Brussels, 01/07/2002 (Agence Europe) - On Tuesday, the European Commission is to adopt the communication by Transport Commissioner Loyola de Palacio on insurance in the aviation sector following the attacks on 11 September 2001 in the United States. It above all envisages the authorisation of extended State aid on air insurance until 31 October. This will allow the Commission to make a detailed analysis of the European mutual insurance fund, Eurotimes, as well as that proposed by the International Civil Aviation Organisation (ICAO) to allow Member States to adopt a final position on these points at the Transport Council scheduled for October 2002. Furthermore, the Commission is also expected to authorise aid of EUR 71 million granted by the German government to offset losses by its airline companies during the closure of American skies between 11 and 14 September 2001.
The Commission clearly supports the proposals made by associations of the air sector aimed at forming a Eurotimes "mutualisation" fund, that would allow damage caused to third parties to be covered in the event of war or terrorist attack up to a limit of one billion dollars per accident. It would concern the whole of the sector and not only airline companies (see EUROPE of 27 and 28 May, p.13). Promoters of the scheme also hope Central and Eastern European countries taking part at the European Civil Aviation Conference will participate, and propose to remunerate States in return for their guarantee (by granting them 20% of the amount of premiums collected). The Commission also hopes to integrate the European system in the international fund proposed by the ICAO which, after the fashion of the European model, would concern the whole air industry, and which would cover damage caused ranging from $50 million to 1.5 billion. However, the Commission considers it is necessary for the more important members of the organisation (Australia, Brazil, Canada, Japan, Russia and the United States) to take part.
Finally, the Commission, which had intended to present a proposal end June fixing the minimum level of insurance required for airline companies flying over the EU and a proposal ensuring financial solidarity between the Member States in the event of exceptional air accident, decided to await developments on the air insurance market before presenting legislative proposals.