The FAA has revoked the air carrier certificate of American Flight Group, Inc. (AFG). In a related case, the FAA and Medway Air Ambulance have reached a settlement agreement that calls for Medway to pay a civil penalty of $1,000,000, for operating as an air carrier without an air carrier certificate, in violation of the Federal Aviation Regulations. In an Emergency Order of Revocation issued to AFG on May 19, 2006, the FAA determined that AFG allowed other companies that did not hold air carrier certificates or did not have sufficient authority under their own certificates to operate flights for hire under the AFG certificate. The FAA found that AFG permitted these other companies to list their aircraft on AFG`s operations specifications for a fixed monthly fee. These other companies, not AFG, then exercised operational control over the flights and the flight crewmembers, in violation of the Federal Aviation Regulations.
Although AFG appealed the revocation order to the National Transportation Safety Board, AFG withdrew that appeal, which means that the order issued by the FAA is final.
The settlement with Medway was reached after the FAA issued an Emergency Cease and Desist Order requiring the company to cease its illegal operations. The FAA determined that Medway entered into agreements with AFG that allowed Medway’s aircraft to operate under AFG’s certificate for a monthly fee. However, Medway, not AFG, was exercising operational control over those flights. (FAA)