The US Department of Transportation (DOT) has issued significant fines to Lufthansa and Swiss International Air Lines (SWISS).
The fines imposed on 30 December 2024 involved flights which carried United Airlines’ designator code. These flights were operated in regions where the Federal Aviation Administration (FAA) has prohibited US operators from flying. Lufthansa was fined $220,000, while SWISS received a $200,000 penalty.
This action stems from investigations by the DOT’s Office of Aviation Consumer Protection (OACP). This revealed that both airlines operated numerous flights in breach of requirements. They operated under the United Airlines code within airspace restricted by the FAA for US carriers.
These flights occurred between March 2022 and April 2024 for Lufthansa and between February 2022 and March 2024 for Swiss.
Why Foreign Carriers Are Subject to US Regulations
A key point to understand is why foreign carriers like Lufthansa and SWISS are subject to US FAA regulations in this context.
Code-Sharing Agreements
These airlines were operating under a code-sharing agreement with United Airlines. In such agreements, an airline sells tickets on another airline’s flights, often using its own flight number (designator code).
Operational Control
While the foreign carrier operates the aircraft, the code-sharing agreement essentially places the flight under the umbrella of the US airline’s operational control. This means the flight is considered a “US operation” for regulatory purposes, even though a foreign carrier is conducting the actual flight.
Safety and Oversight
The FAA has the authority to regulate US air carriers, including those operating under code-sharing agreements. This ensures safety standards and consumer protection for passengers traveling on flights marketed by US airlines, regardless of which carrier actually operates the aircraft.
Violations and Consequences
By operating flights in prohibited airspace under the United Airlines code, both Lufthansa and Swiss violated the conditions of their operating authority. This constitutes air transportation without the proper authorization from the DOT.
Cease and Desist Order
In addition to the fines, the DOT has issued a cease and desist order to both airlines, prohibiting them from engaging in similar violations in the future. This order emphasizes the importance of adhering to FAA regulations and respecting flight restrictions.
Impact on Consumers
While these fines primarily target the airlines, the incident highlights the complexities of international air travel and the importance of regulatory oversight.
It underscores the DOT’s commitment to ensuring the safety and protection of air travelers, even when flights are operated by foreign carriers under agreements with US airlines.
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