Problems with aircraft registered with southern aircraft NReg
 

https://mcusercontent.com/9a13f6185a...299af22cd5.png

Grounding of United States of America (N) Registered Aircraft held in trust with Southern Aircraft Consultancy Inc (Ltd) flying in the UK

The FAA has informed the CAA that USA (N) registered aircraft that are registered through Southern Aircraft Consultancy Inc (Ltd) using a non-Citizen Trust Agreement (NCT) have been grounded with immediate effect as their Certificate of Registration is considered to be invalid.

The lack of a valid Certificate of Registration may have implications on the mandatory insurance that the owners/operators of such aircraft are required to hold.

Owners/operators of affected aircraft should not fly their aircraft until they have complied with the FAA statement.

For more information owners/operators should contact Southern Aircraft Consultancy Inc (Ltd).

Link to FAA statement:

FAA Notifies Southern Aircraft Consultancy Inc. (SACI) to Surrender All Aircraft Registration Certificates | Federal Aviation Administration

SW2026/015 Categories: commercial pilot aeroplane, commercial pilot helicopter, private pilot aeroplane, private pilot helicopter The CAA
Aviation House
Beehive Ring Road
Crawley
West Sussex
RH6 0YR

skywise.caa.co.uk
www.caa.co.uk


© 2026 The CAA, All rights reserved. Follow Us
https://mcusercontent.com/9a13f6185a...7d02f3f1fe.png LinkedIn | https://mcusercontent.com/9a13f6185a...9924f4b0e9.png Facebook
https://mcusercontent.com/9a13f6185a...babd2e0e20.png YouTube | https://mcusercontent.com/9a13f6185a...0e53934ce2.png Instagram
https://mcusercontent.com/9a13f6185a...5992ee629e.png X

https://mcusercontent.com/9a13f6185a...fa0e9e7725.png Share email You are receiving this email because you opted in on skywise.caa.co.uk or through the CAA SkyWise app.

Our mailing address is:
The CAA
Aviation House
Beehive Ring Road
Crawley, West Sussex RH6 0YR
United Kingdom
Add us to your address book unsubscribe from this list
uClick here to manage your categories








The CAA · Aviation House · Beehive Ring Road · Crawley, West Sussex RH6 0YR · United Kingdom

FAA Notifies Southern Aircraft Consultancy Inc. (SACI) to Surrender All Aircraft Registration Certificates

Tuesday, January 13, 2026WASHINGTON – The Federal Aviation Administration (FAA) today officially notified Southern Aircraft Consultancy Inc. (SACI) that all its aircraft registration certificates are invalid because the company was in violation of U.S. citizenship requirements when it submitted the registration applications. The FAA instructed SACI to surrender all the certificates.

SACI registered aircraft for U.S. citizens and foreign nationals using trust agreements. To register an aircraft using a trust agreement, the company/trustee must either be a U.S. citizen or a resident alien. The FAA found that SACI violated FAA regulations regarding U.S. citizenship requirements and must return registration certificates to the FAA within 21 days of notification.

The invalid Certificates of Aircraft Registration will result in the immediate grounding of all aircraft registered to SACI. To operate legally, affected aircraft owners must reregister their aircraft either through another country’s aircraft registry or in the U.S. by submitting an Aircraft Registration Application to the FAA, along with evidence of ownership, and paying the registration fee ($5). Aircraft owners will then have temporary authority to operate within the U.S. until the applicant receives a Certificate of Aircraft Registration or until the FAA denies the application.

Temporary authority does not extend to flights outside the U.S. An applicant for registration, who operates outside the U.S., may submit a Declaration of International Operations (DIO) at the time of application to receive expedited processing.

805 aircraft showing as registered to Southern Aircraft Consultancy Inc.

Southern Aircraft Consultancy Inc

Nice office. https://www.rightmove.co.uk/house-prices/details/54518b34-95e4-4b8c-97eb-f591c9fe679d

https://www.euroga.org/forums/hangar-talk/16834-southern-aircraft-consultancy-inc-saci-n-registered-aircraft-grounded#post_401980

I wonder about the practical fallout of this decision for aircraft that were already mid-journey when the notice was issued.

What happens to aircraft now stranded at intermediate stops, especially in remote locations with no hangars or maintenance support? An “immediate grounding” sounds straightforward on paper, but it can leave aircraft sitting exposed on open ramps for weeks. If one of these aircraft is hit by severe weather — hail, storms, winds — where does liability fall? The owners acted in good faith, relying on registration structures that were accepted at the time. The issue stems from regulatory non-compliance by the trustee, not from operational misconduct by the pilot.

That raises a question about whether Southern Aircraft Consultancy could be held responsible for consequential losses caused by aircraft being immobilized in unsuitable locations, and how the Federal Aviation Administration weighs enforcement actions against real-world operational and safety implications.

Given the requirement for a valid aircraft registration originates at the ICAO Annex 7 and Convention Article 29 levels, the FAA is merely enforcing the US laws and regulations to cover that international requirement. So any liability would fall to Southern or the original owner depending how their aircraft lease or operating agreement is written.

