The Federal Aviation Administration (FAA) revoked the air carrier certificate of charter operator American Flight Group (AFG). In a related action, the agency fined Medway Air Ambulance $1 million for operating as an air carrier without an air carrier certificate.

The FAA said Annapolis, Md-based AFG allowed other companies that did not have air carrier certificates or did not have authority to operate flights for hire, to operate flights under the AFG certificate. The company permitted these other companies, including Medway, to list their aircraft on AFG's operations specifications for a fixed monthly fee, despite the fact that the other companies exercised operational control over the flights and crew. AFG withdrew its appeal of the action made to the National Transportation Safety Board, rendering the FAA decision final.

In its settlement with Medway, FAA required the Lawrenceville, Ga-based air ambulance to cease its illegal operations associated with AFG. The actions resulted from the agency's national review and investigation of air taxi operational control issues. Since last spring the FAA has taken enforcement actions against two other air carriers - Darby Aviation and American Air Network.