FAA Orders Southern Aircraft Consultancy to Surrender All Aircraft Registrations

The Federal Aviation Administration (FAA) officially notified Southern Aircraft Consultancy Inc. (SACI) that all its aircraft registration certificates are invalid. This decision was announced on January 13, 2026. The FAA instructed SACI to immediately surrender all registration certificates to the agency.

This regulatory action stems from SACI’s violations of U.S. citizenship requirements. The company was found non-compliant when it submitted the original registration applications.

Immediate Grounding and Operational Impact

The invalidation of these Certificates of Aircraft Registration has a severe consequence. It results in the immediate grounding of all aircraft registered to SACI. Industry reports indicate this ruling affects over 700 US-registered aircraft. The grounded fleet includes turboprops, business jets, and turbine helicopters.

Aircraft owners worldwide are impacted by this ruling. The UK Civil Aviation Authority (CAA) confirmed the grounding for UK-based operators. The lack of a valid Certificate of Registration may also invalidate mandatory aircraft insurance.

SACI, a UK-based trust services provider, facilitated US aircraft registration. They used trust agreements for both US citizens and foreign nationals. Under US law, an aircraft trustee must be a U.S. citizen or a resident alien. The FAA determined SACI did not meet these specific U.S. citizenship requirements.

Regulatory Background and Compliance

US law requires aircraft owners to be United States citizens, with limited exceptions. The aircraft registration trust structure is a common exception. It allows non-US citizens to register aircraft on the US registry (N-number). This is often done to leverage the US registry's broad international acceptance.

However, the trustee holding legal title must meet strict citizenship criteria. Specifically, 14 CFR § 47.7 requires each trustee to be a U.S. citizen or resident alien. The FAA's action against SACI is not against the use of trusts generally. Instead, it targets SACI’s failure to meet the trustee eligibility requirements.

The FAA has given SACI 21 days from the notification date to surrender all registration certificates.

Path Forward for Affected Owners

Owners of affected aircraft must take immediate action to regain legal operating authority. They have two primary options:

• Re-register in the U.S.: Submit a new Aircraft Registration Application to the FAA. This must include evidence of ownership and use a compliant U.S. citizen entity or owner trustee.
• Register in a Foreign Country: Move the aircraft to another country’s aircraft registry.

The FAA offers temporary authority for domestic operation upon re-application. However, this temporary authority does not cover flights outside the U.S. Owners operating internationally can request expedited processing. This is done by submitting a Declaration of International Operations (DIO).

This enforcement action highlights the Federal Aviation Administration enforcement focus. It underscores the critical importance of strict compliance with aircraft ownership requirements. All entities using non-citizen trust arrangements must ensure their trustees meet the legal standard. The violations of U.S. citizenship rules carry severe consequences, including the immediate N-number registration cancellation and grounding of aircraft. The full text of the regulation can be reviewed in 14 CFR Part 47.

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