TAG Aviation Agrees to Settle with FAA over Control Matter

Settlement acknowledges that no wrongdoing was admitted by business aviation leader

GENEVA--(BUSINESS WIRE)--TAG Aviation Holding and its TAG Aviation USA subsidiary today agreed to a settlement with the Federal Aviation Administration (FAA), resolving FAA concerns over TAG USAs relationship with FAA regulated aircraft operators. Terms of the settlement, in which the FAA will receive $10 million, include FAA acknowledgement that neither company admits to any wrongdoing.

“This settlement will allow TAG Aviation Holding to continue with the divestiture of TAG Aviation USA business interests”

This settlement will allow TAG Aviation Holding to continue with the divestiture of TAG Aviation USA business interests, said Robert Wells, CEO of Geneva-based TAG Aviation Holding. We are disappointed in the unprecedented settlement amount demanded by the FAA, but felt it was in TAG USAs and their clients best interests to put this matter to rest. TAG Aviation Holding remains proud of its nearly decade-long relationship with the TAG USA organization and their record of safe and successful business aviation activity in the U.S.

Signing the settlement fully resolves all matters related to a recent FAA investigation of TAG Aviation USAs relationship with AMI Jet Charter. TAG acted as a charter broker for AMI flights and owned a 49% equity interest in the company. Two payments amounting to the total settlement cost are to be paid by TAG by the end of this year.

For its part, the FAA has agreed not to delay consideration of requests to transfer aircraft currently under TAG USAs management or previously operated by AMI Jet Charter to other certificated air carriers, as envisioned in the sale to Sentient. TAG Aviation Holdings non-US subsidiaries have not been affected by todays settlement with the FAA.

Beginning in 1998, TAG USA and AMI Jet Charter have each built a well-deserved reputation for the highest levels of excellence, with a primary focus on safety and regulatory compliance from both companies. In 2006, AMI was given the highest safety designation by a top industry research firm. It has never had an accident or incident in the nine years since it was founded.

About TAG Aviation Holding and TAG Aviation USA

TAG Aviation is a network of companies providing worldwide personal air travel solutions. TAG Aviation USA, TAG Aviation SA, TAG Aviation (UK) Ltd., TAG Aviation Espana, TAG Farnborough Airport (UK) and TAG Aviation Asia are subsidiaries of TAG Aviation Holding S.A., a privately held company based in Geneva, Switzerland. More information is available at www.tagaviation.com.

Contacts

Echo Kilo Communication
Eric Kuhn
United States: +1-646-351-8661
Europe: +33 685 111 882
eric.kuhn@echokilo.com

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