I L L E G A L C H A R T E R
partner at law firm Shackelford, Bowen,
McKinley & Norton, “Since 2015 FAA has a
new compliance program, where it identifies
these groups, educates them by providing
counselling and directs them to resources that
can help them restructure their operation so
they comply with the regulations. This allows the
organization to focus its energy on those few at the
criminal end of the spectrum.”
When it does take enforcement action, the FAA has
several approaches. Often it starts by taking action against
the pilot by either suspending or revoking their certificates
depending on the case. For operators there are large civil
penalties. These can take years to be issued, but when
the amounts can be high. In June 2018 the FAA issued its
largest ever fine to a private company, US$3.3 million to The
Hinman Co in Michigan. The company had been operating
two aircraft on a timeshare basis through a subsidiary,
Hincojet, without holding the required operator certificate for
the flights performed.
“That case sent shock waves through the system. They
had to pay a lot of cash and had the FAA looking over their
shoulder,” says Norton.
A major part of the industry effort around gray charter
is communication – providing resources to educate
pilots, operators and the public about what makes a
charter illegal and giving people better ways to report
shady activity and highlighting the consequences of
ignoring the rules. NATA has been doing a lot in this
area and created an Illegal Charter Taskforce in 2018.
It has a section of its website dedicated to information
on illegal chartering, a hotline for reporting issues and
Above: Greg Reigel, partner at
law firm Shackelford, Bowen,
McKinley & Norton
Below: Customers are being
warned that illegally chartered
flights may appear legitimate
but aren’t properly certified
26 | BU S INE S S A I R P O RT INT E RNAT I ONA L A P R I L 2 0 2 0
also runs several events aimed at educating aircraft owners,
operators and pilots about illegal charter.
The FAA has also been providing new educational
opportunities to its inspectors – those on the ground
responsible for oversight. “That’s really critical because
when you start looking at some of these leasing or aircraft
sharing structures, they can be very complex,” says Reigel.
A combined effort
Waguespack believes that trade associations including the
EBAA and ACC are “stepping up” and that the best way
to eliminate gray charter is for the industry to work closely
with regulators. “We’re meeting with associations around
the world to discuss what we can do about this problem,”
he says.
“There are great moves amongst the industry
associations to combine efforts,” says Edwards. “As an
industry we’re going to get far more time and attention from
the regulators to help us do something about it.
“I don’t think we’ll ever completely stamp out
illegal chartering – as with any law, there are
always people looking for the loopholes to
get around legislation.
“But by educating everyone involved
and being consistent with our message
it will reduce. Anything we can do to
ensure that the traveling public is
safer, that our legal industry and the
livelihoods of the thousands of people
in it is protected has to be welcomed.
“One less illegal flight has to be a
win for all of us.”
Hinman Co in
Michigan was fined
US$3.3 million in 2018
for illegally operating
two aircraft, the
largest such fine ever
issued in the USA