Sponsor Message:
Civil Aviation Forum
My Starred Topics | Profile | New Topic | Forum Index | Help | Search 
AA: Each Aircraft Registered In Its Own LLC?  
User currently offlineJimbobjoe From United States of America, joined Oct 2001, 653 posts, RR: 0
Posted (8 years 9 months 3 weeks 1 day 13 hours ago) and read 3469 times:

So I'm recently told that American individually registers each aircraft it own into its own little limited liability corporation, as a way of shielding the parent company from certain liability situations in case of a crash.

I was wondering if anyone here on the board would be able to confirm this. (Apologies if it's already been covered, I'm not sure how to search on this concept.)

5 replies: All unread, jump to last
 
User currently offlineLincoln From United States of America, joined Nov 2004, 3887 posts, RR: 8
Reply 1, posted (8 years 9 months 3 weeks 1 day 13 hours ago) and read 3426 times:

It doesn't appear to be the case from the FAA's aircraft registration database (picking N662AA because it was the first American Airlines jet that showed up in the photo search):

Quote:
Registered Owner

Name AMERICAN AIRLINES INC
Street PO BOX 619616 MD 4280
City DFW AIRPORT State TEXAS Zip Code 75261
County DALLAS
Country UNITED STATES




I'm curious -- perhaps a lawyer could comment -- how registering each aircraft as its own LLC could shield AMR from liability in a crash, unless each aircraft had its own operating certificate (regardless of who "owns" the aircraft, if an AMR crew was neglegently operating/mantaining it I would imagine that AMR would be liable]

Lincoln



CO Is My Airline of Choice || Baggage Claim is an airline's last chance to disappoint a customer || Next flts in profile
User currently offlineDLPMMM From United States of America, joined Apr 2005, 3589 posts, RR: 10
Reply 2, posted (8 years 9 months 3 weeks 1 day 12 hours ago) and read 3369 times:

Quoting Jimbobjoe (Thread starter):
So I'm recently told that American individually registers each aircraft it own into its own little limited liability corporation, as a way of shielding the parent company from certain liability situations in case of a crash.

Not true, as the example above illustrates. It could be that some of the leased planes are in LLCs for financing purposes, shielding the owners from certain liabilities in case of a crash, but there is no way for AA to shield themselves in such a fashion.


User currently offlineAtrude777 From United States of America, joined Aug 2003, 5692 posts, RR: 52
Reply 3, posted (8 years 9 months 3 weeks 1 day 9 hours ago) and read 3216 times:

The only planes that I know of, were the ex TWA ones that were its own LLC, but I think that was taken care of?

Alex



Good things come to those who wait, better things come to those who go AFTER it!
User currently offlinePlanespotting From United States of America, joined Apr 2004, 3524 posts, RR: 5
Reply 4, posted (8 years 9 months 3 weeks 1 day 9 hours ago) and read 3168 times:

I haven't got much experience in Torts Law yet, but I don't believe an LLC would technically absolve AA of any liability in a crash situation, as AA's entities and agents still operate, dispatch and care for the aircraft.


Do you like movies about gladiators?
User currently offlineLincoln From United States of America, joined Nov 2004, 3887 posts, RR: 8
Reply 5, posted (8 years 9 months 3 weeks 23 hours ago) and read 2989 times:

To elaborate on my original answer (reply 1) and extend Planespotting's response...

[Before I begin... I am NOT a lawyer and have absolutely no legal training/experience... I juist spend a ton of time reading decisions on LexisNexis. Anyone who knows better, please jump in and confirm or correct what I'm saying]

Even if every aircraft in the American fleet was registered to a unique entity, (I.e. "American Aircraft N622AA, LLC") and even if every aircraft had it's own operating certificate ("N622AA Airlines") that the filghts were operated by and the aircraft mantained under -- which I would imagine would be a beraucratic nightmare as far as records keeping goes, AMR could not shield itself from liability this easially.

I say this because, if I understand correctly under accepted legal therories [which I can't recall at the moment -- I really wanted to say respondent superior and agency but I am pretty sure these would only apply to individuals]. Essentially if a reasonable person couldn't tell that "N622AA Airlines" was operating the flight that they purchased a ticket from American Airlines for and the aircraft was wearing an AA livery, operating under AA's direction as far as rates, routes served, schedules, etc. AA would be liable for the actions of their 'servant'.

I did a really poor job of wording that. Hopefully when I wake back up I'll be able to repost and make more sense unless someone corrects/clarifies for me before then.

Lincoln



CO Is My Airline of Choice || Baggage Claim is an airline's last chance to disappoint a customer || Next flts in profile
Top Of Page
Forum Index

This topic is archived and can not be replied to any more.

Printer friendly format

Similar topics:More similar topics...
Did Air Asia Ever Operate A Jet In Its Own Colors? posted Sun Mar 6 2005 22:49:03 by Malaysia
Russian Aircraft Registered In Error? posted Thu Apr 17 2003 00:50:07 by EC135
9L-registered Aircraft Banned In Which Countries? posted Sat Feb 18 2006 15:19:06 by Airevents
BA Shooting Its Own Foot By No New Aircraft Orders posted Fri Oct 15 2004 10:46:11 by BCAL
Should SkyTeam Have Its Own Painted Aircraft? posted Tue Jun 15 2004 15:44:45 by L410Turbolet
Irish Registered Aircraft Operating In Italy posted Mon Oct 6 2003 13:08:12 by CKT789
Does UAL Have Its Own Building In Chicago, Usa? posted Tue Nov 27 2001 19:29:28 by United Airline
Aircraft Assembly In Saudi? posted Sat Oct 28 2006 20:01:10 by HiJazzey
Aircraft Going In Circles Shortly After Takeoff posted Thu Oct 26 2006 20:18:49 by Quickmover
AZ Has FCO-LAX And FCO-YUL In Its Sights For 2007 posted Fri Oct 6 2006 00:18:24 by Nycfly75