OPENING LINES FAA AIRCRAFT GROUNDINGS OVER TRUSTEE VIOLATIONS SHOW NEED FOR OPERATOR DILIGENCE The FAA has long supported use of non-citizen trusts (NCTs) allowing non-U.S. owners to obtain an N-number registration for their aircraft. NBAA’s engagement on this matter resulted in a 2013 policy clarification by the agency that established detailed requirements for both the owner trustee and the underlying trust structure. Those include: • Clearly stating where the trustee entity is formed. • Verification of citizenship for all executives and voting entities. • Confirmation U.S. citizens hold actual control of the aircraft registered. Such information is required to be publicly available to those seeking to place their aircraft under an NCT. “When choosing a trust company, you want to Source: www.nbaa.org.,New Editor, First Published Jan 16, 2026 The recent grounding by the FAA of approximately 800 general aviation aircraft registered through a U.K.-based trustee highlights the need for operators to conduct thorough due diligence when utilizing an owner trust to facilitate U.S. aircraft registrations. On Jan. 13, the FAA invalidated all aircraft registrations through Southern Aircraft Consultancy Inc. (SACI), due to unspecified violations of U.S. citizenship requirements for trustees involved in aircraft registrations. These aircraft, including several dozen turbine-powered business aircraft, may not be operated unless reregistered, potentially through a valid trustee, or placed under a different country’s registry. 15 BUSINESS VIEW MAGAZINE VOLUME 13, ISSUE 01
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