Commercial Aviation Law and Business for Non-Air Carriers

The first business in the Western United States to engage in executive charter was Clay Lacy Aviation LLC, established in 1968. As the name implies, flying was founded by Clay Lacy, who was born in August 1932. The business, which has its headquarters in Los Angeles' San Fernando Valley, takes great pleasure in providing excellent, private, and secure customer service. Their goal is to satisfy each client's needs. (Clay Lacy Aviation, 2017). With time, the business expanded its reach, adding Seattle, Oxford, Carlsbad, Santa Ana, Goleta, Connecticut, Kahului, Santa Monica, Oakland, Las Vegas, and Portland to its list of service areas. Their services range from hotel, travel, restaurant, to ground transportation for clients. The company

has a big ramp that frequently houses airliners, Boeing Business Jets, and corporate jets. Clay Lacy aviation uses NATA Safety First Training Program to train its employees who have approximately 60 years combined competency.

Due to its exemplary performance in the aviation world, the company has been presented with various accolades and rewards. Some of the awards are Best aviation jet charter and management companies; FAA Diamond award; and “Best Pilot Training Program” .Likewise, in the 2016 Pro Pilot PRASE Survey, the company was voted as the best US FBOS and voted number 14 as best independent FBO. In the just concluded 2026 Pilot’s Choice Awards, the company became second best FBO in the Southwest region (Paragon Aviation Group, 2017).

Nature and Scope of Operation

Clay Lacy Aviation Company concentrates on offering supreme services to its customers. The services offered are

Worldwide private jet charter

The company offers private jet charter that is tailored to meet the client’s needs. Likewise, their meals and personal services are of utter quality (Clay Lacy Aviation, 2011).

Management of Aircraft

Clay Lacy offers jet management services like class 3 and 4 part 145 repair station, private jet facilities, and interior completions and upgrade.

Maintenance

The company has well trained and skilled technicians who carry out routine assessments to key refurbishments, adjustments, and upgrades.

Selling and procurements of jets

Clay Lacy ha 45 years of experience in procurement and selling of all model of business jet aircraft.

Insurance Covers

The services that Clay Lacy Aviation offers may expose the company to liability in various areas. These exposures entail Charter, Hangar keepers, Ground operations, and Maintenance. Therefore, the company should be able to identify and manage these risks to carry out successfully its operations (Air Capital Insurance, LLC, 2017). Some of the insurance policies that the company should buy are

Manufacturing and Product Liability

Aviation manufacturing and product liability is one of the key substantial coverage that Clay Lacy Company should have since its claim is usually quite expensive when need arises. This liability comes in handy in cases where an accident occurs as the result of negligence by maintenance facility during repair of an aircraft. Nevertheless, only the bodily injury is covered and not the damaged product itself.

Hangerkeepers Liability

Since Clay Lacy deals with maintenance of other company’s aircraft, it is vital that they have liability protection. This liability insures the company against client’s property while in their custody, care or control. The coverage has two limits of payment: one for the maximum compensation for damage to any client’s aircraft and the other one for a distinct limit for a maximum compensation for any other incidence.

workers’ compensation

Clay lacy should pay its employees worker’s for compensation benefit if they get hurt on the job. The benefits of this cover include medical care, death, temporary and permanent disability reimbursements.

Airport Premises liability

Clay lacy is a well-established and widely known company it is required to uphold the safety of its visitors and their property. However, it does not lack some kind of exposures due to premises liability. For example, a client can wind up on the floor from a broken sit in the manager’s office. Having premises liability cover will aid in paying medical expenses if any injuries occurred. Moreover, in case the company is sued, legal defense expenses would be paid for.

Labor Unions

Trade union can be defined as a group of employees who come together with the key aim of maintaining or improving employment conditions of its members. The key reason for formation of trade union is wages and salaries. When some differences arise in the process of implementing salaries and wages, the union may come in and bargain the pay scales on behalf of its member (University and College Union, n.d.).

The unions also aim at safeguarding the health of employees. As a result, they normally demand the management to offer its workers with working environment that is conducive. These include safety equipment, refreshment, social security benefits, holidays, lighting and ventilation, and leave and rest hours. Apart from better working conditions, the trade unions also protect the employees from management clutches whenever they become the victims of disciplinary policies and unilateral acts. Management victimization act include dismissals, penal transfers, and suspensions.

Trade unions look into the welfare of workers like solving their personal problems. For example, it may notify the management the challenges that its workers are facing in respect to staff quarters, sanitation, schools, and hospitals. Good relations between the employer and employee normally lead to industrial peace. However, management’s unilateral thinking and authoritative attitude may trigger conflicts disrupting the relations between the management and workers. Through conducting continuous negotiations with the management, unions can restore piece in the company. The unions may also aid in fighting against staffs policies that relate to recruitment, selection, training, transfers, and promotions that are not properly implemented.

After thorough research, there is no evidence that shows that Clay Lacy Aviation’s staff members are represented by a labor union. Moreover, there is no strike activity experienced by the company since 2000. The likely reason why employees are not represented by labor unions and lack of disruptions is that the company takes pride in the seeking perfection in all its activities. Therefore, the company values its employees by recognized them as the most valuable asset they possess (Clay lacy Aviation, 2011). As a result, it looks at the welfare of its employees by offering them satisfying salaries and wages, safe working environment, promote communication between management and workers, and other remunerations. Fundamentally, the Clay Lacy meets most of the labor unions demands.

