Legal hazards of rating air safety

From a Forbes article on safety problems in charter aviation:

Businesses pay [Joseph Moeggenberg’s] company, Aviation Research Group/U.S., or “Argus” in the trade, as much as $20,000 per month for full access to ratings reports on 848 charters, or $249 for a single report. Argus provides specifics about a flight, the jet’s history, the owner, whether the plane is double-booked from another charter, the pilot’s record and so on. It assigns a red, yellow or green light on safety (36% receive reds or yellows).

One charter outfit got a prescient “Does Not Qualify” rating from Argus: Aviation Charter of Eden Prairie, Minn., which flew U.S. Senator Paul Wellstone of Minnesota in a Beechcraft King Air A100 as he campaigned for reelection in October 2002. When a newspaper later reported that Aviation Charter got a bad rating, the company sued Argus for defamation but lost the case on summary judgment; the case is pending on appeal. The flight crashed at the Eveleth, Minn. airport in October 2002, killing all eight people aboard, including the senator, his wife and their adult daughter. Says Argus attorney Eric Heiberg of Minneapolis: “I can’t imagine we’re going to lose.”

(Seth Lubove, “Flight of Fear”, Forbes, May 9). An online summary of the case (Aug. 2004, courtesy Cousineau McGuire & Anderson; scroll to “Federal Courts — Defamation”) indicates that the court agreed that the rating contained inaccuracies which harmed Aviation Charter’s reputation, but found no proof that Argus had acted with malice or reckless disregard for the truth. Update Mar. 15, 2006: Eighth Circuit (in summer 2005) dismissed suit, ruling ratings subjective.

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