EC ALLOWS MORE STATE SUPPORT TO INSURE EU AIRLINES
The European Commission has agreed that European states continue to provide emergency state insurance cover to companies in the air transport industry for a further month, up to June 30.
“This will give governments and industry an additional period of time to finalize a stable, cost-effective and fair response to the difficulties the industry has faced in securing sufficient insurance cover since the attacks of Sept. 11, 2001,” the EC said.
The EC said that it will use this additional time to “continue working towards an appropriate long term solution with EU member states, the European air transport industry and the insurance industry.”
The market for third party insurance cover for war and terrorist risks has been in a state of uncertainty since the attacks of Sept. 11.