TAG Aviation Holding and its TAG Aviation USA subsidiary today
agreed to a settlement with the Federal Aviation Administration (FAA),
resolving FAA concerns over TAG USA's relationship with FAA regulated
aircraft operators. Terms of the settlement, in which the FAA will
receive $10 million, include FAA acknowledgement that neither company
admits to any wrongdoing.
"This settlement will allow TAG Aviation Holding to continue with
the divestiture of TAG Aviation USA business interests," said Robert
Wells, CEO of Geneva-based TAG Aviation Holding. "We are disappointed
in the unprecedented settlement amount demanded by the FAA, but felt
it was in TAG USA's and their clients' best interests to put this
matter to rest. TAG Aviation Holding remains proud of its nearly
decade-long relationship with the TAG USA organization and their
record of safe and successful business aviation activity in the U.S."
Signing the settlement fully resolves all matters related to a
recent FAA investigation of TAG Aviation USA's relationship with AMI
Jet Charter. TAG acted as a charter broker for AMI flights and owned a
49% equity interest in the company. Two payments amounting to the
total settlement cost are to be paid by TAG by the end of this year.
For its part, the FAA has agreed not to delay consideration of
requests to transfer aircraft currently under TAG USA's management or
previously operated by AMI Jet Charter to other certificated air
carriers, as envisioned in the sale to Sentient. TAG Aviation
Holding's non-US subsidiaries have not been affected by today's
settlement with the FAA.
Beginning in 1998, TAG USA and AMI Jet Charter have each built a
well-deserved reputation for the highest levels of excellence, with a
primary focus on safety and regulatory compliance from both companies.
In 2006, AMI was given the highest safety designation by a top
industry research firm. It has never had an accident or incident in
the nine years since it was founded.
About TAG Aviation Holding and TAG Aviation USA
TAG Aviation is a network of companies providing worldwide
personal air travel solutions. TAG Aviation USA, TAG Aviation SA, TAG
Aviation (UK) Ltd., TAG Aviation Espana, TAG Farnborough Airport (UK)
and TAG Aviation Asia are subsidiaries of TAG Aviation Holding S.A., a
privately held company based in Geneva, Switzerland. More information
is available at www.tagaviation.com.
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