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1987 - May DOT Ord. & Dec. [1] (May, 1987)

handle is hein.usfed/dotod0375 and id is 1 raw text is: r -- Order 87-5-1 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 May , 1987 SERVED MAY 1 1987 LLOYD AEREO BOLIVIANO S.A. Violations of 14 CFR 212 CONSENT ORDER The Office of Aviation Enforcement and Proceedings has conducted an investigation into the operations of Lloyd Aereo Boliviano, S.A. (LAB), a Bolivian carrier holding permit authority as a foreign air carrier under section 402 of the Act. As a result of our investigation, we conclude that LAB entered into an illegal wet lease with Air Panama International, S.A., which was in effect between March and June 1986. In the course of this wet lease, LAB performed numerous unauthorized fifth freedom charter flights between Panama City, Panama and Miami, Florida. LABs operations violated 14 CFR Part 212 in two respects. First, each individual fifth freedom charter flight must be submitted for prior DOT approval under 14 CFR 212.4(b)(1) and LAB's were not; and, second, the wet lease itself must be submitted for prior approval pursuant to 14 CFR 212.4(b)(2) and it was not. Both approvals would take the form of a statement of authorization issued under section 212.6. LAB admits the existence of the wet lease and that the fifth freedom flights had occurred as an unauthorized subservice to Air Panama. In mitigation, LAB states that it possesses a section 402 permit which allows service between points in Bolivia to Miami with full traffic rights between Panama City and Miami. In addition, LAB states that the lease negotiated with Air Panama called for the lessee to obtain regulatory approvals and that failure to obtain a required statement of authorization was inadvertent, perhaps the result of a misunderstanding on the part of the U.S. station personnel of the two carriers. Once the alleged violation became apparent to LAB's management, the application for the requisite statements of authorization was promptly submitted. As we have stated in numerous cases, the Department will not tolerate disregard of our international aviation regulations. Claims of mistakes or inadvertent errors are not an excuse. We consider violations of the Fifth Freedom charter and long-term wet lease regulations to be a serious matter.

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