AAIRRG | Aviation Alliance Insurance Risk Retention Group, Inc.

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Take Control of Your Aircraft Product Liability Insurance—and Save up to 35%

Welcome to AAIRRG. The only insurance company that exclusively writes aircraft product insurance for certified Part 145 repair stations. We are delighted to have you visit us.

We are member-owned and, as of February 1, 2014, AAIRRG is owned and controlled by
185 of the independent repair stations in the U.S.  Some are leaders in our industry.

Believe me, few of us wanted to own an insurance company. But because of the outrageous prices we were paying for aircraft products liability insurance (products coverage), our hand was forced.

I’ll tell you how we did it in a moment. But first, let me give you the bottom line of what it means for you.

  • You should save (some up to 35% or more) on your company’s liability insurance.
  • If you’re insured by AAIRRG, you’ll own a piece of the company and share in the profits.
  • You’ll have access to a viable insurance option for the foreseeable future.

I know you’ll have questions. So take a few minutes to read on, and then if you feel that AAIRRG might be a good fit for your repair station, you can request a free pricing proposal.

An Eye-Opening Analysis

In 2004, a core group of Aeronautical Repair Station Association (ARSA) members agreed to contribute time and money to test whether there might be a better alternative to the costly insurance options available at the time.

These members launched a feasibility study, examining 18 years of NTSB data. The study found that only 1.3% percent of U.S. aircraft crashes resulting in bodily injury or third-party property damage were a result of maintenance.  Only 1.3%!

With this information in hand, the group approached reinsurers to try to find support for the idea of a more affordable, exclusive aviation repair station insurance option.

The Problem: We Were Unfairly Lumped With Higher-Risk Ventures

Reinsurers were not unwelcoming, but there was a problem: they were unable to address specific losses surrounding repair stations because of their categorization of us as a miscellaneous class of business.

Who else is included in this category?  Air shows, speed events, medical air evacuation, aerial construction, firefighting, crop dusting, flight training and other higher-risk ventures.  Our research showed that repair stations were (and many still are) being forced to pay higher premiums to subsidize these high-risk businesses in aviation insurance markets. We needed a better option.

A Better Alternative

We spent six years putting AAIRRG together, isolating it from other aviation insurance markets so that we could offer better rates. In June 2010, we received our certificate of authority, authorizing us as a licensed insurance company.  Now, in our fourth year of operation, we’ve become a substantial presence in the aviation marketplace:

  • We’re saving repair stations (up to 35% or more)over what they were paying.
  • We are providing good small shops who could not previously afford Aviation Products and Completed Operations coverage an opportunity to have coverage at a fair cost compared to the alternatives.
  • AAIRRG carries reinsurance with a net worth of $88.1 billion with substantial “A” rated reinsurers to augment its balance sheet.

AAIRRG has standards for eligibility so not just any shop can qualify. Over 41% of the Part 145 market will never hear from us due to other activities they are engage in, and for the remainder, our initial process is rigorous to help insure the financial safety of the group as a whole. Subsequently, for those who qualify, we offer a fair price for an exceptional insurance option.

Any Profits Belong to Us!

If you’re insured by AAIRRG, you will own a piece of the company. And while future dividends cannot be guaranteed, let me share the following fact with you:

For the past 30 years, the entire aviation line of business in the U.S. has consistently been the first or second most profitable line of liability insurance, producing a better than 50% pretax profit each year!

Imagine not only saving on your insurance, but also profiting from that savings!  No other aviation insurer is paying a dividend to its policyholders.  But, as an AAIRRG owner/insured, future profits will come back to you.

I think you’ll agree that this is an exciting and sensible option. It’s worth taking a few minutes to explore our website to learn more.  Then, you can request a quick, easy and free pricing proposal to see just how much your shop can save.

We look forward to welcoming you into the fast-growing AAIRRG family.

Bill Perdue
Warmly,
Bill Perdue (signature)
Bill Perdue, President


P.S. If you have questions and would like to talk this over with a real person, you can call Rick Crebs, our lead underwriter, at 707-963-2400 right now.
 
