*EPF507 10/18/2002
Text: Transportation Department Fines Korean Airline For Unauthorized Services
(Penalty of $750,000 largest ever assessed by DOT) (400)

The Department of Transportation (DOT) announced October 17 the largest penalty assessment ever to an air carrier for providing unauthorized air services.

The DOT assessed a civil penalty of $750,000 against Korean carrier Asiana Airlines for servicing airline passengers flying between destinations in America.

U.S. civil aviation law prohibits foreign airlines from carrying passengers between U.S. points unless the DOT grants specific authorization for such flights.

According to the DOT news release, this is the second such violation by the Korea-based airline.

Following is the text of the October 17 Department of Transportation news release:

(begin text)

Department of Transportation
Thursday, October 17, 2002

DOT Assesses Penalty Against Asiana For Unauthorized Air Services

The U.S. Department of Transportation (DOT) today assessed a civil penalty against the Korean carrier Asiana Airlines for providing passenger service between U.S. destinations, a practice referred to as cabotage which is banned by law.

Asiana was assessed a civil penalty of $750,000 for the violation, the largest penalty ever assessed by the department for unauthorized service, in part because the carrier violated an existing order to refrain from unlawful cabotage operations.

Half of the penalty will be forgiven if Asiana commits no similar violations within three years. DOT's Aviation Enforcement Office found that Asiana, between July 1998 and May 2002, unlawfully carried a substantial number of passengers between Guam and Saipan - both within the United States - and a number of cities in the continental United States with connections in Seoul, Korea.

Asiana also advertised services in these markets on the Internet, in newspaper ads and through travel agents.

According to U.S. law, it is illegal for foreign airlines to carry passengers between U.S. points unless the department grants specific authorization.

This is the second penalty against Asiana for violating U.S. cabotage laws. In July 1998, the department found that the carrier was offering cargo shipments on its flights between Guam and Seattle, also with a connection in Seoul. Asiana, without admitting or denying the violations, consented to the civil penalty and agreed to refrain from future violations.

At all times in this matter, Asiana exhibited a cooperative and compliant attitude and has sought advice from the department to ensure that its future operations do not violate the cabotage prohibition. Asiana has also undertaken remedial steps to prevent future violations.

DOT is continuing to investigate several other carriers for cabotage violations in the same markets.

DOT's consent order may be obtained via the Internet at http://dms.dot.gov/reports/reports_aviation.asp#notices.

(end text)

(Distributed by the Office of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)

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