INDIANAPOLIS — The U.S. Attorney’s Office has reached a settlement resolving allegations that a local charter jet service repeatedly violated aviation safety regulations.
Officials with the United States Attorney for the Southern District of Indiana, Zachary A. Myers, announced Feb. 8 in a press release 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 they conducted illegal charter flights.
The settlement resolves allegations that between March 2017 and February 2018, Indy Jet Management, which operates out of Indianapolis Regional Airport in Hancock County, operated approximately 168 paid passenger-carrying flights in violation of Federal Aviation Administration (FAA) safety regulations.
According to the press release, 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 who 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, officials said.
The FAA alleged that 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, officials said in the release.
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 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 the case. The claims resolved by this settlement are only allegations; there has been no determination of liability, officials said in the release.
Reports show federal authorities had originally proposed a fine of over $2 million against the Indianapolis charter plane carrier and its associates after accusing the company of conducting illegal flights beginning in 2017.
The Federal Aviation Administration proposed the civil penalty against Indy Jet Management LLC and parties back in 2021.