This might (and it's a big might) fix it.
A Permit to Fly (PtF) may be needed when your aircraft does not meet, or has not yet been shown to meet, the applicable airworthiness requirements and, as a result, cannot hold or be issued a valid Certificate of Airworthiness (CofA) or Restricted CofA, although it is capable of safe flight under defined conditions. In this case, a PtF may be obtained when the aircraft needs to fly for various possible flight purposes, as listed under Part 21.A.701 and related Guidance Material, subject to approval of associated Flight Conditions (FC).

More information on PtF and FC is published on the EASA website and in the EASA procedure PR.CAP.00125. Please click here. You may also wish to read the other FAQ n. 21919.

Also note that the responsible EASA Member State of Registry can also grant an exemption to allow an aircraft to fly without a valid (R)CofA under the provisions of Article 71 of the Basic Regulation (Regulation (EU) 2018/1139), if it finds that the conditions of this article are met.

It might... but I'm doubtful. A PfF is normally issued for a specific airframe, identified by registration/MSN and it is that registration that is currently invalid. I think that we should also consider the FAA regulations on this as these aircraft do have a valid CofA under the FAA regulations, it is the FAA that you would therefore need to convince of the necessity of a ferry flight. Just my thoughts.

Edit: A Special Flight Permit may be an option: SPECIAL FLIGHT PERMITS

Yes. If one wanted to use the rules of a different NAA, like a Permit to Fly, they would need to deregister the N number and reregister under the appropriate NAA. International agreements prevent one aircraft from being registered under different countries. Unfortunately, even under the FAA rules, without a valid registration the option for an FAA Special Flight Permit or ferry permit is not available as the registration certificate is the higher requirement since it dictates which NAA rules can be used. And to note, an invalid registration also invalidates the AWC by rule. However, any host country NAA where the aircraft domiciles can generate their own rule to allow any of the affected aircraft to fly if needed, but only within that country's NAA jurisdiction. For example, Canada's TCCA created an owner maintained category of aircraft that allows the owner to perform maintenance on any of the eligible type-certified aircraft. Except those aircraft are permanently marked and not permitted to be exported or flown in other countries.

Having taken a look at their accounts filings with Companies House I find it remarkable that a company that is involved with 800 or so aircraft are showing financials worth about the same value as a pair of 5 year old Range Rovers. Additionally a number of changes in Directors in recent years.

This was an issue that was waiting for a closer look for some years.The aircraft were all registered to a company operating out of a small Norfolk cottage.Clients included Grant Schapps a former government minister plus the boss of a well known flying magazine.

This is going to be an expensive fix for the owners of the 800 aircraft registered with SAC plus they will no longer have insurance to fly.

Cancelling the registration probably affects the ability to get an export C of A issued. This needs handling with care as making the situation worse is a possibilty.

Not necessarily - an Export C of A can be issued for a non-registered aircraft. The basis of an Export C of A is compliance with Type Certificate data and acceptability by the NAA for the destination of the aircraft for transfer along with any deviations. You can even get an Export C of A for a damaged or incomplete aircraft. An Export C of A has nothing to do with the aircraft being serviceable or operational, for that you need a Standard C of A which is completely different and issued by the NAA in the State of Registry.

As mentioned not really. The airworthiness side is the easiest to deal with. But it definitly requires a clear mind when attempting any solution.

The main issue is in the eyes of the FAA, Southern is the owner of record. This was re-established with a policy clarification by the FAA in 2013 or so. So any corrective actions to this must be initiated by Southern at this point. But one thing I do know is the EASA and about every other NAA out there would love to see this FAA non-citizen trust registration option go away tomorrow.

There is another trustee company https://internationalairservicesinc.com/ operating in a similar fashion with around 630 aircraft on their books.
International Air Services Inc appear to not be affected at present.
According to a post here https://www.euroga.org/forums/hangar...rounded?page=1 it was possible to transfer across from Southern Aircraft Consultancy fairly easily.

I have heard that as well from an owner with an affected aircraft.

​​​​​​​Nice price! I'd forgotten how cheap Norfolk property is.

It doesn't surprise me at all - You would want a company such as this to have absolute minimum financial assets so that if something such as this occurs there is nothing for people to sue for and it can quietly go bankrupt.

ericferret That’s exactly the problem. My aircraft is now stranded at a remote airfield with no hangar, no proper covers, and no local.. “Immediate grounding” may be a straightforward solution to deal with SAC, but the whole concept of N-Registration trust will never be the same again.

I acted in good faith with the trustee SAC and with the FAA, and I had no indication of any issue with the SAC registration even on the morning of January 13. Yet my insurer has already told me that coverage — including ground insurance — depends on a valid registration certificate. Once the registration is considered invalid, insurance effectively collapses.

As for a Permit to Fly: any temporary permit in Europe still requires a valid EASA registration. The initial reply from the authorities is that they cannot handle this case under the current conditions, so the PtF is unavailable.

In the end, the responsibility lies with SAC. But based on how they handled the well known N264DB case, I doubt they will acknowledge their liability here.

I had my aircraft with southern. After having had it grounded for 3 months as a result of the incompetence, I was sent a renewal invoice immediately after, and when I challenged that invoice, southern dissolved the trust.

I am now taking legal action pursuing southern and their new owners for damages. If you’ve been affected also, it may be worth joining forces and mounting a claim of compensation against them by way of class action.

if interested, pls message me: [email protected]