Supreme Court: Airline can drop frequent flier
04/04/14:  The Supreme Court decided unanimously Wednesday that an airline had the right to dump a frequent flier who complained too much.  The decision allows airlines to have sole discretion to drop frequent fliers.
Chasing the Money for Air Crash Victims’ Families in Beijing
04/03/14:  Growing up in Peru in the 1970s, Monica R. Kelly, who specializes in aviation accidents, dreamed of becoming a diplomat and traveling the world.  But by the 1980s, violence was spreading at home with a guerrilla war waged by the Shining Path movement, and her family moved to the United States, forcing her to abandon her ambition to enter Peruvian government service.  She decided to realize her interest in international travel in a more unusual way: by flying around the world to meet and represent the families of air crash victims, one of a specialist band of aviation accident lawyers.
A Five-year-old 777-200LR Sees Early Retirement
04/01/14:  A 777-200LR, built in 2009, has been retired by Air India. Air India cannibalises 777 named Maharashtra at Mumbai’s Shivaji airport.  While the rumors mentioned on the website suggest it sustained hidden damage during a heavy landing, it's still notable that a modern 777 less than five years old is being cannibalized.
FAA 'Strongly Encouraged' Autothrottle Change
03/31/14:  The FAA in 2011 had “strongly encouraged” Boeing to make changes to the 787 flight management computer system to provide autothrottle “wake up” capability in all modes.  The request is detailed for the first time in a new submission to the U.S. NTSB by Asiana Airlines’ on the July 6, 2013 crash in San Francisco of Flight 214, a Boeing 777-200ER with the same flight management computer system (FMCS) and hence the same authothrottle modes.
FAA tells Boeing to fix 747-8 software to avoid crash
03/26/14:  The U.S. Federal Aviation Administration on Tuesday ordered an immediate fix to the latest version of Boeing Co's 747-8 plane, saying a software glitch could cause it to lose thrust when close to landing and fly into the ground.
FAA investigate broken wing on Delta flight
03/17/14:  A Delta plane flying from Orlando to Atlanta lost part of it's wing, mid-flight, on Sunday evening.  According to the FAA, the flight, Delta flight 2412, "landed safely on Runway 9 Left at Atlanta Airport at 7:10 p.m. after declaring an emergency due to a hydraulic problem. The aircraft stopped on the runway, and was towed to the gate."
Advance Notice of Proposed Rulemaking (ANPRM) on Drug and Alcohol Testing for Foreign Repair Stations
03/13/14:  It is seeking comments on an Advance Notice of Proposed Rulemaking (ANPRM) that would require drug and alcohol testing of maintenance personnel who work on aircraft operated by U.S. air carriers (Part 121) in facilities outside the United States.
FAA Warned of 'Cracking and Corrosion' Problem on Boeing 777s
03/12/14:  A cracking and corrosion problem on Boeing 777s that could lead to the mid-air break-up of the aircraft prompted a warning from air safety regulators weeks before the disappearance of Malaysia Airlines Flight 370, federal records show.  The Federal Aviation Administration ordered checks on hundreds of U.S.-registered 777s after reports of cracking in the fuselage skin underneath a satellite antenna.
FAA Seeks Auto-Throttle Fix For Boeing 737s
03/04/14:  The US FAA has proposed a fix for some Boeing 737s to ensure that a faulty altimeter does not cause the automatic throttle system to unexpectedly cut engine speed.  The Federal Aviation Administration said the changes to cockpit automation, if adopted, would affect 497 Boeing 737s, specifically the 600 and later models. Chicago-based Boeing said another 778 jets would be affected if aviation regulators outside the United States adopt the FAA proposal.
FAA Issues Final Rule on Helicopter Safety
02/24/14:  The Federal Aviation Administration has published its final rule calling for stricter helicopter safety procedures, a rule that fulfills some NTSB recommendations to the DOT agency; addressing the unique characteristics of helicopter operations is on the NTSB's Most Wanted List.
FAA bans pilots from using cell phones, laptops or tablets while flying
02/15/14:  When the flight attendant says “Please turn off all personal electronic devices,” that will apply to the pilot and crew as well. The FAA on Tuesday introduced new rules banning pilots and flight crews from using laptops, tablets, cell phones and other similar devices for personal use.
FAA pilot safety training blamed for fewer flights
02/05/14:  The Federal Aviation Administration chief told a House panel Wednesday that the agency pursued greater safety in requiring more pilot training, a move that some airlines blamedfor reducing flight service across the Midwest.
TSA Issues New Security Rule For Aviation Repair Stations—What Does This Mean For Aircraft Maintenance Providers?
02/06/14:  On January 13, the Transportation Security Administration ("TSA") issued its long-awaited aviation repair station security rule. 79 Fed. Reg. 2119. The rule, which takes effect on February 27, affects both domestic and foreign aviation repair stations. In marked contrast to the original proposal, the rule imposes only minimal requirements on the repair stations. Its publication also paves the way for lifting the statutorily mandated moratorium on the Federal Aviation Administration's ("FAA") processing of foreign repair station certificates, potentially expanding the number of independent repair stations abroad permitted to work on aircraft registered in the U.S. or operated by U.S. air carriers.
FAA Examines Part That Fell Through Home
02/03/14:  A mysterious object fell through a northern Virginia woman's home on Friday morning and members of the Federal Aviation Administration were visiting her home on Saturday.  The FAA is trying to figure out if a piece of metal that crashed through an awning and landed in the dining room came from a plane.
ARSA Bulletin:  Updated Form 8130-3 to Take Effect | Presentation Outlining the Major Changes
