Codeshares are welcome, infact a smart way to increase the coverage and make some money, but they aren't rosy all the time , specifically when carriers do not comply additional compliances of regulators.
The U.S. Department of Transportation (DOT) has fined Virgin Atlantic $1.05 million for operating flights carrying Delta Air Lines’ code (DL) in regions in which a Federal Aviation Administration (FAA) flight prohibition was in effect. The airline was ordered to cease and desist from future similar violations.
Virgin Atlantic said that the subject prohibited overflights were inadvertent and upon notification from the Department (DOT) , it immediately rerouted flights to avoid the airspace in question and informed its Board and senior leadership of the issue.
The Carrier said,
Virgin Atlantic takes seriously its responsibility to comply with all Department regulations and requirements in its operating permits, including the requirement not to operate flights carrying a U.S. carrier’s designator code that enter, depart, or transit the airspace of any area for whose airspace the FAA has issued a flight prohibition for U.S. civil aviation.
Virgin Atlantic states that it has historically complied with this requirement, that it has a strong safety record and a robust culture of regulatory compliance, and that it is an industry leader in aviation security around the world.
The investigation by the Department’s Office of Aviation Consumer Protection revealed that between September 16, 2020 and September 16, 2021, Virgin Atlantic operated a significant number of flights carrying the DL code over restricted airspace in Iraq , Baghdad FIR (ORBB) at altitudes below FL320 , while an FAA Notice to Air Missions (NOTAM) was in effect.
The DOT conditions under emergency orders of the FAA Administrator via Notices-to-Air Missions (NOTAMs) and Special Federal Aviation Regulations (SFARs) makes such flight prohibitions applicable to foreign air carriers when they are carrying a U.S. air carrier’s code.
U.S. Department of Transportation said,
An investigation by the Department’s Office of Aviation Consumer Protection (OACP) revealed that between September 16, 2020, and September 16, 2021, Virgin Atlantic operated a significant number of flights carrying the DL code between the U.K. and India, in the area affected by NOTAM KICZ A0036/20.5 By operating flights carrying the DL code in airspace in which the FAA prohibited U.S. operators and airmen from flying, Virgin Atlantic operated in violation of the conditions of its statement of authorization. As a result, Virgin Atlantic violated 49 U.S.C. § 41301.
By carrying the DL code on flights in airspace in which the FAA prohibits U.S. carriers from flying, Virgin Atlantic operated in violation of the conditions of its statement of authorization and in violation of federal law.
Virgin Atlantic has blamed COVID-19 pandemic manpower shortage as one of the reasons for the violation,
Virgin Atlantic states that its prohibited overflights were inadvertent, caused by operational disruptions and loss of personnel due to the COVID-19 pandemic. Virgin Atlantic states that the problematic flight paths, that violated FAA standards, were permissible under foreign government standards.
Virgin Atlantic states that it accepts responsibility for its inadvertent failure to abide by the Department’s regulations and requirements but that any penalty imposed should be significantly mitigated given the circumstances. Nevertheless, to resolve this matter without litigation, Virgin Atlantic has agreed to this compromise settlement.
In order to avoid litigation, and without admitting or denying the violations described above, Virgin Atlantic consents to the issuance of this order to cease and desist from future violations of 49 U.S.C. § 41301, and to the assessment of $1,050,000 in compromise of potential civil penalties otherwise due and payable pursuant to 49 U.S.C. § 46301.
U.S. Department of Transportation has ordered to pay through the channel of Pay.gov, to the account of the U.S. Treasury, it said,
We order Virgin Atlantic to pay the penalty assessed in Ordering Paragraph 4, above, through Pay.gov, to the account of the U.S. Treasury. Payment shall be made in accordance with the instructions contained in the Attachment to this order.
Failure to pay the penalty as ordered shall subject Virgin Atlantic to the assessment of interest, penalty,and collection charges under the Debt Collection Act and to further enforcement action for failing to comply with this order.
U.S. Department of Transportation has asked Virgin Atlantic to pay the total amount in installments, it ordered,
We assess Virgin Atlantic $1,050,000 in compromise of civil penalties that might otherwise by assessed for the violations described above. Of this total amount, $175,000 shall be due and payable within 60 days of the issuance date of this order. Two additional equal payments of $175,000 shall be due and payable within 150 days and 240 days of the issuance of this order.
The remaining $525,000 shall become due and payable if, within one year of the issuance date of this order, Virgin Atlantic violates this order’s cease and desist or payment provisions, in which case the entire unpaid amount shall become due and payable immediately and Virgin Atlantic may be subject to additional enforcement action for failure to comply with this order.
Source : DOT 2023-1-7 Consent Order ( Virgin Atlantic Airways Limited)
