Euro airlines avert insurance crisis

by Canadian Shipper

European Community nations have decided to provide war risk coverage to their airlines in the face of a warning by insurers that effective at midnight Monday night third-party liability would be capped at $50 million.

European airline leaders met with European Commission VP Loyola de Palacio last Thursday on the subject of state financial relief from anticipated higher costs in the wake of the Sept. 11 terrorist attacks including insurance charges.

Insurance premiums have been raised “eightfold for passenger liability and by a factor of 15 for war risks” and the figures “are not negotiable,” according to the Assn. of European Airlines.

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