Interstate Helicopters Fined for Illegal Charter

The U.S. District Court in Oklahoma City sentenced Bethany, Oklahoma-based Interstate Helicopters and its owner, James Paul Johnson, to fines of more than $50,000 for illegal charter activity. The fines come as the FAA has stepped up its efforts to identify illegal charters and either educate or enforce, depending on the circumstances.

The Interstate Helicopters enforcement followed an investigation that found the company “circumvented FAA regulations and operated an illegal fixed-wing charter service” between May 2014 and July 2016, according to the U.S. Department of Transportation Office of Inspector General (OIG). “Johnson and Interstate Helicopters illegally structured the fixed-wing charters as dry leases between the passengers and the aircraft owners,” the OIG said. Dry leases do not include the provision of crewmembers.

Interstate Helicopters directed passengers to enter into pilot-service agreements with the company to obtain pilots and other services for the flight operations. The company agreed to comply with FAA regulations in those agreements. However, it “failed to provide FAA’s Aircraft Registry Branch with copies of Interstate Helicopters’ aircraft lease agreements and notify the responsible FSDO 48 hours before the first flight covered by the lease agreements took off.” These notifications are required under FAA regulations, the OIG added.

Interstate Helicopters declined to comment on the enforcement action.