jimbobjoe
Posts: 450
Joined: Mon Oct 08, 2001 2:04 pm

AA: Each Aircraft Registered In Its Own LLC?

Thu Oct 13, 2005 11:46 pm

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.)
 
lincoln
Posts: 3133
Joined: Mon Nov 01, 2004 11:22 pm

RE: AA: Each Aircraft Registered In Its Own LLC?

Fri Oct 14, 2005 12:10 am

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
 
DLPMMM
Posts: 2128
Joined: Wed Apr 20, 2005 12:34 am

RE: AA: Each Aircraft Registered In Its Own LLC?

Fri Oct 14, 2005 12:40 am

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.
 
atrude777
Posts: 4258
Joined: Wed Aug 13, 2003 11:23 pm

RE: AA: Each Aircraft Registered In Its Own LLC?

Fri Oct 14, 2005 3:51 am

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!
 
planespotting
Posts: 3026
Joined: Sat Apr 17, 2004 4:54 am

RE: AA: Each Aircraft Registered In Its Own LLC?

Fri Oct 14, 2005 4:29 am

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.
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lincoln
Posts: 3133
Joined: Mon Nov 01, 2004 11:22 pm

RE: AA: Each Aircraft Registered In Its Own LLC?

Fri Oct 14, 2005 2:09 pm

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