By Eva Richardson | The Logistic News
April 10, 2025
Grounded U.S. cargo airline Transair is eyeing a return to the skies later this year after a major legal victory over the Federal Aviation Administration (FAA). A panel of National Transportation Safety Board (NTSB) administrative law judges has dismissed the FAA’s case against Transair’s parent operator, Rhoades Aviation, “with prejudice,” marking a significant step toward reinstating the airline’s operations.
Transair, operated by Rhoades Aviation, was grounded in July 2021, shortly after one of its Boeing 737-200 freighters ditched into the ocean off Honolulu following a catastrophic engine failure that was misdiagnosed by the crew. Remarkably, both pilots survived the crash.
FAA Grounds Carrier Amid Safety Concerns
While the FAA stated the grounding was not directly tied to the accident, it highlighted serious concerns over the airline’s safety and maintenance practices. In May 2022, the FAA proposed to revoke Rhoades Aviation’s air carrier certificate due to multiple violations related to maintenance and aircraft airworthiness.
Despite being grounded, Rhoades avoided automatic certificate revocation due to dormancy by securing time extensions, allowing negotiations with the FAA to proceed. However, in January 2023, the FAA formally issued a revocation order, prompting Rhoades to appeal to the NTSB.
Judges Rule in Favor of Rhoades
Now, in a key ruling, the NTSB panel has sided with Rhoades Aviation, dismissing the FAA’s complaint. Rhoades stated that the judgement directs both parties to work collaboratively to enable the airline’s return to service.
“We look forward to doing now what we have wanted all along – to work collaboratively with the FAA so that Transair can provide vitally important cargo air transportation for the benefit of Hawaii’s residents, communities, and businesses,” said Transair CEO Teimour Riahi.
Aiming for Takeoff in Late 2025
Riahi confirmed that Transair is aiming to resume inter-island cargo operations in Hawaii “as soon as late 2025,” subject to final regulatory approvals. He emphasized that the airline remains “committed to upholding the highest safety standards.”
Should the relaunch proceed as planned, Transair’s return will be a significant development for Hawaii’s logistics landscape, offering essential air cargo capacity between the islands and restoring a critical supply chain link.
Follow Eva Richardson and The Logistic News for continued updates on air cargo regulations, safety rulings, and freight service restoration efforts across the United States and beyond.
