The head of the Federal Aviation Administration (FAA), Kenneth Bedford, is facing scrutiny after failing to divest his multimillion-dollar stake in Republic Airways, which he agreed to do as part of his ethics agreement. NBC Senator Maria Cantwell pointed out that Bedford had promised to sell all his shares within 90 days of his confirmation, but this deadline has long passed, with 150 days without action.
According to his financial disclosures, Bedford’s shares in Republic Airways are estimated to be worth between $6 million and $30 million. This issue is further complicated by the fact that Republic Airways recently completed a merger with Mesa Air Group, causing its stock price to soar to $19.02, nearly double its previous value before the announcement of the merger.
In her letter to Bedford, Cantwell stated, “It appears you continue to retain significant equity in this conflicting asset months past the deadline set to fully divest from Republic, which constitutes a clear violation of your ethics agreement. This is unacceptable and demands a full accounting.”
Bedford has not publicly responded to requests for comment on the situation, while an FAA spokesperson stated he plans to address the concerns directly to Senator Cantwell.
This concern comes amid heightened scrutiny of the FAA, especially following incidents earlier this year that raised alarms about air safety, including a tragic airliner and helicopter collision that claimed 67 lives in Washington, D.C. The FAA's oversight has come under fire as a result of various issues, including technical failures in air traffic control systems and flight delays attributed to a controller shortage.
Congress has already allocated $12.5 billion to upgrade the outdated air traffic control system, with the FAA recently selecting a company to manage this critical project.
