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FAA Clamps Down on Deceptive and Unfair Trade Practices to Minimize Risk to Corporations


When chartering a flight, companies naturally want to know as much as they can about the air carrier and its track record, but until this past Valentine’s Day — when a raft of new FAA regulations took effect — charter aviation had a transparency problem.

A deadly crash from 2004 called attention to the issue. When investigators from the National Transportation Safety Board (NTSB) tried to figure out what had happened, they discovered that the charter aviation company involved had been operating under a confusing proliferation of revolving trade names. The investigators and even some executives at the charter company itself struggled to figure out the relationship between the swirl of DBAs involved.

The NTSB took action and, in 2006, issued a safety recommendation to the FAA to require more transparency in the charter world. Specifically, the NTSB recommended that passengers of charter flights under Part 135 be given sufficient information to allow the passenger to make an informed decision about the flight. The new Charter Broker Rule is the result of that recommendation (yes, it was a long time coming).

Read the full article in Corporate Compliance Insights here.

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