AAIRRG | Aviation Alliance Insurance Risk Retention Group, Inc.


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 January 1, 2015, AAIRRG is owned and controlled by 216 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 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
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.



United faces $1.3M FAA fine for in-flight hazmat violations
01-28-2015: United Airlines is facing Federal Aviation Administration fines of $1.3 million stemming from at least 120 alleged violations involving hazardous material cargo on passenger flights, including several at Denver International Airport.
Drone Operator Settles Case With FAA for $1100 Fine
01-22-2015: An attorney for a drone operator who challenged the government's ban of commercial drone flights says his client has settled the case for an $1,100 fine.
Industry Balks at Requiring FAA OK To Surrender Repair Station Certificate
01-14-2015: A coalition of aviation trade associations petitioned the FAA on Friday to restore the right for a repair station to surrender its certificate voluntarily. In its new repair station rule, which became effective last November, the FAA took the unprecedented step of subjecting surrendered certificates to "acceptance for cancellation".
Industry to FAA: Repair Stations Know When to Fold 'Em
01-12-2015: On January 9, a coalition of aviation trade associations petitioned the Federal Aviation Administration (FAA) to restore the right to voluntarily surrender a repair station certificate.
FAA to Require Airlines Use Data to Prevent Accidents
01-07-2015: New federal rules announced Wednesday will require airlines to collect and analyze safety data in an effort to spot troubling trends and help prevent accidents.
When does a washer cost $317,500? When It is not installed...
01-05-2015: FAA is proposing a $317,500 civil penalty against United Air Lines, for allegedly operating an aircraft that was not in compliance with Federal Aviation Regulations.
FAA protecting airplanes from lightning strikes
12-17-2014: The Federal Aviation Administration is looking to better protect airplanes from being struck by lightning.  The FAA proposed new airworthiness standards Wednesday that it says would reduce the risk of a lightning strike sending a plane crashing to the ground.
Terrorism Insurance Is Rejected in the Senate
12-16-2014: Federal terrorism insurance, the government backstop that was first passed in the wake of the September 11, 2001, terrorist attacks, died in the Senate on Tuesday night after a retiring senator refused to drop his opposition to an extraneous measure that had been added at the last minute by House Republicans.
Sweden says Russian military jet nearly crashes into passenger plane; Russia issues denial
12-15-2014: A Russian military jet nearly collided with a commercial passenger airplane in international airspace near southern Sweden on Friday, the Swedish authorities said, but Russia insisted on Sunday that its jet had kept at a safe distance.
U.S. OK's more commercial drone use as Congress probes risks
12-10-2014: The U.S. Federal Aviation Administration on Wednesday granted four more companies exemptions to use drones commercially, further opening the airspace to unmanned aircraft even as lawmakers raised questions about the risks.
airliners crash less, but repairs are more expensive
12-04-2014:  Despite the long-term trend for fewer airline fatalities, innovations in aircraft are raising the cost to repair and replace planes, according to a study released Thursday.
FAA's fright or flight
12-03-2014:  The Holiday season is officially here and, as of Black Friday, at full tilt. For many, this time of year is about shopping, giving and good tidings. But, for those of us traveling, the season's holidays bring a certain level of high anxiety.
FAA's Word on Bonded Repair Size Limits (Final Policy)
11-26-2014:  On November 24, the FAA issued a final policy (PS-AIR-100-14-130-001) regarding bonded repair size limits. ARSA's regulatory team is currently reviewing. Stay tuned.
At FAA, bigger budgets for less work lead to waste
11-20-2014:  The Federal Aviation Administration's budget demands continue to grow, even though air traffic has dropped in recent years and the agency's productivity has significantly declined, according to a damning internal audit.
FAA easing restrictions on older pilots
11-12-2014: They believe they can fly.  The Federal Aviation Administration (FAA) is loosening the age restrictions for older pilots, the agency said Wednesday.  Pilots over 60 will no longer be required to fly side-by-side with a younger pilot on international flights to compensate for various physical limitations and health problems they may face after that age.
FAA confirms date for air ambulance rule
11-11-2014: A final rule regarding safety regulations for helicopter air ambulances will go into effect April 22, 2015, the Federal Aviation Administration announced.
