Revokes Air Carrier Certificate of American Flight Group, Inc.
and Fines Medway Air Ambulance $1 Million
The FAA is on the
warpath, folks, and for reportedly good reason -- having revoked
one ACC and fined another a million bucks.
The FAA has revoked the air carrier certificate of American
Flight Group, Inc. (AFG), based in Annapolis, Maryland. In a
related case, the FAA and Medway Air Ambulance, Inc. of
Lawrenceville, Georgia have reached a settlement agreement that
calls for Medway to pay a civil penalty of $1,000,000, for
operating as an air carrier without an air carrier certificate, in
violation of the Federal Aviation Regulations.
In an Emergency Order of Revocation issued to AFG on May 19,
2006, the FAA determined that AFG allowed other companies that did
not hold air carrier certificates or did not have sufficient
authority under their own certificates to operate flights for hire
under the AFG certificate. The FAA found that AFG permitted these
other companies to list their aircraft on AFG’s operations
specifications for a fixed monthly fee. These other companies, not
AFG, then exercised operational control over the flights and the
flight crewmembers, in violation of the Federal Aviation
Regulations.
Although AFG appealed the revocation order to the National
Transportation Safety Board, AFG withdrew that appeal, which means
that the order issued by the FAA is final.
The settlement with
Medway was reached after the FAA issued an Emergency Cease and
Desist Order requiring the company to cease its illegal operations.
The FAA determined that Medway entered into agreements with AFG
that allowed Medway's aircraft to operate under AFG's certificate
for a monthly fee. However, Medway, not AFG, was exercising
operational control over those flights.
“These cases send a strong message that the FAA strictly
enforces its safety regulations and will take action in situations
where an air carrier is engaged in the franchising or rental of its
air carrier certificate,” said FAA Administrator Marion C.
Blakey.
These FAA actions resulted from a continuing 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 —
that permitted uncertificated companies to operate under their
certificates when the certificate holder did not exercise
operational control over the flights.