Order 2010-9-3 

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

On the 1st day of September, 2010

Shuttle America Corporation Docket OST 2010-0005

Violations of 49 U.S.C. § 41708 and Served September 1, 2010 

14 CFR Part 241

CONSENT ORDER

This consent order concerns reporting delinquencies by Shuttle America Corporation 

(Shuttle America) that constitute violations of 49 U.S.C. § 41708 and the accounting and 

reporting requirements specified in 14 CFR Part 241. This order directs Shuttle America 

to cease and desist from future violations, and assesses the carrier a compromise civil 

penalty of $30,000.

Section 41708 of the United States Code, inter alia, authorizes the Secretary of 

Transportation to require air carriers to submit reports to the Department. Pursuant to 

section 41708, 14 CFR Part 241 designates various categories of data to be collected and 

prescribes the manner in which these data are to be submitted to the Department. The 

Department uses carriers’ Part 241 reports to monitor carrier fitness and ownership, to 

analyze the effects of air transportation industry policy initiatives, to allocate airport 

development funds, to forecast traffic, and to develop airport and airway traffic policy. A 

carrier’s failure to file its reports prevents the Department from making fully informed 

decisions. Failure to file reports when they are due constitutes a violation of both 

49 U.S.C. § 41708 and 14 CFR Part 241. 

Notwithstanding the requirements of section 41708 and Part 241, on a number of 

occasions, Shuttle America failed to file in a timely manner certain financial reports with 

the Department. Shuttle America is currently up to date with respect to its quarterly 

financial reporting obligations. 

In mitigation, Shuttle America states that it is committed to timely submission of reports 

required under section 41708 and Part 241. Shuttle America notes that its parent 

company, Republic Airways Holdings, Inc. (RJET) administers and oversees the 

financial accounting and reporting functions for each of its subsidiary airlines, including 

preparation and submission of BTS reports on behalf of Shuttle America. 
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Shuttle America asserts that any alleged non-compliance was unintentional and 

inadvertent resulting from unanticipated problems that arose while RJET was converting 

to a new accounting software system, and integrating and consolidating multiple 

accounting software systems. RJET states that it has proactively taken comprehensive 

actions to ensure timely compliance, including the establishment of a new full-time 

position wholly dedicated to ensuring that BTS reports for each subsidiary airline are 

prepared and submitted on time; the establishment of tighter supervisory controls over 

BTS reporting with the Director of Finance Compliance reporting directly to the Vice 

President/Controller, both having direct oversight for BTS requirements; and the 

implementation of a computerized compliance calendar to foster timely submission of the 

BTS reports. Shuttle America states that RJET has expended, and will continue to 

expend significant resources to ensure compliance with BTS requirements, and that all of 

its comprehensive actions should assure timely submission of these reports in the future. 

The Office of Aviation Enforcement and Proceedings (Enforcement Office) has carefully 

considered the information provided by Shuttle America Corporation, but continues to 

believe that enforcement action is warranted. The Enforcement Office and Shuttle 

America Corporation have reached a settlement of this matter in order to avoid litigation. 

Shuttle America Corporation consents to the issuance of an order to cease and desist from 

future violations of 49 U.S.C. § 41708 and Part 241 of the Department’s regulations, and 

to the assessment of $30,000 in compromise of potential civil penalties otherwise due and 

payable pursuant to 49 U.S.C. § 46301. Of the total penalty amount, $15,000 shall be 

due and payable no later than 30 days after the date this order is issued. The remaining 

$15,000 shall become due and payable if Shuttle America Corporation violates this 

order’s cease and desist provision 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.

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

violations described herein and serves the public interest. It represents an adequate 

deterrence to future noncompliance with the Department’s reporting requirements by 

Shuttle America Corporation, as well as by other air carriers 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 Shuttle America Corporation violated 14 CFR Part 241 by failing to 

file required reports, as described above, in a timely manner; 

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

paragraph 2, above, Shuttle America Corporation has also violated 49 U.S.C. 

§ 41708; 
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4. We order Shuttle America Corporation and all other entities owned or controlled 

by Shuttle America Corporation and their successors and assignees to cease and 

desist from violations of 49 U.S.C. § 41708 and 14 CFR Part 241;

5. We assess Shuttle America Corporation a compromise civil penalty of $30,000 in 

lieu of civil penalties that might otherwise be assessed for the violations found in 

ordering paragraphs 2 and 3, above. Of the total penalty amount, $15,000 shall be 

due and payable no later than 30 days after the date this order is issued. The 

remaining $15,000 shall become due and payable if Shuttle America Corporation

violates this order’s cease and desist provision 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

6. Payment shall be made by wire transfer through the Federal Reserve 

Communication 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 shall subject Shuttle America Corporation 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 at

www.regulations.gov