FAA amends repair station rule
11-10-2014: ARSA, Airlines for America (A4A) and MRO facilities across the US are celebrating a victory of common sense, after the FAA reinserted the word "serious" into its revision of paragraph 14 of Part 145 of the Code of Federal Regulations (CFR).
Record Claims To Boost Price Of Insuring Planes Against Attack
10-21-2014: Insurers worldwide are going to have to pay up to a record $800 million to cover the damage done by attacks on airplanes this year, driving prices up and drawing rivals into the market.
Battery Fires on Planes Spur New Proposals
10-13-2014: An international team of aviation safety experts has called for sweeping changes in packaging and other safeguards to limit the fire hazard posed by bulk shipments of lithium batteries on commercial planes.
FAA Feedback: The Yellow Tag
10-07-2014: A question often asked as I travel around the country giving safety seminars is: Does a yellow tag satisfy the requirements of a maintenance release?
Your Word is Your Bond — Bonded Repair Size Limits Draft Policy
10-02-2014: A member has alerted ARSA to a draft policy from the FAA regarding Bonded Repair Size Limits that would require design approval holder (DAH) substantiation on any repairs developed by owners, operators, repair stations, Designated Engineering Representatives (DER), or engineering firms.
FAA Orders Replacement of Pilot Displays on Boeing Jets
09-30-2014: Federal regulators have ordered replacement of pilot displays on more than 1,300 Boeing Co. jets, including some of the newest 737 models, to prevent possible interference from Wi-Fi devices used in cockpits.
FAA: Dozens of Alaska aircraft mechanics must retake exams
09-28-2014: According to a formal notice issued last month by the Federal Aviation Administration, all individuals holding mechanic certificates with airframe or powerplant ratings (or both) who were tested by Designated Mechanic Examiner (DME) Marty James Simmons of Anchorage must be re-examined.
Coalition of Aviation Groups Sends "Serious" Petition to FAA
09-23-2014: On Sept. 22, a coalition of aviation trade associations asked the FAA (Federal Aviation Administration) to fix a seven-letter mistake in the Code of Federal Regulations (CFR) that would create serious headaches for the aviation maintenance industry.
Gulfstream faces $425,000 FAA fine over mechanic training
09-18-2014: The Federal Aviation Administration has proposed a $425,000 civil penalty against Savannah-based Gulfstream Aerospace Corp.
Aviation Group Questions FAA Repair Station Rule
08-25-2014: Not everyone is convinced the FAA's recently issued final Part 145 rule, which governs maintenance of U.S.-registered aircraft, aligns with the intent of the original notice of proposed rulemaking (NPRM).
FAA: Lithium Batteries Pose More Danger Than Thought
08-14-2014: New tests conducted by the Federal Aviation Administration suggest that lithium batteries pose more dangers to planes than previously thought.
ARSA Reviewing Amended Repair Station Regulations
08-13-2014: The FAA has issued amended repair station regulations that allow the agency to deny an application for a new repair station certificate if the applicant or certain associated key individuals had materially contributed to the circumstances that caused a previous repair station certificate revocation action.
FAA proposes S-92 oil pump failure prevention mandate
07-30-2014: The US Federal Aviation Administration has proposed to mandate a series of actions already recommended by Sikorsky aimed at preventing a main gearbox oil pump failure on the airframer's S-92 helicopter.
ARSA: FAA Agrees: Line Maintenance can be Major
07-29-2014: In a quick turnaround, the Aircraft Maintenance Division responded within two days to ARSA's question about airframe-rated repair stations with line maintenance authorization performing major repairs and alterations. The agency agreed with the association's interpretation that the CFR's definition of line maintenance does not imply a prohibition against non-specified activities.
FAA proposes $12 million fine against Southwest over repairs
07-28-2014: Southwest Airlines Co. may have to pay a $12 million penalty to the U.S. government for operating "numerous flights" in 2009 after being notified that repairs to its airplanes didn't live up to federal regulations.
Trade Associations Weigh in on Foreign Mx Drug Testing
07-23-2014: A coalition of aviation trade associations spoke out on behalf of the international maintenance, repair and overhaul market.
IG Concerned over FAA's Growing Backlog
07-04-2014:  The FAA's Flight Standards District Offices (FSDOs) have a backlog of applications for certificates that concerns the Department of Transportation Inspector General's Office.

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.