Canadian Underwriter

Airline cover extended to new flyers

June 6, 2002   by Canadian Underwriter

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Canadian Transport Minister David Collenette says new entrants into the airline industry will enjoy the same war-risk coverage currently being extended by the government to existing companies. The temporary cover is for third-party war-risk liability and was introduced after insurers withdrew the coverage following the September 11 terrorist attacks.
The coverage deadline has been extended several times and currently runs until July 19, 2002.
However, in a press release, Collenette insists that the government’s intervention is not going to be permanent. “Our intervention in the insurance market is only temporary; we will continue to participate in discussions with other countries and the industry to help find a permanent solution,” he says.
The program covers existing airlines, airports, NAV Canada and other service providers such as ground handlers and re-fuellers. It will also cover new entities coming into being post-September 11. “The Government of Canada is extending these terms to new entrants in order to facilitate diversification and further promote competition in the Canadian air industry,” says Collenette.
Halifax’s CanJet says it will resume flying later this month, and a new airline based out of Montreal, Jetsgo, will hit the air soon. As well, Air Canada plans to start another subsidiary called Zip Air this summer.

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