European airports face closure in insurance crisis

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Without the immediate support of European governments, airlines and airports will soon be left with insufficient third-party and terrorism insurance cover to ensure the continuation of normal operations

European Transport Ministers meeting in Luxembourg on October 3 must decide to give the region's airports time to develop a lasting solution to the crisis, said Airports Council International (ACI) Europe in a statement.

ACI Europe director general Philippe Hamon said, "European governments must step in until a viable solution to the insurance crisis has been established. Only one tenth of the necessary cover remains on offer to each airport. Insurers - as before - can similtaneously withdraw cover leaving airports unable to operate. Worse still, this clause may now be invoked following an act of terrorism unconnected with aviation. The risks are extreme."

Airlines have also joined the demands for government action. Association of European Airlines (AEA) secretary general Ulrich Schulte-Strathaus said, "The mere possibility of a war in the Gulf region is having an impact on the travelling public. In times such as these airlines are in particular need of a stable framework."

"International aviation requires international solutions," said the secretary general. "European governments should therefore align their policy with that of the US government, which is considering to prolong the state guarantees for insurance coverage for another year."

Two proposals in the form of mutual insurance funds EUROTIME and GLOBALTIME offer a permanent solution and have the full support of the industry. Yet both proposals take time to establish said ACI. See also last week's report (TRW 25/09/02) for further details.