AMI Problems Began with DOT Consent Order

AINalerts » October 16, 2007
October 16, 2007, 11:37 AM

AMI Jet Charter had problems with the U.S. Department of Transportation previously and was assessed a $250,000 fine per a consent order issued by the DOT in September 2005 that addressed the issue of influence by foreign owners of the company. DOT regulations require that air carriers be controlled by U.S. citizens, including U.S. citizen corporations. Although 51 percent of AMI is owned by two U.S. citizens and 49 percent by TAG Aviation USA, which is owned by Switzerland-based TAG Aviation Holding, the DOT’s enforcement office found that “AMI was clearly under the actual control of TAG USA and, as a result, AMI did not satisfy the Department’s citizenship requirements.” AMI said it spent $250,000 restructuring the company to “address the enforcement office’s concerns,” according to the consent order. A $250,000 fine was due in two installments, one immediately and the other suspended for 12 months and forgiven if AMI did not violate the DOT regulations again. The second $125,000 installment was indeed forgiven.

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