Ottawa extends post-Sept. 11 insurance relief for air carriers

OTTAWA (July 19, 2002) — The federal government will extend its indemnification for third-party aviation war risk liability for Canadian airlines and cargo carriers until Sept. 17, providing relief from inflated insurance costs.

The initial provision of an indemnity was announced Sept. 22, 2001. Indemnity was extended until July 19.

“We are intervening in the insurance market on a temporary basis,” said Transport Minister David Collenette in a statement. “We continue to seek permanent solutions, and are committed to working with industry stakeholders and our partners from other countries for this purpose.”

Many major insurers withdrew war risk liability coverage after the terrorist attacks on Sept. 11, 2001. The indemnity program applies to Canadian air carriers (including new entrants), airports, NAV CANADA, and other essential service providers at airports, such as ground handlers and re-fuellers.