TAG Aviation Settles with FAA over Control Matter

Even as FAA leaders were making commitments to National Air Transportation Association addressing concerns about operational control issues, TAG Aviation Holding and its TAG Aviation USA subsidiary agreed to a settlement with the Federal Aviation Administration, resolving FAA concerns over TAG USA’s relationship with FAA regulated aircraft operators. Terms of the settlement, in which the FAA will receive $10 million, include FAA acknowledgement that neither company admits to any wrongdoing. The settlement comes after FAA shut down AMI Charter with which TAG USA has a relationship. Related Story
“This settlement will allow TAG Aviation Holding to continue with the divestiture of TAG Aviation USA business interests,” said Robert Wells, CEO of Geneva-based TAG Aviation Holding. “We are disappointed in the unprecedented settlement amount demanded by the FAA, but felt it was in TAG USA’s and their clients’ best interests to put this matter to rest. TAG Aviation Holding remains proud of its nearly decade-long relationship with the TAG USA organization and their record of safe and successful business aviation activity in the U.S.”
Signing the settlement fully resolves all matters related to a recent FAA investigation of TAG Aviation USA’s relationship with AMI Jet Charter. TAG acted as a charter broker for AMI flights and owned a 49 percent equity interest in the company. Two payments amounting to the total settlement cost are to be paid by TAG by the end of this year.
For its part, the FAA has agreed not to delay consideration of requests to transfer aircraft currently under TAG USA’s management or previously operated by AMI Jet Charter to other certificated air carriers, as envisioned in the sale to Sentient. TAG Aviation Holding’s non-US subsidiaries have not been affected by the settlement with the FAA.
The revocation of AMI’s certificate prompted howls of protest from the National Business Aircraft Association and National Air Transportation Association, who noted that TAG USA and AMI Jet Charter have each built well-deserved reputations for the highest levels of excellence. In 2006, AMI was given the highest safety designation by a top industry research firm. It has never had an accident or incident in the nine years since it was founded.