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DOT Fines People Express - Before They Even Fly!  
User currently offlineLAXintl From United States of America, joined May 2000, 24312 posts, RR: 47
Posted (1 year 11 months 1 week 4 days 17 hours ago) and read 8879 times:

Here is a good one – before the airline even becomes reality the DOT is after it with enforcement action !


DOT has issued a $10,000 civil consent decree against People Express Airlines due to marketing violations.

The department alleges that between February and March 2012, the carrier marketed and sold memberships to its “Club Travelati” program intended to offer members future travel discounts. As result People Express sold 130 memberships.
As People Express does not hold the economic authority to engage in air transportation and as such is prohibited from advertising and engaging into such transactions in violation of United States Code sections.

Order 2012-5-7

[Edited 2012-05-10 08:16:47]


From the desert to the sea, to all of Southern California
17 replies: All unread, jump to last
 
User currently offlineenilria From Canada, joined Feb 2008, 6837 posts, RR: 14
Reply 1, posted (1 year 11 months 1 week 4 days 15 hours ago) and read 8492 times:

I think I commented about that at the time. It seemed like a questionable tactic to sell a "$9 fare club" with no airline.

User currently offlineFI642 From Monaco, joined Mar 2005, 1079 posts, RR: 2
Reply 2, posted (1 year 11 months 1 week 4 days 13 hours ago) and read 8076 times:

It was probably done innocently too. Start ups try to think outside of the box. Oh well!


737MAX, Cool Planes for the Worlds Coolest Airline.
User currently offlineFlyPNS1 From United States of America, joined Nov 1999, 6477 posts, RR: 24
Reply 3, posted (1 year 11 months 1 week 4 days 12 hours ago) and read 8019 times:

Quoting FI642 (Reply 2):
It was probably done innocently too. Start ups try to think outside of the box. Oh well!

Or People Express is looking for money to stay alive and duping unsuspecting consumers into buying into an airline that doesn't currently exist.


User currently offlineSkyCub From United States of America, joined Apr 2012, 300 posts, RR: 1
Reply 4, posted (1 year 11 months 1 week 4 days 11 hours ago) and read 7774 times:

I just cannot believe that 130 people actually paid for the possibility of discounted fares at sometime in the future on an airline that is not even flying and, once flying, may totally change the "proposed" routes they have announced!


My opinions are my own. They are not representative of my employer, my union or my co-workers. They are all mine.
User currently offlineLJ From Netherlands, joined Nov 1999, 4366 posts, RR: 0
Reply 5, posted (1 year 11 months 1 week 4 days 11 hours ago) and read 7724 times:

Quoting SkyCub (Reply 4):
I just cannot believe that 130 people actually paid for the possibility of discounted fares at sometime in the future on an airline that is not even flying and, once flying, may totally change the "proposed" routes they have announced!

Same reason why people buy tickets on airlines which don't exist and will never exist because con artists running a virtual airline..

BTW I don't imply that People Express is running a scam or whatever, just implying that some people buy anything without informing themselves.

[Edited 2012-05-10 13:24:04]

User currently offlineN8911E From United States of America, joined May 2012, 48 posts, RR: 0
Reply 6, posted (1 year 11 months 1 week 4 days 10 hours ago) and read 7501 times:

Do they even have a fleet yet? Even if they do get an O.C. they still have to buy planes, and to do that, they need capital and financing.

User currently offlineLOWS From Austria, joined Oct 2011, 1064 posts, RR: 1
Reply 7, posted (1 year 11 months 1 week 4 days 10 hours ago) and read 7415 times:

Quoting N8911E (Reply 6):
Do they even have a fleet yet? Even if they do get an O.C. they still have to buy planes, and to do that, they need capital and financing.

To get the operating certificate, they have to prove that they are financially viable.


User currently offlineLAXintl From United States of America, joined May 2000, 24312 posts, RR: 47
Reply 8, posted (1 year 11 months 1 week 4 days 7 hours ago) and read 7085 times:

In People Express mitigation argument they stated that the membership was not intended to constitute air-transportation, but instead related benefits such as "first to know" announcement and events about its activities including members getting a souvenir pin. The offer of any discounts certificates, was contingent on the airline commencing service.

So I guess these people bought a pin, and got added to a mailing list for upcoming news.  



From the desert to the sea, to all of Southern California
User currently offlinesunking737 From United States of America, joined Feb 2005, 2021 posts, RR: 9
Reply 9, posted (1 year 11 months 1 week 4 days 4 hours ago) and read 6806 times:

I saw this about PEOPLEXPRESS. You would think that with the Feds watching its every move they would be more careful. Can you say stool pigeon. Someone saw this and the DOT knew what was going on before PE could pull the plug and CYA.


