Virginia Aviation Start-Up Acquires Secondhand Jets for Major DHS Deportation Contract
An obscure aviation company based in Virginia that recently secured a substantial $140 million contract with the Department of Homeland Security to supply jets for deportation flights has reportedly begun purchasing older aircraft. Daedalus Aviation Corp., which won the contract in late 2025, has registered four Boeing 737-700 jets previously operated by the budget airline Avelo, according to a review of Federal Aviation Administration data conducted by Bloomberg.
The aircraft in question are between 17 and 22 years old, highlighting the company's strategy of utilising pre-owned planes for its government operations. Daedalus describes its services as providing "responsive flight operations" for missions ranging from "high-tempo government-directed evacuations to sensitive international repatriations" on its official website.
Company Leadership and Connections to Billion-Dollar Contract
Daedalus was established in 2024 and is led by William Allen Walters III, according to documents from Virginia's State Corporation Commission obtained by Bloomberg. Intriguingly, a person with the identical name is listed as the chief executive of Salus Worldwide Solutions, a separate company that secured a nearly $1 billion contract in May 2025 from DHS.
This substantial contract supports the government's programme providing flights and other travel services to migrants who agree to "self-deport." The CEO of Salus previously served in the State Department during the first Trump administration as deputy chief of medical operations, as indicated on his LinkedIn profile.
Political Donations and Contract Controversies
Salus had never received a federal contract before the May 2025 deal, and its CEO had previously donated to the MAGA-aligned America First Policy Institute and American Resolve, a super PAC run by allies of DHS Secretary Kristi Noem, according to reports from The Washington Post. A rival contractor challenged the Salus agreement in an August federal lawsuit, alleging the company obtained nonpublic information to assist in its bid, which Salus firmly denies.
Records obtained by the Post revealed that an official who formerly worked at the America First Policy Institute helped coordinate the competition for this lucrative contract. DHS stated last year that its review of the contract process showed "zero indication that there was any wrongdoing on anyone's part."
DHS Defends Cost-Saving Initiative
DHS Assistant Secretary Tricia McLaughlin provided a statement to The Independent, expressing satisfaction with media attention on the Trump administration's approach. "We are delighted to see the media is highlighting the Trump administration's cost-effective and innovative ways of delivering on the American people's mandate for mass deportations of criminal illegal aliens," she stated.
McLaughlin emphasised that "this new initiative will save $279 million in taxpayer dollars by allowing ICE to operate more effectively, including by using more efficient flight patterns." The deal with Daedalus comes as DHS is assembling its first fleet of government-owned deportation planes, moving away from reliance on military aircraft, charter jets, and commercial planes.
Industry Backlash and Political Pressure
Deportation flights have consistently generated controversy for the companies involved. Avelo, the airline that previously operated the planes now registered by Daedalus, served as a DHS subcontractor until recently. The company announced earlier this year that it would no longer conduct deportation flights, citing financial considerations and reportedly discussing internally how this decision would help avoid "political controversy."
Avelo's previous involvement in immigration transport prompted boycott calls last year. This month, Massachusetts Governor Maura Healey wrote to executives at two aviation companies working with ICE, demanding they cease deportation flights. Her letter argued that "flying these residents out of state—often within hours of arrest—is intentionally cruel and purposely obstructs the due process and legal representation they are entitled to."
She further stated that "by contracting with ICE to execute these flights, you are profiting off these anti-American tactics and facilitating the obstruction of due process." The political tensions surrounding these operations were further highlighted when dozens of faith leaders were arrested on Friday at Minneapolis-St. Paul International Airport, as local activists protested the Trump administration's ongoing immigration crackdown in the state, which has included deportation flights departing from Minnesota.