Judge orders purported new airline to stop selling tickets to Hawaii

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Judge orders purported new airline to stop selling tickets to Hawaii

HONOLULU (AP) =97 A judge has granted a request by Hawaii officials and=20
ordered a company claiming to be an airline not to sell any more=20
bargain-priced tickets between Honolulu and Los Angeles. The state obtained=
=20
a temporary restraining order against Mainline Airways after an=20
investigation found the company had not filed an application with the=20
Federal Aviation Administration to operate a charter airline and doesn't=20
have any planes, officials said Monday. "It takes more than a Web site to=20
start an airline," said Mark Recktenwald, director of the state Department=
=20
of Commerce and Consumer Affairs. "From the evidence gathered thus far it=20
does not appear that Mainline has much more than that." Circuit Court Judge=
=20
Elizabeth Hifo, who issued the temporary restraining order on Friday, will=
=20
hold a preliminary injunction hearing on the order and on a lawsuit against=
=20
the company next Monday.

Mainline Airways has been offering fares as low as $89, plus $30 in taxes=20
and fees, for one-way flights between Honolulu and Los Angeles starting=20
July 3. That is about half the lowest fares offered by established=20
airlines. The Web site was still operating on Monday, with a reservations=20
section inviting passengers to purchase nonrefundable tickets by credit=20
card. Luke R. Thompson, named in the court order and identified on a=20
company letterhead as Mainline's chief executive, responded to a request=20
for an interview by fax on Monday. The fax said he wasn't aware of the=20
court order and had not been notified. "Until I see the order, I must=20
assume that this is hype being perpetuated by competition," he wrote.

Thompson offered no background on himself or independent verification that=
=20
his company exists as an airline. He did not immediately return calls to a=
=20
number on the letterhead. Stephen Levins, spokesman for the state Office of=
=20
Consumer Protection, said the state has tried to notify Thompson, but he=20
was unaware whether he had received the actual order.
Levins said that although the company claims to operate from Wellesley,=20
Mass., officials believe Thompson is located in Yardley, Pa. The Secretary=
=20
of State's office in Massachusetts does not list the airline as a licensed=
=20
state business. Thompson said in his fax that he is now located in=20
Henderson, Nev. The fax listed a Henderson street address with a telephone=
=20
number in New Jersey and a fax number in New York City.

Thompson, in the fax, said his company's plans to file necessary papers=20
with the Department of Transportation have been hampered by other=20
companies, which he said are moving "VERY slow and the fact that we drive a=
=20
hard bargain makes it even slower." The fax says transactions done on his=20
Web site are considered "pre-sale" reservations, and that customers will=20
receive credit on their cards if the company is unable to honor their=20
reservations. But the company has violated an FAA regulation prohibiting=20
anyone from advertising or offering flights without the proper=20
authorization from the FAA, said Tweet Coleman, the agency's Pacific=20
representative. "We were aware that they were only a Web site, that they=20
are not an airline," she said.

Levins said his office has received calls from some of the people who have=
=20
already purchased tickets from the Web site. It was unclear how many people=
=20
had used the site. The company claims to operate "an exclusive fleet of=20
state-of-the-art, Boeing commercial aircraft." But the state has no=20
information that Mainline even has an airplane, Levins said. Thompson said=
=20
that is because his company plans to subcontract the flights. The company=20
also appears to have no authority to operate out of Los Angeles or=20
Honolulu, and has no gates, desks or employees at either airport, Levins=
 said.
The state has also filed a lawsuit charging Mainline and Thompson with=20
engaging in unfair or deceptive practices by misrepresenting their=20
authority to sell tickets, their ability to fly and their carrier status.


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