DOT Fines Global
By Shane Nolan
June 3, 2011 - The U.S. Department of Transportation
(DOT) fined Global Airline Services and its owner Harold
J. Pareti a total of $120,000 for selling air
transportation without DOT authority.
The company has bid for and won contracts in its own
right to provide charter flights to college sports
teams, although it has no authority from DOT to sell air
transportation in its own right. After winning a bid, it
entered into separate contracts with direct air carriers
to provide the charter air transportation.
This violated DOT rules that require companies that sell
air transportation to the public such as airlines and
charter operators to obtain economic authority from the
Department, which is separate from safety authority
awarded by the Federal Aviation Administration.
consumers buy air transportation, they have a right to know that
the company selling the transportation is authorized to do so,
and that the carrier operating the aircraft has been examined by
DOT and has met appropriate fitness and safety requirements,?
said U.S. Transportation Secretary Ray LaHood. ?Our licensing
rules provide important protections for passengers, and we will
continue to take enforcement action when they are violated.?
consent order also found that Global contracted with Capital
Airways to provide transportation to college teams, even though
Capital did not have authority to provide air transportation to
the public. On Jan. 5, the Department fined Capital Airways
$175,000 for operating without the required authority.
a Delaware corporation that specializes in arranging
single-entity charter air transportation. It does not hold
economic authority from the Department to engage directly or
indirectly in air transportation.
an investigation by the Department's Office of Aviation
Enforcement and Proceedings (Enforcement Office) revealed that
during 2010, Global engaged in unauthorized air transportation
as an indirect air carrier.
Global won a bid, it would then sign what was usually styled as
a "purchase order," provided by the university. Upon signing the
order, Global then became contractually bound as a principal to
provide charter air transportation to the university.''
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