Grounding of US (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. A search of the FAA Aircraft Registry lists 803 aircraft registered through Southern Aircraft Consultancy.

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

Statement from Southern Aircraft Consultancy, 13th January 2026

We write with an urgent update, which we would ask that you read carefully. We have this evening received a letter from the FAA, which states that:

1. they have decided Southern Aircraft Consultancy is not classed as a US citizen, and is therefore no longer eligible to register aircraft. 2. all aircraft currently registered to Southern Aircraft Consultancy therefore need to be grounded with immediate effect, and not flown again until they are re-registered with the FAA.
3. all Certificates of Registration for aircraft registered to Southern Aircraft Consultancy should be returned to the FAA within 21 days.

This letter comes as a complete shock. Firstly because the letter (issued this evening) states that all aircraft must be grounded from todays date. This obviously gives no sensible timescale for anyone to effect the process of reregistering their aircraft as instructed, which is entirely unreasonable. Secondly, and most importantly, because Southern Aircraft, to the best of our knowledge and based on previous legal advice, is compliant with the FAA’s regulations as to what constitutes a US 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.

We will obviously be strongly challenging the FAA on this decision, and on the entirely unreasonable timescales for grounding the aircraft – and returning Certificates of Registration – that they have imposed. We are doing all that we can to ensure the least possible inconvenience is caused to you, our clients, and have our US and UK lawyers working urgently on a solution.

The absolute most important thing to us is to find a way forward that minimizes disruption and inconvenience to our clients. To this end, we are pursuing the transfer of the entire business to a US-based Trust Company. Doing this would mean that no clients would need to re-register their aircraft – the new Trust Company would simply become the new Trustee for all of our Trusts. We are also hoping to agree with the new Trust Company that they will honour all existing annual Trust fees already paid by our clients.

We would hope to have some news for you within the next few days. However, we will fully understand if this current uncertainty means that you don’t wish to wait, and instead wish to immediately dissolve your Trust with us. If you wish to do this, there is a formal process to follow, details of which are shown below. This has been as much of a shock to us as it no doubt is to you. We will keep all of our clients apprised of any progress or developments.

Southern Aircraft Consultancy

AOPA UPDATE 14 January 2026

AOPA is aware of an FAA action affecting some US (N)-registered aircraft that are registered using Non-Citizen Trust arrangements administered by Southern Aircraft Consultancy Inc (SACI).

The FAA has informed the UK Civil Aviation Authority (CAA) that it considers the Certificates of Registration for aircraft registered via SACI under certain trust arrangements to be invalid. As a result, affected aircraft are not permitted to operate, and the UK CAA has taken steps to enforce this position within the UK.

This action relates solely to aircraft registration eligibility. It does not relate to airworthiness, maintenance standards, or flight safety.

SACI has advised its clients that it disagrees with the FAA’s interpretation of the applicable registration and trustee eligibility requirements. SACI characterises the issue as an administrative and regulatory matter, rather than a safety issue, and has stated that it is engaging with the FAA to seek clarification or resolution.

However, SACI has also acknowledged that the FAA currently considers the affected registrations invalid and that aircraft should not be flown while this position remains in force.

If your aircraft is:

• N-registered, and
• Registered via Southern Aircraft Consultancy Inc as trustee

you should assume that the aircraft cannot legally fly until the registration issue is resolved.

Owners and operators are strongly advised to:

• Confirm whether their aircraft is affected by checking FAA registration records and trust documentation
• Contact their insurer and any finance or leasing providers
• Seek independent specialist aviation legal advice on available options

Potential routes to resolution may include transferring to a different FAA-eligible trustee or re-registering the aircraft in another state, subject to regulatory requirements.

This development highlights the importance of ensuring that aircraft ownership and registration structures — particularly those involving trusts — remain fully compliant with the current interpretations and enforcement practices of the State of Registry.

AOPA continues to monitor the situation and remains engaged with the UK CAA and international partners to understand any broader implications for UK-based General Aviation.

Members will be updated as further authoritative information becomes available.

Martin Robinson, CEO AOPA UK

From the UK CAA General Aviation Unit 14 January 2026 :

We understand this this may be causing some anxiety among owners/operators affected. As this has come directly from the FAA and concerns US-registered aircraft, unfortunately the CAA cannot help or guide owners/operators about the most appropriate course of action.

If the owner/operator has any questions about the grounding order or moving to another trust, they should contact Southern Aircraft Consultancy Inc (Ltd) on 01986 892912. Alternatively, owners/operators can contact the FAA through their Flight Standards District Offices (if they search for FAA FSDO they can get contact details).

If the owner/operator would like to enquire about transferring the State of Registration to the UK, they can find the information on the CAA website under aircraft registration. CAA would like to remind all owners/operators that their aircraft are grounded (not permitted to fly), until they have complied with the FAA statement.