The Debacle Story Continues

In November of 2007 I posted an article, The General Aviation Tsunami.  That story was only the beginning of the disaster to come.  Hundreds of jobs were lost and over $100 million of invested capital became worthless.  Two highly regarded companies, TAG Aviation USA and AMI Jet Charter, were decimated by one of the best examples of over regulation and malicious prosecution by the Federal Government.  Supposedly the revocation of the operating certificate of AMIJC, a company with a perfect safety record for 10 years, was done in the name of safety.

Recently, Bill Garvey, editor of Business & Commercial Aviation magazine, tells the story in an excellent article, Lessons From a Debacle.  Bill says, “Now that emotions have calmed slightly, it’s time to consider what it all meant.”

I was reminded again this week about the injustice of the FAA when I read a story in the Wall Street Journal about the FAA’s plan to fine American Eagle, a unit of American Airlines, $2.9 million for a safety violation involving over 1,100 flights.  The FAA fined AMIJC $10 million, the largest fine ever, for ceding operational control of their charter flights to a foreign corporation who was an AMIJC minority investor. That investor was TAG Aviation USA, a highly experienced aircraft management company owned by a Swiss organization.  This fine was paid in full.  It is highly unlikely American Eagle will pay anything close to $2.9 million as fines like this are always appealed and substantially reduced.  AMIJC never had that chance – when they tried, the FAA simply revoked their certificate, laying waste to the company’s future.

My emotions haven’t calmed, even slightly.