800 aircraft grounded: FAA orders Southern Aircraft Consultancy to surrender registration certificates
January 14, 2026
The US Federal Aviation Administration (FAA)’s formal notice to Southern Aircraft Consultancy Inc (SACI) will likely impact over 800 aircraft, the majority of which are in the UK.
The FAA has determined that registration certificates from a UK-based aircraft registration company SACI are invalid. According to the FAA, SACI violated US citizenship requirements when submitting the original registration applications.
The FAA’s notice follows another disruptive proposal unveiled by the organisation earlier this month that would require airlines to upgrade their aircraft altimeter systems. The upgrades could leave alirlines facing a multi-billion dollar bill to make the necessary changes.
Why has the FAA ordered SACI to surrender aircraft registration certificates?
In a statement, the FAA concluded that SACI does not meet citizen eligibility requirements necessary to act as a trustee for aircraft registered on the US civil aircraft registry.
As a result, the FAA has ordered SACI to return all aircraft registration certificates within 21 days. This move will effectively invalidate the registrations of all those aircraft held under the company’s trust structures, many of which are in the UK.
The FAA Aircraft Registry currently lists 803 aircraft registered through SACI. It is thought that the Piper Saratoga aircraft owned by Grant Shapps, the UK’s former transport minister, and which is registered through SACI will be affected by the FAA’s order.
The Channel Islands Air Search (CIAS) organisation has confirmed, following the FAA’s decision, that its only search and rescue aircraft is “temporarily unavailable for operational tasking.” The aircraft is normally used for 24-hour volunteer SAR services in the 4,000 sqm of water surrounding the Channel Islands and the adjacent French coast.
According to Island FM, CIAS is working to transfer the aircraft’s registration, but has yet to confirm the timescale for doing so because it depends on regulators and other providers.
Under US law, aircraft registered in the US must be owned by US citizens, permanent residents, or qualifying entities. Although trust arrangements are commonplace, enabling non-US owners to operate N-registered aircraft, the FAA requires that the trustee itself meet strict citizenship and control requirements.
Affected owners and operators advised to ground aircraft
Without a valid registration certificate, affected aircraft may need to be grounded or restricted in operation.
A statement from the UK’s Civil Aviation Authority (CAA) confirms that the lack of a valid certificate of registration may have implications on the mandatory insurance that the owners or operators of such aircraft are required to hold.
Furthermore, lease agreements, insurance coverage and maintenance planning may also be impacted if re-registration is not completed properly.
“Owners/ operators of affected aircraft should not fly their aircraft until they have complied with the FAA statement,” according to the CAA.
SACI has been providing Trust Services to non-US citizens to enable them to legally register their aircraft on the American “N” register for over 20 years.
SACI in as much shock as its customers
In a statement issued on 13 January, SACI said the FAA’s letter had come as a “complete shock.”
Not only does the letter state that the order was effective immediately, giving no sensible timescale for anyone to effect the process of registering aircraft as instructed, SACI said in the statement. More importantly, SACI underlined that to the best of the company’s knowledge and based on previous legal advice, it was fully compliant with the FAA’s regulations as to what constitutes a U.S. citizen who can register aircraft.
“The decision appears to have been made around the fact that the administration of all of the Trusts is carried out by staff based in the UK.”
SACI fights back against the FAA
SACI is challenging FAA on its decision and “on the entirely unreasonable timescales for grounding the aircraft – and returning Certificates of Registration – that they have imposed.” It has engaged with lawyers in both the UK and the US to try and resolve the situation as swiftly as possible.
The FAA’s action signals increased uncertainty and scrutiny of third-party registration service providers and aircraft trust arrangements, particularly for those operating outside the US.
For aircraft and owners, the immediate priority is transitioning affected aircraft into compliant registration structures. SACI has advised customers who do not wish to wait for it to progress and resolve the situation can instead immediately dissolve their Trust.
According to a trusted source, Belgian aircraft owners who use SACI are already transferring to other trust companies.
For the wider aviation community, the FAA’s order is a reminder that aircraft registration is more than just an administrative process; it is a compliance issue with direct consequences for operations, financing and asset value.
