U.S. Attorney’s Office Reaches Settlement Resolving Allegations that Charter Jet Service Repeatedly Violated Aviation Safety Regulations

The United States Attorney for the Southern District of Indiana, Zachary A Myers, announced today that Indy Jet Management, LLC and associated parties, Gary Aletto, GSA Investment, Inc., AirXL, LLC, Excel 2 LLC, Excel 3 LLC, Excel 4 LLC, CJI LLC, Indy Bravo LLC, Bradley Cable, and Citation Management LLC (“AirXL et al.”), have agreed to resolve allegations that they conducted illegal charter flights. 

The settlement resolves allegations that between March 2017 and February 2018, Indy Jet Management operated approximately 168 paid passenger-carrying flights in violation of Federal Aviation Administration (“FAA”) safety regulations.

The FAA recognizes two types of leases of aircraft: “wet leases,” in which a charter jet company provides an aircraft and crew, and “dry leases,” in which an aviation leasing company leases only an aircraft—and the lessee is responsible for obtaining its own pilots and services. The FAA requires charter jet companies that provide aircraft and crew to their customers through “wet leases” to obtain operating or air carrier certificates. These charter jet companies must also ensure their pilots adhere to certain qualification standards for training, testing, and competency.

The FAA alleges that the Indy Jet Management and its associated entities sold customers charter jet services under sham “dry leases” with one company to purportedly lease aircraft without any pilots or services provided. Customers then simultaneously entered into contracts for pilot services with another Indy Jet Management-related company. Together, the contracts served as a package deal to provide a piloted charter jet service while evading the FAA certification and pilot qualification regulations that apply to “wet leases.” The FAA further alleged that the parties used unqualified pilots who did not complete the training, testing, and competency checks that the FAA requires.

Under the terms of settlement agreement, AirXL et al. agreed that it no longer operates in the same manner and has paid a $187,500 civil penalty.

U.S. Attorney Myers thanked Assistant United States Attorney Rachana Fischer, who represented the United States in this case.

The claims resolved by this settlement are only allegations; there has been no determination of liability.