A Policy Investigation of Product Liability in the U.S. General Aviation Manufacturing Industry

The U.S. general aviation manufacturing industry has deteriorated almost to the point of extinction within the past decade. There are several factors potentially contributing to this deterioration; however, the escalation and unpredictability of product-liability costs are claimed to be the most significant.

General aviation manufacturers are subject to the product-liability laws of each state. Efforts to reform this system have been underway since 1986. However, these efforts have been stymied by opponents whose primary concern is that the reform will not allow some accident victims to be properly compensated for their damages.

There are immediate policy alternatives that will potentially alleviate the product-liability problem of the industry: General Aviation Accident Liability Standards Act, Product Liability Fairness Act, and state reform. Other alternatives that require further investigation include increased safety regulation and mandatory pilot liability insurance. A comprehensive plan combining the provisions of the General Aviation Accident Liability Standards Act and other components to further protect the consumers is recommended.