The head of the US Federal Aviation Administration has been accused of violating his ethics agreement by failing to divest a multimillion-dollar stake in an airline he previously led, raising concerns about potential conflicts of interest. Senator Maria Cantwell, the top Democrat on the Senate Commerce Committee, highlighted that FAA Administrator Bryan Bedford did not sell his shares in Republic Airways within the 90-day period stipulated during his confirmation, despite holdings valued between $6 million and $30 million at the time. The ethics office confirmed that Bedford sought to extend the divestiture deadline, but the request was denied, and he has not yet divested his stock, even after a merger between Republic Airways and Mesa Air Group increased the stock value.
The controversy underscores ongoing scrutiny of the FAA amid recent operational challenges, including a midair collision over Washington, D.C., and air traffic control outages. Cantwell demanded that Bedford explain his failure to comply with the divestment agreement and clarify his current holdings in Republic Airways. She has given him until December 16, 2025, to respond. The situation raises questions about the integrity of FAA leadership and the effectiveness of ethics regulations for senior government officials.
The merger has resulted in Republic Airways shareholders owning approximately 88% of the combined company, which operates a fleet of over 300 Embraer jets under contracts with legacy airlines. Bedford, who was previously CEO of Republic Airways, vowed to recuse himself from decisions related to the airline until he fully divests his holdings, but as of mid-December, this has not been completed. The FAA continues to face criticism for its safety oversight while balancing regulatory responsibilities during a period of heightened public concern and operational incidents.
