ARROW AIR EXPECTS to resume cargo operations by the end of this month following a deal made with the US Federal Aviation Administration.

The two sides agreed that Arrow Air would retain its operating certificate if it paid the aviation agency $1.5 million to defray the cost of the FAA's safety probe of Arrow's operation.

The Miami, Florida-based cargo and passenger airline voluntarily grounded its 18 Douglas DC-8s and Boeing 727s on 17 March, after the FAA reported "serious" violations on maintenance record-keeping and failure to show compliance with airworthiness directives.

The company says that six DC-8 freighters will be used for a limited cargo service. It has no plans to resume passenger charters yet.

Source: Flight International