DOT Fines People Express - Before They Even Fly! — Civil Aviation Forum

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DOT Fines People Express - Before They Even Fly!

LAXintl From United States of America, joined May 2000, 22077 posts, RR: 51
Posted (1 year 2 weeks 1 day 16 hours ago) and read 8072 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

enilria From Canada, joined Feb 2008, 6137 posts, RR: 13
Reply 1, posted (1 year 2 weeks 1 day 14 hours ago) and read 7685 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.

FI642 From Monaco, joined Mar 2005, 1056 posts, RR: 2
Reply 2, posted (1 year 2 weeks 1 day 11 hours ago) and read 7269 times:

Support Airliners.net - become a First Class Member!

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.

FlyPNS1 From United States of America, joined Nov 1999, 6051 posts, RR: 25
Reply 3, posted (1 year 2 weeks 1 day 11 hours ago) and read 7212 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.

SkyCub From United States of America, joined Apr 2012, 277 posts, RR: 1
Reply 4, posted (1 year 2 weeks 1 day 10 hours ago) and read 6967 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.

LJ From Netherlands, joined Nov 1999, 4149 posts, RR: 1
Reply 5, posted (1 year 2 weeks 1 day 10 hours ago) and read 6917 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]

N8911E From United States of America, joined May 2012, 48 posts, RR: 0
Reply 6, posted (1 year 2 weeks 1 day 9 hours ago) and read 6694 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.

LOWS From Austria, joined Oct 2011, 985 posts, RR: 1
Reply 7, posted (1 year 2 weeks 1 day 9 hours ago) and read 6608 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.

LAXintl From United States of America, joined May 2000, 22077 posts, RR: 51
Reply 8, posted (1 year 2 weeks 1 day 6 hours ago) and read 6278 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

sunking737 From United States of America, joined Feb 2005, 1931 posts, RR: 9
Reply 9, posted (1 year 2 weeks 1 day 3 hours ago) and read 5999 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.

Living back in MN after 6 years in Fla.

Maverick623 From United States of America, joined Nov 2006, 4744 posts, RR: 6
Reply 10, posted (1 year 2 weeks 1 day 3 hours ago) and read 5975 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

GentFromAlaska From United States of America, joined Feb 2005, 2077 posts, RR: 2
Reply 11, posted (1 year 2 weeks 1 day 2 hours ago) and read 5265 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.

YLWbased From Hong Kong, joined Jan 2006, 681 posts, RR: 5
Reply 12, posted (1 year 2 weeks 1 day ago) and read 4560 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.

lightsaber From United States of America, joined Jan 2005, 10697 posts, RR: 100
Reply 13, posted (1 year 2 weeks 23 hours ago) and read 4083 times:

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

Life is short, Live it!

einsteinboricua From Puerto Rico, joined Apr 2010, 2047 posts, RR: 6
Reply 14, posted (1 year 2 weeks 17 hours ago) and read 2274 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."

GentFromAlaska From United States of America, joined Feb 2005, 2077 posts, RR: 2
Reply 15, posted (1 year 2 weeks 16 hours ago) and read 2041 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.

enilria From Canada, joined Feb 2008, 6137 posts, RR: 13
Reply 16, posted (1 year 2 weeks 16 hours ago) and read 2029 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 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.

LAXintl From United States of America, joined May 2000, 22077 posts, RR: 51
Reply 17, posted (1 year 2 weeks 16 hours ago) and read 1876 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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