Valiair to acquire Southern Aircraft Consultancy following FAA action
Wyoming-based aircraft trust firm Valiair is set to acquire Southern Aircraft Consultancy Inc (SACI), the company at the centre of FAA action this week.
On Tuesday, the US aviation regulator declared the registrations of 803 aircraft “invalid” and instructed the Norfolk, UK-based aircraft trust firm SACI to surrender all the certificates within 21 days. This means more than 700 aircraft have been grounded and cannot legally operate until they have been re-registered.
Following the action, SACI reached out to Valiair with an offer to acquire it in full.
In a statement issued on Wednesday, SACI said it has reached an agreement with Valiair.
“We are delighted to announce that we have today reached an agreement with Valiair, who will be taking over ownership of Southern Aircraft Consultancy Inc, with the goal of restoring compliance and getting all of your aircraft back in the air as soon as possible,” it read.
“Valiair are a well-established and well-respected aircraft trustee, and have a wealth of expertise and experience. This, coupled with their customer-focused approach to looking after clients, means that we feel that they are the best and strongest partner to take over the business.
“We are all conscious that time is of the essence for everyone concerned, and are wholly committed to finalising this change as soon as possible. Please bear with us while we work to finalise the arrangements – and be assured that we will continue to keep you fully informed and updated on progress.“
Marco Reininger, CEO at Valiair, told CJI: “It is a full purchase of the company. The capital consideration is exchanging hands in return for a full stock purchase of the company, resignation of all current officers and the current president and a full integration into the Valiair Group of Companies.”
Reininger expects the transaction to close today. Once complete, all operations will be transferred to the US.
It is up to the FAA to determine whether the aircraft will be deemed suitable to fly again once the transaction is closed, said Reininger.
“Counsel is in constant contact with the FAA at a managerial and legal level. The FAA, it is my understanding, is also interested in minimising disruption,” he explained. “We’re all working hand in hand to find the best solution possible to get the aircraft back in the air as fast as possible.
“Of course, it needs to meet the regulators’ requirements. We are prepared to do whatever it takes to fulfil their requirements and get the aircraft flying again. We take pride in our dedication to compliance and meeting the letter of the law.”
Scott McCreary, attorney at Oklahoma law firm McAfee & Taft, told CJI that purchasing the stock of the company will help eliminate the need for a title transfer to a new trustee. “However, it will still require filing an application and supporting documents to re-register the aircraft and obtain a new certificate of registration,” he added.
CJI is hosting an Emergency Town Hall tomorrow Understanding the Impact of this FAA Grounding at 10am EST/ 3pm GMT. Register for your place here.
