Competition Authority of Kenya has ordered Fly 540 to stop advertising flights after it was established that the airline’s air operations certificate has expired.
In an update on Wednesday, November 16, the governing body also ordered the airline to refund money ticket claims by November 30.
“The Authority is also aware that your Air Operator Certificate (AOC) expired on 30th September, 2022 and accordingly you are not authorized to offer services
“Equally we are aware that you have suspended operations at the JKIA terminal 1D/terminal 2 and your offices at Watermark Business Park‚ Karen remain inaccessible to the affected public,” the authority said.
In a cease and desist order against the Fly540, the authority also highlighted some of the allegations raised against the airline.
The airline was put on the spot over alleged misleading information on its capacity to provide air transport services and the possibility of amending flight itinerary.
Fly540 was also slammed over short notice cancellation of flights and inordinate delays in refunding consumers.
“The ongoing investigations into the allegations against Fly540 are interrogating whether the airline has contravened section 55 of the Act outlawing false and misleading representation as well as section 56 on unconscionable conduct while undertaking to its commercial activities,” the authority noted.
In January 2021, Fly 540 hit the headlines after the International Air Transport Association (IATA) suspended the airline from using its automated ticketing system due to undisclosed reasons.
IATA indicated that the airline breached its Billing and Settlement Plan (BSP) rules under Resolution 850 and ordered all travel agents to cease issuing tickets and receiving payments on behalf of Fly540.
“IATA has suspended Fly540 with immediate effect, in accordance with the provisions in Resolution 850 ‘Attachment F’
“BSP travel agents must immediately suspend all ticketing activities on behalf of Fly540, including the use of automated systems for processing of refunds or other transactions on behalf of Fly540. BSP travel agents must immediately stop using Fly540’s name and numeric code as a ticketing airline,” read the notice by IATA.
The BSP is an electronic system operated by IATA that allows accredited travel agents to book tickets and manage the payments for airlines that have registered with the system.