AMI Jet Charter certificate suspended

[oiltycoon]

http://www.aviationweek.com/aw/gene...eadline=AMI Jet Charter Certificate Suspended

 

[oiltycoon]

From AIN:

October 05, 2007
https://owa011.intermedia.net/exchw...ww.ainonline.com/news/charter-and-fractional/
The FAA suspended AMI Jet Charter’s Part 135 certificate yesterday on an emergency basis, citing many problems with the Burlingame, Calif. charter firm’s operational control of its charter flights. AMI Jet Charter is partially owned by TAG Aviation USA, which brokers charters to AMI Jet Charter and other charter operators on behalf of its management customers. Forty-eight of TAG’s 120 managed aircraft are on AMI Jet’s charter certificate, and these airplanes and 30 additional AMI charter aircraft are not able to fly charters while this suspension is in effect.

The emergency suspension order lists multiple violations of FAA regulations, including: AMI has failed to adequately determine flight- and duty-time limitations and rest requirements before a crewmember is assigned a Part 135 flight; people not authorized by AMI’s operations specifications have been designating the pilot-in-command and, when required, the second-in-command for Part 135 flights; and people not designated and authorized by AMI’s operations specifications have been actually exercising operational control over Part 135 operations.

AMI Jet acknowledged that the FAA has been reviewing the company’s operations for the past seven months “as part of the recently revised A008 Operational Control Specification.” Before suspending AMI’s charter certificate yesterday, the FAA would only confirm that it was investigating AMI, but would not disclose the nature of the investigation. AMI Jet Charter CEO Chuck McLeran told AIN previously that the company was being scrutinized by the FAA and that it had modified its operational control procedures to make sure that it was in compliance with the new A008 operations specifications.

In a press release issued late last night, McLeran said AMI Jet Charter will “work with the FAA so we can address these issues…working with the FAA, we believe these issues can be resolved at the earliest possible time.” AMI Jet holds a platinum rating by charter auditor ARG/US and has an “impeccable safety record,” according to McLeran.

The National Air Transportation Association represents charter operators and has been working with the FAA to clarify operational control issues, and association president James Coyne believes that the FAA is using the emergency suspension of AMI Jet’s charter certificate as an example to the charter industry. “It appears to me that AMI was picked by the FAA to be its first subject of strict examination on this,” he said. “No one is alleging issues of underlying safety.”

The FAA’s suspension notice cites flights as recently as October 1 and 2. The FAA asked AMI Jet to show “how the aircraft and the aircraft pilots met the requirements of Part 135” for flights in six airplanes. According to the suspension notice, “AMI was unable to demonstrate that the flights referenced [on those dates] were in compliance; specifically, AMI failed to produce or timely produce records related to pilot training, flight and duty, and rest records and weight and balance records.”

AMI Jet has 10 days to appeal the suspension and also can petition the FAA to review the determination that an emergency exists.

 

[atpcliff]

Hi!

And now it's revoked.

http://www.ainonline.com/news/singl...-135-certificate/?no_cache=1&cHash=61b839ea8c

FAA Revokes AMI Jet Charter’s 135 Certificate



October 13, 2007
Charter



http://www.ainonline.com/news/singl...certificate/news/single-news-page/?no_cache=1Last night, the FAA revoked the charter certificate of AMI Jet Charter in a letter hand-delivered to AMI president Don Hitch. The letter outlines the FAA’s determination “that an emergency exists related to safety in air commerce and that immediate action to revoke AMI Jet Charter, Inc.’s Air Carrier Certificate is required.” This move follows the FAA’s October 4 suspension of AMI’s charter certificate. AMI can submit an appeal of the revocation. If the revocation withstands any appeal process, it is permanent, and AMI would have to reapply for a new charter certificate.

The key issue that led to the revocation of AMI’s charter certificate is control of the company by a foreign entity. Switzerland-based TAG Holdings owns management firm TAG Aviation USA, which itself owns 49 percent of AMI Jet Charter. In a September 2005 consent order, the U.S. Department of Transportation ordered AMI to “cease and desist” from violations of regulations regarding “interstate and foreign air transportation while it was under the actual control of foreign interests.” According to the FAA’s Emergency Order of Revocation, “AMI and TAG knowingly, intentionally, and willfully engaged in a scheme and/or deceptive practice to make it appear to federal regulatory entities, including the FAA, as if AMI remained in control, including operational control, when in fact TAG exercised control of passenger-carrying flights ostensibly operated under the authority of AMI’s air carrier certificate.”

The FAA began a detailed investigation into AMI in March, citing operational control issues as the main area of focus. In a letter sent to TAG on September 17, the FAA wrote: “Our investigation has centered on whether AMIJC has surrendered operational control by causing, permitting, or allowing uncertificated entities, including TAG Aviation USA (a foreign entity ineligible to operate air carrier flights) and various ‘charter ally’ companies, to exercise such control.”

To support the FAA claims that TAG was exercising operational control over AMI flights, the revocation letter cites instances where the management lines between TAG Aviation USA and AMI were blurred, including TAG managers having signature authority on AMI operating and payroll accounts and being responsible for AMI Part 135 expenditures; TAG holding the fleet insurance policy for AMI aircraft and TAG being the first named insured under that policy; the insurance policy requiring that TAG or its designee approve all pilots in AMI’s Part 135 flights; TAG paying salaries for most AMI employees and providing benefits for all AMI employees; and AMI carrying only 22 to 37 employees on its payroll versus more than 700 on TAG’s payroll.

Since AMI was founded in 1998, according to the FAA, “AMI failed to maintain operational control of its aircraft on thousands of passenger-carrying flights for compensation or hire.” Instead, “TAG and/or the aircraft owners exercised operational control over flights for compensation or hire that purportedly were conducted under the authority of AMI’s air carrier certificate.”

The FAA concluded that revocation is necessary because AMI “does not have operational control of the flights purportedly operated under the authority of its certificate, a situation that poses an unacceptable risk to safety in air commerce. Under these circumstances, the immediate protection of the public is paramount.”

cliff
ABQ