European airports face new insurance crisis

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Airports Council International (ACI) Europe has warned that airports are facing the renewed threat of insufficient insurance cover and the withdrawal of vital government assistance

This is despite a European Commission claim that there has been a return to normal insurance market conditions. "The level of war and terrorism cover on offer remains a fraction of what is required," said ACI in a statement. "New and tougher conditions have been enforced by the insurance industry."

On October 31 the European Commission will withdraw permission for temporary national aid schemes put in place last year, when insurers worldwide withdrew insurance cover for third-party risks of war and terrorism at seven days notice. Such insurance cover of an airport is still only available at the level of $50m to $150m rather than the $1bn that was the norm before September 11 2001. "The market remains highly volatile due to the fact that the seven-day withdrawal clause remains in place," said ACI.

ACI Europe director general Philippe Hamon commented: "It is unthinkable that European airports are being left to operate in such a highly volatile insurance market with insufficient insurance cover. In the absence of concrete progress on the proposed mutual funds, emergency insurance cover presently underwritten by national governments must be extended for the foreseeable future."