FAA withdraws $15.7 million penalty against Aery Aviation

Aery Aviation says the Federal Aviation Administration has withdrawn a proposed $15.7 million civil penalty in full, with no finding of violation and no civil penalty assessed. The company says the case is closed and that the decision removes a major cloud over its employees, customers, lenders and partners.

Why it matters: - The FAA’s withdrawal ends a proposed $15.7 million penalty that had created uncertainty for Aery Aviation and its business partners. - No civil penalty will be assessed in the matter. - No finding of violation was made. - The outcome removes a potential financial and reputational hit for a company that serves defense, government, medical and commercial aviation customers.

What happened: - The Federal Aviation Administration withdrew its entire civil penalty letter against Aery Aviation, LLC in FAA Case No. 20235O110001. - The original letter was issued on December 22, 2025. - Aery announced the withdrawal on September 29, 2026. - The proposed penalty totaled about $15.7 million. - The FAA said it was “not in the interest of justice” to pursue the matter and withdrew the letter.

The details: - The FAA’s formal notice said, “After full consideration of the above-referenced case and the evidence presented, we have determined that it is not in the interest of justice to pursue this particular matter. The civil penalty letter issued December 22, 2025, is therefore, hereby withdrawn.” - Aery said it contested the proposed action from the beginning. - Aery said it maintained that it did nothing wrong and that the penalty was not supported by the facts or the law tied to the operations at issue. - Aery said it presented documentary evidence during the administrative process addressing factual, aircraft, operational and jurisdictional issues. - Scott Beale, Aery Aviation president, said the proposed $15.7 million penalty “has been withdrawn in full.” - Beale said there has been no finding of violation and no civil penalty will be assessed. - Beale said the public announcement of the proposed penalty created uncertainty for employees, customers, government partners, lenders, insurers, suppliers and others across the aviation community. - Beale said Aery remained focused on safe, compliant operations and serving customers throughout the process.

Between the lines: - The withdrawal suggests the FAA did not move forward after reviewing the record and evidence presented. - For Aery, the result helps reset the narrative around compliance risk at a time when aviation companies rely heavily on trust from regulators, customers and financiers. - The company is presenting the outcome as validation of its position, while stopping short of describing the FAA’s decision as an admission of error.

What’s next: - Aery said its safety and compliance programs, FAA certificates, quality systems and customer obligations remain central to operations. - The company said it will continue to focus on defense, government, medical, engineering, maintenance, modification and commercial aviation businesses. - Aery Aviation is headquartered in Newport News, Virginia. - The company’s capabilities include engineering, design and certification, aircraft modification and systems integration, manufacturing, MRO, logistics and worldwide flight operations. - Aery said it supports ISR, SIGINT, ELINT and electronic warfare missions, specialized air medical operations, government and military programs, and VIP and executive aviation. - The company says it holds FAA Part 135 and Part 145 certificates, AS9100D and ISO 9001 certifications, is DCMA 8210.1 compliant, is a USTRANSCOM CARB-approved operator and holds a GSA Schedule.

The bottom line: - Aery Aviation avoided a proposed $15.7 million FAA penalty, with the agency withdrawing the case entirely and closing the matter without a violation finding.