Order 2011-6-5

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

On the Third day of June, 2011

TACA International Airlines, S.A. Docket OST 2011-0003

Served June 3, 2011

Violations of 49 U.S.C. § 41712 and 

14 CFR 399.84 

CONSENT ORDER

This consent order concerns Internet airfare advertisements by TACA International 

Airlines, S.A., (TACA) that violate the advertising requirements specified in 14 CFR Part 

399.84, as well as 49 U.S.C. § 41712, which prohibits unfair and deceptive practices. It 

directs TACA to cease and desist from future violations of section 399.84 and section 

41712, and assesses the carrier a compromise civil penalty of $55,000. 

Applicable Law

As a foreign air carrier, TACA 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 base fares 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 existence and amounts are 

clearly indicated at the first point in the advertisements where a fare is presented so that 
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consumers can immediately determine the full fare to be paid.1 Thus, for example, fare 

advertisements that fail entirely to identify the existence and amount of separate 

additional taxes and fees at the first point at which a fare is displayed or include only 

general statements regarding the existence of such taxes and fees do not comply with 

section 399.84 or the Department’s enforcement case precedent. 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 the fees that may be stated separately are shown. In Internet advertising displays, 

taxes and fees that properly may be stated separately from the advertised fare may be 

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

and fees are extra and directly takes the viewer to the bottom of the screen, to a pop-up, 

or to a place on a separate screen, where the nature and amount of taxes and fees are 

prominently and immediately displayed.3 

Facts and Conclusions

For a period of time in 2010 and 2011, TACA employed a program on its website that 

allowed consumers to search for flights by exact dates or by flexible dates. In responding 

to searches using either method, TACA provided airfare quotes, either through a fare 

listing or a fare matrix. The quotes, which were the first time fares were presented to 

consumers, noted that the fares did not include taxes and fees, but TACA failed to 

disclose at that time the nature and amount of those taxes and fees in any of the 

acceptable ways described above. 

Mitigation

In mitigation, TACA states that although its disclosures did not conform to the 

Department’s specific requirements, all persons making purchases on TACA’s website 

 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 October 24, 2011, 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., Cayman Airways, Ltd., Violations of 49 U.S.C. § 41712 and 14 CFR 399.84, Order 2011-3-5 

(March 18, 2011). 

3 For example, 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, to a pop-up, or to the 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.
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were provided with full tax and fee information prior to completion of their purchase. 

TACA believes that at no time did any person purchase a ticket on TACA’s website 

without first receiving a full fare quotation, including all taxes and fees. TACA asserts 

that the improper display of tax and fee information on TACA’s website resulted from a 

software revision, and that it has taken steps to ensure that any future revisions undergo 

appropriate review to prevent similar future occurrences. TACA believes strongly that 

these efforts, the availability to all consumers of tax and fee information prior to any 

purchase, the immediate action TACA took to correct the discrepancies, and its full 

cooperation in this investigation demonstrate TACA’s strong commitment to compliance 

with the Department’s advertising requirements.

Decision

The Department views compliance with the Federal aviation statutes and regulations 

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

has carefully considered the information provided by TACA and continues to believe that 

enforcement action is warranted. The Enforcement Office and TACA have reached a 

settlement of this matter in order to avoid litigation. Without admitting or denying the 

violations described above, TACA 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 $55,000 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 by TACA 

and other sellers of air transportation. 

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 TACA International Airlines, S.A., 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 paragraph 2 above, TACA 

International Airlines, S.A., engaged in unfair and deceptive trade practices and 

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

4. We order TACA International Airlines, S.A., and all other entities owned or 

controlled by, or under common ownership and control with TACA International 

Airlines, S.A., their successors, affiliates, and assigns, to cease and desist from further 

similar violations of 49 U.S.C. § 41712 and 14 CFR 399.84. Failure to comply with 
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this cease and desist provision shall subject TACA International Airlines, S.A., and 

their successors and assignees to further enforcement action;

5. We assess TACA International Airlines, S.A., $55,000 in compromise of civil 

penalties that might otherwise be assessed for the violations described in order 

paragraphs 2 and 3 above. Of this total penalty amount, $27,500 shall be due and 

payable within fifteen (15) days of the date of issuance of this order. The remaining 

$27,500 shall be due and payable immediately if TACA International Airlines, S.A., 

violates this order’s cease and desist or payment provisions during the twelve (12) 

months following the service date of this order; and

6. We order TACA International Airlines, S.A., to remit the payment ordered in 

paragraph 5 above, within fifteen (15) days after the issuance of this order, 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 TACA International Airlines, S.A., to the assessment of interest, penalty, and 

collection charges under the Debt Collection Act, and to possible 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