Charges Fare Aggregators Violated Code-Share Disclosure And
Price Advertising Rules
The DOT fined three online ticket agents for failing to
adequately disclose to consumers when flights were being operated
under a code-sharing arrangement. Two of the companies also
were cited for violating the Department’s rules prohibiting
deceptive price advertising in air travel. The department announced
the violations and proposed fines Thursday.
Apple Vacations was assessed a $50,000 civil penalty for
code-share disclosure violations. Globester, LLC, was
assessed $40,000 and LBF Travel, Inc. was assessed $30,000 for
violating both code-share and price advertising rules.
“When passengers buy an airline ticket, they have a right
to know which airline will be operating their flight and how much
they will have to pay,” said U.S. Transportation Secretary
Ray LaHood. “Protecting air travelers is a high
priority of the Department and we will not hesitate to take
enforcement action when their rights are violated.”
Under code-sharing, an airline will sell tickets on flights that
use its designator code, but are operated by a separate
airline. DOT rules require airlines and ticket agents to
disclose to consumers, before they book a flight, if the flight is
operated under a code-sharing arrangement. The disclosure
must include the corporate name of the transporting carrier and any
other name under which the flight is offered to the public.
Under a new law, when tickets are purchased on the Internet,
code-share information must be easily viewable on the first display
of a website following a search for flights corresponding to a
desired itinerary.
Investigations by the Department’s Office of Aviation
Enforcement and Proceedings revealed that the ticket agents, at
least during the latter half of 2010, violated the code-share
disclosure rules by failing to disclose that certain flights listed
on their Internet sites were being operated by a regional carrier
on behalf of a major airline. The listings did not display
the corporate names of the operating carriers and other names under
which the carriers operating the flights do business.
In addition, the Enforcement Office also found that Globester
and LBF Travel failed to include the 7.5 percent federal excise
tax, as well as their own service fees, in fares advertised on
their Internet sites. Globester failed to include these
charges from at least August 2010 through early 2011, and LBF
Travel during the early part of this year. This violated DOT
rules requiring any advertising that includes a price for air
transportation to state the full price to be paid by the consumer,
including all carrier-imposed surcharges. The only exception
currently allowed is government-imposed taxes and fees that are
assessed on a per-passenger basis, such as passenger facility
charges, which may be stated separately from the advertised fare
but must be clearly disclosed in the advertisement so that
passengers can easily determine the full price they must pay.
Under DOT’s recently adopted consumer rule that enhances
protections for air travelers, carriers will be required, among
other things, to include all government taxes and fees in
advertised fares beginning Oct. 24.