Democratic senators asked a federal watchdog to review whether FAA Administrator Bryan Bedford violated an ethics deal by waiting to sell shares tied to Republic Airways Holdings Inc. RJET after he left the carrier's top job. The request comes as airlines face a new cost squeeze, with aviation clearly an area that could get worse as fuel markets react to conflict around the Strait of Hormuz.
Reuters reported the senators want the Transportation Department's Office of Inspector General to examine whether Bedford missed an Oct. 7 divestment deadline and gave Congress an inaccurate explanation for the delay. They argued the timing could have increased his payout after a merger involving Republic.
- RJET shares were trading lower on Friday. Check the latest price here.
Why Senators Are Demanding Accountability Now
The lawmakers — Senators Maria Cantwell, Tammy Duckworth and Ed Markey — said they want clarity on whether Bedford's ethics agreement was followed and whether the public received accurate answers about his compliance.
They also suggested Bedford may have collected more than $25 million from selling the stake and said he has not disclosed the exact proceeds.
Why Fuel Costs Raise the Stakes for Airlines
Meanwhile, airlines are passing rising fuel costs directly to travelers. Mike Wirth, CEO of Chevron Corporation CVX, said, "We're seeing it flow through into fares. I think that's one of the first places it will be felt most broadly."
Surging jet fuel can reshape airline strategy quickly, and that volatility can make conflicts-of-interest concerns feel more acute. Wirth said Europe and Asia are seeing jet fuel conditions tighten, which can force schedule changes and higher ticket prices.
North American jet fuel prices have risen more than 80% from a year earlier, based on International Air Transport Association figures.
The Controversial Timeline Behind Stock Sales
Bedford's ethics paperwork required him to sell off his Republic stake by Oct. 7, but he ultimately completed the divestiture in February, as reported by Reuters. The FAA said it would respond directly to the senators.
At his confirmation, Bedford disclosed Republic holdings valued between $6 million and $30 million, and Republic later completed a merger with Mesa Air Group on Nov. 25.
In December, Bedford told lawmakers he was staying away from matters that could affect the airline financially while he worked to unload the position. He said he believed he complied with the rules after seeking more time and relying on guidance from career ethics staff.
Cantwell previously released a Dec. 8 letter from the Office of Government Ethics stating Bedford had not met the terms of his agreement and that his request to extend the deadline failed to satisfy the standard for an amendment.
RJET Price Action: Republic Airways Holdings Inc shares were down 0.97% at $17.95 on Friday, according to Benzinga Pro.
Image: Chad Robertson Media / Shutterstock
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This article Senators Demand Probe Of FAA Administrator Over Delayed Republic Airways Stock Sale originally appeared on Benzinga.com.
