AIRCRAFT CRASHES: SHOULD AIRCRAFT LESSORS BE HELD LIABLE?

摘要

In April 2000, an Air Philippines flight from Manila to Davao International Airport crashed into a hillside while trying to land, killing all on board. Although a commission appointed by the President of the Philippines determined that pilot error caused the crash, plaintiffs representing the passengers' families filed suit in August 2000 in an Illinois state court against AAR Parts Trading, Inc. (formerly known as AAR Aircraft & Engine Group, Inc.), the lessor that leased the aircraft to Air Philippines prior to the crash, and Fleet Business Credit, LLC, the lessor at the time of the crash. The case, Layug v. AAR, moved slowly through the Illinois state court system until 2008. In 2008, following various motions, amendments, and plaintiff-favorable rulings, Air Philippines' insurers, who were handling the case under various insurance and indemnity provisions in the lease documentation, settled the case for $165 million.