Government Agency Reports FAA Head Failed to Comply with Ethics Agreement

The government agency responsible for overseeing potential conflicts of interest has informed senators that Bryan Bedford, the current head of the Federal Aviation Administration (FAA), did not follow through with an agreement to divest from the airline he previously ran.

In a letter to Sen. Ted Cruz, the chair of the Senate transportation committee, the Office of Government Ethics stated that Bedford had “failed to timely comply with certain terms of the ethics agreement he signed” while his nomination was being considered by the Senate. The letter, released by Sen. Maria Cantwell, the top Democrat on the panel, was made public on Tuesday night.

Cantwell referenced the ethics office’s report in a separate letter to Bedford, demanding a full explanation for why he did not divest all of his equity in Republic Airways, a regional airline where he served as chair and chief executive, within the 90-day timeline required by his ethics agreement. According to the ethics office, the deadline for divestment was October 7.

Cantwell’s letter stated, “Based on this letter, 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. ” She gave Bedford until December 16 to respond to a list of questions regarding what shares he had divested, the expected completion date of his divestitures, and a list of matters related to Republic that he had recused himself from since taking office.

When contacted for comment, a spokesperson for the FAA stated that Bedford will only be responding to Cantwell. A representative for Cruz declined to comment.

Bedford Agreed to Divest Within 90 Days

According to Bedford’s ethics agreement, he held stakes in various aviation and technology companies before becoming the administrator of the FAA. In the agreement, Bedford pledged to divest from the listed holdings “as soon as practicable but not later than 90 days after my confirmation.

However, it was reported by the Office of Government Ethics that after his confirmation, Bedford attempted to amend the agreement, requesting more time to comply. Cantwell’s letter stated that at the time of his nomination, Bedford held stock in the airline valued between $6 million to $30 million. The ethics office did not grant the extension.

At the end of last month, Republic Airways announced that it had completed a merger with Mesa Air Group, another regional carrier. The merger resulted in Republic becoming a publicly traded company. In her letter to Bedford, Cantwell suggested that the value of his Republic stock may have increased due to the merger, despite being required to divest from those shares before the merger was finalized.

The letter from the ethics office also stated that officials from the Department of Transportation, which oversees the FAA, informed them that Bedford had requested stock certificates on December 1 to facilitate his divestment.