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 and their related activities.

We are delighted to have you visit us.  We are member-owned and, as of July 1, 2015, AAIRRG is owned and controlled by 226 of the independent repair stations in 46 states.  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 fifth 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.

 

 

Boeing's New 747 Jumbo Risks Dangerous Vibration, FAA Says
07-15-2015: Boeing Co.'s newest 747 jumbo jetliner faces a risk of dangerous vibrations, known as "flutter", in limited situations, the Federal Aviation Administration said.
ARSA Works: Continue in Service
07-14-2015: On July 9, ARSA delivered a letter to the FAA aircraft maintenance division regarding the removal and reinstallation of components — a practice affectionately referred to as "salvaged part", "cannibalized part", "part recovery" or "continue-in-service" processes.
SkyWest Airlines facing $1.2 million in FAA penalties
07-13-2015: The Federal Aviation Administration (FAA) is proposing penalties totaling $1.23 million against SkyWest Airlines for two separate cases of regulation violations.
Edgewater man laundered scrap airplane parts, dodged taxes, authorities say
07-11-2015: An Edgewater man was indicted Friday for allegedly using his aircraft parts brokering company in a 19-year conspiracy to launder scrapped and rejected jet engine parts, authorities said.
MRO community to new TSA admin: help us help you
07-09-2015: Daniel Fisher, vice-president of legislative affairs at ARSA, writes for MRO Network about what lies ahead for recently appointed TSA administrator Peter Neffenger.
Test Pilot Admits the F-35 Cannot Dogfight: New Stealth Fighter Is Dead Meat In An Air Battle
06-29-2015: A test pilot has some very, very bad news about the F-35 Joint Strike Fighter. The pricey new stealth jet can't turn or climb fast enough to hit an enemy plane during a dogfight or to dodge the enemy's own gunfire, the pilot reported following a day of mock air battles back in January.
Congress Moves to Cut FAA Funding
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After Germanwings And Malaysia Airlines Tragedies, The FAA Will Study Pilots' Mental Health
05-27-2015: The Federal Aviation Administration said Wednesday that it will join forces with air carriers and the medical community to study the mental and emotional health of commercial pilots. The study could lead to sweeping new recommendations affecting pilots, the airlines and government procedures.
FAA Hiring Scandal Barely Registers with the Media
05-26-2015: The Fox Business Network (FBN) should be congratulated for launching a six-month investigation into the Federal Aviation Administration's hiring practices.
Airbus issues software bug alert after fatal plane crash
05-20-2015: Airbus has issued a critical alert calling for immediate checks on all its A400M aircraft after a report identified a software bug as having caused a fatal crash in Spain earlier this month.
As corporate plane crashes mount, the pattern of pilot error emerges
05-14-2015: An examination by Bloomberg News of US accident records dating back to 2000 shows repeated examples of pilots flying sophisticated small aircraft skipping rudimentary safety checks, working days so long that they test the boundaries of human endurance, or overlooking routine hazards such as ice on the wings.
Bird Strike Does Disturbing Damage To The Nose Of A 737
05-08-2015: Looking at the caved-in nose of this Boeing 737-800, you'd think it flew into a flying water buffalo. But the damage was caused by a single bird — a potent reminder of what can happen when objects collide at high speed.
FAA Investigation Substantiates Mechanics Safety Complaint Against American Airlines
05-01-2015: A March 25 letter from the Federal Aviation Administration to six American Airlines mechanics, who filed whistleblower complaints against the airline for allegedly retaliating against them for reporting maintenance improprieties, states that an investigation of the airline by the agency's Flight Standards Service "substantiated that a violation of an order, regulation or standard of the FAA related to air carrier safety occurred."
FAA Orders Fix for Possible Power Loss in Boeing 787
04-30-2015: Many mechanical components in the Boeing 787 have been replaced with electrical ones for lower weight and more economical operation, but that has also made it much more reliant on electrical power than previous generations of planes.
FAA proposes $430,000 fine against Beechcraft
04-16-2015: The U.S. Federal Aviation Administration has proposed a $430,000 civil penalty against Beechcraft Corp. in Wichita for what it says was a failure to maintain quality control in the production process.
FAA Calls Out 'Systemic' Hazard at United
04-10-2015: Federal aviation inspectors stepped up oversight of United Continental Holdings Inc. two months ago, citing risks from repeated violations of mandatory pilot qualification and scheduling requirements.
FAA Once Again Fines Southwest Airlines For Maintenance Related Violations
04-01-2015: For the second time in the last 12 months, Southwest Airlines is facing another fine from the Federal Aviation Administration because of safety issues; this time totaling $328,550.

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

 

 

 

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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.