airways
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International Public Company Limited violates this order’s cease and desist or 

payment provisions during the 12 months following the service date of this order; and

6. We order Thai Airways International Public Company Limited to remit the payment 

ordered in paragraph 5 above, 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 shall subject Thai Airways International Public 

Company Limited to the assessment of interest, penalty, and collection charges under 

the Debt Collection Act and to additional 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 at 

www.regulations.gov