This article is based on an official press release from the Federal Aviation Administration (FAA) and background data regarding civil aviation regulations.

FAA Invalidates Registration of 800 Aircraft Managed by Southern Aircraft Consultancy

The Federal Aviation Administration (FAA) has taken decisive enforcement action against UK-based Southern Aircraft Consultancy Inc. (SACI), effectively grounding approximately 800 aircraft immediately. In a notice issued on January 13, 2026, the agency declared that SACI does not meet the strict U.S. citizenship requirements necessary to act as a trustee for N-registered aircraft.

This ruling invalidates the registration certificates of hundreds of private jets, turboprops, and helicopters currently held in trust by the company. According to the FAA’s official statement, the agency has ordered SACI to surrender all physical aircraft registration certificates within 21 days. The move represents a significant escalation in the regulator’s ongoing efforts to tighten oversight of Non-Citizen Trusts (NCTs) and ensure transparency in the U.S. civil aviation registry.

The Enforcement Action Explained

The core of the FAA’s decision rests on the statutory requirement that a trustee of a U.S.-registered aircraft must be a U.S. citizen or a resident alien. While foreign nationals are permitted to own N-registered aircraft beneficially, they must do so through a valid NCT where the legal title is held by a compliant U.S. trustee.

In its notification to SACI, the FAA determined that the company, a UK-registered entity based in Norwich, Norfolk, failed to meet these citizenship criteria. Consequently, the agency stated that SACI is “not eligible” to serve as a trustee.

“The FAA has notified Southern Aircraft Consultancy Inc. (SACI) that it is not eligible to act as a trustee because it is not a U.S. citizen or resident alien. As a result, the registration of all aircraft held in trust by SACI is invalid.”

, Federal Aviation Administration

The invalidation is effective immediately. This means that any aircraft currently operating under a registration certificate issued to SACI is legally grounded. These aircraft cannot conduct flight operations until they are properly reregistered under a compliant structure.

Immediate Requirements for SACI

The regulator has issued a strict timeline for compliance. SACI must return all invalid registration certificates to the FAA Registry within three weeks. Failure to comply with such orders typically carries significant legal and civil penalties, though the primary immediate consequence is the operational paralysis of the affected fleet.

Impact on Aircraft Owners

For the beneficial owners of the estimated 800 affected aircraft, the ruling creates an urgent administrative crisis. Because their aircraft currently lack valid registration, they cannot legally fly within the United States or internationally.

According to the FAA, owners have two primary remedies:

• Reregister in the U.S.: Owners may retain their N-number by transferring the legal title to a new, compliant U.S. citizen trustee.
• Export the Aircraft: Owners may choose to register the aircraft in another country’s civil aviation registry.

The FAA has indicated it may grant “temporary authority” for owners to operate their aircraft within the United States while their new registration applications are processed. However, this temporary authority does not extend to international flights, potentially stranding assets that are currently abroad or disrupting cross-border travel plans.

SACI’s Response

In communications to its clients, SACI acknowledged the FAA’s letter. The company noted that it had operated for over two decades using trust agreements it claimed were previously accepted by FAA legal teams. However, the regulator’s current stance indicates a zero-tolerance approach to trustees that do not strictly adhere to the citizenship definition found in 14 CFR Part 47.

AirPro News Analysis: The Context of the Crackdown

While the FAA’s press release focuses on the technical violation of citizenship rules, this action must be viewed against the backdrop of increasing scrutiny on “grey charter” operations and opaque ownership structures.

The Emiliano Sala Connection

SACI has previously faced intense public scrutiny. The company acted as the trustee for the Piper Malibu (N264DB) involved in the tragic 2019 crash that killed footballer Emiliano Sala and pilot David Ibbotson. That accident highlighted the complexities of the NCT system, where a UK-based trustee held the legal title for an aircraft that was beneficially owned by others and operated largely in Europe.

The Sala investigation by the Air Accidents Investigation Branch (AAIB) raised serious questions about regulatory oversight of N-registered aircraft based permanently overseas. It underscored the difficulty regulators face in enforcing maintenance and licensing standards when the legal owner (the trustee) is detached from the day-to-day operation of the aircraft.

Precedent: The AGC Indictment

The move against SACI follows a similar, high-profile enforcement action against Aircraft Guaranty Corp (AGC) in 2021. In that case, federal prosecutors indicted the trustee company and its owner for enabling transnational drug trafficking by registering aircraft for foreign cartels under opaque trusts.

The AGC scandal was a watershed moment for the FAA. It exposed how the NCT loophole could be exploited to bypass national security checks and Know Your Customer (KYC) protocols. Since then, the agency has been under pressure to “clean the registry” and ensure that trustees are not merely signing paperwork but are actual U.S. citizens exercising genuine oversight.

By invalidating SACI’s fleet, the FAA is signaling that the era of loose interpretation regarding trustee citizenship is over. We assess that this action is likely part of a broader strategy to eliminate “flag of convenience” risks within the U.S. registry, particularly regarding sanctions evasion and safety oversight.

Frequently Asked Questions

What is a Non-Citizen Trust (NCT)?

An NCT is a legal mechanism that allows non-U.S. citizens to register aircraft in the United States. The aircraft’s legal title is transferred to a U.S. trustee (a citizen or corporation), while the foreign owner retains beneficial use. This allows foreign owners to enjoy the benefits of N-registration, such as higher resale value and flexible maintenance standards.

Can the affected aircraft fly right now?

No. The registrations are invalid effective immediately. Flying an aircraft without valid registration is a violation of federal aviation regulations and international law. Owners must secure temporary authority or complete reregistration before resuming operations.

Is SACI the same as Southern Air Transport?

No. Southern Aircraft Consultancy Inc. (SACI) is a UK-based trustee firm. It is distinct from Southern Air Transport (a defunct airline) and Southern Cross Aviation. The current enforcement action applies strictly to SACI and the aircraft held in its specific trusts.

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Affected aircraft owners should consult with aviation counsel immediately.

Sources: FAA Press Release