Senator says FAA administrator failed to sell multimillion-dollar airline stake as promised

FAA Chief Under Scrutiny for Failing to Divest Airline Stock Despite Ethics Agreement

Federal Aviation Administration leader Bryan Bedford has not sold his multimillion-dollar stake in Republic Airways despite a written commitment to do so, according to Senator Maria Cantwell.

In a letter sent to Bedford this week, Cantwell noted that the FAA chief had pledged to sell all his Republic shares within 90 days of his confirmation, but 150 days have now elapsed without divestment. Bedford’s financial disclosures valued his Republic stock between $6 million and $30 million, creating what the senator described as a “clear violation” of his ethics agreement.

“This is unacceptable and demands a full accounting,” Cantwell wrote, highlighting the potential conflict of interest between Bedford’s personal holdings and his regulatory responsibilities.

The timing of this controversy is particularly noteworthy as Republic’s stock has nearly doubled in value since April, when a merger with Mesa Air Group was announced. The deal was completed last month, with Republic shares closing at $19.02 on Thursday – representing a significant appreciation of Bedford’s undivested holdings.

When contacted for comment, Bedford declined to respond directly to media inquiries. An FAA spokesperson indicated that the administrator plans to address the senator’s concerns privately.

The ethics controversy emerges during a challenging period for the FAA, which has faced intense scrutiny following a series of high-profile incidents and systemic issues affecting U.S. aviation safety and efficiency.

In January, the agency came under the microscope after a catastrophic collision between an airliner and an Army helicopter over Washington, D.C., claimed 67 lives. The subsequent investigation revealed concerning oversights by the FAA, which had failed to address an alarming pattern of near-misses around Reagan National Airport in preceding years.

The agency’s technical infrastructure has also shown significant vulnerabilities. In spring, technical failures at the air traffic control center serving Newark Liberty International Airport exposed the fragility of the nation’s aging aviation management systems. These issues have underscored Bedford’s public commitment to modernize the nation’s outdated air traffic control network.

Last fall, a prolonged government shutdown exacerbated existing staffing challenges, with an already-strained air traffic controller workforce facing unpaid work periods. The result was thousands of flight cancellations and delays that rippled throughout the commercial aviation system.

Bedford has publicly prioritized safety improvements and technological modernization during his tenure. Congress recently approved $12.5 billion for air traffic control system upgrades, and the FAA announced its selection of a contractor to oversee the extensive modernization project just last week.

The question of Bedford’s financial holdings creates complications for an agency already navigating significant operational and public trust challenges. Regional carriers like Republic play a vital role in the U.S. aviation ecosystem, operating shorter routes and connecting smaller markets to major hubs, often under contract with larger airlines. As FAA administrator, Bedford holds regulatory authority over the very industry in which he maintains substantial financial interests.

Industry experts note that this situation highlights the ongoing tension between appointing leaders with deep industry knowledge and the potential conflicts such expertise can create when moving between private and public sector roles.

The controversy raises broader questions about the enforcement of federal ethics agreements and the mechanisms in place to ensure regulatory officials maintain objectivity in their oversight responsibilities, particularly in industries where they have built careers and accumulated significant financial stakes.

As the FAA continues its critical safety and modernization initiatives, Bedford’s response to these ethics concerns will likely factor into the agency’s credibility as it implements reforms and addresses longstanding challenges in U.S. aviation.