Hahn Air Lines GmbH, a German-based travel company, and its U.S. subsidiary, Hahn Air USA Inc., have reached a significant Travel Fee Settlement, agreeing to pay $26.8 million to resolve allegations of False Claims Act violations. The allegations center around the company’s failure to remit mandatory travel fees collected from airline passengers to the United States government.
Hahn Air operates a global electronic ticketing system, enabling travel agencies to issue tickets for various airlines. As part of this service, Hahn Air collects certain mandatory travel fees, some of which are legally owed to the U.S. government.
The settlement addresses accusations that from 2012 to 2018, Hahn Air knowingly avoided paying specific U.S. travel fees it had collected from passengers. These unpaid fees included critical charges such as Animal and Plant Health Inspection Service Agricultural Quarantine and Inspection User Fees (USDA), Customs User Fees and Immigration User Fees (CBP), and Passenger Civil Aviation Security Service Fees (Transportation Security Administration). These fees are essential for maintaining various aspects of safety, security, and public health related to air travel within and into the United States.
“Companies profiting from air travel in the United States are legally obligated to contribute their fair share towards the costs associated with ensuring safe and secure travel,” stated Principal Deputy Assistant Attorney General Brian M. Boynton, of the Justice Department’s Civil Division. “This travel fee settlement underscores our commitment to protecting taxpayer dollars and holding accountable those who fail to remit their legally mandated payments to the United States.”
U.S. Attorney Matthew M. Graves for the District of Columbia emphasized the severity of such actions, stating, “Companies cannot misuse their position to retain government taxes and fees that they collect on behalf of their customers for their own financial gain. This settlement serves as a clear warning that intentional disregard for these obligations will be met with significant penalties.”
Inspector General Joseph V. Cuffari of the Department of Homeland Security (DHS) highlighted the collaborative effort behind the settlement, “This multi-million dollar travel fee settlement is a testament to the effective partnership between the Justice Department’s Civil Division and our law enforcement partners. It demonstrates our collective resolve to ensure corporations are held responsible when they fail to adhere to the law.”
Acting Special Agent in Charge Charmeka Parker of the USDA Office of the Inspector General (OIG) added, “Participation in Government travel programs is a privilege that demands integrity and compliance. This resolution emphasizes our dedication to safeguarding the interests of the United States and the integrity of government processes. We, alongside the Department of Justice and our law enforcement partners, are committed to investigating and holding accountable those who attempt to defraud U.S. Government programs.”
The case was initiated under the False Claims Act’s qui tam provision, allowing whistleblowers to file lawsuits on behalf of the government and share in the recovery. In this case, the whistleblower will receive approximately $4.8 million from the travel fee settlement. The case is formally titled U.S. ex rel. MGSNOVA Advisory, LLC v. Hahn Air, Inc. et al, No. 1:15‐cv‐02184 (D.D.C.).
This successful resolution was a result of coordinated efforts from the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the District of Columbia, with crucial assistance from the Offices of Inspector General for the DHS and USDA.
Trial Attorney Richard W. Hagner of the Civil Division and Assistant U.S. Attorney Darrell Valdez for the District of Columbia were key figures in handling this matter.
It is important to note that “the claims resolved by the travel fee settlement are allegations only, and there has been no determination of liability.”
