Administrator Bryan Bedford Did Not Divest From His Old Airline Despite Promises

FAA Administrator Bryan Bedford is under fire after the U.S. Office of Government Ethics (OGE) told lawmakers he failed to follow through on a key promise he made during his confirmation: divesting from the airline he once ran.

In a letter to Senator Ted Cruz, who chairs the Senate transportation committee, the OGE said Bedford did not meet the terms of the ethics agreement he signed while his nomination was up in the air. The document required Bedford to shed all of his financial interests in Republic Airways… y’know, where he previously served as chairman and CEO… within 90 days of taking office. That deadline was October 7.

The letter became public on December 9 when Senator Maria Cantwell, the committee’s top Democrat, released it along with an ultimatum of her own. She wrote that Bedford appeared to still “retain significant equity” in Republic long past the deadline, calling it “a clear violation of your ethics agreement.” Cantwell gave him until Dec. 16 to provide a full accounting of what he sold, what he still holds, and what Republic-related matters he has recused himself from since assuming office.

According to Bedford’s financial disclosures, he entered the FAA with between $6 million and $30 million in Republic stock. His holdings also included equity in several other aviation and tech companies, which were another part of his 90-day divestment promise. Instead, the OGE says Bedford pushed to revise that commitment after being confirmed. The ethics office denied his request.

Complicating matters is Republic’s recently finalized merger with Mesa Air Group. Since the combined company became a publicly traded entity, Cantwell says that Bedford’s stake may have increased in value in the process.

It seems the situation is shifting, however. The OGE reported a notification from the Department of Transportation on December 1 that shows that Bedford requested stock certificates on December 1 to proceed with divestment.

Regardless, the conflict of interest claims only further stain Bedford’s record. Before stepping into the administrator role, he suggested cutting pilot training hour requirements in half for graduates of Republic’s LIFT Academy. His ties to the airline made some question whether or not he would truly prioritize safety if it came down to it.

FMI: www.oge.gov