US regulators have given Family Airlines until next month to remove its chief executive due to his involvement in a fraudulent stock offering in 1993.
DOT explains that Barry Michaels participated in the offering of $5 million in registered stock in the predecessor to the carrier, also dubbed Family Airlines.
Regulators explain the conviction of Michaels on misrepresentation charges made in a private stock offering is enough to keep the company from winning DOT clearance to launch operations.
“The Department would not be able to recommend a favourable fitness determination of Family Airlines as long as Mr. Michaels continues to be involved with the company,” says DOT.
“If Mr. Michaels is not sufficiently distanced from Family Airlines (by 13 June), the Department will issue a show-cause order proposing to find the applicant is not fit.”
The Las Vegas-based carrier has proposed Boeing 747 service to major US cities with fares starting at $49 each way.
Source: flightglobal.com's sister premium news site Air Transport Intelligence news
Source: Flight International
