FAA head hasn't sold his stake in an airline despite promises to do so, Democratic Senator claims | Fortune

"The head of the Federal Aviation Administration has not sold off his multimillion-dollar stake in the airline he led since 1999 despite a promise to do so as part of his ethics agreement, according to a Democratic senator. In a letter to Bryan Bedford this week, Sen. Maria Cantwell said he vowed to sell all his shares in Republic Airways within 90 of his confirmation but 150 days have now passed."

"In Bedford's financial disclosures, he estimated that his Republic stock was worth somewhere between $6 million and $30 million. Republic completed a merger last month with another major regional airline, Mesa Air Group. Republic's stock closed Thursday at $19.02, nearly double what it was before the deal was announced in April. "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.""

"The agency has been in the spotlight since January, when an airliner collided with an Army helicopter over Washington, D.C., killing 67 people. The investigation has already highlighted shortcomings at the FAA, which failed to recognize an alarming number of close calls around Reagan National Airport in the years beforehand. Then, in the spring, technical problems at the center that directs planes into New Jersey's Newark Liberty International Airport highlighted a fragile and outdated system relied on by air traffic controllers."

Bryan Bedford promised to divest his Republic Airways shares within 90 days of confirmation but had not done so after roughly 150 days. His disclosed Republic holdings were estimated between $6 million and $30 million. Republic completed a merger with Mesa Air Group and its stock nearly doubled to $19.02 after the announcement. Senator Maria Cantwell wrote that retaining the shares months past the deadline appears to violate his ethics agreement and demanded a full accounting. Bedford declined comment and the FAA said he will respond. The FAA faces scrutiny over a deadly midair collision, technical failures, controller shortages, and calls to modernize the air traffic system. Bedford has pledged to prioritize safety and upgrade the nation's air traffic control system.

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