What's Happening?
The Federal Aviation Administration (FAA) has grounded N-registered aircraft held in trust with Southern Aircraft Consultancy Inc (SACI) due to non-compliance with US citizenship requirements. The FAA determined that SACI's use of Non-Citizen Trust (NCT)
arrangements did not meet the necessary criteria for aircraft registration. As a result, the FAA has instructed SACI to surrender all affected registration certificates, effectively grounding the aircraft. This decision impacts aircraft registered through SACI, particularly affecting UK-based operators who must now seek alternative registration solutions.
Why It's Important?
This grounding has significant implications for aircraft owners and operators who relied on SACI for registration. The decision disrupts operations, potentially affecting business and leisure aviation activities. It highlights the complexities and legal requirements of aircraft registration, emphasizing the need for compliance with FAA regulations. The ruling may lead to increased scrutiny of similar trust arrangements, impacting the broader aviation industry. Aircraft owners face financial and operational challenges as they navigate re-registration processes to regain legal flying status.
What's Next?
Affected aircraft owners must explore re-registration options, either in the US with compliant structures or in other countries. The FAA has provided a 21-day window for SACI to surrender registration certificates, but the grounding is immediate. SACI plans to challenge the FAA's decision and is considering transferring its business to a US-based trust company to minimize disruption. The situation remains fluid, with potential legal and regulatory developments as stakeholders seek resolution.
