Canadian Underwriter

EU approves extending government aviation cover against terrorism losses

March 27, 2002   by Canadian Underwriter

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Following a proposal announced last week by Germany to extend existing government guarantees against terrorism and war related losses for the airline industry, the European Commission has voted approval for a 60-day extension to allow the European airline industry to come up with an alternative solution to traditional insurance cover. Existing European government guarantees against terrorism are set to expire at the end of this month.
The EU decision to extend government covers follows on similar steps taken by the U.S. and Canadian governments earlier this month. The EU is concerned that, by not extending the guarantees, European airlines would be competing at a disadvantage to their trans-Atlantic rivals. "It makes sense for the Europeans to do the same thing [as the U.S.]. There must be fair competition," says Germany’s transport minister, Kurt Bodewig.

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