United States v. Lockheed L-188 Aircraft, Registration No. N12vg, in Rem, and International Air Leases, Inc., Claimant-Appellant

International Air Leases, Inc. (IAL), owner of an aircraft seized by Federal Aviation Administration (FAA) officials for violation of FAA regulations, appeals from an in rem judgment against the aircraft for civil fines and penalties amounting to $165,600. IAL appeals also from pretrial orders dismissing its counterclaim based on the Tucker Act, 28 U.S.C. § 1346 (a)(2) and denying leave to file an amended counterclaim based on the Federal Tort Claims Act (FTCA), 28 U.S.C. § 1346 (b).

FACTS

IAL, based in Miami, leases aircraft “dry,” that is, without supplying crew or participating in the operation of leased aircraft. It leased a Lockheed L-188 to Air Houston Corporation, which subleased it, with lAL’s consent, to Air Flow Corporation.

Air Flow used the aircraft to carry passengers on gambling junkets from the Pacific Northwest and California to Reno and Las Vegas and return. IAL asserts that the aircraft was certified as airworthy when it left Miami, and that IAL had no connection with Air Flow’s operations except to collect a flat monthly rent.

Pursuant to 49 U.S.C. § 1473 and 14 C.F.R. § 13.17 , the FAA seized the aircraft on February 8, 1974, believing that it had been…