FAA Issues Temporary Certificates for Grounded SACI Aircraft

The United States Federal Aviation Administration has begun issuing temporary certificates of registration for aircraft previously registered through Southern Aircraft Consultancy Inc Trustee, a move that allows hundreds of grounded aircraft to return to service while permanent registrations are processed. The action follows regulatory findings that invalidated the trust’s registrations and temporarily sidelined a large portion of the affected fleet. The FAA’s action affects privately owned aircraft and does not involve commercial airline fleets.

The issue arose after the Federal Aviation Administration determined that Southern Aircraft Consultancy Inc., acting as trustee, did not meet U.S. citizenship requirements at the time the aircraft were registered. As a result, all registrations held through the trust were deemed invalid, leading to the grounding of more than 600 aircraft in mid-January.

SACI, which had been widely used by aircraft owners to register aircraft in the United States, was recently acquired by Valiair. The ownership change triggered a regulatory review, during which the FAA concluded that the trust structure no longer complied with statutory requirements governing U.S.-registered aircraft. Under federal law, aircraft registered in the United States must meet specific citizenship and control criteria, particularly when trustees or beneficial owners are based outside the country.

To mitigate operational disruption, the FAA has now started issuing temporary certificates of registration to affected operators. These certificates allow aircraft to resume flying legally while the agency completes the review and issuance of new, compliant registrations. Industry sources say the temporary approvals are critical for business aviation operators, flight schools, and special mission aircraft owners who were forced to suspend operations with little notice.

The FAA said the temporary certificates are intended as an interim measure and do not replace the requirement for full re-registration. Aircraft owners are still required to submit updated documentation demonstrating compliance with U.S. registration rules, including revised trust arrangements or alternative ownership structures where necessary. The agency expects the remaining aircraft previously registered through SACI to be fully re-registered over the coming weeks, assuming documentation is in order.

The grounding highlighted the complexity of aircraft registration trusts and the risks associated with regulatory changes or ownership transitions. Many operators rely on trusts to simplify cross-border ownership, financing, and operational flexibility, particularly in business aviation. However, the SACI case underscores the importance of ensuring that trust structures remain fully compliant with evolving regulatory interpretations.

For Valiair, the priority has been stabilizing the situation and working with both the FAA and aircraft owners to restore normal operations. The company has indicated that it is cooperating closely with regulators to resolve outstanding issues and facilitate the transition to compliant registration arrangements.

The FAA’s decision to issue temporary certificates provides immediate relief to operators, but it also serves as a reminder that aircraft registration compliance is subject to strict oversight. As the re-registration process continues, industry observers expect heightened scrutiny of trustee-based registrations, particularly those involving foreign ownership or control elements.

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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com