ISince 2003, CSI has been under contract with the General Services Administration (GSA) to broker air-charter service for various federal agencies. On March 10, 2009, CSI won a competitive bid to renew its status as a GSA contractor through 2014. A few days prior, on March 6, the Department of Transportation (DOT) sent CSI a letter requesting information to determine whether the company was engaging in “indirect air transportation” without the certificate of authority required by the Federal Aviation Act, 49 U.S.C. § 41101(a).
After the company provided the requested information, DOT sent another letter, stating that it had “review[ed] the information submitted by CSI” and “consult[ed] with GSA.” Letter from Samuel Podberesky, Assistant Gen. Counsel for Aviation Enforcement Proceedings, DOT, to David M. Hernandez, Counsel for CSI (Oct. 16, 2009) [hereinafter Oct. 2009 Letter to CSI]. The letter then declared:
Based on this information, CSI has been acting as an unauthorized indirect air carrier in violation of section 41101 with respect to business transacted via its GSA schedule listing. Violations of section 41101 also constitute unfair and deceptive practices and unfair methods of competition in violation of 49 U.S.C. § 41712.
Violations of these provisions subject CSI and its principals to the assessment of civil penalties . . . of up to $27,500 for each violation. Each day such violation continues is a separate violation.
. . . .
. . . Accordingly, CSI is warned to cease and desist from any further activity that would result in it engaging in indirect air transportation. If CSI immediately ceases from entering into new contracts pursuant to the GSA schedule, and ceases all its activities governed by existing GSA contracts within 180 days from the date of this letter, we will refrain from taking enforcement action regarding its past violations as discussed above.Id.
Judge(s): Thomas Griffith
Jurisdiction: U.S. Court of Appeals, D.C. Circuit
Related Categories: Administrative Law
|Circuit Court Judge(s)|
|Petitioner Lawyer(s)||Petitioner Law Firm(s)|
|Respondent Lawyer(s)||Respondent Law Firm(s)|
|Kristen Limarzi||U.S. Department of Justice|
|Robert Nicholson||U.S. Department of Justice|
|Paul Geier||U.S. Department of Transportation|
|Peter Plocki||U.S. Department of Transportation|
|Mary Withum||U.S. Department of Transportation|