Just an MSPAVGEEK
User currently offlineMaverick623 From United States of America, joined Nov 2006, 5428 posts, RR: 6
Reply 10, posted (1 year 11 months 1 week 4 days 4 hours ago) and read 6782 times:

Quoting SkyCub (Reply 4):
I just cannot believe that 130 people actually paid

I can't believe it was only 130. Remember that guy who had that fake airline scam going? Didn't he bilk hundreds of people?



"PHX is Phoenix, PDX is the other city" -777Way
User currently offlineGentFromAlaska From United States of America, joined Feb 2005, 2922 posts, RR: 1
Reply 11, posted (1 year 11 months 1 week 4 days 3 hours ago) and read 6072 times:

Quoting LAXintl (Thread starter):
DOT has issued a $10,000 civil consent decree against People Express Airlines due to marketing violations.

In that People Express doesn't have their operating certificate I'm not convinced the FAA even has regulatory jurisdiction over a non-airline? This sounds like it should be a possibly a Consumer Protection Agency violation if one exist.

Quoting SkyCub (Reply 4):
I just cannot believe that 130 people actually paid for the possibility of discounted fares

The nostalgia factor I suppose.



Man can be taken from Alaska. Alaska can never be taken from the man.
User currently offlineYLWbased From Hong Kong, joined Jan 2006, 803 posts, RR: 4
Reply 12, posted (1 year 11 months 1 week 4 days 2 hours ago) and read 5367 times:

Warning: Metis TransPacific - A Fake Airline! (by YLWbased Nov 28 2007 in Civil Aviation)

reminds me of this.

YLWbased



Hong Kong is not China. Not better or worse, just different.
User currently offlinelightsaber From United States of America, joined Jan 2005, 12409 posts, RR: 100
Reply 13, posted (1 year 11 months 1 week 4 days ago) and read 4890 times:
Support Airliners.net - become a First Class Member!

Quoting GentFromAlaska (Reply 11):
In that People Express doesn't have their operating certificate I'm not convinced the FAA even has regulatory jurisdiction over a non-airline?

If they were selling air transportation, the FAA has jurisdiction.

Lightsaber



I've posted how many times?!?
User currently offlineeinsteinboricua From Puerto Rico, joined Apr 2010, 2667 posts, RR: 8
Reply 14, posted (1 year 11 months 1 week 3 days 18 hours ago) and read 3081 times:

I suppose these are the same people that pay the prince of Nigeria thousands to recover the millions stored in the Nigerian bank.


"You haven't seen a tree until you've seen its shadow from the sky."
User currently offlineGentFromAlaska From United States of America, joined Feb 2005, 2922 posts, RR: 1
Reply 15, posted (1 year 11 months 1 week 3 days 17 hours ago) and read 2848 times:

Quoting lightsaber (Reply 13):
If they were selling air transportation, the FAA has jurisdiction.

That I agree with. The article says they were marketing and selling memberships

Quoting LAXintl (Thread starter):
The department alleges that between February and March 2012, the carrier marketed and sold memberships to its “Club Travelati”



Man can be taken from Alaska. Alaska can never be taken from the man.
User currently offlineenilria From Canada, joined Feb 2008, 6837 posts, RR: 14
Reply 16, posted (1 year 11 months 1 week 3 days 17 hours ago) and read 2836 times:

Quoting enilria (Reply 1):
I think I commented about that at the time. It seemed like a questionable tactic to sell a "$9 fare club" with no airline.
Quoting FI642 (Reply 2):
It was probably done innocently too. Start ups try to think outside of the box. Oh well!
Quoting FlyPNS1 (Reply 3):
Or People Express is looking for money to stay alive and duping unsuspecting consumers into buying into an airline that doesn't currently exist.
Quoting LJ (Reply 5):
Same reason why people buy tickets on airlines which don't exist and will never exist because con artists running a virtual airline..
Quoting SkyCub (Reply 4):
I just cannot believe that 130 people actually paid for the possibility of discounted fares at sometime in the future on an airline that is not even flying and, once flying, may totally change the "proposed" routes they have announced!
Quoting Maverick623 (Reply 10):
I can't believe it was only 130. Remember that guy who had that fake airline scam going? Didn't he bilk hundreds of people?

While I think the tactic was dumb, I don't think it was intended to make millions. They didn't promote it at all which is why it only raised about $1000. That probably paid for keeping their website running for a month or two. It's small potatoes. I guess they did it to imply to customers that they were really moving forward and could be flying soon...which we all think is extremely unlikely.


User currently offlineLAXintl From United States of America, joined May 2000, 24312 posts, RR: 47
Reply 17, posted (1 year 11 months 1 week 3 days 17 hours ago) and read 2683 times:

Its not the FAA. Its the DOT.

DOT has oversight of economic activities related to transportation be it aviation, highways, rail road, buses, marine etc..



From the desert to the sea, to all of Southern California
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