Air Consumer

This order concerns unauthorized passenger air service between points in the United States by International Jet Management GmbH, (IJM) an Austrian air carrier authorized by the Department to engage in foreign air transportation1 pursuant to an exemption2 from the permit requirement in 49 U.S.C. § 41301. The carriage of local traffic for compensation or hire by foreign air carriers between two points in the United States, a practice commonly referred to as cabotage, violates 49 U.S.C. § 41703, which prohibits cabotage except under very limited circumstances that do not apply here.3 In addition, a foreign air carrier that holds out to the public without authorization, either expressly or by course of conduct, that it provides cabotage service violates 49 U.S.C. § 41301. Violations of sections 41301 and 41703 also constitute an unfair and deceptive trade practice and unfair method of competition in violation of 49 U.S.C. § 41712. This consent order directs IJM to cease and desist from such further violations and assesses the carrier a compromise civil penalty of $25,000.