Aircraft owners often hire management companies to handle maintenance, scheduling, crew hiring and regulatory paperwork. Although owners can delegate many of these tasks, determining legal responsibility for a management mistake is not always straightforward. Federal aviation regulations may place responsibility on the owner, operator, pilot or another party depending on the type of operation and what went wrong.
The management agreement defines contractual responsibilities
A management agreement typically explains which duties belong to the aircraft owner and which belong to the management company. It may address maintenance tracking, pilot staffing, regulatory compliance and other operational responsibilities. The agreement may also contain indemnification provisions that determine which party must cover certain losses or defend against certain civil claims.
However, the agreement does not necessarily determine responsibility under federal aviation regulations. Regulatory responsibility may depend on the type of operation, the parties’ actual roles and who exercised operational control over the flight. Reviewing both the agreement and the circumstances surrounding the mistake can therefore help clarify each party’s potential responsibility.
Different factors affect responsibility
The type of mistake can influence which person or company may be responsible. Federal aviation regulations impose different duties on owners, operators, pilots, mechanics and certificate holders depending on the circumstances. Several factors may affect the analysis, including:
- Maintenance errors: Mechanics are responsible for properly performing and documenting the maintenance they undertake. Under certain federal aviation rules, the owner or operator also has responsibility for maintaining the aircraft in an airworthy condition and ensuring required inspections are completed.
- Crew and operational errors: The pilot in command is directly responsible for and has final authority over the operation of the aircraft. Responsibility may also depend on which party exercised operational control, including authority over initiating, conducting or ending a flight.
- Insurance coverage: Insurance policies can affect which losses are covered and which parties receive protection after an accident or other incident. Coverage may depend on the policy terms, exclusions and whether the owner, management company or another party qualifies as an insured.
As a result, determining responsibility requires more than identifying who made the immediate mistake. The parties’ regulatory duties, actual control over the operation, contractual obligations and applicable insurance coverage may all affect the outcome.
Why legal guidance helps after a mistake
Aircraft management disputes can involve several overlapping issues, including federal aviation regulations, contractual obligations and insurance coverage. An FAA investigation may also raise different questions from a civil claim between an owner, management company or another party.
An aviation attorney can review the management agreement, the circumstances surrounding the mistake and the applicable regulations. This review can help an aircraft owner understand potential liability, available insurance coverage and options for responding to an investigation or civil claim.