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Air Consumer

US Airways, Inc. 2009-8-2

This consent order concerns violations by US Airways, Inc., 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. The order directs US Airways to cease and desist from future violations of Part 257 and section 41712 and assesses the carrier $70,000 in civil penalties.

Paragon Air, Inc. 2009-7-17

This consent order concerns the failure of Paragon Air, Inc., ("Paragon") to comply with (1) the requirement, implemented by 14 CFR Part 374, to make prompt credit card refunds as required by the Consumer Credit Protection Act and Regulation Z of the Board of Governors of the Federal Reserve System, 15 U.S.C. §§ 1601-1693r and 12 CFR Part 226 and (2) Department enforcement case precedent that requires that cash refunds be made within 20 days of receipt of full documentation of such a request.

Delta Air Lines, Inc. 2009-7-7

This Consent Order concerns violations by Delta Air Lines, Inc., (Delta) of the Department’s oversales rule, 14 CFR Part 250, and the statutory prohibition against unfair and deceptive practices, 49 U.S.C. § 41712. The violations stem from the carrier’s failure 1) to solicit volunteers before involuntarily denying boarding to passengers on oversold flights, 2) to furnish the required written notice to passengers who were denied boarding involuntarily (“bumped”), and 3) to provide bumped passengers with the appropriate amount and type of denied boarding compensation (DBC) in a timely manner. The order directs Delta to cease and desist from such further violations and assesses the carrier a civil penalty of $375,000.

United Air Lines, Inc. 2009-7-6

This consent order concerns violations by United Air Lines, Inc., (United) 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. The order directs United to cease and desist from future violations of Part 257 and section 41712 and assesses the carrier $80,000 in civil penalties.

Gate 1, Ltd. 2009-7-5

This consent order concerns advertisements by Gate 1, Ltd., (Gate 1) a ticket agent, that violated 14 CFR 399.84 the Department’s rule on full-fare advertising, and 49 U.S.C. § 41712, which prohibits unfair and deceptive practices by air carriers and ticket agents. This order assesses a compromise civil penalty of $50,000 and directs Gate 1 to cease and desist from future similar violations.

Air Ambulance Worldwide, Inc. 2009-6-18

This consent order concerns the unlawful holding out of direct air transportation by Air Ambulance Worldwide, Inc., (AAW) an indirect air carrier specializing in air ambulance services. AAW’s conduct exceeded the scope of the economic authority conferred in Civil Aeronautics Board (CAB) Order 83-1-36 and violated 49 U.S.C. § 41101, the Department’s economic licensing requirement for air carriers. Those violations also constituted an unfair and deceptive trade practice and unfair method of competition in violation of 49 U.S.C. § 41712. This consent order directs AAW to cease and desist from such further violations and assesses AAW a compromise civil penalty of $12,000.

Medjet Assistance, LLC 2009-6-19

This consent order concerns the unlawful holding out of direct air transportation by Medjet Assistance, LLC (MedjetAssist), an indirect air carrier specializing in air ambulance services. The conduct in question exceeded the scope of the economic authority conferred in Civil Aeronautics Board (CAB) Order 83-1-36 and violated 49 U.S.C. § 41101, the Department’s economic licensing requirement for air carriers. Those violations also constituted an unfair and deceptive trade practice and unfair method of competition in violation of 49 U.S.C. § 41712. This consent order directs MedjetAssist to cease and desist from such further violations and assesses MedjetAssist a compromise civil penalty of $25,000.

Holiday Airways Corporation d/b/a Holiday Air 2009-5-12

This consent order concerns violations of certain consumer protection provisions of the Department’s Public Charter regulations by Holiday Airways Corporation d/b/a Holiday Air, a Public Charter operator. Holiday Air failed to apply for and receive approval from the Department prior to advertising Public Charter flights, in violation of 14 CFR Part 380. Holiday Air also held out service on its Internet website in a manner that could confuse the public into believing it was an airline, in violation of 49 U.S.C. § 41101 and distributed advertisements that failed to comply with 14 CFR 399.84, the Department’s rule on full fare advertising. These activities constituted unfair and deceptive practices and unfair methods of competition in violation of 49 U.S.C. § 41712 and 14 CFR 380.27. This order directs Holiday Air to cease and desist from future violations and assesses a compromise civil penalty of $50,000.

Angel Medflight Worldwide Air Ambulance Services, LLC 2009-4-17

This consent order concerns the holding out of direct air transportation by Angel Medflight Worldwide Air Ambulance Services, LLC, (Angel Medflight), an indirect air carrier specializing in air ambulance services. The conduct in question exceeds the scope of the economic authority conferred in Civil Aeronautics Board (CAB) Order 83-1-36. It also contravenes 49 U.S.C. § 41101, the Department’s economic licensing requirement for air carriers, and 49 U.S.C. § 41712, which prohibits air carriers from engaging in unfair and deceptive trade practices and unfair methods of competition. This consent order directs Angel Medflight to cease and desist from such further violations and assesses Angel Medflight a compromise civil penalty of $10,000.

smarTours, Inc. - April 4, 2009

This consent order concerns advertisements by smarTours, Inc., (“smarTours”) that violate the Department’s advertising requirements specified in section 399.84 of the Department’s regulations (14 CFR 399.84) and constitute unfair and deceptive trade practices and unfair methods of competition in violation of 49 U.S.C. § 41712. This order directs smarTours to cease and desist from future violations and assesses the company compromise civil penalties of $40,000.

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