FAA Proposes Penalty Against Steele for Illegal Charter

The U.S. Federal Aviation Administration is proposing its second civil penalty this year against Beverly Hills, California–based Steele Aviation for illegal charter operations. Last week, the FAA said it was proposing a $624,000 civil penalty against Steele for allegedly conducting 16 flights for hire between October 2016 and February 2018 without the required air carrier certificate. The flights involved the transport of the same paying passenger to destinations throughout California, as well as to Seattle, aboard a Cessna Citation II and Hawker 125-800. “The FAA alleges the operations were careless and reckless so as to endanger lives or property,” the agency said in announcing the proposed penalty.

The civil penalty proposal followed a proposed $167,500 civil penalty earlier this year for allegedly conducting unauthorized air carrier operations and using unqualified pilots. That proposed enforcement action involved the alleged operation of a Gulfstream IV and British Aerospace 125 on at least 78 for-hire flights between Sept. 17, 2015, and June 13, 2016, when neither aircraft was listed on the certificate and with pilots who did not meet the training requirements for that type of operation. One of the pilots also lacked the appropriate medical certificate, the FAA further alleged.

Steele Aviation was not immediately available for comment.

The move on a second proposed penalty comes as the agency has made a concerted effort to step up its enforcement of illegal charter and as it has begun to review stiffer penalties. The National Air Transportation Association’s Illegal Charter Task Force, which has been working with the agency to increase its activities surrounding illegal charter, welcomed the attempts to crack down on such operations.

“We have had nothing but positive reaction from air charter operators and the FAA on the efforts of NATA’s Illegal Charter Task Force,” said NATA vice president Ryan Waguespack. “Unfortunately, there is a segment of owners and aircraft managers within the industry that willfully engage in prohibited activities and we rely on the FAA’s enforcement authorities in such cases.”

Most operators intend to comply with rules, and regulations can be complex and difficult to understand, he added. “Our goal is to provide the educational resources to help keep their operations legal.”