Order 2011-5-13

UN ITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

On the Sixteenth day of May, 2011

Icelandair Group, a/k/a Flugleidir, h.f., Served May 16, 2011

d/b/a Icelandair 

Violations of 49 U.S.C. § 41705

and 14 CFR Part 382 Docket OST-2011-0003

CONSENT ORDER

This order concerns violations by Icelandair Group, a/k/a Flugleidir, h.f., d/b/a Icelandair 

(Icelandair) of the requirements of 14 CFR Part 382 (Part 382), with respect to the filing 

of annual reports detailing disability-related complaints that Icelandair received from 

passengers in calendar years 2008, 2009, and 2010. Part 382 implements the Air Carrier 

Access Act (ACAA), 49 U.S.C. § 41705, and violations of Part 382 also violate the 

ACAA. This order directs Icelandair to cease and desist from future similar violations of 

Part 382 and the ACAA and assesses the carrier $30,000 in civil penalties.

Under section 382.157, covered carriers (i.e. U.S. and foreign air carriers operating 

passenger service to, from, or within the United States with at least one aircraft having a 

design capacity of more than 60 passenger seats) must, among other things, submit an 

annual report to the U.S. Department of Transportation (Department) summarizing the 

disability-related complaints that they received the prior calendar year.1

 

1 In addition, the rule requires a carrier to record complaints that it receives alleging discrimination 

or inadequate accessibility on the basis of a disability. The complaints are to be categorized according to 

the passenger’s type of disability and the nature of the complaint. The rule also requires that covered 

carriers retain a copy of each disability-related complaint that the carrier receives and a record of the action 

taken on the complaint for three years.

 The annual 

report to the Department is due each year on the last Monday in January. The annual 
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report covering calendar year 2008 was due on January 26, 2009; the report covering 

calendar year 2009 was due on January 25, 2010; and the report covering calendar year 

2010 was due on January 24, 2011.

To comply with 49 U.S.C. § 41705, which requires, among other things, that the 

Secretary of Transportation “regularly review all complaints received by air carriers 

alleging discrimination on the basis of disability and report annually to Congress on the 

results of such review,” and to ensure that consumers can compare the overall disability 

complaints filed against particular carriers, the Office of the Assistant General Counsel 

for Aviation Enforcement and Proceedings (Enforcement Office) is committed to 

ensuring that carriers file disability-related reports as required. To this end, the 

Enforcement Office has made efforts to ensure compliance with section 382.157, 

including providing carriers and carrier associations information about the disability 

reporting requirements and posting a copy of the disability reporting rule on its Aviation 

Consumer Protection Division’s website. 

Icelandair is a foreign air carrier based in Reykjavik, Iceland that operates scheduled 

service to and from the United States using at least one aircraft having a design seating 

capacity of more than 60 passenger seats. Icelandair’s operations into the United States 

clearly fall within the scope of the reporting rule. Therefore, Icelandair violated section 

382.157(d) and the ACAA when it submitted to the Department the report for calendar 

year 2008 on February 24, 2009, over four weeks late, the report for calendar year 2009 

on April 8, 2010, more than two months late, and the report for 2010 on February 11, 

2011, over two weeks late. During the period in question, Icelandair was warned 

regarding its delinquencies, which nonetheless continued.

In mitigation, Icelandair argues that the Department’s notifications of the carrier’s 

previous reporting delinquencies should not operate as an aggravating factor in the 

current case because they were not sent to, or received by, the only Icelandair designated 

agent under 49 U.S.C. § 46103 to receive process, orders, decisions, requirements and 

notice of the delinquencies at issue here. Icelandair also argues that any penalty over 

$30,000 would be excessive and have a detrimental impact on its ability to continue to 

operate due to its operational and financial hardships over the preceding 12 months, as a 

direct result of the Icelandic volcano eruption in 2010, and the overall financial instability 

and uncertainty of the Republic of Iceland since the global economic crisis of 2008/2009 

and, therefore, a penalty of more than $30,000 in this case would be contrary to the public 

interest.

The Enforcement Office notes that multiple emails were sent and acknowledged by the 

management staff of Icelandair concerning Icelandair’s numerous filing delinquencies. 

We view seriously Icelandair’s failure to submit the reports on time as required by section

382.157(d). Accordingly, after carefully considering all the facts in this case, including 

those set forth above, the Enforcement Office believes that enforcement action is 

warranted. By this order, the Department finds that Icelandair failed to submit timely its 

annual reports detailing the disability-related complaints it received in calendar years

2008, 2009, and 2010 in violation of 14 CFR Part 382 and 49 U.S.C. § 41705. 
3

In order to avoid litigation, Icelandair and the Enforcement Office have agreed to settle 

this matter and enter into this consent order directing Icelandair to cease and desist from 

future similar violations of Part 382 and 49 U.S.C. § 41705, and assessing $30,000 in 

compromise of potential civil penalties otherwise due and payable. We believe that this 

assessment is appropriate and serves the public interest. It represents an adequate 

deterrent to future noncompliance with the Department's reporting requirements by 

Icelandair, as well as by other domestic and foreign air carriers.

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 Icelandair Group, a/k/a Flugleidir, h.f., d/b/a Icelandair has violated 14 

CFR 382.157 by failing to submit timely is annual reports detailing the disabilityrelated complaints it received in calendar years 2008, 2009, and 2010 to the 

Department of Transportation summarizing the disability-related complaints that it 

received in those calendar years;

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

paragraph 2 above, Icelandair Group, a/k/a Flugleidir, h.f., d/b/a Icelandair also 

violated 49 U.S.C. § 41705;

4. Icelandair Group and all other entities owned or controlled by Icelandair Group, its 

successors and assignees are ordered to cease and desist from further violations of 

section 382.157 and 49 U.S.C. § 41705;

5. Icelandair Group is assessed $30,000 in compromise of civil penalties that might 

otherwise be assessed for the violations found in ordering paragraphs 2 and 3 above. 

Of this total penalty amount, $15,000 shall be due and payable within 30 days after 

the service date of this order. The remaining $15,000 will become due and payable 

if Icelandair Group violates 14 CFR 382.157 within one year following the date of 

issuance of this order, or fails to comply with the payment provisions of this order, 

in which case the entire unpaid portion of the civil penalty shall become due and 

payable immediately, and Icelandair Group may be subject to additional 

enforcement action for failure to comply with this order; and

6. Payment 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 attached instructions. Failure to pay the 

penalty as ordered will subject Icelandair Group to the assessment of interest, 
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penalty and collection charges under the Debt Collection Act and 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

http://regulations.gov