FBO liability

RyanB

RyanB

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How does liability work with an FBO? For example, a big wig comes in and leaves his jet with Signature or one of the other big names, and something happens to it while on their property (ie., hangar rash). Does the FBO cover this in most cases or is up to the owner to flip the tab?
 
When I was with Falcon Jet if my guys dinged it we fixed it. Falcon Jet was self Insured. A wingtip went for over 10 grand for a Falcon 10. Accidents on the ramp caused by crews was covered by their insurance.
We actually had a guy attempt to beat the Ice off his door with his shoe, on a beech jet. He then blamed the damage on my line guys. Thing was, I had snapped a picture of him doing it...
 
Depends on the FBO. Signature wanted us to sign a waiver of subrogation for the Bonanza. Our insurance balked at that. We had them change a few things on the lease to make the insurance company happy.
 
Ryanb said:
How does liability work with an FBO? For example, a big wig comes in and leaves his jet with Signature or one of the other big names, and something happens to it while on their property (ie., hangar rash). Does the FBO cover this in most cases or is up to the owner to flip the tab?
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When this happens it is really bad juju because besides damage to the plane there is a loss of use issue. Airplane repairs are never quick.

The owners insurance will cover the repair and suborgate against the FBO. This means the FBOs insurance will repay the owners insurance. The owner will also sue the FBO for loss of use. The FBO’s insurance will settle with the owner for that loss.

This is one of the reason ramp fees for jets are expensive.
 
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Clip4 said:
When this happens it is really bad juju because besides damage to the plane there is a loss of use issue ...This is one of the reason ramp fees for jets are expensive.
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Might be cheaper overall to hire competent workers. (And check the fees at some of the places for light planes; wanna pay $125 to ramp your Cherokee?)
 
Clip4 said:
This is one of the reason ramp fees for jets are expensive.
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Margin on fuel big enough for them to continue the ‘buy xyz gallons and we’ll waive the ramp fee’ ...?
 
Ryanb said:
Margin on fuel big enough for them to continue the ‘buy xyz gallons and we’ll waive the ramp fee’ ...?
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I heard we were making 30-40% on fuel at my last fbo but no idea if that was true or not. Cost to buy vs selling price.
 
Ryanb said:
Margin on fuel big enough for them to continue the ‘buy xyz gallons and we’ll waive the ramp fee’ ...?
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Except big wig seldom buys fuel at a destination FBO, called tankering fuel, and when he does it is usually at a contracted price with the supplier.
 
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Ryanb said:
How does liability work with an FBO? For example, a big wig comes in and leaves his jet with Signature or one of the other big names, and something happens to it while on their property (ie., hangar rash). Does the FBO cover this in most cases or is up to the owner to flip the tab?
Click to expand...
Ryanb said:
How does liability work with an FBO? For example, a big wig comes in and leaves his jet with Signature or one of the other big names, and something happens to it while on their property (ie., hangar rash). Does the FBO cover this in most cases or is up to the owner to flip the tab?
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In Wa. state unless you have an agreement that they have responsibility, it will be between you and your insurance company.
 
Is it different for someone who bases there vs transient use of the FBO? Usually there is a different amount of "handling."

Also, let's say i keep my CJ2 at Signature in XYZ city. Is there a financial incentive you use them everywhere instead of the best deal at transient stops/overnights?
 
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