FAA order scrambles AMI Jet Charters

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FAA order scrambles charters

Silicon Valley / San Jose Business Journal - by Laura Counts

http://c.bizjournals.com/ct/rc/5478...es/albuquerque/stories/2007/10/22/focus1.html

An emergency order by the Federal Aviation Administration to ground one of the nation's largest corporate jet charter companies, AMI Jet Charter of Burlingame, has shocked the tight-knit, multi-layered industry.
The unusual FAA move earlier this month is unlikely to cause much inconvenience for corporate and celebrity travelers who rely on charters, since a maze of about 900 companies are competing for their business. But it has left the future of AMI's 346 employees up in the air, clipped the wings of its 80 jets-for-hire, and sent hundreds of companies scrambling to make sure their operations meet regulatory muster.
"It's a bit as if the FAA shut down Southwest Airlines -- one of the safest and most respected out there -- without much warning," said James K. Coyne, president of the National Air Transportation Association, a lobbyist group. "To call this an emergency is ludicrous, and it's created a lot of confusion."
The move is part of a stepped-up effort by the FAA to ensure that the complex web of charter operations is operating transparently, and marks the first time the agency has revoked the right to fly due to ownership and control issues. The government contends that AMI was, essentially, a front company for its minority owner, TAG Aviation USA -- a Burlingame-based unit of TAG Aviation Holding S.A. of Switzerland. Foreign companies are prohibited from operating as air carriers in the U.S. The two companies engaged "in a scheme and/or deceptive practice" to make it appear AMI was in control, violating some safety rules in the process, according to the 19-page revocation order.

 

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"It's a bit as if the FAA shut down Southwest Airlines -- one of the safest and most respected out there -- without much warning," said James K. Coyne, president of the National Air Transportation Association, a lobbyist group. "To call this an emergency is ludicrous, and it's created a lot of confusion."

So the shutdown of a company who doesn't monitor crew duty/rest times or when they do it's done wrong, and doesn't know when aircraft operated under its certificate are in the air is confusing? It was almost comical reading the suspension letter. They couldn't produce employment, drug testing, NDR, PRIA, or training records for some employees. Not to mention people not authorized in their ops specs were exercising operation control over flights. Sounds like a slam dunk to me. If you haven't seen it yet read the order of suspension here:

http://www.ainalerts.com/ainalerts/alertimages/AMI_Jet_FAA_suspension_notice.doc