01/31/14:  On February 1st, the revised Federal Aviation Administration (FAA) Form 8130-3 will enter into force, replacing the previous form dated June 1, 2001.  The document is used for domestic airworthiness approval of new products and articles; approval for return to service of altered aircraft parts; and export airworthiness approvals of aircraft engines, propellers, or articles.
US Customs grounds drone fleet after $12 million unmanned aircraft crashes off of California
01/28/14:  The United States Customs and Border Protection has grounded an entire fleet of drones, the agency admitted on Tuesday, after a mechanical function the night before forced a crew to crash an unmanned aircraft valued at $12 million.  A spokesperson for the CBP said in a statement Tuesday that the drone, a maritime variant of the Predator B, was deliberately crashed into the Pacific Ocean near San Diego, California after it encountered problems shortly after 11 p.m. local time late Monday.
NTSB urges fix on Robinson helicopter fuel tanks after fatalities
01/27/14:  Federal safety experts are recommending that owners of Robinson Helicopter Co.’s four-seat R44 choppers replace the aircraft’s fuel tanks after crash investigators found accidents resulted in deaths that could have been avoided.
FAA set to order more safety checks for Boeing 767
01/26/14:  U.S. regulators are set to order additional safety checks of more than 400 Boeing Co. 767 jets, citing hazards from movable tail sections that can jam and potentially cause pilots to lose control of the aircraft.  Slated to be published in Monday’s Federal Register, the Federal Aviation Administration’s directive calls for enhanced inspections of horizontal flight-control surfaces called elevators, along with modification and replacement of certain bolts and other parts used to control them. Elevators help move the noses of planes up and down.
ARSA Challenges FAA Information Collection
01/22/14:  On Jan. 14, ARSA challenged the Federal Aviation Administration (FAA) on the unnecessary reporting requirements of a notice of proposed rulemaking (NPRM) requiring the inspection and replacement of cylinders used in certain engines manufactured by Continental Motors, Inc.  ARSA's comments rebuke the FAA for failing to abide by the requirements of the Paperwork Reduction Act in the agency's submission to the Office of Management & Budget (OMB) seeking approval of the information collection.
TSA, At Last, Issues Final Repair Station Security Rules
01/15/14:  The Transportation Security Administration (TSA) has issued a final rule covering repair station security. “This action brings an end to the Federal Aviation Administration [FAA] ban on certifying new foreign repair stations,” according to the Aeronautical Repair Station Association (Arsa). The new rules are the result of the Vision 100–Century of Aviation Reauthorization Act, 10-year-old legislation that effectively banned the FAA from certifying new foreign repair stations until the new rules went into effect. The new rules, which go into effect in about a month-and-a-half, will apply to the 4,067 FAA-approved Part 145 repair stations in the U.S. and 707 outside the U.S.(as of August 2013).
TSA expands reach with new anti-terror regs
01/10/14:  The Transportation Security Administration on Friday unveiled long awaited regulations designed to protect against terrorist strikes involving aircraft repair stations near airports. Part of the government’s response to the 9/11 attacks of 2001, the regulations extend TSA’s security enforcement authority over the Federal Aviation Administration-certified stations, where commercial planes undergo maintenance.
FAA: Journalists Not Allowed To Use Drones
01/08/14:  While hobbyists can build or buy their own drones and use them, journalists are prohibited from using the technology until at least 2015.  Drones may have once been marketed to the public as a technological tool that farmers, law enforcement officials and journalists would be able to use in order to aid them in their profession.
New FAA Regulations Add to Airlines' Weather Woes
01/07/14:  As if a major snowstorm followed immediately by a polar vortex wasn't enough for airlines to handle, newly imposed regulations from the Federal Aviation Administration (FAA) added yet another challenge.
Pilot reports ‘near-miss with UFO’ flying into Heathrow
01/05/14:  A pilot flying a plane into Heathrow has reported a near miss with a mystery ‘rugby ball-shaped’ UFO, it has been reported.  The captain told the aviation authorities the object came within a few feet of his passenger jet, the Telegraph said this morning.
FAA Issues New Rotorcraft Icing Bulletin
01/03/14:  The FAA is reissuing and revising a Special Airworthiness Information Bulletin (SW-08-03R4) covering recommendations for rotorcraft powered by turboshaft engines flying into snowy or icy conditions. The SAIB describes procedures to reduce the probability of an uncommanded in-flight engine shutdown due to snow and/or ice ingestion and reminds operators that most helicopters are not approved/equipped for flight into icing conditions.

Older News Articles & Press Releases

 

The entire process of getting our insurance done with AAIRRG has been a very efficient and pleasant experience, thanks to excellent support and guidance from Nina Baron and Rick Crebs.
Govind Jawalkar, President
VHL Aircraft, Inc.
 
Received everything just fine.  I am really impressed with the service.
Ted Dunbar
Castleberry Instruments & Avionics
Thank you so much for the prompt service.  It sure makes it easy for me to recommend your company to others in our industry.
Bill Walford
Cross-Check Aviation
 
Read all of our recent testimonials

 

Notice: AAIRRG is a licensed insurance company in the State of Montana. AAIRRG operates in 46 states under the authority of a Federal Law which requires registration with each state in which it wishes to operate. You can ascertain your state’s status by visiting www.aairrg.com/states. If you should find that your state is not included, AAIRRG will register upon your request to become an insured. This offer is void in any state or jurisdiction in which it would violate their rules or regulations.