Parliament committee wants insurance breaks for smaller airplanes

In reaction to the airline insurance crisis in the wake of 11 September 2001, the Commission has decided to legally impose minimum insurance requirements for airlines.

The Commission's proposal aims at bringing together EU rules and reglementation foreseen in various international conventions, making them compulsory for any air carriers operating in the European Union. It sets minimum insurance levels for liability in respect of passengers, cargo, mail and third parties (including damage caused by war and acts of terrorism).

The parliamentary report, while generally favourable toward the proposal, says the minimum insurance to cover liability vis-à-vis third parties set by the Commission would constitute "an unbearable burden" for operators of smaller aircraft. It therefore demands the introduction of special insurance categories for smaller aircraft, with insurance levels considerably below the Commission’s minimum.

The report is scheduled to be voted in plenary on 14 May 2003.