Foreign ownership of thousands of U.S. aircraft cloaked in secrecy

Why does a small East Texas town called Onalaska have more than 1,000 registered aircraft - and no airport?

In fact, more planes are registered to Onalaska than the number of registered planes in entire cities such as Seattle, San Antonio, San Diego, or even New York.

Just as surprising, the aircraft are registered to only two Onalaska P.O. boxes. That’s because the aircraft owners do not live there. Not even close.

WFAA has learned Onalaska is ground zero for a practice that allows foreigners to anonymously register their planes, and one that critics say makes the United States an easy target for drug dealers, terrorists and other criminals seeking to register their planes.

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"When you can conceal the true ownership of a plane, you're putting a lot of people in jeopardy," said Joe Gutheinz, a former Federal Aviation Administration (FAA) special agent. "If you're a terrorist and you have a way of concealing your secret ownership of a plane in the United States, you're going to do it."

But industry advocates told WFAA that large corporations and foreign partnerships often need to use trusts because of the FAA’s strict citizenship requirements.

To register a plane, owners need to be a U.S. citizen or a permanent resident. However, the FAA will allow foreigners to register their planes by transferring a title to a U.S. trustee.

LINK: NBAA: What Are Non-Citizen Trusts? A Routine, Well-Regulated Way to Register Aircraft

For $5, an owner can register a plane with the FAA.

Planes registered to the name of U.S. trust carry an "N" tail number. It’s a distinction that experts say carries advantages, including allowing planes to receive less scrutiny than when carrying a tail number from a different country.

https://www.wfaa.com/article/news/local/investigates/foreign-ownership-of-thousands-of-us-aircraft-cloaked-in-secrecy/287-959247e4-3aba-4c0a-a83b-639145e81a64