U.S. Code » Title 49 » Subtitle SUBTITLE VII— AVIATION PROGRAMS › Part PART A— AIR COMMERCE AND SAFETY › Subpart subpart ii— economic regulation › Chapter CHAPTER 411— AIR CARRIER CERTIFICATES

49 U.S.C. § 41112

Liability insurance and financial responsibility

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(a)Liability Insurance.—The Secretary of Transportation may issue a certificate to a citizen of the United States to provide air transportation as an air carrier under section 41102 of this title only if the citizen complies with regulations and orders of the Secretary governing the filing of an insurance policy or self-insurance plan approved by the Secretary. The policy or plan must be sufficient to pay, not more than the amount of the insurance, for bodily injury to, or death of, an individual or for loss of, or damage to, property of others, resulting from the operation or maintenance of the aircraft under the certificate. A certificate does not remain in effect unless the carrier complies with this subsection.(b)Financial Responsibility.—To protect passengers and shippers using an aircraft operated by an air carrier issued a certificate under section 41102 of this title, the Secretary may require the carrier to file a performance bond or equivalent security in the amount and on terms the Secretary prescribes. The bond or security must be sufficient to ensure the carrier adequately will pay the passengers and shippers when the transportation the carrier agrees to provide is not provided. The Secretary shall prescribe the amounts to be paid under this subsection.(Pub. L. 103–272, § 1(e), July 5, 1994, 108 Stat. 1126.)

Historical and Revision Notes

Revised

Section

Source (U.S. Code)

Source (Statutes at Large)

41112

49 App.:1371(q).

Aug. 23, 1958, Pub. L. 85–726, 72 Stat. 731, § 401(q); added Oct. 24, 1978, Pub. L. 95–504, § 20(d)(1), 92 Stat. 1722.

 

49 App.:1551(b)(1)(E).

Aug. 23, 1958, Pub. L. 85–726, 72 Stat. 731, § 1601(b)(1)(E); added Oct. 4, 1984, Pub. L. 98–443, § 3(e), 98 Stat. 1704.

In subsection (a), the words “citizen of the United States” and “citizen” are substituted for “applicant for such certificate or the air carrier” for clarity and consistency because only a citizen of the United States may be an “air carrier” as defined in section 40102(a) of the revised title and receive a certificate. The words “as the case may be” are omitted as surplus. The words “to provide air transportation as an air carrier under section 41102 of this title” are added for clarity. The words “approved by the Secretary” are substituted for “governing the filing and approval . . . in the amount prescribed by the Board” to eliminate unnecessary words. The words “The policy or plan must be sufficient to pay” are substituted for “which are conditioned to pay . . . amounts” for clarity. The words “for which such applicant or such air carrier may become liable for” are omitted as surplus.

In subsection (b), the word “passengers” is substituted for “travelers” for consistency in this chapter. The words “issued . . . under section 41102 of this title” are added for clarity. The word “arrangement” is omitted as surplus. The word “provide” is substituted for “perform” for consistency in the revised title.

Notes of Decisions
Cited in 42 cases (6 in the last 5 years), 1995–2025 · leading case: Taj Mahal Travel, Inc. v. Delta Airlines Inc. Air Canada Airlines Reporting Corp., 164 F.3d 186 (3rd Cir. 1998).
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Taj Mahal Travel, Inc. v. Delta Airlines Inc. Air Canada Airlines Reporting Corp., 164 F.3d 186 (3rd Cir. 1998). · cites it 2× “The Court reasoned that a carry-over provision of the Federal Aviation Act requiring airlines to carry insurance covering liability for personal injuries “resulting from the operation or maintenance of aircraft,” 49 U.”
Bower v. Egyptair Airlines Co., 731 F.3d 85 (1st Cir. 2013). · cites it 2× “§ 40120 (c), as well as its mandated insurance coverage provision, 49 U.S.C. § 41112 (a), would not make sense unless Congress intended certain tort claims to survive preemption.”
Branche v. Airtran Airways, Inc., 342 F.3d 1248 (11th Cir. 2003). “” 49 U.S.C. § 41112 (a). Unsurprisingly, airlines do not compete on the basis of likelihood of personal injury, i.”
John Watson, V v. Air Methods Corp., 870 F.3d 812 (8th Cir. 2017). “” It is unlikely, for example, that all personal-injury claims against air carriers based on unsafe operations or maintenance are expressly pre-empted by the ADA, given that federal law requires carriers to maintain insurance for bodily injury, death, or property damages…”
Witty v. Delta Air Lines, Inc., 366 F.3d 380 (5th Cir. 2004). “1 In Hodges , we held that the preemptive effect of § 41713(b)(1) is limited by a provision of the Federal Aviation Act of 1958(FAA), 49 U.S.C. § 41112 (a) (previously codified at 49 U.”
Cont'l Airlines, Inc. v. Kiefer, 920 S.W.2d 274 (Tex. 1996). “7; see 49 U.S.C.A. § 41112 (a) (West Supp.1995) (formerly codified at 49 U.”
Gill v. JetBlue Airways Corp., 836 F. Supp. 2d 33 (D. Mass. 2011). · cites it 2× “” 49 U.S.C. § 41112 (a). Such insurance policies would be unnecessary if state-law tort claims arising from aircraft operations were entirely preempted under 49 U.”
Scott v. Milosevic, 372 F. Supp. 3d 758 (N.D. Iowa 2019). “" It is unlikely, for example, that all personal-injury claims against air carriers based on unsafe operations or maintenance are expressly pre-empted by the ADA, given that federal law requires carriers to maintain insurance for bodily injury, death, or property damages…”
Charas v. Trans World Airlines, Inc., 160 F.3d 1259 (9th Cir. 1998). “§ 1371(q) (recodified as 49 U.S.C. § 41112 (a)). Complete preemption of state law in this arena would have rendered pointless this requirement for insurance coverage.”
Martin Ex Rel. Heckman v. MIDWEST EXP. HOLDINGS, 555 F.3d 806 (9th Cir. 2009). “" 49 U.S.C. § 41112 . As the FAA doesn't create a federal cause of action for personal injury suits, see Bennett v.”
Martin v. Midwest Express Holdings, Inc., 555 F.3d 806 (9th Cir. 2009). · cites it 2× “” 49 U.S.C. § 41112 . As the FAA doesn’t create a federal cause of action for personal injury suits, see Bennett v.”
Aquino v. Asiana Airlines, Inc., 130 Cal. Rptr. 2d 223 (Cal. Ct. App. 2003). · cites it 2× “§ 1371(q) (recodified as 49 U.S.C. § 41112 (a)). Complete preemption of state law in this arena would have rendered pointless this requirement for insurance coverage.”
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— 49 U.S.C. § 41112(a) — 1 case
Manning v. Skywest Airlines, 946 F. Supp. 767 (C.D. Cal. 1996).
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