FAA Grounds 800 Aircraft Over Invalid Registrations Linked to Trustee

The Federal Aviation Administration has grounded roughly 800 aircraft worldwide after determining that their U.S. registrations are invalid, citing violations of citizenship requirements by a registry trustee. The affected aircraft include 52 turboprops, business jets, and turbine helicopters, many of which are operated in business aviation and specialized commercial roles.

According to the FAA, all aircraft registered through Southern Aircraft Consultancy Inc. (SACI) immediately lost their certificates of registration after the agency concluded the company did not meet the legal requirements to act as a U.S. aircraft owner trustee. SACI, which is based in the United Kingdom, has been instructed to surrender all registration certificates within 21 days.

Under U.S. law, aircraft may be registered with the FAA through trust agreements for both U.S. citizens and foreign nationals. However, the FAA emphasized that the trustee itself must be either a U.S. citizen or a U.S. resident alien. In this case, the agency said SACI failed to meet those criteria when it submitted the registration applications, rendering the registrations invalid.

“The invalid certificates of aircraft registration will result in the immediate grounding of all aircraft registered to SACI,” the FAA said in its notice. The grounding took effect immediately, meaning affected aircraft cannot legally operate until new registration arrangements are completed.

To restore legal operating status, aircraft owners must re-register their aircraft, either through another country’s aviation registry or by submitting a new application to the FAA under a compliant ownership or trust structure. The FAA said applicants must provide proof of ownership and pay the standard $5 registration fee.

Once a new application is filed, owners may receive temporary authority to operate within the United States while the FAA processes the registration. However, the agency stressed that this temporary authority does not permit international operations.

For operators that need to fly outside the U.S., the FAA said applicants can submit a declaration of international operations at the time of re-registration. This allows the agency to expedite processing so aircraft can regain international operating privileges more quickly, provided all documentation is in order.

The action highlights the FAA’s increased scrutiny of aircraft ownership and registration structures, particularly those involving trusts used by foreign owners to access the U.S. registry. The FAA has signaled in recent years that it intends to more aggressively enforce citizenship and compliance rules to ensure transparency, accountability, and alignment with international aviation standards.

For business jet and helicopter operators, the grounding represents a significant operational and financial disruption, especially for aircraft engaged in charter, corporate transport, or specialized missions. Aviation attorneys and registry specialists say affected owners should act quickly to avoid prolonged downtime and potential regulatory penalties.

The FAA said it is continuing to review trustee-based registrations and urged aircraft owners to verify that their registration arrangements fully comply with U.S. citizenship and regulatory requirements to prevent similar enforcement actions in the future.

Sources: AirGuide Business airguide.info, bing.com, ainonline.com