Clay Lacy Aviation Mergers

One of Clay Lacy Aviation key objectives is to expand its business to new territories. Therefore, the company has put in place various strategies to achieve its goals. One strategy the company has employed is merging with other companies. According to Madler (2016), Clay Lacy Aviation amalgamated with Key Air Aviation, a company that deals with charter sale of jets, and aircraft management as a way of expanding its services on the East coast area. Merging with Key Air brings the number of managed aircraft by Clay Lacy to 75. In addition, Key Air will be able to offer its services at Seattle and Van Nuys. Brian Kirkdoffer, Clay Lacy Chief Executive claims that merging with Key Air was a response to clients’ needs who wanted the company to have greater presence in East Coast. The Chief Executive further argued that they have been able to achieve great services, safety, and value in their business attributed to the exceptional workers they have.

Clay Lacy will also consolidate with Priester Aviation that is located in Chicago. They agreed that each company would continue functioning under its operating certificates, concentrate on its chief goals and uphold its brands. However, the companies will work a unit in providing additional value to their clients. Their key operation areas will be charter, avionics, purchasing, sales, maintenance, interior refurbishment, aircraft management, and consultation. The partnership will be one of the biggest charter and aircraft management in the United States considering that it will have a fleet of roughly a hundred managed and seventy charter aircraft of all sizes. In Kirkdoffer statement, he argued that partnership is beneficial not only to the company but also to its clients since robust buying power, down time, and cost reduction will be witnessed in future. The president and COO of Priester Aviation, Andy Priester, was confident that the coalition will increase service offering ad promote efficiencies in the aviation operations (Clay Lacy Aviation, 2011).

In Spruce (2016) article, he claims that the Clay Lacy Aviation will consolidate with SmartSky, a company that deals with installation, repair and sales of cabin entertainment and avionics products, in creating an STC for the 4-generation network. Clay Lacy promised great service to its clients. To fulfill its promise, Avionics director, Jim Lauer and the team assessed various technologies that will offer high-speed Wi-Fi. They concluded that SmartSky Networks is the best option since it offers relatively cheap, continuous internet that will be beneficial to passengers, particularly corporate clients.

Business Laws

A merger can be defined as the attainment of control over part or whole business. California Antitrust merger law entails substantive provisions that empower state and federal commissioners to challenge merges and acquisitions that are anti-competitive. For example, a merger or fusion between two competitors maybe challenged if the partnership leads to exceedingly dominant position or control of power that is believed to be harmful to consumers. Various federal antitrust laws exist. In California, the key antitrust law is the Cartwright Act.

Cartwright Act was approved in 1907 whose goal was to bar anti-competitive undertakings. Just like Clayton Antitrust Act and Sherman Antitrust Act, Cartwright prohibits two or more people or businesses amalgamating its skill, capital or any other action for the following intentions:

To set prices of goods and services at a certain level

To thwart completion from rivals

To agree on production reduction or price increase on particular merchandise or services

To increase demand for certain commodities by restricting trade

To prevent free competition by entering into agreements that trammels the partners from selling services or products

Essential elements

Fundamentally, violation of the Cartwright Act happens when independent businesses form alliances that restrain competition or trade and/or involve in concerted business.

Concerted Activity

Concerted activity normally involves two or more parties that have a conscious vow to a joint scheme planned to attain an illegal goal. Moreover, there is proof that tends to show that the parties involved were acting dependently. The agreement between parties that may result in parallel comportment can cause antitrust concerns. The arrangement does not need to be formal for it to be illegal.

Restraint of trade

Two or more companies may collaborate to restrain competition or trade. According to Tran-Lien (2012), some trade or competition restrain are legal. However, Cartwright Act hinders restraints of trade that are thought to be unreasonable. Unreasonable restraints are classified into two groups: “per se” and “Rule of Reason”.

In Per Se unreasonable, one can obviously see that the partnership between participants is anti-competitive. Therefore, no further assessment of the justifications or intent is needed, and the agreement is said to violate the Cartwright law. Contracts between businesses to involve in group boycotts, price fixing, or dividing and sharing markets are some of the agreements that have been impounded per se unreasonable.

Contracts that are not patently anti-competitive are subjected to further analysis using the rule of reason, which aid in establishing their impact on competition. The court normally weighs the agreement’s pro-competitive aims and impacts and compares them to the anti-competitive intentions and influences. In addition, the court scrutinizes any relevant facts that are related to the agreement before making any judgment.

References

Air Capital Insurance, LLC. (2017). FBO and Aviation Property | Air Capital Insurance. Retrieved from http://www.aircapitalins.com/FBO-AviationProperty.html

Clay Lacy Aviation. (2011). Aircraft Sales | Clay Lacy Aviation. Retrieved from https://www.claylacy.com/aircraft-sales

Clay Lacy Merges With East Coast Aviation Firm. (2016). San Fernando Valley Business Journal.

Paragon Aviation Group. (2017). Clay Lacy Van Nuys | Van Nuys Airport (KVNY) | Los Angeles FBO. Retrieved from http://www.paragonaviationgroup.com/paragon-fbo-network/kvny-van-nuys-ca/

Spruce, T. (2016, March 29). Clay Lacy Aviation partners with SmartSky | Corporate Jet Investor. Retrieved from https://corporatejetinvestor.com/articles/clay-lacy-aviation-partners-with-smartsky-919/

Tran-Lien, A. (2012). Avoiding Antitrust Problems in Practice.

University and College Union. (n.d.). What do trade unions do? Retrieved from https://www.ucu.org.uk/media/4834/Factsheet-1--trade-unions/pdf/UCU_factsheet1_unions.pdf