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Thu, Nov 15, 2007

FAA Investigates Jet Management Company Over Outsourcing

Handles Google Founders' B767

A company that manages aircraft for two major-league sports teams, and the founders of internet search company Google Inc., is under investigation by the FAA over some functions that were outsourced to other vendors.

The Wall Street Journal reports Elan Express Inc. is reportedly under investigation for allegations it contracted work out to US affiliates of TAG Aviation Holding SA. Last week, the Swiss company paid a $10 million fine to settle allegations it secretly controlled flights as they were flown by affiliate AMI Jet Charter Inc. TAG did not admit to wrongdoing in the settlement.

Federal regulations state charter operators must have direct control over matters involving the aircraft they fly, including maintenance, crew scheduling, and dispatching duties.

Elan Express is also affiliated with TAG, and the settlement mentions the company's "relationship with, or alleged control over" Elan Express. The settlement "does not extend to Elan Express Inc.," however, according to the wording of the agreement.

Nevertheless, sources familiar with the matter tells the WSJ the FAA has collected documents from Elan Express, and is looking into the possibility TAG's US-based unit may have provided similar services to Elan as were alleged in the earlier investigation against TAG and AMI -- which once had a minority stake in the company.

Those sources also say TAG handled several duties for Elan, including dispatching duties and maintaining training records. It also allegedly provided accounting support to Elan.

Elan Express also manages the Boeing 767 owned by Google founders Sergey Brin and Larry Page, as well as a Boeing 727 used by the Chicago Bulls basketball team, and baseball's Colorado Rockies. The Rockies are "monitoring the situation," according to a team spokesman.

FMI: www.tagaviation.ch/, www.faa.gov

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